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Date Published:
31/03/2022
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Nguyen, T. Q. N., & Huynh, T. K. T. (2022). Determinants of customer satisfaction towards buying fresh foods in supermarkets - A study in Ho Chi Minh City. Journal of International Economics and Management, 22(1), 23-41. https://doi.org/10.38203/jiem.022.1.0040
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Determinants of customer satisfaction towards buying fresh foods in supermarkets - A study in Ho Chi Minh City
Main Article Content
Abstract
The study aims to identify the determinants of customer satisfaction towards purchasing fresh food in the supermarkets in Ho Chi Minh City. By synthesizing and systematizing related studies and applying the model of service quality and customer satisfaction in the retail market, we find that there are five factors impacting customer satisfaction towards buying fresh food in supermarkets. These factors are merchandise, price, physical aspects, supermarket employees, and supermarket policies. The data were collected randomly through online and offline channels from the first half of March 2020 till the end of April 2020. The results from the exploratory factor analysis and multiple regression analysis, using data collected from 261 valid survey responses, show that merchandise has the most powerful effect on customer satisfaction, followed by physical aspect, price, supermarket employee, and supermarket policies. The study indicates that customer satisfaction in buying goods in supermarkets relies on product quality and service quality.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Keywords
Customer satisfaction, Fresh food, Ho Chi Minh City, Supermarket
References
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Bollen, K.A. (1989), Structural equations with latent variables, John Wiley and Sons, Inc., New York.
Chu, N.M.N. and Hoang, T. (2008), Analyzing research data with SPSS Volumes 1 and 2, Hong Duc Publisher, Ha Noi.
Chu, N.M.N. and Pham, T.N. (2013), “Analyzing factors affecting the decision to choose supermarket channels when buying fresh food of consumers in Ho Chi Minh City”, Journal of Development and Integration, Vol. 10 No. 20, pp. 46 - 51.
Coenders, G. and O’Loughlin, C. (2002), “Application of the European Customer Satisfaction Index to postal services. Structural equation models versus partial least squares”, Available at http://www.udg.es/fcee/economia/n4.pdf (Accessed 20 March, 2020).
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Dang, V.M. (2019), “A study of determinants of supermarket service quality - The case of Coopmart supermarket in Vietnam”, Journal of Advances in Economics and Business, Vol. 7 No. 2, pp. 101 - 107. Deloitte Vietnam Company Limited. (2020), “Retail in Vietnam report”, Deloitte Vietnam Company Limited, Vietnam, Available at https://www2.deloitte.com /content/dam/Deloitte/vn/Documents/consumer-business/vn-cb-vietnam-consumer-retail-2020-updated.pdf (Accessed 30 July, 2020).
Do, K.C. and Nguyen, L.T. (2015), “Choice of vegetable buyers choice at markets and supermarkets in Hanoi City”, Journal of Science and Developement, Vol. 13 No. 2, pp. 308 - 315.
Euro Asian research experts. (2018), “Vietnam retail report”, Available at https://www.slideshare.net/hoangduy203/vietnam-retail-report (Accessed 30 March, 2020).
General Statistics Office of Vietnam. (2018), “Area, population and population density by province 2018”, Available at gso.gov.vn (Accessed 27 March, 2020).
Gonzalez-Benito, O., Martinez-Ruiz, M.P. and Molla-Descals, A. (2010), “Retail pricing decisions and product category competitive structure”, Decision Support Systems Journal, Vol. 49 No. 1, pp. 110 - 119.
Hansemark, O.C. and Albinsson, M. (2004), “Customer satisfaction and retention: the experiences of individual employees”, Managing Service Quality: an International Journal, Vol. 14 No. 1, pp. 40 - 57.
Huyen, N.T.T. (2020), “The effect of brand image, perceived quality and brand experience on customer loyalty: an empirical investigation in the telecommunication industry in Vietnam”, Journal of International Economics and Management, Vol. 20 No. 3, pp. 60 - 74.
Jeevananda, D.S. (2011), “A study on customer satisfaction level at hypermarkets in Indian retail industry”, Research Journal of Social Science and Management, Vol. 1 No. 3, pp.1 - 14.
Kotler, P. (2003), Marketing management, Prentice-Hall Publisher, New Jersey.
Le, H.T. (2019), Quality of retail services of some general supermarkets in Hanoi, Doctoral dissertation, Graduate Academy of Social Sciences, Vietnam Academy of Social Sciences, Hanoi, Vietnam.
Lewis, B. and Spyrakopoulos, S. (2001), “Service failures and recovery in retail banking: the customers’ perspective”, International Journal of Bank Marketing, Vol. 19 No. 1, pp. 37 - 48.
Mehta, S.C., Lalwani, A.K. and Han, S.L. (2000), “Service quality in retailing: relative efficiency of alternative measurement scales for different product‐service environments”, International Journal of Retail & Distribution Management, Vol. 28 No. 2, pp. 62 - 72.
