The effects of switching barrier on the customer retention a study of ceramic companies in vietnam

INTRODUCTION

Rational of the study

Infrastructure construction is a key focus in Vietnam, driven by rapid urbanization and a rising middle class's demand for housing, leading to increased public works and high-rise projects This growth presents opportunities for the building materials industry, particularly the ceramic sector, which has seen stable growth over the past decade The Vietnam Building Ceramic Association reports a market growth of 10% annually from 2000 to 2005, followed by a remarkable 20% in the subsequent two years As a result, Vietnam's ceramic tile market is attracting both domestic and international investors, with 20 companies currently participating To thrive in this competitive landscape, ceramic companies must prioritize customer retention, especially among valuable business clients, while also striving to acquire new customers, as a larger customer base directly correlates with increased profits.

To enhance profitability, ceramic companies must prioritize customer retention, particularly during challenging times However, focusing on unprofitable customers can hinder growth Identifying the top 20% of customers that generate 80% of profits is essential In the ceramics industry, agents play a crucial role, contributing significantly to revenue Conducting research to pinpoint the key factors influencing customer retention will enable organizations to develop effective strategies that benefit both the company and its customers, fostering long-term relationships and mutual gains.

The statement of the problem

Numerous studies have highlighted the advantages of customer retention for organizations (Colgate et al., 2007; Reichheld and Sasser, 1990), yet there is a scarcity of research focused specifically on B2B customer retention While many companies recognize the economic benefits of retaining existing customers over acquiring new ones, the emphasis on this area remains limited.

Ten companies prioritize acquiring new customers over retaining existing ones, focusing their investments on customer satisfaction rather than loyalty Their strategies are often guided by conventional insights regarding profitability and customer contentment.

Organizations often believe that expanding their market or acquiring new customers is the key to maximizing profits However, research shows that retaining existing customers is significantly more cost-effective than acquiring new ones According to Reichheld and Sasser (1990), a mere 5% increase in customer retention can lead to profitability gains of 25% to 85%, depending on the industry Long-term customer relationships result in lower price sensitivity, reduced service costs, and the potential for free word-of-mouth promotions Consequently, many firms prioritize customer retention strategies to foster strong, lasting relationships that encourage repeat business.

Customer satisfaction is traditionally viewed as crucial for a company's success and long-term competitiveness, as it encourages repeat purchases and customer loyalty However, high satisfaction does not guarantee that customers will not switch to other suppliers Research by John Wiley & Sons, Inc (1997) indicates that if the relationship between customer satisfaction, customer relationship management, and customer loyalty is weak, switching barriers significantly influence customers' decisions to remain with their current providers This highlights the importance of switching barriers as an adjustment variable in the connection between customer satisfaction and retention (Lee & Cunningham, 2001; Colgate & Lang, 2001; Jones et al., 2000; Kim et al., 2004) Therefore, businesses should prioritize investing in customer retention strategies moving forward.

In the current ceramic industry, competition is fierce, and the building material market is struggling due to the economic crisis To thrive in this challenging landscape, companies must enhance their adaptability and differentiate themselves from their competitors.

Customer retention is crucial for organizations as it encourages existing customers to continue their purchases Even dissatisfied customers can be retained through switching barriers, which significantly impact customer retention.

Despite the company's current success, systematically enhancing customer retention strategies can significantly boost its competitive edge This study focuses on the factors influencing switching barriers for agents in Vietnam's ceramic industry The thesis aims to deepen the understanding of customer retention in the B2B sector, offering insights to improve company-customer relationships and optimize the operational conditions of ceramic companies.

Research objective

The purpose of this research as following:

- To identify significant factors of switching barrier effect on customer retention in Ceramic Companies in Vietnam

- To measure the effect of these key factors related with customer retention in Vietnam ceramic companies.

Research questions

- What are the main determinant factors impacting on B2B customer retention?

- How can these factors influence on customer retention by the view of agents inCeramic Companies in Vietnam?

Scope of the research

The research focuses on B2B customers of My Duc Ceramic Company, specifically targeting agents who also serve as sales representatives for Dong Tam Group, White Horse Ceramic Company, and other ceramic manufacturers in Vietnam, due to time constraints.

This research will focus on major companies, specifically My Duc Ceramic, Dong Tam, and White Horse, with conclusions drawn from the information obtained in this study.

Research methodology

This research is conducted by using qualitative approach through interviewing experienced experts and quantitative method.

The data collected from the survey was primarily obtained through structured interview The questionnaires are delivered to agents of MDC in three main markets in Vietnam directly.

Qualitative research was conducted through in-depth interviews with key managers at My Duc Ceramics Company, including the International Sales Manager, Local Sales Manager, and Service Team Manager This research aimed to identify and refine the dimensions of customer retention The findings from these interviews informed the design of the questionnaire for the official study.

Quantitative research was conducted by distributing questionnaires directly to agents of MDC in Hanoi City, Danang City, and Ho Chi Minh City The collected data will be analyzed using SPSS version 16.0.

The structure of the research

This research includes five chapters: Chapter 1: Introduction

As presented, this chapter mentioned about rational of the research, statement of the problem, research objectives, research questions, scope and limit of the research and research methodology.

This chapter gives theories related to customer retention or background for the research.

This chapter develops the research model, hypotheses, research process and a methodology for data analysis.

Chapter 4: Research finding and result

This chapter gives the research finding according to analysis the collected data

This concluding chapter summarizes key findings and offers recommendations for enhancing customer retention strategies within Vietnam's ceramic industry Additionally, it outlines suggestions for future research directions.

LITERATURE REVIEW

Ceramic tile

Ceramic tile has been crafted for over 4,000 years to meet human needs for beautiful, durable, and user-friendly living spaces Historical examples of decorative tiled surfaces can be found in ancient structures like the pyramids, Babylon, and Greek ruins The Near East is credited with the invention of decorative tile work, which has flourished there with a wide variety of designs In Europe, the use of decorative tiles became widespread in the latter half of the 12th century, with notable contributions from Spain, Italy, England, the Netherlands, and Germany Today, several Asian countries, including Malaysia, Thailand, Indonesia, Sri Lanka, China, India, and Vietnam, have emerged as significant producers of ceramic tiles.

Ceramic tiles are crafted from a mixture of clay, sand, and other chemicals, which are shaped and then dried in the sun or fired in a kiln at high temperatures They are categorized into two main types based on the firing process: unglazed tiles, which are fired once, and glazed tiles, which undergo a second firing Additionally, ceramic tiles serve various purposes, including roofing tiles commonly used in Mission-style architecture and hand-painted porcelain tiles designed for decorative purposes Today, ceramic tiles are available in an extensive range of designs, shapes, sizes, textures, and surface effects.

