Ministry of Education and Training
NATIONAL ECONOMICS UNIVERSITY
NATIONAL ECONOMICS UNIVERSITYNATIONAL ECONOMICS UNIVERSITY
NATIONAL ECONOMICS UNIVERSITY
PHAM VAN TUAN
STUTYing CUSTOMER SATISFACTION’S IMPACT ON
CUSTOMER LOYALTY AND SHIRT REPeating Purchase
OF URBAN CUSTOMERS IN VIET NAM UNDER THE INFLUENCE
OF INVOLVEMENT AND FASHION STYLE
M
MM
MAJOR:
: :
: BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATIONBUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION
(marketing)
(marketing)(marketing)
(marketing)
CODE
CODECODE
CODE:
: :
: 6234
62346234
62340
00
01
11
10
00
02
22
2
SUMMARY OF DOCTORAL THESIS
HA NOI, 2014
THE THESIS IS COMPLETED IN:
NATIONAL ECONOMICS UNIVERSITY
NATIONAL ECONOMICS UNIVERSITY NATIONAL ECONOMICS UNIVERSITY
NATIONAL ECONOMICS UNIVERSITY
Supervisors:
1.
PROF
. TRAN MINH DAO
2. dR. NGUYEN NGOC QUANG
Reviewer 1:
ASS. PROF. NGUYÔN THÞ TUYÕT MAI
Reviewer2:
ASS. PROF. NGUYÔN HOµNG LONG
Reviewer3:
dR. §µO TïNG
The thesis will be protected against National termination Council at
National Economics University in Hanoi
On…….h……date…….month……year 2014
The thesis can be found at
1. National Library
2. National Economics University’s Library
1
CHAPTER 1. INTRODUCTION
1.1. Introduction of thesis
Satisfaction, loyalty and repurchase behavior are among the most basic
concepts, but always appear to be complex and not well understood in
marketing science. Particularly, these concepts will need deeper investigation
and clarification in specific situations and study contexts. This thesis, in
addition to directly reaching those concepts as mentioned above, mainly does
not study the concepts singly, independently and discretely, but focuses on the
impact of satisfaction on loyalty and repurchase behavior.
This relationship is put in the context of Vietnam urban customers and
one typical product of fashionable shirt. Moreover, this research of the
relationship is continuously and deeply discovered under the impact of two
adjustment variables (factors) of involvement and fashion style. That is the
official way in which the thesis will be developed.
1.2. Rationale
Customer loyalty appears to be concerned by many managers as well as
makerters. Frederick J.Reichheld and W. Earl Sasser stated that the
maintenance of high number of loyal customers would make more profit for the
enterprise, including: (1) Profit from high price strategy, (2) Profit from new
customer introduced through Word of Mouth; (3) Profit from marketing and
advertising cost reducing; (4) Profit from increasing product using/purchasing
number and frequency. That’s why in recent decades, there have been a lot of
researchers investigating in both theory and practice to find effective methods
to build and retain customer loyalty.
To make customers satisfied is one of the most important missions that
marketing managers have to do. However, that’s just the first step. The core
thing that firms concern is the satisfaction level that makes customers become
loyal and the loyalty level that makes customers have repurchase behavior.
To discover more deeply the impact of satisfaction on loyalty and
repurchase behavior, the author studies this impact under the moderation of
involvement and fashion style. Despite extensive researches that have built
2
many impact evaluation models of satisfaction on loyalty and repurchase
behavior in the world, it’s totally new in Vietnam, particularly when it is
measured under the moderation of involvement and fashion style. In addition,
when it is done related to fashionable shirt, this is a totally new topic.
With this purpose, the author chose the topic:” Investigating the impact of
satisfaction on loyalty and repurchase behavior for shirt of Vietnamese urban
customers under the impact of involvement and fashion style”.
1.2 Research objectives, questions and missions
1.2.1. Research objectives
This thesis focuses on evaluating, testing the impact of satisfaction on
loyalty and repurchase behavior for shirt of Vietnam urban customers, under the
impact of involvement and fashion style. Based on the results, this thesis gives
some recommendations to enterprises producing and dealing in fashionable
shirts to increase satisfaction, retain loyalty towards repurchase behavior.
1.2.2. Research questions
With these above-mentioned objectives, this thesis follows these
questions:
- How does satisfaction affect the expressions of loyalty and repurchase
behavior?
- Which expression of loyalty (commitment, trust, word of mouth) has the
strongest impact on repurchase behavior?
- Moderating variables: How do involvement and fashion styles affect the
impact of satisfaction on loyalty and repurchase behavior?
1.2.3. Research missions
- Overviewing domestic and international research results about impact of
satisfaction on loyalty and repurchase behavior under the moderation of
involvement and fashion style.
- Building model test and hypotheses
1.3 Research object and scope
- Research object
The impact of Satisfaction on loyalty and repurchase behavior for shirt
under the moderation of involvement and fashion style.
