Khóa luận tốt nghiệp Quản trị kinh doanh: Education service quality dimensions on student’s satisfaction in Trung Dai Phat export and import training

This thesis aims to investigate student satisfaction on quality education servicesprovided by Export and Import training in Trung Dai Phat Company.Their level ofsatisfaction based primar

EDUCATION SERVICE QUALITY DIMENSIONS ON STUDENT’S

SATISFACTION IN TRUNG DAI PHAT EXPORT AND IMPORT TRAINING CO.,

LTD

Supervisor’s name: Dr Nguyen Thi Phi Nga

Student’s name: Pham Thi Thuy Nhung

Student ID: 11050125

Intake: QH2011-E

Program: International standard

Hanoi — May, 2015

3.2.2.4 Responsiveness3.2.2.5 Empathy

3.2.2.6 Customer satisfaction3.2.3 Factor Analysis (EFA)3.2.3.1 Exploratory factor analysis of service quality scale

3.2.3.2 Exploratory factor analysis of customer satisfaction scale 3.2.4 Correlation analysis

3.2.5 Hypothesis testing model and regression analysisCHAPTER 4: FINDINGS AND DISCUSSION

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An internship is a pre_professional work that provides students with theopportunity to gain experience in a particular area field It also supplements academic

classes and, in some areas, earns college credits As students, we need to use the things

we have learned in school and put it in practice This is also a good chance for us toget to know our future jobs and to try our strengths.

It was my good luck to take my internship at Trung Dai Phat Export and Import

Training Co., Ltd, a prestigious place that gave me many advantages.

Simply put, I could not have done this thesis without the lots of helps I received

cheerfully from whole Trung Dai Phat Co.,Ltd The work culture in Trung Dai PhatCo.,Ltd really motivates Everybody is such a friendly and cheerful companion here

that work stress is never comes in way I am also highly indebted my supervisors Dr.Nguyen Thi Phi Nga who seemed to have solutions to all my problems

LIST OF FIGURES

Figure 1.1: Servqual model + «¿+ + S221 2112211121111 1 1115111115555 10Figure 1.2: Service quality model -‹- cc- ccc S31 S211 3511 ss: 11Figure 1.3: American Customer Satisfaction Index c cecceceecceceuececsseeeees 15Figure 1.4: European Customer Satisfaction Index - -. - << 5<< <<: 16Figure 2.1: Research Framework .ccccceeeceecseccecceceuceecucescaveeavcereeeas 18Figure 2.2: Research Model Offfer cccccecccceeccuccueccueccuuceucecsecenuuceeenens 19Figure 3.1: Gender distribution among 135 participanfs - a 33Figure 3.2: Age distribution among 135 participants -. c5 ccssss: 33Figure 3.3: Research model resulf -. -.cc- c1 c1 3E ss si 54

Table 2.1: Sections of questionnaire -‹- c s11 1121811111115 ssy 22

Table 2.2: Encoded dafa - - c c0 2011111221111 11111111 511111111 xe 24

Table 2.3: Cronbach alpha values and internal consistency -‹‹‹cc s55 5z <<: 26Table 3.1: Profile of respondenfs - . -c- c n1 1121122 11x sss 32

Table 3.2: Reliability statistics of TANGIBILITY scale -.-. - 52 25s se: 34Table 3.3: Reliability statistics of RELIABILITY seale -. c2 2s < <<: 35

Table 3.4: Reliability statistics of ASSURANCE secale -.- 5c c2 c2: 36

Table 3.5: Reliability statistics of RESPONSIVENESS scale c-2 37

Table 3.6: Reliability statistics of EMPATHY scale ccccccecccceeeccccucecccsse 38

Table 3.7: Reliability statistics of CUSTOMER SATISFACTION scale 39

Table 3.8: Exploratory factor analysis for service quality scaÌe -. 40

Table 3.9: Encoded data in the 2" time c.cccccsseeeeeeeeesseeccseececssseceeeesee 42

Table 3.10: Reliability statistics and factor analysis

for service quality scale — 2" time 00.cccccscsscccecsseecsessessceceseeees 44

Table 3.11: Exploratory factor analysis of customer satisfaction scale 46Table 3.12: Correlation results 0 0 cccccccssscccecccueccuuceccecaeeeeesaseseseuans 47Table 3.13: Collinearity Statistics ccccccceecccecccueccuecececcuueccessuseceseeess 49

Table 3.14: Regression analysis summary 000 cccccceeececceceuueeeeeeeececeeeess 50

This thesis aims to investigate student satisfaction on quality education servicesprovided by Export and Import training in Trung Dai Phat Company.Their level ofsatisfaction based primarily on the data collected through 5 dimensions(tangibility,responsiveness, reliability, assurance and empathy) and their influence on student

satisfaction Furthermore, this study also examines critical factors in service quality dimensions (tangibility, responsiveness, reliability, assurance and empathy) thatcontribute most to the satisfaction of the students This study was conducted using a set

of questionnaire to 135 students in Trung Dai Phat Export and Import training Co.,Ltd( TDP Exim training Co.,Ltd) The study will provide results from empirical test ofthese relationships The empirical results of this study can provide support for theParasuraman’s SERVQUAL (1985), which related to the factors contributing tostudents’ satisfaction

