1
CHAPTER 1
INTRODUCTION
INTRODUCTION
China's mobile phone industry has experienced more than 20 years of highly
rapid development, mobile and terminal market competition is very fierce, Chinese
market is saturated, the profit space in the field of traditional communication letter has
been difficult to support the company's long- term development. Therefore, many
Chinese companies choose to switch to international market to cope with the future
market competition and alleviate the pressure.
There is no lack of rapid economic development of southeast Asia countries
such as Thailand, Thailand is the association of southeast Asian nations member
states and one of the founders, as well as the Asia-pacific economic cooperation
organization, the Asia-Europe meeting (ASEM), and the world trade organization
members. Thailand since by economic policies, the rapid development of economy in
the 1990 s, one becomes one of the "Asian tigers", is the emerging industrial
countries of the world and one of the emerging market economies in the world.
Thailand is Asia's only net food exporter and one of the world's top five agricultural
exporters.
Thailand's electronic industry and other manufacturing industry development is rapid,
also auto industry is a pillar industry, is southeast Asia's automobile manufacturing
center and the east union's biggest car market, is southeast Asia's second-largest
economy, second only to India.
The sales of communications equipment, especially smartphones, are largely
influenced by the number of consumers and the ability to consume. In terms of
population, the total population of Singapore is 5.4 million, the total population of
Malaysia is 31 million, and the total population of Thailand is 68 million, and the
number of mobile phone users in China reaches 83 million (World Population
Distribution by Country, 2018).
Vivo smartphone is a smartphone brand launched by BKK ELECTRONICS
CORP., LTD in 2009. The declaration of the brand is “Daring to pursue true
perfection, while continuously creating the surprising.” Its core values were pleasure,
energy, and professionalism. Vivo smartphone product series have Xplay series, X
series and Y series. In 2014 Vivo started to entering international market, except
Chinese domestic market, the overseas market included India, Thailand, Cambodia,
Laos, Malaysia, Vietnam, Indonesia, Philippines, Myanmar, Russia. Until now, vivo
has 7632 stores, 600 after-sales service centers in 600 Mainland–Chinese cities, and
has 373 stores in overseas cities. [1] There were 26 brand shops in Thailand. vivo
have 11 retail system partners, 3 operator partners, 5 online sales channels in
Thailand. Vivo has been entry the Thai market for nearly 4 years, its overall sales
rank still low. And the product sales are still in the mid - to low- end market; OPPO,
which has a similar positioning, has switched its product line in Thailand to the
medium- high price segment. According to the Thailand mobile phone marketing
share of June, 2016 to June, 2017, Samsung is the leading selling brand, followed by
apple and OPPO. Vivo is still in the third echelon team, which is far behind OPPO,
the volume of OPPO is 1.5 times that of vivo.
V3max specific Table
One was Thailand Operator brands True that 22.57%,the second one was Lava,
a Indian brand had 20.68%, vivo only had 5.73%, ranked No.6. Relative to the
low price segments of smartphone Thailand, customers’ perceptions of vivo still
low.
With the increasing competition, the competition among major mobile phone
manufacturers is no longer a pure technical competition, and the satisfaction of
customers becomes the main factor. For mobile phone Company, they need to focus
on the quantifying customer satisfaction and its influencing factors. The necessary
condition to seize the market is to win customer’s satisfaction. To satisfy customers:
1). grasping the market trend and produce more popular mobile phones that can meet
customers' needs;
2). understanding the advantages of other rivals, to make up for their shortcomings,
and to improve deficiencies.
Intention of Research
This study Research emphasis Vivo mobile phone model V3max’s customer
satisfaction investigation, and supplemented by influencing factors. Through this
study, vivo can understand customers' satisfaction with v3max, and this study will put
forward suggestions for vivo to improving customer satisfaction, and provide
guidance for subsequent products and services.
Research Objective
The objective of the research study as below:
1. To interview the customer who ever bought V3max, knowing
customers’
Satisfaction with V3max
2. To study the consumer characteristics of v3max users
To study the consumer Major Research Questions and Sub-questions
Major research question of this work is as bellowing:
What is the performance of v3max consumer satisfaction segmentation
Sub-questions of this work are as bellowing:?
