The result of regression presents the evidence that ISO shows the largest impact on service quality, closely followed by internal process quality, and the smallest is customer satisfacti
2
Quality performance and customer satisfaCfION S5 s22 2211012111110 xe 11
The quality performance model demonstrates that effective quality management practices significantly enhance quality, operational efficiency, and overall business performance According to Garvin (1984), both internal process quality and product quality are vital contributors to operational success Quality impacts business performance through two primary pathways: the manufacturing route and the market route.
In term of manufacturing route, improved internal process quality (fewer defects, scrap and rework) results in improved operational performance (lower manufacturing costs).
In term of market route, improved product quality contributes to sales increase and market share increase.
Moreover, the model shows that quality performance includes internal process quality and product quality performance.
Internal Process Quality (process variability before final inspection)
Operational Performance (e.g., cost, delivery; excludes quality)
Source: Garvin (1984, cited in Sousa and Voss, 2002)
Figure 1.2: Quality performance model 1.3.2 Product quality
It refers to a product’s primary operating characteristics, or product’ sattributes that are measurable.
Features are characteristics that supplement their basic functioning Features involve objective and measureable attributes, objective individual needs affect their translation into quality differences.
Reliability measures the likelihood of a product experiencing a malfunction within a given timeframe Key indicators of reliability include the mean time to first failure, mean time between failures, and the failure rate per unit time.
These measures require a product to be in use for a specified period, so they are more relevant to durable goods than to others that are consumed instantly
Conformance is the degree to which a product’s design and operating characteristics meet established standards.
In service business, measures of conformance normally focus on accuracy and timeless and include counts of processing errors, unanticipated delays, and other frequent mistakes.
It measures product life Durability has both economic and technical dimension.
Durability refers to the extent of usage a product can provide before it necessitates repair or replacement Consumers must consider the anticipated costs, including both financial and personal inconvenience, associated with future repairs when evaluating whether to invest in a newer model Ultimately, durability is measured by how long a product remains functional before it becomes more economical to replace it rather than continue repairing it.
Serviceability is the speed, courtesy, competence, and ease of repair Some of these variables reflect differing personal standard of acceptable service, whereas others can be measured quite objectively.
Responsiveness is typically measured by the mean time to repair, while technical competence is reflected in the incidence of multiple service calls required to correct a particular problem.
Aesthetics presents how a product looks feels, sounds, tastes, or smells subjectively It is a matter of personal judgment and a reflection of individual preference.
Reputation plays a crucial role in shaping perceived quality, as it suggests that a company's product quality remains consistent over time This inherent belief also extends to new product lines, which are often assumed to be comparable to the established offerings of the brand.
Among eights dimensions of quality, the most traditional notions- conformance and reliability- remain important.
Tangibles refer to the physical evidence of a service, encompassing elements such as the facilities, the appearance of staff, the tools or equipment utilized, physical representations of the service, and the presence of other customers within the service environment.
It involves consistency of performance and dependability It can be understood as ability to provide what was promised, dependably and accurately
It mentions the willingness or readiness of employees to provide service It involves timeliness of service
Competence encompasses the essential skills, knowledge, and courtesy necessary for delivering quality service It includes the expertise and abilities of contact personnel, operational support staff, and the organization's research capabilities Additionally, courtesy plays a vital role, reflecting the politeness, respect, consideration, and friendliness exhibited by the contact personnel.
It is the degree of caring and individual attention provided to customers to make customers feeling extra valued and special.
Customer satisfaction is a crucial objective for businesses, serving as a key indicator of consumer purchase intentions and loyalty (David J Reibstein, 2010) Additionally, higher levels of customer satisfaction are associated with increased retention rates, market share, and profitability (Roland T Rust and Anthony J Zahorik, 1993).
Philip Kotler defined customer satisfaction is the extent to which a product’s perceived performance matches a buyer’s expectations If the product performance
16 falls short of expectations, the buyer is dissatisfied If performance matches or exceeds expectations, the buyer is satisfied or delighted (Kotler et a/., 2005).
