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Luận văn thạc sĩ phân tích the effects of switching barrier on the customer retention a study of ceramic companies in vietnam, đánh giá thực trạng, chỉ ra hạn chế, đề xuất giải

Người đăng

Ẩn danh

Thể loại

Master’s Thesis

2012

84
1
0

Phí lưu trữ

30 Point

Mục lục chi tiết

ABSTRACT

ACKNOWLEGEMENTS

STUDENT DECLARATION

1. CHAPTER 1: INTRODUCTION

1.1. Rational of the study

1.2. The statement of the problem

1.3. Research objective

1.4. Research questions

1.5. Scope of the research

1.6. Research methodology

1.7. The structure of the research

2. CHAPTER 2: LITERATURE REVIEW

2.1. Ceramic tile

2.2. Vietnam ceramic companies

2.3. B2B customer

3. CHAPTER 3: RESEARCH DESIGN

4. CHAPTER 4: DATA ANALYSIS AND FINDINGS

5. CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

APPENDIX 2: Cronbach's alpha analysis result and Factor analysis result

Trích đoạn nội dung tài liệu

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS - HOCHIMINH CITY NGUYỄN THỊ MỸ TRANG THE EFFECTS OF SWITCHING BARRIER ON THE CUSTOMER RETENTION A STUDY OF CERAMIC COMPANIES IN VIETNAM MASTER’S THESIS MASTER IN BUSINESS ADMINISTRATION Ology Code: 60. TRẦN HÀ MINH QUÂN Ho Chi Minh City -2012 TIEU LUAN MOI download : skknchat@gmail.com ABSTRACT Many previous researches proved that retaining customers plays an important role for business in service sector and end-user or consumers are their oriented-object. However, there is a lack of research in the areas of evaluation of B2B customer retention in product sector in Vietnam. Therefore, the purpose of this study is to determine critical factors of switching barrier that potential influence on customer retention in business-to-business (B2B) sector in Vietnam ceramic companies. Based on previous studies on switching barrier, four major factors will be calculated as move-in cost, benefit/loss cost, interpersonal relationship and the attractiveness of alternatives. The overall purpose of this research is to develop a conceptual foundation of customer retention, with the use of the concepts of switching barrier and customer retention, and provide management significance of customer retention for marketers of Vietnam ceramic companies in developing strategies for retaining B2B customers. i TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEGEMENTS Although I have taken efforts in this research but it would not have been finished without the kind support and help of people. Therefore, I would like to extend my sincere thanks to all of them. First of all, I would like to express my sincere gratitude towards my direct supervisor PhD. Tran Ha Minh Quan for his great guidance, support and encouragement in completing the research. I am very thankful managers of My Duc Ceramics Limited Company for their share opinions, experiences and providing necessary information regarding to the research. I would like to express my special gratitude to my family and my friends for the love, support and encouragement during the whole process of my project which helps me in starting the first difficult step and completion of my thesis. Finally, my thanks and appreciations also go to my colleagues in developing the project and agents of MDC for their kind co-operation in answering the questionnaires. I also thank to person who willingly helped me out with their abilities. My heartfelt thanks to you all! Nguyen Thi My Trang Ho Chi Minh City, April 2012 ii TIEU LUAN MOI download : skknchat@gmail.com STUDENT DECLARATION I affirm that the research titled ―The effects of switching barrier on the customer retention – A study of ceramic companies in Vietnam‖ is my own work. The work is original except where indicated by special reference in the text. The research has been conducted in studying by the academic knowledge and with the assistant of my supervisor and MDC‘s managers. By this letter, I would like to undertake that it is my own research. All data, resources, references using in this research are clearly identify. iii TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENT ABSTRACT . ii STUDENT DECLARATION . iii TABLE OF CONTENT . iv LIST OF FIGURES . vi LIST OF TABLES .vii LIST OF ABBREVIATIONS .viii CHAPTER 1: INTRODUCTION.1 Rational of the study .2 The statement of the problem .5 Scope of the research .7 The structure of the research . 4 CHAPTER 2: LITERATURE REVIEW .4 The relationship between customer satisfaction and customer retention . Define of customer retention . Benefit of customer retention . Attractiveness of alternatives. The interpersonal relationship .6 Research model and hypothesis . Proposal of research model. 21 CHAPTER 3: RESEARCH DESIGN . 23 iv TIEU LUAN MOI download : skknchat@gmail. The questionnaire design . Research sample and sampling . Data collection methods . 28 CHAPTER 4: DATA ANALYSIS AND FINDINGS .1 Characteristics of the samples . Variables for measuring switching barrier . Variables for customer retention . Reliability evaluation through Cronbach‘s Alpha . Evaluation the measurement scale by using Exploratory Factor Analysis . Some rules in EFA test . EFA for switching barrier . EFA for customer retention . The adjusted research model . Correlation coefficient analysis . 44 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS . Benefit/loss cost. Move-in cost . 60 APPENDIX 2: Cronbach's alpha analysis result and Factor analysis result. 64 v TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 2.1: Kim et al.1: The suggested research model . 42 vi TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 2.1: Define of switching barrier variables .1 :Summary of retention factors and measurement scale .1: Descriptive statistics of switching barrier measurement .2: Descriptive statistics of customer retention measurement .3: Reliability test of switching barrier and customer retention .4: Final Reliability test of switching barrier and customer retention .5: Rotated Component Matrixa .6: Rotated Component Matrixa .7: KMO and Bartlett‘s Test .8: Total Variance Explained .9: Final EFA analysis result of customer retention .10: Pearson correlation matrix . 