Antecedents of customers evaluation on service value towards using mobile value added services

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VO THI THUY KHA ANTECEDENTS OF CUSTOMER’S EVALUATION ON SERVICE VALUE TOWARDS USING MOBILE VALUE-ADDED SERVICES MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VO THI THUY KHA ANTECEDENTS OF CUSTOMER’S EVALUATION ON SERVICE VALUE TOWARDS USING MOBILE VALUE-ADDED SERVICES ID: 22130033 MASTER OF BUSINESS (Honours) SUPERVISOR: DR PHAM NGOC THUY Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENTS Firstly, I would like to express my sincere gratitude to Dr Pham Ngoc Thuy, my Supervisor, who has given me great guidance, inspiration and especially her motivation, thanks for her valuable advice, suggestions and resources that helping me in accomplishing this study Secondly, I would like to express my sincere thanks to all professors, tutors and officers of MBus Program for valuable lectures, academy knowledge and your experiences transfer throughout the period of courses at International School of Business I want to express my special thanks to all my colleagues, friends in telecom industry for your advice, cooperation and supports during the pilot and official survey Without your support, I could not successfully complete my thesis Ho Chi Minh City, Vietnam, th 30 Sep, 2014 Vo Thi Thuy Kha ABSTRACT In recent years, the Vietnam telecommunications and information technology has a growth with a number of important and new achievements And mobile telecom sector has grown larger and stronger Besides, there is a strict competition among enterprises in seizing mobile phone market shares And each enterprise has a strict competition among kinds of services in which mobile service has highest revenue The core services of mobile providers are the same Therefore, mobile telecom operators are looking at “Mobile Value Added Services” (M-VAS) as the next wave of growth to create the wake of changing markets, and most of revenues are expected to flow from VAS in the near future This fact has encouraged the author to conduct the research and assess the impact level of customer perceived value on customer loyalty when using mobile value added services in Vietnam, is done through qualitative and quantitative methods The survey has been distributed to 210 customers There were 184 valid responses out of 191 responses received The Cronbach's Alpha model has been invoked in order to test the reliability of collected data The factor analysis, multiple regression have been used for determining the key factors that affect to customer perceived value, customer loyalty Test results obtained show that three hypothesizes are supported, a hypothesis is not supported and a hypothesis is not tested because of some unbalanced groups of gender and age limitations in samples Based on the findings, suggestions and managerial implications will be provided in order to improve the quality of using mobile value-added services to achieve the higher level of customer perceived value and customer loyalty and provide managers with a basis for options to develop new services appropriate to objectives and strategic Due to limited time and resource, the scope of study is delineated to customers who are living in Ho Chi Minh city for research Key words: Perceived Value, Perceived Usefulness, Corporation Image Table of Contents ACKNOWLEDGEMENT ABSTRACT CHAPTER – INTRODUCTION 1.1RESEARCH BACKGROUND 1.2RESEARCH OBJECTIVES 1.3RESEARCH SCOPE 1.4RESEARCH METHOD 1.5THESIS STRUCTURE CHAPTER – LITERATURE REVIEW 2.1 CHAPTER