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Tiêu đề Customer Loyalty in Vietnam's Hotel Industry: The Role of Service Quality, Customer Satisfaction, Hotel Image and Customer Delight
Tác giả Do Anh Quan
Người hướng dẫn Prof. Nguyen Dong Phong, Dr. Nguyen Phong Nguyen
Trường học University of Economics Ho Chi Minh City
Chuyên ngành Master of Business
Thể loại Thesis
Năm xuất bản 2015
Thành phố Ho Chi Minh City
Định dạng
Số trang 57
Dung lượng 113,5 KB

Cấu trúc

  • ACKOWLEDGEMENT

  • ABSTRACT

  • TABLE OF CONTENTS

  • LIST OF FIGURES

  • LIST OF TABLES

  • Chapter 1 INTRODUCTION

  • 1.1 Background

    • 1.1.1 The crucial role of hotel industry in Vietnam

    • 1.1.2 Benefits of customers loyalty

  • 1.2 Research gap

  • 1.3 Research objective

  • 1.4 Research scope

  • 1.5 Contributions and implications

  • 1.6 Structure of the thesis

  • Chapter 2

  • LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

  • 2.1 Theoretical background

  • 2.2 The hypothesis development and proposed model

    • 2.2.1 Relationship between service quality and customer loyalty

  • H1: Service quality positively affects customer loyalty.

    • 2.2.2 Relationship between customer satisfaction and customer loyalty

  • H2: Customer satisfaction positively affects customer loyalty.

    • 2.2.3 Relationship between hotel image and customer loyalty

  • H3: Image positively affects customer loyalty.

    • 2.2.4 Relationship between customer delight and loyalty

  • H4: Customer delight positively affects customer loyalty.

    • 2.2.5 The proposed model

  • Chapter 3

  • RESEARCH METHODOLOGY

  • 3.1 Measurement scales

  • Customer satisfaction

  • Customer delight

  • Customer loyalty

  • 3.2 Sampling

  • 3.3 Data collection methods

  • 3.4 Data analysis method

    • 3.4.1 Statistical method

    • 3.4.2 Descriptive statistics

    • 3.4.3 Reliability analysis

    • 3.4.4 Exploratory factor analysis (EFA)

    • 3.5.5 Multiple regression analysis

  • CHAPTER 4 DATA ANALYSIS

  • 4.1 Descriptive analysis

  • 4.2 Assessment and refinement of measurement scale

    • 4.2.1 Cronbach’s Alpha

    • 4.2.2 Exploratory Factor Analysis (EFA)

  • 4.3 Pearson Correlations

  • 4.4 Multiple Linear Regression

    • 4.4.1 Test of assumptions

    • 4.4.2 Regression analysis

  • 4.5 Discussion of findings

  • Hypothesis 1: Service quality positively affects customer loyalty.

  • Hypothesis2: Customer satisfaction positively affects customer loyalty.

  • Hypothesis 3: Image positively affects customer loyalty.

  • Hypothesis 4: Customer delight positively affects customer loyalty.

  • CHAPTER 5 CONCLUSION

  • 5.1 Summary of research findingand limitation

  • 5.2 Managerial implications

    • 5.2.1 Implications for hoteliers in Vietnam

    • 5.2.2 Implications for educators in local higher education institutions

    • 5.2.3 Implications for government agencies

  • 5.3 Limitation and further research direction

  • References

Nội dung

Background

ThecrucialroleofhotelindustryinVietnam

Sincet h e e c o n o m i c r e f o r m i n 1 9 8 6 , V i e t n a m h a d a c h i e v e d t h e dramaticd e v e l o p m e n t inallaspectsincludingeconomy,educationandculture.The entryintoA S E A N in1995andWTOin2007brought aboosttothehotelindustryofVietnam,a developingcountrywithfree-market- orientedeconomy.Overthepastyears,theh o t e l industryhasmadestrongdevelop mentandgraduallyintegratesintotheglobald e v e l o p m e n t process.IntheGrantThor ntonVietnam’s“VietnamLodgingIndustry

E x e c u t i v e S u m m a r y o f t h e H o t e l S u r v e y 2 0 1 3 ” i n J u n e 2 0 1 4 , theyr e p o r t t h a t Vietnamwelcomed7,572,352internationalvisitors,increasingby10.6%i ncomparisonwith2012,exceededtheexpected7.2millioninternationaltourista r r i v a l s fortheyear.Togetherwiththat,acombinationofstrongeconomicgrowth,r i si n g incomel e v e l s , a g r o w i n g m i d d l e c l a s s , a s i z e a b l e a n d g r o w i n g youthpopulati on,andincreasingexposuretoWesternlifestylehasfueledtherapidg r o w t h o f t h e l o d g i n g s e c t o r i n V i e t n a m T h e s e c t o r i s e x p e c t e d t o c o n t i n u e t o g r o wi n yearst o comea s t h e governmentc o n t i n u e s t o emphasizet o u r i s m i n t h e i r economicgrowthplans,fromexploringthe“hiddencharm”todeveloping“timelesscharm

”o f t h e country.N o n e t h e l e s s , V i e t n a m isn o t r e a d y f o r a l a r g e i n f l u x o f t o u r i s t s aswellasdomesticsizeableyouthpopulationatthemomentastherear eanumberofconstraintshinderingitsdevelopment,andinnovationsinretainingcus tomersisoneofthemostimportantaspectsthathotelindustryinVietnamshouldmanageeffecti vely.

Tourism plays a crucial role in job creation and economic development in the country With rapid growth in travel, driven by stunning landscapes and friendly locals, the demand for temporary accommodations has surged This emerging market has attracted not only multinational corporations but also local startups, particularly from Viet Kieu entrepreneurs Government and media efforts have educated urban populations, especially in Ho Chi Minh City and Hanoi, making them savvy consumers with diverse lodging options The number of hotels meeting international standards has significantly increased, with 686 new hotels built from 2013 to 2014, according to Grant Thornton Vietnam In this competitive environment, retaining customers has become essential, making it vital for businesses to identify factors influencing customer loyalty and service quality.

Benefitsofcustomersloyalty

KotlerandAmstrong(2001)proposesthatifcompaniesloseacustomer,theym ay l o s e t h e c u s t o m e r t h r o u g h o u t h i s / h e r p u r c h a s i n g l i f e t i m e I t iso b v i o u s t h a t loyaltyhaseffectonfinan cialhealththroughsteadycash- flowandrepeatedcustomers.Patterson(1997)reassuresthispointbystatingthatcompani eswithlargeg r o u p ofloyalclients ca n earnmorese ven pe r c e n t a ge s inprice, asc ustomersa r e l e ss pricesensitive.Furthermore,Chengetal.(2011)andTuetal.

(2011)alsoagreethatc o m p a n i e s w i l l s p e n d a t l e a s t f i v e ton i n e timei n a t t r a c t i n g a n e w c u s t o m e r r a t h e r thanretaininganoldone;andthecompanyprofitcan beincreased25-

85%o nce loyaltyisupbyfivepercenteffectively.Therefore,long- termstrategyshoulde m p h a s i z e o n c u s t o m e r r e t e n t i o n t h a n o b t a i n i n g n e w o n e s i n o r d e r t o r e d u c e t h e ex p en d it u r es onmoneyandtime.Thisstrategywi llbringalong-termorshort-termp r o f i t bymaintainingalong- termrelationshipwithcustomers.Dharmalingametal.

