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Internet Service Provider Switching Intention: The Case of Hanoi Consumers


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- International Conference on Marketing in the Connected Age (MICA-2018), October 6 th , 2018 Danang City, Vietnam.
- Internet Service Provider Switching Intention: The Case of Hanoi Consumers.
- Research on service provider switching behaviour of consumers is a new research topic in Vietnam..
- According to Push-Pull-Mooring (PPM) Migration Model of Switching Service Provider, this research proposes Internet Service Provider Switching Intention of Hanoi consumers Model with three factors originating from present service provider and one from alternative service provider.
- Results show that the model is suitable for research into Internet service provider switching intention of Hanoi consumers.
- Keywords: Service provider switching intention.
- PPM Migration Model of Switching Service Provider..
- Over the globe, the topic of switching behavior is receiving great attention from scholars, who have carried out researches both theoretically and practically to find effective ways to maintain and cultivate relationship with consumers.
- Specifically, Service Provider Switching Behavior Model (PPM) of Bansal Irving, P.
- F., (2005) has been developed by researchers over the world to explain and predict service provider switching behaviors in different service sectors such as Information Technology (Lui, S.
- Previous researches have presented that during the switching process, switching intention is a central factor, which decides the service provider switching behavior of consumers.
- However, in Vietnam, there has yet to be research into the topic of service provider switching behavior of consumers..
- This study makes use of PPM Model by choosing suitable factors as to the Internet service context, building research model to explain Internet provider switching intention of consumers.
- The result contributes to the increase in awareness of service provider switching behavior, which is more and more ubiquitous in Vietnam, from the perspective of PPM Model..
- Switching behavior is a concept that has interested numerous scholars, especially in a competitive market condition.
- The majority of researches show that switching behavior of consumer is the decision to switch from using the service of present provider to buying from its competitors.
- Studies on switching behavior have 3 approaches, including: reasons leading to switching (S.M.
- Firstly, perception of the present accomodation of immigrants can push them to switch to another place (pushing factor).
- Secondly, perception of the destination of immigrants can acttract migration activity (pulling factor).
- James, there are similarities between migration and service provider switching behavior, therefore, pushing, pulling and mooring factors have their roles in explaining switching process of consumers.
- Service Provider Switching Model (PPM) of H.S.
- James (2005) is a comprehensive theoretical framework and model, which identifies particular variables and explains switching behavior of consumers in the service field.
- In PPM model, switching intention plays a central role and has decisive impact on switching behavior.
- Individual variables fall into 3 categories influencing switching intention of consumers, namely: pushing factor group, pulling factor group and mooring factor group..
- Pushing factors (Push) are factors which originate from present service provider and stimulate consumers’.
- The PPM model puts an emphasis on the importance of mooring variables as control variables as to service provider switching intention of consumers..
- Switching intention describes consumers’ ability to switch from present provider to a different provider (Chuang, 2011).
- Service provider switching intention is one of the bases for providers to predict consumers’.
- Satisfaction is an important concept in researches into consumer relationship and it has attracted a great deal of interest from scholars in the previous decades.
- As reported by Kotler (2001), satisfaction is the level of emotional state rooting from comparing the result of the product/service with consumers’ expectation.
- In studies concerning consumer relationship, satisfaction plays an important part in distinguishing 2 consumer’s groups: those who are loyal and those who have had service provider switching behavior.
- Researchers have identified that consumers’ satisfaction have a reverse effect on switching behavior as consumers have a tendency to buy from a different service provider if they are not satisfied during experimental stage (Bansal et al, 2005.
- In studies which apply PPM model to research on consumers’ switching intention, satisfaction is one of the pulling factors.
- In order to study the relationship between satisfaction and Internet service provider switching intention, this study proposes a research hypothesis:.
- H1: Consumers’ satisfaction has a negative effect on Internet service provider switching intention..
- Price is an exchange correlation in the market.
- Price is usually the primary factor deciding consumers’ choice (Engel et al, 1995).
- According to studies on switching behavior, price is an essential factor in models of service provider switching behavior (Keaveney, 1995.
- As reported by the majority of studies on service provider switching behavior, consumer’s price perception is measured by consumer’s perception process of present provider’s price compared with alternative provider’s price (Lui, 2005)..
- In PPM Model – service provider switching behavior, price perception is a factor pushing consumers to alternative service provider (H.S.
- S.M (2005), who studies IT service provider switching behavior (the surveyed IT service includes mobile phone and Internet), supposes that the price factor is influenced by consumer’s conception, therefore, consumer’s disapproval of the price will give rise to switching intention..
- As a result, this study proposes a research hypothesis reflecting the relationship between service price perception and Internet provider switching intention:.
- H2: Service price fairness perception has a negative effect on Internet provider switching intention Subjective Norm.
- In the field of research, service provider switching intention of consumers witnesses an upward trend if their close ones expect them to conduct switching behavior (ex: Bansal, H.
- On the basis of the given arguments, this study proposes a research hypothesis:.
- H3: Subjective norm has a positive effect on Internet provider switching intention Alternative attraction perception.
