Panasonic’s marketing strategy in viet nam market service marketing Chiến lược tiếp thị của Panasonic tại thị trường Việt Nam tiếp thị dịch vụ
INTRODUCTION
Backgrounds
Globalization, technological progress, and market growth have profoundly influenced the global economy, presenting both opportunities and challenges for Vietnam as it integrates into the global market To meet rising consumer demand, businesses must adapt dynamically and creatively, aligning their operations with customer needs and implementing effective marketing strategies to navigate market challenges successfully.
Traditional marketing strategies like advertising and pricing play a crucial role in shaping customer expectations and satisfaction Satisfying existing customers while attracting new ones is essential for business success, as enhanced customer satisfaction leads to improved customer retention and loyalty, ultimately boosting profits Organizations must prioritize effective customer service, which includes addressing issues, understanding needs, and enhancing interpersonal relationships Supportive after-sales services, such as customer support hotlines, contribute significantly to the overall offering by transforming products into a "product-service mixture." The growth of service activities emphasizes the importance of after-sales services, making them strategically vital for businesses.
Panasonic Corporation Vietnam offers an ASS that encompasses both service and product warranty policies for its electronic products and home appliances To enhance performance and durability, these products are often sold with supplementary services, which are typically provided and managed during the middle and end of the product's lifecycle.
Panasonic prioritizes customer satisfaction through its comprehensive after-sales service, which includes managing inquiries and facilitating return and exchange operations By focusing on assisting clients in the use and disposal of products, Panasonic enhances the overall customer experience throughout the product's life cycle.
When choosing household electrical products, key factors include durability, design, brand, and pricing, but product warranty is equally important To meet the increasingly high expectations of consumers, providers must enhance their warranty and repair services Effective after-sales warranty service instills confidence and security in buyers, making it a crucial aspect of the purchasing decision.
In the realm of long-term competition, service quality distinguishes brands, with Panasonic exemplifying this through its integration of high-quality products and exceptional customer service A crucial factor in selecting household electrical equipment is the product warranty, alongside traditional criteria like reliability, design, brand, and price Today's market demands that suppliers enhance their warranty and repair services for electrical and electronic devices to meet increasingly stringent consumer expectations Warranty services post-purchase provide customers with greater assurance and security in their buying decisions As a key strategic market for Panasonic Corporation, Vietnam has seen the company steadily increase its investments, focusing not only on sales promotions and product enhancements but also on improving customer service to achieve the highest level of customer satisfaction.
Historically, purchasing department performance monitoring has prioritized cost analysis and supplier evaluation over internal service components This essay aims to develop a technique for assessing the internal service quality of purchasing departments It introduces a unique gap model specifically designed to evaluate internal service.
The assessment of service quality in the Vietnamese market for Panasonic Company is based on the SERVQUAL model and the General service quality gap model This approach incorporates actual service perceptions alongside internal customer expectations for service excellence Additionally, the methodology features a self-evaluation that compares the expectations and impressions of internal customers with those of buyers, allowing for a comprehensive analysis of service quality.
The thesis explores the marketing strategy of Panasonic Corporation in the Vietnamese market, focusing specifically on service marketing This study aims to analyze Panasonic's service marketing practices in Vietnam to assess how various elements of their service model influence customer satisfaction.
About Panasonic
Panasonic Corporation, Japan's largest electronics manufacturer, was founded by Matsushita Konosuke in 1918 to produce electric light sockets and plugs Officially established in 1935, the company rapidly diversified its product offerings, now marketing a wide range of electronics under various brand names, including Panasonic, Quasar, National, Technics, Victor, and JVC.
Since its official establishment in Vietnam in 1971, Panasonic has focused on contributing to Vietnamese society through comprehensive activities in research and development, manufacturing, distribution, and corporate social responsibility Recognizing Vietnam as a key strategic market within the ASEAN region, Panasonic is dedicated to ongoing investments in R&D and the expansion of its manufacturing and distribution networks to better meet the needs and preferences of Vietnamese consumers.
Panasonic, a leading Japanese home appliance brand, is renowned for its diverse product range and effective marketing strategy, emphasizing advanced technology and exceptional customer experiences Committed to delivering high-quality products at affordable prices, Panasonic meets the increasing demands of consumers In Vietnam, popular Panasonic products include air conditioners, refrigerators, rice cookers, microwave ovens, hair dryers, electric fans, and vacuum cleaners Surveys indicate that Vietnamese households typically own one or two Panasonic items, highlighting the brand's popularity in everyday life.
Panasonic Vietnam provides a range of services including intensive equipment cleaning, extended warranty options, genuine repair services, corporate customer support, authentic components, and dedicated customer care These services can be accessed directly at the authorized warranty center or via the Panasonic hotline.
Panasonic's business philosophy serves as a fundamental value that has contributed to its emergence as a global brand, acting as a guiding principle for the company's growth and resilience in the competitive market.
Panasonic's business philosophy, "A Better Life, A Better World," reflects its commitment to enhancing the quality of life for individuals and society as a whole As an industrial manufacturer, Panasonic aims to contribute to societal development through its business activities, ultimately striving to create a positive impact on the world.
Logical guide
During its close to 70-year presence in Vietnam, Panasonic hopes to support the country's economy and sustainable development
Along with growing its business, Panasonic wants to improve society and the quality of life for all Vietnamese people This is in line with the founding principle of Panasonic,
"enhance the quality of life of people around the world," which was put forth by Konosuke Matsushita
The Japanese company encourages the adoption of social responsibility initiatives in order to support sustainable development Vietnamese workers can now choose from more than 7,500 positions at Panasonic
Panasonic has unveiled a new development vision centered on innovation for people as it enters its second century The company's product ecosystem leverages big data, artificial intelligence, and real-time capabilities Vietnam is a key component of Panasonic's strategic development in the ASEAN region, highlighting its significance in the Asia Pacific market.
