Service quality and customer satisfaction of training programs at the center for management training consulting, hanoi school of business and management, vietnam national university hanoi

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN NGÂN HÀ

SERVICE QUALITY AND CUSTOMER SATISFATION OF
TRAINING PROGRAMS AT THE CENTER FOR
MANAGEMENT TRAINING & CONSULTING,
HANOI SCHOOL OF BUSINESS AND MANAGEMENT,
VIETNAM NATIONAL UNIVERSITY
CHẤT LƢỢNG DỊCH VỤ VÀ MỨC ĐỘ HÀI LÒNG CỦA KHÁCH
HÀNG VỚI CÁC KHÓA ĐÀO TẠO TẠI TRUNG TÂM ĐÀO TẠO VÀ
TƢ VẤN QUẢN TRỊ, KHOA QUẢN TRỊ & KINH DOANH, ĐẠI HỌC
QUỐC GIA HÀ NỘI

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN NGÂN HÀ

SERVICE QUALITY AND CUSTOMER SATISFATION OF
TRAINING PROGRAMS AT THE CENTER FOR
MANAGEMENT TRAINING & CONSULTING,
HANOI SCHOOL OF BUSINESS AND MANAGEMENT,

VIETNAM NATIONAL UNIVERSITY
CHẤT LƢỢNG DỊCH VỤ VÀ MỨC ĐỘ HÀI LÒNG CỦA KHÁCH
HÀNG VỚI CÁC KHÓA ĐÀO TẠO TẠI TRUNG TÂM ĐÀO TẠO VÀ
TƢ VẤN QUẢN TRỊ, KHOA QUẢN TRỊ & KINH DOANH, ĐẠI HỌC
QUỐC GIA HÀ NỘI

Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƢỜI HƢỚNG DẪN KHOA HỌC: TS. TRẦN HUY PHƢƠNG

Hà Nội - 2018


DECLARATION

The author confirms that the research outcome in the thesis is the
result of author’s independent work during study and research period and it is
not yet published in other’s research and article.
The other’s research result and documentation (extraction, table,
figure, formula, and other document) used in the thesis are cited properly and
the permission (if required) is given.
The author is responsible in front of the Thesis Assessment
Committee, Hanoi School of Business and Management, and the laws for
above-mentioned declaration.

Hanoi, date of …… / …… /……..
Nguyen Ngan Ha

ACKNOWLEDGEMENT
I have gained huge knowledge, skill and insights from my MBA
course. The course raises my capacity of administration and management up
to the next level.
I declare that this is a true copy of my thesis. The content of this thesis
has been approved by the committee of Vietnam National University, Hanoi –
Hanoi School of Business and Management (HSB). This thesis has not been
submitted for a higher degree to any other University or Institution.
In order to finish this project successfully, I have received many helps,
supports and guidance from many people who I would like to thank sincerely.
First of all, I would like to thank all the professors of MBA program,
especially Dr. Tran Huy Phuong – my supervisor. Then I would like to thank
deeply to class assistant team of HCC center, respondents and interviewees
who allowed me to gather enough data for this research. Finally, I would like
to express my thanks to my husband, my family, my colleges and my fellow
friends who always stand by me during the past two years and encourages me
to keep moving from the beginning of my study.
Hanoi, date of …… / …… /……..
Nguyen Ngan Ha


CONTENT

ABBREVIATION ............................................................................................ i
LIST OF FIGURES ........................................................................................ ii
LIST OF TABLES ......................................................................................... iii
INTRODUCTION ........................................................................................... 1
1. Rationale ................................................................................................. 1
2. Literature review ..................................................................................... 3

3. Aims of research ..................................................................................... 6
4. Objects of research.................................................................................. 7
5. Scope of research .................................................................................... 7
6. Research methodology ............................................................................ 7
7. Thesis structure ..................................................................................... 10
CHAPTER I. THEORETICAL BACKGROUND ON CUSTOMER
SATISFACTION WITH TRAINING SERVICE QUALITY .................. 11
1.1. Basic concepts .................................................................................... 11
1.1.1.

Training service......................................................................... 11

1.1.2.

