1.

Executive summary:
1.1. Research Objectives
The proposal helps shape the research into an appropriate direction with many
careful considerations. From collecting secondary data relating, there is a significant
management problem of Vietjet Air coming up. Then, Vietjet Air performance will be
examined in three factors: service quality, product quality, price and two externally
additional ones like: situational factors and personal factors to examine the correlation
between them and customer satisfaction. Finally, after analyzing primary and secondary
data, we will make some recommendations objectively basing on the research results
whether Vietjet should improve to develop the brand image.
1.2. Outlines
Here are some main contents which will be shown in detail in this proposal. After
introducing company background, VietJet ‘s management problem will be defined. Then
the research will discuss the relationship between customer satisfaction and three factors
above. We will formulate the research design consisting of choosing research type,
methodology, techniques, sample and etc. Lastly, the proposal will describe the process of
collecting and analyzing data.
2. Problem definition
2.1. Background to the problem:
Currently, there are 72 international airlines and 4 Vietnamese airlines operating more
than 200 regular international routes and charter flights from 25 countries / territories to 8
destinations in Vietnam.
The aviation market in the first 6 months of 2019 continued to grow, but the speed
has slowed down compared to the same period in 2018. Specifically, the growth of the
aviation market in the first half of 2019 reached 9.4. % over the same period in 2018 and
production reached 38.5 million visitors. While the same period last year this figure
reached 14%.
The Aviation Administration's report shows that in the first half of 2019, Vietnamese
airlines made more than 153,000 flights, an increase of 2.4% compared to the same
period of 2018. Of which, the number of flights taking off on time was 130,000. flights,
reaching 84.8%, down 1.3 percentage points compared to the same period in 2018. The
number of flights canceled was 274 flights, accounting for 0.2%, an increase of 0.1
percentage points compared to the same period. period 2018.
 Vietjet Aviation Joint Stock Company (Vietjet) is the first airline in Vietnam operating
a new generation aviation model, saving & flexible cost and providing a wide range of
services for customers to choose. Not only does air transport, Vietjet also provides
consumer goods and services needs through advanced e-commerce technology
applications. Vietjet is an official member of the International Air Transport Association
(IATA) with the IOSA Operational Safety Certification. Vietjet has just been rated aviation
safety at the highest level in the world with 7 stars by AirlineRatings.com, the world's
leading reputable organization specializing in safety and products assessment of global
airlines. Earlier, AirlineRating also honored Vietjet with the award of "Best Ultra Low-Cost
Airline 2018 - 2019". The airline also recently reached the top 50 global airlines in terms of
operations and financial health in 2018, according to Airfinance Journal.
Currently, Vietjet operates 64 A320 and A321 aircraft, operates more than 385
flights a day and has transported over 65 million passengers, with 105 routes covering
destinations in Vietnam and international routes. To Japan, Hong Kong, Singapore, South
Korea, Taiwan, China, Thailand, Myanmar, Malaysia, Cambodia ... The airline plans to
develop a wide network throughout the Asia-Pacific region. continued to expand routes in
the region and signed contracts to procure new and modern aircraft with prestigious
aircraft manufacturers in the world. The Board of Directors includes 6 members, among
those Mrs Nguyen Thanh Ha was appointed as the Chairwoman of the Company’s Board
in 2007 and Mrs Nguyen Thi Phuong Thao is the Company’s Chief Executive Officer
(CEO).

Cancellation of Vietjet flight during the inspection period from January 1, 2018 to
March 20, 2019 of the Aviation Department shows that: Vietjet Air generates more than
148,000 flights with a punctual rate of 83.56%, the number of slow flights is 24,394 flights.

The ratio of delayed flights of Vietjet is 16.44%, of which the number of delayed
flights from 15 minutes to 2 hours is 21,508 flights, accounting for 14.49%; The number of
slow flights from 2 hours to 3 hours is 2,014 flights, accounting for 1.36%; The number of
slow trips over 3 hours was 872 trips, accounting for 0.59%; The number of slow trips over
4 hours was 381, accounting for 0.25%. In addition, the number of canceled flights was
184, accounting for 0.112%.
 According to statistics in 2018, Vietjet had delayed flights accounted for 15.8%
(equivalent to 18,892 flights), an increase of 1.4% compared to 2017 (14.4%). As such,
the solutions launched in 2018 for Vietjet have not been really effective.

