ABSTRACT: For several decades, improving service quality has been considered the best way
to enhance customer satisfaction that leads to increase customer loyalty. However, customer
satisfaction that is viewed as the most important factor to determine customer loyalty, does not always
lead to success. Moving marketing from customer satisfaction orientation to customer value orientation
has recently been being a central issue in service marketing. Given these situations, this study aims to
explore the relationships between service quality, service value and customer loyalty. Its purpose is to
test whether service value should be an alternative to determine customer loyalty beside customer
satisfaction. Results of SEM analysis based on a sample of 308 passengers using airlines service in Ho
Chi Minh City show that there are two factors of service quality with significantly positive impacts on
customer loyalty through such an intermediary as service value.
Key words: Service quality, service value, customer loyalty, domestic airline service, Vietnam.
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TAP CH PHAT TRIEN KH&CN, TAP 14, SO Q2 2011
unresolved and vary across industries (Cronin stay with a provider as long as it offers them
et al., 2000). While Boulding et al. (1993) superior value compared to others (Khalifa,
found the positive relationship between service 2004). Based on the cognitive-based
quality and repurchase intentions and perspective of the value construct, some
willingness to recommend, the study by Cronin authors posit a direct impact of customer value
and Taylor (1992) showed that there was no on behavioral outcome, neglecting the role of
relationship between service quality and satisfaction (Zeithaml, 1988). Customer value
repurchase intentions. The result of Lee and is a significant antecedent of loyalty while
Cunninghams (1996) research in airline customer satisfaction is not (Gan et al., 2006).
industry demonstrated that service quality The critical role of service value toward
positively correlated with customer loyalty. customer loyalty has been mentioned by many
Given this diversifying results, this studies empirical studies (Bolton and Drew, 1991;
proposes and test the relationship between the Sirdeshmukh et al., 2002). However, there is no
service quality and loyalty: general theoretical framework covering all
H1. There is a positive impact of service aspects of customer loyalty (Shan et al., 2003),
quality on customer loyalty towards a service. many scholars indicated that antecedents of
2.4 Relationship between service quality customer loyalty are service quality customer
and service value satisfaction (Cronin et al., 2000; Parasuraman
and Grewal, 2000; Zeithaml et al., 1996).
Zeithaml (1988) indicates that there is a
Given this diversifying results, this study
positive impact of service quality on the
proposes and test the relationship between the
perceived value, and correlates positively with
service value and loyalty:
purchasing decisions. With the emerging of S-
D logic perspective (Vargo and Lusch, 2004), H3. There is a positive impact of service
many researcher consider value as a core value on customer loyalty towards a service.
element in market exchange; service and value 3. METHODOLOGY
are two logically inseparable concepts which The model and hypotheses are tested by
qualify as candidates for the title as the using the data collected fromVietnamese
preeminent marketing concept (Gronroos, passengers who have used domestic airline
2008; Babin and James, 2010). Thus, creation services within 6 months. The survey was
of customer value becomes an important topic conducted by using convenience sampling
that takes many scholars attention. Some method with a structured questionnaire. The
marketing scholars even suggest to change scales measuring the constructs in the model
from creating customer satisfaction to creating were adopted from previous studies with
customer value (Ngo and OCass, 2010). necessary adjustments to accommodate the
Frondizi (1997) argues that if the quality of particular empirical research context (i.e.
service is valued, then it becomes the value domestic airlines services). Measurement
which helps to determine the relationship scales for the two dimensions of service quality
between a particular service and a specific were adjusted from Gronroos scales (1982). A
customer. Although, the impact of service customer loyalty scale was adopted from
quality on service value is increasingly Zeithaml et al. (1996). Measurement scales for
discussed in marketing service (Lee et al., the two components of service value were
2005), few empirical studies have done to adjusted from those developed by Zeithaml
address this relationship (Gallarza and Saura, (1988). These scales (see Table 1), which were
2006). Given these above situations, it is translated into Vietnamese using a translated
proposed that: and back-translated procedure, are five Likert
H2: There is a positive impact of service type. The two translators were university
quality on service value. academics who are fluent in both languages.
