UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TRAN DUC TRUNG CANG THE FACTORS AFFECTING CUSTOMER SATISFACTION AND LOYALTY OF MOBILE TELECOMMUNICATION SERVICE IN HO CHI MINH CITY MASTER OF BUSINESSADMINISTRATION THESIS Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TRAN DUC TRUNG CANG THE FACTORS AFFECTING CUSTOMER SATISFACTION AND LOYALTY OF MOBILE TELECOMMUNICATION SERVICE IN HO CHI MINH CITY ID: 22110005 MASTER OF BUSINESSADMINISTRATION THESIS SUPERVISOR: DR TRAN HA MINH QUAN Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENT First and foremost, I would like to thanks to my supervisor Dr Tran Ha Minh Quan for his guidance, encouragement and excellent advice throughout this research study Much appreciation goes to all lecturers at International School of Business, University of Economics Ho Chi Minh City for their expertise in providing me continuous learning process that greatly enriched my knowledge I would like to thank to all my classmates, my friends for their supports and encouragement Last but not least, I would like to take this opportunity to express my profound gratitude to my beloved parents for being patience and never failed giving me continuous supports i ABSTRACT The purpose of this research is to assess mobile telecommunication service quality in Ho Chi Minh City based on perceptions and experiences of customers, to find the linkage between mobile telecommunication service quality attributes, customer satisfaction and customer loyalty in mobile telecommunication service sector Based on the mobile telecommunication service quality model suggested by Lee, Lee and Freick (2001), six main dimensions (call quality, pricing structure, mobile devices, value-added services, convenience in procedures and customer support) were used to find out the relationship among mobile telecommunication service quality, customer satisfaction, and customer loyalty All the data were collected through questionnaires; the sample size of 350 mobile customers was drawn from different mobile carriers in Ho Chi Minh City Descriptive statistical approach, multiple linear regression, Anova were then used to describe and analyze these six dimensions and take them into the involvement with customer satisfaction and loyalty The results show that six dimensions above are positively related to customer satisfaction and customer satisfaction is positive related to customer loyalty Customer support demonstrates the highest positive correlation with customer satisfaction while pricing structure demonstrates the lowest positive correlation with customer satisfaction Keywords: Mobile, Service quality, Customer satisfaction, Customer loyalty, Call quality, Pricing structure, Mobile devices, Value-added services, Convenience in procedures and Customer support ii CONTENTS Acknowledgement i Abstract ii Contents iii Lists of Figures vi Lists of Tables vii CHAPTER 1: INTRODUCTION 1.1.Research background 1.2 Problem statement and research questions 1.3 Research purposes 1.4 Research scope 1.5 Thesis structure 1.6 Summary CHAPTER 2: LITERATURE REVIEW 2.1 Introduction 2.2 Mobile telecommunication service quality 2.2.1 Service quality concept 2.2.2 Service quality attributes 12 2.2.3 Critique of SERVQUAL 15 2.3 Customer loyalty 17 2.4 Customer satisfaction 18 2.5 The relationship between customer satisfaction and customer loyalty 19 2.6 The research model and hypotheses 22 2.6.1 The research model 22 iii 2.6.2 Hypotheses 22 2.7 Summary 24 CHAPTER 3: RESEARCH METHODOLOGY 26 3.1 Introduction 26 3.2 Research design 26 3.3 Research process 26 3.4 Measurement scale 27 3.5 Sample size and data collection procedures 29 3.6 Data analysis method 