Professional Documents
Culture Documents
In International Business
By
ID: MBA04033
September 2013
FACTORS INFLUENCING LOCAL CUSTOMER LOYALTY,
In International Business
by
ID: MBA04033
September 2013
Under the guidance and approval of the committee, and approved by all its members, this
thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:
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Chairperson Advisor
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Committee member Committee member
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Committee member Committee member
Acknowledge
To complete this thesis, I have been benefited from many people around me.
First of all, I specially thank my advisor, Mr. Ho Nhut Quang, for guiding me
patiently to complete the thesis. His information and advice are very valuable not only
for this research but also for my real life. Thank you with all of my honors.
Next, I would like to thank all of teachers in MBA department of IU, who
gave me a lot of knowledge in business field. It is lucky for me when I have been
Finally, I am very thankful to my family and friends, who always support and
I would like to declare that, apart from the acknowledged references, this
thesis either does not use language, ideas, or other original material from anyone; or
has not been previously submitted to any other educational and research programs or
institutions. I fully understand that any writings in this thesis contradicted to the above
statement will automatically lead to the rejection from the MBA program at the
This copy of the thesis has been supplied on condition that anyone who
consults it is understood to recognize that its copyright rests with its author and that
no quotation from the thesis and no information derived from it may be published
Table 4.2: Number of flights that respondents made in one year .............................. 31
Table 4.11: KMO and Barlett‟s test for Independent variables ................................. 37
Table 4.14: Correlation between indirect factors and direct factors .......................... 39
Table 4.27: Correlations between TRU, CSA, BRI and LYT ................................... 46
Table 4.28: R-square value between TRU, CSA, BRI and LYT ............................... 47
Table 4.29: ANOVA between TRU, CSA, BRI and LYT ......................................... 47
Table 4.30: Coefficients between TRU, CSA, BRI and LYT .................................... 47
Table 4.31: Coefficients between indirect factors and Customer Loyalty ................. 48
Table 4.33: Evaluate the relationship between influence factors and Customer
Loyalty ....................................................................................................................... 51
This study was conducted in order to evaluate the influence of relevant factors on
Customer Loyalty of Vietnam low cost airline, VietjetAir. The direct factors and indirect
factors influencing loyalty of customer are defined and be built as an airline customer
loyalty model. The quantitative method was used as the key method with the assistance
asked to fill in the paper survey; and their remarks would be the valuable contribution
for the research completion. Finally, through this research, VietjetAir may figure out
their gaps and also their strong points which help them bring out the suitable actions to
1. Introduction
1.1. Background
Vietjetair operated its first flight in the late December 2011. After more than a
year, Vietjetair has got approximate 16% market share, and it is standing higher than
Jetstar Pacific (13%) and Air Mekong (3%). (Source: To Ha, Laborer‟s Newspaper,
2013). In the beginning, Vietjetair had 3 airplanes and now it has 6 with many domestic
destinations as: Hochiminh, Nha Trang, Hanoi, Phu Quoc, Da Nang, Hai Phong, Hue,
Vinh, Cam Ranh and 1 foreign route to Bagkok. It is an amazing development in the
and Bank for Investment and Development of Vietnam JSC (BIDV) with the initial
capital is 600 billions VND. Vietjetair Corporatin was got the license to flight from the
Major of Ministry of Transport in 2007. In the first plan, Vietjetair intended to operate
first flight in 2008. But due to many reasons such as fuel fluctuation and brand
disputation, Vietjetair had to postpone opening flights. After a few times delay,
Vietjetair operated its first flights from Hochiminh to Hanoi in 25th December 2011 as
When Vietjetair stepped into air transport industry, there are total 5 commercial
airlines which serve in domestic routes. They are Vietnam Airline, Jetstar Pacific,
Airmekong, VASCO and Vietjetair. Therefore, the competition between those Airlines
have being increased and more fierce. Air Mekong with the incorrect strategy decided to
stop flying in late February 2013. It cannot continue maintaining the loss-making
operation and Airmekong is the second looser in air transport industry after Indochina
Airline.
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Vietjetair is going in different way. It learned the model from one of the most
successful low cost airline, AirAsia, to be its loadstar. And Vietjetair is the second low
The concept of customer loyalty was given by Oliver, 1999 is: “a deeply held
future, thereby causing repetitive same brand or same brand set purchasing, despite
situational influences and marketing efforts having the potential to cause switching
behavior”.
There are some major benefits of customer loyalty. First, loyal customers are
repeat customers. They will return to buy product/service again and again. It means that,
they will bring the steady income for company which sell product or supply service.
Moreover, loyal customer will introduce product/service to his family, friends… and it
brings more benefit to business. Second, the company does not have to spend much
money to advertise the product to loyal customers. And the loyal customers are willing
important. There are many strong competitors who always try to build their brands,
giving reasonable ticket price, improve service… to win market share. The 2 previous
samples of Indochina Airline and Airmekong had to stop their business because they
could not keep passengers stay with them. Realize the lessons from previous Airlines,
Vietjetair are trying more and more to win the loyalty from customers.
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1.3. The problem statement
The economy is still in the difficult periods, the fuel price is not stable, the
competition is more and more fierce. Vietjetair has to face many problems. But the
biggest issue now is that the number of consumers that uses Vietjetair more than one
time is going down (Source: Vietjetair Annual report, 2012). The Board of Director of
Vietjetair recognizes the issue and they are determined to find out the reasons why that
issue occurs. Besides that, after a year operating, they also want to have a research to
examine the factors which influence the customer‟s satisfaction, customer‟s perception
Due to those reasons above, I decided to choose the topic for my thesis:
After defining the research problem, this thesis is going to follow with research
question:
“What factors influence the local customers‟ loyalty of the Vietnamese low
This research will identify the factors which influence the loyalty of the Vietjet
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1.5.2 The specific objectives:
First, the thesis is going to review the theories, previous researches and building
Second, identify the direct and indirect factors which have impact on the
Third, analyze the result and point out recommendations for airline.
