Factors affecting customer satisfaction and behavioral intention in the fast food industry in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY INTERNATIONAL SCHOOL OF BUSINESS ---PHAN THI KIM SUONG FACTORS AFFECTING CUSTOMER SATISFACTION AND BEHAVIORAL INTENTION IN THE FAST FOOD IND

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

INTERNATIONAL SCHOOL OF BUSINESS

-PHAN THI KIM SUONG

FACTORS AFFECTING CUSTOMER SATISFACTION AND

BEHAVIORAL INTENTION IN THE FAST FOOD

INDUSTRY IN VIETNAM

MASTER OF BUSINESS

Ho Chi Minh City – Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

INTERNATIONAL SCHOOL OF BUSINESS

-PHAN THI KIM SUONG

FACTORS AFFECTING CUSTOMER SATISFACTION AND

BEHAVIORAL INTENTION IN THE FAST FOOD

INDUSTRY IN VIETNAM

ID: 22120070

SUPERVISORS: PROF NGUYEN DONG PHONG

DR NGUYEN PHONG NGUYEN

Ho Chi Minh City – Year 2014

Table of Contents

Chapter 1: Introduction

1.1: Research background 1

1.2: Research problem 4

1.3: Research objectives 5

1.4: Research scope 6

1.5: The structure of the proposal 6

Chapter 2: Literature review and hypothesis

2.1: Service quality 8

2.2: Food quality 10

2.3: Hedonic value 11

2.4: Utilitarian value 12

2.5: Customer satisfaction 12

2.6: Behavioral purchase intention 13

2.7: Hypothesis development 13

2.8: The proposal model 17

Chapter 3: Research Methodology

3.1: Research design 18

3.2: Measurement scale 19

3.3: Data collection 21

3.4: Data analysis method 23

Chapter 4: Data analysis and result

4.1: Description statistic 24

4.2: The reliability test – Cronbach’s alpha 25

4.3: Exploratory factor analysis 31

4.4: Confirmatory factor analysis 36

4.5: The structural equation modelling 41

4.6: Bootstrap 43

Chapter 5: Conclusion, implication and limitation

5.1: Conclusion 45

5.2: Managerial implication 46

5.3: Limitation 48

References 49

Appendix 53

ABSTRACT

Fast food industry market is a one of potential market in Vietnam with many famous brand join and expand such as KFC, Lotteria, Jolibee, Mc Donalt, Pizza Hut … More and more players mean more and more competitor How to attract more and more customer is the focus of all players The study will find out four key factors effect to customer satisfaction is service quality, food quality, hedonic value, and utilitarian value The research tests the factors the relationship between customer satisfaction and behavioral purchase intention

CHAPTER 1 INTRODUCTION

This chapter provides the general pictures of this study This study has two objectives: first, to identify factors affecting customer satisfaction in the fast food industry in Vietnam, secondly, to test the effect of these factors on customer satisfaction and purchasing intention behavior The research background section presents the overall situation of the fast food industry in Vietnam Then the research problem is identified and research objective is determined, which in turns provide a ground for developing the research methodology and setting scope of this study

1.1 RESEARCH BACKGROUND

The fast food restaurant caters to people who want to buy food that is fresh and served quickly In American, most fast food restaurant have drive-thru service that allows people to get their food without getting out of their cars The fast food industry started its first step to

growth when McDonalds became popular in the late 1940s and early 1950s (What is the Fast food industry, n.d.) Fast food restaurants design menus focus on being able to cook the food quickly and easily They strive for absolute consistency so customers can be assured that everything they buy will always taste the same regardless which location they visit

McDonald's has outlets in 126 countries on six continents and operates over 31,000 restaurants worldwide On January 31, 1990, McDonald's opened a restaurant in Moscow and broke opening-day records for customers served The Moscow restaurant is the busiest in the world The largest McDonald's in the world, with 25,000 feet of play tubes, an arcade and play center, is located in Orlando, Florida, USA

