FOREIGN TRADE UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
---------***---------
GRADUATION THESIS
Major: International Business Administration
A STUDY ON CUSTOMER SATISFACTION OF MYTV
SERVICE OF VNPT
Student full name: Tran Thi Thanh Tu
Student ID: 1113250034
Class: English14 - High quality FBA
Intake: 50
Supervisor: MBA. Nguyen Thi Thu Trang
Hanoi, May 2015
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TABLE OF CONTENT
ACKNOWLEDGEMENT..........................................................................................iv
ABSTRACT.................................................................................................................. v
LIST OF FIGURES.....................................................................................................vi
LIST OF TABLES......................................................................................................vii
LIST OF ABBREVIATION........................................................................................ix
CHAPTER 1: INTRODUCTION................................................................................1
1.1. Background........................................................................................................2
1.2. Objectives...........................................................................................................3
1.3. Research questions.............................................................................................3
1.4. Research scope...................................................................................................4
1.5. Structure of the thesis........................................................................................5
CHAPTER 2: LITERATURE REVIEW ON CUSTOMER SATISFACTION.......7
Chapter overview.......................................................................................................7
2.1. Definition...........................................................................................................8
2.2. Customer satisfaction theories...........................................................................9
2.2.1. Assimilation theory.......................................................................................10
2.2.2. Contrast theory..............................................................................................11
2.2.3. General negativity theory..............................................................................11
2.2.4. Assimilation - Contrast theory......................................................................12
2.3. Customer satisfaction measurement models....................................................13
2.3.1. Kano model...................................................................................................13
2.3.2. Parasuraman et al.’s models..........................................................................15
2.3.3. Customer satisfaction index (CSI) model....................................................20
Chapter summary....................................................................................................22
CHAPTER 3: DATA AND METHODOLOGY........................................................23
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Chapter overview.....................................................................................................23
3.1. Methodology.....................................................................................................24
3.2. Sampling method..............................................................................................24
3.3. Instrumentation................................................................................................24
3.3.1. Choice of survey method and type of instrument........................................24
3.3.2. Instrument design..........................................................................................25
3.4. Data collection..................................................................................................26
3.5. Data analysis....................................................................................................27
Chapter summary....................................................................................................29
CHAPTER 4: FINDINGS AND DISCUSSIONS.....................................................30
Chapter overview.....................................................................................................30
4.1. An overview of VNPT and MyTV service........................................................31
4.1.1. Introduction to Vietnam Posts and Telecommunications Group (VNPT)...31
4.1.2. Overview of VNPT, Nghe An Branch..........................................................35
4.1.3. Overview of MyTV service..........................................................................36
4.2. Factors testing using Cronbach’s alpha..........................................................37
4.2.1. Reliability......................................................................................................38
4.2.2. Assurance......................................................................................................39
4.2.3. Tangibles.......................................................................................................40
4.2.4. Empathy........................................................................................................40
4.2.5. Responsiveness.............................................................................................42
4.2.6. Price...............................................................................................................43
4.2.7. Television Quality.........................................................................................45
4.3. Research model testing....................................................................................46
4.3.1. Correlation analysis: Spearman’s rank correlation coefficient....................46
4.3.2. Regression analysis.......................................................................................56
4.3.3. Regression model interpretation...................................................................59
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Chapter summary....................................................................................................61
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS............................62
5.1. Conclusions of the study..................................................................................63
5.2. Recommendations............................................................................................64
5.2.1. Improving television quality of MyTV........................................................64
5.2.2. Enhancing employees’ professional capability............................................66
5.2.3. Building professional working environment................................................66
5.2.4. Implementing sound policies on price and promotion.................................67
5.2.5. Consolidating a good image of VNPT.........................................................67
5.2.6. Making regular survey on customer satisfaction.........................................68
5.3. Limitations of the study and suggestions for future work...............................68
5.4. Contributions of the study................................................................................69
REFERENCE.............................................................................................................70
APPENDIX.................................................................................................................... i
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ACKNOWLEDGEMENT
This graduation thesis was resulted from my thirteen-week researching and writing
during my last semester at Hanoi Foreign Trade University. It was an interesting and
learning experience. By finishing this thesis, I would like to express my special thanks
to many people for their great helps, contributions and recommendations.
Firstly, I do truly thank my supervisor, MBA. Nguyen Thi Thu Trang, for her
encouragement, guidance and supports from the very beginning those enabled me to
complete the subject.
Secondly, special thanks must go to all the managers, staffs and customers of VNPT
Nghe An for their cooperation those helped me in completion my thesis.
I do offer my regards and blessing to my family and friends who did support me a lot
during this time.