The results indicated that RELIABILITY, ASSURANCE and EMPATHY hadpositive and statistical significant influenced on student satisfaction in whichASSURANCE has the most significant impact on customer satisfaction level Thisstudy provides very useful information for the stakeholder to plan and draw appropriatestrategies for the dimensions that need further improvement More importantly,education service quality will determine the sustainability of atraining company bylooking at the competitiveness of education setting

In addition, based on these findings, the thesis also gives some suggestions forTDF Exim training Co.,Ltd to further improve service quality and customer satisfactionlevel.

Key words: service quality, student satisfaction, SERVQUAL, service qualitydimensions

Define the significance of research

Human resource is a key to determine the success of any company in businessenvironment In recent years, Import and Export (EXIM) service booms in Vietnamand this is an opportunity for anybody being interested in this respect.

Because of the significant development in EXIM branch, human resourcessupplied become deficit seriously However, following the VIFFAS(Vietnam FreightForwarders Association)assessment, Exim training program in university is very poorand not updated (about 15-20 lessons in Logistics subject and external trade) and thistraining is unpractical application By virtue of understanding this status, Trung DaiPhat EximTraining Co, Ltd makes a hands-on training program with the purposesupplying high quality human resource for this area

Therefore, it is important that Exim training deliver high quality service andensure students are satisfied with the service provide Education service also can beviewed from a marketing perspective TDP Exim Training Co.,Ltd creates services thatrespond to the needs of the markets They act as the service provider has directinteractions with students and students as the main service receiver may provide goodfeedback on their service Customer satisfaction is considered as one of the importantconditions in service marketing Customer plays a vital role in the success ofbusinesses Therefore, analyzing customers ‘needs is an important duty that increasesthe success of businesses (Parasuraman, Zeithaml & Berry, 1988) Students are treated

as the primary consumers ad service quality is measured through various dimensions.Service performance is determined be the service quality and customer satisfaction.There are two different ways to measure service quality First is by comparing studentperceptions with their expectations of training program a And second is by collectingstudent feedback of their academic life

empathy This study provides important directions for administrators and educators inExim training program; it also assists educators to understand their student’s needs.Thus, TDP Exim Training Co.,Ltd able to identify areas that need further improvement.

Research Objectives

Generally, the purpose of this study is to determine the relationship between servicequality and student satisfaction in TDP Exim Training Co.,Ltd Several factors inservice quality that will be discussed and analyzed are Tangibility, Assurance,Reliability, Responsiveness and Empathy The purpose of this research:

© To examine the relationship between service quality dimensions (tangibility,

responsiveness, reliability, assurance, empathy and overall service quality) andstudents satisfaction

e To examine critical factors in service quality (tangibility, responsiveness,

reliability, assurance and empathy) that contributes most to satisfaction

This study aims to investigate student satisfaction on quality education servicesbased primarily on the data collected through five dimensions of education servicequality in TDP Exim Training Co.,Ltd Thus, I will give some solutions to enhance theservice quality in TDP Exim Training Co, Ltd

Research Questions

e¢ RQI: Determine the relationship between service quality dimensions and

satisfaction among the students in TDP Exim Training Co, Ltd.?

®© RQ2: What are critical factors in service quality that contribute most to the

satisfaction of the students?

Design surveyquestionnaires

Consultation of supervisor

Adjust surveyquestionnaires

Implementation

Analyze data

(1)Studying literature review and making hypothesis: After studying literaturereview and making research hypothesis about service quality dimensions on studentsatisfaction, I conduct measuring relationship between given dimensions and studentsatisfaction by using quantitative method

(4)Adjust survey questionnaires: step (2), (3) (4) were repeated until survey wascompleted and survey testers understand clearly about the questionnaires.

(5) Trung Dai Phat’s director permission

(6) Implement the investigation: Adjusted survey questionnaire is researchedofficially by offline survey

(7) Data analysis: detail in Chapter 3

Contributions

Through adjusting how well the educational programs and services met students’satisfaction for service, this study provides useful information for the stakeholder toplan and draw appropriate strategies for the dimensions that need further improvement

In this competitive market, satisfaction with services may make the difference Thisstudy attempts to explore the aspects of service quality and the level of satisfactionamong the students of TDP Exim Training Co.,Ltd

Moreover, this study can also be the reference for students about service qualitydimensions on customer satisfaction

Outline of the thesis

Besides this introduction part, the thesis is divided into 4 main chapters:

e Chapter 1: Literature review

This chapter will provide theoretical framework for the research It includesfundamental concepts about service quality and customer satisfaction as well asresearch model and its hypotheses used in this research

will also provide detail research method from preparing for collecting data to analyzingdata.