For 60 years, Panasonic has been committed to building a leading brand by expanding its business and adhering to a philosophy focused on enhancing society and improving the quality of life for all Vietnamese people The company aims to play a significant role in the economic growth and sustainable development of its host nation.
Panasonic, guided by the motto "creating a better life," emphasizes the importance of public health and safety The company envisions a prosperous world that is anchored in comprehensive solutions aimed at improving quality of life and addressing pressing social challenges through sustainable business practices.
For over a century, Panasonic has upheld its mission by following the enduring business philosophy of its founder, Konosuke Matsushita, focusing on both economic and social impacts As a leader in providing comprehensive business solutions and engaging in social responsibility initiatives in education and environmental sustainability, Panasonic has solidified its position as the leading consumer electronics brand in Vietnam, contributing to the country's sustainable development.
Panasonic Vietnam is committed to reducing the environmental impact of its business operations and manufacturing processes The company adheres strictly to all relevant environmental laws and regulations while its subsidiaries prioritize minimizing or eliminating hazardous materials and ensuring the responsible use of natural resources.
14 resources, and setting targets in sectors like logistics that are "Green"; this includes buying "Green" and building "Green" factories
Furthermore, Panasonic works in partnership with national and international organizations to implement initiatives that advance the environment, society, and education
Panasonic has effectively utilized emotional marketing strategies in Vietnam, successfully engaging consumers through initiatives like environmental tree-planting campaigns and the Panasonic Scholarship Program These efforts aim to portray Panasonic as a brand that offers friendly and life-enhancing products while also contributing to educational advancement and the development of high-quality human resources in the country.
The challenges posed by the epidemic in 2021 have led to increased isolation and disruptions in the supply chain, impacting both businesses and daily life In response to this volatility, individuals and organizations are motivated to innovate and adapt to the new normal Panasonic Vietnam is committed to this mission, with its workforce dedicated to creating a healthier Vietnam, in line with the company's 2020 business strategy as a leader in holistic health solutions.
Panasonic Company excels in delivering high-value-added products and services across diverse sectors, including home appliances and consumer electronics Its offerings are categorized into five key segments: machinery, life solutions, connected solutions, automotive solutions, and industrial solutions, each further divided into specialized firms Catering to a global customer base of varying ages and needs, Panasonic provides a wide array of high-quality items such as lighting devices, home automation systems, air quality products, modular kitchens, power-assisted bicycles, and nursing care services.
Panasonic Corporation's products and services promote consumer loyalty by effectively addressing societal issues and enhancing community well-being, aligning with the company's mission of "A Better Life, A Better World."
Panasonic's marketing strategy focuses on delivering high-quality products at unbeatable prices, ensuring accessibility for all societal segments The company emphasizes fair pricing and adapts to the rapidly evolving high technology market by anticipating external changes, which leads to optimal opportunities and strategies To guide its development, Panasonic aligns its marketing plans with product status and competitive advantages In addition to the traditional marketing mix components of product, pricing, promotion, and distribution, the strategy for high-tech products includes additional factors to enhance effectiveness.
Panasonic Corporation offers a diverse range of products and services, including air conditioners, refrigerators, washing machines, televisions, personal computers, and mobile phones Additionally, the company manufactures automotive electronics, in-flight entertainment systems, semiconductors, lithium batteries, and various electrical components Panasonic also provides optical equipment, bicycles, electronic materials, and photovoltaic modules Notably, electric fans and ventilation equipment were originally produced under the KDK brand before being rebranded as Panasonic.
Panasonic's marketing strategy aims to deliver top-quality products at competitive prices globally, ensuring accessibility for all societal segments By maintaining fair and reasonable pricing, the company guarantees that its offerings reach diverse markets effectively.
16 corporation intends to concentrate on, appropriate pricing policies and cost- cutting techniques are used
Panasonic's marketing strategy incorporates a pricing plan designed to enhance sales by offering discounts during special occasions, which helps reduce product prices and resonates with customers' emotions This pricing strategy is shaped by competitive dynamics, product categories, and the target market Panasonic aims to reach.
During the year-end holidays, Panasonic strategically adjusts its prices to meet the high shopping demand in Vietnam, offering attractive discounts tailored to the local market The brand is well-regarded for its "soft" pricing, which ensures excellent value for customers This approach highlights the effectiveness of Panasonic's pricing strategy in resonating with its target audience.
Panasonic's success hinges on its distribution strategy, which primarily relies on two key channels: retail electronics supermarkets and wholesale distributors This consistent focus has remained a cornerstone of Panasonic's approach over the years, shaping its market presence and effectiveness.
- Retail supermarket system: With an ever-growing scope, the retail supermarket system is increasingly centered on publicizing brands and promoting products
- Wholesaler: Panasonic still uses the distributor system to maintain the conventional sales channel, which has the benefit of utilizing available manpower and transportation options
Issues
Adapting to external market changes through effective market research is crucial for a business's long-term survival and competitiveness A company's success hinges on its ability to meet customer demands while providing affordable products, ensuring it remains relevant and profitable in the marketplace.
Marketing plays a crucial role in linking business production activities with the market throughout all phases, from product research and development to communication, new product consumption, and customer service.
Marketing initiatives are advantageous to both businesses and consumers If a business or social organization only benefits itself while providing no benefits to customers, it
18 will not last long Marketing is crucial for assisting customers in communicating their wants and needs to companies and organizations that will produce goods to meet those needs
Economic marketing enhances consumer perception of value, making them feel more satisfied with their purchases When a product offers greater benefits compared to competitors, customers are more likely to experience higher levels of satisfaction.
In today's competitive market, providers must offer skilled warranty and repair services for electrical appliances, which includes not only replacing and repairing components but also advising customers on product usage As consumers in Vietnam have more options due to increased supplier investment, their expectations for service quality and responsiveness have risen Therefore, warranty centers that leverage the latest technology and ensure quick response times have a distinct advantage To enhance customer satisfaction, service providers must continuously improve their offerings by understanding customer expectations and attitudes towards their services.