( 2 ) p o s s i b i l i t y o f p a y i n g h i g h e r costforasetofproducts,and(3)actingasaword- of-mouthmarketingagent.T u e t a l

( 3 ) recommendations o n p r o d u c t s a n d s e r v i ce s too t h e r s , a n d ( 4 ) s i n c e r e s u g ge s t i o n s Al t ho u g h t h e argumentsaboutbenefitsofloyaltyareevident, hotelsintheemergingmarketlikeVietnamarestrugglingonhowtocreaterealcommitm entofcustomersi l l u s t r a t t i n g bythemotivationofpurchasingserviceswithoutanyenco uragement.

Inlightoftheaboveobservation,theresearchwillidentifyfactorsthataffectcusto merl o y a l t y inV i e t n a m ’ s h o t e l s e c t o r ; specifically,i t w i l l t e s t t h e p o s i t i v e r e l a t i o n s h i p o f s e r v i c e quality,c u s t o m e r s a t i s f a c t i o n , h o t e l imagea n d customerd e l i g h t onconsumerloyaltyinthementionedcontext.Somerec ommendationsbasedo n thefindingswillbenefitbothhoteliersandeducatorsinVietnam.

Researchgap

Factors influencing customer loyalty in the hotel sector have garnered significant interest from researchers However, due to variations in sample sizes, cultural values, environmental contexts, income levels, and the emotional states of respondents at the time of surveys, a common research model has yet to be established Additionally, the relationships between these variables differ across contexts, with the impact of these factors varying between the hotel and service sectors Limited comparative studies exist between these two sectors, highlighting the need for hoteliers to identify and develop factors that provide long-term competitive advantages Today, drivers of customer loyalty extend beyond tangible offerings to include intangible aspects such as service quality, which significantly enhance brand image and customer satisfaction (Kandampully & Hu, 2007).

( 2 0 1 5 ) o n t h e i r s t u d y a b o u t f a c t o r s ofaffectingguests’satisfactionandloya ltyofVietnam’sluxuryhotelsector,theyaimattestingtheeffectofservicequalityan dhotelimageonthesatisfactionand loyalty.Anotherstudythatsomehowrelatedtoloya ltyisstudyof

TuanandLinh( 2 0 1 4 ) , inwhichtheyshowthepositiverelationshipbetweencustom erserviceands a t i s f a c t i o n ofa5- starhotelinHanoiCity.Fromtheseevidences,itisworthnotingthats t u d y a b o u t 3 - s t a r h o t e l i n V i e t n a m i s n o t easyt o b e f o u n d B e s i d e s , i n t h e competitivema rketlikeinVietnamrecently,hotelsshouldtakeintoconsiderationt h e importa nceof“customerdelight”toenhancethelevelofloyalty.Therefore,thiss t u d y aimsattest ingthefactorsaffectingcustomerloyaltyof3- starhotelinVietnam,adding“customerdelight”asadirectfactorofcustomerloyalty.

Researchobjective

Thep r i m a r y o b j e c t i v e o f t h e r e s e a r c h i s t o examinet h e d e g r e e to w h i c h servicequality,customersatisfaction,hotelimageandcustomerdelightinfluenceo ncustomerloyalty.

Researchscope

Ther e s e a r c h t a r g e t s ati n d i v i d u a l s w h o a r e u s i n g s e r v i c e s a t h o t e l s i n b i g citiesl i k e HoC h i M i n h Citya n d

H a n o i , mainlya m o n g medium-pricemarketsegment;s p e c i f i c a l l y , 3 - s t a r h o t e l s a r e c h o s e n i n t h e s t u d y Q u e s t i o n n a i r e s w e r e d e l i v e r e d tohotelsinthecenterofthecitiesaswellastowell- knownplacesinthecities.Thereasonofnotchoosing5-staror4- starhotelsassamplesizeofstudyisthatthelimitedaccesstorespondentsofhotelsinth ismarketsegmentandinterestoft h e authorsin3-starhotelsashoteliersof3- starhotels.Experiencinginhotelindustry,theauthorisinterestedinfindingthemo steffectiveapproachtoenhancecustomerloyaltyathisownenterprise,aswellastogain aninsightsintocustomers’n e e d s andwantsofthemarket.

Contributionsandimplications

Thisr e s e a r c h p r o v i d e s i n s i g h t s i n t o customerl o y a l t y i n V i e t n a m ’ s h o t e l s e c t o r a s w e l l a s i n t r o d u c e s a f a c t o r p r e d i c t i n g s u c h t h e l o y a l t y ca l l e d “ c u s t o m e r d e l i g h t ” ; additionally,thestudyalsoteststheabil ityandapplicabilityofproposedr e s e a r c h modelandtheusabilityofconstruct s’measureditemsinVietnam’sb a c k g r o u n d Itsgeneralizabilitycanspecificallygu ideeducatorsandhoteliersinthecountry.

Structureofthethesis

The research is structured to first review the literature on key variables such as service quality, customer satisfaction, hotel image, customer delight, and customer loyalty Following this literature review, the study formulates hypotheses for the proposed model Finally, the author outlines the methodology and design aspects of the research.

Chapter1“Introduction”includesabriefoverviewoftheresearchbackground ,problemsandobjectives,methodologyaswellasthei m p l i c a t i o n C h a p t e r 2“Literat urereview”comprisesofdefinitionrelatedtorestaurants e r v i c e s , deepreviewofpreviousr esearchesoncustomerloyalty,corporateimage,serviceq u a l i t y a n d c u s t o m e r s a t i s f a c t i o n a n d t h e b a s i s o f b u i l d i n g t h e c o n c e p t u a l m o d el C h ap t e r 3

“ R e s e a r c h m e t h o d o l o g y ” pr esen ts t h e research process,measurements c a l e , p r e l i m i n a r y assessmento f measuresa n d d a t a c o l l e c t i o n p r o c e d u r e s as wellasthedataanalysesprocess.Chapter4“Dataanalysis”co nsi st s o f t h e o f f i c i a l a s s e s s m e n t o f measures,h y p o t h e s e s t e s t i n g , d a t a analysisr e s u l t s a n d i n t e r p r e t a t i o n C h a p t e r 5 “ C o n c l u s i o n ” c o n c l u d e s t h e f i n d i n g s a n d p ro vi ding managerialimplications andproposingspecificrecomm endationsfor i m p r o v i n g customerloyaltyinhotelsectorinVietnam.

