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Computers in
Human Behavior
BY : Muhammad Mehroze
a: Ying-Feng Kuo
b: Chi-Ming
c: Wub, Wei-Jaw Deng
a : Department of Information Management, National University of
Kaohsiung, Taiwan
b : Institute of Economics and Management, National University of
Kaohsiung, Taiwan
c : 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 services
Service quality
Perceived value
Customer satisfaction
Post-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 of
the communication industry, the penetration
rate of mobile phone has reached 110% in 2003

(DGT, 2003)
(MNP) and VoIP (voice over
internet protocol)
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
Mobile value-added services
are digital services added to mobile phone
networks other than voice services in which the
contents included can be either self-produced
by mobile telecom service providers or provided
through strategic alliances with content
providers
Services
Include








Games
icons
ringtones
Messages
web browsing
SMS (short message service) coupons,
electronic transaction
Five values to consumers:








Time-critical needs
Arrangement, spontaneous needs
Decisions
Entertainment needs
Efficiency needs
Ambitions
Mobility-related needs
(Anckar & D’Incau, 2002)
Classifications of mobiles value
added services:
mobile value-added services provided by
telecom service providers can be classified into
four types





Information
Communication
Transaction
Entertainment
Previous studies of marketing have pointed out
that the key of corporate success and
competitive advantage is the enhancement
of 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 telecom
service 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 valueadded services and further examines the
relationships among service quality, perceived
value, customer satisfaction, and post-purchase
intention
Literature review
and hypothesis
development
Service quality
Service quality is the difference between
customers’ expectation and their perceived
performance of a service .
Parasuraman, Zeithaml, and Berry (1985, 1988)

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.
 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 more
accurate than SERVQUAL in the measurement
of service quality, and SERVQUAL can provide
better diagnostic information
Website service quality
 In the research of website service quality,
various measurement dimensions have been
proposed according to website properties
 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
Perceived value
 Customer’s perceived value can be defined
from the perspectives of money, quality, benefit,
and social psychology
 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)
Customer satisfaction
 The transaction-specific perspective
indicates that customer satisfaction is the
evaluation based on the recent purchase
experiences
(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
 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
(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’s
post-purchase intention
(Eggert & Ulaga, 2002; Lin, Sher, & Shih, 2005; Patterson & Spreng, 1997;
Petrick, 2002; Wang et al., 2004)
Hypothesis
H1: Service quality positively influences
perceived value in mobile value-added services.
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 postpurchase intention in mobile value-added services.
H5: Perceived value positively influences postpurchase intention in mobile value-added services.
H6: Customer satisfaction positively influences
post-purchase intention in mobile value-added
services.
Research model
Research Methodology
Questionnaire Design
Research Subjects and Sampling
Method
Questionnaire Design
Service

Perceived
Value

Quality
SERVPERF Model

Trade off B/W
What Customers
receive and What
they sacrifice

Construct of
Service Quality

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

Measurement of
Service Quality

Customer
Satisfaction

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

Post
Purchase
Intention

Tendency that
Customer will
purchase the
goods/services at
the same shop

WOM(Word of
Mouth)
ServiceQuality

SERVPERF
Model

Content Quality

Construct of
Service Quality

Navigation and
Visual Design

Measurement of
Service Quality

Management
and customer
Service

System
reliability and
connection
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

• Measurement Model of
Service Quality

• Top Five VASes

• Total Measure Model

• Reasons for non usage
of VASes

• Structural Model

Sample Characteristics

Verification 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 included
 Respondents included 89.1% student and Majority female
respondents were 58.4%
 90% > 30 min/30 Days ; 58.4% > 10 min / 30 Days

Top Five VASes
 Ring Tone(48.6%), MMS(48.4%), Picture Download(28.4%) ,
Music Download(28.2%), Auto Answering Message(13.2%)
Reasons for non usage of VASes
 Need 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 Test
Structural 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 Alpha
 Multivariate Normality Test
 Confirmatory Factor Analysis
 Chi Square
Total Measurement Model
 Multivariate Normality Test

Normal Data (P-value>0.05)
 Confirmatory Factor Analysis(CFA)
Test the Hypothesis Relationship
Structural Model
Path Analysis
Hypothesis Testing Result
 H1 : 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 Result
 H4: Service quality positively influences post-purchase

intention in mobile value-added services.
(REJECTED)
 H5: Perceived value positively influences postpurchase intention in mobile value-added services.
(ACCEPTED)
 H6: Customer satisfaction positively influences postpurchase 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 quality
on perceived value
The 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 quality
on 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
Conclusion
Service 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

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Computers in Human Behavior (Mobile , VAS )

