Luận văn thạc sĩ UEH relationship between service quality and customer satisfaction in life

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HOCHIMINH CITY

--- oOo ---

LÊ THỊ BÍCH ĐÀO

RELATIONSHIP BETWEEN

SERVICE QUALITY AND CUSTOMER SATISFACTION

IN LIFE INSURANCE SERVICES IN VIET NAM

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – 2012

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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to my research supervisor, Professor

Pham Quoc Hung for his intensive support, valuable suggestions, guidance and

encouragement during the course of my study.

I would like to express my sincere gratitude to all of my teachers at Faculty of

Business Administration and Postgraduate Faculty, University of Econimics

Hochiminh City for their teaching and guidance during my MBA course.

My sincere thanks is extended to Professor Nguyen Dinh Tho, Dr. Tran Ha Minh

Quan, Dr. Nguyen Thi Nguyet Que, Dr. Nguyen Thi Mai Trang, Dr. Nguyen Van

Ngai for their valuable time as members of examination committee. Their

comments and suggestions were of great value for my study.

I would also like to avail this opportunity to express my appreciation to Professor

Nguyen Dong Phong, UEH Board of Directors for creating MBA program in

English and Dr. Tran Ha Minh Quan for his support during the course.

I would like to specially express my thanks to all of my classmates, my friends, and

my colleagues for their support and encouragement.

I sincerely thank the management and staff of AIA Insurance, Prudential, Bao Viet,

Dai-ichi life, Manulife, and ACE Life insurance for contributing to this study.

Last but not least I must express my gratitude to my beloved parents, my husband

Nguyen Ngoc Minh and daughter Minh Anh who have always sacrificed to

encourage and support me during these years of study.

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HOCHIMINH CITY

--- oOo ---

LÊ THỊ BÍCH ĐÀO

RELATIONSHIP BETWEEN

SERVICE QUALITY AND CUSTOMER SATISFACTION

IN LIFE INSURANCE SERVICES IN VIET NAM

MAJOR: BUSINESS ADMINISTRATION

MAJOR CODE: 60.34.05

MASTER THESIS

SUPERVISOR : PROFESSOR PHẠM QUỐC HÙNG

Ho Chi Minh City – 2012

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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to my research supervisor, Professor

Pham Quoc Hung for his intensive support, valuable suggestions, guidance and

encouragement during the course of my study.

I would like to express my sincere gratitude to all of my teachers at Faculty of

Business Administration and Postgraduate Faculty, University of Econimics

Hochiminh City for their teaching and guidance during my MBA course.

My sincere thanks is extended to Professor Nguyen Dinh Tho, Dr. Tran Ha Minh

Quan, Dr. Nguyen Thi Nguyet Que, Dr. Nguyen Thi Mai Trang, Dr. Nguyen Van

Ngai for their valuable time as member of examination committee. Their comments

and suggestions were of great value for my study.

I would also like to avail this opportunity to express my appreciation to Professor

Nguyen Dong Phong, UEH Board of Directors for creating MBA program in

English and Dr. Tran Ha Minh Quan for his support during the course.

I would like to specially express my thanks to all of my classmates, my friends, and

my colleagues for their support and encouragement.

I sincerely thank the management and staff of AIA Insurance, Prudential, Bao Viet,

Dai-ichi life, Manulife, and ACE Life insurance for contributing to this study.

Last but not least I must express my gratitude to my beloved parents, my husband

Nguyen Ngoc Minh and daughter Minh Anh who have always sacrificed to

encourage and support me during these years of study.

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

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ABSTRACT

The present study investigated the subject of service quality and its relationship to

customer satisfaction in the context of life insurance industry service. A study of

238 respondents from six leading life insurance in Viet Nam was conducted in Ho

Chi Minh City. This research, using confirmatory factor analyses, proposes a six

dimensional service-quality instrument consisting of assurance, personalized

financial planning, competence, corporate image, tangibles and technology in life

insurance. A paired “t” test and the cross-tabulation procedure were also carried out

in this study to examine the relationship between service quality and customer

satisfaction. The result from this paper confirmed that the two constructs are

distinct, but are highly correlated, implying that an increase in one is likely to lead

to an increase in another.