e Chapter 3: Research results and analysis

This chapter will give description of data collected, and then show analysis resultsfrom SPSS 16.0 software

e Chapter 4: Findings and discussion

This chapter will answer two research questions by providing assessment about servicequality, and then the relationship between education service quality and studentsatisfaction at TDP Exim Training Co.,Ltd Besides, it will also give some suggestions

to further improve service quality as well as customer satisfaction at TDP EximTraining Co.,Ltd

1.1 Definition and characteristics of service

The world economy nowadays is increasingly characterized as a service

economy This is primarily due to the increasing importance and share of the servicesector in the economies of most developed and developing countries In fact, the

growth of the service sector has long been considered as indicative of a country’seconomic progress

Economic history tells us that all developing nations have invariablyexperienced a shift from agriculture to industry and then to the service sector as themain stay of the economy

This shift has also brought about a change in the definition of goods andservices themselves No longer are goods considered separate from services Rather,services now increasingly represent an integral part of the product and this

interconnectedness of goods and services is represented on a goods-services continuum

Service are form of product that consists of activities, benefits, or satisfactions

offered for sale that are essentially intangible and do not result in the ownership ofanything Examples are banking, hotel, airline, retail, wireless communication, andhome-repair services

The American Marketing Association defines services as - “Activities, benefitsand satisfactions which are offered for sale or are provided in connection with the sale

of goods.”

e Intangibility: Services are intangible and do not have a physical existence.

Hence services cannot be touched, held, tasted or smelt This is most defining

feature of a service and that which primarily differentiates it from a product.Also, it poses a unique challenge to those engaged in marketing a service as theyneed to attach tangible attributes to an otherwise intangible offering.

e Inseparability: physical goods are produced, then stored, later sold, and still

later consumed, In contrast, service are first sold, then produced and consumed

at the same time Service Inseparability means that services cannot be separatedfrom their provider, whether the providers are people or machines If a serviceemployee provides the service, then the employee becomes a part f the service.

Because the customer is also present as the service is produced, customer interaction is a special feature of services marketing Both the providerand the customer affect the service outcome.

provider-e Hprovider-etprovider-erogprovider-enprovider-eity/Variability: Givprovider-en thprovider-e vprovider-ery naturprovider-e of sprovider-ervicprovider-es, provider-each sprovider-ervicprovider-e

offering is unique and cannot be exactly repeated even by the same serviceprovider While products can be mass produced and be homogenous the same isnot true of services Variability means that the quality of the services depends

on who provides them as wells as when, where, and how they are provided

e Perishability means that services cannot be stored for later sale or use Thus, it

is limited of time The perishability of services is not a problem when demand is

steady However, when demand fluctuates, service firms often have difficultproblem.

Service quality is a concept that has aroused considerable interest and debate in the research literature because of the difficulties in both defining it and measuring itwith no overall consensus emerging on either (Wisniewski, 2001) [2] There are anumber of different "definitions" as to what is meant by service quality One that iscommonly used defines service quality as the extent to which a service meetscustomers’ needs or expectations (Lewis and Mitchell, 1990 [3]; Dotchin and Oakland,1994a [4]; Asubonteng et al., 1996 [5]; Wisniewski and Donnelly, 1996 [6]) Service

quality can thus be defined as the difference between customer expectations of service

and perceived service If expectations are greater item, performance, then perceived

quality is less than satisfactory and hence customer dissatisfaction occurs (Parasuraman

et al., 1985 [7]; Lewis and Mitchell, 1990 [3])

A definition of quality revolves around the idea that quality has to be judged onthe assessment of the user or consumer of the service The construct of quality asconceptualized in the services literature is based on the perceived quality Perceivedquality is defined as the consumer’s judgment about an entity’s overall experience orsuperiority (Zeithaml, 1987 [8]; Zammuto et al 1996 [9]) Similarly, Parasuraman,Zeithaml and Berry, 1990 [10] also concluded that consumer perceptions of servicequality result from comparing expectations prior to receiving the service, and theiractual experience of the service Perceived quality is also seen as a form of attitude,related to, but not the same as satisfaction, and resulting from a comparison ofexpectations with perceptions of performance (Rowley, 1996 [11])

Therefore, perceived service quality could be the product of the evaluations of anumber of service encounters and in this case, of a student, these could range fromencounters with office staff, to encounters with tutors, lecturers, the head ofdepartments, etc As a result, if an organization regularly provides service at a levelthat exceeds customer expectations, the service will be evaluated as high quality In

Generally, students have three main criteria that need to be satisfied withservices These has been labeled as Requisite encounters which essentially enablestudents to fulfill their study obligations; Acceptable encounters which studentsacknowledge as being desirable but not essential during their course of study andFunctional, an encounter of a practical or utilitarian nature (Oldfield and Baron, 2000[12]).