Ceramic tile is versatile and can be utilized for various applications such as walls, floors, ceilings, fireplaces, murals, and exterior cladding on buildings Its aesthetic appeal and exceptional durability make it a popular choice for commercial spaces, especially in lobby areas and restrooms.

Vietnam's ceramic production has a rich history that dates back to the Bac Son period (4th-3rd centuries BCE) and saw significant development during the Lý period (1010-1225) As demand for high-quality pottery and porcelain grew, numerous ceramic production centers emerged across the country Established in 1986, the Vietnam ceramic industry began with three factories and has since expanded to over 20, incorporating advanced technologies to produce premium products Leading brands such as My Duc, Dong Tam, and White Horse have made notable advancements in product quality and service, with My Duc catering to high-end customers, Dong Tam offering a diverse range of designs for the mass market, and White Horse ranking third in the industry.

Vietnam has emerged as a key player in the ceramics industry, leveraging its strong design capabilities and artistic quality to become a major supply hub The country's ceramics sector is bolstered by numerous craft villages across various provinces, which blend traditional craftsmanship with modern influences As a result, ceramics account for over 60 percent of Vietnam's total production output Today, Vietnam stands as the largest tile manufacturer in Southwest Asia and ranks among the top tile producers globally.

The ceramic tile industry has experienced significant growth in recent years, but faces challenges due to an oversupply of products from numerous domestic and international manufacturers, particularly from China, where prices are often lower than those of local companies Additionally, the economic crisis has adversely impacted the ceramic business, highlighting the need for strategic improvements to remain competitive in the market.

B2B customer

B2B customer refers to the established sales practice known as business-to-business, which focuses on transactions between companies and wholesale buyers In contrast, B2C, or business-to-consumer, targets individual customers While many organizations operate with both B2B and B2C elements, some companies specialize exclusively in B2B services or sales Notably, a significant portion of products and services sold in the market are classified as B2B.

B2B customers exhibit distinct characteristics compared to B2C customers, as B2B products tend to be more complex and B2B buyers are generally more rational in their decision-making Personal relationships play a crucial role in the B2B market, where buyers often engage in long-term purchasing strategies Additionally, B2B customers are categorized into needs-based segments, which show similarities across various industries Understanding these behavioral and needs-based segments is essential for effectively targeting B2B markets.

• A price-focused segment, which has a transactional outlook to doing business and does not seek any ‗extras‘ Companies are often small.

The target market consists of quality and brand-conscious consumers who prioritize premium products and are willing to invest in them Companies in this segment aim for high profit margins and consider their products or services to be of strategic significance, typically operating as medium to large enterprises.

The service-oriented segment demands exceptional product quality and variety, alongside superior after-sales support, delivery efficiency, and customer service This sector typically engages in purchasing substantial volumes of products.

In a partnership-focused segment, typically comprising key accounts, businesses prioritize trust and reliability, viewing their suppliers as strategic partners These clients consider the products and services they procure to be crucial to their operations, often leading to larger-scale engagements.

B2B communities are typically smaller and have more focused needs compared to B2C communities, centering around specific products, services, or problem-solving scenarios The influence of these communities on organizations is significant, directly affecting core operations such as customer service, marketing, product development, and sales To excel in B2B customer service, companies must ensure exceptional service in all interactions, which requires investing in well-trained employees to effectively address customer issues Many organizations implement internal training procedures to equip staff with the skills needed for quick and professional problem resolution, while external training can also be beneficial Companies can choose to utilize either approach or a combination of both based on their objectives Ultimately, a dedicated customer service department is essential for managing B2B customer service challenges.

Empowering individual employees to act as expert consultants can significantly aid companies in preventing minor issues from escalating into major problems that could damage their reputation Consequently, organizations should allocate sufficient time and resources to effectively manage customer service tasks and activities.

B2B buyers are more discerning due to their responsibility for making purchasing decisions on behalf of their companies They seek high-quality products and services to minimize risk, often willing to pay a premium for greater value Additionally, they prefer engaging actively with the offerings rather than being passive recipients.

Business customers are often viewed as more valuable long-term clients compared to individual consumers The significant volume associated with B2B sales and services contributes to their popularity Without a B2B segment, manufacturers risk missing out on substantial revenue opportunities Consequently, retaining these business clients offers immense advantages, making the potential loss of such customers a serious concern.

Customer satisfaction

Customer satisfaction is a critical concept for marketers and consumer researchers, recognized as a key factor for success in competitive markets Numerous definitions exist for customer satisfaction, highlighting its importance in both theoretical and practical contexts.

Customer satisfaction is defined as the overall attitude of a customer towards a service provider, reflecting their emotional response to the disparity between their expectations and the actual experience According to Zeithaml and Bitner (2000), it involves the evaluation of whether a product or service meets the customer's needs and expectations Kotler (2000) further emphasizes that satisfaction arises from the feelings of pleasure or disappointment that result from comparing perceived performance against expectations Ultimately, achieving customer satisfaction is crucial for businesses, as it signifies their ability to meet or exceed customer expectations.

The relationship between customer satisfaction and customer retention

Customer satisfaction is a critical factor for customer retention, as highlighted by numerous studies (Perkin, 1991; Wilkie, 1990; Rush & Zahorik, 1993) Kotler (2000) emphasizes that higher customer satisfaction leads to increased loyalty and reduced churn However, the dynamics of competitive markets can alter this relationship; in less competitive environments, customers may remain loyal despite dissatisfaction, while in highly competitive markets, even satisfied customers may switch providers due to higher expectations and more options (J.Best, 2009) Kordick (1988) found that 15% of dissatisfied customers still returned to the same dealers, and Gierl (1993) noted that 40% to 62% of satisfied customers changed brands Furthermore, Gierl's research indicated that the retention rate of dissatisfied customers often exceeded that of satisfied ones across various product categories.

Many marketers believe that customer retention is synonymous with satisfaction regarding repurchase intentions However, customer satisfaction does not guarantee continued purchases from the same provider, as there can be a discrepancy between what customers express and their actual behavior Even when customers are pleased with a product, service, or brand, they may choose not to repurchase if competitors offer greater value Thus, various factors can influence customers to spend money with one company while remaining satisfied with others.

Therefore, in highly competitive market, the link between satisfaction and retention is only weak or even nonexistent in some of the analysis.

Custom er‘s retention

Customer retention is a complex concept that encompasses various interpretations, including repurchase intentions, referrals, and brand loyalty According to Zeithaml et al (1996), it involves factors such as repurchase intentions, word-of-mouth communication, and price sensitivity Aspinall (2001) adds that retention is linked to customers' satisfaction and their ongoing relationship with the brand, emphasizing the importance of maintaining strong connections with existing customers In essence, customer retention refers to the efforts made by organizations to minimize customer defections and ensure that customers remain active Businesses aim to acquire and retain customers to avoid the high costs associated with losing them, making retention strategies crucial for long-term success.

