Quantitative research - RESEARCH DESIGN

CHAPTER 2 LITERATURE REVIEW

3.1 RESEARCH DESIGN

3.1.2 Quantitative research

It tests the measurement scale and theoretical model.The research is implemented after the adjustment of questionnaire in qualitative research by words that are clear and easy to understand, in addition to the supplement and elimination of the unsuitable variables. The questionnaires were sent to customers who used the hotel services of An Giang Tourimex Joint Stock Company. The obtained data is processed by SPSS 13.0 Software, through the following analyses:

• Descriptive statistics

• Evaluation of measurement scale of concepts

• Adjustment of the research model

• Inspection of the conformity of the model by correlation analysis, multiple regression, analysis of variance (ANOVA)

• Testing of hypotheses

• Proposal for service quality improvement 3.2 SAMPLE DESIGN

Sample design selects the hierarchical sample combined with simple random sample. On the ground of number of customers who used the services of the three hotels of research in August 2015 and the number of customers of each hotel, the number of collected samples through interviews is 175 samples, being calculated the sample rate of each hotel, specifically: (Table 3.1)

Table 3.1: Research sample design

Rate (%) Number of samples Theentire of the company (in An Giang

Province): 175

Ben Da Nui Sam Hotel 53.14 93

Dong Xuyen Hotel 25.71 45

Long Xuyen Hotel 21.14 37

On that basis, random customers who used and have used hotel services in August 2015 were selected to send questionnaires with adjusted questions. Together with 26 questions, the sample size of 175 is good enough for factor analysis.

Normally, at least the sample size must be more than four or five times the number of variables in factor analysis (Hoang Trong and Chu Nguyen Mong Ngoc, 2005)

With total 200 samples sent to customers, 184 questionnaires were collected (92%).Of which,nine samples were considered invalid because they had omission and did not comment on main variables as well as did not giveclear comments. The number of analysis sampleis 175 samples. Information is as follows (Table 3.2):

Table 3.2: Sample information

Sample information Number Percentage (%)

1 Total samples: 175 100

3.3 MEASUREMENT SCALE OF SERVICE QUALITY

SERVQUAL measurement scale of service quality with 22sections question showsfive components: (1)Trust, (2) Responsiveness, (3) Assurance, (4) Empathy, (5) Tangibles.After the qualitative research, through the discussion with the customers and managers, some variables are removed and some new variables are added to fit the type of hotel services, which are perceived by the customers and managers. Results of official questionnaires of service quality scaleto perform quantitative research is formed and arranged in chronological order, from check-intime to check-out time.They are shown as follows:

1 Staffs welcome customers at the time they step into the hotel.

2 Hotel is always willing to help the customers.

3 Procedures at the reception desk are done quickly.

4 Hotel quickly responds the information that the valued customers ask for.

5 Hotel shows the interest in customers in a friendly manner.

6 Hotel focuses on meeting the customers requirements.

7 Hotel handles the situations in the most convenient way for customers.

8 The staffs have good professional knowledge, meeting the customers’

requirements.

9 The staffs show the politeness, graciousness to the valued customers.

10 The valued customers feel assured when staying in this hotel.

11 The dress of the staff is neat and elegant.

12 The hotel facilities are fit for the star-standard of the hotel.

13 The layout of the hotel facilities meets the customers’ requirements.

14 Hotel creates the tranquility for the resting of the customers.

15 The reception hall is airy, clean and convenient.

16 Hotel’s services meet the star-standard of the hotel.

17 Hotel handles the operation quickly, professionally.

18 Hotel clearly and convincingly explains the relevant issues.

19 Food & drink in the hotel assure the food safety.

Service quality uses 5-point Likert measurement scale to measure, including 1.

Totally disagree, 2. Disagree, 3. Acceptable, 4. Agree, 5. Totally agree.

3.4 MEASUREMENT SCALE OF TRUST

Being similar to measurement scale of service quality, measurement scale of Trust has 11 original sections of question. After discussing with the customers, the managers, many unsuitable variables with hotel services have been removed and some new variables are added accordingly. After adjustment, results of questionnaire of measurement scale of Trust are presented as follows:

1 Hotel rate is reasonable.

2 Hotel’s servicesare better than you think.

3 Customers had known this hotel.

4 You trust the serving quality of the hotel.

Trust also uses the 5-point Likert measurement scale to measure, including 1.

