DETERMINANTS OF CUSTOMER SATISFACTION.

AN EMPIRICAL STUDY IN FAST FOOD FRANCHISES IN

HO CHI MINH CITY

In Partial Fulfillment of the Requirements of the Degree of

MASTER OF BUSINESS ADMINISTRATION
In International Business

Students name: LE NGOC HONG BUU (MBA03005)

Advisor: NGUYEN VAN PHUONG, Ph.D

Ho Chi Minh City, Vietnam

2013
International University - Vietnam National University HCMC

DETERMINANTS OF CUSTOMER SATISFACTION.

AN EMPIRICAL STUDY OF FAST FOOD
FRANCHISES IN HO CHI MINH CITY

APPROVED BY Advisor

APPROVED BY: Committee

__________________________

_________________________________

Nguyen Van Phuong Ph.D

_________________________________

_________________________________

_________________________________

_________________________________

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THESIS COMMITEE

ACKNOWLEDGEMENTS
I would like to give thanks and appreciates for the following individuals
First of all, i am really thankful to my advisor, Dr. Nguyen Van Phuong. Without his help, i
would not able to finish this thesis. Through his advices, and guidance, my thesis was formed
and built. I could not thank him enough for the patience and endurance he had for my mistakes
throughout thesis completing.
Secondly, i would like to express my gratitude to Dr. Nguyen Quynh Mai and Dr. Phan Trieu
Anh for their advices and comments in the last stage of my thesis.
Finally, i am grateful to my family and my friends who unendingly cover me by their loves, who
never fail to give me their supports and encouragements. I love you all!!!
And above all, I want to give thanks to my God for His faithfulness toward me, for His love that
poured out on me and for the amazing plan He has prepared for my life.

Contents
ACKNOWLEDGEMENTS ............................................................................................................ 5
ABSTRACT .................................................................................................................................... 8
CHAPTER I - INTRODUCTION ................................................................................................ 9
1.1 Research background ............................................................................................................ 9
1.2 Problem statement ............................................................................................................... 10
1.3 Research Question .............................................................................................................. 11
1.4 Research objectives ............................................................................................................. 11
1.5 Contribution of the research................................................................................................ 11
1.6 Research structure ............................................................................................................... 11
CHAPTER 2 - LITERATURE REVIEW & RESEARCH MODEL............................................ 13
2.1 Fast food industry ............................................................................................................... 13
2.2 Customer Satisfaction ......................................................................................................... 14
2.3 Factors that affect Customer Satisfaction ........................................................................... 16
2.3.1 Service quality ............................................................................................................. 17
2.3.2 Product quality ............................................................................................................. 18
2.3.3 Price ............................................................................................................................. 19
2.3.4 Situational factors ........................................................................................................ 19
2.3.5 Personal factors ............................................................................................................ 19
2.5 Proposed research model and hypotheses ........................................................................... 20
CHAPTER 3 - RESEARCH METHODOLOGY ......................................................................... 21
3.1Research design ................................................................................................................... 21
3.2 Research Process ................................................................................................................. 22
3.3 Data collection .................................................................................................................... 23
3.3.1 Secondary Data ............................................................................................................ 23
3.3.2Type of respondents of survey ...................................................................................... 23
3.4 Measurement for Customer Satisfaction ............................................................................. 23
3.5 Pilot testing ......................................................................................................................... 25
3.6 Questionnaire design........................................................................................................... 25
3.7 Sample Size ......................................................................................................................... 25
3.8 Data analysis techniques ..................................................................................................... 26
3.8.1 Reliability Test (Cronbachs Alpha) ............................................................................ 26
3.8.2 Exploratory Factor Analysis (EFA) ............................................................................. 26

3.8.3 Linear regression analysis ............................................................................................ 26

3.8.4 Independent sample T-test and One-way Anova ......................................................... 26
CHAPTER 4 DATA ANALYSIS & FINDINGS ...................................................................... 28
4.1 Coding data ......................................................................................................................... 28
4.2 Data Analysis results........................................................................................................... 29
4.2.1 Demography profile ..................................................................................................... 29
4.2.2 Descriptive statistic ...................................................................................................... 33
4.2.3 Reliability test .................................................................................................................. 35
4.2.4 Factor analysis and Validity test .................................................................................. 39
4.2.5 Rename factors............................................................................................................. 44
4.2.6 Empirical model ........................................................................................................... 45
4.2.7 Test model & research hypotheses .............................................................................. 46
4.2.8 Linear equation of Customer Satisfaction in Fast food ............................................... 48
4.2.9 T-test and ANOVA ...................................................................................................... 49
4.3 Discussion and Recommendation ....................................................................................... 50
4.3.1 Price ............................................................................................................................. 50
4.3.2 Service Quality............................................................................................................. 51
CHAPTER 5- CONCLUTION & RECOMMENDATIONS ....................................................... 52
5.1 Conclusion .......................................................................................................................... 52
5.2 Limitation and suggestion ................................................................................................... 53
References ..................................................................................................................................... 54
Appendix 1:................................................................................................................................... 57
Appendix 2:................................................................................................................................... 60

ABSTRACT
The aim of this study is about to find out how fast food consumers satisfied by their preferred
fast food franchises as well as to explore the most influencing factors of customer satisfaction.
Theoretical framework of Zeithaml and Bitner (2000) of Customer Satisfaction was used to
develop measurement scale in the context of Fast food franchise in Ho Chi Minh City. Data was
collected and processed by SPSS software with five factors: Service Quality, Product Quality,
Price, Situation Factor and Personal Factor. Result of this research shows the relative satisfaction
level of customers and factors which most impact on satisfaction are Price are Service Quality. A
new model is suggested for being more suitable in conditions of fast food marketplace in Ho Chi
Minh City.

CHAPTER I - INTRODUCTION
1.1 Research background
Bennet & Rundle-Thiele (2004) had indicated that customer satisfaction is an important issue for
many marketing managers. It is commonly used as a marketing benchmark of a companys
performance. Therefore, customer satisfaction is considered as a factor encouraging customers to
use the service again, although there is no guarantee that a satisfied customer will return for a
repeat purchase (Soriano, 2002). Moreover, regardless of size or industry, the business that is
best at retaining customers will benefit from lower marketing costs, greater brand value, less
customer sensitivity to price, and improved long-term financial performance (Oracle, 2003).
To make customers satisfied with products and services which are considered as most important
factor leading toward competitiveness and success, company have to improve their product and
service quality and offer a competitive price. Therefore, many previous studies have attempted to
find out which determinants impact on customer satisfaction. Recently, many studies have
focused on the relationship between customer satisfaction and service quality and price in fast
food industry in many other countries. For instance, Ling et al (2011), conducting a survey with
200 Malaysian customers, evaluate and validate the determinants of the customer loyalty in the
western fast food industry in Malaysia. Another study of cross-cultural comparison of service
satisfaction of fast food establishments in four English-speaking countries, Gilbert et al (2004)
proved satisfaction dimensions: satisfaction with the personal service and satisfaction with the
service setting. However, there is a little research customer satisfaction in fast food industry in
Vietnam. Therefore, the author would like to investigate the relationship between customer
satisfaction with product quality, service quality and price in the fast food industry in Ho Chi
Minh City.
The enhancement of economy development has resulted in changing of consumer behaviours in
Vietnam especially in Ho Chi Minh city, the most dynamic economy with GDP per capital last
year was 3,700.00.USD (Annual Economic Report in December, 2012). Along with rapid growth
of economy, the living standards have been lifted and their life styles become busier and more
dynamic. Ho Chi Minh City is the centre point of culture exchange; it is easily to adopt Western
lifestyles and cuisine. Therefore, fast food industry is seen as fashionable and attractive.