45 vii TIEU LUAN MOI download : skknchat@gmail.com LIST OF ABBREVIATIONS B2B: Business to Business B2C: Business to Consumer DONG TAM: Dong Tam Group EFA: Exploratory Factor Analysis MDC: My Duc Ceramics Limited Company VND: Vietnam Dong WHITE HORSE: White Horse Ceramics Company viii TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: INTRODUCTION 1.1 Rational of the study Infrastructure construction is one of top interests in Vietnam as well as other countries in the world. Moreover, with high growing rate of urbanization and increasing demand for housing of middle class in society pushing up the construction of public works and high-floor projects by Government and investors. Based on that, the building material industry in Vietnam get opportunity to develop and ceramic industry is not an exception with the quite stable growth in the last ten years. According to Vietnam building ceramic association, the building material market has grown by 10%/year in the last 2000-2005 period and 20%/year in 2 years after. Therefore, Vietnam ceramic tile is an attractive market drawing investors in both domestic and overseas as its potential profits and has had the participation of 20 companies up to now. In order to compete and grow in this competitive markets, each ceramic company must strongly focus on retaining existing customer, special for business customers who tend to be fewer in a number and each is more valuable, and gaining new ones as the more customers company has, the more profits it get. Business is in a constant race to increase profits. Therefore, ceramic companies should invest on retaining customers, especial for difficult times. But striving to maintain unprofitable customers is not a good business strategy. Companies should identify 20% of potential customers who bring 80% of profits to business. In ceramics industry, agents are company representatives who create 80% of revenues to companies. So we need a research to find the critical factors adjusting to their retaining. Its aims to help organizations build effective customer retention strategy in a way that both firms and the customer get the most out of exchange, providing both parties with long term benefits.2 The statement of the problem Many previous studies have identified the benefits of retention to an organization (Colgate et al., 2007; Reichheld and Sasser, 1990) but relatively little research on B2B customer retention. And although many companies have realized the economical advantage of keeping existing customers against acquiring new ones, almost ceramic 1 TIEU LUAN MOI download : skknchat@gmail.com companies still focus on developing new customers rather than maintaining old customers and invest on customer satisfaction more than retaining customers. Their own decisions base on the traditional information about the profit and customer satisfaction. Firstly, organizations except that expanding the market or developing new customers is the best way maximize profits. However, it is the fact that acquiring new customers is more expensive than keeping existing customers. According to Reichheld and Sasser (1990), a 5% improvement in customer retention can cause an increasing in profitability between 25% and 85% (in terms of net present value) depending upon the industry. With long term relationship, customers tend to be less inclined to switch, less price sensitive, less expensive to service and may initiate free word of mouth promotions and referrals. So that saving cost and getting more profit can be reach by maintaining customers. It is the reason that many firms focus on customer retention which is aimed at building strong long term relationships that keep customers coming back repeatedly. Secondly, in traditional understanding, customer satisfaction is often seen as the key to a company‘s success and long-term competitiveness because it could lead customers to repurchase and keep stay with current providers. Hence, it is often viewed as a central determinant of marketing by almost firms. But even if customers have high satisfaction, they could change to other suppliers. Moreover, according to John Wiley & Sons, Inc (1997), if direct relationship of customer satisfaction, customer relationship management and customer loyalty is weak or even nonexistent, switching barrier is a factor affecting to customer‘s decision to stay or not with the current providers. It plays a role of adjustment variable in the interrelationship between customer satisfaction and customer retention (Lee & Cunningham, 2001; Colgate & Lang, 2001; Jones et al, 2000; Kim et al, 2004) (Trung voi doan Literature review ne). From that, the firms should note that customer retention must be more invested in the future. The competition is hard in today‘s ceramic business and the building material market is quite because of economic crisis. To survive in this environment, firms should improve their ability to be dynamic and be different from the competition. 2 TIEU LUAN MOI download : skknchat@gmail.com Customer retention helps organizations to keep the existing customers to continue purchasing with current providers. And even dissatisfied customers can be retained through switching barrier which is one of factor effecting on customer retention. Although company seems to be doing well at the time, but systematically upgrading the customer retention strategy could further enhance the company‘s competitive abilities. Therefore, this study emphasizes on factors impact on switching barriers of agents in ceramic companies in Vietnam. The purpose of this thesis is to provide a better understanding of customer retention concept in B2B sector to ceramic industry. And it can offer some ideas to improve company-customer relations and adjust the presented condition of companies.3 Research objective The purpose of this research as following: - To identify significant factors of switching barrier effect on customer retention in Ceramic Companies in Vietnam - To measure the effect of these key factors related with customer retention in Vietnam ceramic companies.4 Research questions - What are the main determinant factors impacting on B2B customer retention? - How can these factors influence on customer retention by the view of agents in Ceramic Companies in Vietnam? 1.5 Scope of the research Due to the limited time, the research is conducted to the agents (B2B customers) of My Duc ceramic company who are also sales representative of Dong Tam Group (Dong Tam) and White Horse Ceramic Company (White Horse) and other ceramic companies in Vietnam. The conclusions will be derived from this research are limited to big companies such as My Duc Ceramic company, Dong Tam and White Horse and will be based on the information of this result. 3 TIEU LUAN MOI download : skknchat@gmail.6 Research methodology This research is conducted by using qualitative approach through interviewing experienced experts and quantitative method. The data collected from the survey was primarily obtained through structured interview. The questionnaires are delivered to agents of MDC in three main markets in Vietnam directly. Qualitative research: This step is researching by in-depth interviews with manager of My Duc ceramics Company (International Sales Manager, Local Sales Manager and Service Team Manager) in order to discover and adjust the customer retention dimensions. The result of this research is used for designing the questionnaire used for official study. Quantitative research: this research is researching by delivering questionnaires to agents of MDC in Hanoi City, Danang City and Ho Chi Minh City directly.0 will be used for analyzing the collected data.

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