68 Ho Chi Minh City Open University Journal of Science- No.

3(1) 2013

ENHANCING CUSTOMER SATISFACTION IN TERMS OF

SERVICE QUALITY IN SUPERMARKET - THE CASE STUDY OF
BIG C SUPERMAKET IN HCMC
Trinh Thuy Anh, Ho Chi Minh City Open University
Phan Minh Tai, Saigon M&C Real Estate JSC

ABSTRACT
This paper aimed at determining factors effecting customer satisfaction in terms of
service quality as well as evaluating satisfaction level of shoppers in Big C Supermarket.
A survey of 158 shoppers in various Big C supermarkets in HCMC has evaluated retail
service quality according to Retail Service Quality Scale (RSQS) which composes of 5
dimensions namely physical aspects, reliability, personal interaction, problem solving
and policy. The findings show that there are three factors mainly effecting on customer
satisfaction in Big C, those factors are Reliability, Problem Resolving and Policy. Based
on the result of survey, practicle solutions recommended to Big C for improvement of
service quality in order to close gaps that could lead to increasing customer satisfaction.
Keywords: customer satisfaction, service quality, RSQS, supermarket, HCMC.

INTRODUCTION Among players in Vietnam retail

According to statistics, up to 2011, market, HCMC Big C Supermaket was
there were 450 supermarkets, around chosen (a modern retail business is
80 commercial centers and over 2,000 managed under the umbrella of Casino
stores all over Vietnam. Besides the group) which many Vietnam people are
modern distribution system, there were familiar with.
8,591 traditional markets and about 1,200 LITERATURE REVIEW
temporaty markets. The existing of many Customer satisfaction
retail distribution channels bring customers
Shortly, customer satisfaction is
many choices of shopping. Therefore, the
defined as “overall attitude towards a
competition between traditional markets,
service provider” (McDougall, 1990) or
Supermarkets, etc. become more fierce. To
“an emotional reaction to the difference
survive and develop in the current economic
between what customers anticipate and
situation, a business has to understand the
what they receive” (Zineldin, 2000).
customers’ perceptions toward its service
quality then has the proper improvements Zeithaml V.A. (2006) interprets that
to meet customers’ expectation, that will customer satisfaction is influenced by
create an advantage of getting customers’ perceptions of five factors: service quality,
intimacy. Basing on that rationale, this product quality, price, situational factors
paper concerns on assessing current service such as family member opinions, and
quality of a modern supermarket (a common personal factors such as customer’s mood
retail model in big cities in Vietnam) and or emotional state.
finding solutions to enhance it. Service quality is one of the elements
 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013 69

