BACKGROUND
The increasing economic importance of telecommunications companies inspired many researchers, marketers and management scholars to devoted more teaching and research attention to this sector
Since the 1990s, the telecommunications industry has emerged as a vital sector for the economic growth of industrialized nations, driven by significant technological advancements, a rise in network operators, and heightened competition.
As competition intensifies in the market, companies are increasingly prioritizing customer satisfaction and retention to maintain their market share With rising costs associated with attracting new customers, businesses are shifting their strategic focus towards fostering long-term relationships with existing customers, making customer retention a critical objective for success.
Moreover, technology of mobile telecom evolving to meet high demand from customer, the paradigm of mobile telecommunication services is now shifting from
The mobile telecommunication service market is experiencing a significant transition, driven by the rise of high-speed data communication and multimedia, alongside the growth of wireless internet According to Mohan et al (2012), the global mobile subscriber count reached nearly 6 billion, mirroring the world's population The United Nations telecom agency reported that by the end of 2011, there were approximately 6 billion subscriptions, equating to about 86 subscriptions for every 100 people.
So, the change of paradigm and the symptoms of a market in transition are driving the industry’s restructuring efforts and intensifying competition between companies
Mobile suppliers are increasingly recognizing that a customer-oriented business strategy is essential for maintaining competitive advantage and ensuring profitability As subscriber numbers reach saturation, acquiring new customers becomes both challenging and expensive Consequently, the prevailing industry perspective is that the most effective marketing strategy moving forward is to focus on retaining existing customers by enhancing customer loyalty and value.
The switching barriers in the mobile service market significantly impact customer satisfaction and retention When customers consider changing or leaving their mobile service providers, they closely evaluate the conditions of these barriers to ensure they maximize their benefits.
The telecommunications market in Vietnam is no longer a monopoly market
International economic integration has intensified competition in the telecommunications market, prompting companies to focus on customer orientation for sustainable development and market share growth In Vietnam, statistics from the Ministry of Communications and Information indicate significant trends in this sector as of June.
In 2012, Vietnam had approximately 120.7 million mobile subscribers, with an average of 1.5 subscriptions per person This competitive landscape makes attracting and retaining new customers challenging for mobile telecommunications providers Customers exhibit a tendency towards "infidelity," readily switching to different suppliers for better benefits Consequently, customer retention has become a critical objective for mobile service providers in Vietnam, as it fosters loyalty, increases profitability, and enhances market share.
Numerous studies indicate a strong link between customer satisfaction and retention or repurchase intentions (Cronin & Taylor, 1992; Fornell, 1992; Anderson & Sullivan, 1990; Boulding et al., 1993; Taylor & Baker, 1994; de Ruyter et al., 1996; Zeithamel et al., 1996) However, customer satisfaction alone does not account for all variations in retention, as customers often face constraints in choosing suppliers Various factors, including switching barriers, alongside customer satisfaction, influence supplier selection (Bendapudi & Berry, 1997) Limited empirical research has explored how different types of switching barriers impact satisfaction, retention, and their interrelationships (Jones et al., 2000) In the context of mobile telecom services in Vietnam, it is essential to investigate key antecedents that significantly affect customer satisfaction and retention, particularly focusing on switching costs, relationship investments, the appeal of alternative options, and interpersonal relationships.
1.2 Problem definition and Research Questions
The telecom industry is currently grappling with heightened national and international competition, slower growth rates, and mature markets Consequently, an increasing number of service providers are competing for a dwindling pool of new customers.
11 of company’s resources must be devoted to the present customer base in order to make them satisfied and retain them
Customer retention is crucial for a company's survival and future growth As markets mature and competition intensifies, maintaining stable profits becomes essential, especially when subscription levels saturate In such scenarios, a defensive strategy focused on retaining existing customers is more vital than an aggressive approach aimed at attracting new ones.
High switching barriers force customers to remain with their suppliers, regardless of their satisfaction with the relationship This lack of choice can lead to decreased satisfaction and retention, as suggested by reactance theory Therefore, it is essential to consider switching barriers when evaluating customer satisfaction and loyalty.