3
- Research scope
Urban Customers in 2 cities: Hanoi (North) and Ho Chi Minh city (South)
1.4. Research methodology
- Secondary data: applying those methods: (1) Collecting statistical and
analytical data; (2) Analyzing and collecting theories; (3) Classifying and
systematizing theories; (4) Modelling; (5) Scientific thinking in interpretation
and inductive perspectives.
- Qualitative data: Manual process (collecting ideas, counting the
frequency of important words, noting important questions, etc.)
- Quantitative data: Dealing by the method of EFA and CFA statistics and
analysis. Using the method of liner structure analysis (SEM) to test the
suitability of the model and hypotheses with SPSS, AMOS version 18.0
software.
1.5. New contributions
- Build the researching model on the impact of satisfaction on loyalty and
repurchase behavior under the moderation of involvement and fashion style, for
shirt in Vietnam
- Discover the impact of satisfaction on loyalty expressions (commitment,
trust, word of mouth) and impact of those expressions on repurchase behavior
- Study deeply two moderating variables: (1) Fashion style for market
segmentation and (2) Involvement to consider its domination over the impact of
satisfaction on loyalty and repurchase behavior
- Especially, investigate involvement in two aspects: Ego involvement
and Purchase involvement.
- Which loyalty expression (commitment, trust, word of mouth) has the
strongest impact on repurchase behavior? Enterprises will focus their marketing
resources on that expression.
- Recommend, add more basis on market segmentation and positioning
for enterprises dealing in shirts stemming from the behavior characteristics of
customer groups with different fashionable styles in the business context of
Vietnam
4
- Recommend suitable strategy orientation and propose suitable
marketing solutions for enterprises dealing in fashionable shirts to increase
satisfaction, maintain loyalty towards repurchase behavior
1.6. Layout
This thesis is divided into 5 chapters with the following contents:
Introduction, thesis overview, research methodology, research result,
conclusion and recommendation with 150 pages including 50 tables and 29
figures
CHAPTER 2: STUDY OVERVIEW
2.1 Theoretical Background and Study Overview
Satisfaction is a multi-dimensional concept and is recognized under
different aspects, including: satisfaction with the product itself, satisfaction with
the sales process and satisfaction with after sales service.
Brown (1992), Jamal and Kamal (2002) [69], (Oliver, 1996 [102];
E.W.Anderson, Fornell &Lehmann, 1994 [48]; E.W.Anderson & Mittal 2000
[44]) all had a conclusion: Customer satisfaction is an emotional status in which
customer demand, expectation and hope about product values/benefits are lower,
higher or equal to customer expectation. Satisfaction is indicated to be the
antecedent of loyalty and repurchase behavior for the company’s product.
2.1.2 Loyalty
2.1.2.1 Theory and model
Satisfaction is a multi-dimensional concept with different and complex
expressions. The concept of satisfaction has been defined differently by
researchers (Gretty and Thompson, [1994], Dick and Basu (1990), etc.) Overall,
according to them, brand loyalty is a deep commitment leading to stable
repurchase behavior for n interested service/product in the future despite
different situation factors, such as marketing activities.
Common models
Common models relating to satisfaction includes: model of Gounaris and
Stathakopoulos (2004) [56], model of Ki-Joon Back and Sara C.Parks [73]
5
which argued that customers had attitudinal loyalty first, then emotional loyalty,
intention and behavioral loyalty.
A number of researchers (Raruyen and Miller, 2007 [127]; Dick & Basu,
1994 [40]) accessed customer loyalty with concepts of Behavioral loyalty,
Attitudinal loyalty and composite loyalty.
2.1.2.2 Loyalty expressions
Commitment
Some ideas on commitment are given by a number of researchers
(Morgan & Hunt, 1994; Miller (2007), Abdelmajid Amine (1998), Burmkrant
and Unnava (2000)). Accordingly, commitment could be identified as a
motivation to stay with a partner and willing to lose an amount of profit. The
above-mentioned researchers all believed that commitment was an aspect of
loyalty
Trust
Trust is considered to be one of the critical factors for a successful
relationship between parties and an expression of loyalty. Chaudhuri and
Holbrook (2001) 31], Rauyreuen (2007) [127] defined trust as the trust in a
party’s word or promise and that the party will fulfill his or her obligation in an
exchange relationship.
Word of month
Word of mouth (WOM) refers to passing information orally about
consumer personal experiences with a product or service from individual to
individual. WOM plays an important part in shaping consumers’ behaviors and
attitude, and forming loyalty. Butcher et al. (2001) indicated four variations of
customer advocacy concept: Providing positive word-of-mouth, recommending
the product/service to others, encouraging others to use the project, defending
the product provider’s virtues
2.1.3 Repurchase behavior
Some researchers assert that repurchase behavior is an expression of
loyalty (behavioral loyalty). However, in this thesis, the author will investigate
repurchase behavior as a specific concept led from loyalty.
6
2.2 Impact of satisfaction on loyalty and repurchase behavior
2.2.1. Impact of satisfaction on loyalty
Ruben Chumpitaz Caceres and Nicholas G. Paparoidamis (European
Marketing Magazine, No. 41, 2007) [116] testing the impact of satisfaction on
commitment and loyalty stated that: Higher customer satisfaction level for a
product/servicewould generate higher commitment and trust level for that
product/service. Morgan and Hunt (1994) [94], Leon G.Schiffma, Leslie Lazar
Kanuh & Joseph [135], Gour C.Saha and Theingi [57] shared the same opinion.
