Consumer behaviors and the Marketing-mix strategy of mobile telecommunications enteprises in Vietnam

1.3.2 Research tasks To achieve the afore-mentioned purposes, the research is supposed to fulfill the following tasks: - Synthesize and systematize the concepts, contents, and theories

MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

-

CHU TIEN DAT

CONSUMER BEHAVIORS AND THE MARKETING MIX OF MOBILE

ENTERPRISES IN VIETNAM

MAJOR: BUSINESS ADMINISTRATION (MARKETING)

CODE: 62.34.01.02

SUMMARY OF DISSERTATION

IN BUSINESS AND MANAGEMENT

HANOI, 2014

THIS DISSERTATION WAS ACCOMPLISHED AT THE NATIONAL

ECONOMICS UNIVERSITY

Supervisors:

1 Prof Dr Luong Xuan Quy

2 Assoc Prof Dr Luu Van Nghiem

Critic 1:

Critic 2:

Critic 3:

This dissertation shall be defended before the State-level Dissertation Assessment

Council convening at the National Economics University, Hanoi,

at …, on … 2014

This dissertation can be found at:

1 The National Library

2 The National Economics University Library

CHAPTER 1: INTRODUCTION 1.1 The urgency of the dissertation

1.1.1 In theory

There have been many studies on consumer behaviors in the field of mobile

telecommunications throughout the world However, most of these studies have addressed

only one aspect of consumer behaviors, examining the impact of the external or internal

factors of the consumer’s “black box” or technology on consumer behaviors Almost none

of them have provided an overall examination of external and internal factors that may have

effects on behaviors consumers

In Vietnam, there have not been many studies on mobile services, especially on

consumer behaviors towards these services There are two reasons for this shortage On the

one hand, not many enterprises have been licensed to trade in these services On the other

hand, due to the recent slow-growth market, the mobile enterprises have started to develop

intensively, retaining customers and paying more attention to them, instead of developing

extensively with the focus on increasing subscribers

1.1.2 In practice

1.1.2.1 Mobile enterprises are recommended to start with a good understanding of

customers to have appropriate strategies for a reasonable distribution of their limited

resources to both marketing and technology developing activities

Mobile telecommunications is a service industry that is greatly affected by technology

If mobile enterprises pay too much attention to marketing and sales activities without

developing technology, they will unavoidably fail On the contrary, if they only focus on

developing technology without any care about customers’ needs, they are more likely to

end with failures In the present-day competitive environment, enterprises should have a

thorough grasp of consumers’ needs, intentions, behaviors, and attitudes in order to build

appropriate strategies with limited resources

1.1.2.2 The Vietnamese mobile market has nearly reached a saturation point in terms of

subscribers in the transitional period from extensive development to intensive development

The slow-growth market and low ARPU, which is only one-fourth of the regional

ARPU, require that the enterprises should shift the focus of competition, paying more

attention to customers It is because paying attention to customers and retaining them are

the best choice when it is difficult to gain new customers Paying attention to customers is

also the most feasible way to increase the ARPU In general, the enterprises should have

appropriate strategies to best satisfy their customers’ needs, retain their customers, and

increase their ARPU

1.2 The context of the Vietnamese mobile market

The market growth has gradually slowed down for the last few years

Despite the appearance of new services such as value-added services, the ARPU has continued to decrease The present ARPU is 4.5 US dollars per subscriber This is partly due to discounts and other promotion programs

There has not much change in the market share The three largest market share holders are Viettel, Vinaphone, and Mobifone

As the result of slow-growth market and low ARPU, the big service providers in Vietnam have focused on safeguarding the market, furthering the intensive development via the promotion of value-added services, continuously paying attention to pre-paid customers, and focusing more on post-paid ones Enterprises with much potential are looking towards the overseas market

1.3 Research purposes and tasks

1.3.1 Research purposes

On the one hand, the research investigates the consumer behavior model, and the external and internal factors of the consumer’s “black box” that have impacts on the consumer’s behavioral intentions towards mobile services On the other hand, based on the results of the investigation of the Vietnamese consumer behaviors, the research provides an analysis of the orientation of the marketing mix employed by the Vietnamese mobile enterprises over the past time and proposes a new orientation to these enterprises for the coming time

1.3.2 Research tasks

To achieve the afore-mentioned purposes, the research is supposed to fulfill the following tasks:

- Synthesize and systematize the concepts, contents, and theories on consumer behaviors, the marketing mix, and the role of the research on consumer behaviors in the building of the marketing mix;

- Examine and assess the fundamental models of theory and the research models of the preceding studies on mobile consumer behaviors; work out a research model involving both internal and external factors affecting mobile consumers in Vietnam, based on the analysis of the preceding studies and the real situation of the Vietnamese mobile market;