Customer retention differs from customer loyalty, despite both being essential for profit generation (Oyeniyi and Abolaji, 2008) Loyalty encompasses both attitudinal and behavioral dimensions, where behavioral aspects focus on repeat purchases and purchasing patterns, while attitudinal aspects involve commitment to a brand and positive recommendations However, as noted by Uncles et al (2003) and Blackwell et al (1999), a customer's attitude toward a brand is a weak predictor of repeat purchases, as individual characteristics and circumstances play a significant role Customer retention does not inherently include attitudinal factors (Jacoby & Chestnut, 1978); a customer may remain with a provider without being loyal Retention can result from mandatory or voluntary reasons, while true loyalty indicates a deeper commitment that prevents customers from switching to competitors, even when attractive offers are available.

Effective customer retention begins with the initial interaction between a business and its customers and persists throughout their entire relationship It involves surpassing customer expectations to foster loyalty, with companies prioritizing customer value over maximizing profits and shareholder returns in their strategic approach.

To enhance customer retention rates, businesses should focus on value-added services that benefit both the company and its customers in the long run By fostering positive relationships, companies can differentiate themselves from competitors and encourage customers to view them as partners rather than mere suppliers This partnership approach aligns the organization's interests with those of the customers, emphasizing the importance of understanding and catering to the unique needs of each client for mutual success.

Repurchase intention refers to a customer's assessment of the likelihood of buying a specific service again from the same provider, influenced by their current situation and future circumstances (Hellier et al., 2003) This intention is shaped by various factors, including psychological influences, economic conditions, environmental considerations, and the customer's ability and necessity to make a purchase (Pickering and Isherwood, 1974).

Customer retention significantly influences profitability, as long-term customers can generate revenue that is more than 1.7 times higher than that of regular customers (John Fleming and Jim Asplund).

Retaining existing customers is significantly more cost-effective than acquiring new ones, with estimates suggesting that it is five times cheaper (Reichheld and Kenny, 1990; Koler, 2000; Rust and Zahorik, 1993) Higher customer retention rates lead to increased profits (Best, 2009), as long-term customers are less likely to switch and are generally less price-sensitive These loyal customers often engage in positive word-of-mouth promotion and referrals, enhancing a company's market position and making it challenging for competitors to gain market share Additionally, they are more inclined to purchase ancillary and high-margin products, further boosting profitability Thus, investing in customer retention strategies is crucial for improving customer profitability and overall business performance (Buchanan and Gilles, 1990).

Enhancing customer retention not only simplifies and enriches employees' roles but also fosters a cycle of increased customer satisfaction Therefore, companies should focus on providing compelling incentives to encourage long-term customer loyalty.

The impact of switching barriers on customer retention has garnered significant attention from researchers, highlighting that customer satisfaction alone does not guarantee loyalty in a competitive market While previous studies, such as those by Fornell (1992), emphasize satisfaction as a key retention factor, Jones and Sasser (1995) argue that even satisfied customers may be tempted by competitors Conversely, Reichheld (1996) suggests that some dissatisfied customers may remain loyal due to the perceived lack of better alternatives This underscores the importance of switching barriers, which influence a customer's decision to stay with their current provider Research indicates that switching barriers serve as an adjustment variable in the relationship between customer satisfaction and retention, as noted by Lee & Cunningham (2001), Colgate & Lang (2001), and Jones et al (2000) Kim et al (2004) further illustrate this dynamic by examining the interplay of customer satisfaction and switching barriers in relation to customer retention.

In a highly competitive market, even satisfied customers may switch providers due to the abundance of choices, indicating that satisfaction alone does not guarantee loyalty or repurchase behavior Research highlights the significance of switching barriers in customer retention, which can be perceived as either positive or negative These barriers are crucial as they encompass the social and emotional costs associated with changing providers, making it challenging and costly for customers to switch Studies by Dwyer et al (1987) and Heide and Weiss (1995) suggest that customers often remain with their current providers to avoid these switching costs, which can deter them from seeking alternatives even when dissatisfied Empirical evidence from Ping (1993) further supports the notion that switching costs significantly influence retailer-supplier loyalty.

Many authors researched and defined the switching barrier variables following:

Tore Nilssen 1985 Endogenous cost: attractiveness of alternatives

Rusbult et al 1986 Alternative quality: how appealing are the alternatives

Investment in relation: time, energy, self-disclosures, shared experiences, a number of children, etc…

1989 Uncertainty cost: cost associated with the psychological uncertainty that accompanies the performance of an untested service provider

Set-up cost: the time and effort associated with the process of initiating a relationship with a new provider, or setting up a new service for initial use

Contractual agreements frequently create economic advantages for remaining with an existing firm, making the potential loss of these benefits a significant deterrent to switching providers.

Soft assets: procedural investments and customer-specific expertise which enhance switching cost perceptions

Switching cost: transaction, learning and artificial

Fornell 1992 Search costs, transaction costs, learning costs, loyal customer discounts, customer habit, emotional costs, cognitive effort, financial, social and psychological risk

Ping 1993 Switching cost: cost in the time and money to change supplier

Attractiveness of alternatives: how much better or worse in various dimensions an alternative wholesaler would be

Investment: how much time, energy and money invested in the relationship

Uniqueness of investment in this wholesaler

Jones et al 2000 Interpersonal relationship: friend or bond with employee

Switching cost: hassle to change, time and effort

Attractiveness of alternatives: how good other suppliers would be in comparison with current supplier

Table 2.1: Define of switching barrier variables

Switching barriers are influenced by various factors that complicate or increase the cost of transitioning to new carriers, brands, or products for dissatisfied customers According to Fornell (1992) and Jone et al (2000), these barriers include search costs, transaction costs, learning costs, loyalty discounts, customer habits, emotional costs, cognitive effort, and various risks—financial, social, and psychological—that customers may encounter Tore Nilssen (1992) further categorizes these barriers into endogenous costs, which pertain to the internal efforts required to retain customers, and exogenous costs, which relate to the appeal of alternative options presented by competitors.

While extensive research has focused on switching barriers in consumer markets, there is a notable lack of studies in B2B markets Key areas of investigation include switching costs, interpersonal relationships, and the attractiveness of alternative providers For instance, Kim et al (2004) explored these factors in the context of loyalty within the Korean mobile telecommunications sector Similarly, Ho Thi Phuong Minh (2009) applied a comparable model to assess the impact of switching barriers on customer retention in Vietnam's mobile service market Consequently, this research emphasizes the significance of switching costs, interpersonal relationships, and the attractiveness of alternatives as critical components of switching barriers.