Overall, in the context of shirt consumption, this thesis assumes that
satisfaction positively affects WOM, commitment and trust
2.2.2. Impact of loyalty on repurchase behavior
This thesis discovers loyalty and repurchase behavior as two specific
concepts with 5 reasons: Customer attitude, customer inertia, demand change,
multibrand loyalty and situational society factor
Based on studies of Beth Davis-Sramek, John T.Mentzer and Theodore
P.Stank [24] of Lousville and Tennessee University, US (operational
management magazine, No. 26-2008; Wetzels et al (1998) [133]; Norizan
Kassim and Nor Asiah Abdullah [99], the author indicated that: loyalty
expressions including commitment, trust, wom affect repurchase behavior.
2.2.3. Impact of satisfaction on repurchase behavior
In 1969, Howard & Sheth [67], Taylor and Baker (1994) [130]; Olsen
(2002) [117] argued that satisfaction had an impact on repurchase behavior
although these were not enough consistent evidences about this.
2.3. Fashion market and the impact of satisfaction on loyalty and
repurchase behavior under the influence of fashion style
2.3.1. Fashion, fashion market in Vietnam
In this part, the author describes the fashion market in Vietnam. Fashion
style has strong influence on customer behavior so the author chose the shirt
market to conduct research in Vietnam.
2.3.2. Impact of satisfaction on loyalty and repurchase behavior under the
impact of fashion style
Fashion style
7
Fashion style is used as a criterion on customer segmentation in many
previous studies such as studies of Shim and Bickle (1994) [123]; Sofiah Abd
Rahman; Abdul Rahman Abdul Rahim, 2006 [126], etc.
The author has successfully applied the research work of Rafaeli, Dutton,
Harquail and Mackie-Lewis- 1997. Accordingly, the thesis will study the
impact of satisfaction on loyalty and repurchase behavior of 4 groups of
customers: Customer group choosing their clothes based on their individual
perspective on job title; Customer group whose emotion determines their
decisions on clothes choosing; Customer group using clothes as a tool to build
social relations and other customers group.
Accordingly: The impact of satisfaction on loyalty and repurchase
behavior will be different among customer groups with different fashion styles.
2.4. Impact of satisfaction on loyalty and repurchase behavior under the
impact of involvement
2.4.1. Opinions on involvement
The term “involvement” is translated into Vietnamese as the following
concepts: “sự tham gia”, “sự lôi cuốn”, “sự can dự”, “sự dính líu”, etc. In this
thesis, the author will use the expression “sự dính líu” to ensure the suitability
with the research object of the thesis.
Almost all of previous studies consider involvement as a multi-
dimensional construct. Some first researchers in this field are Lastovicka and
Gardner (1979) [84], Traylor and Joseph (1984) [132], (Rothschild, 1979)
[115], Hupfer và Gardner, 1971 [68]; Manuel (2009) divided involvement into
two types: ego involvement (long-term) and purchase involvement (situational).
Accordingly, ego involvement is customer individual impact due to
individual experience, familiarity and professional towards the purchase and
consumption of products/services obtained from time to time. Purchase
involvement is a situational involvement attached with environmental stimulus
during the process of approving customer purchase decisions. There are many
different attitudes on explaining the nature and structure of involvement, in this
thesis, the author agrees with the structure of involvement proposed by
researcher Manuel (2009), which means that involvement includes: ego
8
involvement and purchase involvement. At the same time, the author will use
involvement as a moderating variable in the impact of satisfaction on loyalty
and repurchase behavior.
From that, the study assumes: Ego involvement and purchase
involvement affect the impact of satisfaction on loyalty (commitment, trust,
word of mouth) and repurchase behavior.
2.5. Model and research hypotheses
2.5.1. Model
From overall research, the author proposes the research model presented in the
thesis as follows:
Figure 2.12. Research model
H9a
H9b
H13a
H13b
H14a
H14b
H10a
H10b
H8a
H8b
H2
H3
H1
H12a
H12b
H11a
H11b
H5
H7
H4
H6
Commitment (2a)
Trust (2b)
Word of mouth
(2c)
Loyalty (2)
Involvement
(ego and
purchase) and
fashion style (4)
Repurchase behavior
(3)
Satisfaction (1)
Involvement
(ego and
purchase) and
fashion style (4)
9
2.5.2. Research hypotheses
The research model has the variables considered under different impacts:
In studying the impact of satisfaction on loyalty:
- Independent variable: satisfaction
- Dependent variables: commitment, trust, word of mouth
In studying the impact of loyalty on repurchase behavior:
- Independent variables: commitment, trust, word of mouth
- Dependent variable: repurchase behavior
In studying the impact of satisfaction on repurchase behavior:
- Independent variable: satisfaction
- Dependent variable: repurchase behavior
• Moderating variables
1. Ego involvement
2. Purchase involvement
3. Fashion style
Hypothesis groups
Hypothesis group studying the impact of satisfaction on loyalty and
repurchase behavior from H1 to H7
Hypothesis group related to the moderating variable of involvement
from H8 to H14
Hypothesis group related to the moderating variable of fashion style: H15
CHAPTER 3: RESEARCH METHODOLOGY
3.1. Overview of research methodology and process
3.1.1. Data collection and analysis
• Secondary data collection and analysis
Collecting, analyzing, comparing and evaluating some studies on the
impact of satisfaction on loyalty and repurchase behavior under the impact of
moderating variables of involvement and fashion style of customers from
available domestic and international sources on the contents related to the
research.