From the first day being in Ho Chi Minh city in 1997 until now, with the enter of Kentucky Fried
Chicken also well known as KFC, fast food industry has leaped a big step in the food retail
services. The profits have increased annually and competitions among brand names and
franchises have become dramatically from both local and international retailers. Ho Chi Minh
City is considered as the most attractive market for fast food industry all over Asia. In 2011, fast
food industry got a significant increasing 30% of total revenue comparing to 2010 (Ministry of
Industry and Trade, 2011).
Young people who hold the greatest percentage of population are core customers of fast food
market in Ho Chi Minh City. Elias Diaz Sese, Director of Burger King Asia Pacific, stated
young population makes favorable for the marketplace as youngsters always love to try new
products. Besides Burger King is a new entrant, in last August, other fast food brand names
such Johnny Rocket, Dunkin Donuts and Mc Donald are planning to enter the fast food market in
Vietnam. The local fast food market will going to be more competitive and it will change the
market shares, as more players jump into the market. As Le Hoi Nam, Marketing Director of
KFC, stated, Appearances of new comers to fast food industry was expected, this would make
the battle among fast food brand names more fierce than ever
Another research of FTA in June 2012 customers in Ho Chi Minh concern more on waiting time
and they would want to be served quickly while having fast food. Moreover, According to AC
Nielsen (2010), 42 percent of respondents wanted to eat fast foods and 86 percent of fast food
users are in the age from 20 to 35, people in the age from 20 to 30 used fast foods more
frequently, accounting for 76 percent of fast food eaters. Besides, fast food restaurants are well
decorated and the ambience in restaurants is cool and comfortable. So, fast food restaurants
become popular in any big city in Vietnam, particular in Ho Chi Minh city.

1.2 Problem statement

Fast food is growing fast and speedy in Vietnam especially in Ho Chi Minh city; however,
research which is conducted in this field is rare. Mostly, researches of fast food in Vietnam are
about customer satisfaction in one specific brand name. Thus, we want to examine which
determinants affect on customer satisfaction in the fast food industry. We conduct a survey with
350 respondents who have been eating at least one fast food store in Ho Chi Minh city.
Furthermore this study is also to compare brand names of fast food companies. Consumers
always have their favorite fast food brands in mind and the aim of this research is to point out

which components would define satisfaction of customers for their choice brands, why they
would be more satisfied by their favorite brands but not one another?
At the moment, most of the fast food restaurants belong to foreign brands or international
franchises. Local brands have not established their own yet in this battlefield. The findings
enable Vietnamese companies to recognize main factors affecting customer satisfaction in some
leading fast food franchise in Vietnam and to learn from those facts. Our recommendations may
help Vietnamese enterprises to find a better solution to improve service quality and offer a
competitive price in order to meet customer satisfaction in this quick restaurant services.

1.3 Research Question

1. What is the current customer satisfaction of customer with their fast food favourite brand
names?
2. What are factors that affect customer satisfaction when having fast food of their favourite
brands?

1.4 Research objectives

The purposes of this study is
-

to examine the influence factors that have impact on satisfaction of customers when
having fast food

to evaluate the overall satisfaction of fast food consumers for their preferred franchise

to suggest improvements based on research findings

1.5 Contribution of the research

Generally, the findings of this study can help restaurant managers to be aware of the importance
of factors which have a positive impact on customer satisfaction. Moreover, the study also comes
up with specific solutions to meet customer satisfaction. From collected data, managers might
have an insight about customers needs and current satisfaction of customers about fast food
industry in Ho Chi Minh City.

1.6 Research structure

Chapter 1: Introduction
This chapter introduces research background, states research problems and objectives in order to
give an idea what this research is about to solve

Chapter 2: Literature review and research model

This chapter provides concepts, key theories which related and supports for this study and based
on mentioned theories, a theoretical framework, research model and hypotheses are suggested.
Chapter 3: Methodology
The chapter shows in details research design, predicted measurement scale and questionnaire as
well as procedures and methods used in data processing
Chapter 4: Data analysis, discussion and recommendations
This chapter describes and analyzes the outcomes from data solving step. It also presents
empirical model of study after confirming hypothesis. Besides, some recommendations are given
base on research findings.
Chapter 5: Conclusion and Limitation
The chapter gives conclusion from research results as well as limitation of the study and
suggestions for further study.

CHAPTER 2 - LITERATURE REVIEW & RESEARCH MODEL

2.1 Fast food industry
According to Merriam Webster Dictionary, fast food is a term that relates to or specializes in
food that can be prepared and served quickly. The fast food industry, also known as Quick
Service Restaurants (QSR), has been serving for as long as people have lived in cities. Its
concept is generally associated with urban development. The modern system of fast food
franchising is believed to have started in the middle of 1930s when Howard Johnson franchised
his second location to a friend as a means to expand operations during the Great Depression.
The Fast Food Restaurants industry is only one component of the wider food service sub-sector,
including cafes, cafeterias, full-service restaurants, casual dining, coffee shops, street stalls and
takeout stands. Fast food is most well-known in forms of hamburgers, French fries, pizzas,
donuts, fried chickens and so on. Recently, Fast food companies have been franchised in over
100 countries. In the U.S. alone there are over 200,000 restaurant locations. The Global industry
is estimated to account for revenue of $706.7 billion in 2012, or about 38% of the global food
service sub-sector. Industry revenue is estimated to increase at an annualized 2.1% in the five
years through 2012, with a 3.2% increase expected in 2012. (Global Fast Food Restaurant Report
2012).
In Vietnam, fast food industry first started in 1997 following the commencement of KFC and
Lotteria. After six years, the industry revenue still grown very slowly, in 2003, Lotteria and KFC
only got a few restaurants in the whole country. However, scene has changed significantly 3
years after that. In 2007, Lotteria opened the 50th store while KFC had owned 63 restaurants. At
the end of 2012, Lotteria and KFC each brand has reached more than 140 locations while
Jollibee (another well-known franchise from Philippines) got 30 stores. So far, foreign giants
like KFC, Lotteria or Jollibee and Pizza Hut have being dominating overall market. They are
holding more than 70% of fast food market. KFC is a leading one with 60% segment within the
industry.
Fast food industry in Vietnam, in 2011, continued to register a rapid growth of 26% in current
value terms due to various reasons. Despite the steep increase in overall food prices, fast food
was able to maintain stable prices, thus making dishes more affordable to consumers. The

modern image of fast food outlets stands for Western life-style that attracts more and more
teenagers and young working adults. Recently, Burger King-a world leading fast food franchise
has opened its first stores in Vietnam, which has drawn so much attention among fast food
consumers. Experts have predicted a civil war among these international brand names while
local brand names, in the meantime, get no chance in this battle.

2.2 Customer Satisfaction

The importance of customer satisfaction has been highlighted by many researchers; it is the main
ingredients of success in the market place. (Fornell et al., 1996) Marketers consider satisfying
customers as a key element of business activities especially in competitive market (Anderson,
1994).
Oliver (1997) defined satisfaction as the consumers fulfillment response. It is a judgment that a
production or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfillment, including levels of under- or overfulfillment. On the other hand, Kotler, (2000) called satisfaction as: a persons feelings of
pleasure or disappointment resulting from comparing a products perceived performance (or
outcome) in relation to his or her expectations.
Many researchers suggested that consumers are satisfied when the products perform better than
expected, dissatisfied when consumers' expectations exceeded actual product performance, and
neutral satisfaction when the product performance matches expectations (Oliver, 1980)
According to Brink and Berndt (2004), customer satisfaction can be described as the degree to
which an organizations product of service performance matches up to the expectations of the
customer. The theory is best described by Teboul model.

Figure 1- Teboul Model of Customer Satisfaction - Morgan (1994)

In the model, customers needs are represented as a circle while a square depicts products or
service offered by organization. Total satisfaction can be archived when the offers match the
needs. The part that matches with each other shapes is perceived by customers as satisfaction and
the part outside the circle is considered as unnecessary offer. Thus the model expresses an
important notion that organizations should listen to customer opinions to ensure what they are
offering would meet the expectation of customers.
According to La Barbera and Mazursky (1983), satisfaction influences repurchase intentions
whereas dissatisfaction has been seen as a primary reason for customer defection or
discontinuation of purchase.
Jochen Wirtz (2003) listed the result of customer satisfaction as follow:
-

Repeating repurchase

Loyalty

Positive word of mouth

Increasing long term profitability

The consequences of not satisfying customers can be severe as for Hoyer and MacInnis (2001),
dissatisfied consumers can decide to:
-

Discontinue purchasing the good or service,

Complain to the company or to a third party and perhaps return the item

Engage in negative word-of-mouth communication.

