Research about satisfaction level of customers when using electronic procurement service at cho lon supermarket, district 5, ho chi minh city

OUM
OPEN MALAYSIA UNIVERSITY

RESEARCH PROJECT
(BMBR5103)

RESEARCH ABOUT SATISFACTION
LEVEL OF CUSTOMERS WHEN USING
ELECTRONIC PROCUREMENT SERVICE
AT CHO LON SUPERMARKET, DISTRICT
5, HO CHI MINH CITY

STUDENT FULL NAME

: NGUYEN THE VIEN

STUDENT ID

: CGS00064976

INTAKE

: MAY, 2017

ADVISOR'S NAME AND TITLE

: DR. BUI PHI HUNG

July, 2017

ADDENDUM
Table 3.1: Question
Table 3.2: Quality scale
Table 3.3: Satisfaction scale
Table 4.1: Characteristics of survey samples
Table 4.2: Cronbach's alpha of research concepts
Table 4.3: Test of KMO scale of SHL impact components
Table 4.5: Summary of the EFA analysis of the customer's satisfaction scale


Nguyen The Vien

ID No: CGS00064976

CHAPTER I: INTRODUCTION
1.1. Research aim:
Survey '' What Factors affect to customer's satisfaction when using electronic equipment
procurement services at Cho Lon Supermarket, District 5, Ho Chi Minh City?" is a research
objective. From this research goal it is possible to find out how each such factor impacts
and how it impacts on the use of services at the company. And in which, what are the
factors in the business are positive and what factors have a negative impact on the
satisfaction of customers. This allows the company to capture business opportunities,
service strengths that need to grow, and constraints compared to other competitors,
improve them and create I competitive advantage in the market.
Quality affects the performance of the product or service as well as customer's satisfaction.
This fact is genuinely important when it comes to how the consumer interprets the
satisfaction that service provides and the judgment of the buying process as a whole.
Considering that, service quality is an abstract and elusive construct due to three
characteristics of services: intangibility, heterogeneity, and inseparability of production
and consumption. In that way, we define service quality as perceived by the customer. In

addition, the perceived quality is the comparison between the perception and customer
expectation. Customer expectations are the expected service, arising from needs. However,
these can be more or less demanding than the real needs. Perceptions are how the customer
perceives the service provided, assessing whether this was appropriate or not. Thus, for
service providing organizations the interpretation of customer needs is critical. Superior
performance in services strengthens competitiveness and establishes a relationship with the
customer, consolidating the brand and communication with the market, etc. This paper
aims to evaluate the quality of the supermarket through the fuzzy SERVQUAL and fuzzy
AHP. The results showed that the services have many gaps to be improved.

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As stated, the SERVQUAL scale model has been tested in many markets and countries.
However, many research results show that for quality of service, the quality model and
quality scale vary by country and type of service. In our country, the research on service
quality and customer's satisfaction is not much, but at the beginning. Furthermore,
measurement is not yet highly reliable as these behavioral studies often directly measure
latent variables instead of using observational variables to measure latent variables.
With the above mentioned concerns, this research aims to explore the components of a
quality of service and measure them at Cho Lon supermarket. Detail in below:
1. Evaluate the level of customer's satisfaction for service quality at Cho Lon supermarket.
2. Identify the factors that affect customer's satisfaction about the quality of service at Cho
Lon supermarket.
3. Suggest solutions to improve the quality of service at Cho Lon supermarket next time.
1.2. Research question:

"What factors affect to customer's satisfaction when using electronic equipment
procurement service at Cho Lon Supermarket, District 5, Ho Chi Minh City?"
1.3. Context and relevance:
With the continuous opening of the selling point, electronics businesses are forming big
business chains. In the year 2016, the electronics market achieved a turnover of about 70
trillion dong. According to a research by the German market research group GFK, Vietnam
ranks fifth in the fastest growing electronics market worldwide. This country is the fastest
growing industry in Southeast Asia. That shows the business of electronic products in
Vietnam is the direction of many businesses today.
Ten years ago, Vietnam was still a small chain in the global electronics supply chain, but
by 2014, the value of electronics exports had grown up to $ 38 billion. Electronic products
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business of large enterprises in the industry has significant growth. Notably, Vietnam's
consumer electronics sales are forecasted by GFK to be among the top five fastest growing
markets next year, with an increase of $ 0.6 billion. Even with a young population, of which
70% of the population in working age with high demand for electronic products, the retail
market in Vietnam is still considered to be untapped.
Therefore, this is a good opportunity for supermarkets to expand their business, gain market
share. However, nowadays, this market is still a fertile ground with the participation of big
shareholders such as Green Machine, Phong Vu, Nguyen Kim and 40% of total market
share of other retail chains. That is why service development, improving customer's
satisfaction is one of the top tasks.
1.4. Scope and Method of research:
This thesis will investigate and clarify the factors that affect customer's satisfaction when

