Tourist satisfaction towards food and restaurant service in Mui Ne

Using data set form a sample of 180 customers, the study found that prices has the most influence to customer satisfaction compared to service quality, food quality and atmosphere.. Obje

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

HUA VU THANH THAO

RESTAURANT SERVICE IN MUI NE

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

HUA VU THANH THAO

RESTAURANT SERVICE IN MUI NE

ID: 22110055

MASTER OF BUSINESS (Honours)

SUPERVISOR: Prof Le Nguyen Hau

Ho Chi Minh City – Year 2014

ABSTRACT

Customer satisfaction is popular topic of many research However, the demand of customers changes very quickly The necessary of understanding current customers need are always the concern of business especially restaurants service This study examines the relationship among restaurant attribute to customer satisfaction who have experiences of restaurant service in Mui Ne It also investigates the impact of customer satisfaction to word of mouth after their perception of service Using data set form a sample of 180 customers, the study found that prices has the most influence to customer satisfaction compared to service quality, food quality and atmosphere Then customer satisfaction has positive impact on word of mouth These findings suggest that in order to increase customer satisfaction, restaurant should take consideration of price strategy On the other hand, quality of food, service and atmosphere also need to increase to attract more customers

CONTENTS

CHAPTER1: INTRODUCTION 1

1.1.Research background 1

1.2.Objective of the study 3

1.3.Significant of the study 3

1.4.Reseach methodology 4

1.5 Scope of the study 4

1.6.Research structure 4

CHAPTER 2: LITERATURE REVIEW 6

2.1 Customer satisfaction in restaurant industry 6

2.2 Restaurant attributes 7

2.3 Stimuli in restaurant 9

2.3.1 Food quality 9

2.3.2 Service quality 11

2.3.3 Atmosphere 11

2.3.4 Price 12

2.4 Word of mouth 13

2.5 Research model 14

CHAPTER 3: METHODOLOGY 16

3.1 Research method 16

3.2 Research instrument and measurement scales 16

3.3 Questionnaire design 19

3.4 Sample 20

3.5 Data collection and procedure 20

CHAPTER 4: RESULT 24

4.1 Exploratory Factor Analysis (EFA) 24

4.1.1 Validity 24

4.1.2 Reliability analysis 37

4.2 Regression analysis 40

4.2.1 Multiple regression analysis 40

4.2.2 Simple regression analysis 46

4.3 Discussion of the findings 48

CHAPTER 5: IMPLICATION, LIMITATIONS AND CONCLUSION 51

5.1 Implication 51

5.2 Limitations 51

5.3 Conclusion 52

TABLES Table 3.1: Source of measurement scales 19

Table 4.1: KMO and Bartlett's Test 1A 25

Table 4.2: Total Variance Explained 1A 27

Table 4.3: Rotated Component Matrix 1A 28

Table 4.4: KMO and Bartlett's Test 1B 28

Table 4.5: Total Variance Explained 1B 30

Table 4.6: Rotated Component Matrix 1B 31

Table 4.7: KMO and Bartlett's Test 2A 31

Table 4.8: Rotated Component Matrix 2A 32

Table 4.9: KMO and Bartlett's Test 2B 33

Table 4.10: Total Variance Explained 2A 34

Table 4.11: Rotated Component Matrix 2B 35

Table 4.12: KMO and Bartlett's Test 2C 35

Table 4.13: Total Variance Explained 2C 36

Table 4.14: Rotated Component Matrix 2C 36

Table 4.15: Reliability analysis result 39

Table 4.16: Correlation Matrix 43

Table 4.17: Multiple Regression result 43

Table 4.18: Anova of Multiple Regression 44

Table 4.19: Coefficients of Multiple Regression 44

Table 4.20: Simple Regression Result 46 Table 4.21: Anova of Simple Regression 47 Table 4.22: Coeficients of Simple Regression 48

PICTURES

4.1: Regression Standardized Residual (MRL) 40 4.2: Regression Standardized Residual (MRL2) 41