According to Lassar, Manolis and Winsor, 2000 [13], two most prevalent andwidely accepted perspectives on service quality include the SERVQUAL model andthe Technical/Functional Quality framework Gronroos, 1984 [14] held that servicequality is made up of three dimensions "the technical quality of the outcome", "thefunctional quality of the encounter" and “the company corporate image” He arguedthat in examining the determinants of quality, it is necessary to differentiate betweenquality associated with the process of service delivery and quality associated with the

outcome of service, judged by the consumer after the service is performed

Parasuraman, Zeithaml and Berry, 1985 [7] however listed ten determinants ofservice quality that can be generalized to any type of service The ten dimensions

include tangibility, reliability, responsiveness, competence, access, courtesy,communication, credibility, security and understanding In addition, these tendimensions were then regrouped in the well-known five dimensions in theSERVQUAL model (Parasuraman et al., 1990 [10]) which include assurance, empathy,reliability, responsiveness and tangibility

Previous research also done by Mahiah., S et al.2006 [15] also confirmedParasuraman, Zeithaml and Berry (1985) and they suggest that increasing of_ sophistication of reliability, empathy, tangibility, responsiveness and assurance canincrease customer satisfaction towards services rendered by Human Resourcedepartment

1.2.2Service Quality Dimensions

Clearly, from a Best Value perspective the measurement of service quality in theservice sector should take into account customer expectations of service as well asperceptions of service However, as Robinson1999 [16] concludes: "It is apparent thatthere is little consensus of opinion and much disagreement about how to measureservice quality" One service quality measurement model that has been extensivelyapplied is the SERVQUAL model developed by Parasuraman et al (1985,1990)

[7][10] SERVQUAL as the most often used approach for measuring service quality

has been to compare customers' expectations before a service encounter and their

perceptions of the actual service delivered (Gronroos, 1984 [14]; Lewis and Booms,

1983 [17]; Parasuraman et al., 1985 [7]) The SERVQUAL instrument has been the predominant method used to measure consumers’ perceptions of service quality It has

-five generic dimensions or factors and is stated as follows (Van Iwaarden et al., 2003

[18]):

(1) Tangibles: Physical facilities, equipment and appearance of personnel

(2) Reliability: Ability to perform the promised service dependably andaccurately

(3) Responsiveness: Willingness to help customers and provide prompt service.

(4)Assurance: (including competence, courtesy, credibility and security).Knowledge and courtesy of employees and their ability are to inspire trust andconfidence.

(5) Empathy: (including access, communication, understanding the customer).Caring and individualized attention that the firm provides to its customers

The difference between expected and perceived services is defined as a gap.Expectations are viewed as “normative expectations”, which means desires or wants ofcustomers, i.e., what they feel a service provider should offer rather than would offer.Based on this premise, the use of perceptions in confirmation/disconfirmationparadigm is related to perceptions of performance As such, Parasuraman developed aservice quality model with five types of gaps:

- Gap 1: The gap between customers’ expectations and management perceptions

of those expectations This gap is a result of the lack of marketing research orientation,inadequate upward communication and too many layers of management.

- Gap 2: The gap between management perceptions of consumer expectations

and the firm’s service quality specifications This gap is a result of inadequatecommitment to service quality, a perception of unfeasibility, inadequate taskstandardization and an absence of goal setting

- Gap 3: The gap between service quality specifications and actual servicedelivery This gap is a result of role ambiguity and conflict, poor employee-job fit andpoor technology-job fit, in appropriate supervisory control systems, lack of perceivedcontrol and lack of teamwork.

- Gap 4: The gap between actual service delivery and external communicationsabout the service This gap is a result of inadequate horizontal communications andpropensity of over-promise

- Gap 5: The discrepancy between customer expectations and their perceptions of

the service delivered This is a result of the influences exerted from the customer sideand the shortfalls on the part of service provider In this case, customer expectationsare influenced by the extent of personal needs, word of mouth recommendation andpast service experiences.

Parasuraman proposed that service quality is a function of the gap based on the

quality dimensions and their attributes For the purpose of this study seeks to address

Gap 5 According to Parasuraman, information on service quality gaps can helpmanagers to diagnose where performance improvement can best be targeted

Identifying the largest negative gaps, combined with assessment of where expectationsare highest, facilitates prioritization of performance improvement Equally, positivegap scores will imply expectations are not just being met but exceeded Thisinformation will allow managers to review whether they may be ‘oversupplying’ thisparticular feature of the service and whether there is potential for re-deployment ofresources into features which are underperforming

SERVQUAL scale has been criticized on various conceptual and operationalgrounds Cronin and Taylor, 1992[19] were amongst the researchers who leveledmaximum attack on the SERVQUAL scale They questioned the conceptual basis ofthe SERVQUAL scale and found it confusing with service satisfaction Therefore, theyopined that “expectation” - (E) component of SERVQUAL be discarded and instead

“performance” - (P) component alone be used They proposed the SERVPERF scale.Methodologically, the SERVPERF scale represents marked improvement over theSERVQUAL scale Not only is the scale more efficient in reducing the number ofitems to be measured by 50 per cent, it has also been empirically found superior to theSERVQUAL scale for being able to explain greater variance in the overall servicequality measured through the use of single-item scale This explains the considerablesupport that has emerged over time in favour of the SERVPERF scale (Babakus andBoller, 1992 [20]; Bolton and Drew, 1991b [21]; Boulding et al., 1993 [22]; Churchilland Surprenant, 1982 [23]; Mazis, Antola and Klippel, 1975 [24]).

