Luận văn thạc sĩ UEH factors affecting loyalty of internet customers, evidence form vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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Nguyen Thi Kim Quyen

FACTORS AFFECTING LOYALTY OF INTERNET

CUSTOMERS: EVIDENCE FROM VIETNAM

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2012

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Nguyen Thi Kim Quyen

FACTORS AFFECTING LOYALTY OF INTERNET

CUSTOMERS: EVIDENCE FROM VIETNAM

ID: 60340102

MASTER OF BUSINESS (Honours)

SUPERVISOR: DR. DINH THAI HOANG

Ho Chi Minh City – Year 2012

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Loyalty of Internet customers in Vietnam

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ACKNOWLEDGEMENTS

I would not have been able to complete my thesis without the advice, assistance,

understanding and encouragement of a number of people. I would like to gratefully

and sincerely acknowledge their assistance and support. First of all, the most

important person I would like to thank is my supervisor, Dr. Dinh Thai Hoang.

Thanks to his valuable advice and generous guidance throughout the process of

completing this thesis. Secondly, I would like to express my gratefulness to Dr.

Nguyen Dinh Tho for his kindness in supporting me to deal with analyzing data and

other issues of the thesis.

Furthermore, I would like to thank all of the staff at International School of

Business – University of Economics Ho Chi Minh City who are always enthusiastic

and give me a lot of administrative support, assistance and understanding.

Finally, I would like to give my gratefulness to all classmates who have been

sharing with me all their knowledge and experience as well as happiness and

difficulties during MBA course. I would not complete my thesis without their

encouragement and support.

In brief, it has been a long journey and I have grown in so many ways. I would like

to say “thank you” again for the involvement of everyone who has helped me to

complete this thesis.

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Loyalty of Internet customers in Vietnam

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ABSTRACT

For Internet service providers (ISP), it is essential for them to understand the

critical factors that influence customer loyalty. These issues are critical to the long￾term business success of any service provider. Based on the literature reviewed in

the thesis, this study empirically investigates the impact of factors on customer

loyalty.

A quantitative method via questionnaire survey was used to obtain the views of

approximately 300 Internet users in Ho Chi Minh city regarding their opinions and

perceptions about their current ISP and their intention to stay with them. Multiple

linear regression analysis was used to investigate the relationship between customer

loyalty and influencing factors mentioned above.

According to the findings of this research, in order to retain internet service

customers, providers need to take into consideration with factors such as network

quality, price perception, perceived value and trust. The results of this research are

important for ISP to enhance and improve their competitiveness, in other words, to

become successful and have more loyal customers, which will ultimately result in

more profitability.

Keywords: customer retention, customer loyalty.

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Loyalty of Internet customers in Vietnam - 1 -

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS .................................................................................. 3

ABSTRACT........................................................................................................... 4

CHAPTER 1: INTRODUCTION......................................................................... 5

CHAPTER 1: INTRODUCTION......................................................................... 5

1.1 Introduction............................................................................................. 5

1.2 Research background ............................................................................. 5

1.3 The research objectives........................................................................... 7

1.4 The research questions............................................................................ 7

1.5 The research model................................................................................. 7

1.6 The research methodology...................................................................... 7

1.7 The research structure............................................................................ 8

1.8 Conclusion ............................................................................................... 8

CHAPTER 2: LITERATURE REVIEW ........................................................... 10

2.1 Introduction........................................................................................... 10

2.2 Customer loyalty with internet service provider ................................. 10

2.2.1 Network quality and customer loyalty..................................................11

2.2.2 Price perception and customer loyalty.................................................11

2.2.3 Perceived value and customer loyalty..................................................12

2.2.4 Trust and customer loyalty...................................................................13

2.3 Controlling factors................................................................................ 13

2.4 The research model............................................................................... 13

2.5 Conclusion ............................................................................................. 15

CHAPTER 3: RESEARCH METHODOLOGY ............................................... 16

3.1 Introduction........................................................................................... 16

3.2 The research approach ......................................................................... 16

3.3 Measurement......................................................................................... 16

3.4 Sample and Data collection................................................................... 19

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Loyalty of Internet customers in Vietnam - 2 -

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3.5 Data analysis.......................................................................................... 20

3.6 Conclusion ............................................................................................. 22

CHAPTER 4: DATA ANALYSIS AND RESULT............................................. 23

4.1 Introduction........................................................................................... 23

4.2 Preliminarily data analysis................................................................... 23

4.2.1 Cleaning and screening data ...............................................................23

4.2.2 Profile of respondents..........................................................................23

4.3 Evaluating the measuring scales........................................................... 25

4.4 Multiple Linear Regression analysis.................................................... 32

4.4.1 Introduction.........................................................................................32

4.4.2 Computing variables............................................................................32

4.4.3 Assumption for Multiple Regression ....................................................32

4.4.4 Testing hypotheses...............................................................................35

4.4.5 Controlling variables...........................................................................37

4.5 Conclusion ............................................................................................. 39

CHAPTER 5: CONCLUSION AND IMPLICATIONS .................................... 40

1.1 Introduction........................................................................................... 40

1.2 Conclusion ............................................................................................. 40

1.3 Implications of the study....................................................................... 41

1.4 Limitations and suggestions for further research................................ 42

REFERENCES.................................................................................................... 43

APPENDIX A: QUESTIONAIRE...................................................................... 47

APPENDIX B: DATA ANALYSIS..................................................................... 53

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