Department of Business Administration

I-Shou University

Master Thesis

A Study of Customer Satisfaction in Bac Me

Electricity Company

Advisor: Dr. Nai-Chieh Wei

Co-Advisor: Dr. Ngo Phuc Hanh
Graduate Student: Vu Hong Quang
July 2014
 Acknowledgments

Firstly, I would like to express my sincere gratitude to my supervisor Dr. Nai Chieh Wei,
from I-Shou University in Taiwan, and Dr. Ngo Phuc Hanh from Phuong Dong University in
Vietnam for their encouragement and valuable guidance in helping me complete my master
thesis. They spent their time to not only teach me knowledge but also give me advice and
comments on my thesis topic. They taught me very helpful research method which helps me to
finish my thesis. Moreover, They are willing to spend their time to discuss and show me step by
step how to write an professional master thesis Once again, I am thankful to my supervisors Dr.
Nai Chieh Wei and Dr. Ngo Phuc Hanh for knowledge sharing, spirit encouragement, comments
and suggestions throughout the whole writing process of my thesis.

Secondly, I really appreciate my committee members who are professors at I-Shou

University in Taiwan and professors from Electricity University in Vietnam. They gave me
many helpful and valuable comments for my thesis based on their academic knowledge and
research experience.

Thirdly, I would like to give thankfulness to my coursework lecturers, my classmates and

friends for their support and encouragement during my studying time.

Finally, I would like to thank my family for their love, financial support and motivation. I
can’t complete my course and master thesis without their love, encouragement and support.

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 Abstract
Electricity plays very important role in daily life and business as well. Especially, in
modern society where almost devices use electricity to operate. Therefore, the need for
electricity of people has been increasing during these years. There is a fact that, many
Vietnamese electricity capacity can not meet customers’ need, especially in the summer when
the weather is hot. Sometimes, there is electricity cut. Thus it affects to daily life of the people,
even people living in the mountainous areas like Bac Me, Ha Giang province. The study is
conducted to evaluate whether customers satisfied with products and services of Bac Me
electricity company or not. Moreover, it is expected to find factors that affect satisfaction levels
of customers. The study applys quantitative research method. Sample population includes
household and business customers who consuming electricity of Bac Me company.

Data is collected via questionnaire survey in Bac Me district. Data is analyzed by statistic
software SPSS version 20. The result shows that in general customers are satisfied with services
of the Bac Me electricy company.

Key words: Electricity, Customer satisfaction

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 Table of Contents
Acknowledgments ........................................................................................................................... i

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

List of Figure ................................................................................................................................. vi

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

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

1.2 Research purpose .................................................................................................................. 1

1.3 Significance of the research .................................................................................................. 2

Chapter 2 Literature Review ........................................................................................................... 3

2.1 Identification of customers ................................................................................................... 3

2.2 Customer satisfaction ............................................................................................................ 3

2.2.1 Definitions of Customer satisfaction ............................................................................. 4

2.2.2 Related concepts ............................................................................................................ 6

2.2.3 The importance of making customers satisfied ............................................................. 6

2.2.4 The importance of customer satisfaction measurement ................................................. 7

2.2.5 Evolution of Customer Satisfaction Measurement ........................................................ 8

2.2.6 Proposed research models. ........................................................................................... 10

Chapter III: Methodology ............................................................................................................. 12

3.1 Research Framework .......................................................................................................... 12

3.2 Research process ................................................................................................................. 13

3.2.1 Subjects of the study .................................................................................................... 13

3.2.2 Instrument .................................................................................................................... 13

3.2.3 Data analysis ................................................................................................................ 13

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Chapter IV: Analysis and discussion ............................................................................................ 19

4.1 Description analysis results. ............................................................................................... 19

4.2 Reliability analysis .............................................................................................................. 22

4.3 Exploratory Factor Analysis (EFA) .................................................................................... 24

4.4 MODEL VALIDATION .................................................................................................... 27

4.4.1 Convergent validity...................................................................................................... 27

4.4.2 Regression analysis ...................................................................................................... 28

4.4 ANOVA analysis ................................................................................................................ 32

4.4.1 Analysis of variance – Service quality dimensions and Genders ................................ 32

4.4.2 Analysis of variance – Service quality dimensions and Age groups ........................... 33

4.4.3 Analysis of variance – Service quality dimensions and Monthly expenditure groups 34

Chapter V: Conclusions and suggestions...................................................................................... 36

5.1 Research summary .............................................................................................................. 36

5.2 Research implications ......................................................................................................... 37

5.3 Research limitations ............................................................................................................ 38

5.4 Suggestions for future researches. ...................................................................................... 38

References ..................................................................................................................................... 39

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 List of Table
Table 4.1: Percentage of sample population gender ..................................................................... 20

Table 4.2 Type of customers ......................................................................................................... 21

Table 4.3 Percentage of population gender................................................................................... 22

Table 4.4 Reliability analysis........................................................................................................ 23

Table 4.5 An Overview of EFA (Explorary factor analysis ......................................................... 25

Table 4.6 Component matrix of three choosen fators ................................................................... 26

Table 4.7: Correlation matrix between the satisfaction and the 5 service quality factors ............ 27

Table 4.8: Correlation matrix between satisfaction and 5 service quality factors ........................ 29

Model Summary(b) ....................................................................................................................... 29

Table 4.9: Correlation matrix between satisfaction and 5 service quality factors ........................ 29

ANOVA(b) ................................................................................................................................... 29

Table 4.10: Correlation matrix between satisfaction and 5 service quality factors ...................... 30

Table 4.11: Analysis of variance – Service quality dimensions and Genders .............................. 32

Table 4.12: Analysis of variance – Service quality dimensions and Age groups ......................... 33

Table 4.13: Correlation matrix between satisfaction and 5 service quality factors ...................... 35

Table 5.1: summary of demographic discriptive analyis .............................................................. 36

Table 5.2 : Overview result of five dimensions and customer satisfaction .................................. 37

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 List of Figure
Figure. 2.1: Dissatisfied customers complaint behavior (Day and Landon, 1977)......................... 8

Figure 2.2 Proposed research model of factors that influence the satisfaction of the current
customers .............................................................................................................................. 10

Figure 3.1 Research framework .................................................................................................... 12

Figure 4.1 Percentage of population gender ................................................................................. 19

Figure 4.2 Percentage of type of customers. ................................................................................. 20

Figure 4.3 Percentage of monthly electricity expenditure ............................................................ 21

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 CHAPTER I : INTRODUCTION

1.1 Research background

Electricity plays a very important role in daily life and production process. It even
become one of basic needs in modern society where almost devices and machines using
electricity to operate. Especially, when Vietnam became an official member of WTO in
2006, demand for using electricity has been increasing. Income of people has increased
since 2006, therefore people can afford for modern facilities which use electricity. And Bac
Me province is not an exception. The Bac Me electricity company was founded in 1995
which belongs to Ha Giang electricity company.

