customer satisfaction from the sales experience & …...department of business administration...

Department of Business Administration

I-Shou University

Master Thesis

Customer satisfaction from the Sales

Experience & Services Experience at the

Chevrolet authorized Dealerships in

Vietnam

Advisor: Dr. Tai-Chi Wu

Co-Advisor: Dr. Tran Van Trang

Graduate Student: Duong Van Thanh

August 2014

i

Acknowledgements

Firstly, I would like to thank in deep my advisors, Dr. Tai-Chi Wu and Dr. Tran Van Trang,

who help and guide me a lot through the process of implementation outline, document search

until this thesis have completed

Furthermore, I sincerely appreciate my teachers in I-shou University and Vietnam Power

University, who imparts valuable knowledge to me in graduate programs

Finally, I want to show my appreciation to all officials and employees currently working at the

General Motors Vietnam have facilitated and supported me during the process of data collection

for the subject.

ii

Abstract

Since the automotive industry is experiencing major changes. Emerging technologies and new

entrants in the market are challenging traditional concepts and the "way we do things". the aim of

this study is investigating the impact of sales experience, services experience on customer

satisfaction at the Chevrolet authorized Dealerships in Vietnam. For conducting the search, this

thesis applied empirical method and survey with 183 customers who have used the service from

General Motors Vietnam (GMV). By using the principle component method for explorative

factor analysis reality and validity were validated. The regressions are taken to examine the

relationship among variables. The result indicates that sales experience, services experience have

significant impact on customer satisfaction. However, the result also indicates two sub- factors is

not predicted customers satisfaction, namely: Chevrolel and facilities dealerships and dealership

and Service advisor. For fur the testing of order the important factor for customer satisfaction

among the factor of GMV, this study used T-test for analysis the mean score of each factors. The

result indicates that the Work carried out and experience factors is ranked first ; the second factor

that affect on customer satisfaction is service advisor; coming as the third is Chevrolel and

facilities dealerships; the fourth is sales consultant ; number five belong to financial and delivery

process, and the lowest score is responsiveness.

Keywords: General Motors Vietnam, Sales experience, Services experience, Customer

satisfaction

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Table of Contents

CHAPTER 1. INTRODUCTION .................................................................................................... 1

1.1. Background of study ............................................................................................................. 1

1.2 Overview of General Motors Viet Nam ................................................................................. 2

1.2.1. General presentation ....................................................................................................... 2

1.2.2 Authorized Dealerships ................................................................................................... 4

1.3. Objectives and research questions ......................................................................................... 5

1.4. Scope of the study ................................................................................................................. 6

CHAPTER 2. LITTERATURE REVIEW ....................................................................................... 7

2.1 Fundamental concepts ........................................................................................................ 7

2.1.1 Services ........................................................................................................................... 7

2.1.2. Service Quality ............................................................................................................... 9

2.1.3 Customer Satisfaction ................................................................................................... 11

2.1.4 The Relationship among Service Quality and Customer Satisfaction .......................... 12

2.1.5 Sales Experience & Service Experience ....................................................................... 13

2.2. Model of satisfaction customer ........................................................................................... 14

2.2.1 American Customer Satisfaction Index (ACSI) ............................................................ 14

2.2.2 SERVQUAL Model ...................................................................................................... 15

2.3. Research model: CSI Model of General Motors Vietnam .............................................. 15

CHAPTER 3. METHODOLOGY .................................................................................................. 20

3.1 Introduction .......................................................................................................................... 20

3.2 Research design .................................................................................................................... 20

3.2.1 Inductive and deductive approach ................................................................................. 20

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3.2.2 Quantitative and Qualitative approach .......................................................................... 20

3.3. Questionnaire design ........................................................................................................... 21

3.4 Sampling ............................................................................................................................... 24

3.5 Pilot Study ............................................................................................................................ 25

3.6. Data analysis ....................................................................................................................... 26

3.6.1. Reliability analysis ....................................................................................................... 26

3.6.2. Exploratory factor analysis ........................................................................................... 26

3.6.3. Linear regression .......................................................................................................... 27

Chapter 4 Results analysis .............................................................................................................. 28

4.1. Respondents profile ............................................................................................................. 28

4.2 Reliability analysis ............................................................................................................. 30

4.3 Regression analysis .............................................................................................................. 33

4.3.1 Sale experience and customer satisfaction .................................................................... 33

4.3.2 Service experience and customer satisfaction ............................................................... 35

Chapter 5 Conclusion and recommendations ................................................................................. 39

5.1. Discussion ........................................................................................................................... 39

5.2 Conclusion ............................................................................................................................ 40

5.3. Recommendation ................................................................................................................. 41

5.3.1. For Purchase and Delivery Satisfaction (PDS) ............................................................ 41

5.3.2. For service satisfaction ................................................................................................. 43

REFERENCES ............................................................................................................................... 45

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List of Tables

Table 1.1 List of Chevrolet authorized dealers in Vietnam ............................................................ 5

Table 2.1 Different ways to call the sales experience and service experience .............................. 14

Table 2.2 Description of Variable ................................................................................................. 18

Table 2.3: Description of Hypothesis ............................................................................................ 19

Table 3.1 The dealerships sample ................................................................................................. 25

Table 4.1: Respondent profile ....................................................................................................... 29

Table 4.2 Factor Analysis of Sale Experience .............................................................................. 31

Table 4.3 Factor Analysis of Service Experience ......................................................................... 32

Table 4. 5 The Regressions for relationship among sub-factors of sale experience and customer

satisfaction (H1a, H1b, H1c) ......................................................................................................... 33

Table 4.6 The Regressions for relationship of sale experience and customer satisfaction (H1) ... 34

Table 4. 7 The Regressions for relationship among sub-factors of sale experience and customer

satisfaction (H1a, H1b, H1c) ......................................................................................................... 35

Table 4.8 The Regressions for relationship of service experience and customer satisfaction (H2)

....................................................................................................................................................... 36

Table 4.9: Hypotheses results ........................................................................................................ 37

Table 4.10 the order important factor that most important for customer satisfaction ................... 38

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List of Figures

Figure 1.1 Development process ..................................................................................................... 3

Figure 2.2 Customer satisfactions (Source at http://autos.jdpower.com) ..................................... 12

Figure 2.3. American Customer Satisfaction Index (ACSI) (4-p.2) ............................................. 15

Figure 2.4 CSI Model of General Motors Vietnam ...................................................................... 17

Figure 2.5 Two separate parts of CSI in GMV .............................................................................. 17

Figure 2.6 Research Frame Work ................................................................................................. 18

1

CHAPTER 1 INTRODUCTION

1.1 Background of study

In the context of competition, the wisdom of every business is to simply create customer

satisfaction higher than competitors. This will harmonize interests of customers and profit of the

business. Anyway satisfaction, customer satisfaction has an impact on their loyalty to the brand

manufacturer. However, satisfaction is not sustainable and it is difficult to quantify. Deciding

factor really customer loyalty is valuable for customers. Create customer value satisfaction-level

of customer satisfaction. Enterprises need to measure the satisfaction level of its customers and of

direct competitors.

With the perspective of marketing, customer satisfaction is usually considered as the main

determinant of customer loyalty. (Thorsten and Alexander, 1997). For more than four decades,

customer satisfaction has been a popular subject in the field of marketing research. Since 1970s,

there are several conferences have been discussed about customer satisfaction for example Hunt,

(1997). In 1981 the journal of customer satisfaction started publishing the dissatisfaction and

complaining behavior. There are many articles have been published for four decades (Perkins,

1990; Wilkie, 1990).

To improve the company competitive advantage, all company have their objective is to satisfy

needs of the customer, because the customer is revenue and profitability of the company. When

customers are satisfied with the goods or services of the company, then they will continue to

purchase. Moreover, when they are satisfied they tend to speak well of the company's services to

other customers. The consumer satisfaction for the emotional service for company business

services based on the individual contact or dealings with that company (Bitner & Hubbert, 1994).

