The effects of recovery service on customer satisfaction leading to switch intention and word-of-mouth about Vietjet Air, 2022

BỘ GIÁO DỤC VÀ ĐÀO TẠO NGÂN HÀNG NHÀ NƯỚC VIỆT NAM

TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH

LƯƠNG LAN ANH

THE EFFECTS OF RECOVERY SERVICE ON

CUSTOMER SATISFACTION LEADING TO SWITCH

INTENTION AND WORD-OF-MOUTH ABOUT

VIETJET AIR

LUẬN VĂN THẠC SĨ

Thành phố Hồ Chí Minh - Năm 2022

BỘ GIÁO DỤC VÀ ĐÀO TẠO NGÂN HÀNG NHÀ NƯỚC VIỆT NAM

TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH

LƯƠNG LAN ANH

THE EFFECTS OF RECOVERY SERVICE ON

CUSTOMER SATISFACTION LEADING TO SWITCH

INTENTION AND WORD-OF-MOUTH ABOUT

VIETJET AIR

Chuyên ngành: QUẢN TRỊ KINH DOANH

Mã số: 8 34 01 01

LUẬN ÁN VĂN THẠC SĨ

NGƯỜI HƯỚNG DẪN KHOA HỌC:

Tiến sĩ Trần Văn Đạt

Thành phố Hồ Chí Minh - Năm 202…

i

DECLARATION

I declare that the thesis “The effects of recovery service on customer satisfaction

leading to switch intention and word-of-mouth about VietJet Air” is the result of my

own research process. Except for references from other research works as stated in the

thesis, the survey data and the results of the thesis are honest and not yet published in

any research work before.

ii

ACKNOWLEDGE

During my thesis time, I got loads of backings and supportive gestures from numerous

people. This thesis would not have been accomplished without those valuable input,

support, counsel, and advice.

First and foremost, I would like to express my deepest thanks to my instructor – Phd.

Tran Van Dat – lecturer at Banking University of Ho Chi Minh City – for his

believable and unreserved help, valuable advices and recommendation. Thank for his

effort and wide knowledge to make my topic possible, his suggestions, direction and

advices are always highly appreciated and greatly contributing to the success of this

thesis.

I would also like to express my sincere appreciation to the professors and lecturers for

their guidance during my academic years at the University of Banking. The knowledge

and skills that I have learned, have assisted me in the completing of this thesis.

Last but not least, honestly the most supported ones are my family. Words fail me to

express my thankfulness for my parents for their endless love. To all the above, and so

many more, I just simply want to say again “Thank you for all your encouragement,

support, and love”.

iii

ABSTRACT

1. Title

The effects of recovery service on customer satisfaction leading to switch

intention and word-of-mouth about VietJet Air

2. Abstract

Service failures are all too common these days, no matter how good you are,

and recovering from them is a difficulty that many airlines face. If service faults are

not resolved swiftly, revenue and customers may be lost. With low-cost airlines like

VietJet Air, service errors often occur, but it is not focused on recovering. Therefore,

this study has taken the context of the aviation industry in Vietnam, specifically

VietJet Air.

This study aims to understand the influence of key service recovery strategies

including offering apology and compensation on customer satisfaction. From there,

find out the relationship between customer satisfaction and intention to switch and

WOM about VietJet Air. This study uses the main method of quantitative research

with a sample of 260. The research subjects are VietJet Air’s passengers who have

ever faced any service failure such as flight delay, flight cancellation, lost baggage,

and some other problems. Research results supported all the proposed theories in this

article. In particular, the service recovery campaign including apology and

compensation affects customer satisfaction, which is an important contribution in

practical application. Customers who are hurt and generate negative feelings when

experiencing service failures, they will need sincere apologies and adequate

compensation. In addition, the positive influence of customer satisfaction on

conversion intention was also supported in this study. When a passenger is satisfied

with an airline, their intention to use another airline is unlikely to occur, a and positive

word of mouth about the airline will also increase. Nevertheless, this research also had

some limitation, which was highlighted in the body research.

