Perceived service performance and prospects of VNPT telecommunications in Thai Nguyen, Viet Nam

The Dissertation of NGUYEN PHUONG THAO entitled PERCEIVED SERVICE PERFORMANCE AND PROSPECTS OF VNPT TELECOMMUNICATIONS IN THAI NGUYEN, VIETNAM Submitted in Partial Fulfilment of the R

IN THAI NGUYEN, VIETNAM

_

A DISSERTATION Presented to the Faculty of the Graduate School Southern Luzon State University, Lucban, Quezon, Philippines

in Collaboration with Thai Nguyen University, Socialist Republic of Vietnam

The Dissertation of

NGUYEN PHUONG THAO

entitled

PERCEIVED SERVICE PERFORMANCE AND PROSPECTS OF VNPT

TELECOMMUNICATIONS IN THAI NGUYEN, VIETNAM

Submitted in Partial Fulfilment of the Requirements for the Degree

DOCTOR OF BUSINESS ADMINISTRATION

A program offered by Southern Luzon State University,

Republic of the Philippines in collaboration with

Thai Nguyen University, Socialist Republic of Vietnam

has been approved by Oral Examination Committee

CECILIA N GASCON, PhD

Chairman

Accepted in Partial Fulfilment of the Requirements for the Degree

Doctor of Business Administration

Date Vice President for Academic Affairs

I wish to extend my most sincere gratitude to the following people who made this piece of work a reality

Dr Cecilia N Gascon, President of Southern Luzon State University,

Republic of the Philippines, who made possible the linkage with Thai Nguyen University and the offering of Doctor of Business Administration, through the ITC-TUAF;

Dr Dang Kim Vui, the President of Thai Nguyen University, who made the linkage with Southern Luzon State University, Republic of the Philippines and the offering of Doctor of Business Administration, through the ITC-TUAF;

Dr Alice T Valerio, for her support and supervision throughout my graduate study program Her kindness and daily instructions in the last three years are greatly appreciated and this dissertation is as much her work as mine;

Prof Nordelina Ilano, Director, Office for International Affairs of URS for her support to the DBA1 students;

Dr Tran Thanh Van, the Dean of the Graduate School; Dr Dang Xuan Binh, the Director of International Training Center; and Dr Nguyen Thanh Hai, the Vice Director of International Training Center of Thai Nguyen University, for their assistance and encouragement to pursue this study;

All the SLSU and TNU Professors, for their support and guidance extended throughout the graduate studies in Thai Nguyen University, Vietnam;

My family, for their support, encouragement for being the sources of greatest inspiration, which made my career a success

NGUYEN PHUONG THAO

This piece of work is dedicated

To My Family

PAGE

TITLE PAGE ……… i

APPROVAL SHEET ……… ii

CERTIFICATE OF ORIGINALITY ……… iii

ACKNOWLEDGEMENT ……… iv

DEDICATION ……… vi

TABLE OF CONTENTS ……… vii

LIST OF TABLES ……… ix

LIST OF FIGURES ……… xi

LIST OF APPENDICES ……… xii

ABSTRACT ……… xiii

CHAPTER I INTRODUCTION Introduction ……… 1

Background of the Study ……… 5

Statement of the Problem ……… 6

Objectives of the Study ……… 7

Hypothesis of the Study ……… 9

Significance of the Study ……… 10

Scope and Limitation of the Study ……… 10

Definition of Terms ……… 10

II REVIEW OF LITERATURE Related Literature … ……….……… 15

Theoretical Framework ……… 28

Conceptual Framework ……….… 29

III METHODOLOGY Locale of the Study ……… 31

Populations, Sample & Sampling Technique ……… 31

Research Instrument ……… 32

IV RESULTS AND DISCUSSIONS ……… 35

Profile of the Respondents ……… ……….…… … 35

Perceived Services Performance of VNPT Thai Nguyen 39 Perceived Prospects of the VNPT Thai Nguyen ……… 54

V SUMMARY, CONCLUSION AND RECOMMENDATION Summary of Findings ……… 72

Conclusions ……… 78

Recommendations ……… 79

BIBLIOGRAPHY ……… 89

APPENDICES ……… 91

CURRICULUM VITAE ……… 103

TABLE PAGE

1 Likert Scale Showing Adjectival and Description……… 33

2 Personal Profile of Respondents ……… 36

3 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Status of the Company in Terms of

