Researching about satisfactory level of customers about the water supplying service in district 1 ho chi minh city

What perceptions does customer have about the service quality of the water supplying quality in District 1, Ho Chi Minh city, Viet Nam2. Perceived service quality results from comparison

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Chapter 1 INTRODUCTION 1

1.1 The necessity of research topic 1

1.2 The Object of research 2

1.2.1 The general object 2

1.2.2 The detail object 2

1.3 Methods, subjects and scope of research 3

1.4 The significance of the research topic 4

1.5 Research questions and aim 4

Chapter 2 LITERATURE REVIEW 6

2.1 Theoretical basis 6

2.1.1 Service 6

2.1.2 The service quality 9

2.1.3 The relationship between customer expectations, perceptions and satisfaction 16

2.1.4 Overview of the state water supply services 17

2.2 The SERVQUAL model of Parasuraman (1988) 18

2.3 Construct hypotheses and the research models 21

2.4 The recommended research model 22

Chapter 3 METHOD 24

3.1 Research background 24

3.2 Formal research 24

3.2.1 Sample research 24

3.2.3 Process survey 27

3.3 Develop a scale and the main content to analyze 28

3.3.1 Scale of construction and data encryption 28

3.3.2 Scale of satisfaction 29

3.4 Design questionnaire 29

Chapter 4 RESULT 30

4.1 The general information about the sample 30

4.2 Rating scale 32

4.2.1 Measure the scale by Cronbach's alpha reliability 32

4.3 Testing scale and theoretical model 34

4.3.1 Checking with CFA (Confirmatory factor analysis), the composite reliability 34

4.3.2 Testing estimates with bootstrap 36

4.3.3 Testing the hypothesis and difference 36

Differentiation 38

Differentiation 39

Differentiation 40

4.4 Discussion 40

Chapter 5 CONCLUSION AND SOLUTION 41

5.1 Research conclusion 41

5.2 Suggesting solution 41

5.3 Limitations in research 42

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Public service delivery is an important function of the state to society Public service delivery is governed by several of factors, both subjective and objective in each country, and there is often a shortcoming between the provision of public services represented by the state and the other side is the demand for public services, which is represented by the demands of all people in society In the process of reforming the state closer to the people, better meeting the needs of today's citizens, an urgent need set in many countries around the world is to enhance the role of the government The article analyzes the factors that affect people's satisfaction with public services in District 1, Ho Chi Minh City

Supplying public services for society is an important function of the State Supplying public services is governed by several factors both objectively and subjectively in any country and there are often inadequacies in the supply of public services represented by the State and the demand of public services represented by the people In the process of State reform moving in the direction of getting closer

to the people and better meeting the demand of the citizens, an urgent requirement for many countries in the world is to increase the role of the State in the management and supply of public services This research analyzes the factors affecting the satisfaction of people who is customer of the public water supply service in District 1, Ho Chi Minh city, Viet Nam So that, Getting experience to serve the all customers in Viet Nam

The service industry plays an increasingly important role in the economy of many countries In today’s global competitive environment delivering quality service is considered as an essential strategy for success and survival (Parasuraman

et al., 1985; Reichheld and Sasser, 1990; Zeithaml et al., 1990) Even the public sector organizations have come under increasing pressure to deliver quality services (Randall and Senior, 1994) and improve efficiencies (Robinson, 2003) Customer

needs and expectations are changing when it comes to governmental services and their quality requirements However, service quality practices in public sector organizations is slow and is further exacerbated by difficulties in measuring outcomes, greater scrutiny from the public and press, a lack of freedom to act in an arbitrary fashion and a requirement for decisions to be based in law (Teicher et al., 2002)

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Develop a method of measuring the satisfaction of citizens and organizations with respect to the service of state administrative agencies to assess the quality of service delivery the work of public administrations So that, the state administrative bodies grasp the requirements and expectations of people and organizations to take measures to improve the quality of their service and service delivery in order to improve the satisfaction and interests of the people, organizations

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A Identifying the factors, criteria and criteria for measuring the satisfaction of citizens and organizations with respect to the service of state administrative agencies shall apply to all administrative services provided by the Official state administration provided

