Shu-Te University College of Management Graduate School of Business Administration

Master

Factors Effecting Customers Loyalty in Vietnam Mobile phone Market

Nguyen Danh Nguyen

La Manh Dai

Shyh- Hwang Lee

Shu-Te University Graduate School of Business Administration Thesis

May, 2012

Factors Effecting Customers Loyalty in Vietnam Mobile phone Market

La Manh Dai

May, 2012

Adviser:

Student:

Factors Effecting Customers Loyalty in Vietnam Mobile phone Market

Student: La Manh Dai Advisor: Dr. Shyh - Hwang Lee Co-advisor: Dr. Nguyen Danh Nguyen

A Thesis Submitted to the Graduate School of Business Administration College of Management Shu-TeUniversity In Partial Fulfillment of the Requirements For the Degree of Master of Business Administration

May, 2012


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This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Administration, Shu-Te University, in summer, 2012. Factors Effecting Customers Loyalty in Vietnam Mobile phone Market Thesis Topic Dr. Shyh - Hwang Lee Adviser Dr. Nguyen Danh Nguyen Co-Adviser This is to grant the full text thesis (with abstract) stated above, will be authorized non-exclusively and free of charge to National Central Library and Shu-Te University Library to preserve, and copy in form of microfiche, compact disc or other digital forms, without the limit of region or time. It is also authorized to upload the digitized form of thesis stated above to readers for online indexing, browsing or downloading and print base on personal non-profit purposes of usage. This thesis is being used to apply patent (application number: ), so please make it public or upload into Internet 2 years later (after m/y/d). When can this thesis full text be made public or upload Immediately 3 After 3 years 1 After 1 year 4 After 4 years

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 Graduate Student of Shu-Te University Qualification Form of Master Degree Factors Effecting Customers Loyalty in Vietnam Mobile phone Market Student Name: La Manh Dai Thesis Title: Factors Effecting Customers Loyalty in Vietnam Mobile phone Market This is to certify that the thesis submitted by the student named above in summer, 2012. It is qualified and approved by the Thesis Examination Committee. Dr.Chin Yuan Chang Chair, Thesis Committee Dr Shu Cheng Lee Committee Member Dr Jau Shyong Wang Committee Member Dr Nguyen Ngoc Dien Committee Member Dr. Shyh- Hwang Lee Adviser Dr. Nguyen Danh Nguyen Co-Adviser 2012Year11MonthDay

Graduate School of Management Business Administrator, Shu-Te University Factors Effecting Customers Loyalty in Vietnam Mobile phone Market.
Student: La Manh Dai Advisor: Shyh- Hwang Lee Co-advisor: Dr. Nguyen Danh Nguyen

ABSTRACT
In competitive environment today, the customer is one of the most important assets of the enterprise. Philip Kotler, a leading marketing expert in the world said that: "There are many factors impact to the success of a business such as a great business strategy, dedicated staff, information systems perfect ... However, all successful companies today, whether at any level, also there is a common thing that they care very much about the client and attaches great importance to the satisfaction of customers". The customer satisfaction also means that customers tend to come back to use the company's products or services in the future. Maybe even they will recommend their relatives, their friends to purchase product or services of the company in the future.

In contrast, customer not satisfy also means customers will be less likely to return to purchase your product or services of the company in the future, they may be diverted to purchase product or services of competitors. Therefore, the study of customer satisfaction is essential and significant both of practical as well as academically. However, customer satisfaction is always changing and is affected by many factors. This thesis has no ambition to study all factors affecting customer satisfaction, but only focusing on a few factors that affect customer satisfaction. Moreover, the research object of this thesis is limited to motorcycles buyers. This thesis will conduct to survey based on the questionnaire. The questionnaire will be sent to leaders and staffs working in some enterprises. Data collected will be analyzed using the SPSS 17.0 through by research methods such as: Descriptive analysis, factors analysis, reliability analysis and regression analysis in order to evaluate factors impact customer's satisfaction. Keywords: Customer Satisfaction, Perceived Value, Expected Quality

ACKNOWLEDGEMENT
First, I would like to express my deeply and sincerely gratitude to my advisor, Dr. Shyh- Hwang Lee, Department of Information Management, Institute of

Informatics Graduate School of Business Administration, Shu-Te University and Dr. Nguyen Danh Nguyen. His wide knowledge and his logical way of thinking have been great value for me. His understanding, encourage and personal guidance have provide a good basic for the present thesis. Next, during this work I have received many helps from my friends. And many thanks to a numbers of respondents who helped me to filled in the research surveys that bring to me the result of this study. Finally, I owed my loving thanks to all members of my family who help me, encourage me during my studying time. They always support me; make me feel full of energy to do best for my study.

Table of Contents
ABSTRACT...............................................................................................xiv ACKNOWLEDGEMENT.............................................................................i Table of Contents..........................................................................................ii List of Tables................................................................................................iii Chapter 1: Introduction.................................................................................6

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List of Tables
Table 1: The Report of GFKVietnam, 2005..................................................6 Table 2: Perceived Value Measurement......................................................32 Table 3: Customer Satisfaction Measurement.............................................33 Table 4: Customer Expectation Measurement.............................................33 Table 5: Perceived Quality Measurement....................................................34 Table 6: Customer Loyalty Measurement...................................................35 Table 7: Customer Complaint Measurement...............................................36 Table 8: Descriptive analysis.......................................................................40 Table 9: Factor Analysis..............................................................................42 Table 10: Reliability Analysis.....................................................................44 Table 11: Linear Regression Analysis for Customer Loyalty......................45 Table 12: Linear Regression Analysis for Customer Satisfaction...............46 Table 13: Linear Regression Analysis for Perceived Value.........................48 Table 14: Linear Regression Analysis for Perceived Quality......................49 Table 15: Research Result...........................................................................51