Satisfaction is the degree of a state of feeling people began comparing the results obtained with

the products and services expected of it (Philip Kotler, 2001). Expectations are viewed as desires

or expectations of the people. It stems from personal needs, previous experience and external

information, such as advertising, communication, word of mouth from friends, family ... in which

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individual needs are formed from elements recognized understanding human desire to satisfy the

needs something like communication, eating, resting

Today, much more than ever before, the automotive industry is experiencing major changes.

Emerging technologies and new entrants in the market are challenging traditional concepts and

the "way we do things". Customers are benefiting from these changes and will continue to

demand more

1.2 Overview of General Motors Viet Nam

1.2.1 General presentation

Company Name : General Motors Vietnam Ltd.

• Location : Tu Hiep Commune, Thanh District, Hanoi, Vietnam

• Established : Dec 14, 1993. Business Operations : Since April 1995

• Ownership : 100% Foreign Owned Enterprise (Apr 24, 2000)

• Shareholder : GM Korea Company since Oct 17, 2002

• Factory Size : Land- 47185 sq mtr

Building- 26532 sq mtr

• Plant Type : CKD Operation. Manual.

• Current Products : 7 Products

• Employees : ~500

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Figure 1.1 Development process

The company was officially established in December 1993 as a joint venture between South

Korea and the 7983 Daewoo Motor Corporation Mechanic Business Alliance has been owned by

the Vietnam Ministry of Defense. In April 2000, the company has become an enterprise with

100% foreign investment after Daewoo Motor bought shares of GM VIDAMCO Vietnam.

As a leading automobile brands in the world, General Motors is committed to a long-term future

in Vietnam and one of the top goal is Customer Satisfaction and it is the foundation to “Create

Customer for life”

In modern times, the purchasing of a car extends beyond a normal transaction- it is increasingly

being seen as a complete “service experience". Research on the subject clearly indicates that the

quality of service has profound impact on vehicle sales and market share.

The key to our approach is exceeding Customer expectations. When a client needs information

or support, should be viewed as an opportunity to express respect and desire to help. This

approach goes a long way in building good relationships with customers and creates a positive

impression in the minds of customers. It is these impressions that makes customers loyal

ambassador of our products, and generate positive word of mouth. This is the most persuasive

form of advertising we could ever find

Dec. 1993

Daewoo Motor established a JV with Gov’t partner (VIDAMCO)

Jan. 1995

Commercial operations

Apr. 2000

Oct 2002

Sep 2011

License of 100% foreign invested enterprise

A member of GM Daewoo

Change to GM Vietnam

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In October 2002, the General Motors (U.S.) decided to buy Daewoo Motor Company - South

Korea and introduced to market a new company called GM Daewoo Auto & Technology

(GMDAT). GM Daewoo is a company built on the combination of the strength of the leading

automobile manufacturers in the world with global production networks - General Motors with

the best resources of the former Daewoo Motor. And so, VIDAMCO (Viet Nam Daewoo

Company) became a member of GMDAT and within the global production network of General

Motors.

On November 11th, 2011, Vidamco officially renamed General Motors Vietnam, a member of the

GM Global. The products of General Motors Viet Nam are manufactured according to the

standards of the global Chevrolet brand reputation in the world. This transformation has special

importance to serve Vietnamese customers better with quality products of the world's No. 1

Automaker.

From here, customer satisfaction index is considered as one of the most important KPI (Key

Performance Index) in the development of General Motors in Vietnam market.

As the results of Customer Service Index in 2013 with the automobile brands in Vietnam as

Honda, Kia, Toyota, Hyundai, Ford, Mitsubishi & Chevrolet by JP Power.

(J.D. Power and Associates is a U.S. –based, the information service global marketing company

established in 1968 by James David Power III. The company conducted a survey of customer

satisfaction, product quality, and buyer behavior for industries ranging from cars to marketing

and advertising company. The company is known for the study of customer satisfaction for the

quality of their new vehicles and long-term reliability)

Chevrolet's brand ranking at the bottom of the Customer Service Index for 2 factors is SSI (Sales

Satisfaction Index) and CSI (Customer Satisfaction Index). So the only CSI survey and provide

an action plan is the urgent task of GMV in the period 2014 – 2015.

1.2.2 Authorized Dealerships

GMV does not retail directly to customers that wholesales to Chevrolet authorized dealers in

Vietnam. The Chevrolet dealerships will retail to end user customers. Chevrolet Dealer Network

stretches from north of Vietnam to South of Vietnam.

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Table 1.1 List of Chevrolet authorized dealers in Vietnam

No. Dealer Name Abbreviation Area Dealer

Code Established

1 Chevrolet An Hung AHC Ha Noi

VD1001 1999

2 Chevrolet Thang Long TLC VD1004 2012

3 Chevrolet Nam Dinh NDC VD1101 1996

4 Chevrolet Thai Nguyen TNC Northern VD1104 1999

5 Chevrolet Duong Tuan DTC Province VD1105 2004

6 Chevrolet Hai Phong HPC VD1107 2012

7 Chevrolet Cong Thanh CTC VD2101 1997

8 Chevrolet Sao Mai Anh SMAC VD2102 1998

9 Chevrolet Nghe An NAC Centre VD2103 2009

10 Chevrolet Da Nang DNC Province VD2104 2010

11 Chevrolet Quang Tri QTC VD2105 2012

12 Chevrolet Gia Lai GLC VD2106 2012

13 Chevrolet Thanh Hóa CTH VD2107 2012

14 Chevrolet Dong Do Thanh DDTC VD3001 2003

15 Chevrolet An Thai ATC Ho Chi VD3002 2006

16 Chevrolet Viet Long VLC Minh City VD3003 2011

17 Chevrolet Sai Gon SGC VD3004 2012

18 Chevrolet Bien Hoa BHC Southern VD3101 2003

19 Chevrolet Nam Thai NTC Province VD3103 2007

20 Chevrolet Nam Hai NHC VD3104 2007

1.3 Objectives and research questions

Aligning Customer Satisfaction with strategy is a necessity for Chevrolet Dealership in Viet Nam

as well as for General Motors Viet Nam to positively contribute to their operational results and

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gain profits. Making Customer Satisfaction a business case also creates economic benefits for

Chevrolet Dealerships in Viet Nam. However, Most of Chevrolet Dealership experience strong

constraints to adopt Customer Satisfaction comprehensively. To gain economic benefits from

customer satisfaction, Dealerships need to be able to assess the factors of possible

implementation. Understanding customer as a vital factor for a company’s economic success and

the adoption of customer satisfaction as a pressing reality, the research therefore focuses in this

Respect on the following objectives:

To determine the level of customer satisfaction of Sales experience and Services

experience at the Chevrolet authorized dealerships in Vietnam.

To collect customers feedbacks toward Sales & Service experience

To make action plan to improve customer satisfaction in Sales & Service experience.

In order to lead eventually to these objectives the research intends to answer the following

questions:

How the sales experience affect customers satisfaction in Chevrolet authorized

dealerships in Viet Nam?

How the Service experience affect customers satisfaction in Chevrolet authorized

dealerships in Viet Nam?

1.4 Scope of the study

The study focus on the customer satisfaction of Sales experience and Services experience at the

Chevrolet authorized dealerships in Vietnam. The research will take place in 20 Chevrolet

Dealerships in Viet Nam.

The data collection for the research is conducted in around 200 sales customer and 200 service

customers from 20 Chevrolet authorized dealerships in Viet Nam. The contact to these customers

is enabled through the General Motors Viet Nam (GMV) and facilitated by the 20 Dealerships

‘Customer Relation Center (DCRC).

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CHAPTER 2 LITTERATURE REVIEW

2.1 Fundamental concepts

2.1.1 Services

As definition of Philip Kotler (2011), Services are the activities and results that one party (the

seller) can provide the other party (the buyer) and mostly non-intangible property. Service may

be tied or not tied to a physical product. In fact, the product of a business sale can range from a

mere commodity to a pure service. One particular item is serviced or items plus a variety of

services to increase their ability to attract buyers, especially for tangible products manufacturing

technology and use complex. For example, car manufacturers sell cars accompanying warranty

service, only manual and maintenance, delivery according to customer purchase.

