Factors influencing customer loyalty of vietjet air join stock company

RESEARCH PROJECT
(BMBR5103)

FACTORS INFLUENCING CUSTOMER
LOYALTY OF VIETJET AIR
JOIN STOCK COMPANY

STUDENT FULL NAME

: MAI DUC LOC

STUDENT ID

: CGS00018509

INTAKE

: SEPTEMBER 2014

ADVISOR’S NAME & TITLE : ASSOC.PROF. PHAN DINH NGUYEN

December 2015


ADVISOR’S ASSESSMENT

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Advisor’s Signature

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PLAGIARISM STATEMENTS

Topic:

FACTORS

INFLUENCING

CUSTOMER

LOYALTY OF VIETJET AIR JOIN STOCK COMPANY,
made by: MAI DUC LOC.
I assured this is my work. The data and results referred

to in the thesis are honest and have never been published in
any other work.

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ACKNOWLEDGE

I respectfully sincere thanks to the school board,
organizations

and

individuals

imparted

knowledge,

discussion, providing the necessary documents, together with
the answers and help me finish this essay.
I especially thank to Assoc. Prof. PHAN DINH
NGUYEN, to guide me patiently to complete the thesis.
Information and advice he is very valuable not only for
research but also for my real life.
And, I am also grateful to all customers, family and
friends who helped me in the past years.
Respect.

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ABSTRACT
Research topic: "FACTORS INFLUENCING CUSTOMER LOYALTY OF
VIETJET AIR JOIN STOCK COMPANY " was conducted from Oct 2015 to
Dec 2015.
Research objective:
 Determine the wishes of customers for airline.
 Building a study model to measure customer loyalty based on understanding
the factors that affect customer loyalty.
 Assess customer loyalty with airline service and product.
 Propose some measures to improve levels of customer satisfaction with
airlineing service and product.
 Research methods: using mainly two methods
 Qualitative research: discussions, interviews, edit scale and model.
 Quantitative research:
- Questionnaire design with content including: 4 scales about customer information,
30 scales about measuring factors affecting customer loyalty, 5 scales to determine the
level of customer loyalty and ultimately customer proposals for the airlne.
- Data collection: primary and secondary.
- Data processing: reliability analysis, factor analysis, Pearson coefficient
analysis, regression analysis, ANOVA analysis, establish general pattern and test
hypotheses.
With samples of 150 questionnaires were selected as evenly distributed as in
HCM city area.
The result is shown in the following regression equation:
CL = 0,405*SQ + 0,433*PR + 0,175*C
Of which:
SQ: Service Quality
PR: Price

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C: Convinience
Limitations of this topic:
 Subjects of study are business customers with its own characteristics on
demand service, criteria for evaluating service quality and perceiving price services
to individual customers, so research results can not response used simultaneously to
all customers
 Research scope limited to customers using the service at Vietjet Air Join
Stock Company, should not be assessed on overall customer groups in different
local and potential customers may not use airline service.
 Study looks at just the time and number of airline customers use, not
understanding customer loyalty in relation to business, financial resources and
ethnic factors.

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CONTENTS
Chapter One - Introduction ....................................................................................... 8
1.Introduction ................................................................................................................ 9
2. Reasons choose topics: ............................................................................................ 10
3. Research objectives ................................................................................................. 10
3.1 Overall objectives.................................................................................................. 10
3.2 Specific objectives ................................................................................................ 10
4. The significance of science and practical subjects.................................................. 11
5. The importance of the research problem................................................................. 11
6. Scope of research .................................................................................................... 11
Chapter Two - Reviewing documents ..................................................................... 12

1. Previous models ...................................................................................................... 13
1.1 Perceived Value .................................................................................................... 16
1.2 Price ....................................................................................................................... 17
1.3 Quality of Service ................................................................................................. 17
1.4 Brand Image: ......................................................................................................... 18
1.5. Belief .................................................................................................................... 19
1.6 Customer satisfaction ............................................................................................ 20
1.7 Customer loyalty ................................................................................................... 21
2. Research model and Hypotheses ............................................................................. 23
Chapter Three - Methodology .................................................................................. 24
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1.

