INTRODUCTION
BACKGROUND OF THE RESEARCH
Dong Nai province comprises 11 administrative units, including Bien Hoa City, which serves as the political, economic, and cultural hub, alongside Long Khanh Town and nine districts: Long Thanh, Nhon Trach, Vinh Cuu, Trang Bom, Thong Nhat, Dinh Quan, Tan Phu, Cam My, and Xuan Loc Covering an area of 5,097.1 km², Dong Nai is home to over 2.56 million residents, with 33.23% living in urban areas and 66.73% in rural settings The provincial People's Committee operates through a network of 35 organizations that offer various free and cost-effective services.
The government, as a large organization, serves various customers including citizens, businesses, and public and private employees Through its agencies, departments, and ministries, it delivers essential information and services tailored to each group Consequently, the effectiveness of these services can only be accurately assessed by the customers themselves.
Service quality is a critical aspect of organizational performance in the public sector, where the primary output is services rather than profit Public organizations fulfill various roles, including facilitator, pace setter, and socio-economic developer, highlighting the importance of delivering high-quality services to meet community needs.
Customers ultimately determine the quality of products, services, and information In the private sector, managers focus on customer loyalty and retention, while in the public sector, citizens and businesses often have no choice but to engage with various organizations, even when their services are inefficient.
Administrative procedures at government agencies in Vietnam, especially in Dong Nai, are cumbersome and complex, negatively impacting the management effectiveness of the Dong Nai People’s Committee across district and local levels.
Currently, there is a significant increase in public complaints regarding delays in action and service delivery by Vietnamese public organizations (Dong Nai Department of Internal Affairs, 2006) Major newspapers have reported on these grievances, reflecting widespread dissatisfaction with the quality of services provided As a result, customer expectations are not being met, leading to a perception of low service quality This issue is particularly concerning for taxpayers, who anticipate receiving quality services in return for their contributions (Thanh, 2009).
The Dong Nai Department of Internal Affairs has implemented a single window mechanism to streamline administrative procedures; however, its effectiveness in enabling the Dong Nai People’s Committee to oversee and inspect these processes remains limited As a result, issues such as bureaucracy, corruption, and the unprofessional behavior of officials persist, leading to public frustration and diminishing trust in government transparency.
In the context of bureaucracy and plodding reform, Dong Nai People’s Committee must have an appropriate strategy in order to monitor and manage the public service
This study serves as a practical guideline for the leaders of Dong Nai People's Committee to enhance the quality of public services, particularly in administrative and transport sectors, to better meet customer needs and increase satisfaction The findings will provide a clear understanding of the components of service quality that influence customer satisfaction Additionally, the comparison between public administrative and transport services will identify specific determinants tailored to each context, offering valuable practical implications.
RESEARCH PROBLEM
Local authorities in Dong Nai are implementing innovative strategies to capture community feedback, including local area forums and citizens' juries Additionally, many authorities are conducting market research surveys to gather valuable data on current customer satisfaction levels with various services.
Since gaining independence in 1975, Vietnam's public sector has experienced significant transformations, shifting from a focus on productivity and efficiency to becoming a facilitator and regulator of private sector economic functions Despite these changes, there has been a notable lack of emphasis on the implementation of service quality within public services, highlighting a gap in quality schemes that needs to be addressed.
12 | P a g e becoming an integral part of public-service management, their impact on service delivery remains largely unknown (Robinson, 2003)
Recent research on service quality has predominantly focused on a dimensional approach, with the SERVQUAL scale developed by Parasuraman et al (1985, 1988) being a key measurement tool that defines quality as the difference between perception and expectation In contrast, Cronin and Taylor (1992, 1994) introduced SERPERF, which measures service performance based solely on perception Despite its widespread application across various industries, SERVQUAL has faced significant criticism.
2009) However, SERVQUAL and SERPERF were designed as generic measures of service quality and applied in cross industries, not for any specific field
Measuring service quality and customer satisfaction in the public sector is a critical focus for authorities Despite the challenges in assessing customer satisfaction in public services, recent studies indicate that service quality significantly influences customer satisfaction In Vietnam, there is growing interest among researchers in exploring the relationship between these two concepts However, there is a lack of studies that adapt the SERVPERF model to effectively identify and measure the dimensions of service quality impacting customer satisfaction, resulting in limited generalizability of findings.
This study examines the relationship between the nine dimensions of service quality, as identified by Parasuraman et al (1985), and customer satisfaction within the public sector, specifically focusing on public administrative services and public transport services By analyzing these dimensions, the research aims to elucidate their impact on customer satisfaction and to compare the relationships between the two sectors A comprehensive literature review will provide a detailed exploration of these concepts.
