Department of Business Administration
I-Shou University
Master Thesis
Satisfactions toward Service Quality and
Overall Satisfaction for Consumers in Tel
Company: The Case of VinaPhone Company
in Hanoi, Vietnam
Advisor
: Dr. Jiin Ling Lin
Co-Advisor
: Dr. Nguyen Dang Huy
Graduate Student : Trinh To Quyen
Acknowledgements
I am heartily thankful to my supervisor, Dr. Jiin-ling Lin, whose encouragement, guidance and support from the initial to the final level enabled me to develop and complete my thesis. I would like to express my sincere gratitude to my co-supervisor Dr. Tran Dang Huy for his instruction and guidance.
Also I would to thank all professors from ISU and HUBT in helping me to broaden my view and knowledge.
My deepest appreciation to my friends in helping me answering and collecting information.
I thank heartily to my husband in reading and correcting the thesis grammars and my deepest
Abstract
The stuG\DLPVWRH[DPLQHUHODWLRQVKLSVEHWZHHQFXVWRPHUV¶VDWLVIDFWLRQVDQGVHUYLFHTXDOLW\ at Vietnam Telecom Services Company. Quantitative methods and SPSS software (version 20)
were used and data were collected from 317 mobile telecommunications service users of
Vietnam Telecom Services Company (VinaPhone) during May to June 2015 in Hanoi. Results
showed service quality and overall customer satisfaction were strongly related at Vietnam
Telecom Services Company in Hanoi. The findings will help VinaPhone to develop better
VWUDWHJLHVIRULPSURYLQJWKHLUFXVWRPHUV¶VDWLVIDFWLRQ
Keywords: Customer Satisfaction, Satisfactions toward service quality, Overall satisfaction,
Table of contents
Acknowledgements ... i
Abstract ... ii
List of Figures ... vi
List of Chart ... vi
List of Tables ... vii
List of Abbreviations ... viii
Chapter1 INTRODUCTION ... 1
1.1. Research Background ... 1
1.2. Problem Statement ... 3
1.3. Research Significance ... 4
Chapter 2 LITERATURE REVIEW ... 5
2.1. Customer and Customer satisfaction ... 5
2.1.1. Customer ... 5
2.1.2. Customer roles ... 5
2.1.3. Customer satisfaction ... 5
2.2. Service quality and satisfactions toward service quality ... 7
2.2.1. Service quality ... 7
2.2.2. Satisfactions toward service quality and models of measurement ... 10
2.2.3. Models of measurement for satisfactions toward service quality ... 11
2.3. The overall satisfaction and the relationship between satisfactions toward service quality and overall satisfaction ... 15
2.4. Telecommunication in Vietnam ... 16
2.5.Introduction of Vinaphone Telecom services company and Hanoi VinaPhone ... 17
2.5.2. VinaPhone telecom services company ... 19
2.5.2.1. History ... 19
9LQD3KRQH¶VPission ... 21
2.5.2.3. Vision ... 21
2.5.2.4. Business philosophy ... 21
2.5.2.5. Value of the brand ... 21
2.5.2.6. Functions of VinaPhone telecom services company ... 22
2.5.2.7. Organizational structure of VinaPhone ... 23
2.5.3. Hanoi VinaPhone ... 23
2.5.3.1. Overview of Hanoi telecommunications market ... 23
2.5.3.2. Telecommunications service system provided by VinaPhone Hanoi ... 25
2.5.3.3. Situation of business development VinaPhone Hanoi ... 26
2.5.3.4. Evaluation of business situation of VinaPhone Hanoi ... 28
2.6. General evaluation ... 30
Chapter3 METHODOLOGY ... 31
3.1. The framework of this study ... 31
3.2. Research methods ... 32 3.2.1. The procedure ... 32 3.2.2. Sampling Design ... 33 3.3. Data Analysis ... 34 3.4. Data collection ... 34 3.5. Measures ... 35
Chapter 4 RESULT AND DISCUSSION ... 37
4.1. Data procedure ... 37
4.2. Statistical description ... 37
4.4. Testing the hypothesis ... 40
4.4.1. Linear regression analysis ... 40
4.4.2. One-way ANOVA ... 43
Chapter 5 CONCLUSION AND SUGGESTIONS ... 46
5.1. Research results ... 46
5.2. Theoretical and Practical Implications ... 46
5.2.1. Focus on modern technical equipment, which are a competitive advantage to increase service quality DQGFXVWRPHUV¶VDWLVIDFWLRQ ... 47
5.2.2. Continue the competition in terms of price and promotion ... 47
5.2.3. Step-by-step improve reasonable care and serving ability to consumers ... 48
5.3. Difficulties during the research ... 50
5.4. Limitations of the study and future research directions ... 51
References ... 52
List of Figures
Figure 2.1. Model of seven quality-related spacings ... 9
Figure 2.2. Model of the relationship among 10 factors of quality and customer expectation ... 10
Figure 2.3 SERQUAL model (1988) ... 15
Figure 2.4. Organizational structure of VinaPhone ... 23
Figure 3.1. Hypothesis map ... 32
List of Chart
Chart 5.1. Reasons customers are leaving ... 49List of Tables
Table 2.1 Reference models of study ... 12
Table 2.2 SERQUAL model (1985 - 1988) ... 14
Table 2.3 History of VinaPhone ... 20
Table 2.4 Number of prepaid and postpaid accounts of the three major mobile service companies in Hanoi during 2010-2011 ... 26
Table 2.5 Records of postpaid accounts at VinaPhone Hanoi (2010-2011) ... 27
Table 4.1 Descriptive results ... 37
7DEOH5HOLDELOLW\&URQEDFK¶V$OSKDRIUHVSHFWLYHIDFWRUV ... 40
Table 4.3 R2 analysis ... 41
Table 4.4 Regression analysis ... 42
Table 4.5 ANOVA analysis 1 ... 43
List of Abbreviations
GSM Global System for Mobile Communications
VNPT Vietnam Posts and Telecommunications Group
VoIP Voice over IP
GPC G=GSM; P=Paging; C=CardPhone
HTMobile Hanoi Telecom Joint Stock Company
Gtel Global Telecommunications Corporation
Viettel Viettel Military Telecommunications Group
Chapter1 INTRODUCTION
1.1. Research Background
The customer is considered as a vital element of any enterprises in the 21st century. Obtaining
customers is difficult but retaining them becomes more challenging. Any enterprises making
their customers satisfied will develop well. Therefore, the concept of "customer satisfaction"
has become familiar to almost all enterprises. Customer satisfaction is formed on the basis of
experience, especially accumulated while purchasing products or services1. In other words,
actual experience decides customer satisfaction, considered as the ultimate purpose that
product quality has driven towards. For an enterprise, the decisive factor for customer loyalty
is the customer value. The customer value creates satisfaction which is satisfaction level of
customers2. In the competitive context of supply markets, to ensure the harmony between
customer benefits and corporate profits, it is needed for enterprises to create customer
satisfaction with their products and services higher than that of their opponents in the market.