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List of Figures
Figure 1: The Report of GFKVietnam, 2005.................................................7 Figure 2: American Customer Satisfaction Index ACSI..........................18 Figure 3: European Customer Satisfaction Index ECSI...........................19 Figure 4: Factors affect on Customer Satisfaction.....................................24 Figure 5: Research Model...........................................................................25 Figure 6: Result Model................................................................................50

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Chapter 1: Introduction
1.1 Background Prior 2004, the mobile market in Vietnam is still limited. The main reason is the mobile phone products are very expensive for the majority people in Vietnam, so that they can not buy or use mobile phone, Moreover, the cost of telecommunication services also expensive for people access to mobile phones. 2006 marked Vietnam the official became the 150th member of WTO. This event means of integration with the global economy provides opportunities for trading with countries around the world. The event was opened to foreign enterprises have opportunities invest to Vietnam, including mainly high-tech products such as mobile phone. The prices of mobile products have been easily accepted than with Vietnam people finance. If before 2004, mobile phone market in Vietnam has only a few vendors such as: Nokia, Samsung, Motorolar, Erickson (The Report of GFKVietnam, 2005).

Table 1: The Report of GFKVietnam, 2005 Brand Nokia Samsung Motorolar 2004 51% 35% 1.8% 2005 50% 30% 10.8% 2006 50% 19% 20%

Others

12.2%

9.2%

11%

Figure 1: The Report of GFKVietnam, 2005

Currently, the number of mobile vendors has appeared more and more. Especially with the emergence of the Vietnamese brand as Qmobi, FPTmobi, HiPT Mobile, Bluefone .... according to the report of GFK, Vietnam has up to 20 mobile vendors in Vietnam market, even large company such as Iphone, Nokia ...

1.2 Research Motivation We can see that, never the mobile phone market become warm is that. Vietnam enterprises are gradually penetrating the mobile market. However, mobile phone market is still very new for Vietnam enterprises. Finding a position in the mobile phone market in Vietnam is very difficult. So, if Vietnam business wants stand on the Vietnam market requires they must understand their customers and must maintain the loyalty of customers. According to Sam Walton who found the Wal-Mart said that: There is only a boss that's customers, they can waste away from everyone in the company from boss to employees simply by spending money on another (The Cicero Group, 2007) Philip Kotler, a leading marketing expert in the world said that: "There are many factors impact to the success of a business such as a great business strategy, dedicated staff, information systems perfect ... However, all successful companies today, whether at any level, also there is a common thing that they care very much about the client and attaches great importance to the satisfaction of client resistance. Moreover, there are a little of articles research on customer's satisfaction, specific on the Vietnam mobile phone market. A research on the factors affect customer's satisfaction on the mobile phone market is very importance for any Vietnam enterprises who want to give business strategies better. On other hand, this research has a implication to build the model of factors affect customer's satisfaction in the mobile

phone field. This is the reason why the author decided selected topic "Study factors affecting customer loyalty in Mobile Phone Vietnam Market"

1.3 Research purpose This thesis, will conduct research to answer following research questions: What factors impact to customer loyalty in Vietnam mobile phones market? How these factors impact to customer loyalty in Vietnam mobile phones?

1.4 Research limited Because of limited time as well as knowledge of author. This thesis has no ambition to present all the factors that impact to customer loyalty that focuses on some of factors impact to customers loyalty. On the other hand, for more convenient to researching, this thesis will be limited to research in mobile phones field in some provinces in northern Vietnam such as Hanoi, Nam Dinh, Ninh Binh, Hai Phong ... 1.5 Research Procedure Structure of the thesis consists of 5 chapters. Chapter 1 is a picture of the Vietnam mobile market and development over the years. The research motivation and research purposes also are presented in this section. The concepts, such as customer loyalty, satisfaction and other concepts will be clarified in chapter two. Chapter three

will provide the research model and design questionnaire. Questionnaire was designed in Chapter 3 will be used to collect data. After data collected and carefully selected will be analyzed based throught by four methods: descriptive analysis, validity analysis reliability analysis and regression analysis. Finally, chapter five will summarize the results obtained from the analysis as well as the signification and limitations of this thesis.

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Chapter 2: Literature Review

Firstly, this chapter will provide the concept of customer loyalty and the importance of loyalty. An important factor affect customer's loyalty is satisfaction that also will be addressed. Following some of model theory is the concepts of the factors will be studied in this thesis.

2.1 The concept of customers loyalty Customers loyalty has been recognized as a valuable asset to compete in the market (Srivasta, Shervani, & Favey, 2000). Investment management in customer loyalty is important and necessary because they are not bound by a contract (Shapiro & Vivian, 2000). The concept of customer loyalty is using commonly in market during the last decade (Lewis, 1997). The loyalty customer gives its members the bonus and the added value, which makes the program more close relatives with more customers (Liebermann, 1999). This led to increased competition to attract more customers among companies in the industry. As a result, customers will be committed to various programs customer loyalty of many companies in the same business area (Passingham, 1998). For

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example, customers often have more loyalty with supermarkets. The trend of companies are rolling out the program of loyalty is seen as a strategy to protect market share (Dawkins & Reichheld, 1990). Customer loyalty is one topics interesting studied in field of marketing. In particular, the content is focused on customers willing to establish and maintain relationships with services and products providers based on their satisfaction (Hirschman, 1970, Day, 1977, Oliver , 1980, Swan, Anderson et al, 1990,). Oliver (1997) defined customers loyalty: is deeply committed to the acquisition or return to use a certain products or services in the future, lead to repeating purchase the same brand, although it may be affected by the situation and the efforts of competitors in the market to lead to behavior change. Retention a new customer is very difficult and pay more expensive, so trying to maintain existing customers by creating loyalty and value added to customers (Kim et al. 2004, p.146) One other important issue for the success of a company is able to maintain existing customers and make them more loyal to their brands. Loyalty shown by buying more, with higher prices, and create a reputation for the company through positive word of mouth (Ganesh et al., 2000, p.65). Reichheld and Sasser (1990) and Reichheld (1996) studied the long-term value of customers and the value for building customers loyalty by listening customers