The global telecommunications market is transitioning from a monopoly to a competitive landscape, and Vietnam is no exception With international economic integration, fierce competition has emerged, prompting telecom companies to focus on customer-centric strategies for sustainable growth and market share expansion Retaining existing customers has become increasingly challenging, as mobile service users exhibit a tendency to switch networks for better benefits Consequently, customer retention has become a critical objective for mobile service providers in Vietnam, leading to increased loyalty, profitability, and market share.
The mobile telecommunication services industry in Vietnam has not been extensively studied, primarily because of its relatively brief history.
A model will be developed to examine the factors influencing switching costs and their impact on customer satisfaction, which will subsequently inform research on customer retention.
This thesis explores the competitive landscape of the mobile supply market, focusing on strategies for customer retention It begins with an in-depth analysis of market dynamics and extensive information gathering The primary objective is to understand how mobile suppliers can effectively retain their customers in an increasingly competitive environment.
The research questions that are discussed in this thesis are as below:
What are the main factors of switching barriers affect on customer satisfaction in the mobile telecom industry in Vietnam?
How can these factors and determinants be developed and evaluated in Vietnam?
How can customer satisfaction affect on customer retention in the mobile telecom industry?
RESEARCH OBJECTIVES
From a managerial perspective, maintaining long-term customer relationships is crucial Suppliers must effectively manage both customer satisfaction and switching barriers Excessively high switching barriers can lead to negative word-of-mouth and customer dissatisfaction, while low barriers may facilitate customer defection This research highlights a significant gap in academic studies regarding the interplay between switching barriers, customer satisfaction, and retention.
The research objectives that are discussed in this thesis are as below:
Identify the factors of switching barriers that affect the customer satisfaction in mobile telecom industry in Vietnam
Subsequently, to examine the impact of customer satisfaction on customer retention in mobile telecom industry in Vietnam
Determine the degree of the impact of each factor to customer satisfaction
This thesis aims to develop a model for assessing customer satisfaction and retention in Vietnam's mobile telecommunications sector By analyzing market data alongside theoretical frameworks, the study seeks to identify key influencers that enhance customer satisfaction and retention It will also explore strategic business solutions related to switching barriers that impact customer loyalty among existing mobile service providers.
This study aims to analyze how switching barriers affect customer satisfaction and, in turn, how customer satisfaction influences customer retention It also explores strategies within the Vietnam mobile telecom sector to enhance customer retention while identifying the factors contributing to switching barriers Additionally, the research empirically tests hypotheses related to the role of these factors in the context of customer satisfaction and retention.
DELIMITATION
This research focuses on four key components—switching cost, investment relationship, attractiveness of alternatives, and interpersonal relationship—to measure the switching barriers that impact customer satisfaction and retention Other measurements of switching barriers are not included in this study.
Second, this study only focus on Vietnam mobile industry and market, the other sectors in other countries are not involved
This study focuses exclusively on the perspective of customers who utilize mobile telecommunication services, leaving out the viewpoints of service firms on this topic.
OUTLINE OF THE STUDY
This research includes five chapters that the first chapter is already presented
This chapter presents research background of the study, as well as, research problems, research objectives and delimitation
This chapter equips readers with essential theoretical insights to understand the subsequent sections of the study It starts with an overview of the mobile telecommunication market, focusing on Vietnam, and emphasizes the significance of customer satisfaction and retention The discussion highlights the importance of these factors and introduces a model for assessing customer satisfaction and retention based on switching barriers, which will be analyzed in the following chapters.
Chapter one focuses on the research methodology, while chapter two covers the literature review and empirical model This chapter specifically outlines the research design and methodology, detailing the processes involved in conducting the research.
Chapter four: Data analysis and finding
This chapter outlines the data collected from questionnaires and interviews, along with the analysis conducted on this data It also discusses the proposed hypotheses and the outcomes of the hypothesis testing.
Chapter five: Conclusions and implications
Chapter 5 presents main conclusions and implications based on the results of the previous chapters, as well as the limitations of this study tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This chapter equips readers with essential theoretical insights to understand the subsequent sections of the study It starts with an overview of the mobile telecommunications market, focusing on Vietnam, and emphasizes the significance of customer satisfaction and retention The discussion highlights the importance of these factors and introduces a model for assessing customer satisfaction and retention based on switching barriers, which will be analyzed in the following chapters.
