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

MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY
-----

THIS DISSERTATION WAS ACCOMPLISHED AT THE NATIONAL
ECONOMICS UNIVERSITY

Supervisors:
1. Prof. Dr. Luong Xuan Quy
2. Assoc. Prof. Dr. Luu Van Nghiem

CHU TIEN DAT

Critic 1:

CONSUMER BEHAVIORS AND THE MARKETING MIX OF MOBILE
ENTERPRISES IN VIETNAM

Critic 2:

Critic 3:

MAJOR: BUSINESS ADMINISTRATION (MARKETING)
CODE: 62.34.01.02

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

SUMMARY OF DISSERTATION
IN BUSINESS AND MANAGEMENT

HANOI, 2014
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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.

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.
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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 aforementioned 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.
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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.

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
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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.
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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.

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)

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

Marketing
and Other
Stimuli

Customer’s

Customer

“Black Box”

Responses

- Chapter 4: Research results

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.

- Chapter 5: Proposal of marketing strategies

2.2.2 Marketing mix

- Chapter 3: Research methodology

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.

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

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.

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

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

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

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.

2.1.1 Mobile services

- 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.

2.3 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.

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

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

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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
- Products/
services

Environmental
stimuli
- Economic

- Price

- Scientifictechnical

- Provision

- Political/legal

- Promotion

- Competitive

Consumer’s “black box”

Customer
responses

Consumer’s
Decisioncharacteristics making
process

-Selecting
products/services

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.

- Selecting a brand

2.3.2.5 Some other consumer behavior research models

- Selecting a
provider

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:

- Selecting the
purchase amount

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

- 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 decisionmaking 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.

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- 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
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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).
Demographic factors
Perceived quality

Corporate image

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.

Switching cost
Consumer decision-making style
Type 3

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
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.

Behavioral
intention

Perceived price

Type 2

3.1 Research process

3.2 Data collection methods

Perceived promotion

Type 1

CHAPTER 3: RESEARCH METHODOLOGY

Type 4

Type 5

Type 6

Type 7

3.3 Intensive interview—qualitative research
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.
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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

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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

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.

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.

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

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.

4.1.3.1 Analysis of external factors affecting consumer behavioral intentions

3.4.5 Data processing method

4.1.3 Analysis of research model based on collected data
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.

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.
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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) fashiontechnology consciousness, (2) service quality consciousness, (3) service price
consciousness, and (4) habitual shopping.
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These newly-extracted factors also have valid Cronbach’s alpha coefficients.

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

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 decisionmaking 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:
Demographic factors

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

Corporate image
Basic service quality
Behavioral
intention

Perceived promotion

Mean value
Number
Density

Perceived price
Value-added service quality
Switching barrier

Order
of
impact
1

Consumer decision-making style
Type 2

Quality

consciousness

Price-value
consciousness

3.895
407
57.24%

3.745
429
60.34%

Habitual
shopping
3.592
333
46.84%

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:

Switching cost

Type 1

Fashiontechnology
consciousness
3.013

123
17.30%

Type 3

Type 4

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

2
3

4

5

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:
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6

Fashiontechnology
consciousness
Value-added
service quality
Promotion

Quality
consciousness

Price-value
consciousness

Habitual
shopping

All
consumers

Corporate
image
Switching cost

Corporate
image
Service price

Corporate

image
Switching cost

Corporate
Switching cost

Difficulties in
changing
numbers when
switching
providers
Provider image

Value-added
service quality

Basic service
quality

Basic service
quality

Basic service
quality

Service price

Switching cost

Value-added

service quality

Basic service
quality

Difficulties in
changing
numbers when
switching
providers
Basic service
quality

Difficulties in
changing
numbers when
switching
providers

Difficulties in
changing
numbers when
switching
providers
Service price

Value -added
service quality

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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.
No.

Hypothesis

Result

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

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 aftersales—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.

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
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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;
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- 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.
2.
3.
4.

Fashion-technology consciousness;
Quality consciousness;
Service value consciousness based on the balance between benefits and costs;
Habitual shopping.

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 selfemployed 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

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
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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.
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Besides, these enterprises should diversify high-quality value-added services and
encourage the participation of content service providers.

5.2.6 Building reasonable human resource policies and popularizing the mobile

enterprise culture

5.2.2 Applying a flexible price policy

The Vietnamese mobile enterprises are recommended to promote the mobile enterprise
culture which is customer-oriented, satisfies the customer’s needs, and is suitable with
customer behaviors.

First of all, to improve the customer’s perception of price, the Vietnamese mobile
enterprises should not focus on discount programs. Instead, they should offer different
packages so that customers can choose those suitable with their needs and financial
capacities.
Second, the enterprises should offer discount programs to customers who purchase and
use great quantities of services, and care about business-to-business (B2B) transactions.
Third, the enterprises should pay more attention to post-paid customers.

5.2.7 Building infrastructure and material and technical facilities
It is necessary for each Vietnamese mobile enterprise to build a modern, youthful, and
stable corporate image in the eyes of customers. Corporate image and its appearance
frequency have a big impact on customers.
5.2.8 Ceaselessly attending to loyal customers