4 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Status of the Company in Terms of

5 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two groups of

Respondents on the Status of the Company in terms of the

6 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Company Status in Terms of

7 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Company Status in terms of People 48

8 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Company in Terms of Position …… 52

9 Composite Table on the Status of the Company as

Evaluated by the Two Groups of Respondents in Terms of

10 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Prospect of the Company in Terms of

11 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Prospect of the Company in Terms of

12 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Prospect of the Company in Terms of

13 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Prospect of the Company in Terms of

14 Computed Mean, Verbal Interpretation and Rank

Distribution on the Perception of the Two Groups of

Respondents on the Prospect of the Company in terms of

15 Composite Table of the Computed Mean, Verbal

Interpretation and Rank Distribution on the Prospect of the

Company as Evaluated by the Two Groups of

Respondents in terms of the Five Areas ……… 67

16 Mean, Standard Deviation, and Correlated T-Test on the

Assessment of the Two Groups of Respondents as to the

services performance of the Company in Terms of Area

with respect to the Different Criteria ……… 69

17 Mean, Standard Deviation, and Correlated T-Test on the

assessment of the Two Groups of Respondents as to the

Prospect of the Company in Terms of Areas with respect

FIGURE PAGE

1 Conceptual Framework Showing the Assessment Service

Performance and Prospect VNPT Telecommunications in

2 The Profile of Respondents in Terms of Gender ……… 37

3 The Profile of Respondents in Terms of Age ………

37

4 The Profile of Respondents in Terms of Civil Status ……… 38

5 The Profile of Respondents in Terms of Educational

APPENDIX PAGE

1 Letter Request to the Respondents ……… 92

3 Organizational Structure of the Management VNPT

Telecommunication Thai Nguyen ……… 101

`

Title of Research : PERCEIVED SERVICE PERFORMANCE AND

PROSPECTS OF VNPT TELECOMMUNICATIONS

IN THAI NGUYEN, VIETNAM

Degree Conferred : DOCTOR OF BUSINESS ADMINISTRATION

Name and Address

of Institution

: Southern Luzon State University Lucban, Quezon, Philippines and Thai Nguyen University, Socialist Republic of Vietnam

Adviser : Dr Alice T Valerio

Year Written : 2013 – 2014

In Vietnam's intensifying telecommunication service market, satisfying customers is only the baseline and may not be sufficient for survival for mobile phone service providers Management should focus on gaining customer loyalty by enhancing customer perceptions of service quality and increasing

as perceived by the consumer value To do that, it is necessary for them to figure out the relationships and impacts of service quality, customer value, customer satisfaction, corporate image and customer loyalty This research focused on evaluating the service performance of telecommunications services by employees and customers in VNPT in terms of services, place, price, promotion, people and position This research also sought to assess the prospect of VNPT Thai Nguyen in terms of management capacity, human resource, service attitude, marketing and material facilities Based on the assessments, proposing recommendations to improve the quality of activities and prospect of resources of VNPT Thai Nguyen

Telecommunications Director of Thai Nguyen, the employees, Deputy Sales Rooms, as well as transaction services for customers, and especially survey

of customers using the services of VNPT

The service performance of VNPT in Thai Nguyen province is reflected through the perceived products and services, places, price, promotion, people and position For the overall mean for both employees and customers respondents show similarity on their perception on the position status of the company in terms of the six components with the overall obtained mean of 3.81 and 3.66 both rated as very good For the overall mean for both manager and employee respondents, there is similarity on their perception on the prospects in terms of the five areas as shown in the obtained mean of 4.10 and 4.16, both rated as very good

It is recommended that VNPT in Thai Nguyen province should focus on opening course training for staff security, and wireless computer maintenance skills to motivate work, team work skills and communication skills There is a need to continue to promote the exploitation of Internet and mobile phones, in addition to developing network services It is, likewise, recommended to hold training on customer relationship management skills and to purchase software for customer relationship management for marketing Moreover, there is a need to maintain giving gifts to customers to congratulate customers on their birthdays or major holidays This will help customers feel special and be concerned about how the customers are treated

Chapter I INTRODUCTION

The most important economic resource is not land, capital, or technology, but human Vietnam steps up ship in the global economy, to integrate successfully, "the comparison with the national strength in Asia" The prerequisite is the ability to work by employees Requirements for workers in the economic integration must not only have expertise which must be capable

of distribution in combination with other work While people are not always close, they require communication between people with children who need to quickly correct (Nguyen Sang, 2010)