Objectives
The importance of brand services in fostering customer loyalty cannot be overstated, as they significantly influence both the purchasing and usage experiences of products Effective service marketing is essential for building long-term brand development, as it helps establish customer trust and enhances product quality Brands can leverage marketing strategies to swiftly connect with consumers and promote their offerings Trust, cultivated through high-quality products and reliable customer support, is vital for maintaining a strong market position In Vietnam, Panasonic stands out as a reputable brand in electronic home appliances, excelling in customer care through comprehensive electronic maintenance services, which are crucial given the warranty periods associated with these products This commitment ensures customers enjoy an exceptional shopping experience.
19 brand that provides excellent customer service because it has a global following of devoted customers
Service quality is fundamentally defined by the customer's perception of an organization's offerings It plays a crucial role in establishing a sustainable competitive advantage and building consumer trust The level of service quality directly correlates with customer satisfaction, which is determined by the gap between the actual service experience and the customer's initial expectations Ultimately, customers assess and evaluate quality based on their experiences.
Panasonic Corporation enhances its service quality through both qualitative and quantitative measurements, which significantly contributes to customer loyalty and market share growth High service quality leads to increased profitability, reduced expenses, and a competitive edge The close relationship between service quality and client satisfaction emphasizes the importance of service delivery in shaping customer experiences Factors influencing service quality ultimately affect customer satisfaction, making service quality a vital element in achieving overall customer happiness.
In a competitive electronics market, leaders must enhance their service quality, particularly in insurance offerings This article explores Panasonic Vietnam's service marketing strategies to better understand customer psychology and their needs By analyzing customer sentiments, Panasonic can improve service delivery and create exceptional experiences for consumers As a result, the company is committed to enhancing service quality and achieving sustainable growth in the Vietnamese market, enabling a deeper understanding of the factors that influence customer satisfaction.
20 happiness Based on it, the business can develop the proper marketing strategies and procedures to raise consumer satisfaction when visiting the warranty center
This study aims to help Panasonic Vietnam pinpoint the critical factors influencing customer satisfaction, assess customer contentment with Panasonic's warranty and service policies, and offer recommendations for improving service quality.
LITERATURE REVIEW
Theoretical basis
A service is defined as an intangible act or performance delivered by one party to another, which may or may not be linked to a tangible product (Kotler, 2004) Customer service activities, such as handling complaints, processing claims, and billing, are essential for meeting customer demands and are typically managed within an organization's customer service department (Kettinger and Lee, 1994; Lee et al., 2000; Lim and Palvia, 2001) In modern manufacturing, the relationship between tangible products and intangible customer services is crucial, as both must be competitively aligned to deliver customer value (Farahani et al., 2011) Research indicates that effective service can differentiate products in the marketplace, providing a significant competitive advantage (Brown, 1992; Mathe and Shapiro, 1993; Wellemin, 1984) Consequently, businesses are increasingly prioritizing the delivery of exceptional customer service.
While manufacturing and service operations have commonalities, most services are created during the interaction with the customer Key to evaluating service quality are five essential components that significantly impact customer perception Additionally, the model identifies five critical gaps that can result in challenges in service delivery.
Reliability is the ability of a company to deliver the service it has promised
Assurance - a term used to describe an employee's expertise, decency, and capacity to inspire confidence
Tangibles, which include the staff's physical surroundings, tools, and clothing
Empathy, which is demonstrated by the company's commitment to giving each customer individualized service
Quickness of response, which represents a readiness to lend a hand and render timely assistance (Gitomer, 1998; Griffin, 1995; Heskettet al., 1990; Parasuraman and Grewal, 2000)
Customer satisfaction (CS) is crucial for businesses to remain competitive, as it reflects the extent to which customer expectations for products or services are met or exceeded To successfully implement a CS philosophy, organizations must identify their customers, understand their requirements and expectations, and measure their perceptions Despite the importance of these activities, many firms struggle to grasp what customers truly expect and how to effectively satisfy them Addressing this challenge is essential for enhancing consumer satisfaction, as demonstrated in the evaluation of service quality at Panasonic Vietnam.
Customer retention, as defined by Zineldin (2000), is the commitment to continue business with a specific company Retaining customers is increasingly recognized as more profitable than acquiring new ones (Weinstein, 2002), leading businesses to prioritize building a loyal customer base Customer acquisition is not only expensive but also demanding in terms of time and resources, prompting firms to focus on customer loyalty as a pathway to enhanced financial performance (Anderson et al., 1994) Research by Reichheld and Sasser (1990) supports this, showing that greater customer loyalty correlates with increased revenue, market share, and reduced acquisition costs Additionally, studies indicate that exceptional customer service drives profits, reinforcing the notion that satisfied customers tend to be loyal (Bennett and Rundle-Thiele, 2004; Zineldin).
Research indicates that customer retention (CR) can lead to numerous advantages, such as enhanced market share, positive word-of-mouth, reduced costs, and decreased price sensitivity Additionally, it contributes to improved efficiency and increased productivity.
Customer retention (CR) is often viewed as a key indicator of customer loyalty (CL), suggesting that satisfied customers are more likely to return for future purchases This article will explore how this relationship influences customer commitment to a brand's services.
Customer loyalty (CL) is the result of an organization providing benefits that encourage consumers to continue or increase their purchases It has gained significant attention from researchers due to its impact on business performance Defined as a customer's long-term commitment to a firm, CL involves repeatedly acquiring and using its products and services, along with recommending it to others This loyalty is crucial as it not only enhances market share but also boosts profitability through active repeat purchases and positive brand endorsements Furthermore, loyal customers contribute to increased revenue and operational efficiency, as retaining them is significantly less costly than acquiring new ones Therefore, fostering customer loyalty is essential for maximizing economic gains for any organization.