Last but not least, gratefulness is to the readers whose feedbacks will help much in
improving the thesis.
Hanoi, May 2015
Tran Thi Thanh Tu
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ABSTRACT
The graduation thesis represents the results of research on customer satisfaction of
MyTV service of VNPT. The purposes of this study are to identify the level of
customer satisfaction of MyTV service of VNPT and measure factors affecting the
customer satisfaction. Then, base on that, some recommendations are put forward to
help VNPT improve the quality of MyTV service in order to enhance the satisfaction
level of current customers and attract new users.
The study is conducted in Nghe An Province with 150 survey questionnaires
spreading out to 150 MyTV’s subscribes of VNPT Nghe An. The questionnaires are
collected, analyzed using statistical and economical techniques in order to find the
most accurate results and suggest VNPT to do the right actions.
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LIST OF FIGURES
Figures
Title
Page
Figure 2.1
Attributes in Kano model
15
Figure 2.2
Five Gaps in SERVQUAL model
16
Figure 2.3
Components of transaction-specific evaluations
18
Figure 2.4
Components of global evaluations
19
Figure 2.5
Vietnam customer satisfaction index model
21
Figure 4.1
VNPT Nghe An’s organizational structure
36
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LIST OF TABLES
Tables
Title
Pag
e
Table 4.1
Rule for describing internal consistency using Cronbach's alpha
38
Table 4.2
Cronbach’s alpha of “Reliability”
38
Table 4.3
Cronbach’s alpha of “Assurance”
39
Table 4.4
Means of aspects in factor “Assurance”
39
Table 4.5
Aspects summary in factor “Assurance”
40
Table 4.6
Cronbach’s alpha of “Tangibles”
40
Table 4.7
Cronbach’s alpha of “Empathy”
40
Table 4.8
Means of aspects in factor “Empathy”
41
Table 4.9
Aspects summary in factor “Empathy”
41
Table 4.10
Cronbach’s alpha of “Responsiveness”
42
Table 4.11
Means of aspects in factor “Responsiveness”
43
Table 4.12
Aspects summary in factor “Responsiveness”
43
Table 4.13
Cronbach’s alpha of “Price”
43
Table 4.14
Means of aspects in factor “Price”
44
Table 4.15
Aspects summary in factor “Price”
45
Table 4.16
Cronbach’s alpha of “Television Quality”
45
Table 4.17
Means of aspects in factor “Television Quality”
45
Table 4.18
Aspects summary in factor “Television Quality”
46
Table 4.19
Correlations in “Customer Satisfaction”
48
Table 4.20
Correlations in “Assurance”
49
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Table 4.21
Correlations in “Empathy”
51
Table 4.22
Correlations in “Responsiveness”
52
Table 4.23
Correlations in “Price”
54
Table 4.24
Correlations in “Television Quality”
55
Table 4.25
Coefficient of determination R2
57
Table 4.26
F-test
57
Table 4.27
Regression coefficients and t-test
58
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LIST OF ABBREVIATION
Abbreviation
ACSI
ADSL
CSI
EMS
Full name
American Customer Satisfaction Index
Asymmetric Digital Subscriber Line
Customer Satisfaction Index
Express Mail Service
IAP
Internet Access Provider
IDD
International Direct Dial
IPPV
ISP
IT
NPVR
PTIT
SCSB
Instant Pay Per View
Internet Service Providers
Information Technology
Network Personal Video Recorder
Posts and Telecommunications Institute of Technology
Swedish Customer Satisfaction Barometer
SPSS
Statistical Package for Social Sciences
TSTV
TSTV
TV
Television
VCSI
Vietnamese Customer Satisfaction Index
VDC
Vietnam Data-Communications Company
VNPT
VNPT Nghe An
VoIP
Vietnam Posts and Telecommunications Group
Nghe An Telecommunications
Voice over Internet Protocol
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1
CHAPTER 1: INTRODUCTION
1.1. Background
1.2. Objectives
1.3. Research questions
1.4. Research scope
1.5. Structure of the thesis
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1.1. Background
Recently, “customer satisfaction” has been more familiar with the service suppliers,
organizations and public. It has become a central concept in modern marketing thought
and practice over the years. The marketing concept has emphasized delivering
satisfaction to customers and obtaining profits in return. The statement “The customers
are always right” has become popular all over the word and been the lodestar for many
companies in all industries including service sector. Most of service firms have made a
big effort in implementing sound policies in order to serve their customers by the best
way. However, not all organizations carry out particular researches on their customers
to understand deeply the level of satisfaction or the degree of influence of individual
factors to the overall customer satisfaction. They have just tried to enhance the product
quality and employees’ attitude that has been usually seen as the main elements
contributing to the customer satisfaction. Consequently, other valued factors may be
considered as unimportant ones or even ignored, which can lead to the inappropriate
methods in improving the customer satisfaction.