Theoreticalbackground

Servicequality.Amongtheserviceindustries,tourismandhospitalityisoneo f themostsensitivefieldstoqualityissues,sothereisanongoingneedfororiginale m p i r i c a l r e s e a r c h o n c e r t a i n a s p e c t s o f q u a l i t y ( A t i l g a n , A k i n c i & A k s o y ,

2 0 0 3 ) F u r t h er m o r e , KandampullyandSuhartanto(2000)stresstheimportanceof qualityofh o s p i t a l i t y firmsasa maindrivingforceto comeupwithcompetitive challenges Similarly,Hu,KandampullyandJuwaheer(2009)viewservicequalit yasmeana s s i s t i n g companiestodifferentiatefromcompetitorstocontributetom arketshare;t h u s , theservicequalityhasbecomeavitalfactorforthesurvivalandcompetit ionofa firm.Hudson,Hudsona n d Miller

(2004)p r o v e thatservicequalityr e c e i v e s i n c r e a s i n g a t t e n t i o n i n t h e l i t e r a t u r e , yett h e r e i s n o c o n s e n s u s o f w h i c h measureofferst h e g r e a t e s t v a l i d i t y G r ử n r o o s ( 1 9 8 4 ) i d e n t i f i e s t w o d i m e n s i o n s o f s e r v i c e quality:functi onalquality( “ h o w ” serviceisperformed)andtechnicalquality( “ w h a t ” thecusto merreceives fromtheserviceexperience).Thethreemainm easu r em en t s t o a nalyzet h e c o n c e p t o f q u a l i t y in s e r v i c e i n d u s t r y are t h e I m p o r t a n c e -

Performance Analysis (IPA), SERVQUAL, and SERVPREF are essential frameworks for evaluating service quality Introduced by Martilla and James in 1977, IPA was initially applied to the service departments of automobile dealers and has since been utilized across various sectors, including healthcare, banking, hospitality, adult education, and tourism (Hudson et al., 2004) The concept of service quality was further refined by Parasuraman, Zeithaml, and Berry in 1985, who defined it as the gap between customer expectations and their perceptions of actual service performance Evaluating service quality presents unique challenges compared to product quality, as it requires a comprehensive assessment of the entire service process Through focus group sessions, the authors identified ten determinants of service quality, which they later condensed into five key components: tangibles, reliability, responsiveness, assurance, and empathy, collectively known as the SERVQUAL scale This scale measures service quality by analyzing the discrepancies between customer expectations and perceptions using a seven-point Likert scale with 22 items categorized into these five dimensions.

However,t h e val id it y oft h e t wo mentioneds c a l e has been qu est io ned O h (2 00 1)pointsoutthatthemainlimitationofIPAisinthesurveyinstrumentwhere theLinkertscalecannotdifferentiatebetweenlevelofimportanceandimportanceofperform ance.SERVQUALscaleisargued abouttheconsistency ofthe fivec o m p o n e n t s w h e n s u b j e c t e d t o c r o s s - s e c t i o n a l analysis( C a r m a n , 1 9 9 0 ) a n d S E R V Q U A L conceptualization isonlyadoptedinonlyafewindustries(Cronin&Taylor,1992).Theyallagreethat performance- basedmeasuresofservicequalitys h o u l d b e u s e d C r o n i n andTaylor( 1 9 9 2 , 1 9 9

4 ) c o n f i r m s t h a t t h e performance- b a s e d scaledeveloped(SERVPREF)ismoreefficientthanSERVQUALscalesinceit e x pl ai ns moreo f v a r i a t i o n i ns e r v i c e q ua l i t y I n l i g h t o f t h i s o p i n i o n, t h e s t u d y sug gest s t h a t p e r f o r m a n c e - b a s e d s c a l e s h o u l d b e i m p l e m e n t e d i n measures e r v i c e quality.

Hotel image is a crucial predictor of customer evaluations, as identified by Bitner (1990) and Nguyen (2006) It encompasses product characteristics, subjective knowledge, and attitudes, as noted by Nguyen and LeBlanc (1998) Customers' memories of ideas, feelings, and past experiences shape this image Barich and Kotler (1991) emphasize that image influences the impressions and associations customers form with a company Mazanec (1995) highlights a positive relationship between image and customer preference, a key aspect of loyalty Kandampully and Hu (2007) identify two components of corporate image: functional characteristics and emotional associations Keller (1993) connects brand image to consumer perceptions formed through brand-related activities, while Padgett and Allen (1997) describe it as the symbolic meanings tied to a brand Low and Lamb (2000) define brand image as the reasoned or emotional perceptions consumers associate with a specific brand Various aspects of hotel operations, including the seven marketing variables (product, place, promotion, people, process, and physical evidence), directly influence hotel image Consequently, hotels must align their marketing activities with their desired image, which is a synthesis of emotional perceptions, ideas, and symbolic characteristics encountered by customers during their service experience.

Customersatisfaction.Customersatisfactionisbelievedtobealeadingf a c t o r o f customerl o y a l t y s i n c e i t e n h a n c e s t h e c o m p a n y ’ s p r o f i t (Kim,V o g t & K n u t s o n , 2 0 1 3 ) Y i ( 1 9 9 0 ) i s a l s o o n t h e samep a g e a s t h e a u t h o r a g r e e s t h a t customers a t i s f a c t i o n isa c e n t r a l c o n c e p t o f marketinga s i f firms k n o w h o w t o d e l i v e r a p r o d u c t t o g e t h e r w i t h s a t i s f a c t i o n t o customer,i e meett h e n e e d s a n d w a n t s o f c u s t o m e r s , t h e n t h e companyw i l l o b t a i n p r o f i t i n r e t u r n H u n t ( 1 9 7 7 ) definessatisfactionas“anevaluationrenderedtha ttheconsumptionexperienceswasatl e a s t a s g o o d a s i t w a s s u p p o s e d t o b e ” ( p

Oliver (1981) defines satisfaction as a psychological state that arises when customers' perceptions of service performance align with their expectations He emphasizes that satisfaction is distinct from perceived service quality; while satisfaction pertains to specific transactions, service quality reflects the overall excellence of the service provided Satisfaction results from an emotional response influenced by a cognitive evaluation of the service received against its costs Ultimately, customer satisfaction represents an overall attitude towards a service provider, where customers seek a balance between their values—needs and wants—and their evaluations of the service experience.

M a t h e w s , 2 0 0 1 ) F u r t h e r m o r e , K o t l e r ( 2 0 0 3 ) a r g u e s t h a t s a t i sf a c t io n isthefeelingsofpleasureordisappointmentwhentheycomparebetweenp e r c e i v e d performancea n d t h e i r e x p e c t a t i o n s ; t h e r e f o r e , t h e i r f e e l i n g i s b a s e d onthecompatibilitybetweenperceivedperformanceandexpectations,f romd i s s a t i s f a c t i o n , neutralstageorsatisfaction.Inlightofallpreviousres earches,thest u d y co ns i d e r s satisfactionisanoverallevaluation ofcustom ers towardsthed i f f er e n c e betweenwhattheyexpectandwha ttheyactuallyp erceiveofa service performance.

Customer delight has emerged as a premium goal in the service industry, with recent studies questioning the direct link between customer satisfaction and loyalty Researchers are now focusing on the emotional aspects of customer experiences, coining the term "customer delight." This concept suggests that companies should aim not only for customer satisfaction but also to exceed it, fostering deeper loyalty and higher profits Current literature presents three definitions of customer delight: one emphasizes the confirmation-disconfirmation paradigm, another highlights affect-based emotions, and the third focuses on fulfilling human needs The first definition posits that customer delight occurs when services exceed expectations, while the second associates it with emotions like joy and exhilaration stemming from unexpected positive experiences The final approach links customer delight to the satisfaction of human needs such as security, justice, and self-esteem Overall, this study supports the view of customer delight as an emotional response characterized by joy, thrill, and exhilaration.