using shopping services at Cho Lon Supermarket, District 5 HCM. The thesis will revolve
around exploring these factors to see how important they are, determining what is most
likely to influence customer's satisfaction, and to identify strengths. And the weaknesses
of Cho Lon Electric Power, thereby developing and overcoming them, increasing
competitiveness and capping new opportunities to change the quality of service to fit the
needs of our customers.
The restriction of this essay is that it is made in a short time, which is why it is necessary
to carry out the required progress. Therefore, it is only possible to carry out a survey in a
very small area, namely, Cho Lon Electric District 5, Ho Chi Minh City, while supermarket
chains also have branches in Tay Ninh, Ca Mau, Da Nang, Bac Lieu, Phan Thiet, because
this result will not be accurate. Part of the sampling was a random survey of 150 people
who used to shop at the District 5 supermarket.
This topic focuses on the factors affecting the customer's satisfaction at Cho Lon
supermarket and is implemented in 2 main steps: preliminary research and official study.
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Preliminary research is done by qualitative method. Focus group discussion techniques
were used in this study and it was used to explore the factors that influence customer's
satisfaction and to add to the theoretical scale the factors that affect satisfaction. Of the
client and hence build up a formal research model and make research hypotheses.
The formal study was conducted through direct interviewing technique at Cho Lon
supermarket. This study aims to test the measurement scale and theoretical models. The
scale was preliminarily tested with Cronbach alpha reliability and the multiple linearity
analysis and exploratory analysis was performed through the SPSS statistical data
processing software for measuring the scale and testing the research model.

1.5. Structure of the Paper:
The next chapter aims to analyze the literature related to customer's satisfaction, its
importance to the business, the relationship between service quality and customer's
satisfaction. In addition, Chapter 1 is introduction which is the first part of the process,
setting down the direction of the paper and laying out exactly what the research paper is
trying to achieve. Chapter 2 is that somebody will be able to gain an overall view of the
paper without needing to read the whole thing. Chapter 3, presents the use of methods to
collect data from service users in Cho Lon Supermarket. Chapter 4, will present findings
from collected data. Chapter 5, data analysis and discussion of the results obtained after
using SPSS. Finally, chapter 6, concludes what has been done and sets out the limitations
of that study.

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CHAPTER II: LITERATURE REVIEW
Vietnam's electronics market has experienced strong growth in sales as well as the number
of retailers entering the market. By 2015, Vietnam's electronics market will grow by about
20%, with a scale of about 7 billion USD. Meanwhile forecast from research firm Statistic
(Germany), estimated retail market in Vietnam in 2016 can reach sales of $ 100 billion, of
which the consumer electronics industry is about $ 10 billion. This growth rate is partly
due to a sharp increase in consumer demand. With a population of more than 90 million
people, while the proportion of people in working age, plus rising living standards and
incomes, is a powerful force to push up demand for electrical goods.. Vietnam's
consumption of electronic products will increase from 7.3% to 11.9 in the coming years.
Besides, in the past, the supermarkets have also had many strategic solutions to reach