29 3.7 Summary 30 CHAPTER 4: DATA ANALYSIS AND RESULTS 31 4.1 Introduction 31 4.2 The general characteristics of the sample 31 4.3 Cronbach alpha reliability analysis 32 4.4 Exploratory factor analysis 34 4.4.1 Factor analysis for mobile telecommunication service quality attributes 34 4.4.2 Factor analysis for customer loyalty variable 37 4.5 Multiple linear regression 38 4.5.1 Customer satisfaction and mobile telecommunication service quality 38 4.5.2 Customer loyalty and customer satisfaction 40 4.6 Hypotheses assessment and discussion 42 4.7 ANOVA analysis 43 4.7.1 In the aspect of age with customer satisfaction 43 4.7.2 In the aspect of income with customer satisfaction 44 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 46 iv 5.1 Introduction 46 5.2 Conclusions 46 5.3 Managerial implications 47 5.3.1 Customer satisfaction 48 5.3.2 Call quality 48 5.3.3 Pricing structure 48 5.3.4 Value-added services 49 5.3.5 Customer support 49 5.4 Limitations 50 5.5 Recommendations for future research 50 5.6 Summary 51 REFERENCES 53 APPENDIX 56 QUENTIONNAIRE (VIETNAMESE) 60 QUENTIONNAIRE (ENGLISH) 64 v LISTS OF FIGURES Figure 2.1 The conceptual model of service quality by Parasunaman et al (1985) 10 Figure 2.2 The research model of service quality, customer satisfaction and service loyalty by Caruana (2002) 21 Figure 2.3 Research Model 22 Figure 3.1 Research Process 27 vi LISTS OF TABLES Table 2.1: The definition of five services quality attributes 14 Table 3.1: The main measurement scales of the research 28 Table 4.1: Personal Profile of Respondents 31 Table 4.2: Cronbach’s Alpha results for main survey 32 Table 4.3: KMO and Bartlett’s Test (Mobile telecommunication service quality) 34 Table 4.4: Total variance explained (Mobile telecommunication service quality) 35 Table 4.5: EFA rotated component matrix (Mobile telecommunication service quality) 36 Table 4.6: Cronbach’s Alpha results for new variables) 36 Table 4.7: KMO and Bartlett’s Test (Customer loyalty) 37 Table 4.8: Total variance explained (Customer loyalty) 38 Table 4.9: Total variance explained (Customer loyalty) 38 Table 4.10: Model summary (Customer satisfaction) 39 Table 4.11: ANOVA (Customer satisfaction) 39 Table 4.12: Coefficients (Customer satisfaction) 40 Table 4.13: Model summary (Customer loyalty) 41 Table 4.14: ANOVA (Customer loyalty) 41 Table 4.15: Coefficients (Customer loyalty) 41 Table 4.16: Results of hypotheses test 42 Table 4.17: Descriptive of age on customer satisfaction 43 Table 4.18: ANOVA (Age and customer satisfaction) 43 vii Table 4.19: Descriptive of income on customer satisfaction 44 Table 4.20: ANOVA (Income and customer satisfaction) 44 viii REFERENCES Ahmad, R., & Buttle, F (2002) Customer retention management: A reflection of theory and practice Marketing Intelligence and Planning, 20(3), 149–161 Bendapudi, N., & Berry, L L (1997) Customers’ motivations for maintaining relationships with service providers Journal of Retailing, 73(1), 15–37 Colgate, M., & Lang, B (2001) Switching barriers in consumer markets: An investigation of the financial services industry Journal of Consumer Marketing, 18(4), 323–347 Dick, A S., & Basu, K (1994) Customer loyalty: Toward an integrated conceptual framework 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Analysis of research data with SPSS Statistic Publishing House, Hanoi Parasuraman, A., Zeithaml, V.A., and Berry, L.L (1985) A conceptual model of service quality and its implications for further research Journal of Marketing, 49(4), 41-50 Parasuraman, A., Zeithaml, V.A., and Berry, L.L (1988) SERVQUAL: a multipleitem 54 scale for measuring consumer perceptions of service quality Journal of