- This research will focus on the Vienamese passengers, who have already used
the service of Vietjetair. The foreigners are not participating in the survey due to
- All the secondary data related to Vietjetair will be collected from the December
- In this research, the survey will be used and it is going to implement only in
Tan Son Nhat Airport. Because in this area, there are thoundsands of passengers waiting
for their flights a day; therefore it is easier for author to collect survey and it does not
cost much.
- The research will not count every type of ages of customer. Author chooses the
customers in ages from 18 to 55, because these type of passengers frequently travel and
After searching and reading some models concerning about the thesis, a new
model which is the combination between some factors and their relationships is created
as the figure below. Base on this framework, a small research will be conducted to
clarify the influence of the related factors to the customer loyalty in this thesis. There are
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3 direct impacts on Customer loyalty: Trust, Brand Image and Customer Satisfaction
and 3 indirect impacts on Customer loyalty: Price, Perceived Value, Service quality.
Price Trust
Service Customer
Brand Image
Quality Loyalty
Perceived Customer
Value Satisfaction
3. Research methodology
After defining the problem statement, the research objectives were established in
three parts: review theories and build the conceptual model, identify the factors that
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Problem
Statement
Research Objectives
Findings
Conclusion &
Recommendation
Review theories and build the conceptual model: collecting the secondary data
and descriptive analysis are the methods for this part. There are a lot of theories,
Identify factors that influence customer loyalty: in this part, both qualitative and
quantitative methods are used. The primary data will be made by doing the management
interview and survey. The questionnaires will be sent to respondents to explore their
opinions about Vietjetair. After getting the feedback from respondents, the information
is put on the statistic tool (SPSS) and the results are shown.
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Analyze the results: when seeing the result after running SPSS, the analysis is
conducted to point out some findings. Furthermore, the analysis will answer the very
Depending on the result analysis, it is easy to find out which factors have affect
customer loyalty. Hence, the conclusions and recommendations will be exposed to help
First of all, the research will help Vietjetair Corporation determine the factors
which have influence on the customer‟s loyalty. It also assists the company to recheck
the quality of current service programs. Then, it will orient the marketing plans which
This study also is a great chance for me to take part in a real research. It will help
me to improve the research skill, learn more knowledge, and experience the new steps in
5. Propose structure
CHAPTER I: INTRODUCTION
The chapter I will overview the background of research. Then, it will show
the reasons to choose topic, the research problem statement, the objectives and research
In chapter II, there are concepts and definitions of the research objectives.
The reviewing similar previous researches and proposing the theoretical framework
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CHAPTER III: METHODOLOGY
This chapter will present the method which are used to achieve all the
research objectives and answering the research questions. This chapter begins with
research design, followed by the primary data and secondary data collection, qualitative
and quantitative design, questionnaire design and data analysis. Statistical tools (SPSS)
When receiving the results by running SPSS, this chapter will examine the
reliability and validity of the survey. Finally, the results of the test help to answer the
research question.
This final chapter will give out conclusions after seeing the result of the data
analysis and the investigation of the influence of factors on Customer Loyalty will be
clear. Moreover, base on the research question, this chapter will provide few
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Chapter Two - Literature review
1. Previous models
In this part, some models are mentioned as the references for the thesis
conceptual framework.
This model is the famous one in Europe. This model, Ball et al. believed that
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Figure 4: Model of impacts on Customer Loyalty in commercial airlines industry
industry by building a research model of direct and indirect factors that affect the
customer loyalty. He was going to research the image of the service provider is, along
with service quality and customer satisfaction, a powerful and illustrative component for
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Writing a book about marketing in industry of manufacture heavy equipment,
Steven A. Taylor and his partners believed that brand equity and trust are consistently
the most important antecedents to both behavioral and attitudinal forms of customer
loyalty. There is also evidence that the models underlying the formation of behavioral
versus attitudinal forms of customer loyalty may vary across research settings.
success of research created the very useful tool that help the businessman achieve the
result about service quality through the researching of customers‟ survey. Servqual is a
compound word from 2 words: “service” and “quality”. This model received many
positive praises from experts. After that, the model was continued optimize through
Ahmad Jaman and Kyryaki Anastasiadou developed their research about the
effects of service quality dimension on the customer loyalty based on the SERVQUAL
Marketing in 2009. The 2 authors investigated the direct effect of expertise on loyalty
and the moderating effect of expertise on the link between satisfaction and loyalty.
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Figure 6: SERVQUAL Model
2. Perceived Value
Martin Ruiz et al., (2007) suggested that "buyers' perceptions of value represent
a tradeoff between the quality or benefits they perceive in the product relative to the
sacrifice they perceive by paying the price". Here, this quality/price ratio as a 'value-for-
preferred over a multidimensional approach. The significance of the factor price for the
the actual monetary price, sacrifice components of perceived value also include non-
monetary costs such as time or risk. Perceived value is further highly subjective and
Customers deem that the price paid for a service determines the level of quality
that they can expect (Teboul, 1991 in: Park et al., 2006, p. 364). Based on Zeithaml's
proposition that perceived value is personal and idiosyncratic, the level of quality
expected will vary among customers. In general, this quality/price ratio is reflected by
the different airline business models. Low cost airlines typically offer cheap fares,
concentrating on their key service of air transportation, while network carriers offer
additional services at a higher price. Perceived value have a positive influence on Brand
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image, because customers think that it is worthy when using services and they will have
the positive remark about the relationship with the given brand.