FIGURES

Figure 2.1: Proposed research model 15

Figure 3.1: Research process 22

CHAPTER 1: INTRODUCTION

1.1 Research background

All of the service businesses today are improving their service quality to increase customers’ satisfaction In order to achieve customer satisfaction (CS), recognizing customers' needs and being able to satisfy them is very important Great profits will come

to enterprises which understand and apply effective policies of customers’ satisfaction rapidly, especially restaurant industry As Reisig and Chandek (2001) discussed the fact that customer’s expectation are different depend on their knowledge of products or service This means that if the service performance is good as they expected, customers will be satisfied Gilbert, Veloutsou, Goode & Moutinho (2004) stated that the success of a company is not how much services and goods they can provide, it is how well the company satisfies customers Along with that, satisfied customers are the long term success of business As mentioned, great satisfied customers will bring more profit and success to the business In addition, a research has shown that customers who are not satisfied will inform

to eight to ten people about their experiences (Leboeuf, 1987) so that customer satisfaction has a strong linkage with their behavior

Specifically, in restaurant industry, to increase sales, the priority for restaurant owners is to understand guest satisfaction Moreover, restaurant industry has many segments and different types of service encounter so it is very important to restaurant in determine factors make customers feel satisfaction about their service Restaurants which can deliver quality service effectively and consistently will reach the level of customer satisfaction Kotler, (2011) mentioned customers look for “a set of benefit” which can satisfy their needs In addition, customers suppose restaurant services to a package, so that they will consider several of criteria for selecting dining places (Sloan, 2004)

In this paper, customer satisfaction of food service and restaurant in Mui Ne is mainly investigated Mui Ne stays on the Southeastern Vietnam belongs to Binh Thuan province which is a coastal resort town The town is favorite destination of Russian because of the beautiful beach and inexpensive cost of tourisms service here Mui Ne beach is tropical beach which suitable for kite surfing and windsurfing to attract more tourists come to At present, according to the report of Binh Thuan department of Culture, Sports and Tourism, in 2012, Binh Thuan tourism sector has achieved revenue of VND 4,358 billion More than 3.141 million turns of visitors including 341,160 turns of foreigners, a year-on-year increase of 13.5% came to Binh Thuan Mui Ne- Phan Thiet is becoming “a paradise of resorts” of international tourists and a “Russian village” in Viet Nam because of more than 30% Russian tourists of the total international visitors comes to Vietnam annually Contributing to the growth of Mui Ne tourism, food service and restaurant are also a key factor to encourage customers stay in Mui Ne longer

In addition, Binh Thuan tourism has the strategy to attract visitors come to Binh Thuan more often and stay longer The authorities of province try to give preferential conditions to investors to improve the quality of Mui Ne area tourism and hotels service Besides, providing quality food services has become one of the critical issues in the tourism industry The demand of restaurant and food service quality is higher when the numbers of tourist come to Mui Ne increase For these reasons, understanding customer satisfaction is more important for Mui Ne food service and restaurant in order to keep current customers and attract more visitors in the future

However, there seems to be paucity of data on service quality in Mui Ne's food service and restaurant According to a number of tourists, Mui Ne food service is not as good as other coastline area It seems food service here doesn’t have investment properly Additionally, it is mentioned on Talkvietnam, there is Vietnamese restaurant discriminates

against Vietnamese in Mui Ne Therefore, the study of customer satisfaction about food service and restaurant is necessary to apply an appropriate management intervention Base

on the result of this study, Binh Thuan province or Mui Ne food service and restaurant can figure out reflective upgrading method for their best service

1.2 Objective of the study

The main purpose of this study is to explore the perception of customers towards food and restaurant services in Mui Ne and how factors related to these service effects their overall satisfaction ultimately leading to Word of mouth

• Identify factors that determine the satisfaction of customers towards food and restaurant service in Mui Ne

• Identify the influences of customer satisfaction to their behavior intention to word of mouth

1.3 Significant of the study

Although many studies had done research about customer satisfaction, but there was few of research focus on food service in Mui Ne In the study of Nguyen (2012), customer satisfaction of restaurant service was measure by seven factors: price, quality of food, service value for peaceful life, service value to social recognition, service value to social integration which only focus on service value Other research of Chau (2007), a Parasuraman model was adapted to measure customer satisfaction about restaurant service

in Can Tho So, there seem to be few of study adapted Namkung (2009) model together with (Ramapuram & Batra, 2005) measuring factor influence customer satisfaction in restaurant industry Base on two original models, this study will build the appropriate model for Mui Ne restaurant and food service in order to measure service quality here The

result of this research will be the reference for restaurant owner in order to improve their business to attract more customers