• Qualitative method (in-depth interview)
10
Interviewing marketing experts and fashion experts in Vietnam to
preliminarily evaluate and adjust the scales used for research in the thesis.
• Quantitative method
Collecting primary data, analyzing primary data by SPSS software,
analyzing EFA exploration factor. Continuing using AMOS 18.0 software to
analyze CFA confirmation factor to test the model and test the research
hypotheses.
3.1.2. Research process
To ensure the implementation of research objectives, the thesis will be
developed and deployed under the following research process:
Figure 3.1: Research process
3.1.3. Research plan
From the above mentioned research process, the research plan will be
implemented following an order of time and represented in the following table:
Theoretical
background
Final research N=
1000
EFA
Cronbach’s Alpha
Quantitative
preliminary research
N = 200
Amendment,
supplement
In-depth interviews
with experts, focus
group
CFA
SEM
Drafting
scale 1
Final scale
Drafting
scale 2
Removing observation
variables with small
Alpha coefficient and
relation coefficent
Removing observation
variables with small EFA.
Checking extracted
variance
Removing variables with small
CFA; Checking the suitability of
the model; Calculating the
general reliability coefficient,
Calculating
extracted variance
Checking the suitability of the
model. Testing the hypotheses
11
Table 3.1: Research plan
Research Method Technique Time Location
Preliminary Qualitative In-depth
interview with
experts
Focus group
01/11-
15/11/2013
Hanoi
Quantitative
(N=200)
Direct
interview
11-12/2013
Hanoi
Final Quantitative
(N=1000)
Direct
interview 01/2014
Hanoi, Ho
Chi Minh
City
According to the plan, quantitative research will be organized in the 2
biggest cities in Vietnam: Hanoi and Ho Chi Minh City. To ensure the fairness
and objectiveness of the research, the author will conduct the research with the
similar number of samples in two cities. The interviews are also organized in
some areas with many urban citizens with the total of 29 urban districts of two
cities. For each district, the author lists the areas suitable for the criteria on
selecting research samples of the thesis.
3.2. Designing preliminary research and developing scale
3.2.1. Qualitative preliminary research
Qualitative preliminary research is to supplement and amend observation
variables used to measure the research concepts used in the theoretical model
suitable for the context of Vietnamese market.
For the scale of involvement, the results of interviewing experts add two
more observation variables into the original scale. Specifically, they are SDL_4
(The brand of my shirt helps to show my job position) and SDL_5 (I choose
shirt brands which can help me build and maintain my own image). When
developing the scale on ego involvement, the researchers state that in
Vietnamese market in particular, with the characteristic of formality respect,
with clear division among different job positions, fashionable shirts used in the
workplace can help their owners represent their job positions as well as their
12
image. Besides, Vietnamese people always pay much attention to clothes at the
first meeting to create good impression for partners.
The experts also agree with the decision of applying the research work of
the postgraduates including professionals and students in Michigan and
Virginia university in US ((Rafaeli, Dutton, Harquail. and Mackie-Lewis- 1997)
[111]) on the behavior of consuming and choosing business attire. Accordingly,
the thesis will study 3 customer groups with different fashion styles at
Vietnamese market, as well as add 01 selection option as “other customers
group” to ensure the tightness of the answers.
In addition to interviewing the experts, the author also interviewing focus
groups to adjust the language used in observation variables suitable and well
understood for interviewees.
3.2.2. Quantitative preliminary research
Quantitative preliminary research was implemented from November 20,
2013 to December 8, 2013 in Hanoi by the method of convenience sampling.
(N=146)
As mentioned in chapter 2, there are 6 concepts studied in this thesis
including: (1) satisfaction or STM with the measurement criteria from STM_1
to STM_8, (2) commitment or CK with the measurement criteria from CK_1 to
CK_14, (3) Trust or TT with the measurement criteria from TT_1 to TT_4, (4)
Work of mouth or TM with the measurement criteria from TM_1 to TM_4, (5)
Repurchase behavior or MLL with the measurement criteria from MLL_1 to
MLL_7, (6) Involvement or SDL with the measurement criteria from SDL_1 to
SDL_11.
The following table summarizes the steps on developing and evaluating
the scales of the final research model. When evaluating the scales, the author
uses the standards of Hair and ctg. Accordingly, the scales are considered to be
fully reliable when Cronbach Alpha coefficient reaches ≥0.6 and extracted
variance is more than 50%, and the Factor Loading must be more than 0.3.