3. Keywords

Service recovery, customer satisfaction, switching intention, WOM, VietJet Air.

iv

TÓM TẮT

1. Tiêu đề

Tác động của phục hồi dịch vụ đến sự hài lòng của khách hàng dẫn đến chuyển

đổi ý định và truyền miệng về VietJet Air.

2. Abstract

Những sự cố về dịch vụ ngày nay đã trở nên quá phổ biến, cho dù chúng ta có

giỏi đến đâu, và việc khắc phục chúng là một khó khăn mà nhiều hãng hàng không

phải đối mặt. Nếu các lỗi dịch vụ không được giải quyết nhanh chóng, doanh thu và

khách hàng có thể bị mất. Với các hãng hàng không giá rẻ như VietJet Air thường sẽ

xảy ra lỗi dịch vụ nhưng lại không được chú trọng khắc phục. Vì vậy, nghiên cứu này

đã lấy bối cảnh của ngành hàng không Việt Nam, cụ thể là VietJet Air.

Nghiên cứu này nhằm mục đích tìm hiểu ảnh hưởng của các chiến lược khôi

phục dịch vụ chính bao gồm đưa ra lời xin lỗi và bồi thường có tác động như thế nào

đối với sự hài lòng của khách hàng. Từ đó, tìm ra mối quan hệ giữa sự hài lòng của

khách hàng và ý định chuyển đổi và WOM về VietJet Air. Nghiên cứu này sử dụng

phương pháp chính là nghiên cứu định lượng với mẫu là 260. Đối tượng nghiên cứu là

những hành khách của VietJet Air đã từng gặp sự cố dịch vụ như chậm chuyến, hủy

chuyến, thất lạc hành lý, và một số vấn đề khác. Kết quả nghiên cứu đã chấp nhận tất

cả các lý thuyết được đề xuất trong bài nghiên cứu này. Đặc biệt, chiến dịch khôi phục

dịch vụ bao gồm xin lỗi và bồi thường ảnh hưởng đến sự hài lòng của khách hàng, là

một đóng góp quan trọng trong việc áp dụng thực tế. Những khách hàng bị tổn thương

và nảy sinh cảm giác tiêu cực khi gặp sự cố dịch vụ, họ sẽ cần lời xin lỗi chân thành và

đền bù thỏa đáng. Ngoài ra, ảnh hưởng tích cực của sự hài lòng của khách hàng đến ý

định chuyển đổi cũng được chỉ ra trong nghiên cứu này. Khi một hành khách hài lòng

với một hãng hàng không, ý định sử dụng hãng hàng không khác của họ sẽ khó xảy ra,

sự truyền miệng tích cực về hãng hàng không đó cũng sẽ tăng lên. Tuy nhiên, nghiên

cứu này cũng có một số hạn chế, điều này đã được nhấn mạnh trong bài nghiên cứu

chi tiết dưới đây.

3. Keywords

Khôi phục dịch vụ, sự hài lòng của khách hàng, ý định chuyển đổi, truyền miệng, VietJet Air.

v

LIST OF SPORTENED WORDS

WOM - word of mouth

CFA - Confirmatory Factor Analysis

vi

CONTENT

CONTENT............................................................................................................................... vi

LIST OF TABLE .................................................................................................................. viii

LIST OF PICTURES............................................................................................................... x

Chapter 1: INTRODUCTION................................................................................................ 1

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

1.2 Research objectives................................................................................................... 5

1.3 Research question...................................................................................................... 6

1.4 Research scope........................................................................................................... 6

1.5 Research method ....................................................................................................... 6

1.6 Research significance ................................................................................................ 7

1.6.1 Theoretical significance ......................................................................................... 7

1.6.2 Practical significance ............................................................................................. 7

1.7 Proposal structure ..................................................................................................... 8

Chapter 2: LITERATURE REVIEWS.................................................................................. 9

2.1 Term and definitions................................................................................................. 9

2.1.1 Definitions............................................................................................................... 9

2.1.2 Theorical model – justice theory .......................................................................... 14

2.2 Previous research .................................................................................................... 15

