MBA1_987334404_LaManhDai_Shyh_Hwang_Lee_Thesis_final.doc

Shu-Te University

College of Management

Graduate School of Business Administration

Master

Factors Effecting Customer’s Loyalty in

Vietnam Mobile phone Market

Student: La Manh Dai

Adviser: Shyh- Hwang Lee

Nguyen Danh Nguyen

May, 2012

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Factors E

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Vietn

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La M

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May, 2012

Factors Effecting Customer’s Loyalty in Vietnam

Mobile phone Market


Advisor: Dr. Shyh - Hwang Lee

Co-advisor: Dr. Nguyen Danh Nguyen

A Thesis

Submitted to the

Graduate School of Business Administration

College of Management

Shu-TeUniversity

In Partial Fulfillment of the Requirements

For the Degree of

Master of Business Administration

May, 2012

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This thesis authorized hereby is the Master thesis accomplished by the grantor at

Graduate School of Business Administration, Shu-Te University, in summer, 2012.

論文題目Thesis Topic

Factors Effecting Customer’s Loyalty in Vietnam Mobile phone

Market

主要指導教授Adviser

Dr. Shyh - Hwang Lee

共同指導教授Co-Adviser

Dr. Nguyen Danh Nguyen

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授權人姓名Grantor‘s Name La Manh Dai

學號Student ID s987334404

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Copyright Authorization Form for Electronic version of Thesis

本授權書所授權之論文為授權人在樹德科技大學資訊管理研究所九

十六學年度第二學期取得碩士學位之論文。

This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Administration, Shu-Te University, in summer, 2012.

論文題目

Thesis Topic

Factors Effecting Customer’s Loyalty in Vietnam Mobile

phone Market

主要指導教授

Adviser

Dr. Shyh - Hwang Lee

共同指導教授

Co-Adviser

Dr. Nguyen Danh Nguyen

茲同意將授權人擁有著作權之上列論文全文（含摘要），非專屬、

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授權人姓名

Grantor‘s

Name

La Manh Dai (Signature)

學號 s987334404

Student ID

Email [email protected]

2012　年／Year　05　月／Month　　日／Day

mailto:[email protected]

Shu-Te University Authorization Document of Thesis

This thesis authorized hereby is the thesis accomplished by the graduated student La

Manh Dai, the department of Graduate School of Business Administration, Shu-Te

University in May, 2012.

Thesis title: Factors Effecting Customer’s Loyalty in Vietnam Mobile phone

Market

Adviser: Shyh - Hwang Lee Co-Adviser: Dr. Nguyen Danh Nguyen

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Graduate student: La Manh Dai

Adviser: Dr. Shyh - Hwang Lee Co-Adviser: Dr. Nguyen Danh Nguyen

………………………………… ………………………………………

May, 2012

博碩士論文授權書

Authorization for Thesis本授權書所授權之論文為本人在樹德科技大學資訊管理研究所九十六學年度第二學期取得碩士

學位之論文。

This thesis authorized hereby is the Master thesis accomplished by the grantor at Graduate School of Business Management, Shu-Te University, in summer, 2012.

論文題目Thesis Topic

Factors Effecting Customer’s Loyalty in Vietnam Mobile

phone Market

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主要指導教授Adviser

Dr. Shyh - Hwang Lee共同指導教授

Co-AdviserDr. Nguyen Danh Nguyen

授權人姓名Grantor‘s Name

La Manh Dai (Signature)學號

Student IDS987334404

　　

2012 年／Year　　　05 月／Month　　　日／Day

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樹德科技大學碩士班研究生Graduate Student of Shu-Te University

指導教授推薦書Recommendation Letter from Thesis Adviser

本校資訊管理研究所　　　　　　　　君

所提之論文係由本人指導撰述，同意提付審查。

This Student, 　　 La Manh Dai , whose thesis entitled:

Factors Effecting Customer’s Loyalty in Vietnam

Mobile phone Market, is under my advisory and agree to

submit for examination.

主要指導教授

Adviser

: Dr. Shyh - Hwang Lee (Signature)

共同指導教授Co-Adviser

: Dr. Nguyen Danh Nguyen


樹德科技大學碩士班研究生

Graduate Student of Shu-Te University

學位考試審定書

Qualification Form of Master Degree

九十六學年度第二學期

資訊管理研究所　　　　　　君所提之論文

題目：Factors Effecting Customer’s Loyalty in Vietnam Mobile phone

Market

經本學位考試委員會審議，認為符合碩士資格標準。

Student Name: La Manh Dai Thesis Title: Factors Effecting Customer’s Loyalty in Vietnam Mobile phone MarketThis is to certify that the thesis submitted by the student named above in summer, 2012. It is qualified and approved by the Thesis Examination Committee.

召集人

Chair, Thesis CommitteeDr.Chin Yuan Chang

委　員

Committee MemberDr Shu Cheng Lee

委　員

Committee MemberDr Jau Shyong Wang

委　員Dr Nguyen Ngoc Dien

Committee Member

主要指導教授

AdviserDr. Shyh- Hwang Lee

共同指導教授

Co-AdviserDr. Nguyen Danh Nguyen


Graduate School of Management Business Administrator, Shu-Te University

Factors Effecting Customer’s Loyalty in Vietnam Mobile phone Market.


Advisor: Shyh- Hwang Lee Co-advisor: Dr. Nguyen Danh Nguyen

ABSTRACT

In competitive environment today, the customer is one of the most important

assets of the enterprise. Philip Kotler, a leading marketing expert in the world said that:

"There are many factors impact to the success of a business such as a great business

strategy, dedicated staff, information systems perfect ... However, all successful

companies today, whether at any level, also there is a common thing that they care very

much about the client and attaches great importance to the satisfaction of customers".

The customer satisfaction also means that customers tend to come back to use the

company's products or services in the future. Maybe even they will recommend their

relatives, their friends to purchase product or services of the company in the future.

In contrast, customer not satisfy also means customers will be less likely to

return to purchase your product or services of the company in the future, they may be

diverted to purchase product or services of competitors.

Therefore, the study of customer satisfaction is essential and significant both of

practical as well as academically. However, customer satisfaction is always changing

and is affected by many factors. This thesis has no ambition to study all factors affecting

customer satisfaction, but only focusing on a few factors that affect customer

satisfaction. Moreover, the research object of this thesis is limited to motorcycles

buyers.

This thesis will conduct to survey based on the questionnaire. The questionnaire

will be sent to leaders and staffs working in some enterprises. Data collected will be

analyzed using the SPSS 17.0 through by research methods such as: Descriptive

analysis, factors analysis, reliability analysis and regression analysis in order to evaluate

factors impact customer's satisfaction.