Service quality........................................................................... 12

1.1.3.

Customer satisfaction ................................................................ 13

1.2. Service quality and customer satisfaction .......................................... 14
1.3. Service quality assessment models..................................................... 16
1.3.1.

Service Quality Gap Model ...................................................... 16

1.3.2.

Service quality 10 component model ........................................ 18

1.3.3.

SERVQUAL and SERVPERF models ..................................... 19

1.3.4.

Theorical framework & Hypothesis.......................................... 21

1.3.5.

Designing Scales and Questionares .......................................... 24


1.3.6.

Data collection method ............................................................. 27

CHAPTER II. ASSESSING THE SITUATION OF CUSTOMER
SATISFACTION WITH TRAINING SERVICE AT THE CENTER
FOR

MANAGEMENT

TRAINING

&

CONSULTING,

HANOI

SCHOOL OF BUSINESS AND MANAGEMENT, VNU ......................... 28
2.1. Introduction of the Center for Management Training & Consultancy,
Hanoi School of Business and Management, VNU .................................... 28
2.1.1.

Introduction of Hanoi School of Business and Management,

Vietnam National University Hanoi......................................................... 28
2.1.2.

Center for Management Training & Consultancy, Hanoi School

of Business and Management, Vietnam National University Hanoi ....... 32
2.2. The situation of customer satisfaction with training services at Center
of Corporate Training and Consultancy, Hanoi School of Business and
Management, VNU ...................................................................................... 34
2.2.1

. Program Designing ........................................................................ 34

2.2.2

. Lecturers Team .............................................................................. 36

2.2.3

. Training Notes ............................................................................... 37

2.2.4

. Suportive Service .......................................................................... 38

2.3. Survey results on customer satisfaction with training services at
Center of Corporate Training and Consultancy, Hanoi School of Business
and Management, VNU ............................................................................... 39
2.3.1.

Research sample description ..................................................... 39

2.3.2.

Reliability and validity of the scales ......................................... 40

3.3.3.

Survey results ............................................................................ 43

CHAPTER III. PROPOSAL ON SOLUTIONS TO ENHANCE
CUSTOMER

SATISFACTION

WITH

TRAINING

SERVICE

QUALITY IN THE CENTER FOR MANAGEMENT TRAINING &

CONSULTING,

HANOI

SCHOOL

OF

BUSINESS

AND

MANAGEMENT, VNU ................................................................................ 49
3.1. Declaration of mission, vision and development orientations of
Hanoi School of Business and Management, Vietnam National
University .................................................................................................... 49
3.2. Improving customer satisfaction solutions .................................... 50
3.3. Recommendations............................................................................. 55
3.3.1

For Hanoi School of Business and Management (HSB) ................. 55

3.3.2

For the center for management training and consulting (HCC)...... 55

CONCLUSION, LIMITATION AND IMPLICATION ........................... 57
1. Conclusions ........................................................................................... 57

2. Limitations ............................................................................................ 58
3. Implications........................................................................................... 58
REFERENCES .............................................................................................. 59
APPENDIX .................................................................................................... 62
APPENDIX 1. QUESTIONNAIRE IN ENGLISH .................................... 62
APPENDIX 2. QUESTIONNAIRE IN VIETNAMESE ........................... 66
APPENDIX 3. RESULT ANALYSIS .......................................................... 70


ABBREVIATION
VNU

Vietnam National University Hanoi

HSB

Hanoi School of Business and Management

HCC

Center of Corporate Training and Consultancy

EFA

Exploratory Factor Analysis

i


LIST OF FIGURES

Figure 1.1. The relationship between service quality and customer satisfaction......16
Figure 1.2. Service Quality 5 Gap Model in SERVQUAL .......................................17
Figure 1.3. SERVQUAL model ................................................................................20
Figure 2.1: HSB Organization Chart .........................................................................31
Figure 2.2: Usefulness of Program Designing ..........................................................35
Figure 2.3: Appropriateness of case study and activities ..........................................36
Figure 2.4: Training notes contain use-full and up-to-date information ...................38