Zeithaml and Bitner (1996) described value in services as the key competitive
factor defining the way services are bought and sold. Perceived value has further been
Blackwell et al. (1999) empirically substantiated a decisive link between value and
repeat purchase behavior in pharmaceutical services. Park et al. (2006) confirmed that
there is a positive relationship between perceived value and customer satisfaction and
3. Price
Price is the monetary cost which customer has to pay to buy products or services
(Zeithaml, 1988). It is the critical determinant that influences customer buying decision.
Price is usually evaluated relying on the perception of customers and called perceived
price. Customers is exactly the one who examine that the monetary they accept to pay
for a product or service is whether worthy or not. How much consumers are willing to
pay differs due to their different needs and wants (Regina et al., 2009). Thus, the price
perceptions are different for the same service base on the individual perception. Peng
and Wang, 2006 stated that, when customers think that they have to pay a higher price
for a product or service than they received after using that product or service, it might be
negatively impact their purchase decision. When consumers are attracted by a good
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price perception, they usually have intention to repurchase the products (Lichtenstein et
Many researchers have pointed out that price perception influences customer
satisfaction and trust (Oliver, 1997; Peng and Wang, 2006; Cheng et al., 2008; Kim et
al., 2008). Customer often switches mainly due to some pricing issues, high price
perceived, unfair or deceptive pricing practices (Peng and Wang, 2006). Therefore, in
manage their customers‟ price perceptions, carrying out attractive pricing, offering
4. Service Quality
The concept of satisfaction and the quality is often equated even though these
two concepts have different understanding (Parasuraman & ctg, 1988). In general,
Ostrowski et al. (1993) believed that "It is essential that service quality measures
characteristic and is thereby part of the customers' image of the brand. Therefore, the
previous researches proved that quality service is the cause of satisfaction (Cronin &
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Taylor, 1992). The reason is quality is related to the service supply, while the
satisfaction is only evaluated after using that service. If the service is improved without
basing on the customer‟s needs, it will never make customer feel satisfy.
customer's choice (Ostrowski et al., 1993; Taylor & Barker, 1994; Young et al., 1994).
Several different dimensions have been proposed to measure service quality in the
airline setting (Nadiri et al., 2008). Here, in accordance with the results of an
service quality, airline service quality includes three general dimensions: reliability and
customer service, in-flight service, and convenience and accessibility. If the airline
brand is perceived as providing excellent service to the customer, such a service quality
appraisal fosters the positive evaluation of the relationship with the brand. It also
positively influences the confidence and trust which the customer has in the relationship
with the airline brand. Zahorik and Rust, 1992; Cronin & Taylor, 1992 also confirmed
the exist of the positive relationship between service quality and customer loyalty.
5. Brand Image:
Zeithaml & Bitner (1996) and Andreassen & Lindestad (1998) suggest that
image has an important effect on customers' company choice when the service's
attributes are difficult to assess. Lovelock (1984 in: Andreassen & Lindestad, 1998) has
claimed that: “images are likely to play only a secondary role in customer choice
generic service. Furthermore, the airline's service attributes are difficult to evaluate prior
influences passengers' airline choice. This argument is further supported by Park et al.
(2006) who state that the purpose of airline image is to reflect a distinctive competence
customer's preferred choice (Andreassen & Lindestad, 1998), therefore is one aspect of
customer loyalty.
6. Trust
Trust is the resulting willingness to rely on the brand in which the customer has
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In addition, the trustworthiness of a brand as perceived by the customer reduces
Berry, 1997). If airline customers consider their preferred airline brand to be reliable and
to demonstrate integrity in every situation, they can take quicker decisions on which
airline to choose and thereby save time while feeling confident about their decision.
relationship marketing (Crosby et al., 1990; Parasuraman et al., 1991 in: Berry, 1995;
Morgan & Hunt, 1994). While Chaudhuri and Holbrook (2001) have demonstrated that
brand trust is directly related to both purchase and attitudinal loyalty, Hennig-Thurau et
al. (2002) suggest that more recent empirical findings (Grayson & Ambler, 1999)
question the direct influence of trust on loyalty. Even if there is no clear understanding
of the relationship between trust and customer loyalty, Hess and Story (1995) propose
that any personal relationship, whether interpersonal or between a person and a brand, is
built on trust. Trust is especially critical for the establishment of service based
7. Customer satisfaction
1999; Anderson & Fornell, 1994). The operational principle is always to satisfy
customer‟s demand because customer is the source of revenue and profitability for
company. When customer satisfies with product or service, the rate of repurchase from
these customers is high. Moreover, when customer feels satisfied, they tend to say good
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Customer satisfaction and loyalty have a high relevance. According to Oliver
(1999), customer satisfaction occurs through the use of product, is a necessary step to
in relation to his or her expectations. That‟s mean, when the company‟s performance is
higher than expected, the customer satisfaction increases. In contrast, if the performance
is lower than expected, the customer satisfaction decreases. Has the same opinion,
Karma (2004) agreed that customer will be contented when the estimated performance is
more than the target; conversely, dissatisfaction happens when the satisfaction is below
the expectation. As per Pail et al. (2009) , those customer are merely satisfied and they
find it simple to shift when other firm is providing a better cost or package while the
relates to whether the service meets the customer‟s need and expectations.