1.4.Research methodology

This study will exam the proposed conceptual model adapt from Namkung (2009) Questionnaire will be used to collect data and SPSS software is the main tool to analyze data The realiability and validity of measurement scales will be tested by Cronbach’s Alpha and Exploratory Factor Analysis (EFA) Regression analysis will perform to determine the relationship and impacts between factors in the model

1.5.Scope of the study

The survey will be conducted in Ho Chi Minh city which is the most crowded city

in Vietnam The reason is Mui Ne locates on the area not too far from Ho Chi Minh city about 200 kilometers A lot of tours travel from Ho Chi Minh to Mui Ne In addition, easy

to take bus lines from Ho Chi Minh city go to Mui Ne is one of other reason Finally, Mui

Ne becomes popular choice for people living in Ho Chi Minh who want to enjoy their vacation at weekend because it doesn’t take much time to travel there

about research concepts which is stated on their previous study Also, the argument of author to come up with hypotheses will be presented in second chapter Next chapter is methodology which describes specifically research procedure and how to collect data Chapter four presents and explains research result after analyzing by SPSS software Final chapter is the discussion of the findings, implication, and conclusion Limitation and recommendation are also stated in this chapter

CHAPTER 2: LITERATURE REVIEW

As stated above, second chapter concentrates in literature review which presents some definition of factors in research model Some of customer satisfaction definitions will

be mentioned in the first part in order to give out the overview for readers Second part will describes restaurant attribute which includes restaurant factors affects customer perception The next part will define six factors in the model and followed by some other authors point of view about research concept Then the argument of author to come up with

research hypotheses and build research model will be discussed in last part

2.1.Customer satisfaction in restaurant industry

Customer satisfaction was identified as an assessment of firm’s performance On the view of Cronin & Taylar (1992), customer satisfaction was how pleasing customers feel after experiencing products or service at certain time Other aspect explained customer satisfaction was evaluation of total consumption process which influenced post purchase intention (Johnson & Fornell, 1991) A theory of Lewin(1938) discussed customer satisfaction was the gap between their expectation and perception Specifically, if perceived performance was over expectation, customers would be satisfied

Kotler (1998) explained 3 distinct benefit level of service: core benefit, tangible benefit and intangible benefit Constitutive benefit which customers receive is core benefit The benefit of consuming and producing during the service delivery process is tangible benefit And intangible benefit relates to human element of service delivery Kim, Lee & Yoo (2006) pointed out that lighting, visual effects, layout, chairs/ tables, lamps … are tangible attributes On the other words, ambience of restaurant is used to indicate the trustworthiness of customers It is also considered as restaurant competitive factor According to Kim, Lee, Yoo, (2006); and Reich et al (2005), intangible benefit in

restaurant industry is defined as service quality where customer needs is fulfilled These consist of the attitude of service staff, such as friendliness, knowledge, competence In other study of Sulek & Henley (2004), restaurant attribute has only 3 significant: food quality, dinning atmosphere, and seating order fairness Taylor & Baker, (1994); Zeithaml Berry & Parasuraman, (1996) pointed out that overall service quality has related to core benefit, tangible and intangible benefit Other authors figured out that customer perception value has strong direct relationship with CS (Whittaker, Ledden & Kalatis, 2007), especially in restaurant industry, perceive value has strong effects to customer behavior of repeat using the service (Lee et al., 2005)

