BUSINESS RESEARCH DISSERTATION

BUSINESS RESEARCH DISSERTATION: UGB 301
BA (Hons) Business & Management 3+0
Examining the relationship between personal values,

service quality, perceived value, customer
satisfaction and behavioural intention in broadband
market: A study of Telekom Malaysia (TM) in
Kuching, Sarawak
Declaration
No component of the work referred to in this project has been submitted in support of
any application for another qualification for this or any other University or Institute of
Learning and complies with the University Infringement of Assessment Regulations.
Signed and Date

..
10,492 words
TABLE OF CONTENTS
Page
List of Tables......................................................................................................................... IV
List of Figures........................................................................................................................ IV
Acknowledgement................................................................................................................. V
Abstract.................................................................................................................................. VI
1.0 Introduction......................................................................................................................1
1.1 Importance of Broadband Sector......................................................................... 2
1.2 Background of Telekom Malaysia (TM)............................................................. 3
1.3 Research Objective.............................................................................................. 3
1.4 Significance of Research......................................................................................4
1.5 Theoretical Framework........................................................................................ 5
2.0 Literature Review.............................................................................................................6
2.1 Personal Values.................................................................................................... 6
2.2 Service Quality.....................................................................................................7
2.3 Perceived Value................................................................................................... 11
2.4 Customer Satisfaction.......................................................................................... 12
2.5 Behavioural Intention...........................................................................................15
2.6 Relationship between personal values, customer satisfaction and
behavioural intention.......................................................................................... 16
2.7 Relationship between service quality, customer satisfaction and
2.8 Relationship between perceived value, customer satisfaction and
3.0 Research Methods............................................................................................................21
3.1 Research Design...................................................................................................21
3.2 Population............................................................................................................ 21
3.3 Sample Size......................................................................................................... 22
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3.4 Sampling Technique............................................................................................ 22
3.5 Data Collection.................................................................................................... 23
3.5.1 Primary Data......................................................................................... 23
3.5.2 Secondary Data..................................................................................... 24
3.6 Measurement Scale.............................................................................................. 24
3.7 Analysis Tools..................................................................................................... 25
3.7.1 Frequency.............................................................................................. 26
3.7.2 Descriptive Statistics.............................................................................26
3.7.3 Pearson Correlation...............................................................................26
3.7.4 Hierarchical Multiple Regression......................................................... 27
4.0 Data Analysis and Findings............................................................................................. 28
4.1 Frequency Analysis..............................................................................................28
4.2 Descriptive Statistics............................................................................................30
4.3 Pearson Correlation..............................................................................................30
4.4 Hierarchical Multiple Regression........................................................................ 31
4.5 Summary of Hypotheses Testing......................................................................... 32
4.5.1 Hypothesis 1: Personal values are significantly related to

behavioural intention both directly and indirectly (mediated by
customer satisfaction)........................................................................... 32
4.5.2 Hypothesis 2: Service quality is significantly related to