RESEARCH OBJECTIVES
According to above discussion, this study is formulated to obtain following objectives:
(1) To test the impact of 9 dimensions (tangibility, reliability, responsiveness, competence, courtesy, credibility, access, communication, and understanding the customer) (Parasuraman et al 1985) on customer satisfaction
(2) To explore the differences effect of the 9 dimensions on customer satisfaction between two types of public service (public administrative service and public transport service).
RESEARCH METHOD
The research procedure consists of two stages: a pilot study conducted using qualitative research methods, followed by a main survey that employs quantitative research techniques.
In qualitative research, the aim is to clarify concepts and interpret measurement scales within the public service context from the customer's perspective Adjustments are made to enhance the effectiveness of these scales The focus-group interview technique, known for its ability to provide historical context and enrich information through participant interaction, was utilized in this study (Donald & Pamela, 2006) This approach was instrumental in gathering background information, interpreting existing research, and generating new ideas for modifying and adding components Participants included individuals who had used public services in Dong Nai province within the past three years The findings from this qualitative research led to modifications of the measurement scales before their application in the subsequent quantitative survey.
In a quantitative research study conducted in Vietnamese, a survey was designed to assess the impact of the nine SERVQUAL dimensions (Parasuraman et al., 1985) on customer satisfaction regarding service quality in both public administrative and public transport services in Dong Nai province A total of 230 customers participated, with 120 providing feedback on public administrative services and 110 on public transport services, all of whom had engaged with these services within the past three years Participants were randomly selected to complete the survey, which was distributed through various methods including in-person collection, mail, and online platforms Customer responses were measured using a five-point Likert-type scale.
“strongly agree” (5) to “strongly disagree” (1) Customers rated the level of service quality and their satisfaction within the past three years.
The assessment of measurement scales' reliability and validity was conducted through Cronbach’s alpha and exploratory factor analysis Subsequently, multiple regression analysis was employed to interpret the results from both managerial and statistical perspectives, as outlined by Hair et al (2010).
RESEARCH STRUCTURES
This research is organized into five key chapters: the introduction presents the study's context, followed by a literature review and the formulation of hypotheses The methodology and data analysis are detailed in the third chapter, while the fourth chapter outlines the research results Finally, the discussion, implications, and conclusion are encompassed in the last section of the study.
This chapter presents the research background, research problem, research objectives, research method, and research structure
This chapter provides a comprehensive review of existing literature on service quality and customer satisfaction within the public sector It also establishes a conceptual framework and formulates relevant research hypotheses.
Chapter 3 Research methodology and Data analysis
This chapter presents about the method and research design used in the current study to
This study investigates the interplay between nine dimensions of service quality and customer satisfaction in public services within Dong Nai province, specifically comparing public administrative services and public transport services The research employs a mixed-methods approach, integrating both qualitative and quantitative research methodologies to gather comprehensive insights.
This chapter outlines the analysis of collected data, focusing on the assessment of reliability and validity through Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will also examine the hypotheses related to customer satisfaction and the influence of demographic variables The chapter is structured into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the evaluation of demographic impacts on customer satisfaction.
This chapter reiterates the thesis goal outlined in the introduction, highlighting the link between the thesis findings and their practical applications through proposed managerial strategies It also addresses key limitations that should be acknowledged and suggests directions for future research Consequently, the chapter is structured into three main sections: conclusion, managerial implications, and limitations of the study along with recommendations for future research.
LITERATURE REVIEW
INTRODUCTION
This chapter reviews existing literature on service quality and customer satisfaction within the public sector, establishing a conceptual framework and formulating relevant research hypotheses.
LITERATURE REVIEW
Public services are inherently linked to state provision, as noted by the Central Institute for Economic Management (CIEM, 2006) The term "public services" derives from the concept of public commodities, which possess unique natural characteristics: they are non-excludable, meaning no one can be prevented from using them once available; one person's consumption does not diminish another's; and they cannot be discarded, existing regardless of individual desire for consumption Public commodities are further classified into pure public commodities, which meet all these criteria, and impure public commodities, which do not.
1998) At first, the definition of “public services” is to present the activities of impure public commodity supply, firstly used in the Europe after World War II Nowadays, the
18 | P a g e conception of “public service” has been remarkably extended, depending on various approaches
Public service is defined as the activities undertaken by state agencies to fulfill their administrative management functions and ensure the provision of essential services to meet the common needs of society This perspective emphasizes the role and responsibilities of the state in delivering public services It views public service as the supply of essential goods and services, provided by either the state or private sector, to benefit society and communities as a whole (Curry et al, 1998).
In Vietnam, Article 22, the Law on Governmental Organization (2001) stated:
Ministries and governmental agencies are responsible for managing industries and public services across the nation, highlighting the state's proactive role in providing these services to the community However, this does not imply that the state holds a monopoly on service provision Instead, the state can collaborate with the private sector to share the responsibility of delivering essential public services, such as healthcare, education, and water supply.