13
Table 3.2: Summarizing the results on preliminarily developing and
evaluating the scales
Scale Criteria 1
st
evaluation result
2
nd
evaluation result
(after removing
some observation
variables)
Satisfaction
(STM)
Extracted variance 27.745% 50.993%
Cronbach’s Alpha: 0.532 0.609
Conclusion Recommending
removing the following
observation variables:
STM_3; STM_4;
STM_6
Pass
Commitment
(CK)
Extracted variance 27.073% 44.607%
Cronbach’s Alpha: 0.664 0.786
Conclusion Recommending
removing the following
observation variables:
CK_3, CK_4, CK_5,
CK_7, CK_9, CK_11,
CK12
Put into official
research
Trust (TT) Extracted variance 41.638% 52.127 %
Cronbach’s Alpha: 0.483 0.529
Conclusion Recommending
removing the following
observation variables:
TT_1
Put into official
research
Word of
mouth (TM)
Extracted variance 57.021%
Cronbach’s Alpha: 0.622
Conclusion Put into official research
Ego
involvement
(SDL)
Extracted variance 38.296 % 45.949
Cronbach’s Alpha: 0.591 0.605
Conclusion Recommending
removing the following
Put into official
research
14
Scale Criteria 1
st
evaluation result
2
nd
evaluation result
(after removing
some observation
variables)
observation variables:
SDL_ 5
Purchase
involvement
(SDL)
Extracted variance 35.866 48.391
Cronbach’s Alpha: 0.601 0.629
Conclusion Recommending
removing the following
observation variables:
SDL_ 9
Put into official
research
Repurchase
behavior
(MLL)
Extracted variance 0.772
Cronbach’s Alpha: 42.638%
Conclusion Put into official research
3.3. Official research
After implementing quantitative preliminary research, building and
evaluating the scales, the author will implement official quantitative research
with full sacles built at the previous step.
3.3.1. Sampling method
Research object: all Vietnamese consumers over 18 years old; living and
working in Hanoi and Ho Chi Minh City;
There are many different attitudes on identifying sample size. However,
the thesis uses the principle of Hair and ctg [6] which asserts that each
measurement variable needs at least 5 observations. The thesis uses the method
of factor analysis together with linear regression, the research model has 31
measurement variables. Therefore, the minimum sample size is 155 elements.
The identification of sample size depends on research scope (Hanoi with 10
districts and Ho Chi Minh City with 19 districts); Population rate over 18 years
old in the whole research; Population rate of district to be surveyed as compared
to those of 29 districts to be studied.
Therefore, the sample size is identified to include 1000 elements, the
15
sample scope for research is 7 times bigger than the required sample size as
mentioned above. The author hopes that this will be an optimal sample scope to
obtain a relatively accurate description.
3.3.2 Describing research sample
Table 3.26: Describing research sample (N=615)
Characteristics Frequency/Number
Rate (%)
Sex
Male 296 48,1
Female 319 51.9
Region
South 221 36
North 394 64
Age
<=23 192 31.2
24-30 210 34.1
31- 45 183 29.8
> 45 30 4.9
Qualification
High school 151 24.6
Post graduate 337 54.8
Under graduate 70 11.4
Others 57 9.3
Current
main job
Operational and
administrational field
74 12.0
Student 248 40.3
Enterprise 206 33.5
Self-employment 56 9.1
Others 31 5.0
Job position
Employee 366 59.5
Head manager 143 23.3
Department director 39 6.3
Others 67 10.9
CHAPTER 4: RESEARCH RESULTS
4.1 Testing the scales by the method of confirming factor analysis (CFA)
4.1.1. Testing standards following CFA method
The standards used to check the suitability of the model: CMIN/df <5
(Kettinger and Lee 1995[81]); GFI, TLI, CFI ≥ 0.9 (Bentler & Bonett,
16
1990)[23]; RMSEA ≤ 0.08. The standards evaluate the suitability of the model
based on the aspects of content value including: The credibility of the scales;
Being unidirectional/monad; Converge value; Difference value.
4.1.2. CFA testing results
Scale
Testing criteria
Chi-square/df
GFI TLI CFI RMSEA
Loyalty 4.523 0.931 0.944 0.95 0.076
Repurchase behavior 3.988 0.901 0.923 0.935 0.070
Satisfaction 4.052 0.91 0.928 0.94 0.071
The indicators at the above mentioned table all show that the scales are
suitable with market data. However, the observation variables MLL_4, MLL_5,
MLL_6, MLL_7 are all negative and lower than 0.5. Therefore, those
observation variables will be removed from the research model to ensure the
coverage value of the scales as well as of the research model.
The following table 4.1 will summarize the results on retesting the
general reliability coefficient and extracted variance of each scale after
removing those observation variables of MLL scale.
Table 4.1: Summarizing reliability and total extracted variance
No.
Scale
Number of
observation
variables
General
reliability
coefficient
of
Cronbach
Alpha)
Total
extracted
variance
Conclusion
1 Commitment (CK) 7 0.897 62.52%
All scales
are
reliable.