For overall, it is likely to lose market share, customers and investors for any business if a
company fails to satisfy customers as effectively and efficiently as its competitors is doing
(Bitner, 1997)

2.3 Factors that affect Customer Satisfaction

Due to many empirical researches about customer satisfaction in various industries, factors that
affect customer satisfaction vary.
Hennig-Thurau and Klee (1997) pointed out that satisfaction of customers with products and
services of a company is considered as most important factor leading toward competitiveness
and success
Bel and Chiao (2001), in another research, stated that product quality and price are both
positively related to consumer satisfaction, which are as equally important as service quality.
None of them can be ignored or partially accented. Figure 2 shows their empirical research
model.

Figure 2
A Practical Model for the Effects of Product Quality, Service Quality and Price on Consumer
Satisfaction and Consumer Loyalty

Base on another study, Bitner (1997) indicated that the extent of satisfaction was broader than
service quality assessment and was subject to the factors of service quality, product quality price
situation and personal factors. For further study, Zeithaml and Bitner (2000) proved that
customer satisfaction is influenced not only by product and service quality and price but also by
situation factors and personal factors.
They presented the model of customer satisfaction with Situation factor and Personal factor
dimensions in Figure 3

Figure 3: Customer Satisfaction model of Zeithaml and Bitner

The theory complies with other studies and has been confirmed by the definition of customer
satisfaction presented by other researchers. For example, Hoyer and MacInnis (2001) also shared
the same idea in saying that satisfaction can be associated with feelings, happiness, relief,
excitement, and delight. Wilson et al. (2008) found the same result that satisfaction generally is
broader than Price, Service and Product, these broader components that affect satisfaction are
situation and personal (Wilson et al., 2008, p. 78).
2.3.1 Service quality
Parasuraman et al. (1985, 1988) defined service quality as the overall evaluation of a specific
service firm that results from comparing that firm's performance with the customer's general
expectations of how firms in that industry should perform. Based on a survey with 200
consumers about five different service categories in 1988, Parasuraman et al. (1988) had
developed a standardized instrument called SERVQUAL, which can be used to measure

customer perceptions of service quality. They then have retested and refined their original
SERVQUAL instrument (Parasuraman et al., 1991). SERVQUAL consists of 22 items
measuring customers expectations and another 22 items measuring their perceptions of five
dimensions of service performance. Specifically, they suggested that when consumers make their
judgment of service quality, they would generally consider the service providers:
-

Physical facilities and equipment (tangibles);

Ability to perform promised service dependably and accurately (reliability);

Willingness to help customers and provide prompt service (responsiveness);

Knowledge, courtesy and ability to inspire trust and confidence (assurance); and

Caring and individualized attention to its customers (empathy).

Most researchers suggested that high service quality resulted in high customer satisfaction.
Bitner (1990) mentioned that good service quality leads to satisfaction, and consumer
satisfaction increased the evaluation of service quality again. A further study, Cronin and Taylor
(1992) proved that service quality was the antecedent of consumer satisfaction by examining
four service industries of banking, pest control, dry-cleaning and fast food. In recent time, Bastos
and Gallego (2008) has provided evidences that service quality directly affects satisfaction.
2.3.2 Product quality
In marketing and economics, quality often has been viewed as dependent on the level of product
attributes ( Hauser and Shugan, 1983; Rosen 1974). Some researchers (Gwin and Lindgren,
1986; Lehtinen and Lehtinen, 1982; Nicholls et al., 1993; Oberoi and Hales, 1990) have
identified customer satisfaction to be based on two service components: the technical quality of
the product. Anderson, Fornell et al. (1994) suggested that it was requirement for customers to
experience with a product to determine how satisfied they were. Similarly, Oliver (1981) showed
that customer satisfaction was the comments made by the surprising experience of product
obtainment or consumption. Fornell (1992) also pointed out that customer satisfaction was the
overall measurement after a customer had purchased the product or used the service. To observe
the relationship between product quality and customer satisfaction, Parasuraman et al (1994)
developed the satisfaction model and proved that product quality was an important factor that
affected consumer satisfaction.

2.3.3 Price
Price has been considered a significant component in explaining consumer satisfaction (Chen et
al. 1994). From the customer perspective, price is the amount which needs to be paid to obtain
the product (Hawkins et al. 1983). Coming up with the same objective, Varki and Colgate (2001)
also pointed out that price was the part that required payment or sacrifice to obtain the products
or services. And at the end of the process, customers would have price awareness of product, the
purchase behavior of customers depended on pricing factors. A further study, Anderson et al.
(1994) emphasized price as an important factor that directly impacted on consumer satisfaction,
because whenever consumers evaluate the value of an acquire service, they usually think of the
price. In general, the lower the price is, the lower perceived sacrifice is (Zeithaml 1988).
Rationally, low perceived price does ensure higher satisfaction. (Bei and Chiao 2001)
In the food consumption behavior, price should be an important factor affecting customers
inertia and satisfaction (Cheng et al 2010).
2.3.4 Situational factors
Situational factor is defined as service performance condition that customers view as beyond the
service provider. It includes some uncontrollable features such as consuming experience of
customer, attribution of service success or failure, perception, familys relatives opinions..
Situation factors affecting the level of personal satisfaction with the service consumed.
Conditions and circumstances will lead the consumer experience to come to service provider;
this will affect the expectations of customer on their satisfaction.(Zeithaml, 1994). Moreover,
brand can be used for measuring one dimension of the situation factor. For example, Thao (2010)
in a research in real estates in Khanh Hoa showed that brand is also considered as the situation
factor.
2.3.5 Personal factors
Personal factor is one factor from customers perspectives. It includes emotion which has impact
on consumers perspectives. For example, their moods, their favorites or life styles can effect
customer perception and satisfaction with product or service greatly.

2.5 Proposed research model and hypotheses

Based on the literature review above, the research model and hypotheses were developed as
follow:

HYPOTHESES 1: Product quality will have positive impact on customer satisfaction.

HYPOTHESES 2: Service quality will the positive impact on customer satisfaction.
HYPOTHESES 3: Price fairness will have positive impact on customer satisfaction.
HYPOTHESES 4: Situation factor will have positive impact on customer satisfaction.
HYPOTHESES 5: Personal factor will have positive impact on customer satisfaction.

CHAPTER 3 - RESEARCH METHODOLOGY

3.1Research design
According to White (2005) research design is the term that consist of the aims, the selection of
appropriate methodology that suit and fit with the literature of the research. Therefore, the
objective of the research, research design gives a guidance to collect the data and how to analysis
those data (Churchill, 1979).
This study is to investigate how product quality, service quality, price, situation and personal
factors influence overall customer satisfaction in the fast food industry. The study used both
qualitative and quantitative methods to construct questionnaires. The findings of this research
were found from used questionnaire survey and quantitative analysis.
The reason for this choice of method was to test the relationships among some variables, not to
develop theories but to test existing theories about Customer Satisfaction in a specific collective.

3.2 Research Process

3.3 Data collection

3.3.1 Secondary Data
According to Saunders et al (2009) secondary data include raw data and published summaries.
In this study, the multiple sources like book and articles, journals were collected in order to gain
the knowledge about related subject. Moreover, the resources would help researchers to indicate
a broader view to the topic because secondary data are likely to be higher quality than could be
obtained by collecting by researcher (Stewart & Kamins, 1993). Lastly, secondary data also
assists researcher to choose and build suitable methodology for this research. Base the resources,
the approach of conducting a research and the technique to create a valid and reliable
questionnaire are recommended (Saunders, et al., 2007).
3.3.2Type of respondents of survey
The survey was focused to young adults who love dining out. Questionnaires were contributed
in universities, fast food restaurants and plaza food courts and via email.