The realization of the importance of customer satisfaction measurement has led to a
proliferation of scientific researches and annual conferences on customer satisfaction
over the past few decades in order to build up a strong foundation for service
companies in measuring the level of customer satisfaction. Those researchers have
created a variety of measurement models including both quantitative and qualitative
methods. The requirement is that each firm has to find out its own method in the
customer satisfaction measurement to create attractive offers and capture its customer
satisfaction.
Because of realizing the fact that customers play an important role in the business
results, today firms, especially service firms are building deeper, more direct and more
lasting relationships with them. Vietnamese companies including Vietnam Posts and
Telecommunications Group are not the exception. Vietnam Posts and
Telecommunications Group (commonly abbreviated as VNPT) is the service provider
that laid the first stone for the development of the Posts - Telecommunications sector in
Vietnam. In the areas of Telecommunications and Information Technology, VNPT
provides a wide and comprehensive range of products and services, including voice,
data, internet, television (TV) and other value-added services deploying on an
advanced network infrastructure. MyTV is one of many services provided by VNPT. It
is one kind of multimedia television service, which can bring a unique form of
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entertainment called “TV on Demand” to customers. Hence, VNPT has to look upon
the customers’ responses and their evaluation of MyTV service to have the right
orientation. In other words, customer satisfaction of service quality is an important
element in maintaining and developing MyTV in the future.
Therefore, I suggest that implementing a project to measure the customer satisfaction
is a necessary step to meet the customer demand. In my opinion, a quantitative research
should be a good choice to understand clearly about the degree of satisfaction and
calculate the level of correlation between each valued factor and the whole satisfaction
or among those factors.
Consequently, I chose the topic “A study on customer satisfaction of MyTV service
of VNPT” as graduation thesis topic in the hope that some findings, conclusions and
recommendations from the study could be a reference to help VNPT to further improve
and develop a successful MyTV service which can satisfies the customers.
1.2. Objectives
The thesis focuses on the quantitative research about customer satisfaction of MyTV
service of VNPT and valued factors that strongly influence the overall customer
satisfaction in Nghe An Province. Based on those results, the thesis aims to generalize
to the customer satisfaction of MyTV service of VNPT in all areas in Vietnam.
Moreover, from finding withdrawn of those important factors, it is expected good
recommendations will be made for improving and developing a better MyTV to satisfy
customers.
Thus, the study aims to:
Get deeper understanding of the customer satisfaction
Measure the level of customer satisfaction of MyTV service of VNPT, Nghe An
Branch
Identify which factors affect to the customer satisfaction and their degree of
influence on the overall satisfaction
Find out some solutions and recommendations to develop MyTV service in this
area to catch up with the customers’ requirement and expectation
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1.3. Research questions
The key question of this study is: “How do valued factors influencing the customer
satisfaction of MyTV service of VNPT?” To answer this question, it is necessary to
answer the following sub-questions:
Which factors are valued as important to the customer satisfaction?
In reality, there is variety of determinants of customer satisfaction on which many
authors has already done researches. Their different points of view would value
different factors as important and suitable for their study. Based on their research
results, the basic factors suggested to measure the customer satisfaction of a service
would be examined in order to find the most valued factors. The answer to this
question would help to focus on the most important determinants affecting customer
satisfaction level. Cronbach’s alpha coefficient analysis would be applied to answer
this question.
How does each factor correlate with the customer satisfaction?
Knowing the customer satisfaction level is a real discovery. Coupling this finding
and the answer to this question, VNPT could be aware of what correlate closely most to
the customer satisfaction in order to concentrate on them. Correlation analysis would
be conducted to answer this question by using Spearman’s rank correlation coefficient.
Does the research model fit the population?
After researching about factors influencing the customer satisfaction of MyTV
service of VNPT, it is necessary to identify the reliability level of the research results.
Answering this question means calculating the percentage of fitness between the
research model and the population and finding whether the results from the model
would be the representative of the whole population. R-squared and F-test would be
calculated to answer this question. Besides that, the regression model resulted from ttest analysis would express the equation for the customer satisfaction measurement of
the population.
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1.4. Research scope
Currently, VNPT has launched MyTV service in all 63 provinces and cities in
Vietnam. However, due to some reasons both objectively and subjectively, it is
impossible to do the research on customer satisfaction in all provinces and cities in
Vietnam. Therefore, an area should be selected to be the representative for the whole
country.