2 Trust (TT) 3 0.904 84%
3 Word of mouth (TM) 4 0.852 69.37%
4 Satisfaction (STM) 5 0.805 56.42%
5
Repurchase behavior
(MLL)
3
0.81 72.51%
6 Ego involvement (EGO) 4 0.832 66.71%
7
Purchase involvement
(PUR)
5
0.802 56.63%
17
4.2. Testing research model and hypotheses
4.2.1. Testing research model
Figure 4.5. Analysis results (SEM) of research model (without the impact
of moderating variables)
The research model has the following coefficients Chi-square/df= 3.746;
GFI= 0.900; TLI= 0.923; CFI= 0.934; RMSEA= 0.067, showing that the model
is suitable for market data. The result on model analysis will be represented in
details in the following table 4.3:
Table 4.3: The result of model testing without the impact
of moderating variables
Estimation
coefficient
S.E. C.R. P
CK < STM 1.196 .081 14.706 ***
TT < STM 1.043 .077 13.490 ***
TM < STM 1.390 .094 14.843 ***
MLL < TT .170 .039 20.853 ***
MLL < TM .360 .037 16.984 ***
MLL < CK .240 .039 19.383 ***
MLL < STM .330 .038 17.572 ***
18
In the table: Estimate: average estimated value; SE: standard error, CR:
critical value; P: value level, ***: p < 0.001.
4.2.2. Testing hypotheses
4.2.2.1. Testing H1 to H7
With P ≤ 0.05, the impact weighting has statistical meaning. In fact, the
estimation result shown in Table 4.3 represents that **** or P<0.0001 and
positive weighting. Satisfaction has positive effect to engage, trust, word of
mouth and repurchase behavior at the same time engage, trust, word of mouth
has effect on repurchase behavior.
The model test results in table 4.3 show that: (1) satisfaction has positive
effect on engagement, trust, word of mouth of customer with brand 1.196;
1.043; 1.309 respectively. (2) Engagement, trust, word of mouth have effect on
repurchase behavior 0.240; 0.170; 0.36 respectively; (3) satisfaction has effect
on repurchase behavior of the brand: 0.33. As a result, hypotheses from H1 to
H7 in the situation of ready-made shirt are accepted.
4.1.1.1 Testing H8 to H14
H8 to H14 defines effect of ego involvement and involvement from buying
process on satisfaction, loyalty and repurchase behavior. This research use
regression techniques of SPSS 18.0
Table 4.4: Regression result to test H8a, H9a, H10a
Model
Commitment (CK) Trust (TT) Word of mouth (TM)
Regression weighting
P value
Regression weighting
P value
Regression weighting
P
value
Unstan
dardize
d
Differen
t from
standard
Standardiz
ed
Unstandardi
zed
Different
from
standard
Standardiz
ed
Unstanda
rdized
Differe
nt from
standar
d
Standardiz
ed
Constant 1.048 .127 .000 2.625 .149 .000 .243 .144 .001
Satisfacti
on
.565 .027 .627 .000 .310 .041 .330 .000 .614 .031 .603 .000
STM*E
GO
.035 .006 .166 .000 .023 .010 .100 .023 .048 .007 .201 .000
VIF 1.081 1.388 1.081
R
2
0.476 0.151 0.469
Dependent variables: Commitment/Trust/Word of mouth (respectively)
The table above is summarized from Appendix 4.19 – 4.21 in Appendix 4
The relationship between satisfaction and ego involvement has statistical
meaning (P < 0,05). This result shows that H1 is accepted, Ho is rejected or
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H8a, H9a, H10a are accepted: ego involvement enhances effect of satisfaction
on engagement, trust and word of mouth.
Continued hypotheses are tested in similar way. The result, the thesis has
some conclusions: involvement from buying process make the effect of
satisfaction on engagement, trust and word of mouth: individual engagement
enhance the effect of engagement, trust and word of mouth on repurchase
behavior; involvement of buying process make effect of engagement, trust and
word of mouth on repurchase behavior; individual engagement enhance the
effect of satisfaction on repurchase behavior; involvement from buying process
enhance the effect of satisfaction on repurchase behavior. That the result, all the
hypotheses from H8 to H14 are accepted.
4.2.2.3. Analysis
Analysis in terms of sexes
Table 4.10 shows that chosen model has differences between male and
female in assessing the effect of satisfaction on loyalty and repurchase behavior
with ready made Shirt.
Table 4.10 Differences between criteria in the model
Compared model χ2 df p GFI TLI CFI RMSEA
Variable model 195.222 83 0.000 0.864 0.956 0.967 0.047
Invariable model 194.143 80 0.000 0.946 0.953 0.966 0.9048
Difference 1.079 3 0.00 0.082 0.003 0.001 0.001
χ2: chi-square, df: number of freedom levels, p: meaning level
Analysis multi group structure in terms of living places
Similarly, the result shows the difference between suitable criteria
between variable model and invariable model is statistical meaning (p < 0.05).
For this reason, variable model is chosen coming to conclusion that there is
difference between customer living in northern cities and southern cities of
Vietnam in assessing the effect of satisfaction on loyalty and repurchase
behavior when buying ready made shirt.