Customer satisfaction (CS) plays a crucial role in enhancing consumer loyalty, as satisfied customers are more likely to remain loyal, ultimately driving business success (Kotler and Keller, 2012) As satisfaction transforms into loyalty, CS is identified as a key driver of customer loyalty (CL), highlighting that only the most content customers contribute significantly to a company's growth.
Research indicates that customer satisfaction (CS) significantly influences customer loyalty (CL), with higher satisfaction levels leading to increased loyalty and lower satisfaction resulting in a decline in loyalty (Lin and Niu, 2009) Studies by Bolton et al (2000) and Fornell and Wernerfelt (2002) further confirm that greater customer happiness correlates with stronger loyalty This theory is applied to evaluate customer loyalty among Panasonic Vietnam's consumers, aiming to boost the brand's market share of loyal customers and uphold its industry reputation.
2.1.5 Linking customer satisfaction, retention and loyalty
In recent years, researchers have increasingly focused on the impact of customer satisfaction (CS) following service episodes, exploring its relationship with service quality, customer retention (CR), and customer loyalty (CL) A review of the literature indicates that service quality is the key antecedent of CS, as highlighted by studies from Anderson and Sullivan (1993), Brady et al (2002), Caruana (2002), and Tontini and Silveira (2007) Furthermore, numerous studies have established that both service quality and CS are significant predictors of CL, supported by findings from Bodet (2008), Grace and O'Cass (2005), Karatepe et al (2005), and others Additionally, previous research has demonstrated a strong connection between CS and customer retention.
Customer satisfaction (CS) and customer loyalty (CL) are closely interconnected, as highlighted by Rowley (2000) and supported by Homburg and Giering (2001), who noted a strong positive correlation between the two Additionally, Gable et al (2008) emphasize that customer loyalty is a direct outcome of customer satisfaction, underscoring the importance of prioritizing CS to foster long-term CL.
Customer satisfaction (CS) is crucial for companies, as highlighted in existing literature (Kumar et al., 2011) Research indicates that service quality is a key driver of CS, which in turn enhances customer retention (CR) and fosters customer loyalty (CL) Consequently, corporate managers must prioritize strengthening CS in today's competitive global marketplace To stay ahead, many businesses are actively identifying essential service features that contribute to CS and loyalty It is essential for any organization to closely monitor and improve CS.
CL, and the customer's purpose to refer to the company (word of mouth) Customers' intentions, such as word-of-mouth, are commonly acknowledged as crucial elements of
Displeased consumers can significantly impact a competitive firm, as negative experiences often lead to complaints and adverse word-of-mouth, reducing the likelihood of repeat purchases Conversely, satisfied customers are more inclined to return, explore additional products within the same line, and promote the brand positively.
Customers are increasingly seeking non-physical services throughout the product life cycle, in addition to high-quality items, across all categories, including industrial goods, capital goods, consumer goods, and domestic appliances This concept, known as 'product service system,' can be divided into three categories: product-oriented, use-oriented, and result-oriented In a product-oriented product service system, the business model primarily focuses on product sales while incorporating additional services like appropriate after-sales support (ASS) According to Patelli et al (2004), ASS encompasses activities conducted after a product's sale, aimed at enhancing customer satisfaction and product performance.
● Ensuring the continuing availability of items and restoring their operation in the event of a fault
● Resolving difficulties faced by end users when using items
● Assisting the customer in creating, managing, and regulating product-related activities and processes
● Assisting customers at the end of the product's life cycle
● Improving client satisfaction and helping to build a competitive edge
After-sales service (ASS) encompasses a range of activities aimed at supporting customers post-purchase, fostering loyalty and ensuring effective product usage and disposal (Gaiardelli et al., 2007) Additionally, ASS is characterized by all activities that enhance the product-centric transaction, emphasizing the importance of customer support throughout the product lifecycle (Rigopoulou et al., 2008).
(2010), the phrase "after-sales services" has been handled in the literature from two
SERVQUAL Model
The SERVQUAL methodology, created in 1985 by A Parasuraman, Valarie Zeithaml, and Leonard L Berry, is designed to assess and enhance quality in the service and retail industries Known as the Service Quality Model, SERVQUAL serves as a research tool to analyze consumer expectations and perceptions of service, effectively addressing the gap between client needs and expectations This model evaluates service quality through its five key dimensions, providing a comprehensive framework for improving customer satisfaction.
The SERVQUAL model, originally based on ten components—responsiveness, reliability, competence, access, courtesy, communication, credibility, security, understanding of consumers, and tangibles—has been streamlined to focus on five key factors: reliability, assurance, tangibles, empathy, and responsiveness, also referred to as the RATER model These elements serve as a scale for assessing service quality from the customer's perspective and are crucial for understanding customer needs, making them vital for effective service marketing.
Reliability refers to the extent to which a service can be trusted to deliver the expected results consistently This important metric evaluates an organization's ability to provide dependable services A company that consistently meets service expectations is deemed reliable, highlighting its commitment to quality and customer satisfaction.
Assurance: The level of confidence that a consumer has in the quality of service is referred to as assurance
Tangibility: The physical appearance of the organization's product or service is referred to as tangibility It encompasses aspects such as cleanliness, neatness, and attractiveness
Empathy: Empathy refers to a company's ability to understand what its customers want and need
Responsiveness: The responsiveness of a service relates to how quickly it answers to the needs of its customers
2.2.2 SERVQUALs Questionnaire of Five Dimensions
A sample survey is essential for gauging customer needs for a product or service, focusing on consumer relations Initially, SERVQUAL included 22 questions, which were refined through customer feedback to ensure relevance Participants were first asked to describe their ideal service provider in a specific category, followed by an evaluation of the service quality delivered by particular firms within that industry.
The 22 SERVQUAL questions are designed to assess service quality and customer satisfaction across five key dimensions By analyzing responses to these questions, businesses can gauge their reliability and authenticity, as well as their effectiveness in meeting customer needs.