Vietnam's mobile phone market is considered one of the fastest growing markets in the world with mobile phone subscribers currently estimated at 96.5 million, increasing 80 percent year-on-year (General Statistics Office, 2009) Vietnam Telecom Services Company is an economic organization - a member unit under Vietnam Post and Telecommunications Corporation operating in compliance with Organizational and Operational regulations of Vietnam Post and Telecommunications Corporation, which was approved by Decision No 51/CP on August 1, 1995 by the Government The Company specializes in trading and services in fields of mobile information, SMS sending and card-based phones nationwide together with other members in the chain of post and telecommunications technologies with very close and united relation on network organization, economic and financial benefits, development of post and telecommunications services to carry out objectives and plans assigned to the Corporation by the State (VNPT, 2012)

Vietnam Telecom Services Company was established under Decision No 331/QĐ-TCCB dated June 14, 1997 by the General Minister of General Post Office The main missions of the company are to manage and exploit three services: Nationwide mobile network (VNPT), Vietnam Messaging Network (Paging), and Card-based phone network (Card Phone) Paging network was stopped operating in September 2004 by VNPT because it was no longer suitable for the market after 10 years in operation.

In 2006, an important event that marked a great turning point of Vietnam's economy in general, and of the telecommunication sector, in particular was that: Vietnam officially became the 150th member of the World Trade Organization (WTO) Also, in order to enhance competitive capacity in the context of international integration, the Telecommunication Services Company made an important behavior: that was to change its abbreviation name from GPC (G=GSM; P=Paging; C=Card Phone) into VNPT This change showed business diversion of the Company in the new stage The Company also announced its new brand identity system that was of professional and modern manner It was the determination of the Company to make VNPT the first-ranked mobile network in Vietnam with orientation towards international cooperation and integration

Under definition of the World Intellectual Property Organization, brand

is a special sign (tangible and intangible) to recognize a product or service that is manufactured or provided by an individual or an organization The main criteria in creating ideas on design of Company's new logo model are to maintain the former basic brand name of VNPT services - decisive services - but it must create a breakthrough in image The new brand image must be

more simple, modern but it still needs to be purely Vietnamese, easy to apply and convenient in displaying on different background colors and different materials Specially, the new logo must show the meaning in terms of connection - a specific characteristic in business of VNPT Company VNPT is the pioneer in expanding mobile information in remote regions in Vietnam It is doing business to provide good services in order to promote local socioeconomic developments (Vietbao, 2012)

In the wake of these changing dynamics, the Vietnamese mobile phone operators face a number of significant challenges First, the majority of Vietnam mobile subscribers are prepaid who are apt to change the provider continuously, hence, retaining existing customers in a predominantly prepaid and high chum market has become more difficult and costly Similarly, new customer acquisition is becoming more elusive than ever as potential customers have more options to choose from and mobile phone operators offer attractive deals to lure prospects Third, as mobile phone operators have had to incur additional expense in keeping existing customers and acquiring new ones, their average revenue per user has declined, leading to deterioration of their financial performance Due to these challenges, service quality improvement, enhancing customer value and corporate image in order

to satisfy customer, then customer loyalty, are the key determinants of firm's success or at least survival

Telecommunication has been formed to help people move recently, economic, political, social stability and more smoothly Understanding the importance of information technology brings to human as well as the ways to develop more industry information technology If prompted efforts to build a

legal framework, "lodestar" guiding the telecommunications industry can not mention the achievements on the basis of development and infrastructure in

10 years that Vietnam has achieved from efforts of Vietnamese enterprises (VNPT, 2012)

Economic environment in Vietnam increasingly becomes more dynamic VNPT of Thai Nguyen province sustains the needs of telecommunications To develop fast, strong, and sustainable telecommunications, VNPT must continually analyze and assess the results of their operations and market to see the status service performance of the project strategy and to draw specific measures appropriate to develop its network in the province of Thai Nguyen province

