(Luận văn) factors influencing customer loyalty, a case study of internet users in ho chi minh city

i t to MINISTRY OF EDUCATION AND TRAINING ng UNIVERSITY OF ECONOMICS HOCHIMINH CITY hi ep w n NGUYEN THI XUAN HANG lo ad ju y th yi FACTORS INFLUENCING CUSTOMER LOYALTY pl n ua al A CASE STUDY OF INTERNET USERS IN HO CHI MINH CITY n va ll fu oi m Major Code : Business Administration z : at nh Major z 60.34.05 ht vb k jm om l.c gm n va y te re HCM CITY - 2012 n Supervisor: Dr Tran Ha Minh Quan a Lu ECONOMICS MASTER THESIS ii t to ng hi ACKNOWLEDGEMENTS ep w n lo During working on this thesis, I have learned a lot and tried my best I would ad y th like to sincerely thank all the people who helped me to complete this thesis ju I would like to express my gratitude towards my supervisor Dr Tran Ha yi pl Minh Quan for his patience, helpful guidance, support and contribution And n situation ua al there is a special thank to my husband who always supports me in every va n We also appreciate all the respondents who participated in my survey, fu ll without your kind responses to the questionnaire I definitely could not oi m complete this study nh at Thank all of you for your kind assistances and your valuable time z z ht vb k jm om l.c gm n a Lu n va y te re iii t to ABSTRACT ng hi ep The purpose of this study to examine whether customer satisfaction, w n switching cost, price perception, and corporate image are antecedents of lo ad customer loyalty in the context of the internet service market in Ho Chi y th Minh city We explore the key antecedent of customer loyalty, and the ju difference in Customer Loyalty among the three career groups yi pl The findings show that all of those factors positively influence customer al n ua loyalty In addition, Customer satisfaction is a key antecedent of Customer va Loyalty Furthermore, there is the different level of Customer Loyalty n among different three career groups The studying people group has less fu ll loyalty level than the working /working and studying people group Besides, m oi the implication based on the result of the study as well as further research of nh the study were also represented in this paper at z z Keywords: Customer Loyalty; Customer Satisfaction; Switching cost; Corporate Image; Price Perception; ISP (Internet Service Provider) ht vb k jm om l.c gm n a Lu n va y te re iv t to CONTENTS ng hi ep CHAPTER 1: INTRODUCTION 1.1 Research background w n 1.2 Problem statement lo ad 1.3 Research questions and objectives y th 1.4 Research limitation ju yi 1.5 Thesis structure pl al n ua CHAPTER 2: LITERATURE REVIEW va 2.1 Customer loyalty n 2.1.1 Customer and loyalty customer fu ll 2.1.2 Definition of customer loyalty m oi 2.1.3 Customer loyalty phases nh 2.1.4 Classifications of customer loyalty at z 2.1.5 Importance of customer loyalty z ht vb 2.1.6 Loyalty programs and its benefits 10 jm 2.2 Antecedents of customer loyalty 14 k 2.2.1 Customer satisfaction 14 gm 2.2.2 Switching cost 16 om l.c 2.2.3 Corporate image 17 2.2.4 Price perception 18 a Lu 2.3 Research model 20 n y te re 3.1.1 Research method 22 n 3.1 Research design 22 va CHAPTER 3: RESEARCH METHODOLOGY v t to 3.1.2 Exploratory study 23 ng 3.1.3 Main survey 24 hi ep 3.1.3.1 Sample size 24 3.1.3.2 Data collection procedure 24 w n 3.1.3.3 Research process 25 lo ad 3.2 Measurement 26 y th 3.2.1 Measure of Customer satisfaction 26 ju 3.2.2 Measure of Switching Cost 27 yi pl 3.2.3 Measure of Corporate Image 28 ua al 3.2.4 Measure of Price Perception 28 n 3.2.5 Measure of Customer Loyalty 29 va n 3.3 Data analysis method 30 fu ll 3.4 Summary 30 oi m at nh CHAPTER 4: DATA ANALYSIS AND RESULTS z 4.1 Descriptive data analysis 31 z vb 4.2 Testing factors of research model 33 ht 4.2.1 EFA results of independent variables 33 jm 4.2.2 Exploring Factor Analysis (EFA) 35 k gm 4.2.2.1 EFA results of independent variables 35 l.c 4.2.2.2 EFA results of dependent variable 37 om 4.3 Hypotheses testing 37 4.3.2 Testing hypotheses between Independent Variables and Customer n a Lu 4.3.1 Testing Assumptions of Multiple Regression 37 y te re variables 41 n 4.4 Testing the relationship among qualitative factors and quantitative va Loyalty 38 vi t to 4.4.1 Testing the