A study by Sulek & Hensley (2004) discussed service quality & food quality played

a key role in full service restaurant while speed of service is the main factor in quick service restaurant Food types and food quality are the most frequently-cited choice variables when customers select eating place, as well Another study of Kivela et al., (2000) showed the efficiency of positive experience to positive word of mouth of customer who have a great value of restaurant perception Customer will become loyal to restaurant

if they receive good service frequently and meet their expectation

2.2 Restaurant Attributes

Some of researchers have identified the relationship between CS and restaurant performance then came up with the result that satisfaction influenced customers continuously purchase the service if they perceive it is good (Sulek & Hensley, 2004; Soderlund & Ohlman, 2005; Cheng, 2005) In restaurant industry, customer’s experiences such as wait time, quality of service, food price, food quality, convenience, and menu variety would affect their satisfaction If customers feel high satisfaction, they will revisit the restaurant Cooper et.al (1993) stated that service in hospitality industry is different

from others because they provide both tangible and intangible products Also, Kumra (2008) discussed service quality was determined by production delivery process and final service Sometimes, perceived service quality by customers to be associated with risk-taking because of the various of customers Chang (2008) expressed the judgment on service quality from customers are diversity because it bases on a lot point of view of customers By these unique characteristics of service, the issue of service quality is the possibility of service defected by customers can happened (Collie et al, 2000) So it is very important for providers to deliver service to customers carefully

Fiore and Kim (2007) discussed environment can affect consumption experience It can be physical element of service environment, individual attributes, situation Zeithaml and Bitner (2000) stated that customers perceive quality by many methods so they can assess quality by various factors Baker et al (2002) also described some component influence the service encounter elements Physical environment such as music, lighting, design have the effect on visual attraction to customers Then when customers interact with intangible and tangible facility, they will make the judgment on what they perceived about the service Behavior is a key to determine how the service will be appreciated This can be for example the relationship between employees and customers So it is important for suppliers to prepare for employees knowledge and skill about customers relationship

According to Soriano, (2002), the attributes of restaurant which affected customers’ decision to come back to a restaurant for another meal was very important Finkelstein (1989) emphasized that customer’s choices of dining related to the restaurant attributes Customers tended to perceive and evaluate the attributes by comparing with context experience they got before Furthermore, there was an argument between Finkelstein (1989) and Wood (1995) that these attributes was the identity and characteristic of

restaurant It can change the act of dining and post purchase behavior in direct or indirect way

Typically, customer habitant of choosing restaurant linked to food quality, service quality, restaurant environment (Berry et al., 2002; Reuland et al., 1985) In the research of Pettijohn et al., (1997) cleanliness and service were the significant attributes of restaurant

In addition, cleanliness, employees’ behavior, quality of menu items, professional performance of restaurants’ employees and atmosphere are the most considerable factors affect restaurant customers’ dining choices (Zopiatis and Pribic, 2007) On the other study

by Liu and Jang (2009), Chinese restaurant customers specified that most important restaurant attributes were food (tastiness, food safety, freshness), restaurant cleanliness and appropriate food temperature Kivela at el., (1999) also has clarified four factors related to restaurant attributes which makes customers return to restaurant:

• Atmosphere: consist of level of comfort, level of noise, view from restaurant, overall cleanliness, restaurant’s appearances

• Convenience: include handling telephone reservations, location accessibility, parking facility, opening/closing hours

• Service: speed/efficiency of service, friendly/ polite/ helpful staffs, food/ beverage knowledge of restaurant’s staff

• Food: presentation of food, menu items variety, nutritious food, tastiness, freshness and temperature of food

2.3 Stimuli in restaurant

2.3.1 Food quality

Food quality had been defined as key element of restaurant experience (Kivela et al., 1999; Raajpoot, 2002; Sulek &Hensley, 2004) Previous study of Johns & Tyas,

customers experience restaurant According to Peri (2006), food quality is a condition which satisfy customers’ needs and expectation in restaurant As Sulek and Hensley (2004) stated in their study, food quality became the most significant factor to customer satisfaction Kivela et al (1999) designed a dining satisfaction model which indentified that food quality had several attributes: presentation, tastiness, menu item variety and temperature Raajpoot, (2002) has focused on food quality which consists of presentation, healthy of food and freshness