that affect strongly to satisfaction of apply into retail industry, 28 items of scale
customer. It also indicates that the higher includes 17 items kept from SERVPERF
service quality customers perceive, the scale and 11 items found out from a
more satisfied they are. In five elements qualitative research and are devided into
affecting customer satisfaction, Service 5 dimentions which are Physical aspects,
qualiy is choosen for this paper in order Reliability, Personal interaction, Problem
to enhance satisfaction level of Big C’s solving, Policy.
customers. Physical aspects: Physical aspects
Service Quality and Measuring are widely recognized as the factor of
Scales for Retail Industry evaluation process of service quality. Three
In the past decades, many practitioners forces primarily cause the assessment:
and researchers has paid attention to equipment and fixtures, physical facilities,
service quality for retail. Amongst various materials. Accordingly, the authors define
service quality models proposed, three ease of physical ammenities and layouts.
models are used widely: SERVQUAL Their perspectives are concerned with
and GAP model, SERVPERF, and Retail tangible dimension and more meaningful
Service Quality Model (RSQS). than SERVQUAL is. The layout of
Servqual Scale (by Parasuraman et physical facilities also has been put in
al.) includes five dimensions tangibles, high consideration. The more favorable
reliability, responsiveness, assurance comments on physical we receive, the
and empathy. According to this model, better our service is.
there are five gaps which influence Reliability: The researcher not
customer’s perception toward sevice there is no difference between reliability
quality. These gaps occur in the internal construction in their models in a
process of delivering service, they define comparision with SERVQUAL model.
the difference between what is expected Reliability can be described as keeping
and what is perceived clarified the basic promise, offering exact service, remaining
premise (Parasuraman et al, 1985). the availability of merchandise and
Based on findings from Parasurman recording error-free sales transactions.
et al, Cronin and Taylor (1992) developed They notice that marketing needs to address
a service quality measurement as reliability as their own positive features in
“performance - based” called SERVPERF. obtain customer service satisfactions.
Theoritically the previous research explored Personal Interaction: The dimension
the decisive factors affecting the customer of personal interaction is another variable
perception on service. Cronin and Taylor that affect service quality assessment.
made a further step into operationalizing It is made based on staffs knowledge to
service quality measurement. Different answer questions, stimulating confidence,
from SERVQUAL in a combination of giving service offers, keen to take action
expectations and perceptions, SERVPERF to customer’s requests, paying attention
maintains only what exists in the mind to giving private customers, staying
of customer (customer’s perceptions for consistent courtesy with customers and
service quality). even treating all your phone customers
Dabholkar et al. (1996) developed properly. The more favorable inter-
a spatial model of 28-item scale called personal contact, the greater the likelihood
Retail Service Quality Model (RSQS) to of good service evaluation is.
70 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013

Problem Solving: Problem solving different cultural contexts of the US

examines the solution of returns, exchanges and South Korea though they reported
and complaints. The researchers categorize empirical support for a four-and not a
problem handling into two continums: five-dimensional structure. Boshoff and
willingness to solve return and exchange Terblanche (1997), in a replication of
matters and sincere interest in dealing with the Dabholkar, Thorpe and Rentz (1996)
customer complaints promptly. study, report highly encouraging results
Policy: In scope of retail industry, for the RSQS applicability in the context
policy from retailers put a straight affect of department stores, specialty stores, and
hypermarkets in South Africa.
on service quality. It comes from upscale
quality merchandise, easy access of Nguyen Thi Mai Trang (Journal of
parking and working hours as well as main Science and Technology Development
credit card acceptance. The fact that policy – Social Sciences Humanitites and
could be highly appreciated is consistent Management, Vol. 9 No 10, pp.57-70,
with favorable evaluation within service 2006) describe service quality formation.
She encountered the issue in term of the
management.
associations between service quality,
Servqual and Servperf are measuring customer satisfaction and loyalty in
scales applied into many types of supermarkets in HCMC. Nguyen Dang
service industries (retailing, banking, Duy Nhat & Le Nguyen Hau (Journal of
restaurants,…), however, each specific Science and Technology Development
service industry has its own characteristic. – Social Sciences Humanitites and
These general scales therefore should be Management, Vol. 10, No 08, 2007) also
tested and revised carefully to fit particular made a research of identifying components
traits of that service. Retail Service Quality of retail service quality in Vietnamese
Scale (RSQS) was developed from results Supermakets. Basing on argument above,
of Servqual and Servperf to build a new RSQS is the most suitable for this paper.
scale which used to measure quality of RESEARCH METHODOLOGY
retail service only. In many earlier studies, Research Method
this model was used as an appropriate The objective of this study is to
instrument to measure service quality in investigate satisfaction of customers in
certain types of retailers such as department terms of service quality. The result of
stores, supermarkets and discount stores the paper can help Big C supermaket
over the the world, in Western and Eastern improve the service quality, retain current
countries as well as in Vietnam. customers, attract new customers and get
After Dabholkar, Thorpe and Rentz more profit. Retail Service Quality Scale
(1996) replicated their own study and (RSQS) shall be used for this research.
found all RSQS dimensions and sub- Research model consists of five
dimensions to be valid in the US, Mehta, factors basing on RSQS with hypothesis
Lalwani and Han (2000) found the RSQS as following:
five - dimensional structure appropriate for H1: Physical aspects have positive
measuring the service quality perceptions impact on overall evaluation of retail
of supermarket consumers in Singapore. service quality.
According to Kim and Jin (2002), RSQS H2: Reliability has positive impact
is a useful scale for measuring service on overall evaluation of retail service
quality of discount stores across two quality.
 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013 71

