(LUẬN văn THẠC sĩ) antecedents and outcome of customer satissfaction, a study of vietnamese customers in the mobile telecom industry

BACKGROUND

The increasing economic importance of telecommunications companies inspired many researchers, marketers and management scholars to devoted more teaching and research attention to this sector

Since the 1990s, the telecommunications industry has emerged as a vital sector for the economic growth of industrialized nations, driven by significant technological advancements and a surge in network operators This evolution has fostered intense competition, further enhancing the industry's dynamism and impact on the economy.

Research indicates that as market competition intensifies, companies prioritize customer satisfaction and retention to maintain their market share With rising competition and escalating costs of acquiring new customers, businesses are increasingly focusing their strategic efforts on retaining existing customers, making long-term relationship building a crucial objective.

Moreover, technology of mobile telecom evolving to meet high demand from customer, the paradigm of mobile telecommunication services is now shifting from

This study explores the factors influencing customer satisfaction among Vietnamese consumers in the mobile telecom industry It examines the antecedents that contribute to customer satisfaction and the subsequent outcomes that arise from it By analyzing customer behaviors and perceptions, the research aims to provide insights into improving service quality and enhancing customer loyalty within the competitive telecom market in Vietnam The findings highlight the importance of understanding customer needs and preferences to drive satisfaction and business success.

The mobile telecommunication service market is experiencing a significant transition, driven by the rise of high-speed data communication and multimedia, alongside the expansion of wireless internet According to Mohan et al (2012), the number of mobile subscribers reached approximately 6 billion, nearly matching the global population The United Nations telecom agency reported that by the end of 2011, there were about 6 billion subscriptions, equating to roughly 86 subscriptions for every 100 people worldwide.

The telecommunications industry is undergoing significant restructuring due to a paradigm shift and heightened competition among companies Mobile suppliers are increasingly recognizing the necessity of a customer-oriented business strategy to maintain their competitive edge and ensure profitability, especially as subscriber growth reaches saturation As acquiring new customers becomes both challenging and expensive, the focus has shifted towards retaining existing customers by enhancing loyalty and perceived value In this context, switching barriers play a crucial role in customer satisfaction and retention, as customers evaluate these barriers to maximize their benefits In Vietnam, the telecommunications market has transitioned from a monopoly to a competitive landscape, driven by international economic integration To achieve sustainable development and expand market share, telecommunications companies in Vietnam are prioritizing customer-centric approaches, as highlighted by statistics from the Ministry of Communications and Information.

In 2012, Vietnam had an estimated 120.7 million mobile subscribers, with individuals averaging 1.5 subscriptions each This competitive landscape makes attracting new mobile customers increasingly challenging, as telecom service providers strive to expand their market share The "infidelity" of mobile service users, who readily switch providers for better benefits, underscores the urgent need for customer retention strategies By focusing on retaining loyal customers, mobile suppliers in Vietnam can enhance profitability and increase their market presence.

Numerous studies indicate a strong link between customer satisfaction and retention or repurchase intentions (Cronin & Taylor, 1992; Fornell, 1992; Anderson & Sullivan, 1990; Boulding et al., 1993; Taylor & Baker, 1994; de Ruyter et al., 1996; Zeithamel et al., 1996) However, customer satisfaction alone does not account for all variations in retention, as customers face various constraints when selecting suppliers (Bendapudi & Berry, 1997) Limited empirical research has explored how different switching barriers impact satisfaction, retention, and their interrelationships (Jones et al., 2000) In the context of Vietnam's mobile telecom services, it is essential to investigate key factors that significantly influence customer satisfaction and retention, focusing on switching costs, relationship investments, the appeal of alternative options, and interpersonal relationships.

1.2 Problem definition and Research Questions

The telecom industry is currently grappling with heightened national and international competition, stagnant growth rates, and saturated markets Consequently, an increasing number of service providers are vying for a limited pool of new customers.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights the key factors influencing customer satisfaction, such as service quality, brand loyalty, and customer engagement Additionally, the research examines how customer satisfaction impacts overall business performance and customer retention in this competitive sector Understanding these dynamics is essential for telecom companies aiming to enhance customer experiences and drive long-term success.

11 of company’s resources must be devoted to the present customer base in order to make them satisfied and retain them

Customer retention is crucial for a company's survival and future growth, especially in mature markets with fierce competition When subscription levels saturate, maintaining stable profits becomes essential In such scenarios, adopting a defensive strategy focused on retaining existing customers is more vital than pursuing aggressive tactics to attract new ones.

High switching barriers compel customers to remain with their suppliers, regardless of their satisfaction levels This lack of choice can lead to decreased satisfaction and retention, as suggested by reactance theory Therefore, understanding customer satisfaction and loyalty must include the impact of these switching barriers.

The telecommunications market in Vietnam is transitioning from a monopoly to a competitive landscape, driven by international economic integration This shift has intensified competition among telecom companies, compelling them to focus on customer retention to ensure sustainable development and market share growth As attracting new customers becomes increasingly challenging, providers must prioritize keeping existing customers, who often exhibit "infidelity" by switching networks for better benefits Consequently, enhancing customer loyalty has become a critical goal for mobile service providers in Vietnam, leading to increased profits and expanded market share.

The Vietnamese mobile telecommunication services industry has not been extensively studied, primarily because of its relatively short history.

Based on the reviewed literature and identified factors, a model will be developed to examine the influence of switching costs on customer satisfaction, subsequently investigating its impact on customer retention.

This thesis explores the strategies mobile suppliers will employ to retain customers in an increasingly competitive market The foundation of this research is built on extensive market study and data collection, focusing on understanding the evolving dynamics of customer loyalty in the mobile industry.

The research questions that are discussed in this thesis are as below:

What are the main factors of switching barriers affect on customer satisfaction in the mobile telecom industry in Vietnam?

How can these factors and determinants be developed and evaluated in Vietnam?

How can customer satisfaction affect on customer retention in the mobile telecom industry?

RESEARCH OBJECTIVES

From a managerial perspective, maintaining long-term customer relationships is crucial, necessitating that suppliers effectively manage both customer satisfaction and switching barriers Excessively high switching barriers can lead to negative word-of-mouth and customer dissatisfaction, while low barriers may facilitate customer defection Consequently, there is a significant gap in academic research regarding the interplay between switching barriers, customer satisfaction, and retention.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, brand perception, and customer support The findings reveal a strong correlation between customer satisfaction and loyalty, emphasizing the importance of understanding customer needs in a competitive market The research provides valuable insights for telecom companies aiming to enhance their service offerings and improve overall customer experience.

The research objectives that are discussed in this thesis are as below:

Identify the factors of switching barriers that affect the customer satisfaction in mobile telecom industry in Vietnam

Subsequently, to examine the impact of customer satisfaction on customer retention in mobile telecom industry in Vietnam

Determine the degree of the impact of each factor to customer satisfaction

This thesis aims to develop a model for assessing customer satisfaction and retention in Vietnam's mobile telecommunication services By analyzing market assessment data alongside theoretical frameworks, the study seeks to identify key influencers that affect customer satisfaction and retention The findings will inform strategic business solutions focused on addressing switching barriers that impact customer loyalty among current mobile service providers.

This study aims to analyze how switching barriers affect customer satisfaction and, in turn, how customer satisfaction influences customer retention It will explore strategies within the Vietnam mobile telecom sector to enhance customer retention while identifying key factors contributing to switching barriers Additionally, the research will empirically test hypotheses related to the impact of these switching barrier factors on customer satisfaction and retention.

DELIMITATION

This research focuses on four key components—switching cost, investment relationship, attractiveness of alternatives, and interpersonal relationship—to measure the switching barriers that impact customer satisfaction and retention Consequently, other measurements of switching barriers are not addressed in this study.

Second, this study only focus on Vietnam mobile industry and market, the other sectors in other countries are not involved

This study focuses exclusively on the customer perspective regarding mobile telecommunication services, leaving out the viewpoints of service firms on this topic.

OUTLINE OF THE STUDY

This research includes five chapters that the first chapter is already presented

This chapter presents research background of the study, as well as, research problems, research objectives and delimitation

This chapter offers essential theoretical insights into the mobile telecommunication market, focusing on Vietnam, with an emphasis on customer satisfaction and retention It highlights the significance of these factors and introduces a model for assessing customer satisfaction and retention based on switching barriers, which will be further explored in subsequent chapters.

Chapter one focuses on the research methodology, while chapter two provides a literature review and empirical model This chapter specifically outlines the research design and methodology, detailing the processes involved in conducting the research.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, brand trust, and customer engagement The research also examines the impact of customer satisfaction on loyalty and overall business performance, providing valuable insights for telecom companies aiming to enhance customer experiences and drive growth in Vietnam's competitive market.

Chapter four: Data analysis and finding

This chapter outlines the data gathered from questionnaires and interviews, along with the subsequent analysis of this data It also discusses the proposed hypotheses and the outcomes derived from testing these hypotheses.

Chapter five: Conclusions and implications

Chapter 5 presents main conclusions and implications based on the results of the previous chapters, as well as the limitations of this study

This chapter equips readers with essential theories for understanding the subsequent sections of the study It starts with an overview of the mobile telecommunications market, focusing on Vietnam, and emphasizes the significance of customer satisfaction and retention The discussion highlights the importance of these factors and introduces a model for assessing customer satisfaction and retention based on switching barriers, which will be explored in the following chapters.

2.1 Mobile Telecommunications in the world

The radio broadcasting industry pioneered the concept of radio telephone equipment, laying the groundwork for mobile communication networks In 1946, the first radio telephone network was tested in St Louis, Missouri, marking a significant milestone in telecommunications Over the next 50 years, the invention of semiconductors transformed mobile telecommunications, addressing several limitations of earlier technologies and enhancing overall performance.

May 12-1971 given cellular system similar technique, FM, in technology the 850Mhz.Dua the band until 1983, mobile phone networks AMPS (Advanced Mobile Phone Service) The first commercial service in Chicago, United States Then a series of standard information released as: Nordic Mobile Telephone (NTM), Total Access Communication System (TACS) This stage is called cell system similar to the first generation (1G), with a narrow strip floor, all 1G systems using FM frequency modulation for voice, frequency shift key modulation FSK (Frequency Shift Key) to access technical signals and used as FDMA (Frequency Division Multiple Access)

The 2nd generation (2G) mobile communication technology, which gained popularity in the 1990s, marked a significant transition from analog to digital systems This advancement led to a dramatic increase in mobile subscribers globally, revolutionizing the way people connected and communicated.

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, including service quality, customer support, and pricing strategies The findings reveal that higher levels of customer satisfaction lead to increased customer loyalty and positive word-of-mouth, ultimately benefiting telecom companies Understanding these dynamics is essential for businesses aiming to enhance customer experiences and improve their competitive edge in the market.

The evolution of mobile telecommunication systems includes key technologies such as GSM-900MHz (Global System for Mobile), DCS-1800MHz (Digital Cordless System), and PDC-1900MHz (Personal Digital Cellular), alongside standards like IS-54 and IS-95 GSM serves as the foundation for DCS and PDC, utilizing TDMA (Time Division Multiple Access), while IS-95 employs CDMA (Code Division Multiple Access) The 2G generation enhances service diversity and supports information technology, enabling subscribers to engage in international roaming, thereby maintaining connectivity while traveling across countries.

The third generation (3G) mobile systems, established in 1992, utilize a wide spectrum of frequency bands, including 230MHz in the 2 GHz range, with 60MHz allocated for satellite telecommunications The International Telecommunications Union (ITU) promotes a global standard for these international mobile systems, known as IMT.