3.4 Measurement for Customer Satisfaction

Product quality
1

The food has good taste

The food is well presented

Menu has variety of options

Food hygiene of the brand is good

Modified from
Baker et al (1994)
Lindquist (1974)

Service quality
5

Serving system is smart, quick and accurate

Locations and service hour are convenient

SERVQUAL of

Parking area is safe and convenient

Parasuraman

Exterior design of restaurants is attractive

(tangibles,

Decorations of the restaurants are modern and beautiful

responsiveness,

10

The atmospheres of restaurants is comfortable

liability, empathy

11

Dishes, bowl, utensils...are hygienic

12

Floors, kitchens, toilets, dining area are clean

and assurance)

14

Tables and chairs of restaurants make me comfortable

when dining in (reasonable design)
Employees uniforms are nice and good looking

15

Employees are friendly and sincere toward customers

13

16
17
18

Employees ask for customers orders politely and

response in well manner
Employees are willing to serve and provide help
Employees listen carefully and resolve well issues and
concerns of customer

Price
19

Its price is reasonable because of the services and quality

you get

20

Its price is reasonable comparing to others

21

Its price is within your afford to have regularly

Modified from
Chen, Gupta and
Rom (1994)

Situation factor
22

23
24

The popular of the brand name has its favorable to make

you satisfied

Created from

Your friends and family satisfied with this brand name Situation factor
makes you more satisfied

definition

Its locations is easily accessed to you

Personal factor
25
26

You have good feeling for the brand image

Created from

You like its Westernized style

Personal factor
definition

Customer satisfaction
27

You are satisfied with the services

28

You are satisfied with the food

29

You are satisfied with the price

30

You are satisfied because the franchise is your favorite

31

Overall, you are completely satisfied

Zeithaml and Bitner

(2000)

3.5 Pilot testing

To conduct the questionnaire survey completely researcher used piloting test. This is the last step
of constructing questionnaire process (Churchill & Iacobucci, 2002). Saunders, et al (2007)
suggested that this step should be given before the questionnaire survey. Thus, to make sure the
respondents easy to answering the questionnaire a pre-testing questionnaire will be conducted.
The validity and reliability of questionnaire survey will be examined by pilot respondents. As
Frink (1995) the minimum of selection for pilot questionnaire is 10 respondents. Hence,
researcher delivered 10 questionnaires to respondents and used their feedback to adjust the
questionnaire. After piloting test, there are 31 questions left in questionnaires. This can use to
sending to participants to collect data in data analysis.

3.6 Questionnaire design

Questions were formed based on previous studies.
Three types of questions used can be named as List questions, category questions and Grid
questions.
Grid questions are designed as the form of five-point Likert scale matrix, enable respondents rate
the level of satisfaction toward different of certain factors without taking much time. The
satisfaction items will be performed in consumers point of view from Strongly disagree (=1)
to strongly agree (=5). Researcher used five-point Likert scale matrix in order to get
respondents idea clearly.
The questionnaire has 2 sections overall
Section A: demographic of respondents (age, gender, career, income...)
Section B: to measure customer satisfaction by five-point Likert scale

3.7 Sample Size

Gorsuch (1983) and Hatcher (1994) suggested that a minimum ratio of subject variable is at least
5:1 in EFA, and noting that higher rations are generally better.
Sample size is calculated basing on formula n>5M (m is number of variables). In this research
M=31

3.8 Data analysis techniques

After collecting data, Software SPSS 20 was used to analyze the raw data. Descriptive statistic
was initially conducted to give an overview of the sample. Next, the reliability test (Cronbachs
Alpha) and EFA were run to conduct a preliminary test of the validity and reliability of the scale
to measure and redefine the constructs. After that, we executed linear regression analysis to test
hypothesis to test hypotheses. Finally, T-test and ANOVA were applied to find out if there are
differences in satisfaction between object groups in each demographic group
3.8.1 Reliability Test (Cronbachs Alpha)
This is the most commonly used and accepted means for assessing the reliability of a multi-scale
measurement scale (Hair, 1995). It is a measure of the degree to which all items are measuring
the same thing (DeVellis, 1991). In assessing a multi-item scale, internal consistency reliability
assessment is the first step to avoid additional dimension produced by factor analysis due to
garbage item
3.8.2 Exploratory Factor Analysis (EFA)
EFA is used to explore the dimensions of each construct. Items with low factor loading (<0.5)
were eliminated. Cronbachs Alpha was recalculated for the scale whose items were deleted
3.8.3 Linear regression analysis
A regression analysis is a statistical method used to estimates the strength of a relationship
between one or more dependent variable and one or more independent variables. It assumes that
the relationship between two or more of the independent variable (multi-collinearity), and the
data is normally distributed (Cooper and Schindler, Saunders, 2007)
Regression analysis can be simple involving one dependent variable and one independent
variable, or multiple involving one dependent variable and two or more independent variable.
This procedure was used for we wanted to find out how factors of service quality individually
impact customer satisfaction in regression model. Regression analysis was conducted to test
hypothesis H1, H2, H3, H4 and H5
3.8.4 Independent sample T-test and One-way Anova
One-way Analysis of Variance is a statistical test whether there are the differences between three
or more groups occur (Saunders, 2007). Independent Sample T-test is used for 2 groups only.

These techniques are used because we want to explore if there are differences in customer
satisfaction level among object groups in each demographic group. With the significant level
5%, it could be claimed that the differences exist if that factor has Sig<0.05

CHAPTER 4 DATA ANALYSIS & FINDINGS

4.1 Coding data
As mentioned in the previous chapter, the questionnaire is comprised in two sections.
Section A: demographic category
Gender: Nominal variable
-

Male (code = 1)

Female (code = 2)

Age: Ordinal ranges

-

Under 20 years old (code = 1)

From 20 to 35 years old (code = 2)

From 35 to 50 years old (code = 3)

Over 50 years old : (code = 4)

Occupation: Ordinal variable

-

Pupil/Student (code=1)

Officer (code=2)

Workman (code=3)

Others (code=4)

Frequency of having fast food per month

-

Under 1 time (code=1)

1 time (code=2)

2 times (code=3)

3 times (code=4)

4 times (code=5)

Over 4 times (code=6)

Favorite fast food brand name: nominal variable

-

KFC (code=1)

Lotteria (code=2)

Jollibee (code=3)

Carl Jr (code=4)

Burger King (code=5)

Others (code=6)

Section B : questions to measure customer satisfaction overall and in price , product quality,
service quality, situation factor and personal factor.
Likert scales 4 points from Strongly disagree (1) to strongly agree (5) is used for section B
-

Strongly disagree: (code=1)

Disagree: (code = 2)

Neutral: (code = 3)

Agree: (code = 4)

Strongly agree: (code = 5) .

Summary of measurement factor coding

Factors

Coding

Product quality

PT1, PT2, PT3, PT4

Service quality

SER5, SER6,SER7, SER8, SER9... SER18

Price

PC19,PC20,PC21

Situation factor

SIT22, SIT23,SIT24

Personal factor

PER25,PER26,

Customer satisfaction

SA28, SA29, SA30, SA31

4.2 Data Analysis results

The research outcome will be following represented is based on method is mentioned above.
4.2.1 Demography profile
Questionnaires were distributed to students in universities, random customers in fast food
restaurants and food courts in Ho Chi Minh City. The response rate is 59.14% which is 207
responses received out of 350 distributed questionnaires. However, due to unqualified responses,
11 answered sheets were eliminated.196 valid ones are encoded and analyzed with SPSS
4.2.1.1 Gender category
Respondents of female takes 56.1% out of 196 while male respondents rate was 43.9% of 86
respondents

Gender
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Male

86

43.9

43.9

43.9

Female

110

56.1

56.1

100.0

Total

196

100.0

100.0

4.2.1.2 Age Category

For the age category, the table above shows that most of respondents belong age of period from
20 to 30 years old (50% of 98 respondents). There are 84 respondents under 20 took 42.9% while
14% belongs to age period from 31 to 40 years old.
Age
Frequency

Percent

Valid Percent

Cumulative
Percent

Under 20

84

42.9

42.9

42.9

From 20 to 30

98

50.0

50.0

92.9

From 31 to 40

14

7.1

7.1

100.0

196

100.0

100.0

Valid
Total

4.2.1.3 Occupation
The percentage of Pupil/student is the dominant one in the occupation category, it takes 55.1% of
108 respondents. Rates of Officer and Workman are 40.3% and 4.6% respectively.
Occupation
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Pupil/Student