Customer loyalty is defined as a behavioral pattern towards a specific brand over time, stemming from interactions between customers and companies during the purchasing experience (Pamies, 2012; Oracle Corporation, 2005) Once companies establish loyalty, customers are less likely to seek alternatives and more inclined to repatronize (Marshall, 2010) To enhance customer loyalty, businesses should implement effective marketing strategies that create a win-win situation, fostering a favorable perception of the company and encouraging word-of-mouth referrals, while also reducing price sensitivity and customer acquisition costs (Bagdonienė & Jakštaitė, 2007) Loyalty encompasses not just behavioral aspects but also deeper emotional and attitudinal dimensions, where customers remain loyal even when alternatives exist, driven by their feelings, expectations, and relationships with staff, alongside rational considerations like information availability and understanding of organizational processes (McCaine et al.).

( 2 0 0 5 ) a s s e r t t h a t c u s t o m e r l o y a l t y i s s u m m a t e d byt h e p ro cess ofco gnitive–affective–conation– actionpatternandaconsumercanbecomeloyalatanyofthesefourphases.Customers firstlyevaluateonebrand’sserviceass u p e r i o r t h a n o t h e r a l t e r n a t i v e s a n d t h e n findwaytoe x p e r i e n c e t h e s e r v i c e t o develo p apositiveattitud etowardthebrand Inthethirdloyaltyphase,customerscommittoreturntopatron ize,whichisfollowedbythelastphasetransformingthei n t e n t i o n i n t o r e a d i n e s s t o a c t I n l i g h t o f previousr e s e a r c h , t h e s t u d y d e f i n e s a customerasloyal whentheypossessrepurchaseintention,priceinsensitivity,p o s i t i v e word-of- mouthandfrequentpurchaseandnoswitchingbehavior.

Thehypothesisdevelopmentandproposedmodel

Relationshipbetweenservicequalityandcustomerloyalty

Service quality is essential for the survival and growth of hotels, as it significantly impacts customer loyalty and profitability (2011) High levels of service quality enable hotels to meet competitive demands, distinguishing them from others in the market (Panasuraman and Grewal, 2000) Customers are no longer willing to compromise on quality, prompting businesses to offer unique services that competitors cannot replicate Research has shown a positive correlation between service quality and customer loyalty, with indicators such as repurchase intentions and positive word-of-mouth recommendations highlighting this relationship (Parasuraman et al., 1999).

( 2 0 0 7 ) f i g u r e o u t thatahighlevelofservicequalityisassociatedwithfreque ntpatronage.However,somestudiesagreeonbothdirectandindirectrelationsh ipbetweenservicequalityan d customerloyalty.Forinstance,Croninetal.

(2000)proveontheirstudythatthe directrelationshipappearsinfast‐ foodservices,spectatorsport,participativesport,a n d entertainment,andtheind irectonedoessoinlong‐distancecarrierandhealth‐careservices.

Inhotelindustry,Bakerand Crompton(2000)andAlexandris et al.

(2002)supportthetheoryofpositivelydirectrelationshipbetweenservicequalitya n d behav ioralintent- w h i c h is verycloselytoloyalty Onthebasisof t h e above d i s c u s s i o n , thefollo winghypothesisisproposed:

Relationshipbetweencustomersatisfactionandcustomerloyalty

Research indicates a strong positive correlation between customer satisfaction and repurchase intentions, as well as the likelihood of recommending a product or service Thomas (2013) highlights that satisfaction can lead to repeat purchases and word-of-mouth communication, ultimately fostering customer loyalty Supporting this, Anton (1996) and Cronin and Taylor (1992) demonstrate that satisfaction is a crucial precursor to positive behavioral intentions in the service sector; dissatisfied customers are prone to spreading negative word-of-mouth and reducing their spending, while satisfied customers tend to behave oppositely In the hotel industry, Kandampully and Suhartanto (2000, 2003) identify satisfaction with housekeeping as the most significant factor influencing customers' intentions to repurchase and recommend Additionally, Riadh (2009) finds that emotional satisfaction has a significant direct impact on loyalty Based on these insights, the following hypothesis is proposed.

Relationshipbetweenhotelimageandcustomerloyalty

Theo v e r a l l imageo f t h e s e r v i c e f i r m i s i n f l u e n c e d bys e r v i c e q u a l i t y a n d customersatisfaction(Huetal.,2009).Heung,Mok,andKwan(1996)exploreth ath o t e l imageisanimportantcontributingfactortoenhancingcustomerloyalty. Furthermore,K a n d a m p u l l y a n d S u h a r t a n t o ( 2 0 0 0 , 2 0 0 3 ) a n d K a n d a m p u l l y e t a l

(2011)reassurethepositiveroleofimageonthelevelofloyaltyofhotelguests.Asp r o v ed e a r l i e r i n t h i s p a p e r , m a n y e v i d e n c e s p r o v e a s t r o n g r o l e o f imagea s a n antecedentofcustomerloyaltyandthefollowinghypothesisisproposed:

Relationship betweencustomerdelightandloyalty

Inrecentyears,insteadofcustomersatisfaction,theattentionhasbeenshiftedt o custo merdelighttobeoneofthestrongestpredictorofmanagingguestrelations

According to Berman (2005), customer delight is a crucial factor influencing repurchase intentions and customer loyalty, serving as a final stage in measuring post-purchase customer responses, which include outrage, pain, dissatisfaction, satisfaction, and delight Research by Torres and Kline (2006) highlights that customer delight is a stronger predictor of customer loyalty, positive word-of-mouth, and repeat purchase intent compared to satisfaction Furthermore, Kim (2011) and Torres and Kline (2006) found that customer delight is an effective metric for managing customer relationships, leading to positive business outcomes such as increased loyalty and profitability Paul (2000) emphasizes that delighting customers involves delivering outstanding service, which fosters customer acceptance and generates positive word-of-mouth communication Overall, customer delight is recognized as a significant indicator of customer loyalty, as supported by Oliver et al.

Theproposedmodel

Ther e s e a r c h o n a n t e c e d e n t s o f customerl o y a l t y h a s b e e n a n i n t e r e s t o f r e s e a r c h e r s inliterature re vie w withm a n y proposedm o d e l an dsuggestion onthe antecedents.Asp e r t h e mentionedh y p o t h e s e s , t h e r e s e a r c h modeli s p r o p o s e d a s b e l o w:

Theresearchwasdesignedwithaclearobjectiveofidentifyingfactorsaffecting customerloyaltyinhotelindustry.Theliteraturereviewsessionrevealedp r e v i o u s stu di esr esea rc hi ng relevantvariables int he researchedmodel.T he r e s e a r c h m e t h o d o l o g y e x p l a i n e d t h e m e t h o d o f c o l l e c t i n g d a t a , t h e s o u r c e , measurements c a l e , s a m p l i n g t e c h n i q u e s a n d a l s o t h e d a t a a n a l y s i s method.T h e researchm e t h o d o l o g y i n t h i s c h a p t e r s t a r t e d w i t h a p i l o t s t u d y and w a s analysedaft er ward s toresearchfurtheronthecollecteddatainor dertomakeconclusionanddiscussion fromthat.