To enhance retention rates, even among dissatisfied customers, companies often highlight the risks associated with switching providers By implementing strategies that involve significant costs for customers who consider moving to a competitor, businesses aim to discourage transitions to rival products, brands, or services.

Switching costs refer to the expenses or obstacles customers face when changing providers, and research indicates that these costs play a crucial role in customer retention As switching costs rise, customers experience increased risks and burdens, which can deter them from seeking alternatives (Jone et al., 2000; Keaveney, 1995).

Research model and hypothesis

The literature review identifies four key switching barriers that significantly influence customer retention in ceramic companies in Vietnam: Move-in cost, Benefit/Loss cost, Interpersonal relationships, and the Attractiveness of alternatives These factors are crucial for understanding consumer behavior and developing effective retention strategies.

Figure 2.2: The suggested research model

Move-in costs refer to the expenses customers incur when switching to new service providers If these costs are perceived as too high, customers may decide against making the switch Thus, our first hypothesis is established.

H 1 : Move-in cost has positive impact on customer retention

Switching to new suppliers may result in the loss of benefits provided by current providers, known as Benefit or Loss costs If these costs are minimal and not significant enough for agents to consider, they may easily transition to a competitor This leads us to our second hypothesis.

H 2 : Benefit/ Loss costs has positive impact on customer retention

Interpersonal relationships play a crucial role in business, benefiting both the company and its agents A strong, long-term connection between the company and its customers leads to numerous advantages for the customers Therefore, we propose the following hypothesis.

H 3 : Interpersonal relationship has positive impact on customer retention

The attractiveness of alternatives significantly influences retention decisions in a competitive market With numerous options available, customers can easily switch to new providers that offer greater benefits, making it crucial for businesses to enhance their value proposition to retain clients.

H 4 : Attractiveness of alternatives has negative impact on customer retention

RESEARCH DESIGN

Research design

This study investigates the key factors influencing customer retention in the B2B product sector, focusing on the relationships among these factors through a theoretical model The findings aim to assist ceramic companies in Vietnam by identifying critical switching barriers that can enhance competitive advantage in their long-term strategies Recommendations for MDC are provided to help retain existing customers based on thorough analysis and evaluation Additionally, the study concludes with suggestions for future research directions.

The research process began with theoretical foundations, transitioning into the collection of both qualitative and quantitative data While no single data collection method is

In 2003, a comprehensive understanding of the subject led to the implementation of qualitative research through face-to-face interviews with key managers at My Duc Ceramics Limited Company, including the International Sales Manager, Local Sales Manager, and Service Team Manager This approach aimed to identify the initial factors influencing customer retention for the subsequent questionnaire Following this, quantitative research was conducted by distributing questionnaires directly to 121 MDC agents across Hanoi, Danang, and Ho Chi Minh City to collect data.

Research Problems Research Objectives Research Questions

- Basic concepts of customer‘s retention, switching barrier

Initial model (based on previous study and deep interview) Hypotheses

The research was implemented in steps following:

The research focused on identifying the problem, objectives, and questions related to customer retention and satisfaction in B2B contexts, specifically within ceramic companies in Vietnam A literature review provided foundational concepts and models relevant to the study Following in-depth interviews with MDC managers, a proposed model was developed Market research data was collected and analyzed using Cronbach's alpha and Exploratory Factor Analysis (EFA) to refine the model by eliminating unsuitable variables Subsequently, regression analysis was conducted to explore the relationships between independent and dependent variables, identifying key factors that could enhance customer retention strategies for ceramic companies in Vietnam.

Official research

Drawing from established theories (Jone et al., 2000; Kim et al., 2004; Ho Thi Phuong Minh, 2009) and discussions with managers at My Duc Ceramics Company, four key factors influencing customer retention in Vietnam's ceramic

It takes time and costs for learning about new products, services and processes of new suppliers Mov.1

You could spend money and time to change the business‘s plan or strategy when moving to new providers

You may spend a lot of money and couldn‘t have the profit in the first time with new providers Mov.3

It takes time to convince customers to use or buy Mov.4 products of new providers

It takes time to negotiation with new providers about supporting equipment, sales policy, etc Mov.5

It takes time and cost to invest on new equipment with new providers Mov.6

You will miss promotion programs of current providers Ben.7

You will miss benefit of loyal customer of current providers Ben.8

You will miss sales policy (commission, transportation, debit or payment term, sponsor, etc.) from current providers

You will lose the business opportunities with contractors, architects or designers who will be introduced by current providers

You will lose business with customers who interest in products and/or services of current providers Ben.11 You will reduce the diversity of goods in your store Ben.12

You are familiar with current providers and its products and/or services Int.13

You have relationship with current providers and its staffs Int.14

You have to build personal relationships with new providers Int.15

You may not know all the benefits and the risks of new providers Att.16

The quality of products and services of new providers is better than that of current providers Att.17

Business strategy, image and reputation of new providers is suitable for you Att.18

New providers have sales policy (commission, transportation, debit or payment term, sponsor, etc) better than current providers

New providers want to create more favorable advantage for your business Att.20

Overall, providers you feel difficult in switching to other

You will continue to do business with current providers Gen.22

You are likely to recommend the current providers to others Gen.23

Table 3.1 : Summary of retention factors and measurement scale

The switching barrier was assessed through twenty-three questions, while customer retention was evaluated using three key items: the perceived difficulty in switching to other providers, the intention to continue business with current providers, and the likelihood of recommending these providers to others.

Interviews served as the primary data collection method, ensuring optimal results through a well-structured questionnaire This questionnaire, detailed in the appendix, consisted of two parts: Part 1 focused on gathering customer information for statistical analysis, while Part 2 included 23 items across four key factors to assess the hypothesized relationships A five-point Likert scale, ranging from "1=Strongly disagree" to "5=Strongly agree," was utilized to gauge respondents' levels of agreement or disagreement with the statements.

The appropriate sample size for research is influenced by the measurement method and varies among researchers Bollen (1989) and Hatcher (1994) suggest that a minimum of five samples should be collected for each variable, or the sample size should be at least five times the number of variables Additionally, Hair et al (1998) recommend a minimum sample size of 100 to 150 In this study, with 23 tentative questions, the minimum sample size was determined to be 115 A total of 121 agents, representing 40% of the agents in the ceramic industry in Vietnam, were surveyed These agents were selected from Ho Chi Minh City, Danang City, and Hanoi City, which are key domestic markets for major ceramic companies such as My Duc, Dong Tam Group, and White Horse Ceramic Company.

The thesis aims to identify key factors influencing switching barriers that affect B2B customer retention For this analysis, medium to high-value agents were chosen as data sources, based on their revenue and sales volume contributions to ceramic companies.

