Analyzing factors influence customer loyalty in mobile telecommunication services for youth customers in Ho Chi Minh City
Abstract
Customer loyalty is a crucial factor in determining the success of business since it helps to build a brand name and expanding reputation for your company.
Telecommunication industry in Vietnam is considered as a potential market. However, recently major providers have seen a slowdown in the number of customers recently because of market saturation. Moreover, under oligopoly market, a firm not only considers the demand of market but also the reactions of other firms in the industry. Hence, the issue of customer retention is becoming more important.
Besides, while youth customers are a promised segment, there must be a study
on this group due to their distinct habit of using mobile service and limited spending. This research will be helpful on understanding youth customers–the blooming users in mobile market nowadays.
After doing quantitative method, 30 items of 8 dimensions withdrawn to design questionnaire for 300 students in Vietnam National Universit y HCM (VNU) are being studied for survey research method. The main target of this study is youth customers specifically students from 20 to 24 years old.
The result shows a positive satisfaction about the service quality provided by mobile operators and a positive overall loyalty though the level is not high. Three main factors: Price, Network Q uality, C ustomer S upport has a positive relation with customer loyalty. Especially, Price has the strongest relationship with Customer Loyalty.
From that point of view, the operators should take care of pricing policy and improve customer support system as well as stability of network. This research provides
helpful solution for operators to retain the customers, especially youth customers.