Khóa luận tốt nghiệp tiếng anh: A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism

Shu - Te University
College of Management
Graduate School of Business Administration
Master
A Study on the relationship between service quality and
customer satisfaction in Hanoi’s tourism
Student: Tran Hong Hanh
Advisors: Dr. Jau-Shyong Wang
Dr. Sheng-Jung Li
Co-advisor: Dr. Dao Thi Thu Giang
May, 2014
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Shu-Te University
Graduate School of
Business Administration
Thesis
A Study on the relationship between service quality
and customer satisfaction in Hanoi’s tourism
Tran Hong Hanh May, 2014
A Study on the relationship between service quality and customer satisfaction in
Hanoi’s tourism
Student: Tran Hong Hanh
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Advisor: Dr. Jau-Shyong Wang
Dr. Sheng-Jung Li
Co-Advisor: Dr. Dao Thi Thu Giang
A Thesis
Submitted to the
Graduate School of Business Administration
College of Management

Shu-Te University
In Partial Fulfillment of the Requirements
For the Degree of
Master in
Business Administration
May, 2014
Graduate Student of Shu-Te University
Recommendation Letter from Thesis Adviser
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This Student Tran Hong Hanh, whose thesis entitled “A Study on the relationship
between service quality and customer satisfaction in Hanoi’s tourism”, is under my
advisory and agree to submit for examination.
Adviser :
Co-Adviser
:
Date
: / / 　

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Graduate School of Business Administration, Shu-Te University
A Study on the relationship between service quality and
customer satisfaction in Hanoi’s tourism
Student: Tran Hong Hanh
Adviser: Dr. Jau-Shyong Wang
Dr. Sheng-Jung Li
Co-adviser: Dr. Dao Thi Thu Giang
ABSTRACT
The main purpose of this study is to test the level of factors of service quality and
the impact of them on customer satisfaction in Hanoi’s tourism. The research method used
in this study is quantitative method with multivariate statistical analysis steps such as:

testing by Cronbach’s Alpha coefficient, explore descriptive analysis, correlation analysis,
regression analysis. From 206 valid answered questionnaires, the research results show that
there are four main factors affecting tourist satisfaction including (1) core tourism
experience, (2) fairness of price, (3) value for money, and (4) security. In which, the factor
“value for money” has biggest impact intensity, next is the factor “security”, “fairness of
price” and the last is the factor “core tourism experience”. Moreover, the research results
also show conclusion, limitations as well as directions for further researches in the future.
Keywords: Customer Satisfaction, tourist satisfaction, tourist destination, SERVQUAL,
SERVPERF
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ACKNOWLEDGMENTS
During the implementation of this thesis, I have received much help from the people
who have helped me. Without them I could not have completed this thesis, so I wanted to
express my deep gratitude to those who helped me.
First, I would like to express our gratitude to the teachers of the University SHU-TE
and the University of Foreign Trade who taught me and helped me throughout the course.
Special thanks to Dr. Jau-Shyong Wang, Dr. Sheng-Jung Li, University of SHU-TE and Dr.
Dao Thi Thu Giang, Vice President of Foreign Trade University who provided constant
guidance and very useful advice for me to complete this thesis.
Next, I would like to thank to my classmates who share and help me during the study at
the University of SHU-TE. I also thank the colleagues in Department of Culture, Sports and
Tourism who have helped me in the process of surveying and data collection in this thesis.
Finally I really thank my family and friends who have shared, encouraged me during
the learning process and the implementation of this thesis.
Thank you very much.
Tran Hong Hanh
MBA student, Shu-Te University
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TABLE OF CONTENT
ABSTRACT i

ACKNOWLEDGMENTS ii
TABLE OF CONTENT iii
LIST OF FIGURE v
LIST OF TABLE vi
CHAPTER 1: INTRODUCTION 1
1.1. Research background 1
1.2. Research motives 1
1.3. Research objective 3
1.4. Research questions 3
1.5. Research procedure 4
CHAPTER 2: LITERATURE REVIEW 5
2.1. Service and tourist product 5
2.1.1. Service definition 5
2.1.2. Tourist product 6
2.2. Service quality and tourist destination quality 8
2.2.1. Service quality 8
2.2.2. Tourist destination quality 11
2.3. Service quality models 12
2.3.1. Perceived service quality model 12
2.3.2. SERVQUAL Model 13
2.3.3. SERVPERF Model 15
2.3.4. HOLSAT Model 15
2.3.5. Model of Narayan, Rajendran & Gopalan for measuring service quality in tourism 18
2.4. Customer satisfaction 19
2.4.1. Customer satisfaction in general 19
2.4.2. Customer satisfaction in tourism 21
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2.5. Studies on the relationship between service quality and customer satisfaction 23
2.5.1. Overview of studies in various industries 23
2.5.2. Studies in the tourism industry 25

