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18/09/2017 09:54:13 AM

SERVICE QUALITY, CUSTOMER SATISFACTION AND LOYALTY INTENTION: A CASE STUDY ON TOURISM DESTINATIONS IN DANANG, VIETNAM.

At the recent Asia-Pacific Economic Cooperation (APEC) meeting on energy in Washington DC, USA (2013), Da Nang was the only city in Viet Nam to be recognised as one of the world's 20 low-carbon cities. Da Nang is a destination that tourist simply could not afford to miss. Dovetailed with romantic Han River, featured with the seductive My Khe Beach, and backed by Ba Na Mountain, Da Nang is blessed to be the tourist capital of South Central Vietnam. Attractions such as Hai Van Mountain Range, tropical rain forest on Son Tra Peninsula, Marble Mountain and Fantasy Park are all must-go places in Da Nang. Every year, this beautiful city hosts an international fireworks competition, luring artists and visitors from all over the world to lighten up the sky in one night.

In 2016, the number of international tourists to Danang is estimated to reach 1.66 million  arrivals, rising by 31.6% compares with 2015. The tourism sector has created jobs for about 27,000 people and generated revenues worth an estimated VND16 trillion (US$720 million), a year-on-year rise of 24.7% [1]. Danang aims to turn the city's tourism to leading industry of the local economy from 2016 to 2020 and the city sets a target to reach 8 million tourists, including 2 million foreign visitors and gained VND27.4 trillion ($1.23 billion) in revenue by 2020.

 However, Vietnam as well as Danang has a return rate of just 5% compared to Thailand’s 50% due to poor service quality [2].

Therefore, the measurement of service quality and the evaluation of its impact on the customer satisfaction and destination loyalty intention have been a great concerned topic for academics and practitioners in tourism (Knutson et al., 1990 and J. M. Getty & R. L. Getty, 2003). These studies provided mixed results on the impacts of different service quality dimensions on customer satisfaction and relationship between tourist satisfaction and destination loyalty intention in various regions including Asian countries. However, the application of such frameworks in Danang attractions is still limited. To narrow this gap, my study is conducted to empirically investigate destination service quality in Danang. The main objectives of this study are to measure perceived service quality at Danang destinations and its impact on customer loyalty in which the tourist satisfaction is the temporary variable.

Service Quality and SERVQUAL model

Service quality is meeting or exceeding what customers expect from the service. It was clear to us that judgements of high or low service quality depend on how customers perceive the actual service performance in the context of whay they expected. Therefore, service quality as perceived by customers can be defined as the extent of discrepancy between customers’ expectations or desires and their perceptions (Valarie A.Zeithaml, A. Parasuraman and Leonard L. Berry, 2009). Accordingly, in order to measure service quality, reseacher tried to figure out the gap between customers’ expectation and perception. The majority of the work to date has attempted to use the SERVQUAL (Parasuraman et al. , 1985; 1988) methodology in an effort to measure service quality (Reynoso and Moore, 1995; Young and Varble, 1997; Sahney et al. , 2004). It has five generic dimensions or factors and are stated as follows (van Iwaarden et al. , 2003), such as:

(1) Tangibles . Physical facilities, equipment and appearance of personnel.

(2) Reliability. Ability to perform the promised service dependably and accurately.

(3) Responsiveness . Willingness to help customers and provide prompt service.

(4) Assurance (including competence, courtesy, credibility and security). Knowledge and courtesy of employees and their ability to inspire trust and confidence.

(5) Empathy (including access, communication, understanding the customer). Caring and individualized attention that the firm provides to its customers.

 

SERVQUAL scale (Parasuraman, 1988)

 

Item - Expectation

Item - Perception

1

They should have up-to-date equipment.

XYZ has up-to-date equipment

2

Their physical facilities should be visually appealing.

XYZ's physical facilities are visually appealing

3

Their employees should be well dressed and appear neat

XYZ's employees are well dressed and appear neat

4

The appearance of the physical facilities of these firms should be in keeping with the type of services provided

The appearance of the physical facilities of XYZ is in keeping with the type of services provided.

5

When these firms promise to do something by a certain time, they should do so.

When XYZ promises to do something by a certain time, it does so.

6

When customers have problems, these firms should be sympathetic and reassuring

When you have problems, XYZ is sympathetic and reassuring.

7

These firms should be dependable

XYZ is dependable

8

They should provide their services at the time they promise to do so.

XYZ provides its services at the time it promises to do so

9

They should keep their records accurately

XYZ keeps its records accurately

10

They shouldn't be expected to tell customers exactly when services will be performed.

XYZ does not tell customers exactly when services will be performed.

11

It is not realistic for customers to expect prompt service from employees of these firms.

You do not receive prompt service from XYZ's employees

12

Their employees don't always have to be willing to help customers

Employees of XYZ are not always willing to help customers

13

It is okay if they are too busy to respond to customer requests promptly

Employees of XYZ are too busy to respond to customer requests promptly

14

Customers should be able to trust employees of these firms

You can trust employees of XYZ.

15

Customers should be able to feel safe in their transactions with these firms' employees

You feel safe in your transactions with XYZ's employees.

16

Their employees should be polite

Employees of XYZ arc polite

17

Their employees should get adequate support from these firms to do their jobs well.

Employees get adequate support from XYZ to do their jobs well

18

These firms should not be expected to give customers individual attention.

XYZ does not give you individual attention

19

Employees of these firms cannot be expected to give customers personal attention

Employees of XYZ do not give you personal attention

20

It is unrealistic to expect employees to know what the needs of their customers are

Employees of XYZ do not know what your needs are.

21

It is unrealistic to expect these firms to have their customers' best interests at heart

XYZ does not have your best interests at heart.

22

They shouldn't be expected to have operating hours convenient to all their customers

XYZ does not have operating hours convenient to all their customers.

 

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