INTRODUCTION 2.2 INTRODUCTION ABOUT MOBILE VALUE-ADDED SERVICE 2.3 LITERATURE REVIEW 2.3.1 Service Reliability 2.3.2 Perceived Usefulness of 2.3.3 Corporation Image 2.3.4 Customer Perceived Valu 2.3.5 Customer Loyalty 2.3.6 Relationship between Se 2.3.7 Relationship between Pe 2.3.8 Relationship between Co 2.3.9 Relationship between Cu 2.3.10 Moderating Effects of G 2.4 RESEARCH MODEL 2.5 SUMMARY CHAPTER – RESEARCH METHODOLOGY 3.1 INTRODUCTION 3.2 RESEARCH PROCESS 3.3 RESEARCH DESIGN 3.4 PRELIMINARY SURVEY 3.5 MEASUREMENT SCALES 3.5.1 Service Reliability 3.5.2 Perceived Usefulness of Service 3.5.3 Corporation Image 3.5.4 Customer Perceived Value 3.5.5 Customer Loyalty 3.6 QUESTIONNAIRE DESIGN 3.7 SAMPLING METHOD 3.8 MAIN SURVEY AND DATA COLLECTION 3.9 DATA ANALYSIS METHODS 3.9.1 Exploratory Factor Analysis (EFA) 3.9.2 Reliability Analysis 3.9.3 Multi-linear regression analysis 3.10 SUMMARY CHAPTER – DATA ANALYSIS 4.1INTRODUCTION 4.2DESCRIPTIVE DATA ANALYSIS 4.2.1 Table statistics form 4.2.2 Descriptive analysis of the va 4.3 MEASUREMENT SCALE ASSESSMENT 4.3.1 Reliability Analysis - by Cron 4.3.2 Exploratory Factor Analysis 4.3.3 Correlation 4.4 HYPOTHESES TESTING 4.4.1 Assumption of Multiple Regr 4.4.2 Evaluate and test the relevanc 4.4.3 Testing Hypotheses 4.5 DISCUSSIONS 4.6 SUMMARY CHAPTER – CONCLUSIONS AND IMPLICATIONS 5.1 MAIN FINDINGS 5.2 MANAGERIAL IMPLICATIONS 5.3 MANAGERIAL CONTRIBUTIONS 5.4 LIMITATIONS REFERENCES APPENDICES APPENDIX APPENDIX APPENDIX APPENDIX APPENDIX APPENDIX 6- MULTIPLE REGRESSIONS RESULTS List of Tables Table 4-1: Descriptive Statistics of Sample 30 Table 4-2: Reliability analysis results 33 Table 4-3: Second EFA analysis results for all variables 36 Table 4-4: New Factors 37 Table 4-5: Describe the correlation among variable 39 Table 4-6: Multiple Regressions results of model 1, 42 Table 4-7: Hypotheses Testing Results 43 Table 4-8 : Summary of hypothesis testing result 45 Table 7-1:The First Exploratory Factor Analysis 64 Table 7-2The Second Exploratory Factor Analysis 65 Table 7-3: Reliability test for all variables 67 Table 7-4: Reliability Test for Perceived Usefulness of Service and Corporation Image (after the First Exploratory Factor Analysis) 68 List of Figures Figure 1- Research process Figure 2- Proposed Research Model 14 ABBREVIATIONS M-VAS: Mobile Value Added Service ANOVA: Analysis Of Variance EFA: Explored Factor Analysis KMO: Kaiser-Meyer-Olkin SPSS: Statistical Package for Social Science CHAPTER – INTRODUCTION This chapter introduces the context of the study, including a short introduction of telecommunications and information technology industry in Viet Nam, the research problem, and the research objectives as well as the rationale of the research, the scope of research 1.1 RESEARCH BACKGROUND In recent years, the telecommunications and information technology is growing fast and strongly Specially, in Vietnam, it has a growth with a number of important and new achievements This is an important point for Vietnam economy affected by the economic recession Internet and Telecommunications network infrastructure of Vietnam has been invested to develop strongly and continuously And mobile telecom sector has grown larger and stronger, as an inevitable result of the advantages of infrastructure Although the development of the telephone subscribers was saturated, the numbers of mobile and Internet subscribers continued to grow at a rate of 3,42% and 2.46%, respectively compared to those in 2011 (WhiteBook, 2013).The Vietnamese mobile market is one of the fast growing