Customer satisfaction affects the loyalty to corporate brand3. Without customer satisfaction,
the supplier will have difficulty in retaining existing customers and face the risk for losing
other potential customers because a disappointed customer will tell other people. Information
related to a decline in customer satisfaction in comparison with their opponents is considered
as the warning sign for a loss of customers and reduced market share in the future. This is a
basis for the enterprises to adjust their own business strategies in accordance with the
PDUNHW¶V GHPDQG $FWXDO EXVLQHVV KDV VKRZQ WKDW RQH HQWHUSULVH LQFUHDVHV loyal
1
Thi Thu Huong Pham (2014). Definition of customer satisfaction. Retrieved on 16/08/2015 from ³KWWS NTWNGGX\WDQHGXYQ+RPH$UWLFOH'HWDLOYQ GLQK-nghia-ve-su-hai-long-cua-khach-KDQJ´
2
A study on satisfaction (2014) (comprehensive). Retrieved on 16/08/2015 from
³KWWS ZZZYPVUFRPYQLQGH[SKSGLFK-vu-tu-van/nghien-cuu-ve-su-hai-ORQJ´
3
Phuong Linh Huynh & Tien Thuan Luu (2012). Analysis of factors affecting customer loyalty towards Pepsi
customers thanks to their satisfaction with services, the profit will further rise in a range of
25% - 85%4. Customer satisfaction can be considered as the key to competitive advantage of
one enterprise. For service enterprises, the method of meeting customer satisfaction has
particular features. While evaluating commodity, the customer will make use of tangible
factors such as color, fitness, fashionable style, weight and size. Obviously, they cannot use
such reasonable factors for the assessment of services5. When the product dedicated to
customers is an intangible product, customer perception and product evaluation need to be
considered with a separate scale. To be more specific, service quality becomes a vital factor
closely linked to consumer satisfaction. Service quality includes all customer values of the
enterprise that the customers can perceive6.
In the field of telecommunications, service quality consists of price, technical means and
human-related factors such as serving capacity and customer response. The difference of
mobile telecommunication service sector in comparison with other sectors is: to make
customers satisfied, it is necessary to have separate means easily perceived by customers in
line with the quality of supplied mobile telecommunication services.
In Vietnam, mobile communication networks have developed relatively rapidly with an
average rate of about 150% a year7. VinaPhone is a mobile network operator, which is owned
by Vietnam Posts and Telecommunication Group. Experiencing nearly 20 years of
development, VinaPhone has gradually become one of the largest mobile networks in
4
Thi Tuyet Trinh Le (2012). $VWXG\RQWKHVDWLVIDFWLRQRIFXVWRPHUVXVLQJ9LHWWHO¶VPRELOHWHOHFRPPXQLFDWLRQV services in Binh Dinh. Danang University, pp 2-3.
5
Van Tuyen Nguyen (2013). Factors generating customer-perceived value of hotel service quality (in case of A
Dong hotel located in Da Lat). Journal of Social Science No. 6 (178).
6
Definition of customers (2014)(comprehensive). Retrieved on 16/08/2015 from
³KWWS YLQDVWRQHFRPIRUXPWKUHDGVNKDL-niem-ve-khach-KDQJ´
7
Nha Trang Tran (2006). Solutions for enhancing the competitiveness of mobile phone services of Vinaphone. Faculty of Economics of International Trade, Foreign Trade University.
Vietnam. Nevertheless, with the shared market share, VinaPhone has continuously changed
their own business policies towards stable revenue and customer retention in the open-door
stage. Facing such current situation, the study is proposed to analyze customer satisfaction
based on the quality of services supplied by VinaPhone and consider general customer
satisfaction. Accordingly, the study will put forward feasible approaches to help VinaPhone
maintain loyal customers and attract new customers in a highly competitive and
commercialized market of telecommunications in Vietnam nowadays. The thesis does not
focus on building the structure of mobile telecommunications network or finding out its operation
but intensively studies the impact factors to develop VinaPhone mobile networks in Hanoi
(Vietnam), successfully and effectively through measuring the customer satisfaction.
1.2. Problem Statement
Currently, VinaPhone has lost its leading position in the telecom market. The market share can
be evaluated basing on the number of subscribers and annual revenue. In terms of revenue, in
the end of 2014, VinaPhone only had 26 million subscribers (accounting for 20% of total
subscribers), MobiFone had 40 million and for Viettel the figure was more than 55million. In
terms of revenue, in 2014, Vinaphone was ranked the third with total revenue of 25.6
thousand billion VND, which was much lower compared with 36 thousand billion VND of
MobiFone and 196 thousand billion VND of Viettel. (Source: Hanoi Department of
Information and Communications)
In the diverse mobile telecommunications market like Hanoi, the customers have had more
options of services and therefore it forces VinaPhone to consider an appropriate business
strategy with a view to retaining more old customers (loyal customers) and attracting new
customers even in the context of fierce competition.
sector. Within the scope of the research, previous studies have done studies on the relationship
between service quality and customers¶ satisfaction for the telecom sector in Saudi Abaria (Ray, 2014), factors of consumer satisfactions(Qureshi, 2012);A QFD strategy for improving
customer satisfaction (Hussian,2011); the impact of switching costs on the customer
satisfactionǦloyalty link (Lee, Lee, and Feick, 2001). :
In Vietnam, together with the widespread development of mobile telecommunication network,
there have been quite many studies into this field, especially many studies about Vinaphone
Company. Some of these incluGH ³$ VWXG\ LQWR FXVWRPHUV¶ VDWLVIDFWLRQ ZLWK 9LQD3KRQH VHUYLFHV LQ 'D 1DQJ FLW\´ 'D 1DQJ 8QLYHUVLW\ ³$ VWXG\ LQWR WKH TXDOLW\ RI 9LQD3KRQH PRELOH QHWZRUN LQ 4XDQJ 1DP SURYLQFH´ E\ /H (2013) ³(YDOXDWLQJ FXVWRPHUV¶ satisfaction with mobile network service (Thua, 2014); ³5DLVLQJFXVWRPHUV¶VHUYLFHTXDOLW\RI 9LQD3KRQH1DP'LQK´E\9X( 2009).
Therefore, this study attempt to research Satisfactions toward Service Quality and Overall
Satisfaction for Consumers in Tel Company: The Case of VinaPhone Company in Hanoi,
Vietnam´XWLOL]HVthe research results from other studies.
1.3. Research Significance
This study analyzed and identified JURXSVRIIDFWRUVWKDWKDYHPDMRULQIOXHQFHVRQFXVWRPHUV¶ satisfaction. Furthermore, it suggests feasible solutions that are suitable with the current
Chapter 2 LITERATURE REVIEW
2.1. Customer and Customer satisfaction
2.1.1. Customer
To grasp customer demands, it is necessary for the enterprise to know who their customers are
and what their roles are. According to Peters Drucker (The Practice of Management, 1954),
WKH FRPSDQ\¶V REMHFWLYH LV WR ³FUHDWH FXVWRPHUV´ Tom Peters judged WKH FXVWRPHUV DUH ³DQ asset increasing the added values.´8In broad terms, the customers are all entities (individuals, groups, organizations, etc.) having the demand and directly or indirectly carry out the
purchase and sales of services and commodity with stores and manufacture enterprises. The
customers are the people who we serve whether they charge for our services or not.
2.1.2. Customer roles
In the current market economy, the customers are considered as the God. The selection of
what the consumer service is and what degree they select it completely depends on customer
decision.
To survive and maintain corporate position in the market, it is necessary for the businesses to seek
to meet customer needs, find out customer needs and satisfy the customer requirements to take
profit. The customers seek values to satisfy their own demands and therefore, the suppliers
offering the highest value will be selected. Optimizing values brings customer satisfaction;
thereby, they will become loyal to the supplier.