2.2.1 Global research..................................................................................................... 15

2.2.2 Domestic research................................................................................................. 26

2.3 Research gaps and contribution ................................................................................ 27

2.4 Research hypotheses................................................................................................... 28

2.5 Research model ........................................................................................................... 32

3.1 Research process ..................................................................................................... 35

3.1.1 Qualitative research .............................................................................................. 35

3.1.2 Quantitative research ............................................................................................ 36

3.2 Adjust scale .............................................................................................................. 39

3.3 Data processing method.......................................................................................... 41

3.3.1 Cronbach Alpha Analysis...................................................................................... 41

3.3.2 EFA analysis.......................................................................................................... 42

3.3.3 Confirmatory Factor Analysis – CFA ................................................................... 44

3.3.4 SEM structure ........................................................................................................ 45

Chapter 4: RESULTS AND DISCUSSIONS ...................................................................... 47

4.1 Overview of the research samples.......................................................................... 47

4.2 Crosstabulation........................................................................................................ 54

4.3 Reliability of scale.................................................................................................... 55

4.4 Exploratory factor analysis (EFA)......................................................................... 56

4.5 CFA........................................................................................................................... 58

4.6 Structural equation modeling ................................................................................ 61

4.7 Hypothesises testing ................................................................................................ 63

4.8 Discussion................................................................................................................. 63

Chapter 5: CONCLUSION AND IMPLICATIONS.......................................................... 67

5.1 Conclusion................................................................................................................ 67

5.2 Managerial implications and theoretical contributions....................................... 68

5.2.1 Theoretical contributions ..................................................................................... 68

5.2.2 Managerial implications....................................................................................... 70

5.3 Limitations and Recommendation for Future Studies ........................................ 71

REFERENCES.......................................................................................................................... i

APPENDIX 1: PRE-TEST QUESTIONAIRE................................................................... xiii

vii

APPENDIX 2: BẢNG CÂU HỎI TRƯỚC KHI THỰC HIỆN THU THẬP DỮ LIỆU

CHÍNH THỨC THỰC NGHIỆM ....................................................................................... xiv

APENDIX 3: OFFICAL QUESTIONNAIRE..................................................................... xv

APPENDIX 4: BẢNG CÂU HỎI CHÍNH........................................................................ xviii

APPENDIX 5: DATA – MEAN INDEXES ....................................................................... xxii

APPENDIX 6: DATA – AVE AND CR VALUES ........................................................... xxiii

viii

LIST OF TABLE

Table 1. Service recovery definitions (Source: Author collected)............................................ 9

Table 2. Other service recovery previous research in global................................................... 23

Table 3. Likert scale (5 level) .................................................................................................. 36

Table 4. Collecting data timing (Source: The author) ............................................................. 38

Table 5. “Aplogy” scale........................................................................................................... 40

Table 6. “Compensation” scale................................................................................................ 40

Table 7. “Customer satisfaction” scale .................................................................................... 40

Table 8. “Switching intention” scale ....................................................................................... 41

Table 9. “Word of Mouth” scale.............................................................................................. 41

Table 10. Sample characteristics of gender (Source: SPSS 22 statistics)................................ 47

Table 11. Sample characteristics of age groups (Source: SPSS 22 statistics) ......................... 47

Table 12. Sample characteristics of age groups (Source: SPSS 22 statistics) ......................... 48

Table 13. Occasions that respondents use the airplane the most ............................................. 48

Table 14. Airplane brands that respondents mostly fly with ................................................... 48

Table 15. Repondents’ level educations (Source: SPSS 22 statistics)..................................... 48

Table 16. (AP1). VietJet Air make a public apology immediately.......................................... 49

Table 17. (AP2). Passengers expect aplogies which could show their staff’s sincerity. (Source:

SPSS 22 statistics).................................................................................................................... 49

Table 18. (AP3). The apologies significantly help their customers more reduced anger,

negative impression with VietJet Air. (Source: SPSS 22 statistics)........................................ 50

Table 19. (AP4). An apology from the airline was essential to respondents........................... 50

Table 20. (CP1). VietJet Air has taken appropriate compensation policies to solve the issue.