Measurementscales

Theresearchmodelconsistedoffivevariablesandtheirmeasurementswereb asedo n p r e v i o u s s t u d i e s : a d e p e n d e n t v a r i a b l e c u s t o m e r loyalty,a n d f o u r i n d e p e n d e n t variables(service quality,customersatisfaction,hotelimagea ndcustomerdelight).SinceSERQUALscaledevelopedbyPanasuramanetal.

(1985),s e r v i c e qualityhasbeenawidelystudiedandmodifiedconstruct.However ,forthep u r p o s e o f e x p l a i n i n g v a r i a n c e ind e p e n d e n t c o n s t r u c t s , m a n y r e s e a r c h e r s h a v e su p p o r t ed t h e us e o f performancep e r c e p t i o n s i n measureo f s e r v i c e q u a l i t y ( P a n a s u r a m a n e t a l , 1 9 9 8 Z e i t h a m l e t a l ,

In light of previous research (Cronin et al., 2000; Hudson et al., 2004; Martina & Irene, 2006), this study utilized a performance-based service quality measure (SQP) to evaluate service quality using a 10-item scale on a seven-point Likert scale ranging from 1 (“very low”) to 7 (“very high”) Customer satisfaction was assessed with a four-item scale adapted from Ryu, Han, and Kim (2008), also using a seven-point Likert scale from 1 (“strongly disagree”) to 7 (“strongly agree”), including statements like “The overall feeling I got from the hotel was satisfied.” Additionally, hotel image was measured using items from Milfelner, Snojan, and Korda (2011), with statements such as “I think most people have a positive opinion about this hotel,” again on a seven-point Likert scale.

( 2 0 1 3 ) wasadoptedtomeasurecustomerdelightbyaseven- pointLinkertscale(1:“ s t r o n g ly disagree”to7:“stronglyagree”),withstatem entlike“Ifelt delightedatsometimeduringmystayatthishotel”.Afive- itemscalewasadoptedfromworkofZelthamle t a l

- p o i n t Linkert scale (1:“notata l l l i k e l y ” t o 7:”exetremelyl i k e l y ” ) withstatementlike“Iwillsaypositivethingaboutthishotel/ restauranttootherpeople."

Generally,theemployeesprovideservicereliability,consistently,and dependably.

Generally,theemployeesarecompetent(i.e.,knowledgeablea n d skill ful).

SQ5 Generally,theemployeesarecourteous,polite,andrespectful.

SQ6 Generally,theemployeeslistentomeandspeakinalanguaget h a t Ica nunderstand.

SQ7 Generally,theemployeesaretrustworthy,believable,andh o n e s t

SQ8 Generally,thisfacilityprovidesanenvironmentthatisfreef r o m dang er,risk,ordoubt.

DE6 Thehotelhadexperiences/ serviceswhichwereu nexpect ed andtheydelighte dme Customerloyalty

Sampling

Thisstudyincludes29variables,inwhich25variablesareindependentandf ourdependentvariables.ThesamplesizeofthisstudywasbasedonsuggestionofHai retal.(2010)andTabachnickandFidell(2007)suchas:

(1)samplesizeshouldbeatleast100:n>100samplesandn=5k(wherek=thenumberofi tems),

(2)thed e s i r e d l e v e l w a s : n > 5 0 + 8m( w h e r e m = numbero f i n d e p e n d e n t v a r i a b l e s ) Therefore,theminimumsamplesizeisn=5*295andn>50+8*5=9 0.Thisc o u ld beimpliedthatthesamplesizeshouldbeatleast145.

To testthefourhypotheses,astudyo f customerswhostayedat3- starh o t e l s w a s conducted.ThephysicalfacilitieswerelocatedinthecentresofHoChiM i n h CityandHaNoiCity,wheretravelpartiesweremostcrowdedandfo unditeasytodiscoveraboutcharacteristics ofhospitalityinVietnam.Thesur veyswereputatthereceptiondesks,coffeelounges,hotelrooms,orrestaurants’tables,wherei t couldcatchattentionofcustomersandgavethemcomfortableroomtofillin theq u e s t i o n n a i r e s

Datacollectionmethods

Apilotstudy(n0)wasconductedusingahard- copysurveyinSeptember2 0 1 4 w i t h guestsstaying insomehotelsin Ho ChiMinhCityand

HaNoiCitytotesttheq u e s t i o n n a i r e i n s t r u m e n t B a s e d ont h e performa ncei n t h e p i l o t study,t h e q u e s t i o n n a i r e w a s r e v i s e d t o minimizea l l d i f f i c u l t i e s i n r e a d i n g a n d mi su nd er stand in gs inwording(AppendixA).

NoiCityfromSeptembertoNovember2014.Individuals overtheage o f 1 8 year sandwho w e r e s t a y i n g i n 3 - s t a r h o t e l s i n m e n t i o n e d c i t i e s w e r e c o n s i d e r e d t o b e t h e target popul ation.Applyingtheconvenientsamplingtechnique,thedatacollectionwasach ievedmainlythroughprintedsurveys.OncompletingastayatahotelinHoC h i MinhCityo rHaNoiCity,hotelguests wereaskedtofillinthe questionnaireonavolunteerbasis.Withatotalof500surveyswereputanddistributedinm entioneda r e a s ( w i t h t h e i n t r o d u c t i o n o f h o t e l s staffw h e n n e e d e d ) , t h e r e w e r e 3 5 0 respondents.Aftershortlisting,54responsesweredroppedbecau setheywerefoundtob e i n a p p r o p r i a t e ( i n c o m p l e t e d a t a , t r a v e l l e r b u s i n e s s e s a n d e v e n t s ’ c u s t o m e r s ) Finally,only296completedandusablesurveyscoul dbeusedforthenextstepofanalysis.

Dataanalysismethod

Statisticalmethod

Descriptivestatistics

Bothdescriptivedataanalysisandinferentialdataanalysiswereusedindataanal ysist o e n s u r e t h e c r e d i t a b i l i t y o f d a t a I n o r d e r t o d e s c r i b e a n d summatet h e d a t a , t h e d e s c r i p t i v e s t a t i s t i c s w a s i m p l e m e n t e d F u r t h e r m o r e , t h e i n f e r e n t i a l statistics was also used to extendbeyondthei m m e d i a t e d a t a a l o n e a n d makeconclusionsbeyondthedataorreachconclusionsregardinganyhypotheses.

Reliabilityanalysis

Toassesstheinternalconsistencyofthedatausedforthesurvey,Cronbach’sa l p h a wasusedtorejecttheinappropriateitems.Thehigherthealphawas,themorer e l i a b l e the samplewas.Foramorereliabledata,theresearchonlya c c e p t e d v ar i ab l e swithCro nbach’salphahigherthan0.5.