Data for this study were gathered through a questionnaire distributed directly to agency owners Participants completed the questionnaires, achieving a 100% return rate The collected data were analyzed using SPSS software (version 16.0), with all constructs undergoing confirmatory factor analysis The regression method was employed, utilizing a sample size of 121 respondents.

This chapter presents the proposed research model derived from the literature review theories and outlines the research methodology employed in the study It details the data collection methods, the research process, the verification of the measurement scale, the design of the questionnaire, and the analysis techniques utilized.

DATA ANALYSIS AND FINDINGS

Characteristics of the samples

To prioritize customer relationships effectively, businesses should focus on the 20% of customers that generate 80% of their revenue High-value and medium-value agents are key contributors to profits, with high-value agents accounting for 73% and medium-value agents for 27% of revenue Specifically, these agents generate average revenues ranging from 6 to 9 billion VND and above 9 billion VND, respectively Notably, a significant majority of these valuable agents, 90.9% of high-value and 79.5% of medium-value agents, are located in Ho Chi Minh City and Danang City, highlighting the importance of these regions for MDC's profitability.

The characterristic of samples did not include age, gender, marital status because of B2B customers The research herein focused on their revenue and location.

The research focused on major markets in Vietnam, targeting 121 national agents with a structured sample distribution Specifically, 50 high and medium value agents were selected from both Ho Chi Minh City and Hanoi, while 21 agents were chosen from Danang City, reflecting the varying market levels across these regions.

The initial section of the questionnaire focused on identifying current providers and the number of selected supplier agents in cooperation Analysis of this section revealed that all respondents were distributors for multiple ceramic companies, indicating that the findings of this thesis are applicable to a wide range of ceramic companies, not just MDC This insight can be utilized to improve customer retention and drive additional revenue and profit.

After being sent, questionnaires will be collected and analyzed by using SPSS16.0 software.

Statistical Result

4.2.1 Variables for measuring switching barrier

After thorough testing, all questionnaires were collected for analysis, revealing significant variations in mean values across different variables The highest mean value of 3.4628 for switching barriers indicates that customers are highly concerned about these factors when considering retention in Vietnam's ceramic industry Conversely, the mean value for the attractiveness of alternatives is below 3, suggesting that B2B customers are less focused on this aspect This lack of concern may stem from the challenging economic conditions in Vietnam, particularly within the construction materials sector, where survival is the primary goal for companies, especially ceramic manufacturers Consequently, agents are likely to prioritize maximizing opportunities, reducing costs, and mitigating risks over exploring alternative suppliers, highlighting the substantial impact of the poor economy on their decision-making processes.

N Mean Std Deviation Minimum Maximum

Table 4.1: Descriptive statistics of switching barrier measurement

N Mean Std Deviation Minimum Maximum

Table 4.2 : Descriptive statistics of customer retention measurement

The mean score for overall customer retention, as shown in Table 4.2, is approximately 3, indicating that while scores are below 4 on the five-point Likert scale, they remain above 3 This suggests that agents are hesitant to commit to their current providers This reluctance stems from a desire to minimize risks associated with switching providers during challenging times Consequently, this presents an opportunity for current providers to develop effective customer retention strategies aimed at enhancing future sales.

Data Analysis

This section analyzes the data using Cronbach's Alpha reliability and Exploratory Factor Analysis (EFA) to identify an effective model for customer retention in Vietnam's ceramic companies The analysis aims to compare the collected data with existing theories and suggested models As detailed in Chapter 3, the study examines four independent variables and one dependent variable, measured through 23 items that reflect the level of agreement or disagreement among agents regarding their current providers.

This section analyzes the data using two primary tools: Cronbach's Alpha reliability and Exploratory Factor Analysis (EFA) The objective is to identify an appropriate model for customer retention in Vietnamese ceramic companies, while also examining the differences and similarities between the collected data and existing theories or proposed models.

As presented in chapter 3, there are four independent variables and 1 dependent variable measured by 23 items to indicate how agreed or disagreed agents were with current providers.

4.3.1 Reliability evaluation through Cronbach’s Alpha

Cronbach's alpha is a crucial tool for identifying unsuitable items during the initial evaluation phase Nunnally & Bernstein (1994) suggest that items should be selected if the "corrected item-total correlation" exceeds 0.3 and the Cronbach's Alpha value is above 0.6 Furthermore, any item with a "Cronbach's alpha if item deleted" value higher than the overall Cronbach's Alpha coefficient should also be eliminated After this testing process, the remaining items will undergo analysis through Exploratory Factor Analysis (EFA).

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Move-in cost – Cronbach’s Alpha: 0.896

Benefit/Loss costs – Cronbach’s Alpha: 0.843

Attractiveness of alternative – Cronbach’s Alpha: 0.863

Customer retention (Gen) – Cronbach’s Alpha: 0.772

Table 4.3: Reliability test of switching barrier and customer retention

The testing results, shown in Table 4.3, indicate that the Cronbach's Alpha for nearly all scales is high, exceeding 0.3 However, the item "Ben 8" should be excluded, as its "Cronbach's Alpha if item deleted" value surpasses the overall Cronbach's Alpha coefficient for the "Benefit/loss cost" factor.

After dropped this item, the Cronbach‘s Alpha coefficient is increased from 0.843 to 0.875 as following:

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Move-in cost – Cronbach’s Alpha: 0.896

Benefit/Loss costs – Cronbach’s Alpha: 0.875

Attractiveness of alternative – Cronbach’s Alpha: 0.863

Customer retention (Gen) – Cronbach’s Alpha: 0.772

Table 4.4: Final Reliability test of switching barrier and customer retention

Now all items fulfilled the requirements for further analysis at 0.896, 0.875, 0.859, 0.863 and 0.772 respectively Therefore, these items are successfully chosen for the next step: EFA test

4.3.2 Evaluation the measurement scale by using Exploratory Factor

Analysis 4.3.2.1.Some rules in EFA test

Exploratory Factor analysis requests the factors must be testing by six norms as following:

The Kaiser-Meyer-Olkin (KMO) measure evaluates the suitability of variables for factor analysis, with values ranging from 0.5 to 1 According to Hutcheson and Sofroniou (1999), KMO values between 0.5 and 0.7 are considered mediocre, values from 0.7 to 0.8 are classified as good, values between 0.8 and 0.9 are deemed great, and values exceeding 0.9 are regarded as most useful for identifying underlying factors.

- Eigenvalue, measures the variance in all the variables counted by that factor, should be over 1.0.

- Communality, the proportion of variance explained by the underlying factors, should be above 0.5 (Field, 2005).

- Factor loading is higher than 0.5 in a factor (Jun et al., 2002)

- The differences between factor loadings in each observed variables not lower than 0.3 (Jabnoun et al., 2003) or one items should explain for one factor.