1.3 Student Satisfaction

1.3.1 Definition

Kotler and Clarke, 1987 [25] define satisfaction as a state felt by a person whohas experience performance or an outcome that fulfill his or her expectation.Satisfaction is a function of relative level of expectations and perceives performance.The expectation may go as far as before the students even enter training course,suggesting that it is important to the researchers to determine first what the studentsexpect before entering the training course (Palacio, Meneses and Perez, 2002 [26])

Rad & Yarmohammadian, 2006 [27] defined it as the willful accomplishmentwhich results in one’s contentment The satisfaction plays a major role in thedetermining the originality and accuracy of a system especially the educational system

as higher the level of satisfaction the higher will be the level of students’ groomingtheir skill development, course knowledge and mentality According to Zeithaml, 1987[8] satisfaction is the resultant outcome of an institution’s administrative as well aseducational system’s coherent performance Because the students will be more satisfiedand motivated for completing their studies if the institution provides an environmentwhich facilitates learning i.e the institution contains proper infrastructure foreducational utility accumulated with essential parameters of professional and academicdevelopment (Risch and Kleine 2000 [28]) posited a view that the students will be

more motivated, loyal and good performers if their institution holds essentialeducational facilities with affective staff of teaching and training The teachers’performance in the class and outside the class is a significant feature of enhancingstudents’ impartiality, motivation and satisfaction.

According to Wachtel1998 [29] the students’ rate their course instructors’performance and his methodology of teaching as the prime indicators in theireducational development and successful completion of their studies because higher theintellectual ability of the instructor the better will be the students’ evaluation(Edstrom2008 [30]) and consequently more will be the reliability on the teaching staff(Sproule, 2000 [31]) Teachers’ ability, excellence, coordination and reasonabilitygreatly influence students’ class performance The students are greatly influenced bythe educational activities their teacher or instructor coordinates for them Shevlin,Banyard, Davies and Griffith, 2000 [32] stated that the teachers who teach withpunctuality, accuracy, reasonability and logical approach in a student friendly manner

are more popular (Elliot and Shin 2002 [33]) Because students level of satisfactionincreases by working with those course instructors and lecturers who properly handle

the assignments, projects, exams and facilitate students’ logical reasoning and aptitudedevelopment (Dalton& Denson 2009 [34])

While most student satisfaction study focus on the perspective of customer,

researchers is facing a problem of creating a standard definition for student satisfactionthus providing a need of customer satisfaction theory to be selected and modified sothat it can explain the meaning of student satisfaction Even though it is risky to viewstudents as customer, but given the current atmosphere of higher educationmarketplace, there is a new moral prerogative that student have become “customer”and therefore can, as fee payers, reasonably demand that their views be heard and actedupon (William, 2002 [35])

1.3.2 Models of student satisfaction

1.3.2.1 American Satisfaction Index

In the model of the American Satisfaction Index (ACSI), perceived value is

affected by perceived quality and customer expectations Meanwhile, the expectation

of customers has a direct impact on the perceived quality In fact, the higher theexpectation means the higher standards of quality perceived by customers to products

or vice versa Therefore, the requirements for product quality and service provided forcustomers must ensure and be satisfied on the basis of their satisfaction Customer

satisfaction are formed on the basis of perceived quality, expectations and perceived

values, if the quality and perceived value is higher than the expectations, this willcreate loyalty to the clients, and otherwise, there are the complaints about their usingproducts or service.

Customer Satisfaction

FY L ;q ,

Perceived quality oyalty

Figuer1.3: American Customer Satisfaction Index — ACSI

1.3.2.2 European Customer Satisfaction Index

The model of European Satisfaction Index (ECSI) has certain differences Comparedwith ACSI, Images of products, brands have a direct impact to the expectations of thecustomer Meanwhile, customer satisfaction is impacted by total 4 factors: images,perceived value, and perceived quality of the product and service

Perceived Customer Lovalty

value Satisftctian oyalty

Perceved quality-Prod

Figure1.4: European Customer Satisfaction Index — ECSI [37]

Obviously, the strength of this approach is that it shifts the consumer experience

immediately, enabling the study of the causal relationship between elements of

customer satisfaction and loyalty Therefore, the first objective approach of the CSIstructure is the interpretation of customer loyalty for a product through the level ofcustomer satisfaction when they are impacted by image, expectation, perceived quality(product or service) and perceived value.