The Bac Me electricity company produces and distributes electricity to consumers in the
area. The company has 35 educated and skilled employees who can handle and solve
technical and service problems. About the electricity business and electricity products the
company distributed 18,995,560 KWh in 2013. It is over expectation of the company.
Moreover, number of customers is 5,671 while 5145 are household and 526 are businesses.
The number of customers is large, therefore it really needs to do a study to see whether
customers satisfied with products and services of the company or not. If they are not, so
where the problems are.

1.2 Research purpose

When Vietnam joined WTO in 2006, Vietnam market has been open much more than
before. It means that there are more opportunities for foreign investors come and do business
in many field. And electricity industry is not exception. In the future, electricity is not only
belongs to the state. And there is fact now, Vietnam still have to buy electricity from China.
Therefore, it is important to know that whether existing customers satisfied with the products
and serviced provided the company. Moreover, the company also wants to expand the market
and get more customers in the coming time.

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 The study aims to find out whether customers satisfied with the services and products of the
company. Moreover, the study would like to explore to see which factors affecting customers
satisfaction.
Whether the customers satisfied with products and services provided by the company?
What are factors affecting customer satisfaction?

1.3 Significance of the research

The research is expected to provide some implications to improve customers satisfaction
toward products and services of the company. The result from the study will show whether
customers satisfy with existing products and serives of the company or not. Further more, it
is also expected to find out which factors affect level of satisfaction among customers.
Therefore, the company leaders will develop project to improve customer satisfaction.
Because if a customers satisfied with products or services provided by a company, he or she
will prefer to consume products and services of that company.

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 CHAPTER II: LITERATURE REVIEW

2.1 Identification of customers

According to the classic approach, “a customer is the person who buys a product or a service
offered by a business organization.” Once used, the term of “customer” is necessarily clarified
whether it is referring to past, existing, potential, internal and external customers.

Though the above-mentioned definition of “customer” is quite simple.

Firstly, in many cases, the final user of a product or service may not be the purchaser. The
fact that the former may be happy with the product or service but there is something wrong with
the latter or vice versa will make it a hard decision in repurchasing the product or service.

Secondly, in the buying purchasing process, there might be several individuals involved with
different. So, which of them should be the key to measure the satisfaction is a real problem.

Thirdly, in some cases, it is not easy to clearly distinguish between past customers and
current ones. Is he/she considered a current or past customer? These two examples illustrate that
it is necessary for each organization to establish its own definition of “current customer”.

Under the quality approach, customer is defined as the person who is able to assess the
quality of the offered products and services and express his/her satisfaction/dissatisfaction when
his/her expectations are fulfilled or not (Czarnecki, 1999; Dutka, 1995; Gerson, 1993).

2.2 Customer satisfaction

Over many years, customer satisfaction has received a large academic attention and extensive
research has been done in this field. The special importance of customer satisfaction lies in that it
influences future and repeat purchase by word-of-mouth communication and complaint behavior.
Recently, more and more organizations have well recognized the importance of customer
satisfaction. That keeping existing customers is far less costly to winning new ones has been
widely understood in the modern business environment.

By examining post-consumption evaluation, companies can redirect business from

understanding customer satisfaction or dissatisfaction. It makes the competition of enterprises

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more effectively and efficiently(Blackwell et al, 2005).And there have been many researches
showing that there is a strong relationship between customer satisfaction, customer retention and
organizational profitability. Thus, many organizations have set customer satisfaction as the key
goal in operating their business. They have seriously invested in their product/service quality and
their customer service which are the core areas directly contributing to the customer satisfaction.

2.2.1 Definitions of Customer satisfaction

Because the concept of customer satisfaction is new, it is important to be clear on what exactly
the term means.

“There are several aspects of customer satisfaction (Oliver, 1997); such as:
 Satisfaction with events that happen during consumption.
 Satisfaction with final outcome.
 Satisfaction with level of satisfaction received.
 Satisfaction with a product or service.
 Satisfaction with a purchase decision experience.
 Satisfaction with performance attributes.
 Satisfaction with a pre-purchasing experience, etc.,”

And therefore, there are several definitions about customer satisfaction based on different point
of view.

Howard & Sheth (1969) defined that “Within the field of customer behavior study, customer
satisfaction is derived from the actual performance or reward as compared to customer’s
perception”. In this definition, it is necessary to compare what is offered by the organization and
what is perceived by the customer. Another definition was proposed by Swan (1977):
“Satisfaction is defined by two comparisons, the expectation of the product compares with that
of other products, and the sensual difference of the actual performance and expected
performance”. It is clearly that the second definition of customer satisfaction has a broader
aspect than the first one in regarding to a comparison among products themselves.

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 Since then, there have been many other definitions of customer satisfaction based on
different aspects; such as, Churchill & Surprenant (1982) directly defined “Customer satisfaction
is produces under the comparison of pre-purchase expectation and post-purchase experience and
recognition” or Woodside et al (1989) expressed that “Customer satisfaction comes after
product consumption. It is an attitude produced by the experience after the service is received,
and also an evaluation based on customers’ previous experiences”. These two definitions
examined the concept of customer satisfaction under the gap between pre-purchase and post-
purchase or the gap between previous performance and current one.

Whereas, based on the willingness to re-purchase the product or service, customer

satisfaction was defined as “Customers are satisfied when the actual performance exceeded their
expectation, while being dissatisfied when the actual performance did not meet their
requirements. These emotions will translate into the willingness to repurchase” (Cina, 1989).
This definition needs reshaped because in some real cases, it is not always true that the actual
performance exceeds the expectation will result in better satisfaction; for example, many people
find it annoying when their cell phones offer too many unwanted functions that make it operated
complicatedly. And it is not always correct that customers are dissatisfied when the actual
performance does not meet their requirements. For example, a person normally expects owning a
beautiful car to travel around in the cities, however, in fact, he/she cannot afford for it as it is far
too expensive so he/she just buys an “ugly” car which of course, does not meet his/her
requirements about its appearance; one day, in a heavy rain that makes a flood in the area, many
cars but his/her car are broken down due to the water coming into the engines, he/she will be
totally satisfied with the “ugly” car. A better definition was proposed by Oliver in 1997.