108

55.1

55.1

55.1

Officer

79

40.3

40.3

95.4

Workman

4.6

4.6

100.0

Total

196

100.0

100.0

4.2.1.4 Frequency of having fast food per month

In the frequency category, those who have fast food for 1 time and under 1 times per month have
almost the same percentage which is 31.1 and 30.1 respectively. People having 2 times a month
hold the rate of 19.9% while more than 4 times a month was 8.2%. The least were 3 times and
4 times a month with 7.1% and 3.6% respectively.
Frequency
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Under 1 times

59

30.1

30.1

30.1

1 times

61

31.1

31.1

61.2

2 times

39

19.9

19.9

81.1

3 times

14

7.1

7.1

88.3

4 times

3.6

3.6

91.8

Above 4 times

16

8.2

8.2

100.0

Total

196

100.0

100.0

4.2.1.5 Fast food favorite brand

Mostly, respondents chose KFC as their favorite fast-food brand names which takes 51% overall.
The second one is Lotteria when 41 person took it as their choice
Brand
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

KFC

100

51.0

51.0

51.0

Lotteria

41

20.9

20.9

71.9

Jollibee

14

7.1

7.1

79.1

Carl Jr

1.0

1.0

80.1

Burger King

20

10.2

10.2

90.3

Others

19

9.7

9.7

100.0

Total

196

100.0

100.0

4.2.2 Descriptive statistic

To reflex opinion of customers about their satisfaction generally, descriptive statistic of sample
are computed. Means show an estimate of the center of a distribution value, it is the evaluation
level of satisfaction on specific fast food franchise which based on 30 items in questionnaire.
Standard deviation express the dispersion level. The less dispersive the data is, the more valuable
it is.
4.2.2.1 Product Quality
Table beneath shows that evaluation on product quality is quite good, all 4 items have mean
values over 3. There is no outstanding item whose mean is over 4 and the gap between the
largest and the smallest one is almost inconsiderable. However, hygiene of food (PT4) is
generally appreciate when it has largest mean. In addition, the highest standard deviation is menu
variety (PT3) which shows that there are many opposite opinions of customers about the variety
of the menu
N

Mean

Std. Deviation

PT1 Food taste

196

3.69

.870

PT2 Food in well presented

196

3.43

.992

PT3 Menu Variety

196

3.53

1.010

PT4 Food hygiene

196

3.72

.876

Valid N (list wise)

196

4.2.2.2 Service Quality

N

Mean

Std. Deviation

SER5 Smart, quick and accurate service

196

3.74

.886

SER6 Convenient locations and service hour

196

3.74

.870

SER7 Safe and convenient parking lot

196

3.54

.908

SER8 Attractive exterior design

196

3.88

.868

SER9 Beautiful interior design

196

3.62

.865

SER10 Comfortable atmospheres

196

3.45

.918

SER11 New and hygienic dishes, bowls, utensils...

196

3.81

.804

SER12 Floors, kitchens, toilets...cleanness

196

4.01

.859

SER13 Chairs, tables and layout in reasonable design

196

4.04

.780

SER14 Staffs uniforms neat and nice

196

3.57

1.013

SER15 Friendliness, and scinereity

196

3.64

.915

SER16 Well manner

196

3.78

.870

SER17 Willingness

196

3.34

.912

SER18 Understading

196

3.32

1.044

Valid N (list wise)

196

Customers evaluate the exterior design and modern and hygiene equipment quite high (SER8.
SER11). These are items that we often ignore in running restaurant service. In general, there are
still a lot improvement needed to take place as minimum of whole service especially about staffs
manners which has highest Stdr deviation of 1.044
4.2.2.3 Price
N

Mean

Std. Deviation

196

3.23

.995

PC20 More reasonable comparing to others

196

3.13

1.111

PC21 Within your afford

196

3.06

.998

Valid N (list wise)

196

PC19 Reasonable due to its perceived service

and product quality

Table shows that satisfaction of price is not so high when the factor group of price has lower
mean comparing to the other factors. Moreover, the std.Deviation for reasonable comparing to
other is quite high It proves that people think differently of the reasonability of the price in
comparing to others.

4.2.2.4 Situation factor

N

Mean

Std. Deviation

SIT22 Popular brand name

196

3.11

1.045

SIT23 Affect from friends and family

196

2.81

.919

SIT24 Easily to access service

196

3.65

.908

Valid N (list wise)

196

The items of this factor are evaluated middle high comparing to others. However, the mean of
friends and family effect is especial low with 2.81 when easy to access is highly concerned.
4.2.2.5 Personal factor
N

Mean

Std.
Deviation

PER25 Good feeling

196

3.33

.827

PER26 Western style attract

196

2.65

1.020

Valid N (list wise)

196

This factor group still got not high mean with 3.33 and 2.65 respectively for Good feeling of
Brand image and life style attraction.
4.2.2.6 Overall Customer satisfaction
N

Mean

Std. Deviation

SA27 Satisfied with Service Quality

196

3.89

.902

SA28 Satisfied with Product Quality

196

3.69

.778

SA29 Satisfied with Price

196

2.98

.900

SA30 Satisfied due to its favorable in you

196

2.94

.904

SA31 Overall completely satisfied

196

3.48

.925

Valid N (list wise)

196

As regards the general satisfaction, both product and service quality got high mean value while
price is not really satisfies customer. However, the overall customer satisfaction is not bad as it
got 3.48 . The dimension of satisfied due to favorite brand is the lowest mean of 2.94

4.2.3 Reliability test

The purpose of this test is to access whether all items are measuring the same thing or internal

consistency (DeVellis, 1991). Empirically, accessing the Cronbachs Alpha as evidence

supporting the convergent validity of those items (Anderson and Gerbing, 1988)
A coefficient alpha of 0.6 is satisfactory in the early stages of research (Nunnally, 1987)
4.2.3.1 Reliability coefficient of customer satisfaction
Reliability Statistics
Cronbach's

N of Items

Alpha
.725

Customer Satisfaction has a medium Cronbachs Alpha in general (.725).

Corrected item of all variables are over 0.3. Thus they are qualification to be add in EFA test.
Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's
Item Deleted

if Item Deleted

Total

Alpha

Correlation

Deleted

SA27

13.09

6.408

.451

.691

SA28

13.29

6.341

.596

.640

SA29

14.00

6.185

.511

.667

SA30

14.04

6.614

.398

.711

SA31

13.50

6.200

.483

.678

if

Item

4.2.3.2 Reliability coefficient of product quality

Reliability Statistics
Cronbach's

N of Items

Alpha
615

Cronbachs Alpha of measurement is 0.615 (>0.6) and Corrected Item are >0.3. They are
qualified to be in the next EFA test.

Scale Mean if

Scale Variance

Corrected Item-

Cronbach's

Item Deleted

if Item Deleted

Total

Alpha if Item

Correlation

Deleted

PT1

10.95

3.167

.300

.619

PT2

10.00

3.210

.415

.534

PT3

9.82

2.794

.475

.481

PT4

10.19

3.046

.403

.539

4.2.3.3 Reliability coefficient of service quality

Reliability Statistics
Cronbach's

N of Items

Alpha
.874

14

This factor group has high Cronbachs Alpha (.874). It means that set of items is internally
consistent and the initial factor is well set.
Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's
Item Deleted

if Item Deleted

Total

Alpha

Correlation

Deleted

SER5

48.14

49.801

.593

.863

SER6

48.14

50.882

.512

.867

SER7

48.34

51.077

.470

.869

SER8

48.01

50.805

.520

.866

SER9

48.26

50.686

.533

.866

SER10

48.43

51.355

.441

.871

SER11

48.16

51.091

.491

.868

SER12

48.07

52.179

.446

.870

SER13

47.87

49.589

.634

.861

SER14

47.85

50.059

.664

.860

SER15

48.31

49.939

.492

.869

SER16

48.24

49.099

.629

.861

SER17

48.10

50.092

.581

.863

SER18

48.54

50.291

.532

.866

if

Item

4.2.3.4 Reliability coefficient of Price

Reliability Statistics
Cronbach's

N of Items

Alpha
.665

Cronbachs Alpha of measurement is 0.665 (>0.6). The corrected Item total correlation of
observation variables are >0.3 and Cronbachs Alpha if item deleted of all variables> 0.6. Thus,
this variable can be used in EFA analysis
Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's
Item Deleted