1.4 The relationship between education service quality and student satisfaction

Service Quality is commonly noted as a critical prerequisite for establishing andsustaining satisfying relationship with valued customers In this way, the association

between service quality and customer satisfaction has emerged as a topic of significantand strategic concern (Cronin and Taylor, 1992 [38]) In general, perceived service

quality is an antecedent to satisfaction (Spreng and Mckoy, 1996 [39]) Thus, a proper

understanding of the antecedents and determinants of customer satisfaction can be seen

as to have an extraordinarily high monetary value for service organization in a

competitive environment (Lassar, Manolis and Winsor, 2000 [13]).

Bigne, Moliner and Sanchez2003 [40] found that the overall service quality

have a significant relationship with satisfaction at R= 0.66 Ham and Hayduk 2003 [41]

have confirmed that, even in the higher educational settings, there is a positive

correlation between perception of service quality and student satisfaction, and

analyzing upon the relationship based on each of the dimension of service quality,reliability (R=0.547; sig = 0.000) has the strongest relationship followed byresponsiveness and empathy (R=0.5431; sig = 0.000), assurance (R=0.492; sig.= 0.000)and tangibility (R=0.423; sig.= 0.000)

In Vietnam, it has many researches about the impact of education service quality

to student satisfaction such as: Thesis of Author Nguyen Thi Tham (2010) researchabout the impact of educational activities to student satisfaction in The University ofScience -HCM National University; Investigating student satisfaction about educationservice quality in University of Economics and Business — Hanoi National University

The thesis of author Nguyen Phuong Nam about Education service quality on

satisfaction of higher education student in University of Economics and Business —HCM National University [42] found that the overall service quality have a significantrelationship with satisfaction at R= 0.759 He have also confirmed that, even in thehigher educational settings, there is a positive correlation between perception of service

quality and student satisfaction, and analyzing upon the relationship based on each ofthe dimension of service quality, empathy (R=0.802) has the strongest relationshipfollowed by responsiveness and tangibility (R=0.80land R=0.756 respectively),

assurance (R=0.721); and reliability (R=0.674)

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Research Framework

This study was adopted from Parasuraman’s SERVQUAL dimensions The

dependent variable in this study is overall student satisfaction that is measured by the

overall satisfaction The independent variable in this study is service quality in education that measures the level of satisfaction with service performance Thedimensions included in this variable are tangibility, assurance, responsiveness,

Figure2.1: Research Framework

2.2 Research model and research hypothesis

In service business respect, service quality is the most important factor effecting the customer satisfaction SERQUAL and SERFPERF model are two acceptable scales

in the world It includes five dimensions: Tangibility, reliability, assurance,responsiveness and empathy

This study focus on hypothesis testing about relationship between service dimensions on student satisfaction and SERVPERF is the fundamental of establishingresearch model The SERVPERF score which represents the perceived performance oncomponents of service quality can be expressed in the following equation:

In addition, the research also analyzes the relationship between service quality

and customer satisfaction This relationship is modeled as following:

Student

satisfaction y

Figure2.2: Research model offer

[ Dimensions Inheritance

Tangibility Parasuraman, 1980 Reliability Parasuraman, 1980

Assurance Parasuraman, 1980

Responsiveness Parasuraman, 1980

Empathy Parasuraman, 1980

From the literature following hypotheses can be postulated

HI: Increase in quality of tangible services increase the students’ satisfaction

H2: Increase in quality of reliable services increase the students’ satisfaction

H3: Increase in quality of assurance services increase the students’ satisfaction

HẠ: Increase in quality of responsive services increase the students’ satisfaction

HD: Increase in quality of empathy services increase the students’ satisfaction

2.3 Sample

The students were selected by using a convenience sampling method Thesample population for the research was the students studying in TDP Exim Training Co,Ltd One hundred and fifty questionnaires were distributed to these students who wereenrolled for different training courses The sample was an opportunity sample andparticipated in the research was voluntary

2.4 Designing questionnaires and collecting data

This study has 22 variables in totals According to Hair et al, (1998), cited inNguyen Thi Phuong Tram (2008) [43], the sample size should be at least 5 respondentsper 1 observed variable In order to collect at least 5 respondents per 1 observedvariable, the study need to collect at the minimum sample size of 110 respondents.Therefore, to satisfy this criteria and considering the approximate 75% response rate,

150 questionnaires were distributed Out of these questionnaires, 135 were completedand returned, yielding a response rate of 78.8%.