2.5 Relationship between service value
and customer loyalty
Loyalty is strongly linked to customer value 4. RESULTS
which is a major contributor to purchase A total of 308 usable questionnaires are
intention (Chang and Wildt, 1994). Customers obtained and used for this study. Data
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TAP CH PHAT TRIEN KH&CN, TAP 14, SO Q2 2011
collection method is convenient sampling with terms. The model fit indices of the full
face-to-face interviews using a structured measurement model with the remaining 17
questionnaire. This sample consists of 55.5% items are as follows: Chi-square=160.726;
male and 45.5% female passengers on three dF=109; p=0.001; Chi-square/dF=1.475;
domestic airlines operating in Vietnam GFI=0.943; TLI=0.965; CFI=0.972;
(Vietnam Airlines, Jetstar Airlines and Mekong RMSEA=0.039. The HOETLER index of 257
Airlines). The age group of 18-25 accounts for is above the threshold value of 200 which
30.8%, of 26-35 is of 35.4%, and 33.7% are indicates that the sample size is large enough
above 35 of age. The monthly incomes of the for the analysis (Byrne, 2001). Consequently,
respondents which lower than 5 million VND the full measurement model fits the data set in
accounts for 51.3% and 48.7% are above 5 this empirical study. The results (Table 1)
million VND. About 68.8% of the respondents showed factor loadings of all items on their
have flied at least twice a year. The majority designate constructs which range from 0.627 to
(69.7%) of the respondents pay air ticket fees 0.830, indicating satisfactory level of
by their own money, the rest get money from convergent validity (Hair et al., 2006). The
their bosses. correlations between constructs ranged from
Exploratory factor analysis (EFA) was first 0.356 to 0.602 which were lower than 0.85,
employed to have preliminary indications of meaning that discriminant validity of all scales
unidimensionality, and construct validity. This were achieved (Kline, 2005). The composite
procedure was carried out in two stages, the reliabilities for constructs ranged from 0.704 to
first was on the individual scales and the 0.832. Generally, the results of CFA indicated
second was on all scales combined. The results that all measurement scales achieved
showed that 1 out of 22 items were eliminated reliability, convergent and discriminate
from the original scales due to low loading. validity.
Then confirmatory factor analysis (CFA) was The structural model was then tested using
conducted, using AMOS software program maximum likelihood (ML) estimation. The
(Arbuckle and Wothke, 1999), on the full results of SEM indicated in a good fit between
measurement model which represent relations the model and data: Chi-square=173.693,
among all constructs and related items. CFA df=113, p=0.000, Chi-square/df=1.537,
results showed that 4 out of 21 items were GFI=0.938, TLI=0.960, CFI=0.967,
eliminated due to high covariance of error RMSEA=0.042.
Table 1. Scale items for all constructs
Loyalty
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TAP CH PHAT TRIEN KH&CN, TAP 14, SO Q2 2011
The results (see Figure 1) showed that of service value, is 0.578 (p =0.010). However,
service value has a significant standardized service quality does not affect on customer
effect on customer loyalty (=0.647, p=0.010). loyalty (=0.057, p=0.679). It indicates a full
Service quality also has a significant mediating model of service quality and
standardized effect on service value (=0.893, customer loyalty via service value. It is, thus,
p=0.010). Moreover, statistics also indicate that concluded that the two hypotheses H2, H3 are
the indirect standardized effect of service supported by the data set in this study, while
quality on customer loyalty, via the mediation hypothesis H1 is not supported.
The results also indicate that two relationships between service value, service
components of Service quality (second-order quality and customer loyalty. The empirical
construct) contribute unequal to this aggregate results show that, service value has a direct
construct. The standardized regression impact on post-purchase states of customers
coefficient of Process quality is 0.889 (p=0.01), customer loyalty. This notices that service
greater than Outcome quality is 0.636 (p=0.01). value is one of the key determinants of
For Service value (second-order construct), the customer attitudes and behavior after
standardized regression coefficients of consuming a service. For two components of
Outcome value and Process value are, service value, outcome value gives higher
respectively, 0.761 (p=0.01) and 0.637 explanation of service value than process value.
(p=0.01). This also indicates the unequal This study also confirms the role of service
contributions of the two components to Service quality as an antecedent of service value, which
value. together explains the level of customer loyalty.