CHAPTER 3: RESEARCH METHODOLOGY 26
3.1. Research model and hypotheses 26
3.2. Measurement 29
3.3. Data collection and analysis method 33
CHAPTER 4: ANALYSIS AND FINDINGS 36
4.1. Demographic analysis 36
4.2. Descriptive statistical analysis 40
4.2.1. Reliability analysis 40
4.2.2. Descriptive Analysis 44
4.2.3. ANOVA analysis 45
4.3. Pearson Correlation 51
4.4. Hypothesis testing 53
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 59
5.1. Conclusions 59
5.2. Recommendations 61
5.3. Limitations of the study 62
REFERENCES 63
Appendix 69
Survey on service quality and customer satisfaction 69
of Hanoi’s tourism 69
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LIST OF FIGURE
No Figure title Page
1
Figure 2.1: Framework of tourism offering by Lumsdon, 1997
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2
Figure 2.2: Perceived service quality model
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Figure 2.3: SERVQUAL model
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Figure 2.4: The SERVPERF model
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Figure 2.5: Holsat Model
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Figure 2.6: Model of Narayan, Rajendran & Gopalan for
measuring service quality in tourism
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Figure 2.7: Source of tourist’s dissatisfaction
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Figure 2.8: Customer’s perception of service quality and customer
satisfaction
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Figure 3.1: Research model
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LIST OF TABLE
No Table’s title Page
1
Table 2.1: Some studies of the relationship between service quality and
customer satisfaction
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Table 3.1: Level of customers’ satisfaction with service quality
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Table 3.2: Number of foreign visitors to Hanoi from 2008 to 2012
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4
Table 3.3: Number of estimated foreign visitors to Hanoi in 2013
(only visitors who stay in hotel)
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Table 4.1: Demographic information of respondents
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Table 4.2: Nationality of respondents
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Table 4.3: Cronbach’s Alpha of valiables
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Table 4.4: Reliability score of the core tourism experience dimension
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Table 4.5: Reliability score of the information dimension
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Table 4.6: Reliability score of the hospitality dimension
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Table 4.7: Reliability score of the fairness of price dimension
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Table 4.8: Reliability score of the hygiene dimension
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Table 4.9: Reliability score of the amenities dimension
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Table 4.10: Reliability score of the value for money dimension
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Table 4.11: Reliability score of the logistics dimension
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Table 4.12: Reliability score of the food dimension
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Table 4.13: Reliability score of the security dimension
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Table 4.14: Descriptive Statistics
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Table 4.15: Test of Homogeneity of Variances between age groups
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Table 4.16: ANOVA between age groups
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Table 4.17: Test of homogeneity of variance of gender groups
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Table 4.18: ANOVA between gender groups
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Table 4.19: Descriptive means between genders
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Table 4.20: Pearson Correlation data
51
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Table 4.21: Model Summary
52
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Table 4.22: ANOVA
b
analysis
53
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Table 4.23: Estimated Coefficients
a
53
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Table 4.24: Hypothesis testing results
54
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Table 4.25: Adjusted Model Summary
56
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Table 4.26: ANOVA
b