4.5.3 Hypothesis 3: Perceived value is significantly related to

5.0 Conclusion....................................................................................................................... 37
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5.1 Managerial Implications...................................................................................... 37
5.2 Limitations of the Research................................................................................. 38
5.3 Future Research................................................................................................... 39
6.0 References........................................................................................................................40
7.0 Bibliography.................................................................................................................... 52
8.0 Appendices.......................................................................................................................58
8.1 Sample of Questionnaire......................................................................................58
8.2 Table of Literature Review.................................................................................. 64
LIST OF TABLES
Page
Table 1 Summary of measurement scales 25
Table 2 Direction and strengthof Pearson correlation 26
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Table 3 Frequency analysis 28
Table 4 Descriptive statistics 30
Table 5 Pearson correlation 30
Table 6 Hierarchical multiple regression 31
Table 7 Summary of hypotheses testing 32
Table 8 Literature review 64
LIST OF FIGURES
Page
Figure 1 Theoretical framework 5
ACKNOWLEDGEMENT
There are several people that I would to like to offer myappreciation for assisting me in the
process of conducting this study. Firstly, I would like to thank .. for his excellent
guidance and advice in completing this dissertation. Next, I would like to express my
5
gratitude to my family and friends for their continuous support during this period. Not to be
forgotten, the contributions of my fellow coursemates are also highly appreciated by me.
Lastly, I would like to say thank you to all the respondents for their participation because
without their feedbacks, I would not be able to complete the study.
ABSTRACT
The objective of this paper is to explore the relationship between of personal values, service
quality, perceived value, customer satisfaction and behavioural intention in the broadband
market. To be more precise, the paper would examine whether personal values, service
6
quality and perceived value have any significant relationship with behavioural intention. In
addition, the role of customer satisfaction as a mediator in the above relationship will also be
verified. A total of 300 questionnaires were distributed in Kuching, Sarawak. The data
obtained was analysed using frequency, descriptive statistics, Pearson correlation and
hierarchical multiple regression. The findings suggest that service quality and perceived
value are predictors of behavioural intention while personal values did not show similar
results. Customer satisfaction was found to be a mediator but its interaction with personal
values, service quality and perceived value did not provide any significant impact on
behavioural intention.
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CHAPTER 1: INTRODUCTION
Studies on service industry has been emphasised greatly in the research priorities recently due
to the rapid growth of service industry together with its significance especially on the
economic sector (Ostrom et al., 2010).Services were defined as those economic activities
that typically produce an intangible product (Heizer and Render, 1999). In todays service
industry, ensuring customer satisfaction is always one of the main priorities of the
organisations together with profit maximisation. Customer satisfaction is argued to be highly
related to behavioural intention of the customer which are recognised in the literature as an
imperative predictor of the profitability of the service providers (Slater and Narver, 1995).
Hence, behavioural intention such as customer willingness to pay more, word of mouth and
switching intention should be studied intensively by the firms in order to gain better
understanding of the consumer behaviour.
However, achieving high level of customer satisfaction is not a simple task due to several
internal and external factors such asservice quality (internal factor), perceived value and
personal values (external factor). Service quality is an internal factorsince it depends entirely
on the firms performance. An excellent service quality enables the organisation to
differentiate itself from its competitors and thus gain sustainable competitive advantage
within the industry (Gounaris et al., 2003). It is also suggested that an increase in service
quality will lead to higher level of customer satisfaction, repurchase intention and positive
word of mouth towards the firm (Yoon and Suh, 2004). Both perceived value and personal
values are considered as external factor because it rely heavily on the individual
evaluation.Perceived value is also noted as one of the most crucial aspects of differentiation
in service marketing strategies (Jen and Hu, 2003). Although it is not as popular as service
quality, perceived valueis stated as an antecedent of satisfaction and behaviour intention
(Moliner, 2008). Apart from that, another theory which is personal values is also a potential
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precursors that could possibly provide a more accurate explanation on customers satisfaction
and behavioural intention in the context of loyalty (Rokeach, 1973).Personal values was
suggested as the fourth hierarchical level in Zeithaml model in 1988, but unfortunately it has
not being developed much as it received little attention from the research community (Lages
and Fernandes, 2005). Presently, majority of the service evaluation studies only focus on the
evaluation of simple bivariate relationship between the proposed constructs and behavioural
intentions (Vlachos and Vrechopoulos, 2008). Thus, these past studies lack of the presence of
the third variable such as mediator which could provide more precise explanation between
the interaction of independent and dependent variables in the service industry viewpoint.
1.1 Importance of Broadband Sector
The present study is conducted based on an organisation in the broadband sector since
currently there is clearly an absence of post-purchase behaviour studies on this field as
previous research frequently focus on the hospitality, banking and healthcare industries.
Existing research on broadband sector mostly concentrate only on the factors affecting the
adoption of the service.Meanwhile, thebroadband sector is expanding due to the use of
internet has been increasing non-stop over the years and still, it is not showing any sign of
slowing down even in the future since the world is experiencing globalisation now. In fact,
internet service has almost become a need to some of us for our daily life activities such as
works, studies and entertainments which explains why almost everyone that lives in the urban
area has access to the internet.Measuring customer satisfaction and predicting the behavioural
intention might be difficult due to its pure service nature unlike other service industries that
have higher tangibility characteristics.
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1.2 Background of Telekom Malaysia (TM)
The internet era in Malaysia started in year 1995 and fast forward to today, the broadband
sector does not grow in a competitive environment due to the virtual monopolisation of
Telekom Malaysia (TM). The monthly price of internet in Malaysia is much higher than
some of its neighbouring countries for example Singapore and Thailand. In addition, even
these days certain areas in Malaysia still experiencing low connectivity, slow speed or no
service coverage at all.Currently, Malaysia is ranked at the 125th out of 191 countries in the
world internet speed (Ookla, 2014).Telekom Malaysia Berhad which is widely known as TM
by the Malaysians, is the largest broadband provider in the country. Its headquarter is based
at Kuala Lumpur, the capital of Malaysia. Initially, it was established as Telecommunication
Department of Malaya in year 1946 and rebranded as Telekom Malaysia in 1991 until today.
In year 2001, TM introduced its first broadband service, Streamyx and followed by the
launching of Unifi, the high speed broadband (HSBB) in 2010. As of now, the fastest internet
speed provided by TM is 20 Mbps which belongs to the Unifi package. According to the
Telekom Malaysia Berhad annual report (2013), TM has achieved RM 10.63 billion revenue,
the highest revenue growth in the industry at 6.4%. On top of that, it has also won various
awards such as Fixed Broadband Service Provider of the Year from the Frost & Sullivan Asia
Pacific ICT Award (Telekom Malaysia, 2013).
1.3 Research Objective
The objective of this study is toexamine the relationship of personal values, service
quality,perceived value, customer satisfaction and behavioural intention in the context of
broadband industry.Specifically, the present study would verify whether personal values,
service quality and perceived value have any significant relationship with behavioural
3
intention. In addition, the role of customer satisfaction as a mediator in the above
relationship will also be investigated.
1.4 Significance of Research
The study is essential in several ways, first it provides the readers a more updated and in-
depth level of understanding on the relationship in between personal values, service quality,
perceived value, customer satisfaction and behavioural intention specifically in the broadband
environment. At the same time, it also helps in increasing the society awareness regarding
marketing processes and activities. In actual fact, majority of people with the exception of
marketing experts do not realise that they have been involved indirectly in part of marketing
activities in their daily life. All they think about marketing is just an effort which is planned
by marketers to attract the customers to purchase a product or service. Marketing is not
strictly limited to promotional activities only but it should be seen as a process starting from
problem recognition to post purchase behaviour. On the other hand, this paper could also be
used by marketers to enhance their understanding on predicting the customers behavioural
intention. For broadband providers, this study will identify the importance of personal
values, service quality and perceived value in determining the customers post-purchase
behaviour. Subsequently, broadband providers could use the findings of the study to further
analyse its own weakness and make necessary improvement in that specific areas as to
increase the customer satisfaction as well as resulting positive customers behavioural
intention. Last but not least, this paper can serves as a future reference for students or
researchers who wish to conduct study related to this topic.
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1.5 Theoretical Framework
The following model is the theoretical framework of this entire study, constructed based on
the three proposed hypotheses:
Personal Values
Customer
Behavioural
Service Quality Satisfaction
Intention
Perceived Value
Source: Adapted from Eggert & Ulaga (2002), Saha
&Theingi (2009) and Thuy & Hau (2010)
Figure 1: Theoretical framework
H1: Personal values are significantly related to behavioural intention both directly and
indirectly (mediated by customer satisfaction).
H2: Service quality is significantly related to behavioural intention both directly and
H3: Perceived value is significantly related to behavioural intention both directly and
CHAPTER 2: LITERATURE REVIEW
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The study of literature review enables the examiners to have more comprehensive
understanding on the concepts related to the research as it is the compilation of the work done
previously by multiple authors. Different intellectuals have their own point of view and thus,
several perspectives or approaches will be formed at the end of the literature review. In the
following sections, the concept of personal values, service quality, perceived value, customer
satisfaction and behavioural intention will be criticallyevaluated.
2.1 Personal Values
As being mentioned earlier on, the conception of personal values are not fully developed due
to the lack of interests on it but now, it starts to gain attention due to marketers realising the
importance of personal values in emerging as a way to understand how customers fulfil their
individual needs when using a service. Personal values are defined as an enduring belief that
a specific mode of conduct or end-state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end-state of existence (Rokeach, 1973, p. 5). On
the other side, personal values can be described as desirable goals, changing in significance,
that serve as guiding codes in individual life. (Schwartz, 1994, p. 88).Personal values are also
relatively durable and it predicts both attitudes and behaviours (Lotz et al., 2003). It is often
viewed as a belief or concept that guide evaluation and choice of particular events as well as
behaviour to an enviable end stateKropp (2005). Based on the various definitions given by
the authors, personal values can be best explained and summarised as a guideline for
individuals to follow in a set of situation in terms of attitudes, actions, judgments and
behaviour. Itis strongly hinted that personal values serve as the foundation for cognitive
structure and attitudes of an individual towards other people and objects for instance
comparing oneself with another person. Hence, personal values could be used as a judgment
in solving conflicts, decision making, experiencing and adjusting the relationships between
an individual and the society.
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Since the study is based on the broadband industry, the service personal values known as
SERPVAL developed byLages and Fernandes (2005) was employed instead of the list of
value (LOV) scales of values, introduced by Kahle (1980). The service personal values are
constructed based on the conceptualisation of personal values by Rokeach (1973) and
Schwartz (1990). It comprise the following components: value to peaceful life, value to
social recognition and value to social integration. These three components of service
personal values act as a service evaluation criteria for the consumer. Applying the service
personal values on the broadband service context. Value to peaceful life refers to the
consumption of broadband service which make the individual to have a more pleasurable life,
more tranquil, safe or harmonious life. Besides that, it also defends or protects the individual
from being pressured or threaten. As for value to social recognition, the individual gains
respect from others, enhancing social status, or achieving a more fulfilling and exciting life
through the use of the broadband service. The last component, value to social integration
speak of improving individual relationship with family, friends and society as well as higher
integration into the society by utilising the broadband service(Lages and Fernandes, 2005).
2.2 Service Quality
Service quality is undeniably a core aspect in the service industry. Nowadays, the term
product quality is seldom used anymore and has been replaced by service quality instead.
This is mainly because in todays world, most or all the product transaction will definitely
involves some sort of interactions between the customers and the employees. The very early
definition of service quality is the outcome of an evaluation process that focuses on the
comparison between expectations and experiences of the service from the perspective of
customers (Gronroos 1984, p. 37). Under this definition, dimensions of service quality is
categorised into functional quality (the process of service delivery) and technical quality
(what consumers actually receive from the service). Supporting Gronroos (1984)
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interpretation, Parasuraman et al. (1985) added that service quality is a function of the
differences between expectation and performance based on the proposed ten quality
dimensions.Before experiencing and evaluating the performance of the service, consumers
usually have certain level of expectations formed towards the service. Expectation is viewed
as what service providers supposed to do and how they should have act (Patterson, 1993). It
can also be interpreted as the pre-purchase beliefs regarding a product or service based on the
individuals own prior experiences, external information or present circumstances (Oliver,
1997). Hence, development of expectation should not be strictly limited to past experiences
onlybecause it can also be formed through various sources of external marketing
communications. Even so, organisation such as broadband providers should not create any
unrealistic expectation among the potential customers as failure to deliver what they have
promised would cause the customers to be dissatisfied. Although the proposed
characterisation of service quality might be old, nevertheless it is still able to interpret the
meaning of service quality in an acceptable way.
Parasuraman et al. (1988) developed SERVQUAL also known as RATER, a measurement
scale that defines service quality as perception minus expectation. The SERVQUAL consists
of 22 items which are classified into five dimensions for each of perception and expectation.
These five dimensions include reliability, assurance, tangibility, empathy and responsiveness.
Reliability is described as the ability to deliver the promised service dependably and
precisely. As for assurance, it refers to the knowledge and courtesy of employees and their
abilities to display trust and confidence to the customers. Tangibility speak of the
physicalcharacteristics of the service whereas empathy is represented through the caring,
individualised attention provided by the firms to the customers. Last but not least,
responsiveness is expressed as the willingness to help customers and provide efficient
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service. Fulfilment of these five dimensions is not an option but a must for every broadband
provider.
Numerous researchers have used the SERVQUAL dimensions as the foundation for their
studies due to its insightful and practicality framework (Christopher, Payne and Ballantyne,
2002, p. 177).However, every theoretical model has its own weaknesses and this includes the
SERVQUAL scale as well. It has been criticised by various authors for several reasons like
the scales dimensionality across the different industry (Sureshchandar, Rajendran &
Kamalanabhan, 2001, p. 111). This criticism is especially true for service industry that lack
of both the interaction with employees and tangibility aspects. Broadband service is
considered asa highly intangible service since its core product is the internet service. Thus,
the SERVQUALneeds to be modified accordingly to the service sector. Another area of
criticism is the scales comparison between individuals expectations and perceptions in
which it is strongly argued that it is not necessary to include the expectation part since the
perceived performance is sufficient for the model (Cronin and Taylor, 1992). Despite those
weaknesses, some authors such as Buttle (1996) defended SERVQUAL is still an imperative
tool to measure service quality and probably the best available due to its indication on the
relative importance of the five dimensions.
The criticism on SERVQUAL led to the introduction of SERVPERF, an alternative model
proposed by Cronin and Taylor (1992). The SERVPERF, a performance-only index was
modified from the original gap-based SERVQUAL scale. Both models are similar to one
another with the exception that the SERVPERF removed the expectation feature from the
scale. Some studies had foundthat the SERVPERF is a better alternative than the
SERVQUAL(Sultan and Tarafder, 2007a). On the other side, the SERVQUAL is more
preferred by certain authors to measure service quality (Zeithaml and Bitner, 2003).
However, it is strongly emphasised that the purpose of the present study is not to evaluate the
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SERVQUAL and SERVPERF but to use SERVPERF as a foundation to measure service
quality within the broadband sector. To sum up, both scales areequally qualified and valid as
the predictors of overall service quality. The selection of scale should be based on several
considerations for example how the researchers plan to conduct the studies and the types of
industries involved. For this study, the SERVPERF scalewas selectedand modified
accordingly to the research.
Additional aspects are needed since service quality is an extremely wide and multi-
dimensional construct and reliance on a single instrument might not be sufficient enough to
examine the broadband service quality. Apart from the five dimensions in SERVQUAL,
other aspects like accessibility is also included as part of the service quality. Accessibility is
refers as the ability of the service provider to serve its customers in terms of locations,
operating hours, employees and operational systems (Olorunniwo and Hsu, 2006). It is also
involves in designing and delivering service that is capable of adapting to the requests of
customer in a flexible way. Customer service centre is an example of accessibility element
since its primary function is to communicate with the customers on any enquiry or issue
related to the service.
Service recovery is another element that should not be taken lightly since it plays a vital role
in an organisation daily operation.In fact, service recovery is more like an extension of the
reliability and responsiveness elements. Service failure is unavoidable these days, even the
best service providers also vulnerable to make errors in service delivery. It is common for the
broadband sector since its service quality depends on various factors such as interaction with
employees and quality of internet connection. It refers to the activities in which suppliers
perform in order to respond to customers complaint regarding perceived service failure
(Grnroos, 1988). Failure or poor execution ofeffective recovery strategy will definitely
upset the customers and ruin the service providers reputation as a consequence.
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Based on the study of Vlachos and Vrechopoulos (2008) which focused on the mobile
internet service market, the instrument of connection and contextual quality are adapted into
this study since the internet speed is considered as the core service for the broadband
industry. Connection quality is explained as consumers having access to stable internet
service, quick responses to user input and without facing connection interruption (Chae et al.,
2002). As for contextual quality, it is highly associated with the accessibility element.
2.3 Perceived Value
Perceived value is a vital construct for understanding consumer behaviours such as service
adoption. It is extremely hard to define and measure unlike service quality. The most
common definition of perceived value is always related with the ratio or trade-off between
quality and price which is also known asthe terms value for money. According to Zeithaml
(1988), perceived value is definedas the consumers overall assessment of the utility of a
product or service based on the perceptions of what is received (volume/quality/convenience)
and what is given(money/time/effort). These benefits and sacrifices differacross consumers
due to individuality.Sacrifices usually play the key role to customer in value perception
(Eggert and Ulaga, 2002). Therefore, it can be implied that customers would prefer a
reduction in term of sacrifices more than benefits increment. In the setting of broadband
industry, the sacrifice refers to the monthly subscription payment and the benefit is mainly
the internet service.While the idea of perceived value has certainly grown in the academic
field, it has still received much less attention compared to the popular constructs of service
quality and satisfaction. It has been suggested that the dearth of attention on perceived value
was due to a lack of well-developed scales of the conception (Petrick, 2004).
Consequently, attempts to build a multi-dimensional scale of the perceived value construct
led to the establishment of the SERV-PERVAL scale developed by Petrick (2002) which
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expands perceived value into a five dimensional aspects consisting of quality,monetary price,
non-monetary price, reputation and emotional response.The multi-dimensional characteristics
of perceived value was tested, with results indicated that the multiple value dimensions
explained the consumer behavioural intention better than the simple overall value for
money scale (Sweeney and Soutar, 2001). As a result, this outcomefurther highlighted the
need to operationalise perceived value into multi-dimensional aspects. Nevertheless, the
simple value for money instrumentwas usedto measure the perceived value instead of the
multi-dimensional scale due to the focus of the present study only on the monetary term.
2.4 Customer Satisfaction
There has been plenty of debate in the literature regarding satisfaction whether it is a
cognitive or emotional construct based, and whether it is an outcome or a process. But in this
case,the discussion will focus onsatisfaction as the outcome of cognitive approach. In
general, satisfaction is explained as an individuals attitude towards various aspects of his or
her life (Judge et al., 2001). The disconfirmation paradigm has been widely used to explain
customer satisfaction and isconsists of the following constructs: expectation, performance,
disconfirmation and satisfaction(Davis and Heineke, 1998).According to this model,
satisfaction is determined by individuals through assessing the differences between their
expectations and perceptions of the actual performance delivered by a given product or
service. For instance, if the purchased product or service performance is above the customer
expectations, then the customers would be satisfied. However, if the performance is below
their expectations, then it is assumed that the customers will be dissatisfied. In mathematical
equation, it can be represented as S = E - Pwhere (S = Satisfaction, E = Expectation, and P =
Performance).Therefore, customer satisfaction in broadband sector is best explained as the
final outcome of customer evaluation between expectation and the perceived performance of
the broadband service.
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Expectation is used to create the standards practiced by consumers to compare the current and
past experiences in order to the determine satisfaction level (Cardozo, 1965). Parasuraman
et al. (1991a) proposed that customer expectations actually comprised of two levels which are
desired and adequate. The desired expectations are the level at which the customers wanted
the service to perform whereas adequate expectations are considered to be the customers
minimum acceptable level of performance. Hence, measuring customer expectation is
extremely difficult due to its complexity and subjective characteristics which lead to every
individual have different expectation level toward a set of product or service.
Although the definition of customer satisfaction is very similar to service quality, there is a
number of distinctions between both these constructs. First, satisfaction is a post-decision
customer experience while service quality is not (Parasuraman et al., 1988). Furthermore, the
idea of expectations in satisfaction and service quality literature are defined differently
(Caruana and Malta, 2000). In the satisfaction literature, expectation refers to the anticipated
performance created by the customer regarding the performance during the transaction
(Churchill and Suprenant, 1982, p. 492). As for service quality, expectation is conceptualised
as an ideal standard of future wants (Boulding et al., 1993, p. 8). This particular normative
standard represent the long term needs and wants that remain unaffected by the various
marketing and competitive environments as well as the core element that every service
provider must be constantly strive to offer to the consumers (Zeithml et al., 1993).
Understanding these distinctions are crucial to avoid confusion when examining both
customer satisfaction and service quality in the broadband industry.
On the other side, Lockes (1976) satisfaction model included a new variable that is not
mentioned in the disconfirmation model (Szymanski and Henard, 2001). This particular third
variable is the importance (I) of a product or service attribute under consideration (Matzler
and Bailom, 2002). Thus, the formula to represent Lockes (1976) model would be S = (E
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P) I. The rationale of adding this construct is due to the reason that not each of the attribute
of a product or service is equally important to the consumers (Kanning and Bergmann, 2009).
Take for example, someof the broadband users arelikely to emphasise on the internet
connection quality as a more crucial aspect of satisfaction than the level of customer service
provided.
However, both these models have several conceptual drawbacks which the first one is the
ambiguity of the term expectation (Kanning and Bergmann, 2009). The term expectation
is extremely wideand can be different form which will obviously represent different qualities
and criteria depending on the individual. These distinctions are not taken into the
consideration in the disconfirmation model whereas inLockes model, such distinctions are
best measured only in the form of the importance variable.Secondly, both models simply
assume that dissatisfaction occurs when performance is less than expectation (Kanning and
Bergmann, 2009). Although this assumption seems to be acceptable, it is also possible that
satisfaction might occur when performance is equal to expectation. Besides, it is uncertain
whether over-fulfilment of expectation will guarantee satisfaction in return (Lambert et al.,
2003). It is possible that a limit is reached in terms of fulfilling expectations, which beyond
certain level of enhanced performancedoes not lead to any improvement in satisfaction.
Third, the determination of satisfaction based on difference between expectation and
performance without taking into consideration the absolute amount of expectation and
performance (Lambert et al., 2003). The difference between expectation and performance
could be the same when both of them are high and low. Measuring satisfaction solely on the
relative difference implies that information regarding the absolute performance is simply
ignored, even though it might have certain impacts towards the overall satisfaction of the
individual. It has been argued that the same difference might be related with a greater
satisfaction level if the performance is at a higher absolute level (Edwards and Rothbard,
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1999). Lastly, both models assumed that performance and expectation are equally significant
in determining satisfaction (Kanning and Bergmann, 2009). However, various studies have
revealed that the performance variable is actually more significant compared to
expectation and importance in predicting customer satisfaction (Lambert et al.,
2003).The disconfirmation paradigm approach was adopted into this study due to its simple
and direct comparison between expectation and performance.
2.5 Behavioural Intention
Behavioural intention is stated as the customers subjective probability of performing a
certain behavioural act (Fishbein and Ajzen, 1975). On the other side, Zeithaml et al. (1996)
viewedbehavioural intention as anindicator of whether customers will remain or exit the
relationship with the service provider. Numerous studies have revealed that behavioural
intention has played a crucial role as the main dependant variable in majority of the service
research (Kuo et al., 2009). It is often regardedas the very last stage of the post purchase
behaviour under the consumer behaviour theory. Behavioural intention can be commonly
classified into two dimensions which are favourable and unfavourable. In the current study,
behavioural intention is suggested as a multidimensional construct, comprising ofwillingness
to pay more, word of mouth and switching behaviour.
Willingness to pay more is described asthe intention of a customer to pay a higher price than
the competitors charge for the benefits that the customer currently received from the service
provider (Zeithaml et al., 1996). Sometimes, customer displaying willingness to pay more is
implied that the product or service offered to them is likely to be of high quality and unique.
As for word of mouth, it is explained as the flow of information pertaining a product, service
or even the organisation from one customer to another individual (Saha and Theingi,
2009). It is often seenas a trusted external source of information by which both potential
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and existing customers can evaluate a product or service. Recommendation and complaining
behaviour are among the examples of word of mouth. Recommendation is defined as the
readiness to communicate about a service provider offered by an existing customerwho is
perceived not to obtain monetary gain from so doing (Host and Knie-Andersen, 2004, p. 31).
Thus, these customers are seen as important value to the broadband providers becausethey act
as ambassadors of the organisation. Complaining response is categorised into internal and
external. Internal complaining response is regarded as constructive attempts by customer in
which the individual actively works with the firm to solve the encountered problems
(Hirschman, 1970). Contrarily for external complaining response, it involves complaints
made by customers to any outsider besides the firm due to dissatisfaction with a particular
product or service. It is identified as a retaliatory reaction and usually resulting in higher
negative impact to the organisation compared to internal complaining (Jaiswal and Niraj,
2011). Slightly similar to complaining response, switching behaviour is another reaction
shown by dissatisfied customers when they have indicate the desire to stop any form of
transaction with the current firm and intend to change to the organisations competitors.
2.6 Relationship between personal values, customer satisfaction andbehavioural
intention
The review of personal values has suggests an approach to the explanation of customer
satisfaction and loyalty. This approach is significantly different from the conventional view
that customer satisfaction relies on the service quality or perceived service value (Thuy and
Hau, 2010). This method relies on a higher abstract level which provides a more reliable
justification to explain the consumer attitude as well as behaviour towards the service. For
instance, an individual will purchase a service if the service helps in enhancing him or her
personal values (Lages and Fernandes, 2005). However, this action is also applicable to post-
16
purchase behaviour such as customer satisfaction and loyalty. Loyalty is included as one of
the dimensions of behavioural intention (Ladhari, 2009). The consumer assess the service
according to his or her own personal values and as a result it leads to the extent of
satisfaction. Positive relationship between customer satisfaction and loyalty had been
established in previous empirical studies (Han et al., 2008). Besides that, service personal
values had been proven to have a positive impact towards customer loyalty (Marandi et al.,
2006). Although currently there isno research could be found that specifically examines
personal values in the perspective of broadband service, several studies do point to its
potential prominence.
With these findings, it is therefore proposed that:
2.7 Relationship between service quality, customer satisfaction and behavioural
intention
The ideas of service quality and customer satisfaction have been frequently connected to the
extent where service quality has been generally accepted to have a positive relationship with
customer satisfaction. Brady et al. (2005) who studied service consumers in the Australia,
Hong Kong, Morocco Netherlands and United States concluded that service quality has a
direct impact on satisfaction. The same finding was obtained by Bei and Chiao (2006), who
found a significant association between service quality and customer satisfaction in three
service industries (automobile repairs, baking and petrol station). These outcomes imply that
service quality is related to customer satisfaction in different services including broadband
sector.
17
Several past studies also examined the relationship between service quality and behavioural
intentions. Baker and Crompton (2000) stated that service quality was positively associated
to customer loyalty and willingness to pay more. On top of that, Bei and Chiao (2001) found
that high level of service quality had an indirect significant positive impact on consumer
loyalty (through satisfaction). In a study of restaurant setting by Chow et al. (2007), it was
reported that a high level of service quality was linked with frequent patronage.In short,
customer satisfaction plays a mediating role between service quality and behavioural
intention.
Association between customer satisfaction and behavioural intention can be traced back in
the previous findings. Kessler and Mylod (2011) who studied how customer satisfaction
affects the tendency to return to the service provider, found that there was significant
linkbetween customer satisfaction and loyalty. In the healthcare sector, Chahal and Kumari
(2010) identified that service quality leads to patient satisfaction and loyalty based on their
results. As for Yu and Dean (2001) findings, it was revealed that there were significant
relationships between satisfaction and several behavioural intentions like positive word of
mouth, switching behaviour and willingness to pay more. It is presumed that customer
satisfaction is positively linked with behavioural intention.
Using the outcome of the above findings, the following hypothesis is formed:
H2: Service quality is significantly related to behavioural intention both directly and
2.8 Relationship between perceived value, customer satisfaction and behavioural
intention
Numerous empirical and conceptual contributions had established direct relationship between
perceived value and behavioural intention while neglecting the role of customer satisfaction
18
(Dodds et al., 1991, p, 308). It is argued that in business market, customer decision making is
mainly based on the cognitive reasoning rather than affective factor (Gross, 1997). Hartline
and Jones (1996) stated that positive perceived value exert an impact on word-of-mouth
recommendations whereby it was also observed that the effect of perceived value was
significantly larger compared to service quality. Study pertaining to retail setting done by
Baker et al. (2002) also had identified a positive effect of consumers value perception on
store repurchase and recommendation intentions. It is highly suggested customer who
perceived the value of product or service to be high will exhibit positive behavioural
intention.
On the other side of the discussion, the association between perceived value, customer
satisfaction and behavioural intention is verified both theoretically and empirically. Ajzen
and Fishbeins (1980) framework in the consumer behaviour literature have provides solid
theoretical confirmation on the relationship. This particular framework has suggested that
cognition leads to affection and subsequently affects the behavioural outcome. Empirically,
findings from several research strongly hinted a direct relationship between perceived value
and behavioural intention as well as direct relationship between customer satisfaction and
behavioural intention (Sweeney et al., 1999). On top of that, majority of studies have also
long-established the mediating role played by satisfaction between perceived value and
behavioural intention but yet, there is no general agreement on the actual characteristics of
the mediation process due to complexity in terms of analysis.
In Eggert and Ulaga (2002) studies, it was unveiled that the relationship between perceived
value and behavioural intention is fully mediated by customer satisfaction. However,
Durvasual et al. (2004) revealed that satisfaction only displayed partial mediation on the same
relationship. As for Lam et al. (2004), satisfaction was found to fully mediate the interaction
between perceived value and word of mouth, while only partially mediated the interaction
19
between perceived value and patronage intention. Based on the outcomes above, the
mediating characteristics of satisfaction might vary across different products, services,
dependent variables and perceived value measurement scale (one-dimensional or multi-
dimensional).
From the discussion, it is thus hypothesised that:
H3: Perceived value is significantly related to behavioural intention both directly and
20
CHAPTER 3:RESEARCH METHODS
The research methods for the current study includes theresearch design, population, sample
size, sampling technique, data collection, measurement scale and lastly analysis tools.
3.1 Research Design
Quantitative approach was employed since the present study objective is to examine the
relationship between the variables through verification of the proposed theoretical
hypotheses. It includes the application of relevant measurement scales into the study and the
analysis involves numerical calculation in terms of statistics(Rasinger, 2013).A large number
of sample is often required for quantitative research for the purpose of testing the proposed
hypotheses, whether it is able to represent the general views of the population.
3.2 Population
The targeted respondents would be the Malaysians from Kuching, the capital city of Sarawak.
Malaysia is comprised of thirteen states and three federal territories with the South China Sea
separated both the Peninsular Malaysia (West Malaysia) and East Malaysia. Malaysia is
aunique country as it is made up of multiple ethnics and religions, with Islam being the
official religion while freedom of religion is freely practiced by the citizens. According to the
Department of Statistics Malaysia (2013), the total population of Malaysia wasrecorded at
21
28.3 million where91.8% were Malaysian citizens and 8.2% were non-citizens. The ethnic
composition in Malaysia is as follows: Bumiputera which includes Malay and indigenous
peoples (67.4%), Chinese (24.6%), Indians (7.3%) and other ethnics (0.7%). As for the
distribution of population by religion: Islam (61.3%), Buddhism (19.8%), Christianity
(9.2%), Hinduism (6.3%), other religions (2.7%) and no religion (0.7%). The literacy rate of
Malaysians aged 10-64 years old in 2010 reached 97.3%. The overall broadband penetration
rate in Malaysia is 66.0% in the year 2012 (Ministry of Science, Technology and Innovation,
2014). Sarawakhas a population of 2.47 million which makes it the fourth most populous
state although it is the largest state in terms of area in Malaysia. Besides, Sarawak itself
consists of 27 ethnics groups with Kuching having the highest population (681,901) in the
state (Sarawak Government, 2013).
3.3 Sample Size
Determining the right sample size is crucial for data collection as a small sample size might
not be able to fully represent the whole population but selecting a large sample size also may
not necessarily guarantee any improvement of accuracy besides of wasting valuable time and
resources. As mentioned by Iacobucci and Churchill (2009), sample size can be determined
based on the number of independent variable and dependent variable. The present study
consists of three independent variables (personal values, service quality and perceived value),
one mediator (customer satisfaction) and one dependent variable (behavioural intention). The
mediating variable isconsideredas part of the dependent variable only for the case of sample
size determination. Thus, the sample size of this study is calculated as below:
Sample Size=Number of independent variableNumber of dependent variable50 (Note:
The value of 50 is a constant in the formula)
22
Sample Size=3250 Sample Size=300 Hence, sample size of 300 was
obtained from the formula.
3.4 Sampling Technique
Convenience sampling was used to determine sample for the study due to its flexibility, lower
cost and less time consuming compared to the other methods. It refers to selecting sample
from the nearest part of the population without any form of prerequisite on the data collection
method (Zikmund & Babin, 2012). Convenience sampling is classified as non-probability
sampling which does not include the element of possibility in choosing the sample since the
researchers can personally pick their respondents or individuals can volunteer themselves to
be the respondents. Due to that, non-probability sampling tends to have higher sampling
error. Probability sampling was not chosen because of the large size of population which
requires extremely huge amount of time and effort to conduct, making it is not feasible to be
carried out for this study. Even though convenience sampling is criticised for being a weak
representative for the population due to higher possibility of higher sampling error, it does not
necessarily means that using probability sampling could obtain better sample.
3.5 Data Collection
In conducting research, data is required to generate useful information that would help to
achieve the study objectives. Data is mainly divided into primary and secondary data.
3.5.1 Primary Data
Primary data which is also known as raw data, refers to data obtained from the original
source (Mooi & Sarstedt, 2011).In this case, the respondents for this study would be the
primary data since their responses were obtained directly from them without being processed
by any third party. The feedback acquired from the respondents is used as the input to test the
relationship between the proposed variables. Majority of the questionnaires were distributed
23
physically at a shopping mall in Kuching during the weekend while the remaining were
distributed through the internet. The respondents were first being approached politely and
asked for their permissions before passing the questionnaires to them. The online
questionnaire was created using the Google Drive application and the feedbacks obtained
were stored in the Microsoft Excel format. After collecting back the questionnaires, each of
the questionnaire is checked to ensure that all the questions have been answered clearly and
had reached the required amount of sample for the study.Having primary data is a must for
every study because it reflects the feedback of the respondents which may be different from
the past studies. As a consequence, it might leads to new discovery that is unknowns in the
past. Research without any primary data may not be able to provide a solid evidence to
support its findings.
3.5.2 Secondary Data
Unlike primary data, secondary data is acquired through alternative sources which is often
processed by other individuals or organisations before being published (Stevens, 2006). The
secondary data for this study were mostly journals due to its past studies which served as
references and foundations in conducting this research. It is often used to compare the
findings from different studies to see whether there is any consistency or dissimilarity. It also
provides in- depth discussion which would help to enhance the understanding of the
researchers toward their studies. Online resources such as statistics were also used in this
research to obtain the general characteristics of the targeted population.Conducting
demographic research on your own would take an extensive amount of time which is not
practical at all. Therefore, using demographic data published by government or organisation
would help to speed up the process.
3.6 Measurement Scale
24
The questionnaire consists of two sections whereby the first section was the demographic and
general questions. The second section focused on the independent variables, mediating
variable and dependent variables. The questionnaire response structure was based on the
Likert 5-point scale. Likert 5-point was applied instead of Likert 7-point to reduce the
possibility of respondents become undecided on which rating to choose due to more options,
which in the end will affect the overall findings accuracy. The Likert-5 point scale in this
study starts with: 1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly
Agree. All the measurement scales were rephrase and modified accordingly to the study for
the purpose of ensuring the respondents to understand each of the statement precisely. In
general, measurement scale with reliability (above 0.7) and validity (above 0.5) are
considered to be reliable and valid. The following table is the summary of measurement
scales utilised in this study:
25
Number of Unipolar/ Reliabilit
Author Variable Validity
question Bipolar y
Personal values (6 items)
Value to a peaceful
Thuy and Hau (2010) 1 Bipolar 0.778 0.540
life
Value to social
recognition
Value to social
integration
Service quality (22 items)
Vlachos and Vrechopoulos
Connection quality 3 Bipolar 0.76 0.52
(2008)
Contextual quality 1 Bipolar 0.85 0.66
(2008)
Service quality 1 Bipolar 0.73 0.58
(2008)
Olorunniwo and Hsu (2006) Responsiveness 6 Bipolar 0.922 0.665
Olorunniwo and Hsu (2006) Knowledge 4 Bipolar 0.920 0.746
Olorunniwo and Hsu (2006) Reliability 1 Bipolar 0.904 0.703
Olorunniwo and Hsu (2006) Accessibility 1 Bipolar 0.782 0.643
Olorunniwo and Hsu (2006) Tangibility 3 Bipolar 0.919 0.695
Olorunniwo and Hsu (2006) Recovery 2 Bipolar - -
Perceived value (2 items)
Customer perceived
Ryu, Lee and Kim (2012) 2 Bipolar 0.72 0.62
value
Customer satisfaction (2 items)
Liao, Chen and Yen (2006) Expectation 1 Bipolar 0.92 0.79
Liao, Chen and Yen (2006) Satisfaction 1 Bipolar 0.97 0.90
Behavioural intention (8 items)
Willingness to pay
Jaiswal and Niraj (2011) 2 Bipolar 0.71 0.56
more
Athanassopoulos Gounaris Word-of-mouth
3 Bipolar 0.98 0.97
and Stathakopoulos (2001) communications
Athanassopoulos Gounaris Intention and
3 Bipolar 0.97 0.97
and Stathakopoulos (2001) decision to switch
Table 1: Summary of measurement scales
3.7 Analysis Tools
The feedbacks obtained from the questionnaires were analysed using IBM SPSS (Statistical
Package for the Social Sciences) Statistics, a statistical analysis software which is widely
used and highly recommended by researchers. Using SPSS, a total of four analysis were
26
being carried out: frequency, descriptive statistics, correlation and hierarchical multiple
regression.
3.7.1 Frequency
Frequency analysis was performed to identify the recurrence of the responses for the
demographic and general questions in the present study. It revealed the frequency of each
item in the form of exact figure and its corresponding percentage. It is used to observe the
overallcharacteristicof the respondents to determine how well the samples represent the
population of this study.
3.7.2 Descriptive Statistics
Descriptive statistics was conducted to analysethe mean and standard deviation of personal
values, service quality, perceived value, customer satisfaction and behavioural intention
variables. Mean measure the average reading of the values whereas standard deviation
analyse the overall distribution of the data. A low standard deviation indicates the values are
closely spread and almost similar to the mean while high standard deviation implies the
values are widely spread and very different from the mean.
3.7.3 Pearson Correlation
Correlation was used to identify the degree of association between two variables without
taking into consideration the types of variables. In this analysis, personal values, service
quality, perceived value, customer satisfaction and behavioural intention variables were tested
against one another. In general, Pearson correlation coefficient is measured as R in which the
coefficient falls between the range of -1 to +1 where it is interpreted that -1 = total negative
correlation, 0 = no correlation and +1 = total positive correlation.
Value of the Correlation Coefficient Strength of Correlation