  • 1.
  • 2. Computers in Human Behavior BY : Muhammad Mehroze
  • 3. a: Ying-Feng Kuo b: Chi-Ming c: Wub, Wei-Jaw Deng a : Department of Information Management, National University of Kaohsiung, Taiwan b : Institute of Economics and Management, National University of Kaohsiung, Taiwan c : Graduate School of Business Administration, Chung Hua University, Taiwan
  • 4. 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
  • 5. Keywords: Mobile value-added services Service quality Perceived value Customer satisfaction Post-purchase intention
  • 6. Service Quality Service quality is a comparison of expectations with performance.
  • 7. Perceived Value What someone believes merchandise to be worth
  • 8. 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.
  • 9. 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
  • 11. 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)
  • 12. 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 of the communication industry, the penetration rate of mobile phone has reached 110% in 2003 (DGT, 2003)
  • 13. (MNP) and VoIP (voice over internet protocol) 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
  • 14. Mobile value-added services are digital services added to mobile phone networks other than voice services in which the contents included can be either self-produced by mobile telecom service providers or provided through strategic alliances with content providers
  • 16. Five values to consumers:        Time-critical needs Arrangement, spontaneous needs Decisions Entertainment needs Efficiency needs Ambitions Mobility-related needs (Anckar & D’Incau, 2002)
  • 17. Classifications of mobiles value added services: mobile value-added services provided by telecom service providers can be classified into four types     Information Communication Transaction Entertainment
  • 18. Previous studies of marketing have pointed out that the key of corporate success and competitive advantage is the enhancement of service quality, perceived value, and customer satisfaction (Khatibi, Ismail, & Thyagarajan, 2002; Landrum & Prybutok,2004; Patterson & Spreng, 1997; Wang, Lo, & Yang, 2004; Yang & Peterson, 2004)
  • 19.  As the number of studies of mobile telecom service 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 valueadded services and further examines the relationships among service quality, perceived value, customer satisfaction, and post-purchase intention
  • 21. Service quality Service quality is the difference between customers’ expectation and their perceived performance of a service . Parasuraman, Zeithaml, and Berry (1985, 1988) 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.
  • 22.  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 more accurate than SERVQUAL in the measurement of service quality, and SERVQUAL can provide better diagnostic information
  • 23. Website service quality  In the research of website service quality, various measurement dimensions have been proposed according to website properties  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
  • 24. Perceived value  Customer’s perceived value can be defined from the perspectives of money, quality, benefit, and social psychology
  • 25.  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)
  • 26. Customer satisfaction  The transaction-specific perspective indicates that customer satisfaction is the evaluation based on the recent purchase experiences (Boulding et al., 1993)
  • 27.  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
  • 28. Post-purchase intention  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 (Cronin et al., 2000; Wang et al., 2004; Zeithaml et al., 1996)
  • 29.  In recent years, corporate managers and marketing staffs have used long-neglected perceived value to evaluate consumer’s post-purchase intention (Eggert & Ulaga, 2002; Lin, Sher, & Shih, 2005; Patterson & Spreng, 1997; Petrick, 2002; Wang et al., 2004)
  • 30. Hypothesis H1: Service quality positively influences perceived value in mobile value-added services. H2: Service quality positively influences customer satisfaction in mobile value-added services. H3: Perceived value positively influences customer satisfaction in mobile value-added services.
  • 31. H4: Service quality positively influences postpurchase intention in mobile value-added services. H5: Perceived value positively influences postpurchase intention in mobile value-added services. H6: Customer satisfaction positively influences post-purchase intention in mobile value-added services.
  • 34. Questionnaire Design Service Perceived Value Quality SERVPERF Model Trade off B/W What Customers receive and What they sacrifice Construct of Service Quality Perceived Value is the evaluation of the benefits of a product or a service by customers Measurement of Service Quality Customer Satisfaction 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 Post Purchase Intention Tendency that Customer will purchase the goods/services at the same shop WOM(Word of Mouth)
  • 35. ServiceQuality SERVPERF Model Content Quality Construct of Service Quality Navigation and Visual Design Measurement of Service Quality Management and customer Service System reliability and connection Quality
  • 36. 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
  • 37. Data Analysis, results and discussion • Subscribed Pattern • Measurement Model of Service Quality • Top Five VASes • Total Measure Model • Reasons for non usage of VASes • Structural Model Sample Characteristics Verification 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
  • 38. Sample Characteristics Subscribed Pattern included  Respondents included 89.1% student and Majority female respondents were 58.4%  90% > 30 min/30 Days ; 58.4% > 10 min / 30 Days Top Five VASes  Ring Tone(48.6%), MMS(48.4%), Picture Download(28.4%) , Music Download(28.2%), Auto Answering Message(13.2%) Reasons for non usage of VASes  Need Irrelevant (48.0%), Lack of Knowledge (40.7%), High Cost (33.0%)
  • 39. 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 Test Structural Model Test
  • 40. 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 Alpha  Multivariate Normality Test  Confirmatory Factor Analysis  Chi Square
  • 41. Total Measurement Model  Multivariate Normality Test Normal Data (P-value>0.05)  Confirmatory Factor Analysis(CFA) Test the Hypothesis Relationship
  • 44. Hypothesis Testing Result  H1 : 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)
  • 45. Hypothesis Testing Result  H4: Service quality positively influences post-purchase intention in mobile value-added services. (REJECTED)  H5: Perceived value positively influences postpurchase intention in mobile value-added services. (ACCEPTED)  H6: Customer satisfaction positively influences postpurchase intention in mobile value-added services. (ACCEPTED)
  • 46. 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
  • 47. Effects of service quality on perceived value The 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.
  • 48. effects of service quality on 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
  • 49. Conclusion Service 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