analysis of Adjusted Model
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Table 4.27: Estimated Coefficient
a
of Adjusted Model
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CHAPTER 1: INTRODUCTION
1.1. Research background
Nowadays, tourism market is more competitive than in the past. Because of the emergence
of new tourist destinations and the increasingly role that tourists play, tourism industry has
been turning to one of the fastest growing economic sectors in recent years. With the
increased competition in tourism, tourist destinations need to create new strategies to gain a
better competitive position and to increase the attractiveness related to other destinations.
As many scholars pointed out, improving quality of tourist products, leading to higher
customer satisfaction, is an important strategy that can attract more tourists to a destination.
Zeithaml and Bitner (2003) define service quality as a global judgment or attitude relating
to the superiority of a service. In determining the quality delivered to customers through the
product or service and the accompanying services, customer satisfaction is the leading
criteria that has been researched by many scholars (Vavra, 1997). According to Baker and
Crompton (2000), satisfaction is the psychological and emotional conditions of personal
experiences. Sweenty and Soutar (2001) regard consumer satisfaction as an emotional
reaction to specific transactions which depended on the achievement of the expected
products or services, on the consistency between the anticipatory reactions and the actual
results. Based on the researches of many scholars in term of service quality, customer
satisfaction at many tourist destinations in the world, many useful recommendations and
solutions have been adopted and proved to have positive effect in increasing tourist service
quality of these destinations.
1.2. Research motives

As the heart of Vietnam with the cultivation of thousands of year history, Hanoi has
become a tourist destination of the country with many attractions including natural
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landscapes, long-standing historical sites as well as the intangible cultural heritage, etc. The
outstanding tourism resource of Hanoi is human culture tourism. Hanoi has, so far, 5,175
historical cultural relics of which 1,050 relics are ranked at national level, making up nearly
20% with the highest density of relics nationwide (Department of Culture, Sports and
Tourism). According to the statistics of the Department of Culture, Sports and Tourism, in
the first quarter of 2013, Hanoi received 5.12 million visitors, up 17 per cent year on year,
including 615,000 international arrivals and more than 4.5 million domestic visitors. In
recent time, Hanoi tourism has developed significantly with variety of service packages,
which are the result of country’s innovation. It is said that Hanoi is the hub of international
tourists to Vietnam and is a favorite tourist destination in the world as the number of
domestic and international arrivals to Hanoi increases every year. Although the tourism
industry of the city has improved over the years and turned into the fast-paced sector, it has
to dealing with many issues such as poor transportation system, traffic chaos, serious
environmental pollution due to rapid urbanization, food hygiene and safety, etc. Appealing
to tourists is a key target of strategies in the tourism industry, and planning products that
satisfy tourist requirements is a principle approach in attracting tourists to Hanoi. The need
to explore the perceptions of tourists to Hanoi tourist products quality so that service
quality can satisfy the customer demands is thus a major research motivation of this study.
Discussing the correlations between service quality and tourist satisfaction is another
important motivation for this study.
From the demand of the current situation, I would like to conduct a research on “A study
on the relationship between service quality and customer satisfaction in Hanoi’s
tourism” with a hope to give some assessment on the satisfaction and feeling of
international customers about the service quality of Hanoi tourism, thereby making
proposals to improve the service quality and tourist satisfaction in order to create an
impressive image of Hanoi in the international customers’ heart.
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The study is set to be significant to policy makers in building policies and plans to support
for the development of tourism industry. This will also deliver some implications for many
companies which are doing business in tourism field to improving their service quality and
may be a reference material to those whom are going to conduct a further of similar
research about tourist satisfaction.
1.3. Research objective
The followings are the research objectives of this study:
• To determine the level of service quality, customer satisfaction of foreign tourists in Hanoi
• To investigate the relationship between service quality and customer satisfaction of foreign
tourist in Hanoi.
• To provide some recommendations to improve the service quality and customer satisfaction
of Hanoi’s tourism.
1.4. Research questions
This study is conducted to find out the answers to the dialectical relationship between
service quality and customer satisfaction of foreign tourists in Hanoi.
Based on the research objectives above, I outline some research questions as follows:
 What are the levels of service quality and customer satisfaction of foreign tourist in Hanoi?
 What are the relationships between service quality components and customer satisfaction of
foreign tourists in Hanoi?
 How to improve the service quality and customer satisfaction of Hanoi’s tourism?
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1.5. Research procedure
To research this theme scientifically and effectively, I plan a studying process in the
specific steps as follows:
(1) Choose the theme based on the scope and object of the study appropriate to the
individual study purposes.
(2) Search for and study the works and paper by previous researchers of service
quality, customer satisfaction and revisit intention.
(3) Choose the research model and research methodology
(4) Deliver questionnaires and collect data

