Keywords

Customer, Satisfaction, Convenience, Stores, Services, Quality, and LHU.

Introduction

Convenience stores are becoming more and more popular in Vietnam. The fast pace of life has changed the habits of most urban people in Vietnam. Instead of choosing goods at markets and supermarkets by Abdullah (2012), they tend to go to convenience stores to save time and buy quality goods. The article below will analyze the boom and rise to the throne of convenience store chains and the causes of that boom by Belás & Gabčová (2016). Find out the reasons behind the rise of convenience stores.

The rise of convenience stores in Vietnam: Vietnamese convenience store chains have sprung up like mushrooms and dominated the market quickly. Convenience stores that have been established for a long time and have many reputations, such as Family Mart, Circle K, increasingly gain customers’ trust and expand their operations to more branches. Circle K company in Ho Chi Minh City now has 200 stores spread across the city, and Family Mart is no less competitive with about 150 stores. Along with the development and expansion of long-standing convenience stores, new convenience stores were also built and branded, such as Shop & Go, Ministop, Vinmart+, etc. The birth of a new brand contributes to increasing the competitiveness of the Vietnamese market.

People, especially students and office workers, always tend to choose convenience stores rather than supermarkets or markets. With their many advantages, convenience stores gradually take the throne and dominate the Vietnamese market by Brunner, Stöcklin & Opwis (2018). With the industrial age and busy future, the scale of convenience store chains will undoubtedly grow further by Coyne (2018).

Market change: Currently, markets with unstable prices, sudden ups and downs during the holidays, and the risk of contaminated food have made people no longer have the habit of going to the market by Cronin & Taylor (1992). On the other hand, supermarkets with a wide variety of goods make busy people spend too much time shopping by Coelho & Henseler (2012). Therefore, the demand for using and buying goods at convenience stores is increasing, and if there is demand, there must be supply, which leads to the boom and rise of convenience store chains.

Due to urbanization: The process of urbanization creates an increasing flow of migrants from rural to urban areas, mainly to study and work by Deep (2017). These immigrants make up a large percentage of the customers who come to convenience stores by Kumar & Petersen (2018). Therefore, the author’s research assessing customers’ satisfaction and loyalty to the services of convenience store chains in Vietnam.

Literature Review

Customer Satisfaction (SAT)

Customer satisfaction is the level of a person’s sensory state resulting from comparing the results obtained from consuming a product/service with their expectations by Gronroos (1984). Satisfaction level depends on the difference between received results and expectations, and if the actual results are lower than the expectations, the customer is not satisfied. If the actual results match the expectations, the customer will be happy. If the actual result is higher, customer expectations are very satisfied by Rebekah & Sharyn (2014). Customer satisfaction: Customer satisfaction is vital in business activities so that many topics and scientific books published on this topic. According to Belás & Gabčová (2016), customer satisfaction is considered the foundation in the marketing concept of satisfying customer needs and desires. Customer satisfaction responds to Cronin and Taylor’s perceived difference between experience and expectations (1992). That is, the customer’s known experience of using a service and the results after the service provided by Kotler & Keller (2006).

Customer Loyalty (LOY)

Customer loyalty has been mentioned and studied by many authors. Wu (2011) defines loyalty as a customer’s strong commitment to repeat purchase or their support in favoring future purchases of its products despite other customers’ enticement. Loyalty is analyzed at both the behavioral and attitude levels by Stenbacka (2015). At the behavioral level, loyalty is understood as the customer’s repurchase and use of the brand’s products and services in a certain period by Parasuraman ,et al., (1988); Zeithaml (2000). Besides, they are willing to recommend friends and relatives to buy and use a product, service, or brand they buy and use. Customer loyalty in researching a service means loyalty to a service provider and loyalty to its brand by Thomas, B. & Tobe, J. (2016). Brand loyalty is the return of customers to a brand that is loyal to loyal customers are customers who will stay with the company even in times of trouble, towels by Coelho & Henseler (2012). Theoretically, customer loyalty stems from the satisfaction they get after buying and consuming by Zeithaml, Berry & Parasuraman (1988). With the service, too, customers feel satisfied with what they experience. They will have a desire to return, experience the feeling again, and therefore, they have the act of buying back, attracting more customers by Tigert (2019). They can also communicate well about the service they experience by Thomas & Tobe (2016).