1 Perfect
0.7 - 0.9 Strong
0.4 - 0.6 Moderate
0.1 - 0.3 27 Weak
0 Zero
Source: Extracted from Dancey and Reidy (2004)
Table 2: Direction and strength of Pearson correlation
3.7.4 Hierarchical Multiple Regression
Hierarchical multiple regression was applied to examine the relationship between
independent, dependent and mediating variables in the study. In this case, personal values,
service quality and perceived value are the independent variables. Customer satisfaction is
the mediating variable and behavioural intention is the dependent variable. R square or R2
refers to the percentage of variance in the dependent variable explained by the specified
independent variable. Standardised coefficient beta identified the direction of the relationship
between the independent and dependent variables whether it is positive or negative. Lastly,
the significance of relationship between variables are determined through the p-value which
is represented as statistical significance in SPSS regression coefficient table.
28
CHAPTER 4: DATA ANALYSIS AND FINDINGS
The feedbacks obtained from the 300 questionnaires were checked meticulously before being
analysed. The negatively worded items were recoded accordingly to ensure accuracy in the
analysed results. Next, each of the variable (independent, mediator and dependent) was
computed to obtain the average readings and finally the corresponding analysis were
performed and presented in the form of tables together with its explanations.
4.1 Frequency Analysis
Variable Frequency Percent