(5) Analyze data by using statistic software SPSS to verify the parameters and test the
hypotheses.
(6) Give recommendations based on empirical results.
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CHAPTER 2: LITERATURE REVIEW
2.1. Service and tourist product
2.1.1. Service definition
Service is a popular concept in marketing and economic fields. Zeithaml and Bitner (1996)
define service as attitudes, processes and functions. Lehtinen (1982) states that service is
“an activity or a series of activities which take place in interaction with a contact person or
a physical machine and which provide customer satisfaction”. Koler and Armstrong (2009)
delivered a definition of service that consider service as “any activity or benefit that one
party can offer to another that is essentially intangible and does not result in the ownership
of anything”.
As specified in many definitions mentioned above, service is a special product which has
its own features that make it different from goods. According to Kotler and Keller (2007),
there are four characteristics of service which are intangibility, inseparability, variability
and perishability. Service’s intangibility means that a service cannot be touched, seen,
heard, smelled, weighted or counted precisely. Customers can only evaluate service quality
when they use or consume it. Inseparability means that people cannot divide service in two
clear stages: production stage and consumption stage as in fact the two stages happen at the
same time. Service variability means that a service is heterogeneous or unique. The service
quality varies because the performance of services is diverse as it depends on service
providers, how, where, when and two whom it is provided. Service is also perishable goods
as it cannot be stored for later use or sale.
Jacobs, Chase and Aquilano (2009) describe five essential characteristics of services:
intangible, interaction with the customer for it to be a service, heterogeneous, perishable
and time dependent and lastly, the specifications of a service are defined and evaluated as a
package of features that affect the five senses. These features are including: supporting
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facility, such as location, decoration, layout, supporting equipment, etc.; facilitating goods,
like the quantity of physical goods that go with the service (the food items that accompany
a meal service), variety, consistency; explicit services, such as training of service personnel,
consistency of service performance, availability and access to the service, and
comprehensiveness of the service; implicit services, for example, attitude of the servers,
atmosphere, waiting time, status, privacy and security, and convenience, etc…
2.1.2. Tourist product
As Institute of Tourism in Britain (1976) defines, tourism is the temporary short-term
movement of people to destinations outside the places where they normally live and work,
and activities during their stay at these destinations (Holloway, 2006). This is service sector
with a particularly complex product which depends on an extremely fragmented supply.
The term “tourist product” was introduced by Middleton in 1989. He suggests that “from
the standpoint of a potential customer considering any form of tourist visit, the product may
be defined as a bundle or package of tangible and intangible components base on activities
at a destination”(Middleton & Clarke, 2001, p124-p125). A tourist product is a service
rather than a tangible good. When a tourist buys a package tour, they are buying more than
a simple collection of service, such as an airline seat, hotel room, food and the opportunity
to sit on a beach; they are also buying the temporary use of a strange environment and other
intangible benefits such as service, atmosphere and hospitality (Holloway, 2006).
Middleton & Clarke (2001) state that there are two levels of tourist product, including the
total level and specific level. The total level is the complex experience of tourist during the
time one stay at the destination. The other refers to a discrete product offered by a single
business.
According to Middleton & Clarke (2001), a tourist product contains three components
which are the core product, the formal product and the augment product. The core product
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is defined as the essential service or benefit which satisfy the identified needs of target
customer segments. The formal product or tangible product is the specific offer for sale
which contains the facilitating products, the services and goods that must be present for the
guest to use the core product as well as some extra supporting products. The augmented