Reliability (REL)

Reliability: Zeithaml & Bitner (2000) defined it as the ability to reliably and reliably deliver promised services. It is about keeping promises of service delivery, pricing, handling customer complaints and complaints, speaking out the ability to provide consistent and timely service the first time around by Brunner, Stöcklin & Opwis (2018). Customers feel secure when using the services of a convenience store chain in Vietnam. The convenience store performs the transaction correctly and without errors. The convenience store secures customer information well by Baltas, Papastathopoulou (2003). The convenience store delivers the service right when they commit it by Ruyter (2018). The convenience store has a high reputation in the heart of customers by Kasper (2015). Based on the concept mentioned above and studies, authors give hypothesis H1 following:

H1: Reliability positively affects customer satisfaction with the services of convenience store chains in Vietnam.

Responsibility (RES)

Responsiveness is the ability to serve manifestations when the employee contacts the customer, the employee directly performs the service, the ability to research to capture relevant information necessary for customer service, make customers trust the company by Cronin and Taylor (1992). This ability is reflected in its reputation and the service staff’s personality to communicate directly with customers by Coyne (2018). The convenience store employees continually strive to build good relationships and pay attention to the needs of each customer by Trown & Menally (2020). The convenience store staff are enthusiastic and friendly to customers. The convenience store staff serve all customers fairly by Won (2015). The convenience store always asks, congratulates, and gives customers every Tet or private event by Carpenter (2008). Based on the concept as mentioned earlier and studies, authors give hypothesis H2 following:

H2: Responsibility positively affects customers’ satisfaction with the services of convenience store chains in Vietnam.

Competence (COM)

Competence: Gronroos (1984) expresses the desire and willingness of employees to provide services to customers, related to the ability to ensure the safety of customers, through physical safety, finance, and information security by Chang & Tu (2005). Employees handle their profession correctly, quickly, and effectively. The convenience store’s staff has sufficient knowledge and professional capacity to advice and answer customer inquiries by Ching (2012). The convenience store staff are always courteous and considerate, and warm to customers. Consulting import and export procedures are straightforward by Clottey, Collier & Stodnick (2008). Based on the above and studies, the authors give hypothesis H3 following:

H3: Competence positively affects customer satisfaction with the services of convenience store chains in Vietnam.

Empathy (EMP)

Empathy is related to creating comfortable conditions for the customer to access the service, such as shortening customer waiting times, service locations, and convenient opening hours for customers by Parasuraman, Zeilthaml & Berry (1985). Explain to customers easily understand and listen to the issues related to them, such as service explanation, cost, solving complaints and inquiries by Zeithaml, Berry & Parasuraman (1988). Demonstrated through the ability to understand and grasp customers’ needs by understanding the customer’s requirements and paying attention to them personally by Deep (2017). The convenience store employees continually strive to build good relationships and pay attention to the needs of each customer by Desai & Talukdar (2003). The convenience store staff are enthusiastic and friendly to customers by Baltas & Papastathopoulou (2003). The convenience store staff serve all customers fairly by Bathcote (2020). The convenience store always asks, congratulates, and gives customers every Tet or unique event by Garton (2020). Based on the concept mentioned above and studies, authors give hypothesis H4 following:

H4: Empathy positively affects customer satisfaction with the services of convenience store chains in Vietnam.

Tangible (TAN)

Tangible means: Focusing on the elements of the appearance of the service such as the appearance, the attire of the service staff, the support equipment for the use, facilities, how the staff dressed by Gronroos (1984). Convenience store and infrastructure are significant factors affecting these enterprises’ operation or inactivity by Hosein & Maryam (2018). Infrastructure is the technical foundation to bring goods from production to consumer by Huddleston, P., & Whipple and Van Auken (2004). The economic growth of Vietnam in recent years has created a massive demand for infrastructure and transportation services. The convenience store has a spacious and convenient head office for customers by Miranda, Konya & Havrila (2005). The convenience store has modern equipment and machinery by Wu (2011). The convenience store staff has a very professional manner and dress neatly and politely when communicating with customers by Ray & Chiagouris (2009). The convenience store has a reasonable and import and export entrustment for Thomas (2013). The based analysis above and studies, authors give hypothesis H5 following:

 H5: Tangible positively affects customer satisfaction with the services of convenience store chains in Vietnam.

 H6: Customer satisfaction positively affects customer loyalty with the services of convenience store chains in Vietnam.

Methods of Research

Inheriting the results of previous studies, the authors proposed a research model, which includes: The dependent variable is determined to be customer satisfaction and loyalty, and the independent variables are the factors affecting customer satisfaction with the services of convenience store chains in Vietnam. The study collected primary data from current customers of convenience supermarket chains in Vietnam through questionnaires and data analysis with appropriate quantitative methods.

