SATISFACTION IN BUSINESS-TO-BUSINESS: THE CASE OF READY-MIX CONCRETE INDUSTRY IN VIETNAM

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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SATISFACTION IN BUSINESS-TO-BUSINESS: THE CASE OF READY-MIX CONCRETE INDUSTRY IN VIETNAM

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. Vo Thi Ngoc Thuy

Table of Contents

ACKNOWLEDGEMENT……………………………………………………………………………………….. 3

ABSTRACT…………………………………………………………………………………………………………….. 4

LIST OF TABLES…………………………………………………………………………………………………… 5

LIST OF FIGURES…………………………………………………………………………………………………. 6

Chapter 1…………………………………………………………………………………………………………………. 7

INTRODUCTION……………………………………………………………………………………………………. 7

Ready-Mix Concrete industry in Vietnam………………………………………………………… 7
Service Quality and Customer Satisfaction in B2B context………………………………… 9
Research Objectives……………………………………………………………………………………….. 11
Scope of the research……………………………………………………………………………………… 12
Expected contributions of research…………………………………………………………………. 12
Organization of thesis…………………………………………………………………………………….. 13

Chapter 2……………………………………………………………………………………………………………….. 14

LITERATURE REVIEW AND HYPOTHESES…………………………………………………….. 14

Literature review…………………………………………………………………………………………… 14
Service experience……………………………………………………………………………………….. 14
Service Quality……………………………………………………………………………………………. 16
Customer Satisfaction………………………………………………………………………………….. 27

2.2.     Research Model and Hypotheses……………………………………………………………………. 31

Chapter 3……………………………………………………………………………………………………………….. 36

RESEARCH METHOD…………………………………………………………………………………………. 36

Quantitative research: Pre-test……………………………………………………………………….. 36
Quantitative research: Main survey……………………………………………………………….. 37
Measurement scales…………………………………………………………………………………….. 37
Sampling……………………………………………………………………………………………………. 40
Data analysis………………………………………………………………………………………………. 42

Chapter 4……………………………………………………………………………………………………………….. 46

DATA ANALYSIS AND RESULTS………………………………………………………………………. 46

Data statistical analysis…………………………………………………………………………………… 46
Identifying and addressing outliers…………………………………………………………………. 47
Cronbach’s Alpha coefficient of reliability test………………………………………………… 48
Exploratory Factor Analysis (EFA) result………………………………………………………. 48
Research Model test……………………………………………………………………………………….. 50
Multiple regression………………………………………………………………………………………. 51
Chow test for moderating effect…………………………………………………………………….. 56

Chapter 5……………………………………………………………………………………………………………….. 60

DISCUSSION AND CONCLUSIONS…………………………………………………………………….. 60

Discussion of research results…………………………………………………………………………. 60
Contribution and managerial implications for the research……………………………… 63
Contribution for the research………………………………………………………………………… 63
Managerial implications of the research……………………………………………………….. 64
Limitations and directions for further research………………………………………………. 64
Conclusions…………………………………………………………………………………………………… 66

REFERENCES………………………………………………………………………………………………………. 67

APPENDIX……………………………………………………………………………………………………………. 73

 

ACKNOWLEDGEMENT

 

Foremost, I would like to express my sincere gratitude to my supervisor Dr. Vo Thi Ngoc Thuy for her continuous support, for her patience, motivation, enthusiasm, and immense knowledge. Her guidance helped me over the time of research and writing this master thesis.

Besides my supervisor, I would like to thank the ISB Research Committee: Prof. Nguyen Dinh Tho, Prof. Nguyen Dong Phong, Prof. Nguyen Thi Mai Trang, Prof. Nguyen Thi Nguyet Que and Prof. Tran Ha Minh Quan, for their encouragement and insightful comments.

My sincere thanks also go to all of respondents, without whom, this research would have been impossible.

