Computers in Human Behavior 25 (2009) 887–896

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Computers in Human Behavior

journal homepage: www.elsevier.com/locate/comphumbeh

The relationships among service quality, perceived value, customer satisfaction,

and post-purchase intention in mobile value-added services
Ying-Feng Kuo a,*, Chi-Ming Wu b, Wei-Jaw Deng c
a
Department of Information Management, National University of Kaohsiung, 700, Kaohsiung University Road, Kaohsiung 811, Taiwan
b
Institute of Economics and Management, National University of Kaohsiung, Kaohsiung 811, Taiwan
c
Graduate School of Business Administration, Chung Hua University, Hsinchu 300, Taiwan

a r t i c l e i n f o a b s t r a c t

Article history: The purposes of this study are to construct an instrument to evaluate service quality of mobile value-
Available online 11 April 2009 added services and have a further discussion of the relationships among service quality, perceived value,
customer satisfaction, and post-purchase intention. Structural equation modeling and multiple regres-
Keywords: sion analysis were used to analyze the data collected from college and graduate students of 15 major uni-
Mobile value-added services versities in Taiwan. The main findings are as follows: (1) service quality positively influences both
Service quality perceived value and customer satisfaction; (2) perceived value positively influences on both customer
Perceived value
satisfaction and post-purchase intention; (3) customer satisfaction positively influences post-purchase
Customer satisfaction
Post-purchase intention
intention; (4) service quality has an indirect positive influence on post-purchase intention through cus-
tomer satisfaction or perceived value; (5) among the dimensions of service quality, ‘‘customer service and
system reliability” is most influential on perceived value and customer satisfaction, and the influence of
‘‘content quality” ranks second; (6) the proposed model is proven with the effectiveness in explaining the
relationships among service quality, perceived value, customer satisfaction, and post-purchase intention
in mobile added-value services.
Ó 2009 Elsevier Ltd. All rights reserved.

1. Introduction content providers. These services include games, icons, ringtones,

Thanks to the fast growth of the mobile communication market,
mobile phones that used to be exclusively held by business persons
have become personal equipment closely integrated into every-
one’s daily life (Olla & Patel, 2002) and relatively more frequently
used than other mobile devices (Clarke, 2001). In Taiwan, due to
the lift of ban on mobile communication and the liberalization of
the communication industry, the penetration rate of mobile phone
has reached 110% in 2003 (DGT, 2003). Furthermore, the release of
mobile number portability (MNP) and the licensing of VoIP (voice
over internet protocol) phone numbers with a prefix of 070 in
2005 have dissolved the constraints set up by telecom service
providers and allowed consumers to have more options. As a
result, unable to rely solely on the conventional voice services,
telecom service providers have been seeking for other opportuni-
ties to increase their business revenue.
Mobile value-added services are digital services added to
mobile phone networks other than voice services in which the
contents included can be either self-produced by mobile telecom
service providers or provided through strategic alliances with
* Corresponding author. Tel.: +886 7 591 9513; fax: +886 7 591 9328.
E-mail address: fredkuo@nuk.edu.tw (Y.-F. Kuo).
messages, web browsing, SMS (short message service) coupons,
and electronic transaction. They can bring five values to consum-
ers: time-critical needs and arrangement, spontaneous needs and
decisions, entertainment needs, efficiency needs and ambitions,
and mobility-related needs (Anckar & D’Incau, 2002). Thus, mobile
value-added services will become new opportunities for telecom
service providers. However, mobile value-added services provided
by telecom service providers can be classified into four types,
namely information, communication, transaction, and entertain-
ment, and this classification applies to almost all the providers.
Although new services are being released at all times, whether
they are appealing to consumers and can induce positive post-pur-
chase intention after consumers have used them so as to effectively
increase revenue and sustainable development will be an impor-
tant issue for telecom service providers.
Previous studies of marketing have pointed out that the key of
corporate success and competitive advantage is the enhancement
of service quality, perceived value, and customer satisfaction
(Khatibi, Ismail, & Thyagarajan, 2002; Landrum & Prybutok,
2004; Patterson & Spreng, 1997; Wang, Lo, & Yang, 2004; Yang &
Peterson, 2004). As the number of studies of mobile telecom
service quality is still limited, and a definite set of measurement
indices for the service quality of mobile value-added services is