2.2. Statement of the problem:

However, Vietjet has recently suffered from many serious accidents involved in flight
safety over the second-half year of 2018. Specifically, one of the cases which was
considered as the most serious is that on 29th November, nose wheels of the domestic
Flight VJ356 from Ho Chi Minh City to Buon Ma Thuot Airport flew off while landing. 207
passengers on board had to leave all their baggage behind and escape the plane through
emergency doors and six of them received minor injuries as a result of the evacuation and
were taken to local hospitals. On 25th December, several minutes after takeoff, Vietjet
Airlines flight VJ689 departed from Cam Ranh International Airport received a technical
alarm which forced the captain to bring the plane back to Cam Ranh Airport.
Unfortunately, the flight then mistakenly landed on a runway which was completed but not
put into operation. This accident resulted from technique problem and then the flight crew
was suspended by the Civil Aviation Authority of Vietnam (CAAV) for further investigation.
In addition, hundreds of passengers on the VJ198 flight screamed in fear and prayed as
their plane circled in the air for around 30 minutes and landed at the Tan Son Nhat
International Airport soon after taking off for Hanoi. However, a thorough inspection found
the warning signals were fake and there was no technical issue with the plane. A similar
incident took place on October 30 with a Vietjet Air plane heading to Busan in South Korea
from Hanoi. The plane had to make emergency landing in Hong Kong to check technical
issues. The conclusion was that a wrong warning signal had triggered the incident. These
incidents posed a serious threat to aviation safety so CAAV decided to re-evaluate Vietjet
's operations at four airports: Noi Bai in Hanoi, Danang International in central Vietnam,
Tan Son Nhat in Ho Chi Minh City and Cam Ranh in the south-central region. With a rise
in the number of passengers, Vietjet purchased 50 new airplanes. Due to this sudden
increase, Vietjet cannot control properly over all flights and ensure the safety for
customers. CAAV also interfere Vietjet' s expansion capacity to ensure that no similar
problem will happen. “Flight safety” is always passengers’ top concern so Vietjet’ s
continuous accidents may partly affect their attitude toward this low-cost airline brand.
Furthermore, the competitor “Bamboo Airline” recently joined the market, therefore, Vietjet
should plan to enhance its image as well as improve the quality to protect its loyal
customers. This study aims to identify which field the company should focus on among
those features: product, service quality and pricing, to enhance brand image and earn
customer satisfaction.
Manager Decision Problem “Of the three factors - product, service quality and
pricing, what should Vietjet focus on to improve their customer satisfaction”?
3. Research Background
According to the article “What is customer satisfaction?”. Customer satisfaction can
be measured in terms of how products and services supplied by a company meet or
surpass customer expectations. Moreover, it can be defined as “the number of customers,
or percentage of total customers, who reported experience with a firm, its products, or its
services exceeds specified satisfaction goals.” High customer satisfaction will encourage
consumers to use the services or products as well as help the company attract more
customers. To get high customer satisfaction, the company should keep an eye on their
customers as well as understand their expectations about the products and services.
Brand image
Building a brand image is very important because it is the first thing that the
customers recognize your company and also contributes greatly to the decision whether
they use the company's products or services or not. In addition to this, it may gain high
score for customer satisfaction.
Service Quality
If the service quality is good and meet the customer expectations, customers will
consider using the service again. However, there is no such thing as a good service, but
the product quality is not. So, these two must go together and should not be separated.
Product Quality
Greater product quality have a good relationship with customer experience and
hence are more appealing to them. The better product quality, the higher probability that
customers will use the products again. In a word, a variety of product quality enhances
customer satisfaction because they can find the suitable product with their needs.
Situational factors
A good company can always meet the needs of customers. The company should
give customers more choices, many types of products and services for the customer to
choose the most suitable decision for them.
Personal factors
 Personal factors also significantly affect consumer satisfaction. If a company can
serve many different individuals vs different conditions, it can gain higher customer
satisfaction than other companies. They can diversify types of products and services to
suit different customer characteristics.
4. Research design
This study are both descriptive and exploratory research. This research is
conducted to determine to what extent products, service quality and pricing are related to
customer satisfaction of Vietjet. Some criteria about those factors have been listed down
for evaluating and examining the relationships. The factors that are related to the problem
were taken from secondary data. Primary data was from online and offline survey with
many questions. Therefore, This study conducted both exploratory and descriptive
research.
Our group use Nominal Scale to classify our answerers into different groups such
as: Age, Career and Income. To analyze 3 factors, we use Likert Scale to determine the
level of difference between values (with codes such as 1 = strongly disagree, 2 = disagree,
3 = neutral, 4 = agree, and 5 = strongly agree). There are 3 independent variables
including product, service quality and pricing, with Customer satisfaction as a dependent
variable. Through the result collected from research, we can analyze the relationship
between 3 independent variables and the dependent variable.
Questionnaire development:
I/ Have you ever used Vietjet Air’s services?

