Relationships between service personal values, service attributes and customer satisfaction, a study of restaurant services in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITYInternational School of Business ---Nguyen Thi Tuyet Hong RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFAC

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Nguyen Thi Tuyet Hong

RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A STUDY

OF RESTAURANT SERVICES IN VIETNAM

MASTER OF BUSINESS (BY HONOUR)

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Nguyen Thi Tuyet Hong

RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES,

RELATIONSHIPS BETWEEN SERVICE

SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A

PERSONAL VALUES, SERVICE ATTRIBUTES

STUDY OF RESTAURANT SERVICES IN VIETNAM

AND CUSTOMER SATISFACTION: A STUDY

OF RESTAURANT SERVICES IN VIETNAM

BYNGUYEN THI TUYET HONG

ID: 60340102SUPERVISOR

Dr PHAM NGOC THUY

MASTER OF BUSINESS (by Honour)

SUPERVISOR: DR PHAM NGOC THUY

Ho Chi Minh City - 2012

I would like to express my deeply sincere gratitude to my Supervisor, Dr PhamNgoc Thuy, for her valuable guidance and advice on effective method Herprofessional research understanding helps me and my teammates recognize theresearch method thoroughly and we had experienced actual process and resultrecognition Furthermore, I would like to express my gratitude to Dr PhamDinh Tho for his devotion and patience in supporting and following ourMbus2010 class regarding the study on benefits and useful managementimplication for our career by understanding and applying the business researchmethod

Besides, I would like to thank to my colleagues in Campenon Saigon Builderswho had supported me a lot during my thesis implementation Another source

of motivation I would like to thank is my classmates ISB Mbus2010 for amutual support by sharing knowledge, guidance, spending valuable time andgiving a truly friendship during our thesis implementation

And an honorable mention goes to my family, my friends and their colleaguesfor their understanding and helping me during my data collection as well as mythesis completion

Finally, I would like to send my best regards to all of those who kindlysupported me during the data collection phase and the completion of this thesis

Ho Chi Minh City, Vietnam

January 2nd, 2013

Nguyen Thi Tuyet Hong

The purpose of this research is to empirically investigate the relationships ofservice personal values, service attributes and customer satisfaction in using aservice The empirical setting is implemented in the buffet restaurant services in

an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggestand the hub of variety of buffets The findings of this study reveal thatVietnamese customers who place the Social Value, the Personal Value, thePrice and Quality of Food are the factors impact on Customer Satisfactiontowards using buffets

Customers consider Social Value factor affecting their satisfaction towardsusing buffets by having a favorable attitude toward the social recognition, thesocial status and the more stimulating and adventurous life Additionally,customers perceive that buffet make them feel the Social Value, a higherintegration in the group, a better relationship and their friendship relationshipsstrengthening This result indicated that customers considered buffet where theycould be more connected, informed and active with the social recognition andintegration Moreover, the Personal Value factor with positive impact tocustomer satisfaction tells that customers feel more tranquility, more familysecurity, more harmony and stability in life as well as a more pleasurable lifewhen using buffets With regards to most of service and goods purchase, thePrice is always an important factor affecting customer satisfaction when theycompare the value of money paid and the value received from that transaction

A service served well with reasonable price was always attractive to customers.Out of the factors of service attribute than Price of service, this study also foundthat customers chose buffets also concerned about the Quality of food ratherthan other service attributes The significant, direct relationships between theQuality of Food and Customer Satisfaction reveal that customers in Vietnammarket presently place more concern on the quality of product or service value

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they receive This result also contributes to the literature review of studies infoodservice that quality of food is always an important factor to improve thecustomer satisfaction towards a foodservice.

Key words: service personal values, service attributes, customer satisfaction

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1

1.1 RESEARCH BACKGROUND 1

1.2 PROBLEM DEFINITION 2

1.3 RESEARCH QUESTIONS AND OBJECTIVES 3

1.4 SIGNIFICANCE OF THE RESEARCH 4

1.5 RESEARCH SCOPE 4

1.6 RESEARCH METHODOLOGY AND RESEARCH DESIGN 4

1.7 LIMITATION 5

1.8 THESIS STRUCTURE 5

CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL MODEL 6

2.1 DEFINITION RELATED TO RESTAURANT SERVICES 7

2.1.1 Casual dining 7

2.1.2 Fine dining 8

2.1.3 Fast food 8

2.1.4 Buffets 8

2.1.5 The difference between table service and buffet service 9

2.2 SERVICE ATTRIBUTES 9

2.2.1 Price of service 10

2.2.2 Quality/taste of food 11

2.2.3 Variety of food 11

2.2.4 Servicescapes 11

2.3 SERVICE PERSONAL VALUES 13

2.4 CUSTOMER SATISFACTION 14

2.5 CONCEPTUAL MODEL 16

2.6 HYPOTHESES 16

2.6.1 The relationship between service attributes and customer satisfaction 16

2.6.2 The relationship between service personal values and customer satisfaction 17

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CHAPTER 3: RESEARCH METHODOLOGY 18