In general, most of researchers focused on presentation, variety, healthy, taste and freshness when evaluated food quality Presentation was indicated as how food display attracted customers It was assumed as tangible cue for customer perception of quality In a study of Kivela et al (1999), food presentation was pointed as key food attribute in dining satisfaction model Variety was one food attribute which referred to the number of different menu items Menu variety was important character of food quality in creating satisfaction (Raajpoot, 2002) Next, healthiness involved nutritious food which stated as an effect on customer evaluation In fact, customers are increasing their interest of healthy menu items comparing to the past time (Sulek & Hensley, 2004) Taste of food was considered as one

of key attribute of food quality It was not amazed that taste was usually believed to influence restaurant customer satisfaction strongly and future behavior intentions (Kivela et al., 1999) because the purpose of customers come to restaurant is enjoy food Food tasting food or bad determined level of customer satisfaction and influent to their dining decision And freshness was stated in a study of Kivela et al., (1999) as a factor impact food quality

In conclusion, food quality was the most influential factors of customer satisfaction

in choosing restaurant It is indicated that food quality was one of top three reasons when customer targeted restaurant (Mattila, 2001) Specifically, food quality seemed the key factors of overall restaurant service quality which expected to have positive relationship

with customer satisfaction Based on that discussion, this study proposed the first hypothesis as below:

H1: Customer perception of food quality has positive effect on customer

satisfaction

2.3.2 Service quality

Another stimulus in restaurant experience is service quality Service quality relies much

on interpersonal skill of employees in restaurant (Niko & Sparks, 1995) The performance

of staff can create the impact on customer evaluation of restaurant service According to

Wu and Liang (2009) restaurant employees has positive influence on customer satisfaction Customers feel satisfied when the perceived service quality with reliability, responsiveness and assurance (Brandy & Robertson, 2001) Another research of Andaleeb and Conway (2006) showed that the interact between employees and customers, price and food quality have the impact on customer satisfaction Kim & Ok, 2010 clarified the critical link between employee attitudes and behaviors to the customer’s perception of service quality and satisfaction The DINESERV method was used by Stevens, (2005) who adapted the SERVQUAL scale to measure the interaction between service providers and customer during service delivery process For all reasons, the next hypothesis will be exam in this paper:

H2: Customer perception of service quality has positive effect on customer satisfaction

2.3.3 Atmosphere

Along with food quality, physical environment or atmosphere is one of the key stimuli Levitt, (1981) mentioned customers can judge the restaurant through the environment where they have dined Wakefield and Blodgett (1994) suggested that

restaurant should provide good service facilities which referred to extensive space within the environment to create comfortable dining area

The atmosphere included visual element like space, design, lighting, music… in which interior design was a strong visual component of a physical setting that draws customer attention to restaurant (Bellizzi and Hite, 1992) Interior design might keep customers stay longer in restaurant (Wakefield & Blodgett, 1996) and environmental design had an impact on service satisfaction (Adndrus, 1986) Additionally, lighting also impacted customer perception of restaurant by creating pleasant environment (Steffy, 1990) Music or noise was a positive effect to customers’ emotions and behaviors in a restaurant setting (Baker et al., 1992; Hui et al., 1997) Based on a review of the atmospherics literature, this study will exam the second research hypothesis:

H3: Customer perception of atmosphere has positive effect on customer satisfaction

2.3.4 Price

According to Oliver (1997) customers often judged the price by comparing price with service quality Cheng et al (2008) suggested that there are two ways to calculate price perception: price reasonableness and value for money Reasonable price expresses how customers perceived price and compare it to competitors Value for money involves the relation between service provider and price offer Commonly, the services which are of high quality are well thought to be of more cost than those which are of low quality (Chittyet al., 2007) Many researchers have agreed that customer satisfaction and trust is being influenced by the price perception (Oliver, 1997; Peng & Wang, 2006) Customers can change their consume habit when they realize the high, unreasonable and unreliable pricing policies (Peng & Wang, 2006) So, in order to maintain customer satisfaction the service firms should handle customer’s perceptions about price by providing the

reasonable, attractive and low prices without decreasing the quality for the purpose of increasing the customer satisfaction

