The study of customer service of Milano coffee

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BOLTON UNIVERSITY

DESSERTATION

The study of customer service of MILANO COFFEE

<b>Lecture: David Ratcliffe </b>

<b>Student: Vu Thanh Thy Tran Student No: 2124784 </b>

<b>Cohort: 16 </b>

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BOLTON UNIVERSITY

The study of customer service of MILANO COFFEE

<b>Lecture: David Ratcliffe </b>

<b>Student: Vu Thanh Thy Tran Student No: 2124784 </b>

<b>Cohort: 16 </b>

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Acknowledgement

It is a well-established truth that achieving success necessitates receiving support and assistance from others, regardless of the extent or nature of such aid. Throughout my academic journey, I have been fortunate to receive ample support and guidance from my supervisors, tutors, staff, and peers. I express my profound appreciation to all the educators who have imparted invaluable knowledge, business acumen, and constructive guidance to us throughout our academic tenure at the University. The author expresses gratitude towards Dr. David Ratcliffe and Mr. Thanh Huynh for their diligent mentorship and valuable insights that facilitated the successful completion of this thesis.

Expressing gratitude towards the respondents who have dedicated their valuable time to assist in completing the research questionnaires is a commendable act.

I would like to express my gratitude to my family and friends for their unwavering motivation, support, and provision of favourable conditions, which have greatly contributed to my academic success. Their assistance has been instrumental in bolstering my motivation to complete my studies.

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Abstract

Purpose – The objective of this research is to evaluate the service quality provided by MILANO COFFEE. The service quality at MILANO COFFEE has elicited varying opinions, with some customers expressing satisfaction while others have expressed dissatisfaction. Notably, service quality plays a crucial role in enhancing consumer satisfaction and customer acquisition. The objective of this study is to examine the services offered by MILANO COFFEE and the impact of service quality on customer satisfaction.

Methodology – The methodology employed in this study involved the development of a tool designed to collect and analyse customer data across various sectors. The study employed a quantitative research methodology, wherein a sample size of 305 was obtained from a population of customers who had utilised the customer service of MILANO COFFEE. A structured questionnaire is utilised to gather data on guests' satisfaction and their perceptions regarding the quality of service provided by the coffee shop.

Contribution – The research findings indicate a correlation between customer satisfaction with MILANO COFFEE and the significance of both attitude-based brand loyalty and behavior-based brand loyalty among customers. This study makes a valuable contribution to enhancing customer satisfaction and fostering customer loyalty through an investigation of service quality and its effects. Additionally, the text outlines a methodology for enhancing customer service within businesses and coffee shops, while also offering insights into the critical factors that are essential for sustaining and cultivating elevated levels of customer satisfaction and service quality, as perceived by customers. Keywords: customer service quality, customer satisfactions, attitude brand loyalty, behavior brand loyalty, MILANO COFFEE

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List of Table

Table 1: Research Structure of the Study ... 5 Table 2: Descriptive statistic of demographic variables ... 27 Table 3: Factor Analysis and Cronbach’s Alpha of the sub-scale of the organic product and customer quality ... 31 Table 4: Factor Analysis and Cronbach’s Alpha of the sub-scale of the customer satisfaction ... 31 Table 5: Correlation analysis among the variables ... 33 Table 6: Result of Regression analysis of dependent variables customer satisfaction with control variables and independent variables (Three service quality traits) ... 35 Table 7: Result of Regression analysis of dependent variables attitude brand loyalty with control variables and independent variables (Three service quality traits) ... 36 Table 8: Result of Regression analysis of dependent variables behavior brand loyalty with control variables and independent variables (Three service quality traits) ... 37 Table 9: Summary of objectives and results ... 38 Table 10: Summary of Research Findings ... 42

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List of Figure

Figure 1: The key features of excellent customer service ... 7

Figure 2: Five service dimensions customers care about ... 9

Figure 3: Service quality paradigm of DINESERV ... 9

Figure 4: Customer perceptions of quality and customer satisfaction... 13

Figure 5: Hypothesis model of this Research ... 15

Figure 6: The Research Onion ... 16

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Table of Contents

Acknowledgement Abstract

List of Table List of Figure

Chapter One: Introduction... 1

1.1 Introduction ... 1

1.2 Rationale of the Research ... 1

1.3 Problem Statement ... 2

1.4 The idea of research implementation ... 2

1.4.1 Overview of MILANO COFFFEE ... 2

1.5 Research Question and Research Objectives ... 3

Chapter Two: Literature Review ... 6

2.1 Coffee shop in Vietnam ... 6

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2.2.5 Brand loyalty ... 10

2.3 Social exchange theory... 12

2.4 Theoretical model development ... 12

2.4.1 The relationship between organic product quality and customer satisfaction ... 12

2.4.2. The relationship between organic product quality and brand loyalty ... 13

2.4.3. The relationship between customer service quality and customer satisfaction ... 13

2.4.4. The relationship between customer service quality and brand loyalty ... 14

2.4.5. The relationship between customer satisfaction and brand loyalty ... 15

3.3 Research Philosophy Approach ... 20

3.3.1 Research approach: quantitative or qualitative ... 20

3.6.2 Data Collection and Analysis ... 24

3.7 Validity And Reliability ... 25

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4.9.1 Model 1 and Model 2 ... 37

4.9.2 Model 3 and Model 4 ... 38

4.9.3 Model 5 and Model 6 ... 39

4.10 Summary of the Findings ... 40

4.11 Meaning of Findings and Discussions ... 40

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5.2.3 Behavior Brand Loyalty ... 45 5.3 Recommendations ... 45 5.4 Scope for future Research... 46

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Chapter One: Introduction 1.1 Introduction

Vietnam's coffee industry is one of its most important contributors to economic growth. Therefore, governments and businesses on the global platform have an essential role and responsibility in ensuring sustainability in the coffee industry (Do, Kumar and Do, 2019). Both the Vietnamese economy and the international coffee market have been significantly impacted by Vietnam's rapid growth. Some four million Vietnamese people rely on the coffee industry for their livelihood (Luong and Tauer, 2006). Because Vietnam is the globe's second-biggest coffee manufacturer, Vietnamese Coffee has gained a strong following around the globe. Since many Vietnamese people enjoy their morning coffee, coffee shops have sprung up all over the country (Tu and Linh, 2017).