if Item Deleted

Total

Alpha

Correlation

Deleted

PC19

6.19

3.087

.488

.555

PC20

6.29

2.792

.474

.576

PC21

6.37

3.126

.471

.577

if

Item

4.2.3.5 Reliability coefficient of Situation Factor

Reliability Statistics
Cronbach's

N of Items

Alpha
.634

Cronbachs Alpha of measurement is 0.634(>0.6). The corrected Item total correlation of

observation variables are >0.3. Thus, this variable can be used in EFA analysis
Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's
Item Deleted

if Item Deleted

Total

Alpha

Correlation

Deleted

SIT22

6.45

2.311

.434

.556

SIT23

6.76

2.401

.539

.405

SIT24

5.91

2.828

.370

.631

if

Item

4.2.3.6 Reliability coefficient of Personal Factor

Reliability Statistics
Cronbach's

N of Items

Alpha
.557

Cronbachs Alpha of this factor items is .557 (< 0.6). Thus this factor will be eliminated from
EFA test.
Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's
Item Deleted

if Item Deleted

Total

Alpha

Correlation

Deleted

PER25

2.65

1.040

.394

PER26

3.33

.684

.394

if

Item

4.2.4 Factor analysis and Validity test

The number of underlying factors or dimension of each construct are extracted with the
exploratory factor analysis. EFA procedure allows for dropping some valid items from the scale
and group valid items to relevant groups. Principle axis factoring with Promax rotation is applied
to minimize the number of variables that have high loadings on each factors. In this analysis,
following criteria need to be satisfied:
- Two statistical measures generated by SPSS to help access the factorability of the data are
KMO (Kaiser-Meyer-Olkin) measure of sampling adequacy with that KMO from 0.6 to 1 is
a good factor analysis and Barletts test of Sphericity should be significant (sig<0.05) for
factor analysis to be considered appropriate
- Total Variance Explained needs to be more than 50%
- Eigen-value of each factor above 1 is accepted.
- Item that less than 0.5 will be eliminated and item that distributes in 2 or more
dimension/factors with difference less than 0.3 will be eliminated as well (Kaiser, 1979,
1974)

4.2.4.1 EFA for Independent Variables

After running Reliability Coefficient test, Factor of Personal was eliminated due to its
Cronbachs Alpha low. EFA test was run applied above method.
In the first few rounds, 6 variables-SER13, PT1, PT2,SER8, SER10, SIT24 that lower than 0.5
were deleted as the table below
Pattern Matrixa
Factor
1
SER14

.859

SER15

.794

SER17

.726

SER18

.697

SER16

.562

SER13

.375

.319

SER5

.789

PT3

.717

SER6

.650

SER7

.450

PT1

.339

PT2

.319

SER11

.755

PT4

.692

SER12

.616

PC19

.706

PC21

.597

PC20

.591

SER9

.994

SER8

.473

SER10

.370

SIT23

.827

SIT22

.606

SIT24

.443

Extraction Method: Principal Axis Factoring.

Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 7 iterations.

To continue the rotations, we eliminated SER9 and SER8 following rule mentioned above
Pattern Matrixa
Factor
1
SER14

.890

SER15

.777

SER17

.702

SER18

.688

SER16

.516

SER12

.723

SER11

.719

PT4

.642

SER9

.451

SER8

.400

SER5

.740

SER6

.730

PT3

.593

PC19

.710

PC20

.606

PC21

.559

SIT23

.781

SIT22

.612

Extraction Method: Principal Axis Factoring.

Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

And the final result is showed by table below

Pattern Matrixa
Factor
1
SER14

.888

SER15

.789

SER18

.718

SER17

.680

SER16

.513

SER5

.765

SER6

.700

PT3

.630

SER11

.719

PT4

.663

SER12

.647

PC19

.718

PC20

.578

PC21

.573

SIT23

.846

SIT22

.566

Extraction Method: Principal Axis Factoring.

Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

After a few rounds, 16 variables were retained in group with loading value greater than 0.5. The
Exploratory factor analysis of Customer Satisfaction in Fast food is resulted in 5 factors and
deletion of 8 items
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Bartlett's Test of Sphericity

.798

Approx. Chi-Square

1078.305

df

120

Sig.

.000

KMO measure of Sampling Adequacy is 0.798 more than 0.50 and Bartlett's Test of Sphericity
significant .000. Thus, the observed items correlate with each other on the overall scope.

4.2.4.2 EFA for Dependent Variable

We redo the same steps and criteria as above and the EFA result for Customer Satisfaction as
below
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Bartlett's Test of Sphericity

.754

Approx. Chi-Square

187.278

df

10

Sig.

.000

KMO measure of Sampling Adequacy is 0.754 more than 0.50 and Bartletts Test of Sphericity
significant .000. Thus, the observed variables correlate with each other on the overall scope.
Factor Matrixa
Factor
1
SA28

.735

SA29

.609

SA31

.585

SA27

.550

SA30

.487

Extraction Method: Principal Axis Factoring.

a. 1 factors extracted. 8 iterations required.

As result of factor matrix, these four variable higher than 0.5 and one variable which is SA30
less than 0.5 then this item will be eliminated from dependent component. Rerun the rotation
and we have final result as follow
Factor Matrixa
Factor
1
SA28

.689

SA31

.644

SA27

.585

SA29

.568

Extraction Method: Principal Axis Factoring.

All the items have loading value greater than 0.5 then they will be kept for the next data
analyzing step
4.2.5 Rename factors
After refinement measurement scale by using Cronbachs Alpha test and EFA method there are 5
factors remain in model. Factor 1 includes observed variables of (SER14, SER15, SER16,
SER17, SER18). We called this new factor Staffs attitude & appearance according the dimension
these variables measure. The other two factors were called Service Quality(PT3, SER5, SER6)
and Overall hygiene (PT4, SER11, SER12 ) as all the variables are about food and restaurant
cleanness. The last two factors keep their original names are Price (PC19, PC20, PC21) and
Situation (SIT22, SIT23)

Factors

Variables

Rename of factors

SER14
SER15

Staffs attitude and

SER16
SER17

appearance

SER18
SER5

SER6

Service Quality

PT3
SER11

SER12

Hygiene

PT4
PC19

PC20

Price

PC21

SIT22
SIT23
SA27
SA28

Situation

SA29

Customer Satisfaction

SA31

4.2.6 Empirical model

According to the factors analysis, the empirical model and hypothesis are conducted as below

HYPOTHESES 1: Staffs attitude and appearance will have positive impact on customer
satisfaction.
HYPOTHESES 2: Service quality will have positive impact on customer satisfaction.
HYPOTHESES 3: Overall hygiene will have positive impact on customer satisfaction.
HYPOTHESES 4: Price will have positive impact on customer satisfaction.
HYPOTHESES 5: Situation factor will have positive impact on customer satisfaction.