Tangible Service Quality Question Area
Concerning the availability and use of modern equipment
If the physical facilities are visually excellent
If the staff are neatly dressed
Is the physical appearance of the facilities consistent with the type of service industry?
Reliability Service Quality Questions Area
Does the firm respond within the timeframes promised?
Does the firm use an empathetic and soothing attitude when a customer has a problem?
Do they provide their services at the times specified?
Do they maintain accurate records?
Responsiveness Service Quality Questions Area
Should they inform customers when the service will be performed?
Should they expect staff to provide prompt service?
Will the employees be willing to assist customers?
When and how should employees respond to customer demands
Assurance Service Quality Question Area
Do customers feel safe when transacting with employees?
Are the employees polite and respectful?
Does the company provide appropriate support for employees to accomplish their jobs well?
Empathy Service Quality Question Area
Do the companies provide personalized service to each customer?
Do the employees provide personalized service to each customer?
Do the employees properly comprehend the customer's requirements?
Do the employees have the customer's best interests at heart?
Do the businesses operate at times that are convenient for all customers?
2.2.3 The five Gaps of Service Quality
The article discusses five critical gaps in service quality management that lead to a disconnect between customer expectations and actual service delivery, resulting in subpar service quality This approach, which emerged as one of the earliest methods for evaluating and improving service quality, highlights the importance of addressing these gaps to enhance overall customer satisfaction.
The knowledge gap occurs when there is a discrepancy between client expectations and management's perception of service quality This disconnect highlights that managers often lack awareness of the specific qualities that constitute service excellence and how to effectively deliver these to meet client needs.
Standards Gap: This gap develops when companies struggle to translate their impressions of client expectations into features of service quality
Performance Gap: This gap occurs when the services that junior employees really provide do not meet the management's standards for service delivery
Communication Gap: This gap arises from the discrepancy between the level of service that consumers really receive and what corporations promise in PR, marketing, and propaganda campaigns
Gap between need and perception: This term describes the variations that take place when a customer's needs are met or not by a service they are utilizing
A high-technology product is characterized by its durability and complexity, consisting of various components designed for medium-term use and ease of repair When advanced technology is utilized in creating such a lasting product, it is classified as high-tech The high technology market is known for its modernity and sophistication, evolving at a pace that often outstrips traditional enterprises.
To seize optimal opportunities and enhance performance, businesses must proactively anticipate changes in their external environment Developing marketing strategies that align with the current status of products and leverage competitive advantages is essential for guiding a company's growth trajectory.
Customer perceptions of service quality are shaped through interactions and are inherently subjective, influenced by individual evaluations and satisfaction levels These perceptions can fluctuate over time, even for the same service Enhancing service quality is vital for business growth, as it fosters customer satisfaction and strengthens relationships between companies and their clients.
To enhance customer satisfaction, it is crucial for businesses to engage in various service-related activities, including addressing customer inquiries and complaints, understanding customer needs, providing quality services, and building strong relationships between service personnel and clients Additionally, establishing service standards, creating service centers and websites, and evaluating service efficiency are vital steps As a result, industries are increasingly focusing on both the production of goods and the essential services that accompany them (Armstrong and Stephens, 2005).
Previous research
No Author Title Objective Methodology
The Influence of Consumer Behavior on Brand Success: A Case Study of Panasonic Corporation
Investigate the influence of consumer behavior on brand success
A mixed method of quantitative and qualitative methodology
The Relationship Between Customer Satisfaction and Organizational Success:
Examine the customers' satisfaction that drives to the success of the company
Quantitative method which is a questionnaire to collect the data from respondents
Consumer education and service quality: conceptual issues and practical implications
Conceptual relationship between consumer education and service quality prior to developing an information‐education continuum that could help organizations recognize when consumer education might be a useful competitive strategy
Discussion of practical issues that organizations need to consider before implementing consumer education programs
Creating A Better Competitive Edge Through
Environmental Sustainability: A Case Study of Panasonic
Panasonic's strategies for its better competitive edge through environmental sustainability
The study analyzed the data collected from the company's websites, customers' personal experiences, and questionnaires The surveys on
33 customers' feedback on Panasonic products and services were carried out
Marketing service relationships: the role of commitment
This paper identifies theoretical antecedents and consequences of commitment in relationships in a services context
An empirical study demonstrates that affective commitment is positively linked to trust in a partner's honesty and benevolence, the quality of the service outcome, and overall customer satisfaction with the delivered service.
An Analysis Of Purchase Decisions On Customer Satisfaction Through Customer- Based Brand Equity And Product
Consequences For Air Conditioner Panasonic
Determine the effect of customer-based brand equity (CBBE) and product innovation on consumer satisfaction through purchasing decisions of Panasonic air conditioners in Medan
The research uses quantitative methods with a causal associative research approach
Service Marketing and Quality Strategies
Service marketing creates more influential programs, based models and it is apparent in the prototypical features, which are identified as distinctive services apart from products
Basic foundation of highly productive service-dominant views of many exchanges that take place in service marketing, from which, appropriate strategies can be generated
Observational Data Collection Methods for Services Marketing: An Overview
Three key dimensions that distinguish the various forms of observational methods are presented
Applications of observational data collection methods to services marketing research are explored
Service as a marketing strategy: A case study at reliance electric
This article presents a case study of an industrial company that effectively implemented a marketing strategy focused on "offering the best service in the market." This approach led to a significant increase in both market share and profitability, demonstrating the key concepts discussed in this paper.