The rapid expansion and proliferation of the coffee industry has created a cutthroat marketplace where companies are constantly on the lookout for new strategies to enhance their share of consumer spending. Based on the conventional approach, the marketing strategy frequently boosts consumer satisfaction and loyalty by delivering high-quality services (Tran, Dang and Tournois, 2020). Lee, Moon, and Song (2018) assert that it is imperative to offer services or goods that foster customer satisfaction or avert dissatisfaction in order to maintain or acquire customers.

1.2 Rationale of the Research

A multitude of academic literature posits that customer satisfaction has become a pivotal element of the service sector, as it has the capacity to be linked with advantageous business outcomes, such as heightened sales and customer loyalty (Lee, Moon and Song, 2018). The main goal of the current research is to investigate the variables that influence customer satisfaction within the service industry, with a particular emphasis on MILANO COFFEE as a case study. It is absolutely necessary to take into consideration the attributes that may influence consumer satisfaction in order to ensure the success of coffee sales, given that consumers represent the primary component of coffee transactions.

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1.3 Problem Statement

The present study is delimited to the appraisal of customer service quality, with a particular focus on MILANO COFFEE, thus precluding a comprehensive and objective assessment of customer service quality in general. The study necessitates that survey responds to the customer service protocol at MILANO COFFEE prior to conducting an evaluation. As a result, individuals who lack prior experience with the establishment's customer service will be precluded from participating in the study.

1.4 The idea of research implementation

In the contemporary coffee industry, the provision of a high-quality cup of coffee alone is insufficient to remain competitive in the market; customer service has become an essential factor in the competition. As customer loyalty is crucial for any business, providing excellent customer service can foster brand loyalty among customers. According to Dhisasmito and Kumar (2020), the presence of loyal customers is crucial for stores to maintain their competitiveness. This is because such customers tend to engage in repeat purchases, thereby generating continuous sales and serving as valuable assets for the long-term sustainability of the stores. To secure victory in a competition by garnering devoted patrons, a store manager must enhance either the premium experience or the service. The reason for this is that the calibre of service rendered can have a substantial effect on the level of contentment and allegiance of customers towards the enterprise.

<b>1.4.1 Overview of MILANO COFFFEE </b>

MILANO COFFEE is a franchise coffee brand with over a decade of industry experience. MILANO COFFEE is a manufacturer, trader, and franchisor of coffee with over 1900 establishments in 52 provinces. "MILANO COFFEE was founded on the premise of producing coffee that is popular, approachable, and rooted in the "toad" coffee shop tradition. Unlike other coffee establishments, MILANO COFFEE grows and conducts business. Pure coffee beverages with spotless, comfortable, and courteous service" (milanocoffee.com.vn).

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1.5 Research Question and Research Objectives

Objective 1: To investigate the impact of customer service factors on customer satisfaction.

Objective 2: To investigate the impact of customer service and customer satisfaction factors on brand loyalty attitude.

Objective 3: To investigate the impact of customer service and customer satisfaction variables on brand loyalty behavior.

1.6 The Scope of Study

Although the coffee industry in Vietnam is experiencing significant growth, it appears that many coffee shops prioritize their product offerings and interior design over customer service, neglecting the importance of this aspect for their business. This study's overarching goal is to shed light on why customer service is so vital to the success of coffee businesses.

The study's scope was restricted to 305 respondents who utilized the services of MILANO COFFEE. The survey will be conducted with the participation of individuals primarily through the link obtained from Facebook. The survey will commence on March 10th, 2023 and conclude on April 3rd, 2023, at which point data analysis will be conducted upon reaching the desired number of participants.

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1.7 Research Approach

The present study adopts a quantitative deductive positivism methodology. The study's aim and objectives have been formulated based on the preceding sections, with the intention of addressing the research question through the proposed research methodology. A literature review was undertaken to establish a research methodology for analyzing customer service in the coffee industry by examining prior studies in this area. The research methodology was informed by the findings of the literature review, which is presented in chapter two. This methodology entails the utilization of surveys as the primary research instrument for data collection. The rationale for adopting this methodology will be thoroughly examined in the third chapter of the research. Subsequently, all the gathered data will undergo a thorough cleansing process and detailed analysis in the fourth chapter.

1.8 Research Outline and Structure

The report comprises five distinct chapters, each with a unique perspective and emphasis on the subject of investigation. The report's chapters are accompanied by an introductory section that outlines intended contributions, as well as a concluding section that aims to provide balance and contextualize the findings presented within.

The report comprises the subsequent sections:

Introduction

This chapter serves as an introduction to the research inquiry, providing an overview of the research question, contextualizing the study within its background, and establishing the aims and objectives of the investigation.

This chapter presents a comprehensive discourse on the research methodology employed to achieve the study's objectives and address the research inquiry.

Chapter 4: This chapter presents the findings and analysis derived from the

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Findings experimentation conducted using the methods established in Chapter 3.