The IMT-2000 project, operational in the frequency bands of 1885-2025MHz and 2110-2200MHz, introduced 3G technologies such as W-CDMA (Wideband CDMA) using FDD and TD-CDMA (Time Division CDMA) with TDD Its primary objective is to facilitate global communication and multimedia services for subscribers, supporting data rates from 144 Kbps in wide areas to 2 Mbps in localized environments Services commenced between 2001 and 2002.

4G, also known as LTE (Long Term Evolution), represents a significant advancement over 3G technology, which offers a maximum download speed of 14.4 Mbps In contrast, LTE can achieve speeds up to 100 Mbps, comparable to current optical technologies like FTTx The 4G mobile network is primarily designed for data transmission rather than voice services Currently, around 17 networks globally have deployed 4G services, focusing primarily on enhancing data transfer capabilities.

By the end of 2011, the number of mobile subscribers worldwide reached nearly 6 billion, nearly matching the global population According to the Telecommunications Authority of the United Nations, this equates to approximately 86 subscribers for every 100 individuals.

The shift in market dynamics is prompting a restructuring of the industry and escalating competition among companies Mobile suppliers are increasingly recognizing the necessity of adopting a customer-oriented business strategy to maintain their competitive edge and ensure profitability As subscriber numbers approach saturation, acquiring new customers becomes both challenging and expensive, leading to a consensus that prioritizing customer retention through enhanced loyalty and value is essential Additionally, the presence of switching barriers significantly influences customer satisfaction and retention, as customers evaluate these barriers to maximize their benefits when considering a switch in mobile service providers.

CUSTOMER RETENTION

The pressure to reduce customer churn along with the high cost of new customer acquisition have forced mobile service providers to take a hard look at their customer strategies

Customer retention is a crucial aspect of marketing that has been extensively studied, focusing on customers' willingness to engage and remain loyal to a product or service provider based on their satisfaction Research by prominent scholars such as Hirschman, Day, Oliver, Anderson, and Homburg emphasizes the importance of understanding the factors that influence customer loyalty and the ongoing relationship between consumers and businesses.

Research by 1990 and Reichheld (1996) highlights the importance of customer lifetime value and the necessity of enhancing customer retention through actively addressing complaints, predicting potential defection, and comprehending the reasons customers switch to competitors Customer loyalty is maintained due to the perceived value received from suppliers, while customer retention signifies the ongoing engagement and relationship with clients.

According to Zeithaml (1996), both customers and firms stand to gain from customer retention, highlighting the mutual benefits of fostering long-term relationships Organizations thrive by cultivating a loyal customer base, while customers enjoy the advantages of sustained associations with these businesses.

The tangible effects of companies’ commitment to retaining customers were first published Reichheld (1990) who claim that higher retention rate leads to higher net present value of customers

Customer loyalty and retention, as defined by Oliver (1997), refer to a strong commitment to consistently repurchase a preferred product or service, leading to repeated buying behavior despite external influences and marketing strategies that may encourage switching Additionally, customer retention focuses on sustaining the business relationship between a supplier and a customer, highlighting the importance of maintaining long-term connections in a competitive market (Herrmann & Johnson).

Customer retention management has been extensively highlighted in various studies and publications, notably by Reichheld and Sasser (1990) and Reichheld and Kenny (1990) Their research demonstrates that retaining customers significantly boosts profitability, emphasizing the necessity for companies to implement proactive strategies aimed at customer retention.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors that influence customer satisfaction, including service quality, customer support, and brand reputation The research highlights the importance of understanding customer expectations and experiences to enhance satisfaction levels Additionally, it examines how customer satisfaction impacts loyalty and overall business performance in the competitive telecom market in Vietnam By addressing these elements, telecom companies can improve their strategies and foster stronger relationships with their customers.

CUSTOMER SATISFACTION

Customer satisfaction is a crucial metric for evaluating a business's success, as satisfied customers contribute to a steady cash flow and enhance customer retention While satisfaction plays a significant role in retaining customers, it is not the sole determinant The level of satisfaction is influenced by the degree to which actual experiences meet or exceed customer expectations, making it essential for businesses to focus on delivering exceptional service to foster loyalty.

Customer satisfaction occurs when a customer's needs are fulfilled, leading to satisfactory products and services, and a positive overall experience (Friday and Cotts, 1995; Gitomer, 1998) A customer is considered satisfied when their basic expectations are met, resulting in neutral or positive feelings about their purchase However, customer satisfaction alone does not guarantee customer retention, as other factors also play a role A loyal customer is one whose expectations are not only met but exceeded, often leading them to actively recommend the supplier (Kotler, 2000).

Customer satisfaction is defined as an individual's emotional response—either pleasure or disappointment—stemming from the comparison between a product's perceived performance and their expectations According to Yi (1990), it represents a cumulative outcome shaped by perceptions, evaluations, and psychological reactions experienced during the consumption of a product or service.

Customer satisfaction plays a crucial role in enhancing customer retention and fostering positive word-of-mouth Research indicates that higher satisfaction levels lead to increased customer loyalty across various product and service categories, including telecommunications As a cumulative assessment developed over time, satisfaction effectively mediates the impact of product quality, service quality, and pricing fairness on retaining customers.

The Satisfaction-Profit Chain principle suggests that enhancing product and service attributes boosts customer satisfaction, which in turn fosters greater customer retention, ultimately leading to increased profitability.

Therefore, the fifth hypothesis that the author proposes:

H5: Customer satisfaction has positively associated with Customer Retention.

SWITCHING BARRIERS

Switching barriers are defined as factors that complicate or increase the costs for consumers looking to change service providers (Jones et al., 2000) These barriers encompass the challenges faced by dissatisfied customers when considering a switch, including financial, social, and psychological burdens associated with moving to a new carrier (Fornell, 1992).

Understanding the reasons why customers choose to stay with a firm is crucial for businesses with many potential switchers in their customer base This insight helps firms implement strategies to either encourage customer retention or address the factors that lead to switching Additionally, for service firms aiming to attract these switchers, recognizing why customers remain loyal is vital for developing effective strategies to overcome switching barriers and capture market share According to Ping (1993, 1997, 1999), the concept of structural commitment, derived from Johnson’s (1982) idea of structural constraints, assesses how much a customer feels bound to a relationship, encompassing factors such as the attractiveness of alternatives, investments made in the relationship, and associated switching costs.

Barriers to customer defection, such as development of strong interpersonal relationships or imposition of switching cost, represent additional retention strategies

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors affect overall customer loyalty and retention By analyzing customer perceptions and experiences, the research provides valuable insights for telecom companies aiming to enhance service quality and improve customer relationships Understanding these dynamics is crucial for businesses seeking to thrive in a competitive market.

Barriers to switching services are crucial as they enhance customer retention and assist companies in managing temporary declines in service quality, which could lead to customer attrition.

According to previous studies, the switching barrier is made up of switching cost, investment in a relationship, attractive of alternative and interpersonal relationships

Positive and negative switching barriers:

Hirschman (1970) distinguishes between staying in a relationship out of obligation ("having to be") and genuine desire ("wanting to be"), with the former representing a negative motivation and the latter a positive one Additionally, Jones et al (2000) note that some switching barriers can have a more positive connotation, while others may be perceived negatively.

Negative switching barriers, particularly high switching costs, play a significant role in customer retention by locking customers into their current suppliers These costs encompass not only financial investments but also the time and effort expended in building the relationship When customers invest in equipment or other resources, they become further entrenched with their suppliers, making it difficult to switch Therefore, substantial investments in the supplier-customer relationship are classified as negative switching barriers, reinforcing the customer's commitment and loyalty.

Positive switching barriers significantly influence customer retention by enhancing the attractiveness of existing suppliers compared to alternatives When customers perceive their chosen supplier as superior to other options, they are more likely to remain loyal Additionally, strong interpersonal relationships with suppliers serve as another crucial factor in maintaining customer loyalty High perceived risks associated with changing suppliers further reinforce these positive switching barriers, making customers hesitant to switch.

SWITCHING COST

Switching costs refer to the expenses associated with changing providers, encompassing time, financial investments, and psychological impacts (Dick & Basu, 1994) These costs are linked to perceived risks, as customers may fear potential losses when switching carriers, which can include financial, performance-related, social, psychological, and safety concerns (Murray, 1991).

Burnham, Frels, and Mahajan (2003) classified switching costs into three categories: procedural, financial, and relational, all of which negatively impact consumers' intentions to change providers Klemperer (1995) identified three types of switching costs: artificial, learning, and transaction costs, with transaction costs being the most relevant.

Customer defection significantly impacts revenues and service continuity, prompting service providers to implement strategies that address consumers' switching costs in a highly competitive environment Time plays a crucial role in influencing these switching costs and customer lock-in Research indicates that even a modest five percent reduction in customer defections can lead to a remarkable seventy-five percent increase in profits, highlighting that defections affect profitability more than factors like market share and unit costs, which are often linked to competitive advantages.

When switching telecommunications providers, it's essential to consider several significant costs These include expenses related to notifying friends, colleagues, and business associates about the change, acquiring new lines and numbers, and the potential costs of ending long-standing relationships with a current service provider Additionally, there may be costs associated with learning new procedures for interacting with the new provider.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It identifies key factors that influence customer satisfaction, such as service quality, brand reputation, and customer support The research highlights the significant relationship between customer satisfaction and loyalty, emphasizing its impact on business success in a competitive market Understanding these dynamics can help telecom companies enhance their services and improve customer retention strategies.

Finding a new service provider that offers comparable or superior value to the existing firm can be challenging and costly Additionally, clients must invest time and psychological effort to navigate the uncertainty associated with transitioning to a new provider (Dick and Basu, 1994; Guiltina, 1989).

Therefore, the first hypothesis that the author proposes:

H1: Switching cost is negatively related to Customer satisfaction.

INVESTMENT IN RELATIONSHIP

Investment in relationships encompasses the time, energy, and financial resources dedicated to fostering connections, highlighting the unique aspects of such investments (Ping, 1993) Key elements include spending quality time with partners, making financial contributions to providers (Lund, 1985), and engaging in self-disclosure and shared experiences (Rusbult, 1986) Rusbult’s investment theory identifies two critical variables: relationship satisfaction, which reflects the positive feelings and attraction toward the relationship, and commitment, which denotes the desire to maintain and feel psychologically attached to it The investment model posits that satisfaction arises from the rewards derived from the relationship, akin to the utility gained from a supplier's products and services, balanced against the costs incurred, such as payments for those products and services Thus, the author proposes a second hypothesis regarding these dynamics.

H2: Investment in the relationship is negatively related to Customer satisfaction

The attractiveness of alternative carriers refers to their reputation, image, and service quality, which should ideally surpass those of the current provider This concept is closely related to service differentiation and the structure of the industry When a company presents unique services that are challenging for competitors to replicate, or when there are limited alternatives in the market, customers are more likely to stay loyal to their existing provider (Bedapudi & Berry, 1997).

Customer perceptions of available competing alternatives significantly influence their relationship longevity with brands (Jones et al., 2000) Research indicates that when viable alternatives are scarce, customers are less likely to end their existing relationships Conversely, when customers recognize multiple attractive alternatives, they are more inclined to switch brands.

In the context of supplier relationships, the "attractiveness of alternatives" plays a crucial role, as highlighted by Ping (1993), who found that retailers are more inclined to switch suppliers when viable alternatives are appealing This concept is closely tied to service differentiation, as noted by Jones (1998) and Kim, Park & Jeong (2004), suggesting that customers are less likely to perceive attractive alternatives when they engage with a differentiated firm Furthermore, when a company provides unique services that competitors struggle to replicate, as discussed by Bendapudi & Berry (1997), customer loyalty tends to increase, leading them to remain with their current provider.

