The relationship between perceived service quality and customer

satisfaction in Vietnam’s supermarkets

INTRODUCTION

BACKGROUND

Retailing is one of the most important industries in every economy that helps to facilitate the

flow of goods to all economic parties. U. Dineshkumar and P. Vikkraman (2012) have

suggested that for a strong, stable and consistently growing economy, a well-organized and

efficient retail sector is a must. As regards retailing industry in Vietnam, it has witnessed

many a change and chance since Vietnam joined World Trade Organization with a lot of

chances for global retailers entering this emerging market. From 2007 to 2012, retailing

posted a robust growth rate of 19.2% and recorded a slower rate of 4.3% for the first five

months of 2013 due to economic uncertainties. Following the slow-down, Vietnam is also

dropped out of the top 30 Global Retail Development Index after occupying the 6th place in

2009 and 23rd place in 2011 (AT Kearney’s GRDI , 2013).

As stated in the research by Euromonitor International (2013), regardless of the stagnant

overall picture, Vietnam retail value sales still shows double digit growth with lots of

potentials. That performance is largely attributed to such rapid urbanization at 3% per year

with relatively large young population and increase of middle income population. Therefore,

some international players such as Casino Guichard-Perrachon SA and Dairy Farm

International Holdings Ltd have believed and invested strongly in Vietnam retailing. This is

demonstrated through the continuous expansion of their retail network in order to strengthen

their position as well to compete with local retailers.

The current market place has become more competitive as customers continually expect

retailers to match or exceed their expectations (Wong and Sohal, 2003). As a result, both

local and international retailers are all on the way to look for measures to survive in this

competition so that stable growth as well as strong brand image will be ensured.

RESEARCH PROBLEM

With the enormous number of supermarkets growing day by day, it is essential to

distinguish one from another in order to attract customers. The reason is that “Customers

are the purpose of what we do and rather than depending on us, we very much depend on

them” (Zairi 2000 , Singh 2006). With the question in hand “How to orient customers to

one particular supermarket instead of others?”, managers are of the view that customers’

satisfaction plays an important role in the success of business.

Satisfaction is an overall attitude towards a product provider or an emotional reaction to

the difference between what customers expect and what they actually receive regarding

the fulfillment of a need (Hansemark & Albinsson, 2004). Satisfaction is positively

associated with repurchase intention which is linked to increasing ones likelihood of

recommending a product or service, loyalty and probability (Anton, 1996). In the early

time of supermarkets, it is the variety and differentiation of products that satisfy the

customers. However, the growth of the service industry has elevated the standards of

satisfaction.

The current market place has become more competitive as customers continually expect

retailers to match or exceed their expectations (Wong and Sohal, 2003). With these

above-mentioned reasons, maintaining customer satisfaction is crucial for such retailers

as they transact in a highly competitive world (Fonseca, 2009), it leads to the need of

determining where customers’ satisfaction lies.

RESEARCH QUESTIONS AND OBJECTIVES

This research is to identify, describe specific factors affecting customer satisfaction and

explore the relationship among them. The research questions are:

- What are the significant factors of service quality affecting customer satisfaction?

The research objectives are:

- To provide a background of Vietnamese retailing sector

- To assess and adapt RSQS model to Vietnam context

- To identify factors affecting customer satisfaction in Vietnamese supermarket

- To measure the impact of each factor on customer satisfaction in Vietnamese

supermarket

Significance of the study:

- Provide deep insights for marketers in retailing sector, or especially supermarket,

to have proper marketing campaign to increase customers’ satisfaction

LITERATURE REVIEW

Literature review and theoretical development structure

In the literature review section, we review relevant literature connected to our topic. This

will involve bringing up the theories that we are using in our study. We discuss issues on

customer satisfaction, retail service quality. From the theories, we will develop the model

to fit with the retailing market in Vietnam. Summarily, this theoretical framework will be

the guideline for us in answering the research question. Below is the literature review

structure and theoretical development.