Exploratoryfactoranalysis(EFA)

AfterfilteringdatafromReliabilityanalysis,EFAwasappliedtoexplorethei n t e r relationshipbetweenthevariables byBarlett’stest(0.4,itcouldbec o n c l u d e d t h a t t h e f o u r mentione di t e m s m a d e a g o o d componentofS A s u m m a t e d scaleandshouldbekeptforexpl oratoryfactoranalysis(EFA)later.

Reliabilityo f I M S c a l e IMs c a l e g e n u i n e l y c o n s i s t e d o f f i v e i t e m s , y ett h e itemsIM1hadbeendeletedduetoitsunsatisfiedCronbach'sAlphaifI t e m D e l e t e d T h e reliabilityo f imagescaleafterwardsincludedfouritemswithA l p h a =0.752an dsatisfiednumberofCronbach'sAlphaifItemDeleted(lessthan0.752)andCorrec tedItem-

TotalCorrelationofitems>0.4,itcouldbeconcludedt h at thefourmentioneditems madeagoodcomponentofImagesummatedscaleandsh ou ld bekeptforexploratoryfactoran alysis(EFA)later.

Reliabilityo f DES c a l e Similarlyt o SAa n d I M s c a l e , D E s c a l e w a s a l s o madefromsixitems,buttwoofthemhadbeendeletedduetotheirinappropriate

C r o n b a c h ' s A l p h a i f I t e m D e l e t e d I t e m D E 3 w a s d e l e t e d f i r s t l y andf o l l o w e d byi t e m DE4.Therefore,thereliabilityofcustomerdelightscaleconsistedofremainin gf o u r itemswith

SummaryofInterpretationofReliabilityMeasurement.Toassesswhethert h e ite msineachscaleform areliablescale,Cronbach’sAlphawascomputed.Asa result,thealphasofallscaleswereinrangeof0.7–

0.95andthemajorityofitemsin eachscalehadcorrelationhigherthan0.4,whichindica tedthattheitemsofeachs c a l e formedascalethathasgoodinternalconsistencyreliability.

ExploratoryFactorAnalysis(EFA)

EFAf o r d e p e n d e n t f a c t o r ( C L ) Ass h o w n i n t a b l e 4 1 i n A p p e n d i x B , KMOo f a l l f a c t o r s w e r e e q u i v a l e n t to0 7 2 3 ( h i g h e r t h a n 0 7 a n d l e s s t h a n 1 0 ) , wh i ch indicatedsufficientitemsforeachfactorandEFAwasappro priatewithdata.B e s i d e s , Bartlett'sTestofSphericityweresignificant(lessthan0.05) meantthatthec o r r e l a t i o n matrixw a s s i g n i f i c a n t l y d i f f e r e n t f r o m a n i d e n t i t y matrix,inw h i c h c o r r e l a t i o n s betweenvariableswereallzero,i.e.thevar iableswerecorrelatedhighlyenoughtoprovideareasonablebasisforfactoranalys is.Moreover,thedependentf a c t o r ( E I ) h a d E i g e n v a l u e s ( a measuredo f e x p l a i n e d v a r i a n c e ) g r e a t e r t h a n 1 0 , w h i c h wasacommoncriterionforafacto rtobeuseful.Besides,thepercentageofcumulativemorethan50.00%wasconsidere dassatisfiedandexplained79.587%thev a r i a n c e

The exploratory factor analysis (EFA) revealed that all 21 observed items were grouped into five significant factors, each with factor loadings exceeding 0.5, indicating their relevance for further correlation analysis Each item's factor loading difference was greater than 0.3, ensuring a significant distinction between factors The Kaiser-Meyer-Olkin (KMO) measure was 0.875, confirming the adequacy of the sample for EFA, while Bartlett's Test of Sphericity was significant (p < 0.05), demonstrating that the correlation matrix was markedly different from an identity matrix Additionally, the dependent factor (EI) exhibited eigenvalues greater than 1.0, a standard criterion for factor utility, and the cumulative percentage of explained variance reached 62.669%, surpassing the 50% threshold for satisfactory explanation.

PearsonCorrelations

Table4.4provedthatthecorrelationbetweenindependentvariables(SA _F,MI_ Fa n d D E _ F ) w a s h i g h r e l a t e d t o t h e d e p e n d e n t v a r i a b l e (

C L _ F ) s i n c e t h e cor r el ati on s weresignificant(p- value0.01).Specifically,satisfactionandimagewasslightly correlatedwith loyalty(Pearsoninrangeof0.2to0.4)andcustomerdelightwashighlycorrelatedwit hloyalty(Pearson=0.513).Therewerenomulticollinearitybetweenindependentv ariablessincetheircorrelationwaslow,servicequality’scorrelationw it h o t h e r v a r i a b l e s w e r e e v e n l e s s t h a n 1.T h a t c o u l d b e c o n c l u d e d t h a t t h r e e independentvariables(SA_F,MI_FandDE_F)shouldbekeptforthenext stepofmultiplelinearregression,meanwhilesatisfactionshouldbeomitted.

MultipleLinearRegression

Testofassumptions

Thehypothesesof t h e dependentvariables (CustomerLoyalty) w eredeveloped bythemultiplelinearregressionanalysiswhichwasalsou sedtotest thehypothesesmodelofthisresearch.Afterassessingthemultipleline arregr essio n methodbyu s i n g S P S S , t h e r e s u l t s o f multiplel i n e a r r e g r e s s i o n w a s showninTable4.7.Init,thetwostagesofidentifyingmulticollin earity( i n s p e c t i o n o f c o r r e l a t i o n c o e f f i c i e n t s a n d T o l e r a n c e /

V I F v a l u e ) demonstrated thatallvarianceinflationfactors(VIF)wer elessthan10andal l correlationwerebothlowerthan0.8andnotat0.5value,then theassumpt ion wascorrect.Moreover,allthetolerancevaluewashigherthan(1-

R 2 )andwasconsideredasacceptable.Besides,thehistogramsinAppendixB alsoillustratedtheappropriatenessofaboveassumption.Altogether,thetest ofassumptionswassatisfiedforthenextstepofmultiplelinearregressions.

Regressionanalysis

Model Unstandardize dCoefficients Standardize dCoefficient s t Sig Collinearit yStatistics

1 Beta Std.Error Beta Tolerance VIF

TheC o r r e l a t i o n s t a b l e confirmedt h e a s s o c i a t i o n c o r r e l a t i o n b e t w e e n v a r i a b l e s , a n d t h e r e w a s a l s o a c o r r e l a t i o n w i t h o u t m u l t i c o l l i n e a r i t y a m o n g predictors Mostofthecorrelationswereintherangeof0.2 to0.6,whichindicatedt hemediumassociationbetweenvariables.

)andtheadjustedR 2w a s 0.321,meaningthat32.10%ofthevarianceincustomerloyaltyc o u l d bepredictedfromsatisfaction,imageandcustomerdelight.

TheANOVAtableshowedthatFG.424andwassignificant,indicatingthatt h e c o m b i n a t i o n o f thes a t i s f a c t i o n , c u s t o m e r d e l i g h t a n d i m a g e s i g n i f i c a n t l y p r ed i ct e d customerloyalty.