A Identifying the questionnaire of sociological investigation according to criteria, criteria of composition, suitable for each type of administrative service

A Determining the satisfaction of citizens and organizations for the service of state administrative agencies

A Publishing the service Satisfaction Index

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Methods of research:

13*.4.521+ 13/321:8 Before conducting formal study, the survey was

conducted with about 30 clients to spot the deficiencies and remain in the questionnaire design, the missing content must be supplemented, at the same time used Using group discussion techniques, experts to correct, add observation variables It aims to develop criteria for assessing, correcting, removing or supplementing questions The result of this step is to build one official questionnaire for the research

;;.:.2* 13/321:8 Using real questionnaire survey techniques is currently in

district 1 to collect data The sample is selected in the NonAprobability way, it is convenient with sample size n = 289 This research aims to examine the measurement scale and research model The scale is evaluated through two steps: Analyze the reliability of the scale using Cronbach's Alpha reliability coefficient and fractions of the CFA discovery factor is implemented through statistical data processing software

SPSS 20.0 After obtaining the factors, continuing proceeds with the CFA analysis and SEM to test model and research hypothesis using AMOS 20.0

)<=3:6/ 0; 13/321:8 The subjects of research are state administrative agency

and people who use the water supply service of administrative agencies in district 1,

Ho Chi Minh city, Viet Nam

Scope of research:

The scope of the project is to measure the satisfaction of people and organizations with regard to public water supply services of state administrative agency in District 1, Ho Chi Minh City, Viet Nam

Thereby, it is possible to identify factors that need to be improved to improve

Quality of service, from which the topic proposed some specific solutions to the leader of administrative agency to create the basis for improving the quality of service, improves the satisfaction of customers

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The main question of this research is what factors affect the customers’ satisfaction have on the water supplying service in District 1, Ho Chi Minh city, Viet Nam?

The specific questions that are researched in this thesis are:

1 What expectations does customer have on the water supplying service quality to become satisfied?

2 What perceptions does customer have about the service quality of the water supplying quality in District 1, Ho Chi Minh city, Viet Nam?

3 What are the differences between the expectations and the perceptions (5 gaps in the SERVQUALAmodel)?

Our aim is to research and analyze about the role of service quality for creating customer satisfaction on the water supplying service We want to find out the gap between expectations and perceptions through the customer point of view

Contribution: From the result of this caseAstudy the organization will be able

to identify their quality of service and they can also find out their week service points By using our result they can improve their further service delivery

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transferred from the seller to the buyer The benefits of such a service are held to be demonstrated by the buyer's willingness to make the exchange Public services are those that society (nation state, fiscal union, regions) as a whole pays for Using resources, skill, ingenuity, and experience, service providers benefit service consumers

According to Parasuraman et al (1988), service quality can be defined as an overall judgment similar to attitude towards the service and generally accepted as an antecedent of overall customer satisfaction (Zeithaml and Bitner, 1996) Parasuraman et al (1988) have defined service quality as the ability of the organization to meet or exceed customer expectations It is the difference between customer expectations of service and perceived service (Zeithaml et al., 1990) Perceived service quality results from comparisons by customers of expectations with their perceptions of service delivered by the suppliers (Zeithaml et al., 1990)

If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction occurs (Parasuraman et al., 1985; Lewis and Mitchell, 1990)

Second, services are heterogeneous: their performance often varies from producer to producer, from customer to customer, and from day to day Since service cannot be inventoried, performance depends to some extent on the level of demand What the firms intend to deliver may be entirely different from what the consumer receives Heterogeneity results in high experience qualities, for consumers cannot be certain about performance on any given day, even if they use the same service provider on a regular basis (Wu, L., International Marketing Review, 22 (3) (2005))

Third, production and consumption of many services are inseparable Tangible goods are produced, sold and then consumed separately But in services, the final elements of the service assembly process usually take place simultaneously with consumption, so that the customer is much more likely to meet the service production process in operation Due to this inseparability, the buyer usually participates in producing the service, thereby affecting the performance and quality

of the service The service firm may have less managerial control over quality in labor intensive services, and services where consumer participation is intense (Arun