Modification

Theoretical framework

Link between customer satisfaction and service quality

Retailing Service quality dimension

Service quality

Customer satisfaction

Customer Satisfaction

Early customer satisfaction research typically defined satisfaction as a post-choice

evaluative judgment concerning a specific purchase decision (Homburg and Giering,

2001). Kotler (2000), Hoyer & MacInnis (2001) also define satisfaction as a person’s

feelings of pleasure, excitement, delight or disappointment that results from comparing a

product perceived performance to his or her expectations. To put it in other words,

satisfaction stands for contentment customers feel by fulfilling their desire or expectation.

We can literally state that satisfaction is indicators of how happy customers are when

they are using your products or services.

It is noticeable that customers’ satisfaction is always the main concern in every company

as the criteria for evaluating the performances. The level of customer satisfaction has

been shown to influence attitude and word of mouth communication (Sivadas and Baker-

Prewitt, 2000); to be a good predictor of future purchase behaviour (Garbarino and

Johnson, 1999; Kasper, 1988); to influence profit (Anderson et al., 1994); and, in the long

run, to lead to store loyalty (Oliver, 2010). Retailers, therefore, recognize that customer

satisfaction plays a key role in a successful business strategy. We can increase customer

satisfaction by knowing customers’ expectations and perceptions of services offered by

service providers. In this way, service quality could be assessed and thereby evaluating

customer satisfaction.

Service quality

Service quality is a critical factor to all companies since it is most likely to represent an

indicator of success in the saturated market. Understanding service quality must involve

acknowledging the characteristics of services that are intangibility, heterogeneity and

inseparability, (Parasuraman et al., 1985, p.42), (Ladhari, 2008, p.172). In that way,

service quality would be easily measured.

Zeitham, Bitner and Glemler (2009) argue that perceptions of service quality are the

results of consumer’s comparisons of expected service with perceived service.

Expectation is viewed in service quality literature as desires or wants of consumer that

they feel a service provider should offer rather than would offer (Parasuraman et al.,

1988, p.17). Perceived service is the outcome of the consumer’s view of the service

dimensions (Gronroos, 1984, p.39).

Thus, the gaps between expected and actual service result in dissatisfaction. Therefore,

the retailers made every attempt to minimize the so-called gaps by first understanding

customers’ expectation and then delivering exactly those precise expectations. In the

retail context, “perceptions of service encounters accumulate over time and a customer’s

relationship with an organization are a continuation of exchanges or interactions both past

and present” (Czepiel, 1990).

Customer Satisfaction versus Perceived Service Quality

There is a subtle distinction between customer satisfaction and perceived service quality.

Research shows that even though satisfaction and service quality are close in meaning

there is a difference between them; satisfaction is a combination of many elements, which

makes it a more general concept, while service quality is focused on the dimensions of

service quality (Wilson et al., 2008). Satisfaction is a combination of the following

elements: perception of service quality, price, product quality, personal factors and

situational (Zeithaml, Bitner & Gremler, 2009. Besides, the difference is also that

satisfaction is a post-decision customer experience, while service quality is not (Caruana,

2002; Oliver, 1993)

Zeithaml and Bitner (2006) believe that service quality and customer satisfaction have

certain things in common, but satisfaction is generally influenced by service quality.

Other researchers such as Martin et al (2008) view customer satisfaction as being

influenced by the customer's emotions before, during and after the service is rendered.

Interaction with the service provider or the emotional bonding is more important in

predicting repurchasing intention than the cognitive part of satisfaction. This link is in

line with Saravana & Rao, (2007, p.436) and Lee et al., (2000, p.226) who acknowledge

that customer satisfaction is based upon the level of service quality provided by the

service provider. However, a multitude of studies have explored this relationship, with

many (e.g. Tse and Wilton, 1988 and Halstead et al, 1994) arriving at the conclusion that

the direct relationship between perceived service quality and satisfaction is not

necessarily strong. Therefore, this research will provide another insight into how strong

the relationship between service quality and customer satisfaction is.

Perceived service quality dimensions

Service quality in retailing is different from any other product/service environment.