According to Oliver (1997), “customer satisfaction was defined as the consumer’s fulfillment
response which is, in fact, a judgment that a product or service provided (or is providing) a
pleasurable level of consumption-related fulfillment, including levels of under- or over-
fulfillment.” In his research, Oliver explained that a consumption-related fulfillment is
considered pleasurable once the consumption gives pleasure, such as better quality, advanced
functions, multi-task, or improves the current states of the product or service. Moreover,
fulfillment is just limited to meeting the customer’s needs and expectation but there are also
over-fulfillment and under-fulfillment. Over-fulfillment is a state of satisfaction to a product or

5
service which provides additional unexpected pleasure; whereas, under-fulfillment is obtained
when the product or service. In some cases, over-fulfillment and/or under-fulfillment can be
result in dissatisfying just because the product and/or service offers too much or too little
compared to the actual needs. This was a psychological approach in defining customer
satisfaction.

There are still many other definitions but the highly recognized one was suggested by Hill
and Alexander (2006) which stated that “Customer satisfaction is a measure of how your
organization’s total product performs in relation to a set of customer requirements”. Customer
satisfaction is in customer’s subjective mind which may or may not fully match with the reality
of the situation. Therefore, customer satisfaction is also referred to how customers perceive the
product or service performed by an organization. People tend to form their attitudes quickly but
change them slowly.

2.2.2 Related concepts

There are a related concepts used along with satisfaction , such as moods, quality, value,
attitude, expectation, performance and loyalty. These concepts are actually differed from each
other and they may have close relationship to satisfaction in various ways. Generally,

“Customer satisfaction can also refer to an expectation-performance discrepancy.

Expectation is a predisposing prediction of, for example, cheap/expensive product,
slow/fast/very fast car, fit/loose/ extremely loose shirt, courteous/discourteous service.”

Another popular concept usually going along with satisfaction is loyalty. Brand loyalty,
formed after satisfactorily usage of a product or service, is a deeply rooted re-patronize the
service in the future.

2.2.3 The importance of making customers satisfied

A well-treated customer is more likely to bring more business by repurchasing, buying more
often, buying more ranges, recommending to others, etc. Moreover, satisfied customers are less
likely to seek for alternatives or substitutes at lower prices from other competitors because they
have a strong belief in that the current supplier is much better than any other in matching their
long-term requirements. It is far more costly to win a new customer than to keep an existing one

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(Hill and Alexander, 2006). Realizing this, more and more organizations have recently given
proper actions to enhance their customer satisfaction and retention.

Satisfied customers are possibly considered as the most effective marketers for a certain
product or service in particular or for a whole organization that offers the product or service. And,
the organization does not pay anything to the “marketers”. Conversely, dissatisfied customers
will not only stop purchasing the product or service but also probably tell many others about
their experience, resulting in a strong shift in the business opportunity from the organization to
its competitors. It is quite difficult to make a customer satisfied but a satisfied customer easily
becomes unsatisfied after just one or two negative situations. There are not many third chances to
take them back.

2.2.4 The importance of customer satisfaction measurement

As discussed in section 2.2.3, customer satisfaction plays a significant role in the
development of an organization and this has been well recognized recently. However, it is a huge
challenge to measure the so-called “customer satisfaction”; because, based on the definitions
mentioned in section 2.2.1, it can be obviously concluded that customer satisfaction is a
subjective and qualitative state and therefore, measuring customer satisfaction must be seriously
considered under the knowledge of the gap between customer expectations and attribute
performance perceptions. Furthermore, the measurement is usually differed from case to case
and requires sampling and statistical analysis.

“Customer satisfaction has become critical issues to various organizations of all types in
understanding, analyzing and improving their business performance. It is now considered as the
most trustworthy source of feedback as it provides enough information about the customers’
preferences and expectations effectively, directly, meaningfully and objectively “(Gerson, 1993).

In general speaking, (Dutka, 1995):

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Figure. 2.1: Dissatisfied customers complaint behavior (Day and Landon, 1977)
 Customer satisfaction measurement may provide business organizations with a full
understanding of customer behavior, and especially identifying and analyzing of
customer expectations, needs, and desires.
 Organization can identify potential market opportunities (segments, consuming taste,
etc.,) through customer satisfaction measurement.
In a market-oriented organization, customer satisfaction is not only one of the most important
outcomes of its core activities but also the most important determinant of future behavioral
intention (Shamdasani and Balakrishnan, 2000; Homburg and Giering, 2001; Gorst et al, 1998;
Oliver, 1999; Fornell et al, 1996; Huber et al, 2001). Satisfaction is resulted from the purchase
and use of a product or service. It has a strong influence on future purchase decision and the
loyalty of the customer (Croin and Taylor, 1992).

2.2.5 Evolution of Customer Satisfaction Measurement

From a social psychology perspective, the Marketing School studied how customer
satisfaction is shaped and how it influences future purchase behaviors (Vavra, 1997).

8
 As a matter of fact, the quality revolution that started in the early 1980s has played an
important role in positioning customer satisfaction as a key issue in business policies and
strategies of many organizations nowadays.

After referring theories of satisfaction, author finds that the SERQUAL scale of Parasuraman
is consistent with project and real estate field which author researches, so author decides to use
this scale for my research.

This project will concentrates on five (5) factors below to provide elements for customers refer
and comment about products and services of Bac Me as their satisfaction with those elements of
products and services of Bac Me.

 Reliability: Ability to perform the promised service dependably and accurately.

 Responsiveness: Willingness to help customers and provide prompt service.
 Assurance: Knowledge and courtesy of employees and their ability to convey trust and
confidence.
 Empathy: Caring, individualized attention the firm provides its customers.
 Tangibiles: Appearance of physical facilities, equipment, personnel, and communication
materials.

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2.2.6 Proposed research models.
From the above reasoning, to conduct inspection of the factor model of service quality that
affects the customer satisfaction of the company, research models and hypothesis of the subject
is proposed:

H1
Reliability
+

Responsiveness H2

+
H3
Assurance Satisfaction
+

Empathy H4

+
Tangibles H5

Figure 2.2 Proposed research model of factors that influence the satisfaction of the current
customers

H1: Reliability has positive relationship with satisfaction, that is, higher reliability greater
satisfaction in quality and vice versa.

H2: The capacity has positive relationships with satisfaction.

H3: Assurance has a positive relationship with satisfaction.

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H4: Empathy has positive relationship with satisfaction.

H5: Vehicles tangibles has positive relationship with satisfaction, that is visible means higher
rated customer satisfaction greater quality and vice versa.