Keywords: Customer Satisfaction, Perceived Value, Expected Quality

ACKNOWLEDGEMENT

First, I would like to express my deeply and sincerely gratitude to my advisor,

Dr. Shyh- Hwang Lee, Department of Information Management, Institute of

Informatics Graduate School of Business Administration, Shu-Te University and Dr.

Nguyen Danh Nguyen. His wide knowledge and his logical way of thinking have been

great value for me. His understanding, encourage and personal guidance have provide a

good basic for the present thesis.

Next, during this work I have received many helps from my friends. And many

thanks to a numbers of respondents who helped me to filled in the research surveys that

bring to me the result of this study.

Finally, I owed my loving thanks to all members of my family who help me,

encourage me during my studying time. They always support me; make me feel full of

energy to do best for my study.

i

Table of Contents

ABSTRACT iv

ACKNOWLEDGEMENT iii

Table of Contents iv

List of Tables vii

Chapter 1: Introduction 1

1.1 Background...........................................................................................................1

1.2 Research Motivation.............................................................................................2

1.3 Research purpose..................................................................................................4

1.4 Research limited....................................................................................................4

1.5 Research Procedure..............................................................................................4

Chapter 2: Literature Review 6

2.1 The concept of customer’s loyalty.......................................................................6

2.2 The concepts of Customer’s Satisfaction............................................................8

2.3 Customer’s Satisfaction Index...........................................................................11

2.3.1 American Customer Satisfaction Index – ACSI............................................11

2.3.2 European Customer Satisfaction Index – ECSI............................................13

2.4 Factors impacts to customer’s satisfactions.....................................................15

2.4.1 Complaint:........................................................................................................15

2.4.2 Expectations:....................................................................................................16

2.4.3 Perceived quality:............................................................................................17

2.4.4 Perceived value:...............................................................................................18

Chapter 3: Research Methodology 19

ii

3.1 Research Model 19

3.2 Hypotheses 20

3.3 Measurement activities 26

3.3.1 Perceived Value................................................................................................26

3.3.2 Customer Satisfaction......................................................................................27

3.3.3 Customer Expectation.....................................................................................28

3.3.4 Perceived Quality.............................................................................................29

3.3.5 Customer Loyalty............................................................................................30

3.3.6 Customer's Complaints...................................................................................30

3.4 Sampling Method 31

3.5 Research Method 32

3.5.1 Descriptive Statistics........................................................................................32

3.5.2 Factors Analysis...............................................................................................32

3.5.3 Reliability analysis...........................................................................................33

3.5.4. Regression Analysis.........................................................................................34

Chapter 4: Data Analysis and Result 35

4.1 Descriptive analysis 35

4.2 Factor Analysis 36

4.3 Reliability Analysis 38

4.4 Regression Analysis 39

4.4.1 Linear Regression Analysis for Customer Loyalty 40

4.4.2 Linear Regression Analysis for Customer Satisfaction 41

4.4.3 Linear Regression Analysis for Perceived Value 42

iii

4.4.4 Linear Regression Analysis for Perceived Quality 44

4.5.1 Result Model.....................................................................................................45

Chapter 5 Conclusion 46

5.1 Research Result 46

5.2 Significance and contribution 47

5.4 Limitation 51

5.5 Research on future 51

References 53

iv

List of Tables

Table 1: The Report of GFKVietnam, 2005......................................................................1

Table 2: Perceived Value Measurement...........................................................................27

Table 3: Customer Satisfaction Measurement.................................................................27

Table 4: Customer Expectation Measurement.................................................................28

Table 5: Perceived Quality Measurement........................................................................29

Table 6: Customer Loyalty Measurement.......................................................................30

Table 7: Customer Complaint Measurement...................................................................31

Table 8: Descriptive analysis...........................................................................................35

Table 9: Factor Analysis..................................................................................................37

Table 10: Reliability Analysis.........................................................................................39

Table 11: Linear Regression Analysis for Customer Loyalty..........................................40

Table 12: Linear Regression Analysis for Customer Satisfaction...................................41

Table 13: Linear Regression Analysis for Perceived Value.............................................43

Table 14: Linear Regression Analysis for Perceived Quality..........................................44

Table 15: Research Result...............................................................................................46

List of Figures

v

Figure 1: The Report of GFKVietnam, 2005.............................................................2

Figure 2: American Customer Satisfaction Index – ACSI...............................................12

Figure 3: European Customer Satisfaction Index – ECSI...............................................14

Figure 4: Factors affect on Customer Satisfaction..........................................................18

Figure 5: Research Model...............................................................................................19

Figure 6: Result Model....................................................................................................45

vi

Chapter 1: Introduction

1.1 Background

Prior 2004, the mobile market in Vietnam is still limited. The main reason is the

mobile phone products are very expensive for the majority people in Vietnam, so that

they can not buy or use mobile phone, Moreover, the cost of telecommunication ser-

vices also expensive for people access to mobile phones.

2006 marked Vietnam the official became the 150th member of WTO. This

event means of integration with the global economy provides opportunities for trading

with countries around the world.

The event was opened to foreign enterprises have opportunities invest to Viet-

nam, including mainly high-tech products such as mobile phone. The prices of mobile

products have been easily accepted than with Vietnam people finance. If before 2004,

mobile phone market in Vietnam has only a few vendors such as: Nokia, Samsung, Mo-

torolar, Erickson (The Report of GFKVietnam, 2005).

Table 1: The Report of GFKVietnam, 2005

Brand 2004 2005 2006

Nokia 51% 50% 50%

Samsung 35% 30% 19%

Motorolar 1.8% 10.8% 20%

Others 12.2% 9.2% 11%

0

Figure 1: The Report of GFKVietnam, 2005

Currently, the number of mobile vendors has appeared more and more. Espe-

cially with the emergence of the Vietnamese brand as Qmobi, FPTmobi, HiPT Mobile,

Bluefone .... according to the report of GFK, Vietnam has up to 20 mobile vendors in

Vietnam market, even large company such as Iphone, Nokia ...

1.2 Research Motivation

We can see that, never the mobile phone market become warm is that. Vietnam

enterprises are gradually penetrating the mobile market. However, mobile phone market

is still very new for Vietnam enterprises. Finding a position in the mobile phone market

in Vietnam is very difficult. So, if Vietnam business wants stand on the Vietnam market

1

requires they must understand their customers and must maintain the loyalty of cus-

tomers.