Certain essential services, such as vaccination, firefighting, and water drainage, are often overlooked by the private sector due to their lack of profitability or insufficient resources to provide them These services are crucial for community welfare and are best managed by the state, which holds the capacity and responsibility to ensure their availability Additionally, while services like education, healthcare, electricity, and clean water can be offered by the market, they may lead to inefficiencies, social inequality, and monopolistic practices that harm consumers and society as a whole Therefore, it is the state's duty to either directly supply these services or regulate private markets to uphold the basic rights of the people (Kearsey et al, 1998).
Public services encompass a variety of types, yet they all aim to address the common needs and interests of society The state holds the responsibility for ensuring the provision of these services Even when certain services are delegated to the private sector, the state maintains a regulatory role to guarantee fair access and to address market deficiencies.
Public services are essential activities that fulfill the fundamental needs of society, either directly provided by the state or delegated to the private sector, to ensure social order and equality.
According to the report of CIEM (2006), classification of the public services includes:
- The range of public services: the range of public services varies depending on institutions of different countries, different periods regarding people living standards in
The relationship between economic development levels and public services varies significantly across countries, making it impractical to apply a uniform standard globally For instance, Canada recognizes 34 types of public services, encompassing areas such as national defense, security, and socio-economic policies like job creation and healthcare Similarly, Sweden emphasizes decentralized public services at different governmental levels, focusing on providing free welfare services, including unemployment benefits and social allowances Overall, health care and education are universally valued by nations, reflecting their importance in societal development.
A board coverage of public services as mentioned is a common trend of development in long term, but in immediate term, it is just proper to nations at a high development level
For low-development countries like Vietnam, it is crucial to prioritize the state's role in serving society by focusing on essential public services that address the urgent needs of the population, ensuring their stability and safety A key step is to distinguish public service activities from administrative functions, as outlined in government policies, to eliminate subsidy mechanisms, streamline the state apparatus, and harness societal resources This approach aims to enhance the quality of public services provided to the people.
Public services can be categorized based on various criteria, including the nature of the services and their forms According to the CIEM report (2006), these services can be classified into three main categories: those directly supplied by the state, those provided by state-owned enterprises, and those offered by non-governmental organizations and the private sector Additionally, the report delves deeper into the types of public services by examining their nature and the effects they produce.
Public administrative services are essential functions of state management designed to meet the needs of citizens These services include direct actions such as issuing permits, certifications, registrations, notarizations, visas, and maintaining resident records In certain countries, however, public administrative services may encompass activities that fall outside the traditional scope of public services.
In Vietnam, some researchers also share this viewpoint.)
Public non-productive services encompass essential social welfare activities that benefit the community, including healthcare, education, culture, science, physical training, sports, insurance, and social security These services are primarily managed by government entities and organizations, with some aspects being partially socialized.
Public interest services are essential economic activities conducted by enterprises to meet state requirements and serve the community, including water and electricity supply, environmental sanitation, and social infrastructure Most of these services are provided by state-owned enterprises, particularly in urban areas for utilities like water, electricity, transportation, and postal services However, in some localities, private sector involvement is evident in areas such as waste collection, environmental sanitation in small cities, and pure water supply in rural regions.
2.2.1.3 MAJOR CHARACTERISTICS OF PUBLIC SERVICES
According to a paper of CIEM (2006) there are some major characteristics of public service:
Public services prioritize community interests and aim to promote social equality and stability, demonstrating that economic gains and profits are not the primary motivations behind their existence.
Public services are designed to meet the needs of all citizens equally, regardless of their social class or status This commitment to equitable access ensures that everyone can benefit from state-provided services, reflecting the principles of wise publicism.
Public services are unique offerings provided by the state or designated organizations and individuals, designed to meet the needs of society as a whole These services encompass both tangible and intangible products, distinguishing them from standard commodities.
RESEARCH METHODOLOGY AND DATA ANALYSIS
INTRODUCTION
This chapter outlines the research design and methodology employed in the study, which investigates the connections between nine dimensions of service quality and customer satisfaction in public services within Dong Nai province Additionally, it compares these relationships between public administrative services and public transportation services.
Chapter 3 also mentions about the procedure to analyze the data collected Accordingly, the process includes test of Cronbach’s alpha coefficient of reliability, EFA by SPSS software.
RESEARCH PROCEDURE
The research procedure consists of two stages: the initial pilot study, which employs qualitative research methods, followed by the main survey that utilizes quantitative research techniques This process is visually represented in Figure 3.1.
In qualitative research, the goal is to elucidate concepts and interpret measurement scales within the context of public service from the customers' perspective To strengthen the scales' effectiveness, necessary adjustments are made The focus-group interview technique, recognized for its ability to gather historical insights and foster interactive discussions, proves invaluable in enriching research findings (Donald & Pamela, 2006).
