Factors Effect on Customer Loyalty to Golf Service Industry: Evidence from Vietnamese Golfers

Transcription

1 Factors Effect on Customer Loyalty to Golf Service Industry: Evidence from Vietnamese Golfers Nguyen Thi Kim Thanh, PhD. Candidate, Electric Power University, Vietnam. Abstract The purpose of this study is to explore the factors that affect the of golfers in Vietnam. There are 427 questionnaires were sent to golfers at 18 playgrounds and five training grounds, 389 questionnaires were collected count for 91% response rate, In this, 269 count for is 69.2% is useable. For testing the hypothesizes, PLS-SEM method was applied, the results show that there are three factors that affect the of golfers included: Satisfaction (0.409), Golf Brand (0.216), and perceived value (0.164). However, there are two factors of service quality and membership care do not affect customer. Finally, Conclusion and recommendation also discussed in this study. Key Words: Golf Service Industry, Customer Loyalty, Vietnamese golfers JEL Classification: Z30, Z20, G 14 1

2 1. Introduction Proceedings of the International Conference on Multiple Academic Disciplines, Vietnam Golf is one of the oldest sports in the world with more than 600 years of history. It was born in the early 14th century in Ireland, experiencing many ups and downs, golf has become a massively popular sport today (Foroudi Et al., 2016 and Leong et al., 2015). Starting from the mainland European, golf has spread and formed its global coverage network with thousands of large and small golf courses. However, no matter what scale and in which country it came from, golf is still ranked as one of the most beautiful, attractive and peerage sport. According to the data of Golfviet, n.d. (2013), in 1922, Golf marked its arrival in Vietnam when Ernest Hebrard The French architect put the golf course into the official planning of Da Lat city and 10 years later - in 1933, The first 9 holes golf course of Indochina have appeared, officially marking the formation of this sport in Vietnam. However, due to the disruption of war and economic difficulties, 60 years later, in 1993 Vietnam's first modern international golf course - a newly built Dong Mo golf course officially introduces to the world. Up to 2015, Vietnam has 45 standard golf courses ranging in size from 18 to 54 holes have been put into operation. In addition, hundreds of indoor and outdoor golf courses are also built to meet the growing needs of players. Golf is not just a sport that can be considered as a specific industry, or business type that includes a golf course, infrastructure, hotels, resorts, and activities. According to a survey by Golf's 2020 vision (GBBC's report, 2012) and GBAS (2014), only 19% of golfers use purely golfing in 2014, 57% with the purpose of participation to use the infrastructure, activities (eg: find partners), 24% participated for the purpose of playing golf, using infrastructure and participating in specific activities (eg: carrying out foreign affairs at the national level, participating in regional and world-class tournaments...). Thus, more than 80% of golfers are interested in the infrastructure, hotels, resorts, the provision of social services and activities, which leads golf course business has contributed to the socio-economic benefits of contributing to the budget, job creation and income generation and attracts senior travelers. In 2010, golf courses have paid VND 505 billion and settled 10,000 jobs for employees. In addition, the role of the golf course for international tourism development through attracting golfers from around the world has also created other indirect revenue sources for travel companies through By attracting more international tourists to Vietnam Like other businesses, building a player's to the golf course is critical to the success of golf business. According to Ballester and Aleman (2001), brand serves as a shield to protect business from competitors' marketing activities. It also helps businesses maintain the stability of their business operations, steadily stabilizing the number of customers to ensure revenue, reduce business costs and mistakes of the business. On the other 2

