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RESEARCH PROPOSAL
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
Table of Contents
1. Introduction ................................ ................................ ................................ ................................ .. 1
1.1. Back ground ................................ ................................ ................................ ................. 1 1.1.1. 1.1.2. General Overview ................................ ................................ ................................ .. 1 Management Problem ................................ ................................ ............................ 2
1.2. Research Objective ................................ ................................ ................................ ...... 3 1.3. Research Question ................................ ................................ ................................ ...... 4 1.4. Scope of Research ................................ ................................ ................................ ....... 4
2. Literature Review ................................ ................................ ................................ .......................... 5
2.1. Importance of Research ................................ ................................ ............................... 5 2.2. The Service Convenience Literature ................................ ................................ ............ 5
3. 4. Overview telecommunication & Internet service in Viet Nam ................................ ................... 8 Research Methodology ................................ ................................ ................................ .............. 10
4.1. Research process ................................ ................................ ................................ ...... 10 4.2. Research method ................................ ................................ ................................ ....... 10
5. 6. References ................................ ................................ ................................ ................................ .. 12 Research Plan ................................ ................................ ................................ ............................. 13
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
1. Introduction
1.1. Back ground
1.1.1. General Overview
Services are going to move in this decade to being the front edge of the industry. This quote from IBMs former CEO, Louis V. Gerstner, illustrates the changes sweeping across industry in the 21st century (Valarie A. Zeithaml, 2009). Consumers demand change rapidly especially in services industry. In dynamic competitive service environments, understanding service conveniences and provide satisfaction value to the consumer is imperative. A number of converging socioeconomic factors during 1980s have encouraged consumers and businesses to seek convenience in the products and services they buy (Brown, 1990). Service convenience is consumers time and effort perceptions related to buying and using a service. (Berry, 2002) pg12. Service convenience involves more than proximity of the location or hours of operation, it includes dimensions such as decision; access; transaction; benefit, and post benefit convenience (Scott R. Colwell, 2008) p161. In general, consumers perceived convenience have been related to decreased consumers time and effort, in terms of goods (e.g., ready-to-eat cereal, frozen dinner, instant noodles) and services (e.g., laundry, child care, maid service). It is also useful to make distinction between service convenience and goods convenience. Good convenience related to product issues such as size, packaging, design, use and how to storage. Others more are production and distribution oriented. Service convenience extends to all types of convenience oriented to reduced consumers time and effort in interacting w service ith providers such as operating hours, credit availability, users friendly services, etc. Services perform directly for consumers required their presence where and when the service is available buy a cell phone needs consumer at the mobile shop when it available, at the restaurant when they are operating. Buying or using an intangible services such as subscribe a telephone package or internet service package also need consumers to make a decisions but without inspecting the product. Whatever services are, in this way or that way, however consumers are required to invest considerable time and effort in using or purchasing services. Therefore understanding service convenience better will help
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
marketers improve the value of their market offers. Failure to do so can lead to lost consumers and future revenue streams that are costly to replace (Reichheld R.F, 1996).
According to the scientific research of Prof. Nguyen Hong Son related to the growth of Services industry of Vietnam from now to year 2020, he addressed that services growth rate is not high compared with GDP. Role of services industry in Vietnams economic: In most of modern economies, services industry is a motive force of economic activities and a most contribution industry for the quality of peoples life (UNDP, 2006) In Vietnam, after DoiMoi 1986, services industry becomes one of the most important driving forces of the nation economic. The Communist Party Congress Development Plan targets for 1996- 2000 of growth in services of 12-13% were not met, nor was the target met to expand the services share of GDP to 45-46% by the year 2000 as the share dropped to 41.4 percent. In year 2008, the services share of GDP is 38.1% and 26.7% labor force.
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
Comparing service proportion in GDP, in year 2006 Vietnam ranked 8th of 10 ASEAN countries. Vietnam was after Singapore (65.17%), East Timor (55.1%), Philippines (54.19%), Thailand (44.41%), Cambodia (43.68%), Malaysia (41.35%) and Indonesia (40.06%). Innovation and develop human resource became one of the important factors improve the services industry. Therefore understanding and doing research related to services are the most interested research topics nowadays in economic and science. Despite its acknowledge importance, services convenience still has received relatively little attention in academic research in Vietnam. In some articles, researchers in Vietnam also refer to the convenience meaning but in other context of services such as service personal value (Pham Ngoc Thuy, 2010), convenience store.
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
service convenience conceptual framework (Berry, 2002). There is still no fully research about convenience and service convenience in Vietnam marketing context. Thus, understanding service convenience and how it influence consumers satisfaction and then repurchasing behavior is the primary focus of our research. The research based on the scale developed and validated 17 items services convenience measurement proposed by Berry, Seiders and Grewal (2002). The five dimensions are independent within a nomological network that illustrates distinct antecedent and consequent effects, and the results offering insight into the distinctive relationships between each service convenienc e dimension and its antecedents, such as competitive intensive, and consequences such as repurchase behavior (K. Seiders, G. V. (2007)).