Retailing, 64(1), 12-40 Peterson, R (1994) A meta-analysis of Cronbach’s coefficient alpha Journal of Customer Research, 21(2), 38-91 55 APPENDIX 1: Data analysis Table 4.1: Personal Profile of Respondents Frequency Age Gender Education Job Salary 18 - 25 year old 26 - 35 year old 36 - 45 year old Over 45 year old Total Female Male Total High school University Master and above Others Total Hoc sinh, sinh vien Nhan vien van phong Truong nhom/Truong phong/Giam doc Tu lam chu Total Under milion VND milion - under 10 milion VND 10 milion - under 20 milion VND Above 20 milion VND Total 56 Percent Valid Cumulative Percent Percent 34.9 34.9 46.6 81.4 12.6 94.0 6.0 100.0 100.0 50.3 50.3 49.7 100.0 100.0 2.0 2.0 87.1 89.1 6.0 95.1 4.9 100.0 100.0 36.0 36.0 122 163 44 21 350 176 174 350 305 21 17 350 126 34.9 46.6 12.6 6.0 100.0 50.3 49.7 100.0 2.0 87.1 6.0 4.9 100.0 36.0 189 54.0 54.0 90.0 21 6.0 6.0 96.0 14 350 4.0 100.0 4.0 100.0 100.0 141 40.3 40.3 40.3 173 49.4 49.4 89.7 15 4.3 4.3 94.0 21 6.0 6.0 100.0 350 100.0 100.0 Table 4.4: Total variance explained (Mobile telecommunication service quality) Total Variance Explained Component Extraction Sums of Squared Initial Eigenvalues Loadings % of Cumulative % of Cumulative Total Variance % Total Variance % 5.384 31.669 31.669 5.384 31.669 31.669 2.773 16.312 47.981 2.773 16.312 47.981 2.011 11.830 59.811 2.011 11.830 59.811 1.305 7.677 67.488 1.305 7.677 67.488 996 5.861 73.349 885 5.204 78.553 805 4.733 83.286 633 3.722 87.008 Dimenion 457 2.686 89.694 10 381 2.243 91.937 11 326 1.916 93.853 12 253 1.487 95.340 13 239 1.403 96.743 14 175 1.027 97.770 15 147 865 98.635 16 122 715 99.350 17 111 650 100.000 Extraction Method: Principal Component Analysis Table 4.18: Descriptive of income on customer satisfaction Descriptives Overall satisfaction with the carrier N Under milion VND milion - under 10 milion VND 10 milion - under 20 milion VND Above 20 milion VND Total 141 173 15 21 350 57 Mean 5.30 5.02 3.87 4.33 5.05 Std Deviation Std Error 1.189 100 856 065 2.066 533 966 211 1.127 060 Descriptives Overall satisfaction with the carrier 95% Confidence Interval for Mean Lower Bound Upper Bound Minimum Maximum Under milion VND 5.11 5.50 milion - under 10 milion 4.89 5.15 VND 10 milion - under 20 2.72 5.01 milion VND Above 20 milion VND 3.89 4.77 Total 4.93 5.16 ANOVA Overall satisfaction with the carrier Sum of Squares Between Groups 41.075 Within Groups 402.194 Total 443.269 df 346 349 Mean Square 13.692 1.162 F 11.779 Sig .000 Table 4.16: Descriptive of age on customer satisfaction Descriptives Overall satisfaction with the carrier N 15 - 19 year old 20 - 29 year old 30 - 39 year old Over 40 year old Total Mean Std Deviation Std Error 122 163 44 21 5.19 4.80 5.36 5.43 1.242 1.099 838 746 112 086 126 163 350 5.05 1.127 060 95% Confidence Interval for Mean Lower Upper Bound Bound 4.97 5.41 4.63 4.97 5.11 5.62 5.09 5.77 Descriptives Overall satisfaction with the carrier Minimum Maximum 15 - 19 year old 20 - 29 year old 30 - 39 year old Over 40 year old Total 58 4.93 5.16 ANOVA Overall satisfaction with the carrier Sum of Squares df Between Groups 19.562 Within Groups 423.706 346 Total 443.269 349 59 Mean Square 6.521 1.225 F 5.325 Sig .001 PHIẾU KHẢO SÁT VỀ CHẤT LƯỢNG DỊCH VỤ DI ĐỘNG Chào Anh/chị, Chúng nhóm nghiên cứu thuộc Trường Đại học Kinh Tế Thành phố Hồ Chí Minh, khoa Sau đại học Hiện nay, tiến hành điều tra nhằm phục vụ việc nghiên cứu chất lượng dịch vụ mạng di động Việt Nam Kính mong Anh/chị dành chút thời gian để trả lời cho số câu hỏi Tất ý kiến Anh/chị có giá trị cho nghiên cứu Chúng xin đảm bảo thông tin Anh/chị cung cấp giữ bí mật sử dụng cho mục đích nghiên cứu Chúng chân thành