Higher education in Vietnam, in general, and Hanoi, in particular, is expanding and developing strongly amidst socio-economic integration and development. Hanoi is the largest educational center in the country, boasting hundreds of universities, academies, and colleges that attract numerous students from various provinces and cities. Most out-of-province students who enroll in Hanoi need to find accommodation outside the dormitory, making hostels a popular and essential option. Not just a place to stay, finding a hostel that is both convenient for studying and moving and suitable for financial conditions, as well as ensuring safety and cleanliness, is becoming increasingly complex in the context of the constantly increasing demand for accommodation in Hanoi. Although many universities in Hanoi have built their dormitories to serve students, not all students are eligible or want to live in dormitories. Inconveniences such as constrained living space, strict living rules, restrictions on personal freedom, or having to live in crowded apartments are prone to conflicts and make many students rent hostels outside.

Meanwhile, accommodation for students is not just a place to live; it also serves as a daily living environment that directly impacts their spirit, health, and academic performance. Good-quality accommodation with adequate facilities, a comfortable living space, and supportive services like washing machines, air conditioners, and Internet, while ensuring security and hygiene, will help students maintain a comfortable mentality and peace of mind to study and live. Conversely, low-quality accommodation with deteriorating facilities, inadequate security, and poor support services can negatively affect students' lives and learning processes. However, despite the strong development of the student hostel market in Hanoi City, many inadequacies still remain. Some hostels provide service quality that does not meet the expectations of tenants, with high rents not commensurate with utility offerings, while issues related to security, hygiene, and fire prevention remain limited. On the other hand, there have been few in-depth studies evaluating the impact of hostel service quality on student satisfaction at universities in Hanoi. Stemming from this need, examining the influence of hostel rental service quality on student satisfaction at universities in Hanoi is extremely important, as it helps clarify the relationship between service quality and student satisfaction. Simultaneously, it is essential to make suggestions that assist hostel owners in improving service quality, better addressing the increasing needs of students, and creating a more favorable learning and living environment for the younger generation.

Hostel rental service quality

One of the basic needs of human beings is a place to live, also known as a restful space after a period of working outside (Maslow, 1943). The study by Dao (2021) found that hostels are buildings designed for short-term or long-term rental enterprises, where customers are individuals looking to stay for a specific period at an agreed price, also known as rent. The hostel provides private spaces with adequate areas and basic amenities for personal living and is managed by the hostel owner. According to Zeithaml and Britner (2000), service encompasses the behavior, process, and methods employed to create use value that satisfies customers' needs and desires during usage. Service is a unique type of commodity that encapsulates intangible, heterogeneous, inseparable, and non-storable characteristics, making it difficult to predict outcomes in advance (Kotler & Amstrong, 2012). In a broad sense, services constitute the third economic sector in the national economy, encompassing economic activities beyond agriculture and industry. In a narrow sense, services refer to practical activities in which individuals create products that do not exist in a material form, do not result in a transfer of ownership, and aim to fully, promptly, conveniently, and civilly meet the needs of production and social life. Thus, hostel rental services comprise the acts, processes, and methods associated with hostels, aimed at generating use value to fulfill the needs of customers in general and university students in Hanoi City. These services are intangible and do not confer long-term ownership. Based on student needs, hostel rental services include accommodation, daily meal provision, electricity, water, parking, Internet access, entertainment, and more. All these services are generally multidimensional and complex and do not allow for private ownership, making them relatively difficult to measure.

Parasuraman et al. (1988) define service quality as the difference between the customer's expectations for the service before using it and their perception of the service after its use. Service quality reflects the customer’s feelings following the service experience, making its measurement simpler and more convenient (Cronin & Taylor, 1992). Additionally, service quality represents a comprehensive evaluation based on the positive attitude that arises from the customer’s perspective when provided with excellent service (Russell, 1999). Furthermore, Kotler and Keller (2006) argue that service quality encompasses a service's overall durability, reliability, accuracy, ease of operation, ease of repair, and other valuable attributes needed to perform its functions. Ha and Dang (2018) emphasize that service quality encompasses a collection of inherent characteristics of a product, or service that can deliver satisfaction equal to or exceeding the expectations and requirements of customers through their perception of the experience process. In other words, service quality is evaluated based on the gap between customers’ expectations for a product or service and their feelings when using it. Thus, this study approaches from the perspective of Cronin and Taylor (1992) that the quality of hostel rental services reflects the actual perception of hostel services in meeting the accommodation needs of students.