This research aims to provide a comprehensive understanding of public service experiences in Dong Nai province by interviewing individuals who have utilized these services within the past three years The insights gained from these qualitative findings will inform the modification of measurement scales, ensuring they are tailored for the subsequent quantitative survey.
In a quantitative research study conducted in Vietnamese, a survey was designed to assess the impact of the nine SERVQUAL dimensions (Parasuraman et al., 1985) on customer satisfaction regarding service quality practices The study aimed to compare experiences within the public administrative and public transport services in Dong Nai province A total of 230 customers participated, with 120 providing feedback on public administrative services and 110 on public transport services, all of whom had interacted with these services in the past three years Participants were randomly selected to complete the survey, which was collected either in person or via mail Responses were measured using a five-point Likert-type scale, ranging from "strongly agree" to "strongly disagree."
(5) to “strongly disagree” (1) Customers rated the level of service quality and their satisfaction within the past three years.The conceptual model consists of 10 components with 38 items
MEASUREMENT SCALE
The measurement scale for service quality in the public sector was adapted from Parasuraman et al (1985) and refined through qualitative research, resulting in 38 items Additionally, the customer satisfaction scale, derived from Taylor and Baker (1994), consists of 3 items tailored for the public service context Both scales utilize a five-point Likert format, ranging from 1 (strongly disagree) to 5 (strongly agree).
The bureaus have up-to-date equipment
Their physical facilities are visually appealing
The appearance of the bureau’s physical facilities is in keeping with the type of services provided
The staff in bureaus are well dressed and appear neat
When the staff in bureaus promise to do something by a certain time, they do so
When customers have problems, they are sympathetic and reassuring
They provide their services at the time they promise to do so
They keep their records accurately
The staff in bureaus tell customers exactly when services will be performed
You always receive prompt service from the staff in bureaus
They are always willing to help customers
They have never been too busy to respond to customer requests promptly
Comp1 The staff in bureaus have enough knowledge to answer questions
They have enough knowledge and skill to handle document from customer
The staff are supported by the bureaus to complete their work
The staff in bureaus have willing attitude
They are polite and courtesy
Customers can trust the staffs in bureaus Customers feel safe when working with the bureaus
Personality of the staff in bureaus make customers feel trustful
Prestige of the bureaus make customers feel trustful
Customers can easily ask for instruction to use service through telephone
It does not take long waiting time for customers to be served
The bureaus are in good location and easy to get there
The bureaus working hour is convenient for customers
The staff in bureaus explain clearly their services to customers
The bureaus provide fee table to for their service
The staff in bureaus ensure that all queries and complaints from
The bureaus always pay attention to each customer
The staff in bureaus always care for each customers
They understand clearly customers’ requirements
They realize their frequent customers
They always consider customer benefit top priority
In general, I am pleased with quality of public service
Quality of public service has been improved significantly in recent times
Public service outcome meet my demand.
QUALITATIVE PILOT STUDY
Qualitative research aims to clarify concepts and interpret measurement scale items from the customer's perspective, allowing for necessary modifications to enhance the scale's effectiveness This process also opens avenues for generating new ideas and items that can improve the research model and measurement scale For details on the measurement scale utilized in qualitative research, refer to Appendix 3.1.
The technique employed was the individual interview The participants of interview were the people who have an experience using the public service within the last three years in
The research conducted in Dong Nai province aimed to investigate the perspectives of citizens, identified as the "primary customers" of public services Participants were selected from a list of customers documented by state agencies in Dong Nai, ensuring that they had relevant experiences with the delivery of public services.
The interviewers were chosen from both people using public administrative service and public transport service to ensure the generalization of the opinions
The interview findings revealed a consensus among interviewers regarding the significance of the service quality factors identified in this research's measurement scale, which are essential for enhancing customer satisfaction However, certain items in the scale are deemed unsuitable for the Vietnamese context, particularly concerning the current public transport services in Vietnam, necessitating modifications and additions for better relevance Additionally, the questionnaire wording has been revised to align with the specific types of public services For a detailed qualitative analysis, refer to Appendix 3.2.
RESEARCH RESULTS
INTRODUCTION
This chapter outlines the analysis of the collected data, focusing on the reliability and validity assessed through Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will also test the hypotheses regarding the impact of demographic variables on customer satisfaction The chapter is organized into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the evaluation of demographic influences on customer satisfaction.