Vietnam has been developing market economy, with economic policy models and strategies to integrate into the international economy Development of the market economy has been and will put the country's economy, in general and businesses, in particular face challenges and difficulties ahead of the competition increasingly fierce international to grab customers and expansion of the domestic market as well as at the world In market economies, firms operating in the country have to manage the business operations an effective way to be able to stand firm in the market and growing Enterprises wishing to do so should be effective in their business activities, while new businesses exist in the market and growing The business cannot effectively create momentum for economic development, but also contributes towards maintaining the country's economy, especially state-owned enterprises They should always keep a leading role in economic integration, collaboration, more efficient business

Group Vietnam Post and Telecommunications Group (VNPT) is the state-owned enterprises, operating in the information technology field, play an important role in the national economy VNPT provides many services to the market to meet consumer needs Creating service was difficult, but to bring them into the business was even more difficult, as the market increasingly more competitors appear To compete in a highly competitive market, such business activities of enterprises are strictly monitored For how effective business and still meet the needs of consumers, with stiff competition market today, many other telecom operators are going to dominate the market in the province So, obviously awareness of the activities of providing services is an important requirement of VNPT Thai Nguyen This has a great influence on building strategy development – a strategy to improve service quality in order to meet higher demands of customers At the same time, with the perception of quality resources, infrastructure, management capacity, Thai Nguyen's internal VNPT is also a necessary requirement in order to help VNPT Thai Nguyen build strategies for human development, for infrastructure to set the stage for long-term growth and sustainability of VNPT

Background of the Study

Telecommunications Thai Nguyen is a member of a large group telecommunications companies in Vietnam It is a member of the telecommunications corporation also known as VNPT Its efforts are geared towards effective applications of technology and advanced telecommunications services to provide information to mobile customers anywhere and to contribute

to promoting economic society of Vietnam It is committed to provide information services through mobile, fixed, wireless devices, phone-based internet and high

speed internet services, service data transmission, wireless internet connectivity and construction of networks for agencies, organizations, businesses and individuals (VNPT, 2011) With its purpose to bring customers an improvement of material life and to sustain the work spirit of its employees and to benefit partners, VNPT is at the core of helping the interests of the Vietnam community and possibly that of Southeast Asia and the world in general through the application of technology and advanced telecommunications, thereby bringing economic development in the society

Specifically, the VNPT aims to maximize the operational efficiency and develop economic groups at the technology, modern management and professional and high business sectors, including telecommunications and information technology in the industry and professional business It is tightly linked between production and business with science, technology, research and training not to mention the objective to preserve business interests; and to develop investors in the telecommunications business With stiff competition market today, many other telecom operators are going to dominate the market in the province

The revenue of VNPT Thai Nguyen decreased about 10% from the previous years Therefore, it is necessary to be aware about market position This study will help VNPT see clearly their current services and resources The results will help VNPT Thai Nguyen build its strategies for future development

Statement of the Problem

In Vietnam's intensifying telecommunication service market today, satisfying customers is only the baseline and may not be sufficient for survival for mobile phone service providers Management should focus on gaining customer

loyalty by enhancing customer perceptions of service quality and increasing perceived consumers’ value To do that, it is necessary for them to figure out the relationships and impacts of service quality, customer value, customer satisfaction, corporate image, and customer loyalty

With stiff market competition today, many other telecom operators are going to dominate the market in the province Therefore, obviously becoming aware of the activities of providing services is an important requirement of VNPT Thai Nguyen This has a great influence on strategy development, strategy to improve service quality in order to meet higher demands of customers So that, the awareness about quality resources, infrastructure, management capacity is very necessary requirement in order to help VNPT Thai Nguyen develop sustainably in future

There has been no study assessing the performance and prospects of the Thai Nguyen VNPT before Therefore, this study will answer the following questions:

1 What is the profile of the respondents in terms of:

Objectives of the Study

This study generally aimed to assess the quality of service performance and prospect of VNPT resources of Thai Nguyen on the basis of opinions survey review managers, employees and customers of VNPT Thai Nguyen

Specifically, this study aimed:

1 To describe the profile of the respondents in terms of:

1.1 Age

1.2 Gender

1.3 Civil status

1.4 Educational attainment

2 To determine the perceptions of respondents on the services performance

of the VNPT Telecommunication Thai Nguyen in terms of:

2.1 Product and service

5 To compare the prospects of VNPT Telecommunication in Thai Nguyen province as perceived by the two groups of respondents including staff and managers of VNPT Thai Nguyen