Alternative attractiveness refers to the comparative evaluation of various wholesalers based on multiple dimensions (Ping, 1993) It assesses how potential suppliers stack up against the current supplier (Jones, 2000) and gauges the overall appeal of these alternatives (Rusbult, 1986) Therefore, the third hypothesis proposed by the author focuses on this concept of alternative attractiveness.

H3: Attractiveness of alternatives is positively related to Customer satisfaction

Interpersonal relationships are defined as psychological and social connections characterized by care, trust, intimacy, and communication (Gremler, 1995) These relationships encompass the positive interactions between customers and employees of a service provider, which are developed through repeated engagements.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors impact overall customer loyalty and retention The research highlights the importance of service quality, customer support, and pricing strategies in enhancing customer experiences Ultimately, the findings provide valuable insights for telecom companies aiming to improve customer satisfaction and foster long-term relationships with their clients.

29 interactions between a carrier and a customer can strengthen the bond between them and lead to a long-term relationship

Customers seek to build and maintain valuable interpersonal relationships with companies, which enhances their experience and convenience (Gwinner, Gremler & Bitner, 1998) Consequently, investing in these relationships fosters customer dependence, creating stronger barriers to switching brands (Jones, Mothersbaugh & Betty).

Customer relationships provide numerous advantages, including social benefits like fellowship and personal recognition, psychological benefits that help reduce anxiety, economic benefits such as discounts and time savings, and opportunities for customization through effective customer management Research indicates that customers are inclined to commit to building and nurturing relationships with suppliers who deliver exceptional value.

And, the fourth hypothesis that the author proposes:

H4: Interpersonal Relationship is positively related to Customer satisfaction

Determining an appropriate level of customer satisfaction, retention, and loyalty is crucial for success in competitive markets To achieve this, a model will be developed based on previous research to evaluate the various factors influencing customer satisfaction This model will analyze how customer satisfaction impacts retention, specifically within the mobile telecommunication market in Vietnam.

Earlier studies of factors affecting customer retention usually set the focus on customer satisfaction and the switching barrier (e.g.Dick &Basu, 1994; Gerpott, Rams

Research indicates that customers who experience high satisfaction levels are more likely to stay with their current service providers and continue their subscriptions Consequently, it is essential to examine additional factors that may influence customer retention, as suggested by the components of switching barriers identified by Jones, Mothersbaugh, and Betty in 2002.

The switching barrier acts as a crucial adjustment variable influencing the relationship between customer satisfaction and retention Specifically, even when customer satisfaction levels are the same, customer retention can differ based on the strength of the switching barrier.

Different types of constraints, alongside customer satisfaction, significantly influence the choice of suppliers (Berry, 1997) Empirical studies have explored how various switching barriers—such as switching costs, investment in relationships, attractiveness of alternatives, and interpersonal connections—impact supplier satisfaction, repurchase intentions, and attitudinal loyalty (Jones & Beatty, 2000).

Numerous studies have explored customer retention and loyalty, particularly within the mobile telecommunications industry Researchers have developed models to identify various factors influencing customer satisfaction, loyalty, and retention Additionally, some studies have examined the impact of switching barriers on satisfaction, repurchase intentions, and attitudinal loyalty A comprehensive theoretical framework surrounding customer satisfaction and loyalty must integrate the concept of switching barriers and analyze how different types of these barriers affect customer satisfaction, loyalty, and repurchase intentions.

To improve customer retention, mobile telecommunication suppliers must prioritize maximizing customer satisfaction by addressing switching barriers Key factors to consider include the costs associated with switching, which can significantly influence a customer's decision to stay with their current provider.

INTERPERSONAL RELATIONSHIP

Interpersonal relationships encompass the psychological and social connections characterized by care, trust, intimacy, and communication (Gremler, 1995) These relationships are essential in creating positive interactions between customers and employees of service providers, and they are developed through consistent engagement and interaction.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It examines the key factors that influence customer satisfaction and how it impacts overall business performance Understanding these elements is crucial for telecom companies aiming to enhance customer loyalty and improve service quality in a competitive market The findings highlight the importance of addressing customer needs and expectations to foster a positive customer experience.

29 interactions between a carrier and a customer can strengthen the bond between them and lead to a long-term relationship

Customers seek to build and maintain valuable interpersonal relationships with companies, as highlighted by Gwiner, Gremler, and Bitner (1998) This relationship-specific investment enhances customer dependence and strengthens switching barriers, according to Jones, Mothersbaugh, and Betty.

Building strong customer relationships offers numerous advantages, including social benefits like fellowship and personal recognition, psychological benefits such as reduced anxiety, economic benefits through discounts and time savings, and customization in customer management Research indicates that customers are more likely to commit to suppliers who provide superior value benefits, highlighting the importance of fostering these relationships for long-term success.

And, the fourth hypothesis that the author proposes:

H4: Interpersonal Relationship is positively related to Customer satisfaction.

RESEARCH MODEL AND HYPOTHESES

A robust model to evaluate customer satisfaction and retention is crucial for success in competitive markets This model, developed from previous research, will assess various factors influencing customer satisfaction, which in turn affects customer retention The application of this model will focus specifically on the mobile telecommunication market in Vietnam, providing valuable insights into enhancing customer loyalty.

Earlier studies of factors affecting customer retention usually set the focus on customer satisfaction and the switching barrier (e.g.Dick &Basu, 1994; Gerpott, Rams

High customer satisfaction significantly increases the likelihood of retaining existing providers and maintaining subscriptions Consequently, researchers emphasize the importance of exploring additional influential factors related to switching barriers, as proposed by Jones, Mothersbaugh, and Betty (2002).

The switching barrier serves as a crucial adjustment variable influencing the relationship between customer satisfaction and retention Specifically, even when customer satisfaction levels are the same, customer retention can differ based on the strength of the switching barrier (Colgate & Lang, 2001; Jones et al., 2002; Lee & Cunningham, 2001).

Different types of constraints, along with customer satisfaction, significantly influence a customer's choice of supplier (Berry, 1997) Empirical studies have examined how various switching barriers—such as switching costs, investment in the relationship, the attractiveness of alternatives, and interpersonal relationships—impact supplier satisfaction, repurchase intentions, and attitudinal loyalty (Jones & Beatty, 2000).

Numerous studies have explored customer retention and loyalty, particularly within the mobile telecommunications sector Researchers have developed models to identify various factors influencing customer satisfaction, loyalty, and retention Additionally, some studies have focused on the impact of switching barriers on satisfaction, repurchase intentions, and attitudinal loyalty It is essential for the theoretical framework surrounding customer satisfaction and loyalty to integrate the concept of switching barriers and examine how different types of these barriers affect customer satisfaction, loyalty, and repurchase intentions.

Mobile telecommunication providers need to prioritize customer satisfaction by addressing switching barriers to improve customer retention Specifically, mobile carriers should concentrate on key factors influencing these barriers, such as the costs associated with switching.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines the impact of these factors on customer loyalty and retention The findings highlight the importance of service quality, customer support, and brand reputation in enhancing customer satisfaction Ultimately, this research provides valuable insights for telecom companies aiming to improve their service offerings and strengthen customer relationships in Vietnam's competitive market.

31 investment relationship, attractiveness alternative and interpersonal relationship to heighten customer satisfaction and then become higher the customer retention level

This article presents a new model for enhancing customer retention through customer satisfaction, particularly in the Vietnamese mobile telecommunications market With approximately 120.7 million mobile subscribers as of June 2012, where the average individual uses 1.5 mobile connections, the market has reached saturation, leading to high customer acquisition costs Therefore, it is essential for mobile service providers to implement effective customer satisfaction programs that focus on early detection and prevention of switching barriers to boost customer retention.

Hence the proposed model would be as below:

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and explores how these factors affect overall customer loyalty and retention The research highlights the importance of service quality, customer support, and pricing strategies in shaping customer perceptions and experiences By understanding these dynamics, telecom companies can enhance their service offerings and improve customer satisfaction levels, ultimately driving business success in a competitive market.

Overall customer satisfaction is what we are going to evaluate for this model through determine each factor of switching barriers will be calculated by testing the hypotheses

H1: Switching cost is negatively related to Customer satisfaction

H2: Investment in the relationship is negatively related to Customer satisfaction

H3: Attractiveness of alternatives is positively related to Customer satisfaction

H4: Interpersonal relationship is positively related to Customer satisfaction

H5: Customer satisfaction has positively associated with Customer retention

The previous chapter discussed the literature on relational effects and introduced a conceptual model outlining the hypotheses regarding the antecedents and outcomes of key factors influencing switching barriers, customer satisfaction, and retention This chapter details the research methodology employed in the study, explaining and justifying the chosen methodological approaches to address the research questions Additionally, it covers data collection, sample selection, and the instruments used for data gathering, along with the methods implemented to ensure the validity and reliability of these instruments.

The purpose of research is a statement of what is to be accomplished by conducting research and how the results of the research can be used (Weidersheim et al., 2000)

According to their purpose, researches can be categorized into different types, where the nature of the problem affects whether the research is exploratory, descriptive or explanatory (Zikmund, 2000; Yin, 1994)

Exploratory research is a crucial method for uncovering current trends, gaining fresh insights, and re-evaluating phenomena (Robson, 1993) It is especially beneficial when the goal is to clarify and define the nature of a problem, leading to a deeper understanding of the issue at hand (Saunders et al., 2000).

Exploratory research is defined by its flexible approach to methodologies, allowing researchers to adapt and embrace new ideas and insights that may shift the focus of their investigation.

Explanatory Research

Explanatory studies focus on establishing causal relationships between variables by investigating specific situations or problems These studies aim to determine whether one event leads to another, analyzing the cause-and-effect relationship to clarify what causes certain effects.

This thesis aims to identify the key factors influencing switching barriers that affect customer satisfaction and retention in Vietnam's mobile telecom market By evaluating and validating a proposed model, the research adopts a descriptive approach to understand these dynamics.

RESEARCH APPROACH

Researchers can approach phenomena through various methods, employing both theoretical and methodological frameworks These approaches can be categorized as qualitative or quantitative, allowing for a comprehensive understanding and explanation of the subject matter.

This study employs a deductive approach, beginning with a literature review that is subsequently compared to empirical findings, allowing for the development of insights based on existing theories within the research area.

Qualitative research aims to provide a deeper understanding and description of a problem through soft data, primarily expressed in words and observations This approach focuses on interpreting phenomena by exploring open-ended questions about whom, how, and why, rather than relying on numerical findings In contrast, quantitative research deals with hard data, represented by numbers that quantify the extent of phenomena This method involves studying a large sample size to enhance the ability to draw general conclusions Typically, exploratory research relies on qualitative data, while descriptive research is characterized by quantitative data.

This study utilizes a quantitative methodological approach, gathering extensive data primarily through interviews and distributed questionnaires.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights the key factors influencing customer satisfaction, such as service quality, customer support, and pricing strategies Additionally, the research examines how customer satisfaction impacts customer loyalty and retention in the competitive telecom market in Vietnam Understanding these dynamics is crucial for telecom providers aiming to enhance customer experiences and foster long-term relationships.