2.1.3. Customer satisfaction
8
Thi Thu Huong Pham (2014). Definition of customer satisfaction. Retrieved on 16/08/2015 from ³KWWS NTWNGGX\WDQHGXYQ+RPH$UWLFOH'HWDLOYQ GLQK-nghia-ve-su-hai-long-cua-khach-KDQJ´
When using a service, the customers often compare perceptible service with desired service
and if actual use of the service is met better than the wants, they are satisfied. Customer
satisfaction is formed on the basis of their experience, especially accumulated when going
shopping and using a product or a service9.
According to Fornell (1995), the satisfaction or disappointment after consumption is defined
ascustomer response to the evaluation by perceiving difference between pre-consumption
expectation and actual post-consumption perception of a product. Hansemark and Albinsson
(2004) stated, "customer satisfaction is WKH FXVWRPHU¶V RYHUDOO attitude towards one service provider or an emotional rresponses to the things that they have predicted before and received
later on towards the satisfaction of several demands, objectives oU ZDQWV´ Zeithaml and Bitner (2000) MXGJHG³FXVWRPHU satisfaction is the customer assessment of one product or one VHUYLFHPHHWLQJWKHLUQHHGVDQGH[SHFWDWLRQVEHIRUH´. Kotler (2000) defined, "the satisfaction is RQH SHUVRQ¶V VDWLVIDFWLRQ RU GLVDSSRLQWPHntwith results of actual received comparison against a product (or result) in connection with WKHLUH[SHFWDWLRQV´
Thus, the customer satisfaction is the result of comparison between actual perceptions and and
initial expectations10. If actual benefits do not satisfy their expectations,consumersfeel
disappointed; if actual benefits meet consumers¶ expectations, consumers feel satisfied. If actual benefits are higher than their expectations, it will lead to higher satisfaction orsatisfaction beyond
theirexpectations11.
9
Thi Tuyet Mai Le (2013). A study into the quality of VinaPhone mobile network in Quang Nam province. Master thesis. Da Nang University.
10
Thi Tuyet Mai Le (2013). A study into the quality of VinaPhone mobile network in Quang Nam province. Master thesis. Da Nang University.
11
Thi Thu Huong Pham (2014). Definition of customer satisfaction. Retrieved on 16/08/2015 from ³KWWS NTWNGGX\WDQHGXYQ+RPH$UWLFOH'HWDLOYQ GLQK-nghia-ve-su-hai-long-cua-khach-KDQJ´
2.2. Service quality and satisfactions toward service quality
2.2.1. Service quality
Under the International Organization for Standardization (ISO), the draft of DIS 9000: 2000
has proposed a definition of quality as follows: "Quality is the ability to gather features of a
product, system or process in the aim of meeting customer and stakeholder requirements´In case of considering the quality of a service as meeting the customer needs and wants, it can be
defined as difference between the customer wants and the supplied service. If the expectation
exceeds the ability to meet,it will make the customers feel dissatisfied.
In fact, the assessment of service quality is not simple and easy to conduct. Lehtinen and
Lehtinen (1982) ³VHUYLFH TXDOLWy must be assessed by two aspects, namely, (1) process of service supply and (2) service results. Gronroos (1984) also suggested two fields of service
quality, namely, (1) technical quality and (2) functional quality.
Nevertheless, definition and method of quality assessment frequently mentioned by the
researchers in their studies are that the service quality is considered as the spacing between
the service-related expectation and the customer perception when using a service (Parasurman,
Zeithaml and Berr, 1985&1988). The spacing includes:
-
Spacing of understanding-
Spacing of standards-
Spacing of transfer: difference between specific transfer standards and actual implementation of the service provider.-
Spacing of internal communication: difference between corporate advertising and sales personnel¶VWKRXJKWRISURGXFWIHDWXUHVHWF-
Spacing of perception: difference between the transferred reality and the things that the customers have considered as having received.-
Spacing of the way to convey: difference between corporate communication efforts and the things that the customers have thought as a promise.-
Spacing of service: difference between the things that the customers have expected and their perceptions of the supplied service.Figure 2.2. Model of the relationship among 10 factors of quality and customer expectation
2.2.2. Satisfactions toward service quality and models of
measurement
Customer satisfaction towards service quality is the issue continuously discussed and found out by researchers for multiple decades. Accordingly, the studies on customer satisfaction in service sectors have been conducted, showing that service quality and customer satisfaction are two distinct concepts without matching or interchanging. According to Parasuraman,
Zeithaml, & Berry (1993), there are several differences existing between service quality and
FXVWRPHU VDWLVIDFWLRQ LQFOXGLQJ PRVW EDVLFDOO\ ³FDXVH DQG HIIHFW´ 0HDQZKLOH FXVWRPHU satisfaction was affected by a nuPEHU RI IDFWRUV VXFK DV SURGXFW¶V quality, service quality, pricing, situational factors and personal factors (Zeithalm & Bitner, 2000).
In fact, despite being considered as two distinct concepts, customer satisfaction and service quality are closely linked to each other in the study on services (Parasuraman, Zeithaml, &
Berry, 1988). The previous studies have shown that service quality is the cause for customer
satisfaction (Cronin and Taylor, 1992; Spreng and Taylor, 1996). The reason is that service quality is related to the supply of a service meeting the need of customers; meanwhile, customer satisfaction is measured only after having used such supplied service. Therefore, customer satisfaction and service quality are considered as the effect and the cause, respectively. Customer satisfaction may be predicted and expected whereas service quality is an ideal standard. Customer satisfaction is a general concept, demonstrating their satisfaction when using a offered service; meanwhile service quality only focuses on specific components of a service (Zeithaml & Bitner, 2000). After studying and verifying previous studies, the perception of service quality leads to customer satisfaction and service quality is regarded as a prerequisite of satisfaction (Cronin and Taylor, 1992; Spereng, 1996) as well as a fundamental factor affecting the satisfaction (Ruyter & Bloemers, 1997).
Despite the existence of a relationship between service quality and customer satisfaction, there have not been multiple studies focusing on the verification of satisfaction towards service quality, explaining components of service quality especially for each service sector
(Walfried M. Lassar, Chris Manolis, Robert D. Winsor,2000). While studying the concept of
satisfaction towards service quality, it is necessary to consider customer satisfaction towards the studied components of service quality.
2.2.3. Models of measurement for satisfactions toward service
quality
In terms of services, the studies of customer satisfaction and satisfactions toward service
Gronroos (1984); Parasuraman, Zeithaml, & Berry (1985; 1988); Cronin and Taylor (1992);
Oliver (1993); Gerpott, Rams and Schindler (2001); and Akbar &Parvez (2009). These
models have made considerable contribution to the study of service marketing as well as
multiple fields of services including mobile telecommunications services.
Table2.1.Reference models of study
Reference models of study Year Main contents
V.A. Zeithaml, M.J.Bitner&
D.D. Grenler
2000
Customer satisfaction is under the influence
of
five main factors as follows:
6HUYLFHTXDOLW\ 3URGXFWTXDOLW\ 3ULFH
6LWXDWLRQDOIDFWRUs 3HUVRQDOIDFWRUV
Rust and Oliver 1994
The model is built based on of Gronroos
(1984) and %LWQHU ¶VPRGHO7KHUHE\ service quality includes three components,
namely, service product, service transfer
and service environment. Such model
focuses on existence of the relationship
among service quality, service value and
J.J. Cronni, S.A. Taylor 1992
The SERVPERF scale also uses 22 items of
similar statement as the questions related to
customer perception in the SERVQUAL
model, skipping the questions related to
expectation.