0747-5632/$ - see front matter Ó 2009 Elsevier Ltd. All rights reserved.
doi:10.1016/j.chb.2009.03.003
888 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896
not available, this study attempts to design a scale for measuring
the service quality of mobile value-added services and further
examines the relationships among service quality, perceived value,
customer satisfaction, and post-purchase intention to find out
which dimensions of service quality are significantly correlated
with perceived value and customer satisfaction. The result can pro-
vide valuable reference information for mobile value-added service
providers to manage their services and enhance their service
quality.
2. Literature review and hypothesis development
2.1. Service quality
Parasuraman, Zeithaml, and Berry (1985, 1988) conceived
that service quality is the difference between customers’ expec-
tation and their perceived performance of a service. Based on
this concept, Parasuraman et al. (1988) developed the SERVQUAL
model (including five dimensions, namely tangible, responsive-
ness, reliability, assurance, and empathy) to measure service
quality. This model has drawn attention from the academic
and the practical circles. However, many scholars have ques-
tioned about the conceptual framework and measurement meth-
od of this model. For instance, Cronin and Taylor (1992) pointed
out that using service quality performance (SERVPERF, i.e. the
perceived service in SERVUQAL) to measure service quality pro-
duces better results of reliability, validity, and predictive power
than using SERVQUAL. Some other studies (Boulding, Kalra, Rich-
ard, & Zeithaml, 1993; McAlexander, Kaldenberg, & Koenig,
1994; Parasuraman, Zeithaml, & Berry, 1994; Zeithaml, Berry, &
Parasuraman, 1996) also maintained that SERVPERF is more
accurate than SERVQUAL in the measurement of service quality,
and SERVQUAL can provide better diagnostic information. In the
studies of the information industry, similar findings have been
proposed (Landrum & Prybutok, 2004; Pitt, Watson, & Kavan,
1997; Van Dyke, Kappelman, & Prybutok, 1997), and Zeithaml,
Parasuraman, and Malhotra (2002) proposed that it is not neces-
sary to use customers’ expectation to measure the service qual-
ity of a website. Therefore, this study will directly use perceived
service quality to measure the service quality of mobile value-
added services.
In the research of website service quality, various measurement
dimensions have been proposed according to website properties.
Kuo (2003) put forth a virtual community service quality scale,
using advertising mail management, customer service manage-
ment, online quality and information safety, webpage design and
content, and extra function and service to evaluate the service
quality of a website. Yang, Cai, Zhou, and Zhou (2005) used usabil-
ity, usefulness of content, adequacy of information, accessibility,
and interaction to measure user’s perceived quality of information
presenting web portals. From the perspective of transaction pro-
cess, Bauer, Falk, and Hammerschmidt (2006) proposed eTran-
sQual (including five quality aspects, namely functionality/design,
enjoyment, process, reliability, and responsiveness) to measure
the quality of online shopping services. As to the quality of mobile
communication services, Chae, Kim, Kim, and Ryu (2002) used con-
nection quality, content quality, interaction quality, and contextual
quality to measure the information quality of mobile networking
services. Kim, Park, and Jeong (2004) examined the service quality
of mobile communication services in South Korea by call quality,
value-added services, and customer support. Based on the afore-
mentioned studies of website and telecom service quality, this
study further categorizes service quality factors into four dimen-
sions, including content quality, navigation and visual design,
management and customer service, and system reliability and con-
nection quality.
2.2. Perceived value
Customer’s perceived value can be defined from the perspec-
tives of money, quality, benefit, and social psychology. The Mone-
tary perspective indicates that value is generated when less is paid
(such as by using coupons or promotions) for goods (Bishop, 1984).
In other words, it is the concept of consumer surplus in economics;
perceived value is the difference between the highest price that
consumers are willing to pay for a product or a service and the
amount practically paid. According to the quality perspective, va-
lue is the difference between the money paid for a certain product
and the quality of the product (Bishop, 1984). That is, when less
money is paid for a high quality product, positive perceived value
will be created. The benefit perspective indicates that perceived
value is customers’ overall evaluation of the utility of perceived
benefits and perceived sacrifices (Zeithaml, 1988). In other words,
consumers may cognitively integrate their perceptions of what
they get and what they have to give up in order to obtaining goods.
However, the sacrifice means more than the money paid for a cer-
tain goods. Non-monetary costs, such as transaction cost, search
cost, negotiation cost, and time incurred during the purchase,
should also be included (Cronin, Brady, Brand, Hightower, &
Shemwell, 1997; Cronin, Brady, & Hult, 2000; Keeney, 1999; Zei-
thaml, 1988). The social psychology perspective points out that
the generation of value lies in the meaning of purchasing a certain
goods to the buyer’s community (Sheth, Newman, & Gross, 1991).
That is, goods carrying particular meanings (such as social eco-
nomic status and social culture) can increase the effect of social
self-concept (Sweeney & Soutar, 2001; Wang et al., 2004). In this
study, perceived value is the evaluation of the benefits of a product
or a service by customers based on their advance sacrifices and ex-
post perceived performance when they use mobile value-added
services.
In the research of the relationships between service quality and
customer’s perceived value in conventional retailing and online
shopping, most of the empirical studies have pointed out that ser-
vice quality will positively influence perceived value (Bauer et al.,
2006; Brady, Robertson, & Cronin, 2001; Cronin et al., 1997,
2000). Among the studies of the telecom industry, Wang et al.
(2004) and Turel and Serenko (2006), respectively, investigated
the mobile services in China and Canada and found out that service
quality is positively related to perceived value. Thus, Hypothesis 1
is proposed as follows:
H1: Service quality positively influences perceived value in
mobile value-added services.
2.3. Customer satisfaction
Customer satisfaction can be defined using the transaction-spe-
cific perspective or cumulative perspective. The transaction-spe-
cific perspective indicates that customer satisfaction is the
evaluation based on the recent purchase experiences (Boulding
et al., 1993). Compared with the transaction-specific perspective,
the cumulative perspective stresses overall evaluations, indicating
that evaluations of customer satisfaction should be based on all the
purchase experiences of the customer, disregarding any specific
purchase experience (Johnson & Fornell, 1991). Parasuraman
et al. (1988) argued that the cumulative perspective is more capa-
ble of evaluating the service performance of firms and more effec-
tive in predicting consumers’ post-purchase behaviors (Wang et al.,
2004). Among the studies of customer satisfaction in the informa-
tion industry, Lin and Wang (2006) revealed that customer satis-
faction of mobile commerce is consumer’s total response to the
purchase experiences in a mobile commerce environment. There-
 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896
fore, in this study, customer satisfaction is defined as the total con-
sumption perception of consumers when using mobile value-
added services.
Previous studies of conventional retailing have pointed out that
service quality positively influences customer satisfaction (Cronin
et al., 2000; Johnson & Fornell, 1991; Kristensen, Martensen, &
Gronholdt, 1999). Similar conclusions have been proposed in the
studies of website and online shopping (Bauer et al., 2006; Collier
& Bienstock, 2006; Hsu, 2006; Kuo, 2003; Lee & Lin, 2005; Park &
Kim, 2006). Among the studies of the telecom industry, Wang
et al. (2004) investigated the telecom industry in China, and Kim
et al. (2004), Tung (2004), and Turel and Serenko (2006) investi-
gated the mobile services in South Korea, Singapore, and Canada,
respectively. These studies also supported that service quality pos-
itively influences customer satisfaction. Thus, Hypothesis 2 is pro-
posed as follows:
H2: Service quality positively influences customer satisfaction
in mobile value-added services.
In the research of the relationships between perceived value
and customer satisfaction, empirical studies of the conventional
retailers discovered that perceived value positively influences cus-
tomer satisfaction in most cases (Cronin et al., 2000; Eggert &
Ulaga, 2002). A similar conclusion was also proposed in the studies
of online shopping websites and e-commerce (Hsu, 2006; Yang &
Peterson, 2004). In the aspect of the telecom industry, Wang
et al. (2004) (focusing the telecom industry in China), Tung
(2004) (SMS service in Singapore), Lin and Wang (2006) (mobile
commerce in Taiwan), and Turel and Serenko (2006) (mobile ser-
vices in Canada) all revealed that perceived value is positively re-
lated to customer satisfaction. Thus, Hypothesis 3 is proposed as
follows:
H3: Perceived value positively influences customer satisfaction
in mobile value-added services.
2.4. Post-purchase intention
Post-purchase intention is the tendency that consumers will
purchase the goods or services at the same shop and deliver their
use experiences to friends and relatives (Cronin et al., 2000; Wang
et al., 2004; Zeithaml et al., 1996). To evaluate post-purchase
intention, Zeithaml et al. (1996) adopted loyalty, switch, pay
more, external response, and internal response to assess the eval-
uation work. Boulding et al. (1993) used repurchase intention and