3 hand, attract new customers based on the advice of loyal customers (Evans, Moutinho & Raaij, 1996). Keller (2008) supports this view that customer is an asset of the business. Therefore, it can be said that besides the new customer development strategy, the customer strategy must be placed at the heart of the business planning of the business. In fact, golf course business services in Vietnam have many different characteristics compared to the world. Currently golf courses in Vietnam have been studied. However, most of studies is small-scale surveys and limited survey subjects. Moreover, the understanding of players' views and the factors that influence their decisions will help golf course entrepreneurs to have an objective view of their business and contribute to their development strategy. Therefore, a comprehensive study of factors influencing customer to golf course business in Vietnam is needed. Research objective is to explore the factors that affect the of golfers in Vietnam 2. Literature Review Jacoby & Chestut (1978) reviewed 53 different concepts of scientists in areas of business and psychology, but so far there is no uniform definition of what is of the customer. Oliver (1999, p.34) emphasizes the impact of on customer as repeat buying behavior when defining customer as follows: "Customer is who commit to the consistent implementation of the customer's future acquisition of products and services. This leads to the repetition of buying the same brand or product even though it is influenced by marketing activities that change the buying behavior of customers. " Santouridis and Trivellas (2010) argue that using only the perspective of repurchasing behavior without considering other aspects will not fully explain. From this point of view, in this study, the of golfers is understood as the intention to continue using the services of the golf course. 2.1 Quality of Service and Golfer s Loyalty The quality of the golf course's service is assessed by the following criteria: hole number, grass surface, topography, natural landscape around the yard, club house, Clothing, caddy service, service staff, other moving and auxiliary equipment. According Hutchinson et al. (2009), Clem (2011), golf service quality positively impacts on perceived value of golfers, golfers s satisfaction and their to the pitch. Therefore, to test with practice in Vietnam, the following hypotheses are made: H1: The quality of the golf course's service affects golfers' to the golf course 2.2 Perceived Value and Loyalty of Golfers Perceived value is a consumer's overall appreciation for the utility of a product or service based on their perception of what they receive and what they must pay (Zeithaml et al. (1988). According to Woodruff (1997), "customer perception is the customer's interest, appreciation, and appreciation of product characteristics, performance, and results Morrison 3

4 & Winston (2010) argues that customer perceptions of the value of services. The same will be different based on different perceptions of price and quality, so this is the key factor to impact In addition, the results of Hutchinson et al. (2009) show that perceived value Golfers have a positive impact on both the satisfaction and of golfers. With this research, we have a theory: H2: Perceived value has a positive impact on golfers' to the golf course 2.3 Golf Brand and Loyalty of Golfers The brand is considered as the link between the business and the customer (Sondoh et al., 2007). According to Kuusik (2007), there are four determinants that influence consumer : brand image, consumer satisfaction, belief and the relationships. Moreover, according to Ogba, & Tan (2009), the brand is an invisible asset of the business since it helps the company gain a steady stream. According to the research, many customers decide to buy products or services because of the love with the brand instead of the quality. In the field of sports, branding or brand fame is a fundamental factor in influencing fan (Bauer et al., 2008). To test this factor this research propose a hypothesis: H3: Golf brand has a positive impact on golfers' to golf 2.4 The Satisfaction of Golfers and the Loyalty There are many studies that show that customer satisfaction or satisfaction is the predictor of customer buying (Baker & Crompton, 2000; Cronin, Brady, & Hult, 2000; Duman & Mattila, 2005). According to Fornell, Johnson, Anderson, Cha, & Bryant (1996), when the level of satisfaction increased, the level of customer to the product also increased. This is most evident in repeat buying behavior. The results of Hutchinson et al. (2009), Hwang (2008), Hennessey et al. (2007), Clem et.al, (2011), Brands (2012) affirmed the satisfaction hypothesis positively influences golfers' to golf by promoting repetitive behavior and word of mouth promotion. To test this factor, we have the following hypothesis H4: The satisfaction of golfers has a positive impact on their to the golf course 2.5 Members Care and the Loyalty of Golfers Customer care plays an important role in enhancing the perceived value, the level of satisfaction for consumers when consuming the product, and the quality of products and services (Laurent & Kapferer, 1985) as well as promoting customer engagement with products and brands (Cha et al., 2011). The " members care" in Hutchinson et al. (2009) research is reflected in the association of golf club members and close-friend-friendly actions for players, customer care activities are included in this group. According to research (Clem, 2011), golf courses are often of interest to customers with membership cards while there are very few care activities and engaging players. This is true of business but loses the opportunity to create and enhance the level of commitment of players to play golf course, thus 4