Conclusions/ Recommendations

This chapter presents recommendations for future research that can build upon the findings of the current study. The study is summarized by reviewing the preceding chapters with respect to the study's aims, objectives, and research questions.

Table 1: Research Structure of the Study 1.9 Chapter conclusion

The present chapter functions as a brief overview of the topic of customer service quality in the coffee industry while also offering an understanding of the reasoning behind the author's choice of subject matter. The chapter provides a synopsis of the research methodologies employed to achieve the study's goals and objectives. The chapter has presented a succinct overview of the primary findings that this report will subsequently strive to achieve.

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Chapter Two: Literature Review 2.1 Coffee shop in Vietnam

The coffee industry is currently one of the hottest industries in the Vietnamese market. Vietnamese coffee drinking is a habit and a part of their culture. Surprisingly, the exponential expansion of the franchise coffee store business has been remarkably stable in both established and developing markets (Han et al., 2018). Coffee firms must find ways to draw and keep consumers and boost profits in a highly competitive market due to their rapid growth. Traditional marketing strategies often increase customer happiness and trust by providing high-quality services (Tran, Dang and Tournois, 2020).

Vietnam's coffee industry is characterized by local production and distinctive preparation methods, which contribute to the gastronomic experience of global travelers frequenting indigenous cafes, eateries, and lodging establishments. Although tea holds a significant place in the cultural heritage of northern Vietnam, coffee has emerged as a prevalent beverage choice among the Vietnamese populace (Jolliffe, 2010). The proliferation of coffee chain establishments worldwide and the ensuing brand rivalry have rendered their survival and sustainable growth increasingly challenging. The expeditious nature of consumers' purchasing decision-making behavior is noted within this particular context (Mai et al., 2022).

2.2 Concepts

2.2.1 Organic product quality

In the last twenty years, there has been a substantial increase in the demand for organic goods across all nations. There exist two underlying factors that contribute to this phenomenon. The current trend in consumer behaviour indicates an increasing preference for environmentally sustainable, health-promoting, and advantageous modes of consumption. There is a growing trend among producers to shift away from traditional products and towards alternative options like nutritious foods and organic products, as noted by Sarabia-Andreu et al. (2020). The objective of organic food production is to produce ecologically sustainable, economically viable, and socially equitable food that is capable of integrating humanity into the environment (Cardoso, Casarotto Filho and Cauchick Miguel, 2015). Organic products are produced using environmentally favourable techniques that take into account both the characteristics of the ultimate product and the

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production methods. Thus, it is anticipated that the rising demand for organic foods will continue in the future (Tsakiridou et al., 2008). Consequently, the brand image of organic food is perceived as robust by consumers, and thus, it is expected to have a higher market value compared to conventionally produced food. According to Blair (2012), the production cost of organic food is higher compared to conventional food, resulting in increased expenses for both the producer and the consumer.

<b>2.2.2 Customer service </b>

The idea of marketing, the cornerstone of marketing, is directly linked to customer service. The marketing concept is all about how an organization interacts with its customers. The marketing concept says that a business exists to meet the wants and needs of its target market. To ensure this, the organization must put customer value, quality, customer service, and customer satisfaction at the top of its list of priorities (Berndt & Brink, 2004). Organisations engage in customer service as a means of staying competitive and identifying novel revenue streams that can enhance profitability, augment market penetration, and foster customer satisfaction and loyalty. The significance of customer service lies in its ability to enhance product quality, confer a competitive advantage, and

generate additional revenue streams. According to Jahanshahi et al. (2011), an increase in sales and income is observed.

Figure 1: The key features of excellent customer service (Jahanshahi et al., 2011).

Customer service is determined by the interaction of all factors that make products and services available to the consumer (Christopher, 1984). Superior customer service is one of the essential tools for establishing a good engagement with consumers. Furthermore, client support should be a vital component of any marketing plan. According to Abu-ELSamen et al. (2011), there is a belief that customer service is the sole factor that sets apart an organization's marketing strategy and offering. This is because it requires highly skilled employees with specific competencies to achieve customer satisfaction and loyalty. The level of care can often gauge an organization's success or

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failure it gives its customers. Mishandled client care can harm a company's bottom line (Mouawad & Kleiner, 1996).

2.2.3 Customer service quality

The commodity market is becoming increasingly competitive, and with identical goods and services, consumers can choose among numerous vendors. In addition to focusing on products, customer service also plays a role in retaining customers. Even with a great product, poor customer care will drive customers away. These days, companies' marketing campaigns in many markets focus on services combining fast delivery with friendly customer service. Cost strategies have become options that competitors can easily copy, so companies do not stand out to customers anymore (Naoui, 2014).

The success of a coffee shop in the market depends not only on how good its products are but also on how well it treats its customers. Naoui (2014) state that to remain competitive, stores require loyal consumers because they are more likely to make repetitive purchases, which can result in continuous sales; therefore, they are considered valuable assets for the stores' continued success. High-interaction industries like catering rely on the quality of their service delivery processes to attract and retain consumers. Given the unique qualities of the service industry, it is even more critical to have a firm grasp of this concept to provide excellent support.

Santos (2003) defined service quality as the comparison between the expectations of consumers and their actual experiences of receiving service. According to Kandampully (1998), many successful service providers now use service quality as a strategic differentiator and competitive advantage. Service quality confers numerous benefits to the business; it leads to consumer satisfaction. The ability to distinguish itself from competitors, boost sales and market share, provide cross-selling opportunities, improve customer relationships, and ultimately enhance its corporate image are all benefits that a company can derive from this strategy.