The questionnaire includes indicators that are the scales of variables in the research model. The scale of research variables is gathered from the studies of Hair, J., Anderson, R., Tatham & Black (2010). The indicators (or statements) of the scales used are translated from English into Vietnamese, ensuring each statement’s original content and implication with a pure Vietnamese style, easy to understand. The total number of accounts used is 31, measuring seven components in the research model.

The questionnaire was tested with a small sample of customers representing the sample to ensure that the questions were clear and understandable before proceeding with data collection on the large model. From their point of view, customers were asked to rate the degree of true/false for each statement made in the questionnaire. The customer’s evaluations are expressed on a 5-level scale, corresponding to the rating levels of 5.

The authors had to analyze data. The study uses quantitative methods to assess the quality of the scale, including Exploratory Factor Analysis (EFA) and Alpha Cronbach index, and evaluate the relationship between research variables multiple regression. The EFA method allows for assessing the loading level of the measurement indicators on the research variables. It identifies the group of hands with a high loading value for each research variable.

The authors will keep indicators with a loading value of 0.6 or higher with only one variable. Indicators with loading values lower than 0.6 for research variables or high loading values with two or more variables excluded.

The Alpha Cronbach index evaluates the internal consistency of the multi-indicator scale. Alpha Cronbach values of 0.6 and above show that the scale has satisfactory reliability. Finally, the multiple regression method allows the evaluation of the correlation of the independent variables on the dependent variable. The results of multiple regression will enable the testing of research hypotheses.

Qualitative research authors surveyed 30 experts in Vietnam. Thirty experts are managers who are working for convenience stores in Vietnam. The authors conducted quantitative research through questionnaires with observed variables measured using a 5-point Likert scale includes one strongly disagree, and five strongly agree. The authors surveyed 600 consumers who are buying goods in convenience stores.

The data collection time is from July 2020 to December 2020. According to the conventional method by Hair, Anderson, Tatham & Black (2010), the authors selected samples. Besides, the authors collecting data processed through SPSS 20.0 software with descriptive statistical tools, scale testing with Cronbach’s Alpha, discovery factor analysis (EFA), testing Structural Equation Modeling (SEM). Finally. The authors had conclusions and managerial implications by Hair, Anderson, Tatham & Black (2010).

Research Results

The authors tested the scale reliability of a model for factors affecting customer satisfaction and loyalty with the service quality of convenience store chains in Vietnam, including five components.

Table 1 Testing of Cronbach’s Alpha for Factors Affecting Customers’ Satisfaction and Loyalty
No.	Items	Cronbach’s alpha
Reliability (REL)		0.860
REL1	Customers feel secure when using the services of convenience store chains in Vietnam	0.837
REL2	The convenience store performs the transaction correctly and without errors	0.798
REL3	The convenience store secures customer information well	0.847
REL4	The convenience store delivers the service right at the time and high reputation in the heart of customers	0.803
Empathy (EMP)		0.941
EMP1	The convenience store employees constantly strive to build good relationships and pay attention to the needs of each customer	0.837
EMP2	The convenience store staff are enthusiastic and friendly to customers	0.798
EMP3	The convenience store staff serve all customers fairly	0.847
EMP4	The convenience store always asks, congratulates, gives gifts to customers every Tet or personal event	0.803
Responsiveness (RES)		0.843
RES1	The convenience store always satisfies all difficulties, questions, and complaints about customers	0.790
RES2	Time for customers to wait for their short transactions (2-3 minutes) at the convenience store	0.801
RES3	The convenience store apply for publication permits for food, beverage, and cosmetics are simple	0.828
RES4	The convenience store has a 24-hour hotline	0.786
Tangibles (TAN)		0.941
TAN1	The convenience store has a spacious and convenient head office for customers	0.915
TAN2	The convenience store has modern equipment and machinery	0.933
TAN3	The convenience store staff has a very professional manner and dress neatly and politely when communicating with customers	0.923
TAN4	The convenience store has a reasonable and import and export entrustment for customers	0.918
Competence (COM)		0.953
COM1	Employees handle their profession correctly, quickly, and effectively	0.927
COM2	The convenience store’s staff has sufficient knowledge and professional capacity to advise and answer customer inquiries	0.953
COM3	The convenience store staff are always courteous and considerate, and warm to customers	0.940
COM4	Consulting import and export procedures are simple and clear	0.935

Table 1 showed that all Cronbach’s Alpha values of the research components meet this technique’s requirements, specifically, Cronbach’s Alpha values of (1) Reliability, (2) Responsibility, (3) Competence, (4) Empathy, and (5) Tangible. Cronbach’s alpha is higher than 6.0.