1.4 Relationship between ISO 9000 standardss and quality performance
ISO 9000 standards focus on enhancing quality performance across internal processes, products, and services Research has shown that implementing these standards leads to significant internal benefits, including a reduction in product defect rates, improved product quality, and enhancements within the organization (Buttle, 1997; Brown, 1998; Lloyd’s, 1994; Vloegeberghs and Bellens, 1996; Casadesus, 2001).
Table 1.2: Most commonly stated ISO 9001 certification benefits reported in the literature (Sampaio, 2009)
- Access to new market - Productivity improvements
- Corporate image improvement - Product defect rate decreases
ISO 9000 certification as a marketing tool]
Customer relation improvements Customer satisfaction
- Market share improvement = Quality awareness improvements
Definition of the personnel responsibilities obligations Delivery time improvements Internal organization improvements
Nonconformities decreases Customers’ complaints decreases Internal communication improvementProduct quality improvement
Relationship between ISO 9000 standards and customer satisfaction
Many previous researches indicate that there is a relationship between ISO 9000 standards and customer satisfaction Customer satisfaction plays as both a benefit and a reason for seeking ISO 9000 certificate.
Customer satisfaction is a key marketing advantage for ISO-certified firms, leading to increased customer retention, acquisition, and market entry (Rayner and Porter, 1991) A 1993 study in the US and Canadian chemical industry revealed that 25% of firms reported enhanced customer satisfaction Additionally, Francis Buttle's analysis of 1,220 respondents in the UK identified customer satisfaction as the third most significant benefit of ISO 9000 standards, following profit and process improvements (1997) A 2010 ISO research study across 122 countries confirmed that improved customer satisfaction and standardized business processes were the primary benefits of ISO 9001 implementation, with enhanced customer satisfaction being the main motivation for pursuing ISO 9001 certification.
THEORITIAL FRAMEWORK, sụccniingna tu ei6610460088100304123844G6103809ã358S22s004 18 2.) TY an —
Designing questionnaire cố 66 ((V(dđdAdAHL
This study aims to assess the impact of ISO 9000 standards on quality performance and customer satisfaction To achieve this, a questionnaire will be developed to gather data on the implementation of ISO 9000 within firms, the quality performance of certified companies, and customer satisfaction levels regarding their products or services To ensure comprehensive and accurate data collection, both qualitative and quantitative research methods will be utilized.
The questionnaire, presented in Vietnamese, combines three parts:
- Part I: Assessing the implementation of ISO 9000 standardss of the firm
- Part Il: Assessing quality performance and customer satisfaction of these ISO 9000 standards certificated firm
- Part III: Asking basic firm’ information to classify participants a Designing questionnaire for part I
Based on eight dimensions of quality management, part I is designed to evaluate ISO 9000 implementation
Table 3.1: Questionnaire for ISO 9000 Implementation
- The satisfaction level of customer with product/ service Customer focus quality
The percentage of employees being trained about quality management
The position being charged for the representative of quality management
The percentage of employees taking part in problem solving
The number of ideas being proposed The number of ideas being practiced
The percentage of processes being controlled quality through statistic technique
The percentage of main processes being textualized
The level of activities and tasks being practiced PDCA The use of internal quality assessment for quality product/ service improvement
The scale of SS implementation the average time being necessary for the firm to launch new product
Factual approach to decision making dated, and being used of quality document system The ability of seven improvement tools practice to solve problems and to improve quality.
Mutually beneficial | - The percentage of suppliers being examined, assessed, supplier chosen, and supervised relationships - The quality of input
In this part, some dimensions are measured into 3 and 5 Linker scale, othersmeasure the percentage. b Designing questionnaire for part II
The research analyzes defect rates across various stages, including input reception, manufacturing, and distribution to customers Additionally, it assesses customer satisfaction levels regarding product and service quality.
The assessment of product and service quality will encompass the eight dimensions of product quality and five dimensions of service quality This evaluation is not conducted in isolation; rather, it involves a comparative analysis with competitors' offerings to ensure a comprehensive understanding of quality improvement.