Hypothesis of the Study

The study tested the null hypothesis that there is no significant difference in the perception of services performance as perceived by employees and customers and prospects of VNPT Telecommunication in Thai Nguyen Province as perceived by managers and staff

Significance of the Study

The desired goal of this study is to learn the current telecommunications practiced by VNPT in the business of telecommunications services for the years

2011 to 2012; to offer solutions and suggestions for improving the quality of telecommunications services and raise awareness of competitive effectiveness

of VNPT Thai Nguyen in the following years

To the Manager This will provide them with valued information

concerning the marketing In this regard, they will be able to adapt their development programs to help the company expand more in the future

To the Researcher The researcher as a candidate for Doctor of

Business Administration degree will enhance her knowledge about marketing and prospect development

To Future Researchers This can serve as reference materials for

future researches similar to this

Scope and Limitations of the Study

This research focused on evaluating the service performance of telecommunications services by employees and customers in VNPT This research also focused on prospect in terms of management capacity, Human resource, Service attitude; Marketing; and Material facilities of VNPT Thai Nguyen The others items are NOT included in the study

Definition of Terms

Capacity Management refers to the managerial skill of manager in VNPT

Thai Nguyen

Human resource refers to the quality and quantity of employees in VNPT

Thai Nguyen

Customer is the person who uses the products of VNPT Thai Nguyen

Marketing is the process of communicating the value of a product or service

to customers, for the purpose of selling the product or service It is a critical business function for attracting customers From a societal point

of view, marketing is the link between a society’s material requirements and its economic patterns of response Marketing satisfies these needs and wants through exchange processes and building long term relationships It is the process of communicating the value of a product

or service through positioning to customers In this study, marketing is one of the variables to assess prospect of VNPT Thai Nguyen It includes strategies and methods that VNPT applies in operation

Material facilities are system material foundations, intangible and tangible

assets that the company owns, in order to serve the business and production activities

Prospect refers to the opportunities of VNPT that will likely contribute to its

success as perceived by the VNPT management and staff

Place refers to where the product is sold

Price refers to payment or compensation for products

Product is the service that VNPT is supplying to the customers This includes

Internet access, entertainment, information, call utilities, credit up/transfer, and other services

top-Promotion it is concerned with getting people to know more about products

and related services Advertising, public relations, point – of – sale displays, and word – of mouth promotion

Perception refers to the process by which people translate

sensory impressions into a coherent and unified view of the world around them Though necessarily based on incomplete and unverified (or unreliable) information, perception is equated with reality for most practical purposes and guides human behavior in general In this study, perception is the awareness, idea, and knowledge of respondents about service performance and prospect of VNPT in general, VNPT Thai Nguyen, in particular

Position is defined as the way by which the marketers create an impression

in the customers’ mind This is something (perception) that happens in the minds of the target market It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category It will happen whether or not a company's management is proactive, reactive, or passive about the on-going process of evolving a position

Prospect refers to potential development of company It is related to the

capacity of management, human resource, service attitude, marketing and material facilities, which shows development ability for a institution

Telecommunication is communication at a distance by technological means,

particularly through electrical signals or electromagnetic waves

Service attitude in this study is understood as service attitude, service style,

and service culture customers of VNPT Thai Nguyen

Services are type of economic activity that is intangible, is not stored, and

does not result in ownership A service is consumed at the point of sale Services are one of the two key components of economics, the other being goods

Service performance is the process of providing telecommunications

services to customers which is reflected in policies about the price of service, types of products, and promotion

Chapter II REVIEW OF LITERATURE

This chapter presents concepts and theories that are related to this research such as the marketing strategies, pricing strategies, and the overview of mobile telecommunications services

Finally a conceptual framework was formulated from the related

literature

Related Literature

It has been suggested that a firm cannot achieve success in today's business communications environment without delivering superior service quality Profit impact of market strategy (PIMS) research reports that companies that offer superior service can charge industry eight percent more for their products (Gale, 2002), while achieving above average market share growth (Buzzell & Gale, 2000) and profitability (Phillips et al., 2000) Berry et

al (2002) concluded: “Excellent service is a profit strategy because it results

in more new customers, more business with existing customers, fewer lost customers, more insulation from price competition, and fewer mistakes requiring the re-performance of services”