customers, especially quality and service issues, to promote the purchase behavior of
customers.
However, the current battle in the electronics market is focused on big names such as Phong
Vu, the Green System of the Mobile World, Media art ... Each big man takes a unique
advantage, Developed specifically to compete and win the market pie has been divided into
very small. That caused a lot of difficulties for Cho Lon.
2.1. Importance of customer's satisfaction:
Customer's satisfaction is considered the cornerstone of the marketing concept of satisfying
customer needs and expectations (Spreng, MacKenzie, & Olshavsky, 1996). Satisfied
customers are an important factor in maintaining long-term business success and
appropriate business strategies to attract and retain customers (Zeithaml & GCT, 1996).
Customer's satisfaction is the assessment based on customer experience, which is how
much they expect of product characteristics or service functions from a supplier (Gerpott
et al., 2001). . However, there is a definition of customer's satisfaction as one's emotion,
which may be disappointment, as a result of comparing the performance of the product
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with the results that he or she desires. Keller, 2009, p. 789). Not only that, according to
Oliver, 1997. Customer's satisfaction is the response and evaluation of the customer to the
perfection of a product or service. So how important is satisfaction to be able to draw some
kind of attention to the researchers?
One of the indispensable results of that satisfaction is giving the company loyal customers
(Anderson and Sullivan, 1993, Fornell, 1992, YuEt al., 2005, Guillaume, 2008, Vesel and
Zabkar, 2009). . And that can bring big profits to the company (Anderson et al., 1994,
Mittal and Kamakura, 2001). In addition, customers can pay a higher price for existing

products (Homburg et al., 2005), increased shopping, downsizing costs, enabling
companies to increase their competitiveness. On the market, keep their customers (Ho,
Huang, Huang, Lee, Rosten & Thang, 2009).
In a market where competition is always on the upturn, companies are constantly
innovating to grasp advantage over competitors (Alderson, 1957; Day & Wensley, 1983;
Hunt & Morgan, 1995; Morgan. & Hunt, 1994), and for that reason job satisfaction is
always a more urgent task than ever.
Customer's satisfaction surveys have been widely disseminated as service quality
influences customer's satisfaction (Parasuraman et al., 1988, Herrmann et al., 2000, Kim et
al., 2004). Gonzalez et al., 2007). Examine the consequences of customer's satisfaction,
such as customer loyalty (For example, Anderson and Sullivan, 1993; Fornell, 1992, YuEt
al., 2005, Guillaume, 2008, Vesel and Zabkar, 2009. ) Or profit (for example, Anderson et
al., 1994, Anderson and Sullivan, 1993; Vinnie, 2001; Coelho and Vilares, 2010).
Inductive research is a flexible approach because there is no requirement of pre-determined
theory to collect data and information. The researcher uses the data and facts to reach the
tentative hypothesis and define the theory as per the research problem. This gives the
research to give inductive arguments (Mertens 2008). Inductive approach is highly
capitalized with the interpretivism philosophy. Inductive approach will allow the
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researcher to provide a variety of real life examples (Ridenour, Benz and Newman 2008).
Deductive approach is linked with the positivism philosophy, which includes hypothesis
to prove capumptions. In this kind of approach it is necessary for the researcher to be
general, but this research issue is specific and related to the development of human
resources in the organization (Ritchie and Lewis 2003).

2.2. Quality of service and relationship with customer's satisfaction:
Quality of service is defined in many different ways depending on the research subject and
the research environment. Quality of service is the extent to which a service meets the
needs and expectations of customers (Lewis & Mitchell, 1990; Asubonteng & ctg, 1996;
Wisniewski & Donnelly, 1996). Edvardsson, Thomsson & Ovretveit (1994) argue that
service quality is a service that meets the expectations of customers and satisfies their
needs. According to Parasuraman & ctg (1985, 1988), service quality is the distance
between customer expectations and their perceptions when used through the service.
According to Zeithaml, 1988, service quality is the overall customer appreciation for
service excellence. There is, however, research that suggests that customers evaluate the
quality of their service based on a comparison between their expectations and the service
(Meshack and Datta 2015).
And that is one of the vital and indispensable things for the business, not only that it is a
catalyst to increase profitability, improve competitive advantage over time (Carter,
McKinley, Wise, & MacLeod, 2002). Because it is the engine to turn customer's
satisfaction into loyalty to the company, if the business can meet the needs and expectations
of customers in a product, the customer's satisfaction The higher the quality of the product
(Lee, Lee, & Kang, 2012). Therefore, improving service quality is indispensable.
There are different views on the level of customer's satisfaction (Oliver 1997). Bachelet
(1995: 81) defines customer's satisfaction as an emotional response of the customer in
response to their experience with a product or service.
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Often, service providers often assume that service quality is the level of customer's
satisfaction. However, many studies show that quality of service and customer's