3. What kind of customers bought V3max?
4. How well do customers know Vivo?
5. What aspects of V3max do customers not like?
6. consumer behavior of v3max user
Assumption
This study is conducted under the following assumptions:
1. Customers bought V3Max only for their own use;
2. The information and sales numbers come from Vivo internal are reliable.
Scope of Research
This research by making the phone follow up for customer who have ever
bought model V3max, getting V3max users feedback on the product performance,
configuration and service. Then through the data analysis consumer characteristics
and consumption habits. Getting the phone number of interviewees from the
consumer information filled in by warranty card of v3max. The v3max consumers
selected are not limited to Bangkok, but to Thailand as a whole.
Benefits of Research
From the perspective of macro concept, the customer satisfaction can reflect
the customer's evaluation of products and services, as well as the customer
satisfaction. From the Angle of integration, quantifying the price of products and
services, acquiring accurate data information can provide a basis for mobile phone
enterprise decision- making.
From the perspective of micro concept, customer satisfaction is the key
indicator in the quality management system, which is of great importance to mobile
phone industry. As follows:
1. It is beneficial to improve the prediction ability of mobile phone
enterprise. Customer satisfaction is the guide plate for customer behavior, which can
provide advice for vivo product planning and improvement.
2. Improving company’s competitive edge. The one who can satisfy
the customer is the one who holds the power of action.
3. Improving the profitability of company. Understanding customers'
consumption characteristics and habits, and formulate personalized corporate
policies, so as to find potential customers and bring higher benefits to enterprises.
Limitation of Research
Due to limited knowledge and lack of research experience, the depth of this
study is not enough. There is amount of researches studying about customer
satisfaction and behavior, but few research study such specific one, only one model of
production. This research only investigates the vivo v3max model of customer
satisfaction, no other models of Vivo and other mobile phone brands were
investigated, thus cannot be compared different types, different brands of mobile
phone customer satisfaction. It is impossible to determine the advantages and
disadvantages of V3max compared to other mobile phones. And also cannot propose
targeted strategies to improve customer satisfaction for different mobile phone models
and brands.
Conclusion
In recent years, the smartphone industry has seen explosive development. The
use of the phone is no longer limited to talk, but also to the Internet, reading, taking
photos and simple file processing. With the saturation of the mobile phone market in
Thailand, how to satisfy consumers has become the focus of this research.
V3Max was flagship mobile phones of Vivo in 2016, it is the representative
product of vivo two years after it entered Thailand. To study customers’ satisfaction
and characteristics of this product can provide useful suggestions for Vivo’s future
product development and product strategy. This is also the intention of this research
By interviewing the customer who have bought V3max, to analysis the factors
effect customers’ satisfaction.
LITERATURE REVIEW
Books, definitions, formulas and models will be reviewed in this chapter,
included the definition of customer, customer satisfaction, behavior, buying process,
customer relationship management and mobile phone market in Thailand.
Customer
Customers constitute the main body of market demand, and be divided into 2
types, one is internal customers, and the other one is external customers.
Definition of Customer
Kotler (1931) defined Customers are people who have certain desires or
needs and willing to satisfy them through exchange. Chinese professional manager
Qu. yunbo and economics doctor Niu. haipeng in the book “ Service advantage and
overall customer service system planning” emphasized that customers are people who
will come on to buy goods, or customers are people with the ability to consume or
have consumption potential. Customer are defined from the size of purchasing power.
Johns (1942) strictly distinguishes users from customers, and point out that customers
are the people who use and pay for our products or services. This research defines the
customer as: the customer can be an individual, a group or a unit, whose needs
constitute the market.
Customer Segmentation
Geoff Tennant who is a six sigma consultant of UK categorizes
customers in 2 types. When marketers, market regulators and economists use
intermediate or final classifications, customers are more often divided into two
categories in the field of customer service:
1. Internal customer. Internal customers are customers who are directly
connected to the organization, usually (but not necessarily) customers have
relationship to the organization. Such as stakeholders, employees or shareholders,
but definitions also include creditors and external regulators (Tennant, 2001)
2. External customer. An organization's external customer is a
customer who has no direct contact with the organization (Kendall, 2007).
3. According to the relationship between external customers and
organizations, external customers can be divided into types : This research is
intended for external customers, those who
purchase, use, or may use products or services.
Customer Satisfaction
There are 3 models of customer satisfaction, ASCI, Kano and the customer
satisfaction model evolved from Maslow. Maslow model is the basic model of social
demand, the research will study customer satisfaction on the basis of Maslow. Three
measurements of customer satisfaction are main method to study customer
satisfaction.