Besides, the enterprises should apply a service price policy in association with
products/services (mobile phones accompanied by mobile services), and offer special
packages to support new services, especially M2M (machine-to-machine) services.
5.2.3 Extending service provision networks and improving their quality
First of all, the Vietnamese mobile enterprises should extend their service provision
networks.
Second, they should improve the quality of their service provision networks through
enhancing the quality of their service distribution networks and building policies to support

their agencies in the implementation of customer care services.
Last, they should open more and more agencies (or shops) which provide customers
both mobile phones and services. These mobile enterprises have an advantage that their
brands have been known to many customers. The customers will find it more convenient to
be able buy mobile phones and services at the same place.
5.2.4 Exploiting promotion at the right time
On the one hand, the Vietnamese mobile enterprises should renovate forms of promotion
via: (1) holding special promotion and sponsored programs with free trials offered to
members of technological forums, (2) organizing contests to learn about new products and
services with prizes for winners, and (3) diversifying forms of promotions, such as cash
gifts, minute gifts, value-added service gifts, and bonus points.
On the other hand, businesses should enhance the effect of promotion with the following
recommendations to be borne in mind: 1. A discount is reasonable if it makes up about 20–
40% of the normal selling price; 2. Small but frequent discounts are more effective and
impressive to customers than big but infrequent ones; 3. Reasons for promotions should be
stated clearly.
5.2.5 Boosting public relations
It is advisable for the Vietnamese mobile enterprises to proactively communicate with
their customers via messages and emails, and establish relations with mass media.
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It is advisable for the Vietnamese mobile enterprises to ceaselessly improve their
customers’ loyalty since it means to raise switching barriers. Customer care, for each
marker segment, is not only important to habitual shoppers, but it is also vital to fashiontechnology conscious customers. Keeping customers being well-informed of new services
and invited to free trials of these services also works for the latter group of customers.
5.3 Limitations of the research and directions for further research
5.3.1 Some limitations of the research
First of all, due to the excessive quantity of items included in the questionnaire, the
research used the shortened version of Sproles and Kendall (1978)’s CSI with 16 five-level
Likert items, instead of the full one with 50 items, for the survey of customer decisionmaking styles.

Second, the research has not approached the subjects who have not ever used mobile
services and are learning about them for the first-time purchase and use.
Third, the research employed multivariate regression for data analysis to define the
relationship between independent variables and dependent ones. However, this analysis
technique does not show the relationship between independent variables.
Last, despite the use of convenience sampling in combination with stratified random
sampling, the results of this research are hardly as valid as those gained via the use of pure
random sampling.
5.3.2 Directions for further research
Firstly, it is recommended that further studies should extend research factors. More
specific and specialized examinations should be conducted on the factors of distribution,
and communications and advertising.
Secondly, it is advisable for further studies to consider the use of the full CSI version
with 50 items developed by Sproles and Kendall (1986) so as to identify more exactly the
external factors of the consumer’s “black box.”

22


Lastly, further research should be extended beyond the five cities and provinces chosen
in this study. Simultaneously, the random sampling process and procedures, as well as the
questionnaire-based interviews, should be controlled more strictly for better results.

CONCLUSION
Mobile services are services with high technological contents, but they are becoming
more and more popular in daily life. Consumer behaviors towards mobile services have
attracted not only researchers but also service providers and State management bodies.
However, theoretically, few studies in the same field have provided an overall examination
of internal and external factors affecting consumer behaviors. Practically, it is essential for
mobile enterprises to have a thorough understanding of consumer behaviors since it will

help them work out good plans for reasonable resource allocation and increase their
ARPUs, especially in the present difficult economic and market context in Vietnam.
This dissertation has provided an overall examination and analysis of theoretical and
practical issues and methods for researching consumer behaviors. This laid the foundations
for the building of a model for researching the behaviors of mobile service consumers in
Vietnam, as well as the basis for the analysis and proposal of an appropriate marketing mix
for Vietnamese mobile enterprises.

AUTHOR’S PUBLISHED STUDIES RELATED TO THE DISSERTATION
1. Chu Tien Dat (2006), “Promotion and Its Effects”, Journal of Post, Telecommunications
and Information Technology, issue 277, April 2006.
2. Chu Tien Dat (2013), “Opportunity for Overseas Vietnamese-language Pay TV
Services”, Journal of Economics and Forecasting, issue 548, June 2013 (ISSN 08667120).
3. Chu Tien Dat (2013), “Hanoian Consumer Behaviors towards Mobile Services”,
Journal of Economics and Development, special issue, August 2013 (ISSN 1859-0012).
4. Chu Tien Dat & Tran Khanh Hung (2013), “Northern European Countries’ Welfare
State Model: Lessons of Experience”, Workshop on the Basic Theoretical Issues on
Modern Industrial Countries and Socialist-oriented Modern Industrial Countries, and
International Experience on the Development of Modern Industrial Countries, October
2013 (KX code: 04.07/11-15)
5. Chu Tien Dat (2013), “Theory on Consumer Behaviors and the Application of the
Consumer Behavior Theory in Mobile Services in Vietnam”, Workshop on Economic
Theories and Their Application Potential in Vietnam, 2013.

This research has achieved its general and specific goals set in the beginning. All
hypotheses have been tested. Results of quantitative research have shown that the behaviors
of mobile service consumers are affected by six external factors listed in the descending
order of impact as follows: corporate image, switching cost, basic service quality,
difficulties in changing mobile numbers when changing networks, service price, and valueadded service quality. Regarding internal factors, the Vietnamese consumers have four
main characteristics equivalent to four decision-making styles as follows: (1) fashiontechnology consciousness, (2) quality consciousness, (3) value consciousness, and (4)

habitual shopping. Among them, the characteristics 1, 3, and 4 have direct impacts on
consumer behaviors. The research has also proved that consumers with different
characteristics are influenced differently by external factors.
Based on the results of quantitative research on consumer behaviors towards mobile
services, the research has compared the marketing mixes of the Vietnamese mobile
enterprises over the past time and then proposed the marketing mix for the whole market.
Accordingly, the Vietnamese mobile enterprises should further develop value-added
services and after-sales—customer care activities, build corporate image, and prevent
themselves from abusing promotion. The dissertation has also suggested the marketing mix
for each market segment according to consumer characteristics.

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