- Investigate, study, and analyze consumer behaviors, as well as the internal and external factors’ levels of impact on Vietnamese mobile service consumers;

- Synthesize and analyze the marketing mix employed by the Vietnamese mobile enterprises in the past five years; investigate how these enterprises distribute their resources to each marketing mix tool, corresponding to the external factors in the afore-mentioned research model;

- Propose an orientation for strategies and solutions on marketing mix to mobile enterprises, based on the results of practical analysis and those of the research on behaviors and factors affecting the Vietnamese consumer behaviors

1.4 Subjects, objects, and scope of research

1.4.1 Subjects and objects of research

The subjects of research include the behaviors of Vietnamese mobile consumers and the

marketing mix of Vietnamese mobile enterprises

The objects of research include mobile service consumers in Vietnam and mobile

enterprises which have operated in Vietnam since 2008 (including Mobifone, Vinaphone,

Viettel, EVNTelecom, Vietnammobile, Sphone, and Gmobile)

Specifically, the research addresses the following issues:

• The real situation of the Vietnamese mobile market;

• Theoretical background on consumer behaviors, the marketing mix, and the building

of the marketing mix based on the research on consumer behaviors;

• The external and internal factors affecting the behaviors of Vietnamese mobile

service consumers;

• The real situation of the marketing mix, and the strengths and weaknesses of the

marketing mix used by the Vietnamese mobile enterprises

1.4.2 Scope of research

The research is restricted to: (1) mobile service customers in Vietnam and (2) mobile

enterprises in Vietnam (7 enterprises)

The research focuses on the following contents: (1) factors affecting the customer’s

behavioral intentions and their levels of impact, including the specific characteristics—

internal factors of the consumer’s “black box” and external factors related to the marketing

mix such as corporate image, perceived service quality, perceived price, perceived

promotion, and perceived switching cost; (2) the marketing mix employed by the

Vietnamese mobile enterprises, the real situation, and some suggestions

Research schedule: The theoretical study, the analysis of statistical reports, and the

investigation of reality were conducted in five years, from 2008 to 2013 Sociological

survey activities were carried out within two months, starting in May 2013, to ensure the

topicality of the research

1.5 Research methodology

The dissertation uses a combination of different methods for analysis, comparison,

synthesis, statisticalization, description, evaluation, and investigation, with the employment

of different tools such as questionnaires Specifically, the dissertation uses three main

methods: (1) analyzing and synthesizing secondary data, (2) interviewing specialists, and

(3) conducting sociological surveys

1.6 Contributions of the dissertation

1.6.1 Theoretical contributions

1 The dissertation provides an overall review of external and internal factors affecting behavioral intentions, as well as consumer behaviors in relation to the marketing mix

2 The dissertation investigates the switching cost’s impact on consumer behaviors

3 The internal factors, or characteristics, of the consumer’s “black box” are used not only

as independent variables to study their effects on consumer behaviors, but also as controlled variables to examine the impacts of external factors on consumer behaviors with corresponding characteristics

4 With regard to the quality, this dissertation presents a clear delineation and separation between the basic service quality and the value-added service quality Regarding the switching cost, this dissertation draws a distinction between its two component factors: the switching cost and difficulties due to consumers’ fear of changing their mobile numbers when switching mobile service providers

5 Results of analyzing the collected data show some new points in the Vietnamese consumer behaviors towards mobile services as follows:

• In terms of internal factors or characteristics, Vietnamese consumers can be classified into four groups corresponding to four basic characteristics, including: 1 Novelty-fashion consciousness; 2 Quality consciousness; 3 Use-value consciousness based on the balance between benefits and costs; 4 Habitual shopping Among them, the characteristics 1, 3, and 4 have direct effects on consumer behaviors

• In terms of external factors, such factors as corporate image, after-sales—customer care services, basic service quality, switching cost, service price, and value-added service quality have effects on consumer behaviors

1.6.2 Practical contributions—new proposals of the dissertation

1 The dissertation defines the customer’s future behaviors (behavioral intentions) towards mobile services, as well as external, internal and demographic factors and their levels of impact on the consumer’s behavioral intentions

2 The dissertation suggests the Vietnamese mobile enterprises change the orientation of their marketing mix, from distributing resources according to the priority: promotion, discount, quality, corporate image, and after-sales—customer care services services, to distributing resources according to the priority: corporate image, after-sales—customer care services, basic service quality, service cost, and value-added service quality The tool of promotion should be used reasonably by enterprises