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
2. Literature Review
2.1. Importance of Research
Today in the Globalization area and dynamic competitive environments, Consumers perceived expenditure of time and effort interacts to influence their perceptions of service convenience(Berry, 2002). To meet the increasing convenience demands of consumers (Lovelock, 2001; Dabholkar, 2003) and to minimize potential customer loss, service providers have to use different methods such as e-commerce, technical live chat capabilities, and mobile telecommunication services based on marketing research and service research. Given the pressure to provide better convenience, service convenience is significant interest to management and scholars (Scott R. Colwell, 2008). In the face of markets response to the demand for convenience, it is appropriate for marketers of services to reexamine the concept of convenience (Brown, 1990). Marketers must develop a more precise and complete understanding of the concept due to the demand of conveniences has become so strong (Berry, 2002).
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
DC
AC
Figure 3 The Conceptual model of service convenience and satisfaction, purchasing
2.2.1. Decision convenience
Consumers confront the make-or-buy decision more commonly for services than for goods (Berry, 2002). Immediately when consumers realized the need for a product or service such as Telecom and Internet services, they face with the decision of which suppliers to use and what specific service to buy. Decision convenience is therefore defined as the consumers perceived time and effort expenditures to make service purchase or use decisions (Berry, 2002) (Scott R. Colwell, 2008)
2.2.2. Access convenience
TC
Access convenience is determined by the physical location, operating hours, and availability online, by
BC
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
phone or in person (Meuter M.L, 2000)(Seiders K., 2000). It involves consumers perceived time and effort expenditures to initiate service delivery (Berry, 2002) p7. Illustrate this concept by telecom & Internet service providing example, once the consumer has decided a service provider and s ervice package, initial access required consumers come to service counters or technological interaction.
2.2.3. Transaction convenience
Transaction convenience perceptions reflect the time spent in physical or remote queues to complete the purchase transaction of the service. At this stage, consumers have to invest time and energy (Scott R. Colwell, 2008) p161 therefore the conceptual meaning of transaction convenience is consumers perceived expenditures of time and effort to effect transaction. (Berry, 2002) p7.
2.2.4. Benefit convenience
After purchased and accessed a service, consumer begins to do confirmation or get experience from the services consumption (Peter J.P, 1999). Consumer will recognize what is the benefit of the service. Thus, benefit convenience is defined as consumers perceived time and effort expenditures to experience the services core benefits (Berry, 2002) p7.
2.2.5. Post-benefit convenience
Post benefit convenience is defined as consumers perceived time and effort expenditures when reinitiating contact with a firm after the benefit stage of the service (Berry, 2002). Post benefit convenience relate to consumers need for products repair, service maintain or exchange. For example with Internet service, it takes a small change with special device supplied by service provider if consumer wants to subscribe another new service such as iTV (internet over LCD TV).
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
Broadband: According to the Vietnam Internet Center (VNNIC), the number of Internet users in Vietnam had increased to 20.834 million at the end of 2008. This figure is equivalent to 24.04% of the total population. Number of Internet users increased by 26% in 2007 and 12.3% in 2008. Meanwhile, according to VNNIC, the number of broadband subscribers increased 150% in 2007 and 58.3% in 2008. In late 2008, the percentage of universal broadband in Vietnam rose to 2.43% from 1.5% in late 2007. Currently, the number of ADSL subscribers in the country has reached over 2 million people. Meanwhile, in late 2006 this figure was just 500,000 subscribers. VNPT has dominant market share with over 1.2 million subscribers (60%), followed by Viettel with over 430,000 subscribers (21% market share) and FPT with over 285,000 subscribers (14%); the rest of the other Internet service providers (EVN Telecom, SPT, OCI, etc.).
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
4. Research Methodology
4.1. Research process
Due to the research objectives, the research methodology we approach combines both qualitative and quantitative as the following flow chart.
Through service convenience literature review, we identified the scales for service convenience consisted of five items each for decision convenience, access convenience, transaction convenience and benefit convenience, and six items for post-benefit convenience proposed and tested by (Scott R. Colwell, 2008) p162. The author provided psychometrically valid scales for measuring the service convenience dimensions as originally conceptualized by Berry and coworkers. We analyze these scales and conduct exploratory interview with experienced consumers (group of 5-10) regarding their using services (cellular telephone). A list of responses will be generated that maybe adjusted or not. To assess the content validity of the items, we ask the panel of academics (2-3 faculty Nguyen Trung Nguyen, MsM Ho Chi Minh Outreach Program, 2009. 10
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
members from university in Vietnam, HoChiMinh or graduated MBA persons) to review the definitions of the five service convenience dimensions and indicate which item do not reflect any dimensions (Shimp, 1987) (Tian, 1998). We follow the five-point Likert scale to measure all items from strongly agrees (1) to strongly disagree (5).