According to Selnes (1993), an organization may increase its sale and customer
satisfaction has happened to be one of the focal point for all business especially those in
result, effectiveness and growth of business (Parahoo, 2006). Benner (2009) also argued
that customer satisfaction is one of the important factors which help a company gain
also a fundamental factor in improving production process and end user relationship.
The primary objective of the airline sector is to provide excellent service and
competency. Rachel & Andy (2010) believed that excellent service is the vital while the
some analysts for high profit. A business organization must regularly gauge consumer
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satisfaction in order to analyse and identify whether clients were delighted or not.
According to Torbica & Stroh (2001), particularly in the airline sector, the degree of
customer happiness is plainly recognised off late in the process, whilst the majority of
the customers spent the cash by now. When firms study on which characteristics of a
service or products affect consumer satisfaction, their duty is to adapt their current
8. Customer loyalty
Customer loyalty has been widely researched and the concept of loyalty has
presented in many literatures. Several authors have their own definition and
Dick & Basu, 1994 point out a definition of customer loyalty is the strength of
the relationship between an individual‟s relative attitude and repeat patronage, mediated
brand or same brand-set purchasing, despite situational influences and marketing efforts
there, the key content focuses on the issue that customer willing to create and maintain
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the relationship with the service suppliers (Swan, Trawick & Carroll, 1982; Garfein,
In business, every company has goal of achieving profitable. And the customer is
an important source that helps companies achieve their goals. And several researches
show that there is a direct relationship between a firm‟s loyal customer and its
profitability (Reichheld & Sasser, 1990; Roger Hallowell, 1996; Berry, 1995). Some
authors prove that loyal customers help increasing revenues for the firm (Schlesinger &
Heskett, 1991; Berry, 1995). The loyalty is performed by more purchasing, with higher
prices, and creating a reputation for the firm through positive word of mouth (Ganesh et
al., 2000). These customers are not only frequently buy the firm‟s products but also is
the marketing - bridge of the firm to introduce products or service to their families and
friends (Hoffman et al., 1995; Zeithmal et al, 1966). Moreover, a loyal customer can
help the firm decrease the costs (Reichheld, 1993; Berry, 1995), because it costs less
when the firm provides services and satisfies loyal customers (Reichheld, 1996), and
since the costs for sale and marketing programs for loyal customer can be extended over
Profit from loyalty is the revenue, the low set-up cost, and the low costs for
brand recognition. The revenue will increase through repeat purchasing. In additional,
customers are willing to for higher pay because they are familiar with company‟s staffs
and services (Zeithmal et al., 1996). The company‟s profitability is also gained from low
operating costs when the relationship between the customer and the supplier is really
closed because the customer is easier to accept the firm‟s marketing attempt for new
products or services. Moreover, customer has less questions and easier to ignore the
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Normal customers typically choose to buy a certain product that they feel the
best for them while loyal customers pay more attention to history, the future and the
success of the brand that they trusted (Reichheld & Sasser, 1990; Clark & Payne,
1994). They always ready express what they think about the services and trust the
firm will do better and better. The firm will easily get the most accurate and
such customers.
H1d
Perceived
Value H1a
H6
H3a Customer
Satisfaction
H3b
H3d H3c
Service
Quality
Hypotheses:
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H1d: Perceived Value has direct influence on Customer Loyalty
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Chapter Three - Methodology
1. Research Method
Bryman & Bell (2003) pointed out that the connection between theory and research,
Quantitative data may be stated as the statistical information namely figures, while
transcript.
Bryman defined qualitative research as the move towards the revision of the
communal across the globe that begins to portray and evaluate the traditions and
invidual activities from the perceptive of those being observed. Saunders et al. (2007)
interactions and visual presentations that explained the regular and challenging instants
research approach that generally highlights numbers relatively in the data collation and
testing; and the approach that is applied is inductive and dealt with subjective
conclusions.
the link involving the concepts and course study as study and it final achieve intent
result.
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In this research paper, author had chosen those two methodologies. In there,
the identical elements and also to analyse the particular problem. In the other hand,
qualitative is used to collect the secondary data. The secondary data is collected from
books, articles, previous research and from internet. It is useful to review the theories of
To collect the primary data needed to test the hypotheses, paper survey was
chosen as the data collection method. This choice has a few advantages with author
interviewing or mail and internet survey. This kind of survey presents a cost efficient
completion questionnaire is very similar method of business research, and the research
instrument has to be especially easy to follow and its questions have to be particularly
easy to answer (Bryman & Bell, 2003). Meanwhile, whether to ask a question in open or
closed format is one of the most significant considerations for many researchers.
According to Bryman & Bell, 2003, closed question has some advantages: it is easy to
process answer; it enhances the comparability of answers, and makes them easier to
show the relationships between variables. Finally, closed questionnaire is chosen for this
research.
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2.2 Questionnaire design and data collection
The questionnaire is divided into 2 parts. Before coming to the first part,
respondents are introduced to the survey and inform about its purpose and background.