Research Method............................................................................................... 24

2.

Primary data collection ..................................................................................... 25

2.1 Paper survey as the data collection method .......................................................... 25
2.2 Questionnaire design and data collection .............................................................. 25
Chapter Four - Data Analysis .................................................................................. 26
1.

Sample description ............................................................................................ 27

1.1 Servive Quality (SQ) ............................................................................................. 28
1.2 Price (PR) .............................................................................................................. 28

1.3 Brand Image (BI) .................................................................................................. 28
1.4 Percieved Value (PV) ............................................................................................ 29
1.5 Product (P) ............................................................................................................ 29
1.6 Convinience (C) .................................................................................................... 29
2. Quantitative research ............................................................................................... 30
2.1 Target .................................................................................................................... 30
2.2 Procedure ............................................................................................................... 30
2.3 Result ..................................................................................................................... 31
2.4 Reliability and Validity ......................................................................................... 33
a)

Reliability test ................................................................................................ 33

b)

Validity test.................................................................................................... 33

3.

Hypothesis tests................................................................................................. 34

3.1 Multivariable Linear Regression analysis ............................................................. 34
3.2 Path analysis .......................................................................................................... 35
Chapter Five: Results And Disscussion .................................................................. 35
1. Descriptive Analysis ............................................................................................... 36
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1.1 Service Quality Descriptive: ................................................................................. 36
1.2 Price Descriptive ................................................................................................... 36

1.3 Brand Image Descriptive....................................................................................... 38
1.4 Percieved Value Descriptive ................................................................................. 38
1.5 Product Descriptive ............................................................................................... 39
1.6 Convinience Descriptive ....................................................................................... 40
1.7 Customer Loyalty .................................................................................................. 41
2. Analysis Scale ......................................................................................................... 42
2.1 Cronbach's alpha ................................................................................................... 43
2.2 Factor Analysis...................................................................................................... 50
3. General research model ........................................................................................... 64
3.1 Research model ..................................................................................................... 64
3.2 Assumptions .......................................................................................................... 65
4. Testing of the model study ...................................................................................... 65
4.1 Analysis Pearson correlation coefficient............................................................... 65
4.2 Regression Analysis: ............................................................................................. 66
4.3. Anova analysis ..................................................................................................... 70
Chapter Six - Conclusions and Recommendations ................................................ 72
1.

Conclusion ........................................................................................................ 72

2.

Suggestions for Vietjet Air ............................................................................... 72

2.1 Price policy. ........................................................................................................... 73
2.2 Service quality. ...................................................................................................... 74
2.3 Brand Image .......................................................................................................... 74
APPENDIX ................................................................................................................. 77
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CHAPTER ONE - INTRODUCTION
1. Introduction
Vietjet air (Vietjet Aviation Joint Stock Company), operating under the name
VietJet Air, the airline's first privately Vietnam, with headquarters at Tan Son Nhat
International Airport City Ming and branch at Noi Bai International Airport in
Hanoi. June 12, 2013, VietJetAir signed agreements in principle with the
manufacturer Airbus ordered a total of 100 aircraft types for VietJetAir, which has
ordered 62 units, 30 units are entitled to purchase and 8 units rent with time
receiving to 2022 with a total transaction value under the manufacturer's pricing of
about $ 9.1 billion.
VietJet Air was formed from three main shareholders of T & C, Sovico
Holdings and Commercial Airline Joint Housing Development Ho Chi Minh City
(HD Airline), with registered capital of an initial 600 billion (equivalent to 37.5
million at the time of contribution). The airline was the Minister of Finance of
Vietnam approved license in November 2007 and became 4th Airlines Vietnam,
after Vietnam Airlines, Jetstar Pacific and Vietnam Aviation Service Company
(VASCO) and is Private airline's first Vietnam. December 20, 2007, the Minister of
Transport of Vietnam Ho Nghia Dung has awarded a business license for air
transportation VietJet Air.
According to initial plans, estimates VietJet Air officially put into operation
in late 2008, but due to fluctuations in gas prices, rising oil should VietJetAir
decisions postponed and will begin in November 2009 (the fourth quarter)
VietJet Air routes start in the fourth quarter. In late April 2009, Sovico Holdings
has acquired all shares of T & C Group and become the largest shareholder,
owning 70% of shares of VietJetAir. February 2010, the airline Air Asia bought
30% shares of VietJetAir