3 It is suggested that Vietnamese mobile enterprises should segment the market according

to the four internal factors (characteristics) of the consumer, each with a corresponding marketing mix in conformity with consumer behaviors

4 The fear of changing mobile phone numbers when switching service providers has a

direct impact on the consumer’s behavioral intentions To guarantee the consumer’s

interests and improve the mobile enterprise’s competitive ability, it is reasonable for the

State management bodies to apply the MNP policy that has been implemented in over

70 countries in the world

1.7 Structure of the dissertation

Apart from tables, diagrams, figures, abbreviations, references, and appendices, the

main contents of the dissertation are divided into five chapters as follows:

- Chapter 1: Introduction

- Chapter 2: Literature review

- Chapter 3: Research methodology

- Chapter 4: Research results

- Chapter 5: Proposal of marketing strategies

CHAPTER 2: LITERATURE REVIEW 2.1 Overview of mobile services-networks

2.1.1 Mobile services

Mobile services are two-way radio information services that allow their subscribers to

use different forms of telephone and non-telephone services within the coverage of service

providers

Mobile services are always associated with mobile networks This is true to this

dissertation

2.1.2 Technical characteristics of the mobile network in relation to marketing mix

- The element P on process does not play a big role in the provision of services because

this process is standardized

- The element P on people has a minor part in the provision of services since people are

not directly involved in the provision of services

- Regarding the element P on services, the service quality and the service quality gap

between network operators are mainly reflected in their investment in the audio section

- Technology affects all the Ps of the marketing mix However, its effects are found

mainly on the two Ps: services and service prices Changes in technology not only bring

about further improvements in service quality and strong decreases in service prices, but

also sometimes lead to basic changes in the nature of services

2.2 Consumer behaviors and the building of the marketing mix based on consumer

behaviors

2.2.1 Consumer behaviors

Consumer behaviors, as defined by Philip Kotler (1999), are specific behaviors that a consumer displays in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs

Figure 2.3 Kotler’s model of consumer behaviors (2004)

According to Kotler (2004), the stimuli, after entering the customer’s “black box,” will cause customer responses These responses include: choosing goods-services, choosing a brand, choosing an enterprise, and choosing the purchase amount

2.2.2 Marketing mix

The traditional marketing mix for goods includes four so-called Ps: product, price, place and promotion According to Luu Van Nghiem (2008), the marketing mix for services, with

their own characteristics, includes seven Ps Besides the four Ps of the traditional marketing

mix, these seven Ps also include people, process, and provision of customer services

According to Truong Dinh Chien (2012), in order to satisfy the customer’s needs and thereby maximize the enterprise’s profits, the enterprises should develop effective marketing mix strategies with major groups of measures including decisions on services (products), decisions on price, decisions on the provision of customer services, and decisions on marketing These four groups of decisions are called 4 Ps for short

2.2.3 The building of the orientation of marketing mix based on the research on consumer behaviors

According to Vu Huy Thong (2010), consumer behaviors have a significant impact on marketing strategies, including the marketing mix On the one hand, on an overall scale, the knowledge of consumer behaviors is considered as the starting point for the proposal of marketing strategies and tactics, including those for marketing mix On the other hand, the knowledge of consumers helps enterprises find answers to the basic questions when forming marketing strategies for each specific market, and enables them to provide products and services to satisfy the customer’s specific needs

2.3 Overview of research on the behaviors of mobile service consumers

2.3.1 Research in Vietnam

In Vietnam, there have been few intensive studies on consumer behaviors in the field of mobile services, especially those in association with marketing mix

The preceding studies on marketing in the field of mobile services have mainly focused

on researching an aspect of mobile services (such as telephones), or examining consumer

Marketing and Other Stimuli

Customer’s

“Black Box”

Customer Responses

satisfaction or loyalty to mobile services Regarding studies on consumer behaviors in other

fields, many of them have clear theoretical foundations However, due to the big differences

in studied services, they are used in this dissertation as references only In general, most of

these studies have not shown an overall examination of internal and external factors that

have effects on consumer behaviors

2.3.2 Research in the world

2.3.2.1 Theoretical model of consumer behaviors

According Philip Kotler (2004), the stimuli (or affecters) affect the consumer’s “black

box” and cause certain responses—consumer behaviors

Marketing

stimuli

Environmental stimuli

responses

- Products/

services

- Price

- Provision

- Promotion

- Economic

- Scientific- technical

- Political/legal

- Competitive

Consumer’s characteristics

Decision-making process

-Selecting products/services

- Selecting a brand

- Selecting a provider

- Selecting the purchase amount

- Selecting the time and place of purchase This overall model shows that there are two approaches to the research on consumer

behaviors: research on the impacts of the internal factors of the consumer’s “black box” on

consumer behaviors and research on the impacts of external marketing stimuli

2.3.2.2 Research on consumer behaviors based on the consumer’s “black box”

It is very complicated and costly to study all the factors that affect the afore-mentioned