Definition of Customer Satisfaction
People began to attach great importance to the idea and concept of
customer satisfaction in the middle of the twentieth century. The basis of the concept
of customer satisfaction is due to material excess. Due to overproduction, customers
are free choose to the products or services they satisfy. If a company wants to sell its
products or services, it must try its best to meet the needs of customers and make
them satisfied. American scholar Cardozo (1965) first introduced Customer
Satisfaction (CS) into the field of marketing. A large number of scholars and experts
have conducted in- depth studies on the " expect- difference" paradigm after Cardozo
proposed that improving customer satisfaction can stimulate customers' repeated
purchase behaviors. This theory takes the customer expectation as the reference
object, making judgment and comparison on products and services. Oliver & Linda
(1981) thinks that customer satisfaction is an emotional state, which is formed when
expectations are in line with past consumption experience. Tse & Witon (1988)
believed that customer satisfaction was a kind of differential evaluation, which was
formed when customers compare the expected quality before purchase with the
perceived quality after consumption. Westbrook & Reilly (1983) believed that
customer satisfaction was emotional reaction.
This emotional reaction is caused by the psychological influence of
product display and shopping environment in the process of purchasing. Philip Kotler
defines customer satisfaction as a person's feeling of pleasure or disappointment that
is formed by comparing their expectations value with the perceived effects of
purchasing a product. This Research adopt the definition of Philip Kotler's.
Customer Satisfaction Model
The Kano model a theory put forward by Nariaki, Kano(1940) classifies
customer preferences into 5 categories: Must- be Quality(threshold attributes) , One-
dimensional Quality(performance attributes), Attractive Quality(excitement attributes)
, Indifferent Quality, and Reverse Quality. In Kano model, the relationship between
customer satisfaction and the characteristics of products or services is shown as
follows:
As the Kano model shows if a product's features don't meet a customer's
Threshold Attributes, customer satisfaction levels will be very low.
Customer Satisfaction Index (CSI) model developed by Claes Fornell
(1996), Donald C. Cook, Distinguished Professor of Business Administration at the
university of Michigan and chairman of the CFI group (Sipher- Mann, Leah). CSI is
defined as an overall evaluation of the post consumption experience of products or
services in the minds of customers; latent variable indicated by customer satisfaction
scores in 2002, 2003, and 2004 (Xueming& Bhattacharya, 2006). Based on this
model, he customer satisfaction index model of their many countries are proposed.
Such as Swedish Customer Satisfaction Barometer (SCSB), American Customer
Satisfaction Index (ACSI), European Customer Satisfaction Index (ECSI), and
Chinese Customer Satisfaction Index (CCSI) (Xinyan, 2003).
Maslow's theory divides need into physiological needs, security needs,
social needs, respect needs and self- actualization needs, from the lower level to the
higher level. This research according to Maslow's hierarchy of needs Divide customer
needs into the following three levels:
4. Product Satisfaction: Customer satisfaction is first of all satisfied with
the quality of the enterprise's products. The quality and internal design of the product
are the basic factors of customer satisfaction;
5. Service Satisfaction: it refers to the service measures taken before,
during, after sales and at different stages of the product life cycle to satisfy
customers;
6. Social level Satisfaction: it refers to the customer safeguard social
interests when they purchasing products and service.
This research mainly discus product satisfaction and service satisfaction,
Social needs are not discussed.
Customer Satisfaction measurement
Customer Satisfaction, also known as the Customer Satisfaction index. It
is the abbreviation of customer satisfaction survey system in service industry.
Customer satisfaction is a relative concept, matches degree between customer
expectation and customer experience. In other words, it's an index that gets through
customer comparing the perceived effects with their expected value. There are three
mainly customer satisfaction measurements as fallows:
1. Customer Satisfaction Score (CSAT)
This is the most classic indicator of customer satisfaction, which was
put forward by Cardozo “ An experience study of customer effect, expectation and
satisfaction” in 1965. Ask customers to assess their business, product or service
satisfaction. The CSAT score is the average score of customer response.
CSAT does have some downsides. The people who are most motivated to do
these kinds of surveys are either very happy or very unhappy, so you can't truly
measure the entire customer. CSAT is not always a good indicator of customer
loyalty; it's more about measuring how much customers trust the business
performance.