Parasuraman, Zeithaml, &
Berry
1985, 1988,
1991
This is the model applied for the studies on
intangible service products. Impact factors
are assessed under the distance with five
expected components and twenty-two
observed variables. Such five expected
components include Reliability, Response,
Assurance, Sympathy and Tangibility.
Gronroos 1984
The Nordic model studies how technical
quality and functional quality affect the
perceived service quality and the expected
service quality.
Based on traditional definitions of service quality, Parasuramanet all (1988) established
SERVQUAL scale to assess service quality including 22 observed variables under 5
components in the aim of measuring the expected quality and the perceptible service. The
PRGHO¶V VWUHQJWK LV FRYHULQJ DOPRVW DOO DVSHFWV RI D VHUYLFH 1HYHUWKHOHVV LW LV GLIILFXOW WR analyze because of multiple components not reaching different values.
In 1988,Parasuraman corrected and formed a new model including 5 components as follows:
2. 6HUYLQJDELOLW\ VKRZLQJWKHVWDII¶VSURIHVVLRQDOLVPZKLOHVHUYLQJFXVWRPHUV.
3. Ability to satisfy: showing the desire to supply services to consumers in a sufficient and timely manner.
4. 6\PSDWK\ VKRZLQJWKHVWDII¶VFRQFHUQWRFXVWRPHUQHHGV.
5. Tangible means: shown in clothes, outward appearance, equipment, civilization in places of customer service, etc.
Table 2.2 SERQUAL model (1985 ± 1988)
Original model (1985) Corrected model (1988)
Reliability Reliability
Responsiveness Responsiveness
Tangible means Tangible means
Serving ability Politeness Trust Safety Assurance Access Information Customer understanding Empathy
Figure 2.3 SERQUAL model (1988)
2.3. The overall satisfaction and the relationship between
satisfactions toward service quality and overall satisfaction
According toPaul Farris, Neil Bendle, Phillip Pfeifer, David Reibstein (2010), ³&XVWRPHU satisfaction is measured at the level of the individual, but it is almost always at an aggregate OHYHO ,W FDQ EH DQG RIWHQ LV PHDVXUHG DORQJ YDULRXV GLPHQVLRQV´12. Thus, the concept of overall satisfaction is a generalized concept. Satisfaction towards service quality and other objective factors is separately measured with different levels of satisfaction. The consideration of one overall value for such satisfaction gives us a more comprehensive view of customer satisfaction towards enterprises.
"For example, hotel leader might ask customers to rate their experience with its front desk
12
Paul W. Farris; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive
Guide to Measuring Marketing Performance.(2nd Edition). Hardcover, pp 1-27
Customer
satisfaction
Reliability
Empathy
Responsiveness
Assurance
Tangibles
means
and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction with your VWD\´13
In the framework of study on telecommunications, overall satisfaction referred here is primarily reviewed subject to measuring satisfaction towards factors of the supplied telecommunications service quality. In addition, it takes overall satisfaction on the impact generalization of objective factors such as demographic characteristics and consumer behaviors into consideration.
Generally, it is possible to consider the relationship between customer satisfaction and service quality and overall satisfaction is a regressive relationship. Accordingly, a change in the value of satisfaction towards service quality lead to that of overall satisfaction.
2.4. Telecommunication in Vietnam
With the developing country like Vietnam, mobile telecommunications have made great
contribution to economic growth and improvement of social quality. In Vietnam, at the
present time, three GSM mobile networks includes MobiFone , VinaPhone and Viettel which
accounted for over 90 % of the market are owned by state 100% .Vinaphone is a mobile
network operator, which is owned by Vietnam Posts and Telecommunication Group. Formally
launched in June 1996, VinaPhone is one of the first GSM network in Vietnam, together with
MobiFone. In 1999, VinaPhone was the first mobile network with 100% coverage in all
provinces and cities all over the country. It was also the first network to implement
international roaming service. More than ten years ago, VinaPhone had the biggest market
share in Vietnam telecom sector.
During the period of open door policy and international economic integration, and due to the
13
Upper Saddle River, New Jersey: Pearson Education (2010). The Marketing Accountability Standards Board (MASB) .Part of its ongoing Common Language in Marketing Project. Licensed under Creative Commons Share Alike and Gnu Free Documentation License. Inc. ISBN 0-13-705829-2.
anti-protectionism policy of the state in telecom sector, a number of other mobile network
operators have been established such as Viettel, SFone of Saigon Postel Corp and etc. These
companies have been competing with VinaPhone for the market share in telecom sector.
2.5.Introduction of Vinaphone Telecom services company
and Hanoi VinaPhone
2.5.1. Telecommunication in Vietnam and the reason to choose
VinaPhone company
In recent years, Vietnam is the country possessing a relatively rapid growth rate of mobile
telecommunications network. According to the ITU statistics, Vietnam has ranked 8th on the
density of mobile subscribers14. Between 2008 and 2010, the growth rate of broadband
increased from 0% up to 13%. As predicted by BMI, Vietnam will reach about 132,373
million subscribers with a mobile penetration rate of 141.9%by the end of 201615.
Nevertheless, in the rating RI%0,¶V$VLD-Pacific telecommunications risk/reward for the 2nd quarter in 2012, Vietnam fell to 16th with a rating score from 45 (2011) to 42.416.The growth
opportunities in the field of telecommunications in Vietnam has decreased because the market
is judged as the growth in a saturated state and dominance of the state enterprises in the
market. Mobile telecommunications market in Vietnam has currently had three huge
telecommunications enterprises making up more than 95% market share including Viettel,
MobiFone and VinaPhone. The remaining units only share 5%, including Hanoi Telecom with
about ten million subscribers and followed by Gtel with four million subscribers and SPT
1415
9LHWQDP¶VWHOHFRPPXQLFDWLRQVPDUNHWZLWKDQXPEHURIFKDOOHQJHV (comprehensive). Access on 16/08/2015.
³KWWS YQHFRQRP\YQFXRF-song-so/thi-truong-vien-thong-viet-nam-con-nhieu-thach-thuc-20110720060420701. KWP´ 16 $SLHFHRIFDNH´9LHWQDP¶VWHOHFRPPXQLFDWLRQVWRR³VROLG´IRUIRUHLJQLQYHVWRUV"(comprehensive). Access on 16/08/2015. ³http://m.ictnews.vn/vien-thong/mieng-banh-vien-thong-viet-qua-ran-voi-nha-dau-tu-nuoc-ngoai-LFW´
(line agency of Gtel) without any activities. This has led a number of smaller private
telecommunications units to disable the competition, thereby to merge and even face the risk
of bankruptcy. Multiple foreign telecommunication companies have presently withdrawn
IURP WKHLU LQYHVWPHQWV LQ 9LHWQDP ,Q $SULO 9LPSHO&RP RQH RI WKH ZRUOG¶V OHDGLQJ telecommunications service providers, announced to sign an agreement on their resale of 49%
share in GTEL Mobile and withdraw from the market in Vietnam after such corporation has
not found out any growth opportunities (Source: Hanoi Department of Information and
Communications). A huge telecommunications agency in South Korea like SK Telecom has withdrawn from SFRQH¶V SURMHFWV 7KLV GHPRQVWUDWHV many outstanding problems and weaknesses in the telecommunications environment in Vietnam and it is relatively necessary
to restructure the telecommunications market in Vietnam.