DESCRIPTIVE ANALYSIS
Out of 230 distributed questionnaires, 225 were returned, resulting in a response rate of 90.22% Of these, 203 questionnaires were deemed usable, as they contained no more than one missing value and did not consist solely of extreme responses for more than two factors The data was collected from citizens with experience using public services at various State agencies in Dong Nai province, including the Dong Nai People’s Committee, Department of Planning and Investment, Department of Transportation, and Department of Education and Training Among the responses, 27 were incomplete or poorly filled out, leaving 203 valid observations for analysis The sample displayed a diverse range of respondents across different bureaus, genders, ages, service usage frequency, and education levels, as outlined in Table 4.1.
Table 4.1 - Descriptive statistics of the data
High School College Bachelor Master
Using service frequency per month
Once Twice Three times Four times More than four times
The scales were reliability tested by Cronbach‘s Alpha coefficient, refined and validated by Exploratory Factor Analysis (EFA) before using the regression analysis to test research hypotheses.
ASSESSMENT OF MEASUREMENT SCALE
4.3.1 CRONBACH’S ALPHA COEFFICIENT OF RELIABILITY TEST
The results of Cronbach’s Alpha coefficients for each scale are presented as following table 4.3
Table 4.3 - Cronbach’s Alpha coefficients for each measurement scale
Scale Variance if Item Delected
Cronbach’s Alpha if Item Deleted
Tangibles (Tang1 -> Tang4) Cronbach’s Alpha = 812
Reliability (Reli1 -> Reli5) Cronbach’s Alpha = 859
Responsiveness (Resp1 -> Resp4) Cronbach’s Alpha = 836
Competence (Comp1 -> Comp3) Cronbach’s Alpha = 767
Courtesy (Cour1 -> Cour3) Cronbach’s Alpha = 914
Credibility (Cred1 -> Cred4) Cronbach’s Alpha = 837
Access (Acce1 -> Acce4) Cronbach’s Alpha = 793
Communication (Comm1 -> Comm3) Cronbach’s Alpha = 779
Understanding Customer (Unde1 -> Unde5) Cronbach’s Alpha = 795
Customer Satisfaction (Sati1 -> Sati3) Cronbach’s Alpha = 844
The study found that all scales demonstrated strong reliability, with Cronbach’s Alpha values exceeding 60 The Competence measure had the lowest Alpha at 767, followed by the Communication scale at 779, while other scales achieved coefficients above 80 Furthermore, the corrected item-total correlations for all scales met the acceptable threshold of greater than 30.
4.3.2 EXPLORATORY FACTOR ANALYSIS (EFA) RESULT
In this phase of the data analysis, we aimed to investigate the dimensions of service quality within the public sector Initially, the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was employed to assess the adequacy of the sample, with a KMO value ranging from 5 to 1 indicating the suitability for Exploratory Factor Analysis (EFA) Furthermore, Bartlett’s Test of Sphericity was conducted to determine if the correlation matrix is an identity matrix; a p-value less than 05 suggests significant correlations among the variables, confirming the appropriateness of applying EFA.
In this survey, the KMO measure of sampling adequacy suggested that the sample was factorable (KMO=.937) and significant value p Tang3) Cronbach’s Alpha = 806
Empathy (Unde1 -> Unde5 and Cour1 -> Cour3) Cronbach’s Alpha = 897
Access (Acce1 -> Acce4) Cronbach’s Alpha = 774
The revised model and hypothesis
The EFA results indicated a revised model comprising one dependent variable and five independent variables, following the exclusion of unsatisfactory items based on Cronbach’s Alpha analysis.
60 | P a g e variables is present as below These replacement variables were entered into the regression equation at the same time And the results are presented in the next section
The revised conceptual model linking with 5 dimensions and customer satisfaction in public sector is shown in Figure 4.1
Figure 4.1 The revised conceptual model
H1 Tangible has a positive effect on customer satisfaction
H2 Reliability has a positive effect on customer satisfaction
H3 Competence has a positive effect on customer satisfaction
H4 Access has a positive effect on customer satisfaction
H5 Empathy has a positive effect on customer satisfaction
H6 The impact of 5 dimensions on customer satisfaction toward a public service is affected by the type of public service (public administrative service and public transport service)
HYPOTHESES TESTING
A standard multiple regression analysis was conducted to examine the relationship between independent variables—Empathy, Reliability, Competence, Access, and Tangibles—and Customer Satisfaction To assess the correlation between these variables, Pearson correlations were utilized (refer to Table 4.8) The findings indicate that the explanatory variables do not exhibit any correlation with one another.
Table 4.8 Results of Pearson Correlations
Empathy Reliability Competence Tangible Access
** Correlation is significant at the 0.01 level (2-tailed)
Std Error of the Estimate
1 777 a 604 593 1.48546 2.032 a Predictors: (Constant), Access, Tangible, Competence, Empathy, Reliability b Dependent Variable: Customer Satisfaction
The results of the standard multiple regression analysis reveal an adjusted R Square of 0.593 and a p-value of less than 0.001, indicating that the selected variables significantly predict customer satisfaction Specifically, four key factors—tangible, competence, reliability, and access—account for 59.3% of the variance in customer satisfaction Among these, tangible has the highest beta coefficient of 0.264, demonstrating its greatest impact on customer satisfaction, followed by competence at 0.189, reliability at 0.178, and access at 0.145 Empathy, while still relevant, shows the lowest contribution with a beta value of 0.038.