ii


LIST OF TABLES
Table 1.1. Compare the two SERVQUAL and SERVPERF models .......................21
Table 2.1. Training courses providing by HCC ........................................................33
Table 2.2. Reliability of the scales ............................................................................40
Table 2.3. Validity of the scales ................................................................................42
Table 2.4. Mean and standard deviation ...................................................................43
Table 2.5. Regression Analysis Results ....................................................................44
Table 2.6. Results of the hypothesis testing ..............................................................47

iii


INTRODUCTION
1. Rationale
Hanoi School of Business and Management (HSB), a member of
Vietnam National University Hanoi (VNU) was founded on 13th, July 1995
by prominent late Prof. Dr. Nguyen Van Dao, the first director of VNU. Since
then, HSB has become a pioneering & reputable education center in Vietnam
for MBA and executive training. HSB is the first and unique business school

in Vietnam that has enjoyed a highly autonomous status in academics and a
full autonomy in finance. Since its establishment in 1995, HSB has never used
state budget but with the financial support and donations from alumni's
enterprises and organizations, and tuition fees, HSB has developed its strong
academic foundation and built up its modern facilities complying with the
international standards.
Center for Management Training and Consultancy (HCC) – A center of
Hanoi School of Business and Management (HSB) – was established by the
project "Capacity Development for Vietnamese Business Leadership”
sponsored by the Viet Nam Peace and Development Foundation and the
World's Leading Business School - Tuck School of Business. The mission of
HCC is to provide short - courses trainings speacially tailored for companies
and copporates with up to date international management trends applied in
Vietnamese culture to equip customers and learners with optimal management
solutions and practical tools to create competitive advantage. After 20 years
of development, HCC has so far attracted: more than one hundred leading
lecturers and guess speakers who are business leaders, experts and dominent
lecturers; over one hundred and twenty training programs to improve
management skills, professional skills and soft skills training and over one
hundred thousand trainees participated in those training programs.

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Due to its reputation and credibility as a state training organization
which has been very successful since their establishment, HCC has gained
credit from major state owned corporations and companies such as: Vietnam
Posts and Telecommunications Group (VNPT); Mobile Information Company
VMS Mobifone; Vietnam Cement Industry Corporation (VICEM); Bank for
Investment and Development of Vietnam (BIDV); Song Da Corporation;

Vietnam National Coal-Mineral Industries Group (VINACOMIN); Hanoi
Beer, Liquor and Beverage Corporation (HABECO); Vietnam Airlines;
Electricity of Vietnam Corporation (EVN); Vietnam Oil and Gas Group
(PV); Bank for Agriculture and Rural Development of Vietnam
(AGRIBANK); Vinataba Cigarette Corporation... . However, when the state
owned corporations and companies proceeds with capitalization, the budget
for training in those organization has been reduced dramatically. Instead,
there is an increasing demand for private companies and organization. And
the trengths of HCC in the past such as reputation and credibility as a state
training organization are no longer be highly valued by those new customers.
Instead, those organisations concern more about service quality and learners’s
satisafaction of the center. To enter this new highly potential market, there is
a need for HCC to change to meet the new requirement of new customer
segment. Therefore, the author would like to select the content of “Service
quality and customer satisfaction of training programs at the Center for
Management Training & Consultancy, Hanoi School of Business and
Management, Vietnam National University Hanoi”.
With research content as above, the author poses research questions for
his topic as follows:
- What are the factors influencing customer satisfaction and service
quality of corporate training programs in HCC?

2


- What is the current status of customer satisfaction and service quality
of corporate training programs in HCC?
- What are the suitable solutions to improve customer satisfaction on
training service quality of corporate training programs in HCC?
- What are the suitable solutions to improve customer satisfaction on