“black box.” Therefore, instead of studying the internal factors of the “black box”,

researchers have focused on investigating the possible output of the “black box.” The CSI

was first developed by Sproles and Kendall (1986 & 1987) for this purpose, and has been

applied and adjusted by many researchers Accordingly, there are seven consumer

decision-making styles as follows: perfectionism/high quality consciousness, brand consciousness,

fashion-technology consciousness, factor balance and synthesis consciousness, price

consciousness, confusion by over choice, and brand loyalty

This approach has been used by researchers to examine consumer behaviors in different

countries For example, it was used by Durvasula (1996) and Fan and Xiao (1998 & 2001)

for their research in China, Mitchell and Bates (1998) in Britain, Wang (2004) and Song

(2011) in China, and Hunjra (2012) in India

2.3.2.3 Research on consumer behaviors according to the Euro-American school

The European-American school examines the relation between external affecters, such

as perceived quality and satisfaction, on service purchase behaviors

This approach has several limitations First, it has just examined the external affecters and has not studied thoroughly the internal factors of the “black box.” Second, regarding the external affecters, it has just focused on studying perceived quality and has not addressed the others such as price and corporate image Last, with regard to the switching cost, it has just examined the opponent’s attraction in terms of price

2.3.2.4 Research on consumer behaviors according to the Asian school

In comparison with studies in the Euro-American school, the recent studies at some Asian markets have been conducted in the approach of adding the concept of “provider switching cost.” This concept refers to the following situation: when a customer is not satisfied with the services he is being offered and wishes to change to other services, he will have to bear many costs (including financial, psychological, and social costs) and other risks

2.3.2.5 Some other consumer behavior research models

Many studies have been conducted in the direction of considering mobile services as high-tech services and investigating how consumers respond to these services These studies are based on the following theories and models:

- Theory of Reasoned Action (TRA): behavioral intentions are influenced by individual attitudes and subjective norms;

- Theory of Planned Behavior (TPB): originating from the limits of behaviors under little human control;

- Technology Acceptance Model (TAM): featuring the causal relationship between consumer attitudes, behavioral intentions, and behaviors in reality;

- Unified Theory of Acceptance and Use of Technology (UTAUT), featuring the impacts

of four main factors on behavioral intentions and behaviors, namely expected efficiency, expected effort, social influence, and material conditions;

- The combination of TAM and TPB

2.4 Proposed research model

This dissertation aims at an overall investigation of consumer behaviors towards mobile services, as well as a comprehensive examination of the external factors of the marketing mix, the internal factors of the consumer’s “black box”, and the impacts of these factors on the consumer’s planned behaviors—behavioral intentions To reach this goal, the researcher has proposed a working research model for this dissertation

This research model focuses on behavioral intentions and factors affecting behavioral intentions for the analyses of and recommendations on marketing mix to mobile enterprises According to TRA, TPB, TAM, and UTAUT, the behavioral intention is the only factor that has a direct impact on the consumer behavior in reality As a result, many studies that apply these models and theories have focused on examining behavioral intentions, instead of

consumer behaviors Besides, with reference to the reality of production and business, and

the relationship between customer behaviors and corporate strategies, the grasp of customer

intentions and needs plays a more important role than the grasp of customer behaviors in

the building of appropriate corporate strategies Technically, a behavioral intention is an

individual’s tendency leading to a specific practical behavior It is the major determinant of

a practical behavior that is about to occur Therefore, in many cases, it is more important to

investigate behavioral intentions, or possible behaviors, than behaviors (actions that have

happened or are going on) This is especially true to predictive studies or studies that aim to

find out solutions to a problem (according to Ajzen, 1985; Ajzen & Fishbein, 1980; Yi,

Jackson, Park, & Probst, 2006, cited in Kuo, 2008)