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4.2.2.4 Testing H15
Table 4.12 the number of respondents who choose difference fashion style
Description N
Group 1
People who choose shirt based on perception of job
position
209
Group 2
People who affected by emotional element when
choosing shirt
255
Group 3
People who take shirt as a means of building social
relationship
49
Group 4 Others 102
The research has analyzed multi group to test level of effect of satisfaction on
loyalty and repurchase behavior in 4 group of people who have different style.
The result in following table.
Table 4.13 Differences of variable and invariable model
Chi-square df
Variable model 331.24 156
Invariable model 375.80 169
Difference 44.56 13
Chidist(44.56,13)= 0.000
As the result shows, H5 is accepted: “Impact of satisfaction on loyalty and
repurchase behavior among groups of people who have different fashion style”
4.2.3. Testing the difference between average value of latent variable in terms
of group of customers who have different fashion style
The result shows that: there is different in sample average between groups
of people who have different fashion styles
4.2.4. Testing the different of average value of latent variables in the model in
terms of sexes and living place of customer in the North and the South of
Vietnam
Group 1. People who choose fashion based on individual perception
of job position
In terms of sexes
Differences between male and female choosing clothes based on job
position happen with some latent variable, however, it is relatively small due to
21
the maximum average value is d = 0.438
In terms of geographical area where customers are living (the North
and the South of Vietnam)
The difference in terms of geographical area of customers in group 1 who
choose clothes based on perception on job position appear in all latent variables
which is relatively clear because the minimum average value is d = 0.449,
maximum is d = 0.819
Group 2: People who affected by emotional element when choosing shirt
In terms of sexes
The testing result on average value of two independent samples
(Independent-sample T-test) (descriptive statistical analysis) is two customer
categories of male and female [appendix 4.38] of the 2
nd
customer group
showing that there is not any difference on value among the scales of
Commitment (CK), Trust (TT), Word of Mouth (TM), Satisfaction (STM) and
Repurchase behavior (MLL).
In terms of geographical area where customers are living (the North
and the South of Vietnam)
The testing result on average value of two independent samples
(Independent-sample T-test) (descriptive statistical analysis) is two customer
categories in Hanoi and Ho Chi Minh City [appendix 4.39] of the 2
nd
customer
group showing that there is difference on value among the four scales of
Commitment (CK), Trust (TT), Word of Mouth (TM), Satisfaction (STM) with
average difference of d=0.746, d=0.815, d=0.694, d=0.657 respectively.
CHAPTER 5: CONCLUSION, RECOMMENDATION AND
LIMITATION OF THE STUDY
5.1 Conclusion
Based on the result of the study, we have the main findings:
(1) Satisfaction have the positive impact on the expressions of loyalty;
(2) Expressions of loyalty have the positive impact on repurchasing; (3)
Satisfaction have positive impact on repurchasing; (5) Impact of the
relationship of satisfaction, loyalty and repurchase behavior different among
different fashion lifestyle groups.
22
5.2 Recommendation
5.2.1 Strategy:
Result of the study give us some recommendation about strategy for
garment Company in Vietnam:
- Loyalty and repurchase behavior are asset of company
- Segmentation, positioning based on fashion lifestyle. Specially focus
on the segment of “people choose clothes based on job position”. The result
also suggest company build up the marketing strategy for the urban residence
should consider the geographic area (the north and the south)
- Result of the study also suggests to marketing manager should pay
attention on the level impact to the behavior that company expected. Marketing
activity should focus the most on worth of mouth buzz, the secondly in
commitment of customer and the trust shows the less impact than others. The
involvement shows the quite important role in customer relationship.
- Segmentation and marketing strategy for each fashion lifestyle
segments. Result of the study shows that if company want to serve fashion
lifestyle segments, they should have different marketing plan for each of them.
For example:
+ Group 1: Choose based on job position
+ Group 2: Choose based on emotional
+ Group 3: Choose based on social status
+ Group 4: others
5.2.2 Solutions
First of all, to ensure the satisfaction, loyalty of customer with brand,
company should do the marketing research periodic to know the situation of
company, competitors, catch new trend and also new demand of customer.
Secondly, to improve the trust of customer, company have to improve the
quality and service.
Worth of mouth is the strongest impact on customer behavior and create
the loyalty and repurchase behavior. Company should:
- Worth of mouth through direct sales
- Communication through mass media: Advertising, PR, event, fair…
- Interactive media: Direct marketing such as Life and Fashion on
VTV3…
- Controlling the buzz and oriented public information.
23
1/ Carefully in pressing public information. Create social event such as
washing event, advice customer in washing, using clothes…
2/ Differentiate position to creating the positive worth of mouth. Be
sensitive on new trend in Vietnam, especial on group choose clothes based on
job position and emotional.
3/ Focus on staff training about product, carefully in recruitments especial
for sales force. If customer does not satisfy with the sales person, company will
face with the risk of losing customer and further, they will spread the negative
worth of mouth to others.
4/ Build up the system to control and evaluate the buzz. For example:
regularly check out the information and immediately have the solution for it.
5/ Build up system based on team work, educate the knowledge and
improve the skills. Set up the CRM tools for control information better.