According to Lewis and Mitchell (1990), a multidimensional service quality assessment tool known as SERVQUAL has five dimension:

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• Tangibles — physical facilities, equipment, the appearance of contact personnel. • Reliability — the ability to perform the promised service dependably and accurately. • Responsiveness — willingness to help customers and to provide prompt service.

• Assurance — knowledge and courtesy of employees and their ability to inspire trust and confidence.

• Empathy — caring, individualised attention the company provides its customers.

Figure 2: Five service dimensions customers care about (Guzman, 2018).

While other studies have incorporated multiple views of service quality, such as its technological, functional, and ambient elements or the service itself, delivery, and surroundings, SERVQUAL has been faulted for failing to include emotional and comprehensive factors (Oh, Yoo and Lee, 2019). Stevens (1995) changed the SERVQUAL scale to create the DINESERV restaurant service quality assessment tool to overcome that shortcoming (Lupo & Bellomo, 2019). This study employs DINESERV to assess employee service quality and consumer perception of the restaurant experience. The DINESERV model is the source of the five SERVQUAL dimensions (reliability, assurance, responsiveness, tangibles, and empathy) (Oh, Yoo and Lee, 2019).

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Figure 3: Service quality paradigm of DINESERV (Lupo & Bellomo, 2019)

2.2.4 Customer satisfaction

Consumers' reaction to "satisfaction" occurs when their needs are met. The phrase "consumer satisfaction" refers to a "decision that a product feature or the product or service itself provided (or is providing) a satisfying level of ingestion-related fulfilment, either under- or over-" (Oliver, 2006). Customers are said to be satisfied with a company's goods and services when they meet or exceed their expectations. An individual's level of satisfaction with a product can rise or fall depending on how well it meets their needs or how it differs from their assumptions (Jenet, 2011). Customer satisfaction is based on how a customer sees the value of a transaction or relationship. Value is equal to the customer's perception of the quality of the service regarding price and customer acquisition costs (Jahanshahi et al., 2011). In today's competitive business environment, a service provider's ability to generate a high level of customer happiness is essential for setting themselves apart from the competition and building lasting relationships with their clientele. Prior studies have discovered that satisfied consumers significantly impact a business's success (Hanif & Riaz, 2010). Establishing and attaining consumer contentment is viewed as the ultimate objective of every business (Ooi et al., 2011).

2.2.5 Brand loyalty

Brand loyalty is the repurchase behaviour of a consumer for a brand and his or her long-term commitment to purchase the brand (Ahmed et al., 2014). The organisation with the largest market share and the highest rate of return on investments is the one that has a pool of brand loyalists. A

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customer base that is loyal and satisfied contributes to an organisation's relative bargaining power with suppliers, partners, and channels. Therefore, consumer loyalty should have a positive effect on shareholder value by reducing future cash flow volatility and associated risk (Usman & Nawaz, 2011). Loyalty is a current customer's commitment to a specific shop, brand, and service provider, despite having other options. It cultivates positive dispositions by periodically generating repetitive purchasing behaviour. A strong relationship exists between consumer loyalty and a company's profit (Osma & Sentosa, 2013). In a highly competitive and dynamic environment, customer loyalty has been deemed crucial in gaining a competitive advantage over rival businesses (Leninkumar, 2017). A comprehensive strategy for successful brand development and brand loyalty that incorporates brand experiences. Consequently, brand image and brand loyalty must be validated via positive consumer experiences. Therefore, the effect of brand equity on brand loyalty is investigated when consumers have firsthand brand experiences (Nam, Ekinci and Whyatt, 2011).

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2.3 Social exchange theory

Cropanzano and Mitchell (2005) argue that social exchange theory constitutes one of the most important theoretical frameworks for understanding conduct in the workplace. In the social sciences, business, social psychology, and anthropology all make use of the broader conceptual paradigm known as social exchange theory (Cropanzano et al., 2017). To engage in social exchange requires the participation of at least two people, and the activities involved can be either tangible or intangible, and can be mutually beneficial or costly. In most cases, the cost was calculated as the time and energy that could have been spent on other pursuits (Cook et al., 2013). According to "An affect theory of social exchange" by Lawler (2001), the intensity of one's feelings during an exchange is proportional to how closely the participants in the transaction are working together. A better grasp of client loyalty could result from contemplating this idea. Relationships between service providers and their customers can serve as social units in the service economy. Jointness in a service exchange is the degree to which the parties involved believe they have contributed to the task's success or failure, respectively, and these emotions follow. According to Lawler's theory, feelings about the service relationship may rise together with the amount of joint responsibility taken on by both parties (Sierra & McQuitty, 2005). According to the theory of social exchange, if a product meets the needs of its target audience, the target audience will show loyalty in the form of repeated purchases and word-of-mouth advertising (Manzuma-Ndaaba et al., 2018).

2.4 Theoretical model development

2.4.1 The relationship between organic product quality and customer satisfaction

The development of organic foods is being encouraged and supported by the government and various private initiatives. Because the majority of consumers want to maintain their health and avoid diseases caused by inorganic food, there is a significant shift towards organic foods among consumers as well (Jesintha). Trust is the most important factor in consumer purchasing decisions regarding organic products. Additionally, the value received by consumers influences the frequency with which they purchase organic products. In addition to the health benefits, security, and packaging claims, there are additional reasons to purchase organic products. Consistent organic product consumption has an effect on consumer satisfaction, organic product loyalty, and agricultural sustainability (Septiani, Sumarwan and Najib, 2022). In order to promote healthful

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products and preserve the environment, customer satisfaction and brand loyalty to organic products are crucial (<small>Thet, 2022). </small>

Hypothesis 1a. Organic product quality improves customer satisfaction.

