Luận văn thạc sĩ UEH client perceived service and satisfaction in business to business professional

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

Nguyen Thi Ngoc Phuong

Client perceived service and satisfaction

in business-to-business professional tax

consultant services

ID: 22110046

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. Vo Thi Ngoc Thuy

Ho Chi Minh City- 2014

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

Acknowledgement

I would like to express my gratitude to my supervisor, Dr. Vo Thi Ngoc Thuy, for the

patient guidance, encouragement and advices she has provided throughout the time preparing

this thesis. In addition, I would like to thank all the members of committee and professors at

International School of Business and my colleagues for their great orientation, instructions

and comments for my further improvement of my thesis.

Thanks to all participants in the research survey for their kind support and

cooperation. Finally, I also would like to thank family and friends who always support and

encourage me a lot.

Nguyen Thi Ngoc Phuong

March 2014

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

Abstract

This thesis attempts to empirically confirm the applicability of La et al.' s (2009)

conceptual model regarding client perceived value in professional business-to-business

service in professional tax services in the context of Vietnam. It endeavors to expand the

concept of value and satisfaction in business-to-business professional tax services in the

context of Vietnam. This is the first research representative in the context of Vietnam that is a

theoretical contribution to the research on value and client satisfaction from an Asian

behavior perspective.

The results show that in the context of professional tax consultant services m

Vietnam, clients tend to perceived performance and value in the same stage called perceived

service. There are five factors which are empirically confirmed having positive effects to

perceived service i.e. technical skills, interpersonal skills, customer orientation, reputation

and relationship with tax authorities. In addition, perceived service is a key contributing

factor to client satisfaction. The results also indicate that the impacts of reputation and

relationship with tax authorities on perceived service are not different in terms of firm's

international experience and nature of engaged services, respectively.

In addition, the research aims to provide managerial implications. Based on the

finding, discussion and recommendations in the research, professional tax firms can have

further actions to address client's need and more improve the level of customer satisfaction.

ii

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

CONTENTS

Acknowledgement ................................................................................................................ i

Abstract ............................................................................................................................... ii

Chapter 1: Introduction ................................................................................................ 1

1.1 Research background .............................................................................................. 1

1.2 Research problem ................................................................................................... 2

1.3 Research objectives ................................................................................................. 3

1.4 Scope ofthe research .............................................................................................. 3

1.5 Significance ofthe research .................................................................................... 4

1.6 Structure of the thesis .............................................................................................. 5

Chapter 2: Literature review ........................................................................................ 6

2.1 Literature review ..................................................................................................... 6

2.2 Qualitative analysis ............................................................................................... 16

2.3 Hypothesis ............................................................................................................ 22

Chapter 3: Methodology ............................................................................................. 26

2.1 Methodology ........................................................................................................ 26

2.2 Measurement ........................................................................................................ 27

Chapter 4: Data Analysis ............................................................................................ 32

3.1 Purifying data ....................................................................................................... 3 2

3.2 Measurement analysis ........................................................................................... 32

3.3 Hypothesis testing ................................................................................................. 38

3.4 Moderator testing .................................................................................................. 45

Chapter 5: Discussion and Conclusion ....................................................................... 48

4.1 Results Discussion ................................................................................................ 48

4.2 Managerial implication ......................................................................................... 52

4.3 Conclusion ............................................................................................................ 53

4.4 Limitation and Further research directions ............................................................ 53

lll

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

•

Master thesis

REFERENCE .................................................................................................................... 55

APPENDIX ....................................................................................................................... 57

LIST OF TABLES AND FIGURES

Tables

Table 1: Summary of qualitative analysis' results ................................................................ 20

Table 2: Summary of indicators of the constructs used in the research model ...................... 28

Table 3: The Cronbach alpha coefficients of components .................................................... 33

Table 4: Exploratory Factor Analysis .................................................................................. 34

Table 5: Extracted Factors ................................................................................................... 37

Table 6: The Cronbach alpha coefficients of new components ............................................ 38

Table 7: Summary of regression results: Factors having impacts on Perceived Service ........ 41

Table 8: Relationship among independent variables (Technical Skills, Interpersonal Skills,

Customer Orientation, Reputation, Relationship with Tax Authorities) and dependent variable

(Perceived Service) ............................................................................................................. 42

Table 9: Summary of regression results: Factor having impact on Client Satisfaction .......... 44

Table 10: Relationship between independent variable (perceived service) and dependent

variable (client satisfaction) ................................................................................................ 44

Table 11: Summary of Chow test results ............................................................................. 46

Figures

Figure 1: Summary of qualitative analysis' results .............................................................. 22

Figure 2: Proposed Conceptual Model of Client Perceived Value and Satisfaction in

Business-to-Business Professional Tax Services in Vietnam ............................................... 25

Figure 3: Conceptual Model of Client Perceived Value and Satisfaction in Business-to￾Business Professional Tax Services in Vietnam ................................................................... 39

Figure 4: Regression results: Factors having impacts on Perceived Service ......................... 43

Figure 5: Summary ofthesis results .................................................................................... 47

lV

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

Chapter 1: Introduction

1.1 Research background

In the intensively competetive landscape of the world's economy in general and

Vietnamese' in specific, almost all industries have faced many challenges and difficulties.

