Factors affecting customer loyalty in mobile communication services in ha noi viet nam

FACTORS AFFECTING CUSTOMER LOYALTY IN MOBILE COMMUNICATION SERVICES IN HANOI, VIETNAM _ A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State University, Lucban, Quezon, Philippines in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam _ In Partial Fulfillment of the Requirements for the Degree Doctor of Business Administration _ By NGO ANH CUONG (SMILE) December 2013 i APPROVAL SHEET The Dissertation of NGO ANH CUONG entitled FACTORS AFFECTING CUSTOMER LOYALTY IN MOBILE COMMUNICATION SERVICES IN HANOI, VIETNAM Submitted in Partial Fulfilment of the Requirements for the Degree DOCTOR OF BUSINESS ADMINISTRATION A program offered by Southern Luzon State University, Republic of the Philippines in collaboration with Thai Nguyen University, Socialist Republic of Vietnam has been approved by Oral Examination Committee MELCHOR MELO O PLACINO, PhD Expert CONRADO L ABRAHAM, PhD Expert JOANNA PAULA A ELLAGA, DBA Expert EDWIN P BERNAL, DBA External Panel CECILIA N GASCON, PhD Chairman Endorsed by: Recommended by: NELLY I MENDOZA, DBA Adviser APOLONIA A ESPINOSA, PhD Dean Accepted in Partial Fulfilment of the Requirements for the Degree Doctor of Business Administration _ Date WALBERTO A MACARAAN, EdD Vice President for Academic Affairs ii CERTIFICATE OF ORIGINALITY This is to certify that the research work / dissertation entitled “Factors affecting customer loyalty in mobile communication services in Hanoi, Vietnam”, orally defended/ presented under the DBA Program jointly offered by Southern Luzon State University of the Republic of the Philippines and Thai Nguyen University of the Socialist Republic of Vietnam, embodies the result of original and scholarly work carried out by the undersigned This dissertation does not contain words or ideas taken from published sources or written works by other persons which have been accepted as basis for the award of any degree from other higher education institutions, except where proper referencing and acknowledgement were made Researcher/Candidate:Ngo AnhCuong (Smile) Date Orally Defended: October 10, 2013 iii ACKNOWLEDGMENT Iwould liketo express ourmost sincere thankstothe Management Board ofthe SouthernLuzonState University, Thai Nguyen University; teachers of theschoolhavehelped mefacilitatethe learning processthroughout Iwould like to myenthusiasticteacher expresssinceregratitude to Dr whohasdedicatedguidance, Nelly Mendoza, encouragement, timeandhas shared knowledgefor meduringthis research I also would like to thank Dr Joanna Paula Ellaga who has insightful suggestion for my dissertation IsincerelythanktheBoard of theUniversityofLaborandSocial Affair (ULSA), colleaguesinULSA, classmates in DBA1 who enthusiastically facilitated,helped andsharedexperienceto helpcomplete the dissertation Finally, Iwould like to thank my best friends who have encouraged to complete mydissertation Ngo AnhCuong iv DEDICATION To My Family and Friends this piece of work is for you… NAC v TABLE OF CONTENTS PAGE TITLE PAGE ……………………………………………………………… i APPROVAL SHEET ……………………………………………………… ii CERTIFICATE OF ORIGINALITY ……………………………………… iii ACKNOWLEDGEMENT ………………………………………………… iv DEDICATION ……………………………………………………………… v TABLE OF CONTENTS ………………………………………………… vi LIST OF TABLES ………………………………………………………… viii LIST OF FIGURES ……………………………………………………… x ABBREVIATIONS ………………………………………………………… xi LIST OF APPENDICES ………………………………………………… xii ABSTRACT ………………………………………………………………… xiii CHAPTER I II III INTRODUCTION …………………………………………… Background of the Study ………………………………… Statement of the Problem ………………………………… Objectives of the Study …………………………………… Hypotheses of the Study …………………… …………… Significance of the Study ………………………………… Scope and Limitations of the Study ……………………… Definition of Terms ………………………………………… REVIEW OF LITERATURE ……………………………… 11 Conceptual Framework ………………………………….