Among three leading telecommunications enterprises in Vietnam, Viettel has held more than
52% market share; whereas, VinaPhone and MobiFone have gained at an 18% market share
(below 30%). (Source: Hanoi Department of Information and Communications). Therefore,
Viettel is currently the only telecommunications enterprise with significant market power
(SMP) for ground mobile communication services. Viettel has developed under the scheme of
restructuring between 2013 and 2015, with the chartered capital of 100,000 billion dongs
(State-owned) and constantly invested telecommunications abroad (Laos, Myanmar,
etc.).(Source: Hanoi Department of Information and Communications)
In terms of MobiFone, under the orientation of telecommunications market restructuring,
MobiFone has currently separated from VNPT and equitized step by step. MobiFone is
presently the telecommunications enterprise possessing the 2nd largest market share in
Vietnam, followed by Viettel. After separating from VNPT, MobiFone has elevated and
become MobiFone Telecommunications Corporation with the chartered capital of 12,600
MobiFone.(Source: Hanoi Department of Information and Communications)
Despite previously leading the mobile market due to a few years of decline and slow
innovation, VNPT VinaPhone has currently ranked 3rd. VNPT is in the process of
restructuring after MobiFone has been separated nowadays. After the equitization of
MobiFone, the equitization by VinaPhone or not is proposed. The Ministry of Information and
Communications of Vietnam has still safeguarded the viewpoint of compliance with the
planned telecommunications market, namely, maintaining at least three enterprises at a
balanced state of significant services in which prioritizes one wholly state-owned enterprise.
Thus, as the leading telecommunications unit in the market under the military principal
management, Viettel is the first state-owned enterprise without any guidelines for equitization.
Whereas, VNPT VinaPhone is needed to establish new business orientations for the Company
in the future until they have orientated their own business.
7KHUHIRUHWKHVWXG\RQWKHVWDWXVWKDWFXVWRPHUVKDYHXVHG9LQD3KRQH¶VVHUYLFHVVXEMHFWWR actual challenges in business has helped the proposal of a more obvious perspective of
9LQD3KRQH¶VEXVLQHVVVWUDWHJLHVDIWHUUHVWUXFWXULQJ
2.5.2. VinaPhone telecom services company
2.5.2.1. History
VinaPhone Telecom Services Company is an economic organization, member of VNPT. The
main task of the Telecommunications company is to manage the business of three services:
national mobile network (VinaPhone), Vietnam paging, and national card phone services
(CardPhone). VNPT terminated the paging network in September 2004, after 10 years of
operation, because it was no longer suitable with the market.
Until June 2006, VinaPhone was the first mobile network to have network coverage all over
the nation, even in mountainous provinces, islands and remote areas. Nowadays, VinaPhone
phone numbers start with these 6 numbers (091, 094, 0123, 0125, 0127, and 0129) and it has
36 million active accounts.
In 2006, to increase the company's competitiveness in the context of global integration, VNPT
took an important action, which was to change its abbreviation from GPC to VinaPhone,
which reflected the company's future business orientations. VNPT also announced its
professional and modern logos, reflecting its determination to build VinaPhone to be number
one mobile network in Vietnam and towards international cooperation.
In 2014, MobiFone was officially separated from VNPT; managing companies, units and
departments which were then in charge of telecommunications service were re-organized and
became Telecommunications service One-member Co., Ltd(VNPT ± VinaPhone); its core is the current VinaPhone company.
Table 2.3 History of VinaPhone
1996 VinaPhone network was established.
1997
VinaPhone telecom services company was founded
Telecommunication service centre Zone 1,2,3 were established.
2006
Changed logo (from GPC to VinaPhone); publicized the new brand
UHFRJQLWLRQ V\VWHP ZKLFK VKRZV WKH FRPSDQ\¶V HIIRUWV WR EH PRGHUQ DQG active company to integrate in the global economy when Vietnam would
become a member of WTO
2009
VinaPhone was the first network to offer 3G services and the first Vietnamese
network to join Conexus world mobile coalition ± one of the biggest mobile coalitions in Asia
2.5.2.2. VinaPKRQH¶VPLVVLRQ
VinaPhone always strives to apply modern telecommunications technology to bring mobile
service to customers wherever they are and contribute to improve the national socio-economic
conditions.
2.5.2.3. Vision
Mobile service is developing more and more rapidly and has become an indispensable part of
people in Vietnam. VinaPhone has always been a leading mobile network in Vietnam, being
with customers wherever they might be.
2.5.2.4. Business philosophy
VinaPhone aims to develop core values in business including three basic values as follows:
1. Humanism: "For people, aiming at people and among people". With this philosophy, VinaPKRQHDLPVWRSURYLGHWKHEHVWVHUYLFHVIRUFXVWRPHUV LPSURYHWKHTXDOLW\RIWKHLUVWDII¶V physical and mental lives; bring benefits to their business partners, and contribute to the
common benefits of the community.
2. Connectivity: VinaPhone develops and has coverage across the nation; therefore, VinaPhone brings people closer, allowing them to share feelings, success and knowledge.
3. Vietnamese values: VinaPhone targets to be the leader in the development of mobile network; it aims to develop business and contribute to improve local socio-economic condition.
2.5.2.5. Value of the brand
VinaPhone commits to provide the best mobile products and services, assuring its position as
and mutual trust (between VinaPhone and their customers, with their suppliers, staff and
laborers).
Their slogan is: "Flying high" and ³Always beside you´
The value of the brand: VinaPKRQHWUXVWV HDFKLQGLYLGXDOV¶FRPSHWHQFH, the benefits of team spirit, professionalism, unification and creativity in work.
2.5.2.6. Functions of VinaPhone telecom services company
1. Organize, build, manage, maintain and operate telecommunications network and service (including: mobile network, paging and card phone) on a national scale, which are used for
business and according to plans and directions of the corporation.
2. Maintain, repair equipment for mobile network, paging and cardphone 3. Consult, survey, design, build and install mobile network, paging, card phone
4. Export, import, trade telecommunications material and devices to be used for the FRPSDQ\¶VRSHUDWLRQV
2.5.2.7. Organizational structure of VinaPhone
Figure 2.4. Organizational structure of VinaPhone (Source: http://vinaphone.com.vn/)
2.5.3. Hanoi VinaPhone
2.5.3.1. Overview of Hanoi telecommunications market
As the capital of the country, Hanoi is the place where all telecommunications companies can
be found. Since the merger of EVN Telecom (Telecommunications company of Electricity
Vietnam) with Viettel in 2012 and since failure of S-Fone, 6 businesses have remained and
competed in the Hanoi telecommunications market, including S-phone, VinaPhone Hanoi,
Viettel, Hanoi Telecom, MobiFone and Gtel.
By 2014 in Hanoi, Viettel numbers accounted for 50% of the market; that of VinaPhone was
and the remaining was of other mobile networks. (Source: Hanoi Department of Information
and Communications).
Currently, the customers in Hanoi have many choices over network providers as well as
package. There are different groups of customers with different demands:
4. High school students ± University students: have high demands for low-cost prepaid SDFNDJH SURYLGLQJ IUHH WH[W PHVVDJH VHUYLFHV YLD ,QWHUQHW DSSOLFDWLRQV 9LEHU =DOR« DQG low-cost 3G package on cheap smart phones.
1. Office workers: pay attention to packages for group conversation, SMS, reasonable 3G package of both prepaid and postpaid services.