training service quality of HCC?
2. Literature review
Research on the world
Ali Kara (2004) conducted a research which focuses on the
relationship between business students’ satisfaction and students’ intentions
when studying at a college or university. Using empirical data and a
conceptual model, the results of this study indicate that students’ college
experience is positively related to their satisfaction andintentions to stay at
college or university. This study provides a very interesting figure that is
more than 40% of college did not get bachelor degree, among whom 75%
dropped out in the first two years of college. By an empirical study of 160
business students at a university in the south of central Pennsylvania, the
author points out that the students’ performance relates to their satisfaction
and the intention to continue studying at that university. One of the
implications of this study is that those educational institutions that understand
consumer-oriented principles may have a betterchance of satisfying the wants
and needs of their students more effectively. The author also made a
recommendation for the Board of Director to apply the principles of
considering student as a customer to increase profitability as well as to
improve the quality of schooling.
Ashi Zeshan1, Tahira Afridi 2 & Safraz M. Khan (2014) designed a
research to assess service quality and students satisfaction in business
3


schools according to SERVQUAL model in the perception of students.
Survey research was used to achieve the objectives of the research study.
Eight business schools were taken as sample from public and private sectors
randomly. A structured questionnaire was adopted with five dimensions of
service quality (Tangibility, reliability, responsiveness, assurance, and

empathy) recommended in SERVQUAL model containing 20 statements.
The responses of 300 business graduates were taken on five-point Likert
rating scale. The collected data was analyzed by frequencies, mean, t-test,
one-way ANOVA and independent sample t-test. The conclusion of the
study states that there is room to improve the quality of services and
customer satisfaction to survive in competitive environment. Therefore,
institutions may improve their services in the light of discussed dimensions
of SERVQUAL according to the perceptions of major stakeholder- that is
student. The research did not provide any suggestion or recomendation to
improve quality of services and customer satisfaction in business schools.
Research in Vietnam
The Authors Khuc Van Quy anh Tran Van Bao (2016) have done a
meticulous study aimed at evaluating the student’s satisfaction level (SSL) in
education quality at Vietnam National University of Forestry (VNUF), a
leading university for generating high-quality human resources in the field of
forestry of the country. The study team used questionnaires to gather data
from 345 students, at the main campus in Hanoi capital and at the second
campus in Dong Nai province, in August and September 2015. The Explorary
Factor Analysis (EFA) method and Linear Regression (LR) model were
employed to determine the factors influencing SSL. The results have shown
that the student’s satisfaction in education quality at VNUF is fairly high,

4


getting GPA of 3.47/5; lecturers, study environment and student’s services are
of three most important factors affecting the student’s satisfaction.
The Authors Le Duc Tam and Tran Danh Giang (2013) designed a
research to determine relationship between the components of the training
service quality and satisfaction of students in Central University of

Construction through the steps of descriptive statistics, reliability evaluation
by Cronbach’s alpha coeffi cient and explore factor analysis method - EFA
and multiple regression method. The study applies both qualitative and
quantitative approaches. Based on a survey sample of 250 students are
studying in the university, the result shows that there are five components of
the training service quality have a positive impact on the satisfaction of the
student: the lecturers group, training program, the facilities for training, the
university’s interest to students, the administrative support. The limitation of
the study is that it has not compared the quality of Central University of
Construction to other universities.
Authors Do Minh Cuong and Mac Van Tien have studied the
development of technical labor in Vietnam - Theory and practice. In this
study, the authors mentioned the need to train Vietnamese technical workers
to meet the requirements of industrialization and modernization of the
country. Contents of the study mentions to renovating teaching programs,
increasing investment in equipment and technologies suitable to equipment
and technologies of production, raising the quality and standardization of the
contingent of teachers; renovating the method of inspection and evaluation,
quality assurance of vocational schools.
Bui Thi Thanh Huong, Nguyen Thi Thu Ha, and Nguyen Van Huy
(2016) conducted a research is to find the solutions of quality improvement
for selected leading universities in the North of Vietnam. The authors

5


collected data from parents, staffs, government officer, industrial experts, etc.
This study used Likert scale of five. From the results of hypotheses, the
author found the relationships among variables. Based on that point of view,
the author proposed general recommendations to Teacher to consider the

students as the center of education. From that point of view, they have to
improve their knowledge and skill to train their students in the best way.
Changing new teaching methods and updating modern technology are
necessary in teaching activities. They ought to take the chances of studying
abroad and business trips. In addition, they should encourage students to enter
competitions or internships. They have to be a good example for the students
to follow. In Vietnam, the distance between the teacher and the student is still
quite far because of their culture, so teachers ought to make that distance
closer to understand students’ real needs.
3. Aims of research
Aims of research is giving the recommendations to HCC enhance
customer satisfaction with training services through increasing its quality.
In order to suit with these aims, my thesis give the below missions of
research:
-