Earlier researchers suggest that customers access service quality by comparing what they feel a seller should offer with the seller's actual service performance (Grönroos, 2001; Lehtinen & Lehtinen, 2002) Lehtinen and Lehtinen gave a three-dimensional view of service quality consisting interaction, physical, and corporate quality Physical quality is the quality dimension, which originates from the physical elements of service like physical product and physical support Interactive quality indicates the

interaction between the customer and the service organization Corporate quality is symbolic in nature and indicates the perception of customers about the image of the organization However, Bitner, Booms and Mohr (1994) defined service quality as “the consumer's overall impression of the relative inferiority/superiority of the organization and its services” Other researchers view service quality as “a function of the differences between expectation and performance along the quality dimensions” (Parasuraman, Zeithaml, & Berry, 2000), “a relativistic and cognitive discrepancy between experience-based norms and performances concerning service benefits” (Roest&Pieters, 2006), and “a form of attitude representing a long-run overall evaluation” (Cronin & Taylor, 2003)

Overview of Mobile Telecommunications Services

Mobile telecommunications service is one of the forms of telecommunications services According to the provisions of Article 37 - Decree No 109/CP, “Telecom Services provide information in the form of transmission, distribution, collection of signs, signals, data, written word, sound, image via public telecommunications network provided by the companies and provide telecommunication services without changing the form or content of information sent and received This is a special service area supporting all the manufacturing, services, and social life Therefore, this economic sector is very important and necessary for society Firstly, Basic Telecom Services is the instantaneous transmission services or the Internet without changing the form or content of information It includes: telephone services, telegraph services, telex services, fax services, leased services, data transmission services, television service, television pictures, sound,

electricity transmission services report death; mobile services; and messaging services Secondly, Value Added Services is a service that increases the value of information services by providing the ability to store, retrieve information on the basis of telecommunications network or use the Internet They include e-mail services, voice mail services, hosting services, providing information, internet services: e-mail, data file transfer, remote access, access the database in different ways Thirdly, Internet connection services are services provided to agencies, organizations, and businesses to provide Internet service the ability to connect with each other It includes Internet connectivity services, Internet access services, and Internet service applications

In addition to voice services are improved, new data environment that allows information connected mobile content on the Internet - Internet access services for the mobile consumer market and additional access Services Intranet/Extranet for the mobile enterprise market Four basic contents are the information, entertaining, database and sales transactions The information services increasingly satisfy the daily needs of the users of the services of current events The transaction is made simple by the personal needs and the database when it is convenient for recovery information

Mobile Telecommunications Services business is not only a special offer for customers using a direct way but also the infrastructure for the development of other service activities and production services goods It is the infrastructure for the development of other economic sectors Mobile Telecommunications Services has the following characteristics:

First, information service effective mobile communications anytime, anywhere It allows users to actively make and receive calls at any given time,

so that it gradually becomes essential communication tool of the people

Second, mobile information services have high security properties for information when transmission is encrypted This meets the high requirements

of communication Customers can be assured the information does not leak outside

Third, mobile information service is an information service of modern communication Besides high-quality voice, mobile subscribers can use a range of other useful services such as Internet access, data transfer, chat, exchange information updates, weather, stock, and sports Also, mobile phones can be connected to peripheral devices such as computers, fax machines, printers And this connection brings the convenience and saving time for customers

Fourth, the price of mobile communication services is higher than the price of fixed telephony services, primarily replacement product The reason is the construction of the network and the cost of technology and advanced equipment Moreover, features of mobile communication services priority over Vietnam landline services can connect people from everywhere

Fifth, information products and services mobile are necessary Demand for mobile communication services of areas is not the same The areas that are with good geographical location and high level of economic development have higher demand for mobile services This would be make services and supply for demand of the mobile services different Therefore, it makes the supply and the demand of each area different This requires that the mobile

communication business needs a thorough research to learn about the region and to formulate more appropriate business policies

Last, if one decided to buy mobile communication services, it is more complex buying decisions because the service quality of tangible products is difficult to assess On the other hand, there is an issue of protection of products and services because these are easy to copy or imitate So, companies often promote the services to prevent competition, copying, and imitation by the competitors

Besides main business activity, the development of value-added services is one of the competitive strategies of telecommunication companies Under the provisions of the Telecommunications Ordinance (Article 37, Section 3) and Decree 160/2004/ND - CP (Clause 4, Article 13, Section 3): Value-added services are services adding value to the user's information services by type of perfection, content or information to provide the ability to store, retrieve information via telecommunications network or the Internet Value-added services include: E-mail services; voicemail service; services to access data and information online; services to exchange data electronically; Fax service value including storage and send, store, and access; service code and protocol conversion; and data processing services and information online