3.1 RESEARCH PROCESS 19

3.2 QUALITATIVE STUDY 21

3.3 QUANTITATIVE STUDY 22

3.3.1 Construction of measurement scales 22

3.3.1.1 Measurement scale of Perceived Price 22

3.3.1.2 Measurement scale of Quality/ Taste of food 23

3.3.1.3 Measurement scale of Variety of food 24

3.3.1.4 Measurement scale of Servicescapes 25

3.3.1.5 Measurement scale of Service Personal Value to Peaceful Life 27

3.3.1.6 Measurement scale of Service Personal Value to Social Recognition 27

3.3.1.7 Measurement scale of Service Personal Value to Social Integration 28 3.3.1.8 Measurement scale of Customer Satisfaction 28

3.3.2 Questionnaire design 28

3.3.3 Sampling method and sample size 29

3.3.4 Data collection 30

3.3.5 Data analysis method 30

3.3.5.1 Reliability Analysis by Cronbach’s Alpha 30

3.3.5.2 Exploratory Factor Analysis 30

3.3.5.3 Multiple Regression Analysis 31

CHAPTER 4: RESULTS OF DATA ANALYSIS AND DISCUSSION 32

4.1 SAMPLE DESCRIPTION 32

4.1.1 Name of buffet restaurant respondents used to experienced 32

4.1.2 Cost of buffet respondents used to have 33

4.1.3 The accompanied people that respondents used to have buffets with34 4.1.4 The profession, gender and age of respondents 34

4.2.3 Reliability analysis result of measurement scale of Variety of Food37

4.2.4 Reliability analysis result of measurement scale of Servicescape to

Venue Aesthetics 37

4.2.5 Reliability analysis result of measurement scale of Servicescape to Accessibility 38

4.2.6 Reliability analysis result of measurement scale of Servicescape to Restaurant Cleanliness 39

4.2.7 Reliability analysis result of measurement scale of Service Personal Value to Peaceful Life 39

4.2.8 Reliability analysis result of measurement scale of Service Personal Value to Social Recognition 40

4.2.9 Reliability analysis result of measurement scale of Service Personal Value to Social Integration 41

4.2.10 Reliability analysis result of measurement scale of Customer Satisfaction 41

4.3 EXPLORATORY FACTOR ANALYSIS 42

4.3.1 EFA for group of predictors 42

4.3.2 EFA for group of items of Customer Satisfaction measurement scale 44 4.4 MULTIPLE REGRESSION ANALYSIS 44

4.4.1 Revised Conceptual Model 46

4.4.2 Multiple Regression Testing Assumptions 47

4.4.1.1 Multicollinearity 47

4.4.1.2 Normality and Linearity 48

4.4.3 Multiple Regression Analysis 48

4.4.4 Testing the Hypothesis 1: relationship between the Price and Customer Satisfaction 50

4.4.5 Testing the Hypothesis 2: relationship between the Quality of Food and Customer Satisfaction 50

4.4.6 Testing the Hypothesis 3: relationship between the Variety of Food and Customer Satisfaction 50

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4.4.7 Testing the Hypothesis 4: relationship between the Servicescape to

Accessibility and Cleanliness and Customer Satisfaction 51

4.4.8 Testing the Hypothesis 5: relationship between the Servicescape to Venue Aesthetics and Customer Satisfaction 51

4.4.9 Testing the Hypothesis 6: relationship between the Personal Value and Customer Satisfaction 52

4.4.10 Testing the Hypothesis 7: relationship between the Social Value and Customer Satisfaction 52

4.5 DISCUSSION 53

CHAPTER 5: CONCLUSION AND MANAGERIAL IMPLICATION 56

5.1 CONCLUSION 56

5.2 MANAGERIAL IMPLICATION 57

5.3 LIMITATION 59

REFERENCES 60

APPENDICES

APPENDIX 1 – SURVEY FORM

APPENDIX 2 - RESULTS OF CRONBACH’S ANPHA

APPENDIX 3 - RESULTS OF EFA

APPENDIX 4 - RESULTS OF MULTIPLE REGRESSION

LIST OF TABLES

Table 5: Measurement scale of Service Value to Peaceful Life (SVPL) 27Table 6: Measurement scale of Service Value to Social Recognition (SVSR) 27Table 7: Measurement scale of Service Value to Social Integration (SVSI) 28