Student satisfaction

The research conducted by Parasuraman et al. (1988) highlighted that customer satisfaction is derived from the comparison of an individual’s accumulated experiences with a product, or service against the ultimate outcome following the delivery of that product, or service. Customer satisfaction is articulated through the emotional responses of customers when a product, or service fulfills the established requirements (Oliver, 1997). Zeithaml and Bitner (2000) asserted that customer satisfaction emerges when the process of customer feedback and evaluation of products, or services aligns with their desires and expectations. Furthermore, customer satisfaction is defined as the alignment between customer perceptions and the elements of the service provided. This satisfaction is manifested through customer attitudes and is subject to fluctuations based on various factors, particularly when there exists a discrepancy between the outcomes achieved and the expectations held regarding the products, or services (Kotler & Keller, 2006).

• If customers achieve actual results that exceed their prior expectations for the product, or services, they experience a high level of satisfaction;
• If customers achieve actual results that align with their previous expectations of the product, or service, they experience an average level of satisfaction;
• If customers achieve actual results that are lower than their previous expectations for the product, or services, they are unsatisfied.

Thus, student satisfaction is a positive psychological state characterized by enjoyment, joy, and comfort when the results of using hostel services exceed expectations.

The relationship between the hostel rental service quality and student satisfaction

From an enterprise perspective, good service quality equals customer satisfaction, and the terms can be used interchangeably (Nguyen & Le, 2021). However, Parasuraman et al. (1988) argued that service quality and customer satisfaction are different concepts, yet a causal relationship exists. Higher service quality increases customer satisfaction; conversely, poor service quality reduces it. Numerous studies affirm the strong correlation between service quality and customer satisfaction, including works by Spreng and Mackoy (1996), Cronin and Taylor (1992), Curry and Sinclair (2002), Nguyen and Nguyen (2007), Seth et al. (2008), Andaleeb and Conway (2006), Ahuja et al. (2011), and Chau et al. (2024).

Consequently, service quality serves as the cornerstone for cultivating customer satisfaction, as it is intrinsically linked to the various elements of the service rendered to customers. In contrast, satisfaction pertains to the degree of positive assessment that customers hold regarding individual components or the overall service experience following usage. Furthermore, Zeitham and Bitner (2000) underscored that various factors influence customer satisfaction; however, service quality has been demonstrated to exert the most significant impact. In other terms, it serves as a crucial determinant of customer satisfaction. Consequently, service quality is recognized as one of the fundamental elements in fostering customer satisfaction. The higher the quality of service delivered, the greater the level of customer satisfaction experienced. This study indicates a positive correlation between the quality of hostel services and student satisfaction, suggesting that a systematic enhancement of hostel service quality will lead to an increase in student satisfaction.

Research model and hypothesis

This study employs the SERVPERF model of Cronin and Taylor (1992) to evaluate the quality of hostel rental services based on the simplicity and convenience of the survey process. Furthermore, the SERVPERF model exclusively focuses on measuring service quality according to the perception level after experiencing the service, receiving validation from other studies, such as Lee et al. (2000) and Brady et al. (2002).

The SERVPERF model was developed based on Parasuraman’s (1988) SERVQUAL model, which consists of five components:

• Tangibles refer to the quality of facilities, equipment, documents, and the appearance and demeanor of personnel;
• Reliability relates to the ability to deliver the service as promised from the first time and remain consistent over time in subsequent transactions;
• Assurance relates to the knowledge, skills, and dedicated attitude of employees;
• Empathy demonstrates understanding and concern for the needs and desires of customers;
• Responsiveness encompasses agility and a willingness to assist customers when needed.

Additionally, Zeithaml and Bitner (2000) emphasized the extent of the effect of price on customer satisfaction. They suggest that price is an important factor in measuring the quality of service. Price is a mandatory cost that customers must pay to own a specific product or service. Pricing is determined by the amount of money a customer relinquishes for the value of the product or service it provides. Table 1 summarizes the factors affecting the quality of hostel rental services, as identified in the research literature of various scholars.

Table 1. Summary of related research works

Source: Summary by the author.