word of mouth (WoM) to evaluate consumer’s post-purchase
intention. Repurchase intention is the process of an individual
purchasing goods or services from the same firm (Hellier, Geur-
sen, Carr, & Rickard, 2003), and the reason for repurchase is pri-
marily based on past purchase experiences. Compared with
Fig. 1. Research model.
889
attracting new customers, enterprises can spend less on market-
ing to retain old customers (Zeithaml et al., 1996). WoM is a
process in which consumers who have used a certain product or
service pass their experiences through word of mouth to consum-
ers planning to purchase the product or service (Westbrook,
1987). Consumers who have not experienced or fully understood
the properties of a certain product or service may usually rely
on WoM to acquire information (Bansal & Voyer, 2000). Therefore,
compared with external marketing strategies, WoM is more
important and influential to customer’s attitude and behavior
(Harrison-Walker, 2001).
In previous studies, post-purchase intention has been fre-
quently used to inspect service quality (Alexandris, Dimitriadis, &
Markata, 2002; Boulding et al., 1993; Cronin & Taylor, 1992; Cronin
et al., 1997, 2000; Wang et al., 2004; Zeithaml et al., 1996), which
has been considered as significantly and positively influential to
post-purchase intention (Alexandris et al., 2002; Boulding et al.,
1993; Cronin et al., 1997, 2000; Zeithaml et al., 1996). In other
words, good service quality can induce positive post-purchase
intention of consumers. In the research of website and online
stores, Kuo (2003) pointed out that the service quality of online
community is positively related to continuous use, referral, and
loyalty. Lee and Lin (2005) found that the service quality of online
shops positively influences post-purchase intention. Thus, Hypoth-
esis 4 is proposed as follows:
H4: Service quality positively influences post-purchase inten-
tion in mobile value-added services.
In recent years, corporate managers and marketing staffs have
used long-neglected perceived value to evaluate consumer’s
post-purchase intention (Eggert & Ulaga, 2002; Lin, Sher, & Shih,
2005; Patterson & Spreng, 1997; Petrick, 2002; Wang et al.,
2004). In the discussion of the relationships between perceived va-
lue and post-purchase intention, many scholars considered per-
ceived value has direct effects on repurchase intention and WoM
(Eggert & Ulaga, 2002; Lin et al., 2005; Petrick, 2002; Wang et al.,
2004). Cronin et al. (2000) discovered in a cross-industrial research
that perceived value has positive effects on post-purchase inten-
tion. Wang et al. (2004) which focused on the telecom industry
in China also supported that perceived value positively influences
post-purchase intention. Lin and Wang (2006) also revealed that
perceived value positively influences loyalty in the research of mo-
bile commerce in Taiwan. Thus, Hypothesis 5 is proposed as
follows:
H5: Perceived value positively influences post-purchase inten-
tion in mobile value-added services.
Many studies of satisfaction have pointed out a positive rela-
tionship between customer satisfaction and post-purchase inten-
tion (Brady et al., 2001; Cronin et al., 2000; Johnson & Fornell,
890 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896
1991). Consumers with a higher level of satisfaction tend to have a
stronger intention to repurchase and recommend the purchased
product (Zeithaml et al., 1996). In other words, when customer sat-
isfaction is enhanced, repurchase can be more frequent. The extant
studies of e-retailing and online shopping also provided the similar
conclusions (Collier & Bienstock, 2006; Lee & Lin, 2005). Among the
studies of the telecom industry, Gerpott, Rams, and Schindler
(2001) and Tung (2004), respectively, examined the telecom indus-
try in Germany and SMS service in Singapore. They also concluded
that customer satisfaction is positively related to post-purchase
intention. Moreover, other studies of the mobile services in Canada
and China also supported this argument (Turel & Serenko, 2006;
Wang et al., 2004). Lin and Wang (2006) manifested a positive rela-
tionship between customer satisfaction and customer loyalty in
the study of mobile commerce in Taiwan. Thus, Hypothesis 6 is
proposed as follows:
H6: Customer satisfaction positively influences post-purchase
intention in mobile value-added services.
Fig. 1 shows the proposed model based on the above literature
review.
3. Research methodology
3.1. Questionnaire design
The questionnaire used in this study was designed according to
related literatures and users’ and experts’ opinions. After the draft
was completed, a pretest was performed on experts and users
familiar with mobile value-added services to modify items with
ambiguous expressions. Therefore, questionnaire respondents
could understand the questions in the formal survey and the con-
tent validity of the questionnaire could be ensured. The question-
naire was composed of two sections. The first section was
intended to understand each respondent’s basic personal data
and usage of mobile phone and value-added services. All the mea-
surement scales adopted were nominal. The second section mea-
sured the respondent’s perception of each construct in the
research model. All items were assessed using five-point Likert
scales from 1 = ‘‘strongly disagree” to 5 = ‘‘strongly agree”. Table
1 shows the research constructs and items included in the ques-
tionnaire. Operationalizations of the research constructs are as
follows.
3.1.1. Service quality
Service quality is operationalized using the SERVPERF model
due to the superiority of performance-based measures (Boulding
et al., 1993; Cronin & Taylor, 1992; Landrum & Prybutok, 2004;
McAlexander et al., 1994; Parasuraman et al., 1994; Pitt et al.,
1997; Van Dyke et al., 1997; Zeithaml et al., 1996, 2002). That is,
perceived service quality will be used to measure the service qual-
ity of mobile value-added services. The construct of service quality
was initially grounded on the four examining dimensions (content
quality, navigation and visual design, management and customer
service, and system reliability and connection quality) and was
measured by 24 items adapted from Chae et al. (2002), Kuo
(2003), Kim et al. (2004), and Yang et al. (2005), which dealt with
the service quality of mobile Internet, Website, mobile telecommu-
nication, and Web portal services. These items were also modified
to fit the mobile value-added services context.
3.1.2. Perceived value
Perceived value is trade-off between what customers receive,
such as quality, benefits, and utilities, and what they sacrifice, such
as price, opportunity cost, time, and efforts (Cronin et al., 1997,
2000; Keeney, 1999; Zeithaml, 1988). In this study, perceived value
is the evaluation of the benefits of a product or a service by cus-
tomers based on their advance sacrifices and ex-post perceived
performance when they use mobile value-added services. Per-
ceived value was measured by three-item measures adapted from
Cronin et al. (2000), Tung (2004), and Wang et al. (2004). These
items were also modified in wording appropriate for mobile va-
lue-added services context.
3.1.3. Customer satisfaction
Customer Satisfaction is customers’ cumulative impression of a
firm’s service performance (Johnson & Fornell, 1991). In terms of
mobile commerce, customer satisfaction is customer’s post-pur-
chase evaluation and affective response or feeling to the overall
product or service experience in a mobile commerce environment
(Lin & Wang, 2006). In this study, customer satisfaction is defined
as the total consumption perception of consumers when using mo-
bile value-added services. The items measuring customer satisfac-
tion were measured by three-item measures taken from previous
measures of the overall level of user satisfaction in mobile services
(Chae et al., 2002; Lin & Wang, 2006).
3.1.4. Post-purchase intention
Post-purchase intention is the tendency that consumers will
purchase the goods or services at the same shop and deliver their
use experiences to friends and relatives (Cronin et al., 2000; Wang
et al., 2004; Zeithaml et al., 1996). Items for the post-purchase
intention construct were measured by three-item measures
adapted from the previously validated inventory (Cronin et al.,
2000; Wang et al., 2004; Zeithaml et al., 1996) and all items were
modified to fit the mobile value-added services context.
3.2. Research subjects and sampling method
This study was conducted in Taiwan because the high penetra-
tion rate in mobile phone (110%) technologies and applications
(DGT, 2003). According to a 2006 survey released by FIND (Fore-
seeing Innovative New Digiservices, Taiwan), approximately
57.7% of Taiwanese people have used mobile value-added services
recently, and most of them (54.2%) are in the age group of 21–30.
Therefore, if this age group was selected for sampling, the result
would be representative to a certain degree of the population.
The above age group is mainly composed of college students and
graduate students, who may come from various regions of Taiwan.
Thus, under limited research resources, 15 universities were se-
lected, and undergraduates and graduate students in these univer-
sities were the respondents of this study. In the formal survey, we
requested teachers willing to assist our research to let us distribute
questionnaires in class and retrieve them after students have col-
lectively completed their answers. Before the formal survey, the
purpose of this study and notices were explained. Assistance was
further provided to the respondents during the survey to reduce
the occurrence of invalid response. A total of 1100 questionnaires
were distributed, and the response rate was 100%. Excluding the
respondents not in the selected age group (age 21–30) and those
who have never used mobile value-added services before, a total
of 387 valid questionnaires were obtained.
4. Data analysis, results, and discussion
4.1. Sample characteristics
Among the samples collected, female respondents (58.4%) were
the majority. In terms of education background, undergraduate
 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896 891