Literature review the previous research on customer satisfaction

with training service quality in training programs.
-

Systematize the basic theories of service, service quality, training

service, customer satisfaction, relationship between service quality and
customer satisfaction.
-

Study the service quality measurement models, thereby selecting a

suitable model for measuring training service quality and customer

satisfaction evaluation.

6


-

Survey and analyze the status of training service quality and

customer satisfaction of HCC by the selected model. Limited success
evaluation and cause.
-

Give some recommendations to improve the quality of training

services for HCC and enhance customer satisfaction with the service.
4. Objects of research
Objects of research are training service quality and customer
satisfaction with this service in HCC.
5. Scope of research
-

Scope of contents: customer satisfaction and service quality of

training programs.
-

Scope of space: Center for Management Training & Consultancy,

Hanoi School of Business and Management, Vietnam National University

Hanoi
-

Scope of time: Secondary data used in the last four years from

2013-2014, Questionnaires were surveyed in 2017.
-

Scope of sample: Individual customers using training services of

HCC, with 445 questionnaires.
6. Research methodology
Data collection method
* Secondary Data Collection: The thesis will use some documents as
well as information about customer satisfaction and service quality from
books, dissertations, magazines, the internet.
* Primary data collection: Primary data collection methods are
surveys, expert interviews, observations. In addition, synthetic analytical
methods will be applied.
The questionnaire survey is the most important method in the study,
which is described in detail as follows:
7


-

Sampling:



Sample size: 445 by random sampling



Sampling objects: HCC’s individual customers who attend training

programe provided by the center.
-

Design of questionnaires: Questionnaires are designed to be in line

with the objectives of the thesis and theoretical framework in a clear and
concise manner. To ensure accuracy, the questionnaire will be designed
according to the following process:


Based on research objectives and frameworks to identify the

information needed: factors, variables and metrics;


Determine the type of question;



Determine the content of each question and logic of the questions

based on the evaluation forms currently used at HCC, consultancy of the
director of the center and expert interviews from the director of the center and
cusomers who working in training department of customers’ companies.



Draft questionnaires;



Submit a questionnaire to the instructor;



Instructors guide, review, and agree to conduct the investigation;



Ruler: use Likert's measure of 5 levels from the least to the most.

- Basic contents of the questionnaire:


Introduction: the author's name, the topic name, the main contents

to be surveyed.


Assessment of training service quality of HCC according to the

developed research model.
Data analysis method
The dissertation uses two methods of data analysis: qualitative and
qualitative.

8


* Quantitative methods
- Statistical aggregation: Collected data and information collected,
selected and statistical information needed.
- Comparison: After collecting and analyzing the necessary data,
comparison will be made over time.
- Processing survey data using SPSS software 23.0
Cronbach Alpha
Assess the scale reliability by using the Cronbach Alpha coefficient.
Variables with an item-total correction factor less than 0.3 will be excluded
and the criterion of scale selection is that it has Cronbach Alpha reliability of
0.6 or higher (Nunnally & Bernstein, 1994). In this study, Cronbach Alpha
must be from 0.6 to be retained.
EFA analyze
EFA analysis is a technique used to shrink and summarize data. This
method is useful for identifying variable sets that are needed for research and
are used to find relationships between variables. In the exploratory factor
analysis, KMO (Kaiser-Meyer - Olkin) value is the index used to determine
the appropriateness of factor analysis. The KMO value must be between 0.5
and 1, and this analysis is appropriate, and if the value is less than 0.5, factor
analysis may not be appropriate for the data.
One-sample T-test
Carry out the customer's assessment of HCC's retail credit quality
standards by One-sample T Test.
With Hypothesis:
- H0: Mean value = test value
- H1: Average value is different from the test value