According to Sam Walton who found the Wal-Mart said that: There is only a

boss that's customers, they can waste away from everyone in the company from boss to

employees simply by spending money on another (The Cicero Group, 2007)

Philip Kotler, a leading marketing expert in the world said that: "There are many

factors impact to the success of a business such as a great business strategy, dedicated

staff, information systems perfect ... However, all successful companies today, whether

at any level, also there is a common thing that they care very much about the client and

attaches great importance to the satisfaction of client resistance.

Moreover, there are a little of articles research on customer's satisfaction, spe-

cific on the Vietnam mobile phone market. A research on the factors affect customer's

satisfaction on the mobile phone market is very importance for any Vietnam enterprises

who want to give business strategies better. On other hand, this research has a implica-

tion to build the model of factors affect customer's satisfaction in the mobile phone

field. This is the reason why the author decided selected topic "Study factors affecting

customer loyalty in Mobile Phone Vietnam Market"

1.3 Research purpose

This thesis, will conduct research to answer following research questions:

What factors impact to customer loyalty in Vietnam mobile phones market?

2

How these factors impact to customer loyalty in Vietnam mobile phones?

1.4 Research limited

Because of limited time as well as knowledge of author. This thesis has no ambi-

tion to present all the factors that impact to customer loyalty that focuses on some of

factors impact to customer’s loyalty. On the other hand, for more convenient to re-

searching, this thesis will be limited to research in mobile phones field in some prov-

inces in northern Vietnam such as Hanoi, Nam Dinh, Ninh Binh, Hai Phong ...

1.5 Research Procedure

Structure of the thesis consists of 5 chapters. Chapter 1 is a picture of the Viet-

nam mobile market and development over the years. The research motivation and re-

search purposes also are presented in this section. The concepts, such as customer loy-

alty, satisfaction and other concepts will be clarified in chapter two. Chapter three will

provide the research model and design questionnaire. Questionnaire was designed in

Chapter 3 will be used to collect data. After data collected and carefully selected will be

analyzed based throught by four methods: descriptive analysis, validity analysis reliabil-

ity analysis and regression analysis. Finally, chapter five will summarize the results ob-

tained from the analysis as well as the signification and limitations of this thesis.

3

Chapter 2: Literature Review

Firstly, this chapter will provide the concept of customer loyalty and the impor-

tance of loyalty. An important factor affect customer's loyalty is satisfaction that also

will be addressed. Following some of model theory is the concepts of the factors will be

studied in this thesis.

2.1 The concept of customer’s loyalty

Customer’s loyalty has been recognized as a valuable asset to compete in the mar-

ket (Srivasta, Shervani, & Favey, 2000). Investment management in customer loyalty is

important and necessary because they are not bound by a contract (Shapiro & Vivian,

2000).

The concept of customer loyalty is using commonly in market during the last

decade (Lewis, 1997). The loyalty customer gives its members the bonus and the added

value, which makes the program more close relatives with more customers (Lieber-

mann, 1999). This led to increased competition to attract more customers among com-

panies in the industry. As a result, customers will be committed to various programs

customer loyalty of many companies in the same business area (Passingham, 1998). For

4

example, customers often have more loyalty with supermarkets. The trend of companies

are rolling out the program of loyalty is seen as a strategy to protect market share

(Dawkins & Reichheld, 1990).

Customer loyalty is one topics interesting studied in field of marketing. In particu-

lar, the content is focused on customers willing to establish and maintain relationships

with services and products providers based on their satisfaction (Hirschman, 1970, Day,

1977, Oliver , 1980, Swan, Anderson et al, 1990,).

Oliver (1997) defined customer’s loyalty: is deeply committed to the acquisition

or return to use a certain products or services in the future, lead to repeating purchase

the same brand, although it may be affected by the situation and the efforts of competi-

tors in the market to lead to behavior change.

Retention a new customer is very difficult and pay more expensive, so trying to

maintain existing customers by creating loyalty and value added to customers (Kim et

al. 2004, p.146)

One other important issue for the success of a company is able to maintain exist-

ing customers and make them more loyal to their brands. Loyalty shown by buying

more, with higher prices, and create a reputation for the company through positive word

of mouth (Ganesh et al., 2000, p.65).

Reichheld and Sasser (1990) and Reichheld (1996) studied the long-term value of

customers and the value for building customer’s loyalty by listening customer’s com-

plaints, anticipating the behavior change, and find out the reason why customers switch

to competitors. Remaining customer’s loyal if they get the value from vendors. Main-

5

taining customers is to continue the activities related to customers (Cannie, 1994, Nau-

mann, 1994, Heskett et al., 1997, Burgeson, 1988, Clemmet, 1998).

Both of companies and consumers would have benefit from the impairment

charge customers. Not only does the company need to build and protect customer loy-

alty, actually, customers also have benefit from long-term relationship (Zeithaml et al,

1996).

Many studies have concluded that the company's revenue is the foundation of loy-

alty (Everitt & Der, 1996) and the relationship between loyalty and profits (Everitt &

Der, 1996).

Dawkins and Reichheld (1990) who firstly spokend about the impact of customer

loyalty, customer retention will lead to more customer value is now higher. Manage-

ment of customer loyalty is still continuing research discussions with several highlights

(Reichheld and Sasser, 1990; Reichheld and Kenny, 1990; Reichehld, 1993, 1994,

1996). They have demonstrated that customer loyalty leads to higher profits and the

company should making programs related to maintaining the current customer protec-

tion.

2.2 The concepts of Customer’s Satisfaction

There are many different definitions about customer’s satisfaction such as:

Kotler (2003) suggest that satisfaction: is the satisfaction or frustration of cus-

tomers when they compare what they get from products or services with what they ex-

pected.

6

Yi et al (2003) said customer’s satisfaction is the common sense of the output,

evaluation and implementation of activities related to the consumption of a product or

service.

Also Hunt (1991) defined satisfaction is the trust of consumers that they serve an

excellent, value for money that they paid. The meet will create high loyalty and positive

word of mouth for the company.

Customer’s satisfaction in generally, have a positive impact on loyalty in all sec-

tors, including telecommunications services (Fornell 1992; Everitt et al, 1996). Accord-

ing to the rules correspond-profit chain. improved parts and service products will in-

crease customer satisfaction, increased satisfaction leads to loyalty and generate higher

profits more and more. There for, the value of satisfaction is an important factor in the

mobile phone industry.

In theory and practice, companies provide mobile products should focus on cus-

tomer’s satisfaction, as a result of customer’s satisfaction is customer loyalty, and com-

panies would have been beneficial insects profit from the increased rate of acquisition,

the possibility of a potential acquisition, the willing to pay, the introduction of positive

behavior and less likely to change (Bruhn and Grund, 2000).