H3: Personal interaction has positive Perceptions will base on mean value of
impact on overall evaluation of retail scores for variables.
service quality. Items building and survey
H4: Problem solving has positive The research is carried out through
impact on overall evaluation of retail two main stages: pilot study which has
service quality. been conducted by qualitative research
H5: Policy has positive impact on via group discussion/ trial interview to
overall evaluation of retail service quality. construct and test measuring scales, actual
To determine which factors study has been conducted by quantitative
impacting on customer satisfaction, linear research to get primary data for analysis.
regression analysis is applied. Linear Customer satisfaction (SAT)
regression model is a regression form in of shopping in Big C supermarket is
which the relationship between dependent theoretically affected by five dimensions
variables (dimensions of service quality) that are Physical aspects (PHY), Reliability
and independent variable (customer (REL), Personal interaction (PER),
satisfaction) is described by a linear Problem solving (PRO), Policy (POL).
function in order to explain the impact of
changes in a independent variable on the Original RSQS model of Dabholkar
dependent variable (Berenson et al. 2004). including 28 dependent variables.
Linear regression equation is represented Dependent variable is dimension of
as below customer satisfaction including three
questions based on framework proposed
Y = â 0 + â 1x i + åi by Lassar et al (2000) for customer
satisfaction: (1) overall satisfaction level

Where Y: dependent variable

(dimension of customer satisfaction) about service, (2) recommendation of
Xi:: dependent variable (dimensions current customer to potential customer, (3)
of service quality) continuing of using service.
β0: intercept
After a qualitative survey, one
β1: slope coefficient
variable (question number 28) of Policy
εi: random error (residual) dimension removed from scale due to
After determing specific factors unsuitable to supermarket in Vietnam,
impacting on customer satisfaction, theory most of members in group discussion
of Gap 5 in Five Gaps Model will be agreed this conclusion. Therefore, the
applied to evaluate customer satisfaction official questionnaire includes 30 questions
level for those factors. According to formally, 27 questions from RSQS and
Parasuraman and associates (1988), gap 3 questions from customer satisfaction
scores is the best most effective way to theory.
assess customer satisfaction, Gap scores Sample size depends on data analysis
are obtained by subtracting perception method. Factor analysis need sample size
scores from expectation scores. at least five times of observed variables
Gap score = Perceptions (P) – (Hair, 1994). The number of observed
Expectations (E) variables in research model is 30. So
The highest score of satisfaction sample size need at least 30 x 5 = 150
indicates customers’ expectation. responses
72 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013