Nguyen, D.T. (2011), Scientific research methods in business, Labour Social Publishing House, Hanoi.
Nguyen, D.T. and Nguyen, T.M.T. (2009), Market research, VNU-HCM, Publishing House, Ho Chi Minh City.
Nguyen, T.H., Nguyen, H.M., Phan, C.A. and Matsui, Y. (2014), “The relationship between service quality and customer loyalty in specialty supermarket - Empirical evidence in Vietnam”, International Journal of Business and Economics Research, Vol. 3 No. 5, pp. 178 - 186.
Nguyen, T.M.H. and Nguyen, P.T. (2015), “Factors affecting the consumer decision on choosing a supermarket for purchasing fresh food in Hue city”, Hue University Journal of Science, Vol. 113 No. 14, pp. 41 - 49.
Nguyen, T.M.T. (2006), “Service quality, customer satisfaction and loyalty: a study of supermarkets in HCM city”, Journal of Science & Technology Development, Vol. 9 No. 10, pp. 57 - 70.
Nguyen, T.T.T (2016), “Factors influencing customer satisfaction towards supermarkets in Thai Nguyen City, Viet Nam”, International Journal of Economics, Commerce and Management, Vol. 2 No. 4, pp. 464 - 474.
Rana, S.M.S., Osman, A. and Islam, M.A. (2014), “Customer satisfaction of retail chain stores: evidence from Bangladesh”, Journal of Asian Scientific Research, Vol. 4 No. 10, pp. 574 - 584.
Tabachnick, B.G. and Fidell, L.S. (2001), Using multivariate statistics, Harper Collins, New York.
Tse, D.K. and Wilton, P.C. (1988), “Models of consumer satisfaction formation: an extension”, Journal of Marketing Research, Vol. 25 No. 2, pp. 204 - 212. Tuoi Tre Newspaper. (2019), “Auchan officially left Vietnam, Saigon Co.op took over 18 supermarkets of the French retailer”, Available at https://tuoitre.vn/auchan-chinh-thuc-roi-vn-saigon-co-optiep-quan-18-sieu-thi-cua-nha-ban-le-phap-20190627221442647.htm (Accessed 29 March, 2020).
Vu, T.H., Pham, T.T. and Nguyen, T.H.P. (2018), “Factors influencing the decision to buy fruits and vegetables from supermarket channel of consumers in Nha Trang”, Journal of Science & Technology Development - Economics Law and Management, Vol. 2 No. 4, pp. 22 - 35.
Weerasiri, R.A.S. (2015), “A study on service quality and customer satisfaction of supermarkets in Sri Lanka, Sri Lanka”, Journal of Marketing, Vol. 1 No. 2, pp. 36 - 46.
Azhar, A.R., Salehuddin, M.Z, Saiful, B., Faeez, M., Syaquif, M. and Kamaruddin, Y.B. (2013), “Customer satisfaction with hypermarket fresh food’s characteristics”, Journal of Tourism, Hospitality, and Culinary Arts, Vol. 4 No. 1, pp. 13 - 37.
Beneke, J., Hayworth, C., Hobson, R. and Mia, Z. (2012), “Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: the case of the supermarket shopper”, Acta Commercii, Vol. 12 No. 1, pp. 27 - 43.
Bollen, K.A. (1989), Structural equations with latent variables, John Wiley and Sons, Inc., New York.
Chu, N.M.N. and Hoang, T. (2008), Analyzing research data with SPSS Volumes 1 and 2, Hong Duc Publisher, Ha Noi.
Chu, N.M.N. and Pham, T.N. (2013), “Analyzing factors affecting the decision to choose supermarket channels when buying fresh food of consumers in Ho Chi Minh City”, Journal of Development and Integration, Vol. 10 No. 20, pp. 46 - 51.
Coenders, G. and O’Loughlin, C. (2002), “Application of the European Customer Satisfaction Index to postal services. Structural equation models versus partial least squares”, Available at http://www.udg.es/fcee/economia/n4.pdf (Accessed 20 March, 2020).
Dabholkar, P.A., Thorpe, D.I. and Rentz, J.O. (1996), “A measure of service quality for retail stores: scale development and validation”, Journal of the Academy of Marketing Science, Vol. 24 No. 3, pp. 3 - 16.
Dang, V.M. (2019), “A study of determinants of supermarket service quality - The case of Coopmart supermarket in Vietnam”, Journal of Advances in Economics and Business, Vol. 7 No. 2, pp. 101 - 107. Deloitte Vietnam Company Limited. (2020), “Retail in Vietnam report”, Deloitte Vietnam Company Limited, Vietnam, Available at https://www2.deloitte.com /content/dam/Deloitte/vn/Documents/consumer-business/vn-cb-vietnam-consumer-retail-2020-updated.pdf (Accessed 30 July, 2020).