5. DISCUSSION In other words, service quality has indirectly
significant impact on customer loyalty via
This research attempts to empirically
service value. Theoretically this result supports
investigate the role of service value in customer
the four hierarchical levels in customers
decision and choice (Sweeney et al., 1999)
cognitive structure on the service (Zeithaml,
which only few empirical studies have
1988) in which service value is the higher level
investigated its antecedents and consequences
of service quality. Therefore, providing good
(Riadh and Miguel, 2008). In addition, only
service quality to customer would lead to
few researches have tested the relationships
increase customer perceived value and develop
between service quality, service value and
long lasting relationships with them. However,
behavioral intentions (Durvasula et al., 2004).
this study indicates that service quality does not
Therefore, the findings of this research enhance
directly affect customer loyalty. It supports the
the understanding of the increasing importance
findings of Cronin and Taylor (1992).
of service value in inseparable service
Moreover, with the remarkable development of
industries, where the performance of the
Vietnamese airlines industry, passengers can
service requires the participation of customers
choose which airlines that they assess its
(i.e. airlines services). It also empirical test the
service is valuable to them. Consequently,
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TAP CH PHAT TRIEN KH&CN, TAP 14, SO Q2 2011
managers may need to emphasize on both with customers during the service process. In
service quality and service value rather than the case of domestic airlines services in
focusing only on service quality. This notice Vietnam, with an acceptable price setting, it is
totally supports the co-creation value concept difficult to enhance customer loyalty if only
in S-D logic perspective of Vargo and Lusch focusing on improving service quality. It is
(2004). better if the efforts are based on customers
6. CONCLUSION assessment of service value to adapt their
expectations.
This study provides insight in the service
value substituting customer satisfaction to Beside the above contributions of this study,
become a basic framework that customers use it also has a number of limitations that require
to judge the company performance. The results future researches concern. First,
also confirm that solely improving service the generalization of the results is not high due
quality would not help service providers to data collected from only domestic airline
sustain their long term relationship with passengers in Ho Chi Minh City. It should be
customers. Service quality should be see as an conducted for passengers from all regions of
encouraging factor that significant impacts on Vietnam. Second, the results come from a
customer perceived value and leads to survey of one industry, domestic service
customer loyalty. airlines, so it needs to perform for other service
industries (i.e. retailing service, banking
From managerial point of view,
service...) to re-evaluate the results of this
understanding the importance of service value
study. Third, the discussion of whether the
with two components of process and outcome
service value can substitute customer
value in contributing to the overall customer
satisfaction in explaining customer loyalty is
perceived value would help marketers know
only based on a model in which customer
how to improve their performance. This helps
satisfaction factor does not exist. Therefore,
service providers allocate their limited
another model including this factor should be
resources and efforts in delivering service,
undertaken for fully assessment.
communicating service offers, and interacting
TM T T: Trong nhi*u th p k qua, ch2t l9ng d?ch vA 9c xem l cch th3c t t nh2t ) gia
tng lng trung thnh khch hng thng qua vi c lm cho h c-m th2y hi lng. M:c d, s1 hi lng
c5a khch hng 9c xem l y u t quan tr ng nh2t dZn n lng trung thnh c5a h , tuy nhin khi
khch hng hi lng v i d?ch vA khng ph-i lc no h cng trung thnh v i d?ch vA . V th , m$t s
nh nghin c3u * ngh? rRng nn t p trung vo y u t gi tr? d?ch vA m khch hng quan tm thay v
t p trung lm hi lng h . ) ki)m ?nh gi- ?nh trn, nghin c3u ny 9c th1c hi n nhRm xem xt
m i quan h gi a ch2t l9ng d?ch vA, gi tr? d?ch vA v lng trung thnh c5a khch hng. Cc m i quan
h ny 9c ki)m ?nh v i 308 khch hng s dAng d?ch vA hng khng n$i ?a Vi t Nam t#i thnh ph
H0 Ch Minh. K t qu- nghin c3u cho th2y hai thnh phNn ch2t l9ng d?ch vA c -nh h4ng tch c1c
ln lng trung thnh c5a khch hng thng qua y u t trung gian l gi tr? d?ch vA.
Keywords: Ch2t l9ng d?ch vA, Gi tr? d?ch vA, lng trung thnh khch hng, d?ch vA hng
khng n$i ?a, Vi t Nam.
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