The concept of internal marketing is as valid for industrial companies as for a service company
Assessing after-sales services quality: integrated SERVQUAL and fuzzy Kano's model
In the researched home appliance business, evaluate the quality of after-sales services based on their influence on customer satisfaction
Using the structural equation modeling (SEM), SERVQUAL scale, and the fuzzy Kano model
After-sales service quality as an antecedent of customer satisfaction: The case of electronic appliances
The purpose of this paper is to investigate the effect of after-sales services on customers’ satisfaction as well as on their behavioral intentions, namely
“repurchase intention” and “word-of-mouth”
The research conducted followed a quantitative methodology The selected research tool was a questionnaire, which was administered via phone interviews using the CATI process
Modeling and Investigating the relationship of after
The study has demonstrated the application of multiple
Gap analysis, Linear regression and Path analysis
(2016) sales service quality with customer satisfaction, retention and loyalty – A case study of home appliances business regression analysis in studying the influence of ASS attributes on
CS, CR and CL, and the results of the study have helped in analyzing the performance of the case companies so as to devise suitable strategies in improving
Reframing the past: A new approach in service quality assessment
Propose a methodology able to assess service quality by means of firm-specific quality dimensions
A gap model of purchasing’s internal service quality:
Concept, case study and internal survey
Develop an instrument for the measurement of the internal service quality of purchasing departments
Based on the SERVQUAL and the general gap model of service quality
Hypothesis
Finn and Lamb (1991) and Naik et al (2010) examined customer satisfaction (CS) in retail markets by analyzing five key characteristics of service quality Numerous studies have confirmed that the dimensions of SERVQUAL significantly influence customer satisfaction.
Despite the lack of research on the impact of After-Sales Service (ASS) on Customer Satisfaction (CS), Customer Retention (CR), and Customer Loyalty (CL) in various service sectors, this study aims to fill that gap Building on previous findings, it proposes a hypothesis with specific variable coding.
H1a, b, c: Reliability has a strong influence on CS/CR/CL
H2a, b, c: Responsiveness has a positive influence on CS/CR/CL
H3a, b, c: Assurance has a significant impact on CS/CR/CL
H4a, b, c: Empathy has a positive influence on CS/CR/CL
H5a, b, c: Tangible has a strong association with CS/CR/CL where
36 a = Influence on CS, b = Influence on CR, c = Influence on CL
Figure 2.1: Hypothesized model source by author
Reliability is defined as an organization's ability to deliver promised services accurately and consistently, reflecting the service employee's capability to provide dependable service (Ojo et al., 2010) Scholars such as Garvin (1987), Parasuraman et al (1988), and Zeithaml et al (1988) highlight the significance of dependability in delivering quality service Key attributes of service reliability include consistent service quality, a diverse range of service options, timely provision of necessary spare parts, and the fulfillment of service promises These elements collectively demonstrate an organization's competence in meeting customer expectations and ensuring service delivery as promised.
Reliability significantly impacts customer satisfaction (CS), customer retention (CR), and customer loyalty (CL), aligning with the organization's commitments and expectations These attributes are crucial for the organization to achieve its goals in CS, CR, and CL.
Responsiveness refers to the eagerness to serve customers and deliver prompt service Key aspects of responsiveness include providing customers with accurate completion times, timely service, and a readiness to assist without being too busy to address requests In this study, the dimensions of responsiveness encompass a reasonable warranty policy, swift resolution of customer complaints, and fair servicing costs A solid warranty policy enhances customer satisfaction (CS) by ensuring certain services are offered free of charge Customers expect positive interactions with service employees and quick responses, which directly impact customer satisfaction, customer retention (CR), and customer loyalty (CL) Therefore, we hypothesize that responsiveness significantly enhances CS, CR, and CL, demonstrating its positive influence on overall customer experience.
Hypothesis H3a, b, c Assurance has a significant impact on CS, CR, CL
Knowledgeable and courteous employees foster confidence and trust in customers, establishing a sense of assurance (Anderson et al., 1976; Parasuraman et al., 1991; Zeithaml et al., 1988) This study identifies key traits related to 'assurance,' including customer handling, professionalism, technical competence, and interpersonal behavior of service personnel The success of service organizations is largely dependent on their human resources, as these individuals directly interact with consumers, making effective customer handling a vital component of the service process Previous research has highlighted the importance of service personnel's professional demeanor, technical skills, and interpersonal abilities.
38 interpersonal behavior As a result, we propose that assurance has a significant impact on CS, CR, CL
Empathy in an organization refers to its personalized and caring approach towards customers According to Parasuraman et al (1991), empathy is assessed through two main components: individualized attention and convenient operational hours This service dimension encompasses attributes such as the accessibility of service personnel, ease of communication, and understanding of customer needs The ease with which customers can reach service professionals plays a crucial role in their overall satisfaction.
Understanding customer needs is crucial for delivering exceptional customer satisfaction This leads to the development of the empathy theory, which posits that empathy positively impacts customer satisfaction (CS), customer retention (CR), and customer loyalty (CL).
The dimension of 'tangibles' encompasses all physical aspects of service delivery, including personnel, equipment, and facilities (Ojo, 2010) Extensive research has shown that the physical environment significantly influences consumer perceptions of quality (Berry and Terry, 1986; Bitner, 1990; Bitner, 1992; Zeithaml et al., 1988) In this context, 'tangibles' refer to essential service attributes such as the provision of tools and equipment, accessibility of service centers, complaint registration facilities, and the availability of technical manuals and information When customers find service tools readily available, it enhances their confidence in receiving quality service Additionally, easy access to service centers and effective complaint registration systems further assures customers of reliable support The presence of quality manuals and informative guidance at service centers not only provides customers with relevant information about products and services but also boosts satisfaction, ultimately fostering customer loyalty.
CR and CL As a result, the idea tangible is presented, which has a strong association with CS, CR, and CL
METHODOLOGY
Research process
Figure 3.1: Research process proposed by the author
Sampling
The convenience sampling method, also referred to as random sampling, will be employed for this survey due to its cost-effectiveness and ease of selection, making it a preferred choice among students (Ackoff, 1953) Crossman (2019) emphasizes its suitability for studies with limited budgets and time constraints that hinder the development of a larger sample According to Ilker Etikan et al (2016), convenience sampling is a non-probability technique that includes participants from the target population based on practical criteria such as accessibility, geographical proximity, availability on specific dates, and willingness to engage Additionally, this method allows for efficient data collection by distributing online questionnaires via mobile contacts, social media platforms like Facebook and Instagram, and personal acquaintances, ensuring a streamlined approach to gathering primary data for research (Dudovskiy).