2.4.2. The relationship between organic product quality and brand loyalty

Politicians in Europe, North America, and Japan were the first to change their minds about organic food. Overproduction, environmental pollution, food scares, and the loss of population in rural areas are just some of the major issues resulting from the dominant world view underlying the concepts and techniques of technology, and they have sparked a renewed interest in organic products (Paul and Rana, 2012). Consumers' intents to purchase organic foods were found to be affected by factors such as nutritional value, perceptions of healthiness, and preference for the foods' flavour profiles. According to Konuk (2019), patrons exhibit a greater propensity to expend additional resources, endure extended wait times, and travel greater distances to patronise environmentally conscious dining establishments that offer organic and locally sourced fare. The acquisition of organic products may be interpreted by consumers as a signal of elevated social standing. When consumers perceive a product or brand to have high social value, they will demonstrate brand loyalty by publishing positive information and accepting higher prices (Nguyen, 2020).

Hypothesis 1b. Organic product quality improve attitude brand loyalty. Hypothesis 1c. Organic product quality improves behaviour brand loyalty.

2.4.3. The relationship between customer service quality and customer satisfaction

The concept of customer satisfaction is traditionally based on what the consumer thinks of their particular service experience, with service quality being a key determinant (Jenet, 2011). According to Afthanorhan et al. (2019), the consensus among published studies is that service quality is a significant predictor of customer satisfaction, indicating that service standards have an impact on client happiness. As posited by Sivadas and BakerPrewitt (2000), a fundamental distinction exists between service quality and customer satisfaction. Specifically, service quality relates to the executive delivery of the service, whereas customer satisfaction refers to the client's overall experience. Conversely, the level of customer satisfaction is contingent upon the degree of contentment exhibited by current customers towards the provided service.

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Additionally, it is also essential to evaluate how customers feel about the quality of the assistance they receive. If the delivered service meets or exceeds the customer's expectations (positive disconfirmation), the customer is happy; otherwise, the customer is dissatisfied (negative disconfirmation).

Figure 4: Customer perceptions of quality and customer satisfaction (Jenet, 2011).

Above, you can see how satisfied our previous customers were with our service. The term "service quality" refers to a customer's perception of the service's dependability, responsiveness, certainty, empathy, and concreteness. Satisfaction, on the other hand, is impacted by a wider range of variables, including service quality, product quality, pricing, contextual circumstances, and individual differences (Jenet, 2011). Customer satisfaction is experience-dependent because, as stated by Siddiqui and Sharma (2010), consumers rate their degree of satisfaction after each service contact. However, opinions about quality aren't always based on personal experience (they can also be influenced by other factors like advertising or word of mouth). That is to say, it is customer happiness, and not quality, that ultimately counts.

Hypothesis 2a. Customer service quality improves customer satisfaction.

2.4.4. The relationship between customer service quality and brand loyalty

In highly competitive markets, such as the coffee-shop industry, a brand's ability to establish a clear and easily comprehensible identity that resonates with customers can foster trust and ultimately distinguish the brand from its rivals (Susanty and Kenny, 2015).Service quality is important because it has an effect on how loyal people are to a brand. In recent research studies, the idea of brand loyalty has also gotten a lot of attention because it helps companies make money and is a key factor

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in determining consumer-based brand equity (Hemsley-Brown and Alnawas, 2016). It is now generally accepted that brand loyalty involves both attitudes and actions on the part of consumers. Some research points to a direct link between service quality and brand loyalty, while other data points to an indirect one. According to the results, there is a positive and statistically significant correlation between consumers' opinions of the service's quality and their inclination to make a purchase or promote the business to others. With the help of structural equation modelling, we can deduce that customer loyalty to a particular brand is correlated with how satisfied they are with that brand rather than with how highly they rate the quality of the service they received.

Hypothesis 2b. Customer service quality improves attitude brand loyalty. Hypothesis 2c. Customer service quality improves behaviour brand loyalty.

2.4.5. The relationship between customer satisfaction and brand loyalty

Consumer satisfaction has been considered a key factor in long-term company success, so much study on it examines its effects on post-consumption assessments like cognitive and emotional loyalty. Satisfied clients are less price sensitive, less affected by rivals, and more loyal to the company than unhappy ones (Nam, Ekinci and Whyatt, 2011). Wu and Wang (2014) proposed that contented customers' loyalty to the business would be strengthened, which would increase the likelihood of their future repeat purchases. Overall, consumer satisfaction has a much greater impact on brand loyalty than advertising, corporate image, and other influences on brand experience. This suggests that guaranteeing consumer satisfaction, particularly with the brand's substantial product offering, is crucial for fostering brand loyalty (Musikapart, 2013). Brand loyalty requires customer satisfaction because an increase in customer satisfaction typically results in an increase in brand loyalty (Song, Wang and Han, 2019). Tu and Chang (2012) found that corporate brand image influenced brand loyalty indirectly through customer satisfaction. Customer contentment is a crucial factor in consumer retention and business success. Customer satisfaction is a crucial factor in securing brand loyalty over an extended period and is a significant determinant of long-term business success. To clarify, it can be posited that satisfaction and loyalty represent discrete phases in the customer's reaction to the products or services provided by a given company. The customer's response to a company's offering can be categorized into two stages: satisfaction, which is the initial stage, and loyalty, which follows thereafter (Susanty and Kenny, 2015).

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Hypothesis 3a. Customer satisfaction improves attitude brand loyalty. Hypothesis 3b. Customer satisfaction improves behaviour brand loyalty.