Data was collected by a standard SERQUAL questionnaire Designingquestionnaire referred to quality measurement scales used in previous research such as

“Assessing Quality of educational service by the SERQUAL model: viewpoints ofparamedical students at Tehran University of medical Science” byDr.Mohammadkarim Bahadori et al 2011 [44], “Impact of education service quality onsatisfaction in higher institution” by Nguyen Phuong Nam 2009 [42] Besides,measurement scale in this research was adjusted in order to be suitable for services inTDP Exim Training Co.,Ltd

Questionnaire comprised three sections:

- Section I: demographic information of students was asked (age, gender);

- Section II: inquired about the five dimensions of service quality (tangibledimensions, reliability, assurance, responsiveness and empathy Noticeably, eachdimension of service quality consisted of several sub-dimensions as it follows:

(1) Tangibles: consisting of the physical facilities, tools, personal andcommunication channels sub-dimensions

(2) Reliability: consisting of the organization's ability to implement thepromised services to students sub-dimension;

(3) Assurance: consisting of the ability, knowledge and skills in staff of training

service to create confidence in students

(4) Responsiveness: consisting of the accountability of staff towards the servicesprovided to students sub-dimension;

(5) Empathy: consisting of the sense of belonging and commitment of staff to allstudents sub-dimensions

- Section III: Student satisfaction with 3 questions in total assessment

impact student satisfaction The questionnaires were measured using 5-point Likertscale that ranged from] = strongly disagree, 2 = somewhat disagree, 3 = neither agree

nor disagree, 4 = somewhat agree, 5 = strongly agree Customers gave points for 20

Table 2.1: Sections of questionnaire

Part | Content Number of questions

4

The questionnaire has 22 questions in total concentrating on dimensions which

- The degree to which university involve with the community

e Responsiveness:

- Lecturers capacity to solve problems when they arise

- Staffs respond to your requirements as soon as possible

- Channels for expressing student complaints are readily available

e Empathy:

- Access to study rooms is accommodate with students ‘convenient

- The extent to which lecturers are sympathetic and supportive to the needs ofstudents

- Staffs are willing to give students individual attention

e Customer satisfaction:

- lam satisfied with my decision to attend this training company

- Ifhave a choice to do it all over again, I still will enroll in this company

- lam willing to recommend this company to my friends

2.5 Analyzing data plan

At first, data will be input and screened to identify missing samples Afterrejecting all invalid samples, data will be encoded as in the following table:

Table 2.2: Encoded data

_

| Label Explanation

TANGIBLE

| TANI Appearance of lecturers is courteous

2 TAN2 Physical facilities in center are modern and

comfortable.

- 3 TAN3 Intimate and dynamic relationship with learners

l 4 TAN4 Available of parking

RELIABILITY

5 REL1 The company keeps its records accurately

6 REL2 The company performs services exactly as what

they promised _

7 REL3 The general reliability of lecturers i.e Keeps

| time/don’t cancel class

ASSURANCE

8 ASSI | Academic credentials of lecturers —]

9 | ASS2 Lecturers are innovative and agents of change |

10 | ASS3 Staffs behave courteously and politely with you

II | ASS4 The degree to which university involve with the

13 | RES2 Staffs respond to your requirements as soon as

The extent to which lecturers are sympathetic

and supportive to the needs of students

Staffs are willing to give students individualattention

CUSTOMER SATISFACTION

18 |CSI I am satisfied with my decision to attend this

training company

19 | CS2 If have a choice to do it all over again, I still will

enroll in this company

20 | CS3 I am willing to recommend this company to my

friends

om |

(Designed by the author)The data collected will be cleaned and processed by software SPSS 16.0 Somemethods of processing data used in this study are as following:

a Reliability analysis by Cronbach’s alpha

Cronbach’s alpha is a common measure of internal consistency (reliability) of a test

or scale Internal consistency describes the extent to which all the items in a testmeasure the same concept or construct and hence it is connected to the inner-

relatedness of the items within the test (Tavakol et a/., 2011 [45]) Cronbach’s alpha ismost commonly used when researcher has multiple Likert question in a survey orquestionnaire that form a scale and the researcher wishes to determine whether thescale is reliable (Laerd statistics [46]).

The value of alpha (a) may be between negative infinity and 1 However, only

positive values of alpha have meaning In general, alpha coefficient ranges in valuefrom 0 to 1, and the increase of this value means that the correlations between the items increase (Streiner D.L., Norman G.R 1989[47]) Therefore, this processing datamethod helps analyst assess the reliability of scale through Cronbach’s alphacoefficient A commonly accepted internal consistency using Conbach’s alpha is as follow:

Table 2.3: Cronbach alpha values and internal consistency (George & Mallery, 2003

[48])

F—

| Cronbach’s alpha Internal consistency

a> 0.9 Excellent0.9>a >0.8 Good

Besides assessing the reliability of scales, Cronbach’s alpha analysis also helps tocheck whether any item is not consistence with the rest of the scale through item-totalcorrelations Item-total correlation performs the correlation of one variable with others

in the same scale; the higher correlation value, the better correlation between that itemand the others Variables which have greater than 0.3 item-total correlations will beaccepted; the others which have smaller than 0.3 item-total correlations will beeliminated from analysis data

b Exploratory factor analysis

Exploratory factor analysis is a powerful statistical technique which is used fordata reduction and summarization The primary objectives of an exploratory factoranalysis are to determine (1) the number of common factors influencing a set ofmeasures; (2) the strength of the relationship between each factor and each observedmeasure (DeCoster, 1998 [50])