These services may be provided by the manufacturer or through an intermediary hire specialized

business services. Some items include a main service together with the items and service smaller.

For example, air travelers are buying a transportation service. But the trip also involves a number

of specific items, such as food, drinks and an airline magazine.

Following the same item may be a pure service. Thus the product of a business may be specific

items or services, which may include additional services. Marketers must make a lot of decisions

about customer service: The service should include the coordination of services (services-mix) to

the client? Services will at any level? Services will be provided in the form of what? The service

provided by whom?

Distinctive Characteristics of Services

INTANGIBILITY Commodities shape, size, color and even taste. Customers can review, assess

whether it is appropriate for my needs. In contrast, service invisible nature, making the senses of

customers not aware before purchasing service. This is a major difficulty when selling a service

compared with when selling tangible goods, as customers try hard to service before purchasing,

quality feel hard, hard choices service, service vendors is difficult ad about service. Thus, service

more difficult to sell goods.

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To sell service, sellers need advice, clear introduction to the customer in terms of quality, price,

and benefits, utility ... which brings service. Service seller has a very important role. They are

now on behalf of the client reception, customer service. Therefore, businesses need to recruit

sales team has all the qualities required, full training their knowledge and skills, and the proper

management policies to stimulate their passionate work for customer service.

To provide customers with sufficient information to support the decision process buyers,

businesses need to provide them with full information needed by many different means: through

providing direct sales team, care customers, through customer conference, free telephone, and

indirectly through publications, advertising, via the company's Web site, by mail, through the

window comments, subscribers.

INSEPARABILITY Goods are produced in a centralized location, and then transported to the

place of need. When off the production line are finished goods. Therefore, manufacturers can

achieve economies of scale by concentrating production, mass, and quality management focus.

Manufacturers can also produce whenever convenient, and then stored in warehouses and sell

them when the need arises. Therefore, they are easy to implement demand-supply balance. But

the process of providing service and service occur simultaneously. Service providers and

customers have contact with each other to provide the consumer and at the place and time

suitable for both parties. For a number of services, customers must be present during the delivery

process

VARIABILITY Service may not be providing a series of focus as commodity production.

Therefore, suppliers are difficult to control the quality according to a uniform standard. On the

other hand, the customer's perception of service quality strongly influenced by the skills and

attitudes of the service provided. Health, the enthusiasm of service staff offers morning and

afternoon may vary. Therefore, it is difficult to achieve uniform service quality right in a day.

Service serve more people, the more difficult to ensure uniformity in quality.

To overcome this drawback, enterprises can implement mechanization, automation service

provided in stages, at the same time human resource management policies specific to the service

staff provided. However, exposure to service staff provides courteous, affable as well as a

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compelling factor customers. On the other hand, does not have any service can also automate the

process of providing? (1-p.359)

PERISHABILITY Services cannot be stored, so the possibility being lost can be a problem

when demand fluctuations. The public transport company owned equipment to more demand

during peak hours than if demand even during the day. Some doctors charge patients for

appointments ignored because the value of services (availability of doctors) only exist at the time

of appointment (1-p.361)

2.1.2 Service Quality

One of the basic characteristics of service quality is difficult to measure, difficult to determine the

quality standards; it depends on the human factor mainly. Quality of service is the first human

quality. Products and services are intangible; quality is defined by customers, not by the supplier.

Assess the quality of customer service provided by staff evaluation of the company and through

his subjective feelings. For products and services in general and tourism in particular, we can

measure the quality of services by the individual characteristics of the product based on the

model of service quality Parasuraman (1985) and Philip Kotler (2011, p.373) (figure 2.1). 5

models offer distance service quality:

1) Gap between consumer expectation and management perception—: occurs when there

is a difference between customer expectations of service quality and administrators feel

about the customer's expectations. Basic points of this difference is due to the service

company not understanding how all these characteristics make the quality of their services

and how to transfer them to customers to satisfy their needs..

2) Gap between management perception and service-quality specification— occurs when

services firms have difficulty in changing their perceptions of customer expectations of

service characteristics. The main cause of this problem is the ability of professional staff

services.

3) Gap between service-quality specifications and service delivery—occurs when

employees transfer services are not services for customers according to the defined

criteria. During the service, the staffs have direct contact with clients and play an

10

important role in the process of creating quality. But not always and not all staff were able

to complete tasks according to the criteria set out.

4) Gap between service delivery and external communications— advertising media and

also information on the impact of customer expectations of service quality. The program

promised in the advertising, promotion may increase expectations of customers but also

will reduce the quality that customers feel when they do not comply with what was

promised.

5) Gap between perceived service and expected service—occurs when there is a difference

between the quality expected by our customers and the quality they perceive. The quality

of service depends on the distance Thursday, when customers see no difference between

the quality they expect and the quality they perceive as a consumer service, the quality of

service view is perfect

Figure 2.1 Service quality Model (Philip Kotler 2011, p.373)

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Parasuraman (1985) states that service quality is a function of the distance this distance depends

on the previous distance, ie the distance of 1, 2, 3, 4. Therefore to shorten the gap 5th or increase

service quality, service managers attempt to shorten this gap.

2.1.3 Customer Satisfaction

There are many different definitions of customer satisfaction as well as plenty of debate about

this definition. Many studies show that satisfaction is the difference between customer

expectations and perceived reality received. According to Fornell (1995), satisfaction or

disappointment after consumption, defined as the response of customers to feel judged by the

difference between consumer expectations prior to the realistic feel of consumer products after it.

Hoyer and MacInnis (2001) suggests that satisfaction may be associated with feelings of

acceptance, happiness, help, excitement, joy.

According Hansemark and Albinsson (2004), "Customer satisfaction is a general attitude of

customers for a service provider, or an emotional reaction to the difference between what

customers anticipate before and what they receive, to meet some of the needs, goals or desires.

According to Zeithaml & Bitner (2000), customer satisfaction is the customer's evaluation of a

product or service has met the needs and expectations of them.

Kotler (2000), defines "satisfaction as a sense of satisfaction or disappointment with the results of

a comparison of the actual receiving of the product (or outcome) in relation to the expectations

their waiting ".

Customer satisfaction is the customer base some of their insights for a product or service that

form the assessment or subjective judgments. It is a form of psychological feeling after the

customer's needs are met. Customer satisfaction is formed on the basis of experience,

accumulated especially when shopping and using the product or service. After purchasing and

using the product the customer will have a comparison between reality and expectations, which

assess satisfaction or dissatisfaction.

Thus, we can understand that feeling comfortable or can arise from disappointed buyers compare

the actual benefits of the product and the customer's expectations ho.Viec satisfied or not after

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buyers depend on their comparison between the actual benefits of the product and their

expectations before purchase. The product concept is understood here not only as an ordinary

physical objects that include both services.

This definition clearly shows that satisfaction is a comparison between the perceived benefits and

actual expectations. If benefits are not as realistic expectations, customers will be disappointed.

And if real benefits to meet the expectations set out satisfied customers. If the actual benefits of

higher customer expectations will create higher satisfaction phenomenon is satisfied or exceeded

expectations.

.

Figure 2.2 Customer satisfactions (Source at http://autos.jdpower.com)

2.1.4 The Relationship among Service Quality and Customer

Satisfaction

According to the American Association of Quality (ASQ), the whole quality of features and

characteristics that a product or provide services to meet the demands posed by customers.

Parasuraman et al (1985) suggested that service quality is the gap between customer expectations

and their perceptions when used via the service. In view of Philip Kotler et al (2005), service

quality is defined as the ability of a service including overall durability, reliability, accuracy, ease

of operation, ease of repair and other valuable properties to perform its function. Also, due to

13

different cultural environment, consumers in each country may have different perceptions about

the quality of different services in each different type of service (Malhotra et al, 2005).