Table 1
Constructs and items included in the questionnaire.

Construct Item Measurement Reference

Service quality Content quality CQ1 This value-added service provides complete content Chae et al. (2002)
CQ2 This value-added service provides appropriate content Kuo (2003)
CQ3 This value-added service provides important content Kim et al. (2004)
CQ4 This value-added service provides fashionable content Yang et al. (2005)
CQ5 This value-added service provides regularly updated content
CQ6 I can fully understand the content provided
Navigation and BV1 I can easily use the value-added service Chae et al. (2002)
visual design BV2 This value-added service is displayed in a harmonious way Kuo (2003)
BV3 I can clearly understand the position of the screen I am currently browsing in the Kim et al. (2004)
navigation layout
BV4 The homepage of this value-added service can clearly present the location of Yang et al. (2005)
information
Management and MS1 This telecom company provides diversified value-added services Chae et al. (2002)
customer service MS2 This telecom company provides multiple tariff options Kuo (2003)
MS3 This telecom company provides good post-services Kim et al. (2004)
MS4 I can easily alter the contract of value-added services Yang et al. (2005)
MS5 When I have my contract altered, the telecom company still holds a friendly attitude
MS6 When any problem occurs, the telecom company can instantly cope with it
MS7 This telecom company provides a FAQ for value-added services
System reliability SC1 This value-added service system is stable Chae et al. (2002)
and connection quality SC2 Error seldom occurs to this value-added service system Kuo (2003)
SC3 This value-added service provides effective links Kim et al. (2004)
SC4 I can easily return to the screen previously browsed Yang et al. (2005)
SC5 It does not take too much time to download the information I need
SC6 It does not take too much time to load the links I click on
SC7 This value-added service system can instantly react to the data I input
Perceived value PV1 I feel I am getting good mobile value-added services for a reasonable price Cronin et al. (2000)
PV2 Using the value-added services provided by this telecom company is worth for me to Tung (2004)
sacrifice some time and efforts
PV3 Compared with other telecom companies, it is wise to choose this telecom company Wang et al. (2004)
Customer satisfaction CS1 I am satisfied with the value-added services provided by this telecom company Chae et al. (2002)
CS2 I think this telecom company has successfully provided value-added services Lin and Wang (2006)
CS3 This value-added service is better than expected
Post-purchase intention PI1 In the future, I will use the value-added services provided by this telecom company again Zeithaml et al. (1996)
PI2 In the future, I will recommend the value-added services provided by this telecom Cronin et al. (2000)
company to my relatives and friends
PI3 In the future, I will continue to use the value-added services provided by this telecom Wang et al. (2004)
company