Research on customer’s satisfaction can provide support as follows:

Determine level of satisfaction and management know whats the reasons

that satisfied or dissatisfied

Point out how to management customer’s satisfaction with focuses on

main competitors

7

Figure out how to efforts to develop satisfaction

Find out the reason why customers are leaving and what to do to them in

the design customer loyalty program;

In generally, customer’s satisfaction and customer’s loyalty is pretty strong rela-

tionship. Customer satisfaction, reduce customer change and enhance the customer's

stay, so it's very important contribution to customer loyalty (Fornell, 1992; Reichheld,

1996). Moreover, while under the influence of market structure, types of customers and

how to solve different problems of each individual client, the connection between satis-

faction and loyalty is not always also clear, although it played a positive relationship

(Fornell, 1992). Satisfaction loyalty explained as the intention to act (such as acts of ac-

quisition or recommend to others). For example, Bolton et al (1993) found positive im-

pact of satisfaction on the strength of relationships with customers using the mobile net-

work, and pointed out the positive impact of the agreement correspond to the use of mo-

bile network service provider. They also found large differences in the relationship sat-

isfaction-loyalty by customer characteristics.

Administrators need to understand the relationship between satisfaction and time

to maintain relationships customers with vendors to identify the specific actions that can

enhance customer’s retention and profitability long term.

2.3 Customer’s Satisfaction Index

8

The customer’s satisfaction becomes an important asset for businesses and organi-

zations in an effort to improve the quality of service, to maintain loyalty, improve the

competitiveness of enterprises. In 1989, the index (barometer) measuring the level of

satisfaction was first released in Sweden (Swedish Customer Satisfaction barometer -

SCSB) to establish indicators of customer satisfaction for the purchase and consumption

of products - services domestic service. In later years, this index was developed and

widely applied in developed countries like the U.S. – (ACSI Fornell, C, 1992), (Norway

- NCSI Fornell, C,1992), Denmark - DCSI and other EU countries - ECSI (1998)

(Martensen. A., Gronholdt, L. and Kristensen, K, 2000). The index can be done on the

national level (companies, branches will correspond to how their customers) or at the

sector angle (compare the satisfaction of the enterprise in within a sector) and compar-

isons between different times (to see the change). Since then, the company can know the

position, the evaluation of customers for businesses to plan objectives and strategy

2.3.1 American Customer Satisfaction Index – ACSI

The Index of customer’s satisfaction include factors, each factor is composed of

several specific factors characteristics of the product or service. Customer satisfaction is

defined as a comprehensive review of the using a service or after sold of the company

and this is the core of the CSI model. Around the turn of this system of causal relation-

ships (cause and effect) from the initial variables as expectations of customers, image

businesses, products and perceived quality and perceived value of products or services

9

attached to the outcome variables of satisfaction, such as loyalty or complaints of cus-

tomers.

Figure 2: American Customer Satisfaction Index – ACSI

In the model of American satisfaction index (ACSI), perceived value is influ-

enced by perceived quality and expectations of customers. Meanwhile, the expectations

of customers have a direct impact on the perceived quality. In fact, the higher expecta-

tions then may be the standard quality and perceived by customers about product are

higher. Therefore, the requirements on product quality and service provided to cus-

tomers must ensure and be satisfied on the basis of their satisfaction. Customer satisfac-

tion is made on the basis of perceived quality, expectations and perceived value, if the

quality and perceived value higher than the expectations will create loyalty with cus-

10

Expectation

Perceived Quality

Perceived Value

Customer Satisfaction

Complaint

Loyalty

tomers, otherwise, there is a complaint or complaints about the products they consumer

(Figure 1).

2.3.2 European Customer Satisfaction Index – ECSI

Figure 3: European Customer Satisfaction Index – ECSI

The Models Europe satisfaction index (ECSI) is a certain difference compared to

the ACSI, the image of the product, the brand has a direct impact to the expectations of

11

Image

Expectations

Perceived Quality

Products

Perceived Quality Service

Perceived Value

Customer

Satisfaction

Loyally

customers. Meanwhile, customer satisfaction is influenced by four factors image, per-

ceived value, perceived quality perceived Quality Service. Normally, only the ACSI of-

ten applied to fields is usually applied ECSI index measurement products and sectors

(Figure 2).

Clearly, the strength of this approach is that it shifts the immediate consumer ex-

perience, enabling the study of causal relationships between the components of satisfac-

tion and loyalty customers. Therefore, the first goal of the CSI approach is structured to

explain the loyalty of customers for a particular product or a business, a country gener-

ally through customer satisfaction index to influence directly or indirectly by the image,

expectations, perceived quality (product or service) and perceived value to products and

services.

ECSI model with more factors such as: Perceived Quality, Image will help deply

research on factors affecting to customer’s satisfaction and loyalty about products rather

than services. Therefore, this thesis will use the ECSI model as a theory model frame-

work for the study of factors affecting customer loyalty in the mobile phone industrial.

2.4 Factors impacts to customer’s satisfactions

2.4.1 Complaint:

Previous studies have shown that, when customers receive products or services

from suppliers, they can be satisfied with products and services, but also may not be sat-

isfied with the product or of service providers. When customers are not satisfied with

the product or service they may respond to the supplier. In any case, the customer's

12

feedback is very important. This feedback can be in many different forms such as oral

or in writing (Heung et al., 2003).

One of the most important types of customer's feedback is the customer's com-

plaint (Sanes, 1993). Customer's complaints are an expression of dissatisfaction of cus-

tomer about a product or service of an organization or handling complaint process of the

organization is not clear and satisfactory. (ISO 10002:2004, - Quality management sys-

tems - customer satisfaction). According to the study of (Tor Wallin Andreassen, 2000),

the complaints divided into two forms. First, when customers are not satisfied with the

product or service, customers will stop using the products and services that have not any

claim against the supplier. Second, customers will reflect their problems to the provider.

In the first case, customers do not claim to the provider, it will not only affect the profits

of the business for a long time, but also to influence other customer purchasing deci-

sions and. In any form, customer's complaint means that the negative impact of cus-

tomer loyalty (Tor Wallin Andreassen, 2000). The complaints reflect customer's dissat-

isfaction with the product, or service providers. Customer's complaint proves that they

are not satisfied with products and services, and it is the sign for their leaving.

Buyers tend to recommend their friends and people related about the products

they are using. So, if they tell their good experience about product or service, which will

help the company have more new customers and increase their market share and prof-

itability. Conversely, if they tell their bad experience about the products or service,

which is the cause for losing potential customers and therefore will lead to reduced in-

13

come and profits. In addition, the complainant is not responding adequately tend to

overstate the actual errors, which also occurs similar to those satisfied with the product.