The diversity of models of service quality reflects different approaches to assessing the quality of

service. The proposed mostly towards the common goal of helping the administrators a

comprehensive view of service quality more.

However, service marketers realize that to build successful service quality as a competitive

advantage, they need to first determine consumer perceptions of service quality including factors.

Due to different cultural environment, consumers in each country may have different perceptions

about the quality of different services in each different type of service (Malhotra & CTG, 2005).

In addition, most of the researches on service quality were conducted in developed countries

development (Herbig & Genestre, 1996).

2.1.5 Sales Experience & Service Experience

Customer Service Index Study (CSI) : CSI businesses should consider as an annual audit form to

intangible assets as reputation, brand, customer feelings for her, the CSI of information should be

continuous updates to the system of enterprise information as a basis for strategic planning for

the future. ". (Follow http://autos.jdpower.com)

Sales Satisfaction Index Study (SSI) – Testing the ability of agents to manage the sales process.

From product presentation, negotiation, pricing, and vehicle purchase and delivery process to

finance and insurance. The manufacturers have made great strides in improving vehicle quality

over the past decade. So, the sales process has become increasingly important factors in

determining overall satisfaction. SSI is a study on the label, which means that performance is

reported in the label (eg, Ford, Mitsubishi, etc.), but not at the level of the model (eg, Mustang,

Eclipse, etc. .) (Follow http://autos.jdpower.com)

Sales experience: the entire purchasing process from the customer to be welcomed to the

completion of the delivery.

Service experience: the entire service process from placing repair service, warranty until

complete delivery.

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There are several different ways to call the sales experience and service experience as following:

Table 2.1 Different ways to call the sales experience and service experience

No Content JP Power Ford Honda

1 Sales experience SSI: Sales

Satisfaction Index

CVP- Sales:

Customer View

point – Sales

SSI: Sales

Satisfaction

Index

2 Service experience CSI: Customer

Service Index

CVP- Service:

Customer View

point – Services

SSI: Sales

Satisfaction

Index

2.2 Model of satisfaction customer

2.2.1 American Customer Satisfaction Index (ACSI)

Only fear of satisfied customers including the factors (variables), each factor is composed of

many specific factors (indicators, items) characteristics of the product or service. Customer

satisfaction (customer satisfaction) is defined as a comprehensive review of the use of a service

or after sales activities of the business and this is the core of CSI model. Around this variable is a

system of cause and effect relationships (cause and effect) comes from the variable initialization

as the expectations (expectations) client, image (image) and business products, quality perceived

quality (perceived quality) and perceived value (perceived quality) of a product or service

attached to the outcome variables of satisfaction as loyalty (customer loyalty) and customer

complaint (customer complaints). (4 – p.2)

15

Figure 2.3. American Customer Satisfaction Index (ACSI) (4-p.2)

2.2.2 SERVQUAL Model

Parasuraman is a pioneer in service quality research (1985). The success of research to create

breakthrough means the business has been the result of their service quality through the study

evaluating customer - service users. SERVQUAL model is decoupled from the service and

quality; many researchers are pretty comprehensive assessment. Then SERVQUAL model

continue to improve through the focus on the concept of "quality perception" of consumers. The

perceived quality of the customer is assessment on quality of service.

1) Reliability: The ability to provide services on time and fit right the first time

2) Responsiveness: Desire and readiness of personnel and services to provide services to

customers

3) Competence: Professional qualifications to perform the services. The ability of the service

will be shown when the staff contact customer service directly implemented, and research

capabilities to capture the necessary information related to customer service.

4) Access: Involves making it easier for customers to access services such as shortening the

waiting time of customers, service locations and opening hours for customer convenience

5) Courtesy: Services affable, respectful and friendly to customer friendly

6) Communication: Related to communication, inform customers in a language they

(customers) understand and listen easily and issues related to their service as explanation,

costs, settling complaints and ask questions.

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7) Credibility: The ability to create customer confidence, make customers trust the company.

This ability is reflected in its brand and reputation of the company, the manner of service

personnel to communicate directly with customers.

8) Security: Related to the ability to ensure the safety of customers, expressed through the

physical safety, and security of financial information.

9) Understanding Customer: Ability to understand and grasp the needs of customers through

an understanding of customer requirements, personal interested and recognize their

regular customers

10) Tangibles: Expressed through looks, outfits of the service personnel, support services

equipment

2.3 Research model CSI Model of General Motors Vietnam

General Motors Viet Nam (GMV) assembly and import Chevrolet vehicle. As a member of GM

Global therefore, GMV’s operation and Dealerships in Viet Nam must comply with the standards

of the GM global and CIS is no exception. GMV do not retail directly vehicles to customers.

GMV implement the wholesales to authorized dealerships then dealership retail to customers.

GMV Authorized dealers have responsible to perform 02 main tasks as following:

1. Selling Branch new Chevrolet vehicles to Customer (Sales)

2. Warranty and repair Chevrolet vehicles (Service)

17

Figure 2.4 CSI Model of General Motors Vietnam

CSI stands for Customer Satisfaction Information. It is a survey process that evaluates dealer

performance to the GM Retail Standards. The primary objective of the CSI process is to measure

the customer's experience with the dealership. The dealers should use CSI to monitor

performance over time and gauge their relative dealer performance to the zone/region/brand as

well as identify improvement opportunities related to the internal retail processes, procedures,

and personnel training

CSI is divided into two separate parts:

i. Purchase and Delivery Satisfaction (PDS)

ii. Service Satisfaction Survey

(SSS)

Figure 2.5 Two separate parts of CSI in GMV

18

From the literature survey and the situation of General Motors Vietnam this thesis propose the

research frame work as figure 2.6, factor and sub-factors are showed in table 2.2 and the

hypothesis shows in table 2.3

Figure 2.6 Research Frame Work

Table 2.2 Description of Variable

Variable Sub-variable

Sales Experience

Chevrolel and facilities Dealerships

Sales consultant

Financial and delivery process

Services Experience

Chevrolet and facilities service center

Service advisor

Work carried out and experience

Customer Satisfaction

Sales Experience

Services Experience

Customer Satisfaction

19

Table 2.3: Description of Hypothesis

Hypothesis Description

H1 Sales Experience has a significant impact on customer satisfaction

H1a Chevrolel and facilities dealerships and dealership has a significant impact on

customer satisfaction

H1b Sales consultant has a significant impact on customer satisfaction

H1c Financial and delivery process has a significant impact on customer satisfaction

H2 Services Experience has a significant impact on customer satisfaction

H2a Chevrolet and facilities service center has a significant impact on customer

satisfaction

H2b Service advisor has a significant impact on customer satisfaction

H2c Work carried out and experience has a significant impact on customer satisfaction

20

CHAPTER 3 METHODOLOGY

3.1 Introduction

The purpose of this chapter is to provide clarification and justification for the research methods

used in the study. The chapter begins with the research design, then the research objective,

followed by questions, and the research strategies. In addition, the chapter explains the

questionnaire, tools used to collect the data and how the sample was analyzed. Finally the

validity and reliability of the research is also explained.

3.2 Research design

3.2.1 Inductive and deductive approach

The deductive approach deals with the theory of the research. The hypothesis is established, a

series of questions are asked which is followed by the design of a strategy that aims to answer

and or test the hypothesis. Thus a theory is formed.

The inductive approach on the other hand, begins by gathering and analyzing data, followed by

developing questions or hypothesis by expressing a causal relationship between two specified

variables. The hypothesis or questions are tested which is then modified according to the latest

finding.

3.2.2 Quantitative and Qualitative approach

The research problem as well as the information that has been collected determines the choice of

methodology that is being used. It could either be qualitative or quantitative. Creswell (2002)

states, “A quantitative approach is one in which the investigator primarily uses post positive

claims for developing knowledge (i.e., cause and effect thinking, reduction of specific

variables and questions, use of measurement and observation of the test questions), employs

21

strategies of inquiry such as experiments and surveys, and collects data on predetermined

instruments that yield statistical data.”