5 turning players into long-term membership of the yard. With this factor, the study hypothesizes is: H5: Members Care has a positive impact on golfers' to golf 3. Methodology 3.1 Research Questions Scale development Scales of the questionnaire were cited by leading authors such as Petrick and Backman (2002) and Brands (2012) based on exchanges with golfers, managers, and experts in the field of marketing research. Scales are developed on the principle of ensuring the scientific content of observed variables with adjustments and additions consistent with reality. The scales used in the previous studies were written by Vietnamese authors and rearranged to suit the Vietnamese style. Sampling Primary data: collected by survey method from questionnaire survey. In addition to data and secondary data collected through newspapers, magazines and Internet websites, primary data is collected through surveys with golfers in Vietnam. Surveys are conducted directly with the golf club, mini golf courses or ed to members of the Vietnam Golf Association. Number of questionnaires sent: about 300 questionnaires (200 questionnaires, 100 electronic questionnaires). Estimated number of questionnaires collected: about 200 respondents In this thesis, the author uses the least-squares Partial Least Squares (Structural Equation Modeling) (PLS-SEM) technique to perform regression analysis of factors. PLS-SEM analysis technique is the second generation multivariate data analysis technique commonly used in business research due to the ability to test the causal and causal causal models supported by theory (Statsoft, 2013). According to Wong (2010), PLS-SEM analysis technique may be a more appropriate alternative for researchers than CB-SEM (Covariancebased Structural Equation Model) analysis in many practical cases. 4. Results and Discussion 4.1 Respondent Profile. A total of 427 questionnaires were sent to golfers at 18 playgrounds and five training grounds, 389 questionnaires were collected count for 91% response rate, In this, 269 count for is 69.2% is useable. The survey was sent directly to golfers and returned within the day, but still 9% of the players did not respond. About the demographic characteristics of golfers surveyed, There are clear differences between golfers when there are 210 men with male sex (78.1%) and only 38 female sex (14.1%). So, it can be said that golf is still regarded as a popular sport for men in Vietnam. 5

6 About profession, the business people are golfers are mainly when there are 180/269 people doing business (66.9%), other jobs such as office workers, or retirees account for a very small percentage. This is also very reasonable because golf is still a great sport and a great investment to pursue. Golfers age in Vietnam is generally between the ages of years, the age of physical fitness and economic development (28.3% of respondents aged and 29.4% and aged 36-45). It can be said that the income of golfers is high compared to the general level of Vietnam when 39.4% of people (106/269 people) have income of million, 33.1% of people (89/269 people Income is between million and 20.4% of people earning over 50 million (55/269). 4.2 Hypothesis Testing The process of analyzing the data in the topic follows the Reflective Model in the order presented in Hair et al., (2013). Inappropriate indexes will be removed. The candidate variables for elimination are "Outer loading" variables that are less than 0.7 and if removed helps improve the statistical criteria to the required level. Table 1: The Reliability of Data Analysis Cronbach's Alpha Composite Reliability Service quality Perceived value Satisfaction Brand Member care Average Variance Extracted (AVE) In Table 1, all values in both Cronbach's Alpha and Composite Reliability columns are greater than 0.7 and in the AVE > 0.5, which satisfies the reliability conditions of the data based on these three criteria. Table 2: Outer Loadings Service quality CLDV12A Percived value Satisfaction Brand Member care CLDV13A CLDV14A CLDV15A CLDV16A CLDV17A CLDV18A CLDV19A

7 CLDV20A 0.72 CLDV21A CLDV22A 0.8 CLDV23A CN CN CN CN CN HL HL HL SQT SQT SQT SQT SQT SQT TH TH TH TH TH TT TT TT The Outer Loadings values are at 0.7 or higher, so no variables are dropped in the model. Table 3: The Discriminant Validity Table uses the Smarteter's Heterotrait - Monotrait Ratio (HTMT) Service quality Perceived value 0.7 Service quality Satisfaction Perceived value Satisfaction Brand Brand Member care Member care The Discriminant validity value is guaranteed when all values in the Heterotrait - Monotrait Ratio (HTMT) have no value greater than

8 Service quality Table 4: VIF Values of Variables Perceived value Satisfaction Brand Member care Service quality Perceived value Satisfaction Brand Member care According to the results in Table 4, all VIF values are less than 5, so we can conclude that there are no multi-collinear cases in the study model Table 5: Summarizes the Values of R2 and f2 of the Data R Square Loyalty Service quality R Square Adjusted Perceived value Satisfaction Brand Member care Service quality 0 Perceived value Satisfaction Brand Member care The significant level of R2 depends on the application. The R2 values in Table 5 are appropriate in this case study. The function value f2 represents the level of influence of the structure (factor) upon exclusion from the model. Structures with a small f2 value (less than 0.02) show low levels of influence in the model Table 6: Predictive Relevance of the Model SSO SSE Q² (=1-SSE/SSO) Service quality 3, , Perceived value 1, , Satisfaction Brand 1, , Member care 1, ,