students accounted for 89.1%. Most of them were the subscribers of
Chunghwa Telecom (54.5%). In terms of use time, over 90% (91.5%)
of them used value-added services for less than 30 min a month,
and nearly 60% (58.4%) of them used no more than 10 min a month.
Most of them (81.4%) spent no more than NT$200 on value-added
services a month. In terms of value-added services used, the top
five value-added services were ringtone (48.6%), multimedia mes-
sage service (MMS) (48.4%), picture download (28.4%), music
download (28.2%), and auto answering message (13.2%). Over the
past 6 months, MMS was the most frequently used service
(33.3%). Among the reasons why consumers did not use mobile va-
lue-added services, need-irrelevant (48.0%) was the main cause,
followed by lack of understanding about how to use them
(40.7%) and high cost (33.0%). (The above three questions allowed
multiple answers.) In order to assess the representativeness of the
sample, we collected and compared socio-demographical charac-
teristics and the most popular mobile value-added services of the
respondents with those reported in a survey of mobile data ser-
vices use in Taiwan conducted by FIND (2007), one of the leading
organizations for providing abundant and professional information
on Internet demographics and trends. Our comparison revealed a
close match between both samples.
4.2. Verification of the proposed model and hypotheses
This study employed structural equation modeling (SEM) to
verify the proposed model and hypotheses and used LISREL 8.52
as the analysis tool. The dimensions of service quality were ana-
lyzed first. Later, the research model was analyzed and verified.
For parameter estimation, maximum likelihood method was
adopted. In the model fitness test, measurement model test and
structural model test were used.
4.2.1. Measurement model of service quality
The exploratory factor analysis (EFA) was performed to purify
the scale of service quality in the hope of deleting the ‘‘garbage
items” which do not have the common core. Before EFA, a Bartlett
sphericity test was performed to determine whether the data were
appropriate for factor analysis. In terms of service quality, a KMO
(Kaiser–Meyer–Olkin) value of 0.90 and significance level of .00
were obtained using Bartlett’s sphericity test, which suggests that
the inter-correlation matrix contains sufficient common variance
to make factor analysis worthwhile. For EFA, the Principal Compo-
nent Analysis, with varimax rotation and eigenvalue greater than 1
and factor loadings greater than 0.4 was used (Kaiser, 1958). For
the analysis of items, the corrected item-total correlation coeffi-
cient less than 0.40 was used as the criterion to delete items, and
whether the removal of the item could significantly enhance the
total reliability of the questionnaire was considered. This process
was iterated until an optimal result was obtained. Later, we used
Cronbach’s a to test the reliability of the items. As suggested by
the results of EFA (Table 2), nine items were removed. The dimen-
sion of ‘‘system reliability and connection quality” was divided into
two dimensions, where SC1 and SC2 were integrated into the
dimension of customer service, and SC5–SC7 composed a new
dimension. Thus, according to the analysis results, the dimensions
892 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896

Table 2
EFA results of service quality.

Dimension Item Factor loading Item to total Eigenvalue Variance explained (%) Cronbach’s a
Customer service and system reliability (SQ1) MS5 0.76 0.65 3.13 20.86 0.85
MS6 0.78 0.69
MS7 0.60 0.59
SC1 0.76 0.67
SC2 0.76 0.66
Navigation and visual design (SQ2) BV1 0.68 0.62 2.62 17.46 0.83
BV2 0.68 0.70
BV3 0.84 0.69
BV4 0.73 0.65
Content quality (SQ3) CQ1 0.82 0.76 2.46 16.43 0.86
CQ2 0.83 0.77
CQ3 0.79 0.70
Connection speed (SQ4) SC5 0.87 0.74 2.34 15.63 0.85
SC6 0.85 0.77
SC7 0.68 0.65
Cumulative variance explained: 70.37%

Table 3
were, respectively, renamed as ‘‘customer service and system reli-
The fit indices and analysis results for measurement model of service quality.
ability”, ‘‘navigation and visual design”, ‘‘content quality”, and
‘‘connection speed”. These were consistent with our original Fit indices Recommended Result
value
dimensions except for the system reliability and connection qual-
ity. The Cronbach’s a coefficients ranged from 0.83 to 0.86, and v2/df <3.00 1.58
the cumulative variance explained was 70.37%. GFI (goodness of fit index) >0.90 0.96
RMSEA (root mean square error of approximation) <0.08 0.04
To test normality assumptions underlying the maximum likeli- RMR (root mean square residual) <0.08 0.03
hood procedure, we used the multivariate normality test to exam NFI (normed fit index) >0.90 0.99
whether the data were normal distributed. The result indicated NNFI (non-normed fit index) >0.90 0.99
that data were normal (p-value > .05). In the next step, we per- CFI (comparative fit index) >0.90 0.99
formed confirmatory factor analysis (CFA) to test the overall fit of
the measurement model. In the beginning, v2 was used as the cri-
ployed to test the hypothesized relationships between measured
terion to test the overall fit. If v2 was small and did not reach the
variables and latent variables. Table 6 shows the common fit indi-
level of significance, the overall fit of the model was good. How-
ces, recommended values and analytical results for total measure-
ever, v2 was sensitive to sample size. When sample size was large,
ment model. According to Table 6, all the model-fit indices were
v2 would easily reach the level of significance, making the model
qualified with the recommended values (Hair et al., 1998), indicat-
ineffective as a result (Bentler & Bonnett, 1980). Thus, many
ing that the overall model fit was acceptable.
researchers have proposed various fit indices to improve the draw-
As shown in Tables 7 and 8, except for SQ4 with an SMC slightly
back that v2 is greatly affected by sample size and suggested that
smaller than the recommended criterion, all the other items had a
various indices be considered before making the judgment of fit
value above 0.50, and the CR of latent variables was larger than
(Hair, Anderson, Tatham, & Black, 1998). Table 3 shows the com-
0.60, indicating that all measures had good reliability (Bagozzi &
mon fit indices, recommended values and analytical results for
Yi, 1988; Hair et al., 1998). Moreover, the completely standardized
measurement model of service quality. According to Table 3, all
factor loadings all reached the level of significance. All the latent
the model-fit indices exceeded the respective common acceptance
levels (Hair et al., 1998), indicating that the measurement model of
service quality exhibited a good fit with the data collected. Table 4
CFA can also be used to measure the reliability, convergent valid- Standardized factor loadings, SMC, and CR for measurement model of service quality.