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complaints, anticipating the behavior change, and find out the reason why customers switch to competitors. Remaining customers loyal if they get the value from vendors. Maintaining customers is to continue the activities related to customers (Cannie, 1994, Naumann, 1994, Heskett et al., 1997, Burgeson, 1988, Clemmet, 1998). Both of companies and consumers would have benefit from the impairment charge customers. Not only does the company need to build and protect customer loyalty, actually, customers also have benefit from long-term relationship (Zeithaml et al, 1996). Many studies have concluded that the company's revenue is the foundation of loyalty (Everitt & Der, 1996) and the relationship between loyalty and profits (Everitt & Der, 1996). Dawkins and Reichheld (1990) who firstly spokend about the impact of customer loyalty, customer retention will lead to more customer value is now higher. Management of customer loyalty is still continuing research discussions with several highlights (Reichheld and Sasser, 1990; Reichheld and Kenny, 1990; Reichehld, 1993, 1994, 1996). They have demonstrated that customer loyalty leads to higher profits and the company should making programs related to maintaining the current customer protection. 2.2 The concepts of Customers Satisfaction There are many different definitions about customers satisfaction such as:

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Kotler (2003) suggest that satisfaction: is the satisfaction or frustration of customers when they compare what they get from products or services with what they expected. Yi et al (2003) said customers satisfaction is the common sense of the output, evaluation and implementation of activities related to the consumption of a product or service. Also Hunt (1991) defined satisfaction is the trust of consumers that they serve an excellent, value for money that they paid. The meet will create high loyalty and positive word of mouth for the company. Customers satisfaction in generally, have a positive impact on loyalty in all sectors, including telecommunications services (Fornell 1992; Everitt et al, 1996). According to the rules correspond-profit chain. improved parts and service products will increase customer satisfaction, increased satisfaction leads to loyalty and generate higher profits more and more. There for, the value of satisfaction is an important factor in the mobile phone industry. In theory and practice, companies provide mobile products should focus on customers satisfaction, as a result of customers satisfaction is customer loyalty, and companies would have been beneficial insects profit from the increased rate of acquisition, the possibility of a potential acquisition, the willing to pay, the introduction of positive behavior and less likely to change (Bruhn and Grund, 2000).

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Research on customers satisfaction can provide support as follows: Determine level of satisfaction and management know whats the reasons that satisfied or dissatisfied Point out how to management customers satisfaction with focuses on main competitors Figure out how to efforts to develop satisfaction Find out the reason why customers are leaving and what to do to them in the design customer loyalty program; In generally, customers satisfaction and customers loyalty is pretty strong relationship. Customer satisfaction, reduce customer change and enhance the customer's stay, so it's very important contribution to customer loyalty (Fornell, 1992; Reichheld, 1996). Moreover, while under the influence of market structure, types of customers and how to solve different problems of each individual client, the connection between satisfaction and loyalty is not always also clear, although it played a positive relationship (Fornell, 1992). Satisfaction loyalty explained as the intention to act (such as acts of acquisition or recommend to others). For example, Bolton et al (1993) found positive impact of satisfaction on the strength of relationships with customers using the mobile network, and pointed out the positive impact of the agreement correspond to the use of mobile network service provider. They also found large differences in the relationship satisfaction-loyalty by customer characteristics.

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Administrators need to understand the relationship between satisfaction and time to maintain relationships customers with vendors to identify the specific actions that can enhance customers retention and profitability long term.

2.3 Customers Satisfaction Index

The customers satisfaction becomes an important asset for businesses and organizations in an effort to improve the quality of service, to maintain loyalty, improve the competitiveness of enterprises. In 1989, the index (barometer) measuring the level of satisfaction was first released in Sweden (Swedish Customer Satisfaction barometer SCSB) to establish indicators of customer satisfaction for the purchase and consumption of products - services domestic service. In later years, this index was developed and widely applied in developed countries like the U.S. (ACSI Fornell, C, 1992), (Norway - NCSI Fornell, C,1992), Denmark - DCSI and other EU countries - ECSI (1998) (Martensen. A., Gronholdt, L. and Kristensen, K, 2000). The index can be done on the national level (companies, branches will correspond to how their customers) or at the sector angle (compare the satisfaction of the enterprise in within a sector) and comparisons between different times (to see the change). Since then, the company can know the position, the evaluation of customers for businesses to plan objectives and strategy

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2.3.1 American Customer Satisfaction Index ACSI The Index of customers satisfaction include factors, each factor is composed of several specific factors characteristics of the product or service. Customer satisfaction is defined as a comprehensive review of the using a service or after sold of the company and this is the core of the CSI model. Around the turn of this system of causal relationships (cause and effect) from the initial variables as expectations of customers, image businesses, products and perceived quality and perceived value of products or services attached to the outcome variables of satisfaction, such as loyalty or complaints of customers.

Expectation

Complaint

Perceived Value Perceived Quality

Customer Satisfaction

Loyalty

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Figure 2: American Customer Satisfaction Index ACSI In the model of American satisfaction index (ACSI), perceived value is influenced by perceived quality and expectations of customers. Meanwhile, the expectations of customers have a direct impact on the perceived quality. In fact, the higher expectations then may be the standard quality and perceived by customers about product are higher. Therefore, the requirements on product quality and service provided to customers must ensure and be satisfied on the basis of their satisfaction. Customer satisfaction is made on the basis of perceived quality, expectations and perceived value, if the quality and perceived value higher than the expectations will create loyalty with customers, otherwise, there is a complaint or complaints about the products they consumer (Figure 1).