Table 12: Cronbach’s Anpha of scale of Servicescape to Venue Aesthetics 38Table 13: Cronbach’s Anpha of scale of Servicescape to Accessibility 39Table 14: Cronbach’s Anpha of scale of Servicescape to Cleanliness 39Table 15: Cronbach’s Anpha of scale of Service Value to Peaceful Life 40Table 16: Cronbach’s Anpha of scale of Service Value to Social Recognition 41Table 17: Cronbach’s Anpha of scale of Service Value to Social Integration 41Table 18: Cronbach’s Anpha of scale of Customer Satisfaction 42

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LIST OF FIGURES

Figure 4: Price range of buffets with high use frequency 33

CHAPTER 1: INTRODUCTION

1.1 RESEARCH BACKGROUND

In Vietnam, the service sector accounts for approximately 37.7% GDP in 2011 inwhich the hotel and restaurant sectors gain approximately 11.4%* The growth ofservice sector recently is proving a fact that the more the economy developed, themore people enjoy their social lifestyle in the demand from delicious eating, good-looking apparel to high-class entertainment Ho Chi Minh City is one of the mostdynamic cities in Asia with variety of services fulfilling people’s living demand.The increase number of restaurant services recently is leading the morecompetitive business environment The restaurant services in Ho Chi Minh Cityrecently have been grown up both the quantity of service offering and theformation of services The main function of a restaurant is to provide food andbeverages with a high quality of food, professional services and an attractive spacefor enjoying their meals Any restaurant will be relatively high or low in style andprice, familiar or exotic in the cuisine it offers to different kinds of customers, and

so on Context is as important as the style and form The most popularclassification is menu styles with a variety of kinds such as French style, Italianstyle, Chinese style, Western style, Asian style, etc Restaurants can be classifiedbased on type of serve including table service, Ala carte, fast-food, self service,buffet They can be recognized by classes ranging from luxury, superior, standard,

to popular Restaurants and bars are classified as services directed at people’sbodies with its nature of tangible actions

One of the fastest growth foodservices is adapting the demand of consumersnowadays is the buffet restaurant which is developing in quantity and variationkinds of services in Ho Chi Minh City especially in centre districts Not onlythe classified hotels and restaurants but also the private sector of restaurantbusiness is offering a variety of buffet services

-*report No 51/BC-BCT

1

Customers nowadays are concentrating on the quality of life and level of socialclassification These perceived values are also affecting food services Thecustomer satisfaction is not only the quality of food they pay for but also theservice attributes that they perceived the benefits Furthermore, customers alsopay attention on the social image that the services they are using which maypresent their social classes and the satisfaction of self-enjoyment The customer

is demanding higher quality of services and considering many others attributesbefore deciding to choose a service or to re-purchase a service In keeping withthe line of customer demands, the foodservice managers need to that thefoodservice managers needs to understand well customer’s demand in order toattract customers, retain customers In a market that most of foodservices areoffering the same services, the managers must pay more attention to what theupdated trends and important factors are affecting the customers in order toadapt and have strategies to provide the services accordingly to customers’satisfaction and taking more advantages in comparison with the competitors

1.2 PROBLEM DEFINITION

Customer is more being offered a variety of choices which trend is leading to a

more competitive market and as Amy et.al (1999) stated:

In order to achieve competitive advantage and efficiency, businesses have to seek profitable ways to differentiate themselves

The only way to survive and maintaining customer revisit is to understand what

Chapter 1: Introduction

-The restaurateurs need to understand the relationship between restaurantperformance and the customer’s needs or satisfaction The restaurantperformance could be interpreted by the service quality delivering to customers.Service quality includes a wide range of factors and the understanding of keyfactors impacting the customer satisfaction is important This understandingwill enhance the restaurateurs adopting to get advantages in a race In keepingupdated with customer’s trend in demand, not only the service quality but alsothe service attributes and service personal values are considered highly impacts

In recent empirical findings, the service attributes especially the concept of

“servicescape” is leading to a new definition for b usiness managers toinvestigate Additionally, the definition of service personal values are identifiedthe impacts on customer satisfaction by many authors in different industries but

it is few in restaurant services

1.3 RESEARCH QUESTIONS AND OBJECTIVES

The purpose of this research is to empirically investigate the relationships ofservice personal values, service attributes and customer satisfaction in using aservice The empirical setting is implemented in the buffet restaurant services in

an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggestand the hub of variety of buffet services

This research is aiming to answer the following questions:

1 What are the determinants of service attributes affecting customer

satisfaction towards the buffet?

2 Do the Service Personal Values affecting customer satisfaction towards the buffet?

3 In order to retain the customer, what are the determinants the

restaurateurs should pay more attention to improve their business?