Mobile information service is a service-based high-tech and modern with many utility applications Mobile communication services are provided through network equipment and mobile phones Mobile phones are increasingly integrating multiple functions such as listening to music, watching movies, information storage, internet connection, and take pictures; hence, increasing the value added services Enterprise mobile telecommunications

operators are likely very large, rich with creative possibilities of man and the increasing needs of the user

Business value added services in the mobile telecommunications sector also has the characteristics of business services in general The business value added services should pay attention to the development of the physical elements that customers may perceive The quality of a Nokia mobile phone or LG can be tested but it is difficult to check the quality of the portfolio

of services offered by Vina or Mobile Therefore, the task of providing added services is to turn the invisible into the visible

value-The business development of value added services is associated with the development of technology As technology develops, the ability to create value-added services with high quality and the ability to create service differentiation with competitors is huge Therefore, business value-added services have a large capital investment and foresight when it built new brand superiority and higher profits for the providers when services market value for growing and basic services were saturated In addition, business value-added services grow to be a strong link with the new provider then creates a list of value-added services and high quality rich The vendors here include equipment vendors, technologies, solutions providers, and content information

Developing business value-added services in the field of mobile telecommunications is important For customers, value-added service capabilities create a higher demand for customers meeting the needs of customers anytime and anywhere Moreover, these needs are met by the personalized products For enterprises, value-added services will provide

information to help the decision-making process and implementation of business decisions in a fast and convenient way Value-added services formed barriers, preventing the entry of competitors Value-added services will make a difference in comparison with its competitors, due to the creativity and the ability to apply technology telecommunications, information technology to create the particular service

At the macro level, value added services are vital to the economy and social life, to raise standards of living, working and living conditions for people, creating a new civilization, the civilization of goods and technology, and the era of information

Value added services also radically change the structure of the national economy

Besides basic services are mobile services which is the source of revenue for the service provider, the value-added contribution to an important part of the entire revenue of the service provider of this business In Vietnam, value-added services contribute 13% -15% in the world sales In the developing countries, 3G network has a high rate of over 50% In the future, when the service becomes saturated, basic service charges are reduced and the value-added services can be a source of revenue and profit for major businesses Creating large turnover also contributes to increasing the state budget to implement the goals of society (Deloitte, 2012)

In addition, the value-added service in Mobile Telecom sector will help greatly other activities in the economy as well as in life It helps the technology becomes more useful for life and also motivates the development and creation more of science, technology and application of its achievements

In marketing, a product is anything that can be offered to a market that might satisfy a want or need In retailing, products are called merchandise In manufacturing, products are purchased as raw materials and sold as finished goods Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project In general usage, product may refer to a single item or unit, a group of equivalent products, a grouping of goods or services, or an industrial classification for the goods or services (Ngo XuanBinh, 2007) In this research, product means the following:

The subscription-based VNPT 2G and 3G includes prepayments, postpaid, subscription date, messaging, prepayments prolonged, and prepayments period The package includes the prepaid packages: Vinacard, VinaText, Vinaxtra, Vinadaily, Vina365, package students to EZ-Talk, the ALO roaming, international package called the IDD-1714, local-package called My Zone, packages, 3G, Iphone 3Gs prepaid package - paid Plans follows:

VNPT, and postpaid Iphone 3Gs (Report of VNPT 2011)

The same with MobiFone, VNPT is a leading company in providing value-added services to more than 40 services offered on the phone Also, based on 3G VNPT allows subscribers to see live images of one another through the camera of the mobile phone It also provides high-speed Internet access through the device supports (Mobile Broadband) via data transmission technology in mobile networks Television services on mobile networks (Mobile TV) is a service that allows subscribers VNPT to watch live TV channels (Live TV) and information content on demand on the mobile screen

Services to monitor images on mobile phones (Mobile Camera): service is a service that allows subscribers VNPT to track directly on the mobile screen images obtained from the computer dial located at the junctions, public places, and private homes

The service attitude starts with a fundamental attitude of helping others There is a genuine interest in problem-solving to enable others' success The underlying characteristics of an attitude of service are: approaching each new client first and ask them how they can be helped