The mixed method approach is another that can be employed. Here the researcher bases claims

on problems and consequences whilst data is collected simultaneously or in a way that it follows

each other logically. This should help to understand the research problem better. The qualitative

approach is also used where numeric data is accumulated alongside text-based data. The final

product will be a data base that has both qualitative as well as quantitative data.

The purpose of this research is mainly descriptive and explanatory. It is descriptive since data has

been collected from the questionnaire that was distributed. It is also explanatory because it

explains the relationship between Sales Experience, Services Experience and satisfaction in

GMV. Respondents in this study are customers who has completed the new vehicles sales

experience at Chevrolet authorized dealerships in Viet Nam and customers who has completed

the warranty or repair experience at Chevrolet authorized dealerships in Viet Nam

3.3 Questionnaire design

Survey questionnaires related to the following categories below:

Sales Experience

Chevrolel dealerships and facilities

Q1: Based on your overall purchase and delivery experience, how satisfied were you with your

Chevrolet Dealership?

Q2: Overall, how satisfied were you with the Cleanliness and Appearance of the Showroom at

your Chevrolet Showroom?

Q3: How satisfied were you with the Fulfillment of all commitments made during the purchase

negotiation?

Sales consultant

22

Q4: How satisfied were you with Sales consultant's courtesy and willingness to take the time

necessary to understand your requirements?

Q5: How satisfied were you with your Sales Consultant’s knowledge of Chevroelt vehicles?

Q6: How satisfied were you with Test Drive of the vehicle

Q7: Overall, how satisfied were you with your Sales Consultant? (scale)

Financial and delivery process

Q8: Overall, how satisfied were you with the explanation of the Financial Process and the

handling of the Paperwork.

Q9: At the time of vehicle delivery, how satisfied were you with the cleanliness and preparation

of your new vehicle?

Q10: At the time of vehicle delivery, how satisfied were you with the explanation of the Owner’s

manual

Q 11: How satisfied were you with the explanation of the Warranty & Maintenance schedule

Q12 How satisfied were you with the explanation of the Vehicle Features & Operations

Q13: How satisfied were you with the follow up call that you received after?

Q 14: Overall how satisfied were you with the Delivery experience?

Services Experience

Chevrolet and facilities Service Centre and

Q 15: Based on your last visit, how satisfied are you with the overall services provided by

Chevrolet Service Centre?

Q16: Overall, how satisfied were you with the Cleanliness and Appearance of the Service

Department at your Chevrolet Service Centre?

23

Service advisor

Q 17: How satisfied were you that you were treated in a courteous, friendly and professional

manner?

Q 18 How satisfied were you with Service Advisor’s knowledge and competence levels?

Q 19: How satisfied were you with Service Advisor’s willingness to take the time necessary to

thoroughly understand your requirements?

Q 20: how satisfied were you with your Service Advisor?

Work carried out and experience

Q 21: How satisfied were you with an Estimate of costs before any work was carried out?

Q 22: How satisfied were you with all of your service concerns?

Q 23: How satisfied were you on time delivered?

Q 24: Overall how satisfied are you with the service/ work carried out on your Chevrolet

Vehicle?

Q25: How satisfied were you with the Explanation of all work performed on the vehicle?

Q26: How satisfied were you with the condition in which your vehicle was returned?

Q 27: How satisfied were you with the follow up call that you?

Q 28: How satisfied are you with the overall experience of collecting your vehicle after the

completion of service/ work?

Customer satisfaction

Q 29. How satisfied are you with the purchase you made (of a product or service)

Q 30. How satisfied are you with the service you received?

24

Q 31. How satisfied are you with our company overall?

3.4 Sampling

Once the research strategy has been determined, the strategy for collecting and analyzing data

needs to be established. By using a non-probability sampling technique, time and effort in

collecting the required data is saved. By using this technique unnecessary data is eliminated and

the accuracy of information that is collected is improved to a great extent.

In the list of customers in April 2014, select 200 samples. There are 10 samples per 1 dealerships.

The dealerships are divided into three areas as follows:

25

Table 3.1 The dealerships sample

No. Dealer Name Abbreviation Area

1 Chevrolet An Hung AHC

Northern

Provinces

2 Chevrolet Thang Long TLC

3 Chevrolet Nam Dinh NDC

4 Chevrolet Thai Nguyen TNC

5 Chevrolet Duong Tuan DTC

6 Chevrolet Hai Phong HPC

7 Chevrolet Cong Thanh CTC

8 Chevrolet Sao Mai Anh SMAC

9 Chevrolet Nghe An NAC Centre

10 Chevrolet Da Nang DNC Provinces

11 Chevrolet Quang Tri QTC

12 Chevrolet Gia Lai GLC

13 Chevrolet Thanh Hóa CTH

14 Chevrolet Dong Do Thanh DDTC

Southern

Provinces

15 Chevrolet An Thai ATC

16 Chevrolet Viet Long VLC

17 Chevrolet Sai Gon SGC

18 Chevrolet Bien Hoa BHC

19 Chevrolet Nam Thai NTC

20 Chevrolet Nam Hai NHC

3.5 Pilot Study

In this research, the pilot study for the first version of the questionnaire was conducted in May,

2014. Questions were sent to 30 students in the IMBA program to make check how they

understand the question. Then the question will be modified to have a final and ready for data

collection.

26

3.6 Data analysis

The data analysis will be conducted using SPSS v. 20, the Software Package for Social Sciences,

where the findings, will be explained by means of different statistical analyses and presented in

various graphical and tabular forms in Chapter 4 to support the analysis and interpretation.

3.6.1 Reliability analysis

As recommended by Cronbach (1951), the reliability of the scale can be checked by using alpha.

As Cronbach's alpha is illustrated through the following equation

Equation 1: Cronbach’s alpha calculation

21

2

11 X

K

iYi

K

K

(Source: Cronbach, 1951)

Cronbach's alpha values ranging from 0 to 1 and it provides information about the positive

correlation between the reliability of the survey scale and Cronbach's alpha values. Higher alpha

leads to high reliability. According to Hair et al. (1998), if the Cronbach's alpha value of about

0.6-0.7, the acceptance is low. If Cronbach’s alphas is higher than 0.7, it can be said that the

items are homogeneous.

3.6.2 Exploratory factor analysis

The scale satisfactory reliability will be used factor analysis to a set of reduced multivariate

observations into a variable (called factors) less than; factors will be shortened significantly better

but still contains most of the information content of observed variables initial set (Hair et al.,

1998). Method of factor analysis was used to explore the EFA testing the concept of the value

scale.

- Testing Bartlett: the observed variables are correlated with each other in the overall

- Review of KMO: the KMO factor analysis is appropriate for the data; ≤ 0.5, the KMO opposite

factor analysis likely not compatible with the data

27

- To analyze the EFA has practical value: the type of conduct observed variable coefficient load

factor <0.5

- Review eigenvalues parameters (representing the portion of variation explained by each factor)

value> 1

Considering the total variance extracted values (≥ 50% is required) that the extracted factors

explain the variation% of the observed variables

Implementing and evaluation criteria in factor analysis EFA discover:

- Criteria for factor load factor is greater than or equal to 0.5 to ensure the practical significance

of EFA. The value of the coefficient of load factor: greater than 0.3 is to achieve a minimum;

greater than 0.4 is important; greater than 0.5 are significant practical. Selection criteria for the

load factor value factors: the sample size of at least 350, you can choose load factor coefficients

greater than 0.3; if the sample size of 100 is chosen load factor coefficient greater than 0.55; if

the sample size, the load factor of about 50 factors that must be greater than 0.75 (Hair, et al,

2008)

3.6.3 Linear regression

Regression analysis is to find dependencies of a variable, called the dependent variable to one or

more other variables, called the independent variable for the purpose of estimating or predicting

the expected value of the dependent variable when know the values of the independent variables

Some other names of the dependent variable and the following independent variables:

Dependent variable: the variable is explained, forecasting variable, the regression variables,

response variables, endogenous variables.