Furthermore, the author has engaged in discussions with several hostel owners and students renting hostels, combined with practical observations, to identify the decisive factors in the experimental results of the above studies and propose research models and hypotheses as follows:

Figure 1. Research model

Source: Recommended by the author.

Based on the research model, the hypotheses are proposed as shown in Table 2:

Table 2. Research hypothesis

Source: Compiled by the author.

Measurement scales

The preliminary scale is formulated based on both domestic and international studies, alongside the initial discussions to solicit feedback from participants regarding the observational variables in the scales. This process is designed to evaluate and either select, enhance, or eliminate observational variables that do not correspond with the finalized content, ensuring that they are concise and appropriate for the context and subject of the research. Furthermore, the author performed interviews with several industry experts within the real estate sector in November 2024 to obtain a more comprehensive understanding of the factors involved and to reevaluate the interrelationships among them in the proposed research model, as well as to refine the observed variables in the preliminary scale following a group discussion. The results confirm no discernible difference among opinions, and experts concur regarding the factors in the proposed research model. Furthermore, the preliminary scale has been augmented with several observational variables and redefined terminology; consequently, the official scale encompasses nine independent factors and one dependent factor corresponding to 41 observable variables.

Sample and data collection

The formal scale is evaluated utilizing a 5-point Likert scale (Level 1 - Strongly Disagree to Level 5 - Strongly Agree) and is transmitted live (20 percent of total questionnaires) and online via social media chat platforms (80 percent of total votes). The target audience for the survey primarily consists of students who are studying and residing in hostels at universities located in the city of Hanoi. The necessary sample size adhered to the optimal ratio of 10:1 when conducting the exploratory factor analysis (EFA), as recommended by Hair et al. (2010), which corresponds to the actual number of questionnaires distributed. Additionally, due to the limited survey period from January to February 2025, it is advisable to employ a convenient non-probability sampling method in order to maximize the number of respondents and facilitate the collection of the requisite number of votes. The results indicated that, after the exclusion of invalid submissions, 425 valid questionnaires were deemed suitable for analysis, yielding a response rate of 97.8 percent. Table 3 presents a summary of the characteristics of the study sample.

Table 3. Demography of respondents

Source: Data from authors’ survey.

Data analysis

The data were analyzed using SPSS 26 software through descriptive statistics, reliability (Cronbach’s Alpha), exploratory factor analysis (EFA), correlation analysis, regression, and the binary logistic regression method to test the hypothesis. In this analysis, the dependent factor is presented in binary form to estimate the probability of an event either occurring or not occurring, based on data collected from independent factors. A value of 1 is assigned when the student is satisfied with the quality of the hostel rental service, while a value of 0 indicates the student's dissatisfaction with the quality of the hostel rental service. The equation for the binary logistic regression model is expressed as follows:

LOG (P*(Y=1)/ P*(Y=0)) = a + b*X1 + c*X2 + d*X3 + e*X4+ f*X5 + g*X6 + h*X7 + k*X8 + l*X9

In which:

Y: the dependent factor (student satisfaction)

Xi: independent factors.

a: constant and b, c, d, e, f, g, h, k, l: impact coefficient

A descriptive analysis of the factors showed that student satisfaction with the quality of hostel rental services at universities in Hanoi reached a high level with mean = 4.23. Empathy is best done was ranked 4.26, came second after location, followed by the price with mean scores of 4.18 and 4.14. Additionally, the standard deviation ranged from 0.63 to 0.78, indicating a relative consensus in student evaluations.

Table 4. Descriptive statistics

Source: Data from authors’ survey.

The analysis results indicate that the independent factors have a Cronbach’s Alpha coefficient exceeding 0.7 and a Corrected Item-Total Correlation coefficient surpassing 0.4. Consequently, the scale demonstrates reliability and discriminant validity for conducting exploratory factor analysis (EFA) (Hair et al., 2010). The findings from the EFA reveal that the KMO statistic is 0.856 and the significance coefficient of Bartlett’s test is 0.000, suggesting that the observed variables are correlated within the factor.

The factor loading exceeds 0.5; therefore, no observed variables are omitted, and they are organized by each factor according to the original hypothesis, further affirming the high quality of the observed variables. With an Eigenvalue greater than 1, nine factors are extracted, accounting for a total variance of 82.417 percent, indicating that nine independent factors represent 82.417 percent of the data variability among the observed variables in the EFA (Table 5).