Exploratory Factor Analysis (EFA) evaluates and adjusts the measurement scale by testing inter-correlation between variables This aims to identify the better group or factor from 22 items remaining.

Step 1: the fist result of EFA analysis for switching barrier

The analysis of twenty-two items revealed a KMO value of 0.841 with a significance level of 0.000 Additionally, four components exhibited eigenvalues greater than 1, collectively accounting for a cumulative variance of 71.075%, which exceeds the 50% threshold This indicates that these four components effectively explain 71.075% of the variance in the dependent variable.

All items exhibit factor loadings exceeding 0.3; however, Ben12 demonstrates a factor loading of 0.510 for factor 3 and 0.496 for factor 4, indicating its contribution to two factors Given that the factor loading value is approximately 0.5 and the differences between factor loadings of the observed variables are less than 0.3, it is recommended that Ben12 be eliminated Additionally, all variables require a re-convergence of rotation.

1 2 3 4 mov2 785 mov3 761 mov1 757 mov4 744 mov6 677 mov5 639 411 att19 899 att16 831 att18 684 att17 676 att20 -.440 626 ben7 823 ben9 797 ben11 730 ben10 651 ben12 510 496 int13 880 int14 831 int15 721

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Step 2: The second result of EFA analysis for switching barrier

1 2 3 4 mov2 787 mov3 765 mov1 762 mov4 745 mov6 680 mov5 653 att19 890 att16 823 att17 694 att18 664 att20 -.437 649 ben7 826 ben9 804 ben11 414 720 ben10 653 int13 881 int14 835 int15 722

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

After the rotation converged, the cumulative increase in customer retention explanation rose from 71.075% to 72.035%, indicating a positive enhancement in the four components analyzed Additionally, all items now exhibit a factor loading value exceeding 1.6, satisfying the criteria for the Exploratory Factor Analysis (EFA) test Thus, these findings represent the final results of the EFA test.

Based on the result of the rotated factor matrix, the research model is adjusted. The items in sub-factors of switching barrier are changed.

- The factor 1 includes Mov1, Mov2, Mov3, Mov4, Mov5, and Mov6 It is the same with old independent variables so we keep the name ―Move-in cost‖ for it

- The factor 2 comprises Att16, Att17, Att18, Att19, Att20 with name

- The factor 3 includes Ben7, Ben9, Ben10, Ben 11 which called ―Benefit/loss cost‖

- The three factor loadings Int13, Int14, Int15 under factor 4 It also called

The EFA analysis results for customer satisfaction indicate a KMO value of 0.692 and a significance level of 0.000, with a cumulative variance of 68.714% Additionally, the factor loading of items exceeding 0.5 confirms that the customer retention items meet the necessary criteria, categorizing them as "General."

Kaiser-Meyer-Olkin Measure of Sampling

Table 4.7: KMO and Bartlett’s Test

Initial Eigenvalues Extraction Sums of Squared Loadings

Extraction Method: Principal Component Analysis. a 1 components extracted.

Table 4.9: Final EFA analysis result of customer retention

The EFA results indicate that while the items for each factor have been modified, the underlying factors remain consistent with the previous model Consequently, the initial model is deemed appropriate for further testing.

H1: Move-in cost has positive impact on customer retention

H2: Benefit/ Loss costs has positive impact on customer retention

H3: Interpersonal relationship has positive impact on customer retention

H4: Attractiveness of alternatives has negative impact on customer retention

A correlation coefficient quantifies the strength of a linear relationship between two variables, with the Pearson coefficient being the most widely used measure Values ranging from +/- 0.25 to +/- 0.75 indicate an acceptable level of correlation, while a higher Pearson coefficient signifies a stronger correlation (Field, 2005) A correlation coefficient of zero indicates the absence of a linear relationship between the variables.

M_MOV M_BEN M_INT M_ATT M_GEN

** Correlation is significant at the 0.01 level (2-tailed).

Table 4.10 indicates that all values are significant at the 0.01 level (2-tailed), and the Pearson Correlation values meet the necessary criteria This suggests that the five factors exhibit a linear relationship, making it appropriate to proceed to the next step: Regression Analysis.

Regression analysis identifies the key factors influencing customer retention, focusing on four independent variables: move-in cost, benefit/loss cost, interpersonal relationships, and attractiveness of alternatives, with general customer retention as the dependent variable This analysis was conducted using the regression method in SPSS 16.0, and the results are presented below.

Std Error of the Estimate

1 692 a 480 462 51118 a.Predictors: (Constant), M_ATT, M_INT, M_BEN, M_MOV b.Dependent Variable: M_GEN

The analysis in Table 4.11 reveals that the model explains 48% of the variance in customer retention through four key independent variables: Move-in cost, Benefit/loss cost, Interpersonal relationship, and Attractiveness of alternatives Additionally, 51.12% of customer retention is influenced by other factors.

Squares df Mean Square F Sig.

58.239 120 a.Predictors: (Constant), M_ATT, M_INT, M_BEN, M_MOV b.Dependent Variable: M_GEN

The ANOVA results indicate a significant relationship between four independent variables and the dependent variable, as evidenced by a significance value of Sig = 0.000 Therefore, employing linear regression for this study is deemed appropriate.

B Std Error Beta Tolerance VIF

Customer retention = 0.372*Benefit/loss cost + 0.215* Interpersonal relationship

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

Research indicates that switching barriers significantly influence B2B customer retention in Vietnam's ceramic industry While Kim et al (2004) identified a small coefficient of 0.195 for switching barriers affecting customer loyalty in Korean mobile telecommunications, Ho Thi Phuong Minh (2009) reported an increase to 0.324 in the context of Vietnam's mobile services Current data shows that this coefficient has now exceeded 0.5 for B2B customers in the ceramic sector, highlighting a strong concern among these customers regarding switching barriers and their impact on retention.

Recent interest in retention marketing has led to the emergence of numerous strategies Among these, certain approaches have been identified as particularly effective for business marketers based on analytical results.

This research conducts an empirical analysis of the influence of switching barriers on customer retention within the ceramic industry, offering managers fresh insights into effective retention strategies The findings highlight the structure and impact of these barriers, providing valuable recommendations for businesses in Vietnam's ceramic sector to enhance their customer retention strategies.

To enhance customer retention, ceramic companies must prioritize maximizing switching barriers, particularly in light of agents' current reluctance to leave due to associated costs and interpersonal relationships Understanding the significance of Benefit/loss cost is crucial, as a unit increase in this factor can lead to an approximate 0.372 point rise in retention scores Additionally, companies should focus on improving Interpersonal relationships and Move-in costs, which have coefficients of 0.215 and 0.195, respectively By leveraging these insights, managers can develop effective strategies to improve agent retention, increase operational efficiency, and reduce costs, ultimately safeguarding their existing customer base.