In the first part, participants are asked to show their individual information by answering
4 questions about their gender, age, number of flights with Vietjet Air, and their
frequencies in using Air transportation. The second part is the major part which contains
all seven construct in the research model with total 35 statements (each construct
includes 5 statements). A 5-point Likert scale was chosen as the rating scale, ranging
from „strongly disagree‟ (1 point) to „strongly agree‟ (5 point). All the statements in this
understand and fill in. The raw draft was sent to 3 participants who have great
knowledge and experience in commercial airline industry which one of them is the
Representative of Vietjet Air. After receiving remarks from them, a new draft was
composed before delivered to 30 testing respondents who had several times travel by air
plane. These people truly commented about the statements in questionnaire whether they
are easy to understand and fill in or not. Then, the questionnaire was one more time
Management
Interview Pilot Study
In order to collect data, there are 400 samples were handed in to anticipants who
was waiting for boarding at the lounge. As brief description in Chapter 1, the chosen
respondents are from 18 to 55 years old and already used Vietjet Air at least 1 time
25
though they were waiting for Vietjet Air‟s flight or others‟. To ensure that the
respondents already enjoyed the Vietjet Air service, the author asked them whether they
flied with Vietjet Air or not. If any customer say that he has never used Viet Air service,
that one would not be received the questionnaire. The sample collection was conducted
The statistical instrument SPSS is used to analyse the data. After collecting
samples from respondents, all complete questionnaire data was input by manual into
SPSS.
Each research and research method should be examined critically on its reliability
and validity (Finn et al. 2000). The reliability of a method is related to the consistency of
the results obtained from it (Bryman & Bell, 2003), while validity is defined as how
Reliability test was conducted in this research by Cronbach‟s Alpha test. After
running the test, if result shows that the Cronbach‟s Alpha is higher than 0.6, that result
The technique which is used in validity test is Exploratory Factor Analysis (EFA).
circumstances:
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- To identify underlying dimensions, or factors, that explain the correlations
discriminant analysis).
- To identify a small set of salient variables from a larger set for use subsequence
multivariate analysis.
In order to test the hypothesis, Multivariable linear regression analysis and path
among a set of variables (Hoang Trong, Mong Ngoc C. N., 2008). In regression
analysis, there is one dependent variable, and one or more variables that are related to it.
y: dependent variable
b: constant
author will perform three steps of using regression to conduct the tests of hypotheses of
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- Step 1: examine the influences of indirect factors on direct factors. It means
that there are three tests to define the influences of percieved value, price and service
quality on Brand image; the influences of perceived value, price and service quality on
Trust and the influences of perceived value, price and service quality on customer
satisfaction. This step tests the groups of hypotheses H1a, H2a, H3a; H1b, H2b, H3b and H1c,
H2c, H3c.
- Step 2: examine the influences of factors on target factor. It means that there is a
test to define the influence of Brand image, Trust and Customer satisfaction on
Customer loyalty. This step tests the hypotheses H4, H5, H6.
value, price and service quality) on target factor (customer loyalty) through direct
factors (Brand image, trust and customer satisfaction), the final regression analysis will
used primarily to examine the comparative strength of direct and indirect relationships
of the indirect factors (perceived value, price and service quality) and direct factors
(brand image, trust and customer satisfaction) to the Customer loyalty factor based on
the results of regression analysis. De Vaus, 2012 considered the level of strength of
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Coefficients Strength
0.00 No association
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Chapter Four - Data analysis and Research results
1. Sample description
After collecting samples, they were input into SPSS program and analysed. The
results in this part show the description about respondents‟ general information.
Male: 53,7%
Female: 46,3 %
Flight with VJ
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Frequency Percent Valid Percent Cumulative
Percent
2. Descriptive statistic
2.1 Price
Descriptive Statistics
PR1: VJ providing
335 2,00 5,00 3,8537 ,59396
reasonable price
PR2: Luggage fee is
335 1,00 5,00 3,3701 ,70520
reasonable
PR3: Foods and gift selled
335 1,00 5,00 3,1045 ,75293
in flight has good price
PR4: Ticket policy is
335 2,00 5,00 3,7075 ,60766
suitable with cus. level
PR5: VJ ticket price is more
335 1,00 5,00 4,0239 ,63766
reasonable than others'
Valid N (listwise) 335
3,6119
Average
Table 4.3: Price descriptive statistic
The average mean value in the Table is 3,6. Comparing with maximum value 5,
it is a good value. It‟s mean that, customer thought that the price policy of Vietjet Air is
reasonable. Especially, statement PR5 has high value (4,02), it shows that the big
amount of respondents agreed that, the ticket price of Vietjet Air is more reasonable
when comparing with other airlines‟. While the smallest mean value, PR3 (3,10) means
respondents claim that the payment for food or gift in flight is not reasonable.
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2.2 Perceived Value
Descriptive Statistics
The average mean value showed in above table is 3,6818. It is a little high value
when comparing with the average point 3. That value indicates that customer‟s value
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As the results in table 4.5, the average mean value is approximate 3.5. The value
is not a high value when comparing with the maximum 5-point. It means that
respondents is not very impressive with the service quality which supplied by Vietjet
Air. Especially, the statement 5, QLT5, received the smallest average mark (2,9194). A
large number of respondents argued that Vietjet Air flights are not really on time, they
The average of the mean value is 3.4299, it is just above the average point. The
result shows that respondents do not have a good impression with Vietjet Air images.
The second statement, IM2, has the lowest mean value. It‟s mean that, when customers
want to have a trip by air, VJ is not really the first brand they think about. Whilst logo of
Vietjet Air is quite easy for them to recognise (according to IM3 mean value: 3,9254).
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2.5 Trust
Descriptive Statistics
The mean value in above table equal to 3,6926. It is quite high when comparing
with the average point. It indicates that, respondents have belief in Vietjet and they think
Descriptive Statistics
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As the result in the above table, the average mean value of Customer Satisfaction
factor (3,6054) is a little high when comparing with the average point (3). It means that,
customer feel satisfy with the service from Vietjet Air but the satisfaction is not strong.
The most satisfaction is come from check-in section with mean value: 3,8597.
