Department of Business Management I-Shou University
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DEPARTMENT OF BUSINESS MANAGEMENT I-SHOU UNIVERSITY MASTER THESIS EVALUATING CUSTOMER LOYALTY IN BIG C SUPERMARKET IN HO CHI MINH CITY ADVISOR: Dr. LIOU JIN- PIN ADVISOR: Dr. HO SY TAN GRADUATE STUDENT: LE TU PHUONG QUANG January, 2016 ACKNOWLEDGEMENT First of all, I would like to thank all the professors of I-Shou University, Hong Bang University and University of Electricity for their teaching and support for the last two years of my MBA course. In particular, I would like to thank Dr. Liu Jin Pin and Dr.Ho Sy Tan for being my thesis advisors. Their knowledge and advices are essential for me to finish my thesis. I also want to thank my classmates for the wonderful experience in class and in life they have shared with me. I believe that the time with them in this master class is just a beginning of a sustaining relationship in the future. Last but not least, I would like to thank my family members who have supported and motivated me to pursuit and finish this course. Thank you very much! i ABSTRACT Together with the development of world economy, during the recent years, consumer psychology has been changing. Many people are likely to go shopping in supermarkets rather than traditional markets due to its safety and service quality. Therefore, at present, in Ho Chi Minh City, there are several big supermarkets operating such as Co-op Mart, Maximark, Citimart, Big C… Big C superstore joined the market quite later than others did. To compete against other existing supermarkets as well as to meet demands of more difficult customers, a matter affecting the development of this supermarket is to research customer loyalty, affecting factors and methods to improve loyalty, and more importantly, it is the loyalty toward service quality of the supermarket. This study aims to explore customer loyalty at BigC Supermarket in Ho Chi Minh City. Result shows that most customers feel satisfied and have good assessment on the supermarket. However, there are still customers who have not been satisfied with the supermarket in some aspects such as quality of goods, types of goods, serving attitude. Keywords: supermarket, customer’s loyalty, quality, attitude, service ii TABLE OF CONTENT ACKNOWLEDGEMENT ....................................................................................................... i ABSTRACT ............................................................................................................................ ii TABLE OF CONTENT ........................................................................................................ iii LIST OF TABLES ................................................................................................................. vi LIST OF FIGURES .............................................................................................................. vii CHAPTER 1 INTRODUCTION ............................................................................................ 1 1.1 REASONS FOR THE RESEARCH ............................................................................. 1 1.2 RESEARCH QUESTIONS AND RESEARCH OBJECTIVES ................................... 2 1.2.1 RESEARCH QUESTIONS ..................................................................................... 2 1.2.2 RESEARCH OBJECTIVES ................................................................................... 2 1.3 SCOPE AND SUBJECTS OF THE RESEARCH ........................................................ 2 1.3.1 SCOPE OF RESEARCH ........................................................................................ 2 1.3.2 SUBJECTS OF RESEARCH .................................................................................. 2 1.4 STRUCTURE OF THE THESIS .................................................................................. 2 CHAPTER 2 LITERATURE REVIEW ................................................................................. 3 2.1 OVERVIEW OF RESEARCH TOPIC ......................................................................... 3 2.1.1 CUSTOMER THEORY .......................................................................................... 3 2.1.2 THEORY OF LOYALTY ...................................................................................... 4 2.1.2.1 DEFINITION OF LOYALTY .......................................................................... 4 2.1.2.2 LOYALTY HIERARCHY ............................................................................... 4 2.1.2.3 STRATEGIC VALUE OF LOYALTY ............................................................ 5 2.1.2.4 LOYALTY TOWARDS SUPERMARKET .................................................... 6 2.1.3 SERVICE QUALITY ............................................................................................. 8 2.1.4 THEORY OF SUPERMARKET ............................................................................ 9 2.1.4.1 DEFINITION OF SUPERMARKET ............................................................... 9 iii 2.1.4.2 SERVICE QUALITY AT SUPERMARKETS ................................................ 9 2.2 PRACTICAL FOUNDATION ...................................................................................... 9 2.3 OVERVIEW OF BIG C SUPERMARKET – HO CHI MINH CITY ........................ 11 2.3.1 FEATURES........................................................................................................... 11 2.3.2. PRODUCTS OF BIG C SUPERMARKET ......................................................... 11 2.3.3. BIG C SUPERMARKET AT HO CHI MINH CITY .......................................... 12 CHAPTER 3 RESEARCH METHODS ............................................................................... 13 3.1 DATA COLLECTION ................................................................................................ 13 3.2 SAMPLING METHOD............................................................................................... 13 3.3 DATA ANALYSIS METHOD ................................................................................... 14 CHAPTER 4 RESEARCH RESULT ................................................................................... 16 4.1 Research subjects description ...................................................................................... 16 4.2 Assessment on the customer loyalty towards Big C Ho Chi Minh City ..................... 17 4.2.1 Evaluating scale by Cronbach’s Alpha coefficient ............................................... 17 4.2.2 Criteria that influence the selection of supermarket ............................................. 21 4.2.3 Assessment on the satisfaction of customers with Big C supermarket ................. 23 4.2.4 General perceived quality ..................................................................................... 28 4.2.5 Assessment on the switching barrier against the competitive supermarkets ........ 30 4.2.6 Consumer trend ..................................................................................................... 31 CHAPTER 5 CONCLUSION& RECOMMENDATIONS .................................................. 35 5.1 Orientation ................................................................................................................... 35 5.2. Solutions ..................................................................................................................... 36 5.2.1 Solutions on products ............................................................................................ 36 5.2.2 Solutions on service quality .................................................................................. 39 5.3 Conclusion .................................................................................................................. 40 5.4 Recommendations ....................................................................................................... 41 iv REFERENCES ..................................................................................................................... 43 APPENDIX QUESTIONNAIRES ....................................................................................... 46 v LIST OF TABLES Table 4.1: Cronbach’s Alpha of “Goods” factor .................................................................. 17 Table 4.2: Cronbach’s Alpha of “Supermarket display” factor ............................................ 18 Table 4.3: Cronbach’s Alpha of “Employee team” factor .................................................... 19 Table 4.4: Cronbach’s Alpha of “Supermarket premises” factor ......................................... 19 Table 4.5: Cronbach’s Alpha of “Supermarket safety” factor .............................................. 20 Table 4.6: Cronbach’s Alpha of other factors....................................................................... 20 Table 4.7: Most favorite supermarket ................................................................................... 21 Table 4.8: Testing the mean of the results of customers’ assessment on the importance of factors when selecting supermarket ...................................................................................... 21 Table 4.9: Testing the satisfaction of customers with Big C’s factors ................................. 23 Table 4.10: Test results of the difference between customer groups with 3 factor groups of goods, employees and supermarket premises ....................................................................... 26 Table 4.11: Test results of the difference between customer groups with 3 factor groups of supermarket