Male 157 52.3
Gender
Female 143 47.7
21-25 years old 149 49.7
26-30 years old 64 21.3
Age 31-35 years old 46 15.3
36-40 years old 27 9.0
40 years old and above 14 4.7
SPM 32 10.7
Certificate 9 3
Diploma/ Foundation/ A Level/ Matriculation/ STPM 101 33.7
Education Level Bachelor Degree 110 36.7
Master 37 12.3
PhD 10 3.3
Other 1 0.3
Single 203 67.7
Married 80 26.7
Marital Status
Widowed 6 2.0
Divorced 11 3.7
Malay 76 25.3
Chinese 176 58.7
Ethnic/Race
Indian 21 7.0
Other 27 9.0
Below RM 1,000 103 34.3
RM 1,001 RM 2,000 49 16.3
RM 2,001 RM 3,000 63 21.0
Gross Income
RM 3,001 RM 4,000 42 14.0
RM 4,001 RM 5,000 22 7.3
RM 5,001 and above 21 7.0
Less than 1 hour 23 7.7
2 4 hours 103 34.3
Internet Usage Period
5 7 hours 83 27.7
Above 8 hours 91 30.3
29
Social networking and email 130 43.3
Watching video 38 12.7
Reading news 29 9.7
Internet Usage Purpose
Online gaming 29 9.7
Downloading file 29 9.7
Other 45 15.0
Table 3: Frequency analysis
A total of 8 questions were analysed using the frequency method. The first demographic
question related to the gender aspect, whereby it was found that 52.3% of the respondents
were males which was slightly higher than females (47.7%). Moving on to the age, the
highest group which almost represent half of the total respondents were in the age of 21-25
years old (49.7%) followed by 21.3% of respondents in between the age of 26-30 years old.
15.3 % of the respondents were within the age of 31-35 years old while only 9.0% of them
were 36-40 years old. 4.7% which was the least, referred to respondents with 40 years old
and above. The third question examined on the respondents education level. The highest
group of respondents were Bachelor degree graduates (36.7%)followed closely by 33.7% of
respondents with Diploma or equivalent education level. Respondents possessing Master
qualification were 12.3%which was higher than respondents graduated with SPM
qualification (10.7%). Respondents with PhD and Certificate were 3.3% and 3.0%
respectively whereas only 0.3% of the respondents were having other types of qualifications.
Next question was the marital status of the respondents. It was observed that majority of the
respondents were still single (67.7%) proceeded by 26.7% married respondents. Widowed
respondents accounted for 2.0% which was marginally lower than divorced respondents
(3.7%). The fifth item was pertaining to the respondents race. Malay respondents were
25.3% while Chinese respondents made up 58.7%, the highest of the group. Indian was the
least among the group (7.0%) and the remaining of the respondents (9.0%) were from
different races. The subsequent question was the gross income of the respondents.
Respondents with gross income below RM 1,000 was the highest (34.3%)and 16.3% of the
30
respondents below to the group of RM 1,001 RM 2,000. The other 21.0% of respondents
were reported to have gross income of RM 2,001 RM 3,000, higher compared to those
having RM 3,001 RM 4,000 (14.0%). On the other side, 7.3% of the respondents income
were between RM 4,001 RM 5,000 and lowest percentage was 7.0% referring to
respondents earning RM 5,001 and above.
Regarding the daily internet usage period, it was observed that 7.7% of the respondents spend
less than 1 hour which were the minorities. Respondents spending between 2 4 hours made
up 34.3%, the highest among the group proceeded by 27.7% of respondents who use 5 7
hours. The remaining respondents 30.3%, spend more than 8 hours daily on the internet. The
last question was about the internet usage purpose. A high percentage of respondents (43.3%)
use internet mainly for social networking and email while 12.7% of respondents use it for the
purpose of watching video. Reading news, online gaming and downloading file each
represented 9.7% of the total respondents feedbacks. The rest of the respondents which were
15%, selected other internet usage purposes that were not listed in the questionnaires.
4.2 Descriptive Statistics