Kumar G., Manjunath S J., Naveen Kumar H., International Journal of Engineering and Management Sciences, 3 (3) (2012),)

Beatson et al (2008) found that perceived employee satisfaction, perceived employee loyalty, and perceived employee commitment had a sizable impact on perceived product quality and on perceived service quality According to Kotler Philip, Wong Veronica, Saunders John, Armstrong Gary, Prentice Hall (2005), contact employees represent the organization and can directly influence customer's satisfaction; they perform the role of marketers Whether acknowledged or not, service employees perform marketing functions They can perform these functions well, to the organization’s advantage, or poorly, to the organization’s detriment According to Bettencourt and Gwinner FLE has the opportunity to tailor in realAtime not only the services the firm offers, but also the way in which those services are delivered Customer actions, reactions and other characteristics can have a profound influence on the actions and mannerisms of frontAline service personnel (Matzler et al., 2004) Customers largely establish their impressions of the organization’s level of service provision based on their encounters with FLE Therefore employees involved in the delivery of frontAline services can provide valuable information for improving service FLE are knowledgeable about the strengths and weaknesses of the service through their contact with customers and this is an important form of feedback that can be used by organizations in decisionAmaking to better serve customers Research has established a positive correlation between the attitudes of employees and those of customers, including employee and customer perceptions of service quality

In sum, the intangibility, heterogeneity, and inseparability of services lead them to possess few search qualities and many experience qualities Additionally, service marketers most often have limited influence over the delivery of the service and therefore have limited control over service quality The situation is similar to a good's marketer trying to promote, position, or define an always changing product that the customer has not yet seen

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According to Parasuraman et al (1991), companies can get their competitive advantage by using the technology for the purpose of enhancing service quality and gathering market demand

Service quality is an important driver of customer satisfaction and behavioral intention Numerous quantitative studies have shown that service quality is a predictor of customer satisfaction (Bitner et al., 1990; Cronin and Taylor,

providing goods and services that create specific levels of perceived value for the customer so that the customer remains engaged positively with the organization

For decades, many researchers have developed a service perspective (Zeithaml, 2009, Ramsaran and Fowdar, 2007) Chang (2008) describes that the concept of service quality should be generally approached from the customer’s point of view because they may have different values, different ground of assessment, and different circumstances Parasuraman, Zeithaml and Berry (1990) mention that service quality is an extrinsically perceived attribution based on the customer’s experience about the service that the customer perceived through the service encounter According to the work of Kumra (2008), service quality is not only involved in the final product and service, but also involved in the production and delivery process, thus employee involvement in process redesign and commitment is important to produce final tourism products or services

Another research study on service quality is presented by Grönroos (2007) who focuses on a model that is a comparison between customer expectations of the service and their experience of the service they have received before This model is named “total perceived service quality” As he emphasizes on what customer is really looking for and what they evaluate, the service quality is based on two

dimensions The first dimension is the technical quality and this dimension refers to the outcome, what is delivered or what the customer gets from the service The next dimension is the functional quality which refers to the manner in which the service

is delivered or how it is delivered Both dimensions affect the corporate image and the perception of quality in various ways According to total perceived service quality model, perceived quality of a service is not only affected by the experiences

of the quality dimensions that the consumer used for evaluating whether quality is perceived as good, neutral, or bad It is al also affected by the perceived quality of given service as well as the outcome of the evaluation process

Chang (2008) support the earlier line of thinking by Grönroos but Parasuraman, Zeithaml, and Berry developed “The Gap Analysis Model”, which is

a well known model of service quality This model shows an integrated view of the consumerAcompany relationship The main idea of the model is focused on the premise that service quality is dependent on the size and direction of the five gaps that can exist in the service delivery process

Gap 1: The gap between customer expectations and those perceived by management to be the customer's expectations

Gap 2: The gap between management's perception of consumer expectations and the firm’s service quality specifications

Gap 3: The gap between service quality specifications and service

Gap 4: The service delivery, external communication gap

Gap 5: The perceived service quality gap, the difference between expected and perceived service (Parasuraman et al, 1990)

The first four gaps are identified as functions of the way in which service is delivered from the service provider to the customer, while gap number five is connected to the customer and as such is considered to be the truth of service quality Gap five is also the gap that the SERVQUAL instrument influences