In this model, the factors to be considered are as follows:

Tangible is the concept of equipment to serve customers, infrastructure all about hardware and
software.

Trust is a concept related to information about policies provide products and services of the
company, clearance time, time commitment, problems solved on time

Meet: the concept of business to provide information, resolve recommended, business inquiries
timely and reasonable or not

Service capacity is the capacity to handle electricity problems and customers questions about the
products and services

Empathy: is the concept of staff, board leaders with how business, care, share difficulties, solve
the problems of the business.

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 CHAPTER III: METHODOLOGY

3.1 Research Framework

Reponsiveness

Reliability

Data collection and

Assurance Customer satisfaction
analysis

Tangibility

Empathy

Figure 3.1 Research framework

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3.2 Research process
To examine the hypotheses in the study, quantiatative method is employed to evaluate the
accuracy of these hyphotheses. A questionaire will be designed to collection data from a various
number of customers who is using the products and services of the company. The main purpose
of the questionaire is to emphasize on customer’s satisfaction.

3.2.1 Subjects of the study

The study is to evaluate satisfaction level of customers and factors that affect the satisfaction.
There are about 120-150 customers who will be invited to fill the questionnaire. The chosen
population sample is people who are using products and services of the company. The main
customers of the company is living in Bac Me province, therefore, it is convinient to collect data
by questionnaire. There are several types and purposes of consuming the products and services
provided by the company. However, in this study the main subjects to collect data are
households because of large number of consumers. The result from large population will be more
reliable.

3.2.2 Instrument
To develop a questionnaire which is reasonable and easy to understand, sample questionnaire
will be collected from previous researches to be a reference to edit and adjust to be suitable to the
situation of the company. The participants are expected to be households and businesses who are
using the products and services of the company in the Bac Me province. The questionnaire will
include 30 question items which are divided into two part. The first part contains basic
information such as married status, income, education background so on. And the second part
includes question items which focus on customer satisfaction. The questionnaire applies 5-point
scale which ranges from 1(strongly disagree), 2(Disagree), 3(Neutral), 4(Agree) to 5(Strongly
agree).

3.2.3 Data analysis

After collecting data by questionnaire survey, the software Excel and SPSS will be applied to run
the data and analysis results from the data.

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3.2.3 1 Reliable coefficient Cronbach Alpha

“Reliable coefficient Cronbach Alpha is a statistic test about the closely level of questionnaires
(survey variables) in the scale correlated with each other, but do not indicate which question
need to eliminate and which need to keep. Then, calculating coefficient item-total correlation
will help to eliminate questions do not contribute much for description of measured content
(Hoang Trong, Chu Nguyen Mong Ngoc, 2005). The criteria are used to evaluate reliability of
scale:”

Variables have coefficient item-total correlation is smaller than 0.3 will be eliminated
(Bol E. Hayes, 1998).

The value level of Alpha: Greater than 0.8 is good scale , from 0.7 to 0.8 is usable, from
0.6 or higher can be used in the case research concept is new or a new in research background
(Nunnally, 1978; Peterson, 1994; staler, 1995, quoted from Hoang Trong, Chu Nguyen Mong
Ngoc, 2005). In this study, selecting alpha value of 0.7 or more.

3.2.3.2 Exploratory Factor Analysis (EFA)

“EFA (Exploratory Factor Analysis) method conducts with variables qualify about
reliable coefficient Cronbach Alpha. Principal axis factoring method withPromax Oblique will
reflect structure of data more accurately than Principal components method with Varimax
Oblique. However, for unidirectional scale, Principal components method will be used”
(Gerbing& Anderson, 1988). Therefore in this research, author uses the “Principal Components”
with Varimax Oblique in unidirectional scale (one component) and the “Principal Axis Factoring”
with Promax Oblique in omnidirectional scale (many components) to find representative factors
for variables and stop point when extracting factors have Eigenvalues = 1. Variables must have
factor loading greater or equal to 0.5 (Hair and partner, 1998) and its loading weight in other
factor les than 0.35 (Igbaria et at, 1995). Factor analysis will be implemented by criteria as
following:

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 “Barlett Test: is a statistical test to examine the variables are correlated or not. If this test
has level of statistically significant less than 0.05 is considered as variables are correlated with
each other” (Hair and partner, 1995).

“The measurement for conformity of model KMO (Kaiser - Meyer - Olkin) is a

measurement of the correlation between variables and review the accordance to analyse factor.
Coefficient KMO coefficient has value between 0 and 1. KMO value depends on the sample
size, the average correlations, the variables, and factors. If this ratio is greater than 0.5, the data
is considered to suitable for analyzing factors” (Hair nad partner, 1995).

“Eigenvalue: The sum of the weights of the variables on one factor column, also known
as latent root. It represents the fluctuation which is explained by one factor. Eigenvalue value of
the selected factor must be 1 or higher” (Hair and partner, 1995).

“Coefficient of factor loading: is a single correlated coefficient between variables and

factors. The greater of coefficient, the closer of relationship between variables and factors.”
According to Hair & CTG (1998),” factor loading is criteria to ensure practical significance
(EFA), factor loading greater than 0.3 is considered as reach the minimum, factor loading greater
than 0.4 deem to be important, greater than 0.5 is considered as having practical significance.
Factor loading of survey variables in this research is less than 0.5 will be disqualified.”

3.2.3.3 Regression analysis and test theoretical models

“Regression analysis: Regression analysis is statistical technique which can be used to analyze
relationship between dependent variable and one or more independent variables. Goal of
regression analysis is used independent variable with known value to estimate value of
independent select by researcher.”

Regression analysis should consider the following conditions:

o “Number of observations (sample size) must be greater than the estimated regression
coefficient (= 1 + number of independent variables). With a large sample size (number of valid
samples is 280) so obviously this conditions of research is satisfied.”

o “All the observed values of a variable are not the same, must have at least one distinct
value. Testing research data for result accord with the conditions.”

15
 o “The observed values are given and not random. Because the data is collected according
to personal assession and feeling of customers use service, the research data is given and not
selected randomly. Therefore, research data is fully consistent with this condition.”

o “Multicolinearity: Multicolinearity is a state in which the independent variables are

closely correlated with each other, and it provides for model the information is very similar ad
difficult to separate the effects of each variable. Multicollinearity makes interpretation of the
results may be wrong because it does change the expected signs of the coefficients go with
independent variables, so we have to test the correlation between these variables to ensure no
multicollinearity is occurred. For single regression, not consider this condition.”