Totally disagree, 2. Disagree, 3. Acceptable, 4. Agree, 5. Totally agree.

3.5 MEASUREMENT SCALE OF SATISFACTION

After the adjustment, measurement scale of the customer satisfaction is shown as follows:

1. General satisfaction of the customers on service quality 2. The level of responses to the customers’ requirements 3. Serving manner of the hotel

The customer satisfaction also uses the 5-point Likert measurement scale to measure, including 1. Very dissatisfied, 2. Dissatisfied, 3. Acceptable, 4. Satisfied, 5.

Very satisfied.

CHAPTER 4 RESEARCH RESULTS

4.1 DESCRIPTIVE STATISTICS 4.1.1 Service quality scale

The statistical table for results (Table 4.1) with 19 variables to measure customer satisfaction with service quality, and the usage of 5 point Likert scale to evaluate it show that customers were not completely satisfied with the hotel service quality of An Giang Tourimex. The average score ranges from 3.61 to 4.10 (i.e. from neutral to agree). This is reasonable because in fact customers had complaints, and customers’ perspectives are different that are demonstrated all levels from strongly disagree to strongly agree in the same question section.

Three lowest rated contents by customers are Services keep up with the “star”

rating (REL16), with average value of 3.61; Physical facilities keep up with the “star”

rating (TAN12), with average value of 3.66; the layout of hotel facilities makes you comfortable (TAN13), with average value of 3.66.

This corresponds with customer complaints in the process of gathering their opinions: the hotel facilities are old; lack of high speed Internet connection as well as Wi-Fi; TV has few channels without English channels; hot uncomfortable elevator (Dong Xuyen Hotel), lack of elevator (Long Xuyen Hotel); sound proofing system is not good; hotel room supplies are insufficient...

Three highest rated contents by customers are Employees provides you with friendliness (EMP05), with average value of 4.01; you feel safe in the hotel (ASS10), with average value of 4.07;Employees are polite (ASS09) with average value of 4.10.

This also corresponds to the praise from customers for the security, the friendliness and courtesy of staffs…

Table 4.1: Results of descriptive statisticsof service quality

The variables of service quality scale

Arithmetic Value Lowest Highest average deviation value value

You were warmly welcomed at the first step of the hotel (RES01) 3.93 .910 1 5

Employees are always willing to help you (RES02) 3.86 .862 1 5

Employees do the check-in and check-out promptly (RES03) 3.82 .891 2 5

Employees promptly respond to your requests for information (RES04) 3.84 .741 1 5

Employees provide you with friendliness (EMP05) 4.01 .791 1 5

Employees give their best interest in your requests (EMP06) 3.74 .800 2 5

Employees give adequate solution(s) for your most convenience (EMP07) 3.74 .742 1 5

Employees are qualified, thus responding well to your requests (ASS08) 3.80 .695 2 5

Employees are polite (ASS09) 4.10 .763 2 5

You feel safe in this hotel (ASS10) 4.07 .807 2 5

Employees are well dressed and appear neat (TAN11) 3.93 .835 1 5

Hotel facilities keep up with the “star” rating (TAN12) 3.66 .786 1 5

The layout of the hotel facilities makes you comfortable (TAN13) 3.66 .747 1 5

The appropriate quietness is provided to you (TAN14) 3.79 .777 1 5

The lounge appears spacious, clean and comfortable (TAN15) 3.97 .820 2 5

Services keep up with the “star” rating (REL16) 3.61 .794 1 5

You receive prompt services from employees (REL17) 3.79 .708 2 5

Employees answer your questions clearly and exactly (REL18) 3.75 .767 2 5

Provided food and drinks are hygienic (REL19) 3.95 .726 2 5

4.1.2 Credibility scale

Like the service quality scale, the credibility for hotel services of the company is not appreciated by customers (Table 3.4). The average value of credibility rated ranges from 3.66 to 4.20 (also from neutral to agree).