2. Net Promoter Score (NPS)
NPS was first put forward by Frederick F. Reichhled who is founder
of Bain’s customer loyalty business in 2003 published "One Number You Need to
Grow". The article mentioned that there is no doubt that NPS can be seen as part of
the customer satisfaction, but the index is more intuitive, and it is not only direct
reaction to the customer to enterprise's loyalty or purchase intention, it also to some
extent to predict for current and some time to com of enterprise development trend
and sustainable
3. Customer Effort Score (CES) CES was first proposed in a July
2010 article in the article “Stop Trying to Delight Your Customers” by Mattew
Dixon, Karen Freeman, and Nicholas Toma. CES measures the difficulties customers
face when buying a product. CES scores can be a wake-up call when enterprise make
customers work too hard, they might go somewhere else. Although this measure only
focus on one aspect of your business, it is important to check and make sure that
customers still belongs to the enterprise. In other worlds, CES can be understood as
"how much effort does the user have to make to be your customer and to remain your
customer."
Consumer Behavior
Consumer buyer behavior is considered to be an inseparable part of marketing
and Kotler (2009) states that consumer buying behavior is the study of the ways of
buying and disposing of goods, services, ideas or experiences by the individuals,
groups and organizations in order to satisfy their needs and wants. Hence, it is
imperative to grasp comprehensively consumer behavior in order to figure out how
prospective customers will react upon the development of the new product or service.
In addition, it also helps companies identify opportunities and contingencies which
are not presently integrated.
Scope of Consumer Behavior
According to Rajneesh Krishna (2014) , Dean of FLAME School of
Communication Pune, to understand the process of consumer behavior holistically,
relies on significant contributions from sociology, anthropology, and psychology. In
this section, the study summarizes the three disciplines.
Under Sociology, it can be said that social groups impact on the
consumption behavior in two ways. First, they create internal preferences through the
process of internalization and second, they impose sanctions on deviant consumption
behavior. Meanwhile, Anthropology emphasizes the importance understanding the
impact of material and the non- material aspects of culture on consumer behavior.
Without any doubt, both sociological and anthropological perspectives explain the
impact of culture on consumer behavior. On the other hand, in Psychology, it is
evident that all forms of consumption are specific types of behavior and hence, the
theories such as Freud’s Psycho-analytical Theory of Personality and Maslow’s
hierarchy of needs, which were developed in the generalized context of psychology
can be easily applied to understand consumer behavior.
In short, consumer behavior is a complex and a multidimensional
process however, as a discipline it can be deduced that it has borrowed extensively
from other social sciences to fully understand the process of consumption.
The Influencing Factor of Consumer Behavior
Inferring from the previous discussion, it can also be concluded that
consumer behavior is mainly concerned with cultural, social, personal and
psychological as these four factor inevitably affect the marketing strategies of
individual companies.
Primarily, culture operates primarily by setting boundaries for individual
behaviors and by influencing the functioning of each institution as the family and
mass media (Chaudhry, 2014) . Thus, culture plays a very vital role in the
determining consumer behavior which can be subdivided in Culture, Sub- Culture and
Social Class. Secondly, it is explanatory to take into consideration the social factors in
consumer behavior, as they have great impact how people react into marketing
messages before making purchasing decisions. For instance, how using a prominent
figure can influence buyers. Social factors are also subdivided into the following;
Reference groups, Family and Role and status. Personal factors explain the unique
Characteristics (i.e. decision making process, habits and interest, and notions) of an
individual despite being part of the same group. The sub factors under personal factor
are listed as; Age and life cycle stage, Occupation, Financial or economic situations,
Lifestyle and Self-concept and personality.
Psychological factors can include the relative perception of a person’s
personal needs, his learning or comprehension abilities, and attitude, as each
individual responds to a marketing message based on those components. The four
psychological factors that affect consumer behavior are; Motivation, Perception,
Learning and experience and Attitude and beliefs.
The study of consumer behavior helps marketers in analysis the
following factors; cultural, social, personal and psychological, which influence on the
buying decision of the consumers. If the marketers failed to understand these factors,
it is inevitable that they would also fail in their respective industries.
Overall, the importance of understanding the consumer behavior
through their decision making process is, to create value for consumers and more
importantly profit for the organization.