There should be a genuine interest in the client, their business, and the challenges they are facing The business should be on the client's side and respect them as well as their needs An attitude of service will truly and consistently exceed client’s expectations, without having to consciously follow any process for doing so One should take time to listen, make the effort to care, and show a willingness to be there to help, win customers for life (Tran

Minh Dao,2003)

Place

Place, or distribution channel, is the method for making product available to the consumer The main use of distribution channel marketing is

to provide a link between product and consumer Other functions include

distributions, financing, and risk taking are also functions of some distribution channel marketing All these functions are necessary for success in any

market (Ngo Xuan Binh,2007)

Price

Price is the amount of money charged for a product or service or the value exchanged for the benefits of the product or service For a new product, one must understand his positioning before one sets a price The price should not be too low, or the product will not be taken seriously If it is too high, the potential customer will not take the risk (Ngo Xuan Binh, 2007)

Charging the product to reflect the product's life cycle is only part of the essence of a well balanced marketing mix, and so price enters the second important consideration of the marketing mix When setting a price on a range for one’s products, he needs to ensure that he can recoup any overheads,

compete with rival companies and charge a price the customers are willing to pay (Ngo Xuan Binh, 2007)

This involves lowering prices on a number of key products in order to attract a customer to purchase the products Customers obviously like a bargain and like may be attracted to buy this item even if they had never considered purchasing this item before Price reductions could be used to entice customers to look at your other products, and any profit lost might well

be made up should the customer be persuaded to shop around and purchase other produces not reduced in price Lose leader pricing might be used to sell off or stimulate interest in products considered to be in the maturity or decline stage of their life cycle (Nguyen Duong, 2009)

Penetration pricing This type of pricing is used for products identified

as being in the "introductory" stage of the product life cycle to enable the product to get a foothold in the market Prices are artificially reduced to attract the largest possible audience It is often used to prevent or discourage competitors from capturing the market and used for products that are mass-

produced (Nguyen Duong, 2009)

Price skimming Where penetration pricing keeps the pricing below the

real market price, price skimming raises the price artificially to enable it to quickly recoup costs and for immediate profit This type of pricing structure works very well for products that are in demand or where there are few competitors - electronic equipment for example Caution has to be used when employing this strategy as competitors may well take advantage of these high prices and enter the market quickly with a realistic price thus stealing the market Again this type of pricing strategy might be used when the product is

in its growth stage in the product life cycle as demand is high and sales are

high (Nguyen Duong, 2009)

Differential pricing This involves allowing the same product to be

priced differently This can be justified when the product is sold in areas with differing economic climates, when sold through differing distribution channels,

to appeal to a different market segment For example, the wholesaler can be charged less for buying in bulk than for an individual who only bought on single card Moreover, the card designs in London can be charged more than from the North of England simply because the economy is more stable in

London than in the North of England (Ngo Xuan Binh, 2007)

Promotion

This involves disseminating information about a product, product line, brand, or company It is one of the four key aspects of the marketing mix Promotion is generally subdivided into two parts, such as above- the- line promotion and below-the-line promotion Above-the-line promotion means the promotion in the media (e.g TV, radio, newspapers, internet and mobile phones) in which the advertiser pays an advertising agency to place the ads Below- the- line promotion refers to all other promotion Much of this is intended to be subtle enough for the consumer to be unaware that promotion

is taking place (Tran Minh Dao, 2003)

The specification of these four variables creates a promotional mix or promotional plan A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning,

competitive retaliations, or creation of a corporate image (Tran Minh Dao,2003)

The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common An example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff (Kotler,

2003)

People

People factors include two main factors: the human resources in companies and the customers

Human resource Human resources include experience, skills, training

levels and thoroughness, effort, or any other characteristics which create

added value and competitiveness for the workers

Human resource is the staff of Thai Nguyen telecommunication This also refers to the structure and the characteristics to identify the human resources (gender, level of professional services, industry, and the like) This may also pertain to the description of the characteristics of thoroughness, effort, ability to adapt or to be creative Human resource management is the design of policies and implementation of field activities to make people contribute value to the most effective organization, including areas such as planning for human resources, analysis and design work, recruitment and selection, training and development, performance evaluation and remuneration, health and labor safety and labor relation Activities in the field

of human resources include planning of human resources, analysis and