Figure 5: Hypothetical model of this Research

2.5 Summary

The following section presents an overview of customer service and its impact on customer satisfaction, attitudes, and behaviour. Furthermore, emphasises the significance and immediacy of customer service in contemporary society. In the contemporary era, customer service holds significant sway by conferring a substantial edge to enterprises in augmenting customer allegiance to the enterprise. The correlation between the attainment of customer contentment and allegiance and the calibre of service rendered is inseparable. Hence, it is imperative for the service sector and other industries to offer customised solutions in each department to gain a competitive edge in the market. Enhancing the quality of services is anticipated to result in customer satisfaction and loyalty, thereby leading to a boost in the company's performance (Juanamasta et al., 2019).

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Chapter Three: Research methodolody 3.1 Introduction

The research techniques that will be given and chosen in this part will serve to elucidate the aims of the study. Researchers will choose relevant variables that influence the research problem. The term "research" has been described in a variety of ways by various writers. Its goal is to resolve enigmas by using systematic analysis and empirical evidence. Simply put, the study is a methodical strategy for answering a specific question. This requires coming up with a theory, gathering data on pertinent factors, evaluating and understanding the findings, and drawing some sort of conclusion (Bhattacharyya, 2009). Generally speaking, to conduct research means to seek out information, research can also be thought of as the methodical and scholarly pursuit of knowledge. According to Kothari (2004), the scientific method involves a series of steps, including the identification and re-identification of issues, the development of hypotheses and potential solutions, the collection, organisation, and analysis of data, the drawing of conclusions, and the verification of these inferences towards the original idea. The research approach established by (Saunders, Lewis, and Thornhill, 2009) will be used in this research to improve the credibility of the results. Some of the

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methods shown in the following image will be employed in this study.

Figure 6: The Research Onion (Saunders et al., 2009, p.108) 3.2 Research Philosophy

Saunders et al (2019) define the concept of "research philosophy" as a comprehensive collection of presumptions that dictate the manner in which novel data should be acquired. In academic discourse, the term research philosophy pertains to the fundamental assumptions regarding individuals' perception of the world, communicated in a clear and accessible manner. Johnson and Clark (2006), as cited by Saunders et al. (2009), have highlighted that the selection of a research approach has significant implications on the philosophical commitments and the comprehension of the phenomena under investigation... In this study, the researcher will concentrate on analysing positivism, interpretivism, and realism as research philosophies. Each method has distinct effects on the assumptions, the problem-solving strategy, and the research procedure. Positivism, interpretivism, and realism are said to be the three most important paradigms for comprehending the world (Žukauskas, Vveinhardt and Andriukaitienė, 2018).

3.2.1 Positivism

Scientific positivism involves using empirical data to formulate rule-like generalisations about social life. This highlights the positivist stress on a rigorously empirical scientific process that is intended to produce objective, unbiased data and facts (Saunders et al., 2019). Positivism as a philosophical framework shares close conceptual links with objectivism. By adopting this logical stance, scholars evaluate the social world by expressing their opinions on it, but they avoid bias by referring to objectivity (Žukauskas, Vveinhardt and Andriukaitienė, 2018). As a result, effective research entails the unedited documenting of data acquired through efficiency-driven methods of inquiry, as well as the use of exact terms and categories in the documented process. The researcher's observational rigour in using cross-referencing systems offers the required form of 'quality assurance' in this process of knowledge creation (Partington, 2002).

Positivism uses certain methods to help us better comprehend the natural world, but same methods don't always work when applied to the social world. Since this is the case, we can deduce that positivism has its drawbacks. Positivism, which seeks to reduce complexity to simplicity by refining and controlling the given variables, can be difficult to implement in some instances of research,

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given the assumption that isolating certain variables can be challenging. This can make it extremely challenging to be more specific and take into account all variables that may influence research findings (Alharahsheh and Pius, 2020).

3.2.2 Interpretivism

According to interpretivism, people are differentiated from physical occurrences by their role as meaning-makers. According to interpretivism, research in the social sciences must be unique from research in the scientific sciences rather than imitating the latter. People and their social environments cannot be evaluated in the same manner as physical events. Positivists' pursuit of universally applicable "laws" has been criticised by interpretivists. They argue that it is counterproductive to limit human complexity to a set of laws-like generalisations (Saunders et al., 2019).

The interpretivism studies aim to explore novel and refined understandings of social contexts, as per the research conducted by Saunders et al. (2019). Researchers adopt a philosophical approach wherein they rely on their personal beliefs and ideals to provide a justification for the study's existence. The interpretivist perspective posits that philosophy and social sciences are inextricably linked and should be integrated, while positivism advocates for a strict separation between scientific matters that can be resolved through research and philosophical issues that are deemed "speculative," thereby rejecting the role of philosophy (Žukauskas, Vveinhardt, & Andriukaitien, 2018).

3.2.3. Realism

Realist inquiry emphasises the independent existence of objective truth and faith claims. Both direct and critical realism are important sub-schools within this philosophical tradition. What one sees, hears, experiences, etc., directly is what direct realism is about. In contrast, critical realism focuses on people reflecting on their lived experiences. Social constructivism is important because people need to defend their own values and ideas (ukauskas, Vveinhardt, & Andriukaitien, 2018). While positivism dismisses the possibility of uncovering hidden "levels" of reality through scientific inquiry, realists take such discoveries seriously. The realism position holds that all things, structures, events, and 'generative processes' are equally real regardless of whether or not they can be seen (Chia,

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2002). Successive advancements in realism can be said to discover more and more effective methods of stimulating our innate recognitional capacities (Carroll and Proquest (Firm, 1999).