cảm ơn giúp đỡ hợp tác Anh/chị cho nghiên cứu chúng tôi! Ngày thực : ……………………………… PHẦN I: THÔNG TIN CHUNG Thuê bao di động thức anh/chị thuộc nhà mạng nào? a  Vinaphone d  Gmobile b  Mobifone e  EVNtelecom c  Vietteltelecom f  Vietnamobile g  Khác (vui lòng ghi rõ): ……………… Thuê bao di động thức anh/chị thuộc loại sau đây? a  Thuê bao trả trước b  Thuê bao trả sau c  Thuê bao trả sau kèm theo máy di động nhà mạng d  Khác (vui lòng ghi rõ): …………………… Anh/chị sử dụng thuê bao rồi? ………… năm Bình quân tháng, anh/chị chi tiêu tiền cho thuê bao này? ……………… đồng PHẦN II: NỘI DUNG CHÍNH Anh/ Chị vui lòng cho biết mức độ đồng ý anh/ chị phát biểu sau: 60 SERVICE QUALITY CÁC NHẬN ĐỊNH Mạng di động có chất lượng sóng mạnh, gọi rõ ràng thông suốt Mạng di động có độ phủ sóng rộng khắp Mạng di động mà dùng có mức tính cước phí hợp lý Mạng di động mà dùng có nhiều gói cước hấp dẫn Mạng di động mà dùng cho phép lựa chọn gói cước cách dễ dàng Mạng di động mà dùng cung cấp điện thoại kèm có chất lượng cao Mạng di động mà dùng có chủng loại điện thoại kèm đa dạng cho lựa chọn Mạng di động mà dùng có thiết kế điện thoại kèm chất lượng Mạng di động mà dùng cung cấp nhiều dịch vụ giá trị gia tăng khác Tiện lợi sử dụng dịch vụ giá trị gia tăng mạng di động mà dùng Mạng di động mà dùng có dịch vụ gia tăng cập nhật Mạng di động mà dùng dễ dàng việc đăng ký thay đổi dịch vụ Mạng di động mà dùng có nhân viên thân thiện trình đăng ký thay đổi dịch vụ Mạng di động mà dùng có nhiều hệ thống hỗ trợ khách hàng khác Mạng di động mà dùng có tốc độ xử lý khiếu nại nhanh chóng Hoàn toàn không đồng ý Không đồng ý Hơi không đồng ý Không ý kiến Hơi đồng ý Đồng ý Hoàn toàn đồng ý 7 7 7 7 7 7 7 61 Mạng di động mà dùng dễ dàng để thông báo khiếu nại Mạng di động mà dùng có nhân viên thân thiện thông báo khiếu nại SỰ HÀI LÒNG ĐỐI VỚI DỊCH VỤ Hoàn toàn Không ANH/CHỊ SUY NGHĨ không hài hài lòng NHƯ THẾ NÀO? lòng Cảm nhận Anh/chị thấy khôn ngoan lựa chọn mạng di động sử dụng Cảm nhận Anh/chị mạng di động sử dụng Cảm nhận Anh/chị nhà cung cấp mạng di động SỰ TRUNG THÀNH ĐỐI VỚI DỊCH VỤ Hoàn Không toàn ANH/CHỊ SẼ HÀNH có khả ĐỘNG NHƯ THẾ NÀO? khả Tôi tiếp tục sử dụng mạng di động Tôi có ý định giới thiệu với người khác mạng di động Tôi sử dụng mạng di động có người bạn thân đề xuất sử dụng dịch vụ nhà mạng khác 7 Hơi không hài lòng Không ý kiến Hơi hài lòng Hài lòng Hoàn toàn hài lòng 7 Hơi khả Không ý kiến Hơi có khả Có khả Hoàn toàn có khả 7 PHẦN III: THÔNG TIN CÁ NHÂN CỦA NGƯỜI THAM GIA KHẢO SÁT Anh/chị vui lòng cho biết số thông tin cá nhân sau cách  vào ô  thích hợp: Giới tính a  Nam b  Nữ Độ tuổi a  15 – 19 tuổi b  20 – 29 tuổi c  33 – 39 tuổi d  Trên 40 tuổi 62 Trình độ học vấn a  Trung học phổ thông b  Đại học c  Sau đại học d  Khác (vui lòng ghi rõ): …………………… Vị trí công việc a  Học sinh, sinh viên b  Giáo viên, giảng viên c  Nhân viên văn phòng d  Trưởng nhóm/Trưởng phòng/Giám đốc e  Tự làm chủ f  Khác (vui lòng ghi rõ): …………………… Thu nhập hàng tháng (VNĐ)? a  Dưới 5.000.000 đồng b  5.000.000 – 10.000.000 đồng c  10.000.000 – 20.000.000 đồng d  Trên 20.000.000 đồng HẾT 63 QUESTIONNAIRE FOR MOBILE TELECOMMUNICATION SERVICE QUALITY Dear respondents, We are a research group at University of Economics Ho Chi Minh City, Vietnam We are now conducting a research study on mobile telecommunication service quality in Ho Chi Minh City, Vietnam We would be very grateful if you could take a few minutes to fill in this questionnaire carefully and please not leave any questions unanswered This questionnaire is anonymous and no personal detail is required Your feedback is very important and your answers will be kept in strict confidentiality Thank you very much for your kind