Image
2.3.2 European Customer Satisfaction Index ECSI

Expectations

Perceive d Value Loyally

Perceived Quality Products Perceived Quality

18 Custome r Satisfact ion

Figure 3: European Customer Satisfaction Index ECSI The Models Europe satisfaction index (ECSI) is a certain difference compared to the ACSI, the image of the product, the brand has a direct impact to the expectations of customers. Meanwhile, customer satisfaction is influenced by four factors image,

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perceived value, perceived quality perceived Quality Service. Normally, only the ACSI often applied to fields is usually applied ECSI index measurement products and sectors (Figure 2). Clearly, the strength of this approach is that it shifts the immediate consumer experience, enabling the study of causal relationships between the components of satisfaction and loyalty customers. Therefore, the first goal of the CSI approach is structured to explain the loyalty of customers for a particular product or a business, a country generally through customer satisfaction index to influence directly or indirectly by the image, expectations, perceived quality (product or service) and perceived value to products and services. ECSI model with more factors such as: Perceived Quality, Image will help deply research on factors affecting to customers satisfaction and loyalty about products rather than services. Therefore, this thesis will use the ECSI model as a theory model framework for the study of factors affecting customer loyalty in the mobile phone industrial. 2.4 Factors impacts to customers satisfactions 2.4.1 Complaint: Previous studies have shown that, when customers receive products or services from suppliers, they can be satisfied with products and services, but also may not be satisfied with the product or of service providers. When customers are not satisfied with

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the product or service they may respond to the supplier. In any case, the customer's feedback is very important. This feedback can be in many different forms such as oral or in writing (Heung et al., 2003). One of the most important types of customer's feedback is the customer's complaint (Sanes, 1993). Customer's complaints are an expression of dissatisfaction of customer about a product or service of an organization or handling complaint process of the organization is not clear and satisfactory. (ISO 10002:2004, - Quality management systems - customer satisfaction). According to the study of (Tor Wallin Andreassen, 2000), the complaints divided into two forms. First, when customers are not satisfied with the product or service, customers will stop using the products and services that have not any claim against the supplier. Second, customers will reflect their problems to the provider. In the first case, customers do not claim to the provider, it will not only affect the profits of the business for a long time, but also to influence other customer purchasing decisions and. In any form, customer's complaint means that the negative impact of customer loyalty (Tor Wallin Andreassen, 2000). The complaints reflect customer's dissatisfaction with the product, or service providers. Customer's complaint proves that they are not satisfied with products and services, and it is the sign for their leaving. Buyers tend to recommend their friends and people related about the products they are using. So, if they tell their good experience about product or service, which will help the company have more new customers and increase their market share and

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profitability. Conversely, if they tell their bad experience about the products or service, which is the cause for losing potential customers and therefore will lead to reduced income and profits. In addition, the complainant is not responding adequately tend to overstate the actual errors, which also occurs similar to those satisfied with the product. In fact, the negative comments powerful more than the positive words, so organizations need to avoid the failure on resolving customer's complaints. The customer's complaints are more concerned by many researchers, and it is an important part of business strategy (Fornell and Wernerfelt, 1988).

2.4.2 Expectations: In the first stage when a customer made their purchasing a product decisions, he will try to understand every aspect related to the product. In other words, he expects the performance of the product. This expectation is the customer's expectation for products The expectation present level of quality that customers expect to get, the parameters measuring the expectations associated with the parameters of the image and perceived quality of products and services. This is the result of previous experience in consumer or information through media channels for the product or service. In some sectors, may be this variable has no relation to perceived value, this result is also presented in the study by Martensen et al (2000). In fact, higher expectation, customer wants to purchase more, but expectation higher due to vendors possibility satisfy customer more difficult.

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The researchers also presented some degree of customer expectations (Parasuraman et al, 1991; Zeithaml et al, 1993). According to Parasuraman (1991), customer expectations have two levels: Desired and Adequate. Desired expectation presents the levels in which customers hope the product received, it defined as the degree that customer expects about effectiveness of product. On other hand, adequate expectation is the level lower of expectation, as the effectiveness of the products which customers can acceptable. 2.4.3 Perceived quality: There are two kinds of perceived quality: (1) perceived quality of products (tangible) is the evaluation of recent consumer products for customers' products and (2) perceived service quality (invisible) is assessing related services as services during and after the sale, supply conditions, delivery of the product .... Thus, both formed by the key attributes was crystallized in the products - services. In the mobile phone market, mobile phone is a visible product that customer can hold and see On other hand, mobile phone also is an invisible products such as the software built in the mobile phone, the operation system of mobile 2.4.4 Perceived value: Studies on the theory about, customer satisfaction depends on the perceived value of goods and services Martensen. A., Gronholdt, L. and Kristensen, K. (2000). Value is the level of review / comments on the product quality compared to the cost or terms of "value not only with money" customers consumer products. According to Kotler (2003),

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the value for customers is the difference between the total value that customers receive and the total cost that customers pay for a product / service area.