Table 5. The results of EFA of independent factors

Source: Data from authors’ survey.

The results of the dependent factor analysis indicate that Cronbach’s Alpha coefficient exceeds 0.7, while the Corrected Item-Total Correlation coefficient is greater than 0.4. The Kaiser-Meyer-Olkin (KMO) measure is 0.820, and the significance level of Bartlett’s Test is 0.000. At an Eigenvalue of 1.972, only one factor is extracted, contributing to a total variance of 81.953 percent, which exceeds the 50 percent threshold. Furthermore, the factor loadings of the observed variables are greater than 0.5. Consequently, the scales fulfill the criteria Hair et al. (2010) recommended and are deemed suitable for conducting regression analysis.

Table 6. The results of EFA of the dependent factor

Source: Data from authors’ survey.

The analysis results in Table 6 show that the Pearson correlation coefficient and the VIF coefficient indicate a strong correlation between the independent and dependent factors, with r greater than 0.5 and a significance value of less than 0.05. Additionally, among the independent factors, there is no doubt about the phenomenon of multicollinearity, as the VIF coefficient meets the requirement of being less than 2 and greater than 1, while the tolerance is greater than 0.5. Therefore, the factors are suitable for logistical binary regression analysis.

Table 7. Pearson correlation and VIF coefficient

Source: Data from authors’ survey.

Binary Logistics regression analysis to estimate the impact of independent factors on dependent factors yields the following results:

Table 8. Model Summary

Source: Data from authors’ survey.

The analysis results show that the Sig. The chi-square test value equals 0.000 (satisfying less than 0.05). Additionally, the -2LL value of the Block 1 model reached 139.165, smaller than the -2LL value in the Block 0 model, indicating that the model is statistically significant (Field, 2009). Furthermore, the Cox & Snell R Square coefficient of 0.776 and the Nagelkerke R Square coefficient of 0.795 fall between 0 and 1 (Cox and Snell, 1989; Nagelkerke, 1991), thus confirming the relevance of the regression model.

Table 9. Results of Binary Logistic regression analysis

Source: Data from authors’ survey.

Consequently, the predictive accuracy of the model is notably high, as evidenced by a correct prediction percentage of 96.3%. It demonstrates that the independent variables within the binary logistic regression model exert an influence on the dependent variable. The Wald test further corroborated this assertion, indicating that independent variables with a significance coefficient of less than 0.05 reaffirm the relationship between independent and dependent variables.

Additionally, the degree of influence of independent factors on the dependent factor is indicated by the Exp value (B), which signifies the likelihood that the dependent factor receives a value of 1 or that the student is satisfied with the hostel service.

When the independent factors increase by 1 unit, the dependent factor likewise increases to 1.464, 1.381, 1.334, 1.264, 1.358, 1.446, 1.293, 1.310, 1.412 units. The analysis results indicate that the proposed hypotheses are accepted and positively affect the dependent variable. The Binary Logistics regression equation is stated as follows:

LOG (P*(Y=1)/ P*(Y=0)) = 1.516 + 0.381*Tan + 0.369*Pri + 0.345*CE + 0.323*Rel + 0.306*Ass + 0.288*Res + 0.270*Loc + 0.257*Sec + 0.234*Emp

Table 10. Hypothesis Test

Source: Data from authors’ survey.

Additionally, the study examined the differences between demographic factors and student satisfaction with the quality of hostel rental services using the One-Sample T-Test and the One-way ANOVA analysis. The results indicated that there was no difference in demographic factors regarding student satisfaction. Therefore, the H10 hypothesis is rejected.

The findings of this study validate the significance of the SERVPERF model in evaluating student satisfaction regarding the quality of hostel services in Hanoi, Vietnam, which is recognized as an emerging economy within Southeast Asia. Furthermore, the research has demonstrated that factors related to support services, including location, security, cultural environment, and pricing, constitute fundamental aspects that landlords must enhance to improve service quality and appeal to a greater number of customers.

The limitations of this study are primarily attributed to its reliance on a legacy model and a convenience sampling method, which involves conducting a concentrated survey solely within Hanoi city, thereby limiting its representativeness. Additionally, the research model must account for various other factors, including promotions, psychological influences, and reference groups, among others. These limitations indicate a necessity for further studies to expand upon these findings.

