Quynh(1) (Repaired).doc

8/12/2019 Quynh(1) (Repaired).doc

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College of Management

I-Shou University

Master Thesis

The Relationship between Service Quality and Citien

Satisfaction of Meo !ac "istrict #overnment$s %ublic

Services in !ietnam

&dvisor' Tsung-(uang )* Ma

Co-&dvisor' Tran !o Trang

#raduate Student' "&+# M&I QU,+

May ./01

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Acknowledgements

I greatly appreciate to the professor for providing insightful and constant guidance and

conscientiously reading through my drafts of the research* I highly appreciate his valuable and

useful comments on this wor2* I am also appreciating his advice3 and willingness to discuss any

4uestions and ideas that I had* I especially than2 all professors at the University for their

teaching with valuable 2nowledge and their support during my study course* I than2 to my

student colleagues who have helped me in respect during the completion of the ro5ect*

#ratitude goes to the interview responses and case study participants who made time in their

busy schedules to respond to the numerous 4uestions* & special than2s to my family in

supporting and encouraging me during the study course*

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Abstract

Meo !ac "istrict is located in the north of a #iang %rovince* The Country is ad5acent to China

and 6ao 7ac "istrict3 Cao 6ang %rovince in the )ast3 to ,en Minh3 a #iang %rovince and the

6ao 7am3 Cao 6ang %rovince in the South3 to the "ong !an "istrict3 a #iang %rovince in the

8est3 and to "ong !an3 a #iang %rovince and China in the +orth*

Meo !ac is one of the poorest mountainous rural areas in !ietnam*3 the public services in Meo

!ac are affected by the constraint of geological and topographical characteristics as well as the

uneven distribution of habitants3 even Meo !ac "istrict has had significant efforts to supply the

necessary pubic services to citiens in recent years* This research are to e9amine the 4uality of

municipal services provided by local government in Meo !ac "istrict: and to identify the most

important service 4uality dimensions that determine citien satisfaction* The 4uestionnaires were

distributed to ;// responses in Meo !ac "istrict* The public services in Meo !ac "istrict is

studied and the citien satisfaction for the public they are provided will be surveyed* The

research results will provide a clear understanding among the leaders of Meo !ac "istrict to

improve the satisfaction of citien in public services* The main factor is the service 4uality of

Meo !ac "istrict government$s public services which is at the same time is affected by

demographic characteristics* To investigate those impacts3 4uantitative research is applied with

three data analysis techni4ues3 including descriptive statistics3 reliable analysises of the survey

scale3 and linear regression for hypothesis testing*

(eywords' citien satisfaction3 government services

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Table of Content

&c2nowledgements**************************************************************************************************************************ii

&bstract*******************************************************************************************************************************************iii

Table of Content*****************************************************************************************************************************iv

7ist of Tables***********************************************************************************************************************************v

7ist of


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Chapter 1 "&T& &+&7,SIS &+" (),


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Table 00' &+=!& analysis result for age*************************************************************************************.A

Table 0.' &+=!& analysis result for marital status*********************************************************************.B

Table 0;' &+=!& analysis result for education***************************************************************************.E

Table 01' &+=!& analysis result for monthly income****************************************************************.E

Table 0?' &+=!& analysis result for family member******************************************************************;/

List of Figures


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Chapter 1 INTRO!CTION

In this chapter3 the study introduces the research topic about the Relationship between Service

Quality and Citien Satisfaction of Meo !ac "istrict #overnment$s %ublic Services in !ietnam

and its content consists of the bac2ground of the study3 problem statement3 and research

ob5ectives*


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specific ob5ectives of the programs is to improve basically rural public services3 however a few

studies have been conducted in this area* +guyen Thi ien .//AD discussed real situations and

preliminarily suggested policy measures for improving the 4uality of rural public services in

!ietnam* &2soy and "i2meli2 .//AD investigated the role of services in income growth of rural

households in !ietnam after the ma5or trade liberaliation in rice* The authors focused on

services that have an impact on transaction costs i*e*3 roads or 4uality of roads3 public

transportation3 access to credit3 agricultural e9tension services and communication services*

Results show that overall service availability and 4uality have a positive impact on income

growth*

The implementation of public services in Meo !ac "istrict is partly settle down the contradiction

between too big subsidy e9penditures of public services3 and very limited stage budget* This

means e9penditures for public services3 through socialiation is shared by the state budget and

other resources of the society: and to e9tent3 it re4uires the contribution from people* Those

again leads to another misunderstanding the socialiation is only measure to mobilie proper

wealth and materials of people in condition of limited state budget effectuating the policy Gthe

state and the people act togetherH* &ll above mentioned situation has impact on citien

satisfaction on public services* Thus3 this research is to e9amine and investigate determinants of

citien satisfaction on public services in Meo !ac "istrict and from that3 it would assist the

public institutions to recognie3 evaluate and improve the level of citien satisfaction in publicservices at Meo !ac "istrict*