Expectation

Complaint

Perceived Value Perceived Quality

Customer Satisfaction

Loyalty

Figure 4: Factors affect on Customer Satisfaction

Chapter 3: Research Methodology

Chapter two has finished with providing some of importance concepts such as customer's loyalty and customer satisfaction and also provide concepts of factors affect

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customer's satisfaction and loyalty. In this chapter, going to develop the research model and develop the hypotheses, the questionnaires and research methods, which used to analysis collected data also provide in this chapter 3.1 Research Model

Expectation H2 H1 H4 H7
H6

Complaint

Perceived Value H3 H5

Customer Satisfaction H8

H9

Perceived Quality

Loyalty

Figure 5: Research Model 3.2 Hypotheses Previous studies have shown that, when customers receive products or services from suppliers, they can be satisfied with products and services, but also may not be satisfied with the product or of service providers. When customers are not satisfied with the product or service they may respond to the supplier. In any case, the customer's feedback is very important.

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Customer's complaints are an expression of dissatisfaction of customer about a product or service of an organization or handling complaint process of the organization is not clear and satisfactory. (ISO 10002:2004, - Quality management systems customer satisfaction). Buyers tend to recommend their friends and people related about the products they are using. So, if they tell their good experience about product or service, which will help the company have more new customers and increase their market share and profitability. Conversely, if they tell their bad experience about the products or service, which is the cause for losing potential customers and therefore will lead to reduced income and profits. In addition, the complainant is not responding adequately tend to overstate the actual errors, which also occurs similar to those satisfied with the product. In fact, the negative comments powerful more than the positive words, so organizations need to avoid the failure on resolving customer's complaints. The customer's complaints are more concerned by many researchers, and it is an important part of business strategy (Fornell and Wernerfelt, 1989). Customer's complaint means that the negative impact of customer loyalty (Tor

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Wallin Andreassen, 1999). The complaints reflect customer's dissatisfaction with the product, or service providers. Customer's complaint proves that they are not satisfied with products and services, and it is the sign for their leaving. From pervious researches of (Fornell and Wernerfelt, 1989), (Tor Wallin Andreassen, 1999). The hypotheses developed as below: H7 Customer's complaint has negative affect customer's satisfaction H8 Customer's complaint has negative affect customer Loyalty

In the first stage when a customer made their purchasing a product decisions, he will try to understand every aspect related to the product. In other words, he expects the performance of the product. This expectation is the customer's expectation for products The expectation present level of quality that customers expect to get, the parameters measuring the expectations associated with the parameters of the image and perceived quality of products and services. This is the result of previous experience in consumer or information through media channels for the product or service. In some sectors, may be this variable has no relation to perceived value, this result is also

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presented in the study by Martensen et al (2000). In fact, higher expectation, customer wants to purchase more, but expectation higher due to vendors possibility satisfy customer more difficult. The researchers also presented some degree of customer expectations (Parasuraman et al, 1991; Zeithaml et al, 1993). According to Parasuraman (1991), customer expectations have two levels: Desired and Adequate. Desired expectation presents the levels in which customers hope the product received, it defined as the degree that customer expects about effectiveness of product. On other hand, adequate expectation is the level lower of expectation, as the effectiveness of the products which customers can acceptable. Moreover, both of ECSI and ACSI showed the relationship between expectation and customer's satisfaction and customer's loyalty. From pervious researches of Martensen et al (2000), (Tor Wallin Andreassen, 1999) (Parasuraman et al, 1991; Zeithaml et al, 1993). The hypotheses developed as below: H3: Expectation has positive affect customer's satisfaction H2 Expectation has positive affect perceived value

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H1 Expectation has a positive affect perceive quality

Perceived quality is evaluation of consumers on overall superiority or excellence of a particular product (Zeithaml 1988). Perceived quality is evaluation of a particular product from "bad" to "good" based on specific criteria. There are two kinds of perceived quality: perceived quality of products (tangible) is the evaluation of recent consumer products for customers' products and perceived service quality (invisible) is assessing related services as services during and after the sale, supply conditions, delivery of the product (Zeithaml 1988). Thus, both formed by the key attributes was crystallized in the products - services. In the mobile phone market, mobile phone is a visible product that customer can hold and see On other hand, mobile phone also is an invisible products such as the software built in the mobile phone, the operation system of mobile The importance of perceived quality has a positive influence purchase intention of customers. Some scholars have showed that perceived quality has positive impact to purchase intention (Carman 1990; Boulding, Staelin & Zeithaml 1993, Parasuraman et al 1996), others reported report showed this influence only is indirect effect through

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customer's satisfaction (Cronin & Taylor in 1992; Sweeney, Soutar, & Johnson 1999) From pervious researches of Zeithaml 1988), (Carman, 1990; Boulding, Staelin & Zeithaml 1993, Parasuraman et al 1996), (Cronin & Taylor, 1992; Sweeney, Soutar, & Johnson 1999) and references from both of model ACSI and ECSI. The hypotheses developed as below: H4 Perceived quality has positive affect perceived value H5 Perceived quality has positive affect customer's satisfaction Studies on the theory about, customer satisfaction depends on the perceived value of goods and services Martensen. A., Gronholdt, L. and Kristensen, K. (2000). Value is the level of review / comments on the product quality compared to the cost or terms of "value not only with money" customers consumer products. According to Kotler (2003), the value for customers is the difference between the total value that customers receive and the total cost that customers pay for a product / service area. From pervious researches of Martensen. A., Gronholdt, L. and Kristensen, K. (2000), Kotler (2003) and from references both of model ACSI and ECSI. The hypotheses developed as below: H6 Perceived value has positive affect customer's satisfaction