Consumer Buying Process
The customer buying process describes the experience of what customers go
through before purchasing a product. For this reason, understanding customer’s
buying process is necessary as it enables business stakeholders to align their sales
strategy accordingly. John Dewey first introduced the five stages in 1910 (as cited in
Johnston, 2016) namely; Problem/ need recognition, Information search, Evaluation
of alternatives, Purchase decision and Post-purchase behavior.
The first and most important step in the customer’s decision process is
considered to the Problem/ need recognition. This is true because an individual
cannot make any purchase without recognizing its necessity which may be triggered
by any internal such as hunger, thirst, etc., or external stimuli like any forms of
advertisement.
Then, having recognized the need, the next step a customer may take is the
information search stage. This is when a customer seeks to find the best solution to
identify and evaluate information sources related to the central buying decision. For
most cases, a customer will evaluate different products or brands on the basis of
Alternative product attributes. At this stage, the customer’s attitude towards the
products heavily influences his decision making. The second-to-last stage is where
the purchase takes place. Kotler (2009) states that the final purchase decision may be
‘disrupted’ by two factors: negative feedback from other customers and the level of
motivation to accept the feedback. Finally, customers will make some comparison
with their previous expectations of the purchased produces, and thereupon, they will
be either satisfied or dissatisfied. On this basis, it is common for customers to
circulate their positive or negative feedback about the product which nowadays can
be through reviews on website, social media platforms or word of mouth advertising.
Customer Relationship Marketing (CRM)
Customer Relationship Management (CRM) is basically an information
industry term for methodologies and software with the use of internet functions that
support any enterprise in handling customer relationships in an organized and
convenient way. Dr. Philip Kotler (2009) defines Customer Relationship Management
(CRM) as “the overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction.”
Looking briefly at the two trends which have brought CRM to the forefront
(as cited in Berry, n.d. para. 6-7), Boston University professor Tom Davenport
explains, first, as global competition has increased and products have become harder
to differentiate, “companies have begun moving from a product-centric view of the
world to a customer-centric one,”. Second, technology has ripened to the point where
it is possible to put customer information from all over the enterprise into a single
system. In other words, with the advancement of cutting edge technology, it has
brought CRM software in the big picture.
In the past, CRM systems allowed marketers and salespeople to better focus
their marketing activities by mining the system for better business intelligence.
Nowadays, CRM system has become much more proactive. In fact, it puts more
emphasis on recording and interpreting data, creating, synthesizing, correlating and
displaying visual presentations to identify patterns, relationships and new sale
opportunities. For this reason, many companies are turning to customer- relationship
management systems to better understand customer’s wants and needs.
In summary, CRM allows companies to gather and access information about
customers’ buying histories, preferences, complaints, and other informative data so
they can better anticipate what customers will want and at the same time, promote
customer loyalty through use of technological innovation.
Mobile Marketing in Thailand
It has been said that in the past few years, mobile technology has undeniably
become more and more pervasive in Thailand as smartphone’s popularity increases due
to its practical features in comparison with personal computer. However, this renown is
not just an occurrence in Thailand as it is true to other countries around the world.
In fact, according to statistics, smartphone is the fastest-selling gadget in
history outperforming the traditional desktop computer by a ratio of 4: 1 which means
that approximately 50% of the adult population globally own a smartphone. Assenting
to such information, it is inevitable that a number of people are looking at the
contemporary and potential impact of the technology on a developing nation like
Thailand in which this study ventures to explain comprehensively.
In January of 2014, Pew Research Centre reports that Thailand has 97 million
mobile subscriptions domestically, and most of which are availed through prepaid
plans. This simply puts emphasis on the idea that 23 million of Thai population use
the internet through their mobile devices regularly which consequently, increases
smartphone marketing convenience in the country. In addition, this data has put
Thailand as one of the top 10 of all the developing nations recorded in the survey for
acquiring smartphone gadgets.
On another note, Statista (2018) claims that the number of smartphone users in
Thailand from 2014 at 15.4 million, is estimated to get to 30.05 million in 2022
(Number of smartphone users in Thailand from 2013 to 2022). This data provides an
empowering information about Thailand’s mobile market for various smartphone
companies to have a detailed market analysis, and plan their corporate strategy.
To sum up, smartphone penetration to the Thailand’s mobile market is
predicted to continuously increase in the following years, providing a competitive
market to all smartphones providers in the country.