In fact, the negative comments powerful more than the positive words, so organizations

need to avoid the failure on resolving customer's complaints. The customer's complaints

are more concerned by many researchers, and it is an important part of business strategy

(Fornell and Wernerfelt, 1988).

2.4.2 Expectations:

In the first stage when a customer made their purchasing a product decisions, he

will try to understand every aspect related to the product. In other words, he expects the

performance of the product. This expectation is the customer's expectation for products

The expectation present level of quality that customers expect to get, the parame-

ters measuring the expectations associated with the parameters of the image and per-

ceived quality of products and services. This is the result of previous experience in con-

sumer or information through media channels for the product or service. In some sec-

tors, may be this variable has no relation to perceived value, this result is also presented

in the study by Martensen et al (2000). In fact, higher expectation, customer wants to

purchase more, but expectation higher due to vendor’s possibility satisfy customer more

difficult.

The researchers also presented some degree of customer expectations (Parasura-

man et al, 1991; Zeithaml et al, 1993). According to Parasuraman (1991), customer ex-

14

pectations have two levels: Desired and Adequate. Desired expectation presents the lev-

els in which customers hope the product received, it defined as the degree that customer

expects about effectiveness of product. On other hand, adequate expectation is the level

lower of expectation, as the effectiveness of the products which customers can accept-

able.

2.4.3 Perceived quality:

There are two kinds of perceived quality: (1) perceived quality of products (tangi-

ble) is the evaluation of recent consumer products for customers' products and (2) per-

ceived service quality (invisible) is assessing related services as services during and af-

ter the sale, supply conditions, delivery of the product .... Thus, both formed by the key

attributes was crystallized in the products - services. In the mobile phone market, mo-

bile phone is a visible product that customer can hold and see … On other hand, mobile

phone also is an invisible products such as the software built in the mobile phone, the

operation system of mobile …

2.4.4 Perceived value:

Studies on the theory about, customer satisfaction depends on the perceived value

of goods and services Martensen. A., Gronholdt, L. and Kristensen, K. (2000). Value is

the level of review / comments on the product quality compared to the cost or terms of

"value not only with money" customers consumer products. According to Kotler (2003),

the value for customers is the difference between the total value that customers receive

and the total cost that customers pay for a product / service area.

15

Figure 4: Factors affect on Customer Satisfaction

Chapter 3: Research Methodology

Chapter two has finished with providing some of importance concepts such as

customer's loyalty and customer satisfaction and also provide concepts of factors affect

customer's satisfaction and loyalty. In this chapter, going to develop the research model

and develop the hypotheses, the questionnaires and research methods, which used to

analysis collected data also provide in this chapter

16

Expectation

Perceived Quality

Perceived Value


Complaint

Loyalty

3.1 Research Model

Figure 5: Research Model

3.2 Hypotheses

Previous studies have shown that, when customers receive products or services

from suppliers, they can be satisfied with products and services, but also may not be sat-

isfied with the product or of service providers. When customers are not satisfied with

the product or service they may respond to the supplier. In any case, the customer's

feedback is very important.

Customer's complaints are an expression of dissatisfaction of customer about a

product or service of an organization or handling complaint process of the organization

is not clear and satisfactory. (ISO 10002:2004, - Quality management systems - cus-

tomer satisfaction).

17

Expectation

Perceived Quality

Perceived Value


Complaint

Loyalty

H1

H2 H4

H3 H5

H6

H7

H8

H9

Buyers tend to recommend their friends and people related about the products

they are using. So, if they tell their good experience about product or service, which will

help the company have more new customers and increase their market share and prof-

itability. Conversely, if they tell their bad experience about the products or service,

which is the cause for losing potential customers and therefore will lead to reduced in-

come and profits. In addition, the complainant is not responding adequately tend to





(Fornell and Wernerfelt, 1989).

Customer's complaint means that the negative impact of customer loyalty (Tor

Wallin Andreassen, 1999). The complaints reflect customer's dissatisfaction with the

product, or service providers. Customer's complaint proves that they are not satisfied

with products and services, and it is the sign for their leaving.

From pervious researches of (Fornell and Wernerfelt, 1989), (Tor Wallin An-

18

dreassen, 1999). The hypotheses developed as below:

H7 Customer's complaint has negative affect customer's satisfaction

H8 Customer's complaint has negative affect customer Loyalty

In the first stage when a customer made their purchasing a product decisions, he

will try to understand every aspect related to the product. In other words, he expects the

performance of the product. This expectation is the customer's expectation for products

The expectation present level of quality that customers expect to get, the parame-

ters measuring the expectations associated with the parameters of the image and per-

ceived quality of products and services. This is the result of previous experience in con-

sumer or information through media channels for the product or service. In some sec-

tors, may be this variable has no relation to perceived value, this result is also presented

in the study by Martensen et al (2000). In fact, higher expectation, customer wants to

purchase more, but expectation higher due to vendor’s possibility satisfy customer more

difficult.

The researchers also presented some degree of customer expectations (Parasura-

man et al, 1991; Zeithaml et al, 1993). According to Parasuraman (1991), customer ex-

19

pectations have two levels: Desired and Adequate. Desired expectation presents the lev-

els in which customers hope the product received, it defined as the degree that customer

expects about effectiveness of product. On other hand, adequate expectation is the level

lower of expectation, as the effectiveness of the products which customers can accept-

able.

Moreover, both of ECSI and ACSI showed the relationship between expectation

and customer's satisfaction and customer's loyalty.

From pervious researches of Martensen et al (2000), (Tor Wallin Andreassen,

1999) (Parasuraman et al, 1991; Zeithaml et al, 1993). The hypotheses developed as be-

low:

H3: Expectation has positive affect customer's satisfaction

H2 Expectation has positive affect perceived value

H1 Expectation has a positive affect perceive quality

Perceived quality is evaluation of consumers on overall superiority or excellence

of a particular product (Zeithaml 1988). Perceived quality is evaluation of a particular

product from "bad" to "good" based on specific criteria. There are two kinds of per-

20

ceived quality: perceived quality of products (tangible) is the evaluation of recent con-

sumer products for customers' products and perceived service quality (invisible) is as-

sessing related services as services during and after the sale, supply conditions, delivery

of the product (Zeithaml 1988). Thus, both formed by the key attributes was crystallized

in the products - services. In the mobile phone market, mobile phone is a visible product

that customer can hold and see … On other hand, mobile phone also is an invisible

products such as the software built in the mobile phone, the operation system of mobile