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2. Reasons choose topics:
Customer loyalty is necessary to maintain regular operations of the airline.
However, in the competition, creating customer loyalty is no assurance that
customers will remain with the airline for long. Relations with customers as a
"living entity", so airlines need attention and care "living entity" is a regular basis.
This means that the responsibility for developing and maintaining relationships with
customers, making customer satisfaction the airlines. Airlines need to be proactive
in maintaining and developing this relationship.
Therefore, study of customer loyalty for airlines is an important job, to
perform regular, continuous to be able to respond promptly to changes in their
needs so that we can able to better serve our customers and make the customers
always satisfied when using the services and products of the airline. The theme
"Research customer loyalty for product businesses, services Vietjet Air Joint Stock
Company" is done for no purpose and the author hopes to get more attention is
contributing to the problem are more complete study.
3. Research objectives
Based on the operations and strategic development of Vietjet Air Joint Stock
Company, research was conducted with the following objectives:
3.1 Overall objectives
The study assessed the loyalty level of business customers for products and
services of Vietjet Air Joint Stock Company from which improvements in product
quality, better service, edge more competitive in the market with the desire to retain
old customers and attract new customers.
3.2 Specific objectives
 Identify the customer's desire for airlines.
 Develop model studies measuring customer satisfaction is based on
understanding the factors that affect customer loyalty.
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 To assess the level of customer loyalty with products and airline services.
 To propose some measures to raise the level of customer loyalty with the
products and airline services.

4. The significance of science and practical subjects
- Research project identified factors affecting the level of customer loyalty in a
complete and accurate. Since then the airline will have the appropriate
improvements to enhance the operational efficiency of the airline and help
customers feel satisfied when looking to the airline.
- The findings served as the basis for the development of products, and new
services that meet customer needs. With the analysis of the factors relating to
loyalty of the customer, the airline will better understand customer needs and
quality of services that airlines offer. Here's how to evaluate objectively and
generalized high performance measure of airlines in the eyes of customers.
- Based on the study of customer loyalty with the services of Vietjet Air Joint
Stock Company in recent years, the author will propose a number of measures to
enhance customer loyalty.

5. The importance of the research problem
The theme is an important resource to help leaders Vietjet Air Joint Stock
Company regional basis to accurately assess the level of loyalty of business
customers for products and services of the airline so that there improvements in the
quality of products and services to serve customers better contribute to improving
the value of the airline, implementing the development strategy of Vietjet Air Joint
Stock Company

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6. Scope of research
- The research will focus on Vienamese passengers who use the services of
VietJetAir. Foreigners may not participate in the survey by the culture and different
levels of awareness.
- All secondary data concerning VietJetAir will be collected from December
2011, the day when the airline started its first flight.
- In this study, the survey will be used and it will be done only in Tan Son
Nhat airport. Because in this field, have thoundsands passenger waiting his flight a
day; so it is easier for authors to collect and examine it does not cost much.

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CHAPTER TWO - REVIEWING DOCUMENTS

1. Previous models
In this section, some models are mentioned as references for the thesis
conceptual framework.
European index of customer satisfaction

Figure 1: The European Model of Customer Satisfaction

This model is one of the famous in Europe. This model, Ball et al. believes
that customer satisfaction is the simultaneous effect of the following factors: image,
perceived value, perceived quality and expectations. He explained that the loyal
customers of a product or a service through indicators of customer satisfaction when
it is directly or indirectly influenced by these factors.
Andreas H. Zins, 2001

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Figure 2: Model impact on customer loyalty in the industry of commercial airlines
in the book of the International Journal of Service Industry Management, Andreas