2.1 Mobile Telecommunications in the world
The radio broadcasting industry pioneered the concept of radio telephone equipment, laying the groundwork for mobile communication networks In 1946, the first radio telephone network was tested in St Louis, Missouri Fifty years later, the advent of semiconductors significantly transformed mobile telecommunications, addressing many previous limitations in the field.
May 12-1971 given cellular system similar technique, FM, in technology the 850Mhz.Dua the band until 1983, mobile phone networks AMPS (Advanced Mobile Phone Service) The first commercial service in Chicago, United States Then a series of standard information released as: Nordic Mobile Telephone (NTM), Total Access Communication System (TACS) This stage is called cell system similar to the first generation (1G), with a narrow strip floor, all 1G systems using FM frequency modulation for voice, frequency shift key modulation FSK (Frequency Shift Key) to access technical signals and used as FDMA (Frequency Division Multiple Access)
The 2nd generation (2G) mobile communication technology gained immense popularity in the 1990s, marking a significant shift from analog to digital systems This transition led to a remarkable increase in mobile subscribers globally, revolutionizing the way people communicated.
The evolution of mobile telecommunication systems includes key technologies such as GSM-900MHz, DCS-1800MHz, PDC-1900MHz, IS-54, and IS-95 GSM serves as the foundation for DCS and PDC, utilizing TDMA (Time Division Multiple Access), while IS-95 employs CDMA (Code Division Multiple Access) The 2G generation enhances information technology services, enabling international roaming and allowing subscribers to maintain connectivity across borders.
The third generation (3G) of mobile systems, established during the 1992 World Congress, utilizes a wide spectrum of frequency bands, including 230 MHz in the 2 GHz range, with 60 MHz allocated for satellite telecommunications The International Telecommunications Union (ITU) promotes a global standard for international mobile systems known as IMT.
The IMT-2000 project operates within the frequency bands of 1885-2025 MHz and 2110-2200 MHz, utilizing 3G technologies such as W-CDMA (Wideband CDMA) in FDD mode and TD-CDMA (Time Division CDMA) in TDD mode Its primary objective is to facilitate global communication among subscribers and provide access to multimedia services, achieving data transfer rates of 144 Kbit/s in wide areas and up to 2 Mbps in localized regions.
4G, also known as LTE (Long Term Evolution), represents a significant advancement over 3G technology, which offers a maximum download speed of 14.4 Mbps In contrast, LTE can achieve speeds of up to 100 Mbps, comparable to current optical technologies like FTTx The 4G mobile network is primarily designed for data transmission rather than voice services Currently, around 17 networks worldwide have deployed 4G services, focusing mainly on data transfer capabilities.
The world has 6 billion mobile subscribers by ICTnews - The number of mobile subscribers in the world was almost equal to the number of people living on Earth
Telecommunications Authority of the United Nations said there were about 6 billion mobile subscribers by the end of 2011, for every 100 people, with 86 people registered subscribers
The shift in market dynamics is prompting significant restructuring within the industry and escalating competition among companies Mobile suppliers are increasingly recognizing that a customer-oriented business strategy is essential for maintaining a competitive advantage and ensuring profitability As subscriber numbers reach saturation, acquiring new customers becomes both challenging and expensive Consequently, the prevailing belief in the industry is that the most effective marketing strategy moving forward is to focus on retaining existing customers by enhancing customer loyalty and value.
The switching barriers in the mobile service market significantly impact customer satisfaction and retention Customers are keenly aware of these barriers and consider them carefully when deciding whether to switch providers, as they seek the most advantageous conditions for themselves.
The Secretary General of the ITU World Telecommunication Union commended the advancements in Vietnam's telecommunications sector Notably, Vietnam ranks eighth globally in mobile subscriber density and has made significant strides in broadband development, earning recognition as a standout in the telecommunications industry.
In Vietnam, the first mobile communication network was established in 1992 with about 5,000 subscribers They provide large mobile information services as Mobifone (VMS) was born in 1993 - a joint venture between telecommunications