Edvardsson (1996) mentioned that it is important for a service organization to define the level of quality at which to operate; he argued that it is more relevant to speak of the “right quality” than of merely high quality

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Investigations have confirmed that reliability is the most important dimension, and tangibility is less relevant to the quality of service from the perception of the user In view of this, some dimensions may be more accentuated than others, depending on the type of service provided

The result of the analysis as a whole verified that there is a set of key discrepancies or gaps, consisting of the differences between users' expectations and what are actually offered These gaps can be the main obstacle for users to perceive the provision of such services as highAquality

When perceptions are higher than expectations, the gaps are narrow and there are high levels of satisfaction, considering the excellent service and quality Five corporate gaps are emphasized that are usually encountered between the expectations and perceptions of users These are:

• Gap 1: refers to consumer expectations and the perception of management towards them The service providers do not always understand what requirements connote excellence of quality for consumers

• Gap 2: is the specification of the quality of the services defined by the translation of perceptions that management has of the expectations of users This discrepancy is due to the lack of specification of the offer, adjusted to the wishes of the consumers

• Gap 3: relates to the actual performance of service in the face of previously established specifications

• Gap 4: relates to the service actually provided and external communications (service specifications announced in the media or other communication channels)

• Gap 5: This was established as a function of the four previous shortcomings, namely Gap 5 = f [gap 1, gap 2, gap 3, gap 4]

In summary, one can consider the following definitions for the gaps:

Gap 1A Not knowing what users want to receive

Gap 2A Not selecting the right design of the service and established standards

Gap 3A Not delivering the standard the service

Gap 4A Not marrying performance with promises

Gap 5A Established according to the four previous gaps;

Gap 5 = f [gap 1, gap 2, gap 3, gap 4]

Figure 1 illustrates the shortcomings or gaps in service quality

To perform the measurement of user satisfaction it is necessary to focus on the expectations and perceptions that the user has about the offered services The concept of perceived quality, used both for services as well as for products, has been understood as superiority or excellence, while the concept of service quality is more abstract and intangible In the absence of objective measures, it may be considered appropriate that the evaluation is performed by measuring the perception

of the service by the user

Figure 1: Service Quality GRAP Model

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The quality of service that is measured by multiple elements and accurate These elements depend on services and environment services Multiple authors found research that you are all popular and best types of the standards of the standards of the Parasuraman et al

Model of 5 grapes are a general theoretical model of substance amount of service In order to be able to practice Parasuraman (1985) and his colleagues tried

to build a scale in each service area, by which any service quality is also perceived

by customers based on 10 components, including: (1) Reliability, (2) Satisfy, (3) Serving capacity, (4) Accessibility, (5) Service style, (6) Information, (7) Trust, (8) Safety, (9) Customer, Understanding, (10) Figure (cf Bexley J.B, 2005)

This model has the advantage of covering every aspect of the service, however all 10 the composition of the SERVQUAL scale is too complex to be difficult to analyze Thus, Parasuraman et al (1988) revised and formulated a new model of five basic components

The relationship between the original Parasuraman model (1985) and the calibration model (1988) is presented as follows:

Table 1: Relationship between the Parasuraman model (1985) and (1988)

Source: Zeithaml, Parasuraman & Berry (1988) by Bexley J.B (2005)

Inheriting the doctrine of Parasuraman et al (1988), Johnson and Silvestro (1990)

Also summarizes 5 other factors of service quality:

(1) Professionalism and skills

(2) Attitudes and behavior

(3) Accessibility and flexibility

(4) Reliability and trustworthiness

(5) Reputation and credibility

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Kotler (2003) advances a discussion that explains Satisfaction as a person's feelings of happiness or displeasure as a result of comparing a product's outcome in relation to his or her expectations Stemming from this review, customer satisfaction

is described as the result of a cognitive and affective evaluation, where some comparison standard are determined and compared to the actually perceived performance If it happens that the expected performance exceeds perceived performance then, customers become dissatisfied On the other hand, if the expectation is more than perceived performance, customers turn to be happy and satisfied Otherwise, when the perceived performance equals to expectations, customers are neither satisfied nor dissatisfied creating what he termed as indifferent or neutral stage