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Chapter 1: Introduction

-1.4 SIGNIFICANCE OF THE RESEARCH

It is important for management to understand what service attributes consists ofand its impact on the customer satisfaction towards a restaurant service.Today’s competitive marketplace, the customers have a plenty of choicestowards a foodservice Therefore, in order to survive and make profits, therestaurateurs need to practice a strong customer-driven orientation and satisfycustomer’s needs or satisfaction Customer satisfaction has been proved that itdetermines the longevity and financial success of a restaurant (cited byHarington et al., 2010; Crotts and Pan, 2007) Knowledge of the importance ofthe attributes would enable foodservice managers to manipulate those attributes

to enhance the consumer’s perception of quality and identify the strategies forcontinuous improvement The more restaurateurs understand the customer trend

of demand, the more successful and competitive advantages they gain

1.5 RESEARCH SCOPE

This research is conducted in Ho Chi Minh City with convenience sampling.The interviewees are from 18 to 55 years old those have been experienced thebuffets in Ho Chi Minh City

1.6 RESEARCH METHODOLOGY AND RESEARCH DESIGN

This research is applied the quantitative method which were reviewed thetheoretical background adaptable to the context The actual market demand tounderstand the determinants affecting customer satisfaction are critical Theconceptual model was constructed in combination of theory and actualcharacteristics of customers using buffets in Ho Chi Minh City The datacollected will be validated by Cronbach Anpha Reliability Analysis andselected by Exploratory Factor Analysis Finally, the model will be tested byusing Multiple Regression Analysis by SPSS version 20.0

on the evaluation of the Servicescapes factors towards customer satisfaction.

1.8 THESIS STRUCTURE

Chapter 1:

Introduction: This chapter includes a brief overview of the research

background, problems and objectives, methodology as well as the limitation

Chapter 2:

Literature review and conceptual model: This chapter comprises of

definition related to restaurant services, deep review of previous researches onthe service attributes, servicescapes, service personal values and the basis ofbuilding the conceptual model

Chapter 3:

Research methodology: This chapter presents the research process,

measurement scale, preliminary assessment of measures and data collectionprocedures as well as the data analyses process

Chapter 4:

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Chapter 1: Introduction

-Data analysis result and Discussion: This chapter consists of the official

assessment of measures, hypotheses testing, data analysis results andinterpretation

Chapter 5:

Conclusion and Implication: This chapter will conclude the findings and

providing the theoretical and managerial implications and proposing specificrecommendations for buffet restaurant managerial level in Ho Chi Minh City

CHAPTER 2: LITERATURE REVIEW AND

CONCEPTUAL MODEL

2.1 DEFINITION RELATED TO RESTAURANT SERVICES

As defined, the services are processes (economic activities) that provide time,place, form, problem solving or experiential value to the receiver Through thisconcept, the customers are buying an experience or performance and theservices are all about value creation which comes from a variety of value-creating elements rather than transfer of ownership (Understanding the nature ofservice products and markets, p.6, 7) Restaurant is a kind of consumer services.Restaurants are classified based on some criteria such as menu style,preparation methods and pricing

Auty (1992) identified the choice factors in decision to have meals at restaurantbased on four occasions including a celebration, social occasion, convenience/quick meal and business meal Food type, food quality and value for moneywere found as the most important choice variables when customers chose arestaurant

Additionally, how the food is served to the customer helps to determine theclassification The main forms of restaurant services including:

2.1.1 Casual dining

A casual dining restaurant is a restaurant that serves moderately-priced food in acasual atmosphere Except for buffet-style restaurants, casual dining restaurantstypically provide table service Casual dining comprises a market segmentbetween fast food establishments and fine dining restaurants This is kind oftable service served to the customer's table by waiters and waitresses, alsoknown as "servers" Table service is the norm in most restaurants, while forsome fast food restaurants counter service is the common form With tableservice, the customer generally pays at the end of meal

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Chapter 2: Literature Review and Conceptual Model

-2.1.2 Fine dining

Fine dining restaurant is full service restaurants with specific dedicated mealcourses Décor of such restaurants feature higher-quality materials, with an eyetowards the "atmosphere" desired by the restaurateurs The wait staff is usuallyhighly trained and often wears more formal attire Fine-dining restaurants arealmost always small businesses and are generally either single-locationoperations or have just a few locations Food portions are visually appealing.Fine dining restaurants have certain rules of dining which visitors are generallyexpected to follow often including a dress code

2.1.3 Fast food

Fast food restaurants emphasize the speed of service and also known as a QSR

or Quick Serve Restaurant

2.1.4 Buffets

Buffets offer a selection of food at a fixed price Food is served on trays around bars, from which customers with plates serve themselves The selection can be modest or very extensive, with the more elaborate menus divided into categories such as salad, soup, appetizers, hot entrées, cold entrées, and dessert and fruit The role of the waiter or waitress in this case is relegated to removal of finished plates, and sometimes the ordering and refill of drinks