4.2.7 Test model & research hypotheses

4.2.7.1 Test model
In conceptual research model, Five Factors comprised were Product Quality(1), Service
Quality(2), Price(3), Situation Factor(4) and Personal Factor(5). After Cronbachs Alpha and
Exploratory factor analysis, there are 16 variables loading in 5 components (factors), they are
Staffs attitude and appearance, Service Quality, Overall Hygiene, Price and Situation Factor
We continue to test the Cronbachs Alpha of all the new factors except Price component with the
same criteria as the beginning.
The Cronbachs Alpha of all five factors are over 0.5, thus, can use for test model.
The Pearson correlation is used to test the correlation of factors before test model by regression.
4.2.7.1.1 Correlation Testing
Correlation statistics is used to test for possibility of relationship between dependent and
independent factors.
Correlations
Staffs_Attitude_ap

Service_quality Overall_hygi Price

pearance

Customer_Satis

factor

faction

.048

.345**

.508

.000

196

196

-.012

.432**

.869

.000

196

196

-.013

.368**

.000

.857

.000

196

196

196

-.118

.549**

.100

.000

ene

.393

Situation_

**

.348

**

.337

**

Staffs_Attitude_appea
rance
196

.393
Service_quality

**

**

.000

196

.404

**

196

.337

196

.404

.000

**

**

.001

196

196

.287

196

.236

**

.236

.000

.000

196

Situation_factor

196

196

.348

Price

.000

.000
196

Overall_hygiene

.000

.287

**

**

**

.000

.001

.000

196

196

196

196

196

196

.048

-.012

-.013

-.118

-.045

.508

.869

.857

.100

196

196

196

196

**

**

**

**

.527
196

196
1

Customer_Satisfactio

.345

.432

.368

.549

-.045

.000

.000

.000

.000

.527

196

196

196

196

196

196

**. Correlation is significant at the 0.01 level (2-tailed).

According correlation matrix, the independent variables have correlation with dependent
variable. The Pearson correlation of factors of Staffs attitude and appearane, Service Quality,
Overall hygiene, Price, Situation in order are 0.345, 0.432, 0.368, 0.549 and -0.45 .They showed
that these factors are relatively and positively have relationship with Customer Satisfaction.
4.2.7.1.2 Regression analysis
Coefficientsa
Model

Unstandardized Coefficients

Standardized

Sig.

Coefficients
B

Std. Error

(Constant)

.984

.280

Staffs_Attitude_appearance

.046

.054

Service_quality

.224

Overall_hygiene

Beta
3.511

.001

.054

.840

.402

.055

.260

4.087

.000

.111

.059

.119

1.881

.061

Price

.350

.049

.437

7.184

.000

Situation_factor

.006

.043

.008

.143

.886

a. Dependent Variable: Customer_Satisfaction

The result showed that staffs attitude, overall hygiene and situation have Sig. >0.05 mean that
they do not explain for customer satisfaction, then they will be eliminated from model. The other
factor, price and service quality with Sig<0.05have showed that they can explain for depend
variables. Then the independent components that have positive affection on customer satisfaction
are service quality and price
Coefficientsa
Model

Unstandardized Coefficients Standardized

Sig.

Collinearity Statistics

Coefficients

(Constant)
1 Service_quality
Price

Std. Error

1.306

.207

.275

.049

.380

.046

a. Dependent Variable: Customer_Satisfaction

Beta

Tolerance

VIF

6.323

.000

.321

5.581

.000

.944

1.059

.474

8.247

.000

.944

1.059

The p-value in Beta column are all positive (with Sig<0.05) that shows the positive influence of
all independent variables to dependent variable. The larger value of Price (0.474) proves that this
factor has the greater affect on customer satisfaction than service quality and price. Besides, the
research model got no multi-collinearity problem because VIF of all factors are less than 2.
Model Summary
Model

R Square
a

.632

.399

Adjusted

R Std. Error of the

Square

Estimate

.393

.50106

a. Predictors: (Constant), Price, Service_quality

According to the model summary, the research model have R square = 0.399 and Adjusted R
square coefficient is 0.393 (significant < 0.001). This indicates that 39.3% of the variability in
Satisfaction can be explained by independent variables Price and Service Quality
4.2.8 Linear equation of Customer Satisfaction in Fast food
Based on Regression analysis result, Hypothesis 1, 3, 5 will be rejected as these factors have no
relationship with Satisfaction in this case of study.

Summary result of testing Hypothesis

No. Hypothesis
1

Staffs attitude and appearance will have positive impact on .036

P.(Sig) Result
.573

Rejected

.000

Accepted

.061

Rejected

0.436 .000

Accepted

customer satisfaction
2

Service Quality will have positive impact on customer .260

satisfaction

Overall Hygiene will have positive impact on customer .119

satisfaction

Price will have positive impact on customer satisfaction

Situation factor

will have

positive impact on customer .008

.886

Rejected

satisfaction.

4.2.9 T-test and ANOVA

This section is an addition of the research. It will not answer the main question but to discover
some findings that may be useful for recommendation. The T-test and One Way Analysis of
Variance will be run on demographic group of each independent factors
With significant level 5%, result having Sig< 0.05 shows that there is difference in Satisfaction
evaluating among object groups.
4.2.9.1 T-test for Gender
Group Statistics
Gender

Mean

Std. Deviation

Std. Error Mean

Male

86

3.4767

.60101

.06481

Female

110

3.5364

.67545

.06440

Customer_Satisfaction

F= 0.610
Sig= 0.436

The result above shows that significant values are over 0.05, which proves that there is no
difference in general satisfaction level between male and female
4.2.9.2 ANOVA test for Age, Occupation, Frequencies and Brand names

Sig.

Age

1.147

.320

Occupation

.831

.635

Frequency

2.600

.002

Brand

.660

.811

The result of ANOVA test shows that there are almost no Sig value smaller than 0.05 except for
Frequencies

at significance 5% which equal to 0.002. This mean that general Customer

Satisfaction differs among people who have fast food in different frequency level.

4.3 Discussion and Recommendation

4.3.1 Price
PC19 : Price is reasonable because of its perceived services and quality
PC20: Price is more reasonable comparing to other brands
PC21: Price is within your affordable to have regularly
This is an significant factor which has strongest impact on overall Customer Satisfaction. When
put price in context of perceived food and service quality, this factor attain satisfaction from
customers. The more reasonable price will cause greater Satisfaction in fast food eaters. In
another research which examined the effects of quality dimensions and price with customer
satisfaction in fast food restaurant in U.S, results also showed that perceived price moderates the
relationship between perceived quality (food and services) and customer satisfaction. (Ryu,
2009)
Reasonable Price will enhance food and services satisfaction. Much of the competitive fast food
products have similar standards in quality, customers would more care about price. So that what
make the brands more stand out than the others obviously is its reasonable price. However, to
give a better price than other competitors it does not mean that service providers could just
reduce their price, it more to serve customer with higher quality of food and quality comparing to
other brands with the competitive price.
For further concerns, price of fast food in Vietnam is not within affordable for everyone
(mean=3.08). Therefore, to maximize fast food consuming among population, it is necessary to
take appropriate management practices in order to reduce cost when it is possible. For example,

recently, KFC and Lotteria, two leading fast food brands in Vietnam have offered Economic
Combos which created high positive responses from customers. After all, more reasonable the
price is, the higher satisfaction it causes among fast food buyers.
4.3.2 Service Quality
PT3: Menu has variety of options
SER5 : Serving system is smart, quick and accurate
SER6 : Locations and service hour are convenient
Service Quality is another affecting factor of Customer Satisfaction.
This finding has explained by the latest research about fast food consumer behaviors of FTA.
The study indicated that 80% consumers enjoy fast food either with friends or family. In another
words, fast food is rarely taken alone but within groups of people. Rationally, variety of options
in menu has satisfied this quick-served food eaters. Consumers can find rice, sandwiches, pies or
ice-creams in one place only. Actually, one of the biggest fast food chain, Mc Donald is the
numerous kind of dishes on its menu.
To adding more for the satisfaction, convenient locations and service hours together with quick
service system have raise more good points for fast food restaurant in customers eyes. In
another result from FTA research also showed that people in Ho Chi Minh City love the quick
serving time of fast food restaurants. In this city it is easily to spot fast food stores at
neighborhood schools or at busy cross corner that consumers can stop and grab quickly and or
at malls and plazas, where youngsters often hang-out and enjoy food together.
However, all these things above cannot obtained without marketing researches. Local brand
names normally do not pay much attention in studying target customers, which has brought
disadvantages for them when it comes to encounters with international franchises.
Therefore, it is necessary to study marketplace as it will help business to advance their customer
satisfaction by archiving vary products in menu as well as adjusting and improving their service
to be more fit with customers expectations.

