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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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) ....