In Vietnam, a buffet is a system of serving meals in which food is placed in apublic area where the diners generally serve themselves Buffets are offered atvarious places including hotels and many social events One form of buffet is tohave a table filled with plates containing fixed portions of food; customersselect plates containing whichever food items they want as they walk along As

a compromise between self-service and full table service, a staffed buffet may

be offered: diners bring their own plate along the buffet line and are given aportion from a server at each station The buffet services in Ho Chi Minh are

Chapter 2: Literature Review and Conceptual Model

-mixed style, seafood specialty, pancakes specialty, etc The buffet pricingranges from economy, middle, luxury

2.1.5 The difference between table service and buffet service

The buffet service is different from the table service basically by the form ofservice and the nature of enjoyment purpose Customers choose to have buffetservice by considering the cost, the occasion and atmosphere they desire Theoccasion with formal settings is appropriate for meals in which customers aretrying to impress a guest with, this could be chosen a service at table For largegatherings such as family, friends, colleagues, a buffet service is a preferredchoice as it is offering a variety of choices and providing a social atmosphereand free style

2.2 SERVICE ATTRIBUTES

In the means-end chain approach, there are four levels to access services(Zeithaml, 1988) including service attributes, service quality, service values andservice personal values Customers perceive service quality by comparing theservice delivery they receive and their expectation The service attributes plays

a critical factor contributing to the success of service delivery Therefore,whether the service quality is good or not depending on how the serviceattributes constructed and delivered In service delivery, changes can be made tothe service delivery process, the environment in which service delivery takesplace and the interactions between the customer and the provider of the service.Theoretically, service quality is measured by Servqual scale which was mainlyestablished and well-known method of measurement model of quality of service

by Parasuraman et al (1985; 1988) Parasuraman, Zeithaml and Berry (1985)found consistent dimensions of perceived quality across four consumerindustries These abstract dimensions included Reliability, Empathy, Assurance,Responsiveness, and Tangibles The Reliability is defined as the "ability toperform the promised service dependably and accurately" The Assurancemeans the "knowledge and courtesy of employees and their ability to conveytrust and confidence" The Tangibles contains the "appearance of physical

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Chapter 2: Literature Review and Conceptual Model

-facilities, equipment, personnel and communication materials" The Empathy isthe "provision of caring, individualized attention to customers" And theResponsiveness expresses the "willingness to help customers and to provideprompt service" (Buttle, 1996, p.9) Parasuraman, Zeithaml and Berry (1985)illustrated 22 service quality attributes which Bonner and Nelson (1985) foundhigher level abstract dimensions of perceived quality including rich/full flavor,natural taste, fresh taste, good aroma, and appetizing looks Then Brucks andZeithaml (1987) raised exploratory work of six abstract dimensions includingease of use, functionality, performance, durability, serviceability and prestige.Service quality model by Sureshchander et al (2001) implied the items dealwith human interaction / intervention in the service delivery and tangible facets

of services namely the service conduct, systematization/standardization ofservice delivery and social responsibility of the service organization

Koo et al (1999) found nine attributes for conjoint analysis in restaurant werethe location, type of food, variety of food, uniqueness, car park, price, quality /taste of food, decoration and service Sweeney et al (1992) selected price ofmeal, past experience with similar types of restaurants, reputation of restaurant,advertisement, appearance of other customers, appearance of employees,manner of employees and premises as the cues Seo (2005) proposed the mostimportant attributes including attentiveness of server, clean appearance, taste /flavor of food, temperature of food and tenderness of meat

2.2.1 Price of service

One of service attributes is the price Price is the amount of money to besacrificed in exchange for a certain product or service The perceived price willinfluence perceived quality and customers recognized a service/product valueonly when they can earn more benefits than expected with a reasonable price(Chen, 2011)

Chapter 2: Literature Review and Conceptual Model

Besides ingredient quality, there are also sanitation requirements It is important

to ensure that the food processing environment is as clean as possible in order toproduce the safest possible food for the consumer Food taste is regarded as themost important element of food attributes in several restaurant studies (Josiam

& Monteiro, 2004)

2.2.3 Variety of food

In a buffet service, the variety of food choices offering is one of factor affectingcustomer perceived service quality when they compare what they expect whenpaying an amount of money for an exchange of what they receive Whenconsumers evaluate food quality, they judge a variety of menu as a separatefactor Restaurateurs frequently develop new menus and offer a selection ofdifferent menu items to attract customers (Namkung & Jang, 2007)