ity, and discrimination validity of measurement model. As shown in Dimension Item Factor loading t-value SMC CR
Tables 4 and 5, all the squared multiple correlations (SMC) of the SQ1 MS5 0.71 14.58*** 0.50 0.98
measured variables, excluding SC2 slightly smaller than the crite- MS6 0.77 16.46*** 0.59
rion (0.50), were larger than 0.50, and the composite reliability MS7 0.78 16.86*** 0.61
(CR) of the latent variables was higher than 0.6, indicating that all SC1 0.71 14.94*** 0.51
SC2 0.69 14.26*** 0.47
measures had good reliability (Bagozzi & Yi, 1988; Hair et al.,
1998). Moreover, the completely standardized factor loadings all SQ2 BV1 0.75 16.50*** 0.58 0.98
BV2 0.88 20.84*** 0.77
reached the level of significance. All the latent variables had a CR
BV3 0.79 17.41*** 0.62
above 0.60 and an average variance extracted (AVE) above 0.50, BV4 0.74 16.17*** 0.55
meaning that a good convergent validity could be obtained (Fornell
SQ3 CQ1 0.93 23.85*** 0.86 0.98
& Larcker, 1981). Each latent variable’s AVE was larger than the CQ2 0.93 23.84*** 0.86
squared correlation between each pair of latent variables. Hence, CQ3 0.81 19.42*** 0.66
the discrimination validity was adequate (Fornell & Larcker, 1981). SQ4 SC5 0.73 15.50*** 0.53 0.98
SC6 0.79 17.53*** 0.63
4.2.2. Total measurement model SC7 0.91 20.90*** 0.82
In this section, first we used the multivariate normality test to Note: CR = ðR2 kÞ
2
; k = factor loading; h = measurement error of each measured
½ðRkÞ þRðhÞ
exam whether the data were normal distributed. The result indi- variable.
***
cated that data were normal (p-value > .05), then CFA was em- p < .001.
 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896 893

Table 5 Table 7
The mean, standard deviation, and inter-variable correlations of service quality. Standardized factor loadings, SMC, and CR of the measurement model.

Mean SD SQ1 SQ2 SQ3 SQ4 Construct Item Factor loading t-value SMC CR
***
SQ1 3.34 0.63 0.92 SQ SQ1 0.79 16.92 0.63 0.98
SQ2 3.26 0.66 0.67 0.93 SQ2 0.81 17.37*** 0.66
SQ3 3.37 0.63 0.61 0.67 0.95 SQ3 0.73 15.82*** 0.54
SQ4 3.10 0.74 0.65 0.73 0.60 0.94 SQ4 0.66 13.94*** 0.44

Note: (1) Diagonal elements (bold) show the average variance extracted (AVE). Off- PV PV1 0.75 16.29*** 0.56 0.97
diagonal elements show the shared variance. PV2 0.74 16.20*** 0.54
k2 Þ
(2) AVE = ½ðRkð2RÞþ ; k = factor loading; h = measurement error of each measured PV3 0.83 18.84*** 0.69
RðhÞ
variable. CS CS1 0.77 17.25*** 0.59 0.98
CS2 0.89 21.08*** 0.79
CS3 0.86 20.07*** 0.73
variables had a CR larger than 0.60, and AVE larger than 0.50, PI PB1 0.90 22.74*** 0.80 0.98
meaning that good convergent validity could be obtained (Fornell PB2 0.85 20.40*** 0.72
PB3 0.96 25.17*** 0.92
& Larcker, 1981). Each latent variable’s AVE was larger than the
squared correlation between each pair of latent variables. There- ***
p < .001.
fore, the discriminant validity was good (Fornell & Larcker, 1981).

4.2.3. Structural model Table 8

Table 9 shows the common model-fit indices, recommended The mean, standard deviation, and inter-variable correlations.

values and results of the test of structural model fitness. As shown Mean SD SQ PV CS PI
in Table 9, comparison of all fit indices with their corresponding SQ 3.27 0.53 0.92
recommended values (Hair et al., 1998), the evidence of a good PV 3.03 0.64 0.67 0.95
model fit was revealed. CS 3.25 0.62 0.72 0.78 0.93
Given the satisfactory fit of the model, the estimated path coef- PI 3.26 0.72 0.63 0.80 0.78 0.94
ficients of the structural model were then examined to evaluate Note: Diagonal elements (bold) show the average variance extracted (AVE). Off-
the hypotheses. Fig. 2 shows the standardized path coefficients, diagonal elements show the shared variance.
t-values, and coefficients of determination (R2) of the latent vari-
ables. Most of the hypotheses were strongly supported, expect
Table 9
for hypothesis H4 (c = 0.00; t = 0.02). The research results and dis-
The fit indices and analysis results of the structural model of the overall model.
cussions are shown as follows.
Fit indices Recommended Result
value
(1) The effect of service quality on perceived value
v2/df <3.00 2.65
GFI (goodness of fit index) >0.90 0.95
Service quality had a positive and significant effect on perceived
RMSEA (root mean square error of approximation) <0.08 0.07
value (c = 0.67; t = 11.07). Thus, H1 was supported. This result is RMR (root mean square residual) <0.08 0.03
consistent with those of previous studies on the telecom industry NFI (normed fit index) >0.90 0.98
(Turel & Serenko, 2006; Wang et al., 2004). In other words, when NNFI (non-normed fit index) >0.90 0.99
telecom companies provide good service quality in terms of mobile CFI (comparative fit index) >0.90 0.99

value-added services, perceived value can be enhanced.