The variable which has the lowest average value is You have heard about the hotel (TRU22), with average value of 3.66. Thus, the issues of credibility on the market, marketing, image promotion of the hotel system are not good. It is largely still unknown by many customers.

Variable which has the highest average value is You trust the quality of our services (TRU23), with average value of 4.20.

Table 4.2: Results of descriptive statisticsof the credibility

The variables of credibility scale

Arithmetic Value Lowest Highest average deviation value value

Our price is reasonable (TRU20) 4.03 .826 1 5

Our services is better than you expected (TRU21) 3.95 .863 2 5

You have heard about the hotel (TRU22) 3.66 1.249 1 5

You trust the quality of our services (TRU23) 4.20 .824 2 5

4.1.3 Satisfaction scale

Like the two previous scales, satisfaction scale is also rated as not completely satisfied by customers (Table 4.3), with the lowest average value of 3.88 and highest value of 4.07 (from neutral to agree).

Table 4.3: Results of descriptive statisticsof the satisfaction

The variables of satisfaction scale

Arithmetic Value Lowest Highest average deviation value value

How satisfied are you with our services (SAT01) 3.89 .801 2 5

How is our response to your requests (SAT02) 3.88 .804 2 5

How is the manner of services of the hotel (SAT03) 4.07 .831 2 5

Variable which has the lowest average value is How is our response to your requests (SAT02), with average value of 3.88.This shows that the customer requirements do not receive response in time. It needs to be reviewed and improved.

Variable which has the highest average value is How is the manner of services of the hotel(SAT03), with average value of 4.07. The hotel should try to serve the customer better. It is needful to build trust, thereby promoting the image of the company to other customers through those who have used the company services.

4.2 SCALE EVALUATION

The scales are evaluated by two main tools: (1) EFA (Exploratory Factor Analysis) and (2) Cronbach Alpha.

Exploratory factor analysis is a statistical method used to shrink and summarize data (technique to reduce data). This is an interdependence technique, in which all the interdependence relation will be researched. Exploratory factor analysis is commonly used in the process of creating a scale to measure different aspects of the research concept, and to check the individual aspect status of the scale.

Testing by using Cronbach Alpha in order to verify this scale with many variables to have a good scale for each factor being researched (measuring whether a set of question sections drawn from each factor has connection or not). Cronbach

Alpha is a statistical test in terms of the level of closeness that questions in the scale interrelated with each other. In other words, it shows us that if a certain scale is good in a certain aspect or not.

To avoid omitting variables, the sequence to evaluate scale is as follows: firstly, all five components of service quality scale: Reliability, Responsiveness, Assurance, Empathy and Tangibles with 19 variables put into exploratory factor analysis to identify the factors. After performing the EFA with 19 variables, each factor is identified and evaluated in terms of the reliability by using Cronbach Alpha.

Like the service quality scale, the credibility scale with four question sections and the satisfaction scale with three question sections are also performed EFA and evaluated the reliability by using Cronbach Alpha.

4.2.1 Exploratory factor analysis

Exploratory factor analysis is performed with 19 variables of the service quality scale. Exploratory factor analysis is considered appropriate when the value of KMO (Kaiser–Meyer–Olkin) is greater than 0.5. Factor loading less than 0.5 will be removed, cut off pointwhen eigenvalue is greater than 1 and total variance explained is greater than 50% (Hoang Trong and Chu Nguyen Mong Ngoc, 2005). The chosen analytical method is Principal components with varimax rotation. They are performed as follows:

Analyzing the set of 19 observed variables, the obtained result is as follows (Appendix 1): KMO = 0.857, sig.= 0.000 of Bartlett’s test. Therefore, the variables are closely correlated with one or more factors and the overall correlative matrix is a rejected unit matrix according to the results of Bartlett’s test, satisfying the conditions of exploratory factor analysis.

Five factors were extracted with the variance explained of 60.656% (explained the variability of 60.656%). Two variables RES03 and EMP07 that have factor loading less than 0.5 will be deleted.