Vivo’s Introduction to Mobile Marketing in Thailand
As Thailand’ s hyper- competitive smartphone market intensified its
popularity in 2014, Vivo the China's fifth- largest handset company was set to obtain
at least a 5- 8% share in the Thai smartphone market by 2017 according to Feng Lei,
vice-president and chief marketing of Vivo Communication Technology Co. (Leesa-
Nguansuk, 2014). At that time, a number of smartphone companies such as Samsung,
Apple, and other local brands already dominate Thai’s smartphone market share.
However, as it focused on strategizing its marketing and advertising in order to build
brand awareness and strengthen its reputation, Vivo now is one of the top
competitor of Thai’s largest market share.
Conclusion
The literature review has discussed definition of customer and customer
segmentation, and customer satisfaction, as well as customer buying process, CRM
and the current situation of the mobile phone market in Thailand. For Vivo, learning
and understanding the relative theory and the current state are conducive to develop
better products.
Firstly, by discussed the customer definition and segmentation of literature,
concluded that the main object of this study is an individual person whose needs
constitute the market.
Second, many scholars have defined customer satisfaction, in general most
scholars think customer satisfaction is a emotion to the product. Customer satisfaction
have 3 model to reflect, Kano model, ACSI model, and Maslow model. It is consistent
with this paper that Maslow model studies customer satisfaction from the perspective
of customer demand.
Third, by reviewing customer behavior, buying process, CRM, companies can
have a deeper understanding of consumers.
Finally, knowing the current market situation of Thailand can we better judge
the market trend.
METHODOLOGY RESEARCH
This chapter will summarize the research methods used in this study, and
firstly review the literature on general research methods related to this study. After
that, the research methods used in this study will be described.
Research Methodology Review
Marketing research can be separated into three functional categories:
descriptive studies, causal studies, and predictive studies (Wentz, 1972). Each of the
three functional categories has the same overall goal, and they must assist decision
markers, but they also have distinct functions.
Descriptive Research
Descriptive research, this type of research is the most common, and the
fundamental reason for completing descriptive research is to find out what happened
(Research methods). For descriptive research, also can be called "statistical", it
provides data about the population or the universe that is under studying, but it can
only describe a situation in which "who, what, when, how", cannot describe the cause
of this situation.
Therefore, descriptive studies are used when the goal is to provide as a
description of the system realistic and accurate as possible. It provides some number or
frequency of occurrences, and suitable for statistical calculation such as to determine
the average number or central tendency. For example, the descriptive study could be
used to find out which age group is buying a particular brand of product, or to find out
how many competitors a company has in the market (Research Methods,) . One of the
major limitations of descriptive research is that it does not help determine the cause of a
particular behavior and motivation. In simple terms, it cannot establish causation
(Descriptive Research) . The two most common descriptive study designs are
"observation" and "investigation". Descriptive research can be divided into two types
:1) quantitative descriptive research is to quantify the data and extend the sample results
to interested people, and measure the incidence of views and opinions in selected
samples; 2) qualitative descriptive research provides in-depth insight into the problem
Setup and provide ideas or assumptions for future quantitative research (Koul, 2009).
Causal Research
Causal studies are designed to determine the extent and nature of
causality,and can be conducted to assess the impact of specific changes on existing
norms, processes, etc ((Brains, 2011). Causal studies focus on the analysis of a
situation or a specific question to explain the pattern of causality between variables.
There are two objectives of causal research: 1) Find out from the variables which are
the cause and which are the result; 2) Determine the nature of the relationship
between causal variables and forecast effects. Causal studies play an important role in
identifying a range of underlying causes, and can provide the advantages of
replication if its necessary, and are more efficient internally due to the choice of
research subjects. But there are also some disadvantages of causal studies, such as it
would be difficult to draw proper conclusions from causal research, and to
identifying cause variables and the impact.
Predictive Research
Predictive analytics include a wide variety of statistical techniques, from
data mining, predictive models, and machine learning, to analyzing current and
historical facts and making predictions about future or other unknown events (Chales,
2007).
Predictive research is usually defined as forecasting at a more detailed
level of granularity, i. e. To generate a predictive score (probability) for each
individual organizational element. This is different from the prediction. For example,
"predictive analytics - techniques learned from experience (data) to predict individual
future behavior to drive better decision-making." (Siegel, 2013).