Homburg et al (2005) found significant quality differences in the impact of the factors on customer beliefs about service quality and therefore satisfaction In addition, Walls et al (2011) performed a metaAanalysis of quality management studies and concluded that customer experiences are multidimensional and unique

to each situation and consumer, suggesting that in this domain, quantitative methodology may not be universally generalizable

A number of studies report that customer’s satisfaction is influenced by a number of factors and according to Peprah (2014), the following factors play a critical role in the satisfaction of customers; the attitudes of staff toward customers, the capacity to deliver prompt service without wasting time, ability to disseminate information to customers and the availability of upAtoAdate equipment

Gibson (2005) found in his studies that satisfied customers become repeat purchasers of a product or service and provide positive word of mouth That means that it is important to understand what factors that influences customer satisfaction

in order to create good products or services Zeithmal and Bitner (2003) expands

this discussion and describes that there is an overwhelming interest in service quality and the reason for that is that both practitioners and researchers believe that quality is crucial for the success of any business organization The construct has great impact on customer satisfaction, repeat purchase behavior and in the long run also the profitability of the organization Bitner (1990) also mentions that if the service is affective it has a direct and immediate affect on the customer satisfaction

Zeithaml and Bitner (2003) argue that customer satisfaction has become a major contributor for enhancing a service company such as long term profitability, customer loyalty, and customer retention That means for example that it is important to encourage the staff to deliver the right service to the right people in reasonable time and showing good manner Satisfied customers may also give positive word of mouth and for that reason attract new customers and create long term business profit

Oliver (1980) suggest that in order to create customer satisfaction it is important for the company managers to identify which product or service attributes that can enhance customer satisfaction or delightfulness, than the performance can

be improved and it will also be possible to find out which attributes that are expected by the customers (expected attributes can create dissatisfaction by their absence) Many researchers argue that customer satisfaction has big impact on customer intentions to repurchase (Cronin, Brady, and Hult, 2000) Andersson and Furnell (1995) also argue that satisfaction is an indicator of intentions to return to the supplier

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Water supply is the provision of water by public utilities commercial organizations, community endeavors or by individuals, usually via a system of pumps and pipesIrrigation is covered separately

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The SERVQUAL model proposes that customers evaluate the quality of a service on five distinct dimensions: reliability, responsiveness, assurance, empathy, and tangibles The SERVQUAL instrument consists of 22 statements for assessing consumer perceptions and expectations regarding the quality of a service Perceived service quality results from comparisons by consumers of expectations with their perceptions of service delivered by the service providers (Zeithaml et al., 1990) It can be argued that the factor underpinning the delivering of good perceived service quality is actually meeting the expectations of the customers Thus, excellent service quality is exceeding the customers’ expectations Zeithaml and Bitner (2000) suggested that customer expectations are beliefs about a service that serve as standards against which service performance is judged

Parasuraman et al (1988) suggested that customer expectations are what the customers think a service should offer rather than what might be on offer Zeithaml

et al (1990) identified four factors that influence customers’ expectations: wordAofAmouth communications; personal needs; past experience; and external communications A gap is created when the perceptions of the delivered service is not as per the expectations of the customer This gap is addressed by identifying and implementing strategies that affect perceptions, or expectations, or both (Parasuraman et al., 1985; Zeithaml et al., 1990) Parasuraman et al (1988) stated that SERVQUAL had been designed to be “applicable across a broad spectrum of services” and the format could be adapted to fit specific needs, and that it would be most valuable when used to track service quality trends periodically They proposed that the SERVQUAL model could be extended to measure gaps in quality and could therefore be used as a diagnostic tool to enable management to identify service quality shortfalls The gap score is calculated by the perception statements being deducted from the expectation statements If any gap scores turn out to be positive then this implies that expectations are actually being exceeded This allows service

managers to review whether they need to reAdeploy resources to areas of under performance (Wisniewski, 2001) The SERVQUAL instrument ascertains the level

of service quality based on the five key dimensions and also identifies where gaps

in service exist and to what extent (Picture 1):