Table 1: Service quality and Customer satisfaction scale

No. Label Description Source
Physical aspects (PHY)
Servperf
01 PHY_01 Big C has modern-looking equipment and fixtures
Scale
Big C and its physical facilities (trial rooms and restrooms) are Servperf
02 PHY _02
visually attractive Scale
Materials associated with Big C’s service (such as shopping bags, Servperf
03 PHY _03
loyalty cards, and catalogues) are visually appealing Scale
Big C has clean, attractive, and convenient physical facilities RSQS
04 PHY _04
(restrooms, fitting rooms) Model
The layout of Big C makes it easier for customers to find what they RSQS
05 PHY _05
need Model
The layout of Big C makes it easier for customers to move around RSQS
06 PHY_06
in store Model
Reliability (REL)
When Big C promises to do something (such as repairs, alterations) Servperf
07 REL _01
by a certain time, it will do so Scale
Big C provides its services at the time it promises to do so Servperf
08 REL _02
Scale
Big C performs the service right the first time Servperf
09 REL _03
Scale
Big C has merchandise available when the customers want it RSQS
10 REL _04
Model
Big C insists on error-free sales transactions and records Servperf
11 REL _05
Scale
Personal Interaction (PER)
Employees in Big C have the knowledge to answer customers’ Servperf
12 PER_01
questions Scale
The behaviour of employees in Big C instils confidence in customers Servperf
13 PER _02
Scale
Servperf
14 PER _03 Customers feel safe in their transactions with Big C
Scale
The employees in Big C give prompt service to customers Servperf
15 PER _04
Scale
Employees in Big C tell customers exactly when services will be Servperf
16 PER _05
performed Scale
Employees in Big C are never too busy to respond to customer’s Servperf
17 PER _06
requests Scale
Big C gives customers individual attention Servperf
18 PER _07
Scale
Employees in Big C are consistently courteous with customers Servperf
19 PER _08
Scale
 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013 73

Employees in Big C treat customers courteously on the telephone. RSQS

20 PER _09
Model
Problem Solving (PRO)
Big C willingly handles returns and exchanges RSQS
21 PRO_01
Model
When a customer has a problem, Big C shows a sincere interest in Servperf
22 PRO _02
solving it Scale
Employees of Big C are able to handle customer complaints directly RSQS
23 PRO _03
and immediately. Model
Policy (POL)
Big C offers high quality merchandise RSQS
24 POL_01
Model
Big C provides plenty of convenient parking for customers RSQS
25 POL _02
Model
Big C has operating hours convenient for all their customers Servperf
26 POL _03
Scale
Big C accepts all major credit cards RSQS
27 POL _04
Model
Customer satisfaction (SAS)
28 SAT_01 You are satisfied when shopping in Big C Supermarket.
You will increase the frequency of shopping in supermarket in the
29 SAT_02 Custmer
future.
30 SAT_03 You will continue to shop in Big C Supermarket in the future

To get the rate of answers, Likert Using SPSS version 16.00 to analyse
five points scale is used for measuring the result. Firsly, checking reliability of
satsfaction level of customer basing Scales by Cronbach’s alpha index in order
on rule: 1 for very disagreed (the less to ensure the measuring scale is reliable
satisfied), 2 for disagreed, 3 for neutral, 4 and consistent. The result shows that
for agreed and 5 for strongly agreed (the all Cronbach’s alpha of dimensions are
most satisfied). higher 0.7 and no Corrected Item-Total
4. RESULT ANALYSIS AND Correlation of any variable less than 0.33,
FINDINGS the scale therefore is reliability and kept
unchanged (no variable rejected). Table 2
4.1 Result analysis
shows the result in detail.
74 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013

Table 2 : Cronbach’s Alpha Coefficient

Scale Mean if Scale Variance if Corrected Item-Total Cronbach’s Alpha if Item
Variables
Item Deleted Item Deleted Correlation Deleted
PHYSICAL (PHY): Alpha = 0.889
PHY_01 17.54 11.231 .805 .855
PHY_02 17.56 11.879 .694 .872
PHY_03 17.86 12.184 .637 .881
PHY_04 17.53 11.270 .828 .852
PHY_05 17.30 11.767 .615 .885
PHY_06 17.33 10.732 .696 .875
RELIABILITY (REL): Alpha = 0.846
REL_01 13.95 6.087 .686 .805
REL_02 13.89 6.688 .709 .805
REL_03 13.90 6.194 .746 .790
REL_04 13.85 6.754 .468 .867
REL_05 14.04 6.075 .702 .801
PERSONAL INTERACTION (PER): Alpha = 0.924
PER_01 26.64 23.557 .724 .916
PER_02 26.60 22.407 .807 .910
PER_03 26.60 22.063 .829 .909
PER_04 26.72 22.256 .833 .909
PER_05 26.88 23.126 .803 .911
PER_06 26.93 23.976 .693 .918
PER_07 26.94 24.467 .494 .931
PER_08 26.74 22.856 .712 .917
PER_09 26.61 23.780 .676 .919
PROBLEM SOLVING (PRO): Alpha = 0.898
PRO_01 6.62 2.084 .766 .881
PRO_02 6.64 2.041 .801 .852
PRO_03 6.72 1.963 .827 .828
POLICY (POL): Alpha = 0.738
POL_01 10.65 3.453 .585 .650
POL_02 10.94 3.252 .421 .766
POL_03 10.57 3.597 .613 .643
POL_04 10.58 3.493 .560 .664
CUSTOMER SATISFACTION (SAT): Alpha = .855
SAT_01 7.04 1.966 .756 .769
SAT_02 7.23 2.079 .678 .842
SAT_03 6.90 1.951 .747 .777
 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013 75