Comparison of Basic Research
Through the comparison (see Table 3.1), descriptive research is
described market market characteristics and functions, causal is determined cause and
effect relationship, and predictive is discovered ideas and insights. The methods of
three categories are different. Descriptive research main method is secondary data
analysis, i.e. quantitative research, causal used experiments, predictive almost is
qualitative research.
Method of Inquiry
This research is an inductive study. The factors influencing Thai consumers’
satisfaction with v3max were examined through inductive reasoning. Some responses
can be estimated from the results and the most important factors can be determined.
The telephone follow- up calls survey was used in this study. The telephone
follow- up calls survey is a survey method in which the market research related staff
make inquiries to the respondents by telephone to understand the market situation. It
is a survey method in the access method. It is an indirect method of investigation
because it does not touch each other directly but takes place through the intermediary
tool of telephone (Luo, 2017).
The merits of follow-up calls survey:
1. Access to market information is fastest;
2. Save investigation time and money;
3. The coverage is broad and can be investigated by any region, unit
or individual with a telephone;
4. The interviewees can speak freely without the pressure.
As an investigator must note that the potential impact of the use method on the
error of the control and measurement coverage, the error of the no responses, and the
measurement method. Focusing concern on sampling error is an “incomplete and
unsatisfactory way" (Groves, 1989).
The error survey of follow-up calls survey:
1. Error with no response: Consumer calls changed, or for any other reasons
cannot accept the interviews;
2. Error in the general range: The results of the telephone survey can only be
inferred from the general population of the telephonic objects, which has inherent
defects of the parent, which is not conducive to the comprehensiveness and
integrity of data collection.
Research Procedure
This research used telephone follow- up calls survey to study customers’
satisfaction of Vivo smartphone model V3Max. The content of telephone follow-up
calls included basic information of the respondents such as gender, age, education
background, occupation, personal and family monthly income. In addition to the basic
Information, the reason why the customer bought v3max, the model of the last mobile
phone, compared mobile phones when customer bought V3Max, and the function
customer likes and dislikes are also the information that needs to be learned through
telephone survey.
Data Collection
Primary data and secondary data are two parts of data. This research data
mainly from primary data. Zikmund (2003) pointed out that the primary data were
collected and recorded for the purpose of the project at hand.
Population and Sampling
V3Max has sold 49,935 units (not include employees buying) since it
started selling in whole Thailand, Organization group cooperation customers (CSC,
Jaymart, TG, Maxlink, and Banana IT) and Operator cooperation customers (True,
AIS) have sold 29,464 units, Bangkok dealer customers have selling 3,853 units,
online platform (Lazada, Shopee and 11Streets) have selling 711 units (data from
internal system). Because online platform easier to get customer information
(telephone number, name and gender), so this research adopts 711 units as the total
population. According to the sample size confirmation formula proposed by Taro
Yamane (Yamae, 1967):
n: sample size
N: total population
e: the acceptable sampling error
Usually the confidence level and p= 0.05 are assumed (Fisher, 1925).
The total population of this research is 711, according to this formula sample size is
256. This research called 256 telephone number from the channel, and the results was
218 effective responses. That gives response rate of 85.33%.
Data Collection
The customer of V3Max contact information from Lazada, 11 street and
Shopee online platforms. The sampling is 36% of population, randomly selected
interviewees from each online channel based on this ratio. The samplings of each
three online channels are as bellowing:
Table 3.2: Samplings of Each Channels
Channels Sales Units Sampling
Lazada 590 212
11 Street 109 39
Shopee 12 5
Total 711 256
Method and Data Analysis
The effective feedback survey is presented in the form of Microsoft
Excels chats, and the data analysis is mainly in the form of percentage.