satisfaction is the different distinct concepts (Zeithaml & Bitner 2000). Customer's
satisfaction is a general concept, expressing their satisfaction when consuming a service.
Meanwhile, service quality focuses on specific components of service (Zeithaml & Bitner
2000). Service quality is related to the service delivery process, and satisfaction only
appears after the customer has used the service. Therefore, when customers use the service
and feel the high quality of service, they will be satisfied with the service and vice versa,
when customers feel the quality of service is low, they feel not satisfied.
2.3. Parasuraman model (SERVQUAL): Quality of service
➢ Service quality gaps model by Parasuraman et al. (1985)
Parasuraman et al. (1988) suggested that customer expectations are what the customers
think a service should offer rather than what might be on offer. Zeithaml et al. (1990)
identified four factors that influence customers’ expectations: word-of-mouth
communications; personal needs; past experience; and external communications. A gap is
created when the perceptions of the delivered service is not as per the expectations of the
customer. This gap is addressed by identifying and implementing strategies that affect
perceptions, or expectations, or both (Parasuraman et al., 1985; Zeithaml et al., 1990).
Parasuraman et al. (1988) stated that SERVQUAL had been designed to be “applicable
across a broad spectrum of services” and the format could be adapted to fit specific needs,
and that it would be most valuable when used to track service quality trends periodically.
They proposed that the SERVQUAL model could be extended to measure gaps in quality
and could therefore be used as a diagnostic tool to enable management to identify service
quality shortfalls. The gap score is calculated by the perception statements being deducted
from the expectation statements. If any gap scores turn out to be positive then this implies
that expectations are actually being exceeded. This allows service managers to review

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whether they need to re-deploy resources to areas of underperformance (Wisniewski,
2001).
The most well-known model is the model of Parasuraman et al. (1985) which is widely
utilized in the literature. The model attempts to show the salient activities of the service
organization that influence the perception of quality. Moreover, the model shows the
interaction between these activities and identifies the linkages between the key activities
of the service organization or marketer which are pertinent to the delivery of a satisfactory
level of service quality. The links are described as gaps or discrepancies: that is to say, a
gap represents a significant hurdle to achieving a satisfactory level of service quality
(Ghobadian et al., 1994).
Parasuraman et al. (1985) proposed that service quality is a function of the differences
between expectation and performance along the quality dimensions. They developed a
service quality model (Figure 1) based on gap analysis. The gaps include (Seth and
Deshmaukh, 2005):
Gap 1: Customer's expectation - management gap. This gap addresses the difference
between consumers’ expectations and management’s perceptions of service quality.
Gap 2: Management perception-service quality specifications gap. This gap addresses the
difference between management’s perceptions of consumer’s expectations and service
quality specifications, i.e. improper service-quality standards.
Gap 3: Service quality specification-service delivery gap. This gap addresses the difference
between service quality specifications and service actually delivered, i.e. the service
performance gap.
Gap 4: Service delivery-external communication gap. This gap addresses the difference
between service delivery and the communications to consumers about service delivery, i.e.
whether promises match delivery.
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Gap 5: Expected service-perceived service gap. This gap addresses the difference between
consumer’s expectation and perceived service. This gap depends on size and direction of
the four gaps associated with the delivery of service quality on the marketer’s side.
➢ SERVQUAL model
According to this model, SERVQUAL scale has proposed by Parasuraman et al.(1988) for
measuring Gap 5. Parasuraman et al. (1985) mentioned ten factors for evaluating service
quality (including tangible, reliability, responsiveness, courtesy, credibility, security,
accessibility, communication and understanding the customer). These ten factors are
simplified and collapsed into five factors. These five dimensions are stated as follows (Van
Iwaarden et al., 2003; Shahin, 2006):
Quality of service is defined as the gap between customer service expectations and their
perception when used through the service. Based on the traditional definition of service
quality, Parasuraman has built the SERVQUAL. To assess service quality, there are 22
variables of 5 components to measure expected quality and perceived service:
1. Reliability
• When the company promises to do something at some point, they will do it.
• When you have a problem, the company demonstrates that it really wants to solve the
problem.
• The company performs right service right from the first time.
• The company provides the service exactly as promised.
• The company warns not to make any mistakes.
2. Responsiveness
• Company employees tell you when to do the service.
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• Company staff quickly perform services for you.
• Employees are always available to help you.
• Employees are never too busy to meet your requirements.
3. Assurance
• Employee behaviors that cause you confidence.
• You feel safe while dealing with the company.
• Company staff is always with you.
• Employees know enough to answer your questions.
4. Empathy
• The company always pay special attention to you.
• The company has employees who care about you.
• The company that benefits you is their thing.
• Your employees understand your needs.
• The company works at convenient times.
5. The tangibility
• The company has very modern equipment.
• The facilities of the company look very eye-catching.
• The company staff is dressed up.
• The company's brochures related to the service look beautiful
In fact, there have been many scientific studies using SERVQUAL as a tool for evaluating
service quality, for example:

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“Applying the fuzzy SERVQUAL method to measure the service quality in certification &
inspection industry - Ru Liua, Lixin Cui , Guangfeng Zeng , HongyanWub, Chengjie Wang
, Shan Yanb, Bingyan Yan 2015”
“A fuzzy SERVQUAL based method for evaluated of service quality in the hotel industry
- Stefano, CasarottoFilho, Barichello, Sohn 2015”
“Measuring the performance of IT services: An Calescent of SERVQUAL - Helen Kang,
Graham Bradley 2002”
A study by Mangkolrat (2008) has shown the effects of the SERVQUAL model on the
business of measuring the quality of service. First, businesses can capture customer cycles,
or in other words, what they want in the service, capture the customer's trends, and then
get the business out of the business. Following this model, the company identifies
shortcomings as well as outstanding gaps in services and addresses weaknesses, improves
service quality, and enhances customer's satisfaction. . The model helps businesses identify
the strengths and weaknesses in service quality and what the business needs to do. Model
has been widely applied to different types of businesses at different times. Therefore
SERVQUAL is suitable for periodical use in order to follow the quality of service of the
organization.
The SERVQUAL approach contains a questionnaire that evaluates five generic service
dimensions or factors through 22 questions, evaluating both expectation and performance
using a seven point Likert scale. This approach evaluates service quality by calculating
difference (gap) between customer expectations and perceptions (service quality= P – E).
'P' denotes customer perception of service or performance and 'E' denotes expectations
before a service encounter deliver the actual service (Lewis and Booms, 1983; Parasuraman
et al., 1985). If the answer is negative, then dissatisfaction occurs, otherwise, the Service
Quality is achieved. This equation is usually called gap analysis (Zahari et al., 2008), but

as it was emphasized, this approach only measures gap 5.
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Internal service quality model by Frost and Kumar (2000) Frost and Kumar (2000)
developed an internal service quality model. The model (Figure 2) evaluates the
dimensions, and their relationships which determine service quality gaps among internal
customers (front-line staff) and internal suppliers (support staff) within a large service
organization. The gaps are as follows: Internal gap 1: Difference in support staff’s
perception (internal supplier) of front-line staff’s expectation (internal customers). Internal
gap 2: Difference between service quality specifications and the service actually delivered
resulting in an internal service performance gap. Internal gap 3: Difference between frontline staff’s expectations and perceptions of support staff’s (internal supplier) service
quality. This is the gap which focuses on the front-line staff (internal customers).
Model of Service Quality Gaps by Luk and Layton (2002) Luk and Layton (2002)
developed the traditional model of Parasuraman et al. (1998) by adding two more gaps.
They reflect the differences in the understanding of consumer expectations by manager and
front-line service providers and the differences in consumer expectations and service
providers' perception of such expectations.
2.4. Quantitative data:
Quantitative research involves data collection, analysis and interpretation. It is mainly a
statistical analysis method to solve the research problem, because data used in it, is
mathematical and statistical form. Quantitative research is objective and uses concepts,
constructs, hypothesis which makes up a theory (Qualitative vs. Quantitative Research,
2011) whereas; Qualitative research is based on texts and images, pictures etc. (Creswell,
2003). Qualitative research includes focus group, in-depth interview, and observation to

collect data and then it analyze for the study. It is subjective in nature and describes the
problem of research in depth to find out its solution.
Quantitative research includes survey, sampling and census method to collect data. It
requires the data in the numerical value, which can be count. A researcher use all these data
on the basis of the way in which a number of people act, think and feel, because in this
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method number of interview are considered. There are many methods by which data can
be collected like experiments, observational study, and survey. Quantitative research uses
numbers, and numerical values to summarize the whole study, and to look relationship
between variable and participants of the research (Neill, 2007). A quantitative research
begins with a hypothesis and test for confirmation and rejection of that theory. Quantitative
research focuses on the measurement and amount of characteristics and behavior of people
(Thomas, 2003).
• Critical discussion and development of the models of service quality gaps
The service quality gaps models can be criticized on both methodological and conceptual
grounds (Carman, 1990; Cronin and Taylor, 1992; Teas, 1993; Brown et al., 1993). Cronin
and Taylor (1992) proposed that there is a lack of evidence supporting the expectationperformance gap as a predictive measure of service quality. They believe that assessing
customer perception is enough for evaluating service quality and it is unnecessary to
measure customer expectations in service quality research. They oppose evaluating service
quality by calculating the difference between customer perceptions and customer
expectations (P-E). Indeed, they define Service Quality as a customer Perception (of
Performance only) without expectations. They proposed that the performance based
measurement approach (SERVPERF) is more in conformance with the existing attitude