relationship between gender and Customer Loyalty 41 ng 4.4.2 Testing the different influence levels of career on Customer hi ep Loyalty 43 4.5 Customer’s evaluation on Customer Loyalty following using ISP 45 w n 4.6 Summary 46 lo ad y th CHAPTER 5: CONCLUSIONS ju 5.1 Conclusion 47 yi pl 5.2 Managerial Implication 47 ua al 5.3 Implication for theory and future research 49 n References 51 va n Appendices 59 fu ll Appendix 1: Questionnaire in Vietnamese 59 m oi Appendix 1: Questionnaire in English 62 at nh Appendix 2: Reliability results of measurement scales – Pilot test 66 z Appendix 3: EFA results of independent variables – Main survey 69 z vb Appendix 4: EFA results of dependent variable – Main survey 71 ht Appendix 5: Testing assumptions of multiple regression 72 jm Appendix 6: Histogram, Normal P – P plot and Scatter plot 73 k om l.c gm Appendix 7: Multiple Regression Line results 76 n a Lu n va y te re vii t to LIST OF FIGURES ng hi ep Figure 3.1 Fundamental differences between quantitative and qualitative research strategies 22 w n Figure 3.2 Research process 26 lo ad Figure 4.5 Mean of each used ISP name on Customer Loyalty 46 y th Figure 4.4 Histogram, Normal P – P plot and Scatter plot of Dependent ju yi Variable – CL 73 pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re viii t to LIST OF TABLES ng hi ep Table 3.1Scale of Customer Satisfaction 27 w Table 3.2: Scale of Switching Cost 27 n lo Table 3.3: Scale of Corporate Image 28 ad Table 3.4: Scale of Price Perception 29 y th Table 3.5: Scale of Customer Loyalty 29 ju yi Table 4.1 – Sample characteristics 31 pl Table 4.2 Cronbach Alpha of observed variables 33 al n ua Table 4.3: EFA for independent variables 36 n va Table 4.4: Multiple regression between independent variables and dependent ll fu variable 39 oi m Table 4.5: Anova between independent variables and dependent variable 39 Table 4.6: Coefficients between independent variables and dependent nh at variable 40 z Table 4.7 - Independent samples t-test results of gender factor and CL 42 z ht vb Table 4.8 The analysis results of the different influence levels of career jm factor on Customer Loyalty 43 k Table 4.9 - Mean of each using ISP on Customer Loyalty 45 om l.c gm n a Lu n va y te re ix t to ABBREVIATIONS ng hi ep ISP: Internet Service Provider w EFA: Exploring Factor Analysis n lo MRL: Multiple Regression Model ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re t to Chapter 1: Introduction ng hi The introduction chapter identifies the research background, present the ep problem statement, the research questions, and introduce the research w methodology, the objectives as well as limitation of the study In addition, the n lo significance of the research problem and the organization of the thesis are also ad outlined y th ju 1.1 Research background yi pl The internet service market is growing very fast in many countries over the ua al world And Vietnam is not an exception case Up to July 2011, Vietnam has n 29.5 million of people using Internet, equal to 33.99% of population, and va n forecast increasing to 40% in 2012 (Ha Nam Khanh Giao & Tran Huu Ai, ll fu 2011) Internet is one of the most common means of communication oi m nowadays In Vietnam, internet contributes 42% of daily communication at nh means (http://www.thongkeinternet.vn/jsp/tintuc/tintuc.jsp) Internet service market is growing very fast in over the world Asia region has biggest internet z z user number Vietnam is one of the countries which has highest increasing vb ht percentage of internet users in Asia region There are many service providers in jm Vietnam such as VNPT, FPT, Viettel, SPT, SCTV… Therefore, studying about k om l.c attention to this area gm this service has inspired many researchers to devote more of their research It has been figured out by previous researchers that as markets become a Lu more competitive, firms are more likely to try maintaining their market share n business The significance of customer loyalty cannot be overemphasized y maintain customer long-term relationships becomes as a critical mission for te re be more concentrated their strategic efforts on customer retention, therefore to n competition and the costs of acquiring