H. Zins investigate the antecedents of customer loyalty in the industry of
commercial aviation by building a model study of factors directly and indirectly
affects customer loyalty. He will study the image of the service providers is, along
with the quality of service and customer satisfaction, a strong component, illustrated
and explained to loyal customers in the future.
Steven A. Taylor, Kevin Celuch, Stephen Goodwin, (2004)

Figure 3: Model of Steven A. Taylor in the marketing of heavy equipment

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Writing a book on marketing in the industry heavy equipment manufacturer,
Steven A. Taylor and his partners believe the brand values and beliefs are
consistently the most important prerequisite for both forms the behavior and
attitudes of customer loyalty. There is also evidence that the basic models formed
the form of behavior than the attitude of loyalty can vary between studies.
Ahmad Jamal, Kyriaki Anastasiadou (2009)
Parasuraman was a pioneer in researching the quality of service in 1985. The
success of the study make very useful tools to help entrepreneurs achieve results in
quality service through customer research line survey. "SERVQUAL is a compound
word from two words:" service "and" quality. "This model has received much positive
praise from experts. After that, the model has been followed through continuous
optimization focuses on the concept of "perceived quality" of consumers. Quality
perceived by customers as the most objective assessment of the quality of service.

Ahmad Jaman and Kyryaki Anastasiadou develop their research on the impact
of service quality dimensions on customer loyalty based on SERVQUAL model of
Parasuraman. The study published by the European Journal of Marketing in 2009.
The two authors study the direct impact of the experts in loyalty and efficiency of
professional conditioning of the relationship between satisfaction and loyalty.

Figure 4: Model SERVQUAL
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1.1 Perceived Value
Martin Ruiz et al., (2007) stated that "the perception of the buyer on the value
represents a balance between the quality or the benefits that they are aware of the
product compared to the sacrifice that they feel get by paying the price ". Here, the
ratio quality / price approach this as a 'cash value-for-' (Huber et al., 2007) to
understand the value perceived by customers to be preferred over a multidimensional approach. The importance of price factors for assessing the value of a
service is also emphasized by Anderson et al. (1994). Besides the actual monetary
cost, component sacrifice of the perceived value also includes non-monetary costs
such as time or risk. Value perception is very subjective and more personal, and
therefore changes in the consumer (Zeithaml, 1988).
Customers deeming the price paid for a service that determines the level of
quality they can expect (Teboul, 1991 at:.. Park et al, 2006, p 364). Based on a
proposal by Zeithaml that perceived value is personal and idiosyncratic, the level of
quality expected to change among customers. Overall, the ratio quality / price is
reflected by the business model is no different. Low-cost airlines often offer cheap
fares, and focus on their main services for air transport, while operators provide
more network services at a higher price. Value perception has a positive impact on
the brand image, because customers think it is worthy to use the service and they
will make positive remarks about the relationship with certain brands.
Zeithaml and Bitner (1996) describes the value of the service as the key

competitive factor define how services are bought and sold. Value perception was
further suggested that an important prerequisite for the future intentions (Bolton &
Drew, 1991). Blackwell et al. (1999) demonstrated empirically a crucial connection
between value and repeat purchase behavior in pharmaceutical services. Park et al.
(2006) asserts that there is a positive relationship between perceived value and
customer satisfaction, and between perceived value and loyalty in the airline
industry.

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1.2 Price
Price is the cost of money that customers pay to purchase a product or service
(Zeithaml, 1988). It is an important determining factor affecting purchasing decisions
of customers. Prices are generally valued based on customer perception and
awareness is called price. The customer is one of the research that the currency they
accept paying for a product or service is a matter worthy or incorrect. How many
consumers are willing to pay differs due to their different needs and wants (Regina et
al., 2009). Thus, various cognitive prices for basic services on the same personal
perception. Peng and Wang, 2006 said, when customers think that they have to pay
higher prices for a product or service than they received after using the product or
service, it may be negatively impact their purchasing decisions. When consumers
were attracted by a good perceived price, they often intend to buy back the product
(Lichtenstein et al., 1993). It means that the price impact of customer loyalty.
Many researchers have shown that customer satisfaction affects price
perceptions and beliefs (Oliver, 1997; Peng and Wang, 2006;. Cheng et al, 2008;
Kim et al, 2008). Regular customers switch mainly due to some issue price, price
awareness, equal pricing practices or fraud (Peng and Wang, 2006). Therefore, to
increase customer satisfaction, it is essential for service companies to proactively
manage their customers' perceived price, performing an attractive price, offering

price of management, lower prices without reducing quality, etc.