Independent variable: Explanatory variables, predictor variables, regressors, variables or factors

controlling variables, exogenous variables.. A multiple regression equation is stated as below:

28

Chapter 4 RESULTS ANALYSIS

4.1 Respondents profile

From a total of 200 questionnaires were sent out, of which 185 samples were returned. After the

refusal strictly invalid, had a number of efforts 183 were considered valid and used for analysis

by SPSS software, representing 91.5% response rate.

Concerning demographic profile, based on surveys, interviews completed and valid

questionnaires included Male (50.3%), female (49.7%). In the age of the respondents, 11.5% of

respondents under 30 years old, since from 31 to 40 is 38.8% of respondents, the age of 41-50

years old and more than 51 years old count for 36.1% and 13.7%

From the aspect of working area, there are equally among three group of this study (agriculture :

32.8%; industry: 33.6 service: 30.6), Cross sectional research was also deployed in this research.

Among respondents, 48.1% are living in urban area and 51.9% are living in rural area (table 4.1).

Regarding to the household income per month of respondents, there are only 6.0% is less than

VND 10 millions, from 11-20 millions count for 79.8%. There are 12.0% of respondents who get

family income from 21-30 millions. The respondents who have household income above 30

millions of this study are 2.2%. This result shows the high living standards of respondent with

almost respondent get from 5-10 millions per month.

29

Table 4.1: Respondent profile

Gender Frequency Percent

Male 92 50.3

Female 91 49.7

Total 183 100.0

Age Frequency Percent

Less than 30 21 11.5

31 to 40 71 38.8

41 to 50 66 36.1

More than 51 25 13.7

Total 183 100.0

Working area Frequency Percent

Agriculture 60 32.8

Industry 67 36.6

Service 56 30.6

Total 183 100.0

Living area Frequency Percent

Urban 88 48.1

Rural 95 51.9

Total 183 100.0

Income (VND)/month Frequency Percent

Below 10 million 11 6.0

11-20 million 146 79.8

21-30 million 22 12.0

Above 30 million 4 2.2

Total 183 100.0

30

4.2 Reliability analysis

In this study, the method of principle component analysis is used to explore the factor. Three

main factors with 31 items were loaded into the system. The Sale Experience element were

analysis, the results show the value of Kaiser-Meyer-Olkin is 0.914, and the Bartlett test of

sphericity is statistically significant at .000. The private value elements greater than or equal to

1.0 and the processing load factor greater than 0.5 have been reported. . Presence of the no

loading factor is less than 0.5. Analysis of factors brought three factors. The analysis results show

that the size of 3 Sale Experience factors, representing 71.058% of the total variance. The

organizational commitment factor was labeled as "Chevrolel agents and institutions" (54.128%),

"sales consultant" (9,614%) and "financial processes and delivery" (7,316 %). To test the

reliability and internal consistency of each factor, Cronbach's alpha of each is determined. The

results showed that the alpha coefficient of 0.886. in "Chevrolel and dealer base," 0.844 in "sales

consultant" and. 870 in "financial processes and distribution." (Table 4.2)

Factors Related to Service Experience shows that 70.235% result of two factors variance

explained with a particular value that is greater than 1.0 and the value of Kaiser-Meyer-Olkin is

.920, and the test Bartlett's sphericity is statistically significant at the .000 level. Presence of the

no loading factor is less than 0.5. Excess varimax-rotated model implies that the first element of

interest " Chevrolet service center" (2 items: 55,036% of variance and Cronbach α = 0.730);

second factor involves "work done and experience" (4 items: 7.016% variance and Cronbach α =

.. 919). The third factor is "the realization and experience" (8 items: 7.016% variance and

Cronbach α = 0.919). The arithmetic means of three multi-item factors were used to build the

structure. (Table 4.3).

For customer satisfaction, the results indicate that 72.628% of variance explained with a

particular value that is greater than 1.0 and the value of Kaiser-Meyer-Olkin is .715, and the

Bartlett test of sphericity is there are statistically significant at the .000 level. Presence of the no

loading factor is less than 0.5. To test the reliability and internal consistency of the factors,

Cronbach's alpha was determined at 0.807. (Table 4.4).

31

Table 4.2 Factor Analysis of Sale Experience

Factor /item Factor

loading Eigenvalue

Variance

explained

(%)

Cronbach’s

α

Chevrolel and facilities Dealerships 7.578 54.128 .886

Chevrolel and facilities Dealerships 1 .604



Sales consultant 1.346 9.614 .844

Sales consultant 1 .711




Financial and delivery process 1.024 7.316 .870

Financial and delivery process 1 .664







Total variance explained=71.058, KMO= .914, p = .000

32

Table 4.3 Factor Analysis of Service Experience

Factor /item

Facto

r

loadin

g

Eigenval

ue

Variance

explained

(%)

Cronbach’

s α

Chevrolet and facilities service

center

7.705 55.036

.730


center 1 .756


center 2 .750

Service advisor 1.546 8.185 .757

Service advisor 1 .825




Work carried out and experience 1.146 7.016 .919

Work carried out and experience 1 .638








Total variance explained=70.235, KMO= .920, p = .000

33

4.3 Regression analysis

4.3.1 Sale experience and customer satisfaction

The relationship among sub-factors of sale experience and customer satisfaction

Table 4.5 The Regressions for relationship among sub-factors of sale experience and

customer satisfaction (H1a, H1b, H1c)

Coefficientsa

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 1.083 .237 4.578 .000

Chevrolel and facilities Dealerships -.041 .074 -.054 -.552 .582

Sales consultant .236 .101 .229 2.339 .020

Financial and delivery process .539 .097 .494 5.567 .000

R2/Adjusted R2 .403/.393

F/Sig. 40.359/.000

a. Dependent Variable: customer satisfaction

The first regression model, the customer satisfaction is dependent variable and sales experience

with three sub- factors as independent variables. Results are presented in Table 4.5. As a result,

the F statistic of 40.359is significant at P = 0.00, revealing that the model helps explain some of

the change in customer satisfaction. In addition, the adjusted coefficient determined (adjusted R2)

showed 39.3% of the variance in customer satisfaction is explained by the regression model. The

beta coefficient standard (β) for factor1 (Chevrolel and the facility Dealerships) is. -054 (P> 0.05)

showed no significance. 2-related factor (sales consultant) and beta (β) is only.229 (P <0.05)

which was significant extent. The Last sub- factors that experienced sales and Financial and

delivery process with the beta (β) is 0.494 (p <0:01) only makes sense. According to multiple

34

regression analysis, only one sub-factor of sales experience factor (Chevrolel and the facility

Dealerships) are not affected customer satisfaction. Therefore, hypothesis 1a (H1A) is not

supported and predicted that Chevrolel and the facility Dealerships has a significant impact on

customer satisfaction in GMV. Others such hypotheses 1b and 1c were strong support for the p

value is greater than .05 and .01 with the statement that both business consulting and finance and

delivery process have significant impact to the customer satisfaction.

The relationship between sale experience and customer satisfaction

To further testing the relationship of sales experience and customer satisfaction (H1), the

regression is taking customer satisfaction as the dependent variable and the total number of sales

experience as independent variables. Results are presented in Table 4.6. As a result, the F statistic

of 96.522is significant at P = 0.00, revealing that the model helps explain some of the change in

customer satisfaction. In addition, the adjusted coefficient determined (adjusted R2) showed

34.4% of the variance in customer satisfaction is explained by the regression model. The beta

coefficient standard (β) for satisfaction factor is 0.590 (p <0:01) only makes sense. It can be

concluded that hypothesis 1 is supported sales experience have significant impact to the

customer's satisfaction in GMV.