RESEARCH PROCESS

Following the identification of the research problem, the research questions and scope were established A comprehensive literature review was conducted to explore relevant theories and models related to customer satisfaction, retention, and loyalty, aiming to identify a suitable conceptual model for understanding the impact of switching barriers on customer satisfaction and retention in Vietnam's mobile telecommunications market This process facilitated the development of research hypotheses Subsequently, a draft questionnaire was created by consolidating elements from various existing questionnaires used in prior studies The research design was structured into two phases: a pilot study and the main survey.

A pilot study was conducted with two rounds:

In the initial phase, we conducted a qualitative study through in-depth interviews with key customers to inform the design of a questionnaire This process was guided by a consolidated draft questionnaire derived from a comprehensive literature review, which also helped in identifying the appropriate sampling population.

- The second round: a quantitative study by conducting a survey with a sample of 30 customers by face-to-face interviews to preliminarily test the measures before launching a main survey

An extensive survey was conducted over four weeks, utilizing online invitations sent via email and face-to-face interviews with hard copy questionnaires.

The data underwent processing and analysis through Exploratory Factor Analysis and Cronbach's alpha reliability analysis to validate the questionnaire and confirm the reliability of the measurement scale To test the hypotheses, standard multiple linear regression (MLR) was employed, leading to the reporting of the main findings.

Research Problems Research Questions Research Scope

Quantitative study Pilot Face-to-face interview

Qualitative study in-depth interview (n)

DATA ANALYSIS & INTERPRETATION (EFA, Cronbach alpha, Regression)

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction, such as service quality, brand trust, and customer support The research highlights the importance of these elements in enhancing customer loyalty and overall business performance By understanding these dynamics, telecom companies can implement strategies to improve customer experiences and satisfaction levels, ultimately leading to increased retention and competitive advantage in the market.

The research procedure in this study consists of seven steps:

To begin the research process, an initial model was established alongside a comprehensive draft questionnaire This model, informed by a thorough literature review, focuses on the impact of switching barriers on customer satisfaction and retention Subsequently, the draft questionnaire was refined by integrating various measurement scales from prior studies.

- Step 2: Conduct a qualitative pilot study to refine a questionnaire

The first phase of the pilot study involved qualitative research through individual in-depth interviews focused on understanding customer retention formation and the impact of switching barriers on satisfaction, repurchase intentions, and attitudinal loyalty These interviews helped evaluate the relevance and adequacy of various measures in the draft questionnaire Based on the insights gained, the measures and measurement scales for the conceptual model were finalized, leading to the development of the questionnaire Additionally, recommendations for the sample population were derived from the interview findings.

In Step 3, a quantitative pilot survey is conducted to assess the clarity of the questionnaire This phase involves face-to-face interviews with 30 customers who have experience using mobile telecommunication services The aim is to evaluate their understanding of the questionnaire's content and the measurement scale used in the research Feedback and responses from these customers are gathered to inform the evaluation of the pilot study.

- Step 4: Evaluated the pilot study through quantitative pilot survey to refine the final questionnaire

Data collected from a pilot study underwent assessment through Cronbach's Alpha reliability and Exploratory Factor Analysis to examine the interrelationships among various variables This process led to the refinement of the questionnaire, resulting in a final version prepared for the upcoming main survey.

- Step 5: Launch a main survey and collect data

A comprehensive survey was conducted, utilizing online invitations sent to 70 customers and face-to-face interviews with 150 customers through hard copy questionnaires Over a four-week period, the survey yielded 56 responses via email, providing valuable feedback for analysis.

144 answers by hard copies after the main survey was launched

- Step 6: Test the reliability of the measurement scales by using Cronbach Alpha Analysis

Cronbach Alpha is a statistical measure used to evaluate the reliability of a measurement scale by assessing the internal consistency among variables within the same construct A scale is deemed reliable when its Cronbach Alpha coefficient exceeds 0.7.

- Step 7: Test the validity of scales with Exploratory Factor Analysis (EFA) and modify the research model accordingly

The measures were evaluated using Exploratory Factor Analysis (EFA) to investigate the inter-relationships among various variables Strong correlations were identified when the correlation matrix showed coefficients exceeding 0.3, Bartlett’s test of sphericity yielded significant results (p 50 + 8 * 4 = 82

The study required a minimum sample size of 145 participants A total of 220 survey invitations were distributed via email and hard copies, resulting in 200 completed surveys This sample size is deemed adequate for exploratory factor analysis (EFA) and multiple regression analysis.

MAIN SURVEY AND DATA COLLECTION

The main survey, launched on September 25, 2012, included 170 hard copy questionnaires and 50 online survey invitations sent via email to mobile telecom customers within the targeted sample population Over the course of a month, a total of 213 responses were collected from both methods, although 13 responses were rejected due to incompleteness, resulting in 200 usable samples.

DATA ANALYSIS METHODS

The data collected will be analyzed using SPSS software (Statistical Package for Social Sciences), Version 16.0, which facilitates Exploratory Factor Analysis (EFA), Cronbach's Alpha Reliability Analysis, and Standard Multiple Regression Analysis.

Initially, Exploratory Factor Analysis (EFA) was utilized to examine the relationships among a specific set of variables to determine the number of underlying factors In this study, Principal Component Analysis (PCA) served as the extraction method, complemented by Varimax rotation for optimal factor interpretation.

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It highlights key factors influencing customer satisfaction, including service quality, customer support, and brand reputation The research also explores how customer satisfaction impacts loyalty and retention, emphasizing its significance for businesses in a competitive market Understanding these dynamics can help telecom companies enhance their services and improve overall customer experience in Vietnam.

In order to assure the suitability of the data for factor analysis, the following conditions should be met (Pallant et, al, 2005):

The sample size should be appropriate: The sample size should be at least

In this research, a minimum sample size of 145 was determined for Exploratory Factor Analysis (EFA), based on the requirement of having at least five cases for each of the 29 variables studied With 200 valid responses collected, the dataset was deemed suitable for conducting the EFA.

The factorability of data would be appropriate if:

- The Kaiser-Meyer-Olikin value (KMO) should be 0.6 or above

- The Bartlett’s test of sphericity should be statistically significant: p < 0.05

The number of factors were determined when:

- The components have an eigenvalue be 1 or more

- The total variance explained by these components should be above 50%

- Factor loading criteria should be 0.5 or above to ensure a practical significance

Cronbach Alpha Reliability Analysis was used to test the reliability of the measurement scales The scales are when Cronbach‘s alpha coefficient of each scale is bigger 0.7 (Pallant et al, 2005)

3.7.3 Multiple Regression Analysis The Multiple Linear Regression was used to test the research model and hypotheses in this study In accordance with Pallant (2005), the assumptions of a multiple regression are:

- The sample size is appropriate: n > 50 + 8m (where m = number of

- No the multiple linearity is found

- No outlines are found or in case they are, no significant impact of outlines is found

- Normality and linearity should exist

Before delving into further data analysis, it's essential to test all underlying assumptions The R-square value indicates the extent to which the model explains the variance in the dependent variable As noted by Pedhazur et al (1982), the overall R-square for the entire model is determined using a specific formula.

- R 1 2 is the correlation between Switching Cost, Investment Relationship, Attractiveness of Alternative, Interpersonal Relationship and Customer Satisfaction

- R 2 2 is the correlation between Customer Satisfaction and Customer Retention

- R M 2 is the overall correlation of the whole model.

SAMPLE DESCRIPTION

A total of 220 questionnaires were distributed to mobile telecom service customers in Ho Chi Minh City and Dong Nai Province, Vietnam, yielding 213 responses After excluding 13 invalid responses due to incomplete answers to mandatory questions, the valid responses totaled 200 This resulted in a high response rate of 96.8% and a validity rate of 90.9%.

The statistical analysis of a questionnaire involving 200 respondents revealed their mobile service provider preferences: 36% were Vinaphone, 26% were MobileFone, 24% were Vietteltelecom, 8% were Vietnammobile, 4% were Gmobile, and 2% were SFone.

The survey revealed that over half of the respondents were female, while 40% were male Most participants, 50%, were aged between 20 and 40 years, highlighting the youthful demographic of mobile suppliers' customers Additionally, 28% of respondents were under 20 years old, with smaller age groups represented: 16% between 40 and 50 years old, and 6% over 50.

Almost respondents of this survey were pre-paid form in mobile telecom service, by 74% and 26% for pay after form

In a recent survey, 28% of respondents reported using their mobile telecom supplier's service for over three years, making it the most common duration among users Additionally, 22% had utilized the service for more than five years The percentage of users who had been with the service for both 1 to 3 years and over 10 years was equal, each at 16% Meanwhile, 14% of respondents had been using the service for 6 months to 1 year, and a small 4% had used the service for less than 6 months.

The survey results indicate that a significant majority of respondents possess a bachelor's degree, accounting for 44.5% of the total Additionally, 26.5% hold a high school diploma, while 20.5% have an associate degree Those with a master's degree or higher represent 6.5%, and only 2% of respondents have education levels below high school.

The survey results indicate that 44% of respondents earn between 5 to 10 million dong per month, while 36% have an income of less than 5 million dong This suggests that the overall income levels of the participants are relatively low Additionally, 14% of respondents fall within the 10 to 15 million dong income bracket, and only 6% earn above 15 million dong Detailed sample characteristics are available in Table 4.1.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, customer support, and network reliability The research also examines how customer satisfaction impacts customer loyalty and overall business performance in the competitive telecom sector Understanding these dynamics is crucial for telecom companies aiming to enhance customer experiences and drive growth in Vietnam's rapidly evolving market.

Description Frequency Percent (%) Valid Percent Cumulative Percent

Education Below high school diploma 4 2.0 2.0 2.0

ASSESSMENT AND REFINEMENT OF MEASUREMENT SCALES

The validity and reliability of measurement scales were assessed with Exploratory Factor Analysis (EFA) and Cronbach Alpha Reliability

The Reliability Test Results indicated that all measurement scales demonstrated high reliability, with Corrected Item-Total Correlation values exceeding 0.3 for all variables The Cronbach Alpha values for each factor were also satisfactory, with scores of 0.767 for Switching Cost, 0.805 for Investment Relationship, 0.870 for Attractiveness Alternative, 0.861 for Interpersonal Relationship, 0.857 for Customer Satisfaction, and 0.874 for Customer Retention.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors that influence customer satisfaction, such as service quality, customer support, and network reliability The research also examines how customer satisfaction impacts customer loyalty and overall business performance Understanding these dynamics is crucial for telecom companies aiming to enhance customer experiences and drive growth in Vietnam's competitive market.