□ Yes
□ No

II/ Brand recognition

1. When mentioning Vietjet Air, I think it is a low cost carrier.

Totally disagree □ □ □ □ □ Totally agree

2. When mentioning Vietjet Air, I think it is a dynamic airline.

Totally disagree □ □ □ □ □ Totally agree

3. When mentioning Vietjet Air, I think it is an airline with many scandals about
service quality.
Totally disagree □ □ □ □ □ Totally agree

4. When mentioning Vietjet Air, I think it is an airline which always delays.

Totally disagree □ □ □ □ □ Totally agree

III/ Evaluation on product quality

1. The seats on Vietjet aircrafts are modern, clean and comfortable.

Totally disagree □ □ □ □ □ Totally agree

2. Vietjet Air provides delicious food and beverage.

Totally disagree □ □ □ □ □ Totally agree

3. The aisles on Vietjet aircrafts are wide and comfortable.

Totally disagree □ □ □ □ □ Totally agree

4. Vietjet uniform are good looking.

Totally disagree □ □ □ □ □ Totally agree

5. The magazines and entertaining programs on Vietjet flights are sufficient.

Totally disagree □ □ □ □ □ Totally agree

6. Vietjet departures and lands on time.

Totally disagree □ □ □ □ □ Totally agree

7. The flight schedule of Vietjet is convenient and sufficient for all passengers.

Totally disagree □ □ □ □ □ Totally agree

IV. Service quality

1. Vietjet’s check-in proceedings are fast and convenient.

Totally disagree □ □ □ □ □ Totally agree

2. Vietjet’s staffs are always willing to help passengers with good manners.

Totally disagree □ □ □ □ □ Totally agree

3. Vietjet’s staffs are well equipped with language and knowledge.

Totally disagree □ □ □ □ □ Totally agree

4. Vietjet deals with customers’ complaint professionally and efficiently.

Totally disagree □ □ □ □ □ Totally agree

V/ Pricing

1. Vietjet offer very low-cost tickets.

Totally disagree □ □ □ □ □ Totally agree

2. Vietjet’s ticket price is stable.

Totally disagree □ □ □ □ □ Totally agree

3. Vietjet usually does promotions.

Totally disagree □ □ □ □ □ Totally agree

4. Food and beverage of Vietjet are at good price.

Totally disagree □ □ □ □ □ Totally agree

VI/ Situational factors

1. I usually choose Vietjet Air for vacation flights.

Totally disagree □ □ □ □ □ Totally agree

2. I usually choose Vietjet Air for business flights.

Totally disagree □ □ □ □ □ Totally agree

3. I usually choose Vietjet Air for urgent flights.

Totally disagree □ □ □ □ □ Totally agree

VII/ Personal factors

1. What’s your age?

□ 18 – 22

□ 23 – 30

□ Above 30
2. What’s your job?

□ Student

□ Others

3. What’s your salary?

□ Not yet

□ Under 5 millions VND

□ 5 – 10 millions VND

□ Above 10 millions VND

5. Data analysis results

The survey responses will be converted into SPSS software and analyzed.
Demographic analysis:
Gender
SPSS Analysis
After analysing demographics of respondents, we are going to test whether customer
satisfaction vary due to a demographic independent variable or not. Analysis 1 will test
how satisfaction change due to consumer’s gender. Analysis 2 is similar with the
independent income.

Analysis 1:
Table 1

Test of Homogeneity of Variances

SAT

Levene Statistic df1 df2 Sig.