1"'" Research ob(ecti)es

The study consists of the following ob5ectives'

- To determine the level of relationship between service 4uality and citien satisfaction of Meo

!ac "istrict #overnments %ublic Services in !ietnam*

- To provide a clear understanding among the leaders of Meo !ac "istrict to improve the

satisfaction of citiens in public services*

*1"+" ,cope of the stud$

In this research3 the data for analying is collected from the survey with the Meo !ac$s citiens

who were e9perienced the public services at Meo !ac "istrict* It also means that the study is

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narrowed at basic and indispensable public services delivered by government institutions3 such

as3 fresh water3 primary education3 electrical supply***

1"-" Research methodolog$

The data was collected by using a structured 4uestionnaire3 which consists of three parts* %art &

is designed to gather information about the satisfaction of citiens in public services* %art 6 is

the opinion of citien to improve the public services in Meo !ac "istrict and %art C is the

respondent$s demographic bac2ground such as gender3 age3 educational level3 marital status3

income and occupation*

1"." Research /uestions and data collection

1"."1 Research /uestionThe 4uestion in general is as'

8hat factors bring the satisfaction to citien of public serviceF

8hat is the overall citien satisfaction with public serviceF

ow can public service be improved at Meo !ac "istrictF

1"."%" ata collection

The primary data is achieved through the survey of 4uestionnaires with selected citien in Meo

!ac while the secondary data come from news3 boo2s and literatures published in the internet*


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The survey was conducted by interviewing with selected citien of Meo !ac: therefore the

author could receive responses*

Step 1' )nter and Clean data

The answers from responders were inputted into a e9cel table in order to perform descriptivelystatistical analysis* The author assumes that the responses answered fully and precisely on given

4uestions*

Step ?' "ata analysis

"ata from ;// valid 4uestionnaires will be analyed using S%SS* "escriptive statistical analysis

will be used to describe responses$ demographic characteristics and to evaluate service 4uality

perceptions of municipal services*

1"."'" ,ample si0e

The samples sie for survey of 4uestionnaire is ;// selected Meo !ac "istrict$s citiens3 who

were e9perienced the public services*

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Chapter % LITRAT!R R2I3

%"1" &ublic ser)ices

%"1"1" Conception on public ser)ices

&ccording to the conception of many countries3 public services always are associated to the state

supply of these services* The termH public servicesH in )nglish originates from the category of

public commodities* In the economic term3 public commodities associate to some natural

characteristics3 such as' it is a 2ind of commodities which is impossible to e9clude anyone from

using once it has been created: the consumption of a person does not decrease that of others3 and:

it is impossible to be discarded3 that means even when someone does not want to consume a

public commodity3 it still e9ists* Thereby3 public commodities arecategoried concretely into

pure public commodities that satisfy all the three above-mentioned characteristics: and impure

public commodities that do not satisfy all above characteristics* &t first3 the definition of Gpublic

servicesH is to present the activities of impure public commodity supply3 firstly used in the

)urope after the 8orld 8ar II* +owadays3 the conception of Gpublic servicesH has been

remar2ably e9tended3 depending on various approaches*


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responsible for delivering services and the budget administration that develop the human capital

and infrastructure necessary for broad-based growth* The government has implemented

supportive programs for the poor3 such as the program 0;? GSocio-economic development in

severely difficult areasH and the program 0;E G)nhancing healthcare 4uality for the poor

households3 elderly and invalidH* =ne of the specific ob5ectives of the programs is to improve

basic rural public services3 however very few studies have been conducted in this area* +guyen

Thi ien .//AD discussed real situations and preliminarily suggested policy measures for

improving the 4uality of rural public services in !ietnam* Results show that overall service

availability and 4uality have a positive impact on income growth*

=ne of the most significant challenges facing service organiations in Meo !ac today is to

provide continuous necessary services instead of consistently high 4uality services at present*