In addition, price perception is the sensitive factor influence customer satisfaction Customer also compare price of service to find if it is reasonable or not Peng & Wang, (2006) mentioned price becomes a key which can persuade customers make decision for buying a service So far, customer will understand the price and differentiate from many service providers They are willing to pay for a service which they consider the price is reasonable and fairness In a study of Chitty et al., (2007) high quality service was stated that usually cost high price Customer can switch to other service if they perceive that the price is too high, unreasonable and unreliable price policy (Peng & Wang, 2006) Therefore, the next hypothesis about price will be examined in the study:

H4: Customer perception of price has positive effect on customer satisfaction

2.4 Word of mouth

Customer satisfaction will lead to behavior intention whether it has positive or negative effects Some researchers have covered behavior intentions such as willingness to repurchase, willingness to recommend the store to the others or providing comment through word-of-mouth, (Baker et al., 2002; Hightower et al 2002) This study will choose word-of-mouth (WOM) as the outcome of customer satisfaction because it has strong influences on customer decision (Casalo et al., 2008) As (Ng et al., 2011) mentioned, WOM especially important to service providers in which products often judge based on customers experience, advices or suggestion Furthermore, comparing to real case of Vietnam, WOM still plays a big role on many market industry Customers tend to trust their communication with other customers more than the firms (Ng et al., 2011) Katz and Lazarsfeld (1955) figured out positive WOM has the most effective on changing customers

behavior comparing to newspaper, advertisement, personal selling and radio In fact, WOM has been shown to be more powerful than printed information Moreover, WOM can be spread very quickly and seriously by the innovation of internet today For those reasons, this study will use WOM as the outcome of customer satisfaction in order to come

up with solution for restaurant service through examine hypothesis below:

H5: Customer Satisfaction has positive impact on Word-of-mouth

2.5 Research model

Mehrabian and Russell (1974) mentioned that environmental stimuli have influences on a person’s emotion In their stimulus–organism–response model, the stimuli came from an external environment and consist of various elements of physical atmosphere (Bagozzi, 1986) It is also figured out that, the effect of environment on customers’ behavior was built by their emotion state Mehrabian and Russell (1974) have developed their model for many environments and the model has examined in retail and service domains Yalch and Spangenberg (2000) tesed the relationship between positive and negative emotion on post purchase behavior intentions Their result showed the approach

to actual behavior when customers feel positive, in contrast, customers tend to avoid behavior when they got negative feeling

In the study of NamKung (2008), Differential Emotions Scale (DES) were used to measure customer emotion which has impact on behavior intention That study also exam the role of each restaurant attributes to behavior intention Furthermore, Heghighi, 2012 also develop a model to test customer satisfaction and loyalty by using five characteristic

of restaurant: food quality, price, service quality, restaurant location and atmosphere Combining two research models, this paper develops a research model which will test the impact of four main feature of restaurant to CS in positive effects Then the outcome will

be linked to the impact of the influences to customer behavior intention to WOM This model below is revised for Mui Ne food and restaurant service current case

Figure 2.1: Proposed research model

(H3)

(H4)

(H2) (H1)

CHAPTER 3: METHODOLOGY

This chapter presents detail research methodology of the study First section describes research method, followed by research instrument and measurement scale Then questionnaire design is the next part The interpretation of how to choose the standard samples is mentioned in third part Final section is the brief of data collection and analysis method and research process as well

3.1 Research method

Mixed method approach is the aim of the research to collect database and exam the hypotheses The mixed methodology includes quantitative method and qualitative method Denzin (1978) defined that mixed method approach is the combination of various method

in a research to explore scientific phenomena In the other words, mixed method can be understand as using different theory to explain a phenomena For example, according to Nguyen (2013), a quantitative research can also apply qualitative method to identify and examine research problem and build measurement scale This research adapts some theory

of different authors to figure out research problem and hypotheses through qualitative method Then, quantitative method will performed by testing the hypotheses by real survey This step includes testing the appropriate between theory and real case data collected

3.2 Research instrument and measurement scale

Customer satisfaction was measured by the Likert ranging from 1 to 5: 1 (strongly disagree), 2 (disagree), 3 (fair), 4 (agree), 5 (strongly agree) to identify the perception of customers about restaurant quality This scale measures how good customers judge the restaurant over their perception Some other authors may use seven steps for these kinds of

research based on Fisher (2007) Questionnaire consists of five suggestions so that customers can rank follow the scale