Continuing to reanalyze the factors with 17 variables (RES03 and EMP07), the result is (Appendix 2) as follows: KMO = 0.841, sig.= 0.000 of Bartlett’s test. This satisfies the conditions of exploratory factor analysis. Four factors are drawn with the

variance explained of 57.479%.

The variables with factor loading are located in two different factors like EMP05 of factor 1, 2 and TAN11 of factor 2, factor 3, it shows that the correlation of these variables and those two factors are not definitive. After performing the factor rotation, variable which has large coefficients of a factor proves that it correlates primarily with the same factor. Thus, it belongs to that factor (Hoang Trong and Chu Nguyen Mong Ngoc, 2005). Variable EMP05 belongs to factor 1 and variable TAN11 belongs to factor 2. After performing exploratory factor analysis with 17 variables above, four factors have been drawn:

+ Factor 1 includes 5 following variables:

You were warmly welcomed at the first step of the hotel (RES01)

Employees are always willing to help you (RES02)

Employees provides you with friendliness (EMP05) Employees promptly respond to your requests for information (RES04) You receive prompt services from our employees (REL17)

+ Factor 2 includes 5 following variables:

You feel safe in the hotel (ASS10)

Our employees are polite (ASS09)

The lounge appears spacious, clean and comfortable (TAN15) Our employees are well dressed and appear neat (TAN11) Provided food and drinks are hygienic (REL19)

+ Factor 3 includes 3 following variables:

Physical facilities keep up with the “star” rating (TAN12) The layout of hotel facilities makes you comfortable(TAN13)

Our services keep up with the “star” rating(REL16) + Factor 4 includes 4 following variables:

Our employees are qualified, thus responding well to your requests (ASS08) The appropriate quietness is provided to you (TAN14) Our services keep up with the “star” rating (EMP06)

Our employees answer your questions clearly and exactly (REL18)

Like the service quality, the credibility with 4 variables is also analyzed, the result is (Appendix 3) as follows: KMO = 0.657, sig.= 0.000 of Bartlett’s test. This satisfies the conditions of exploratory factor analysis. A factor is drawn with the variance explained of 51.342%, in which variable TRU22 which has factor loading less than 0.5 will be deleted.

Continuing to reanalyze the factor of credibility with 3 variables (TRU22), the result is (Appendix 4) as follows: KMO = 0,.643, sig.= 0. of Bartlett’s test, with variance explained of 64.721%. This satisfies the conditions of exploratory factor analysis.

The factor of credibility (TRU) includes 3 following variables:

Our services is better than you expected (TRU21)

You trust the quality of our services (TRU23)

Our price is reasonable (TRU20)

In addition, the satisfaction is also be analyzed, the result is (Appendix 5) as follows: KMO = 0.751, sig.= 0.000 of Bartlett’s test. This satisfies the conditions of exploratory factor analysis. A factor is drawn with the variance explained of 82.470%.

Therefore, the factor satisfaction (SAT) incudes 3 variables:

How satisfied are you with our services (SAT01)

How is our response to your requests (SAT02)

How is the manner of services of the hotel (SAT03)

4.2.2 Testing the factors by using Cronbach Alpha

After performing the exploratory factor analysis, the factors have been drawn.

Testing the factors by using Cronbach Alpha for each factor in order to measure it a set of questions drawn from each factor has connection or not. Many researchers agreed that when the Cronbach Alpha has value of 0.6 or higher, then it can be used. The value of corrected Item – Total correlation must be greater than 0.3 (Hoang Trong and Chu Nguyen Mong Ngoc, 2005).

The Cronbach Alpha of factor 1 (Appendix 6) has value of 0.801; all 5 variables have the value of Corrected Item-Total Correlation greater than 0.3, satisfying the conditions of the test.

The Cronbach Alpha of remaining factors is as follows: 0.731 for factor 2 with 5 variables; 0.724 for factor 3 with 3 variables; 0.648 for factor 4 with 4 variables. All the variables of factor above have the value of corrected Item – Total correlation greater than 0.3, satisfying the conditions of the test. After performing the exploratory factor analysis for the service quality scale, four factors have been drawn and each was tested by Cronbach Alpha, satisfying the conditions for further analysis.