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

In general, switching to new mobile supplier would be a hassle SW1 17.14 26.145 704 659

I feel locked to the supplier X SW2 17.66 29.934 581 709

It is difficult for me to use other mobile suppliers SW3 16.70 32.983 421 763

It takes a lot of time to get information about other mobile suppliers SW4 17.86 33.565 452 752

If I switch to other mobile supplier, I will be lost this ID mobile number

I would spend a lot of money on switch from the supplier X to another INV1 12.76 12.889 561 783

I would spend a lot of time on switch from the supplier X to another INV2 13.51 12.261 627 752

I would spend a lot of effort on switch from the supplier X to another INV3 13.58 12.013 676 728 Price to invest to use service of other mobile supplier are so high INV4 13.54 12.461 615 757

ATTRACTIVENESS OF ALTERNATIVE Cronbach’s Alpha = 0.870

I trust on the supplier X more than other mobile service suppliers AA1 13.72 28.617 710 841

If I were choose another supplier I do not know what I will get AA2 13.04 24.225 786 818

I do not care about the brand name of the service of the supplier X AA3 12.80 26.013 662 853

I am very likely to switch to another service provider AA4 13.10 27.855 740 833

If I change, there is a risk that the new service provider won’t be as good as service of the supplier X AA5 12.14 28.704 606 863

I have developed a personal friendship with the supplier X INT2 19.41 20.856 760 810

In true, I would be comfortable interacting with the people working for the supplier X

I will lose a friendly, communicate and comfortable relationship with my friends and the supplier X If I change

I like the public image of the supplier X INT5 20.09 25.198 483 876

The supplier X meets all requirements that I see reasonable CS1 13.86 13.321 714 814

Overall, I am satisfied with the offerings and service from the supplier

I would introduce and encourage my friends and relative to do business and use service from the supplier X

I am satisfied to the supplier X CS4 13.48 14.884 680 828

I intend to continue to be customer to the supplier X CR1 23.40 35.127 654 856

If I had needed mobile service now The supplier X would be my first choice

I would recommend the supplier X as the best service supplier in Viet Nam

The relationship with the supplier X is very important to me CR4 24.30 38.251 561 870

It has been worthy, I am very loyal to the supplier X CR5 23.79 34.475 730 843

Overall, I do not change to another mobile supplier CR6 23.63 34.898 704 847

The EFA results presented in Table 4.3 indicate that the KMO values for all factors, including independent variables, the mediator variable, and the dependent variable, exceeded 0.7 Additionally, the Bartlett’s Test Significance was 000, which is less than 0.05, confirming that the conditions for the EFA method were satisfied.

The KMO value of 0.783 and four eigenvalues exceeding 1 (7.175, 2.290, 1.943, and 1.464) validate the existence of four underlying factors within the Switching Barrier construct, as proposed in our theoretical model These factors include Switching Cost, Investment in Relationship, Attractiveness of Alternatives, and Interpersonal Relationship.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, customer support, and pricing strategies Additionally, the research examines how customer satisfaction impacts loyalty and retention in the competitive telecom market Understanding these dynamics is crucial for telecom providers aiming to enhance customer experiences and drive business success in Vietnam.

The study identified three main factors influencing consumer behavior: Investment in Relationship, Attractiveness of Alternatives, and Interpersonal Relationships, each showing strong loading values However, the Switching Cost factor included item SW2, which had a low loading (< 0.5), prompting the author to consult respondents for clarity It was found that SW1, which indicated that switching to a new mobile supplier would be a hassle, effectively covered SW2 Consequently, the author decided to remove SW2 to enhance the content validity of the scale and performed a new Exploratory Factor Analysis (EFA) focusing on the four factors of the Switching Barrier construct.

The second result of EFA showed that eighteen variables were clearly grouped into 4 factors with high loading factor that having four eigenvalues larger than 1 (6.586, 2.280, 1.914 and 1.447) and KMO value of 0.766

The study identified a single factor for Customer Satisfaction, supported by an eigenvalue of 2.813 and validated through exploratory factor analysis (EFA), which yielded a KMO value of 0.797 with a significance level of 000, aligning with the proposed theoretical model.

The exploratory factor analysis (EFA) revealed a single underlying factor for Customer Retention, indicated by an eigenvalue of 3.689, which is greater than 1 Additionally, the KMO value was 0.879, with significance at 000, supporting the theoretical model of the research.

Construct/Factor EFA Test Results

SWITCHING BARRIER (With Switching Cost excluding SW2)

KMO 0.766 Bartlett’s Test Sig 0.000 Eigenvalue 1 6.586 Eigenvalue 2 2.280 Eigenvalue 3 1.914 Eigenvalue 4 1.447

AA1 AA2 AA3 AA4 AA5

INT2 INT3 INT4 INT5 INT6

KMO 0.797 Bartlett’s Test Sig 0.000 Eigenvalue 2.813

KMO 0.879 Bartlett’s Test Sig 0.000 Eigenvalue 3.689

CR1 CR2 CR3 CR4 CR5 CR6

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction, such as service quality, customer support, and brand reputation The research highlights the positive relationship between customer satisfaction and loyalty, emphasizing its critical role in enhancing business performance Understanding these dynamics can help telecom companies in Vietnam improve their services and foster stronger customer relationships.

The analysis conducted using Cronbach Alpha Reliability and Exploratory Factor Analysis (EFA) assessed the measurement of all variables through the Pearson Correlation Coefficient to identify multicollinearity and intercorrelations among predictor variables The results, as shown in Table 4.4 (Appendix 3), indicated that all Pearson Correlation Coefficient values were below 0.8, confirming the absence of excessive overlap in information among predictors Consequently, the factors identified were consistent with the theoretical framework, encompassing six key variables: Switching Cost (MSWCO), Investment Relationship (MINVR), Attractiveness of Alternative (MATAL), Investment Relationship (MINTR), Customer Satisfaction (MCSAT), and Customer Retention (MCRET).

From the above-mentioned results, the theoretical research model was revised with the same model for research that we suggested in Literature Review

The revised research model and Hypotheses are described in Figure 4.1

Figure 4.1: The revised conceptual research model

H1: Switching cost is negatively related to Customer satisfaction

Investment in a relationship negatively impacts customer satisfaction, while the attractiveness of alternatives enhances it Additionally, strong interpersonal relationships contribute positively to customer satisfaction Ultimately, higher customer satisfaction is linked to increased customer retention.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors affect overall consumer loyalty and retention The research highlights the importance of service quality, customer support, and pricing strategies in enhancing customer satisfaction Ultimately, the findings aim to provide valuable insights for telecom companies seeking to improve their services and foster stronger customer relationships in Vietnam's competitive market.

HYPOTHESES TESTING

Our data set with 200 valid cases was larger than the required minimum sample size of 82 for this multiple regression analysis in this research

According to Pallant (2005), the standard cut-off points for identifying multicollinearity among independent variables are a Tolerance value of 0.1 and a Variance Inflation Factor (VIF) value of 2 Tolerance is calculated as 1 - R², while VIF is determined as 1/(1 - R²) In Table 4.5, the Tolerance values for all independent predictor variables exceeded the 0.1 threshold, with values of 0.7 for Switching Cost, 0.698 for Investment Relationship, 0.634 for Attractiveness Alternative, and 0.644 for Interpersonal Relationship, indicating no multicollinearity issues Additionally, the VIF values for all independent variables were below the 2.0 cut-off, with Switching Cost at 1.428, Investment Relationship at 1.432, Attractiveness Alternatives at 1.578, and Interpersonal Relationship at 1.554, further confirming the absence of multicollinearity.

Table 4.5 Coefficients – Switching Barriers and Customer Satisfaction

B Std Error Beta Tolerance VIF

The histograms exhibited a normal distribution of scores across all variables, and the Normal Probability Plots displayed a nearly straight diagonal line from the bottom left to the top right, confirming the linearity of the data (refer to Figures 4.2 & 4.3 in Appendix 3).

As all the assumptions of Standard Multiple Regression were met, a further analysis on regression results were proceeded to test the research hypotheses

4.3.2 Testing Hypotheses on the impact of the factors in Switching Barriers on

The research model identified four components of Switching Barriers: Switching Cost, Investment Relationship (which negatively impacts Customer Satisfaction), Attractiveness Alternatives, and Interpersonal Relationship (which positively influences Customer Satisfaction) These relationships were analyzed through regression, with Customer Satisfaction (MCSAT) as the dependent variable and Switching Cost (MSWCO), Investment Relationship (MINVR), Attractiveness Alternatives (MATAL), and Interpersonal Relationship (MINTR) as independent variables.

The results from the Multiple Regression analysis presented in Table 4.6, Appendix 3, indicate a strong relationship between the predictor variables—Switching Cost (MSWCO), Investment Relationship (MINVR), Attractiveness of Alternatives (MATAL), and Interpersonal Relationship (MINTR)—and the dependent variable, Customer Satisfaction (MCSAT), with a correlation coefficient of R = 0.803.

R 2 = 0.645 This indicated that the model with four antecedents can explain 64.5% of the variance in Customer Satisfaction at the significance of 000 as mentioned in the Anova table

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors impact overall customer loyalty and retention The research highlights the importance of service quality, brand reputation, and customer support in shaping customer perceptions and experiences By understanding these dynamics, telecom providers can enhance their strategies to improve customer satisfaction and drive business success in the competitive Vietnamese market.

Table 4.5 showed that, the standardized coefficient Beta of Attractive Alternative

The study revealed a significant positive relationship between Attractiveness of Alternative (MATAL) and Customer Satisfaction (MCSAT), with a correlation of 0.236, as well as between Interpersonal Relationship (MINTR) and Customer Satisfaction (MCSAT), with a correlation of 0.695, both at a significance level of 000 This provides statistical evidence supporting hypotheses H3 and H4, which state that the Attractiveness of Alternative and Interpersonal Relationships are positively related to Customer Satisfaction at a 95% confidence level.

The analysis revealed that Switching Cost (MSWCO) had a standardized Beta of -0.033 with a significance value of 0.516, while Investment Relationship (MINTR) showed a standardized Beta of -0.013 and a significance value of 0.794 Both results indicate that, at a 95% confidence level, neither Switching Cost nor Investment Relationship significantly predicts Customer Satisfaction Consequently, the hypotheses H1, which posits that Switching Cost is negatively related to Customer Satisfaction, and H2, are not supported by the data.

“Switching Cost is negatively related to Customer Satisfaction” were not supported

4.3.3 Testing Hypotheses on the impact of the Customer Satisfaction on Customer Retention

The results presented in Table 4.7, Appendix 3 indicate a strong relationship between Customer Satisfaction (MCSAT) and Customer Retention (MCRET) in the mobile telecom sector, with a correlation coefficient of R = 0.787 and an R² value of 0.619 This suggests that the model accounts for 61.9% of the variance in Customer Retention, and the significance level of p = 0.000 confirms the robustness of this impact at a 95% confidence level.

Table 4.8: Coefficients –Customer Satisfaction and Customer Retention

Unstandardized Coefficients Standardized Coefficients t Sig

Satisfaction 756 042 787 17.929 000 a Dependent Variable: Customer Retention

The standardized coefficient Beta value for Customer Satisfaction (MCSAT) was 0.787 with a significance value of 0.000, demonstrating a positive impact on Customer Retention This supports the hypothesis H5, which posits that Customer Satisfaction is positively associated with Customer Retention.

4.3.4 Summary of Hypotheses Testing Results

The hypotheses testing results were summarized in Table 4.9 There were two hypotheses H1, H2 that were not supported And three hypotheses H3, H4, H5 were supported, in which H4, H5 were strongly supported

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors impact overall customer loyalty and retention The research highlights the importance of service quality, customer support, and pricing strategies in enhancing customer experiences By understanding these dynamics, telecom companies can develop effective strategies to improve customer satisfaction and foster long-term relationships with their clients.

Table 4.9: Summary of Hypotheses Testing Results

Standardized Coefficients (Beta) p-value Tested Results

H1 Switching Cost is negatively related to

H2 Investment Relationship is negatively related to Customer Satisfaction -0.013 0.794 Non-supported H3

Attractiveness of Alternatives is positively related to Customer Satisfaction

H4 Interpersonal Relationship is positively related to Customer Satisfaction 0.695 0.000 Strongly supported

H5 Customer Satisfaction has positively associated with Customer Retention 0.787 0.000 Strongly supported

The overall R-square R M 2 of the whole model was calculated as follows:

Y MCSAT = f(X MSWCO , X MINVR , X MATAL , X MINTR )

All tested correlations among the factors of the research model were described in the following Figure 4.4

Figure 4.4: The correlations of the research model

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, customer support, and brand reputation The research also examines the impact of customer satisfaction on loyalty and retention, emphasizing its critical role in the competitive telecom market in Vietnam Understanding these dynamics can help telecom companies enhance their services and improve customer experiences.