Keywords: Service quality, customer satisfaction, confirmatory factor analysis,

measurement, life insurance services.

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TABLE OF CONTENTS

ACKNOWLEDGEMENT....................................................................................................i

ABSTRACT ........................................................................................................................ ii

TABLE OF CONTENTS ..................................................................................................iii

LIST OF FIGURES .......................................................................................................... iv

LIST OF TABLES .............................................................................................................vi

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

1.1 BACKGROUND ........................................................................................................ 1

1.2 RESEARCH PROBLEMS.......................................................................................... 3

1.3 RESEARCH OBJECTIVES ...................................................................................... 6

1.4 RESEARCH METHODOLOGY AND SCOPE......................................................... 7

1.5 STRUCTURE OF THE STUDY ................................................................................ 8

CHAPTER 2: LITERATURE REVIEW ........................................................................ 10

2.1 INTRODUCTION .................................................................................................... 10

2.2 SERVICE QUALITY ............................................................................................... 10

2.3 CUSTOMER SATISFACTION................................................................................ 13

2.4 THE LINK BETWEEN SERVICE QUALITY AND CUSTOMER

SATISFACTION....................................................................................................... .14

2.5. LIFE INSURANCE IN VIET NAM........................................................................ 16

2.6. HYPOTHESIS AND EMPIRICAL MODEL.......................................................... 19

CHAPTER 3: METHODOLOGY ................................................................................... 22

3.1 INTRODUCTION ................................................................................................... 22

3.2 RESEARCH DESIGN ............................................................................................. 22

3.3 VARIABLES MEASUREMENT............................................................................ 22

3.3.1. Scale to measure service quality .................................................................. 22

3.3.2. Scale to measure customer satisfaction......................................................... 25

3.4 PILOT TEST............................................................................................................. 26

3.5 MAIN SURVEY..................................................................................................... 27

3.5.1. Brand selection............................................................................................. 27

3.5.2. Sampling . .................................................................................................... 27

3.5.3. Sample size .................................................................................................. 28

3.5.4. Survey method .... ........................................................................................ 28

3.5.5. Data analysis techniques.............................................................................. 28

3.6 SUMMARY............................................................................................................. 29

CHAPTER 4: EMPIRICAL RESULTS OF THE RESEARCH.................................. 30

4.1 INTRODUCTION ................................................................................................... 30

4.2 CHARACTERISTICS OF RESEARCH SAMPLES .............................................. 30

4.3 SCALES ASSESSMENT ........................................................................................ 33

4.3.1. RELIABILITY TESTING ............................................................................. 33

4.3.2. CONFIRMATORY FACTOR ANALYSIS (CFA)..................................... 33

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4.3.3. CUSTOMER SATISFACTION WITH SERVICE QUALITY .................. 43

CHAPTER 5: CONCLUSIONS, RECOMMENDATIONS AND LIMITATIONS ... 51

5.1 INTRODUCTION. .................................................................................................. 51

5.2 CONCLUSIONS..................................................................................................... 51

5.3 RECOMMENDATIONS......................................................................................... 53

5.4 LIMITATIONS....................................................................................................... 54

REFERENCES................................................................................................................. 56

APPENDIX 1..................................................................................................................... 59

APPENDIX 2..................................................................................................................... 62

APPENDIX 3..................................................................................................................... 63

APPENDIX 4..................................................................................................................... 64

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LIST OF FIGURES

Figure 2.1: Research model ...................................................................................21

Figure 3.1: Research Process ................................................................................23

Figure 4.1: Confirmatory factor analysis (CFA) – the initial model..................36

Figure 4.2: CFA modified model ..........................................................................40

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