and customer satisfaction literature and is superior to the perception-expectation gap
approach.
Teas (1993) questioned the validity of perception-expectation gap with conceptual and
operational problem in the definition of the expectation. While perception (P) is definable
and measurable in a straightforward manner as the customer belief about service is
experienced, expectation (E) is subject to multiple interpretation by different authors/
researchers (e.g. Babakus and Inhofe, 1991; Dabholkar et al., 2000; Gronroose, 1990; Teas,
1993, 1994). They believe that expectation concept is doubtful and conceptualized owing
to there are plenty definition for the term expectation in service quality literature where it
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is defined as ‘normative expectation’ with concern to organization constraints such as
human resource or facilities and equipment’s limitation or ‘ideal expectation’ without any
concern to limitation and constraint, it means what the customer would expect from
excellent service. Initially, Parasuraman et al (1985, 1988) defined expectation as "desire
or wants of customer"; what they feel a service provider should offer rather than would
offer (Jain and Gupta, 2004).
Brown et al. (1993) raised psychometric concerns regarding the use of difference score and
felt that the gap model would display poor reliability, because expectation and perception
could be positively correlated. They also suggested that if the statistical variance of
performance score and expectation score are different, any tests of statistical significance
would become more complex. The other criticizer claims that SERVQUAL is not
applicable to a wide variety of service contexts as the common tool for evaluating service
quality (Carman, 1990).

The above explanation provides a critical discussion of the traditional models, but it is not
convincing and it seems that this model still needs to be further developed. In the following,
other shortcomings in gaps models are addressed and a model is developed based on the
discussion. Considering the critical discussion, more gaps are added to the previous
models. The proposed model is illustrated and the added components, gaps and links are
highlighted. The new components which are proposed to be fitted in to the model include:
- Ideal service standards;
- Service quality strategy and policy;
- Translation of service quality strategy and policy into service quality specifications and
service design;
- Management perceptions of customer perception.
- Employee perceptions of customer perception.
2.5. Conclusion:
Thus, it can be seen that customer's satisfaction has a positive impact on the business in the
long term, such as growth in profits, competitiveness. That forced the business that
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specifically here is Cho Lon Power Machine must change or improve the quality of its
service. On the other hand, the company is in the midst of a fierce competition from other
electronics retailers that are gaining a large market share, for enhancing customer's
satisfaction, maintaining competitive advantage, Seizing the opportunity to grow market
share is more urgent than ever, although the electronics market is in great demand and
constantly growing in profit. And to be able to study customer's satisfaction, SERVQUAL
is a useful tool for companies to develop their current service, capture customer needs, and

manage quality of service.
Quality of service is dependent on the distance between the customer's expectations for a
service and their perception of the service. Quality of service consists of five main
components: responsiveness, service capability, reliability, empathy and tangible means.
In this chapter, the author presents a theoretical and theoretical model of the relationship
between these components to the level of customer's satisfaction. The next chapter presents
the research methodology used to test the scale model and the theoretical model of service
quality.

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CHAPTER III: RESESEARCH METHODOLOGY
In the last section, we have seen the link between service quality and customer's
satisfaction, its positive impact for businesses focused on how to improve customer's
satisfaction. groin. And in this chapter will talk about research methods that can answer the
question: “What Factors affect to customer's satisfaction when using electronic equipment
procurement services at Cho Lon Supermarket, District 5, Ho Chi Minh City ", and one of
them is the Parasuraman’s model (SERVQUAL) which will help answer this question.
3.1 Preliminary research:
• Inductive Approach:
Inductive is one of the theoretical methods by which the researcher puts forth a rule or
principle through observation (from one to the other). And often involves data collection
and analysis. Accordingly, there will be no theory in the early stages of research and
progressively progressing until the research results (Babbie, 2014). Unlike the interpretive