…

The importance of perceived quality has a positive influence purchase intention of

customers. Some scholars have showed that perceived quality has positive impact to

purchase intention (Carman 1990; Boulding, Staelin & Zeithaml 1993, Parasuraman et

al 1996), others reported report showed this influence only is indirect effect through

customer's satisfaction (Cronin & Taylor in 1992; Sweeney, Soutar, & Johnson 1999)

From pervious researches of Zeithaml 1988), (Carman, 1990; Boulding, Staelin &

Zeithaml 1993, Parasuraman et al 1996), (Cronin & Taylor, 1992; Sweeney, Soutar, &

Johnson 1999) and references from both of model ACSI and ECSI. The hypotheses de-

21

veloped as below:

H4 Perceived quality has positive affect perceived value

H5 Perceived quality has positive affect customer's satisfaction

Studies on the theory about, customer satisfaction depends on the perceived value

of goods and services Martensen. A., Gronholdt, L. and Kristensen, K. (2000). Value is

the level of review / comments on the product quality compared to the cost or terms of

"value not only with money" customers consumer products. According to Kotler (2003),

the value for customers is the difference between the total value that customers receive

and the total cost that customers pay for a product / service area.

From pervious researches of Martensen. A., Gronholdt, L. and Kristensen, K.

(2000), Kotler (2003) and from references both of model ACSI and ECSI. The hypothe-

ses developed as below:

H6 Perceived value has positive affect customer's satisfaction

The customer’s satisfaction becomes an important asset for businesses and organi-

zations in an effort to improve the quality of service, to maintain loyalty, improve the

competitiveness of enterprises (O'Loughin C. and Coenders, 2004). In 1989, the index

22

(barometer) measuring the level of satisfaction was first released in Sweden (Swedish

Customer Satisfaction barometer - SCSB) to establish indicators of customer satisfac-

tion for the purchase and consumption of products - services domestic service. In later

years, this index was developed and widely applied in developed countries like the U.S.

– (ACSI Fornell, C, 1992), (Norway - NCSI Fornell, C,1992), (Andreassen, T. W. and

Lindestad,1998b), Denmark - DCSI and other EU countries - ECSI (1998) (Martensen.

A., Gronholdt, L. and Kristensen, K, 2000)

From pervious researches of – (ACSI Fornell, C, 1992), (Norway - NCSI Fornell,

C,1992), (Andreassen, T. W. and Lindestad,1998b), Denmark - DCSI and EU countries

- ECSI (1998) (Martensen. A., Gronholdt, L. and Kristensen, K, 2000). The hypotheses

developed as below:

H9 Customer's satisfaction has positive affect customer's loyalty

3.3 Measurement activities

3.3.1 Perceived Value

Based on the questionnaire was developed by (Christina O’Loughlin, 2002 ); this

thesis has developed the questionnaire with five questions and scale of 5, in which "5" =

23

Strongly agree; "4" = Agree; "3" = Neutral; "2" = Disagree; "1" = Strongly Disagree. As

following:

Table 2: Perceived Value Measurement

Variable Content of Item

Perceived Value

• Please rate the quality of products/services given the prices you

pay?

Please rate the prices of products and services given the quality?

3.3.2 Customer Satisfaction

Based on the questionnaire was developed by Christina O’Loughlin, 2002; this



following:

Table 3: Customer Satisfaction Measurement


24

Customer's

Satisfaction

Overall how satisfied are you with products and services?

How close your ideal postal mobiphone provider?

Considering your expectations, to what extent has mobiphone

fallen short of or exceeded your expectations?

3.3.3 Customer Expectation




following:

Table 4: Customer Expectation Measurement


Customer

Expectation

• Please rate quality of products / services you expected

• Please rate quality of products / services that you expected

25

meet your need

3.3.4 Perceived Quality

Based on the questionnaire was developed by Christina O’Loughlin, 2002 this



following:

Table 5: Perceived Quality Measurement


Perceived Quality

Please rate the overall quality of products and ser-

vices

Please rate the quality of products and services

compared to the quality offered by similar compa-

nies

Does the overall quality of products meet your

26

quality requirements?

Could the quality of the products and services be

improved?

3.3.5 Customer Loyalty




following:

Table 6: Customer Loyalty Measurement


Customer

loyatly

• would you want to change to other mobiphone provider if

other provider reduce their prices?

• would you want to change to other mobiphone provider if

other provider have new service as you want?

27

• would you change to other mobiphone provider if your advi-

sor recommend you change

3.3.6 Customer's Complaints




following:

Table 7: Customer Complaint Measurement


Customer

Complaints

• How many times have you complained (either formally or in-

formally) to staffs ?

How well or poorly was your most recent complaint handled?

28

3.4 Sampling Method

The purpose of this thesis airm to assess the influence of factors to the mobile

phone customer's satisfaction and customer's loyalty. So the questionnaire was designed

specifically targeting to mobiphone customer. After the questionnaire has been carefully

designed, 450 questionnaires will be sent directly to the customer as the customer list of

65 Mobi store at Hanoi, Nam Dinh, Hai Phong

Data after collected and selected carefully will be analyzed on SPSS 17.0 software

based on four methods: descriptive analysis, reliability analysis, validity analysis and re-

gression analysis to evaluation factors and test the hypothesis

3.5 Research Method

3.5.1 Descriptive Statistics

After data collected will analysis by the first analysis method is descriptive analy-

sis, the personal information such as gender, age, experience, .... The data will be ana-

lyzed by percentage, the distribution of age, gender, experience ... how related to hy-

pothesis in this thesis.

29

3.5.2 Factors Analysis

Factor analysis is often used in analysing data. Now, there are many social re-

searcher use factor analysis to evaluate the relationship between factors together, data

reduction, development scale, classification and testing of hypothesis (Rummel, 1970).

When conducting factor analysis, a problem that the analysis should be considered

when conducting the analysis: is determine model and number of factors used to ana-

lyze Ford et al (1986 ).

First, researchers should determine the model before which is used to analysis.

There are two methods commonly used to analyze factors including: common factors

analysis and components analysis Ford et al (1986).

The second problem is number of factors. (Kim & Mueller, 1978) poited that

number of factors as a result of the analysis process and is determined based on the

eighen value must be greater than one. However, Tucker et al (1969) offer a different

perspective, which is the number of factors can be identified earlier, based on the pur-

pose of the research study.

30

Thus, based on previous studies, and the purpose of this study. I will conduct fac-

tor analysis by pre-determined number of factors.