- Sheth and Parvatiyar (1995) assert that while making buying choice, consumers have the tendency to choose merely several alternatives according to their subjectivism to reduce the complication of the buying process, therefore information processing is facilitated.
- Previous studies on switching behavior assert that alternative attractiveness affects service provider switching intention (Bansal, Taylor, &.
- The great attractiveness of alternatives can have a direct impact on switching behavior (Kim et al, 2006).
- Alternative attractiveness perception is a pulling factor in the PPM Model (H.S.
- Consumers invariably compare values among companies based on give information, they are pushed by perception of the benefits, values and service quality which is promised by a company (Bansal, Taylor and James, 2005.
- Therefore, consumers may not be willing to switch their service provider if conditions namely benefit, values and service quality of their present provider have bee improved.
- The alternative attraction perception has a positive effect on Internet provider switching intention.
- Image I illustrates a proposed research model on factors effecting Internet service provider switching intention of Hanoi consumers..
- Qualitative research is conducted with the intensive interview method with an aim to examining and filtering individual variables, which effect Internet service provider switching intention in the tentative research model, as well as identifying preliminarily the relationship between variables in the research model.
- Our research groups have conducted intensive interviews with 10 Hanoi inhabitants including: 06 Internet service consumers, 02 experts of the marketing field, 02 managers working in Internet service enterprises..
- The concepts used in this study include: service provider switching intention, satisfaction, Service price fairness perception, subjective norm, alternative attractiveness perception.
- Service provider switching intention scale is inherited from Arvind Malhotra’s scale (2013), consisting of 5 observation variables (example: I don’t have any intention to use Internet service of my present provider permanently)..
- The service price is equal to that of similar service provider).
- The questionnaire is constructed based on observation variables used to measure studied concepts in the model.
- Questions in the questionnaire are examined thoroughly according to a strict procedure to ensure.
- service provider switching.
- A convenient sample includes 260 consumers currently using Internet service over 10 Hanoi districts..
- This study makes use of the method of choosing convenient sample based on particular criteria such as:.
- gender, education level, age… in order to make sure the data has the highest representativeness..
- In the sample, female and male makes up for 34% and 67%, respectively.
- households with income of 15 to 25 million dong per month comprise 50% and about 9% of the total sample belongs to household with over 25 million dong per month..
- Subjective norm.
- Research hypotheses are accepted when the significance level of the correlation coefficient is less than 0.05..
- The correlation coefficient (Table 1) shows that most of the correlation coefficients between the independent variable and the dependent variable have a significance level of 99%.
- The research team utilizes multiple-variable regression to analyze factors affecting Internet service provider switching intention.
- Results illustrate that, all factors influence Internet service providers.
- The adjustment factor of the regression model is 0.746, reflecting the independent variables are 74.6% explained for Internet service provider switching intention..
- The significance level of the regression coefficients for independent variables was all less than 0.05, reflecting the regression coefficients of the independent variables are statistically significant in the model.
- The VIF values of the independent variables in the model are less than 10, reflecting the model is with multi-collinearity but still acceptable..
- Subjective norm .
- Dependent: Internet service provider switching intention Adjusted R Square: 0.746.
- Research results show that, satisfaction and Service price fairness perception have opposite effect to service provider switching intention because regression coefficients are negative.
- subjective norm and alternative attraction perception have same effect service provider switching intention.
- Among factors affecting service provider switching intention, price perception is the most influential factor because the regression coefficients are 0.464.
- Level of impact of the following factors respectively are subjective norm (0.312), satisfaction (0.235) and alternative attraction perception (0.157)..
- This study is based on PPM Theoretical Model to examine the impact particular factors have on Internet service provider switching intention of Hanoi consumers.
- Theses factors are found in order to verify pushing, pulling, mooring factors concerning Internet service provider switching intention of Hanoi consumers.
- and ‘Attractive alternativeness’ factors on ‘Internet service provider switching intention’ as well as the negative.
- of ‘Satisfaction’ and ‘Service price fairness perception’ factors on ‘switching intention’.
- This study has suggested decisive factors concerning Internet service provider switching intention of Hanoi consumers and proposes that enterprises currently or wanting to be involved in the Internet service market need to construct strategies building and maintaining relationship with consumers..
- This research focuses on factors affecting Internet service provider switching intention.
- In the future, choosing different service fields in order to compare the effects of factors on switching intention can give rise to intriguing results..
- Exploring switching behavior of US mobile service customers.
- Journal of the Academy of Marketing Science, 32 (3.
- The Service Provider Switching Model (SPSM): A Model of Consumer Switching Behavior in the Services Industry.
- Investigating Interactive Effects in the Theory of Planned Behavior in a Service-Provider Switching Context.
- Migrating” to New Service Providers: Toward a Unifying Framework of Consumers’ Switching Behaviors.
- Journal of the Academy of Marketing Science .
- Understanding the Customer Base of Service Providers: An Examination of the Differences between Switchers and Stayers.
- Journal of Marketing .
- Consumer Switching Behavior in the Asian Banking Market..
- Customer Switching Behavior in Service Industries: An Exploratory Study..
- A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions..
- Online service switching behavior: The case of blog service providers

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