markets with 131.67 million mobile phone users by 2012 (WhiteBook, 2013), and the overall growth rate in number of mobile phones subscribers per 100 inhabitants also rose from 86.85% in 2008 to 148.33% in 2012 (WhiteBook, 2013) (rose over 70%) Furthermore, there is a strict competition among enterprises in seizing mobile phone market shares, with market shares (subscribers) of 2G and 3G mobile phone service providers: Viettel (44.05%); MobiFone (21.40%); VinaPhone (19.88%); Vietnamobile (10.74%); GMobile (3.93%); SFone (0.01%) (WhiteBook, 2013) Besides of the scope of this competition, each enterprise has a strict competition among kinds of services in which mobile service has highest revenue, accounted for 6.47 billion USD (76.43%) of total revenue of Vietnam telecommunications services (WhiteBook, 2013) This is the main reason helping telecom market growth The core services of mobile providers are the same Therefore, telecom operators are looking at “Mobile Value Added Services” (MVAS) as the next wave of growth to create the wake of changing markets, and most 62 APPENDIX - DESCRIPTIVE STATISTICS OF ITEMS Descriptive Statistics SEREL01 SEREL02 SEREL03 SEREL04 PEUFL05 PEUFL06 PEUFL07 PEUFL08 PEUFL09 PEUFL10 CORIM11 CORIM12 CORIM13 CORIM14 CORIM15 PEVAL16 PEVAL17 PEVAL18 PEVAL19 CUSLY20 CUSLY21 CUSLY22 CUSLY23 CUSLY24 ValidN (listwise) 63 APPENDIX - EFA ANALYSIS RESULTS Table 7-1:The First Exploratory Factor Analysis Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Factor 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Pattern Matrixa PEUFL10 PEUFL06 PEUFL05 PEUFL08 PEUFL09 CORIM11 PEVAL18 PEVAL16 PEVAL17 PEVAL19 64 CUSLY21 CUSLY22 CUSLY20 CUSLY24 CUSLY23 SEREL03 SEREL01 SEREL02 SEREL04 CORIM15 CORIM13 CORIM12 CORIM14 Table 7-2The Second Exploratory Factor Analysis Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Factor 10 11 12 13 14 15 16 17 18 19 20 65 Factor Correlation Matrix Factor 66 APPENDIX - RELIABILITY ANALYSIS RESULTS Table 7-3: Reliability test for all variables Item-Total Statistics Service Reliability Cronbach's Alpha: 0.852 SEREL01 SEREL02 SEREL03 SEREL04 Perceived Usefulness of Service Cronbach's Alpha: 844 PEUFL05 PEUFL06 PEUFL07 PEUFL08 PEUFL09 PEUFL10 Corporation Image Cronbach's Alpha: 862 CORIM11 CORIM12 CORIM13 CORIM14 CORIM15 Customer Perceived Value Cronbach's Alpha: 907 PEVAL16 PEVAL17 PEVAL18 PEVAL19 Customer Loyalty Cronbach's Alpha: 876 CUSLY20 CUSLY21 CUSLY22 CUSLY23 CUSLY24 67 Table 7-4: Reliability Test for Perceived Usefulness of Service and Corporation Image (after the First Exploratory Factor Analysis) Item-Total Statistics Perceived Usefulness of Service Cronbach's Alpha: 879 PEUFL05 PEUFL06 PEUFL08 PEUFL10 Corporation Image Cronbach's Alpha: 846 CORIM12 CORIM13 CORIM15 68 APPENDIX 6- MULTIPLE REGRESSIONS RESULTS Dependent Variable: PerceivedValue CollinearityDiagnosticsa Model Dimension 69 70 Dependent Variable: CustomerLoyalty CollinearityDiagnosticsa Model Dimension a Dependent Variable: CustomerLoyalty 71 72 ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VO THI THUY KHA ANTECEDENTS OF CUSTOMER’S EVALUATION ON SERVICE VALUE TOWARDS USING MOBILE VALUE- ADDED SERVICES. .. factors of customer‟s evaluation on service value towards using mobile value- added services to retain customer loyalty Because, they have a big impact on the customers? ?? usage orientation, and... mobile value- added services It included four questions: used value- added services on the mobile phones? Which value- added services that customers used and the most? and which mobile provider? -Part