The study proposes a sample size of 155 participants, adhering to Hair et al (2009) guidelines, which recommend a minimum of five respondents per variable in a questionnaire With a total of 31 variables, the calculated sample size is 31 multiplied by 5, resulting in 155 This minimum sample size is necessary due to time and resource constraints, and it is important to note that some responses may be invalid due to limitations among respondents.
Data collection
Customer feedback on services at Panasonic Vietnam warranty centers can be gathered through various methods, including telephone interviews, face-to-face interactions, email or online surveys, and paper surveys.
Panasonic's warranty service is now accessible through an online Google Form, with data collection taking place from May 6 to June 2 The author gathered 216 responses via an online survey, and after filtering out invalid entries, 210 valid responses were retained for data analysis.
Build questionnaire
Researchers Hair et al (2009) indicate that the scale employed in this study will be based on prior research, with modifications made to align the content with the report's objective of examining buying behavior.
The survey will utilize a 5-point Likert scale, featuring response options ranging from strongly disagree to strongly agree A detailed table outlining the measurement items for the survey variables will follow.
Disagree Neutral Agree Strongly agree
A high-technology product is designed for durability and longevity, despite its complexity and intricate components These products are built for medium-term use and can be repaired or maintained, showcasing advanced technology in their creation The high technology market is characterized by its modern sophistication and rapid evolution, often outpacing traditional industries.
Proactively anticipating external changes and responding promptly leads to optimal opportunities, strategies, and performance To successfully navigate development, a company must create marketing plans that align with the current status of its products and leverage its competitive advantages.
Customer perceptions of service quality are shaped by their interactions with a company, making it a subjective evaluation influenced by individual satisfaction levels These perceptions can fluctuate over time and vary even for the same service Enhancing service quality is vital for business growth, as it fosters customer satisfaction and strengthens connections with clients, ultimately driving business expansion.
To enhance customer satisfaction, it is crucial for businesses to engage in various service-related activities, including addressing customer inquiries and complaints, understanding customer needs, and building strong relationships between service personnel and clients Additionally, establishing clear service standards, creating service centers and websites, evaluating service efficiency, and implementing corrective measures are vital steps in this process As a result, industries are increasingly focusing not only on goods production but also on the accompanying services that enhance the overall customer experience.
Numerous studies have demonstrated that the five SERVQUAL dimensions significantly influence customer satisfaction (CS), customer retention (CR), and customer loyalty (CL) across various service contexts Initially identified by Parasuraman et al in 1985 and 1988, these dimensions include responsiveness, assurance, tangibility, dependability, and empathy Research by Zaim et al (2010) and Mengi (2009) highlights responsiveness and assurance as critical factors, while tangibility, dependability, and empathy also serve as key predictors of customer satisfaction, as supported by findings from Kumar et al.
(2010) and Lai (2004), certainty, empathy, and tangibles have the biggest effects on improving CS
Table 3.2: SERVQUAL-dimensions based ASS attributes
RL1 Consistency of service quality Seth et al., (2006) and
RL2 Choice and range of service Haywood-Farmer
RL3 Provision of needed spare parts
RL4 Provision of service as promised
RS1 Reasonable warranty policy Pakdil et al (2012)
RS2 Responsiveness to customer complaints
RS3 Time taken for resolving the complaint
RS4 Reasonable servicing cost Kasper and Lemmink
(1989), Mersha and Adlakha (1992) and Pakdil et al (2012)
AS1 Handling of customers Parasuraman et al
AS2 Professionalism of service people
AS3 Technical competence of service people
(2002) and Pakdil et al (2012) AS4 Interpersonal behavior of Parasuraman et al
44 service people (1985) and Kasper and Lemmink (1989)
EM1 Accessibility of service people
(1985), Mittal and Lassar (1998), Soderlund and Rosengren
EM2 Easiness to contact service people
EM3 Understanding the needs of customers
TA1 Provision of service tools/equipments
TA2 Accessibility of service center Parasuraman et al
TA4 Quality and availability of technical manuals / service documents
TA5 Availability of information and advice at service center
CS1 To ensure your satisfaction, the service center staff is polite and professional
CS2 The warranty center is completely capable of addressing customers' demands and wants
CS3 Product pricing remains consistent with quality, and buyers benefit from seasonal discounts and gifts
7 Customer CR1 Brand’s service quality makes Ahn, Han and Lee,
45 retention you satisfied and wanting to purchase again
CR2 The brand provides you with all the conveniences you need
CL1 You are satisfied and want to keep purchasing from the company because of the personal behavior and atmosphere of the service environment
CL2 Brand’s product models suitable for your living environment
The service quality scale developed by Parasuraman includes 21 observable variables that are used to assess 5 service quality components as experienced by clients, including:
The following table is a description of the SERVQUAL scale used to assess the level of customer service at Panasonic Vietnam's warranty centers:
SERVQUAL, developed by Parasuraman in 1991, serves as a comprehensive scale for evaluating service quality, value, and dependability across various service sectors However, each industry possesses distinct characteristics, leading to variations in service quality components Numerous researchers have applied this scale in different contexts and countries, highlighting the lack of uniformity in service quality across industries Consequently, this study will adapt the SERVQUAL scale specifically for Panasonic Vietnam's warranty service for electrical products.