2.5 Research hypotheses

H1: The external marketing mix factors have positive impacts on the behavioral

intentions of mobile service consumers in Vietnam

H2: The external marketing mix factors have different levels of impact on the behavioral

intentions of mobile service consumers in Vietnam

H3: The internal factors of the consumer’s “black box” (consumer characteristics) have

impact on the behavioral intentions of mobile service consumers in Vietnam

H4: The internal factors (corresponding to consumer decision-making styles or

consumer characteristics) have different levels of impact on the behavioral intentions of

mobile service consumers in Vietnam

H5: The external factors (corresponding to each group of customers with its own

decision-making style or characteristic) have different levels of impact on the behavioral

intentions of mobile service consumers in Vietnam

H6: The demographic factors create differences in the behavioral intentions of mobile

service consumers in Vietnam

Demographicfactors Perceived quality

Perceived promotion

Perceived price

Corporate image

Consumer decision-making style

Behavioral intention

Switching cost

Type 1 Type 2 Type 3 Type 4 Type 5 Type 6 Type 7

CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research process

The research process involves the following steps: (1) Study theoretical background; (2) Build the theoretical framework, research model, and hypotheses; (3) Consult specialists (intensive interview); (4) Create a pilot questionnaire and conduct a pilot investigation; (5) Develop official measurement scales and build the official questionnaire; (6) Carry out a sociological survey with the questionnaire; (7) Run Cronbach’s alpha tests and conduct exploratory factor and linear regression analyses; (8) Analyze the situation of the orientation of the marketing mix employed by the mobile service enterprises in Vietnam in the period of 2008–2013 by analyzing and synthesizing secondary data; (9) Make recommendations on the orientation of marketing mix

3.2 Data collection methods

Secondary data is collected from reports by the Vietnam Ministry of Information and Communications, reports on market analysis by foreign organizations such as BMI, reports

by enterprises, and preceding studies

Primary data is collected via questionnaires, which are administered to randomly selected households in five cities and provinces of Vietnam Electricity bill collectors in Hanoi, Ho Chi Minh City, Hue, Ninh Binh, and Binh Duong are involved in this research as investigators They are given instructions on how to assist informants in filling the questionnaire

3.3 Intensive interview—qualitative research

The intensive interview is designed to (1) test and filter the research model and the factors affecting consumer behaviors in this research model and (2) analyze the situation of the orientation of the marketing mix employed by the Vietnamese mobile service enterprises in the period of 2008–2013

The participants in this intensive interview are divided into three main groups: (1) specialists in the fields of marketing and marketing research, (2) State administrators in the field of telecommunications, and (3) mobile enterprise administrators

3.4 Quantitative research

3.4.1 Research design

Stage 1: Test the research model and questionnaire with the intensive interview

Stage 2: Conduct the pilot investigation

Stage 3: Conduct the official investigation This dissertation uses the sociological survey and quantitative research methods with the research tool of questionnaire and the sample size of 860 participants

3.4.2 Questionnaire design

To investigate the Vietnamese consumer decision-making styles, this dissertation uses

the shortened version of CSI with 16 five-level Likert items that are developed by

researchers Sproles and Kendall (1986 & 1987)

Other scales are also used for other factors They include Konuk (2012)’s scale for the

behavioral intention with 4 items; Kim, Park, and Jeong (2004)’s scale for the switching

cost with 5 items; Kim et al (2004)’s scale for the perceived service quality with 8 items;

Tung (2011)’s scale for the perceived promotion with 3 items; Nguyen and Lebland

(1998)’s scale for the corporate image with 4 items; and Koi-Akrofi (2013)’s scale with 4

items

3.4.3 Sampling

The research subjects are customers using mobile services throughout Vietnam

Regarding the sample size, according to Hoang Trong and Chu Nguyen Mong Ngoc, the

number of research participants (sample size) should be at least four or five times bigger

than that of research variables The questionnaire includes 50 variables, so the minimum

sample size for this research according to this formula should be 250 However, the

research uses stratified random sampling, so if the sample size is too small, the collected

information will not be enough for analysis Moreover, the bigger the sample size is, the

more reliable the research results are Therefore, the research is administered to a sample

size of 860 to increase the validity and reliability of the research results

3.4.4 Sampling method

The research uses convenience sampling in combination with stratified sampling, so that

the selected samples are representatives of mobile service users both in urban and rural

areas, big and small cities and provinces

Accordingly, via the Electricity and Telecommunications Payment Solutions Joint Stock

Company, the member companies and collection agencies of the Vietnam Electricity Group

(EVN), and the provincial branches of the Vietnam Posts and Telecommunications Group

(VNPT), the researcher contacts the collection sections of VNPT in five big cities and

provinces (Hanoi, Hue, Ho Chi Minh City, Ninh Binh, and Binh Duong) and administers

the investigation to 860 households in these places

3.4.5 Data processing method

This dissertation uses the SPSS 16.0 version for the analysis of collected data

3.5 Secondary data analyzing and synthesizing method

This method is used in the stage of studying theoretical background and designing the

research model via the analysis and synthesis of information collected from preceding

studies

More importantly, the secondary data analyzing and synthesizing method is used in

combination with intensive interview to analyze the real situation of the mobile market in