Variable Mean Standard Deviation ()
Personal Values 3.65 0.7641
Service Quality 3.20 0.6579
Perceived Value 3.33 0.9046
Customer Satisfaction 3.20 1.0126
Behavioural Intention 2.64 0.7392
Table 4: Descriptive statistics
The mean of personal values was 3.65 (=0.7641) whereas for service quality it was 3.20
(=0.6579). Perceived value scored a mean of 3.33 (=0.9046) while the mean of customer
satisfaction was 3.20 (=1.0126). A mean of 2.64 (=0.7392) was obtained for behavioural
intention.
31
4.3 Pearson Correlation
Variable Personal Values Perceived Value Customer Satisfaction Service Quality
Perceived Value 0.277**

0.270** 0.722**
Customer Satisfaction
0.219** 0.547** 0.532**

Service Quality
0.133* 0.507** 0.604** 0.450**

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

*. Correlation is significant at the 0.05 level (2-tailed).
Table 5:Pearson correlation
The correlation coefficient between perceived value and personal values was 0.277. As for
the association between customer satisfaction and personal values, R value of 0.270 was
noted. Interaction of perceived value with customer satisfaction produced the highest R value
of 0.722. Alternatively, correlation coefficient of 0.219 was obtained through the relationship
between service quality and personal values. The correlation from the interaction of
perceived value and service quality resulted a value of 0.547. Relationship between customer
satisfaction and service quality was indicated by R value of 0.532. Lowest R value of 0.133
was obtained from the interaction of behavioural intention and personal values. The
correlation coefficient of behavioural intention and perceived value was 0.507. As for the
association of behavioural intention and customer satisfaction, it produced R value of 0.604.
The link between behavioural intention and service quality was indicated through the
correlation coefficient of 0.450.
32
4.4 Hierarchical Multiple Regression
Standardized Coefficients Beta
Variables
Step 1 Step 2 Step 3
Independent:
Personal Values -0.026
Service Quality 0.249*
Perceived Value 0.378*

Mediator: Customer Satisfaction 0.163*
Indirect Relationship:
Personal Values and Customer Satisfaction -0.173
Service Quality and Customer Satisfaction -0.007
Perceived Value and Customer Satisfaction -0.260

R Square 0.300 0.318 0.338
Adjusted R Square 0.293 0.309 0.322
R Square Change 0.300 0.018 0.020
F Change 42.302 7.889 2.891
Significance of F Change 0.000 0.005 0.036
Durbin Watson 2.110

Dependent variable: Behavioural Intention
*. Regression is significant at the 0.05 level.
Table 6: Hierarchical multiple regression
Based on Table 6, service quality and perceived value were found to be positive predictors of
behavioural intention. Besides, customer satisfaction was also proven as the mediator in this
study. The goodness of fit of the model can be examined through the changes in the
statistical value for example R Square and F Change during the three steps.
4.5 Summary of Hypotheses Testing
Three hypotheses were analysed using the hierarchical multiple regression and the following
table summarised the hypotheses testing:
Hypothesis Result
Rejected
indirectly (mediated by customer satisfaction)
33
H2: Service quality is significantly related to behavioural intention both directly and Partially
indirectly (mediated by customer satisfaction) accepted

H3: Perceived value is significantly related to behavioural intention both directly and Partially
indirectly (mediated by customer satisfaction) accepted

Table 7: Summary of hypotheses testing
4.5.1 Hypothesis 1: Personal values are significantly related to behavioural intention
both directly and indirectly (mediated by customer satisfaction)
Personal values were found not to be statistically significant related to behavioural intention.
Even with the inclusion of customer satisfaction as a mediator, the interaction between
personal values and behavioural intention is still not significant. This result is not totally
unexpected as it supported the findings of Jee and De Run (2013) which also revealed that
there was no significant impact in customer satisfaction and behavioural intention by personal
values. Still on Jee and De Run (2013) research, it was reflected that the indirect relationship
between personal values, customer satisfaction and behavioural intention was only significant
after it was moderated by sales promotion technique preferences.Personal value itself were an
extremely subjective abstract and difficult to measure. Majority of the existing literature
supported that personal values are hypothesised to only have an indirect effect on customer
behaviour through attitude (Homer and Kahle, 1988). Shim and Eastlick (1998) studies
revealed that even though attitude toward a shopping mall has direct influence on shopping
mall behaviour, the relationship between these two constructs was relatively weak. In
addition, Durvasula, Lysonski & Madhavi (2011) results showed that personal values do have
an impact on satisfaction and behavioural intention, but the effect was moderate and in some
cases not consistent across higher education service in United States and India. These authors
suggested that personal values even though do operate on some of the outcomes, it should be
seen in a more specific context.Therefore, it is inferred that the interaction between personal
34
value, customer satisfaction and behavioural intention is highlyinconsistent as it depends on
the nature of the research.
Besides that, Lages and Fernandes (2005) studies pointed out that among the three
components of service personal values namely service value to social integration and service
value to peaceful life were associated with loyalty but for service value to social recognition,
it was not significantly related with loyalty. The lack of significance of service value to
social recognition possibly affects the overall significance of service personal values towards
behavioural intention. Alternatively, Kotler and Armstrong (2004) stated that a luxury
product or service tends to have some impact on individuals personal values because it often
requires deep consideration and thought on the monetary aspect.It is viewed that Malaysian
consumers satisfaction on luxury product and service relied more on the status seeking
attribute where they are often influenced by society perception (Phau and Yip, 2008). But in
this case, the study focused on the use of broadband service, a monthly subscription service
that does not belongs to the luxury category. Hence, it partly explains that there is no
difference in Malaysian consumers satisfaction and behavioural intention by personal values,
specifically for broadband service.
4.5.2 Hypothesis 2: Service quality is significantly related to behavioural intention
Service quality was proven to be significantly linked with behavioural intention. It is a
positive predictor of behavioural intention which means a high level of service quality would
result in positive customers behavioural intentions toward the broadband providers.This
outcome is consistent with Chow et al. (2007) studies which inferred that service quality was
associated with frequent patronage. Showing similar results, Dabholkar et al. (1996)
35
reported a positive relationship between perceived service quality and the possibility of
recommending a product or service.Howeverwith the presence of customer satisfaction as the
mediator, the interaction between service quality and behavioural intention was no longer
significant. In this case, the indirect relationship was much weaker than the direct
relationship. It is presumes that this deviation is probably due to the service setting used in
this study. Cronin et al. (2000) had mentioned that the relationship between service quality
and behavioural intention was industry-specific. They found that service quality was directly
related to behavioural intention in entertainment, fast food, spectator and participative sports
industries but insignificant in healthcare and long-distance carrier services.Moreover, Gan et
al. (2006) found that customer satisfaction does not make a significant contribution to
customer loyalty.
On the other side, Oliver (1993) expressed that customer satisfaction is evaluated by the
customers as an overall experience of the service in which service quality is just one of the
aspects. The opinion of Oliver (1993) is true since customer satisfaction relies on several
factors like customers emotions, social interactions and other experience based subjective
factors. Crompton and Love (1995) further stated that the two constructs are likely to be
positively correlated, but unlikely to be linear. For instance, high service quality in an airline
might not necessarily produce high customer satisfaction if there are presence of negative
emotionsrelated with the experience of the flight. This strongly suggests that emotion also
play a role in determining customer satisfaction. In Ladhari (2009) study who applied
emotional satisfaction, it was found that the direct impact of emotional satisfaction on
behavioural intention was much stronger than the service quality on behavioural
intention.These results support the findings of Yu and Dean (2001) research which revealed
that the emotional component of satisfaction was amore crucial predictor of loyalty than the
cognitive component of satisfaction. It was further argued that the inclusion of the emotional
36
component enhanced the variation explained in loyalty compared to the cognitive component
alone. As being mentioned previously, the customer satisfaction measurement used in this
study was solely based on the cognitive approach.Consequently, the exclusion of emotions
from customer satisfaction scale might explains why the interaction between service quality
and customer satisfaction is not significant on behavioural intention.
4.5.3 Hypothesis 3: Perceived value is significantly related to behavioural intention
Perceived value was identified to be statistically significant with behavioural intention. It
showed a positive relationship with behavioural intention which reflects that customers who
perceived the value of a product or service to be high will display behavioural intentions
toward the firm. This finding wassupported by Petrick (2004) research in the cruise line
service which revealed that perceived value was indeed a reliable predictor of behavioural
intention. In addition, relationship between perceived value and behavioural intention also
being proven in context oflife insurance service (Durvasula et al., 2004). Ryu et al., (2010)
also further confirmed perceived value as determinant of customer behavioural intention in
their studies.
Although there a number of research pointed out that interaction between perceived value and
behavioural intention is mediated by customer satisfaction (Gill, Byslma and Ouschan,
2007), the outcome of this study showed otherwise. The mediating effect of customer
satisfaction on the relationship of perceived value and customer satisfaction has caused the
entire interaction to be insignificant. It was discussed in the previous section that the
mediating effect of satisfaction is different not only in the consumption context, but also the
specified outcome variables. For instance, Lam et al. (2004) found that customer satisfaction
fully mediated the relationship between perceived value and word of mouth, but only
37
partially mediated the relationship between perceived value and patronage intention. The
present study was conducted based on the broadband service and the applied dependent
variable was anoverall behavioural intention (combination of willingness to pay more, word
of mouth and switching behaviour) instead of specific behaviour. Apart from that, the
contradictory findings might be due to one-dimensional scale of perceived value employed in
this study which was the value for money instrument.The multi-dimensional scale of
perceived value was argued to be much better than the simple value for money scale in
explaining consumer behavioural intention (Sweeney and Soutar, 2001). Thus, the
application of single dimensional scale of perceived value might play a role in affecting the
indirect relationship between perceived value, customer satisfaction and behavioural
intention.
Meanwhile, Anderson and Srinivasan (2003) emphasised that even satisfied customers are
unlikely to patronise the same service providers if they feel that they are not getting the best
value for their money. Broadband service in Malaysia is known to be expensive compared to
its neighbouring countries as being highlighted by Kwang (2010). Besides that, the virtual
monopolisation of TM in the broadband sector might provide an explanation regarding the
failure of interaction between perceived value and customer satisfaction on behavioural
intention. In this situation, it is highly suggests that dissatisfied customers due to low
perception of value toward the internet service provided by TM have no choice, but to
continue stay loyal to TM even if the price increase because of the lack of alternative
broadband provider.
CHAPTER 5: CONCLUSION
The results of the present study provide empirical evidence that service quality and perceived
value are directly related with behavioural intention in a positive interaction. As for personal
38
values, it does not have significant relationship with behavioural intention. Although
customer satisfaction was proven as a mediator, it failed to establish any significant indirect
relationship between any of the independent variable (personal values, service quality and
perceived value) with behavioural intention. Both service quality and perceived value are
undeniably important factors in affecting the behavioural intention of customers as proven in
the current study as well as previous research. Discussion concerning on personal values and
customer satisfaction did not play a significant role in the relationship with behavioural
intention is not being neglected as well. These findings are imperative in its own ways
which would be discussed separately in the managerial implications, limitation of research
and future research.
5.1 Managerial Implications
Service quality and perceived value are both vital factors for every broadband provider to
stay competitive. Broadband providers who manage to deliver excellent service quality as
well as high perceived value would result in customers displaying willingness to pay more,
positive word of mouth and stay loyal to the firms. These actions eventually lead to the
increase of profitability and market share of the broadband providers. Due to these
implications, broadband providers should always strive to provide the best possible service
quality to the customers. Each of the service quality dimension should be equally
emphasised without neglecting any of them. Sometimes, customers do not mind paying a
higher price to the same broadband providers due to its exceptional service quality. While
ensuring high profitability is always the one of the primary objectives of every organisation,
it should not be over emphasised to the extent of delivering service which is far overpriced.
It is highly recommended for broadband providers to deliver quality service which is price
reasonably as a way to ensure the customers perceive the value of the service as high and
worthy for the price they paid. This will eventuallypromotes positive word of mouth
39
communication among the customers which in turn might help to attract more potential
customers to the organisations. Although personal values and customer satisfaction may not
be very significant determinant of behavioural intention in the broadband service, these two
variables should not be totally disregarded as previous studies have established its
relationship with behavioural intention. Hence, ensuring customer satisfaction should still
remain as the objectives of broadband service provider together with providing high quality
and value service. As for personal values, it is strongly advisable for broadband providers to
further examine its relationship with customer satisfaction and behavioural intention.
5.2 Limitations of the Research
Conducting a perfect study is impossible since every research definitely has its own weakness
including the current study. Thus, the results from this study should be interpreted with
caution after considering all the present limitations. First, the samples obtained using the
convenience sampling might not be able represent the targeted population accurately due to
the possibility of having higher risk of sampling error. Referring to Table 3,49.7% of the
respondents were in between 21-25 years old, 33.7% of them were having Diploma or
equivalent qualification and 34.3% of respondents with gross income below RM 1,000. This
piece of information implies that these group of respondents may not be working adults. The
present study which involves behavioural intention like willingness to pay more and
switching intention would require working adults to be the ideal respondents. If the
respondents were undergraduate students, they may not be able to give accurate feedback
since they are most likely only the users, not the consumers who have use and pay for the
services. Secondly, the theory ofcustomer satisfaction in this study was narrowly
conceptualised as simply a cognitive outcome in which the emotional aspect of satisfaction
was ignored. In fact, emotional satisfaction has been proven as equally or even more
important than the cognitive satisfaction in certain cases. Last but not least, the service
40
quality measurement scales in the present study may not be able to fully evaluate the entire
quality of the broadband service due to the lack of study in this particularsector.
5.3 Future Research
For future studies, an appropriate sampling technique possibly probability sampling should be
used instead of convenience sampling for sample selection. Although it requires more time
and effort, probability sampling significantly reduces sampling error which would serve a
better representativeof the targeted population. Next, it is recommended to use
multidimensional scale for perceived value, which can also be used to incorporate the
construct of personal values as well. The multidimensional perceived value consists of
quality, monetary price, non-monetary price, reputation and emotional response.
Nevertheless, this multidimensional scale should be used thoughtfully to prevent overlapping
with other variables such as service quality and customer satisfaction. Besides that, the
conceptualisation of customer satisfaction should include both cognitive and affective
elements to signify a more comprehensive overall satisfaction. Finally, appropriate service
quality instruments should be utilised to assess the quality of broadband service.
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8.0 APPENDICES
8.1 Appendix I: Sample of Questionnaire
Business Research Questionnaire