Elena Delgado-Ballester (2003) developed a brand trust scale that includes the following elements:
When it comes to brand X, you get exactly what you want
Brand X consistently meets or exceeds my expectations
You have confidence in brand X and will employ its products/services
Brand X will never fail you
The questionnaire has been changed and reordered to fit the respondents' perceptions based on the original question scale and brand trust scale
Table 3.3: The questionnaire used to assess the level of customer service at Panasonic
Vietnam's warranty centers after correction
Responsiveness 1 Panasonic has a reasonable warranty and exchange policy for different lines of electronic products
2 Service center staff are always on the hotline and ready to assist you
3 Service center staff are always ready to help you
4 Warranty service fee and reasonable return policy
5 Product declaration and delivery procedures are done quickly Empathy 6 Service center staff understand your needs
7 Service center staff pay special attention to your urgent needs
8 Service center staff provide attentive service when interacting with you
9 Service center staff interact with you in a kind and friendly manner
Assurance 10 The staff at the service facility is always professional and polite to you
11 The team at the service facility gains your trust
12 Your questions can be answered technically by the service
13 When taking a device for warranty, you feel assured and have no concern of switching out components or getting the wrong equipment
Tangible 14 The service center staff are well-dressed and professional
15 The service center staff always has all the required and expert equipment for providing home warranty service
16 The service center has a mailbox and a phone number where you may easily provide feedback as needed
17 While waiting, guests can enjoy a variety of entertainment options, materials, and newspapers
18 The service center has all the information and equipment to support your needs
19 Service center working hours are convenient for you
Reliability 20 The warranty center always follows through on the promises made on the warranty card
21 The service center staff describes the machine's damage following inspection/repair in a clear, honest, and persuasive manner, and provides detailed instructions
22 Genuine spare parts are available at the service center
23 The warranty center always delivers the machine as scheduled and notifies the customer if there is a cost
24 Perfect repair service center right from the first time
25 To ensure your satisfaction, the service center staff is polite and professional
26 The warranty center is completely capable of addressing customers' demands and wants
27 Product pricing remains consistent with quality, and buyers benefit from seasonal discounts and gifts
28 Panasonic's service quality makes you satisfied and wanting to purchase again
29 The brand provides you with all the conveniences you need
Customer loyalty 30 You are satisfied and want to keep purchasing from the company because of the personal behavior and atmosphere of the service environment
31 Panasonic product models suitable for your living environment
- The Responsiveness component includes 5 observed variables that measure the ability to perform services on time and on time
- The Empathy component includes 4 observed variables that measure the ability to care, sympathize and take care of each individual customer
- Assurance is measured by 4 observed variables These variables measure the service provider's ability to create trust for customers
- The Tangible means are measured by 6 observed variables These variables measure the modern appeal of facilities, appropriate hours of service, and how employees dress
- The Reliability scale includes 5 observed variables that measure the level of performance of the set service programs
- The Customer satisfaction component consists of 3 observed variables that measure customer satisfaction and perception
- The Customer retention component includes 2 observable variables that assess a buyer's chance of purchasing again in the future
- The Consumer loyalty component includes 2 observable variables that assess customer loyalty and commitment to the brand
Data Analysis Methodology
The descriptive analysis categorizes based on demographic information such as gender, age, occupation, living area, and frequency of use
Text and chart will be used to present this data
The data collected would be analyzed by SPSS software
Cronbach's alpha is widely recognized as the most popular measure of reliability, as noted by Hair et al (2009) In this study, the reliability of the measurement items for each variable is assessed using Cronbach's alpha, which indicates the degree of correlation between individual items and the overall total The alpha value can vary from 0 to 1, reflecting the strength of the relationship.
According to Mallery (2003), a reliability score below 0.5 suggests low reliability, while a score above 0.9 indicates high reliability Nunnally and Bernstein (1994) emphasized the importance of examining the correlation between individual components and the overall construct They stated that item-total correlations should ideally be above 0.3, and any item with a correlation below this threshold should be removed.
Exploratory Factor Analysis (EFA) is a statistical technique that reduces a large set of variables into a smaller, more manageable group while preserving the essential meaning of the original variables (Hair et al., 2009) To effectively conduct EFA, certain prerequisites must be met.
Factor loading is accepted when > 0.5
Kaiser – Meyer – Olkin (KMO) of Sampling Adequacy > 0.5 In case the KMO value is under 0.5, that means no distinction and validity between these variables
Confirmatory Factor Analysis (CFA) is a specialized form of Structural Equation Modeling (SEM) that emphasizes measurement models, specifically examining the connections between observed variables, known as indicators, and underlying latent variables or factors.
Following the factor analysis step to identify Exploratory Factor Analysis (EFA) for Confirmatory Factor Analysis (CFA), evaluating model fit in CFA is crucial The measurement model comprises scales and latent variables that represent the research concepts With the collected dataset, it is essential to assess whether this measurement model aligns with the input data requirements This involves determining if the scales satisfy the criteria for a good scale and identifying any observed variables that may not contribute effectively to the model.
According to Hu and Bentler (1999), the evaluation of model fit in covariance structure analysis relies on both conventional criteria and new alternatives, as outlined in their study published in Structural Equation Modeling.
CMIN/df ≤ 3 is good, CMIN/df ≤ 5 is acceptable
CFI ≥ 0.9 is good, CFI ≥ 0.95 is very good, CFI ≥ 0.8 is acceptable (CFA ranges from 0 to 1)
GFI ≥ 0.9 is good, GFI ≥ 0.95 is very good
RMSEA ≤ 0.06 is good, RMSEA ≤ 0.08 is acceptable
PCLOSE ≥ 0.05 is good, PCLOSE ≥ 0.01 is acceptable
Structural Equation Modeling (SEM) is an advanced statistical analysis method designed to assess complex interactions among multiple variables within a model Utilizing various regression equations, SEM effectively represents the relationships between these variables This technique integrates quantitative data and causal assumptions, allowing researchers to visually investigate the connections among different factors.
Structural Equation Modeling (SEM) is a powerful statistical technique that helps prioritize resources and enhance customer service by analyzing relationships between variables of interest It is particularly effective in addressing business research challenges, as it can utilize latent variables that are often difficult to quantify.
Analyze several regression models at the same time
Path analysis with a large number of dependent variables
In a model, represent multidimensional relationships between variables