2. Businessmen: pay attention to postpaid services for VIP customers, demand for a good brand name and good quality.
3. Workers, laborers: have demands for low-cost prepaid package for SMS and call services. 4. Network companies in Hanoi are changing their competition strategies. Instead of offering more promotions and develop new accounts to increase market share, they are paying
more attention to dedicated customer care to retain loyal customers.
Prospects for telecommunications development:
1. Hanoi capital is the political, cultural, technical, scientific, economic and educational centre of the nation. The capital also has many advantages such as modern infrastructure and
convenient transport system.
2. Customers: In Hanoi, there are more 126 training institutions, including 56 universities (more than 37% out of a total of 150 universities across Vietnam), 28/226 college, 39/81
vocational high schools. There are about 800.000 students in Hanoi, accounting for more than
46% of the total number of students in Vietnam (1,719,499 students. (Source: Hanoi
Besides, until 10/ 2014, Hanoi has more 170,000 new businesses that attract thousands of
laborers from other cities and provinces.
2.5.3.2. Telecommunications service system provided by Vinaphone Hanoi
VinaPhone provides pre-paid (VinaCard, VinaDaily, VinaText, VinaXtra, Vina365, Talk EZ,
My zone, Family packages) and postpaid (VinaPhone) services.
At the beginning, VinaPhone accounts were provided with basic services such as: call blocking,
displaying incoming and outgoing caller ID, call transfer, text messages, international roaming,
international call, hiding outgoing caller ID, call hold, voice mail, fax-data.
The company now has developed and provided more services such as: data transfer service
DATA, WAP999, domestic roaming, Ringtunes, synchronization, missed call notice, Info360,
2.5.3.3. Situation of business development VinaPhone Hanoi
2.5.3.3.1. Period 2010-2011
Table 2.4. Number of prepaid and postpaid accounts of the three major mobile service companies in Hanoi during 2010-2011
No Name of company Number of prepaid accounts Number of postpaid accounts 2010 2011 2010 2011 1 VinaPhone Hanoi 3.500.000 7.314.749 438.655 515.600 2 Viettel 4.026.274 3.460.940 251.000 347.631 3 MobiFone 3.543.748 1.981.893 117.960 165.837
(Source: Hanoi Department of Information and Communications)
Table 2.5. Records of postpaid accounts at VinaPhone Hanoi (2010-2011)
2010 2011
Revenue from
postpaid accounts
Revenue % of target completed Revenue % of target
completed 68.200 250% 111.626 432% Accounts leaving the network 18% 5,23% Growth rate 53% 58,5%
(Source: Production and business report of VNPT Hanoi for period 2005-2011)
2.5.3.3.2. From 2012 until now
In 2012, despite fierce competition from other networks in the area, VinaPhone Hanoi still
maintained a growth rate in market share from 30.6% to 30,8%. Until 2014, VinaPhone held
31.8% market share of mobile network in Hanoi, with about 1.8 million active prepaid and
postpaid accounts. Monthly revenue of prepaid and postpaid services is on average more than
200 billion Dong and increases over the years.
In terms of network coverage: in Hanoi, VinaPhone has more than 730 3G 900 MHz base
stations (until April, 2015). VinaPhone sets the target of replacing 2G stations with 3G 900
In terms of distribution and retail channels: in Hanoi, VinaPhone currently has more than
6000 retail points, which bring the VinaPhone products to all customers. The revenue
generated from 1,500 retail stores managed by Customer Care Centre in the first 10 months of
2013 increased by 300% compared with the same period of 2012 and increased by 500%
compared with 2011. Only in 2014, Customer Care centre expanded and strengthened sales
channels with nearly 4,800 retail stores (including 2,544 stores in the city and 2,256 stores in
the suburb) to sell products and advertise the brands.
2.5.3.4. Evaluation of business situation of VinaPhone Hanoi
The analysis ofSWOT to evaluate the business situation of VinaPhone Hanoi was provided in
below:
2.5.3.4.1. Opportunities
1. Number of customers: Hanoi capital is one the most crowded capitals in the world. In 2014, Hanoi had about 8 million residents, in which 7.3 million are local people and 1 million
people from other cities and provinces.
2. Business environment, infrastructure and convenient transport system: As the capital of the country, Hanoi has a convenient location for developing services and industries. Many big
universities also concentrate here, attracting millions of new students from all over the nation.
3. High demand for communications: Together with economic development and international integration, communications has become an essential needs for people living in Hanoi.
2.5.3.4.2. Threats
1. Fierce competition from other networks: Realizing high demands for communications, many new telecommunications companies have emerged. At the moment, these companies
Viettel, Gtel, MobiFone, HT-Mobile, and VinaPhone VNPT are competing for market share.
2. As there are more and more providers, customers have demands for higher service quality. Most customers in Hanoi have above-average incomes and they have high demands not only
for service quality, price, and convenience of the service but also dedicated customer care.
3. Shrinking market share because of the competition from other competitors.
4. The Ministry of Information and Communications have issued tighter policies to manage the number of prepaid accounts (to avoid customers buy SIM cards to use but not recharge
them); limit promotions and the number of SIM card to be released in the market, which have
had effects on the number of SIM cards bought by agents. The number of new accounts also
reduced significantly. These policies have had considerable effects on the business of all
companies, including VinaPhone.
2.5.3.4.3. Strength
1. The value of the brand: VinaPhone Hanoi develops the mobile network on the basis of VinaPhone brand ± which is a long-term brand, one of the first Vietnamese network in the market that is familiar with Vietnamese people for over 18 years.
2. Infrastructure: In Hanoi, VinaPhone has good infrastructures with many technical centers and customer care centers. The crowded branch system and wide coverage bring many
business advantages for the company.
4. VinaPhone Hanoi is having nearly 1.8 million loyal customers, using many different telecommunication services at the same time.
2.5.3.4.4. Weaknesses
1. The effects from the restructuring of VNPT: MobiFone (accounting for only 30% revenue but contributing to more than 70% to the profit of VNPT) was separated and has went under
the management of the Ministry of Information and Communication since July 1st 2014. This
has had tremendous effects on the business plans of VNPT in general and VinaPhone in
particular.
2. Human resource: Demands for higher-quality human resource, especially professional customer care personnel as a strategy to increase competitiveness. Customers have new
demands and new problems arise, due to the development of technologies, which staff is not
flexible enough to deal with.
2.6. General evaluation
VinaPhone Hanoi has had many changes over the past years to meet new social-economic
conditions. It has taken the very first steps to build its brand and develop a good number of
customers in the area. However, in a context of competition among different
telecommunication companies, besides the adjustment in price, telecommunications
companies have had a new competition strategy in service quality. They have started to focus
RQPHHWLQJFXVWRPHUV¶GHPDQGDQGFRQVLGHUHGFXVWRPHUV¶VDWLVIDFWLRQDVWKHNH\WREXVLQHss development. Therefore, VinaPhone Company should consider a strategy to improve a
customer-oriented service to develop the business and market share in a potential market like
Chapter 3 METHODOLOGY
3.1. The framework of this study
The purpose of this study is to examine the relationships between satisfaction toward service
quality and the overall satisfactions to the telecommunication consumers.The proposed model
was modified from a SERQUAL model proposed by Parasuraman et al. (1998). Research
framework was listed in figure 3.1. There are three research questionswere discussed and
listed in bellow:
RQ1: What is the relationship between satisfactions toward service quality and overall
satisfactions for the VinaPhone consumers, Hanoi, Vietnam?