Service quality had no significantly positive influence on post-
(2) The effect of service quality and perceived value on cus-
purchase intention (c = 0.00; t = 0.02), so H4 was not supported.
tomer satisfaction
This means that the effect of service quality on post-purchase
As expected, customer satisfaction was significantly directly intention was insignificant. Service quality has no significant influ-
influenced by both service quality (c = 0.37; t = 5.68) and perceived ence on post-purchase intention, probably due to the properties of
value (b = 0.53; t = 7.52), so H2 and H3 were supported. These re- research samples. The respondents in this study were undergradu-
sults echo the findings of previous studies on the telecom industry ates and graduate students. In this era of information and technol-
(Tung, 2004; Turel & Serenko, 2006; Wang et al., 2004). Thus, when ogy, computer and new things would be frequently involved in
customers perceive higher service quality and value of mobile va- their life. Therefore, according to their life experiences, they would
lue-added services, their satisfaction will be more positive. consider that the service quality of the mobile value-added ser-
vices should be equipped with these quality attributes, so the ser-
(3) The effect of service quality, perceived value, and customer vice quality of mobile value-added services cannot significantly
satisfaction on post-purchase intention influence their post-purchase intention. Post-purchase intention
was significantly directly influenced by both perceived value
Table 6
(b = 0.50; t = 6.44) and customer satisfaction (b = 0.39; t = 4.95),
The fit indices and analysis results of the measurement model. thereby confirming H5 and H6, respectively. These results are con-
sistent with the findings of previous studies on the telecom indus-
Fit indices Recommended Result
value
try (Lin & Wang, 2006; Wang et al., 2004). It implies that when
customers have high perceptions of value and high levels of satis-
v2/df <3.00 2.86
GFI (goodness of fit index) >0.90 0.94
faction with the mobile value-added services, they are more likely
RMSEA (root mean square error of approximation) <0.08 0.07 to use or reuse the services again in the future or to encourage their
RMR (root mean square residual) <0.08 0.03 friends and relatives to do so.
NFI (normed fit index) >0.90 0.98
NNFI (non-normed fit index) >0.90 0.98
(4) The direct effect, indirect effect, and total effect of each con-
CFI (comparative fit index) >0.90 0.99
struct on the post-purchase intention
894 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896

Fig. 2. Hypotheses testing results.

Using the standardized path coefficients between constructs,
the direct effect and the indirect effect of each construct on the
post-purchase intention can be calculated (Table 10). The total ef-
fects of the constructs on post-purchase intention (direct effect
plus indirect effect) can be ranked as follows: perceived value
(0.71), service quality (0.62), and customer satisfaction (0.39). This
result is consistent with the argument of previous studies (Anckar
& D’Incau, 2002; Keen & Mackintosh, 2001) which the most impor-
tant focus of mobile commerce in the future is to create customer
value. By delivering higher values to customers, customers’ repur-
chase intention can be increased and their positive words of mouth
can be transmitted to others (Eggert & Ulaga, 2002; Lin et al., 2005;
Petrick, 2002). Although service quality has no direct and signifi-
cant effect on post-purchase intention, service quality will indi-
rectly influence post-purchase intention through perceived value
and customer satisfaction. Thus, good service quality is still critical
to the profit of firms and the maintenance of their competitive
advantages and customer satisfaction is influential to long-term
relationships between firms and customers.
In addition, according to R2 results, 45.5% variance of perceived
value can be explained by service quality; 67.7% variance of cus-
tomer satisfaction can be jointly explained by service quality and
perceived value; 70% variance of post-purchase intention can be
jointly explained by service quality, customer satisfaction, and per-
ceived value. According to the above results, we can say the pro-
posed model is effective in explaining the relationships among
the service quality, customer satisfaction, perceived value, and
post-purchase intention in mobile value-added services.
4.3. The multiple regression analysis of the effects of service quality on
perceived value and customer satisfaction
According to the path analysis (Fig. 2), service quality had sig-
nificant and positive impact on perceived value and customer sat-
isfaction. However, which dimension(s) of service quality will
significantly influence perceived value and customer satisfaction
is (are) unknown. Therefore, multiple regression analysis was
adopted to identify the influential dimension(s).
4.3.1. The multiple regression analysis of the effects of service quality
on perceived value
According to Table 11, the four dimensions of service quality all
had significantly positive effects on perceived value. In other
words, customer service and system reliability (SQ1), navigation
and visual design (SQ2), content quality (SQ3), and connection
speed (SQ4) influenced the perceived value. The effect of ‘‘cus-
tomer service and system reliability” ranked first (0.27), followed
by ‘‘content quality” (0.15), ‘‘navigation and visual design” (0.15),
and ‘‘connection speed” (0.14).
4.3.2. The multiple regression analysis of the effects of service quality
on customer satisfaction
As shown in Table 12, among the four dimensions of service
quality, except navigation and visual design (SQ2) (t = 0.75,
p > .05), all the other dimensions had significantly positive effects
on customer satisfaction. This means that customer service and
system reliability (SQ1), content quality (SQ3), and connection
speed (SQ4) will influence customer satisfaction, where ‘‘customer
service and system reliability” (0.41) ranked first, followed by
‘‘content quality” (0.17) and ‘‘connection speed” (0.15).
5. Conclusions
In this study, a scale for measuring the service quality of mobile
value-added services was proposed first. Through exploratory and
confirmatory factor analyses, we identified four dimensions of ser-
vice quality, including customer service and system reliability,
navigation and visual design, content quality, and connection
speed. The final instrument showed adequate reliability and valid-
Table 11
The multiple regression analysis of the effects of service quality on perceived value.