2.799 1 60 .100

Table 2

ANOVA

SAT

Sum of Mean
Squares df Square F Sig.

Between .015 1 .015 .023 .879

Groups
Within Groups 39.795 60 .663

Total 39.810 61

Analysis 2:

Table 3

Test of Homogeneity of Variances

SAT

Levene Statistic df1 df2 Sig.

1.272 3 58 .293
Table 4

ANOVA

SAT

Sum of Mean
Squares df Square F Sig.

Between 5.242 3 1.747 2.932 .041

Groups
Within Groups 34.568 58 .596

Total 39.810 61

According to table 1, it is eligible for Anova analysis because p>0.05 which means that
variance is not different among groups of independent variables. Beside, in table 2,
p=0.879>0.05 which indicates that there is no difference in satisfaction between the two
genders. At the same time, we also test whether customer satisfaction vary due to
consumers income. According to table 3, it is eligible for Anova analysis since p > 0.05, it
means that variance is also not different among groups of independent variables. In table
4, p = 0.041 < 0.05 which indicates that there is difference in satisfaction between four
groups of income.

Analysis 3: Correlation

In order to find out which factors should be improved so as to enhance satisfaction of

customers, we are going to test the Pearson correlation. The question we want to answer
is that: “Are there any relationships among these key factors?”
Table 6

Correlations

REC PRO SER PRI SAT

REC Pearson 1 .390** .209 .171 .268*

Correlation

Sig. (2-tailed) .002 .104 .185 .035

N 62 62 62 62 62

PRO Pearson .390** 1 .702** .456** .711**

Correlation

Sig. (2-tailed) .002 .000 .000 .000

N 62 62 62 62 62

SER Pearson .209 .702** 1 .530** .625**

Correlation

Sig. (2-tailed) .104 .000 .000 .000

N 62 62 62 62 62

PRI Pearson .171 .456** .530** 1 .385**

Correlation

Sig. (2-tailed) .185 .000 .000 .002

 N 62 62 62 62 62

SAT Pearson .268* .711** .625** .385** 1

Correlation

Sig. (2-tailed) .035 .000 .000 .002

N 62 62 62 62 62

According to the table , sig. (2-tailed) of 3 factors: PRO, SER, PRI, REC are lower than
0.05. Thus, we reject the null hypothesis that there is no correlation between satisfaction
and product quality, service quality, price, brand recognition. There is a relationship
between satisfaction and those 4 factors and customer satisfaction.
6. Conclusion and recommendations
a. Conclusion
According to the data analysis, the researchers successfully prove that brand recognition,
product quality, service quality, pricing have a big impact with Vietjet Air domestic flight.
Our research focuses on student segment, and the major customer proportion in this
segment female who are from 18 to 22 and have no income or under 5 million VND.
b. Recommendation
Improving the quality or increasing the number of airplanes:
Based on the research, Vietjet Air has the biggest problem with the delays of each flight.
To tackle this problem, improving quality or increasing the number of airplanes is a “must-
do” action. Therefore, the airplane will face less problem on the flight and Vietjet will have
more airplane to ensure the official flight.
Ensuring the capacity and essential skills of pilots and flight attendant
As the result from the survey, we could see that there are still some people who are quite
unsatisfied with the flight since it was not on time and the professionalism of the flight
attendant. Therefore, to ensure the capacity and essential skills of pilots and flight
attendant, Vietjet should give bonus, provide training program each period of year and
have a website for customers to send their feedback. This action can encourage pilots and
flight attendants to work their best and have enough skills to tackle the problem.
Improving food, flight service:
Customer satisfaction also depends a lot on the services that customers received during
the flight. Therefore, Vietjet need to improving their food quality ( diversify the menu, keep
the food always fresh, provide a variety of choices with affordable price,...). The flight
attendants need to be trained to always have a good attitude toward customers, be willing
to help whenevers customers come up with any problems during the fight, respond
immediately to customers questions and requirements, communicate quickly and
apologize to customers whenever there are problems arising (cancellation or delay of
flights).
Promotion
Although, Vietjet Air is a brand which has the saving and flexible cost. However, according
to our research, customers also want to have more promotion campaign such as discount
for holidays or the birthday of loyal customers. Furthermore, they should have Creative
project (social media, print-ad, out-of-home media) to attract more customers from student
segment.

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