4.2.2. Sample and data collection
Follow the further research recommended by Scott R. Colwell, we replicate this research in the context of Vietnams consumers. Cellular telephone services thought to be appropriate since the number of telephone subscribers over the country to end of February 2011 was estimated reaching 172.6 million, including 16.5 desk telephone subscribers, up by 2.4% and 156.1 million mobile phone subscribers, up by 36.8%(General Statistics of Vietnam, 2010). After having the revised list of items measuring 5 SERVCON dimensions, we move to next step with the questionnaires creation. The questionnaires are originally design by (Scott R. Colwell, 2008) and revised after scale adjustment. The content of questionnaires is in English, so questions will be translated into Vietnamese by one expert and check by another faculty member. The main survey will be conducted using a convenience sampling method which consists an online survey and by hand. We expected the response rate from 30-40 percent.
4.2.3. Data analysis
A descriptive profile of the respondents will be made. SPSS will be the main tool to analyze. As mentioned above, the development of those measurement scales was based on previously research (Scott R. Colwell, 2008). Therefore, their content validities were expected to be satisfactory. Confirmatory factor analysis (CFA) can be used to assess (preliminarily) the measurement model for unidimensionality, internal consistency and convergent validity of each of the scales. SERVCON scale applied nomological validity testing to exam relationships between each dimensions and its hypothesized antecedent and consequent effects (Tian et al., 2001).
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
5. References
Berry, S. a. (2002). Understand service convenience. Journal of Marketing , 66, 1-17. Brown, L. (1990). Convenience in services marketing. Journal of Services Marketing , 4, 53-9. Dabholkar, P. B.-J. (2003). Understand consumer motivation and behavior related to self-scanning in retailing: implications for strategy and research on technology-based self-service. International Journal of Service Industry Management , 14 (1), 59-95. Engel J.F, B. R. (1982). Consumer Behavior (4th ed.). New York: The Dryden Press. General Statistics of Vietnam. (2010, 8 13). Monthly statistical information . Retrieved 3 18, 2011, from General Statistics Office: http://www.gso.gov.vn/default.aspx?tabid=622&ItemID=10921 Heskett, J. (1992). Note on Service Mapping. Boston: Harvard Business School Publishing. K. Seiders, G. V. (2007). SERVCON: development and validation of a multidimensional service convenience scale. Journal of Acad. Mark. Sci. , 35, 144-156. Lovelock, C. (2001). Service Marketing: People, Technology, Strategy. (4th, Ed.) NJ: Prentice-Hall. Meuter M.L, O. A. (2000). Self service technologies: understanding customer satisfaction with technology-based service encounters. Journal of Marketing , 64, 50-64. Peter J.P, O. J. (1999). Consumer Behavior and Marketing Strategy. New York: Irwin/McGraw Hill. Pham Ngoc Thuy, L. N. (2010). Service personal values and customer loyalty. Internation Journal of Bank Marketing , 28, 465-478. Reichheld R.F, T. (1996). The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value. Boston: Havard Business School Press. Scott R. Colwell, M. A. (2008, 2 22). Toward a measure of service convenience: multiple-item scale development and empirical test. Journal of Services Marketing , 160-169. Seiders K., B. L. (2000). "Attention, retailers! How convenient is your convenience strategy?". Sloan Management Review , 41, 79-89. Shimp, T. &. (1987, 8). Consumer ethnocentrism: Construction and validation of the CETSCALE. Journal of Marketing Research , 280-289. Tian, K. W. (1998, 6). Consumer's need for uniqueness: Scale development and validation. Journal of Consumer Research , 50-66. Valarie A. Zeithaml, M. J. (2009). Services Marketing - Integrating Customer Focus Across the Firm. International: McGrawHill. Zeithaml, V. A. (2000). Services Marketing: Intergrating Customer Focus Across the Firm. Boston: Irwin/McGraw Hill.
FIVE DIMENSIONS OF SERVICE CONVENIENCE (SERVCON): THE INFLUENCE TO CONSUMER SATISFACTION AND REPURCHASING BEHAVIOR
6. Research Plan
JanNo. Activities 11 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Topic selection/ registration Theoretical back ground Literature review Proposal writing Proposal submission Research Proposal defense Research design Data collection Data analysis First draft writing Supervisors comment Finalizing Buffering time Thesis submission Thesis defense
Feb- Mar11 11
Apr11
May11
Jun11
Jul11
AugRemarks 11 1 Dec-28 Dec, 2010 1 Jan-31 Jan, 2011 15 Jan15 Feb, 2011 15 Feb-15Mar, 2011 21 Mar 2011 26-27 Mar, 2011 15 Feb-30 Apr, 2011 1 Apr-30 May, 2011 15 May- 1 Jun, 2011 15 Apr 1 Jun, 2011 1 Jun-20 Jun, 2011 20 Jun-10 Jul, 2011 10 Jul-15 Jul, 2011 17 Jul, 2011 14-18 Aug, 2011