AccordingtoCoefficientstable,therewereallthreefactors(SA,DEandIM)sig n i f i can t ly i m p a c t e d o n d e p e n d e n t f a c t o r ( C L ) a s t h e i r r e g r e s s i o n c o e f f i c i e n t s i n d i c a t e d s i g n i f i c a n t l y a t t h e 5%s i g n i f i c a n c e l e v e l ( p - v a l u e < 0 0 5 ) T h e C o e f f i c i e n t t a b l e i n d i c a t e d t h e standardized beta coefficients, whichwere interpreteds i m i l a r l y tocorrelationcoefficientsandformedanequationofpredict ingimagebya l l independentvariables.Amongthreepredictors,customerdeli ghtpossessedthehigh est influenceoncustomerloyalty(βDE=0.41),whichwa sfollowedbyimage(βIM=0.183)andcustomersatisfaction(βSA=0.139).

Discussionoffindings

PearsonCorrelationsresult(Table4.4)illustratedtheinsignificance( 0 7 5 5 >0.05),tha tmeantservicequalitywerenotsupportedbythedata.Contraryt o t h e p r o p o s e d h y p o t h e s i s , t h e r e s u l t i m p l i e d t h a t s e r v i c e q u a l i t y d i d n o t h a v e a directinfl uenceoncustomerloyaltyandindirectrelationshipmayhappen.However,th e resultwasinf avorofworkfromOh(1999),inwhichhefoundthatperceiveds e r v i c e q u a l i t y p o s s e s s e d b o t h d i r e c t a n d i n d i r e c t r o l e i n r e p u r c h a s i n g d e c i s i o n p r o c e s s a n d w o r d - o f - m o u t h c o m m u n i c a t i o n i n t e n t i o n S o m e o t h e r r e s e a r c h e s a l s o arg uedthatservicequalityonlyindirectlyinfluenceoncustomerloyalty.CroninandTaylor(199 2)fondthatservicequalityhadaninsignificantinfluenceonrepurchasei n t e n t i o n s ina nyoft h e f o u r i n d us t r i e s theystudied( b a n k i n g , p e s t c o n t r o l , dry‐cleaning,andfast food).Meanwhile,theresultsofstudy(KandampullyandHu,

( 2 0 0 9 ) s t a t e d t h a t s e r v i c e q u a l i t y h a d a n i n d i r e c t impacto n w o r d - o f - m o u t h , p u r c h a s e i n t e n t i o n a n d p r i c e s e n s i t i v e v i a satisfaction andim age.BeiandChiao(2001)arguedthatservicequality hadonlyani n d i r e c t significantpositiveeffectonconsumerloyalty viasatisfa ction.Thefuture studycouldfocusonbothdirectandindirectinfluenceofservicequalityoncustomerloy alty.

( 2 0 1 5 ) T h o s e r esear ch es allagreedonthepositiverelationshipbetweencustom ersatisfactionandcustomerloyalty,int h a t theyr e a s s u r e d t h a t s a t i s f a c t i o n h a s b e e n s h o w n t o b e a g o o d predictorof customer loyalty Additionally, sati sfaction isasignificanta n t e c e d e n t o f p o s i t i v e b e h a v i o r a l i n t e n t i o n ins e r v i c e s e c t o r ; h e n c e , a d i s s a t i s f i e d customerarelikelytospreadnegativeword-of- mouthandspendlesswhileas a t i s f i e d customersactinaviceversaway.

Coefficienttable,thebetaofImagewas0.183andw a s significant;itprovedth atimagewassupportedbythedata.This findingwasc o n s i s t e n t w i t h t h e r e s u l t f r o m r e s e a r c h o f M a z a n e c ( 1 9 9 5 ) , B a r i c h a n d K o t l e r (19 91 ) ,H e u n g e t a l

( 2011 )inwhich imagewas consideredtoserve as animportant factor thatw ouldenh an ce cu st ome rl oy al ty B e s i d e s , i na s t u d y ofK a n d a m p u l l y eta l

AsprovedearlierontheTable4.7,customerdelightwasthestrongestp red i cto r ofcustomerloyalty.TheresultsupportedresearchofKimetal.

(2010)’sresearch,whichconfirmst h a t c o s t u m e r s p e r c e i v i n g d e l i g h t w i l l e n g a g e i n h i g h e r l e v e l o f l o y a l t y t h a n thosewhodonotperceivedelight.Barneset al.(2010)reassuresthatnotonlyloyalty,butalsocommitment,re- patronageandwillingness-to- paywillbeparalleledw i t h thewayhowcostumersperceivedelight.

Summaryofresearchfindingandlimitation

Theprimaryobjectiveoftheresearchistotesttheeffectsofservicequalitycu stomers a t i s f a c t i o n , imagea n d c u s t o m e r d e l i g h t o n c u s t o m e r l o y a l t y i n h o t e l s e c t o r H o w e v e r , onlyh o t e l image,s a t i s f a c t i o n a n d d e l i g h t a r e p r o v e d t o h a v e a d i r e c t a n d p o s i t i v e i m p a c t o n l o y a l t y , w h i l e s e r v i c e q u a l i t y i s n o t s i g n i f i c a n t l y e f f e c t s onloyaltyinthestudy.Nota bly,thesignificantpositiverelationshipbetweencustomerdelightandloyaltyshouldbeta kenintoconsideration,inwhichdelightthes t r o n g e s t factorimpactonloyalty.Itcanbeim pliedthatthisstudyprovideshoteliersa n d practitionerswithaninsightintolong- termstrategiestorespectivelyfocusont h e g o a l o f e n h a n c i n g customerd e l i g h t , h o t e l i m a g e a n d s a t i s f a c t i o n i n o r d e r t o i m p r o v e levelofcustomerloy alty.

Managerialimplications

ImplicationsforhoteliersinVietnam

Thefirstimplicationofstudyisthathoteliersshouldemphasizeonenhancingcustome rd e l i g h t a s themosti m p o r t a n t t a s k o f l o n g - t e r m s t r a t e g y f o r d e v e l o p i n g loyalty.LikeBarnesetal.

(2010)proveintheirstudy,theartofcustomerr el a t i o n s hi p i s t o u n d e r s t a n d t h e m o t i v a t i o n s u n d e r l y i n g c o n s u m e r b e h a v i o r s i n c e customersare motivated tomaintainequitable relationshipwithserviceproviders Specific ally,hoteliersareencouragedtoprovidecustomersthedelightedexperience,s o thecustomersw illadjusttheloyallevelastheiroutputtobalancetherelationshipwith hotels.Incontrast,i fcustomersdonotfeeldelightwiththehotels,theymaydecreasetheloyallevelasa nexchange.Therefore,hoteliersshouldtakeinto considerationthestrategyofmaintainingacertaintypeofrelationshiptoensur eap o s i t i v e outcome.