The delivery of continuous necessary services contributes to the establishment of credibility and

reputation of the organiations in the eyes of the citiens*

In several communes at Meo !ac3 the basically rural public service does not meet the demand of

people regularly*


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%"% ,er)ice /ualit$

Service 4uality is a concept that has attracted considerable interest and debate in the mar2eting

literature because of the difficulties in both defining and measuring with no overall consensus

emerging on either 8isniews2i3 .//0D* =ne that is commonly used by defining service 4uality

as the ability of the organiation to meet or e9ceed customer e9pectations* It is the result of the

comparison that customers ma2e between their e9pectations about a service and their perception

of the way the service has been performed Jeithaml et al* 0EE/D* If e9pectations are greater than

performance3 then perceived 4uality is less than satisfactory and hence customer dissatisfaction

occurs %arasuraman3 Jeithaml K 6erry3 0EB?D* Most of the recent wor2s on service 4uality in

A

+ational #overnment


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mar2eting can be credited to the pioneering and continuing wor2 of %arasuraman3 6erry and

Jeithaml


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values3 and social influences* &ccording to (otler and (eller .//@D cultural3 social and personal

factors are always the most factors influencing the customer$s buying behavior* The public

service institution should understand these factors will help their services meet the citiens$

needs and hopes*

%"'"1" Cultural factors

Culture is a word that is used regularly in all sides of the social life3 especially3 culture is also

considered a measure to reflect a development level of each economy3 each area and different

organiation or business* In the publication GSearch of )9cellenceH3 %eters and 8aterman 0EB.D

showed a lot of attention to the importance of culture to achieve high levels of organiational

effectiveness*

%"'"%" ,ocial factors

&ccording to (otler and (eller .//@D3 social factors included the reference group3 family group3

roles and status* Reference #roups are those groups that have a direct or indirect effect on the

person$s behavior as families3 friends3 neighbors3 and co-wor2ers* Reference groups e9pose an

individual to new behaviors and lifestyles3 and often have an effect on their attitudes3 products or

brand choices (otler and (eller3 .//@D*


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%"'"'" &ersonal factors

itesh 6hasin ./0/D in his online 5ournal about G%ersonal factors affecting consumer behaviorH

identifies there are many personal factors affect the attitude of using products and services of one

company* e mentions to age and human life cycle stage which refers to the fact that the life

cycle is Gan orderly series of stages in which consumer attitude and behavioral tendencies evolve

and occur because of developing maturity3 e9perience3 income3 and statusH* itesh 6hasin also

addresses the importance of life style which is 2nown as the reflection of personalities and self-

concepts* The life style can be measured by applying the psychographic method which ta2es into

account all of peoples activities3 interests and opinions* Then3 this method finds the relationship

between these factors to consumer behavior of one product and services*

%"'"+" &s$chological factors&ccording to &dam Cash ./00D in his online 5ournal about G&nalying Theories of

%sychologyH3 psychology is defined as Gthe scientific study of human behavior and mental

processes attempts to uncover why and how we do what we doH* &dam Cash identifies that there

are several grand theories of psychology* The first is biological theory which is based on the

brain and the nervous system* The second is psychoanalytic which addresses the unconsciously

mental processes and the affection of early child development issues* The third is the

behaviorism theory that e9amines the affections from outer environment i*e* televisionD topeople$s psychologies* The last one is cognitive which focuses on Gthe mental processing of

information3 including the specific functions of reasoning3 problem solving3 and memory*H

Cognitive psychologists are interested in the mental plans and thoughts that guide and cause

behavior* owever3 the psychological factors3 in the author$s opinion3 are very hard to identify

and measures and the public services needs very long time to identify how the psychological

factors affect to the citien*

%"+" ,R2&RF model to measure ser)ice /ualit$The basic mar2eting literature supports the theory that the higher 4uality of customer services

leading to the higher customer loyalty which involves perceived service 4uality3 corporate image3

customer satisfaction3 and switching costs as the main elements of customer loyalty (ristensen

et al*3 .///: Lamal and +aser3 .//.: ,anamandram and 8hite3 .//1: 6ei and Chiao3 .//@D*

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8hen customers have higher loyalty on the company$s products and services3 the company can

retain the customer base and earns more profits*

%"+"1" &ercei)ed ser)ice /ualit$

%erception is how people see the world around* %eople might see the &lthough S)R!QU&7 has

been applied in many studies to assess service 4uality: the reliability and validity of this

instrument have been debated by several authors3 particularly the e9pectation dimensions*

Carman 0EE/D3 for instance3 argued that S)R!QU&7 is not applicable for the measurement of

service 4uality in every service industry since its five dimensions cannot be generalied to all

service industries* Teas 0EE;D also claimed that S)R!QU&7 lac2s the discriminatory validity

that stems from the e9pectation dimension scores because the responses misunderstand the

e9pectation 4uestions* &nd Cronin and Taylor 0EE.D found that the service 4uality conceptunder S)RQU&7 confounds satisfaction and attitude* They also concluded that service 4uality

can be better measured by using only the perception dimension3 rather than e9pectation*