It is a quite good mark of the customer loyalty factor when it received a positive
mean value (3,63164). Customer showed their loyalty in Vietjet Air and intend to
continue cooperate with this airline. But it is not an absolute loyalty since the statement
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3. Reliability tests
Price 0,775 5
Trust 0,805 5
According to the table, most of the factors have Cronbach‟s Alpha greater than
0,7; Therefore, all of the reliability tests are acceptable, no factor has been rejected.
4. Validity tests
In this part, the validity test was conducted two times for two stages. The first
stage includes 3 factors: Price, Service Quality and Perceived Value. And the second
According to the research model, the three factors Price, Perceived Value and
Service Quality in the first stage have influence in turn on each of second stage factor.
In the first round of EFA running, the result showed that there were 4 components
extracted with cumulative percentage of variance is 59,575%. There were 3 items were
36
rejected: QLT5, PR2 and PR3. Therefore, it has 12 items remaining in the second round
of EFA run, this is also the final round. And the tables of result showed below
Sig. ,000
Table 4.11: KMO and Barlett‟s test for Independent variables
The KMO value equal to 0,793 (>0,5) and the Sig=0 (<0,05), hence the high
explain 54,84 % of the data variability. The three new components are shown in the
Component Matrix and it has a new name for each group of items. Because the
arrangement of group of items is nearly same with the old one, so they are still kept the
same name as: Perceived Value for group 1, Price for group 2 and Service Quality for
group 3.
37
a
Rotated Component Matrix
Component Name of
1 2 3 Component
38
4.1.2 Correlation Matrix
Correlations
In table 4.14, it is obviously seen that the three factors P.VAL, PRICE, QUAL.
have not relationship beween each other because the significants are very small (<0.01).
In contrast, there are relationships between PRICE and QUAL. and BR*, between
P.VAL, PRICE and QUAL. and TR* and between P.VAL, PRICE and QUAL. and CS*.
The result in the table above surprisingly show that there is not enough evidence to
conclude that it is existing the relationship between P.VAL and BR* due to the sig. is
too high (0,674).
In there,
39
BR*: dependent variable, Brand Image
a
ANOVA
Because the constant is too small, it will be ignored in the equation. Hence, the
It is obviously seen that, the Service quality has the biggest influence on Brand
Image while Perceived Value will be eliminated in the equation because the significant
40
Conclusion: H1a was rejected
Where,
Model Summary
a
ANOVA
41
a. Dependent Variable: TR*
Table 4.20: Coefficients in H1b, H2b, H3b test
Because the constant d2 is too small, it will be ignored in the equation. Hence, the
Conclusion:
In there,
Model Summary
42
a
Coefficients
Because the constant d3 is too small, it will be ignored in the equation. Hence, the
Conclusion:
Sig. ,000
Table 4.24: KMO and Barlett‟s Test for 2nd Stage
The KMO value is equal to 0,858 (>0,5) and the Sig=0 (<0,05), hence the high
43
Total Variance Explained
Rotation Sums of Squared
Initial Eigenvalues Loadings
% of Cumulative % of Cumulative
Component Total Variance % Total Variance %
1 5,153 34,352 34,352 3,088 20,586 20,586
2 1,736 11,572 45,925 2,684 17,892 38,478
3 1,318 8,789 54,714 2,435 16,236 54,714
4 ,990 6,600 61,314
5 ,863 5,750 67,064
6 ,719 4,794 71,858
7 ,651 4,342 76,200
8 ,630 4,202 80,402
9 ,528 3,521 83,923
10 ,517 3,448 87,371
11 ,456 3,042 90,413
12 ,440 2,931 93,344
13 ,391 2,604 95,948
14 ,342 2,282 98,230
15 ,266 1,770 100,000
Extraction Method: Principal Component Analysis.
Table 4.25: Total Variance Explained for 2nd Stage
54,714 (acceptable). It‟s mean that 3 components explain 54,714 % of the data
variability. The three new components are shown in the Component Matrix and there is
no item was deleted. Because the arrangement of group of items is nearly same with the
old one, so the components are still kept the same name as: Trust for group 1, Customer
44
a
Rotated Component Matrix
1 2 3 and Code
45
4.2.2 Correlation Test
Correlations
The Pearson correlative was used to test the linear relationships between the
In the table above, it is obviously seen that all three independent variables have the
positive relationship with the dependent variable because the Sig. (2-tailed) is very small
(<0,01). And the results also indicated that there is not any relationship between the
independent variables.
on Customer Loyalty
In there,
46
LYT: dependent variable, Customer Loyalty
Model Summary
a
ANOVA
a
Coefficients
Because the constant of the equation is too small, it will be ignored. Hence, the
Conclusion:
47
According to the results, all the hypotheses H4, H5, H6 are accepted. The largest
standardized coefficients (0,471) in the Regression equation indicate that the Trust
factor has the most influence on Customer loyalty. The Brand image factor and
5. Path Analysis
As the illustration in the research model, there were three indirect factors influence
customer loyalty, but it should be tested to ensure the validity of the indirect impacts.