To enhance customer delight in the hospitality industry, hotels should prioritize developing the core competencies of frontline staff, as they serve as the primary communication channel with customers Empowerment and job satisfaction are essential strategies to boost employee performance, leading to improved service delivery Hoteliers must not only hire satisfied employees but also focus on nurturing their satisfaction to foster a positive service environment It is crucial to shortlist candidates who possess the intrinsic traits of empathy and a desire to meet customer needs Additionally, emphasizing cultural fit and implementing effective training programs will help retain and develop employees to meet international standards A strong human resources foundation allows hotels to cultivate a corporate culture centered on consistently delighting customers This long-term strategy should be reflected in recruitment, marketing, and customer service initiatives Furthermore, hotels can benefit from Management Trainee programs to recruit and train potential talents from universities, ensuring a loyal workforce in the future.

Hotel operators should prioritize enhancing their long-term loyalty strategies by developing a consistent marketing information system to monitor their perceived image among target customer groups Building a strong hotel image can be achieved through effective advertising, appealing décor, distinctive architecture, and professional personnel appearance Innovative and attractive physical facilities, along with e-marketing efforts, should be central to this image-building strategy Research indicates that travelers consider a hotel's physical environment, including guest rooms, crucial in their evaluations Furthermore, the physical surroundings significantly influence customers' perceptions of price fairness, which is intertwined with brand awareness and quality In today's digital age, customers easily share their experiences through forums, blogs, tweets, and social media posts, often valuing these reviews over professional assessments Therefore, hotel operators must stay updated on customer feedback and actively manage their hotel image across these platforms.

Thethirdimplicationisthathoteloperatorsshouldfocusonincreasingcustomers a t i s f a c t i o n o f l o n g - t e r m s t r a t e g y f o r d e v e l o p i n g l o y a l t y A m o n g m a n y c h o i c e s , t h e study su g g e s ts t h a t h o t e l o p e r a t o r s s h o u l d f o c u s o n o f f e r i n g a r e a s o n a b l e pric erangeorloyaltyprogramtocustomersinordertoturnsatisfactiont o customerdelight.

Implicationsforeducatorsinlocalhighereducationinstitutions445.3Li mitationandfurtherresearchdirection

The importance of educating and training soft skills for hospitality students from an early stage is crucial for their employability According to Hillage and Pollard (1998), individual employability relies on four factors: knowledge, skills, attitudes, the application of these elements, presentation to employers, and the context of job seeking While there is no universally accepted list of soft skills, Septames and Baldock (2004) define them as attributes that facilitate effective teamwork, communication, leadership, customer service, and innovative problem-solving Although these skills are intangible, they significantly enhance value across various sectors, particularly in service-oriented industries like hospitality Recently, there has been a notable increase in demand from employers for graduates with strong soft skills, as evidenced by their inclusion in job descriptions and the emphasis placed on testing these skills during interviews.

The lack of soft skills among local graduates in Vietnam, particularly freshmen aspiring to work in the hotel industry, significantly contributes to their unemployment rates Many lecturers lack industry experience, which hampers the connection between theory and practice in their teachings They often prioritize learning over earning, failing to align education with market demands This disconnect between employer requirements and graduates' employability exacerbates the unemployment issue in a developing country like Vietnam Therefore, it is essential to reassess the current curriculum to bridge the gap between education and market needs.

Jobs in the hospitality sector, once overlooked, are gaining traction as tourism in Vietnam evolves from “hidden charm” in 2014 to “timeless charm” in 2015 Popular attractions like Trang An Grottoes and Ha Long Bay have drawn global attention, leading to the influx of multinational hotel brands in Vietnam However, vocational schools and higher education institutions are struggling to equip students with the necessary skills to meet international standards As a result, many young individuals interested in this sector are opting to study abroad in countries like New Zealand or Australia, potentially leading to a “brain drain” where they may not return to Vietnam to build their careers The role of educators in the hospitality field is crucial in developing students' essential skills, capabilities, and attitudes toward careers in hotels and restaurants.

Thefirstthingneededtobeconsideredistochangethoseeducators’mindset,a n d t h e n t h e c l o s e r c o l l a b o r a t i o n b e t w e e n h i g h e r e d u c a t i o n i n s t i t u t i o n s a n d practitionersshouldbeinaction.Asaresult,educatorswillrealizehowtotraintheirst ud en ts relatedsoft- skillsmatchingwithindustryneeds;inexchange,studentswilla c k n o w l e d g e howim portantsoft- skillsetisandmakesuchskillsbecometheircorec o m p e t e n c y inthehuntingjobproces s.Thiswillleadtothesecondaction,inwhichs t u d e n t s willbeeducatedandtrainedabout thevitalroleofsoft- skillsinthed e v e l o p m e n t oftheircareerpath.Althoughthemainchallengeforhigher educationinstitutionistoproducebest- matchinggraduatestointegrateacrossdisciplinesandskills(hardandsoftskil ls)

(Hagmann&Almekinders,2003),theauthorbelievethattheaboverecommendat ionwiththeemphasisonenhancingsoft-skillsetfor universitystudentswillsomehowpreparethemtobereadyforwork,increasetheire m p l o y a b i l i t y , andevidentlywilldecreasetheirunemploymentrate– whichisalsot h e purposeofeducatorsandhighereducationinstitutions.

Vietnam's tourism and hospitality sectors require the development of international safety and environmental standards, particularly among three-star hotels that struggle to meet global benchmarks Government agencies can play a crucial role by implementing a nationwide evaluation system, enhancing infrastructure, and making Vietnam more appealing for foreign investment Additionally, authorities should consider how to support businesses in the hotel and tourism industries By providing hoteliers and travel agents with the right tools, they can foster more effective collaboration, ultimately leading to improved performance in the hotel sector.

Moreover,amorefavorablepublicpolicycanbeconsideredtoimprovethe q u a l i t y oflaborforceinVietnam’shotelindustry.Forlocallabors,itwouldbenicei f t h e s a l a r y s y s t e m c a n k e e p u p w i t h t h e i n c r e a s i n g q u a l i t y o f l i f e i n Viet nam,e s p e c i a l l y int h e t w o b i g g e s t c i t i e s l i k e H o C h i M i n h a n d H a N o i Fore x p a t s , w o r k i n g i n V i e t n a m w o u l d b e morep o s s i b l e i f t h e s o c i e t y i ss a f e r a n d s t a b l e , o r morepoliciesonprotectingtheireconomicrightsarebeingimplemente d.

Hopefully,morejobscanbecreated,moretalentswilldevotetheirlifeinthecountry ,a n d w i t h t h e p o w e r f r o m b o t h f a c i l i t i e s a n d p e o p l e , t o u r i s m i n g e n e r a l , h o t e l sectorwillbeprovidednecessaryfacilitiestodeveloptocertainstandar dandcompetewithcompetitorsintheareaasastrongplayer.

The study presents valuable theoretical and practical insights applicable to Vietnam's hotel industry; however, it acknowledges certain limitations and suggests areas for future research Firstly, the data was collected from customers in only two major cities using a convenience sampling technique, which necessitates caution in generalizing the results to other geographic locations Secondly, future studies could investigate the indirect relationships between variables, particularly the connection between service quality and customer loyalty Additionally, the proposed research model could be expanded to incorporate factors such as price perception and physical environment, enhancing the understanding of customer loyalty development in the hotel sector Future research should focus on refining these aspects to better explore the roles of service quality, customer satisfaction, hotel image, customer delight, and loyalty within Vietnam's hotel industry.

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