Conclusion

This study summarizes relevant research and models on factors affecting student satisfaction with the quality of hostel rental services in Hanoi. From here, it determines the influence of various factors that impact student satisfaction and offers recommendations to hostel owners. Additionally, the research aids hostel owners in understanding student psychology, enabling them to find solutions to enhance the quality of hostel rooms and attract more customers.

Besides the results achieved, this study also has limitations. The limitations of this study are primarily attributed to its reliance on a legacy model and a convenience sampling method. This method involves conducting a concentrated survey solely within Hanoi city, thereby limiting its representativeness. Additionally, the research model must account for various other factors, including promotions, psychological influences, and reference groups. These limitations indicate a necessity for further studies to expand upon these findings.

Implications

Firstly, hostel owners need to focus on the size of hostels to ensure they are not too cramped and that the space is cool, clean, and well-lit. They should invest more in essential items such as beds, desks, wardrobes, and comfortable seating, utilizing simple yet sturdy and practical designs for daily life. It's important to ensure effective drainage systems to prevent flooding during rain. There should be a spacious and convenient area for drying and laundry, and an additional automatic washing machine or rental laundry service should be available on-site. The hostel should be equipped with surveillance cameras and a secure lock gate system to manage the entry and exit of individuals.

Second, hostel owners should use hostel management software to make expenses transparent, allowing students to track and pay easily. Calculate room rates that are suitable for the common ground and affordability of students, providing various rates for each room type, from basic to high-end, to cater to different financial situations of students. The increase in room prices should be clearly stated in the lease contract, specifying fees including rent, electricity, water, Internet, and cleaning services to avoid unclear fees. Hostels should also offer incentives and discounts, cooperating with schools or social organizations to create financial support packages for disadvantaged students, students from low-income households, and students with long-term rental periods. 

Third, hostel owners need to establish general rules and regulations, such as maintaining quiet at night, properly disposing of garbage, and using shared facilities responsibly through signboards and banners. They should regularly promote and encourage everyone in the hostel to create a positive cultural environment based on respect, solidarity, and mutual support, regardless of region, religion, or lifestyle. Periodically, they should organize general cleaning activities and festival parties to foster connections among members. Furthermore, it is important to implement measures to warn or address violations that seriously impact the communal living environment.

Fourth, hostel owners need to periodically inspect equipment and facilities in each room to promptly detect and fix problems, replace damaged equipment, and meet students' living and learning needs. Transparency in all transactions and fees, such as electricity, water, Internet, and cleaning services, requires a clear bill that is calculated separately for each room.

Fifth, hostel owners need to enhance their ability to respond quickly and effectively to student needs by leveraging popular platforms like Zalo and Messenger to create chat groups that allow students to easily send requests and receive feedback. They should promptly resolve emergency issues such as power outages, water outages, or security incidents. The hostel must be fully equipped with fire alarm systems and fire extinguishers to ensure security and safety for fire prevention and fighting.

Sixth, hostel owners need to be friendly, polite, and ready to receive and handle requests from students quickly and efficiently. Regularly gather opinions and record students’ feedback on the quality of hostels as a basis for enhancing the services provided.

Seventh, hostel owners should prioritize selecting and developing hostels in convenient locations near schools, main transport routes, and utility services such as supermarkets, markets, and hospitals. Simultaneously, surveying students' travel needs is essential to choosing the right area, helping them save time and travel costs. For regions with complex traffic, hostel owners should proactively update information and support students in finding convenient alternative routes.

Eighth, hostel owners need to increase investment in security systems, including the installation of surveillance cameras, safety door locks, corridor lighting, and lighting in common areas. The hostel should have clear entry and exit rules, along with reasonable time regulations to ensure the safety of all residents. Additionally, hostel owners need to be fully equipped with fire prevention and firefighting equipment, such as fire extinguishers, emergency exit ladders, and automatic power cut-off circuit breakers, and should organize fire prevention and firefighting skills training for students when necessary.

Ninth, hostel owners should treat all students fairly, regardless of gender, region, or economic situation. They should avoid angry reactions when students complain about the hostels and instead learn from those complaints to fix problems. Caring for each student by remembering their name, school, or important events fosters a sense of friendliness and closeness. Additionally, they should offer flexible payment options for rent and expenses when students suddenly encounter financial difficulties.

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