Because of the unique nature of retail service, improvements and measurements of

quality in retailing should be approached in a different way. With the rise of retailing

industry, many models concerning service quality have been developed to help the

retailers to grow in the competitive market. For the purpose of this study, Retail Service

Quality Model by Dabholkar et al. (1996) will be adopted since it was developed for

retailing industry instead of a general service model.

Retail Service Quality Model (RSQS) composes of five dimensions. The first one is

Physical aspects (Retail store appearance and store layout). The second one is

Reliability (Retailers keep their promises and do the right things). The third one is

Personal interaction (Retail store personnel are courteous, helpful, and inspire

confidence in customers). The fourth one is Problem solving (Retail store personnel are

capable to handle returns and exchanges, customers’ problems and complaints). The fifth

one is Policy (Retail store’s policy on merchandise quality, parking, operation hours, and

credit cards)

Mehta et al (2000) conducted a research on service quality in the contexts of

supermarkets and electronic good retailers in Singapore. The results showed that “RSQS

was superior within the context of more good and less service environment, i.e. a

supermarket, while SERVPERF was better for a retailing context where the service

element becomes more important, i.e. an electronic goods retailer” (Mehta et al, 2000).

Besides, Kim et al. (2001) has emphasized that the dimensionality of service quality is

not universal across industries or across countries. In Vietnam, Nguyen (2006) tested a

model on the relationships between service quality, customer satisfaction and loyalty in

supermarkets in HCMC and acknowledged that retail service quality composes of five

dimensions: goods assortment, personnel, appearance, physical aspects and safety.

From all these analysis, it is highly recommended that RSQS could be applied in Vietnam

provided that they are adjusted to the specific context of study.

Development of theoretical framework

Based on the above review, RSQS is employed in this empirical study of service quality

in Vietnamese supermarkets. However, from the study conducted in Vietnam (Nguyen,

Le 2007), there has been some modification from the original model. Firstly, the two

dimensions about personal interaction and problem solving are terms under one phrase as

“Service personnel”. Although, this adjustment is not congruent to the original scale by

Dabholkar et al. (1996) in the US, this result is quite consistent with the results of Mehta

et al (2000) in Singapore and Nguyen (2006) in Vietnam, in which all items related to

personnel (interaction and problem solving) are converged into only one component.

Moreover, in this research, the initial 28 items of RSQS model are modified and

additional items are included to measure the perceived service quality and customer

satisfaction in supermarkets.

Physical Aspects

The concept of physical aspects is defined as the retail store appearance and store layout

(Huang, 2009 and Vàzquez et al, 2001). According to Aghazadeh (2005), there are three

principles of layout including circulation, coordination, and convenience. Firstly,

circulation is taken to mean such factors such as location, size, shape, and character of

merchandise that control the traffic flow throughout the store. Secondly, coordination is

the ability to control customer movement or predetermined impression on the customer

by combining goods and space; and ultimately to create the desired atmosphere.

Moreover, the term atmospherics is defined in Kotler, (1973) as the effort to design

buying environments to produce specific emotional effects in the buyer that enhance

his/her purchase probability. Atmosphere is experienced through the senses, primarily

sight, sound, scent, and touch. “The atmosphere of the place is more influential than the

product itself in the purchase decision" (Kotler, 1973). Finally, convenience is arranging

items to cater to various customer needs by emphasizing on the management’s policy, the

character of the merchandise, and the character of the customers.

Sirohi et al (1998:237) found that good store facility design leads to enhanced

perceptions of overall merchandise quality and Yuen & Chan (2010) say that physical

aspects such as a good store layout and attractive service materials give customers a good

impression and attitude towards the store. Yet, particularly in marketing, there is a

surprising lack of empirical research or theoretically based frameworks addressing the

role of physical surroundings in consumption settings. However, we still propose that

there is a positive relationship between physical aspect and customer satisfaction.

H1: There is a positive relationship between physical aspects and the satisfaction of the

customers when shopping in supermarkets.