CHAPTER 5- CONCLUTION & RECOMMENDATIONS

5.1 Conclusion
The research is conducted with quantitative method in order to evaluate the current customer
satisfaction of young adults in fast food industry in Ho Chi Minh city as well as to build a
measurement scale for influencing factors and identify their impact level to customer satisfaction
of fast food consumers.
The analysis process and result are summarized as follow
-

Firstly, demographic and descriptive statistic were run and the result is found that level of
customer satisfaction is moderate.

Secondly, from 31 initial observation variables, through reliability test, one component
which is personal factor was eliminated. In the next step, with EFA method in a few
rounds of rotation, 8 observation variables were deleted from original model. The other
16 observations were loaded into 5 components that meet criteria to continue to be
analysed in regression. After running regression test, the result indicates that there are 2
factors with 6 variables positively impact on customer satisfaction in fast food franchise
in Ho Chi Minh city. They are Price (3 variables) and Service Quality (3 variables).
Between these factors, Price got greater effect on overall Satisfaction with beta value of
0.436.

Finally, T-test and ANOVA were conducted and results occurred that there are almost no
difference in overall satisfaction of fast food among groups of people except for group of
frequency. It means that the satisfaction of fast food consumers differs among those who
are more or less frequency in having fast food per month.

With all of these outcomes, purposes of the study are accomplished and research questions are
answered.

For the first question, What is the current customer satisfaction of customer with
their fast food favourite brand names? In general, consumers are relatively satisfied
but they are not completely satisfied as all means value were over 3 but none of them
over 4.

Regarding to second question, What are factors that affect customer satisfaction when

having fast food of their favourite brands? The explored factors through out the study
are Price and Service Quality.

5.2 Limitation and suggestion

Although Customer Satisfaction in fast food is not a new topic, researches to measure fast food
satisfaction in Vietnam is rare. Moreover, mostly fast food customer satisfaction studies in
Vietnam were conducted in context of a specific brand. However, this study is different. It was
designed that through comparing satisfactions of leading fast food brand names in market place,
factors have most affects to customer satisfaction are discovered. It is to find out why customers
would be satisfied more with this brands but not one another. However, there are still some
limitations exist in this study.
As the research is conduct to measure satisfaction in fast food franchise of consumers in Ho Chi
Minh city, this research outcomes is not applicable for general customer satisfaction in fast food.
Moreover, in scale of the research, the sample size 196 was not large. Hence, accuracy of result
is relative. Besides, researcher only examines the influence of product quality, service quality,
price, situation factor and personal factor. There are might be other components which affect
customer satisfaction in Ho Chi Minh city that have not discovered and mentioned in this study.
For further research, future researchers should consider more factors to develop the model of the
research. Its direction is open for scholars to fill the lack of this study due to the difficulties in
collecting data, limitation of resources and finance in conducting survey.
Finally, this research may not cover all aspects to propose a guiding or planning for business,
however, it is still valid in certain cases that may help companys strategies.

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Appendix 1:

QUESTIONNAIRE (ENGLISH VER.)

Determinants of Customer Satisfaction. An empirical study in fast food
industry in Ho Chi Minh City
Part I: Personal information
1. Your age
Under 20

20-30

31-40

Over 40

2. Your gender
Male

Female

3. Your occupation
Student

Officer

Worker

Others

Over 4

4. Having fast food frequency (per month)

Under 1

5. Your favorite fast-food chains (Please choose one)

KFC (Kentucky Fried Chicken)
Lotteria
Jollibee
Carl Jr
Burger King
Others............

Part II: Customer Satisfaction measurement

Please rank your choice from 1 to 5 following the scale below according to your feelings and
experiences toward your favorite fast food brands

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

Product quality
1

The food has good taste

The food is well presented

Menu has variety of options

Food hygiene of the brand is good

Service quality
5

Serving system is smart, quick and accurate

Locations and service hour are convenient

Parking area is safe and convenient

Exterior design of restaurants is attractive

Decorations of the restaurants are modern and beautiful

10

The atmospheres of restaurants is comfortable

11

Dishes, bowl, utensils...are hygienic

12

Floors, kitchens, toilets dining area are clean

13

Tables and chairs of restaurants make me comfortable

when dining in (reasonable design)

14

Employees uniforms are nice and good looking

15

Employees are friendly and sincere toward customers

16
17

Employees ask for customers orders politely and

response in well manner
Employees are willing to serve and provide help

18

Employees listen carefully and resolve well issues and

concerns of customer

Price
19

Its price is reasonable because of the services and quality

you get

20

Its price is reasonable comparing to others

21

Its price is within your afford to have regularly

Situation factor
22

23
24

The popular of the brand name has its favorable to make

you satisfied
Your friends and family satisfied with this brand name
makes you more satisfied
Its locations is easily accessed to you

Personal factor
25

You have good feeling for the brand image

26

You like its Westernized style

Customer satisfaction
27

You are satisfied with the services

28

You are satisfied with the food

29

You are satisfied with the price

30

You are satisfied because the franchise is your favorite

31

Overall, you are completely satisfied

Thank you so much for your cooperation!!!

Appendix 2:

QUESTIONNAIRE (VIETNAMESE VER.)

Determinants of customer satisfaction. An empirical study in fast food
industry in Ho Chi Minh City
Phn I : Thng tin c nhn
1. Xin cho bit tui ca bn
Di 20

20-30

31-40

Trn 40

2.Gii tnh ca bn
N

Nam
3. Ngh nghip ca bn
Sinh vin

Nhn vin vn phng

Cng nhn

Khc

4. Bn thng n thc n nhanh bao nhiu ln trong mt thng

di 1 ln

1ln

2ln

3ln

4ln

5. Nhn hiu thc n nhanh a thch nht ca bn (Xin vui lng chn mt)
KFC (Kentucky Fried Chicken)
Lotteria
Jollibee
Carl Jr
Burger King
Khc............

trn 4 ln

Phn II : Mc hi lng ca bn
Da vo cm nhn v kinh nghim bn c vi nhn hiu thc n nhanh yu thch ca bn.
Xin hy cho im s la chn bn di theo tiu ch sau y

Rt khng

Khng

Bnh

ng

Rt khng

ng

ng

thng

ng

Cht lng thc n

1

Thc n ca thng hiu bn yu thch c hng v

rt ngon

Thc n c trnh by bt mt, hp dn

Thc n phong ph, c nhiu s la chn

Cht lng v sinh thc phm rt tt

Cht lng dch v

5

Phc v khch hng nhanh nhn, gn gng v chnh

xc
a im cc ca v thi gian phc v thun tin cho
khch hng

Bi gi xe ca ca hng thun tin v an ton

Thit k ngoi cnh nh hng thu ht

Trang tr bn trong hin i v p mt

10

Khng kh ca hng mang li s thoi mi

11

Chn, a, dao, mung...sch s v v sinh

12

13
14

Sn nh, nh v sinh, bp v khu vc n ung lun

sch s
Bn gh ca ca hng c thit k thn thin, thun
tin cho thc khch
ng phc nhn vin p v gn gng

15

Nhn vin thn thin v ha nh vi khch

16

Lch s v nh nhn khi khi c khch hng goi mn

17

18

Nhn vin lun sn sng phc v v gip khch

hng
Nhn vin lun lng nghe v gii quyt nhng khc
mc, vn ca khch hng.

Gi c
19

Gi c hp l v dch v v thc n bn nhn c ti

y

20

Gi c hp l hn cc thng hiu thc n nhanh khc

21

Mc gi ny nm trong kh nng ca bn

Nhn t tnh hung

22
23
24

S ni ting ca thng hiu ny phn no khin bn

hi lng hn
Ngi thn v bn b hi lng khin cho bn hi lng
Thng hiu ny d dng nhn thy v tip cn hn
nhng thng hiu khc

Nhn t c nhn
25

Bn c cm nhn tt v hnh nh thng hiu ny

26

Bn thch phong cch Ty Ty ca thng hiu ny

S hi lng
27

Bn hi lng vi dch v ca nhn hiu ny

28

Bn hi lng vi thc n y

29

Bn hi lng vi gi c y

30
31

y l thng hiu bn yu thch nn bn hi lng v

n
Nhn chung, bn hon ton hi lng

Cm n bn rt nhiu!!!