There are numerous other fast food restaurants located all over the world Burger King

has more than 11,100 restaurants in more than 65 countries KFC is located in 25 countries

Subway is one of the fastest growing franchises in the world with approximately 39,129 restaurants in 90 countries as of May 2009, the first non-US location opening in December

1984 in Bahrain Wienerwald has spread from Germany into Asia and Africa Pizza Hut is located in 97 countries, with 100 locations in China Taco Bell has 278 restaurants located in 14 countries besides the United States

In Thailand, chain restaurants are considered to cater for customer who is willing to pay more for better service In fact, chain restaurants in Thailand often offer a nicer décor, a cleaner environment or even a better service compared with those in the United States (Polyorate & Sophonsiri, 2010) Since the chain restaurant commonly uses service quality to distinguish itself from the competitors, providing a high level of service quality has become an ultimate goal for many chain restaurants (Polyorat & Sophonsiri, 2010)

The fast food industry is a large and diverse industry with plenty of opportunities Fast food franchises are responding with new offerings, pricing and strategies to lure consumers back in Consumers want new ways to have a fast and healthy food, so the fast food industry

continues to evolve when the economy strengthens, and the fast food franchise profitability is expected to be promising

Tenth biggest fast food in the world is Subway, Mc Donalds, Starbuck, KFC, Burger King, Pizza Hut, Dunkin’s Donut, Domino Pizza, Dairy Queen, Papa John’s Most of them join Vietnam market

Foods in fast food restaurants are standardized and customer gets familiar meals in every location of one chain For example, customers can enjoy the same taste of pizza in Pizza Hut restaurants in Ho Chi Minh City or Pizza Hut branches in Hanoi Fast food restaurant usually (as KFC, Lotteria ) uses the same format for all restaurants in all regions

With over 65% of 90 million people in Vietnam is less than 35 years old, the fast food industry in Vietnam has an annual grow rate of 26% during the economic downturn while other industries experienced a decline in terms of sales According to data provided by Business Monitor International in 2011, Vietnam was ranked 8th in the Asia Pacific region in terms of food and beverage business environment (Vietnam fast food market see bright future, 2013)

Vietnam fast food market is rising with many giant names such as Lotteria with 162 restaurants, KFC with 130 restaurants and Jollibee with 30 restaurants Some more chain which has joined the Vietnam fast food market in the recent years includes Pizza Hut, Burger King, Popeyes and McDonald’s It could be seen that young people in Vietnam will help to develop the fast food industry According to foreign players, Vietnam is an emerging market for fast-food development compared with other markets in Asia (Hoang Phi, 2013)

Fast food industry in Vietnam get a big boom in 2014 when KFC gains 180 stores in after 17 years join the market while Lotteria has 187 stores in Vietnam after 16 years Pizza Hut opens the 50th restaurant in Vietnam in 2014 IPP group is owner of Burger King, Domino and Popeyes with total 41 stores in nationwide

This can be concluded that while Vietnam is potential market for fast food industry, this

is the time for player to understand clearly the key factors effect to customers and how to build customer loyalty to be success in Vietnam market to choose the best way to make customer satisfaction

1.2 RESEARCH PROBLEM

With the high rate of young adult in Vietnam, 65% as mention above, the fast food industry has experienced a fast growing stage Beside the chance, there are threats of new entrants to the industry which increase the level of industry competition and thus each industry players have to find ways to enhance their competitive advance to stay away from the fierce competition To survive, fast food restaurant needs to follow their market-oriented strategy that focuses on enhancing customer satisfaction and purchasing intention Fast food restaurants have to learn and change their menus to enhance customer satisfaction

These stores of Jollibee, numerous corners in Ho Chi Minh City are increasingly frequented by young people, especially children who will insist on having easy-going meals treated by their fond parents To better cater to these customers, many stores have managed to localize ingredients as a way to attract more patrons