The author uses variance inflation factor VIF to test, measure multicollinearity. Variance
inflation factor VIF is as close to 1 as better, VIF is less than 10, there is no multicollinearity
phenomenon. In this research will use the VIF coefficient <= 2 to ensure that multicollinearity
does not happen.

o The standard distribution of residuals: Test the standard distribution of residuals and
variables through 2 coefficients (Skewness and Kurtosis) and can examine through Histogram to
see clearer.

“The skewness coefficient (deviation) measured deviation of the distribution on either side. Left-
skewed distribution (negative skew) when the left tail is longer, and most of the data focused to
the right side of distribution.Right-skewed distribution (positive skew) if the right tail is longer,
and most of the data focused to the left side of the distribution. When right-skewed, skewness
value is positive; when left-skewed, skewness value is negative. The larger of deviation value as
skewness is further to 0 value. With a standard distribution, the deviation is 0.”

The coefficient of kurtosis (kurtosis) measured kurtosis or flat the distribution compared with the
normal distribution (kurtosis is equal to 0). Distribution is kurtosis when kurtosis value is
positive and flat when kurtosis value is negative.
The value of skewness and kurtosis coefficients are in the range from -2 to +2 can consider data
is approximately standard.

o Residual ui is random variable with average equal zero, means E(ui) = 0.

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 o Testing autocorrelation require residuals are not related with each other, using statistical
test Durbin – Watson, through Durbin – Watson coefficient (symbol as d). Value (approximately)
of d = 0: perfect correlation, negative; d = 2: no autocorrelation; d = 4: perfect correlation,
positive. If d has other value, we need to lookup table to find dU and dL and apply the following
testing rules:

0 < d <dL having positive correlation

d L d dU no conclusion

4 - dL< d < 4 havinh negative autocorrelation

4 - dU d  4 - dL no conclusion

dU d  4 - dU no negative or positive autocorrelation

With sample size n and explanatory variable k’ (independent variable), we find value of dL and
dU through checking Durbin – Watson Figure.

(Vu Thieu; Nguyen Quang Dong; Nguyen Khac Minh; 2001)

After processing the regression, need to take care of the following parameters:

o “Adjusted coefficient R2: Reflect accordance level of multivariate regression model. This
coefficient changes from 0 to 1. Because R2 will increase when adding independent variable into
model, using adjusted R2 will be safer when assessing accordance of model. Greater adjusted R2
reflects the accordance of model is higher.” However this accordane is only right with sample
data. To test whether the model can deduce for overall fact or not, we have to check the
accordance of model through testing F.

o “Significance coefficient (sig) in F test (ANOVA test): Testing F to check the accordance
of model with original data. If significance level of testing <0.05, we can conclude regressive
model is in accordance with data, it means there is existence of linearity relationship between
independent and dependent variables (reject hypothesis H0, accept hypothesis H1: there is at least
one beta value different from 0).”

o “Significance coefficient (sig) in t test: based on checking table of regression coefficient,

if sig coefficient <0.05, correlative beta coefficient will be chosen to assess the effects of
independent variables on dependent one.”

17
 o “Regression constant b0: Value of column Y when the line Y = b0 + b1*X1 cut axis Y = 0.
Regression constant refect the effects of all other predictor variables not include in model.”

o “Regressin coefficient bn: Angle coefficient value of variables in the estimated model.
Those coefficients have partial nature because each coefficient not only reflects relationship
between independent variable and dependent variable but also between independent variables”.

o “Beta coefficient: Standardized regression coefficients allow the direct comparision

between variables based on explanatory relationship of them with dependent variables. During
multiple regession analysis, using standardized beta coefficient is given more accurate than
unstandardized regression coefficient bn.”

o “Correlative coefficient r: Reflect relationship between independent and dependent

variables. Sign of correlative coefficient show directioin of this relationship. Value of r may be
varied from -1 to +1.”

o “Coefficient of tolerance and VIF: Be used to measure linearity and multicollinearity,

tolerance value of the variable i (TOLi) is 1- Ri2 with Ri2 is coefficient confirm for estimation of
variable i by other independent variables. When the tolerance value of a variable is smaller, the
more variables are collinear with other independent variables. Similar tolerance coefficient,
variance inflation factor VIF (=1/TOL) also measures linearity and multicollinearity. VIF
coefficient as close to 1 as better and not over 10, there is no multicollinearity phenomenon.”

18
 CHAPTER IV: ANALYSIS AND DISCUSSION
This chapter aims to analyze collected data, and explain the results of the data in order to come
up with conclusions. The data is proccessed, analyzed and transformed via SPSS version 20.

4.1 Description analysis results.

There are 130 questionaires which are conducted and distributed to customers of Bac Me
electricity company in Bac Me district , Ha Giang province. All of the questionaires are
answered and sent back. There is no invalid questionaires.

4.1.1 Demographic discriptive analysis

There are 130 people who participated in the survey by answering distributed questionaires. It
can be seen from the graph that number of male is larger than female. In particular, there are 83
males over 130 which accounts for 63.8%. While there are 47 females which accounts for 36.2%.

Figure 4.1 Percentage of population gender

19
Table 4.1: Percentage of sample population gender
Frequency Percent Valid Percent Cumulative
Percent
Male 83 63.8% 63.8% 63.8%
Valid Female 47 36.2% 36.2% 100.0%
Total 130 100.0% 100.0%

Figure 4.2 Percentage of type of customers.

20
From figure 4.2, it shows that majority of the participants inf the survey are household customers.
This type of customers is main customers of Bac Me electricity company. Therefore, it is very
important to know whether they are satisfying with the services of the company or not.

Table 4.2 Type of customers

Frequency Percent Valid Percent Cumulative Percent

Household 107 82.3 82.3 82.3

Valid Business 23 17.7 17.7 100.0
Total 130 100.0 100.0

Among 130 survey questionaires, there are 107 households and 23 businesses. Percentage of
household participants is over 80%.

Figure 4.3 Percentage of monthly electricity expenditure

21
The percentage of household customers is really high compared to business. Therefore, it is clear
that percentage of participants who pay less than 500,000 VND per month is really high and it
accounts for around 61.5%. Percentage of participants who pay 500,000 to 999,999 VND, 1
million VND to 1.49 million VND, 1.5 to 2 million VND and over 2 million VND per month is
21.5%, 3.8%, 3.8% and 9.2% respectively. Based on results of the survey, almost business
customers are admitted to spend over 1 million VND per month.

Table 4.3 shows range of age of the participants. It shows that there is around 70% of the
company’s customers is middle-age. The range of age from 25 to 45 which accounts for over 80%
of population. And around 20% is for groups from 18-25 and over 45 years old.