BA (Hons) Business and Management (3+0)
Sir / Ms / Mdm /Dr.
60
Please answer all the questions in the questionnaire and return it to the respective enumerator.
This questionnaire will only take you less than 15 minutes to be completed. Thank you for
your participation in this survey.
FACTORS INFLUENCING CUSTOMER SATISFACTION AND FUTURE

BEHAVIOURAL INTENTION: A STUDY OF TELEKOM MALAYSIA (TM)
IN KUCHING, SARAWAK
Any information provided in this questionnaire will be treated as strictly
classified and confidential and will not be divulged to any other party.
No identity will be included within the final paper.
Student Name : Karmond Kho Xuan Boon
Student ID : 119047259
Academic Advisor : Mr Lau Wee Ming
61
SECTION A
Instruction:Please tick or fill in the most accurate answer.
1. Gender
Male
Female
2. Age
21-25 years old
26-30 years old
31-35 years old
36-40 years old
41 years old and above
3. Education Level (highest completed)

SPM
Certificate
Diploma/ Foundation/ A Level/ Matriculation/ STPM
Bachelor Degree
Master
PhD
Other, please specify: ________________
4. Marital Status
Single
Married
Widowed
Divorced
5. Ethnic/ Race
Malay
Chinese
Indian
Other, please specify: ________________
6. Gross Income
Below RM 1,000
RM 1,001- RM 2,000
RM 2,001- RM 3,000
RM 3,001- RM 4,000
RM 4,001- RM 5,000
RM 5,001 and above
62
7. How long do you use internet per day?
Less than 1 hour
2 to 4 hours
5 to 7 hours
Above 8 hours

8. What is the main purpose of you using the internet?
Social networking and email
Watching video
Reading news
Online gaming
Downloading file
Other, please specify:_________________

63
SECTION B
Instruction: Please indicate your opinion using the following scale towards the below
statements.
1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree

My life become more enjoyable and pleasurable with
1 the use of this internet service. 1 2 3 4 5
The use of this internet service helps me to gain more
2 social recognition. 1 2 3 4 5
It helps me to achieve a higher integration in my social
3 life with the use of this internet service 1 2 3 4 5
The use of this internet service helps me develop better
4 social relationships. 1 2 3 4 5
I become closer to my friends through the use of this
5 internet service. 1 2 3 4 5
It helps me to enhance my relationship with my family
6 through the use of this internet service. 1 2 3 4 5
I often experience problems with this internet service.
7 1 2 3 4 5
Internet speed (download and upload) is as promised by
8 service provider. 1 2 3 4 5
Browsing speed is fast.
9 1 2 3 4 5

1 I can access this internet service whenever I need.
1 2 3 4 5

1 The customer service centre interior design is attractive.
1 2 3 4 5

1 The facility of the customer service centre is up-to-date.
1 2 3 4 5

1 The employees appearances are neat.
1 2 3 4 5

1 The employees are courteous.
1 2 3 4 5

1 The employees give us special attention.
1 2 3 4 5

1 My requests are handled promptly.
1 2 3 4 5
The employees recommend suitable internet package
1
based on our needs. 1 2 3 4 5

1 Waiting times for their responses are satisfactory to me.
1 2 3 4 5
The employees adapt well to handle peak customer
1
traffic. 1 2 3 4 5
Employees are knowledgeable on their services which
2
makes me feel comfortable. 1 2 3 4 5
The employees provide adequate information about this
2
service. 1 2 3 4 5
The employees have sufficient technical knowledge on
2
their services. 1 2 3 4 5
The employees are aware of the latest internet service
2
package and promotion. 1 2 3 4 5

2 The employees provide error-free service.
1 2 3 4 5
Customer service centres location are convenient for
2
me. 1 2 3 4 5
Employees are responsive to my concerns or
2
complaints. 1 2 3 4 5
The employees quickly apologize when service
2
mistakes are made. 1 2 3 4 5
This internet service provider offers excellent overall
2
service. 1 2 3 4 5

2 This internet service is worth the money I paid.
1 2 3 4 5
This internet service provider delivers me great value as
3
compared to other service providers. 1 2 3 4 5

3 The internet service exceeded my expectation.
1 2 3 4 5
I am satisfied with the overall internet service.
3 1 2 3 4 5
I would continue to subscribe this internet service even
3
if its prices increase. 1 2 3 4 5
I would pay a higher price for the benefit I currently
3 receive from this service provider even though other
1 2 3 4 5
service providers offer it at lower price.
I would recommend this internet service to friends and
3
acquaintances. 1 2 3 4 5
I would complain to other customers if I experience a
3 1 2 3 4 5
problem with this internet service
I will not hesitate to complain directly to the service
3 provider if I experience a problem with this internet 1 2 3 4 5
service
In the near future I intend to intensify my efforts to find
3 1 2 3 4 5
a better internet service provider
I have thought very seriously to switch internet service
3 1 2 3 4 5
provider.
I have decided to switch to another internet service
4 1 2 3 4 5
provider that offers better service.
8.2 Appendix II: Table of Literature Review
Author Journ Title Summary
Y al
Wen-Bao Interna A study of The author explained
Lin 2 tional relations the difference between
Journa among the consumers
l of service expectation and
Comm quality perception of service
erce differences, quality on post-purchase
and post-purchase behaviour intentions. In
Manag behavior addition, it also covers
ement, intentions the impact of the
Vol. with consumers personality
19, personality traits and the
No. 2, traits, and organisations service
pp. service recovery strategy as a
137- recovery factor on post-purchase
157 strategy as behaviour intentions of
intervening consumers. Based on
variables the findings, it showed
that the smaller the
difference between
expectation and
perception of service
quality is, the more the
consumers will show
their loyalty in post-
purchase behaviour.

Festus Manag A typology The paper examined the
Olorunniw 2 ing analysis of possibility that the
o and Servic service typology of a service
Maxwell e quality, may determine its
K. Hsu Qualit customer quality. The results
y, satisfaction indicated that
Vol. and responsiveness,
16, behavioral tangibility, reliability,
No. 2, intentions in knowledge, and
pp. mass services accessibility aspects
106- contribute significantly
123 to service quality. It
was also noted customer
satisfaction influences
the impact of service
quality on behavioural
intentions.

Irini D. Manag After-sales The authors examined
Rigopoulo 2 ing service the effect of after-sales
u, Ioannis Servic quality services on
E. e as an customerssatisfaction
Chaniotaki Qualit antecedent as well as on their
s, y, of customer behavioural intentions,

Constantin Vol. satisfaction namely repurchase
e 18, The case of intention and word of
Lymperopo No. 5, electronic mouth (WOM). It was
ulos and pp. appliances found that After-sales
George I. 512- service quality affect
Siomkos 527 satisfaction, which in
turn affects behavioural
intentions.
Zhen Marke An empirical The authors investigated
Xiong 2 ting study of the antecedents and
Chen, Intelli relationship outcomes of the
Yizheng gence quality in a relationship between
Shi and & service providers and
Da-Hai Planni setting: consumers of a
Dong ng, a Chinese healthcare service, in
Vol. case Hong Kong. It was
26, revealed that service
No. 1, providers expertise,
pp. 11- empathy, likeability, and
25 communication
effectiveness
significantly influenced
relationship quality,
leading in turn to the
likelihood of re-
patronage and word-of-
mouth recommendation
Parves Qualit Antecedents The paper studied onthe
Sultan and 2 y and perception of students in
Ho Yin Assura consequences regard to critical
Wong nce in of antecedents, dimensions

Educat service and consequences of
ion quality in a service quality. Results
Vol. higher suggested that
21, education behavioural intention
No. 1, context: are found to have
pp. 70- A qualitative indirect relationships
95 research with perceived service
approach quality mediated
through satisfaction and
trust.
Antreas Europ Behavioural At first, the authors
Athanassop 2 ean responses to explained in details the
oulos, Journa customer concepts of service
Spiros l of satisfaction: quality, customer
Gounaris Marke an satisfaction and
and Vlassis ting, empirical behavioural responses.
Stathakopo Vol. study The results reflected
ulos 35, that customer
No. satisfaction significantly
5/6, , influences on
pp. behavioural responses.
687- It was also noted that
707 customer with high
satisfaction will more
likely to stay with the
existing service
provider.

Srinivas Journa Beyond This paper aim to
Durvasula, 2 l of service investigate how
Steven Servic attributes: do personal values operate

Lysonski es personal in the evaluation of
and A.D. Marke values higher education
Madhavi ting, matter? services. Through the
Vol. findings, personal
25, values has impact on
No. 1 satisfaction, loyalty and
pp. recommendation.
3346
Lisa Europ Causes and The study provide
Watson and 2 ean consequences review of emotions
Mark T. Journa of literature as it pertains
Spence l of emotions on to cognitive appraisals
Marke consumer and consumption
ting, behavior: behaviours. Four
Vol. A review and appraisals which were
41, integrative outcome desirability,
No. cognitive agency, fairness and
5/6, appraisal certainty were identified
pp. theory as capable displaying
487- specific emotions and
511 their effects on
consumer behaviour.