approach, it is a tendency to apply old methods to new problems, while the interpretative
approach is reversed (Graham and Carmichael, 2012). Example, In accounting, the
induction process begins with the observation of accounting data of the reporting units such
as sales, purchases, financial ratios, cash flow, debts, capital, and many other data than can
be reached via accounting information system. The observations of financial data of a
number of companies are meticulously studied and their similar characteristics are found
by one's mind. If the data have repetitive relationships, then some principles can be formed
and in some cases new thoughts can be induced hay For example, based on historical data,
the cash to sales ratio of several companies belonged to the same industry might suggest a
certain trend. Based on this ratio, we can predict the future cash revenues. So that, the
inductive approach is completely applicable to this topic.

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• Research Design:
The study used a questionnaire for surveying and collecting information, with 20 questions
based on the Parasuraman Doctrine of Service Quality of Cho Lon Supermarket, and five
levels of evaluation. Questionnaires can be administered in a variety of ways. They can be
distributed by hand or by post, or sent by email to be printed out, completed and then
returned. A newer alternative approach is to deliver the questionnaire entirely
electronically via the internet, as an online questionnaire. Respondents access the web
page, read the questionnaire and enter their responses directly on to the page. Surveys using
self-completion questionnaires have some distinct advantages over face-to-face interviews:
▪ They are cheap to administer. The only costs are those Capacitated with printing or

designing the questionnaires, their postage or electronic distribution.
▪ They allow for a greater geographical coverage than face-to-face interviews without
incurring the additional costs of time and travel. Thus they are particularly useful when
carrying out research with geographically dispersed populations.
▪ Using self-completion questionnaires reduces biasing error caused by the characteristics of
the interviewer and the variability in interviewers’ skills.
▪ The absence of an interviewer provides greater anonymity for the respondent. When the
topic of the research is sensitive or personal it can increase the reliability of responses.
• Data Collection :
After setting up the questionnaire, the questionnaire will be distributed to 200 customers
who bought at Cho Lon Supermarket, District 5, Ho Chi Minh City. . Due to the limited
time allowed for the topic, it is only possible to survey at this site with limited sample size.
The survey is conducted from July 8th to July 27th, supermarkets have a promotion program
of 40% for some electronic items attract customers.
•

Data Analysis
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ID No: CGS00064976

SPSS (Statistical Product and Service Solutions) is computer software used for statistics
purposes. SPSS provides users with a solution for data management plus powerful data
processing and analysis capabilities. In addition, with its user-friendly interface, users can
easily use the functions of the toolkits available for their research. With an extremely
powerful management system and versatile analytical toolbox, SPSS is used in many other

areas, specifically:
Research psychology: psychology of housework, psychology students ...;
Sociological studies: people are thinking in rebuilding markets, census statistics ...;
Market research: market expansion; Customer's satisfaction, customer purchase
behavior, loyalty, etc., from which to determine product development orientation.
Research on biodiversity in agro-forestry development...
The popularity and strength of MS-Excel is unquestionable. People develop software
packages using MS-Excel and use it for statistical calculations. However, it is a tedious
way of doing it. There is a solution available in the form of SPSS that makes statistical
analysis very simple. This package has some distinct properties that make it better and
stronger solution over MS-Excel.
▪ Easier access to the purely statistical aspects: Since it is dedicated software for statistics,
it contains built-in functions for data analysis. These functions work more speedily and
easily than MS-Excel.
▪ Statistics tests are easier in SPSS: This package is equipped with a complete set of
statistical tests and one can run them pretty easily and effectively.
▪ Pivot tables are excellent in SPSS: Pivot tables are one of the main tools that make MS
Excel user-friendly. However, SPSS brings a set of strong Pivot tables, stronger built-in
function and add-in tools for data analysis. They make SPSS better than MS-Excel.