(Source: SPSS 22 statistics)..................................................................................................... 50

Table 21. (CP2). Providing compensation enhances their customers positive emotions.

(Source: SPSS 22 statistics)..................................................................................................... 50

Table 22. (CP3). When VietJet Air offers compensation, their customers prefer monetary

compensation. (Source: SPSS 22 statistics)............................................................................. 51

Table 23. (SF1). Customers feel pleased with the dealing of the specific event. .................... 51

Table 24. (SF2). When I decided to travel with VietJet Air, I believe I made the proper

choice. (Source: SPSS 22 statistics)......................................................................................... 51

Table 25. (SF3). VieJet Air did all I expected. (Source: SPSS 22 statistics)........................... 52

Table 26. (SF4). Customers felt satisfied with the overall service recovery actions to their

service failures. (Source: SPSS 22 statistics)........................................................................... 52

Table 27. (ST1). Recently, customers have searched and checked product price of other

airline brands. (Source: SPSS 22 statistics)............................................................................ 53

Table 28. In the future, customers will not reduce the frequency travelling VietJet Air have

that had a bad experience. (Source: SPSS 22 statistics) .......................................................... 53

Table 29. (ST3). Customers not require the services of a different airline companies. (Source:

SPSS 22 statistics).................................................................................................................... 53

Table 30. (WO1). Customers will tell friends / family about how the airline solved the

problems they had. (Source: SPSS 22 statistics) ..................................................................... 54

Table 31. (WO2). I am likely to share positive opinions to friends and family about my

overall experience with VietJet Air. (Source: SPSS 22 statistics).......................................... 54

Table 32. (WO3). I am likely to share positive opinions to friends and family about my

overall experience with VietJet Air. (Source: SPSS 22 statistics).......................................... 54

Table 33. On which occasions that each gender chooses the airplane the most? .................... 54

Table 34. Which airplane brands that each gender mostly fly with......................................... 55

Table 35. Reliability Statistics (Source: SPSS 22 statistics).................................................... 55

Table 36. Item-Total Statistics (Source: SPSS 22 statistics) ................................................... 56

Table 37. KMO and Bartlett's Test (Source: SPSS 22 statistics)............................................. 57

ix

Table 38. Total Variance Explained (Source: SPSS 22 statistics)........................................... 57

Table 39. Rotated Factor Matrix (Source: SPSS 22 statistics) ................................................ 58

Table 40. The value of CFA Standardized Regression Weights ............................................. 60

Table 41. The correlation coefficient (Source: AMOSS 24 statistics) .................................... 61

Table 42. Regression Weights (Source: AMOSS 24 statistics)............................................... 63

Table 43: Mean values (Source: SPSS 22 statistics) ............................................................. xxii

Table 44: AVE and CR values.............................................................................................. xxiii

Table 45: Discriminant Validity ........................................................................................... xxiv

Table 46: Gender cross AP1 .................................................................................................. xxv

Table 47: Gender cross AP2 .................................................................................................. xxv

Table 48: Gender cross AP3 .................................................................................................. xxv

Table 49: Gender cross AP4 ................................................................................................. xxvi

Table 50: Gender cross CP1 ................................................................................................. xxvi

Table 51: Gender cross CP2 ................................................................................................. xxvi

Table 52: Gender cross CP3 ................................................................................................ xxvii

Table 53: Gender cross SF1................................................................................................. xxvii

Table 54: Gender cross SF2................................................................................................. xxvii

Table 55: Gender cross SF3................................................................................................. xxvii

Table 56: Gender cross SF4................................................................................................. xxvii

Table 57: Gender cross ST1................................................................................................ xxviii

Table 58: Gender cross ST2................................................................................................ xxviii

Table 59: Gender cross ST3.................................................................................................. xxix

Table 60: Gender cross WO1................................................................................................ xxix

Table 61: Gender cross WO2................................................................................................ xxix

Table 62: Gender cross WO3................................................................................................. xxx