The Relationship among Social Environment, Perceived Value, Customer Satisfaction and Repurchase Intention in Ice Cream Franchise ZHENYI QIN A Thesis Submitted in Partial Fulfillment of the Requirements For the Degree of Master of Business Administration International College University of the Thai Chamber of Commerce 2016 Copyright by University of the Thai Chamber of Commerce THESIS APPROVAL INTERNATIONAL COLLEGE Master of Business Administration Degree International Business Major Field Title The Relationship among Social Environment, Perceived Value, Customer Satisfaction and Repurchase Intention in Ice Cream Franchise ZHENYI QIN 2016 Name Graduation Year Accepted by International College, University of the Thai Chamber of Commerce in Partial Fulfillment of the Requirements of the Master’s Degree. Dean, International College (Dr. Jakarin Srimoon) Chaiperson (Dr. Nattapan Buavaraporn) Thesis Advisor (Dr. Panita Surachaikulwattana) Committee (Dr. Thanathorn Vajirakachorn) Committee (Dr. Suthawan Chirapanda) External Committee (Assistant Professor Dr. Prattana Punnakitikashem) Thesis Title The relationship among social environment, perceived value, customer satisfaction and repurchase intention in ice cream franchise. Name Zhenyi Qin Degree Master of Business Administration Major Field International Business Thesis Advisor Dr. Panita Surachaikulwattana Graduate Year 2016 ABSTRACT Customer repurchase is good news for business and customer satisfaction is an important factor that affects repurchase. It is therefore important to understand the relationship between customer satisfaction and repurchase intention in franchise business. This research aims to explore the relationship between customer satisfaction and repurchase intention in ice cream franchise business. Primary data used in the study and questionnaire was used as a tool to collect data in Bangkok, Thailand. Using the simple random sampling method, the sample size of this paper is 400. Questionnaires were distributed in shopping malls to customers who had had consumption experience in ice cream franchise stores. For data analysis, SPSS program was used in descriptive analysis, level of agreement analysis, Reliability and Validity analysis. The Structure Equation Modeling (SEM) is used to examine the hypothesis, and the structure relationship was analyzed using the AMOS program I The finding presented that social environment is positively related to customer satisfaction and repurchase intention. Perceived value affects customer satisfaction and repurchase intention. Also there is a positive relationship between perceived value and repurchase intention. The result of this research provides information to ice cream franchise, suggesting that cafe format ice cream franchise can improve social environment, provide good service and product to meet customer satisfaction and attract customer repurchase. II ACKNOWLEDGEMENTS I would like to express my gratitude to everyone who has contributed to help me in one way or another so I could complete my thesis. First of all, I want to express my deepest gratitude to my supervisor Dr. Panita Surachaikulwattana who has offered me much valuable suggestions for the thesis. With much patience and kindness, she gave me good suggestions and advice so I could come up with a clear research topic, took time and effort to read my paper and provided valuable advice in the whole process of my thesis. Without her expert guidance I would not have been able to complete this paper. Secondly, I would like to express my gratitude to Dr. Nattapan Buavarapotn for introducing my thesis advisor to me and for providing many valuable suggestions for my thesis. Also, I would like to express my thanks to other professors, Dr. Thanathorn Vajirakachorn, Dr. Suthawan Chirapanda and Assistant Professor Dr. Prattana Punnakitikashem, who provided many valuable comments and advice for my thesis. I wish to give special thanks to Mr. Fanmeng Kong, who taught me how to use the Amos program. And thanks to Ms. Michelle Goh, who spent a lot of time helping to correct my writing mistakes. Lastly, I would like to thank my family for their constant encouragement during this whole process and also my friends who helped to collect the questionnaires. I TABLE OF CONTENTS ABSTRACT….………………………………………………………………….…. II ACKNOWLEDGEMENTS………………………………………………….……....II TABLE OF CONTENTS……………………………………………………….…... IV LIST OF TABLES………………………………………………………...