2.2.4 Servicescapes

There are many evidences showed that environmental variables cansubstantially influence consumer behavior and emotions in physicalenvironments (Donovan & Rossiter, 1982; Turley & Milliman, 2000) Kotler(1974) defined “atmospherics” as the term used for the intentional control andmanipulation of environmental cues in the service environment Bitner (1992)developed this point to the term “servicescapes” in reference to the physicalsurroundings constructed by retailers to facilitate their service The service isconstructed by the combination of tangibles and intangibles factors The

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Chapter 2: Literature Review and Conceptual Model

The ability of the physical environment to influence behaviours and to create an image is particularly apparent for service businesses such as hotels, restaurants, professional offices, banks, retail stores and hospitals (Baker, 1987; Bitner, 1986;Booms and Bitner, 1982; Kotler, 1973; Shostack, 1977; Upah and Fulton, 1985; Zeithaml, Parasuraman, and Berry, 1985) Because the service generally is produced and consumed simultaneously, the consumer is “in the factory”, often experiencing the total service within the firm’s physical industry

The perceived servicescape established by Bitner (1992) including threedimensions including ambient conditions such as temperature, air quality, noise,music, odor, etc.; space/function such as layout, equipment, furnishings, etc.;signs/symbols and artifacts such as signage, personal artifacts, style of décor,etc

Lin (2004) indicated the components of servicescape including visual cuesspecifically color, lighting, space and function and auditory cues includingmusic and non-musical sounds; olfactory cues

The physical environment is normally the very influential factor on thecustomer’s satisfaction (Butner, 1990; Harrel, Hutt and Anderson, 1980) Sincethen, many studies from various disciplines examined the topic of servicescapestheoretically and empirically (Fottler et al., 2000; Lin, Leu, Breen, & Lin, 2008;Newman, 2007) On the consumer side, variables such as pricing, advertising,added features and special promotions are given much more attention than thephysical setting as ways in which customers can be attracted to and / or satisfied

Chapter 2: Literature Review and Conceptual Model

-Wakefield and Blodgett (1996) proposed three different leisure service settings,conceptualized servicescape as multidimensional, comprised of facilityaesthetics, layout accessibility and cleanliness

2.3 SERVICE PERSONAL VALUES

“Service personal values can be defined as a custom er’s overall assessment ofthe use of a service based on the perception of what is achieved in terms of hisown personal values” (Lages & Fernandes, 2005) In the hospitality industry theconsumer generally regards the tangible products as being largelyundifferentiated This led to intangible elements of services quality is the onlyway to differentiate the products offering from that of other competitors in themarketplace (Douglas & Connor, 2003) The highest construct in the means-endchain approach is the “service personal values” mea ns the “beliefs orconceptions about end-goals or desirable end-states, classified by Rokeach(1973) as terminal values” (Lages & Fernandes, 2005 )

The impact of personal values on consumer behavior has been deeply explored(Beatty et.al., 1985) Personal values may offer a deeper understanding of howcustomers judge the quality and desirability of a service (Srinivas et al., 2011)and individuals show their values and lifestyles through the acquisition ofservices (Kahle, 1988)

According to Kahle (1983), the List of values (LOV) is composed of ninevalues which measure the values that are central to people in living their lives,particularly the values of life’s major roles The LOV is most closely tied tosocial adaptation theory (Kahle, Beatty, and Homer, 1985) In the Rokeachvalue survey (RVS) (Rokeach, 1968, 1973), the values are set into “terminalvalues” and “instrumental values”

The SERPVAL scale researched by Lages & Fernades (2005) had threeconstructs including Service Personal Value to Peaceful life (SVPL), ServicePersonal Value to Social Recognition (SVSR) and Service Personal Value toSocial Integration (SVSI) There were two outcomes of their model in themobile services: two of SERPVAL dimensions (SVPL and SVSI) were

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Chapter 2: Literature Review and Conceptual Model

-significantly correlated to loyalty to service provider and the factor SVSR wasnon-significant correlated to loyalty to service provider If a service promotesthe pleasurable life, improves tranquility and safety and/or harmony, it isperceived valued to peaceful life by customers If an individual perceivedgaining respect from others, social recognition and status by using a service, it

is valued to social recognition And if customer perceived a service bringingthem possibility of becoming more integrated in the group or promoting betterrelationships at the social, professional or family levels, it is valued to socialintegration (Lages & Fernandes, 2005) The conceptualization by Lages andFernandes (2005) identified personal values regarding services into three broadgroups of individual dimensions including the service value to peaceful life(SVPL) which operates at the self-oriented level; the service value related tosocial recognition (SVSR) and the service value related to social integration(SVSI) which operates at the social-oriented level