9 Table 5 shows the predictability of the model. Output variables with a larger value of Q2 are not predictable variables through the model. The output structures in this model have a higher Q2 value, suggesting the model's predictability is acceptable. Table 7: Results Determine the Significance Level of Links (Bootrapping) Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics ( O/STDEV ) P Values Service quality -> Loyalty Perceived value -> Loyalty Satisfaction -> Loyalty Brand -> Loyalty Member care -> Loyalty The P-Values column in Table 6 shows that the links of the model have a significant effect (95%). There are only two links (Service quality -> Loyalty, Member care -> Loyalty) with the negligible impact (below 95%). Table 8: Reliability of Standardized Root Mean Square Residual (SRMR) Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) Saturated Model P Values According to the analysis given by Hair J. (2013), a value of <0.1 is the requirement for the model. In the case of the theme model, this condition is satisfied. Therefore, this model is suitable for data analysis. Table 9: Coefficients of Influence among Factors Service quality Perceived value Satisfaction Brand Member care Service quality Percived value Satisfaction Brand Member care Table 8 shows that the satisfaction factor has the greatest influence on the of the player, followed by the business image and perceived value. The quality of service and the 9

10 interest of the members did not have a significant impact on the results of the bootrapping, so the coefficient is not considered here. Figure 1: PLS-SEM Result 5. Conclusions and Recommendations The results show that the links of the model have a significant influence (95%), whereas only two links (Service quality -> Loyalty, Member care -> Loyalty) Has a negligible effect (below 95%). This means that the two factors of service quality and membership care do not affect customer. At the same time, the satisfaction factor strongly influenced the golfer s (0.409), followed by the brand (0.216) and the perceived value (0.164). This is consistence with previous studies in many areas, including golf (Clem, 2011; Liu, Guo and Lee, 2011; Leong et al., 2015; Kasiri et al. (2017). For example, in the study conducted by Jiang and Zhang (2016) on passenger, research shows that quality of service affects customer satisfaction, but does not. Direct impact on customer. Even for business class clients, satisfaction does not necessarily lead to greater. In addition, frequent flyer promotions from all four companies have not shown efficacy in enhancing customer, according to research findings. This is also very similar to the author's findings from the survey when the "attendance" factor has no direct impact on customer satisfaction. 10

11 Similarly, in a study of golf customer by Clem (2011), the results show that satisfaction has a positive effect on the of golf players. However, there is no evidence of the impact of other factors included in the model (including: member care, quality of service, and perceived value) on customer golf. Instead, these factors have a positive impact on golfers' satisfaction. For the case in Vietnam, the author gives some explanation for this phenomenon as follows: Firstly, most golfers in Vietnam have not yet registered as members of golf courses. That means that most golfers may not yet enjoy the services and incentive programs offered by their golf courses to their members. Because golf is a sport that requires a lot of investment, especially the membership fees, so only a small group of players in Vietnam can afford to pay. For your membership. Meanwhile, although it has gradually become popular among middle-class families, the high cost is still a barrier for many golfers when deciding whether to subscribe or use the service. Of the golf course. Therefore, the main purpose of these people is to practice and explore the sport without the opportunity to experience superior services or services for members. This may be one reason why the survey results do not reflect the impact of the "Member Concern" factor on "Player " Secondly, if you look at the demographic data collected by golfers, we know that most golfers in Vietnam are still new players (most of them have only played 1-3 years). Frequency of play is low (multiple 1-2 times per week or less than once a week). Therefore, it can be said that the playing time and frequency is low, which can cause players not to feel the quality of the golf course and thus become loyal to the golf course. This, combined with the increasing number of golf courses, makes it easier for customers to switch between golf courses, so their perception of the quality of service between golf courses is not clear. To help them build to a golf course. Thus, based on the above explanations, the lack of evidence demonstrates the direct impact of the two factors "Member care" and "Quality of service" on the customer factor. However, these factors have a positive impact on. So, we can have a basis to say that although there is no direct impact of the quality of service customer through links with other factors such as Satisfaction or Value perception. The research results show that there are three factors that affect the of golfers: Satisfaction (0.409), Golf Brand (0.216), and perceived value (0.164). As stated in the analysis of demographic data, most golfer surveyed have high incomes compared to the general level in Vietnam, so the "brand image of Golf "is important to players because it is a way to express themselves to everyone around them. The more famous the golf course, the more famous it will make customers tend to stick more than other less famous golf course. In addition, the explanation for the impact of perceived value, it should be noted that for the main reason Vietnamese golfers are exercising and sports, and it requires and helps to 11