Tolerance and VIF values in the Table 4.10 show that do not exist multicollinearity because VIF of all variables are less than 10, and Tolerance of all variables are greater than 0.1
Researcher test histogram and normal probability plot, and they meet the requirement of the regression (see Appendix 4.6)
Table 4.10 Results of Multiple Regression
Standardized Coefficients t Sig Collinearity Statistics
B Std Error Beta Tolerance VIF
Access 145 062 148 2.335 021 498 2.007 a Dependent Variable: Customer Satisfaction
The results of hypotheses testing are presented in Table 4.11
H1 Tangible has a positive effect on customer satisfaction
H2 Reliability has a positive effect on customer satisfaction
H3 Competence has a positive effect on customer satisfaction
H4 Access has a positive effect on customer satisfaction
Empathy has a positive effect on customer satisfaction
H1: Tangible has a positive effect on customer satisfaction
The analysis in Table 4.11 reveals a strong positive relationship between tangible factors and customer satisfaction, with an unstandardized coefficient of β = 264 This significant finding, indicated by a p-value of 000, supports the hypothesis that tangible elements positively influence customer satisfaction.
H2: Reliability has a positive effect on customer satisfaction
The results of table 4.11 showed that the unstandardized regression weight of the structural path between reliability and customer satisfaction was positive and significant (β = 178; p = 000 < 0.05) Therefore, H2 was supported
H3: Competence has a positive effect on customer satisfaction
The analysis revealed a positive multiple correlation coefficient (β = 189), indicating a significant relationship between competence and customer satisfaction, with a p-value of 016, which is less than the threshold of 0.05 This supports the hypothesis (H3) and confirms that competence positively influences customer satisfaction.
H4: Access has a positive effect on customer satisfaction
According to the Table 4.11 the relationship between access and customer satisfaction was significant (p = 021, β = 145) Therefore H4 was supported It was concluded that access has a positive effect on customer satisfaction
H5: Empathy has a positive effect on customer satisfaction
The results of table 4.11 showed that the unstandardized regression weight of the structural path between Empathy and customer satisfaction was not significant (β = 038; p = 265 > 0.05) Therefore, H5 was rejected
H6: The impact of 5 dimensions on customer satisfaction toward a public service will be affected by the type of public service (public administrative service and public transport service)
The results of testing H6 is presented as below
4.4.2 TESTING MODEL IN PUBLIC ADMINISTRATIVE SERVICE
According to the Figure 4.1, the model construct for public administrative service would be re-written by the formula as follows:
Sati A = β0 + β1Tang + β2Reli + β3Comp + β4Acce + β5Empa + ε
To evaluate the influence of five dimensions on customer satisfaction with public administrative services, a multiple regression analysis was conducted The unstandardized beta coefficients were utilized to assess the effect of the independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—on the dependent variable, Customer Satisfaction.
Table 4.12 Coefficients of the construct for public administrative service
Access 157 087 161 1.791 006 a Dependent Variable: Customer Satisfaction
From the result of Table 4.12, Competence had strong positive effect on Customer satisfaction with β = 216, then Reliability (β = 198), Access (β = 157), and Empathy (β
= 090) while Tangible had no effect on Customer satisfaction with p-value = 225 > 0.05 The regression equation could be re-written as follows:
Sati A = 232 + 101Tang + 198Reli + 216Comp + 157Acce + 090Empa + ε
4.4.3 TESTING MODEL IN PUBLIC TRANSPORT SERVICE
According to the Figure 4.1, the model construct for public transport service would be re-written by the formula as follows:
Sati T = β0 + β1Tang + β2Reli + β3Comp + β4Acce + β5Empa + ε
To evaluate the influence of five dimensions on customer satisfaction with public transport services, multiple regression analysis will be employed to examine the correlation coefficients The unstandardized beta coefficients will serve to highlight the effect of independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—on the dependent variable, Customer Satisfaction.
Table 4.13 Coefficients of the construct for public transport service
Access 154 093 151 1.649 003 a Dependent Variable: Customer Satisfaction
The findings from Table 4.13 indicate that Tangible factors significantly enhance Customer Satisfaction with a beta coefficient of 311, followed by Reliability at 213 and Access at 154 In contrast, Empathy and Competence show no impact on Customer Satisfaction, with a beta of -.033.