new customers increase, companies will va by focusing on retaining current customers It’s also obvious that when 63  SCTV t to ng  SPT hi 6) Your Career  Studying at school or University ep w  Working n  lo Working and Studying ad Part II: y th Following is your evaluation to the internet ISP which you are using at your ju yi home Please give your appropriate evaluation by giving point from to pl Disagree Neutral Agree Strongly agree n ua al Strongly disagree va Please select one option n Statements Disagree Neutral Agree Strongly agree 5 ll fu Strongly disagree oi nh 1.The prices charged by my ISP are m Price Perception (PP) z z 2.My ISP’s services are value-for- at reasonable vb jm 4 5 k 3.I f the price is cheaper, that is an ht money gm important reason to stay with the Customer Sastisfaction (CS) va n that I see reasonable y te re The ISP satisfies my need n The ISP meets all the requirements a Lu I am satisfied with the ISP om l.c service 64 t to I believe that I did the right thing 5 5 5 5 ng when I chose this ISP hi ep Corporate Image (CI) I have always had a good w impression of my ISP n lo ad In my opinion, my ISP has a good ju y th image in the minds of customers yi 10 I believe that my ISP has a better pl image than its competitors ua al Switching Cost (SC) n 11 It takes me a great deal of time va n and effort to search for and to get used ll fu to a new ISP m oi 12 It costs me too much to switch to z at 13 In general it would be a hassle nh another ISP z ht vb switching to another ISP 2 3 5 k 14 I consider the ISP as my first jm Customer Loyalty (CL) om the next 12 months n a Lu 16 I have said positive things about l.c 15 I will patronize the ISP more in gm choice for internet service va the ISP to other Colleagues n y colleagues who seek my advice te re 17 I have recommended the ISP to 65 t to 18 I have encouraged others to ng patronize the ISP hi ep Thank you for your assistance to this survey! w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 66 t to Appendix 2: Reliability results of measurement scales – Pilot test ng hi ep Case Processing Summary w N n Valid lo Cases ad a Excluded y th Total % 20 100.0 0 20 100.0 ju a Listwise deletion based on all variables in the procedure yi pl n ua al Reliability Statistics n va Cronbach's Alpha N of Items ll fu oi m 613 at nh Corrected Item- 472 PP2 6.5855 1.761 436 PP3 6.1994 1.872 359 441 491 1.762 gm 6.4459 k PP1 if Item Deleted jm Total Correlation Cronbach's Alpha ht Item Deleted vb Deleted z Scale Mean if Item Scale Variance if z Item-Total Statistics 602 om l.c a Lu n Reliability Statistics N of Items y te re 818 n va Cronbach's Alpha 67 t to Item-Total Statistics ng Scale Mean if Item Scale Variance if hi Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted w 2.678 646 777 CS2 6.3960 2.354 654 772 CS3 6.4003 2.340 721 698 6.2101 2.543 621 735 n 6.1752 lo ep CS1 ad CS4 y th ju Reliability Statistics yi Cronbach's Alpha N of Items pl n ua al 747 va Item-Total Statistics n Corrected Item- Cronbach's Alpha ll Total Correlation if Item Deleted fu Scale Mean if Item Scale Variance if Deleted Item Deleted m 6.3191 1.656 CI2 6.2051 1.701 CI3 6.1795 1.854 oi CI1 at nh 572 621 632 554 465 731 z z vb jm N of Items gm 758 k Cronbach's Alpha ht Reliability Statistics om l.c Item-Total Statistics Item Deleted Cronbach's Alpha Total Correlation if Item Deleted 2.566 536 735 SC2 6.7023 2.523 588 676 SC3 6.4972 2.379 642 613 n 6.7151 va SC1 n Deleted Corrected Item- a Lu Scale Mean if Item Scale Variance if y te re 68 t to Reliability Statistics ng Cronbach's Alpha N of Items hi 888 ep w Item-Total Statistics n lo Scale Mean if Item Scale Variance if ad Item Deleted Cronbach's Alpha Total Correlation if Item Deleted 9.583 661 879 12.7764 9.027 658 884 13.0726 9.794 752 861 CL4 13.0171 8.884 827 840 CL5 13.1353 9.267 775 853 CL2 yi pl CL3 ju 12.8989 al y th CL1 Deleted Corrected Item- n ua n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 69 t to Appendix 3: EFA results of independent variables – Main survey ng hi KMO and Bartlett's Test ep Kaiser-Meyer-Olkin Measure of Sampling Adequacy .763 w n Bartlett's Test of Sphericity Approx Chi-Square lo 742.080 ad y th df 78.000 ju Sig .000 yi