……........IX LIST OF FIGURES………………………………………………………………......XI CHAPTER 1 1 1.1 Backgroud 2 1.1.1 Franchise Introduction 2 1.1.2 Franchises in Thailand 3 1.1.3 Ice Cream Franchise in Thailand 4 1.2 Cafe Format Ice Cream Franchise in Bangkok 5 1.3 Statement of the problem 6 1.4 Significance of study 7 1.5 Expected benefit of study 7 1.6 Research Objectives 8 1.7 Research Questions 8 1.8 Operational Definitions 8 II TABLE OF CONTENTS (Continued) CHAPTER 2 11 2.1 Related Theory and Literature Review 12 2.1.1 Franchise business 12 2.1.2 Perceived value 14 2.1.3 Social environment 20 2.1.4 Customer Satisfaction 23 2.1.5 Repurchase intention 26 2.1.6 Service quality and SERVQUAL 28 2.1.7 The relationship between perceived value and customer satisfaction 29 2.1.8 The relationship between social environment and customer satisfaction 30 2.1.9 The relationship between customer satisfaction and repurchase intention 32 2.1.10 The relationship between social environment and repurchase intention 33 2.1.11 The relationship between perceived value and repurchase intention 33 2.2 Conceptual Framework of Research 34 2.3 Hypotheses 35 III TABLE OF CONTENTS (Continued) CHAPTER 3 36 3.1 Research Design 37 3.2 Population and sample 37 3.2.1 Population 37 3.2.2 Sample size 38 3.3 Data Collection 38 3.3.1 Tools 38 3.3.2 Data collection method 44 3.4 Data analysis 46 3.4.1 Level of agreement analysis 46 3.4.2 Descriptive analysis 47 3.4.3 Confirmatory factor analysis (CFA) 47 3.4.4 Correlation and Discriminant validity analysis 48 3.4.5 Hypothesis testing 48 CHAPTER 4 50 4.1 Reliability and Validity 51 4.1.1 Reliability 51 4.1.2 Validity 53 IV TABLE OF CONTENTS (Continued) 4.2 Descriptive of demographic characteristics 57 4.3 Level of agreement analysis 61 4.4 Confirmatory factor analysis 53 4.4.1 Confirmatory factor analysis of social environment 54 4.4.2 Confirmatory factor analysis of perceived value 57 4.4.3 Confirmatory factor analysis of customer satisfaction 59 4.4.4 Confirmatory factor analysis of repurchase intention 61 4.5 Correlation and Discriminant validity analysis 63 4.6 Hypothesis testing 64 4.6.1 Model fit test 66 4.6.2 Hypothesis test 67 4.7 Summary of hypotheses 69 CHAPTER 5 71 5.1 Conclusion 72 5.1.1 Demographic 72 5.1.2 Level of agreement 73 5.1.3 Confirmatory factor analysis 75 V TABLE OF CONTENTS (Continued) 5.1.4 Hypothesis testing 76 5.2 Discussion 78 5.2.1 Research model 78 5.2.2 Perceived Value, Customer Satisfaction, Repurchase Intention 81 5.2.3 Social Environment, Customer Satisfaction, Repurchase Intention 83 5.3 Implications of study 86 5.4 Limitations of study 88 5.5 Recommendations for future research 89 REFERENCE 90 APPENDICES I 116 APPENDICES II 126 VI LIST OF TABLES Table 1. 1 Summary of Thai Franchises 4 Table 1. 2 Cafe format ice cream franchises in Bangkok 6 Table 3. 1 Summary of questionnaire design of demographic 39 Table 3. 2 Summary of questionnaire design of service employee 40 Table 3. 3 Summary of questionnaire design of customer climate 40 Table 3. 4 Summary of questionnaire design of product 41 Table 3. 5 Summary of questionnaire design of price 41 Table 3. 6 Summary of questionnaire design of service quality 41 Table 3. 7 Summary of questionnaire design of physical environment 42 Table 3. 8 Summary of questionnaire design of image 42 Table 3. 9 Summary of questionnaire design of customer satisfaction 43 Table 3. 10 Summary of questionnaire design of repurchase intention 44 Table 3. 11 Questionnaire collection plan 46 Table 3. 12 Definition of Index 49 Table 4. 1 Reliability test using Cronbach’s alpha 52 Table 4. 2 KMO and Bartlett’s Test 54 Table 4. 3 Total Variance Explained 55 Table 4. 4 Rotated Component Matrix 56 Table 4. 5 Descriptive analysis of gender 57 Table 4. 6 Descriptive analysis of Age 58 Table 4. 7 Descriptive analysis of education level 58 VII LIST OF TABLES (Continued) Table 4. 8 Descriptive analysis of occupation 59 Table 4. 9 Descriptive analysis of monthly income 60 Table 4. 10 Descriptive analysis of brand of ice cream franchise 61 Table 4. 11 Level of agreement 65 Table 4. 12 Fit test of social environment 55 Table 4. 13 Modification indicates of model social environment 55 Table 4. 14 Fit test of social environment after adjustment of model 56 Table 4. 15 Estimates model of social environment 56 Table 4. 16 Fit test of perceived value 58 Table 4. 17 Estimates model of perceived value 58 Table 4. 18 Fit test of customer satisfaction 60 Table 4. 19 Estimates model of customer satisfaction 60 Table 4. 20 Fit test of repurchase intention 61 Table 4. 21 Modification indicates of model repurchase intention 62 Table 4. 22 Fit test of repurchase intention after adjustment of model 62 Table 4. 23 Estimates model of repurchase intention 63 Table 4. 24 Analysis of discriminant validity and correlation 64 Table 4. 25 Fit test of conceptual framework 66 Table 4. 26 Result of hypothesis testing 67 Table 4. 27 Summary result of hypothesis test 69 VIII LIST OF FIGURES Figure1.1 Ice cream franchise proportion in beverage & ice cream franchise sector 5 Figure2.1 Customer Satisfaction Index Model 25 Figure2.2 The relationship between social environment, service satisfaction and behavior intention 31 Figure 2.3 Conceptual framework 35 Figure 4. 1Confirmatory factor analysis of social environment 54 Figure 4. 2 Confirmatory factor analysis of social environment after adjustment 55 Figure 4.