According to Truong Ham Liem, the marketing manager of Lotteria Vietnam, “Lotteria focuses on developing products and services continuously to serve customers, especially fast-food rice” “We mainly target local teenagers, but it is a fact that in past years our main customers were young people and white-collar workers.” Liem says the fast-food business is thriving in Vietnam regardless of the global economic crisis, adding rice now is an important ingredient in the menu to attract locals Also, Demis Flore, vice president of Jollibee says that the most popular choice at Jollibee’s is rice with chicken, which brings 60% of Jollibee’s total turnover (When fast food is localized, 2009)

The two biggest fast chains in Vietnam set a plan to open more and more restaurants in Vietnam KFC own 116 restaurant at the end of 2012 and plan to have 200 restaurants at the end of 2015 In 2011, Lotteria had 100 restaurants in Vietnam and will reach 200 stores in

2016 In the recent years, more and more foreigner fast food player join Vietnam market and expand quickly as Pizza Hut, Jollibee, Burger King, Domino, Popeyes, Mc Donalt’s, Subway

…Burger King invests 1 store/160,000 people (Nguyên Hưng, 2012)

“A report in 2012 by W&S Group, an online market research group in the Asia Pacific region, with 272 people aged above 16, showed that young people come to fast-food restaurant

at least once every three months.” (Vietnam fast-food market sees bright future, 2013)

With many famous players of fast food industry in Vietnam, players have to learn how

to survive and develop in Vietnam As Vietnam is a potential and challenge market, fast food restaurants in Vietnam have to understand the key factors affecting customer satisfaction and how to build customer loyalty, and how to improve customer purchasing intention and recommending to others because word of mouth are very effective in Vietnam

1.3 RESEARCH OBJECTIVES

There are two objectives of the study:

1 Identifying factors affecting customer satisfaction in the fast food restaurant industry in Vietnam

2 The relationship between customer satisfaction and customer purchase intention behavior in the fast food restaurant industry in Vietnam

1.4 RESEARCH SCOPE

This study focuses on fast food consumers living in Ho Chi Minh City, the largest economic center of Viet Nam with the population of ten million people This city gathers people from many provinces, and cities in Vietnam Most player choose

Firstly, the author builds model and questionnaire based on previous researches Secondly, the author collects data by some ways Thirdly, the researcher uses Cronbatch’s alpha to test scales availability and factors analysis to determine which of fairly large set of items are most answered most similar by the respondents Then, the researcher uses CFA to test the relationship of six construct of factor service quality Finally, the author uses SEM to test the relationship between four factors: service quality, food quality, hedonic value, utilitarian value with customer satisfaction and between customer satisfaction and behavioral purchase intention

1.5 THE STRUCTURE OF THE STUDY

The study includes five chapters as following:

 Chapter 1: Introduction

The chapter includes the following contents: the background of the research, research problems, research objectives, research scopes, and the research structure

 Chapter 2: Literature review and hypothesis

The chapter presents the fundamental theories and definition of each factors, construct, proposed hypothesis and theoretical modeling In this chapter, the author presents the conceptual model of the study

 Chapter 3: research methodology

The author presents the research design, research methodology, and the process of conducting the research in this chapter

 Chapter 4: Data analysis and result

The characteristics of collected samples, method to collect data, and the result of the research analysis are presents in the chapter Based on the result, the author tests the hypothesis

 Chapter 5: Conclusion, implications and limitations

This chapter performs the main result of the research, the contribution of the study in management theory and practice as well as the limitations of the study for future research direction

CHAPTER 2 LITERATURE REVIEW AND HYPOTHESIS

The chapter identifies key factors effect to customer satisfaction and customer purchase behavior intention There are many research to survey and find out which factors influence to customer satisfaction and build behavioral purchase intention in many market as in Thailand, Chinese … The studies indicate factors effect to customer satisfaction in fast food restaurant Qin and Prybotuk (2010) defines service quality, food quality, perceived value are key factors affect to customer satisfaction Namkung and Jang (2007) tested the effect of food quality in customer satisfaction Ryu (2010) proved that hedonic value and utilitarian value effect to customer satisfaction