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The customers satisfaction becomes an important asset for businesses and organizations in an effort to improve the quality of service, to maintain loyalty, improve the competitiveness of enterprises (O'Loughin C. and Coenders, 2004). In 1989, the index (barometer) measuring the level of satisfaction was first released in Sweden (Swedish Customer Satisfaction barometer - SCSB) to establish indicators of customer satisfaction for the purchase and consumption of products - services domestic service. In later years, this index was developed and widely applied in developed countries like the U.S. (ACSI Fornell, C, 1992), (Norway - NCSI Fornell, C,1992), (Andreassen, T. W. and Lindestad,1998b), Denmark - DCSI and other EU countries - ECSI (1998) (Martensen. A., Gronholdt, L. and Kristensen, K, 2000) From pervious researches of (ACSI Fornell, C, 1992), (Norway - NCSI Fornell, C,1992), (Andreassen, T. W. and Lindestad,1998b), Denmark - DCSI and EU countries ECSI (1998) (Martensen. A., Gronholdt, L. and Kristensen, K, 2000). The hypotheses developed as below: H9 Customer's satisfaction has positive affect customer's loyalty

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3.3 Measurement activities 3.3.1 Perceived Value Based on the questionnaire was developed by (Christina OLoughlin, 2002 ); this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 2: Perceived Value Measurement

Variable Perceived Value

Content of Item Please rate the quality of products/services given the prices you pay? Please rate the prices of products and services given the quality?

3.3.2 Customer Satisfaction Based on the questionnaire was developed by Christina OLoughlin, 2002; this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As

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following: Table 3: Customer Satisfaction Measurement

Variable Customer's Satisfaction

Content of Item Overall how satisfied are you with products and services? How close your ideal postal mobiphone provider? Considering your expectations, to what extent has mobiphone fallen short of or exceeded your expectations?

3.3.3 Customer Expectation Based on the questionnaire was developed by Christina OLoughlin, 2002; this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 4: Customer Expectation Measurement

Variable Customer

Content of Item Please rate quality of products / services you expected

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Expectation

Please rate quality of products / services that you expected meet your need

3.3.4 Perceived Quality Based on the questionnaire was developed by Christina OLoughlin, 2002 this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 5: Perceived Quality Measurement

Variable Perceived Quality

Content of Item Please rate the overall quality of products and services Please rate the quality of products and services compared to the quality offered by similar companies Does the overall quality of products meet your

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quality requirements? Could the quality of the products and services be improved?

3.3.5 Customer Loyalty Based on the questionnaire was developed by Christina OLoughlin, 2002; this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 6: Customer Loyalty Measurement

Variable Customer loyatly

Content of Item would you want to change to other mobiphone provider if other provider reduce their prices? would you want to change to other mobiphone provider if other provider have new service as you want? would you change to other mobiphone provider if your

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advisor recommend you change 3.3.6 Customer's Complaints Based on the questionnaire was developed by Christina OLoughlin, 2002; this thesis has developed the questionnaire with five questions and scale of 5, in which "5" = Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As following: Table 7: Customer Complaint Measurement

Variable Customer Complaints

Content of Item How many times have you complained (either formally or informally) to staffs ? How well or poorly was your most recent complaint handled?

3.4 Sampling Method The purpose of this thesis airm to assess the influence of factors to the mobile phone customer's satisfaction and customer's loyalty. So the questionnaire was designed specifically targeting to mobiphone customer. After the questionnaire has been carefully

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designed, 450 questionnaires will be sent directly to the customer as the customer list of 65 Mobi store at Hanoi, Nam Dinh, Hai Phong Data after collected and selected carefully will be analyzed on SPSS 17.0 software based on four methods: descriptive analysis, reliability analysis, validity analysis and regression analysis to evaluation factors and test the hypothesis 3.5 Research Method 3.5.1 Descriptive Statistics After data collected will analysis by the first analysis method is descriptive analysis, the personal information such as gender, age, experience, .... The data will be analyzed by percentage, the distribution of age, gender, experience ... how related to hypothesis in this thesis. 3.5.2 Factors Analysis Factor analysis is often used in analysing data. Now, there are many social researcher use factor analysis to evaluate the relationship between factors together, data reduction, development scale, classification and testing of hypothesis (Rummel, 1970). When conducting factor analysis, a problem that the analysis should be considered

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when conducting the analysis: is determine model and number of factors used to analyze Ford et al (1986 ). First, researchers should determine the model before which is used to analysis. There are two methods commonly used to analyze factors including: common factors analysis and components analysis Ford et al (1986). The second problem is number of factors. (Kim & Mueller, 1978) poited that number of factors as a result of the analysis process and is determined based on the eighen value must be greater than one. However, Tucker et al (1969) offer a different perspective, which is the number of factors can be identified earlier, based on the purpose of the research study. Thus, based on previous studies, and the purpose of this study. I will conduct factor analysis by pre-determined number of factors. 3.5.3 Reliability analysis After data collected, it is difficult to ensure data collected are reliability or not, means that we can really trust the data collected on or not. To ensure data collected is reliable, we must analyze the reliability of data based on Cronbach's value. If

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Cronbach's greater than 0.7 mean that variable is accepted for its reliability, and Cronbach's in less than 0.35 mean that the reliability of the variables are very low and should be removed (Robinson, Shaver, and Wrightsman 1973). 3.5.4. Regression Analysis After the data is ensured validity and reliability, the last method to evaluate and test the hypothesis is regression analysis method. Regression analysis is a statistical method commonly used to analyze the correlation between two factors. Normally researchers look at the relationship cause - results of model. The inspection will be done with the help of SPSS software based on the coefficient as R2, adjusted R2, pvalue, beta ... to assess the hypothesis is supported or not and the extent of human influence this factor on how other factors. Theo Daniel Muijs who wrote the book "Doing quantitative research in education" recommended for the R square value of should be: <0.1: poor fit; 0.11-0.3: modest fit; 0.31-0.5: moderate fit;> 0.5: strong fit.

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Chapter 4: Data Analysis and Result

4.1 Descriptive analysis The detail description of samples or the respondents personal data, such as their gender, age, education ..and so on will be analyzed. Every construct of the data will be analyzed in percentage, frequency distribution in order to know the sample distribution.