12 improve the health of the players. So, it is not uncommon for players to feel the core value they want to have when they play golf, so the value of the feel factor directly influences the of the customer. References Baker, D. A., & Crompton, J. L. (2000). Quality, satisfaction and behavioral intentions. Annals of tourism research, 27(3), Bauer, K. W., Nelson, M. C., Boutelle, K. N., & Neumark-Sztainer, D. (2008). Parental influences on adolescents' physical activity and sedentary behavior: longitudinal findings from Project EAT- II. International Journal of Behavioral Nutrition and Physical Activity, 5(1), 12. Brands, B. G. (2012). Електронний ресурс. Режим доступу:< interbrand. com/en/bestglobal-brands/2012/best-global-brands aspx. Cha, C. Y., Santos, E., Amano, A., Shimayoshi, T., & Noma, A. (2011). Time-dependent changes in membrane excitability during glucose-induced bursting activity in pancreatic β cells. The Journal of general physiology, 138(1), Clem, J. R. (2011). Theory of flux cutting and flux transport at the critical current of a type-ii superconducting cylindrical wire. Physical Review B, 83(21), Cronin, J. J., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of retailing, 76(2), Delgado-Ballester, E., & Luis Munuera-Alemán, J. (2001). Brand trust in the context of consumer. European Journal of marketing, 35(11/12), Duman, T., & Mattila, A. S. (2005). The role of affective factors on perceived cruise vacation value. Tourism Management, 26(3), Evans, M. J., Moutinho, L., & Van Raaij, W. F. (1996). Applied consumer behaviour. Addison-Wesley. Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: nature, purpose, and findings. the Journal of Marketing, Foroudi, P., Jin, Z., Gupta, S., Melewar, T. C., & Foroudi, M. M. (2016). Influence of innovation capability and customer experience on reputation and. Journal of Business Research, 69(11), Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Hutchinson, J., Lai, F., & Wang, Y. (2009). Understanding the relationships of quality, value, equity, satisfaction, and behavioral intentions among golf travelers. Tourism management, 30(2), Jacoby, J., & Chestnut, R. W. (1978). Brand : Measurement and management. John Wiley & Sons Incorporated. Jiang, H., & Zhang, Y. (2016). An investigation of service quality, customer satisfaction and in China's airline market. Journal of Air Transport Management, 57, Kapferer, J. N., & Laurent, G. (1985). Consumer involvement profiles: a new and practical approach to consumer involvement (No. hal ). Kasiri, L. A., Cheng, K. T. G., Sambasivan, M., & Sidin, S. M. (2017). Integration of standardization and customization: Impact on service quality, customer satisfaction, and. Journal of Retailing and Consumer Services, 35, Keller, J. M. (2008). First principles of motivation to learn and e3 learning. Distance education, 29(2), Kuusik, A. (2007). Affecting customer : Do different factors have various influences in different levels?. 12

13 Leong, D. P., Teo, K. K., Rangarajan, S., Lopez-Jaramillo, P., Avezum, A., Orlandini, A.,& Rahman, O. (2015). Prognostic value of grip strength: findings from the Prospective Urban Rural Epidemiology (PURE) study. The Lancet, 386(9990), Li, C., Xu, D., Ye, Q., Hong, S., Jiang, Y., Liu, X.,... & Xu, Z. (2016). Zika virus disrupts neural progenitor development and leads to microcephaly in mice. Cell stem cell, 19(1), Liu, C. T., Guo, Y. M., & Lee, C. H. (2011). The effects of relationship quality and switching barriers on customer. International Journal of Information Management, 31(1), Morrison, S., & Winston, C. (2010). The economic effects of airline deregulation. Brookings Institution Press. Ogba, I. E., & Tan, Z. (2009). Exploring the impact of brand image on customer and commitment in China. Journal of Technology Management in China, 4(2), Oliver, R. L. (1999). Whence consumer? The Journal of Marketing, Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). Servqual: A multiple-item scale for measuring consumer perc. Journal of retailing, 64(1), 12. Petrick, J. F., & Backman, S. J. (2002). An examination of the construct of perceived value for the prediction of golf travelers intentions to revisit. Journal of Travel Research, 41(1), Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer in mobile telephony in Greece. The TQM Journal, 22(3), Sondoh Jr, S. L., Omar, M. W., Wahid, N. A., Ismail, I., & Harun, A. (2007). The effect of brand image on overall satisfaction and intention in the context of color cosmetic. Asian Academy of Management Journal, 12(1), StatSoft, I. (2013). Statistica version 12 (data analysis software system). Wong, K. K. K. (2013). Partial least squares structural equation modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24(1), Woodruff, R. B. (1997). Customer value: the next source for competitive advantage. Journal of the academy of marketing science, 25(2),