The qualitative data is measured into five Linker scales
1= Significantly lower than competitor product/ service's 2= Slightly lower than competitor product/ service's
3= Equal to competitor product/ service's 4= Slightly higher than competitor product/ service's J=Significantly higher than competitor product/ service's
Table 3.2: Questionnaire for product quality
Assessment criteria Primary operating functions of the product
Supplement basic functions of the product
The percentage of products being broken during warranty
The number of defectsbeing found during manufacturing process
Durability + The durability of the product
The ability of easily maintaining and repairing product Aesthetics The aesthetic of the product -
Perceived quality Perception of customer about the product
The average percentage of defect being found after returned from customer)
The average percentage of defects during in process check annually
The average percentage of input loss annually
The percentage of customer who satisfy with product/service
Table 3.3: Questionnaire for service quality
The level of which service is carried put in time and meet requirements
The level of willing to serve customers from the
; The level of being professional and modern of
4 Assurance The level of professional serving
- The degree of caring and individual attention
5 Empathy provided to customers from the staff
Table 3.4: Questionnaire for customer satisfaction
; ; The level of customer satisfaction for
Questionnaires are distributed to quality assurance managers of companies in Vietnam that have already obtained ISO 9000 certification The primary focus is on firms operating within the manufacturing, construction, and service sectors.
Frstly, data will be screened to identify missing samples Then, invalid samples will be ‘ejected Secondly, data will be encoded as in the following table:
| II.I The satisfaction level of customer about product/ service is
The percentage of employee being trained about quality management is
The position being charged of the representative of quality management is
5 13.1 The percentage of employees taking part in problem solving is
6 13.2 The number of ideas being proposed is
7 13.3 The number of ideas being practiced is
: ` The percentage of process being controlled quality through
9 14.2 The percentage of main processes being textualized is '
10 | 15.1 The level of activities and tasks being practiced PDCA is r1 153 The result of using internal quality assessment for quality
12 16.1 The scale and effectiveness of SS implementation is l ‘a rT | The level of being effectively established, maintained, and up-
: to-dated, and usedof quality document system is
| ‘3 s a The ability of seven improvement tools being applied into
| problem solving and quality improvement is re 7 E81 The percentage of suppliers being examined, assessed, chosen,
The quality of input is
Primary operating functions of the product areSupplement basic functions of the product areThe percentage of products being broken during warranty is
The percentage of defects being found during manufacturing process is
The durability of the product is
The ability of easily maintaining and repairing product is
The aesthetic of the product is
Perception of customer about the product is
The level of service being performed in time and meeting
21 Q22 | The willing of staffto serve customers is Oo
28 | Q 2.3 The level of being professional and modern of equipment is 7
| 29 Q 2.4 | The professional level of staff serving is - ma cE = en se |
The degree of caring and individual attention provided to
| customers from the staff is
The average percentage of defects after distributing to a] Q3.1 ; customer annually ( product being returned form customer) is
The average percentage of defects being found during in
32 Q3.3 The average percentage of input loss annually is
The data collected will be cleaned and processed by software SPSS 16.0 Some methods of processing data used in this study are as following:
The reliability of data collected using the Linker scale will be assessed through Cronbach's alpha, a widely recognized coefficient of internal consistency This method is commonly employed to estimate the reliability of psychometric tests among a sample of examinees.
Developed by Lee Cronbach in 1951, Cronbach's alpha measures the internal consistency of a test or scale, which reflects how well the items within the test assess the same construct (Tavakol et al., 2011) Establishing internal consistency is crucial before utilizing a test for research purposes to ensure its validity A higher correlation among test items increases the alpha value; however, a high alpha coefficient does not necessarily indicate strong internal consistency, as it is influenced by the test's length and dimensionality (Mohsen Tavakol, Reg Dennick, 2011).
A commonly accepted rule for describing internal consistency using Cronbach’s alpha is as follows:
Table 3.6: Cronbach alpha values and internal consistency
(George & Mallery, 2003) Cronbach’s alpha Internal consistency a> 0.9 Excellent
It is clear that the reliability score should be equal or greater than 0.7 Moreover, in this research, scale which hasCronbach’s alpha equal or greater than 0.7 will be accepted.