Table 4.3 Percentage of population gender

Age Frequency Percent Valid Percent Cumulative Percent

18-25 8 6.2% 6.2% 6.2

25-30 33 25.4% 25.4% 31.5
30-40 37 28.5% 28.5% 60.0
Valid
40-45 36 27.7% 27.7% 87.7
>45 16 12.3% 12.3% 100.0
Total 130 100% 100%

4.2 Reliability analysis

The purpose of reliability analysis is to prove that all the questions which are not answered by
the same respondents. The reliability analysis was proved by the Cronbach's Alpha Internal
Consistency. The Cronbach’s alpha coefficients ranges from 0.00 to 1.00. And Usually, the
Cronbach’s alpha needs to be more than 0.7 to prove that the whole questionnaire has a high
reliability suggested by Nunnally, 1978; Peterson, 1994; Slater, 1995.

Moreover, if Item which is deleted will significantly reduce the Cronbach Alpha reliability
coefficients value, which means that this item should not be deleted. For example, if we delete

22
X1, than the overall reliability index will decrease to 0.952, which is relatively poor than that we
don’t delete it. It means that we better keep X1.

The overral Cronbach’s Alpha is 0.953 which is greater than 0.7. It means that all questionnaires
are reliable. All items are catagorized into 5 dimensions which are tangibility, reliability,
responsibility, assurance and symphathy. The Cronbach’s Alpha for each dimension is 0.871;
0.862; 0.788; 0.860 and 0.828 respectively.

Table 4.4 Reliability analysis

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on N of Items
Standardized Items

.953 .953 24

Item-Total Statistics
Scale Mean if Item Scale Variance if Corrected Item- Squared Multiple Cronbach's Alpha
Deleted Item Deleted Total Correlation Correlation if Item Deleted

x1 88.65 182.680 .554 .609 .952

x2 88.34 181.807 .549 .512 .952
x3 88.18 176.818 .719 .578 .950
x4 88.38 183.928 .483 .480 .953
x5 88.38 180.268 .587 .557 .952
x6 88.42 179.254 .628 .582 .951
x7 88.36 180.093 .671 .591 .951
x8 88.35 182.416 .582 .530 .952
x9 88.32 176.484 .736 .679 .950
x10 88.20 179.867 .637 .514 .951
x11 88.14 180.787 .616 .531 .952
x12 88.21 174.321 .760 .679 .950
x13 88.12 176.568 .724 .602 .950
x14 87.88 179.514 .760 .674 .950

23
x15 88.08 179.792 .686 .608 .951
x16 87.81 180.808 .664 .585 .951
x17 88.19 179.614 .652 .602 .951
x18 88.17 178.359 .655 .595 .951
x19 88.15 171.465 .742 .773 .950
x20 87.98 171.837 .740 .771 .950
x21 88.00 179.705 .698 .651 .951
x22 87.92 179.498 .725 .685 .950
x23 88.08 181.622 .631 .604 .951
y1 88.04 177.247 .697 .655 .951

4.3 Exploratory Factor Analysis (EFA)

In this section, the data was analysed using the exploratory factor analysis (EFA). The EFA
analysis identifies groups or clusters to understand the relationships among variables. An
overview of the factor analysis procedure, methods of extraction, factor structure, naming and
interpretation of factors are discussed in the section.

24
 Table 4.5 An Overview of EFA (Explorary factor analysis

Total Variance Explained

Comp Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared

onent Loadings Loadings

Total % of Cumulative Total % of Cumulativ Total % of Cumulativ

Variance % Variance e% Variance e%

1 11.189 48.649 48.649 11.189 48.649 48.649 6.830 29.698 29.698

2 2.069 8.996 57.645 2.069 8.996 57.645 4.595 19.979 49.677
3 1.053 4.578 62.223 1.053 4.578 62.223 2.886 12.546 62.223
4 .832 3.616 65.839
5 .762 3.312 69.151
6 .684 2.973 72.124
7 .673 2.926 75.050
8 .621 2.701 77.751
9 .589 2.562 80.312
10 .548 2.382 82.694
11 .483 2.100 84.795
12 .440 1.912 86.707
13 .421 1.829 88.535
14 .370 1.609 90.144
15 .357 1.550 91.694
16 .314 1.364 93.058
17 .309 1.345 94.403
18 .279 1.214 95.618
19 .244 1.060 96.677
20 .231 1.006 97.684
21 .215 .937 98.620
22 .183 .794 99.415
23 .135 .585 100.000

Extraction Method: Principal Component Analysis.

According to Hair and Partner, 1998:In order to find representative factors for variables
and stop point when extracting factors have Eigenvalues = 1. Variables must have factor
loading greater or equal to 0.6 and its loading weight in other factor les than 0.35 (Igbaria
et at, 1995) After grouping items, there are 3 factors collected.

25
 Table 4.6 Component matrix of three choosen fators

Rotated Component Matrixa

Component

1 2 3

x1 .103 .383 .738

x2 .202 .630 .223
x3 .571 .411 .272
x4 .025 .657 .336
x5 .156 .451 .647
x6 .320 .774 -.008
x7 .341 .516 .408
x8 .177 .725 .211
x9 .446 .389 .561
x10 .338 .577 .266
x11 .304 .445 .433
x12 .440 .655 .264
x13 .553 .398 .337
x14 .714 .412 .115
x15 .657 .090 .471
x16 .722 .295 .031
x17 .647 .025 .504
x18 .725 .176 .153
x19 .814 .266 .071
x20 .808 .361 -.045
x21 .726 .223 .202
x22 .754 .173 .284
x23 .675 .106 .278

Extraction Method: Principal Component

Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 7 iterations.

The way we assign each X is to compare values (factor loading) in each row, and choose the
largest one which is also greater than 0.6.

26
The biggest loading value usually has to be 0.2 greater than the second biggest loading value,
otherwise it’s difficult to distinguish from these two factors.

After grouping factor, there are 3 factors assigned in which factor 1 includes items as follow: x14,
x15, x16, x17, x18, x19, x20, x21, x22, x23. Factor 2 contains x2, x4, x6, x8 and x12. Finally
factor 3 has x1 and x5. There are some items which are eleminated due to low factor loading for
every factor.