Table 4.6 The Regressions for relationship of sale experience and customer satisfaction (H1)

Coefficientsa


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 1.499 .218 6.873 .000

Sale experience .606 .062 .590 9.825 .000


F/Sig. 96.522/.000


35

4.3.2 Service experience and customer satisfaction

The relationship among sub-factors of Service experience and customer satisfaction

Table 4.7 The Regressions for relationship among sub-factors of sale experience and

customer satisfaction (H1a, H1b, H1c)

Coefficientsa


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) .369 .181 2.033 .044

Chevrolet and facilities service center .300 .052 .349 5.760 .000

Service advisor -.045 .077 -.043 -.578 .564

Work carried out and experience .676 .074 .603 9.157 .000


F/Sig. 129.262/.000


The next regression model of customer satisfaction is the dependent variable and service

experience with three sub- factors as independent variables. Results are presented in Table 4.7.

As a result, the F statistic of 129.262 was significant at P = .00, revealing that the model helps

explain some of the change in customer satisfaction. In addition, the adjusted coefficient

determined (adjusted R2) showed 67.9% of the variance in customer satisfaction is explained by

the regression model. The beta coefficient standard (β) for factor1 (and Chevrolet service center)

is 0.349 (p <0.05) only makes sense. 2-related factor (advisory services) beta (β) is only - 0.043

(P <0.05) does not make sense. The Last primary factors work experience selling and

implementing experience with the beta (β) is 0.603 (p <0:01) just makes sense. According to

multiple regression analysis, only one sub- factor of the experience factor services (advisory

services) are not affected customer satisfaction. Therefore, hypothesis 2b (H2B) is not supported

predictions that the service advisor has a significant impact on customer satisfaction in GMV.

Others such hypotheses 2a and 2c are strong support for the value of p greater than .01 with that

36

statement and the Chevrolet service center and perform the work and experience have a

significant impact on satisfaction customers.

To better understand the research hypothesis this study go to test further of relationship between

service experience and customer satisfaction (H2), the regression is taking customer satisfaction

as the dependent variable and total service experience as independent variables. Results are

presented in Table 4.8. As a result, the F statistic of 310.745 was significant at P = 0.00, revealing

that the model helps explain some of the change in customer satisfaction. In addition, the

adjusted coefficient determined (adjusted R2) revealed that 63% of the difference in customer

satisfaction is explained by the regression model. The beta coefficient standard (β) for

organizational commitment factor is 0.795 (p <0:01) shows how important strong. It can be

concluded that hypothesis 2 is supported service experience have a significant impact on

customer satisfaction in GMV, even a sub-element of advisory services to support the prediction

of customer satisfaction.

The relationship between service experience and customer satisfaction

Table 4.8 The Regressions for relationship of service experience and customer satisfaction

(H2)

Coefficientsa


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) .556 .176 3.163 .002

Sale experience .888 .050 .795 17.628 .000

R2/Adjusted R2 632/.630

F/Sig. 310.745/.000


From the result of regressions, this study indicates that hypothese 1 ( H1) and 2 ( H2) are

supported (table 4.9). This result demonstrates that the organizational requirements of

37

customer satisfaction are the internally based sale experience and service experience that a

business strives to achieve. In order to meet the needs and expectations of customers, businesses

must know the needs and wants of customers. This information is critical not only for business

success, but also for understanding and improving customer satisfaction. Important components

that will help set the standards and the components of satisfaction from the perspective of the

consumer (Hayes, 2008). From the results of this study, it is of interest to discover that the

dimensions of service quality and quality is sold in GMV customer satisfaction and how to

recognize quality of products and services.

Table 4.9: Hypotheses results

Hypothesis Description Result

H1 Sales Experience has a significant impact on customer satisfaction Supported

H1a Chevrolel and facilities dealerships and dealership has a

significant impact on customer satisfaction Unsupported

H1b Sales consultant has a significant impact on customer satisfaction Supported

H1c Financial and delivery process has a significant impact on


Supported

H2 Services Experience has a significant impact on customer

satisfaction Supported

H2a Chevrolet and facilities service center has a significant impact on


Supported

H2b Service advisor has a significant impact on customer satisfaction Unsupported

38

H2c Work carried out and experience has a significant impact on

customer satisfaction Supported

4.4. Ranking the factors that most important for customer satisfaction in GMV

For fur the testing of order the important factor for customer satisfaction among the factor of

GMV, this study use T-test for analysis the mean score of each factors (Table 4.10). The result

indicates that the Work carried out and experience factors is ranked first (MD= 3.66393,

p<.001); the second factor that affect on customer satisfaction is Service advisor (MD= 3.58060,

p<.001) ; coming as the third is Chevrolel and facilities Dealerships ( MD= 3.47177, p<.001), the

fourth is Sales consultant ( MD= 3.3212, p<.001), number five belong to Financial and delivery

process (3.40359, p<.001), and the lowest score is Responsiveness (2.98907, , p<.001) this

factor mean score even not equal 3.

Table 4.10 the order important factor that most important for customer satisfaction

Factors t Sig. Mean

Difference

Std.

Deviation

Ranking

Chevrolel and facilities Dealerships 42.456 .000 3.47177 1.10621 3

Sales consultant 57.022 .000 3.44262 .81671 4

Financial and delivery process 59.847 .000 3.40359 .76934 5

Chevrolet and facilities service center 41.476 .000 2.98907 .97490 6

Service advisor 60.284 .000 3.58060 .80349 2

Work carried out and experience 66.273 .000 3.66393 .74789 1

39

Chapter 5 CONCLUSIONS AND

RECOMMENDATIONS

5.1 Discussion

Satisfying customers completely is more critical to success today. In fact, complete customer

satisfaction is now GM’s measurement and this has proven ties to owner loyalty. The rewards

for recognizing changes in customer expectations and consistently meeting them include:

increased customer loyalty

higher sales of vehicles, service, and parts

greater market penetration

improved profits

The CSI Survey Process is part of the strategy to maintain the needed customer focus and aim at

completely satisfying customers in all aspects of the dealership sales and after sales experience.

Recognizing the importance above, some Vietnam Automobile Manufacturers such as Toyota,

Ford ...has deployed the survey and evaluation of customer satisfaction index (CSI) in the early

years of the last decade (since 2000). Since then they have the strategy and clear roadmap for

improving CSI.

In 1995, GM introduced Retail Standards based on what customers “expect” when they visit a

dealership to purchase a vehicle or have it serviced. At the same time, a common CSI survey

process was implemented for all US divisions and Canada (except Saturn Saab) to measure how

well GM and its Retailers meet customer expectations.

The initial survey process and questionnaires were carefully developed over a two-year period,

with ongoing retailer involvement and extensive consumer testing of al question wording, the

format and satisfaction scale used.

Over the years, several tools have been developed to improve CSI. As a result of these efforts,

GM has elevated the customer experience and substantially improved its competitive position.

40

However, for General Motors Vietnam, by changing from brand of Daewoo to Chevrolet

therefore, CSI is new concept and Dealerships system has not interested in CSI and has not seen

the importance of CSI and the benefits that it brings back to business

5.2 Conclusion

According Zeithmal and Bitner (2003), "satisfaction is complete reaction of consumers. It is a

judgment that a product or service feature, or the product or service itself, provided a level of

complete consumption-related "(p. 86). It is suggested that satisfaction is a broader concept than

service quality. It includes assessing cognitive and emotional, while assessing the quality of

service is primarily a cognitive process (Crompton, 2003). A number of studies in the services

marketing literature has reported that two structures correlate strongly related (eg, Alexandris et

al, 2001;. Caruana, 2002; Cronin & Taylor, 1992; Spreng & Chiou , 2002; Spreng & McKoy

1996 Woodside et al., 1989). There have been limited attempts to investigate the relationship

between service quality and satisfaction using SERVQUAL model however the side of the

SERVQUAL dimensions there are many factors that affect satisfaction customer. From this

perspective, this study used two main variables affecting customer satisfaction, such as

experienced sales and service experience and includes 6 sub - factors of two main variable.