4.4 Anova Analysis – Multiple Linear Regression with demographic independent variables

Anova analysis was conducted to determine significant differences in the mean scores of key dependent variables, specifically Customer Satisfaction and Customer Retention, across various demographic groups These demographic factors included Service Duration, Gender, Education Level, Income Level, Age, Type of Use, and Respondent Supplier.

Although the primary research objectives do not focus on between-groups comparison, management aims to explore the connections between demographic variables and the dependent variables of Customer Satisfaction and Customer Retention The key demographic variables under consideration include Service Duration, Gender, Education Level, Income Level, Age, and Type of Use, which are essential for informing their relationship-building strategy.

The analysis presented in Tables 4.10 and 4.11, as well as Appendix 3, indicates that all significance values for the Multiple Linear Regression coefficients related to Customer Satisfaction and Customer Retention across various demographic factors—such as Service Duration, Gender, Age, Education Level, Income Level, and Type of Use—exceeded 0.05 This finding suggests that there are no statistically significant differences in Customer Satisfaction and Customer Retention among the different demographic groups analyzed.

The research model indicates that Switching Barriers, comprising Switching Cost, Investment Relationship, Attractiveness Alternative, and Interpersonal Relationship, significantly influence Customer Satisfaction Specifically, Negative Switching Barriers, represented by Switching Cost and Investment Relationship, detract from Customer Satisfaction, while Positive Switching Barriers, including Attractiveness Alternative and Interpersonal Relationship, enhance Customer Satisfaction.

DISCUSSIONS OF THE FINDINGS

The research model indicates that Switching Barriers consist of four key components: Switching Cost, Investment Relationship, Attractiveness Alternative, and Interpersonal Relationship Negative Switching Barriers, such as Switching Cost and Investment Relationship, adversely affect Customer Satisfaction, while Positive Switching Barriers, including Attractiveness Alternative and Interpersonal Relationship, enhance Customer Satisfaction.

Customer satisfaction significantly impacts customer retention in the mobile telecom industry in Vietnam Analyzing data against the original theoretical research model offers valuable insights into this relationship.

4.5.1 The unexpected insignificance of the Negative Switching Barrier’s role

The Negative Switching Barrier comprises two key elements: Switching Cost and Investment Relationship According to the findings from a multiple regression analysis, the Negative Switching Barrier negatively impacts Customer Satisfaction, aligning with the conclusions of Claes Robert et al (2003) However, contrary to expectations, this study did not find support for the negative relationships between Switching Cost and Customer Satisfaction, nor between Investment Relationship and Customer Satisfaction.

The competitive landscape of Vietnam's mobile services market, which features seven service providers, drives carriers to enhance their market share through strategies like improving brand image and expanding distribution channels for efficient customer engagement Additionally, the significant reduction in mobile service costs over the past decade, with nine rate cuts making Vietnam's telecommunications among the cheapest in ASEAN, has led customers to overlook Switching Costs and Investment Relationships Consequently, these factors do not adversely affect customer satisfaction within Vietnam's mobile telecom industry.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction, such as service quality, customer support, and pricing strategies The research highlights the importance of understanding customer expectations and experiences to enhance satisfaction levels Additionally, the study examines how increased customer satisfaction positively impacts customer loyalty and overall business performance in the competitive telecom market.

4.5.2 The impact of the Positive Switching Barrier on Customer Satisfaction

The Positive Switching Barrier consists of two key components: Attractiveness of Alternative and Interpersonal Relationship According to the findings of a multiple regression analysis by Claes Robert et al (2003), the Positive Switching Barrier significantly enhances Customer Satisfaction The study confirms a strong positive correlation between both Attractiveness of Alternative and Customer Satisfaction, as well as Interpersonal Relationship and Customer Satisfaction Notably, the analysis reveals a stronger influence of Interpersonal Relationship on Customer Satisfaction, with a Standardized Coefficient (Beta = 0.695), compared to the Attractiveness of Alternative, which has a Standardized Coefficient (Beta = 0.236).

The Positive Switching Barrier, which encompasses Interpersonal Relationships and the Attractiveness of Alternatives, plays a crucial role in driving Customer Satisfaction among mobile carriers By fostering strong interpersonal relationships with customers, carriers can significantly influence repurchase intentions Consequently, mobile carriers should prioritize relationship-oriented marketing strategies to strengthen these connections and enhance the appeal of their services compared to competitors.

CONCLUSIONS

This study aimed to explore the strategies employed by mobile telecommunication companies in Vietnam to enhance customer satisfaction and retention It focused on identifying the key influencers and determinants of customer satisfaction, particularly examining the role of switching barriers and their significance in influencing customer retention The findings and conclusions drawn from the hypotheses are summarized in the following sections.

This study identifies four key determinants of switching barriers that impact customer satisfaction: switching costs, investment in relationships, attractiveness of alternatives, and interpersonal relationships It also examines the significant influence of customer satisfaction on customer retention Through data collection and analysis grounded in relevant theory, the research reveals compelling insights into these dynamics.

Customer satisfaction plays a crucial role in enhancing customer retention, demonstrating a strong positive correlation High levels of customer satisfaction lead to increased repurchase intentions, while dissatisfaction often prompts customers to consider switching suppliers.

Interpersonal relationships significantly influence customer satisfaction, serving as a crucial switching barrier Additionally, the overall attractiveness of alternatives plays a vital role in enhancing customer experience.

Furthermore, it was identified the factors of switching barrier that are switching cost and investment relationship have none significant and none or a little of negative effect on customer satisfaction

The study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, brand reputation, and customer support Additionally, the research examines how customer satisfaction impacts loyalty and overall business performance in the competitive telecom market Understanding these dynamics is crucial for telecom companies aiming to enhance customer experiences and drive growth in Vietnam.

MANAGERIAL IMPLICATIONS

The Vietnamese mobile telecommunications market has turned into a highly competitive "red ocean," where suppliers must engage in fierce competition for market share As the market becomes saturated, it is evident that there is little room for expansion Consequently, the industry is shifting its strategic focus from merely attracting new customers to prioritizing customer satisfaction and retention, aiming to both acquire new clients and maintain existing ones.

The historical development of mobile services in Vietnam is dominated by three major providers: Viettel, MobileFone, and Vinaphone, which collectively hold significant market share As subscriber growth potential appears limited, the competitive landscape in Vietnam's mobile market is expected to evolve, introducing new dynamics and challenges.

Regarding this issue, this thesis has some implications for managers in order to set new goals

The study reveals that the interpersonal relationships associated with switching barriers in mobile telecommunications are crucial for customer satisfaction When customers have established connections with their service provider through relationships, information, and social networks, they are less likely to switch providers Therefore, mobile carriers should prioritize maximizing customer satisfaction by enhancing these interpersonal relationships to improve customer retention Specifically, they must focus on maintaining loyal customers and adopting a customer-oriented approach by consistently delivering value and benefits, which will foster satisfaction and promote long-term relationships.

In the saturated mobile telecom market of Vietnam, carriers should prioritize strategies to attract new customers, particularly among the youth, including pupils and students, who currently lack "interpersonal relationships" with providers By fostering these connections, mobile carriers can cultivate loyalty among this demographic as they transition into the workforce To effectively engage this segment, companies should implement targeted promotions, marketing campaigns, and favorable pricing policies that cater to the low-income needs of young consumers This approach will not only boost customer acquisition but also enhance market share within the competitive landscape of Vietnam's telecom industry.

Third, in addition to the main factors affecting "interpersonal relationship" in switching barriers in the Vietnam mobile telecommunication market, the factors

The appeal of alternatives significantly enhances customer satisfaction, prompting mobile carriers in Vietnam to differentiate themselves from competitors Key areas for improvement include service quality, brand image, customer care, pricing, technology, and value-added services By effectively communicating the unique benefits and value differences they offer, suppliers can foster customer loyalty and encourage continued service usage in a competitive mobile market.

Further, interpersonal relationships between suppliers and customer and the attractiveness of the products and services in the competitive market are factors that retain customers

Research indicates that the relationship between switching costs and investment has minimal impact on customer satisfaction in the mobile telecom industry Customers appear indifferent to these factors when choosing to switch or leave their mobile service provider This suggests that mobile carriers are facing intense competition, as the costs associated with switching services or providers are relatively low.

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It highlights key factors influencing customer satisfaction, including service quality, customer support, and pricing strategies The research aims to identify how these elements impact customer loyalty and overall satisfaction levels By understanding these dynamics, telecom companies can enhance their service offerings and improve customer retention in a competitive market.

Mobile suppliers' managers should prioritize relationship-building over solely concentrating on the marketing mix of price, promotion, place, and product To boost customer lifetime value and retention, they must implement relationship-oriented marketing strategies that foster strong interpersonal connections with customers Additionally, making their services more appealing than those of competitors is essential for success in a competitive market.

IMPLICATIONS FOR FURTHER RESEARCH

This study conducts an empirical analysis of how switching costs, investment relationships, attractive alternatives, and interpersonal factors influence switching barriers and customer satisfaction in the mobile telecommunications industry It further explores the effects of customer satisfaction on customer retention and the causal relationship between these two elements The findings offer a solid foundation for future research on customer satisfaction and retention, providing valuable insights for companies operating in the Vietnamese market.

This study employed convenience sampling, but ANOVA analysis revealed no significant correlations between demographic variables and dependent variables, raising concerns about the sampling method's appropriateness To enhance future research, it's crucial to gain insights into the proportions of customer segments and sizes, ensuring that sampling reflects these proportions accurately.

Ahmad, R., & Buttle, F “Customer retention management: A reflection of theory and practice”, Marketing Intelligence and Planning, 20(3), 2012, 149-161

Andaleeb, S.S (1996), “An experimental investigation of satisfaction and commitment in industrial markets,” Journal of Business Research, 58(1), 19-28

Anderson, E.W., & Sullivan, M.W (1993), “the antecedents and Consequences of Customer satisfaction for Firms”, Marketing Science

Balabanis, G., N Reynolds, et al (2006) “Bases of e-store loyalty: Perceived switching barriers and satisfaction” Journal of Retailing, 73(1), 15-37

Berry, L.L (1995), “Relationship Marketing of services-Growing interest, Emerging Perspectives”; Journal of Academy of marketing science

Bolton, R.N (1998) “A dynamic Model of the Duration of the Customer’s Relationship with a continuous Service Provider”; Marketing Science, 17(1), 45-65

Bowen, T.J., & Chen, S (2001),”The relationship between customer loyalty and customer satisfaction,” International Journal of Contemporary Hospitality Management, 13(5), 213-217

Bendapudi, N., & Berry, L L (1997) “Customers’ Motivation for Maintaining Relationships with Service Providers,” Journal of Retailing, 73(1), 15-37

Boulding, W A., Kalra, A., Staeling, R., & Zeithaml V A (1993) A Dynamic Process Model of Service Quality: From Expectations to Behavioral Intentions Journal of Marketing Research, 15(1), 7-27

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors that influence customer satisfaction and explores their impact on customer loyalty and retention By analyzing the mobile telecom sector in Vietnam, the research aims to provide insights that can help businesses enhance customer experiences and improve service quality Understanding these dynamics is crucial for companies seeking to thrive in a competitive market.

