Direct and Indirect Effects of Customer Satisfaction through Product and Service Quality–A Study of Phu Nhuan Jewelry Stores in Ho Chi Minh City, Vietnam

Abstract

 Abstract—This study was conducted to identify the relationship between customer satisfaction, service quality and product quality of Phu Nhuan Jewelry (PNJ) stores in Ho Chi Minh City (HCMC). In addition, this study also examined the impacts of four independent variables which are tangibles, assurance, empathy and price and the intervening variables of perceived service quality and perceived product quality on customer satisfaction. Quantitative approach was the major method used, with statistical techniques applied, including factor, multiple regression, and path analyses. The unit of analysis was at individual level with the target population of all customers of PNJ Company. The empirical results of this study provided an insight of how customers assessed the product and service quality of PNJ stores in HCMC in order to make appropriate adjustments and effective improvements for the business. Based on the path analysis results about the direct and indirect effects of independent variables on the dependent variable, this study suggests that in order to achieve high customer satisfaction, PNJ stores should increase level of service and product quality, improve physical representation of the service (tangibles), promote staff's inspiration of trust and confidence (assurance), provide more empathy to customers, and offer better price.