Quality is known as the performance of product or service (Churchill & Surprenant, 1982; Johnson & Formell, 1991) In fast food industry we will concern on food quality and service quality

2.1 SERVICE QUALITY

The importance of service quality is substantially addressed in the fast food management literature Superior service leads to satisfied and loyal customers whose continued patronage is essential to the success of fast food restaurant On the otherwise, poor service quality increase customer dissatisfaction and the likelihood that customer dine at a competitor’s fast food restaurant and become an active champion in persuading others to go elsewhere (Gilbert et al., 2004) Hence, it is crucial for supervisor, management team to understand how customers perceive the service they provide, and what components might determine the nature

of the perceived service quality in fast food restaurant

Service quality is “the delivery of excellent or superior service relative to customer expectation” (Zeithaml and Bitner 1996, p.117) There are two dimensions of service quality: technical and functional Technical quality relates to meal provision and functional quality relates to how to provide a meal (Polyorat and Sophonsiri, 2010) In restaurant industry, there are many researcher test SERVQUAL instrument (Parasurama et al, 1985) The dimensions of SERVQUAL include reliability, tangibles, responsibility, assurance, and empathy Berry and Parasuraman (1991, p.16) define the dimension as:

1 Reliability: the ability to perform the promised service dependably and accurately

2 Tangibles: the appearance of physical facilities, equipment, personnel, and communications materials

3 Responsiveness: the willingness to help customers and to provide prompt service

4 Assurance: the knowledge and courtesy of employees and their ability to convey trust and confidence

5 Empathy: the provision of caring, individualized attention to customers SERVQUAL has been widely used by service quality researchers for some considerable period of time The five components of the model become the most popular strategy for competing in a service environment, especially where a high level of competition is evident (Albaba, 2006) Consequently, the introduction of SERVQUAL changes the face of service industry Since the items defines in the SERVQUAL instrument are thought to be too general (Akbaba, 2006)

SERVQUAL scales measures service quality by the degree of discrepancy between customer’s normative expectation for the service and their perceptions of the provider’s actual performances (Parasuraman et al., 1985, 1988) Five dimensions are unsheathed as the main attributes of service quality across a variety of services

Beside the five components, the way of employee in restaurant faced with their failure of their mistake is very important How employer explain, apologize, solve mistake with make customer happy or unhappy with the restaurant Qin and Prybutok (2007) show the necessary

of recovery and put one more dimension in service quality is recovery Most customers can accept that service is not flawless and mistakes are tolerated if they believe that the restaurant is concerned about resolution of the service problem

Failure itself does not necessarily lead to customer dissatisfaction; however, failure to handle recoveries effectively can lead to lost customers and negative word of mouth (Heskett et al.,; McColl et al., 2005) Moreover, the complete resolution of critical service failure can even provide positive word of mouth endorsements and future repeat patronage (Leong & Kim, 2002)

2.2 FOOD QUALITY

Food quality is viewed related to satisfaction within fast food restaurants (Kivela et al., 1999; Law et al., 2004, Johns and Howard, 1998) Food quality is a necessary condition to satisfy the needs and expectation of customers Suled and Hensley (2004) investigate that food quality appeared to be the most significant predictor of customer satisfaction although food quality explain only 17% of repeat – patronage intentions and lump all food attributes into only one variable, food quality

Food quality is one of the key constructs in the model for the restaurant experience because it is developed on the aspect of technical quality Food quality includes the factors: presentation, variety, healthy options, taste, freshness, temperature (Namkung and Jang, 2007)

Kivela et al (1994) indicate many attribute of food quality: presentation, tastiness, menu item variety, and temperature Presentation is how attractive the food looked like and decorated

as a tangible cue for customer perception of quality The presentation of food is the key food attribute in a modeling dining satisfaction and return patronage (Namkung and Jang, 2007)