Anthony British Consumer This research
Worsley 2 Food concerns investigate the
and Emma Journa about food relationships between
Lea l and health consumers food
Vol. Examination concerns and their
110, of general personal values and
No. and specific demographic
11, relationships characteristics through a

pp. with personal survey. According to the
1106- values and outcome, personal
1118 demographics values, especially those
related to beauty and
nature, and devoutness
and tradition are related
to reported food
concerns, both at a
moderate level.
Jochen Interna Consumer The authors examined
Wirtz and 2 tional responses to how the three
Anna S. Journa compensation dimensions of fairness
Mattila l of , speed of (distributive, procedural
Servic recovery and interactional)
e and apology influence consumers
Industr after a service attributional processes,
y failure their post-recovery
Manag satisfaction and
ement, behavioural responses
Vol. in the context of service
15, failure. From the results,
No. 2, it implied that service
pp. recovery satisfaction
150- acted as a full mediator
166 between service
recovery attributes
(compensation,
recovery speed and
apology) and
behavioural intentions.

Jee Teck Asia Consumers This research focused
Weng and 2 Pacific personal on how the Malaysian
Ernest Journa values and consumers personal
Cyril de l of sales values and sales
Run Marke promotion promotion preferences
ting preferences influence on their
and effect on overall behavioural
Logisti behavioural intention and purchase
cs, intention satisfaction. Based on
Vol. and purchase the findings, it revealed
25, satisfaction that sales promotion
No. 1, for technique preferences
pp. 70- consumer will have an impact on
101 product consumers behavioural
intention and purchase
satisfaction whereas
there is no significant
impact in consumers
purchases satisfaction
and behavioural
intention by personal
value.

Andreas Journa Customer The paper analysed in
Eggert and 2 l of perceived details on both the
Wolfgang Busine value: a concept of customer
Ulaga ss & substitute for perceived value and
Industr satisfaction in satisfaction through
ial business constructed models.
Marke markets? The findings revealed
ting that customer perceived

Vol. value is a complement
17 No. not a substitute for
2/3, customer satisfaction.
pp.
107-
118
Donna Interna Customer The study investigated
Gill, Brett 2 tional perceived the impact of customer
Byslma Journa value in a perceived value on
and Robyn l of cellar door behavioural intentions.
Ouschan Wine visit: the Results implied that
Busine impact on perceived value has a
ss behavioural positive impact on the
Resear intentions behavioural intentions
ch, of cellar door visitors
Vol. with overall satisfaction
19, partially mediating the
No. 4, relationship.
pp.
257-
275
Phillip K. Europ Customer The authors proposed a
Hellier, 2 ean repurchase model to describe the
Gus M. Journa intention: extent to which
Geursen, l of A general customer repurchase
Rodney A. Marke structural intention is influenced
Carr and ting, equation by seven important
John A. Vol. model factors. The outcomes
Rickard 37, showed that The main
No. factor influencing brand
11/12, preference was

pp. perceived value with
1762- customer satisfaction.
1800
Cathy Marke Customer The authors illustrated
Parker and 2 ting satisfaction: the views and
Brian P. Intelli contrasting definitions of customer
Mathews gence academic and satisfaction from both
& consumers' the academic and
Planni interpretation consumer perspectives.
ng, s It was concluded that
Vol. satisfaction appears to
19, mean different things to
No. 1, different people.
pp. 38- Nonetheless, the most
44 common interpretations
were satisfaction as a
feeling and as some sort
of evaluation process or
can even be merely the
result of things not
going wrong.

Magnus Interna Customer This study examined on
Sderlund 1 tional satisfaction how customer
Journa and its satisfaction influences
l of consequences the three behavioural
Servic on customer variable actions. The
e behaviour results pointed out that
Industr revisited - differences in the form
y The impact of did exist. Furthermore,
Manag different the results showed that

ement, levels of different patterns
Vol. 9, satisfaction emerged for each
No. 2, on word-of- behavioural variable.
pp. mouth,
169- feedback
188 to the
supplier and
loyalty

Jean Journa Customer This paper illustrated
Donio, 2 l of satisfaction the links between
Paola Consu and loyalty in customer loyalty
Massari mer a digital attitude, customer
and Marke environment: loyalty behaviours and
Giuseppina ting, an empirical profitability. Customer
Passiante Vol. test trust and customer
23, commitment resulted
No. 7, the most important
pp. variables positively and
445 significantly related to
457 purchase behaviour with
the latter acted as the
main driver for
customer purchase
behaviour.

Jaspal Interna Customer The study was
Singh and 2 tional satisfaction conducted to determine
Gagandeep Journa and the factors that have an
Kaur l of universal impact on customer
Comm banks: an satisfaction. The

erce empirical findings revealed that
and study social responsibility,
Manag positive word-of-mouth,
ement, and reliability are more
Vol. significant compared to
21, employee
No. 4, responsiveness,
pp. appearance of tangibles,
327- services innovation and
348 competence in affecting
overall customer
satisfaction.

Huseyin Manag Customer The paper examined the
Arasli, 2 ing service relationship between
Salime Servic quality in the service quality,
Mehtap- e Greek customer satisfaction
Smadi and Qualit Cypriot and positive word of
Salih Turan y, banking mouth. The outcomes
Katircioglu Vol. industry showed thatreliability
15, had the highest effect on
No. 1, customer satisfaction,
pp. 41- which in turn had a
56 statistically significant
impact on the positive
word of mouth.
Gordon Journa Customer This research
H.G. 2 l of satisfaction investigated the
McDougall Servic with relationship of the three
and es services: elements namely the
Terrence Marke putting core service quality,
Levesque ting, perceived relational service
Vol. value into the quality and perceived
14, equation value towards the
No. 5, customer satisfaction.
pp. The results revealed that
392- core service quality and
410 perceived value were
the most significant
drivers of customer
satisfaction with
relational service
quality a less important
driver.

G.S. Journa Determinants The authors applied and
Sureshchan 2 l of of customer- made some
dar, Servic perceived modifications on the
Chandrase es service SERVQUAL instrument
kharan Marke quality: a to identify the factors
Rajendaran ting, confirmatory influencing the
and R.N. Vol. factor customer-perceived
Ananthara 16, analysis service quality. From
man No. 1, approach the findings, five
pp. 9- aspects namely core
34 service, tangibility,
social responsibility,
human element and
systemisation were
known as the
determinants of
customer perceived
service quality.

Pavlos A. Journa Determinants This paper examined the
Vlachos 2 l of of influence of seven
and Adam Servic behavioural service quality
P. es intentions in determinants on overall
Vrechopoul Marke the service quality
os ting, mobile perceptions through a
Vol. internet qualitative research
22, services design. The study
No.4, market found that content
pp. quality, contextual
280 quality, device quality,
291 connection quality and
privacy concerns have a
strong positive
influence on service
quality perceptions. On
top of that, service
quality, value and
satisfaction have a
simultaneous direct
effect on behavioural
intentions.

Josee Interna Effects of The paper generalises
Bloemer 2 tional personal both models into a new
and David Journa values on value disparity-
Dekker l of customer disconfirmation model.
Bank satisfaction - The results of the study
Marke An empirical best support the value
ting test of the disconfirmation model.
Vol. value percept Furthermore, the paper
25 No. disparity showed that the external
5, model and the dimension of values is
pp. value more instrumental in
276- disconfirmati predicting satisfaction
291 on model than the internal
dimension.

Anand K. Journa Examining The paper adopted the
Jaiswal and 2 l of mediating structural equation
Rakesh Servic role of modelling approach
Niraj es attitudinal which included the
Marke loyalty satisfaction, attitudinal
ting, and nonlinear loyalty and behavioural
Vol. effects in intentions to test the
25, satisfaction- proposed hypotheses.
No. 3, behavioral Findings supported the
pp. intentions fully mediating role of
165 relationship attitudinal loyalty in the
175 relationship between
satisfaction and

Miguel A. Journa Loyalty, The paper examined the
Moliner 2 l of perceived role played by post-

Servic value purchase perceived
e and value and relationship
Manag relationship quality in the
ement quality explanation of loyalty
Vol. in healthcare behaviour. Outcomes
20, services suggested that perceived
No. 1, value exercises a
pp. 76- significant influence
97 over consumer
satisfaction which was
the antecedents of
loyalty.
Muslim Clinic Hospital The study investigated
Amin and 2 al service hospital service quality
Siti Zahora Gover quality and its and its effect on patient
Nasharuddi nance: effects on satisfaction and
n An patient behavioural intention.
Interna satisfaction It was indicated that
tional and the establishment of
Journa behavioural higher levels of hospital
l, intention service quality will lead
Vol. customers to have a
18, high level of satisfaction
No. 3, and behavioural
pp. intention.
238-
254
Miguel A. Europ Perceived The research studied on
Moliner, 2 ean relationship the formation of a
Javier Sa Journa quality consumers attitude
nchez, l of and post- towards a service

Rosa M. Marke purchase provider, and how it
Rodrguez ting, perceived related to the perceived
and Lus Vol. value - An relationship quality and
Callarisa 41, integrative perceived value of a
No. framework purchase. The results
11/12, show that the
pp. consumers satisfaction
1392- is the main basis for
1422 perceived relationship
quality.

Riadh Librar Perceived The study determined
Ladhari 2 y service the relationships
andMiguel Manag quality, between perceived
Morales ement, perceived service quality,
Vol. value and perceived value, and
29, recommendat recommendation in the
No. ion: public library setting. It
4/5, A study was found that there
pp. among was a strong
352- Canadian relationship between
366 public library perceived service value
users and recommendation.

Philipp E. Journa Perceived This paper provided a
Boksberger 2 l of value: a literature review and up
and Lisa Servic critical to date concepts and
Melsen es examination measures undertaken in
Marke of the research on
ting, definitions, perceived value.
Vol. concepts and Findings revealed that
25, measures for perceived value is

No. 3, the neither a simple trade-
pp. service off between quality and
229 industry price nor merely an
240 outcome of any other
single factor. It can be
stated that the perceived
value of services is a
combined assessment of
consumers perception
of benefits and
sacrifices, for a variety
of perceived value
dimensions with
original behavioural
intentions and customer
satisfaction playing a
role in overall
evaluation.

Yuanfeng Interna Personal The authors analysed on
Cai and 2 tional values and how personal values
Randall Journa mall influence the shopping
Shannon l of shopping behaviour of Chinese
Retail behaviour - consumers and also
& The proposed shopping
Distrib mediating intention as an
ution role of additional mediator that
Manag intention enhances the value-
ement, among behaviour link. Based
Vol. Chinese on the results, Chinese
mall shoppers are more

40, consumers likely to be influenced
No. 4, by self-transcendence
pp. and self-enhancement
290- values. Furthermore,
317 shopping intention was
found to improve the
predictive power of
consumers attitude
toward mall attributes in
terms of shopping
frequency and money
spent in the mall.

Dong-Mo Asia Personal The study focused on
Koo, Jae- 2 Pacific values as the motivational effects
Jin Kim, Journa underlying of personal values on
and Sang- l of motives of benefits, attributes, and
Hwan Lee Marke shopping re-patronage intention
ting online in the context of online
and shopping. A personal
Logisti value of social
cs, affiliation motivates
Vol. customers to seek
20, hedonic and utilitarian
No. 2, benefits, whereas a
pp. personal value of self-
156- actualisation produces
173 motivation to seek only
utilitarian benefits. The
seeking of hedonic and
utilitarian benefits leads
customers to evaluate
certain attributes of
online stores product
assortment, information
quality, and after-sales
service.