In the current economic crisis, the ceramic industry is significantly impacted, leading agents to prioritize cost-effective business strategies over exploring alternatives To navigate this challenging environment, companies should focus on enhancing internal operations rather than making substantial investments in new programs, thereby improving efficiency for both agents and the organization It is essential for ceramic companies to assess their strengths and weaknesses to develop more efficient and cost-effective business strategies Additionally, implementing effective customer retention strategies with a well-thought-out plan is crucial to mitigate negative customer reactions and align with the company's capabilities.

Recommendations

Focusing on benefit/loss cost is crucial for enhancing customer retention, as current promotions and sales policies must be tailored to meet the high appreciation of agents, reflected in their significant factor loadings of 0.890 and 0.823 To boost customer loyalty, organizations should encourage customers to share their positive experiences and continuously improve customer reward programs and value-added services for long-term agents Additionally, ceramic companies can implement more promotions targeting consumers and their friends or family, recognizing their influence on purchasing decisions and fostering positive word of mouth.

In the competitive landscape of B2B sales, particularly in the ceramic industry, commission and discount rates play a crucial role in attracting customers High commissions can enhance distribution networks and drive future sales; however, Vietnamese ceramic companies face intense pricing competition from foreign rivals, notably China, which offers over 80% of its products at lower prices along with attractive commission rates Given the current economic challenges, local providers are hesitant to adjust prices and commissions due to potential impacts on their financial health Instead, many are opting to review their payment policies, implementing flexible payment terms for agents by increasing credit limits, extending payment timelines, or modifying payment methods This strategic support during tough times helps maintain customer loyalty and fosters long-term relationships with existing suppliers.

Companies should prioritize and accelerate their advertising efforts to effectively reach end-users through television, online platforms, and printed materials, as many local businesses currently overlook this strategy Utilizing comparative advertising to emphasize the strengths and advantages of their products and services over competitors can provide clear information to potential customers Research indicates that relative quality assessments, which include comparisons with competing offerings, are more predictive of customer retention than absolute quality evaluations.

1997) Moreover, companies should build good website containing updated information about products, services, promotion and contact information This can help end-users easily to approach suppliers‘ products.

Product and service quality plays a crucial role in customer retention, serving as a key competitive advantage for companies and their distributors While not always explicitly stated, the impact of quality on retaining customers is significant and widely recognized in retention strategies globally To effectively attract and retain customers, companies must prioritize the enhancement of both product and service quality.

Regarding on Interpersonal relationship, ceramic companies should invest on the relationship with their customers Firstly, customers need to clearly understand and

Companies can enhance customer familiarity with their products and services through effective materials, experience sharing, and training programs provided by suppliers As highlighted by Hennig-Thurau (1997), the exchange of products and services is crucial in buyer-seller relationships, prompting companies to improve their offerings for more convenient transactions Additionally, suppliers play a vital role by sharing market insights, enabling agents to seize opportunities and mitigate risks A streamlined process, along with proactive support from suppliers in addressing customer inquiries and issues, significantly contributes to customer retention and satisfaction.

To enhance service quality, MDC must focus on developing the skills and attitudes of both front office and back office staff The front office serves as a crucial team responsible for direct customer interactions, while the back office encompasses essential functions that operate behind the scenes, unseen by customers.

To enhance customer satisfaction and dealer confidence, the company should increase investment in sales representatives who offer direct support to MDC clients Additionally, recognizing that exceptional service stems from motivated employees, MDC must prioritize a robust reward system to ensure employee satisfaction.

Satisfied employees are key to delivering excellent services, making it essential for ceramic companies to foster strong relationships with their agents To enhance the customer experience, firms should implement effective reward systems while simultaneously improving their products and services Additionally, investing in training to enhance the skills and knowledge of employees, particularly those in front office roles like sales representatives, is crucial for success (Chen & Popovich, 2003).

Analysis shows that the "move-in cost" significantly influences customer retention, with agents particularly worried about the time and money required to change their business plans and the lack of immediate profit Increased hesitation among agents leads to a reduced likelihood of customers switching providers Consequently, companies must closely monitor agents' circumstances and business activities to enhance customer loyalty.

63 order to supporting on time or making decision on investment or expanding selling networks,

64 etc to get profits for both companies and agents This can also help to create closely linked relationship between companies and agents.

Gathering information may appear straightforward for a business, but it often becomes complicated due to the dispersion of data across various departments This disorganization can hinder the ability to swiftly connect information to individual customers.

In 2002, it was emphasized that companies must develop customer data systems to enhance decision-making efficiency and speed Centralizing this data allows for timely management tools, particularly for addressing urgent issues faced by agents By creating comprehensive customer databases, businesses can save both time and costs by implementing tailored programs for each client, thereby avoiding the pitfalls of ineffective, outdated strategies.

Companies can enhance customer retention by identifying potential and loyal customers while developing effective strategies To address customers considering switching providers, businesses should directly interview them to uncover the root causes of their decisions and resolve issues promptly An attentive marketer can implement a successful defection prevention strategy by pinpointing key variables and capturing relevant signals to address them effectively.

In the future, MDC should integrate various methods to leverage switching barriers as a means to enhance customer engagement By analyzing both competitors and customer preferences, MDC can develop effective marketing strategies In today's competitive global market, businesses are continually striving to increase profits, retain existing customers, and attract new ones Despite being a relatively large company, MDC does not require extensive retention programs that demand significant financial, mental, and time resources.

Effective customer retention management hinges on integrating various strategies to foster a conducive business environment for agents A successful approach necessitates the collective efforts of all departments, including the board of directors and staff from both front and back offices, who must be aligned with the company's mission Clear interpretation and communication of this mission to employees is crucial for strengthening the company's foundation Leaders must acknowledge the critical role of customer retention, as companies with strong retention rates tend to experience accelerated growth.

Research limitations

This thesis acknowledges several limitations, particularly the distinct characteristics of agents in Hanoi, Danang, and Ho Chi Minh, which may impact customer retention Research by Jessica Mascareigne and Venka Tako K Yanamandadram highlights additional factors influencing customer retention, including distributive justice, procedural justice, communication effectiveness, customer involvement, and trust Furthermore, the interplay between relationship quality and customer retention is shaped by intrapsychic, contextual, and situational elements Future research should address these limitations by exploring these factors in greater depth.

In the context of the ceramic industry in Vietnam, understanding the specific business conditions is crucial for analyzing how various factors act as adjusting variables within existing interactions To enhance the applicability of this analysis, it is essential to increase the sample size and compare these factors with those in other industries.