At first, it is necessary to test the sampling adequacy of factor analysis base onKaiser-Meyer-Olkin (KMO) Measure In case of KMO has value between 0.5 and 1.0and Sig is smaller than 0.5, factor analysis is more appropriate factor analysis In case

of KMO has value smaller than 0.5 or Sig is greater than 0.5, it indicates that factoranalysis may not be appropriate

By performing exploratory factor analysis, investigator can decide the number

of factors to extract in the model The Kaiser creation states that investigator shoulduse a number of factors equal to the number of the eigenvalues of the correlationmatrix that are greater than one (DeCoster, 1998 [50]) In this research, the eigenvalueswill be plot in descending order, then the number of factor will equal to the number ofeigenvalues that occur prior and have greater than 1.0 values

An important part in exploratory factor analysis is interpreting factor matrixes.This research will use Varimax rotation process to produce multiple group factors.Factor loadings which indicate correlations between the variables and the factors are

required to have greater than 0.5 values Then, a factor can be interpreted in terms ofthe variables that have high load on it.

The regression model in this research is:

Y = bo+ by Xi + by Xp 4+ +b, K+

Where:

- Y=Scores on the customer satisfaction towards TDP Exim training Co.,Ltd.

- XI ,X¿, X_ = Scores on the attitude towards the quality components (tangible,

reliability, responsiveness, assurance, empathy)

cues b, = Regression co-efficient of independent variables

- bo=an intercept

- €=an error term

At first, it is necessary to test assumptions for regression analysis The principalassumption is that there is a linearity of the relationship between dependent and

independent variables This research investigates the model with more than oneindependent variables, the correlation among independent variables (multi-collinearity)should be checked Variance inflation factor (VIF) is used to measure the multi-collinearity in this regression analysis Regression model accept variables which haveVIF smaller than 10 If VIF for one variable is around or greater than 10, there is

collinearity associated with that variable; this variable should be removed from theregression model In addition, it is assumed that the error terms e are independent,normally distributed random variables with mean value of 0, and constant variances.

As long as these assumptions are not seriously violated, regression model will beestablished Once regression function was given, the research can investigaterelationship between service quality and customer satisfaction in TDP Exim TrainingCo.,Ltd R-square (coefficient of determination) will provide a goodness-of-fit measure.With higher R-square value, the model is higher fit for analysis

CHAPTER 3: RESEARCH RESULTS AND ANALYSIS

3.1 Research context

Trung Dai Phat Export and Import Training Co, Ltd

Overview

e Corporate name: Trung Dai Phat Export and Import Trainning Co, Ltd.

e Address: 175 Chua Lang, Ha Noi city

e Founder: Giang Nam Trung

e Phone: 091.357.8616 — 091.560.5868

e Website: hocxuatnhapkhau.com

Trung Dai Phat Exim Training Co., Ltd is the first place in Vietnam using hands-on

practice training methods and they have received much success and positive feedback

of students as well as employers during training After being trained a course, the rate

of fellow gaining a job is up to 90%.

With infrastructure being equipped by modern teaching faculty and the lecturersworking in high positions, experienced in the import and export sector, TDP is the

leading company supplying a large human resource for both internal and external labormarket

Moreover, to expanse and diversify the form of training, the company corporatewith many other companies Therefore, students who studying in TDP Exim TrainingCo.,ltd have lots of opportunities to work in Import and Export firms.

Now, they are a partner with some companies:

e Mosimex Co., Ltd

e Moxies Co.,Ltd

e Vietlog Co.,Ltd

Besides, TDP Exim Traing Co, Ltd also exports Sawdust charcoal to global

market like: Turkey, Arab, China, Korea They are going to open a Charcoal factory

to increase the capacity in the near future

Vision

“Becoming the leading company in training and supplying high quality humanresource in Import and Export respect”’

Core business

~ Educational service ( Import and export training)

¥ Exporting Sawdust Charcoal to global market.

Faculty

- The company has total 7 rooms including 1 office room and the remaining 6service of teaching

- Teaching devices are equipped to meet the needs of students

- Training models are including online and offline so students can easily watchlectures at home without going to company

Quality

TDP Exim Training Co., Ltd focuses on high quality training Besides being

trained intensive theoretical, the fellows was carried out hands-on import and export

practice such as negotiate with partners, declare at the customs After the course,students will have completing course certifications which are state recognized andappreciated by the import and export business However, the company is also focusing

on the development of marketing to expand the market That's why companies alwayshave a large number of students and more stable than other rival companies