Uwe Peter Manag Predictors of The purpose of the
Kanning 2 ing customer study was toascertain
and Nina Servic satisfaction: the best predictors of
Bergmann e testing the customer satisfaction by
Qualit classical comparing the variables
y, paradigms of two classical
Vol. paradigms: the
19, disconfirmation model;
No. 4, and Lockes model of
pp. general satisfaction. The
377- study revealed that the
390 inclusion of
importance in Lockes
model does not provide
a better prediction of
satisfaction than the
variables of
performance and
expectation in the
disconfirmation model
Susan H.C. Asia Relationship This paper examined the
Tai 2 Pacific between the relationship between the
Journa personal personal values and
l of values and shopping orientation of
Marke shopping working adults in

ting orientation of Shanghai, Taipei, and
and Chinese Hong Kong. Results
Logisti consumers revealed that Chinese
cs, consumers shared
Vol. similar personal values
20, but differences were
No. 4, found in their shopping
pp. orientation. Among the
381- personal values, self-
395 actualisation played a
major role in six of the
eight shopping
orientations. It was
noticed that
personalised shopping,
advertised specials, and
shopping for self-
satisfaction were the
three major shopping
orientations that were
closely related to
personal values.

Christophe Journa Satisfaction The study focused on
r White 2 l of emotions and the discussion of the
and Yi- Servic consumer link between
Ting Yu es behavioral satisfaction emotions
Marke intentions and behavioural
ting, intentions. Findings
Vol. indicated a positive
19, statistically significant

No. 6, relationship between
pp. behavioural intentions
411 directional emotions
420 and consumer
complaining behaviour
was established through
correlation analysis.

Charlene Journa Service The authors proposed
Pleger 2 l of intangibility that consumer
Bebko Servic and its expectations for service
es impact on quality varied according
Marke consumer to the level of
ting, expectations intangibility of the
Vol. of service service. The results
14, quality showed that as the
No. 1, intangibility of the
pp. 9- process and outcome of
26 a service increase, the
consumers' expectations
of quality also increase.
As the desired
expectations increase,
there is a greater chance
that the provider will
not be able to meet
them.

Albert Europ Service The author proposed a
Caruana 2 ean loyalty The mediational model that
Journa effects of links service quality to

l of service service loyalty through
Marke quality and customer satisfaction.
ting, the mediating The findings supported
Vol. role of the hypothesis that
36 No. customer customer satisfaction
7/8, satisfaction played a mediating role
pp. in the effect of service
811- quality on service
828 loyalty.

Pham Ngoc Interna Service The authors employed
Thuy and 2 tional personal the concept of service
Le Nguyen Journa values and personal values to
Hau l of customer predict customer
Bank loyalty - satisfaction and loyalty
Marke A study of in the context of
ting, banking banking services. With
Vol. services in a customer satisfaction as
28, transitional a partial mediating
No. 6, economy construct, the results
pp. implied that service
465- personal values can
478 explain a significant
part of customer
satisfaction and a
substantial part of
customer loyalty.

Bo Manag Service This study focused on
Edvardsson 2 ing quality: the role of customers
Servic beyond emotions in service

e cognitive experiences. Six
Qualit assessment propositions related to
y, service experiences and
Vol. the role of emotions in
15, customer-perceived
No. 2, service quality were
pp. formed based on the
127- findings.
131
Ioannis E. Manag Service The paper studied the
Chaniotaki 2 ing quality effect effect of service quality
s and Servic on dimensions on
Constantin e satisfaction satisfaction and word of
e Qualit and word of mouth. It was observed
Lymperopo y, mouth in that the only service
ulos Vol. the health quality dimension that
19, care industry directly affects WOM,
No. 2, is empathy. In
pp. addition, empathy
229- affects
242 responsiveness,
assurance and
tangibles which in
turn have only an
indirect effect to WOM
through satisfaction.
John C. Manag Service The discussions
Groth and 1 ing quality: illustrated the perceived
Richard T. Servic perceived quality and value of a
Dye e value, service from customer
Qualit expectations, perspective, and the role

y, shortfalls, and of expectations,
Vol. 9, bonuses shortfalls, and bonuses
No. 4, in the valuation process.
pp. It was concluded that
274- shortfalls and bonus
285 effects have residual
effects on future
perceptions of customer
expectations towards
service value.

Albert Europ Service The concept of service
Caruana, 2 ean quality and quality, satisfaction and
Arthur H. Journa satisfaction - value are discussed
Money and l of the intensively in the study.
Pierre R. Marke moderating The results suggested
Berthon ting, role of value that the effect of quality
Vol. on satisfaction is not
34 No. just direct but is also
11/12, moderated by value.
pp.
1338-
1352.
Riadh Manag Service The paper studied the
Ladhari 2 ing quality, constructs of service
Servic emotional quality, emotional
e satisfaction, satisfaction, and
Qualit and behavioural intention in
y, behavioural the hospitality industry.
Vol. intentions: It was confirmed that
19, A study in the service quality exerts

No. 3, hotel industry both direct and indirect
pp. effects (through
308- emotional satisfaction)
331 on behavioural
intentions.
Gour C. Manag Service This paper examined the
Saha and 2 ing quality, relationships among
Theingi Servic satisfaction, service quality,
e and satisfaction, and
Qualit behavioural behavioural intentions
y, intentions - among the passengers of
Vol. A study of three low-cost carriers
19, low-cost (LCCs) airline services
No. 3, airline in Thailand. Findings
pp. carriers in revealed that the order
350- Thailand of importance of the
372 dimensions of service
quality tested here is:
flight schedules; flight
attendants; tangibles;
and ground staff.
Passenger satisfaction
towards service quality
was found to be
contributing to the

Richard A. Journa Service The author explained
Spreng, 1 l of recovery: that overall satisfaction
Gilbert D. Servic impact on in a service failure
Harrell and es satisfaction situation is determined

Robert D. Marke and intentions by two factors namely
Mackoy ting, the outcome of the
Vol. 9, original service
No. 1 encounter based on
specific service
attributes, and attributes
associated with the
service recovery
process. The findings
reflected that service
recovery process
variables have a
relatively greater effect
on overall satisfaction
and behavioural
intentions compared to
original service
outcome.

Margee Journa The The authors examined
Hume and 2 l of consequence the relations between
Gillian Servic of appraisal appraisal emotion,
Sullivan es emotion, service quality,
Mort Marke service perceived value and
ting, quality, customer satisfaction on
Vol. perceived repurchase intention.
24, value and Results showed that
No. 2, customer repurchase intention is
pp. satisfaction largely based on
170 on repurchase satisfaction mediated by
182 perceived value.

intent in the
performing
arts

Haksik Journa The The paper studied on
Lee, 2 l of determinants the three issues in the
Yongki Lee Servic of perceived area of perceived
and Yongki es service service quality.
Lee Marke quality and its According to the results,
ting, relationship it indicated that
Vol. with perceived service
14, satisfaction quality was an
No. 3, antecedent of
pp. satisfaction. It also
217- revealed that tangibles
231 appeared to be a more
important factor in the
facility/equipment-
based industries,
whereas responsiveness
is a more important
factor in the people-
based industries.

Kisang Interna The influence The study investigated
Ryu, Hye- 2 tional of the quality the impact of three
Rin Lee Journa of the elements of foodservice
and Woo l of physical quality dimensions
Gon Kim Conte environment, (physical environment,
mpora food, and food, and service) on
ry service on restaurant image,

Hospit restaurant customer perceived
ality image, value, customer
Manag customer satisfaction, and
ement, perceived behavioural intentions.
Vol. value, The results proved that
24, customer customer perceived
No. 2, satisfaction, value was a significant
pp. and determinant of customer
200- behavioral satisfaction, and
223 intentions customer satisfaction
was a significant
predictor of behavioural
intentions.
G.S. Journa The The relationship
Sureshchan 2 l of relationship between service quality
dar, Servic between and customer
Chandrase es service satisfaction was
kharan Marke quality and examined in this paper.
Rajendran ting, customer It was proven that
and R.N. Vol. satisfaction service quality was
Ananthara 16, a factor positively linked to
man No. 4, specific customer satisfaction.
pp. approach
363-
379
Amy Wong Manag The role of This paper empirically
2 ing emotional examined the role of
Servic satisfaction in emotional satisfaction in
e service service encounters. The
Qualit encounters results showed that
y, service quality was

Vol. positively associated
14, with
No. 5, emotionalsatisfaction,
pp. which was positively
365 associated with both
376 customer loyalty and
relationship quality.
David Journa The role of The study focused on
Martin, 2 l of emotion in the role of emotions in
Martin Servic explaining determining customer
ONeill es consumer satisfaction and future
and Susan Marke satisfaction behavioural intention.
Hubbard ting, and future Emotionally-based
and Adrian Vol. behavioural satisfaction was found
Palmer 22, intention to be a better predictor
No. of future behavioural
3,pp. intention than cognitive
224 measures of satisfaction.
236
Table 8: Literature review

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BUSINESS RESEARCH DISSERTATION: UGB 301

BA (Hons) Business & Management 3+0

Examining the relationship between personal values,

Signed and Date

1.1 Importance of Broadband Sector......................................................................... 2

1.2 Background of Telekom Malaysia (TM)............................................................. 3

1.3 Research Objective.............................................................................................. 3

1.4 Significance of Research......................................................................................4

1.5 Theoretical Framework........................................................................................ 5

2.0 Literature Review.............................................................................................................6

2.1 Personal Values.................................................................................................... 6

2.2 Service Quality.....................................................................................................7

2.3 Perceived Value................................................................................................... 11

2.4 Customer Satisfaction.......................................................................................... 12

2.5 Behavioural Intention...........................................................................................15

2.6 Relationship between personal values, customer satisfaction and

2.7 Relationship between service quality, customer satisfaction and

2.8 Relationship between perceived value, customer satisfaction and

3.0 Research Methods............................................................................................................21

3.1 Research Design...................................................................................................21

3.3 Sample Size......................................................................................................... 22

3.5 Data Collection.................................................................................................... 23

3.5.1 Primary Data......................................................................................... 23

3.5.2 Secondary Data..................................................................................... 24

3.6 Measurement Scale.............................................................................................. 24

3.7 Analysis Tools..................................................................................................... 25

3.7.2 Descriptive Statistics.............................................................................26

3.7.3 Pearson Correlation...............................................................................26

3.7.4 Hierarchical Multiple Regression......................................................... 27

4.0 Data Analysis and Findings............................................................................................. 28

4.1 Frequency Analysis..............................................................................................28

4.2 Descriptive Statistics............................................................................................30

4.3 Pearson Correlation..............................................................................................30

4.4 Hierarchical Multiple Regression........................................................................ 31

4.5 Summary of Hypotheses Testing......................................................................... 32

4.5.1 Hypothesis 1: Personal values are significantly related to

4.5.2 Hypothesis 2: Service quality is significantly related to

4.5.3 Hypothesis 3: Perceived value is significantly related to

5.2 Limitations of the Research................................................................................. 38

5.3 Future Research................................................................................................... 39

8.1 Sample of Questionnaire......................................................................................58

8.2 Table of Literature Review.................................................................................. 64

Table 1 Summary of measurement scales 25

Table 2 Direction and strengthof Pearson correlation 26

Table 4 Descriptive statistics 30

Table 5 Pearson correlation 30

Table 6 Hierarchical multiple regression 31

Table 7 Summary of hypotheses testing 32

Table 8 Literature review 64

Figure 1 Theoretical framework 5

without their feedbacks, I would not be able to complete the study.

organisations together with profit maximisation. Customer satisfaction is argued to be highly

understanding of the consumer behaviour.

on the firms performance. An excellent service quality enables the organisation to

quality, perceived valueis stated as an antecedent of satisfaction and behaviour intention

1.1 Importance of Broadband Sector

currently there is clearly an absence of post-purchase behaviour studies on this field as

adoption of the service.Meanwhile, thebroadband sector is expanding due to the use of

have higher tangibility characteristics.

at Kuala Lumpur, the capital of Malaysia. Initially, it was established as Telecommunication

Pacific ICT Award (Telekom Malaysia, 2013).

1.3 Research Objective