Vietnam

CHAPTER 4: RESEARCH RESULTS

A RESULTS OF THE ANALYSIS OF CONSUMER BEHAVIORS 4.1 Survey data analysis

Of 860 collected responses, 711 are valid for statistical analysis

4.1.1 The sample’s demographic features and use of mobile services in reality

It is shown by the results of statistical analysis that there is no noticeable difference between the sample and the general research subjects in terms of demographic features and the actual use of mobile services

In terms of purposes and motives, the majority of respondents use mobile services for basic needs such as making and receiving calls and sending text messages Besides these basic services, others such as accessing the Internet and joining online communities are attracting more and more users

4.1.2 Consumer behavioral intentions towards mobile services

With regard to the behavior of changing service providers, only 5.3% of respondents will probably change their main service providers (the first SIM card in case of two SIM cards in use) in the next twelve months Among this group, 0.8% will definitely make the change On the contrary, up to 78.4% of respondents will not change service providers in the same period of time About 20.3% of this group will surely make no change

With regard to the behavior of recommending the services they are using to their friends and relatives, 48.3% of respondents will do while only 12.7% will not

With regard to the behavior of speaking well of their service providers, 45.4% of respondents agree while only 8.5% disagree

4.1.3 Analysis of research model based on collected data

4.1.3.1 Analysis of external factors affecting consumer behavioral intentions

After three times of analyzing factors and rejecting variables with unsuitable transmission coefficients, the researcher extracted seven significant factors from five original ones These factors are renamed herein as follows: (1) perceived switching cost, (2) perceived value-added service quality, (3) perceived corporate image, (4) perceived service price, (5) perceived basic service quality, (6) perceived promotion, and (7) perceived inconvenience when changing mobile numbers

These new factors also have valid Cronbach’s alpha coefficients

4.1.3.2 Analysis of internal factors (decision-making styles) affecting consumer behavioral intentions

It is shown by the results of three times of analyzing internal factors affecting consumer behavioral intentions towards mobile services that only four factors are extracted after rotating the original ones These factors are renamed herein as follows: (1) fashion-technology consciousness, (2) service quality consciousness, (3) service price consciousness, and (4) habitual shopping

These newly-extracted factors also have valid Cronbach’s alpha coefficients

4.1.3.3 Factor analysis of behavioral intentions

Results of factor analysis reveal that there is no change in the measurement scale for

behavioral intentions, so the only factor in the old scale can be reused

4.1.3.4 Modified research model according to actual survey

The initial research model was designed to examine the effects of five external factors

and seven internal factors of the consumer’s “black box” (equivalent to seven

decision-making styles) affecting consumer behaviors After conducting factor analysis and scale

testing, however, the researcher decided to increase external factors, from five to seven, and

decrease internal factors, from seven to four Here is the modified research model:

4.1.4 Linear regression analysis of the effects of external factors on consumer behavioral

intentions towards mobile services

As the result of two times of multiple linear regression analysis, factors affecting

behavioral intentions are presented in descending order of influence as follows: perceived

corporate image, perceived switching cost, basic service quality, perceived difficulties

arising due to the change of mobile numbers when switching network, perceived price, and

value-added service quality

YDHV = 0.362 + 0.148*CLCoBan + 0.091*CLPhu + 0.135*CPCM +

0.096*CPDoiSo + 0.113*GiaCN + 0.315*HADN

4.1.5 Linear regression analysis of internal factors of the consumer’s “black box” on

consumer behavioral intentions towards mobile services

Results of two times of linear regression analysis show that only three internal factors

(consumer decision-making styles) have direct impacts on consumer behavioral intentions

with the following regression equation:

Demographicfactors Corporate image

Basic service quality Perceived promotion Perceived price

Consumer decision-making style

Behavioral intention

Value-added service quality

Switching cost Switching barrier

YDHV = 1.391 + 0.13*KieuF1R + 0.208*Kieu3R + 0.261*KieuF4R

The three decision-making styles that have positive impacts on consumer behavioral intentions are listed in ascending order of impact as follows: fashion-technology consciousness (variable KieuF1R); service value consciousness based on the balance between benefits and costs (variable KieuF2R); and habitual shopping (variable KieuF4R)

4.1.6 Analysis of the effects of external marketing factors on the behavioral intentions of each consumer style

In order to categorize consumers, researcher Sproles and Kendall (1986 & 1987) developed the CSI instrument with the use of 16 five-level Likert items Accordingly, for each decision-making style, if a respondent has the mean value of his/her responses at 4 points and above then he/she will belong to that style