Table 8: Descriptive analysis Variables Frequency Percentage (%) Age Under 18 years 19-20 years 21-22 years Over 22 years Gender Female Male Education Lower high school High school 30 90 46 2 52 116 22 50 17.9 53.6 27.4 1.2 31 69 13.1 29.8

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College Bachelor Higher Bachelor

55 27 14

32.7 16.1 8.3

4.2 Factor Analysis Tucker et al (1969) offer a different perspective, which is the number of factors can be identified earlier, based on the purpose of the research study. Hair et al. suggested that an item is significant if its factor loading is greater than 0.50. From the table show items is strongly validity. Thus, based on previous studied, and the purpose of this thesis. I will conduct factor analysis method by pre-determined number of factors. Table 9 shows the results of the VARIMAX rotation on the original 16 items constrained to six factors. We can see that, the loading value smallest is CUS1 (0.555), which is greater that 0.5, so that, all loading value of each questions are greater than 0.5 mean that, the data collected is validity.

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Table 9: Factor Analysis

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Perceived Quality lo1 lo2 lo3 cus1 cus2 cus3 com1 com2 PV1 PV2 EX1 EX2 PQ1 PQ2 PQ3 PQ4 .772 .781 .822 .855

Loyalty

Customer's Expectation Perceived Complaints Risk

Customer's Satisfaction

.855 .857 .882 .707 .649 .555 -.880 -.870 .863 .878 .900 .892

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

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4.3 Reliability Analysis Before analyzing the relationship between factors, it is important to ensure the reliability of the factors. In order to test reliability of the factors, and scale to ensure appropriate with the questionnaire. Reliability of a factor can be determined based on the value of AVE or conbach's values. This thesis will use the cronbach's value to measure reliability of factors including the Customer loyalty, Customer Satisfaction, Customer Complaint, Expectation Perceived value and Perceived quality. Cronbach's value greater than 0.7 should be accepted, if cronbach's values less than 0.5 need be removed: Table 10: Reliability Analysis Factors Customer Loyalty Customer Satisfaction Customer Complaint Expectation Perceived Value Perceived Quality Cronbachs 0.857 0.940 0.934 0.928 0.916 0.902

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From the table 8 show that, the cronbachs of each factors is very high. The value of conbachs for each factors are greater than 0.5. So, factors have level of reliability is very good. 4.4 Regression Analysis In this study, linear regression was adopted to examine the relationships between independent variables and dependent variables to test our research hypotheses. 4.4.1 Linear Regression Analysis for Customer Loyalty The results of linear regression analysis for customer's loyalty in the Table below: Table 11: Linear Regression Analysis for Customer Loyalty

Constructs Customer's Satisfaction Customer Complaint

St. coefficients 0.521***

t value 5.270

R2 0.158

Adj-R2 0.148

F value 15.527***

- 0.230*

- 2.331

Dependent variable: Customer's Loyalty ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table 10 had a good overall fit (15.527***, p =

45

0.000). And at significant level 0.05, Customer's Satisfaction (H8 and H9) have significant positive relationships with Mobile phone Customer Loyalty. But Customer Complaint has beta equal -0.230* mean that Customer complaint has a negative affect customer's satisfaction Therefore, we conclude that hypotheses H8 and H9 are supported. We also can see in the table that the adjusted R2 value for constructs, namely are Customer Satisfaction and Customer Complaint is 0.148, meaning that the explanation ability of the independent constructs is good for our dependent variable, Customer Loyalty. 4.4.2 Linear Regression Analysis for Customer Satisfaction The results of linear regression analysis for Mobile Phone Customer Satisfaction are shown in the Table below: Table 12: Linear Regression Analysis for Customer Satisfaction

Constructs Customer Complaint Perceived

St. coefficients -0.372***

t value -6.853

R2 0.682

Adj-R2 0.674

F value 87.355***

0.132*

2.354

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Value Expectation Perceived Quality 0.207*** 0.366*** 3.984 5.954

Dependent variable: Customer's Satisfaction ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table 10 had a good overall fit (F = 87.355***, p = 0.000). And at significant level 0.05, Perceived Value, Expectation and Perceived quality (H3, H5, and H6) have significant positive relationships with Customer Satisfaction. Besides, we can see that the construct namely is Customer Complaint has beta value equal -0.372 mean that Customer Complaint has a negative affect customer satisfaction, or the hypothesis H7 is supported. Therefore, we conclude that hypotheses H3, H5, H6 and H7 are supported. We also can see in the table that the adjusted R2 value for constructs, namely Expectation, perceived quality, perceived value and Customer Complaint. is 0.674, meaning that the explanation ability of the independent constructs is good for our dependent variable, customers satisfaction.

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4.4.3 Linear Regression Analysis for Perceived Value The results of linear regression analysis for Perceived Value as Table below:

Table 13: Linear Regression Analysis for Perceived Value

Constructs Expectation Perceived Quality

St. coefficients 0.251 *** 0.437 ***

t value 3.614 6.289

R2 0.349

Adj-R2 0.341

F value 44.206***

Dependent variable: Perceived Value ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table had a good overall fit (F = 44.206***p = 0.000). And at significant level 0.05, Expectation and Perceived quality (H2, H4) have significant positive relationships with Perceived value. Therefore, we conclude that hypotheses H2, H4 are supported. We also can see in the table that the adjusted R2 value for two constructs, Expectation and Perceived Quality is 0.341, meaning that the explanation ability of the independent constructs is good for our dependent variable,

48

Perceived value. 4.4.4 Linear Regression Analysis for Perceived Quality The results of linear regression analysis for perceived quality shown in the Table below: Table 14: Linear Regression Analysis for Perceived Quality