product contains added value producers in all forms built into the formal product which
makes them more attractive. Kotler et.al. (1999) propose that accessibility, atmosphere,
customer interaction with the service organization and customer participation are
components of the augmented product (Komppula, 2001).
Smith (1994) suggests the five level of tourist product are: physical plant, services,
hospitality, freedom of choice and involvement (cited from Komppula, 2001).
- Physical plant: the place and the conditions of the physical environment, such as weather,
water, infrastructure.
- Service: the performance of specific tasks required to meet the needs of tourists such as
front desk operations at a hotel, food and beverages provisions etc
- Hospitality: the fulfilled expectation of the tourist.
- Freedom of choice: the necessity that the traveller has some acceptable range of option in
order for experience to be satisfactory.
- Involvement, the customer participation is a relevant part of a service process The basis for
successful participation by consumers in producing tourist products is the combination of
an acceptable physical plant, good service, hospitality and freedom of choice
Limsdon (1997) had a different point of view since he places the service offering within
tourism as a central component of tourist product.
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Figure 2.1: Framework of tourism offering by Lumsdon, 1997
(Source: Komppula, 2001, p6)
Based on above studies, tourist product is all state as service which includes many different
various service and physical factor that serves the customer needs. All of the dimensions of
tourist product will affect tourist satisfaction and should be taken into consideration in the
development process every tourist destinations.
2.2. Service quality and tourist destination quality
2.2.1. Service quality
Each organization is trying to provide the best quality to its customers. Although
researchers have studied the concept of service for many years, they have not had the
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agreement on service quality concept. According to Abari, Yarmohammadian and Esteki
(2011), service quality is a stable criterion that indicates how the presented services’
correspond with the customers’ expectation. Taylor and Baker (1994) refer service quality
definition as the consumer’s overall impression of relative inferiority superiority of the
organization and its service.
The present business world has turned into the era as “Quality era” (Peeler, 1996), so the
perceived quality of the product is becoming the most important competition factor in that
world. As a result, service marketers and researchers have called service quality the most
powerful competition weapon or the organization’s life-giving blood (cited in Mosahab,
Mahamad, Ramayah, 2010). They have seen that quality is a multi-dimensional
phenomenon. So that it is impossible to reach to service quality without distinguishing the
important aspects of quality.
Parasuraman, Zeithaml, and Berry (1985) propose a popular definition that is accepted
widely. They defined service quality as the discrepancy between a customers’ expectation
of a service and the customers’ perception of the service offering (cited from Saraei, Amini,
2012). According to this definition, service quality is related to the satisfaction but not
equal to that in a sense that it is attained via the difference between the customers’
expectations from the services and his/her perception of service attaining. This definition is
acceptable in the tourism industry in which the service quality is based on the level it meets
customers’ need or expectation. Some quality researchers believe that service quality can
only be measured by the functioning of the services and it is not necessary to evaluate
customers’ expectations. They believe that the concept of service quality can only be
measured by perception without any regards for expectations (Abari, Yarmohammadian,
Esteki, 2011).
In order to measure service quality, many researchers have also detected components of
service quality. According to Haywood (1988), there are three components of service
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quality, called the 3 “P” of service quality, which are: physical facilities, processes and
procedures; personal behavior on the part of serving staff and professional judgment on the
part of serving staff but to get good quality service. Haywood claims that the three elements

must be mixed in an appropriate and carefully balanced way, which will be determined by
the relative degrees of labor intensity, service process customization and interaction
between the customer and the service process.
Parasuraman et al.,(1985), point out 10 dimensions of service quality, including tangibles,
reliability, responsiveness, competence, courtesy, credibility, security, accessibility,
communication and understanding the customer. Later in 1988, the authors’ research has
concentrated on five dimensions only. They are tangibility, reliability, responsiveness,
assurance, and empathy, as follows:
- Tangibility: the physical aspect of service firm (such as accommodation, equipment,
facilities, personnel and so on)
- Reliability: the ability of service providers to fulfill their commitments continuously and
accurately.
- Responsiveness: the willingness and accountability of the service providers to support their
clients.
- Assurance: the competence and skill of the staff of an organization to give confidence and
trust to the clients.
- Empathy: the intimacy with the clients and understanding of their individuals’ feelings and
problems.
Inheriting the theory on service quality of Paresuraman et al, Johnston and Silvestro (1990)
introduce five different components of service quality which are: helpfulness, care,
commitment, functionality, integrity. In 1990, Gronroos also gave six elements of service
quality including: professionalism and skills, attitude and behavior, accessibility and
flexibility, reliability and trustworthiness, reputation and credibility, recovery.
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In general, previous researchers have some common criteria in identifying components of
service quality, as all of them state that service quality of a service firm has to be easy to
assess, have good attitude to customers. Thus, these components are still numerous and
defined variously based on the research field.
2.2.2. Tourist destination quality
Tourist destinations are noted to be the central element of the tourism system. According to