H1: There is a relationship between satisfactions toward service quality (including reliability,
responsiveness, serving ability, sympathy, prices and technical)and overall satisfactions for
the VinaPhone consumers, Hanoi, Vietnam.
RQ2: What are the differences between customers¶ using phone behaviorsand overall consumer¶s satisfaction to the VinaPhone Telecom Company?
H2a: There is a significantly differences between consumer¶s motivation and overall satisfaction.
H2b: There is a significantly differences between subscriber and overall satisfaction.
H2c: There is a significantly differences between time using phone services and overall
satisfaction.
RQ3: What are the differences between customer¶s sociodemographic information and consumer overall satisfaction to the VinaPhone Telecom Company?
H3a: There is a significantly differences between gender and overall satisfaction.
H3c: There is a significantly differences between consumer¶s money spend to phone services and overall satisfaction. .
The proposed model in this study was modified from a SERQUAL model proposed by
Parasuraman et al. (1998) as follows:
Figure 3.1. Hypothesis map
3.2. Research methods
3.2.1. The procedure
- Step 1: Basing on collected information, designed survey questionnaire (appendix 1)
Reviewing secondary documents from the enterprise, observing customers¶ behaviors, and obtaining website information such as statistics on the number of subscribers with network
subscription and terminated network subscription, provided helpful information in
constructing ideas of basic orientations to determine studied variables. Above information
provided a holistic overview for designing instrument scale.
Collecting secondary data by the following methods:
- Stage1: 2EVHUYH FXVWRPHUV DW WKH WUDQVDFWLRQ RIILFHV WR WKHLU DQG WHOOHUV¶ DWWLWXGH DQG behavior
Questionnaire in combination with intensive interviews with six random customers to edit and
complete the official questionnaire, then collect information through the first draft
questionnaire.
Questionnaire answered in a head-on manner. Afterwards, hand out the questionnaire; collect
feedbacks and ideas from the answerers to complete the questionnaire for the preparation of
an official study.
Step2: 350 questionnaires were distributed; of which 317 was used (33 others were not
qualified). The information of survey participants is not disclosed and they are chosen
randomly from former and existing customers of VinaPhone Hanoi.
Step 3: Used SPSS 20 software to process collected data.
3.2.2. Sampling Design
Original modeling size: n=350. After cleaning empty data, the modeling size suitable for use
3.3. Data Analysis
Data analyzed with the following parts:
- $VVHVV 5HOLDELOLW\ WKURXJK &URQEDFK¶V $OSKD FRHIILFLHQW IRU UHOLDELOLW\ RI WKH SERQUAL scale to test the correlation between the measuring questions of variables.
Accordingly, the observed variables having total correlation of variables are eliminated and
WKHVFDOHLVDFFHSWHGZKHQ&URQEDFK¶V$OSKDFRHIILFLHQWPHHWVWKHUHTXLUHPHQW !
- Use statistical methods such as regression analysis to find the relationship between
variables
- Use techniques such as average verification of independent samples, variance analysis to
verify the difference between respective variables and determine the influence of variables,
pairs of variables and groups of variables on general satisfaction.
3.4. Data collection:
The questionnaire includes 30 research questions:
- Part I: 6 questions focus on social economy information
x From question 1- &XVWRPHU¶VVRFLRdemorgraphic x From question 4- &XVWRPHU¶VXVLQJEHKDYLRU
- Part II: 23 questions (from question 7-29) focus on customer satisfaction towards with 5
factor groups of service quality.
x From question 7 to 10: The trust for company (Reliability) x From question 11 to 14: Ability to satisfy
x From question 15 to 18: Service ability x From question 19 to 22: Sympathy
x From question 23 to 29: Price and technical means
- Part III: Question 30 researches about the overall customer satisfaction
3.5. Measures
8VLQJ 3DUDVXUDPDQ¶V SERQUAL scale in combination with actual obtained information to measure:
Reliability 1 What level does the customer trust the company brand?
2 Assess the policy of loyal customer gratitude from VinaPhone
3
Assess the ability to calculate charges for service use accurately
(Charges Notification Letter for post-paid subscribers or the way to
deduct charges for pre-paid subscribers obviously and accurately)
4
Assess the policy of customer information security (including the
detailed information of original calls, movement diagram of mobile
subscribers, list of customer calls)
Responsiveness 5
Assess the ability to receive support from customer service staff and
tackle inquiries or claims in a reasonable manner
6
In case of lost phones or damaged SIM cards, it is possible to
contact any stores for making procedures of replacing a new SIM
card easily
7
Ability to consult customer services in a proper and timely manner
from the staff
8 Assess time for tackling customer issues
Serving ability 9
7KHVWDII¶VSURIHVVLRQDOLVPDQGTXDOLILFDWLRQZKLOHWDFNOLQJ customer affairs
10
Assess friendliness and politeness when communicating with the
customers from tellers or customer service staff
12
Assess density of distribution and communication convenience of
networks of customer centers and places of VinaPhone service
registration
Sympathy 13 Assess the ability to listen and concern issues from service users
14 &RQFHUQWRWKHFXVWRPHU¶VLQGLYLGXDOQHHGV
15
Assess the frequency of visiting customers (calling or sending
cards), giving gifts at special occasions (birthdays, public holidays,
etc.)
16
Assess quality of cheap-price tariff package for each separate
customer
Prices and technical
means
17
Assess simplicity in the procedures of connection and transfer of
category of subscriber
18 Appropriateness of connection fees
19 Appropriateness of call charges and subscriber charges
20 Multiple forms of charges payment convenient for customers
21
Assess quality of transmission line and smoothness of call signals at
rush hour
22
High rate of successful connection to customer service calls without
blocking
23 Widespread coverage of mobile network nationwide
Use the Likert scale with assessment levels of 1 ± 5 respective to levels ranging from extreme dis-satisfaction to extreme satisfaction with the given ideas. Such scale is used for assessing
satisfaction as well as variables of service quality. Besides, the questionnaire has used
nominal scales and ratio scales to collect further general information related to customers
Chapter 4 RESULT AND DISCUSSION
4.1. Data procedure
350 questionnaires were distributed and collected for further analysis; Incomplete
questionnaires were eliminated, and the 317 completed questionnaires were used for the data
(90.6%).
4.2. Statistical description:
The total number of questionnaires collected was 317, in which the percentage of male and
female participants and the percentage of prepaid and postpaid accounts are as follows:
Table 4.1: Descriptive results
Frequency (N) Percent (%) Valid Percent Total participants 317 100 Gender Male 178 56.2 56.2 Female 139 43.8 43.8 Type of subscriber Prepaid 178 56.2 56.2 Postpaid 139 43.8 43.8 Current occupation State officials 91 28.7 28.7 Student 78 24.6 24.6 Business customers 68 21.5 21.5
Worker 42 13.2 13.2
Other 38 12 12
Time using phone services
From 06 months to 01 year 64 20.2 20.2
From 01 to 02 year 66 20.8 20.8
From 03 to 05 years 109 34.4 34.4
More than 05 years 78 24.6 24.6
Motivation Reputable trademark 78 24.6 24.6 )ULHQGV¶UHFRPPHQGDWLRQ 111 35.0 35.0 Widespread advertisement 60 18.9 18.9 Near register 68 21.5 21.5 Monthly Costs Less than VND100.000 27 8.5 8.5
From VND100000 to less than VND300000 144 45.4 45.4
From VND300000 to less than VND500000 44 13.9 13.9
From VND500000 to less than VND1000000 33 10.4 10.4
More than VND 1000000 69 21.8 21.8
(Source: SPSS analysis) In term of gender, most of participants were male with 56.2%, female were just 43.8%.