The credibility is also tested by Cronbach Alpha. The value of Cronbach Alpha is 0.726. All 3 variables in the factor of credibility have the value of corrected Item – Total correlation greater than 0.3, satisfying the conditions for further analysis.

The satisfaction with 3 variables is tested by Cronbach Alpha. The value of Cronbach Alpha is 0.894, the value of corrected Item – Total correlation is greater than 0.3, satisfying the conditions for further analysis.

4.3 ADJUSTING THE RESEARCH MODEL

The above analytical results demonstrate that after performing factor analysis of original 05 factors (components) of the service quality scale, there are 01 factor which has distinct-values is empathy and 04 factors has no distinct-values. They are as below:

+ Factor 1: the Responsiveness (RES) with 05 variables: You were warmly welcomed at the first step of the hotel (RES01); Employees are always willing to help you (RES02); Employees promptly respond to your requests for information (RES04);

Employees provides you with friendliness(EMP05); You receive prompt services from our employees (REL17).

+ Factor 2: the assurance (ASS) with 05 variables: Our employees are polite (ASS09); You feel safe in the hotel(ASS10); Staffs have succinct and polite uniform Our employees are well dressed and appear neat (TAN11); The lounge appears spacious, clean and comfortable(TAN15); Provided food and drinks are hygienic (REL19).

+ Factor 3: the tangibles (TAN) with 03 variables: Physical facilities keep up with the “star” rating (TAN12); The layout of hotel facilities makes you comfortable(TAN13); Our services keep up with the “star” rating(REL16).

+ Factor 4: the reliability with 04 variables: Our services keep up with the

“star” rating (EMP06); Our employees are qualified, thus responding well to your requests (ASS08); The appropriate quietness is provided to you(TAN14); Our employees answer your questions clearly and exactly (REL18).

The SERVQUAL service quality scale in applying to measure the hotel service quality of An Giang Tourimexhas been changed and adjusted certainly in content. It means that questionnaire is changed and there is an adjustment between factors to form the 04 factors as mentioned. This result reinforces the conclusion of Babakus and Boller (1992) and Cronun and Taylor (1992) that “factors of the service quality could be changed according to the sector or field of research” (Bui Nguyen Hung and Vo Khanh Toan, 2005)

The factor of empathy could be existed theoretically. However, when being applied in An Giang Tourimex, it does not get the clear distinction (it seems almost the same), and does not become a distinct factor. Therefore, it is removed.

After performing factor analysis, the factor of credibility (TRU) with one component is drawn with 03 variables: Room rate is reasonable(TRU20); Our services are better than you expected (TRU21); You trust the quality of our services (TRU23).

After performing factor analysis, the factor of satisfaction (SAT) with one component is drawn with 3 variables: How satisfied are you with our services (SAT01); How is our response to your requests(SAT02); How is the manner of services of the hotel (SAT03).

Thus, after the factor analysis, the original research model is adjusted with some hypotheses as follows (Figure 3.2):

H1: The increase in the responsiveness will increase the satisfaction level.

H2: The increase in the assurance will increase the satisfaction level.

H3: The increase in the tangibles will increase the satisfaction level.

H4: The increase in the reliability will increase the satisfaction level.

H5: The increase in the trust will increase the satisfaction level.

Figure 4.1: Adjusted research model

4.4 TESTING THE RESEARCH MODEL OF THE SATISFACTION 4.4.1 Correlation analysis(Pearson coefficient)

The multiple regression analysis is performed to consider the relationship between independent variables of the responsiveness, the assurance, the tangibles, the reliability and the trust and the dependent variable of the satisfaction in the research model. Before conducting the linear regression analysis, it must consider if the correlation between independent and dependent variables, and the Pearson coefficient in the correlation coefficient matrix is appropriate or not to consider this correlation.

The value of independent and dependent variables is the factor score which are calculated by the SPSS through factors analysis. It is linear combinations of the observed variables in the standardized service quality scale. The independent variables of responsiveness, the assurance, the tangibles and the reliability are not correlated to

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