BY : Muhammad Mehroze

Computers in Human Behavior

a: Ying-Feng Kuo b: Chi-Ming c: Wub, Wei-Jaw Deng a : Department of Information Management, National University of Kaohsiung, Taiwanb : Institute of Economics and Management, National University of Kaohsiung, Taiwanc : Graduate School of Business Administration, Chung Hua University, Taiwan

Purpose Of Study

To Design the tool to find out the relationships

among service quality, perceived value, customer

satisfaction,and post-purchase

intention in mobile value-added services

Keywords:

Mobile value-added servicesService qualityPerceived valueCustomer satisfactionPost-purchase intention

Service Quality

Service quality is a comparison of expectations

with performance.

Perceived Value

What someone believes merchandise to be worth

Customer Satisfaction

Customer satisfaction, a term frequently used in

marketing, is a measure of how products and services

supplied by a company meet or surpass customer

expectation.

Post-purchase intention

Customers’ intentions to

repurchase products or services from

the same retailer and spread their

experience of buying and using the

product or service to their friends

Introduction

The fast growth of the mobile communication market, mobile phones that used to be exclusively held by business persons have become personal equipment closely integrated into everyone’s daily life

(Olla & Patel, 2002)

And relatively more frequently used than other mobile devices

(Clarke, 2001)

In Taiwan, due to the lift of ban on mobile communication and the liberalization ofthe communication industry, the penetration rate of mobile phone has reached 110% in 2003(DGT, 2003)

The release of mobile number portability (MNP) and the licensing of VoIP (voice over internet protocol) phone numbers with a prefix of 070 in 2005 have dissolved the constraints set up by telecom service providers and allowed consumers to have more options

(MNP) and VoIP (voice over internet protocol)

are digital services added to mobile phone networks other than voice services in which thecontents included can be either self-produced by mobile telecom service providers or provided through strategic alliances with content providers

Mobile value-added services

Include

Games icons ringtones Messages web browsing SMS (short message service) coupons, electronic transaction

Services

Time-critical needs Arrangement, spontaneous needs Decisions Entertainment needs Efficiency needs Ambitions Mobility-related needs

Five values to consumers:

(Anckar & D’Incau, 2002)

Information Communication Transaction Entertainment

Classifications of mobiles value added services:mobile value-added services provided by telecom service providers can be classified into four types

Previous studies of marketing have pointed out that the key of corporate success and competitive advantage is the enhancementof service quality, perceived value, and customer satisfaction

(Khatibi, Ismail, & Thyagarajan, 2002; Landrum & Prybutok,2004; Patterson & Spreng, 1997; Wang, Lo, & Yang, 2004; Yang & Peterson, 2004)

As the number of studies of mobile telecomservice quality is still limited, and a definite set of measurement indices for the service quality of mobile value-added services is not available This study attempts to design a scale for measuring the service quality of mobile value-added services and further examines the relationships among service quality, perceived value, customer satisfaction, and post-purchase intention

Literature review and hypothesis

development

Service quality is the difference between customers’ expectation and their perceived performance of a service .

Service quality

Based on this concept, Parasuraman et al. (1988) developed the SERVQUAL model (including five dimensions, namely tangible, responsiveness, reliability, assurance, and empathy) to measure service quality.

Parasuraman, Zeithaml, and Berry (1985, 1988)

Many scholars have questioned about the conceptual framework and measurement method of this model

Some other studies (Boulding, Kalra, Richard,& Zeithaml, 1993; McAlexander, Kaldenberg, & Koenig, 1994; Parasuraman, Zeithaml, & Berry, 1994; Zeithaml, Berry, & Parasuraman, 1996) also maintained that SERVPERF is moreaccurate than SERVQUAL in the measurement of service quality, and SERVQUAL can provide better diagnostic information

In the research of website service quality, various measurement dimensions have been proposed according to website properties

Website service quality

Kuo (2003) put forth a virtual community service quality scale, using advertising mail management, customer service management,online quality and information safety, webpage design and content, and extra function and service to evaluate the service quality of a website

Customer’s perceived value can be defined from the perspectives of money, quality, benefit, and social psychology

Perceived value

In the research of the relationships between service quality and customer’s perceived value in conventional retailing and online shopping, most of the empirical studies have pointed out that service quality will positively influence perceived value

(Bauer et al., 2006; Brady, Robertson, & Cronin, 2001; Cronin et al., 1997, 2000)

Wang et al. (2004) and Turel and Serenko (2006)

The transaction-specific perspective indicates that customer satisfaction is the evaluation based on the recent purchase experiences

Customer satisfaction

(Boulding et al., 1993)

Among the studies of customer satisfaction in the information industry, Lin and Wang (2006) revealed that customer satisfaction of mobile commerce is consumer’s total response to the purchase experiences in a mobile commerce environment

Post-purchase intention is the tendency that consumers will purchase the goods or services at the same shop and deliver their use experiences to friends and relatives

Post-purchase intention

(Cronin et al., 2000; Wang et al., 2004; Zeithaml et al., 1996)

In recent years, corporate managers and marketing staffs have used long-neglected perceived value to evaluate consumer’spost-purchase intention

(Eggert & Ulaga, 2002; Lin, Sher, & Shih, 2005; Patterson & Spreng, 1997; Petrick, 2002; Wang et al., 2004)

H1: Service quality positively influences perceived value in mobile value-added services.