Attention in handling the complaint.
Company should find the solution to improve the involvement by
improving the stick between brand and the motivation of customer. To do this,
company should:
1/ Build the brand advantage by create point of different, unique
positioning to reduce the impact of competitive and consolidation the
involvement of customer.
2/ Secure the brand: Register the brand identity in law and protect the
brand image of customer.
5.3 Limitation and suggestion for next study:
First of all, this thesis just choose sample in 2 main cities: Hanoi (the north)
and Ho Chi Minh city (the south) so the representative of result is not so high.
Secondly, this studies just using 3 expressions of loyalty (commitment,
trust, word of mouth). If we have more resource to give more expressions, the
result could be more reliable and have more interesting findings.
Thirdly, artist just considers “word of mouth” is positive and the
satisfaction is the general. The negative word of mouth and the spread
satisfaction have been not shown on this study.
Fourthly, I just choose 2 moderator variables: fashion lifestyle and
involvement. It will be more useful if the artist survey more impact of others
variables. This is the suggestion for next study.
24
CONCLUSION
Result of the thesis:
• Overview the previous studies, systematized the basic theoretical about
the main concepts of marketing: satisfaction, loyalty, repurchase behavior and
the impact between them, detect gaps need further study in order to build the
foundation for the research model in this thesis.
• The thesis uses structural equation balance (SEM) to test the research
model, check the suitable of the model to the market, evaluate the credibility
and value of differentiated, value convergence of scales, testing the hypothesis.
• Describe the level of impact (strong, weak) from satisfaction to
expressions of loyalty and repurchase behavior of customers.
• Analyze and evaluate the specific impact of the moderator, the fashion
lifestyle and involvement in relation to each pair.
• Provide some hints about the strategic direction and marketing
solutions for business firms shirt fashion apparel available to enhance loyalty
and motivate them towards repurchase behavior.
New contributions on the theoretical level
• The thesis explored in depth the impact of satisfaction to loyalty and
repurchase behavior. While previous research usually only refers to the
influence of factors unique to each site or just stop talking on the couple
relationship.
• An in-depth study of the impact satisfies the specific expression of
loyalty and the expression of loyalty to repurchase behavior.
• Research 02 moderator variables: involvement (ego involvement and
purchase involvement) and fashion lifestyle.
New contributions on the practical level
• Proposal for the fashion apparel business marketing resource allocation
to enhance loyalty and promote repurchase behavior.
• The thesis also recommends, additional on the criteria of segmentation
and market positioning for the business enterprise clothes comes from the study
of behavioral characteristics of the customer group row with different fashion
lifestyles.
• The thesis also provides recommendations and strategic directions
proposed marketing solutions suitable for businesses clothes fashion towards
enhancing satisfaction, loyalty and promote repurchase behavior of customers.
THE WORKS OF THE AUTHOR HAVE BEEN
PUBLISHED RELATED TO THE THESIS
1. Pham Van Tuan &Nguyen Dinh Toan (2014), “Mối quan hệ giữa sự
thoả mãn, lòng trung thành và hành vi mua lặp lại đối với sản phẩm áo sơ mi
may sẵn”, Economics and Development Journal, No. 2000, February,
National Economics University Publisher.
2. Pham Van Tuan và Tran Minh Đao (2014), “Mối quan hệ giữa sự thoả
mãn, lòng trung thành và hành vi mua lặp lại dưới sự ảnh hưởng của phong cách
thời trang tại Việt Nam”, International Scientific Conference: Những vấn đề về
quản lý Kinh tế và Quản trị kinh doanh hiện đại, No.647-2014 CXB/03-TK,
Statistics Publisher.
3. Pham Van Tuan (2014), “Lý thuyết lòng trung thành và thực tiễn mối
quan hệ giữa các biểu hiện của lòng trung thành (cam kết, tin tưởng và truyền
miệng) với sự thoả mãn và hành vi mua lặp lại”, Economics Managemet
Journal, June, 2014,Institute of Economic Management Central - Ministry of
Planning and Investment Publisher.
4. Pham Van Tuan (2014), “Sự dính líu từ quá trình mua của khách hàng”,
Industry and Trade Journal, No.11, June, 2014, Ministry of Industry and Trade.
5. Pham Van Tuan, Nguyen Ngoc Quang & Vu Xuan Truong (2014),
“Nghiên cứu ảnh hưởng của dính líu cá nhân trong tác động của sự thỏa mãn
đến lòng trung thành và hành vi mua lặp lại: Ứng dụng trong xây dựng chiến
lược marketing cho các doanh nghiệp nhỏ và siêu nhỏ tại Việt Nam”, National
scientific conference:Relationship marketing of micro and small enterprises in
Vietnam, National Economics University Publisher.
6. Pham Van Tuan and Pham Thi Giang (2014), “Relationship between
satisfaction, loyalty and repurchase behavior of consumer under the impact of
fashion style for shirt product market in Vietnam”, The 4
rd
Khon Kaen
University National and International Conference, June 11 – 13, 2014, Khon
Kaen University, Thai Lan.