Reliability

“Reliability refers to the promises given by the store. If the store cannot keep or breaks

the promises, it dissatisfies customers and results in negative word-of-mouth. In contrast,

when the company is able to keep its promises, it increases customer confidence in the

store and creates customer satisfaction and lead to loyalty”, (Yuen & Chan 2010:236).

The construct of reliability measures the supermarket’s ability to deliver the service that

has been promised to customers accurately, and without error (Huang, 2009 & Vàzquez

et al, 2001). It is all about keeping promise, meeting deadlines and providing accurate

information to customers. Accurate information includes product prices, correct

information regarding the products. Furthermore, the dimension of reliability also covers

the ability to have available merchandise when required. Specifically in the supermarket

environment, limited availability of stock or long queues refers to the lack of reliability

on behalf of the retailer. It has been proved that lengthy waits for the cash register can

result in consumers developing negative perceptions and decreased customer satisfaction

(Rigopoulou et al, 2008; Grewal, 2003). According to Zinn and Liu (2001), a stock

outage can result in the consumer leaving the store and forgoing the purchase to search

for the item elsewhere. It is said to be really hard to keep customers satisfied but much

easier to dissatisfy customers. Unfortunately for retailers, most consumers do not

complain when dissatisfied, they just shop elsewhere (Jackson, 1999).

H2: There is a positive relationship between the supermarket reliability and the

satisfaction of the customers

Service personnel

For retailers, the customer service by sales personnel is perhaps the most highly visible

attribute of the service encounter that can affect consuming intention of customers.

Lemmink & Mattson (1998) have emphasized that the degree of personal warmth

displayed by service employees towards customers was related significantly and

positively to service quality perceptions and customer satisfaction.

Service personnel is about interacting and solving the problem of customers. It refers to

capability of handling potential problems such as inquiry, complaints from customers,

returns and exchanges with willing and polite attitude. This aspect of retailers is

measured by the level of courteous, helpful, inspire confidence and trust from employees

toward their customers. Overall, in any industry, employee behavior is vital in providing

services as employees are the link for the organization with its customers (Lu, Lukoma

2011). Gwinner et al (2005); Liao & Chuang (2004) have suggested that the successful

implementation of a company’s marketing concept is to an essential degree dependent on

the frontline employees because of their direct customer interaction.

In Vietnam, friendliness of sale staff is an important competitive factor of supermarket

chains regarding Vietnamese characteristics of being friendly and nice. According to

Agro Vietnam (2008) 37.4% Vietnamese consumers consider friendliness of staff when

they choose a supermarket for shopping.

H3: “Service personnel” has a relation to customer satisfaction.

Policy

Policy refers to supermarket’s decision concerning merchandise quality, parking

facilities, operation hours, and credit card. Among dimensions, policy is regarded as the

most favorable one by the customers (Noel Siu, Jeff Cheung, 2001). Especially, policy

significantly impact on overall retail service quality of supermarket in Vietnam (Nguyen

Nhat, Nguyen Hau, 2007)

Firstly, the merchandise quality is about the wide choice of products and the products

with good value. Stores that are perceived as having superior merchandising are likely to

be preferred by consumers (Thang and Tan, 2003). The evaluation of the performance of

the goods on offer also includes the store’s ability to stock a wide range of products; the

freshness of meat, fruit and vegetables; the assortment of fresh produce available as well

as high quality of private label brands (Vàzquez et al, 2001). Failing to meet the

expectations of the consumer in any of the aforementioned areas could result in the

consumer experiencing lower levels of satisfaction. It has been indicated that continuous

complaints of inconsistent produce quality could result in negative perceptions regarding

the store (Bruhn and Grebitus, 2007) and hence lead to reduced levels of satisfaction. In

the case of Vietnam, merchandise quality is a very important competitive factor of

supermarket chains when 94% Vietnamese customers care about quality of products in

stores (Agro Vietnam,2008).

Secondly, operating policy is another considerable dimension (Retailing research council

Asia by IBM, 2007). Shoppers tend to excel in quality of service, particularly in terms of

opening hours and ease of purchase (Overall report by IPSOS BELGIUM, 2009).