Item-total correlation is a key metric for assessing the relationship between a specific variable and others within the same scale A higher correlation value indicates a stronger connection between the item and the other variables Variables with item-total correlations exceeding 0.3 are considered acceptable, while those below this threshold
Statistical power explains that the sample size can influence the generalizability of the result by the ratio of observations to predictor variables.
Hair et al (1998) suggest a general rule is that there should be at least 5 observations for each independent variable This ratio is also advocated by Costello &
Linear regression is used to predict the value of a variable based on the value of another variable The least square method is usually applied for estimating the regression parameters
R-square is the amount of variance in the dependent variable that can be explained by the model If the R-square value is 1.0, this means the model explains 100% of the variance and so the model will produce perfect predictive accuracy The point is, the closer to 1.0 the R-square value is, the better the model The closer the R- square value is to 0, the worse the model.
ANOVA, or Analysis of Variance, is a statistical method used to identify significant differences between group means by comparing their variances It focuses on a normally distributed outcome variable and a categorical predictor variable that represents different treatments or groups Essentially, ANOVA is a specific instance of multiple regression, utilizing indicator variables to represent the distinct levels of factor variables The term "analysis of variance" pertains to the methodology for assessing the statistical significance of effects, with a significance threshold set at less than 0.05, allowing for the rejection of the null hypothesis.
The Variance Inflation Factor (VIF) is a crucial metric used to assess multi-collinearity among predictor variables in a statistical model Calculated as the inverse of tolerance, a VIF value exceeding 10 typically indicates that a variable may require closer examination to ensure the reliability of the model's results.
The p-value is a crucial statistical measure that indicates the level of support a sample provides for the null hypothesis, given a specific significance level It is a probability derived from the test statistic, ranging from 0 to 1 Typically, a larger p-value suggests stronger support for the null hypothesis, reflecting the sample's evidence against the alternative hypothesis.
On the other hand, a small p- value indicates a sample test statistic that is unusual given the assumption that Ho is true.
In the regression, the research suggests to choose independent variables and dependent variables used the same measurement method to increase the accuracy of analysis result.
The survey included 108 participants, yielding 87 complete responses regarding ISO 9000 practices The valid results showed that internal process quality, product quality, service quality, and customer satisfaction had scores of 100, 78, respectively.
According to the statistics presented in the graph, the largest proportion of companies operating across all of Vietnam is 24.1% This is closely followed by the North and Middle Areas, which together account for 20.4% Additionally, the percentage of companies operating in the North, Middle, and South regions stands at 15.4%, 8.7%, and 2.8%, respectively.
: = Joint Venture Company nu 24.10% | š E Privated Company [RR 7.40% | | | Ẹ é Joint Stock, Limited, or seein
= State Owned Company ng Bài |
Figure 4.2: Form of business ownership
In a recent survey, joint stock, limited, and partnership companies accounted for the majority of responses, making up 47.2% of the total Joint venture companies followed as the second largest group, representing 24.1% of respondents In contrast, state-owned and foreign investment companies comprised a smaller portion, with 13% and 6.5%, respectively.
Under 10 yeafrom 10 to 20 vEzœm 20 to 30 yẻ#@œre than 30 years
Approximately 44.4% of companies have been established for 10 to 20 years, making this the most common age range In second place, 26.8% of companies are less than 10 years old, while 16.7% have been operating for 20 to 30 years Only a small fraction, at 2.8%, of respondents represent companies older than 30 years.
Textile Materials Chemicals Finance- Banking
Tourism Telecommunication/ IT Construction Engineering
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Research model and hypoth€SIS cành HH TH nh TH ri 54 GHAPTER:S: FINDING AND: CONCLUSION caennesensieniesnionintdendinniabigii0L08g04t005000020008-00s6 56
The reliability analysis of the product quality and service quality scales revealed that the product quality scale has been condensed to six key dimensions: Performance, Features, Reliability, Serviceability, Aesthetics, and Perceived Quality Meanwhile, the service quality scale retains its five quality dimensions.
After regression analysis, the research finds out the positive impact of ISO 9000 standards on quality performance including internal process quality and service quality performance and customer satisfaction.
Therefore, two hypotheses HI and H2 are accepted.
Linkert scale interpretation e Three Linkert scale
I=