After evaluating the reliability of satisfaction dimension. The result shows

measuring scale, factor analysis is apply that the correlation between Customer
to test if variable group of each dimension Satisfaction (SAT) and Physical respect
keeps unchanged or separates into different (PHY), Reliability (REL), Personal (PER)
factors, and to reach to the underlying interaction, Problem resolving (PRO) and
factors that have their most effect in Policy (POL) are positive and statistically
customer satisfaction. As SPSS result, all significant (Correlation coefficients
KMO index much higher than 0.50 (the between SAT and others are all higher than
lowest one is 0.62) with significant level 0.33 with significants at the 0.01 level less
of Bartlett’s Test of Sphericity - Sig. = than 0.00).
0.000. This indicates that using EFA is Linear regression run shows the
appropriate. All factor loadings of variables result as table 1, the significant level of
of six dimensions are higher than 0.5, thus regression coefficients of one Constant
variables of each dimension are adequate and five explanatory variables (Physical
to represent the data for each factor. respect, Reliability, Personal interaction,
Correlation coefficient analysis Problem solving, Policy) are 0.950, 0.388,
was used for testing the relation between 0.021, 0.225, 0.002 and 0.000 respectively.
dimensions of service quality and customer

Table 1: Regression: Coefficientsa

Unstandardized Standardized 95% Confidence Collinearity
Coefficients Coefficients Interval for B Statistics
Lower Upper
Model B Std. Error Beta T Sig. Bound Bound Tolerance VIF
Constant .015 .237 .063 .950 -.453 .482
PHY .067 .078 .066 .865 .388 -.086 .220 .436 2.292
REL .215 .092 .196 2.33 .021 .033 .397 .360 2.775
PER .125 .102 .109 1.22 .225 -.077 .327 .321 3.117
PRO .238 .077 .242 3.08 .002 .085 .390 .415 2.408
POL .370 .074 .325 5.01 .000 .224 .517 .607 1.647

Result shows that only three higher than coefficient of Problem

dimensions (Reliability, Problem solving, Resolving (0.242) and Reliability (0.196).
Policy) have the small significant level and As the result, Reliability dimension
can be accepted, so they are remained in Problem Resolving dimension have
the research model to explain for Customer weaker influence to Customer Satisfaction
Satisfaction.The regression equation of than Policy dimension.
research model is bellow:
Basing on regression analysis
SAT = 0.196*REL + 0.242*PRO + 0.325*POL result, the theoretical research model has
Among three coefficients, been adjusted to be adequate to Big C
coefficients of Policy (0.325) are much supermarket context as following:
76 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013