&s a result3 Cronin and Taylor 0EE.D came up with a new research instrument3 S)R!%)R


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and the new customers tend to loo2 at the physical assets to evaluate initially the offered

services*

%"+"%"%" Reliabilit$

Jeithaml et al* 0EE/D stated that reliability is the companies$ capacities to perform the

committed services in time and in dependence* Reliability3 according to Jeithaml and

%arasuraman 0EE/D3 is the core of the business of the companies* The reliability can be achieved

through addressing the reliability problems in the mission statements of the companies3 the

standards and code of conduct for service reliability and providing the ade4uate training on

reliability* es2ett et al 0EE1D stated that the reliability can be improved through the high

technology in developed countries and through the personnel capacity in developing countries*

6erry and %arasuraman 0EE0D suggested the company can adopt the continuous improvement

programmed to enhance the service reliability*

%"+"%"'" Responsi)eness

Jeithaml et al* 0EE/D stated that responsiveness is how the companies react with the customers$

in4uires and provide prompt services* art et al 0EE/D3 Swanson and (erlley .//0D emphasied

that the service issues solving indicates to the successful service 4uality* Jahoor D identified that

the customer perception on the level of responsiveness of the companies is reflected through the

process of which the companies resolve the customers$ in4uiries* Jahoor also stated that the

responsiveness will be improved in case of the companies provide the smoother ways for their

customers to access easily the companies$ services*

%"+"%"+" Assurance

Jeithaml et al* 0EE/D stated that assurance is the level of trustfulness and confidence of the

companies when they provide the committed services to their customers* Jahhoor D identified

that assurance level of the companies is based on the 2nowledge of the employees and how they

improve the trustfulness and confidence of using the companies$ services of the customers* The

assurance is more important in some particular industries such as ban2ing3 insurance and law*

%"+"%"+" mpath$

Jeithaml et al* 0EE/D stated that empathy is 2nown as Gcaring3 easy access3 good

Ocommunication3 customer understanding and individualied attention given to customersH*

0.


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(otler 0EEED and 6itner .//;D highlighted the importance of empathy in both of small and

large scale companies and addressed that the companies which have succeed in building the

mutual relationship with their customers shall have the higher customer satisfaction*

%"-" Citi0en satisfaction


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Chapter ' 4T5OOLO67

This chapter presents the research methodology that is given to conduct this study* It also

consists of hypotheses research3 research process3 designing research framewor23 and method for

statistical analysis* The ob5ective of this chapter provides the clear framewor2 for conducting this

study so that the readers can understand how the study is structured and carried in the scientific

way* The first part of research methodology is to formulate hypotheses that shall be validated in

this study* 6ased on given research hypotheses3 research process is proposed with strong

adherence on ma2ing the contents and the research issues logical and the references reliable and

valid* The third part of this chapter designs research framewor2 whether the author shall discuss

about how the primary data is collected and processed in order to help validating research

hypotheses*

'"1" 5$potheses research

6ased on the research purpose3 two following research hypotheses are set out'

- 5$pothesis 1' There is significant relationship between the citiens$ demographic

characteristics and perception of %ublic service 4uality in Meo !ac "istrict*

- 5$pothesis %'%erceived Quality will positive influence Meo !ac Citien$s Satisfaction

Software to be used' S%SS%lan to apply &+=!& verifying 0 and simple linear regression analysis verifying .3 in

addition to reliability analysis and descriptive statistics for both 0 and .

'"%" Research model

The relevant model3 in term of citien satisfaction3 can be found in many previous studies* Many

previous authors suggested using the S)R!QU&7 model that was invented by %arasuraman et al

0EEBD* The original S)R!&7QU&7 model3 at the initial stage3 contained more than 1/ items

but the analyses of %arasuraman et 0EEBD reduced the number of factors to 0/ underlying service

4uality dimensions* owever3 as mentioned in the Chapter II3 the S)R!QU&7 model is still

limited as it is not applicable for the measurement of service 4uality in every service industry

since its five dimensions cannot be generalied to all service industries* Teas 0EE;D also claimed

that S)R!QU&7 lac2s the discriminatory validity that stems from the e9pectation dimension

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scores because the responses misunderstand the e9pectation 4uestions* Thus3 the S)R!%)R

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