Most of VinaPhone subscribers were Pre-paid, low level was Post-paid with 43.8%.
Major of motivation was )ULHQGV¶UHFRPPHQGDWLRQZLWKSHRSOHXVHG9LQD3KRQH services because of Reputable trademark. 21.6% remained the reason of Near register. The least
Time using phone services commonly was From 03 to 05 years with 34.4%. And the least was
From 06 months to 01 year with 20.2%.
Proportion of monthly cost: Most participants have a monthly cost of VND100.000 ± VND300.000 (45.4%), which is appropriate with the average income of most people in Hanoi.
The lower level was more than VND1000000/each month with 21.8%, fromVND300000 to less
than VND500000 was 13.9%. The last was less than VND100000 with 8.5%.
4.3. Cronbach
¶V Alpha reliability
Cronbach¶V Alpha coefficient is the coefficient that allows whether observed variables that belong to a research variables (latent variables, factors) are appropriate or not. Hair, J.F., Jr.,
Black, W.C., Babin, B.J., Anderson, R.E., & Tatham, R.L(2006) introduces the rules for
evaluation as follows::
- < 0.6. Factor scale is not appropriate (probably in the research environment, the participants may not be aware of such factors)
- 0.6 ± 07: Acceptable with new researches - 0.7 ± 0.8: Acceptable
- 0.8 ± 0.95: good
- >= 0.95: Acceptable but not good, « identical variables » may happen in observed variables.
Corrected Variable-7RWDO&RUUHODWLRQVKRZVWKH³OLQN´EHWZHHQDQREVHUYHGYDULDEOHZLWKWKH remaining variables. It shows the contribution of an observed variable to the value concept of
an observed factor. The criteria to assess whether a variable really contributes to the value
the observed variable has Corrected Variable-Total Correlation is smaller than 0.3, it needs to
be eliminated from the assessed factor.
Check Cronbach¶V Alpha reliability with SPSS 20.0, we have the following results: 7DEOH 5HOLDELOLW\&URQEDFK¶V$OSKDRIUHVSHFWLYHIDFWRUV
Factors Items &URQEDFK¶V$OSKD
Reliability 4 0.736
Responsiveness 4 0.728
Serving ability 4 0.698
Sympathy 4 0.704
Prices and technical means 7 0.904
(Source: SPSS analysis)
According to the above analysis, all scales in this research are reliable.
4.4. Testing the hypothesis
4.4.1. Linear regression analysis:
RQ1: What is the relationship between satisfactions toward service quality and overall
H1: There is a relationship between satisfactions toward service qualityand overall
satisfactions for the VinaPhone consumers, Hanoi, Vietnam.
To run respective factors, we had Satis_A: Satisfactions toward Reliability;
Satis_B:Satisfactions toward Responsiveness; Satis_C: Satisfactions toward Serving ability;
Satis_D: Satisfactions toward Sympathy; Satis_D: Satisfactions toward Prices and technical
means; Satis_F: Satisfactions toward service quality.
Table 4.3. R2 analysis
R Square Adjusted R Square Durbin-Watson
.826 .823 1.775
a. Predictors: (Constant), Satis_E, Satis_B, Satis_D, Satis_A, Satis_C
b. Dependent Variable: General satisfaction level
(Source: SPSS analysis)
To evaluate the appropriateness of the model, the author uses the coefficient R2 to check, with
condition that R2> 0.6 and R2< 0.9 to ensure the accuracy of the evaluation of the model from
independent variables.
Adjusted R2 = 0.801 we can conclude that: the linear regression model is suitable with data
to an extent of 80.1% and this model explains that 80.1 % of the changes in dependent
variables are due to the variation of above factors. Services Quality toward satisfaction
inculded five factorstogether explained consumer satisfactions for 80.1%. That measn service
Quality toward satsfaction can predit overall consumer satsfactions about 80.1%. Hence, the
9LQDSKRQHVKRXOGIRFXVRQWKRVHIDFWRUVWREHWWHULPSRUYHFRQVXPHU¶s satsfaction. Beside the comparison of R2 value and adjusted R2 value, another value also needs to be considered,
whether the elements are relevant to disturbance factor. The Durbin Watson (d) values must
be bigger than 1 and smaller than 3 to not have correlation with disturbance factor. From the
analysis above, we have d=1.859, which is smaller than 1 and bigger than 3, so it is
appropriate.
Table 4.4. Regression analysis
Factors Beta Sig.
Satis_A -.004 0.000 Satis_B .090 0.889 Satis_C .071 0.009 Satis_D .051 0.028 Satis_E .772 0.110 Satis_F .857 0.000 (Source: SPSS analysis)
According to the above table, the equation of this customer satisfaction is as the following:
Y= -0.04Satis_A +0.90Satis_B + 0.71SatisC + 0.51SatisD + 0.772SatisE
Among independent variables, Satis_E had a strongest positive relation with B=0.772, the
4.4.2. One-way ANOVA:
In this part, ANOVA is used to investigate the differences of Overall satisfaction and
customer satisfaction among sociodemographic factors (including gender, occupation and
monthly costs), customer¶s using behaviors factors (including motivation, subscribers and time using phone services
1. RQ2: What are the differences between customer¶s using behaviorsand overall consumer¶s satisfaction to the VinaPhone Telecom Company?
H2a: There is a significantly differences between motivation and overall consumer
satisfaction
H2b. There is a significantly differences between subscriber and overall satisfaction.
H2c: There is a significantly differences between time using phone services and overall
satisfaction.
Table 4.5. ANOVA analysis 1
Variables Sig. Accept
Subscibers Overall Satisfaction 0.041 Yes Prepaid Postpaid Motivation Overall Satisfaction 0.533 No Reputable trademark Friend's recommendation Widespread advertisement
The place to register is close to my
Time using phone services
Overall
Satisfaction
0.286 No
Less than 100.000VND
From 100000 to less than
300000VND
From 300000 to less than
500000VND
From 500000 to less than
1000000VND
More than 1000000VND
(Source: SPSS analysis)
Based on the table, at the 95% confidence level , ANOVA analysis results showed that there is no a difference between motivationand the overall satisfaction (p=.533), time using phone and overall satisfaction (p=0.286). ANOVA analysis results with significance level 0.041<0.5
showed that there is a significantly difference between types of subscriber and the overall
satisfaction
2. RQ3: What are the differences between overall satisfaction and customeU¶V sociodemographic information toVinaPhone Telecom Company?
H3a: There is a significantly differences between gender and overall satisfaction
H3b: There is a significantly differences between the overall satisfaction and occupation
H3c: There is a significantly differences between overall satisfaction and money spend to
Table 4.6. ANOVA analysis 2
Variables Sig. Accept
Gender Overall Satisfaction 0.941 No Male Female Occupation Overall Satisfaction 0.959 No Official Student Business customers Worker Others Money spend to phone service Overall Satisfaction 0.199 No From 6 months to 1 year From 1 to 2 year From 3 to 5 years
More than 5 years
(Source: SPSS analysis)
Based on the table, at the 95% confidence level, ANOVA analysis results showed that there is
no a difference EHWZHHQ RYHUDOO VDWLVIDFWLRQ DQG FXVWRPHU¶V VRFLDO GHPRJUDSKLF
informationincluding gender (p=.941), occupation (p=.959), money spend to phone service