ABSTRACT

This study empirically examines the different impacts of B2B Service Quality’s determinants on Customer Satisfaction in Vietnam Ready-Mix Concrete industry and explores the moderating role of Ready-Mix Concrete Company Type variable on these relationships. Whereby, it provides a comparison of these impacts extent between two types of Ready-Mix Concrete Company, local company and foreign company. Chow test was used to test these impacts, utilizing a sample of 122 industrial customers of three Ready-Mix Concrete Companies.

The results indicate that all determinants of B2B Service Quality including Potential quality, Hard process quality, Soft process quality, Output quality and Buyer-supplier relationship quality play important role in explaining Overall Customer Satisfaction toward Ready-Mix Concrete service. Furthermore, the results also support that Read- Mix Concrete Company type moderates the relationship between each determinant of B2B Service Quality and Overall Customer Satisfaction. Accordingly, that degree of Overall Customer Satisfaction for Foreign Company is higher than Local Company is appropriate with the current situation in Vietnam Ready-Mix Concrete service. Indeed, it is a meaningful implication for manager in contributing into cost leadership strategy in case he has to make decision on selecting best solution for service quality improvement with limited budget.

The research findings also engage with some limitations in the strength of measurement scale, the sampling method as well as the fitness between the research model and data which results in the valuable directions for further researches in future.

LIST OF TABLES

Table 2.1 – B2B Service quality determinants over the time………………………………………….. 20

Table 4.1 – Descriptive statistics of multiple regression………………………………………………… 51

Table 4.2 – Inter-correlations……………………………………………………………………………………. 52

Table 4.3 – Model Summary……………………………………………………………………………………… 53

Table 4.4 – ANOVA………………………………………………………………………………………………… 53

Table 4.5 – Coefficients……………………………………………………………………………………………. 54

Table 4.6 – Group Statistics………………………………………………………………………………………. 56

Table 4.7 – Summary table for Chow test…………………………………………………………………… 59

 

LIST OF FIGURES

 

Figure 1.1 – B2B Service quality determinants over the time………………………………….. 8

 

Figure 2.1 – Measurement dimensions in SERVQUAL and INDSERV……………………. 21

 

Figure 2.2 – The conceptual framework and its dimensions displayed in middle column    26

 

Chapter 1 INTRODUCTION

1.1.            Ready-Mix Concrete industry in Vietnam

 

In this era of intense competition and difficult economic environment, all industries in Vietnam have faced many challenges. It is no doubt that construction area in generally and Ready-Mix Concrete industry in specifically is in the same situation. In today’s global marketplace, the key to sustainable competitive advantage lies in delivering service with high quality that will in turn result in customer satisfaction (Shemwell et al., 1998).

Concrete is a mixture of three basic ingredients: sand, gravel (crushed stone) and Ready-Mix Concrete, as well as chemical compounds known as admixtures. Combining this mixture with water causes the Ready-Mix Concrete to undergo an exothermic chemical reaction called hydration, turning Ready-Mix Concrete into a hard paste that binds the sand and gravel together. Moreover, ready-mix concrete is concrete mixed with water at a plant and transported directly to a construction site. Ready-Mix is a perishable product that needs to be delivered within an hour and a half before it becomes too stiff to be workable (Alan, 2010).

Figure 1.1: Ready-Mix Concrete Supply Chain

Ready Mixed Concrete is also referred as the customized concrete products for commercial purpose. The  Ready-mix Concrete  Company offer  different  concrete according to user’s mix design or industrial standard.

Associate with the growth of Ready-Mix Concrete companies in Vietnam in quantity and quality, customers have more choices for their experiencing services. Although almost these companies aim to serve the construction industry better, to offer high quality products, comprehensive solutions and services to many projects from individual houses to large projects (Insights, 2013), customers complaints are unavoidable. At every turn, customers are assessing how the company performance as an insurance provider matches their expectations. To be able to compete better in the market, most of Ready-Mix Concrete companies are trying to observe customers satisfaction level and then improve their service quality.

SATISFACTION IN BUSINESS-TO-BUSINESS

TRUNG TÂM LUẬN VĂN MBA-VIP VIẾT THUÊ LUẬN VĂN THẠC SĨ & TIẾN SĨ CHẤT LƯỢNG CAO.

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