Do, K.C. and Nguyen, L.T. (2015), “Choice of vegetable buyers choice at markets and supermarkets in Hanoi City”, Journal of Science and Developement, Vol. 13 No. 2, pp. 308 - 315.
Euro Asian research experts. (2018), “Vietnam retail report”, Available at https://www.slideshare.net/hoangduy203/vietnam-retail-report (Accessed 30 March, 2020).
General Statistics Office of Vietnam. (2018), “Area, population and population density by province 2018”, Available at gso.gov.vn (Accessed 27 March, 2020).
Gonzalez-Benito, O., Martinez-Ruiz, M.P. and Molla-Descals, A. (2010), “Retail pricing decisions and product category competitive structure”, Decision Support Systems Journal, Vol. 49 No. 1, pp. 110 - 119.
Hansemark, O.C. and Albinsson, M. (2004), “Customer satisfaction and retention: the experiences of individual employees”, Managing Service Quality: an International Journal, Vol. 14 No. 1, pp. 40 - 57.
Huyen, N.T.T. (2020), “The effect of brand image, perceived quality and brand experience on customer loyalty: an empirical investigation in the telecommunication industry in Vietnam”, Journal of International Economics and Management, Vol. 20 No. 3, pp. 60 - 74.
Jeevananda, D.S. (2011), “A study on customer satisfaction level at hypermarkets in Indian retail industry”, Research Journal of Social Science and Management, Vol. 1 No. 3, pp.1 - 14.
Kotler, P. (2003), Marketing management, Prentice-Hall Publisher, New Jersey.
Le, H.T. (2019), Quality of retail services of some general supermarkets in Hanoi, Doctoral dissertation, Graduate Academy of Social Sciences, Vietnam Academy of Social Sciences, Hanoi, Vietnam.
Lewis, B. and Spyrakopoulos, S. (2001), “Service failures and recovery in retail banking: the customers’ perspective”, International Journal of Bank Marketing, Vol. 19 No. 1, pp. 37 - 48.
Mehta, S.C., Lalwani, A.K. and Han, S.L. (2000), “Service quality in retailing: relative efficiency of alternative measurement scales for different product‐service environments”, International Journal of Retail & Distribution Management, Vol. 28 No. 2, pp. 62 - 72.
Nguyen, D.T. (2011), Scientific research methods in business, Labour Social Publishing House, Hanoi.
Nguyen, D.T. and Nguyen, T.M.T. (2009), Market research, VNU-HCM, Publishing House, Ho Chi Minh City.
Nguyen, T.H., Nguyen, H.M., Phan, C.A. and Matsui, Y. (2014), “The relationship between service quality and customer loyalty in specialty supermarket - Empirical evidence in Vietnam”, International Journal of Business and Economics Research, Vol. 3 No. 5, pp. 178 - 186.
Nguyen, T.M.H. and Nguyen, P.T. (2015), “Factors affecting the consumer decision on choosing a supermarket for purchasing fresh food in Hue city”, Hue University Journal of Science, Vol. 113 No. 14, pp. 41 - 49.
Nguyen, T.M.T. (2006), “Service quality, customer satisfaction and loyalty: a study of supermarkets in HCM city”, Journal of Science & Technology Development, Vol. 9 No. 10, pp. 57 - 70.
Nguyen, T.T.T (2016), “Factors influencing customer satisfaction towards supermarkets in Thai Nguyen City, Viet Nam”, International Journal of Economics, Commerce and Management, Vol. 2 No. 4, pp. 464 - 474.
Rana, S.M.S., Osman, A. and Islam, M.A. (2014), “Customer satisfaction of retail chain stores: evidence from Bangladesh”, Journal of Asian Scientific Research, Vol. 4 No. 10, pp. 574 - 584.
Tabachnick, B.G. and Fidell, L.S. (2001), Using multivariate statistics, Harper Collins, New York.
Tse, D.K. and Wilton, P.C. (1988), “Models of consumer satisfaction formation: an extension”, Journal of Marketing Research, Vol. 25 No. 2, pp. 204 - 212. Tuoi Tre Newspaper. (2019), “Auchan officially left Vietnam, Saigon Co.op took over 18 supermarkets of the French retailer”, Available at https://tuoitre.vn/auchan-chinh-thuc-roi-vn-saigon-co-optiep-quan-18-sieu-thi-cua-nha-ban-le-phap-20190627221442647.htm (Accessed 29 March, 2020).
Vu, T.H., Pham, T.T. and Nguyen, T.H.P. (2018), “Factors influencing the decision to buy fruits and vegetables from supermarket channel of consumers in Nha Trang”, Journal of Science & Technology Development - Economics Law and Management, Vol. 2 No. 4, pp. 22 - 35.
Weerasiri, R.A.S. (2015), “A study on service quality and customer satisfaction of supermarkets in Sri Lanka, Sri Lanka”, Journal of Marketing, Vol. 1 No. 2, pp. 36 - 46.