Measurement scale was developed on the research of various authors Food quality includes five items: presentation of food, menu variety, nutritious of food, tastiness, freshness which adapted from Namkung and Jang (2007) Speed of service, helpful staff, attentiveness, employees’ knowledge of food are the matter to judge Service Quality (Namkung & Jang, 2009) Atmosphere was evaluated by adapting Namkung & Jang (2009) which consists of level of comfort, noise/ music, view from restaurant, cleanliness, interior design The research also adapted five items concerned to appropriate prices: reasonable price, competitive price, cost of value (Parsa, 2013) Customer satisfaction and behavior intention of WOM base on Namkung & Jang (2009) The measurement scale was transferred to questionnaire to ask respondents then, translated into Vietnamese using a translation

Menu variety There are various of dishes in the menu

Nutritious of food Restaurant offers healthy food

Freshness Ingredience looks good and taste fresh as well

Noise/ music I feel please and relax sitting in the restaurant

View from

restaurant I can enjoy the view from restaurant

Cleanliness Overall restaurant look clean and clear

Interior design

The interior design is visually apealing

It has sufficient air conditioning and lighting facility Lighting create comfortable atmosphere

Reasonable price The price is acceptable

Parsa, 2013

Value vs quality Value of service cost money

Competitive price The price of service here is cheaper than other area

All customers are treated equally by the price of food items

5 Customer satisfaction about service quality

I have eat very quality restaurant food in Mui Ne

Namkung & Jang (2009) Service response is quickly as I expected

I enjoy the pleasing atmosphere in restaurant

I willing to pay for a meal in restaurant here

6 Influence of satisfaction to WOM decision

I would like to tell positive things about restaurant to other

Namkung & Jang (2009)

I would recommend restaurant here to my friends and other

A questionnaire contains three sections relating to perception quality, customer satisfaction and behavioral intention First section will evaluate customer experience of dining follow product attributes (Johns and Tyas, 1996; Kivela et al., 1999; Raajpoot, 2002), atmospherics (Bitner, 1992; Kotler, 1973; Wakefield and Blodgett, 1994, 1996), price, and service aspects (Brady and Robertson, 2001; Stevens et al., 1995) Second section focused on customer perception about restaurant service in Mui Ne through four main factors: food quality, atmosphere, service quality, and price This section included five questions to measure how good customers feel after experiencing restaurant service in

Mui Ne Final section explores customer behavior intention whether they recommend restaurant to others by three questions The original survey questions would be designed in

English Then, they would be translated into Vietnamese

n >= 100 and n >= 5k ( k: number of variables)

This study includes six factors with thirty variables so the samples size need to be 30*5=150 respondents For Exploratory Factor Analysis (EFA), the minimum sample size

is at least greater than five times of observing variables (Hair et al., 2009) as well So, the sample size required for EFA is n=30*5=150 observations About Multiple Regression Analysis, it is indicated that the number of observations have to qualify n > 50 + 8m (m: number of independent variables) (Nguyen, 2011) With fours independent variables and thirty observing variables, the sample need to collect is bigger than 50 + 8*4 = 82 respondents In summary, the samples size should be equal or higher than 150 observations

3.5 Data collection and procedure

The survey was conducted in Ho Chi Minh City which focus on people working in office building First, twenty questionnaires were sent out for the pilot test This step

including face-to-face interview the respondents to ensure whether they have any misunderstanding with those questions In addition, the pilot test was used to determine the target respondents for the research As a result of pilot test, 60 percent of interviewees who had experience of travelling to Mui Ne working in the office Based on that, target respondents was chosen Then, the questionnaire was also revised by removing some confusing questions An email list of office staff was gathered in which 80 percent email address of people working in Ho Chi Minh City of Power Company (including all branches around the city), the rest of 20 percent related to other company Next, final questionnaire was delivered to respondents through internet by Google Survey Online survey link was added to email and sent to respondents then They had about two weeks to complete the survey Researcher also encouraged respondents share the questionnaires to their colleagues to do the survey Other email was sent to respondents before the deadline to remind them about the questionnaires as a thank you letter if they had completed the survey for the researcher