If:

9


+ Significance level of observation (sig.) > 0.05 is not sufficiently
rejected. Hypothesis H0 should accept Hypothesis H0, which means that the
mean value is different from the test value.
+ Significance of observation (sig.) <0.05 is sufficient basis to reject
Hypothesis H0 and accept Hypothesis H1, meaning that the mean value is
different from the test value.
* Qualitative method
Using qualitative research methods, interviewing some friends,
relatives and customers who have used training services at HCC as well as
other training organizations. Interview content will be recorded and
synthesized as a basis for designing the questionnaire, in addition to
consultation with some staff at HCC. In addition, methods of statistical
analysis, statistical analysis, compilation and comparison will also be used in
the dissertation.
7. Thesis structure
In addition to the introduction, conclusion, references, appendixes; the
contents of the dissertation is divided into three chapters:
- Chapter 1: Theoretical background on customer satisfaction with
training service quality.
- Chapter 2: Assessing the situation of customer satisfaction with
training service quality in the Center for Management Training and
Consultancy.
- Chapter 3: Proposal on solutions to enhance customer satisfaction
with training service quality in the Center for Management Training and
Consultancy.

10


CHAPTER 1. THEORETICAL BACKGROUND ON CUSTOMER
SATISFACTION WITH TRAINING SERVICE QUALITY
1.1. Basic concepts
1.1.1. Training service
 Services
Kotler and Armstrong (2004) defined "Service is any act or interest that
one party may provide to another that is essentially intangible and not Bring
possession at all". According to Lewis and Booms (1983), "Service is a
measure of how well the service delivered to the customer is commensurate
with the expectations of the customer. Creating a quality service means
responding to customer expectations in a consistent way". This statement
clearly demonstrates that the service quality relates to the expectations of
customers and their perception of the service. Parasuraman (1991) explains
that in order to know the customer's perception, it is best to identify and
understand their expectations. Developing a system that addresses customer
expectations is essential.
In the thesis, the author selected and proposed the definition of service
according to Lewis and Booms (1983), "Service is a measure of how well the
service delivered to the customer is commensurate with the expectations of
the customer. Creating a quality service means responding to customer
expectations in a consistent way"
 Training
According to Wayne F Cascio (2017), training consists of planned
programme designed to improve performance at the individual, group, and /or
organizational levels. Improved performance, in turn, implies that there have
been measurable changes in knowledge, skills attitude, and/or social behavior.

11


According to C B Memoria (2000), training is a process of learning a
sequence of programmed behavior. It is application of knowledge and it
attempts to improve the performance of employee on the current job and
prepares them for the intended job. Training is a short term process utilizing a
systematic and organized procedure by which non managerial personnel
acquire technical knowledge and skills for a definite purpose. Training refers
to instructions in technical and mechanical operations, like operation of some
machine/equipment. Training is for a specific job related purpose.
Training is about developing people as an individual and helping them
to become more confident and competent in their lives and in their jobs. The
learning process is at the core of training and the ways of and opportunities
for learning are numerous and varied.
 Training services
Mentioning to training service concept, the author is unable to find
any definition about this concept. There is still a discussion about whether
training course is a commodity and its market characteristics. Although there
are many different opinions, many have agreed that, with the guideline of
learner-centered, training organizations should treat their learner as their
customers, specially in the context of the current competitive training market.
1.1.2. Service quality
There are various definitions of service quality, according to Lehtinen
(1982), that service quality must be assessed on two aspects: (1) service
delivery and (2) service outcome. According to Gronroos (1984), the
definition of service quality includes two components of service quality: (1)
technical quality and (2) service quality. In that service quality relates to what
is served and functional quality tells how they are served.