1.3. Quality of Service
The concept of satisfaction and the quality is often equated, although the two
concepts have different understanding (Parasuraman & CTG, 1988). Overall,
satisfaction is considered to have a broader concept of service quality assessment,
with particular focus on the service aspect.
Ostrowski et al. (1993) stated that "It is essential that measures the quality of
customer service oriented, as there may be ideological differences between
management and the expectations of our customers." Moreover, the quality of
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service is considered a performance characteristics and brands are thus part of the
image of the brand's customers. Therefore, the concept of service quality as
perceived by customers as appropriate. Other Previous studies have demonstrated
that service quality is the cause of satisfaction (Cronin & Taylor, 1992). The reason
is related to quality of service delivery, while satisfaction is assessed only after
using the service. If the service was improved but not based on customer demand,
"s, it will never make customers feel satisfied.
Service quality has been identified as a factor of customer satisfaction and
customer choice (Ostrowski et al, 1993;. Taylor & Barker, 1994; Young et al.,
1994). A number of different sizes have been proposed to measure the quality of
services in the context of the airline (Nadiri et al, 2008). Here, according to the
results of an exploratory study conducted by Park et al. (2006) to determine the size
of the air service quality, quality air service consists of three general dimensions:
reliability and customer service, in-flight service, and is convenient and easy
approach. If the trademark is considered airlines offer service to customers,
evaluating the quality of services to promote the positive assessment of the
relationship with the brand. It's also a positive impact on confidence and trust that

customers have in the relationship with the airline brand. Záhořík and Rust, 1992;
Cronin & Taylor, 1992 also confirmed the existence of a positive relationship
between service quality and customer loyalty.

1.4 Brand Image:
Accoring to Barich & Kotler, 1991, the brand image is an overall picture of a
business in the minds of customers. It is created through a process of evaluation and
accumualted information of enterprises such as brand building, product / services
diversification... A picture airlines can be described as Images of passengers that
due to accumulated experience is done through a contact and interactive brand
(Keller, 2003 and Grönroos, 2004).

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Zeithaml & Bitner (1996) and Andreassen & Lindestad (1998) shows pictures
have significant impact on the choice of the client company when the attributes of
the service are difficult to evaluate. Lovelock (1984 in: Andreassen & Lindestad,
1998) has stated that: "the image likely to play only a minor role in deciding the
choice of the customer, unless the service is considered to be close competition as
identical in terms of performance, price and availability. "
Air transport, especially on short haul flights, with the ability to turn into a
fairly generic service. Moreover, the properties of airline services is difficult to
assess before the consumption experience. Photo of an airline is an important factor
that affects the choice of airline passengers. This argument is further supported by
Park et al. (2006), who declared that the purpose of the image of the airline is to
reflect a special competence in comparison with competitors, implying that the
brand stands for distinctiveness and attractiveness for visitors Airlines. A favorable
image can contribute to an airline become the preferred choice of customers
(Andreassen & Lindestad, 1998), so that is one aspect of customer loyalty.