2.4 CUSTOMER SATISFACTION

Satisfaction is the customer’s value fulfillment response (Bloemer & Dekker,2005) The relationship between service satisfaction and loyalty is non-linear,meaning that in case satisfaction increases above a certain level, customer

loyalty will increase rapidly (Oliva et al., 1992 cited by Ruyter & Bloemer,

1999) Oliver (1997) assumed customer satisfaction is a judgment that a product

or service feature, or the product or service itself, provided (or is providing) apleasurable level of consumption-related fulfillment, including levels of under-

or over fulfillment (p.13) (cited by Giese & Cote, 2000) Tse and Wilton (1988)mentioned customer satisfaction is the customer’s response to the evaluation ofthe perceived discrepancy between prior expectations (or some norm ofperformance) and the actual performance of the product as perceived after itsconsumption (p.204) (cited by Giese & Cote, 2000) As concluded by Giese &

Chapter 2: Literature Review and Conceptual Model

term survival, let alone long term success (Zeithaml et al., 1990; Robledo, 2001

cited by Douglas & Connor, 2003)

Different authors emphasize the importance of clarifying the relationshipbetween values and satisfaction (Olivier, 1997; Bloemer & Dekker, 2007) Theimpact of service personal values on customer’s satisfaction and loyalty hasbeen conducted in many researches but in single industry and in certaincountries

Customer loyalty may act as a barrier to customer switching behaviour it has animpact on the development of s sustainable competitive edge (Keaveney, 1995;Gremler and Brown, 1996 cited by Ruyter & Bloemer, 1999)

Despite the fact that satisfaction and loyalty have been extensively researched inthe international services literature (Bennett and Rundle-Thiele, 2004;Szymanski and Henard, 2001), there are still unresolved issues concerning theconceptualization on customer satisfaction in a buffet services recognized beingsocialized and entertainment services rather than a simple food demandsatisfaction

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Chapter 2: Literature Review and Conceptual Model

Chapter 2: Literature Review and Conceptual Model

In this research, I propose the key attributes that customers usually focus on a

buffet service are the price of service, the quality/taste of food, the variety of food that restaurants offering.

Hypothesis H1: The price of service positively affects the customer satisfaction Hypothesis H2: The quality of food positively affects the customer satisfaction Hypothesis H3: The variety of food positively affects the customer satisfaction

On the other hand, the physical evidence (tangibles) is critical in services as it isused as a cue to provide the client with an indication of the service offered and

it is also impacting on the way in which the service is positioned and

differentiated (Holder & Berndt, 2011) The decisions about the physical

facility can have impact on marketing goals such as consumer attraction,

consumer satisfaction etc., (Bitner, 1992) The aspects of virtual servicescape influence customer reactions to service delivered through virtual means (Iris & Anat, 2005)

Hypothesis H4: The servicescape positively affects the customer satisfaction

2.6.2 The relationship between service personal values and customer

satisfaction

The smaller the disparity between the percept of service values and one’s ownvalues, the more favorable the evaluation becomes, i.e satisfaction increases

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Chapter 2: Literature Review and Conceptual Model

-(Bloemer & Dekker, 2003) Lages & Fernades (2005) proved the empiricalfindings demonstrate that the three SERPVAL dimensions are positively andsignificantly associated with satisfaction Additionally, while service value tosocial integration was related only with loyalty, service value to peaceful lifewas associated with both loyalty and repurchase intent

Hypothesis H5: The service value to peaceful life positively affects the customer satisfaction

Hypothesis H6: The service value to social recognition positively affects the customer satisfaction

Hypothesis H7: The service value to social integration positively affects the customer satisfaction

CHAPTER 3: RESEARCH METHODOLOGY

This Chapter outlined the research methodology used to test the hypothesesproposed in Chapter 2 The research methodology included the phase ofqualitative study and quantitative study The qualitative study was conducted byin-depth interview of focus group In the phase of quantitative study, theconstruction of measurement scales and the design of questionnaire based onselected and adjusted measurement scales were conducted This Chapter alsooutlined the sampling method and data analysis techniques

3.1 RESEARCH PROCESS

The research process of this study was conducted as figure 2

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Chapter 3: Research Methodology

-Figure 2: Research Process

Chapter 3: Research Methodology

-3.2 QUALITATIVE STUDY

The qualitative study was conducted by in-depth group interview in order to discover, adjust and supplement the variables to measure the researched items.The qualitative study was conducted by in-depth group interview with eight people who experienced the buffets in Ho Chi Minh City This focus group raised the service attributes of buffets that may affect their satisfaction

including:

1 the quality of food;

2 the quantity of food;

4 the price of a full package that restaurant offered including the food and the service of buffet;

5 the cleanliness of restaurant;

6 the servicescapes especially the facility of sitting place where thecustomers enjoyed the food; the entertainment the restaurant provided to customers whilethey were having food;

7 the facility of restaurant including the aroma of air-conditioned sittingspace, the comfortable place for customers to enjoy meal with their family, friends orcolleagues;

8 the discount program offered by restaurant;