Colgate, M and B lang (2001) “Switching barriers in consumer markets: an investigation of the financial services industry”; Journal of Consumer Marketing 18

Claes-Robert, J.M (2003) “Effects of switching barriers on satisfaction, repurchase intentions and attitudinal loyalty,” Stockholm School of economics, 2(2), 3-13

Developing an argument (n.d.) Retrieved November 3, 2012, from http://w.w.w.ndtv.com/article/world/world-has-nearly-as-many-cell-phone- subcriptions-as-inhabitants-un-278416

Developing an argument (n.d.) Retrieved September 19, 2012, from http://english.vietnamnet.vn/en/science-technology/10952/a-lot-of-challeges-still-exist- in-vietnem-s-telecom-market itu-htm

Developing an argument (n.d.) Retrieved October 7, 2012, from http://w.w.w.seiko.ideas.com/News-collectionvol121.pdf

Fournier, S (1998) “Consumers and their Brands: Developing Relationship Theory in Consumer Research” Journal of Consumer Research, 24, 343–373

Hausknecht, D R (1990) “Measurement Scales in Consumer Satisfaction/Dissatisfaction” Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour, 3, 1-11

Jones, M A., Mothersbaugh, D L., & Beatty, S E (2000) “Switching Barriers and Repurchase Intentions in Services,” Journal of Retailing, 76(2), 259-74

Jones, M A., Mothersbaugh, D L., & Beatty, S E (2002), “Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing their Differential Service Outcomes” Journal of Business Research, 55(6), 441-50

Kaveh, P (2007) “Developing and testing a model for explaining customer retention formation” Case of Iranian Mobile telecommunication service, 66, 17-33

Kim, M., Park, M., Jeong, D “The effects of customer satisfaction & switching barrier on customer loyalty in Korean mobile telecommunication service” Telecommunication Policy 28 (2004), 145-159

Lee, J., Lee, J., & Freick, L (2001) “the impact of switching costs on customer satisfaction-loyalty link: Mobile phone service in France” Journal of services marketing, 15(1), 35-48

Lund, M (1985) “The Development of Investment and Commitment Scales for Predicting Continuity of Personal Relationships,” Journal of Social and Personal Relationship, 2(2), 3-23

Mohan, H R (2012) Where is text style communication going from here? Computer Society of India eNewsletter Retrieved November 11, 2012, from http://www.csi- india.org/web/csi/enewletter/csi-enl-2012-11-01.pdf

Morgan, R M., & Hunt, S D (1994) “The Commitment Trust Theory of Relationship Marketing” Journal of Marketing, 58(3), 20-38

Nancy, L L., Karen, C B., & George, A M (2005) SPSS for Intermediate Statistics: Use and Interpretation University of Colorado at Denver

Nilssen, T (1992) Two Kinds of Consumer Switching Costs Rand Journal of Economics, 23(4), 579-589

Pallant, J (2005), SPSS Survival Manual, A step-by-step guide to data analysis using SPSS for Windows (Version 12), Allen & Unwin, Crow Nest NSW 2065, Australia

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It identifies key factors influencing customer satisfaction and examines how these factors impact overall customer loyalty and retention The research highlights the importance of service quality, customer support, and pricing strategies in enhancing customer experiences By understanding these elements, telecom companies can improve their services and foster stronger relationships with their customers, ultimately driving business success in a competitive market.

Patterson, P.G and Spreng, R.A (1997), “Modelling the relationship between perceived value, satisfaction and repurchase intentions in a business-to-business, services context: an empirical examination” International Journal of Service Industry Management, 8(5), 414-434

Ping, R (1997) Voice in Business-to-Business Relationships: Cost-of-Exit and Demographic Antecedents Journal of Retailing, 73(2), 261-281

Ping, R (1999) Unexplored antecedents of Exiting in a Marketing Channel Journal of Retailing, 75(2), 218-241

Reichheld, F.F (1996) “The loyalty effect”, Boston Harvard Business School Press

Reichheld F., Sasser W.E (1990) “Zero Defects: quality Comes to services”; Harvard Business Review

Rusbult, C E., Johnson, D J., & Morrow, G D (1986) Determinants and Consequences of Exit, Voice, Loyalty, and Neglect: Responses to Dissatisfaction in Adult Romantic Relationships Human Relations, 39(1), 45-63

Rust, R T., Zahorik, A J., & Keiningham, T L (1995) Return on Quality (ROQ): Making Service Quality Financially Accountable Journal of Marketing, 59(2), 58-70

Tabchnick, B.G & Fidell, L.S (1991), Using Multivariate statistics, 3ed, NY: HarperCollin

Taylor, S A., & Baker, T L (1994) An Assessment of the Relationship between Service Quality and Customer Satisfaction in the Formation of Consumers’ Purchase Intentions Journal of Retailing, 70(2), 163-178

Yi, Y (1990) A Critical Review of Consumer Satisfaction In V A Zeithaml (Ed.), Review of Marketing, American Marketing Association, Chicago

Zeithaml, V A., Berry, L L., & Parasuraman, A (1996) The Behavioral Consequences of Service Quality Journal of Marketing, 60(2), 31-46

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It explores key factors influencing customer satisfaction, such as service quality, brand trust, and customer experience The findings highlight the significant impact of these factors on overall customer satisfaction and loyalty, providing valuable insights for telecom companies aiming to enhance their services and customer relationships in Vietnam.

A CONSOLIDATED DRAFT QUESTIONNAIRE

A guide for a qualitative in-depth interview

I SWITCHING COST (Claes-Robert et al, 2003 & Kaveh et al., 2006)

Please choose five for following statements

1 In general, switching to new service provider would be a hassle 7 23.33 The interviewees suggested to change “this supplier” to “supplier X” to make it more clear the supplier in mobile telecom

Newly developed as per suggestion of Mr Nguyen Minh Tam, Director of Bien Hoa Center – VNPT Dong Nai Company

2 It is difficult for me to use other suppliers 6 20.00

3 It would be complicated for me to change supplier 1 3.33

4 I feel locked to this supplier 5 16.67

5 It takes a lot of time to get information about other suppliers 5 16.67

6 I will be lost the ID mobile number from this supplier If I change 6 20.00

(Claes-Robert et al, 2003 & Kaveh et al., 2006)

Please give comments on these following statements :

1 I would spend a lot of money on switch from this supplier to another

The interviewees agreed on all statements but suggested to change

“this supplier” to “the supplier X”

2 I would spend a lot of time on switch from this supplier to another

3 I would spend a lot of effort on switch from this supplier to another

4 Prices to invest to use service of other supplier are higher

III ATTRACTIVENESS OF ALTERNATIVES (Kaveh et al., 2006)

Please choose five for following statements

1 I’m not certain about the quality of services that other suppliers will provide me 5 17.24

- Suggested to change “not certain about the quality of services that other supplier” to “trust on quality of the supplier X than other suppliers”

- Agreed on all statements but suggested to change “this supplier” to “the supplier X”

2 If I were choose another supplier I do not know what I will get 5 17.24

3 I do not care about the brand name of the service of this supplier 5 17.24

4 I am very likely to switch to another service provider 4 13.79

5 If I change, there is a risk that the new service provider won’t be as good as services of this supplier 7 24.14

6 I hate spending time finding a new mobile service supplier 2 6.90

7 I hate re-registering to another mobile service supplier 1 3.45

IV INTERPERSONAL RELATIONSHIP (Kaveh et al., 2006)

Please choose six for following statements

1 I feel there is a bond between this supplier and myself 6 20.00

Agreed on statements but suggested to change “this supplier” to “the supplier X”

2 I have developed a personal friendship with this supplier 5 16.67

3 I would be more comfortable interacting with the people working for this supplier 6 20.00

4 I would miss this mobile supplier If I switch suppliers 0 0.00

5 I will lose a friendly, communicate and comfortable relationship with my friends and this supplier If I change 5 16.67

6 I like the public image of this supplier 4 13.33

7 This supplier cares about its customers 4 13.33

V CUSTOMER SATISFACTION (Claes-Robert et al, 2003 & Kaveh et al., 2006)

Please give comments on these following statements:

1 This supplier meets all the requirements that I see reasonable

Agreed on all statements but suggested to change “this supplier” to “the supplier X”

2 Overall, I am satisfied with the offerings of this supplier

3 I would encourage friends and relatives to do business with this supplier

4 I am satisfied with this supplier

VI CUSTOMER RETENTION (Claes-Robert et al, 2003 & Kaveh et al., 2006)

Please choose six for following statements

1 If I had needed mobile services now, my supplier would be my first choice 5 16.67

- Suggested to change “plan to continue my relationship with my supplier in future” to “I intend to continue to be customer to the supplier X

- Suggested to change “in the area” to “in Vietnam”

- Suggested to add “It has been worthy, I am very loyal to the supplier X”

- Agreed to suggest changing “my supplier” to “the supplier X”

- Newly developed as per suggestion of Ms Do Thi Lan Anh, responsibility of Marketing in VNPT Dong Nai Company

2 I plan to continue my relationship with my supplier in future 4 13.33

3 I would recommend my service operator as the best service provider in the area 5 16.67

4 I am very loyal to my supplier 5 16.67

5 I have said positive things about my supplier to others 1 3.33

6 The relationship with my supplier is important to me 4 13.33

7 I consider my supplier as my first choice for mobile service 0 0.00

8 Surely, I decide I have not switched to other suppliers 6 20.00

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese consumers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, brand reputation, and customer support Additionally, the research examines the impact of customer satisfaction on loyalty and retention rates, emphasizing its importance for telecom companies in Vietnam The findings aim to provide insights for improving customer experience and driving business success in a competitive market.

QUESTIONNAIRE

I have been a student of MBUS1-2010 course, the MBA program in English of University of Economics Ho chi Minh City – International School of Business

Our research focuses on the key factors influencing switching barriers and their impact on customer satisfaction in the mobile telecom service industry in Vietnam Additionally, we explore the relationship between customer satisfaction and retention, highlighting the critical role these elements play in enhancing customer loyalty within this sector.

We would like appreciate to you can save your time to answer this questionnaire All feedbacks are very worthy to success in this research

PART A: INFORMATION OF MOBILE SERVICER SUPPLIERS:

1 Which the mobile telecom service supplier has you regularly used? (Please choose only one answer)

(This mobile telecom supplier will be referred from now in this survey as the supplier X)

2 Which type of use do you get mobile telecom service, now?

3 How long have you been used mobile service of the supplier X?

Please read each of the following statements carefully and get the level of your agree or disagree by circle the number that best reflects

1: Very strongly disagree; 2: Strongly disagree; 3: Disagree; 4: Neutral; 5: Agree; 6: Strongly agree; 7: Very strong agree

1 In general, switching to new service provider would be a hassle 1 2 3 4 5 6 7

2 It is difficult for me to use other suppliers 1 2 3 4 5 6 7

3 I feel locked to the supplier X 1 2 3 4 5 6 7

4 It takes a lot of time to get information about other suppliers 1 2 3 4 5 6 7

5 I will be lost the ID mobile number from the supplier X If I change 1 2 3 4 5 6 7

6 I would spend a lot of money on switch from the supplier X to another 1 2 3 4 5 6 7

7 I would spend a lot of time on switch from the supplier X to another 1 2 3 4 5 6 7

8 I would spend a lot of effort on switch from the supplier X to another 1 2 3 4 5 6 7

9 Prices to invest to use service of other supplier are higher 1 2 3 4 5 6 7 Attractiveness of Alternative

10 I trust on quality of the supplier X than other suppliers 1 2 3 4 5 6 7

11 If I were choose another supplier I do not know what I will get 1 2 3 4 5 6 7

12 I do not care about the brand name of the service of the supplier X 1 2 3 4 5 6 7

13 I am very likely to switch to another service provider 1 2 3 4 5 6 7

14 If I change, there is a risk that the new service provider won’t be as good as services of the supplier X 1 2 3 4 5 6 7

This study examines the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights the key factors influencing customer satisfaction and how these factors ultimately impact customer loyalty and retention By analyzing the specific needs and preferences of Vietnamese consumers, the research aims to provide valuable insights for telecom companies to enhance their service quality and customer experience Understanding these dynamics is crucial for businesses looking to thrive in the competitive mobile telecom market in Vietnam.