Hypothesis

H2: Service quality positively influences customer satisfaction in mobile value-added services.

H3: Perceived value positively influences customer satisfaction in mobile value-added services.

H4: Service quality positively influences post-purchase intention in mobile value-added services.

H5: Perceived value positively influences post-purchase intention in mobile value-added services.

H6: Customer satisfaction positively influences post-purchase intention in mobile value-added services.

Research model

Research

MethodologyQuestionnaire Design

Research Subjects and Sampling Method

SERVPERF Model

Construct of Service Quality

Measurement of Service Quality

Service Quality Trade off B/W

What Customers receive and What they sacrifice

Perceived Value is the evaluation of the benefits of a product or a service by customers

Perceived Value

Cumulative impression of a firm’s service performance

Post Purchase Evaluation and affective response/feeling to the overall

In this Study, Total Consumption perception of users/subscribers for VASs

Customer Satisfaction Tendency that

Customer will purchase the goods/services at the same shop

WOM(Word of Mouth)

Post Purchase Intention

Questionnaire Design

Service Quality

Construct of Service Quality

Content Quality

Navigation and Visual

Design

Management and

customer Service

System reliability and

connection Quality

SERVPERF Model

Measurement of Service

Quality

Research Subject and Sampling Method

Study Was Conducted in Taiwan

Accordingly to 2006 survey release by FIND Aprox. 57.7% used VASes

54.2% belong to Age Group 21-30 (Sampling Group)

Sample Group is mainly composed of college Student

Data Analysis, results and discussion

• Subscribed Pattern

• Top Five VASes• Reasons for non

usage of VASes

Sample Characteristics

• Measurement Model of Service Quality

• Total Measure

Model

• Structural ModelVerification of proposed Model and Hypothesis

• Effects of service Quality on perceived value

• Effects of Service Quality on customer satisfaction

Effects of Service Quality on perceived value and customer satisfaction

Sample Characteristics

Subscribed Pattern includedRespondents included 89.1% student and Majority

female respondents were 58.4%90% > 30 min/30 Days ; 58.4% > 10 min / 30 Days

Top Five VASesRing Tone(48.6%), MMS(48.4%), Picture

Download(28.4%) , Music Download(28.2%), Auto Answering Message(13.2%)

Reasons for non usage of VASesNeed Irrelevant (48.0%), Lack of Knowledge (40.7%),

High Cost (33.0%)

Verification of proposed Model and Hypothesis Structural Equation Modeling(SEM) to verify

the proposed Model and Hypothesis Lisrel 8.52 as the analysis tool Analysis and Verification of Service Quality

Dimensions and Research Model Maximum Likelihood Method for parameter

estimation In the Model Fitness Test Measure Model TestStructural Model Test

Measurement Model of Service Quality

Exploratory Factor Analysis Purify the scale of service quality by deleting the

“Garbage item”Bartlett Sphericity Test to verify whether data

were appropriate for Factor Analysis “KMO(Kaiser-Mayo-Olkin) value = 0.90 :

Significance Level = 0.00” Cronbach’s AlphaMultivariate Normality Test Confirmatory Factor AnalysisChi Square

Total Measurement ModelMultivariate Normality TestNormal Data (P-value>0.05)Confirmatory Factor Analysis(CFA)Test the Hypothesis Relationship

Structural Model

Path Analysis

Hypothesis Testing ResultH1 : Service quality positively influences

perceived value in mobile value-added services

(ACCEPTED)H2 : Service quality positively influences

customer satisfaction in mobile value-added services.

(ACCEPTED)H3: Perceived value positively influences

customer satisfaction in mobile value-added services.

(ACCEPTED)

Hypothesis Testing ResultH4: Service quality positively influences post-

purchase intention in mobile value-added services.

(REJECTED)H5: Perceived value positively influences

post-purchase intention in mobile value-added services.

(ACCEPTED)H6: Customer satisfaction positively

influences post-purchase intention in mobile value-added services.

(ACCEPTED)

Effects of Service Quality on perceived value and customer satisfaction

Service Quality had significant and positive impact on perceived Value and Customer satisfaction

Multiple Regression Analysis (To find out the Dimension which significantly and positively influence perceived value and customer satisfaction)

The four dimensions of service quality all had significantly positive effects on perceived value

Among the four dimensions of service quality, except navigation and visual design had significantly positive effects on customer satisfaction

Effects of service qualityon perceived valueThe effect of ‘‘customer service and system reliability” ranked first (0.27),

followed by ‘‘content quality” (0.15), ‘‘navigation and visual design” (0.15), and ‘‘connection speed” (0.14).

Customer service and system reliability (SQ1), navigation and visual design (SQ2), content quality (SQ3), and connection speed (SQ4) influenced the perceived value.

effects of service qualityon customer satisfaction‘‘customer service and system reliability” (0.41) ranked first, followed

by ‘‘content quality” (0.17) and ‘‘connection speed” (0.15).

Customer service and system reliability (SQ1), content quality (SQ3), and connection

speed (SQ4) will influence customer satisfaction

ConclusionService Quality positively influenced perceived value and customer satisfaction

Service Quality show no direct effect on Post purchase intention

Perceived Value influenced both Customer satisfaction and Post Purchase Intention

Customer Satisfaction influenced the Post Purchase Intention

Thank You