From the study result, there are 2 hypothesis (H1, H2) are supported. However in the sub-factor

there are two sub factors (H1a and H2b) are not supported that for prediction that the Chevrolel

and facilities Dealerships has a significant impact on customer satisfaction in GMV and Service

advisor has a significant impact on customer satisfaction in GMV. Beside, the T-test result shows

that Chevrolel and facilities Dealership and Service advisor are the number 2 and number 3 that

important for customer satisfaction. So improving this two factor is the requirement for GMV for

meet the customer satisfaction. Otherwise Financial and delivery process and Chevrolet and

facilities service center is coming as number 5 and number 6 which are also needed for

improving.

41

5.3 Recommendation

We have to focus on the key areas as following:

5.3.1 For Purchase and Delivery Satisfaction (PDS)

1. SALES CONSULTANT

Knowledge of Chevrolet vehicles?

Provide product training for sales consultants (WBT & IBT)

Provide training on soft skills for sales consultants: presentation skills, listening skills ...

(WBT & IBT)

Sales talks to sales consultants (IBT)

Sales contest among Chevrolet dealerships system (IBT)

Courtesy and willingness to take the time necessary to understand customers ‘’s

requirements?

Sales consultants have to be asked to have courtesy and willingness totake the time necessary

to understand customers’ requirements.

Sales consultants will be reminded if customers have ‘complaint to Customer Care Center.

Fulfillment of all commitments made during the purchase negotiation?

Sales Consultants have to be asked to have fulfillment of all commitments made during the

purchase negotiation with Customers.

Sales consultants will be reminded if have customers ‘complaint to Customer Care Center

Test Drive of the vehicle that customers were interested in

Currently the number of DEMO cars did not meet the test of customersCompared with

competitors, there is a big gap

GMV has not DEMO car policy to encourage dealers to purchase Demo cars

2. DELIVERY PROCESS

Cleanliness and preparation of customer ‘s vehicle

42

At the time of vehicle delivery, the cleanliness and preparation of vehicle have been done at

all dealerships.

Dealers principals have been reminded on these requirements.

Dealers have been asked to assign full time staffs to do the job.

Vehicle delivered on time as promised

Vehicle delivered on time as promised.

There are not many complaints from customers on this item.

Explanation of Owner's manual, Warranty & Maintenance schedule, Vehicle Features &

Operations

Sales Consultants have to be asked to explain to customers the followings: Owner's manual,

Warranty & Maintenance schedule, Vehicle Features & Operations, service location

Sales consultants will be reminded if customers have ‘complaint to Customer Care Center.

Follow up call after the delivery of new vehicle

Sales Consultants have to be asked to call for caring customer after delivery.

Besides dealers customer care center will make calls to 100% customers to get feedback from

them.

3. DEALER FACILITIES

Cleanliness and Appearance of the Showroom

Dealerships’ showroom cleanliness has significantly improved

However, there some issues for cleanliness at front of the showrooms (some dealers in

northern)

Due to the difficult in business, Dealers are limited to investments and reduce costs.

If you enter the showroom in the hot summer day, it is so hot because dealers do not run air-

conditioner.

4. FINANCIAL PROCESS

Approximately 80% of customers use bank loan to purchase cars, dealers have a good

relationship with the local banks and the explanation

of the Financial Process is good.

The handling of the paperwork is still low at some dealers cause of staffs’ skill &

communication.

43

The explanation of the Financial Process and the handling of the Paperwork.

Approximately 80% of customers use bank loan to purchase cars, dealers have a good

relationship with the local banks and the explanation

of the Financial Process is good.

The handling of the paperwork is still low at some dealers cause of staffs’ skill &

communication.

5.3.2 For service satisfaction

1. SERVICE ADVISORS

Knowledge and competence levels

No soft skills training program for services advisors from GMV

Have asked Dealer Principals, Service Managers assist service advisors in improving

knowledge and competence levels.

Willingness to take the time necessary to thoroughly understand customers’ s

requirements

Service Advisors have been asked to have willingness to take the time necessary to

thoroughly understand customers’ requirements?

Service Advisors will be reminded if customers have ‘complaint to Customer Care Center.

A courteous, friendly and professional manner

Service Advisors have been asked to treat in Courteous, friendly & professional manner to

customers.


2. WORK CARRIED OUT

Estimate of costs before any work was carried out

Estimate of costs before any work was carried out is always offered to customers

Good feedback from customers

Customer ‘s service concerns corrected on this visit/ Fix Right First Time (FRFT)

All service concerns corrected on the workshop visit


44

Vehicle ready/ delivered at the promised time

Vehicle ready/delivered at the promised time.


3. SERVICES CENTER FACILITIES

Cleanliness and Appearance of the Service Department

Dealerships’ Service Centre cleanliness has significantly improved

However, cleanliness not be maintained during the working time, only made better by the end

of day.

Due to the difficult in business, Dealers are limited to investments and reduce costs.

Air- conditioner not operated in customers lounges in some dealers.

4. COLLECTION EXPERIENCE

Explanation of all work performed on the vehicle

Service Advisors have asked to provide explanation of all work performed on the customers’

vehicles.


The condition in which vehicle was returned to customer

Vehicles have been checked and wash before return to Customers


Follow up call after receiving the vehicle from the dealership

Besides dealers customer care center will make calls to 100% customers to get feedback from

them.

Satisfied were you with the follow up call

Training skills for customer care centers

45

References

1. Marketing Management, Philip Kotler - Northwestern University & Kevin Lane Keller

(2011) – Dartmouth College (14th edition)

2. F.A.Q, What do IQS, APEAL, CSI, SSI, and VDS stand for?These are acronyms for J.D.

Power and Associates five key automotive studies that provide the data for this site at

http://autos.jdpower.com

3. GMIO Consumer Satisfaction Measurement CSI play boock, October 2005 (V1.3)

4. Application of customer satisfaction index – CSI in building Bank business strategies:

Approaching the theory Model, Le Van Huy, University of Economy (Da Nang)

5. The Impact of Customer Satisfaction and Relationship Quality on Customer Retention:A

Critical Reassessment and Model Development, Thorsten Hennig-Thurau and Alexander

Klee, University of Hanover.

6. General Motors Learning at http://gmu.gm.com

7. General Motors training academy at https://www.gmiotraining.com

8. General Motors Vietnam Website at http://Chevrolet.com.vn

9. General Motors Vietnam facebook at https://www.facebook.com/chevrolet

10. Research Seminar – Weissenbaeck ‘s prsentations

11. SERVQUAL and Model of Service Quality Gaps:Dr. Arash Shahin Department of

Management, University of Isfahan

12. Defining Consumer Satisfaction – Joan L.Giese Washinton University.

13. A Literature Review and Critique on Customer Satisfaction Liu Huiqun Tianjin University of

Commerce, Tianjin, China

14. Anderson, E. W. and Fornell, C. (2000), Foundation of the American Customer Satisfaction

Index, Total Quality Management, 11, 7, 8869-8882.

15. Andreassen, T. W. and Lindestad, B. (1998a), The effects of corporate image in the formation

of customer loyalty, Journal of Service Marketing, 1, 82-92.

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16. Andreassen, T. W. and Lindestad, B. (1998b), Customer loyalty and complex services: The

impact of corporate image on quality, customer satisfaction and loyalty for customers with

varying degrees of service expertise, International Journal of Service Industry Management,

9, 7-23.

17. Fornell, C. (1992), A national customer satisfaction barometer, the Swedish experience,

Journal of Marketing, 56, 6-21.

18. Fornell. C., Johnson, M. D., Anderson, E, W., Cha. J. and Bryant, B. E. (1996), The

American Customer Satisfaction Index, nature, purpose and findings, Journal of Marketing,

60, 7-18.

19. O’Loughin C. and Coenders (2004), Estimation of the European Customer Satisfaction Index:

Maximum Likelihood versus Partial Least Squares. Application to Postal Services, Total

Quality Management, 12, 9-10, 1231-1255.

20. Martensen. A., Gronholdt, L. and Kristensen, K. (2000), The drivers of customer satisfaction

and loyalty. Cross-industry findings from Denmark, Total Quality Management, 11, 8544-

8553.

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