3.3 Research Philosophy Approach

An important design issue for research initiatives is whether or not they deal with testing theories or theory development. Deductive and inductive reasoning are often used to illustrate these two distinct methods (Saunders et al., 2019). To do research using the deductive approach, one must first develop a theoretical and conceptual framework before putting it to the test using data collected from the real world. Moving from the actual world to the building of explanations and theories based on observations, induction has the opposite logical ordering as deduction (Pathirage and Haigh, 2007). Combining previous knowledge with new information acquired through experimentation is an example of the inductive reasoning process (Singh, 2015). Typically, the study begins with theory, followed by the development and evaluation of a hypothesis based on survey results. Inductive procedures may emerge from the use of interviews or focus groups (Da Veiga, 2016).

It has been determined that the deductive method is appropriate for this research project. This is due to the fact that the author of the study is not going to uncover any new information regarding the subject of the study but rather verify a hypothesis that is derived from the literature review. Consequently, Robson (2002) outlines five sequential phases through which deductive research will be conducted (cited by Pathirage and Haigh, 2007):

(1) Drawing a hypothesis from the theory;

(2) Formulating the hypothesis in operational terms; (3) Putting the operational hypothesis to the test; (4) Analysing the inquiry's concrete results; (5) Revising the theory if needed.

3.3.1 Research approach: quantitative or qualitative

The research methodology is a crucial part of the study design since it determines the methods used to gather and analyse the data. The methodology used to do research varies according to the researcher's guiding research philosophy and ideology. Quantitative and qualitative research are the two main approaches to studying society and the person (Yilmaz, 2013).

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In terms of data collection and analysis, quantitative and qualitative research employ distinct methodologies. The ability to quantify phenomena is essential for statistical analysis in quantitative research. In contrast, qualitative research involves collecting data that cannot be boiled down to numerals, like observations, interviews, and archival materials. However, the goals of scientific inquiry, along with the paradigms and meta-theoretical presumptions underlying quantitative and qualitative approaches, are distinct. According to (Gelo, Braakmann, & Benetka, 2008). Originally, quantitative methods were frequently associated with deductive and qualitative methods with inductive research approaches (Spens and Kovács, 2006). Comparatively, qualitative research provides for the in-depth examination of the lived experiences of relatively few individuals, while quantitative research is based on the positivist stance. In contrast to qualitative theories, quantitative researchers maintain a distance from research participants in the belief that this fosters objectivity (Quick and Hall, 2015).

For this study, the quantitative approach is completely consistent with the research objectives as well as the positivist philosophical point of view of this study. In order to survey customers' attitudes and behaviours regarding MILANO COFFEE's customer service quality, it is necessary to obtain customer feedback on service quality in order to make informed, objective decisions.

3.4 Research Strategy

The researcher is guided in the study's planning, implementation, and management by the research strategy. Interviews, questionnaires, and statistical analysis are all examples of methods of research that may be used to gather and analyse data (Johannesson and Perjons, 2014). If want to answer research questions in an important and compatible manner with the remainder of the topic, questions, and objective, must choose the appropriate research approach. (Walshe et al., 2004). Research may be categorised in a number of ways, each appropriate for a different set of circumstances related to the study's aims, methodology, and findings. According to Gratton and Jones (2010), there are four main types of research: exploratory, descriptive, explanatory, and predictive. Research goals and aims must be carefully considered in order to choose an acceptable research approach. Additionally, research questions and objectives, the breadth of current understanding, the amount of time available and the accessibility of other resources, and the underlying research philosophy all play a role in the selection of a particular strategy.

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Based on the aforementioned research considerations, the author chose a survey as the primary research strategy for this study. If the study is theoretical in nature, with hypotheses drawn from the literature review, then a deductive method can be used to determine how to best evaluate those hypotheses (Saunders et al., 2019). An asset of surveys as a research strategy is the ability to acquire large quantities of data quickly and inexpensively. The data may be shallow if respondents do not have the time or interest to answer the researcher's questions in depth, which is a drawback. For the same reasons, some people could opt out of taking part in the study, lowering the response rate (Johannesson & Perjons, 2014).

3.5Research Methodologies

One approach involves the use of quantitative methods, wherein a follow-up questionnaire is administered and includes standard or intervention-specific items. These items are then utilised in statistical models to analyse the implementation and impact of the intervention. Qualitative data accumulation is often utilised as a complementary approach to quantitative data. This involves conducting interviews that are semi-structured with employees and managers, observing intervention activities, and undertaking long-term field research (Abildgaard, Saksvik and Nielsen, 2016). The fundamental attributes of quantitative and qualitative methodologies can be delineated by examining their corresponding philosophical underpinnings, methodological presumptions, and research techniques (Gelo, Braakmann and Benetka, 2008).

Primary data can be obtained by directly collecting information from the subjects that form the sample, while secondary data can be acquired through the use of both personal and official documents as well as research archives. The collection of relevant data is imperative in quantitative research for the purpose of testing the formulated hypotheses (Gelo, Braakmann, & Benetka, 2008).

3.5.1 Primary data

According to Kothari (2004), primary data means data that is collected for the first time and is unique in nature. According to Kasyoka (2010), Primary data refers to information collected especially for the purpose of research by the researcher, primary data possesses the advantage of being able to be collected from a wide range of populations, rendering it well-suited for conducting studies on diverse populations. One potential drawback associated with primary data is that the process of gathering it can be both resource-intensive and expensive.