Menu with many items help customers have many option to meet customers’ demand Many proactive restaurants have created and assortment of food and beverage offerings Menu item variety is a crucial attribute of food quality in creating dining satisfaction (Kivela et al., 1999; Raajppot, 2002)

Besides looking for variety menu, customer pays attention in the nutrition of food Healthy food has significant effect on customer perceived evaluation of the restaurant experience (John & Tyas, 1996) Nutritious food is one of the core properties in dining satisfaction and return patronage Customer interests in healthy menu items

Taste of food and the freshness of food show how delicious of the food Taste of food is believed to influence restaurant customer satisfaction and future behavior intentions (Kivela., 1999) Freshness of food has been cited as a crucial intrinsic quality cue of food (John & Tyas, 1996; Kivela et al., 1999)

Temperature effects to flavors, taste, smell, and color of food Temperature is a sensory element of food quality (Namkung and Jang, 2007)

2.3 HEDONIC VALUE

Customer seeks a fun, fantasy arousal, sensory stimulation, and enjoyment fast food restaurant to have meal Hedonics value is customers’ desires for entertainment such as the affective response of excitement It can be defined as “more subjective and personal than its utilitarian counterpart and resulting more from fun and playfulness than from task completion” (Babin at al., 1994, p 646) Hedonic value reflects entertainment and emotional potential Hedonic evaluation is more affective than cognitive in nature Hedonic values are non –instrumental, experiential, affective and often related to non-tangible retailer/product attributes (Ryu et al., 2010)

The adventurous nature of hedonic value reflects shopping’s entertainment and emotional potential resulting from the fun and play of the experience versus the achievement of any pre-specified goal Hedonic value indicates and assessment of the overall worth of consumption activity, representing a more comprehensive picture of the value

2.4 UTILITARIAN VALUE

Utilitarian value is described as “resulting from some type of conscious pursuit of an intended consequence” (Babin et al., 1994, p 645) It is evaluated as a traditionally functional, instrumental, and cognitive in nature (Ryu et al., 2010) It effects fulfillment of instrumental expectations of consumers in products or services In the utilitarian view, consumers are concerned with purchasing products in an efficient and timely manner to achieve their goals with a minimum of irritation

Hedonic value and utilitarian value reflect consumers’ evaluations of the consumption experience Utilitarian dimension results from work aspects and the hedonic dimension derives from the fun perspective (Ryu et al., 2010)

Thus, in this study, the author adopts this two dimensional conceptualization of consumer value

to an evaluation of interaction experiences (Heung and Ngai, 2008) Hunt (1977) defined customer satisfaction as “an evaluation rendered that the product experience as at least as good

as it was supposed to be” (p 459)

A customer satisfies if he or she can get a product or service with the same quality or higher quality than what he or she expects Service-encounter and overall satisfaction are two ways of viewing customer satisfaction (Bitner and Hubbert, 1994) Service-encounter means customers are satisfied with a specific service encounter and the rest is based on multiple encounters (Polyrat and Sophonsiri, 2010) Customer satisfaction is and overall judgment process of perceived discrepancy between prior expectation and actual consumption (Han and Ryu, 2009)

2.6 BEHAVIORAL PURCHASE INTENTION

Purchase intention can be classified as one of the components of consumer cognitive behavior on how an individual intends to buy a specific brand or product

Behavioral intention shows the belief of customers The signal of customer behavioral is that customers want to be bonded with a company Customers say positive things about company recommend the company or service to others and remain loyal to company (Namkung and Jang, 2007) The obvious reason to satisfy customers is to acquire repeat business and positive word of mouth, thereby improving a chance of firm profitability High level of satisfaction increases customers purchase intention Behavioral intentions include visit, revisit, recommendation, and positive word of mouth intentions

2.7 HYPOTHESIS DEVELOPMENT

Relationship between service quality and customer satisfaction:

Service quality plays an important role in customer satisfaction Service quality is one key factor make customer satisfy The connection between service quality and customer satisfaction has been well established in the services marketing literature (Antony et al., 2004; Ladhari, 2009; Sivadas and Baker-Prewitt 2000) Service quality directly and positively influences in customer satisfaction (Qin and Prybutok, 2009; Polyrat and Sophonsiri, 2010) Customers in fast food restaurant have many options while more and more brands joined the market industry Customers become smarter and compare one with other to choose the best so,

it is more difficult to make customer satisfy Customers nowadays focus on service quality Service quality includes six constructs: reliability, responsibility, assurance, empathy, recovery and tangible

Customer have high expectation in a cleaning, convenience restaurant with well- trained staff how is the attitude of staff Based on the researches, the author posits that service quality

is the antecedent of customer satisfaction

The first research hypothesis is:

H1: Service quality has a positive effect on customer satisfaction

Relationship between food quality and customer satisfaction:

Food quality is one key element of the overall restaurant experience (Keivela et al., 1999; Raajpoot, 2002; Sulek & Hensley, 2004) Food quality is viewed related to satisfaction within fast food restaurant (Namkung and Jang, 2007; Qin and Prybutok, 2010) The results of these researches show the positive effect of food quality to customer satisfaction Vietnamese nowadays care more about the quality of food when choosing a restaurant to enjoy a meal The more the incomes of customer increases, the more customers will pay attention on quality, especially food quality because the food effect to customer’s health By the way, customers were attracted by how a food is presented Customers prefer delicious, fresh, and healthy food

As a result, the second hypothesis is:

H2: Food quality has a positive effect on customer satisfaction

Relationship between hedonic value and customer satisfaction:

Ryu et al., (2010) showed that the hedonic value influence customer satisfaction Hedonic value influence customer satisfaction (Babin et al, 1994) Most of people currently were high pressure with family; work, school … so they need a place can serve them good food, good service and good feelings Fast food restaurants also are the place for customer cheer happiness to friend or family Nowadays, many Vietnamese parents choose fast-food restaurant for their children birthday party Customers would like to choose a fun, pleasant, exciting restaurant The factors offer the satisfaction to customers Customers do not find a place to have meal Customers choose a place to enjoy meal Therefore, hedonic value is very important for a fast food restaurant

The third hypothesis is:

H3: Hedonic value has a positive effect on customer satisfaction

Relationship between utilitarian value and customer satisfaction:

Ryu et al., (2010) showed that the utilitarian value influence customer satisfaction More and more customers do not have more time for lunch, dinner Nowadays, time is very important for many customers Customers think carefully on using time and money The demand of customers is increasing day by day They are smart customers They require many factors for their pay To saving time they need a quick service To enjoy, the need a convenience play By the way, they need a restaurant give them economics meal as well The meal has to value as the money they pay Utilitarian is one key factor makes customer happy

The fourth hypothesis is:

H4: Utilitarian value has a positive effect on customer satisfaction

Relationship between customer satisfaction and behavioral purchase intention:

Getty and Thompson (1994) indicated that high level of satisfaction make customer intention to purchase increase and customer would recommend the product to other Han and Ryu (2007) showed that the high level of customer satisfaction is increasing revisit and recommendation intentions, positive word of mouth Young people in Vietnam usually have lunch or dinner in group Word of mouth is strong effect in marketing strategy When customers satisfy with a restaurant, customers usually remember or take address of the restaurant They would like to back to the restaurant when they have chance By the way, customers would like to share it with their friends, their family Especially, some customers will hold some parties their as birthday party, welcome party, farewell party Customer satisfaction has a positive effect on behavioral purchase intention

The firth hypothesis is:

H5: Customer satisfaction has a positive effect on behavioral purchase intention

2.8 THE PROPOSAL MODEL

Based on the review of the previous literature review and hypothesis presented, the author proposes the conceptual model as below:

Figure 1 Conceptual model

Summary:

This chapter mentions about the definition and theoretical background of each concept

in the model The above literature indicates the factors affect to customer satisfaction and relationship between customer satisfaction and behavioral purchase intention There are five hypotheses in this study