15 I have developed a personal friendship with the supplier X 1 2 3 4 5 6 7

16 I would be more comfortable interacting with the people working for the supplier X 1 2 3 4 5 6 7

17 I will lose a friendly, communicate and comfortable relationship with my friends and the supplier X If I change 1 2 3 4 5 6 7

18 I like the public image of the supplier X 1 2 3 4 5 6 7

19 The supplier X cares about its customers 1 2 3 4 5 6 7

20 The supplier X meets all the requirements that I see reasonable 1 2 3 4 5 6 7

21 Overall, I am satisfied with the offerings of the supplier X 1 2 3 4 5 6 7

22 I would encourage friends and relatives to do business with the supplier X 1 2 3 4 5 6 7

23 I am satisfied with the supplier X 1 2 3 4 5 6 7

24 I intend to continue to be customer to the supplier X 1 2 3 4 5 6 7

25 If I had needed services now, The supplier X would be my first choice 1 2 3 4 5 6 7

26 I would recommend the supplier X as the best mobile service provider in Vietnam 1 2 3 4 5 6 7

27 The relationship with the supplier X is important to me 1 2 3 4 5 6 7

28 It has been worthy, I am very loyal to the supplier X 1 2 3 4 5 6 7

29 Surely, I decide I have not switched to other suppliers 1 2 3 4 5 6 7

Thank you so much for your kind support!

Below than high school diploma

Master degree and upperHigh school diplomaAssociate degree Bachelor degree

Xin chào các Anh (Ch ),

Tôi là sinh viên l p MBUS1, chuong trình th c si dào t o b ng ti ng Anh c a Tru ng Ð i h c Kinh t Thành ph H Chí Minh

Hiện nay, tôi đang thực hiện cuộc nghiên cứu về các nhân tố trong rào cản khi chuyển đổi nhà mạng cung cấp, tác động đến sự hài lòng của khách hàng Từ đó, nhóm tìm hiểu mối quan hệ giữa sự hài lòng khách hàng và việc giữ chân khách hàng trong lĩnh vực viễn thông di động tại Việt Nam.

R t mong Anh (Ch ) dành th i gian th c hi n b ng kh o sát bên du i T t c , nh ng ý ki n c a Anh (Ch ) d u có ý nghia v i s thành công c a nghiên c u

A Thông tin v m ng d ch v di n tho i di d ng:

1 Hi n t i, Anh (Ch ) dang s d ng m ng di n tho i di d ng nào thu ng xuyên nh t (ch n 01 tr l i)?

(Nhà m ng di n tho i di d ng này du c ký hi u là m ng di d ng X cho các câu tr l i sau)

4 Anh (Ch ) dang s d ng di n tho i di d ng theo hình th c tr tru c hay tr sau?

5 Anh (Ch ) dã s d ng m ng di d ng X này du c bao lâu?

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It examines the factors influencing customer satisfaction and how this satisfaction affects customer loyalty and retention The research highlights the importance of service quality, customer service, and brand reputation in shaping customer perceptions Understanding these elements can help telecom companies enhance their strategies to improve customer satisfaction and drive business success in Vietnam's competitive market.

Anh (Ch ) vui lòng cho bi t m c d d ng ý hay không d ng ý c a mình v các phát bi u du i dây, b ng cách khoanh tròn vào m t l a ch n thích h p cho m i n i dung

1: Hoàn toàn không d ng ý; 2: Hoi không d ng ý; 3: Không d ng ý; 4:Trung hòa (không có ý ki n); 5: Hoi d ng ý; 6: Ð ng ý; 7: Hoàn toàn d ng ý

Các ch tiêu dánh giá M c d d ng ý

Chi phí khi chuy n m ng di d ng

1 Tôi c m th y chuy n sang s d ng m ng di d ng khác là m t v n d phi n ph c 1 2 3 4 5 6 7

2 Tôi s g p nhi u khó khan khi s d ng s di n tho i, thi t b di d ng c a nhà m ng khác 1 2 3 4 5 6 7

3 Tôi s th c hi n cam k t gi a tôi và m ng di d ng X 1 2 3 4 5 6 7

4 Tôi s ph i m t nhi u th i gian d có du c thông tin v các nhà m ng di d ng khác 1 2 3 4 5 6 7

5 N u tôi chuy n m ng, tôi s m t s di d ng c a nhà m ng X 1 2 3 4 5 6 7 Chi phí trong vi c d u tu t o các m i quan h thông tin

6 Tôi s m t nhi u ti n khi chuy n sang s d ng m ng di d ng khác 1 2 3 4 5 6 7

7 Tôi s m t nhi u th i gian d chuy n sang s d ng m ng di d ng khác 1 2 3 4 5 6 7

8 Tôi s ph i m t nhi u công s c d t o l i m i quan h , h p tác v i nhà m ng di d ng khác 1 2 3 4 5 6 7

9 Nói chung, chi phí cung nhu giá c d d u tu chuy n sang s d ng m ng di d ng khác là khá cao 1 2 3 4 5 6 7

S thu hút khách hàng c a m ng vi n thông di d ng

10 Tôi r t tin tu ng ch t lu ng d ch v di d ng c a nhà m ng X 1 2 3 4 5 6 7

11 Giã s , n u bây gi Tôi có th ch n m ng di d ng khác, th t s Tôi không bi t s ch n nhà m ng nào 1 2 3 4 5 6 7

12 Tôi không quan tâm d n thuong hi u c a nhà m ng di d ng X 1 2 3 4 5 6 7

13 T i r t thích và mu n chuy n sang nhà m ng di d ng khác 1 2 3 4 5 6 7

14 Tôi không thích rui ro khi s d ng m ng di d ng khác 1 2 3 4 5 6 7

Nh ng m i quan h , h p tác liên quan d n nhà m ng di d ng

15 Tôi s ti p t c phát tri n m i quan h h p tác v i nhà m ng di d ng X 1 2 3 4 5 6 7

16 Tôi th t s an tâm và ti n l i khi giao ti p trong công vi c qua m ng di d ng X 1 2 3 4 5 6 7

17 Tôi s b l và m t di nhi u thông tin, m i quan h h p tác công vi c, b n bè, d i tác N u Tôi chuy n sang m ng di d ng khác 1 2 3 4 5 6 7

18 Tôi th t s n tu ng và r t thích hình nh thuong hi u, các chuong trình ho t d ng xã h i, c ng d ng c a m ng di d ng X 1 2 3 4 5 6 7

19 Nhà cung c p d ch v di d ng X quan tâm và cham sóc khách hàng r t t t 1 2 3 4 5 6 7

20 M ng di d ng X dáp ng các yêu c u và mong d i c a Tôi 1 2 3 4 5 6 7

21 Tôi hài lòng v i nh ng gì mà nhà m ng di d ng X dã cung c p và h p tác v i Tôi trong su t th i gian qua 1 2 3 4 5 6 7

22 Tôi s gi i thi u và khuy n khích b n bè, ngu i thân s d ng m ng di d ng X 1 2 3 4 5 6 7

23 Tôi hài lòng v i m ng di d ng X 1 2 3 4 5 6 7

Nh ng m i quan h trung thành - Gi khách hàng

24 Tôi s ti p t c là khách hàng c a m ng di d ng X 1 2 3 4 5 6 7

25 Gi s , n u Tôi c n và có nhu c u s d ng d ch v di d ng, Tôi v n ti p t c ch n m ng di d ng X 1 2 3 4 5 6 7

26 Tôi s luôn tin tu ng và d ng ý r ng: “m ng di d ng X là m ng di d ng t t nh t t i Vi t Nam” 1 2 3 4 5 6 7

27 Theo Tôi, m i quan h h p tác v i m ng di d ng X là r t quan tr ng và c n thi t 1 2 3 4 5 6 7

28 M ng di d ng X x ng dáng có du c s trung thành c a Tôi 1 2 3 4 5 6 7

29 Tôi nh t d nh không chuy n sang m ng di d ng khác 1 2 3 4 5 6 7

C Tru c khi k t thúc, xin Anh (Ch ) vui lòng cho bi t m t vài thông tin cá nhân:

3 Thu nh p c a Anh (Ch ) trong 01 tháng:

Xin chân thành cám on Anh (Ch ) v s h p tác và giúp d này !

Chua t t nghi p PTTH T t nghi p PTTH Trung c p, Cao d ng Ð i h c

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, including service quality, brand reputation, and customer support The research also examines the impact of customer satisfaction on loyalty and retention rates, emphasizing the importance of understanding customer needs in a competitive market Ultimately, the findings provide valuable insights for telecom companies aiming to enhance customer experience and drive business growth in Vietnam.

TESTING THE ASSUMPTIONS OF MULTIPLE REGRESSION

Testing the Assumptions of Multiple Regression

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

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights the key factors influencing customer satisfaction, including service quality, brand reputation, and customer support The findings indicate that higher customer satisfaction leads to increased loyalty and positive word-of-mouth, ultimately benefiting telecom companies Understanding these dynamics is essential for businesses aiming to enhance customer experiences and improve their competitive edge in the market.

Figure 4.2 Customer satisfaction (MCSAT)- Histogram, Normal Probability Plot,

Figure 4.3 Customer Retention (MCRET) - Histogram, Normal Probability Plot,

This study explores the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It examines key factors influencing customer satisfaction, including service quality, brand reputation, and customer support The research highlights the significant impact of customer satisfaction on loyalty and retention, emphasizing the importance of understanding customer needs in a competitive market By identifying these critical elements, telecom companies can enhance their strategies to improve customer experiences and drive business success.

Table 4.6: Testing results the impact of Switching Barrier (Switching Cost, Investment Relationship, Attractive Alternatives and Interpersonal Relationship) on Customer

Std Error of the Estimate

R Square Change F Change df1 df2 Sig F Change

1 803 a 645 638 73541 645 88.526 4 195 000 a Predictors: (Constant), Switching Cost, Investment Relationship, Attractiveness Alternatives, Interpersonal Relationship. b Dependent Variable: Customer Satisfaction

Model Sum of Squares df

Table 4.7 Testing results for the impact of Customer Satisfaction on Customer Retention

Model R R Square Adjusted R Square Std Error of the Estimate

1 787 a 619 617 72656 a Predictors: (Constant), Customer satisfaction b Dependent Variable: Customer Retention

Squares df Mean Square F Sig

Total 274.217 199 a Predictors: (Constant), Customer Satisfaction b Dependent Variable: Customer Retention

Table 4.10 Multiple Linear Regression – Coefficients on Customer Satisfaction of demographic factors

B Std Error Beta Tolerance VIF

INCOM3 249 255 071 976 330 348 2.877 a Dependent Variable: Customer Satisfaction

This study investigates the antecedents and outcomes of customer satisfaction among Vietnamese customers in the mobile telecom industry It highlights key factors influencing customer satisfaction, such as service quality, customer support, and pricing strategies The research also explores the relationship between customer satisfaction and customer loyalty, emphasizing its importance for telecom providers in Vietnam Understanding these dynamics can help businesses improve their services and enhance customer retention in a competitive market.

B Std Error Beta Tolerance VIF