In this thesis, VNPT Nghe An is chosen to conduct the study because it is the most
convenient area for the researcher. This study focuses on measuring the level of
satisfaction about VNPT’s MyTV service of customers in Nghe An Province where
there have been 20,000 MyTV subscribers since the beginning of March 2015.
150 customers of MyTV service, Nghe An Branch have been invited to do the survey
questionnaire with the hypothesis that they will fit with the whole population of
MyTV’s customers in Vietnam. This hypothesis would be checked again in the process
of regression analysis
1.5. Structure of the thesis
The thesis includes five chapters:
Chapter 1: Introduction
It identifies the statement of aims and objectives with clear indication of the
background, problems and scope being considered.
Research questions represented in this first chapter would be answered in findings
and discussions part.
This chapter also gives the brief overview of each chapter to shape the structure of
the thesis.
Chapter 2: Literature review of customer satisfaction
This chapter presents the definitions and theories about customer satisfaction.
Moreover, the customer satisfaction measurement models of different researchers in the
past can also be found in this chapter.
Chapter 3: Data and methodology
This chapter states the research methods as well as data collection. It is also analyzed
to make the decision about which instrument can be used and how to apply it in the
study.
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Chapter 4: Findings and discussions
The first subpart in this chapter presents an overview of VNPT in general and Nghe
An Branch in particular. The basic information about VNPT’s MyTV service is also
introduced in this part.
Next, some econometrical techniques are used in the study to test the research model
and analyze all factors influencing the customer satisfaction. The result and analysis is
illustrated in this chapter.
Chapter 5: Conclusions and recommendations
This chapter should be the most general summary for the whole research process.
The conclusion would be a brief resume of the investigation result. Then, base on that,
the personal recommendations to further develop customer satisfaction of MyTV
service of VNPT is given.
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CHAPTER 2: LITERATURE REVIEW
ON CUSTOMER SATISFACTION
Chapter overview
2.1. Definition
2.2. Customer satisfaction theories
2.3. Customer satisfaction measurement models
Chapter summary
Chapter overview
This chapter provides background knowledge about the study. The chapter will be
divided into three main parts: the common concepts of the study including the
definitions of customer satisfaction and concept of customer satisfaction measurement,
some theories on customer satisfaction based on the comparison between expectation
and perceived performance, and four customer satisfaction measurement models which
are applied popularly in reality.
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2.1. Definition
An analysis of the literature concerned with customer satisfaction in 1992 revealed a
large and ever growing body of research with some 15,000 trade and academic articles,
which had been written on the topic over the previous two decades (Peterson and
Wilson, 1992). Despite the many studies on customer satisfaction, there appeared to be
no overall agreement over important issues such as concepts, constructs, definitions,
measurements, methodologies and various interrelationships (Yi, 1990; Brooks, 1995).
The concept of satisfaction itself needs to be defined. The Oxford Advanced
Learner’s Dictionary 8th edition (2010) defined satisfaction as “[1] the good feeling that
you have when you have achieved something or when something that you wanted to
happen does happen; something that gives you this feeling, [2] the act of fulfilling a
need or desire, [3] an acceptable way of dealing with a compliant, a debt, an injury,
etc”. It describes satisfy as “ [1] to make somebody pleased by doing or giving them
what they want, [2] to provide what is , wanted, needed or asked for [3] to make
somebody certain something is true or has been done.” Customer is defined as “a
person or an organization that buys something from a shop/ store or business”. Hence
using these definitions, customer satisfaction can be thought of as a user or purchaser
having their needs and expectations fulfilled.
The concept of customer satisfaction has been defined in various ways. Zeithaml,
Berry and Parasuraman (1993) suggested that customer satisfaction is a function of the
customer’s assessment of service quality, product quality and price. Oliva, Oliver and
Bearden (1995) suggested that satisfaction is a function of product performance
relative to consumer expectations. Bachelet (1995) considered satisfaction to be an
emotional reaction by the consumer in response to an experience with a product or
service. He believed that this definition included the last contact with a product or
service, the satisfaction experience since the time of purchase as well as the general
satisfaction experienced by regular users. Hill (1996) defined customer satisfaction as
the customers’ perceptions that a supplier has met or exceeded their expectations. Jones
and Sasser (1995) defined customer satisfaction by identifying four factors they
postulated affected it. The factors were: [1] essential elements of the product or service
that customers expected all rivals to deliver, [2] basic support services such as
customer assistance, [3] a recovery process to make up for bad experiences and [4]
“customization” which were factors that met customers’ personal preferences, values,
or needs. Ostrom and Iacobucci (1995) examined a number of definitions from other
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