Convenient operating hours and parking lot positively affect service quality of retail in

Vietnam (Nguyen Nhat, Nguyen Hau, 2007). Moreover, the research of Food

consumption in Hanoi and HCMC showed that 74.8% of Vietnamese consumers consider

parking facilities when they choose a supermarket for shopping (Agro Vietnam, 2008).

H4: Store policy has a direct effect on customer satisfaction within the supermarket

sector.

H4

H3

H2

H1

Customer satisfaction

Policy

Service Personnel

Reliability

Physical aspects

RESEARCH METHODOLOGY

1. Project Philosophy

Choosing and adopting a philosophical position is one of the most crucial step at the

beginning starting the research which impacts directly to researcher’s assumptions as

well as their viewpoints. In our research, we’ve adopt Pragmatism as the project

philosophy. According to Kelemen and Rumens, 2008, pragmatism asserts that concepts

are only relevant where they support action which means different views are taken and

the most appropriate positions, methods or approaches are chosen to support the study

and to release those most accurate answers for project questions. In this paperwork, we

accept both interpretivism and positivism. Positivists consider there is a single, external

and objective reality to any research question regardless of the researchers belief (Carson

et al. 1988; Hudson and Ozanne 1988). Data and number are the most crucial factors;

statistical and mathematical techniques are used as the main research methods. In

contrast, interpretivism accepts there is more than one reality and more than a single

methods to assess those realities. According to Lincoln and Guba (1985), the multiple

reality means that it is difficult to measure, interpret as they depend on other systems for

meanings. The knowledge generated from interpretivism is perceived through socially

constructed and subjective interpretations (Carson et al. 2001; Hudson and Ozanne 1988).

During research process, we will rely on quantitative data to assess the relationship

between perceived services and customer satisfaction. However, the source of data is

from customers which is socially constructed and possibly has subjective opinions.

In a word, after assessing pragmatism, interpretivism and positivism, our research adapt

pragmatism as we will have more changes to approach problems under different views

and increase the reliability and accuracy of our results.

2. Nature of research

This research is mainly descripto-explanatory study. First, it is necessary to have a clear

picture of the topic and describe characteristics of a phenomenon, namely customer

satisfaction. The research seeks to indentify relevant factors affecting customer

satisfaction to answer research questions. Besides, explanatory nature also emphasizes on

studying the relationship between variables by subjecting the data to statistical tests such

as correlation to get a clearer view of the relationship (Mark et al, 2012)

3. Research design

Both qualitative and quantitative are used during the research project: but we tend to

emphasize more on quantitative method.

Quantitative method is used to predict phenomenon with measurable variables (Leedy &

Ormrod 2001). It is generally associated with deductive approach in which theory is

tested (Mark et al, 2012). We decide to use it because firstly, it is appropriate to answer

research question of identifying various factors. Secondly, it helps to measure variables

derived from RSQS model and gives the findings more reliability and validity. Thirdly,

because of time constraint, quantitative method is preferred.

Nevertheless, the purpose of qualitative research is to explore factors affecting customer

satisfaction and their items. These dimensions and items are adapted from Allaway et al

(2011).

On the other hand, qualitative method is also applied in pre-test section, namely initial

exploratory discussion to get agreement on scope of the project and gain some contextual

data. These data are analyzed qualitatively to get a general view of important internal and

external issues.

4. Data Collection

a. Primary data

There are two sources of data for research, namely primary and secondary data.

Secondary data is gathered from previous studies through various sources such as

articles, internet, organization’s database, government surveys and enterprises. The

advantage of secondary data is time saving and inexpensive in comparison with primary

data. However, secondary data may not suitable to a specific research since they are

conducted for another study with different objectives (Ghauri & Gronhaug, 2007); in

other words, they are just applicable in specific cases. In this research setting, survey

techniques were used to answer the research questions, which were based on a structured

questionnaire. Moreover, researchers should use secondary data as reference tool for the

first step before proceeding with their own research.

b. Research scope

The research is designed to examine customer behaviors in two biggest of retailers in

Hochiminh City, Vietnam: Coop Mart and BigC. Target participants of this study are

females aged 25-49 who at least have visited Coop Mart and BigC once every two weeks.