4.4 MODEL VALIDATION

4.4.1 Convergent validity
According to scholars Mathwick, Malhotra and Rigdon (2001) Convergent validity indicates
the strength of the factor loading of each measure which is observed based on its proposed latent
variable. The convergent validity was determined via using correlations between the overall
satisfaction scale and the organisational service quality scale such as tangibility, reliability,
responsiveness, assurance and sympathy). The Pearson‟s correlation coefficient is employed in
order to measure the degree of linear association between two variables. The -1 means perfect
linear negative relationship between two variables and +1 implies perfect positive linear
relationship. Moreover, 0 indicates lack of any linear relationship (Nikoloski et al., 2005: 240-
241). The significance test was run at p<0.01 and p< 0.05 levels of significance.

Then Table 4.7 indicated all correlations were significant at p < 0.01 level of significance, It
means that there are positive associations existing between satisfaction and the organisational
service quality. Therefore, it provides the evidence of convergent validity.

Table 4.7: Correlation matrix between the satisfaction and the 5 service quality factors

Satisfication Tangible Reliability Response Assurance Sympathy

Pearson
Satisfication 1 .845(**) .438(**) .845(**) .867(**) .868(**)
Correlation

27
 Sig. (2-tailed) .000 .000 .000 .000 .000

N 130 130 130 130 130 130

Pearson
.845(**) 1 .376(**) .880(**) .846(**) .841(**)
Correlation

Tangible
Sig. (2-tailed) .000 .000 .000 .000 .000

N 130 130 130 130 130 130

Pearson
.438(**) .376(**) 1 .293(**) .342(**) .350(**)
Correlation

Reliability
Sig. (2-tailed) .000 .000 .001 .000 .000

N 130 130 130 130 130 130

Pearson
.845(**) .880(**) .293(**) 1 .860(**) .862(**)
Correlation

Response
Sig. (2-tailed) .000 .000 .001 .000 .000

N 130 130 130 130 130 130

Pearson
.867(**) .846(**) .342(**) .860(**) 1 .903(**)
Correlation

Assurance
Sig. (2-tailed) .000 .000 .000 .000 .000

N 130 130 130 130 130 130

Pearson
.868(**) .841(**) .350(**) .862(**) .903(**) 1
Correlation

Sympathy
Sig. (2-tailed) .000 .000 .000 .000 .000

N 130 130 130 130 130 130

** Correlation is significant at the 0.01 level (2-tailed).

4.4.2 Regression analysis

It is very important to check validity and reliability. Thus, the study employed multiple
regression model which is proposed by Parasuraman et al., (1988). This model take consideration
all judment of a respondent about services quality of Bac Me electricity company as dependent

28
variables and five service quality factors as independent variables. Thus, the average score for
each dimension is regressed based on the overall service quality score which is withdrawn from
each respondent who took part in the questionnaire survey. The table 4.8 indicates that Adjusted
R2 = 0.826 with significant 0.000. It means that 82.6% of variance in overall service explained
by independent variables. The overall regression model appears to be significant (F = 128.001,
Significant = 0.000) to be shown in the table 4.9. Moreover, the value of Variance Inflation
Factor (VIF) is from 1.193 to 6.588 (within range of cut-off value = 10) indicating that
independent variables is no multi-collinearity. The multiple regression analysis is presented
more details in table 4.7;4.8;4.9.

Table 4.8: Correlation matrix between satisfaction and 5 service quality factors

Model Summary(b)

Change Statistics Durbin-

Std. Error
R Adjusted R Watson
Model R of the
Square Square R Square F Sig. F
Estimate df1 df2
Change Change Change

1 .912(a) .832 .826 .413 .832 128.001 5 125 .000 1.606

a Predictors: (Constant), SYMPATHY, RELIABILITY, TANGIBLE, RESPONSE, ASSURANCE

b Dependent Variable: SATISFICATION

Table 4.9: Correlation matrix between satisfaction and 5 service quality factors

ANOVA(b)
Model Sum of Squares df Mean Square F Sig.

1 Regression 108.969 5 21.794 128.001 .000(a)

Residual 21.964 125 .170

Total 130.933 130

a Predictors: (Constant), SYMPATHY, RELIABILITY, TANGIBLE, RESPONSE, ASSURANCE

b Dependent Variable: SATISFICATION

29
 Table 4.10: Correlation matrix between satisfaction and 5 service quality factors

Coefficients(a)

Unstandardized Standardized
Model t Sig. Collinearity Statistics
Coefficients Coefficients

B Std. Error Beta Tolerance VIF

1 (Constant) -.309 .151 -2.040 .043

TANGIBLE .157 .075 .176 2.093 .038 .183 5.462

RELIABILITY .140 .042 .130 3.310 .001 .838 1.193

RESPONSE .216 .100 .192 2.150 .033 .164 6.104

ASSURANCE .283 .099 .265 2.859 .005 .152 6.588

SYMPATHY .270 .092 .270 2.921 .004 .152 6.588

a Dependent Variable: SATISFICATION

In multiple regression model, the standardized coefficients ( which is known as ß

coefficients) describe the relative importance of each dimension. The coefficients are employed
to make comparison among the contribution of each dimension to the explanation of variance of
the dependent variables within the model. In the study, the dimension with the largest ß
coefficient is considered as the most significant dimension in terms of its influence on overall
service quality perceptions.

Then, The second largest coefficient indicates the second most influential dimension and so
on (Parasuraman, 1988). From the table, it is clear that all five dimensions are significant. The
score of each dimension which is developed based on SERVQUAL model as follow:

30
Tangibility (0.157), Responsiveness (0.216), Reliability (0.140), Empathy (0.270) as well as
Assurance (0.283).

31
4.4 ANOVA analysis
“Analysis of variance (ANOVA) is a collection of statistical models which is applied to
analyze the differences between group means and their associated procedures” (such as
"variation" among and between groups). Moreover, ANOVA is a technique for analysing the
way in which the mean of variables is affected by different types and combinations of factors,
was used (Bewick, Cheek & Ball, 2004: 130). The mean quality scores for each factor are
computed and compared with the help of the ANOVA technique to delve into the discriminatory
power of alternative choices on the measurement scales. Two independent analyses of variances
are conducted.

4.4.1 Analysis of variance – Service quality dimensions and Genders

Firstly, the study do analysis of gender groups of the respondents namely: male, female and
the service quality dimensions, namely: Tangibility, Reliability, Responsiveness, Assurance and
Sympathy. According to the results shown in Table 4.11, there is not any significant difference
existing (Significant >0.05) among the five dimensions and genders.

Table 4.11: Analysis of variance – Service quality dimensions and Genders

ANOVA - GENDER

Sum of Squares df Mean Square F Sig.