pl Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings n Component ua al Total Variance Explained Cumulative % 3.725 28.654 28.654 1.794 13.804 1.435 Total Variance % 3.725 28.654 42.458 1.794 13.804 11.036 53.494 1.435 11.036 1.236 9.505 62.999 1.236 9.505 770 5.921 68.920 699 5.378 74.298 656 5.043 79.341 558 4.290 83.631 545 4.189 87.820 10 529 4.072 91.892 11 403 3.098 94.990 12 371 2.856 97.847 13 280 2.153 100.000 ll oi Cumulativ Total Variance e% 28.654 2.187 16.821 16.821 42.458 2.019 15.528 32.349 53.494 2.005 15.427 47.776 62.999 1.979 15.223 62.999 ht vb k jm om l.c gm n a Lu n va Extraction Method: Principal Component Analysis % of z Variance z Total at Cumulative nh % of fu % of m n va Initial Eigenvalues y te re 70 t to Rotated Component Matrix a ng Component hi ep w n PP2 872 PP3 845 PP1 654 lo ad 820 SC3 801 SC1 775 ju y th SC2 yi CS3 563 va 812 n fu CI1 n CI2 673 ua CS2 702 al CS1 773 pl CS4 759 ll 634 oi m CI3 nh Extraction Method: Principal Component Analysis z a Rotation converged in iterations at Rotation Method: Varimax with Kaiser Normalization z ht vb k jm om l.c gm n a Lu n va y te re 71 t to Appendix 4: EFA results of dependent variable – Main survey KMO and Bartlett's Test ng hi Kaiser-Meyer-Olkin Measure of Sampling Adequacy ep Bartlett's Test of Sphericity 842 Approx Chi-Square 626.194 df 10.000 w n Sig .000 lo ad Total Variance Explained y th Extraction Sums of Squared Loadings % of yi Total pl nent ju Compo Initial Eigenvalues 399 285 69.107 13.298 82.404 90.394 7.989 Total Variance 3.455 Cumulative % 69.107 69.107 n 69.107 va 665 Cumulative % n ua 3.455 al % of Variance 96.101 ll fu 5.707 oi m 195 3.899 100.000 Extraction Method: Principal Component Analysis at nh Component Matrix a z z ht vb Component k jm CL1 786 CL2 769 n 806 a Lu CL3 om 886 l.c CL5 901 gm CL4 n va y a components extracted te re Extraction Method: Principal Component Analysis 72 t to Appendix 5: Testing Assumptions of Multiple Regression ng hi ep Table 4.3: Correlations between CS, PP, CI, SC and CL CS Sig (2-tailed) n Pearson Correlation lo w CS 1.000 ad 376 ju Pearson Correlation yi Sig (2-tailed) ua al CI Pearson Correlation 263 164 * 338 ** 000 000 016 000 214 214 214 214 1.000 ** * 366 171 ** 012 000 214 214.000 214 214 ** 1.000 099 366 289 000 ** 253 ** 000 214 214 * 012 148 214 214.000 214 ** ** ** 1.000 fu 000 171 ll 164 * 016 N 214 000 214.000 214 214 099 1.000 214 at 338 ** 148 oi m Sig (2-tailed) Pearson Correlation ** CL nh n CL Pearson Correlation va N SC 214 263 n Sig (2-tailed) SC ** ** 000 pl N CI 376 214.000 y th N PP PP 289 253 192 ** 000 192 z N 214 214 000 214 214 214.000 k jm ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) .000 ht 000 vb 000 z Sig (2-tailed) om l.c gm n a Lu n va y te re 73 t to ng Appendix hi ep Figure 4.4 Histogram, Normal P – P plot and Scatter plot of Dependent Variable - CL w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 74 t to ng hi ep Normal P-P Plot of Regression Standardized Residual w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 75 t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 76 t to Appendix 7: Multiple Regression Results ng hi Variables Entered/Removed b ep w Model Variables Entered n lo Variables Removed Method a SC, CI, CS, PP Enter ad a All requested variables entered y th ju b Dependent Variable: CL yi pl b Model Summary n ua al va Model R R Square Adjusted R Square Std Error of the Estimate n ll fu 721 a m 520 511 50170 oi at nh a Predictors: (Constant), SC, CI, CS, PP z b Dependent Variable: CL z vb b ANOVA ht df Square Residual 52.605 209 252 109.550 213 Total a n va b Dependent Variable: CL 000 n a Predictors: (Constant), SC, CI, CS, PP 56.561 a Lu 14.236 om Sig l.c 56.945 F Regression gm Squares k Model Mean jm Sum of y te re 77 t to Coefficients ng hi ep Unstandardized Standardized Coefficients Coefficients a Collinearity Statistics Model t Std w B PP 310 059 310 CS 429 CI ju 278 ad -.683 y th lo (Constant) Beta Error n yi pl SC 191 Sig Tolerance VIF -2.458 015 289 5.299 000 773 1.293 064 253 4.854 000 848 1.180 067 338 6.426 000 831 1.203 049 192 3.922 000 959 1.043 ua al a Dependent Variable: CL n n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re