The method of this test is using the regression analysis. Because the Exploratory Factor
Analysis was already done for the indirect factors (1st stage) in previous part, it will not
be run again in this part. The results of this test are showed in table below:
a
Coefficients
It is obviously seen that, the factor Perceived Value is not influence Customer
Loyalty because it‟s coefficient β = 0,094 and Sig. = 0,064 (>0,01). The result also
indicated that the two other factors have influence on Customer Loyalty. Therefore,
Conclusion:
H1d: Rejected
48
H2d and H3d: Accepted
Where:
PRI: Price
TRU: Trust
TRU: Trust
Coefficients Strength
0.00 No association
Base on comparing with the range of coefficients on the table 4.32, the conclusion
of show strong the direct and indirect factors influence Customer Loyalty in this study is
50
Variables Causal Influence Evaluation
Table 4.33: Evaluate the relationship between influence factors and Customer Loyalty
Finally, the research model is revised after conducting the hypotheses tests; the
factor Perceived value is eliminated because the results proved that there is no
0,32
0,181
Price Brand Image
0,482 0,227
0,254
0,471
Customer
Trust
Loyalty
0,523
0,373 0,206
Customer
Service
0,482
Satisfaction
Quality
0,393
Based on the tests of Reliability and Validity, the results of the hypotheses are
Satisfaction
Satisfaction
Loyalty
52
Chapter Five - Conclusions and Recommendations
This final chapter will represent the conclusions for the whole research. Some
chapter. And finally, this chapter also shows the limitation of research and suggestions
1. Conclusion
important to keep customer stay with company. Base on the objective to pointed out key
factors which have influence on customer loyalty, this research was conducted by
collecting the survey from Vietjet Air passengers. And the results of the survey have
- The three direct factors Brand Image, Trust and Customer Satisfaction have
positive relationship with Customer Loyalty. In there, Trust has the most influence on
Customer Loyalty. This implied that the company can keep customer continue
cooperating with them when they win the customer‟s Trust. The other two factors have
less influence on Customer Loyalty when compare to Trust factor, but there is not a big
- Two indirect factors Price and Service Quality have indirect influence on
Customer Satisfaction through the three factors Brand Image, Trust and Customer
Satisfaction. But influence of another factor, Perceived Value, on Brand Image is not
clear. And based on the results of path analysis, Perceived Value also does not have
influence on Customer Loyalty. Therefore, this factor is removed from the research
model.
53
- The Price factor has the most influence on Trust factor. It is indicated that,
customer has a higher Trust on Vietjet Cooperation when it supply a more reasonable
price policy.
The results of the survey in this research showed how strong the direct and
indirect factors influence Customer Loyalty. Thence, the survey also indicated that there
are several issues occurring impact to the customer decision on flying with Vietjet Air.
Some suggestions below may help company operate better to win more and more loyalty
of customer:
Ticket price plays an important role in customer decision. Therefore, the company
should engage to invite customer the more reasonable price than competitors‟. In reality,
customers have realized that the ticket price of Vietjet Air is more reasonable when
compare with others‟ (mean of PR5 = 4,0179). It is a positive signal of Vietjet Air in
customer‟s mind. So, Vietjet Air could keep going with competitive ticket price.
Reducing costs is one of the key methods in operating business of a low cost carrier
(Malighetti et al., 2009; Murphy) and it will make the difference.To be able to do that,
Vietjet Air need to review all the operated departments to cut off any unnecessary part.
Thence, the company could reduce the operation cost and therefore the company can
In the result which was shown in chapter 4, Customers think that food and gifts
sold in flight do not have a reasonable price (mean of PR3 = 3,1045). Vietjet provides a
plentiful list of food and gifts for passenger in flight but the payment for them is a little
54
high. To redemy that issue, Vietjet Air could try to look for other suppliers who are able
Through survey of this research, passengers expressed their bad mood about
Vietjet on time performance (mean of QLT5 = 2,9194). The long delay flights may
cause much stress for both passenger and Airline. There are varied reasons which cause
flights delay, for example: bad weather, technical check, operational change, security
activity, V.I.P flights, ... The worst case occurs when the flight is decided to cancel. One
of the frequent reasons of delay flights is come from technical problem. Now Vietjet Co-
operation has eight planes and they are being used in dense operational schedule;
therefore the time for maintenance is not enough. Vietjet should consider a better
reduce the delay flights. It is not only make passenger feel more comfortable but also
company uses to maintain relationship with customer and to win the competitors
(Ahmad Amiz et al., 2010). Although Vietjet Air is operating in low cost airline model
but customer service is still very important. The company should pay more attention in
training staffs to have better service. The two major roles in airline customer service are
ground staffs and cabin attendants. These two departments need to be more and more
professional in the whole service progress such as: greeting customers, willing to help
when customer need, always smiling and being expert in solving irregular
circumstances...
55
2.3 Brand Image
According to the finding in chapter 4, passengers performed that Vietjet Air is not
really the first carrier they think about when they have decided to fly (mean of IM2 =
2,9851). It is the fact that Vietjet Air has not built an enough strong Image to attract
customers. The consequence is that Vietjet Air may loose a lot of potential customers; so
it will impact the revenue of carrier. Therefore, Vietjet Air need to focus more and more
3. Limitation
This final thesis does an investigation about the customer perception and
experience on Vietjet Air. In the research, a new model was built to define the factors
influence Customer Loyalty by using survey method. Although the model was tested
and given out a positive result, it still has several limitations which should be
ameliorated in further researches. The author suggests some improvements for those
researches as follow:
- Added factors. There were three direct factors and three indirect factors
influence Customer Loyalty in this research, but they have not represented for most of
the aspects which have impact on the loyalty. Therefore, it should be added more in
- Wider survey collection. The survey using in this research was conducted
only in Tan Son Nhat airport, therefore it will not perform the accurate evaluation of
customers because each airport has different service policy. Besides that, the different
cultures in vary regions could affect the remark of customers. Hence, it is better if the
next research could open widely to other airport where Vietjet Air flies to.