Table 2 Testing of Cronbach’s Alpha for Customers’ Satisfaction and Loyalty
Customers’ satisfaction (SAT)		0.945
SAT1	In general, Customers are satisfied with the quality of convenience store services at the convenience store	0.942
SAT2	Customers will introduce to friends and relatives about convenience store services at the convenience store	0.891
SAT3	Customers will continue to use convenience store services at the convenience store	0.926
Customers’ loyalty (LOY)		0.856
LOY1	Quality of convenience store services affecting customer loyalty	0.829
LOY2	Price of convenience store services affecting customer loyalty	0.791
LOY3	Customers’ satisfaction affecting customer loyalty	0.847
LOY4	Customers are willing to use the convenience store services in the following times	0.794

Table 2 showed that all Cronbach’s Alpha values of the research components meet this technique’s requirements, specifically, Cronbach’s Alpha values of customer satisfaction and loyalty. Cronbach’s coefficient is more than 0.6. Table 2 showed that all of (1) Reliability, (2) Responsibility, (3) Competence, (4) Empathy, and (5) Tangible. Cronbach’s alpha is higher than 6.0.

(Source: Researchers discovered)

Table 3 Test Cmin/Df For All of The Components
Model	NPAR	CMIN	DF	P	CMIN/DF	GFI	TLI	CFI
Default model	85	1015.898	293	.000	3.467	.889	.933	.944
Saturated model	378	.000	0			1.000		1.000
Independence model	27	13282.379	351	.000	37.842	.344	.000	.000

Table 3 showed that the assessment of the scale of customers’ satisfaction and loyalty includes the following elements: CMIN/DF = 3.467 (<5.0), GFI = 0.889 (>0.850), TLI = 0.933 (>0.900), CFI = 0.944 (> 0.9) and RMSEA = 0.065.

Table 4 Testing Coefficients for Factors Affecting Customers’ Satisfaction and Loyalty
Relationships			UnstandardizedEstimate	StandardizedEstimate	S.E.	C.R.	P	Hypothesis
SAT	<---	REL	0.210	0.099	0.080	2.632	0.008	Accepted
SAT	<---	EMP	0.111	0.103	0.039	2.848	0.004	Accepted
SAT	<---	RES	0.223	0.214	0.049	4.539	***	Accepted
SAT	<---	TAN	0.159	0.169	0.040	3.984	***	Accepted
SAT	<---	COM	0.173	0.197	0.037	4.694	***	Accepted
LOY	<---	SAT	0.297	0.558	0.025	11.833	***	Accepted

Table 4 showed that the column “P” < 0.01 with significance level 0.01. These results indicated that five factors affect customers’ satisfaction and loyalty with convenience store chains in Vietnam with a significance level of 0.01. These results are science evident for managerial implications to enhance customers’ satisfaction and loyalty.

Conclusions and Managerial Implications

Conclusions

The results obtained from this study are generally similar to the effects of many previous studies worldwide. The authors surveyed 600 customers; 577 samples were processed related to convenience store service. The research results showed that five factors affected customer satisfaction, and customers’ satisfaction affected loyalty at the service quality of the convenience store chains in Vietnam. According to the action plan to improve competitiveness and develop Vietnam’s convenience store services. Intending to make Vietnam a convenience store hub of the region, it is necessary to focus on implementing some of the following tasks and managerial implications in the coming time. With the recent socio-economic characteristics of Vietnam and the rapid and robust development of the convenience supermarket chain model, the failure to record a significant relationship between the two variables above can explain why. Based on the assumption that due to the recent appearance on the market, the image of supermarket chains is not clear, there is no individuality, and there is no difference between the chains in customers’ perception.

Managerial Implications

1. In retail, practical supply chain management promises highly positive inventory control and procurement for retailers. It helps managers be more proactive in controlling work from picking up goods from suppliers, importing and exporting warehouses until products and services reach customers. Retailers now also equip barcode scanners to help them better manage the import and export process for products and save data to the machine for processing. However, most current supply chain management (SCM) applications only provide transactional functions based on inventory management, import, and export. Still, they are not capable of offering analysis from data or complex requirements more complicated. Supplier Performance Analysis: The performance of each supplier can be analyzed based on several factors such as payment cost, delivery time, quality of the products they sell, payment time, etc. Inventory control: Retailers need to pay attention to both current and historical metrics: inventory level, inventory time, delivery time, make accurate decisions in inventory management.