The professional tax consultant service industry is not an exception. In order to gain

competitive advantage, service firms today are required to deliver superior client value (Flint,

Woodruff and Gardial, 2002). Value has been linked to loyalty, increased profits, long term

survival and competitive advantage (Khalifa 2004; Woofruff 1997; Hamel and Prahalad

1994; Day and Wensley 1988). However, the definition of value is often vague and the

interpretation might be very different between the client and the service provider due to

different perspectives. This might be the reason why many scholars state that 'how" clients

interpret value is more important than 'how' service providers believe what value is supposed

to be (Blois, 2004). This concept is further complicated when studying professional services,

which are more complex and intangible than regular services, meaning clients often have

difficulty in confidently evaluating performance outcome (La, Patterson and Style, 2009).

Understanding clients' view of value which links to the comprehension of clients' perceived

performance is a one of critical success factors for almost of the firm especially professional

firms. La, Patterson and Style (2009) find significant strong positive relationship from

performance that completely mediates the relationship to satisfaction through value to

satisfaction in professional business-to-business services.

Professional tax services are professional services provided by professional tax firms

whose staff- tax consultants- are experts in tax law. Together with the growth of economy

and the complex of many types of business and transactions, tax law become more

complicated than ever, especially in emerging countries where there are frequent changes in

tax regulations and practices. Professional tax services advise or consult clients based on

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

interpretation of the most updated tax law and experience on current practices which many

clients do not have inside their organizations. Therefore, except the company with extremely

simple financial affairs, the others are about to seek to appoint a firm to provide tax services.

1.2 Research problem

In line with the difficult economic environment as well as the growth in both quality

and quantity of many professional tax service firms in Vietnam, clients have more choices to

satisfy their needs. The competition in this industry becomes fiercer. Thus, almost these firms

more focus on how client perceives the firm's service performance and value which is proved

having connections to client satisfaction that in turn should be the ultimate goal of all firms

(Morgan et al, 2005).

In recent years, substantial research has examined the client perceived performance,

client perceived value (and its determinants) in business-to-business professional services.

Research has also found empirical support for the relationship between client perceived

performance and client satisfaction through value (La, Patterson and Style, 2009). In addition,

previous research show the evidence indicating that client satisfaction in turn connects to

repurchase, loyalty, and willingness to maintain a long-term relationship with the service

provider (Iacobucci et al., 1994; Athanassopoulos et al., 2001 ). Consequently, many

researchers desire to examine the determinants of client perceived performance and to

confirm the relationship between client perceived performance and client satisfaction through

value in various professional services in particularly. However, most of the research has

focused on examine antecedents of value and what value means as well as what impacts on

client satisfaction in business-to-consumer professional services using Parasurama (1985 and

1988) and Gronroos (1984)measurement model and its dimensions. Little research has been

devoted to examine client perceived value and client satisfaction in business-to-business

professional services sector. Currently, researchers have made some recent attempts to

2

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

Master thesis

investigate and develop alternative B2B specific scales in some specific industries such as

engineering consultant, software, etc. The most significant contribution to this era has been

the conceptual model for client-perceived value and satisfaction in an international

perspective in developing economies developed by La et al. (2009).

1.3 Research objectives

Given the unique characteristics of the professional tax services which are provided

on a basis of tax regulations and current practices, a study focus on examining client

perceived value and client satisfaction in professional tax services sector applying La et al.' s

(2009) conceptual model would be useful for both practitioners and researchers. Since the

level of development of tax regulations and practices are different among countries, this study

specifically focus on business-to-business professional tax services in Vietnam.

Further to the above discussion, this study aims to obtain following objectives:

1) To examine the antecedents of client perceived performance;

2) To test the effect of client perceived performance to client perceived value in

professional tax services in Vietnam;

3) To test the effect of client perceived value to client satisfaction with

professional tax services in Vietnam; and

4) To explore factors/ situations (moderators) leading to the different influence of

these factors to client perceived service in the context of Vietnam.

1.4 Scope of the research

Initially, the qualitative analysis will be conducted to confirm whether the factors

having significant effect to client perceived performance and client perceived value as well as

the factors/ situations leading to the different influence of these factors to client perceived

performance and value in La et al.'s (2009) conceptual model are applicable in professional

tax services in the context of Vietnam. Through this process, the analysis is expected to

3

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com

•

Master thesis

identify factors that reflect the unique characteristics of the professional tax service in

Vietnam.

Then, data for quantitative analysis are collected to confirm the identified factors and

their moderators. The sampling frame for this study was clients of tax consultant firms in Ho

Chi Minh City where most of the largest tax consultant firms place their offices. Their clients

can spread from Da Nang to Ca Mau and are engaged in various industries.

1.5 Significance ofthe research

This thesis attempts to confirm the applicability of La et al.' s (2009) conceptual

model are applicable in professional tax services in the context of Vietnam. It is expected that

this model will be further modified to reflect the reality of the professional tax services in

Vietnam through qualitative analysis to confirm/ disconfirm the applicability of the factors/

relationship and/or introduce of new factors/ relationship relative to client perceived

performance, value and satisfaction. Then quantitative analysis is conducted to provide

empirical evidence to strengthen the results of qualitative analysis. It endeavors to expand the

concept of value and satisfaction in business-to-business professional tax services in the

context of Vietnam. This is the first research representative is in the context of Vietnam that

is a theoretical contribution to the research on value and client satisfaction from an Asian

behavior perspective.

In addition, the research aims to provide managerial implications. This finding is

expected to help professional tax firms understand deeply about the factors having significant

effect to client perceived performance and value in a client's perspective such as technical

skills, interpersonal skills, customer orientation, relationship with tax authority, and

reputation. Based on this understanding and finding, professional tax firms can have further

actions to address client's need and more improve the level of customer satisfaction. In

addition, exploring the factor leads to different influence of factors having significant effect

4

LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com