This group is chosen as representative sample as they are the dominant customers of

retailing stores who regularly shop for family and self needs.

c. Sample selection

As this is a cross-sectional study, most of the academic studies are cross sectional.

Cross-sectional studies need less time to be completed. The researchers also have limited

time to complete their research work and financial resources.

A convenience sampling is adopted to select the respondents in this research. By

convenience sampling technique, researchers refer to a technique that goes for the sample

that is available in the light of easy access (Bryman & Bell, 2007, p.197). As convenience

samples are generally the cheapest and easiest to conduct. Convenience sampling is most

often used during the exploratory phase of a research project and is perhaps the best way

of getting some basic information quickly and efficiently.

The researchers used questionnaire as a tool for data collection because this method

assists to increase response rate (Saunders et al 2000). To be more specific, the

respondent will be selected based on the following criteria. They are female at the age of

25 to 49 and visit the supermarkets at least once per two weeks in two biggest

supermarket chains: BigC and Coopmart. Offline survey will be conducted in the

neighborhood of these two target locations with the admission of the supermarkets. At the

same time, online survey will also be implemented to ensure the targeted respondents.

The researchers did the survey in different time during a day, which includes the busy

hours and less busy hours of fours stores in order to get more reliable questionnaire

results. The sample size will be estimated by following method.

Explanation Figures

Female population in Ho Chi Minh in 2013 4.034.000

Proportion of 25-49 age of female in total

population

19.19%

(calculated by 17551460[female in this

age]/ 92477857[total population])

Female at the age of 25-49 in Ho Chi Minh 773.987

Sample size at 95% confidence level and

5% margin of error

384

With response rate (80%) 480

The questionnaire was self-administered for the online survey. The rational for this data

collection method is based on the theory that respondents are more attentive to the task of

completing a questionnaire and provide the more meaningful responses when they are

contextualized in the environment that they are evaluating (Dabholkar et al., 1996).

However, with the offline survey, research Assistants were assigned to the stores to help

customers to administer the questionnaires.

d. Design of survey questionnaire

Data were collected by means of a structured questionnaire. The questionnaire consisted

of two sections, A and B.

In section A, Of the 28 items in original RSQS, there will be a modification process by

eliminating or adding some items to make it fit with Vietnam market. All statements were

created based on the four main dimensions of Retail Service Quality Scales that are

physical dimension, reliability, service personnel and general policy of the store. All the

questions are multiple-choice and close-ended questions. Because of being closed-ended

and multiple-choice in nature the results of the questions are easy to compare, tabulate

and analyze easier. Closed questions offer efficiencies to researchers. They are certainly

easier to analyze and are usually quicker to administer and ask. Thus, they are often used

in large samples and in self-completion interviews. The consistency in the response

categories allows trends to be tracked over time if the same questions are used. All items

were measured using a five point Likert scale, from ‘1-Strongly disagree’ to ‘5- Strongly

agree.

Section B of the questionnaire is pertaining to respondent profile which includes the

demographic data as age and the frequency of visiting sore store. This section will

provide recovered practical implications for the retail managers and additionally find out

the difference or similarities in the perception of the overall service quality between

customers according to different ages. Applying those supplementary questions about

age, frequency of visiting the store the researchers will be able to provide better and

unbiased recommendations to the retail managers.

e. Pilot study

With an aim of getting the best results from the survey method, a pilot study was made

and carried out prior to the actual study. It can be argued that the pilot study is a useful

tool in determining how adequate the questions and the instructions are (Dahmstrom,

2005, pp. 143-145). A pre-test with a sample of 20-questionnaire was conducted. This is

the process that we make the questionnaires more approachable and clear for

respondents.