1.5. Belief
Trust is the willingness to rely on brands that customers have confidence.
Beliefs are beliefs, feelings, or the expectation of a "brand of trust (Moorman et al.,
1992). A brand is considered reliable if customers trust the brand" is the the good in
the relationship.
In addition, the reliability of a brand as perceived by the customer to reduce
concerns of opportunistic behavior in case of unexpected events (Bendapudi &
Berry, 1997). If airline customers consider brand's preferred airline they are reliable
and to demonstrate integrity in all situations, they can make decisions faster which
airline to choose from and so That saves time while feeling confident about their
decisions.
Some studies have emphasized the trust as an important platform for market
relationships (Crosby et al, 1990; Parasuraman et al, 1991 at:.. Berry, 1995; Morgan
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& Hunt, 1994). While Chaudhuri and Holbrook (2001) demonstrated that brand
trust is directly related to the purchase and attitudinal loyalty, Hennig-Thurau et al.
(2002) suggest that many recent experimental results (Grayson & Ambler, 1999)
questioned the direct influence of the trust into loyalty. Even if there is no clear
understanding of the relationship between trust and loyalty of customers, Hess and
Story (1995) suggested that any personal relationship, whether individuals or
between a person and a brand, which is built on trust. Trust is particularly important
for the establishment of relationships based on service because the service invisible.

1.6. Customer satisfaction
Satisfaction is a leading factor in determining loyalty (Garbarino & Johnson,
1999; Anderson & Fornell, 1994). The operating principle is to always satisfy our
customers' needs and requirements of customers as a source of revenue and profits

for the company. As of customer satisfaction with the product or service, repurchase
rate from visitors goods is high. Moreover, when customers feel satisfied, they tend
to say is good for other customers.
Customer satisfaction and loyalty is highly relevant. According to Oliver (1999),
customer satisfaction occurs through the use of the product, is a necessary step to
determine loyalty. Kotler (2000) identified that satisfaction is a person "s the feeling of
pleasure or disappointment resulting from comparing a product awareness activities
related to their expectations. That" s means, While the company 's higher performance
than expected, increasing customer satisfaction. However, if the performance is lower
than expected, customer satisfaction fell. They have the same opinion, Karma (2004)
agree that customers will be satisfied when making estimates was more than the target,
whereas dissatisfaction occurs when the satisfaction lower than expected. According
Pail et al. (2009 ), customers who are merely satisfied and they find it easy to change
when other companies are offering a better cost or pack while the importance of
customer satisfaction is emphasized business. Generally, satisfaction related to whether
the service meets the customer 's needs and expectations.
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According to Selnes (1993), an organization can increase their sales and
customer loyalty by providing great satisfaction of the customer. So customer
satisfaction happened is one of the focal points for all businesses especially those in
the service industry. Customer satisfaction is measured to maintain existing
customers and results, efficiency and development of enterprises (Parahoo, 2006).
Benner (2009) also believe that customer satisfaction is one of the important factors
that help increase long-term performance more companies to maintain customer
loyalty. Customer satisfaction is also a fundamental element in improving the
production process and the relationship of the end user.
The main objective of the aviation industry is providing outstanding service and
capacity. Rachel & Andy (2010) believes that excellent service is vital while the

number of customer segments completely satisfied is an important factor as assessed by
some analysts for higher profits. A business organization must regularly assess
consumer satisfaction to analyze and determine whether customers are satisfied or not.
According Torbica & Stroh (2001), especially in the aviation sector, the level of
customer happiness are obviously realized late in the process, while the majority of
customers spent money now. When the research enterprise of the characteristics of a
service or product affect the satisfaction of consumers, their task is to adapt to their
current strategy in a way that can lead to the maximum satisfaction of the consumer.
1.7. Customer loyalty
a) The definition of customer loyalty
Customer loyalty has been widely studied and loyalty concepts have been
presented in many literatures. Some authors have their own definition and
explanation of loyalty.
Dick & Basu, 1994 points out a definition of customer loyalty is the strength
of the relationship between an individual "relative attitude and repeat patronage,
mediated by social norms and situational factors.
Another definition that it frequently appears in marketing literature from
Oliver, 1999: "a deeply held commitment to rebuy or repatronize a product / service
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priorities consistent in the future, thereby causing Same- brand repeated or last
purchased brand set, although situations influence and marketing efforts have the
potential to cause behavioral change ".
b) The impact of customer loyalty to the income of the business.
Customer loyalty is one of the topics of interest in market research. In
particular, the content focuses on the problems that customers are willing to create
and maintain relationships with service providers (Swan, Trawick & Carroll, 1982;
Garfein, 1987; Anderson, 1998; Bolton, 1998).
In business, every company can achieve profitability goals. And the customer is