assistance and cooperation! Date : ……………………………… PART I: GENERAL INFORMATIONS Which mobile carriers is your main mobile subscriber? d  Vinaphone d  Gmobile e  Mobifone e  EVNtelecom f  Vietteltelecom f  Vietnamobile g  Other (please specify): ……………… What kind is your main mobile subscriber? e  The prepaid subscriber f  The postpaid subscriber g  The postpaid subscriber and enclosing mobile device h  Other (please write down): …………………… How long has you been using this mobile subscriber? ………… year (s) How much is the average monthly payment for your mobile subscriber? ……………… VND PART II: MAIN CONTENTS Please answer the following questions by circling the MOST APPROPRIATE number, based on “1” to “7” scale: 64 STATEMENTS FOR YOUR CURRENT MOBILE CARRIERS The calls are clearly and smoothly The coverage is broad The charge rate for calls is reasonable There are many attractive charge packages It is easy to choose between charge packages with my current mobile carrier My current mobile carriers have many quality phone models which enclosing mobile subscriber My current mobile carriers have many phone models for choosing My current mobile carriers have many quality phone designs My current mobile carriers have many different value-added services It is very convenience to use value-added services of my current mobile carriers My mobile carriers have the value-added services which are always up to date It is very easy to register or change service with my current mobile carrier The staffs of my current mobile carriers is friendly when I register or change service My current mobile carriers has many different customer support systems = strongly DISAGREE … = strongly AGREE 7 7 7 7 7 7 7 65 Their complaint handling is very quickly It is very easy to inform my complaints to my current mobile carriers The staffs of my current mobile carriers is friendly when I inform my complaints 7 = very UNSATISFIED … = very SATISFIED STATEMENTS Your feeling towards choosing your current mobile carriers is wise Your feeling towards your current mobile subscriber Your feeling towards this mobile carriers 7 = not at all LIKELY … = Extremely LIKELY STATEMENTS Intend to continue using your current mobile telecommunication service Encourage friends and relatives to use this mobile telecommunication service Intend to continue using this mobile telecommunication service even my best friend suggest another one 7 PART III: PERSONAL INFORMATION OF PARTICIPANT Please answer the following questions by ticking  into the MOST APPROPRIATE box: Gender c  Male d  Female 66 Age e  15 – 19 year old f  20 – 29 year old g  33 – 39 year old h  Over 40 year old Education background e  High school f  University g  Postgraduate h  Other (please specify): ……………………… Position/Occupation g  Pupil, Student h  Teacher, Lecturer i  Officer j  Supervisor/Manager/Director k  Self-employment l  Other (please specify): ……………………… 10 Monthly income (VND)? e  Under 5.000.000 VND f  From 5.000.000 VND – under 10.000.000 VND g  From 10.000.000 VND – under 20.000.000 VND h  Over 20.000.000 VND THANK YOU VERY MUCH FOR YOUR COOPERATION 67 ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TRAN DUC TRUNG CANG THE FACTORS AFFECTING CUSTOMER SATISFACTION AND LOYALTY OF MOBILE TELECOMMUNICATION SERVICE. .. the relatively short history of the industry Only in the late 1990s did research on factors affecting customer loyalty and carrier switching begin In particular, there are few studies examining... quality in Ho Chi Minh City based on perceptions and experiences of customers, to find the linkage between mobile telecommunication service quality attributes, customer satisfaction and customer loyalty