Although more than 400 questionnaires were distributed, there were 280 feedbacks were sent via Google Survey The response rate was approximate 70 percent But, there only were about 180 validity questionnaires over 280 feedbacks before This result shown that the real rate of data collected reduced to more than 45 percent However, the number

of samples still qualified the standard for data analysis in next chapter

Based on literature review, a draft scale was designed Pilot test and indept interview would perform to check the scale and determine the target respondents Then the final scale was decided to collect data through main survey After all data was gathered, the SPSS software was used to process the data The validity and reliability of measurement scales was checked using Cronbach’s Alpha value and Exploratory Factor Analysis (EFA) test The items which was not qualified the test would be considered to removed before the

next procedure of Regression Base on the particular of the model, the research would confront two regression tests Multiple Regression was the instrument for identifying the correlation and the effected level of restaurant attributes to customer satisfaction The influences of customer satisfaction to word of mouth was explored by Simple Regression

Figure 3.1: Research process

In summary, chapter three is the overview of all methodology in this study Mixed method approach becomes the main scheme which mainly focus on quantitative method for the survey Data collection with closed questions is performance in Ho Chi Minh City

Analysis

targeted to office staff The standard sample size around 150 respondents is acceptable for data analysis by SPSS software The result of data analysis will be shown in the next chapter

CHAPTER 4: RESULT

All the result of data analysis by SPSS would be presented in this chapter First part

is assessment of measurement scales which includes validity test and reliability test Validity test would performed by using Exploratory Factor Analysis to check all variables and EFA for classify variables Principle component analysis with Varimax rotation method is applied to do EFA test for four independent variables Principle axis factoring with Promax rotation method is used to check factor loading for collative variables Reliability analysis will be shown to check the validity of measurement scale after all invalidity variables are removed by validity test The purpose of doing EFA test before reliability is that it would bring out the affected Cronbach’s alpha value Then, the hypothesis checking will be performed after EFA and reliability test completed Additionally, there is a step to calculate factors’ mean to save as extra variables for regression test Finally, multiple regression analysis will be applied for independent variables, simple regression analysis will test dependent variables

4.1 Assessment of measurement scales

4.1.1 Validity

• EFA test 1

Exploratory Factor Analysis (EFA) was the method to investigate the connection among variables (Leech et al., 2005) It can help researchers identify a large similar set of items or which items had the same answers by participants There were 400 questionnaires sent to customers by email but only 280 feedbacks were collected In addition, there were only 185 validity questionnaires could use for data analysis 97% of people were asked have ever experienced restaurant service in Mui Ne Most of them recently visited there

more So the sample for Exploratory factor analysis (EFA) about the validity was 185 First step, all of thirty items was run EFA analysis

KMO and Bartlett's Test

Bartlett's Test of Sphericity Approx Chi-Square 1924.673

Table 4.1: KMO and Bartlett's Test 1A

KMO value was.7<KMO=.893<1, which expressed the sufficient for every factor (Leech et al., 2005) With Sig<.05, there was the diversity between correlation matrix and identity matrix, in which correlation are all zero On the other words, the data was appropriated

Then, the Principle component analysis with Varimax rotation was performed to evaluate thirty variables Six requested factors: food quality, service, atmosphere, price, customer satisfaction and WOM were designed to index six constructs However, after the rotation, there were seven component extracted (Table 4.3) with the first factor accounted for 13.823% of variance, 25.579% was the result of second component, and till 57.558% (see Appendix 1) accounted for seventh component

The Rotated Component Matrix (Table 4.3) presented most of items are defined as high loading with the value higher than 5 Nevertheless, there was some low value need to

be considered which was deliberated to omitted In addition, Food5, Service3, Atmosphere1, Atmosphere4, WOM2 had loading factor cluster into two components The gap between these two were quite small while all other factors had long distance

Because of the cross-loadings existed (variable loads on multiple factors), then the

cross-loadings needed to have differ by more than 0.2 to be accepted A result shown in

Table 4.3, discriminated validity occurred In order to clarify the research scales and

rearrange factors to fit component, some of variables were considered to removed from the

Cumulative

% of Variance

Cumulati

% of Variance

Cumulative