Figure 1: Final Adjusted Research Model

4.2 Gap analysis Gap score = Perceptions (P) –

Obtaining the score of each of three Expectation (E)
dimensions including 12 statements, the As mentioned aboved, the highest
Gap score of the statements are calculated. score of satisfaction (five on the five – point
According to Parasuraman and associate scale) indicated customers’ expectation of
(1998) using gap scores is the most effective shoping in Big C supermarket in general.
way to assess customer satisfaction. Therefore all the expectation got the score
Gap score are obtained by subtracting of 5.
perception scores from expectation scores.
Table 2: Gap Score
Overall
No. Dimension
P E P-E
1 Reliability 3.48 5.00 -1.52
2 Problem solving 3.33 5.00 -1.67
3 Policy 3.56 5.00 -1.44
4 Customer satisfaction 3.53 5.00 -1.47

In comparision on gaps score between This paper can be seen as a reference

customer perception and expectation of source contribute to customer satisfaction
retail service quality, the problem solving study of supermaket at a specific market.
dimension got the most negative ratings RECOMMENDATION
and the Policy dimension received the
The paper shows that customers
least negative ratings.
although are quite satisfaction (but not
CONCLUSION AND very high) with current services and intend
RECOMMENDATION to continue shopping in Big C in future,
CONCLUSION but Big C has to improve a lot if it wants to
From practical perspective, this continue developing and keep customers
research helps Big C Supermaket perceive in this current difficult economy. Authors
the current level of service quality and would like to give some final and overall
customer satisfaction in the service they recommendations to improve customer
are providing, understand impact of satisfaction as following.
different components affect the quality of Due to health issue, customers
service and customer satisfaction. From notice the quality and origin of goods
that, Big C Supermaket can have suitable most. Therefore, Big C should not only
modification to improve service quality focus on the competitive price but also
and customer satisfaction. pay attention to the trustworthy quality.
 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013 77

Recently, a number of Vietnam consumers merchandises and giving feedback for

avoid buying merchandises which have complaints how to meet customers’
unclear origin or Chinese origin because expection (such as shortening the process
of doubting quality, Big C should consider time, making procedure simple and
this market tendency. convenient).
HCMC is a biggest city in Vietnam In addition, Big C also should
and people have no habit of taking public strengthen relationship with customers
transport, therefore, parking for vehicle by building reliability on them through:
is a big broblem of City. As a whole city, always do right things at right time for any
Big C supermarket is also facing this promises, ensure merchandises always
trouble and needs have the right solution available on the shelfs to avoid making
to make customers more satisfied by customers disappointed when they come,
ensuring enough space for them parking. make sure sales transactions smoothly and
A practical solution is multi-floor parking no mistakes, belongings of customer kept
building which is pre-engineering steel safety in locker when they are shopping.
structure. This construction can store a Limitation and future works
lot of vehicles, especially it is simple and
Due to limited time, the survey only
takes short time to install.
focuses on Service Quality, meanwhile
Factors relating to the convenient Customer Satisfaction also affected by
operating hours and accepting all major other components: product quality, price,
credit card for payment are highly situational factors and personal factors. In
appreciated by customers, and Big C addition, the research is only conduct with
indeed has implemented these things well customers who already shopped at Big C
so it should uphold. Supermarket in HCMC. The content of the
In doing business, Big C always research will be more comprehensive if
has commitments with its customers subject of survey is going to open to other
regarding terms of return/ exchange/ areas in Vietnam.
repairs/ alternation for damaged/ error From limitation mentioned above,
merchandises as well as giving feedback it is suggested for futher study in future
for complaints by customers. In fact, could considerate product quality, price,
the research shows that these factors situational factors as well as personal
really make a strong impact on customer factors and then extending to other areas
sastisafaction, however unfortunately the in Vietnam. This will have better and more
research also tells us that customers do not confident result in investigating customer
give Big C high score for these factors. satisfaction due to larger sample size.
Therefore, Big C promptly improves the Future study should be conduct in longer
customer service team to take care of time for better result. The future study can
customers better, as well as probably re- apply modern statistical technique like
defines the terms of return/ exchange/ structural equation modeling (SEM) for
repairs/ alternation for damaged/ error better result.
78 Ho Chi Minh City Open University Journal of Science- No. 3(1) 2013

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