an important resource to help companies achieve their goals. And some research
suggests that there is a direct relationship between a company 's loyal customers and its
profitability (Reichheld & Sasser, 1990; Roger Hallowell, 1996; Berry, 1995). Some of
authors demonstrate that customer loyalty increases revenue for the company
(Schlesinger & Heskett, 1991; Berry, 1995). The loyalty is done by buying more,
higher prices, and create a reputation the company through word of mouth positively
(Ganesh et al., 2000). These are not just regular customers buy the company 's
products, but also the marketing - the company needs to introduce products or service
for family and friends (Hoffman et al, 1995; Zeithmal et al, 1966). Moreover, a
customer loyalty can help companies reduce costs (Reichheld, 1993; Berry, 1995),
because the cost is less than if the companies provide services and meet customer
loyalty (Reichheld, 1996), and since the cost of sales programs and marketing for
customer loyalty can be extended in stages of the customer life (Clark & Payne, 1994).
Profits from the sales loyalty and establish low-cost, and low cost for brand
recognition. Revenue will grow through acquisitions. Additionally, customers are
willing to pay more because they are familiar with the company's staff and services
"s (Zeithmal et al., 1996). The company ''s profits gained from spending Lower
operating costs while the relationship between client and supplier is actually closed
because customers to easily accept the company 's marketing efforts for the new
product or service. Furthermore, customers Have questions less and easier to
overlook small faults (Zeithmal, 1996).
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Customers often choose to buy a normal product that they feel is best for them
while loyal customers pay more attention to the history, future and the success of the
brands they trust (Reichheld & Sasser, 1990; Clark & Payne, 1994). They are always
ready to express what they think about the service and trust companies will do better
and better. The company will easily get the correct information and the most
comprehensive marketing plan carefully in the future when contact with such clients.

2. Research model and Hypotheses

PRICE
BRAND
IMAGE

PRODUCT
CUSTOMER
LOYALTY

PERCIEVED
VALUE

CONVINIENCE
SERVICE
QUALITY

Figure 5: Research model and Hypotheses

H1: Service Quality has influence on Customer Loyalty
H2: Price has influence on Customer Loyalty
H3: Brand Image has influence on Customer Loyalty
H4: Percieved Value has influence on Customer Loyalty
H5: Product has influence on Customer Loyalty
H6: Convinience has influence on Customer Loyalty
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CHAPTER THREE - METHODOLOGY
1. Research Method

There are two helpful research methodologies: quantitative and qualitative.
Bryman & Bell (2003) pointed out that the connection between theory and research,
epistemological considerations and ontological considerations, quantitative and
qualitative research can be considered as two distinctive clusters of research
strategy. Quantitative data may be stated as the statistical information namely
figures, while qualitative may be explained briefly as the sort of information which
is available as transcript.
Bryman defined qualitative research as the move towards the revision of the
communal across the globe that begins to portray and evaluate the traditions and
invidual activities from the perceptive of those being observed. Saunders et al.
(2007) believed that qualitative research entails the compilation of a mixture of
observed sources such as case studies, individual experiences, reflective
discussions, past interactions and visual presentations that explained the regular and
challenging instants and significance in personal lives. According to Bryman
(2001), qualitative research is a research approach that generally highlights numbers
relatively in the data collation and testing; and the approach that is applied is
inductive and dealt with subjective conclusions.
Quantitative methodology is primarily based on positivist. The function of
quantitative methodology is to found proper link between correlated variables
(Malhotra & Birks, 2007). According to Bryman (2001), quantitative research is
explained as the gathering of statistical numbers in addition to displaying an outlook
of the link involving the concepts and course study as study and it final achieve
intent result.
In this research paper, author had chosen those two methodologies. In there,
quantitative is the main methodology as it targets to determine the relationship
between the identical elements and also to analyse the particular problem. In the
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