2. Today, the consumer behavior of customers is much more complex, shoppers have more shopping experiences, and consumers are more innovative, so managers need to be agile in understanding the market. For customers’ tastes and shopping behavior, store operations are no longer limited to the store. Data warehouses can help managers have a deeper insight into customer behavior. The following is one of the apps in the store operator. Market Segmentation: At the retail store, the convenience store needs to keep a personal record of each customer when making a purchase or transaction. Keeping customer information helps you to segment your target market from customer shopping behavior. Market analysis from customer shopping cart: this analysis is used to study customers’ consumption behavior when searching for many products simultaneously. For example, a customer who buys diapers for their baby is also likely to buy more wet wipes. However, in practice, this analysis does not have a similarity between retail stores. Different business stores have various shopping cart analytics, and most shopping cart analytics are only famous when users buy products in bundles.

3. Location is one of the most critical factors when opening a convenience store. By simply understanding, choosing the right location determines the accessibility, the ability to consume and directly affects the source of revenue brought to your store. Therefore, for the 24-hour convenience store model, try to choose densely populated locations near schools or offices because the source of customers and the ability to pay these customers can help you solve marketing problems later. The area does not need to be too large if you only aim for an effective small business model. However, make sure that your convenience store has a comfortable parking space for your customers because experience is essential for customers to decide to come and return to your store. Category management: This tool gives retailers a more specific view. If there are too few categories, your customers won’t have much choice. But if there are too many categories, your management will overlap. Therefore, you need to know how to divide the management category most reasonably because, for many retailers, category management is vital for retailers’ survival.

4. Source of goods. For a convenience store, the source of goods is a significant factor because product quality is considered the most crucial factor for returning to your store. You can import wholesale directly from a large supplier such as a supermarket, from the brand of the product you want to import. And for specific and imported goods, please contact the system of import contractors directly. Opening a convenience store won’t cost you too much on equipment and will only require a one-time investment. A kit usually includes Shelves: Depending on the area and size of the store, you can choose the size and number of corresponding shelves. Refrigerator: Usually, with convenience stores, you will only need 1-2 refrigerators for drinks, one refrigerator for fresh food or vegetables. Fast food counters: Some convenience stores like Circle K often have their fast-food area, so setting up a fast-food counter is safe and convenient if this is the direction.

In recent years, convenience stores (mini supermarket, minimart) are becoming a new business trend and are overgrowing. As long as the space is moderate, the investment capital is not much, so this model brings low risk to investors. It also means that the mini supermarket is increasingly facing fierce competition, requiring the owners of mini supermarkets and convenience stores to improve their supermarkets’ competitiveness. When opening a model of a mini supermarket or a convenience store, the most important thing is the source of quality goods, the scientific and eye-catching display of goods, the determination of reasonable product prices, the management of goods, warehouse management, and good service quality. Therefore, the management of goods and payment by barcode technology is essential for today’s stores. This solution helps stores: Pay customers’ orders quickly and conveniently, improve work efficiency in business, control export, import, and dry goods accurately, capture regular business sales based on sales software reports, and promote and enhance the store’s brand.

5. Convenience stores first need to research to build an Omni channel sales model and provide customers with a seamless experience, exploiting technology solutions and utility services to meet customers’ convenience needs. Retailers need a deep understanding of shoppers to help businesses optimize product portfolios, encourage customers to shop frequently and save customers time and money. Moreover, convenience stores must also pay attention to activities that bring about sustainable development. For example, overseas retail chains support the sale of local products in stores, listening to the community’s opinions to improve services. The convenience stores can grow vegetables in a greenhouse right in the supermarket area so that consumers can have a hands-on experience of the product and can harvest fresh vegetables with their own hands.

Particularly for convenience stores, we must define customers as the target. Suppose the “big guys” target many different customer segments. In that case, convenience stores must see which customers are the most important, thereby offering the right products and services and the most appropriate access channels. Convenience stores also need to take steady steps and focus on customer care to retain them. Finally, convenience stores continue improving the quality of retail services based on researching and applying modern retail technology and advanced business administration methods. To step up trade promotion activities, develop and advertise corporate brands online, on internet channels, mobile phones, and social networks. Diversify and develop multi-channel retail to avoid risks and improve business performance. And promote market research and product marketing and integrate consumer information data offline and online for effective customer relationship management.

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