56
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62
APPENDIX A
NGHIÊN CỨU CÁC NHÂN TỐ TÁC ĐỘNG ĐẾN LÒNG TRUNG THÀNH
Hiện tại tôi đang thực hiện nghiên cứu về đề tài “Nghiên cứu lòng trung thành của
khách hàng”. Xin các Anh/Chị vui lòng điền vào bảng câu hỏi dưới đây. Mọi đánh
giá của Anh/Chị đều là nguồn thông tin quý giá đối với tôi. Xin chân thành cám ơn
Anh/Chị.
i. Nam ii. Nữ
3. Xin cho biết Anh/Chị đã thực hiện chuyến bay với hãng hàng không Vietjet
4. Anh/Chị di chuyển bằng máy bay bao nhiêu lần trong 1 năm
Để hoàn thành bảng đánh giá dưới đây, Anh/Chị vui lòng chỉ đánh một dấu X vào ô
vuông phù hợp cho mỗi phát biểu sau theo các mức độ từ hoàn toàn không đồng ý
63
1 – Hoàn toàn không đồng ý 2 – Không đồng ý 3 – Trung hòa
GIÁ CẢ
1 2 3 4 5
11. Giá vé máy bay mà Vietjet đựa ra là hợp lý
1 2 3 4 5
12. Giá cước đối với vận chuyển hành lý là phù hợp
13. Các món ăn và quà lưu niệm được bán trên máy bay 1 2 3 4 5
có giá hợp lý.
14. Các chính sách về giá vé mà Vietjet đưa ra là phù 1 2 3 4 5
hợp với từng đối tượng
15. Giá vé máy bay mà Vietjet đưa ra là khá cạnh tranh 1 2 3 4 5
so với các hãng hàng không khác
16. Anh/Chị luôn đặt niềm tin vào Vietjet khi có nhu cầu 1 2 3 4 5
di chuyển bằng đường hàng không
64
17. Anh/Chị tin rằng Vietjet sẽ tiếp tục phát triển vững 1 2 3 4 5
mạnh và lâu dài
18. Vietjet đang thực hiện đúng với những gì họ cam 1 2 3 4 5
kết.
19. Anh/Chị tin vào những thông tin liên quan đến 1 2 3 4 5
chuyến bay mà Vietjet cung cấp
20. Anh/Chị luôn tin tưởng rằng bay với Vietjet là lựa 1 2 3 4 5
chọn đúng của Anh/Chị
21. Anh/Chị cảm thấy an toàn và thoải mái khi thực hiện 1 2 3 4 5
chuyến bay với Vietjet
22. Nhân viên Vietjet thực hiện công việc có trách 1 2 3 4 5
nhiệm
23. Vietjet cung cấp dịch vụ tương xứng với giá tiền 1 2 3 4 5
Anh/Chị đã bỏ ra.
24. Anh/Chị cảm thấy bay với Vietjet tốt hơn việc sử 1 2 3 4 5
dụng các phương tiện di chuyển khác.
25. Những chính sách mà Vietjet đưa ra là đúng và hợp 1 2 3 4 5
lý
26. Anh/Chị hài lòng với quyết định thực hiện chuyến 1 2 3 4 5
bay cùng Vietjetair.
27. Anh/Chị hài lòng với cung cách phục vụ của tiếp 1 2 3 4 5
viên trong suốt chuyến bay
28. Anh/Chị hài lòng với những hoạt động chăm sóc 1 2 3 4 5
khách hàng của Vietjet
29. Anh/Chị hài lòng với sự thể hiện của nhân viên 1 2 3 4 5
Vietjet tại quầy làm thủ tục
30. Mỗi khi đưa ra thắc mắc, Anh/Chị hài lòng với 1 2 3 4 5
những câu trả lời từ nhân viên Vietjet
31. Anh/Chị sẵn lòng tiếp tục thực hiên chuyến bay của 1 2 3 4 5
Hãng hàng không Vietjet trong tương lai
1 2 3 4 5
32. Anh/Chị dễ dàng bỏ qua những thiếu sót của Vietjet.
33. Anh/Chị sẵn lòng giới thiệu hãng hàng không Vietjet 1 2 3 4 5
cho người thân/bạn bè
34. Anh/Chị sẽ phải cân nhắc rất nhiều khi quyết định 1 2 3 4 5
thực hiện chuyến bay với hãng hàng không khác.
35. Anh/Chị sẽ trở thành khách hàng thường xuyên của 1 2 3 4 5
Vietjet.
65
APPENDIX B
VIETJET AIR
Hello passengers,
Now I am conducting a research about customer loyalty of the Vietnamese low cost
each statement below. All of your evaluations are very worth for me. I am thankful to
GENERAL INFORMATION
1. Your age:
2. Gender:
i. Nam ii. Nữ
To complete the questionnaire below, please make only one stick for each statement
which is most suitable with your opinion. The scale is from absolutely disagree to
absolutely agree
66
1 – Strongly disagree 2 – Disagree 3 – Neutal opinion
1 2 3 4 5
1. Vietjet is the famous airline in Vietnam market
SERVICE QUALITY
PRICE
1 2 3 4 5
11. Vietjet ticket price is reasonable.
1 2 3 4 5
12. The fee for luggage is reasonable.
TRUST
PERCEIVED VALUE
1 2 3 4 5
23. Vietjet‟ service is worthy with your payment.
24. You think that taking flight with Vietjet is better than 1 2 3 4 5
other means of transport.
1 2 3 4 5
25. Vietjet‟s policies are reasonable.
CUSTOMER SATISFACTION
CUSTOMER LOYALTY
1 2 3 4 5
31. You are willing to fly with Vietjet Air in future.
1 2 3 4 5
32. It is easy for you to ignore Vietjet‟s mistake.
68
69