3.5.3 Reliability analysis

After data collected, it is difficult to ensure data collected are reliability or not,

means that we can really trust the data collected on or not. To ensure data collected is

reliable, we must analyze the reliability of data based on Cronbach's α value. If

Cronbach's α greater than 0.7 mean that variable is accepted for its reliability, and

Cronbach's α in less than 0.35 mean that the reliability of the variables are very low and

should be removed (Robinson, Shaver, and Wrightsman 1973).

3.5.4. Regression Analysis

After the data is ensured validity and reliability, the last method to evaluate and

test the hypothesis is regression analysis method. Regression analysis is a statistical

method commonly used to analyze the correlation between two factors. Normally re-

searchers look at the relationship cause - results of model. The inspection will be done

with the help of SPSS software based on the coefficient as R2, adjusted R2, pvalue, beta

... to assess the hypothesis is supported or not and the extent of human influence this

31

factor on how other factors. Theo Daniel Muijs who wrote the book "Doing quantitative

research in education" recommended for the R square value of should be: <0.1: poor fit;

0.11-0.3: modest fit; 0.31-0.5: moderate fit;> 0.5: strong fit.

32

Chapter 4: Data Analysis and Result

4.1 Descriptive analysis

The detail description of samples or the respondents’ personal data, such as their

gender, age, education ..and so on will be analyzed. Every construct of the data will be

analyzed in percentage, frequency distribution in order to know the sample distribution.

Table 8: Descriptive analysis

Variables Frequency Percentage

(%)

Age

Under 18 years 30 17.9

19-20 years 90 53.6

21-22 years 46 27.4

Over 22 years 2 1.2

Gender Female 52 31

33

Male 116 69

Education

Lower high school 22 13.1

High school 50 29.8

College 55 32.7

Bachelor 27 16.1

Higher Bachelor 14 8.3

4.2 Factor Analysis

Tucker et al (1969) offer a different perspective, which is the number of factors

can be identified earlier, based on the purpose of the research study. Hair et al. sug-

gested that an item is significant if its factor loading is greater than 0.50. From the table

show items is strongly validity.

Thus, based on previous studied, and the purpose of this thesis. I will conduct fac-

tor analysis method by pre-determined number of factors.

Table 9 shows the results of the VARIMAX rotation on the original 16 items con-

strained to six factors. We can see that, the loading value smallest is CUS1 (0.555),

34

which is greater that 0.5, so that, all loading value of each questions are greater than 0.5

mean that, the data collected is validity.

Table 9: Factor Analysis

Perceived

Quality Loyalty

Customer's

Complaints Expectation

Perceived

Risk

Customer's

Satisfaction

lo1 .855

lo2 .857

lo3 .882

cus1 .707

cus2 .649

cus3 .555

com1 -.880

com2 -.870

PV1 .863

PV2 .878

35

EX1 .900

EX2 .892

PQ1 .772

PQ2 .781

PQ3 .822

PQ4 .855

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

4.3 Reliability Analysis

Before analyzing the relationship between factors, it is important to ensure the re-

liability of the factors. In order to test reliability of the factors, and scale to ensure ap-

propriate with the questionnaire. Reliability of a factor can be determined based on the

value of AVE or conbach's α values. This thesis will use the cronbach's α value to mea-

sure reliability of factors including the Customer loyalty, Customer Satisfaction, Cus-

tomer Complaint, Expectation Perceived value and Perceived quality. Cronbach's α

36

value greater than 0.7 should be accepted, if cronbach's α values less than 0.5 need be

removed:

Table 10: Reliability Analysis

Factors Cronbach’s α

Customer Loyalty 0.857

Customer Satisfaction 0.940

Customer Complaint 0.934

Expectation 0.928

Perceived Value 0.916

Perceived Quality 0.902

From the table 8 show that, the cronbach’s α of each factors is very high. The

value of conbach’s α for each factors are greater than 0.5. So, factors have level of relia-

bility is very good.

37

4.4 Regression Analysis

In this study, linear regression was adopted to examine the relationships between

independent variables and dependent variables to test our research hypotheses.

4.4.1 Linear Regression Analysis for Customer Loyalty

The results of linear regression analysis for customer's loyalty in the Table below:

Table 11: Linear Regression Analysis for Customer Loyalty

Constructs St. coefficients β t value R2 Adj-R2 F value

Customer's

Satisfaction

0.521*** 5.270

0.158 0.148 15.527***

Customer

Complaint

- 0.230* - 2.331

Dependent variable: Customer's Loyalty

***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1

The final model shown in the Table 10 had a good overall fit (15.527***, p =

0.000). And at significant level 0.05, Customer's Satisfaction (H8 and H9) have signifi-

cant positive relationships with Mobile phone Customer Loyalty. But Customer Com-

38

plaint has beta equal -0.230* mean that Customer complaint has a negative affect cus-

tomer's satisfaction Therefore, we conclude that hypotheses H8 and H9 are supported.

We also can see in the table that the adjusted R2 value for constructs, namely are Cus-

tomer Satisfaction and Customer Complaint is 0.148, meaning that the explanation abil-

ity of the independent constructs is good for our dependent variable, Customer Loyalty.

4.4.2 Linear Regression Analysis for Customer Satisfaction

The results of linear regression analysis for Mobile Phone Customer Satisfaction

are shown in the Table below:

Table 12: Linear Regression Analysis for Customer Satisfaction


Customer

Complaint

-0.372*** -6.853

0.682 0.674 87.355***Perceived

Value

0.132* 2.354

Expectation 0.207*** 3.984

39

Perceived

Quality

0.366*** 5.954

Dependent variable: Customer's Satisfaction

***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1

The final model shown in the Table 10 had a good overall fit (F = 87.355***, p =

0.000). And at significant level 0.05, Perceived Value, Expectation and Perceived qual-

ity (H3, H5, and H6) have significant positive relationships with Customer Satisfaction.

Besides, we can see that the construct namely is Customer Complaint has beta value

equal -0.372 mean that Customer Complaint has a negative affect customer satisfaction,

or the hypothesis H7 is supported. Therefore, we conclude that hypotheses H3, H5, H6

and H7 are supported. We also can see in the table that the adjusted R2 value for con-

structs, namely Expectation, perceived quality, perceived value and Customer Com-

plaint. is 0.674, meaning that the explanation ability of the independent constructs is

good for our dependent variable, customer’s satisfaction.