Dimension Standardized coefficients t

Table 10
SQ1 0.27 5.02***
The direct effect, indirect effect, and total effect of each construct.
SQ2 0.15 2.52*
Direct effect Indirect effect Total effect SQ3 0.15 2.81**
SQ4 0.14 2.66**
PV CS BI PV CS BI PV CS BI 2 2
R = 0.32, Adj-R = 0.31, F = 44.82***
SQ 0.67 0.37 0.00 0.36 0.62 0.67 0.73 0.62 *
p < .05.
PV 0.53 0.50 0.21 0.53 0.71 **
CS 0.39 0.39 p < .01.
***
p < .001.
 Y.-F. Kuo et al. / Computers in Human Behavior 25 (2009) 887–896
Table 12
The multiple regression analysis of the effects of service quality on customer
satisfaction.
Dimension Standardized coefficients
SQ1 0.41
SQ2 0.04
SQ3 0.17
SQ4 0.15
R2 = 0.41, Adj-R2 = 0.40, F = 65.00***
*
p < .05.
**
p < .01.
***
p < .001.
ity. Further, we also examined the relationships among service
quality, perceived value, customer satisfaction, and post-purchase
intention in mobile value-added services. The proposed model
was strongly supported by the data collected in Taiwan. Service
quality positively influenced perceived value and customer satis-
faction, indicating that when telecom companies provide good ser-
vice quality, perceived value and customer satisfaction can be
enhanced. Perceived value positively influenced customer satisfac-
tion. In other words, higher perceived value can lead to higher cus-
tomer satisfaction. Perceived value and customer satisfaction
directly and positively influenced post-purchase intention, where
the effect of perceived value was the largest, followed by that of
customer satisfaction. Service quality showed no directly positive
effect on post-purchase intention. Although service quality has
no direct effect on post-purchase intention, service quality could
indirectly influence post-purchase intention through perceived va-
lue and customer satisfaction.
According to the total effects of each construct on post-pur-
chase intention, the constructs can be ranked as follows: perceived
value, service quality, and customer satisfaction. This result im-
plies that if telecom companies attempt to induce positive post-
purchase intention from mobile value-added service users, such
as the intention to refer or repurchase the service, improvement
of perceived value should be prioritized. They can evaluate
whether the release of a certain value-added service can make cus-
tomers feel the service is ‘‘more valuable than it costs”, the benefits
of the service for consumers, and the reasonableness of its price.
Therefore, users not only use a certain service but also feel the va-
lue added of the service, which elevates the simple use of service to
enjoyment. In this way, the value-added service can create sticki-
ness of users and even become a real competition advantage. Be-
sides, service quality also plays an important role. According to
the importance of the four dimensions of service quality, telecom
companies can improve the quality of value-added services.
Through the results of multiple regression analysis, we found the
effects of ‘‘customer service and system reliability” on perceived
value and customer satisfaction were the largest. Therefore, this
dimension should be prioritized by telecom companies when
improving the quality of mobile value-added services. They can
reinforce their customer service through education training and
technical support. For instance, with the aid of computer, customer
service staffs can quickly and accurately react to customer’s ques-
tions, and the FAQ can be regularly updated to meet the present
needs. In terms of the stability of wireless networks, the correct-
ness and the stability of connections should be ensured. ‘‘Content
quality”, ‘‘navigation and visual design”, and ‘‘connection speed”
ranked second, third, and fourth in terms of their influence on per-
ceived value, respectively. However, navigation and visual design
showed no significant impact on customer satisfaction. In the as-
pect of content quality, telecom companies should reinforce their
cooperation with content providers and further evaluate the value
and usefulness of the value-added service content and whether
they meet the demands of consumers to attract more users. In
895
the aspect of connection speed, various technologies should be
integrated and developed, and existing base stations should be up-
graded to enhance connection speed. In the aspect of navigation
t and visual design, the limited display of mobile phones should be
8.27*** considered, so as to provide a comfortable and easy-to-operate
0.75 user interface. If telecom companies can reinforce their service
3.41*** quality, then perceived value and customer satisfaction can be di-
3.00**
rectly improved, post-purchase intention can be indirectly posi-
tively influenced, and business profit and competitiveness will be
enhanced.
To address the limitation of our study we point out the follow-
ing issues. Even though the study succeeds in validating the mea-
surement scale of service quality in mobile value-added services,
but the results obtained in the EFA developed to test the measure-
ment model of service quality show off some weaknesses in the
elaboration of the measurement scales for content quality, man-
agement and customer service, and system reliability and connec-
tion quality. Particularly, the need to remove nine items from the
scales originally proposed for this constructs may raise doubts
about content validity of the scales. This could be due to various
reasons. One of the reasons is that the measurement scale of ser-
vice quality in mobile value-added services is designed according
to the related literatures including Internet (such as Web portals
and Website) and mobile telecomm service quality, but the attri-
butes of mobile value-added services are still a little different from
the above services. This situation indicated that when rashly
applying the service quality scale in Internet and Web environ-
ment to measure mobile value-added service quality is inappropri-
ate. The validated scale, the 15 items across four dimensions, in
this study can serve a useful instrument to measure the service
quality in mobile value-added services. Consequently, we can use
a second-order factor model to test the stability of the scale of ser-
vice quality in mobile value-added services. In addition, other large
samples should be gathered to confirm and refine, the factor struc-
ture of the service quality scale in mobile value-added services,
and to assess its reliability and validity.
For future research, we suggested that variables that affect con-
sumer’s post-purchase intention (such as switch cost) should be
discussed to have more extensive understanding. In addition, some
respondents’ characteristics may affect on the results of multiple
regressions for example gender, education, and level of value-
added services usage. There variables may consider as control vari-
ables to modify their effects. In the aspect of sampling respondents,
this study selected only the main user group of mobile value-added
services (university students and graduate students). Follow-up
studies can extend this scope to other consumer groups. Due to
the limitation of time, cross-sectional data collection method was
adopted. Thus, follow-up studies can collect longitudinal data to
re-verify the proposed model or find out whether there is any dif-
ference when applied to different consumer groups.
Acknowledgement
This research is supported by National Science Council (NSC 95-
2416-H-390-006), Taiwan.
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