The regression equation could be re-written as follows:
Sati T = 608 + 311Tang + 213Reli + 158Comp + 154Acce - 033Empa + ε
CONCLUSION
This chapter summarizes the hypothesis analysis of the study, utilizing SPSS software for data analysis Descriptive analysis revealed frequencies and percentages, while Cronbach Alpha coefficients confirmed the reliability of the measurement scales Inferential statistics, including correlation and regression analysis, were employed to examine the relationships between independent and dependent variables The findings indicated significant relationships between four variables—tangible, reliability, competence, and access—and customer satisfaction These results align with the theory proposed by Parasuraman et al in Chapter 2, highlighting that customer perceptions of two types of services are influenced by the type of public service, specifically public administrative and public transport services.
CONCLUSION AND IMPLICATION
INTRODUCTION
This chapter revisits the thesis objectives outlined in the introduction, highlighting the relationship between the research findings and their practical applications through proposed managerial strategies It also addresses key limitations of the study and suggests avenues for future research Consequently, the chapter is organized into three sections: conclusion, managerial implications, and limitations of the study with recommendations for future exploration.
DISCUSSION OF FINDINGS
The research is carried out with a sample of 203 citizens who are working or living in Dong Nai province Citizens was drawn from different social classes with a response rate 90.3 percent
H1: Tangible has a positive effect on customer satisfaction
Tangibles refer to the physical aspects of a service, including decor, ambiance, technology, and equipment, which enhance a public servant's ability to deliver quality services This study highlights that tangible elements, such as modern equipment and visually appealing facilities, are crucial for service bureaus Citizens expect well-maintained physical facilities when utilizing services from state agencies, especially considering the historically poor conditions of many such agencies.
70 | P a g e facilities, so improving the tangibles factor such as the decor, ambience, technology, and equipment that are viewed as contributing to customer satisfaction
H2: Reliability has a positive effect on customer satisfaction
Reliability in public service refers to the ability of public servants to deliver promised services consistently and accurately Key aspects of reliability include consistent performance, dependability, accurate billing, proper record-keeping, and timely service delivery Citizens seek trustworthy public services, as this trust enhances their overall satisfaction and willingness to engage with these services.
H3: Competence has a positive effect on customer satisfaction
Competence in the public sector refers to the essential skills and knowledge required to deliver effective services This encompasses not only the expertise of the service providers but also the operational support personnel and the organization's research capabilities Many citizens recognize that the proficiency of public servants plays a crucial role in enhancing service quality, making competence a significant factor influencing customer satisfaction.
H4: Access has a positive effect on customer satisfaction
Access refers to how approachable and easy it is for the public to contact public servants Key elements include accessible telephone services, minimal waiting times, convenient operating hours, and strategically located service facilities Clearly, individuals prefer to utilize public services in the most convenient manner, making access a significant factor influencing customer satisfaction.
H5: Empathy has a positive effect on customer satisfaction
The study assessed empathy by evaluating efforts to understand customer needs, yet found no significant relationship between empathy and customer satisfaction Key empathy indicators included understanding specific customer requirements, offering personalized attention, and acknowledging regular customers This lack of impact on customer satisfaction may stem from the perception that such empathetic service is a standard expectation in public services, particularly in administrative and transportation sectors, where understanding customer needs is viewed as a basic service quality.
H6: The impact of 5 dimensions on customer satisfaction toward a public service will be affected by the type of public service (public administrative service and public transport service)
According to Table 4.12 and 4.13, it could conduct to the following results:
In public administrative services, tangible factors do not significantly influence customer satisfaction, as indicated by a p-value of 225, which is greater than 0.05 Conversely, in public transport services, tangible elements have a strong positive effect on customer satisfaction, with a p-value of 001 Tangibles encompass physical environments, modern equipment, and personal appearances, which are particularly important in the transport sector Customers of public transport, such as daily bus commuters, often prioritize the quality of facilities, as these aspects can directly impact their sense of safety and the reliability of service, highlighting the need for consistent maintenance and frequency of buses.
The study reveals that reliability significantly influences customer satisfaction in public services, with p-values of A < 0.05 and T < 0.05, and coefficients showing β A = 198 and β T = 213 Notably, users of public transport services rated reliability higher than those using public administrative services Key reliability factors include timely service delivery, accurate and prompt billing, and dependable staff in resolving service issues.
The analysis reveals that competence significantly influences customer satisfaction in public administrative services, with a beta coefficient of β A = 216 and a p-value of p A = 027, indicating a strong relationship In contrast, competence does not appear to impact customer satisfaction in public transport services, as shown by a beta coefficient of β T = 158 and a p-value of p T = 231 This suggests that citizens highly value the necessary skills and knowledge required for effective service delivery in the public sector, which positively affects their perception of service quality in administrative services.