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3.5.2 Secondary data

Secondary data pertains to data that has already been collected by a different person or organisation and statistically analysed (Kothari, 2004). The analysis and interpretation stages are typically linked with secondary data, while primary data is typically associated with the identification phase. Secondary data are often more intricate and challenging to observe directly as they are derived or abstracted from multiple primary data sources. Consequently, additional tiers of data analysis manipulation and interpretation are required (Atici et al., 2012).

The principal advantage of employing secondary data is the significant cost and time savings. The utilisation of secondary data is generally a more cost-effective approach compared to conducting primary data collection. Consequently, it is possible to analyse significantly larger datasets, such as those gathered by governmental entities. According to Saunders, Lewis, and Thornhill (2012), having pre-collected data allows for increased opportunity to contemplate theoretical objectives and substantial concerns, thereby enabling greater focus on data analysis and interpretation. Lack of control over the formatting and content of survey items is one of the disadvantages of using secondary data. This may imply that crucial research queries are omitted from the data. The role of subtleties in research cannot be overlooked, and it is worth noting that secondary data may not always provide an exact answer to the research question at hand, but rather may offer insights into broader or related topics (Vartanian, 2010).

<b>3.6 Data Collection Technique </b>

3.6.1 Survey questionnaire

According to Roopa and Rani (2012), A questionnaire is a series of created or copied queries offered to a respondent in order to gather their perspective. The most common method of gathering numerical data is through the use of an instrument for surveying called a questionnaire. The implementation of a survey instrument enables the collection of numerical information in a standardised manner, resulting in data that demonstrate homogeneity and coherence for analytical objectives. It is essential for questionnaires to have a well-defined purpose that is consistent with the research goals.

MILANO COFFEE's organic coffee products' service quality and consumer perception were assessed via a questionnaire. This questionnaire consists of 3 main parts: Part 1: Demographic information;

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Part 2: Organic Coffee and Customer Service at MILANO COFFEE; Part 3: Your feelings about MILANO COFFEE. For the demographic information section, including questions about consumer confidential information such as age, gender, income,... The remaining two sections will use a 5-point Likert scale to evaluate customer satisfaction with MILANO COFFEE's service quality. Regarding part 2, consisting of 14 questions, item items from Sarabia-Andreu et al. (2020) and Ryu, Lee, and Gon Kim (2001) were used to measure consumer perception of organic coffee and customer service satisfaction. The questions of Choi, Ok, and Hyun (2012) were used to measure customer satisfaction, emotions and beliefs about MILANO COFFEE for part 3, consisting of 13 items. The questionnaire queries were obtained from these articles. Participants will be asked to rate their agreement on a scale of 1 (strongly disagree) to 5 (strongly agree). This survey has a total of 35 questions to clarify the purpose of the study.

3.6.2 Data Collection and Analysis

The researcher will utilise a questionnaire to collect information on consumers' perspectives, preferences, experiences, and loyalty. The focus will be on assessing the level of satisfaction customers have with MILANO COFFEE's organic coffee and customer service. The questionnaire consists of a series of queries designed to measure consumer attitudes and behaviours regarding various aspects of MILANO COFFEE's organic products and customer service. Customers will indicate whether they are content or dissatisfied with the customer service through these inquiries. This questionnaire will be designed in English and Vietnamese with identical content to make data collection simpler and more convenient.

In an effort to obtain more objective responses from consumers, questionnaires were sent to customers who varied in age, gender, occupation, level of education, and income. This questionnaire received a total of 311 responses. The responses will then be statistically screened, and the data will be analysed.

The survey was administered between March 10th, 2023 and April 3rd, 2023. The survey questionnaire was created using a Google form and distributed online to the respondent. The Google Form provides a platform for collecting primary data from mobile devices and computers. To invite individuals to participate in this survey, the researcher posted the link to the survey on multiple Facebook groups and sent the link to the customer's messenger. Each survey is sent with

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the expectation that a complete answer document will be returned; however, there are some individuals who cannot participate because they have never purchased a product from MILANO COFFEE. The remaining 305 survey votes out of a total of 311 were, therefore, satisfactory, accounting for 98.57% of the total number of original ballots.

3.7 Validity And Reliability

3.7.1 Validity

The validity of a study is defined by how well it represents reality. A study is considered valid only if the researchers effectively address the specific concepts they intended to investigate. The concept of validity is often categorised into internal and external validity, and it is crucial to differentiate between these two terms (George, Batterham, & Sullivan, 2003). The concept of internal validity pertains to the degree of precision in attributing the impact observed in the dependent variable to the independent variable, while ruling out the influence of any extraneous variable. External validity refers to the degree to which the findings of a study conducted on a particular sample can be generalised to other populations or contexts. It is noteworthy that the internal validity of an experiment is inversely proportional to its external validity, as stated by Srivastava and Rego (2011).

3.7.2 Reliability

Reliability, in the context of research instruments, refers to the consistency with which results from several measurements are achieved. Accuracy, precision, consistency, homogeneity, and stability all play a role in reliability. In other words, if we use the same or comparable instruments on multiple occasions to measure a set of behaviours that are typically relatively stable, we would anticipate similar results, assuming the instruments' reliability. Stability, homogeneity, and equivalence are the three essential characteristics of a trustworthy scale (LoBiondo-Wood and Haber, 2013).

3.8 Limitation

As stated in the section on survey design, the survey questionnaire includes questions that have been adapted from previous studies conducted in various industries. Thus, it can be inferred that the aforementioned set of inquiries may not be suitable for the process of constructing measurements. Consequently, it is imperative for the author to meticulously examine the literature review and choose the most pertinent research as a basis for developing questionnaires.

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