The result of qualitative study had the same items of service attributes thatauthor figured out in the hypotheses including the price that customersperceived when the focus group raised the item 4, the quality of food, thevariety of food, the servicescapes of buffet restaurant, and finally the servicepersonal value that customers perceived when they had this service with theirfamily, friends and colleagues Only the discount program factor was not

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Chapter 3: Research Methodology

3.3.1 Construction of measurement scales

Based on the proposed hypotheses, the measurement scales adopted fromprevious studies and the result of qualitative study conducted, there are eightconstructs being examined in this study The seven-point Likert scale was used

to measure the constructs as follows:

3.3.1.1 Measurement scale of Perceived Price

The measurement scale of perceived price was adopted from Sweeney & Soutar(2001) which listed the items of “reasonable priced ”, the “value for money” and the “good service for the price” The price is usua lly a factor affecting the customer’s satisfaction when they perceived well or not the value that a service they receive by paying an amount of money

Chapter 3: Research Methodology

-Table 1: Measurement scale of Perceived Price Adopted

from Code Questionnaire constructs

PRI01 I think buffet at (X) restaurant is reasonably priced

Sweeney &

PRI02 I think buffet at (X) restaurant offers value for money

PRI03 I think buffet at (X) restaurant is good service for the priceSoutar (2001)

In my opinion, the price is an important factor to choose aPRI04 buffet

3.3.1.2 Measurement scale of Quality/ Taste of food

The measurement scale of quality / taste of food was adopted from Weiss et al

(2004), resourced from Kivela, Reece, and Inbakaran (1999a, 1999b, 2000)

which listed 7 items including the “authentic ingre dients and has unique taste

of the cuisine”, the “wide variety of food on the menu ”, the “several interesting

food choices”, “the food is nicely presented”, “the appearance of the food”, “the

food is healthy” and the “nutritious food choices o ffering” After the discussion,

the measurement scale of quality / taste of food were adjusted appropriately to

Vietnam market by selecting and revising 5 items and moving 2 items to the scale

of variety of food The selected 5 items were the “authentic ingredients”, “the food

is nicely presented”, “the appearance of foods is attractive”, “the food is healthy”

and the “nutritious food choices offeri ng” The 2 additional items were “the foods

are fresh” and “the foods are tasty ” which assumed to be one of those factors

affecting the customer’s satisfaction when having a buffet Customers usually

based on the quality of food of a restaurant and it they are acceptable to their

favorite taste, they would feel satisfaction by assessing the quality of food through

the freshness of ingredients, the attractiveness of food desired and how is the

nutritious and healthy the food brought to them

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Chapter 3: Research Methodology

QOF10 The foods in buffet at (X) restaurant are healthy

The foods in buffet at (X) restaurant offer nutritiousQOF11 food choices

In my opinion, the quality of food is an importantQOF12 factor to choose a buffet

3.3.1.3 Measurement scale of Variety of food

The items of measurement scale of variety of food adopted from Weiss et al

(2004) included two extracted items from the scales of quality / taste of food

above These two items measured the “wide variety o f food” and “several

interesting food choices”

Table 3: Measurement scale of Variety of Food Adopted from Code Questionnaire constructs

Buffet at (X) restaurant offers a wide variety ofVRF13 food on the menu

Buffet at (X) restaurant offers several interestingWeiss et al VRF14 food choices on the menu

(2004) Buffet at (X) restaurant offers many types of food

VRF15 selection

In my opinion, the variety of food is an importantVRF16 factor to choose a buffet

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Chapter 3: Research Methodology

-3.3.1.4 Measurement scale of Servicescapes

The measurement scale of servicescapes was adopted from Joanna et al (2011)resourced original from the previous research of Wakefield and Blodgett (1996)and Parasuraman and Zeitheml (1988) This measurement scale listed the threemain factors including the Venue Aesthetics, Accessibility and Cleanliness ofrestaurant In a crowded and fast developed city like Ho Chi Minh City, peoplealways liked to enjoy more not only the food quality but also the space andaroma where they enjoyed their meal even with their family, their friends,business partner or with colleagues, etc Hence, the servicescapes including thevenue aesthetics consisting of the physical facilities, decoration of restaurantand aroma of space would affecting their feeling of satisfaction; theaccessibility to the restaurant in a crowed city including location of restaurant,the parking, the user-friendly accessibility was also affecting the customersatisfaction In the restaurant industry, the cleanliness of eating space was also avery important factor that impact on the customer satisfaction

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Chapter 3: Research Methodology

SCA26 facilitiesSCA27 Layout at (X) restaurant makes it easy to find the food areas

Layout at (X) restaurant makes it easy to get where youSCA28 want to go

In my opinion, the easy access and convenient location areSCA29 important factors to choose a buffet

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