12


Parasuraman, Zeithaml, and Berry (1985, 1988) define service quality
as the distance between service expectations and customer perception when
using the service. The author Luu Van Nghiem (2001) argues that service
quality is the level of customer satisfaction in the process of perception and
consumption of services, which is the integrated service of enterprises which
bring the whole chain of benefits and satisfaction. The maximum value
expected by the customer in the production of the supply and in the
distribution of output services.
Service quality is the most influencing factor for customer satisfaction
(Cronin and Taylor, 1992; Yavas et al., 1997; Ahmad and Kamal, 2002). If a
service provider gives customers quality products that meet their needs, then
that business has initially made the customer happy.
In the thesis, the author selected and proposed the definition of service
quality according to Parasuraman, Zeithaml, and Berry (1985, 1988) defining
service quality as the distance between service expectations and customer
perception when using the service
1.1.3. Customer satisfaction
According to Kotler and Keller (2006), satisfaction is the level of a
person's sense state that results from comparing the perception of a product to
his or her expectations.
According to (Bateson & Hoffman 2000.), customer satisfaction is the
result of the correlation between a customer’s assumption and a customer’s
feelings. By way of explanation, customer satisfaction is identified as the
distinction between assumed quality of service and the customer’s
involvement or feelings after having perceived the service. Customer
satisfaction depends on such dimensions as assurance, responsiveness,

reliability, empathy and tangibles, and further components such as personal,
price and situational factors that may arise as the service quality.
13


Customer satisfaction is the cornerstone of the marketing concept of
satisfying customers' needs and desires. A satisfied customer is an important
factor for maintaining long-term business success and appropriate business
strategies to attract and retain customers. Satisfaction is the level of a person's
sense state that results from comparing the perception of a product to his or
her expectations. Accordingly, there are three levels of satisfaction:
- If the customer's perception is smaller than expected, the customer
feels dissatisfied.
- If the expectations, the customer feel satisfied.
- If the perception is greater than expected, the customer will feel
satisfied or amused.
1.2. Service quality and customer satisfaction
The relationship between service quality and customer satisfaction has
been the subject of continuous discussion among researchers over the past
decades. Customer satisfaction is a general concept that expresses their
satisfaction when consuming a service, but also refers to the service quality
that is concerned with the specific components of the service (Zeithaml &
Bitner, 2000). That is, service quality - determined by various factors - is a
decisive factor of satisfaction (Parasuraman, 1985, 1988). Some authors argue
that the service quality and customer satisfaction are coincidental so that these
two concepts can be used interchangeably. However, many studies have
shown that service quality and customer satisfaction are two distinct concepts.
Parasuraman et al. (1993) argue that there are some differences between
service quality and customer satisfaction, the main difference being the "cause
and effect". Zeithalm and Bitner (2000) claim that customer satisfaction is

influenced by many factors such as: product quality, service quality, price,
situational factors, personal factors.

14


Service quality and satisfaction are two different but closely related
concepts in service research (Parasuraman et al. 1988). Previous studies have
shown that service quality is the cause of satisfaction (Cronin and Taylor,
1992; Spreng and Taylor, 1996). The reason is that service quality is related
to service delivery, and satisfaction is measured only after service has been
used.
Customer satisfaction as a result, service quality as a cause, satisfaction
is predictive nature, expectations; Service quality is an ideal standard.
Customer satisfaction is a general concept, expressing their satisfaction when
consuming a service. While service quality focuses on specific components of
service (Zeithaml & Bitner, 2000). Although service quality and satisfaction
are interrelated, few studies focus on verifying the level of interpretation of
service quality components for satisfaction, particularly for each. Service
sector specific (Lassar et al., 2000). Cronin and Taylor testified this
relationship and concluded that the service quality resulted in customer
satisfaction. Studies have concluded that service quality is a precondition for
satisfaction (Cronin and Taylor, 1992; Spreng, 1996) and is a major factor in
satisfaction (Ruyter and Bloemer, 1997).
As such, service quality is a factor that greatly affects customer
satisfaction. If a service provider gives customers quality products that meet
their needs, that network provider is initially making the customer happy.
Therefore, to improve customer satisfaction, service providers must improve
service quality. In other words, service quality and customer satisfaction are
closely interrelated, in which the service quality is what precedes and decides

customer satisfaction. The causal relationship between these two factors is a
key issue in most studies of customer satisfaction. If the quality is improved
but not based on the needs of the customer, then the customer will never be
satisfied with the service. Therefore, when using the service, if customers feel
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