Between Groups .116 1 .116 .093 .760

Tangibility Within Groups 165.809 129 1.247

Total 165.926 130

Reliability Between Groups .143 1 .143 .169 .682

Within Groups 112.790 129 .848

32
 Total 112.933 130

Between Groups .024 1 .024 .031 .861

Responsiveness Within Groups 103.309 129 .777

Total 103.333 130

Between Groups .017 1 .017 .019 .890

Assurance Within Groups 114.354 129 .860

Total 114.370 130

Between Groups .206 1 .206 .208 .649

Empathy Within Groups 131.232 129 .987

Total 131.437 130

4.4.2 Analysis of variance – Service quality dimensions and Age

groups
Secondly, the study do analysis between age groups of the respondents namely; 18-25 years,
26-30 years, 31- 39 years, 40-45 years as well as >45 years and the service quality dimensions.
From the Table 4.12 it can be seen that there is only a significant difference exists among the
quality dimensions and age groups. That is Responsiveness with the value equal 0.027. The p
value is < 0.05

Table 4.12: Analysis of variance – Service quality dimensions and Age groups
ANOVA - AGE

Sum of Squares df Mean Square F Sig.

Between Groups 6.988 3 2.329 1.920 .129

Tangibility
Within Groups 158.938 127 1.213

33
 Total 165.926 130

Between Groups .377 3 .126 .146 .932

Reliability Within Groups 112.556 127 .859

Total 112.933 130

Between Groups 6.988 3 2.329 3.167 .027

Responsiveness Within Groups 96.345 127 .735

Total 103.333 130

Between Groups 5.082 3 1.694 2.031 .113

Assurance Within Groups 109.288 127 .834

Total 114.370 130

Between Groups 2.988 3 .996 1.016 .388

Empathy Within Groups 128.449 127 .981

Total 131.437 130

4.4.3 Analysis of variance – Service quality dimensions and Monthly

expenditure groups
Finally, the study does analysis between monthly expenditure groups (Unit: VND) of the
respondents, namely; <500.000, 500.000 – 999.999, 1.000.000 – 1.499.999, 1.500.000 –
2.000.000 as well as >2.000.000 and the service quality dimensions. Table 4.13 shows the result
that that there are three significant differences existing among the quality dimensions and
monthly expenditure groups. They are Responsiveness, assurance and empathy.

34
 Table 4.13: Correlation matrix between satisfaction and 5 service quality factors
ANOVA - MONTHLY EXPENDITURE

Sum of Squares df Mean Square F Sig.

Between Groups 11.060 4 2.765 2.321 .060

Tangibility Within Groups 154.866 126 1.191

Total 165.926 130

Between Groups 6.841 4 1.710 2.096 .085

Reliability Within Groups 106.092 126 .816

Total 112.933 130

Between Groups 7.986 4 1.997 2.722 .032

Responsiveness Within Groups 95.347 126 .733

Total 103.333 130

Between Groups 16.919 4 4.230 5.643 .000

Assurance Within Groups 97.451 126 .750

Total 114.370 130

Between Groups 10.059 4 2.515 2.693 .034

Empathy Within Groups 121.378 126 .934

Total 131.437 130

35
 CHAPTER V: CONCLUSIONS AND SUGGESTIONS

5.1 Research summary

The study aims to evaluate satisfaction level of customers of Bac Me electricity company in Ha
Giang. After designing questionnaires and delivering them to the sample population of 130
people. All of the questionnaires are sent back with validity. Then the data is processed and
analyzed by statistics software SPSS version 20. The data provides an overview about sample
population as follow:

There are 83 respondents who are male while 47 is female

Table 5.1: summary of demographic discriptive analyis

Frequency Percent Valid Percent Cumulative Percent

Male 83 63.8% 63.8% 63.8%

Female 47 36.2% 36.2% 63.8%
Household 107 82.3% 82.3% 82.3%
Business 23 17.7% 17.7% 17.7%
18-25 8 6.2% 6.2% 6.2%
Valid
25-30 33 25.4% 25.4% 25.4%
30-40 37 28.5% 28.5% 28.5%
40-45 36 27.7% 27.7% 27.7%
>45 16 12.3% 12.3% 12.3%
Total 130 100.0% 100.0%

The majority of customers who answered the questionnaire survey is household customers with
107 whereas, the rest 23 customers are businesspeople.

36
The customers with age which ranges from 25-45 accounts for over 80%. And the rest accounts
for about 20%.

Based on table 5.2, it is clear that five dimension factors have significant level with customer’s
satisfaction. Their p values belong to range from > 0.01 and < 0.05. Therefore, In general
customers satisfied with services of the company, and they satisfied with five dimensions factors
which are applied to evaluate customers’ satisfaction.

Table 5.2 : Overview result of five dimensions and customer satisfaction

Unstandardized Standardized
Model t Sig. Collinearity Statistics
Coefficients Coefficients

B Std. Error Beta Tolerance VIF

1 (Constant) -.309 .151 -2.040 .043

TANGIBLE .157 .075 .176 2.093 .038 .183 5.462

RELIABILITY .140 .042 .130 3.310 .001 .838 1.193

RESPONSE .216 .100 .192 2.150 .033 .164 6.104

ASSURANCE .283 .099 .265 2.859 .005 .152 6.588

SYMPATHY .270 .092 .270 2.921 .004 .152 6.588

5.2 Research implications

The model of the study can be applied to other electricity company not only in Ha Giang
province, but also in Viet Nam. The results from the study provide leaders board of Bac Me
electricity company an overview about the level of customer satisfaction. Moreover, satisfaction
is very important factor which convinces the customers to continue to consume products and
services offered by the company. From the result, it might provide suggestions to improve
quality of the services.

37
5.3 Research limitations
The study still have some limitations which should be improved in the future research. The scope
of the study is limited to Bac Me district. Due to the time and budget limitation, the number of
participants for the survey is not high. If the sample population for the study is larger, the result
will be more reliable and valuable. The data is only collected via questionnaire survey, thus the
information is quite general. It should have some interview to have deep information. Moreover,
the study applies quantitative research method. It still have some disadvantages. It is better to
combine some research techniques to have more results. And the study only aim to evaluate
overral satisfaction of the customers. Majority of the sample population is household customers.
It is better to have compare among types of customers such as household versus business to see
whether there is big difference in satisfaction level between these two groups.

5.4 Suggestions for future researches.

In the future, it should have another up-to-date research to evaluate customer’s satisfaction.
Because, business has been changing along with time. The number of customers will increase or
decrease. Moreover, it should have larger sample population to collect and analyze the data. It
will be better to combine with other research method like qualitive research in order to get deep
information.

38
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