40

4.4.3 Linear Regression Analysis for Perceived Value

The results of linear regression analysis for Perceived Value as Table below:

Table 13: Linear Regression Analysis for Perceived Value


Expectation 0.251 *** 3.614

0.349 0.341 44.206***Perceived

Quality

0.437 *** 6.289

Dependent variable: Perceived Value

***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1

The final model shown in the Table had a good overall fit (F = 44.206***p =

0.000). And at significant level 0.05, Expectation and Perceived quality (H2, H4) have

significant positive relationships with Perceived value. Therefore, we conclude that hy-

potheses H2, H4 are supported. We also can see in the table that the adjusted R2 value

for two constructs, Expectation and Perceived Quality is 0.341, meaning that the expla-

41

nation ability of the independent constructs is good for our dependent variable, Per-

ceived value.

4.4.4 Linear Regression Analysis for Perceived Quality

The results of linear regression analysis for perceived quality shown in the Table

below:

Table 14: Linear Regression Analysis for Perceived Quality

Constructs

St. coeffi-

cients β

t

value

R2

Ad

j-R2

F

value

Expectation

0.429***

6.

124

0

.184

0.17

9

37.507

***

Dependent variable: Perceived quality

***p<0.001, **p<0.01, *p<0.05, 0.05<+p < 0.1

The final model shown in the Table had a good overall fit (37.507***, p = 0.000).

And at significant level 0.05, Expectation (H1) have significant positive relationships

with Perceived quality. Therefore, we conclude that hypotheses H1are supported. We

also can see in the table that the adjusted R2 value for constructs, namely Expectation is

42

0.179, meaning that the explanation ability of the independent constructs is good for our

dependent variable, Perceived quality.

4.5.1 Result Model

Figure 6: Result Model

43

Chapter 5 Conclusion

5.1 Research Result

In chapter four we analyzed collected data based on four methods of analysis such as

descriptive analysis, factor analysis, reliability analysis and regression analysis to assess

and test the hypotheses.

The final results are summarized as the following table:

Table 15: Research Result

Hypotheses Results

H1: Expectation has a positive affect perceive quality Supported

H2: Expectation has positive affect perceived value Supported

H3: Expectation has positive affect customer's satis-

faction

Supported

H4: Perceived quality has positive affect perceived

value

Supported

44

H5 Perceived quality has positive affect customer's

satisfaction

Supported

H6 Perceived value has positive affect customer's sat-

isfaction

Supported

H7: Customer's complaint has negative affect cus-

tomer's satisfaction

Supported

H8 Customer's complaint has negative affect cus-

tomer Loyalty

Supported

5.2 Significance and contribution

From the analysis, we can see Customer's complaints have negative affect cus-

tomer satisfaction and their loyalty. mean that the hypothesis H7 and H8 are supported,

these hypothesis also supported by many From pervious researches (Tor Wallin An-

dreassen, 1999). Buyers tend to recommend their friends and people related about the

products they are using. So, if they tell their good experience about product or service,

which will help the company have more new customers and increase their market share

and profitability. Conversely, if they tell their bad experience about the products or ser-

45

vice, which is the cause for losing potential customers and therefore will lead to reduced

income and profits. In addition, the complainant is not responding adequately tend to





(Fornell and Wernerfelt, 1989). Customer's complaint means that the negative impact of

customer loyalty (Tor Wallin Andreassen, 1999). The complaints reflect customer's dis-

satisfaction with the product, or service providers.

the result of previous experience in consumer or information through media chan-

nels for the product or service. In some sectors, may be this variable has no relation to

perceived value, this result is also presented in the study by Martensen et al (2000). In

fact, higher expectation, customer wants to purchase more, but expectation higher due

to vendor’s possibility satisfy customer more difficult. The researchers also presented

some degree of customer expectations (Parasuraman et al, 1991; Zeithaml et al, 1993).

In the thesis also give the result in which the customer's expectation have strongly

46

impact customer's satisfaction and their perceived value.

Perceived quality have strongly impact customer satisfaction and perceived value

is the result of the thesis. This result have supported by many previous study such as

(Carman 1990; Boulding, Staelin & Zeithaml 1993, Parasuraman et al 1996), others re-

ported report showed this influence only is indirect effect through customer's satisfac-

tion (Cronin & Taylor in 1992; Sweeney, Soutar, & Johnson 1999)

Another result of this thesis is perceived value have impact customer satisfaction,

the result have supported by some of pervious researches of Martensen. A., Gronholdt,

L. and Kristensen, K. (2000), Kotler (2003).

The important factor in research model is customer satisfaction, which have

strongly impact customer loyalty with the beta value equal 0.521. Same as the result of

this thesis O'Loughin C. and Coenders, 2004) addressed that customer’s satisfaction be-

comes an important asset for businesses and organizations in an effort to improve the

quality of service, to maintain loyalty, improve the competitiveness of enterprises

(O'Loughin C. and Coenders, 2004)

This thesis showed the overall picture of factors affect on customer’s loyalty and

customer’s satisfaction. So that, help manager, leader of mobile company have deeply

47

look on factors affect on customer’s satisfaction and customer’s loyalty from that the

leader could make strategies better.

This study has implications for leaders who want to improve their customer

satisfaction and customer’s loyalty in order to improve their ability to retain customers,

enhance their competitiveness against the competition. The final model in this thesis, is

an overview picture of the factors that influence customer satisfaction and customer’s

loyalty. When they looking forward at the final model, the leaders can easily find that

customer’s satisfaction is the most of factor affecting customer’s loyalty. However,

customer’s complaint has strongly negative impact to both of customers satisfaction and

customer’s. Therefore, the leader should have best strategy in order to pull down the

customer complaint. From the research result, the leader, owner or marketing manager

can make their decisions better.

Besides, this study has academic significance, the results of this study can be used

as a reference model of the factors that affect customer satisfaction. So that, these

studies can be extended by the addition of new factors affecting customer satisfaction.

Other researchers can also use this model to assessing customer satisfaction in other

areas.

48

5.4 Limitation

In my thesis have conducted analysis based on the analysis methods are much

used by other researchers in their studies, as well as I worked hard during the research

and presentation for this study. However, my English is not the native language. There-

fore I have encountered many difficulties in finding the previous study as the back-

ground for my research. I also have difficulty in expressing my understanding by Eng-

lish. The time and financial support are limited not allow I can expand more factors in

my research model. Therefore, I can hardly conduct research further on the factors as

well as limited research in a number of factors affect customer satisfaction and their loy-

alty.

5.5 Research on future

Although, this thesis attempted to study by all of my effort. However, there are

many other factors affect to customer satisfaction and their loyalty, thus in this thesis

can not research such as: social, experience of users ... The future research should study

more factors affect customer satisfaction and their loyalty.

49

On the other hand, the number of samples used in this thesis is not large to be able

analyze and give more accurate results. The next study should expand the number of

samples to study further aim to assess more accurately the impact of these factors.

50

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