Table 4.38: Vietnamese consumer decision-making styles

Fashion-technology consciousness

Quality consciousness

Price-value consciousness

Habitual shopping

Results of linear regression analysis show reveal that the external factors have positive effects on consumer behavioral intentions These factors are listed in descending order of impact in the following table:

Order

of impact

Fashion-technology consciousness

Quality consciousness

Price-value consciousness

Habitual shopping

All consumers

1 Value-added service quality

Corporate image

Corporate image

Corporate image

Corporate

2 Promotion Switching cost Service price Switching cost Switching cost

3 Difficulties in

changing numbers when switching providers

Value-added service quality

Basic service quality

Basic service quality

Basic service quality

4 Provider image Service price Switching cost Value-added

service quality

Difficulties in changing numbers when switching providers

5 Basic service

quality

Difficulties in changing numbers when switching providers

Difficulties in changing numbers when switching providers

Service price

quality

Value -added service quality

4.1.7 Tests of differences between demographic groups in their behavioral intentions

towards mobile services

The t-test is used to test the differences between the two gender groups For other factors

with three sample groups and above such as age, income, and academic standard, the

ANOVA (analysis of variance) test is used

The test results show that there is no difference in behavioral intentions according to

gender, income, and academic standard

Pre-paid subscribers have more positive behavioral intentions than post-paid ones The

younger the subscribers are, the more positive their behaviors towards their service

providers are Subscribers in the retired/housewifely group have more negative behaviors

than those in other groups

1 The external marketing mix factors have positive impacts on the behavioral

intentions of mobile service consumers in Vietnam

Accepted

2 The external marketing mix factors have different levels of impact on the

behavioral intentions of mobile service consumers in Vietnam

Accepted

3 The internal factors of the consumer’s “black box” (consumer characteristics)

have impact on the behavioral intentions of mobile service consumers in

Vietnam

Accepted

4 The internal factors (corresponding to consumer decision-making styles or

consumer characteristics) have different levels of impact on the behavioral

intentions of mobile service consumers in Vietnam

Accepted

5 The external factors (corresponding to each group of customers with its own

decision-making style or characteristic) have different levels of impact on the

behavioral intentions of mobile service consumers in Vietnam

Accepted

6 The demographic factors create differences in the behavioral intentions of

mobile service consumers in Vietnam

Accepted

B RESULTS OF THE ANALYSIS AND SYNTHESIS OF DATA ON THE MARKETING

MIX OF THE VIETNAMESE MOBILE ENTERPRISES IN THE PERIOD OF 2008–2013

4.2 Analysis of the marketing mix of the Vietnamese mobile enterprises in the period

of 2008–2013

Regarding the business strategy, the Vietnamese mobile enterprises before 2012 mainly

focused on widening the market and increasing subscribers and disregarded the retaining of

subscribers

Regarding the marketing mix strategy, the Vietnamese mobile enterprises in the same period

simultaneously implemented the marketing mix tools, at appropriate points of time, to achieve

their business goals in general and their marketing goals in particular Different enterprises might

promote different Ps; however, on the whole, these enterprises distributed their resources to the Ps

in the descending order of priority as follows: promotion, price, service quality, image building— communications and popularization, the building and development of sales channels, and after-sales—customer care services

CHAPTER 5: PROPOSAL OF MARKETING STRATEGIES 5.1 About the orientation of marketing mix

5.1.1 The orientation of marketing mix in relation to the Vietnamese consumer behaviors

Long-term strategy for businesses: The Vietnamese mobile telecommunications

businesses should focus on intensive development instead of extensive development, improving their prestige, brands, sales, and profits through the enhancement of their customers’ satisfaction and loyalty

It is seen from preceding countries’ experience that, the cost for attaining a new customer is five times as much as that for retaining an old one, while revenue from the former is only one-third of that from the latter (Kim et al 2004; Kim, 2010) On the whole, there are two types of subscribers that mobile enterprises can develop: new subscribers (students) and subscribers from other mobile networks Both types have low ARPUs, and the costs for attaining them are high They are also subject to changing networks They are easily acquired, so they are easily lost Therefore, mobile enterprises should concentrate on long-term development, instead of new subscriber development

It is also advisable for mobile enterprises to enhance the development of value-added services, after-sales—customer care activities, and care to loyal subscribers (especially post-paid ones)

The orientation of marketing mix: Based on the reality of consumer behaviors and

factors affecting consumer behaviors, it can be said that the mobile enterprises’ marketing mix for resource allocation in such a descending order of priority (from promotion to price, quality, communications and popularization, network expansion, and customer care) at the present time is inappropriate