Constructs

St. coefficients value

R2 j-R2

Ad value

Expectation

0.429*** 124

6. .184

0 9

0.17 ***

37.507

Dependent variable: Perceived quality ***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1 The final model shown in the Table had a good overall fit (37.507***, p = 0.000). And at significant level 0.05, Expectation (H1) have significant positive relationships with Perceived quality. Therefore, we conclude that hypotheses H1are supported. We also can see in the table that the adjusted R2 value for constructs, namely Expectation is 0.179, meaning that the explanation ability of the independent constructs is good for our

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dependent variable, Perceived quality. 4.5.1 Result Model

Figure 6: Result Model

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Chapter 5 Conclusion
5.1 Research Result In chapter four we analyzed collected data based on four methods of analysis such as descriptive analysis, factor analysis, reliability analysis and regression analysis to assess and test the hypotheses. The final results are summarized as the following table: Table 15: Research Result Hypotheses H1: H2: H3: Expectation has a positive affect perceive quality Expectation has positive affect perceived value Expectation satisfaction H4: value H5 Perceived quality has positive affect customer's Supported satisfaction H6 Perceived value has positive affect customer's Supported Perceived quality has positive affect perceived Supported has positive affect Results Supported Supported

customer's Supported

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satisfaction H7: Customer's complaint has negative affect Supported

customer's satisfaction H8 Customer's complaint has negative affect customer Supported Loyalty

5.2 Significance and contribution From the analysis, we can see Customer's complaints have negative affect customer satisfaction and their loyalty. mean that the hypothesis H7 and H8 are supported, these hypothesis also supported by many From pervious researches (Tor Wallin Andreassen, 1999). Buyers tend to recommend their friends and people related about the products they are using. So, if they tell their good experience about product or service, which will help the company have more new customers and increase their market share and profitability. Conversely, if they tell their bad experience about the products or service, which is the cause for losing potential customers and therefore will lead to reduced income and profits. In addition, the complainant is not responding adequately tend to overstate the actual errors, which also occurs similar to those

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satisfied with the product. In fact, the negative comments powerful more than the positive words, so organizations need to avoid the failure on resolving customer's complaints. The customer's complaints are more concerned by many researchers, and it is an important part of business strategy (Fornell and Wernerfelt, 1989). Customer's complaint means that the negative impact of customer loyalty (Tor Wallin Andreassen, 1999). The complaints reflect customer's dissatisfaction with the product, or service providers. the result of previous experience in consumer or information through media channels for the product or service. In some sectors, may be this variable has no relation to perceived value, this result is also presented in the study by Martensen et al (2000). In fact, higher expectation, customer wants to purchase more, but expectation higher due to vendors possibility satisfy customer more difficult. The researchers also presented some degree of customer expectations (Parasuraman et al, 1991; Zeithaml et al, 1993). In the thesis also give the result in which the customer's expectation have strongly impact customer's satisfaction and their perceived value. Perceived quality have strongly impact customer satisfaction and perceived value

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is the result of the thesis. This result have supported by many previous study such as (Carman 1990; Boulding, Staelin & Zeithaml 1993, Parasuraman et al 1996), others reported report showed this influence only is indirect effect through customer's satisfaction (Cronin & Taylor in 1992; Sweeney, Soutar, & Johnson 1999) Another result of this thesis is perceived value have impact customer satisfaction, the result have supported by some of pervious researches of Martensen. A., Gronholdt, L. and Kristensen, K. (2000), Kotler (2003). The important factor in research model is customer satisfaction, which have strongly impact customer loyalty with the beta value equal 0.521. Same as the result of this thesis O'Loughin C. and Coenders, 2004) addressed that customers satisfaction becomes an important asset for businesses and organizations in an effort to improve the quality of service, to maintain loyalty, improve the competitiveness of enterprises (O'Loughin C. and Coenders, 2004) This thesis showed the overall picture of factors affect on customers loyalty and customers satisfaction. So that, help manager, leader of mobile company have deeply look on factors affect on customers satisfaction and customers loyalty from that the

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leader could make strategies better. This study has implications for leaders who want to improve their customer satisfaction and customers loyalty in order to improve their ability to retain customers, enhance their competitiveness against the competition. The final model in this thesis, is an overview picture of the factors that influence customer satisfaction and customers loyalty. When they looking forward at the final model, the leaders can easily find that customers satisfaction is the most of factor affecting customers loyalty. However, customers complaint has strongly negative impact to both of customers satisfaction and customers. Therefore, the leader should have best strategy in order to pull down the customer complaint. From the research result, the leader, owner or marketing manager can make their decisions better.

Besides, this study has academic significance, the results of this study can be used as a reference model of the factors that affect customer satisfaction. So that, these studies can be extended by the addition of new factors affecting customer satisfaction. Other researchers can also use this model to assessing customer satisfaction in other areas.

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5.4 Limitation In my thesis have conducted analysis based on the analysis methods are much used by other researchers in their studies, as well as I worked hard during the research and presentation for this study. However, my English is not the native language. Therefore I have encountered many difficulties in finding the previous study as the background for my research. I also have difficulty in expressing my understanding by English. The time and financial support are limited not allow I can expand more factors in my research model. Therefore, I can hardly conduct research further on the factors as well as limited research in a number of factors affect customer satisfaction and their loyalty. 5.5 Research on future Although, this thesis attempted to study by all of my effort. However, there are many other factors affect to customer satisfaction and their loyalty, thus in this thesis can not research such as: social, experience of users ... The future research should study more factors affect customer satisfaction and their loyalty.

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On the other hand, the number of samples used in this thesis is not large to be able analyze and give more accurate results. The next study should expand the number of samples to study further aim to assess more accurately the impact of these factors.

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66