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  • CUSTOMER RETENTION: INVESTIGATING

    THE DIMENSIONS IN TELECOMMUNICATION

    INDUSTRY

    Gui lin Kiant

    BE Corponte Master in 7611

    Business Administration G943 20132013

  • Pusat Khidmat Maklumat Akademilt'

    UNIVERSm MALAYSIA SARAWAK

    P.KHIOMAT MAKLUMAT AKAOEMIK

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    1000246902

    CUSTOMER RETENTION: INVESTIGATING THE DIMENSIONS IN

    TELECOMMUNICATION INDUSTRY

    GUI JIN KIANT

    This project is submitted in partial fulfilment of the requirements for the

    Corporate Master in Business Administration

    Faculty ofEconomics and Business

    UNIVERSITI MALAYSIA SARA W AK

    2013

  • ABSTRACT

    CUSTOMER RETENTION: INVESTIGATING THE DIMENSIONS IN

    TELECOMMUNICATION INDUSTRY

    (:his paper aims to investigate the relationship between factors affecting

    customer retention in the telecommunication industry. Customer satisfaction, customer

    trust and service quality are three identified factors affecting customer retention in the

    industrj Convenience sampling technique used to collect the

    the sample with 170 questionnaires was distributed to the target

    respondents. Pearson Coefficient Correlation and regression analysis utilized in order to

    determine the relationship of the variables and the data analyzed using a computer

    software package -Statistical Package for Social Science (18.0). The finding confirmed

    that the three factors have positive and significant relationship with customer retention.

    From the finding also postulated that most significant variable that influences the

    variance in customer retention is service quality.

    telecommunication

    information from

  • ABSTRAK

    PENGEKALAN PELANGGAN: KAJIAN DALAM DlMENSI INDUSTRI

    TELEKOMUNlKASI

    Kajian ini bertujuan untuk menyiasat hubungan di antara faktor-faktor

    mempengaruhi pengekalan pelanggan dalam industri telekomunikasi. Kepuasan

    pelanggan, kepercayaan pelanggan dan kualiti perkhimatan diantara faktor-faktor yang

    dikenalpasti mempengaruhi pengekalan pelanggan dalam industri telekomunikasi.

    Teknik mudah persampelan digunakan untuk mengumpul maklumat daripada sampeJ

    dengan 170 soal selidik telah diedarkan kepada responden. Pearson Coefficient

    Correlation dan regression analisis digunakan untuk menentukan hubungan diantara

    pembolehubah dan data dianalisis menggunakan pakej peri sian computer -Statistical

    Package for Social Science (18.0). Daripada analisis ini terbukti ketiga-tiga faktor

    tersebut mempunyai positif dan kepentingan hubungan terhadap pengekalan peJanggan.

    Juga daripada kajian ini menunjukkan pembolehubah yang paling penting yang

    mempengaruhi pengekalan pelanggan adalah kualiti perkhidmatan.

  • ACKNOWLEDGMENT

    First, I would like to thank you to my supervisor, with his guidance and support I

    can successfully complete this study.

    Besides, a million thank I dedicated to all my friends and course mates, who

    provide me the morale support, encouragement, guidance and assistance in

    accomplishment of this study.

    I also would like to thank to my family members with all their love and heartfelt

    support in carry out this study.

    lowe special thanks to all the respondents that gives co-operation in

    participating in this survey. Without their co-operation this study cannot be done.

  • pusat Khidmat Maklumat Akademik UNIVERSffi MALAYSIA SARAWAJ{

    Contents

    Chapter I: Introduction ...................................................................................................... I

    1.1 Background of Study .............................................................................................. I

    1.1.1 The Malaysia Scenario ............................................................................................ 4

    1.2 Problem Statement .................................................................................................. 6

    1.3 Research Objective ....... .......................................................................................... 8

    1.4 Definition of Key Terms ......................................................................................... 8

    1.5 Significant of Study ............................................................................................. ...9

    1.6 Scope of Study and Organization of Study ............................................................. 9

    Chapter 2: Literature Review ........................................................................................... 11

    2.1 Introduction ........................................................................................................... II

    2.2 Definition of Model .............................................................................................. II

    2.3 Underlying Theory ................................................................................................ 12

    2.4 Definition of Variables ......................................................................................... 14

    2.4.1 Customer Satisfaction ........................................................................................... 14

    2.4.2 Customer Trust ...................................................................................................... 15

    2.4.3 Service Quality ...................................................................................................... 17

    2.5 Conceptual Framework ......................................................................................... 18

    2.6 Gap in Literature ................................................................................................... 18

    2.7 Development of Hypothesis .................................................................................. 19

    Chapter 3: Research Methodology ........................................... ........................................ 21

    3.1 Introduction ........................................................................................................... 21

    3.2 Research Design .................................................................................................... 21

    3.2.1 Population and Sampling ...................................................................................... 22

    3.3 Data Collection Procedure .......... .......................................................................... 24

    3.4 Statistical Analysis ................................................................................................ 24

    3.5 Research Questionnaire ......................................................................................... 27

    Chapter 4: Research Findings .......................................................................................... 29

    4.1 Introduction .................................................................... .-...................................... 29

    4.2 Distribution of Questionnaire ............................................................................... 29

  • 4.3 Reliability Test ...................................................................................................... 30

    4.4 Respondents Demographic ................................................................................... 30

    4.5 Pearson Correlation Coefficient Test and Regression Analysis ...................... ..... 41

    Chapter 5: Conclusion and Recommendation .................................................................. 48

    5.1 Introduction ........................................................................................................... 48

    5.2 Discussions on Hypothesis ................................................................................... 48

    5.3 Limitations of Study ............................................................................................. 53

    5.4 Recommendation .................................................................................................. 54

    5.5 Conclusion ......................... ..... .......................................................................... .... 56

    5.6 Manageriallmplication ......................................................................................... 57

    5.7 Future Research .................................................................................................... 58

    REFERENCES ................................................................................................................ 59

    BIBLIOGRAPHY ............................................................................................................ 66

    II

  • LIST OF TABLES

    Table I: Interpretation of the Correlation Coefficient, r .................................................. 26 Table 2: Reliability Statistic for Actual Test ................................................................... 30 Table 3: Frequency for Respondents' Demographic Profile ........................................... 31 Table 4: Frequency for Respondents' Demographic Profile (Gender) ............................ 32 Table 5: Frequency for Respondents' Demographic Profile (Marital Status) ....

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