To match Vietnamese consumers’ behaviors and aspirations and thereby improve their production and business efficiency, the Vietnamese mobile enterprises should allocate their resources to the marketing factors in descending order of importance and impact as follows: corporate image (including communications and popularization, distribution channels, and service quality), after-sales—customer care services, basic service quality, service price, and value-added service quality Specifically, in terms of marketing mix, the Vietnamese mobile enterprises should:

- Change their focus from short-term and unsustainable development through discount and promotion to long-term and sustainable development via the building of their corporate image—a corporation or enterprise with high prestige, good brand name, high quality, professional staff, and regular presence in and contributions to the community;

- Continuously improve their quality in the direction of simultaneously expanding the

infrastructure network in different ways and developing value-added services, as well as

customer care and assistance services;

- Invest more in after-sales—customer care activities This factor has presently received

the least investment from mobile enterprises, though it is the third most important factor

affecting consumer behaviors Retaining customers not only contributes to improving

services and service quality, but also helps to reduce selling expenses and increase

profits;

- Limit price competition Price still has an effect on consumer behaviors, but its impact is

lower than the impact of other factors In the long run, price competition reduces

enterprises’ reinvestment capacity and service quality Instead of offering direct

discounts, the Vietnamese mobile enterprises should build different service packages

and prices for different types of customers;

- Have a reasonable plan for promotion True promotion, at least for the time being, has

little impact on consumer behaviors

5.1.2 Market segmentation and marketing mix for each market segment

Results of survey show that the Vietnamese consumers have four main characteristics

and thus can be divided into four groups as follows:

1 Fashion-technology consciousness;

2 Quality consciousness;

3 Service value consciousness based on the balance between benefits and costs;

4 Habitual shopping

5.1.2.1 Marketing mix for fashion-technology conscious customers

This group of customers has three following characteristics: (1) value brands and tend to

choose expensive and famous services, (2) follow technology, and (3) like changes

This group is mainly below 23 years old Most of them are students and office workers

with salaries ranging from VND 2–20 million Although they account for only 17% of all

mobile service consumers, they play an important role for mobile enterprises With regard

to marking mix, the Vietnamese mobile enterprises should allocate their resources to the

factors in the following order of priority: value-added service quality, promotion,

difficulties in changing mobile numbers when changing networks, corporate image, and

basic service quality

5.1.2.2 Marketing mix for perfectionist/quality conscious customers

According to the theory developed by researchers Sproles and Kendall, the

perfectionist/quality conscious customers tend to choose services with best quality, most

features, most value-added services, and best after-sales activities

These customers fall into different age groups with different occupations They are the

second biggest group, accounting for 57% of all mobile service consumers Their behaviors

are affected by extrinsic marketing factors in the descending order of impact as follows: corporate image, switching cost, value-added service quality, service price, difficulties in changing mobile numbers when changing networks, and basic service quality

5.1.2.3 Marketing mix for value conscious customers based on the balance between benefits and costs

Customers with high value consciousness tend to choose services with the highest use values They often select and compare options carefully to gain the best services based on two criteria: price and usefulness They select services for long-term use which suit their needs and financial capacities

They are the biggest group, accounting for 60% of all mobile service consumers Demographically, they mainly fall into the group of 23–35 years old They are either self-employed people or office workers with salaries ranging from VND 2–20 million

Seen from the angle of satisfying consumer needs and in relation to consumer behaviors, the Vietnamese mobile enterprises should have an appropriate marketing mix which focuses on the factors in the descending order of priority as follows: building corporate image, working out a reasonable price policy, and promoting basic service quality and care for loyal customers This group is also affected by difficulties in changing mobile numbers when switching networks

5.1.2.4 Marketing mix for habitual shoppers

According to Sproles and Kendall (1986), the habitual shoppers often repeatedly purchase products and services from their favorite brands or simply from the brands they are using In the selection phase, they often learn about and compare different services and service providers carefully Once they have made their choices, they will maintain the purchase of services from their chosen providers without changes

Habitual shoppers make up 48% of all mobile services consumers They fall equally into different age groups, occupations, and levels of income

Viewed from the angle of meeting consumer needs and in relation to consumer behaviors, the Vietnamese mobile enterprises should work out a sound marketing mix, giving priority to the factors in the following descending order: building corporate image and brand, enhancing care to loyal customers and after-sales activities, improving basic service quality, and raising the quantity and quality of value-added services

5.2 Some solutions for perfecting the marketing mix for the Vietnamese mobile enterprises

5.2.1 Diversifying and improving service quality

First of all, the Vietnamese mobile businesses should enhance the coverage area extension Based on the developed countries’ experience, they can consider the following measures: (1) Promote the socialization of investment; (2) Encourage their customers to take part in investment; (3) Share the infrastructure