Customer satisfaction

H1 H2

H3

H4

H5

CHAPTER 3 RESEARCH METHODOLOGY

In this chapter, the author mentioned about the ways to find the answer for research questions The chapter includes six main contents: research design, research process, research scale, sample size, data collection procedure and data analysis method

3.1 RESEARCH DESIGN

The author focused on examining the factors affecting to customer satisfaction and how customer satisfaction toward behavioral purchase intention in fast food industry in Viet Nam The researcher tested the effect of these factors service quality, food quality, hedonic value, utilitarian value on customer satisfaction and relationship between customer satisfactions with behavioral purchase intention Service quality factors included six constructs such as reliability, responsibility, tangible, recovery, empathy, and assurance Figure 1 presented for the conceptual research model of the study Primary data collected from consumers in Ho Chi Minh City are used in the research A questionnaire survey was used as data collection method Based on the items and scales of previous research shown in figure 3.2, the researcher created a questionnaire included two part: the first part is general information the researcher need from observation as aged, income, sex, career and the second part was include all items

in figure 3.2 The author translated the questionnaire in to Vietnamese for delivering to respondents

The author comprised in two phases, a pilot study, and a main survey In pilot study, the researcher interviewed directly twenty people in Ho Chi Minh City and got their feedback about primary questionnaire Twenty pilot observations were the author’s friends and colleagues The researcher got all feedback from twenty observations to find out which words

should be change to let observation easy to understand the meaning of the studying and to answer The author adjusted the questionnaire to be more suitable to Vietnam market, clearer and easier to understand (See appendix 1)

 Service quality: Quin and Prybutok (2009) research that service quality includes

6 construct: reliability, tangibles, responsiveness, assurance, empathy, and recovery

There are five items for the first construct: reliability:

REL1 providing service as promised

REL 2 sympathetic and reassuring

REL3 Dependable

REL4 On-schedule service

REL5 Accurate charge

Tangible is measured by five items:

TAN1 Clean dining area

TAN2 Well-dress employees

TAN3 Using disposable gloves and hair net

TAN4 Seating available

TAN5 Parking available

Responsibility includes four items:

RES1 Telling exact service time

RES3 Prompt service

RES4 Employees willing to help

Assurance has four following items:

ASS1 Trust employees

ASS2 Feel safe for financial transactions

ASS3 Friendly employees

ASS4 Knowledgeable employees

There are four items to measure empathy:

EMP1 Available of utensil, etc

EMP2 Convenient operating hours

EMP3 Convenient locations

EMP4 Completely package food

Recovery is presented by four following items:

REC1 Employee quickly apology for mistake

REC2 Care about customer complaint

REC3 Skill and ability to deal with complaint

REC4 Employees empower to provide compensation

 Food quality is measured by six items according scales of Namkung and Jang (2007) FQ1 Food presentation is visually attractive

FQ2 The restaurant offers a variety of menu items

FQ3 The restaurant offers healthy options

FQ4 The restaurant serves tasty food

FQ5 The restaurant serves fresh food

FQ6 Food is served at the appropriate temperature

 According to Ryu et al (2010), there are four items to measure hedonic value:

HV1 I ate out at fast a fast food restaurant since I could have good feeling HV2 Eating out at the fast food restaurant was fun and pleasant

HV3 The dining experience at the fast food restaurant was truly a joy

HV4 During the dining experience at the fast food restaurant, I felt the

excitement of searching food

 Ryu et al (2010) are used three times to measure utilitarian value construct:

UV1 Eating out at the fast food restaurant was convenient

UV2 It was waste of money when eating out at the fast food restaurant

UV3 Service at the fast food restaurant was quick

 Namkung and Jang (2007) measure customer satisfaction based on two items:

SAS1 I am satisfy with the service in this restaurant

SAS2 I am pleases to have visited the restaurant

 Customer satisfaction towards behavioral intentions is measured by three items borrowed from the scales of Ryu et al (2010)