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Q uestionnaire

As a Master's student at the University of Economy in Ho Chi Minh City, I am conducting research to enhance B2B customer retention for Vietnamese ceramic companies This study aims to understand how customers perceive and assess the switching barriers established by current providers, including My Duc Ceramic, Dong Tam Group, and White Horse Ceramic Company Your insights and experiences are invaluable, and I kindly request you to complete the following questionnaire regarding customer retention.

All responses are valuable and contribute significantly to this research The findings will support ongoing initiatives aimed at enhancing customer retention strategies for MDC specifically, as well as for other ceramic companies in Vietnam.

Thank you very much for your cooperation!

Please mark (X) corresponding to your answers

1.3 Address:……….Phone No.:……… 1.4 Location: HaNoi DaNang Ho Chi Minh

1.5Level of MDC‘s agents High value Medium value

1.6 Presently, Which ceramic companies do you cooprate with?

American – Home (Vietnam) Other (please specify:

PART 2: SERVEY OF CUSTOMER RETENION

Please give your opinion about these issue following, assuming that you are going to switch to other suppliers.

Code The measure of switching barrier St ro ng ly di sa gr ee D is ag re e N eu tr al A gr ee St ro ng ly ag re e

It takes time and costs for learning about new products, services and processes of new suppliers

You could spend money and time to change the business‘s plan or strategy when moving to new providers

You may spend a lot of money and couldn‘t have the profit in the first time with new providers

Mov.4 It takes time to convince customers to use or buy products of new providers

It takes time to negotiation with new providers about supporting equipment, sales policy, etc.

Mov.6 It takes time and cost to invest on new equipment with new providers

Ben.7 You will miss promotion programs of current providers

Ben.8 You will miss benefit of loyal customer of current providers

Ben.9 You will miss sales policy (commission, transportation, debit or payment term, sponsor, etc.) from current providers

You will lose the business opportunities with contractors, architectors or designers who will be introduced by current providers

You will lose business with customers who interest in products and/or services of current providers

Ben.12 You will reduce the diversity of goods in your store

Int.13 You are familiar with current providers and its products and/or services

Int.14 You have relationship with current providers and its staffs

Int.15 You have to build personal relationships with new providers

You feel uncertain about whether other suppliers can deliver as well as this supplier and, if you choose another suppliers you do not know what you will get

The quality of products and services of new providers is better than that of current providers

Att18 Business strategy, image and reputation of new providers is suitable for you

Att19 New provider has sales policy (commission, transportation, debit or payment term, sponsor, etc) better than current providers

Att20 New providers want to create more favorable advantage for your business

With the current providers, please give us your idea with the question below:

Code The measure of customer retention St ro ng ly di sa gr ee D is ag re e N eu tr al A gr ee St ro ng ly ag re e

Gen.21 Overall, you feel difficult in switching to other providers

Gen.22 You will continue to do business with current providers

Gen.23 You are likely to recommend the current providers to others

Thank you for your time and your support.

Cronbach's alpha analysis result and Factor analysis result

Total 121 100.0 a Listwise deletion based on all variables in the procedure.

Mean Std Deviation N mov1 3.4215 77192 121 mov2 3.3388 73659 121 mov3 3.3140 69562 121 mov4 3.2149 90560 121 mov5 3.2397 76403 121 mov6 3.3306 91641 121

Deleted Scale Variance if Item

Correlation Cronbach's Alpha if Item

Deleted mov1 16.4380 11.198 667 885 mov2 16.5207 10.935 772 870 mov3 16.5455 11.133 780 870 mov4 16.6446 10.098 751 873 mov5 16.6198 11.138 690 882 mov6 16.5289 10.318 693 883

Total 121 100.0 a Listwise deletion based on all variables in the procedure.

Mean Std Deviation N ben7 3.3058 87410 121 ben8 3.2975 90041 121 ben9 3.2727 83666 121 ben10 3.4628 85675 121 ben11 3.3719 87685 121 ben12 3.2893 78992 121

Scale Variance if Item Deleted

Deleted ben7 16.6942 9.614 816 777 ben8 16.7025 11.977 323 875 ben9 16.7273 9.917 794 783 ben10 16.5372 10.701 600 822 ben11 16.6281 10.352 652 811 ben12 16.7107 11.041 597 822

Must be deleted Ben8 because of not fulfill the requirement Here is the result after deliminating it.

Cronbach's Alpha Based on Standardized Items N of Items

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted ben7 13.3967 7.341 817 793 820 ben9 13.4298 7.597 798 778 826 ben10 13.2397 8.217 616 386 870 ben11 13.3306 7.773 703 495 849 ben12 13.4132 8.594 596 362 873

Total 121 100.0 a Listwise deletion based on all variables in the procedure.

Mean Std Deviation N int13 3.1405 84957 121 int14 3.2727 87560 121 int15 3.3554 85498 121

Scale Variance if Item Deleted

Total 121 100.0 a Listwise deletion based on all variables in the procedure.

Mean Std Deviation N att16 2.4215 87323 121 att17 2.6446 81506 121 att18 2.5537 84607 121 att19 2.2810 76619 121 att20 2.6694 86012 121

Deleted Scale Variance if Item

Correlation Cronbach's Alpha if Item

Deleted att16 10.1488 6.844 786 806 att17 9.9256 7.603 652 841 att18 10.0165 7.816 563 864 att19 10.2893 7.241 817 803 att20 9.9008 7.557 613 852

Total 121 100.0 a Listwise deletion based on all variables in the procedure.

Mean Std Deviation N gen21 3.2231 82146 121 gen22 3.1570 83674 121 gen23 3.1488 86276 121

Scale Variance if Item Deleted

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .841

Bartlett's Test of Sphericity Approx Chi-Square df

Initial Eigenvalues Extraction Sums of Squared

Extraction Method: Principal Component Analysis.

1 2 3 4 mov2 785 mov3 761 mov1 757 mov4 744 mov6 677 mov5 639 411 att19 899 att16 831 att18 684 att17 676 att20 -.440 626 ben7 823 ben9 797 ben11 730 ben10 651 ben12 510 496 int13 880 int14 831 int15 721

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

After dropped Ben 12, here is the result:

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .829

Bartlett's Test of Sphericity Approx Chi-Square 1697.256 df 153

Initial Eigenvalues Extraction Sums of Squared

Extraction Method: Principal Component Analysis.

1 2 3 4 mov2 787 mov3 765 mov1 762 mov4 745 mov6 680 mov5 653 att19 890 att16 823 att17 694 att18 664 att20 -.437 649 ben7 826 ben9 804 ben11 414 720 ben10 653 int13 881 int14 835 int15 722

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

Extraction Method: Principal Component Analysis.

Extraction Method: Principal Component Analysis. a 1 components extracted.

Dummy category a Only one component was extracted The solution cannot be rotated.