… 39 METHODOLOGY Locale of the Study ………………………………………… 41 Research Design …………………………………………… 41 Determination of Sample Size …………………………… 43 Sampling Design and Techniques ……………………… 43 Research Instrument ……………………………………… 44 vi IV V Data Gathering Procedure ………………………………… 51 Data Processing Method ……….………………………… 51 Statistical Treatment ……………………… …….…… 51 RESULTS AND DISCUSSIONS ………………………… 54 4.1 Respondent’s Profile ………………………………… 54 4.2 Preliminary Analysis of the Component Variables … 56 4.3 Hypothesis Test ……………………………………… 60 4.4 Factors Affecting Customer Loyalty ………………… 66 SUMMARY, CONCLUSION AND RECOMMENDATION Summary…………….……………………………………… 86 Conclusions ………………………………………………… 89 Recommendations ………………………………………… 91 REFERENCES ……………………… ………………………………… 98 APPENDICES …………………………………………………………… 101 CURRICULUM VITAE …………………………………………………… 189 vii LIST OF TABLES TABLE 3.1 PAGE Factors Affecting Customer Communication Services Loyalty in Mobile 42 3.2 The Distributive Sample by Service Provider 44 3.3 Cronbach Alpha of Component Services Quality 46 3.4 Cronbach’s Alpha of the Component Switching Barriers 50 4.1 The Distributive Sample by the Gender and Age 54 4.2 The Distributive Sample by the Gender and the Market Share 55 The Distributive Sample by Services Type and the Market Share of Service Providers 55 The Summary of the Distributive Sample by Gender, Age and Type of Service Providers 56 4.5 How to Calculate the Average Value of the Variable 57 4.6 The Mean Value of Service Quality 59 4.7 The Mean Value of Switching Barrier 60 4.8 Correlation Coefficients of Variables 63 4.9 Correlation Coefficients of Switching Barrier and Customer Loyalty Variables 66 4.10 Relationship Between Gender with Service Providers 67 4.11 Relationship Between Education of Subscribers with Selection Service Providers 69 Relationship Between Selections of Service Provider with Occupation of the Subscribers 70 Relationship Between Selection of Service Provider With Per Average Income of Subscribers 71 Relationship between Value - Add Service with Gender of Subscribers 72 Relationship between “Adapting Cost” with Gender of Subscribers 73 4.3 4.4 4.12 4.13 4.14 4.15 viii TABLE 4.16 4.17 4.18 4.19 PAGE Relationship Between Calling Quality of Service Providers with Per Average Income of Subscribers 76 Relationship Between the Adapting Cost with Subscriber’s Ages 77 Relationship Between Assessment About “The Supplier Has Service Packages With Different Charge to Suitable Customer Demands” With Education Level of Subscribers 79 Model Summary 81 ix LIST OF FIGURES FIGURE PAGE The Market Share of Mobile Subscribers in Hanoi, 2011 and 2012 15 Proposed Integrated Model of Service Loyalty 31 Switching Barrier Model of Customer Loyalty 32 Customer Loyalty about Mobile Communication Service in American 36 The Model of Impacting Satisfaction and Switching Barrier to Customer Loyalty the Mobile Communication Service in Korea 37 The Proposed Model for Mobile Communication Service in Hanoi 40 x ... the mobile subscribers to mobile communication services in Hanoi, Vietnam The main tool is a questionnaire used to gather information on customer loyalty for mobile service providers in Hanoi Since... motivational factors to maintain customer loyalty as well as an essential element for business and increasing market share Currently, Hanoi is one of the cities in Vietnam that has a great number of mobile. .. entitled FACTORS AFFECTING CUSTOMER LOYALTY IN MOBILE COMMUNICATION SERVICES IN HANOI, VIETNAM Submitted in Partial Fulfilment of the Requirements for the Degree DOCTOR OF BUSINESS ADMINISTRATION