Picture 1: Servqual model of Parasuraman

The lower the mean score, the larger is the gap in service quality and conversely the higher the mean score, the smaller the gap in service quality Gaps 1

to 4 are within the control of an organization and need to be analyzed to determine the causes and changes to be implemented which can reduce or even eliminate Gap

5, which is the gap reflecting the difference between customers perceptions and expectations of the firm’s level of service Surveying of employees can help to measure the extent of Gaps 2 to 4 (Zeithmal et al., 1990) This may reveal a difference in perception as to what creates possible gaps

Service Quality in the Public Service

Public sector services are responsible and accountable to citizens and communities as well as to its customers Several researchers have dealt with service quality in public services (Wisniewski and Donnelly, 1996; Rowley, 1998; Wisniewski, 2001; Brysland and Curry, 2001) Brysland and Curry (2001) stated that the literature clearly supported the use of SERVQUAL in the public sector According to Gowan et al (2001), service provision is more complex in the public sector because it is not simply a matter of meeting expressed needs, but of finding out unexpressed needs, setting priorities, allocating resources and publicly justifying and accounting for what has been done In addition, Caron and Giauque (2006) pointed out that public sector employees are currently confronted with new professional challenges arising from the introduction of new principles and tools inspired by the shift to new public management Anderson (1995) also measured the quality of service provided by a public university health clinic Using 15 statements representing the fiveAdimensions of SERVQUAL (Parasuraman et al., 1988), she assessed the quality of service provided by the clinic at the University of Houston Health Center Patients were found to be generally dissatisfied with the five dimensions of SERVQUAL The highest dissatisfaction was felt with assurance On the other hand, tangibles and empathy exhibited the lowest level of dissatisfaction Using the SERVQUAL approach, Wisniewski (2001) carried out a study to assess customer satisfaction within the public sector across a range of Scottish Councils services In the library service, the analysis of gap scores revealed that tangibles and reliability had negative gaps which indicate that customer expectations were not met

On the other hand, responsiveness and assurance were positive implying that customer expectations were actually exceeded by the service provided Furthermore, Donnelly et al (2006) carried out a study to explore the application of SERVQUAL approach to access the quality of service of Strathclyde Police in Scotland The survey captures customers’ expectations of an excellent police

service and compares these with their perceptions of the service delivered by Strathclyde Police The paper also reports on a parallel SERVQUAL survey of police officers in Strathclyde to examine how well the force understands its customers’ expectations and how well its internal processes support the delivery of quality services in the police department It was found that Strathclyde Police appears to have a good understanding of the service quality expectations of their customers as represented by the responses of elected councilors in the area covered

by the force There is room for improvement in service quality performance both from the viewpoint of the customer and through police force attention to the definition of, and compliance with, service quality standards Agus et al (2007) carried out a research to identify management and customer perceptions of service quality practices in the Malaysian Public sector It is important to note that whereas the SERVQUAL model focused on identifying “gaps” between expectations and actual delivery, their model focused only on perceptions of actual service delivery They used nine of the ten service dimensions identified by Parasuraman et al (1985) Their study looked at the perceptions of management and customers, thereby excluding the views of FLE It is thus observed that most of the studies to date, have concentrated on service quality in US and European public service sector, while some more recent studies have looked at service quality in developing countries (Agus et al., 2007)

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According to Parasuraman (1994), the controversy that arises from quality evaluation and satisfaction is the assessment between a particular transaction and a general assessment While service quality researchers start from the assumption that satisfaction is an evaluation based on a particular transaction and quality is a general assessment made after a cumulative assessment process Satisfaction researchers have opposing views

In this study, the author agrees with the view that it is not possible to assess the quality of services in general as the quality of service is high or low but the quality of service must be measured by a set of multiple scales To measure component concepts are interrelated and it creates quality of service Thus, after qualitative research on the SERVQUAL model of components in service quality modeling and customer satisfaction of water use, hypotheses on the effect of quality

of service quality factors is based on the research model of Parasuraman consists of

H3: The guarantee has a significant direct impact on customer satisfaction, as the water security of the customer is appreciated by customers, the level of customer satisfaction will increase and vice versa