5. Research limitations

This paperwork describes several factors affect customers’ satisfaction at selected

Hochiminh retailing stores, especially supermarkets (Coop Mart and BigC), customers’

behavior in other type of retailing stores such as convenient stores, shopping malls might

be incompatible with this study. Customers’ behavior is also different from areas to areas;

customers in Hochiminh City have different shopping patterns, responses to people in

Hanoi, Danang… Regards to target participant in the research, we only examine 25-49

year-old female which might reduce the diversity of data.

Due to time and capabilities limitation, those restrictions are inevitable. However, by

selecting the most dominant and representative evaluating objects, we have confined

those restrictions to its affects. Therefore, it is supposed that those limits was not

necessarily so damaging to our group dissertation. In further researches, to overcome

those limitations, we suggest researchers to examine at bigger scale, evaluate more

groups of customer and at other types of retailer.

Appendix Modification of individual items in RSQS model

Dimension 1 Physical Aspects

Sub-Dimension 1 Appearance

1. The store has modern-looking equipment and fixtures

2. The store and its physical facilities (trial rooms and restrooms) are visually attractive

3. Materials associated with this store’s service (such as shopping bags, loyalty cards and

catalogs) are visually appealing

4. The store has clean, attractive and convenient physical facilities (restrooms, fitting

rooms)

Sub-Dimension 2 Convenience

5. The store layout at this store makes it easier for customers to find what they need

6. The store layout at this store makes it easier for customers to move around in the store

Dimension 2 Reliability

Sub-Dimension 3 Promises

7. The supermarket makes sure the customers do not have to queue too long at the cash

register

8. The supermarket provides its services at the time it promises to do so (for example

delivery service)

Sub-Dimension 4 Doing-it-Right

9. The supermarket performs the service right all the time, especially the first time

10. The supermarket has merchandise available when the customers want it

11. The supermarket insists on error-free sales transactions and records

Dimension 3 Service personnel

Sub-Dimension 5 Inspiring confidence

12. Employees in the store have the knowledge to answer customers.

13. The behavior of employees in this store instills confidence in customers

Sub-Dimension 6 Courteous/ helpfulness

14. Employees in this store tell customers exactly when services will be performed

15. The employees in this store give prompt service to customers.

16. This store gives customers individual attention

17. Employees in this store never too busy to respond to customer’s requests

18. Employees in this store are consistently courteous with customers

Sub-Dimension 7 Problem solving

19. This store willingly handles returns and exchanges.

20. Employees of this store are able to handle customer complaints directly and

immediately.

21. When a customer has a problem, this store shows a sincere interest in solving it.

In this dimension, “Customers feel safe in their transactions with this store” is eliminated

since its meaning is similar to the item in reliability dimension “This store insists on

error-free sales transactions and records”. Besides, “employees in this store treat

customers courteously on the telephone” is also not included. This decision is due to the

fact that we consider service personnel as the direct interaction of sales staff with

customers inside the store. In order to not to make respondents in survey confused, it has

been eliminated. This exclusion is also confirm by Yaghi (2010) and Nguyen & Le

(2007). After combing the aspect “Personal interaction and Problem solving” into

“Service personnel”, there will be three sub-dimension in this dimension including:

Inspiring confidence, courteous/ helpful and problem solving.

Dimension 4 Policy

22. This store offers high quality merchandise

23. This store provides plenty of convenient parking for customers

24. This store has operating hours convenient to all their customers

25. I am satisfied with the general price level of merchandise at this store

26. This store provides a good value for the money

In this dimension, two items, including “this store accepts all major credit cards “ and

“the store has its own credit card “, are eliminated. This comes from the cash culture in

Vietnam. In fact, just 20% of the population over the age of 15 is considered banked

today, according to the latest figures from Euromonitor International. As a result, more

than three-quarters of all consumer payments are made with cash versus card or

electronic payments.

Furthermore, two items, which have been adopted from Allaway et al. (2011, p. 194),

have been added to the model. From the research by AC Nielsen “Shopper trend 2013”,

the value for money segment is still dominant with customers buying product for

promotion at 50%, 41% and 36% for household care, personal care and food respectively.

While supermarkets deal mainly with FMCG and other goods, it requires to put

additional items into the original models.