Mill and Morrison (1992), a tourist destination is composed of four dimensions which are
attractions, infrastructure, transportation and hospitality. Law (1995) states that there are
two features of tourist destination: primary features (climate, ecology, culture and
traditional architecture) and secondary features (hotels, catering, transport and
entertainment) (cited from Kozak & Remmington, 1999).
According to Blázquez, Molina & Esteban (2012), many authors have claimed that
destination quality is very important for the competitiveness in tourism, becoming a
potential source of competitive advantage. Kandampully (2000) argures that quality must
be the main tourist driving force of organization to gain future competitive challenges.
Baker and Crompton, (2000); Tam, (2000); Kozak, (2001); Alegre and Cladera, (2006)
pointed out that improving quality is identified as one of the best competitive strategies to
destinations, as it has strong effects on tourist satisfaction and the creation of positive
attitudes and loyalty towards destination (Blázquez, Molina & Esteban, 2012).
Tourist destinations are considered extremely complex products which include sum of
tangible and intangible resources (Blázquez, Molina & Esteban, 2012). One of the first
scale developed to identified factors of tourist satisfaction about quality was suggested by
Pizam, Neuman & Reichel (1978) which included 8 factors: beach opportunities, cost,
hospitality, eating and drinking facilities, accommodation facilities, environment and extent
of commercialization. Prabaharan, Arulraj & Rajapopal (2008) suggests a 6 dimension
model that similar to the dimensions of Parasuraman to measure service quality of tourism,
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which include: assurance, responsiveness, reliability, service responsibility, tangibility,
service product.
Narayan, Rajendran & Gopalan (2009) study the dimensions which best describe tourism
quality of a destination. After summarizing many previous researches, they suggest 10
dimensions of service quality in in tourism, including: core-tourism experience,
information, hospitality, fairness of price, hygiene, amenities, value for money, logistic,
food and security.
2.3. Service quality models
2.3.1. Perceived service quality model

Perceived service quality model which considered service quality as client – oriented target
was introduced by Gronroos in 1982. With this model, Gronroos claimed that service
quality which is perceived by the customer is the outcome gained by comparing the
customer’s expectation and their real experiences. If the experienced quality exceeds
customer’s expectation, the total perceived service quality is positive; and if the
experienced quality cannot reach the expectation the total perceived quality is low.
Figure 2.2: Perceived service quality model
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(Source: Gronroos, 2000)
The experienced service quality is influenced by 3 factors: functional quality (how the
service is delivered), technical quality (what customer gets through using s service) and
corporate image (the general feeling or impression of customer about a firm. Additionally,
the expected service quality is a function of number of factors, including: traditional
marketing, sales, communication, word of mouth, customer needs, public relation,
2.3.2. SERVQUAL Model
SERVQUAL Model is a very famous and widely applied model in measuring service
quality. The SERVQUAL instrument was proposed by Parasuraman et al (1985) and then
further developed for the next eight years by the same authors. As Adil et al pointed out in
their paper, SERVQUAL dimensions have been used by many researcher as basic for their
research and consequently this model has “undoubtedly had a major impact on the business
and academic communities”.
The first SERVQUAL model included 10 dimensions of service quality, and it reduced to 5
dimensions because some of them were overlapping. This 5 dimension include: reliability
(5 items) which is the ability to perform the service in an accurate and in dependable
manner; tangibles (4 items) which refers to the appearance of physical factors such as
equipment, facilities and personnel; empathy (5 items) which involves providing individual
attention and care to customers; responsiveness (4 items) is the willingness to provided help
and prompt service to customers; and assurance (4 items) refers to the knowledge and
courtesy of employees and their ability to convey trust and confidence. Each of the 22 items
above was approached by the same two questions: what an excellent service should provide

and what service was actually provided. Then gap scores based on the difference between
expectation and perception of service delivery will be calculated and analyzed.
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Figure 2.3: SERVQUAL model
(Source: Parasuraman et al, 1985)
Although have been used widely, SERVQUAL model as some problems. Firstly, the
questionare may be repeated in some content as respondents have to answer the same
question in two different criteria: expected service and perceived service. Secondly, many
researcher (Bhat, 2012) point out that measurement of expectation in SERVQUAL is
problematic because expectations are dynamic in nature and they can change according to
customers’ experiences and some specific situations (Yilmaz, 2009); as a result, the gap
calculated later may be not described the real different between expected service and
perceived service. In addition, Babakus and Boller (1992) also figure out that the five
dimensions were not enough and varied depending on the kind of service.
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