BI1 I would like to come back to the restaurant in the future

BI2 I would recommend the restaurant to my friends or others

BI3 I would more frequently visit the restaurant

In totally, the study used 44 items to measure 11 constructs, include 9 independent variables and 2 dependent variables

3.3 DATA COLLECTION

According to Hair et al (2010), minimum observation is five times than items The total item of the research is 44 so the total observation is more than 220 samples According to Tabanik and Fidell (1991), observation should be more than 50 + 8*m (m is total independent variables) For the research, there are four independent variables so the minimum observation should be 82 To measure the scales in the study, the author aimed to get 300 answers so the authors used more than 300 observations to get feedback

The questionnaire surveys sent to respondents living in Ho Chi Minh City in three ways: delivering directly hard copy to respondents, interviewing, and send link to respondents via the internet by Google docs The author sent the survey link to respondents via email, Facebook, and yahoo chat The observations clicked on the answer and finished by clicked on submit the link After three weeks, the author received 236 feedbacks from Google docs

Two hundred hard copies were sent to researcher’s friend, colleagues, and students at University of Economic and University of Natural Science to interviews In returns, the researcher received 142 answers in hard copy

After checking 378 answers from Google docs and hard copy, the author removed error answers such as missing answer or answer with the same value for most of the question in the questionnaire In hard copy, we found out some have not answer enough question in the questionnaire Finally, the author got 319 usable answers to analyze It met the requirement of minimum sample size for the research

Table 1: the results of collecting questionnaires

Interview and send

survey by hard copy

general questions, totally 48 questions had to answers It took about 15 minutes to finish the questionnaire As a result, only 319/378 answers meet the requirement of the survey

Finally, 319 answers were reviewed and imputed the raw data in SPSS statistic with the scales in the figure 3.2 to analyze

3.4 DATA ANALYSIS METHOD

After consolidated all answer in excel file, the author got raw data of the survey The author used SPSS software to analyze collected data The researcher used Cronbach’s alpha and validity of measurement scales to evaluate the reliability and validity of measurement scales Then, the researcher using CFA to evaluate the significant of all items Finally, the author used SEM and bootstrap to test the relationship between independent variables and dependent variables to propose the hypothesis in figure 2.7

CHAPTER 4 DATA ANALYSIS AND RESULT

In this chapter, the author reported the result of the research and analyzed the result This was included the following steps: firstly the authors described how to collect data for the research, and statistic of the respondent Secondly, the researcher tested the reliability and validity of the scales by using Cronbach’s alpha and exploratory factors analysis Then, SPSS software was used to test the effected of four factors to customer satisfaction and relationship between customer satisfaction and behavioral purchase intention

4.1 DESCRIPTIVE STATISTIC

The survey link was sent to respondents via mail, Facebooks, yahoo chat and 200 respondents directly by interviewed or send hard copies The author got 378 feedbacks in return After eliminating invalid responses, the sample comprised 319 usable cases as in figure 3.4 From four general questions, the researcher could get some general information of the respondents such as age, sexual, income, and career In the questionnaire, the author divided four groups of age included less than twenty years old, from twenty to less than thirty years old, from thirty years old to less than forty years old and from forty years old and older There were six careers for interviewee to choose including staff, student, supervisor, housewife, freelancer, and other The respondent could choose one from four groups of income, first group was lower than five million, second was from five to ten million, third was from ten to fifteen million and the rest was over than fifteen million Most of respondents were office staff and students Woman was 62% and man was 28% in total sample 54.8% of the respondents was at the age

of 20 to 40, 64.7% got income from 5 to 15 million/month

The below table is summarizing of four general questions:

Table 2: sample characteristics

4.2 THE RELIABILITY TEST: THE CRONBACH’S ALPHA TEST

The Cronbach’s alpha was used to measure reliability of scales factors (one factors content at least 3 items) (Nguyen, 2013) The Cronbach’s alpha of scales for each construct helped to delete unreliable scales or unsuitable scales The purpose of the test was making sure