Both administrative service customers and transport service customers value the access factor, with significant results indicating p A < 0.05 and p T < 0.05, and β A = 157 being greater than β T = 154 This access factor encompasses the ease of service accessibility via telephone, minimal waiting times, convenient operating hours, and the favorable location of service facilities Notably, users of public administrative services rated this factor slightly higher than those utilizing public transport services.
The study's findings revealed a notable disparity in the importance of empathy between public transport and administrative services In the context of public transport, empathy was found to have no significant relationship with customer satisfaction, as indicated by a p-value of 0.549, which exceeds the 0.05 threshold Conversely, the administrative service sector demonstrated a statistically significant correlation between empathy and customer satisfaction, with a p-value of 0.035, suggesting that customers using these services place greater emphasis on empathetic interactions.
Empathy include the level of learning the customer’s specific requirements; providing individualized attention; recognizing the regular customer.
MANAGERIAL IMPLICATIONS
The study revealed that not all dimensions of service quality positively influence customer satisfaction, with the exception of the "Empathy" factor, which was found to have no significant effect on customer satisfaction in public services.
Tangible elements significantly influence customer satisfaction, making it essential for managers to prioritize their enhancement in operations This includes maintaining decor, creating a welcoming ambience, and ensuring the availability of advanced technology and equipment, all of which contribute to a public servant's capacity to deliver high-quality services.
Competence plays a crucial role in customer satisfaction, making it essential for managers to engage more with their staff By fostering interaction and providing training courses, managers can enhance their team's skills and knowledge, enabling them to deliver high-quality services in the public sector.
Reliability plays a crucial role in enhancing customer satisfaction, making it essential for managers to prioritize this aspect when delivering service quality Key elements include ensuring services are completed on time, issuing accurate and prompt billing, and demonstrating honesty in addressing service issues.
Access significantly enhances customer satisfaction, making it crucial for managers to prioritize this aspect Ensuring that services are easily reachable by phone and minimizing wait times for service can lead to a more positive customer experience.
74 | P a g e convenient hours of operation; convenient location of service facility
Research shows that the impact of five dimensions on customer satisfaction varies between public administrative services and public transport services Customers of public transport prioritize tangible aspects, prompting managers to enhance facilities, including comfortable seating and efficient travel times In contrast, empathy significantly influences customer satisfaction in public administrative services, where maintaining a friendly demeanor and understanding customer needs is crucial Therefore, public administrative service managers should ensure consistent service quality that aligns with customer expectations.
The objectives of the private sector, such as cost reduction and enhancing service quality, are increasingly aligning with those of the public sector This convergence allows public sector management to learn from private sector experiences, particularly in customer orientation and the critical role of service providers in maintaining quality standards Adopting a customer-oriented approach in public service management is vital, as the public often compares the performance of public services to that of private enterprises, highlighting the need to address any disparities in service quality.
Vietnamese public sector and the resulting public dissatisfaction has instigated government legislation to service sector render public service entities to be customer- oriented.
LIMITATION OF STUDY AND FUTURE RESEARCH
This study has several limitations that affect the reliability of its results and limit the generalizability of the findings within the Vietnamese public service It is essential for future research to address these limitations.
One limitation of this research is the use of a convenient sample comprising 203 citizens with experience in public administrative and transport services in Dong Nai over the past three years This sample does not represent the diverse range of customers, suggesting that future studies should consider larger sample sizes to enhance the reliability of the results and enable more accurate generalizations.
In the EFA analysis, several variables were excluded due to low factor loadings (below 0.5), significantly reducing the number of variables associated with each factor and resulting in the complete removal of some factors Consequently, the five dimensions may not effectively measure customer satisfaction Future researchers should identify more suitable variables and conduct a thorough pilot survey to ensure accurate responses from participants.
The public service encompasses a variety of distinct services, each varying in cost to the public and operational requirements This diversity suggests that there are significant differences in how these services are delivered and funded.
76 | P a g e quality of service between those services that are paid for and those that are free of charge This is an issue that warrants further investigation.
CONCLUSION
Globally, the public sector is recognizing the advantages of service-quality programs This study reinforces the established links between five dimensions of service quality and customer satisfaction, emphasizing the importance of customer-oriented strategies to enhance public service delivery Notably, this research is distinguished by its focus on the Vietnamese public service context.
The findings emphasize the crucial impact of employee reliability and competence on enhancing customer satisfaction, aligning with prior research that indicates an employee's attitude towards customers has significant short-term and long-term effects on the organization Additionally, tangible elements, such as decor, ambience, technology, and equipment, play a vital role in shaping customers' perceptions of service quality and satisfaction, reinforcing the importance of these physical characteristics in a service environment.
As customers become more discerning and capable of choosing between private and public services, it is essential for the management strategy of Vietnamese public services to prioritize service quality.
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