The two scales adopted in this research as follows:
1. Likert scale: This scale is composed of a set of statements, each
state has "strongly agree", "agree", "not necessarily" or "disagree" or "strongly
disagree" five kind of answer, respectively to 5, 4, 3, 2, 1, each respondent's attitude
score is customers answer to the problem is the sum of scores, the total score reflex
the attitude strength customers or different states of this scale (Trochim, 2006). In
this research 5 points means absolute satisfaction, and 1 points means serious
dissatisfaction. Table 3.3: Likert Scale
Table 3.3: Likert Scale
Absolute Relative Low Dissatisfied Serious
Satisfaction Satisfaction Satisfaction Dissatisfaction
>90% 80%-89% 70%-79% 50%-69% <49%
2. NPS: Net recommendation value (NPS), also known as net
promoter score, is an index that measures the probability that a customer will
recommend a certain enterprise or service to others (Jennymkaplan, 2016)
NPS= Percentage of Promoters – Percentage of Detractors
For example, the ratio of 5 points (absolute satisfaction) to 50%, and
the ratio of 3 points (dissatisfaction) and below to 20%, the NPS of satisfaction is
30%. Table 3.3 Table 3.4: NPS Scale
Table 3.4: NPS Scale
Excellent Good General Slightly less Poor
>40% 30%-39% 20%-29% 10%-19% <9%
I nterviewer survey has two kind of statistics analysis: content and
thematic analysis. Content analysis interview survey commonly used analysis
methods, the format can be a variety of formats of text, pictures, audio or video.
Social scientists use content analysis to examine patterns in communication in
a reproducible and systematic way (Alan, 2001). This research will adopt
content analysis, and use MicroCase convert qualitative data into quantitative
statistical analysis.
Conclusion
This research is a quantitative study. Data related to customer satisfaction are
collected by telephone return visit. The simple size of the research is 300, the
effective responses is [Link] and Likert scale are used to measure customer
satisfaction. The statistic analysis of this research is content analysis, the method of
this analysis is MicroCase.
DISCUSSION
In this section, the author will summaries from data analysis, and make
discussion for this research.
4.1 Customer Characteristics
In general, V3max customer are junior white- collar workers, private owners/
self- employed and students with higher education. They are mainly converted from
Samsung and iPhone, and their family income is relatively high. Photography,
appearance, memory and cost performance are the main drivers for purchase; High
degree of product satisfaction, but lack of confidence of Vivo. The average use time
of the last mobile phone was 18.9 months, while the average use time of Vivo was
months, slightly lower than the overall level.
V3Max Customer Characteristics:
1. The ratio of male and female buyers of V3max is 1: 1, which is
neutral, basically consistent with the overall distribution in Thailand and
Bangkok;
2. The average age was 32.7 years old, lower than that of Thailand (34.4
years old) , and the proportion of 25- 40 years old was significantly higher than that
of Thailand;
3. The main occupations are white-collar workers (65%, 47% of whom are
junior white- collar workers and 12% are freelancers) , private owners/ self- employed
people (17%) and students (11%);
4. The majority of V3Max customer accept higher education, 70% of
them have college degree or above, and 61% of them have bachelor degree or
above;
5. Income is much higher than Thailand's overall level, with nearly half
of users (49%) earning more than 55,000 baht a month;
6. More than half (52%) of users have used their last mobile phone for more
than 2 years. V3max (Thailand) users are mainly converted from Samsung (46%),
iPhone (23%) and OPPO (6%), with an average use time of 18.9 months. Vivo was
the last mobile phone brand used by 8% of the users, and the average usage time
was
15.2 months.
Customer Buying Drive
The reasons why customer bought V3Max were shown as 4th chapter, the top
four reasons are large memory, performance is better than that of other products at the
same price, pictures taken by V3Max is beautiful, nice design. Besides this, the author
found two features of V3Max customer when the buying V3Max:
1. The main competitors of V3max in Thailand are Samsung (60%), OPPO
(27%), apple (17%) and HUAWEI (11%). Only 6% of users will compare Vivo
with other models;
2. V3max customer main purchasing drivers are high memory (26%),
high cost performance (26%), photo effect (9%) and appearance (8%).
Satisfaction performance
To sum up, V3Max customer totally satisfied with V3max, the
concrete performance is as follows:
3. Customer have high overall satisfaction with V3max, but the NPS value
of repurchase intention and recommendation intention is low, mainly due to
insufficient confidence in the brand;
4. V3max customer satisfaction with their mobile phones mainly focuses
on good photo taking effect, smooth system and fast operation speed;
5. V3max customer dissatisfaction with mobile phones mainly focuses on
low external sound, poor voice signal, fast battery consumption, etc;
6. In terms of detail, most of the indicators in the category of
absolute satisfaction and excellence, while only the battery in the category of
good.
Conclusion
This chapter summarized 4th chapter from 3 aspects: customer characteristics,
buying reasons and customer satisfaction. The V3Max customer are about 30 years
old white- collar young people, because of the V3Max high performance both in price
and function they bought it. After purchase, V3Max customer satisfied with V3max.