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Nguyen The Vien

ID No: CGS00064976

▪ Detailed charts and graphs: SPSS bring high quality graphs and charts that can help
greatly in the statistical analysis of the data. There is an improved quality of presentation

and visual quality of graph in SPSS.
▪ Creating tables is easier: SPSS brings easier method of table creation and report
generation for the data. It has built-in functions for the commonly used functions that are
helpful in report generation.
▪ Convert codes in values easily: Statistical data collected for a survey deals with a variety
of codes that make the data collection easier. However, you need proper description in the
final representation of the report. SPSS has incredible capability of converting the codes
into meaningful terms.
▪ Missing values are never a problem in SPSS: Since the statistical data in a research is
based on actual values, there are so many missing values here and there. SPSS would give
you accurate results in spite of missing values and you should never bother about it. This
feature is available in-built in SPSS and it is not an add-on feature like MS-Excel.
▪ Preventing data entry errors: SPSS can stop and correct the data entry errors at the entry
points itself. You can define data ranges or predefined data values so that erroneous values
are trapped at the entry level.
▪ Unlimited rows: This is the most fascinating advantage that SPSS carries over MS-Excel.
Statistical analysis with huge data points can be possible using SPSS.
• Validity :
Problem with data gathering represents several concepts that to the non-researcher may be
quite complex. But basically validity boils down to whether the research is really
measuring what it claims to be measuring. For instance, if a marketer is purchasing a
research report from a company claiming to measure how people prefer the marketer’s
products over competitors’ products, the marketer should understand how the data was
gathered to help determine if the research really captures the information the way the
research company says it does.
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Nguyen The Vien

ID No: CGS00064976

• This research has many limitations, first of which is limited research time, which is why it
is only possible to conduct research at a branch of Cho Lon Electrode in District 5 with the
number Sample size is 150 people who use the service and shopping at the supermarket.
• Reliability :
Reliability relates to the consistency of a measure. A participant completing an instrument
meant to measure motivation should have approximately the same responses each time the
test is completed. Although it is not possible to give an exact calculation of reliability, an
estimate of reliability can be achieved through different measures. Cronbach

is the most

commonly used test to determine the internal consistency of an instrument. The Cronbach
result is a number between 0 and 1. An acceptable reliability score is one that is 0.7 and
higher. This research will be highly influenced by the limited time available, the limited
number of samples and the fact that only one branch of the Cho Lon electronics factory
could be surveyed. Survey results can not cover all customers who use the service at the
entire branch of the supermarket.
3.2. Official quantitative study
The sample size depends on the analytical method, which uses exploratory factor analysis
(EFA). Factor analysis has at least 100 formulas (N = 20 variables x 5 scales). So the paper
has 150 samples.

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Nguyen The Vien

ID No: CGS00064976

Table 3.1: Question
Criteria

Question
1. The company has modern equipment

Group of
material
facilities

Score (1: best, 5: worst)
1 2

3

4

5

2. The company's facilities look attractive 1 2

3

4

5

3. Staff are courteous polite

1 2

3

4

5

4. The company has convenient

1 2

3

4

5

1 2

3

4

5

1 2

3

4

5

1 2

3

4

5

4. The company provides timely service

1 2

3

4

5

5. The company informs the customer

1 2

3

4

5

transaction time
1. The company has fulfilled its promise
Trust level

at the right time
2. The company has sincerely solved the
problem you encountered while using the
service
3. The company does the right service for
the first time

when the service is performed
The level of

1. Company staff will serve you quickly

1 2

3

4

5

response

2. Company staff are available to assist

1 2

3

4

5

1 2

3

4

5

1 2

3

4

5

1 2

3

4

5

you
3. Company employees are too busy to
help you
Service

1. Employees in the company

capabilities

increasingly create trust for you
2. You feel safe when you do service
with the company

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Nguyen The Vien

ID No: CGS00064976

3. Company staff are always courteous to

1 2

3

4

5

1 2

3

4

5

you
4. Company staff have enough
knowledge to answer your questions
Level of

1. The company expresses interest in you

1 2

3

4

5

empathy

2. Company employees show personal

1 2

3

4

5

1 2

3

4

5

1 2

3

4

5

interest in you
3. The company shows special attention
to your greatest concerns
4. Company staff understand your needs

Research data analysis method
Descriptive statistics method:
Mean: Mean, Average: is the sum of all observed variables divided by the number of
observations.
Median (KH: Me): is the value of the vertical variable in the middle of a sequence that
has been ordered in ascending or descending order.
Mode (KH: Mo): is the value of the highest frequency in total or in a series of distribution
numbers.
Variance ( 2) is the mean of the squared deviations between variables and the mean
value of those variables.
Standard deviation ( ): is the square root of the variance.
Test Cronbach's Alpha
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