TABLE OF CONTENTS

2. Literature Review 2
2.1. An Overview of Mobile Telecom 2
2.1.1. Mobile Telecom market definition 2
2.1.2. Telecom in Vietnam 2
2.2. Consumer Choice 3
2.3. Variables of Customer Choice 3
2.3.1. Call quality 3
2.3.2. Price structure 4
2.3.3. Convenience 5
2.3.4. Sales promotion 6
2.3.5. Advertising 7
2.3.6. Reliability 8
2.4. Theoretical Research Model 8
2.5. Hypothesis 8

2. Literature Review

This chapter presents the literature review. It divided into three parts. In the first section, an overview of telecommunications is described, that is, the general definition of telecommunications, then the growing of subscriptions in Vietnam is stated. Secondly, the study will discuss about the customer choice and its previous studies. Finally, the antecedents of customer choice in this study are discussed.
2.1. An Overview of Mobile Telecom 2.1.1. Mobile Telecom market definition
The mobile telecom market is a type of service industry in which customers place much importance not only on how they are served (functional quality), but also and more importantly, on outcome or nature of services they receive and experience which constitute technical quality variables like network quality (Wang & Lo 2002; Gi-Du and James 2004).
Mobile communications markets can be divided by the type of services provided and by the telecommunications networks used for production into the sub-markets for cellular radiotelephony, paging, trunked mobile radio access, and satellite services and networks (see Gerpott, 1998, p. 220; Knauer, 1998, p. 509; Stoetzer & Tewes, 1996, p. 304). In terms of sales revenues and number of customers involved, the mobile cellular telephony market is by far the most important sub-market for mobile communications.

2.1.2. Telecom in Vietnam
According to database of General Statistics Office (GSO), new Subscriber Number in 2010 is estimated 44,5 million numbers, increasing by 0.6 percent in comparison with 2009, including fixed line subscriber numbers of 793 thousand which decreases by 49.1 percent and mobile subscriber numbers of 43.7 million which increases by 2.4 percent. Vietnam had 170.1 million subscribers, including 16.4 million fixed and 153.7 million mobile subscribers, by the end of December 2010, up 35.4 percent from the previous year. The targets by the Government toward 2010 are achieved excessively, making Vietnam be in Top 10 countries having the most Internet users in Asia after 13 years of development. In 2010, fastened management of online game resolves shortcomings that being with Internet development.
Since joining the WTO in 2008, Vietnam has seen major growth in the telecom market. The number of internet subscribers increased by 40% in 2010. This rise has been due to the increasing use of wireless broadband. The mobile sector in particular has become more competitive over the last few years. 3G is providing consumers with an affordable alternative for broadband as the existing fixed-line infrastructure in Vietnam is weak. In April 2010, Vietnam's Ministry of Information and Communications (MIC) announced its intention to invite proposals for a 4G frequency plan in the country. The MIC recently granted 4G licenses to Vietnam Posts and Telecommunications Group (VNPT), Viettel, FPT Telecom, CMC and Vietnam Television, Technology, Investment and Development Company (VTC), which will allow these companies to operate LTE networks for a 12 month trial period. Major players currently in the mobile market, include Viettel with 33.8% market share in 2009, VinaPhone with 27.2% and MobiFone with 27.2%. VinaPhone and MobiFone are currently both subsidiaries of VNPT, but the parent company has recently submitted plans to divest itself of both operators. In January 2011, the government announced that the prime minister had approved the privatization of EVN Telecom, which has less than 1% of the mobile market, by allowing the Corporation for Financing and Promoting Technology to acquire a 49% stake. While the government still has a presence in the sector, it is gradually privatizing the market.

2.2. Consumer Choice
Consumer choice of multiple mobile phone services is examined from the larger discipline of consumer behavior (Blackwell et al., 2001; Beckman and Rigby, 2003; Solomon et al., 2003; Turckwell, 2004). These authors defined consumer behavior in slightly deferent but similar meanings. Blackwell et al. (2001) identified consumer behavior as activities people undertake when obtaining, consuming and disposing of products and services. Beckman and Rigby (2003) see consumer behavior as consisting of activities of individuals in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions. Solomon et al. (2003) suggested that consumer behavior is the process that individuals or groups go through to select, purchase, and use goods, services, ideas, or experiences to satisfy their needs and desires. Turkwell (2004) sees consumer behavior as “the acts of individuals in obtaining goods and services, including the decision processes that precedes and determine these acts”. An organization must have a firm understanding of how and why consumers make purchases decisions so that appropriate marketing strategies are planned and implemented. The consumer goes through a number of stages before finally making a decision to buy. This is referred to as the consumer purchases decision process (Blackwell et al., 2001; Turkwell, 2004). According to Turkwell (2004), the decision process involves problem recognition, information search, and evaluation of alternatives, purchase decision and post purchase evaluation. Blackwell etLJG al. (2001) had earlier suggested that the consumer buying process involves need recognition, search for information, and pre-purchase evaluation of alternatives, purchase, consumption, post purchase evaluation, and divestment. It must be noted, however that consumers who use multiple mobile phone services might not always go through all the stages of the decision making process. Beckmann et al., 1997 argued that the consumer decision making process is dependent on the type of problem-solving effort required.
2.3. Variables of Customer Choice

2.3.1. Call quality
Call quality has been crucial from the inception of telecommunication networks. Operators need to monitor call quality from the end-user's perspective, in order to retain subscribers and reduce subscriber 'churn'. Operators worry not only about call quality and interconnect revenue loss, but also about network connectivity issues in areas where mobile network gateways are prevalent. Bandwidth quality as experienced by the end-user is equally important in helping operators to reduce churn. The parameters that network operators use to improve call quality are mainly from the end-user's perspective.
Call quality are key drivers of customer satisfaction/ dissatisfaction in the mobile communications services market (Gerpott et al., 2001; Lee et al., 2001; Kim & Yoon, 2004; Kim et al., 2004). 3 Keaveney’s (1995) critical incident study of 835 customer-switching behaviors in service industries demonstrated that 44% switched their service providers because of core service failures. In addition, service failures have been ‘‘triggers’’ that accelerate a customer’s decision to discontinue the service provider-customer relationship (Bolton, 1998; Bolton et al., 2000; Kim, 2000; Mozer et al., 2000). Therefore, some technical dimensions of service quality, such as the amount of call drops and call failures 4 may be related to customer churn.
It is also associated with Kim et al.’s (2004)finding in the Korean mobile service market that call quality is the most important direct determinant of customer satisfaction and also with the results of Bolton’s (1998)study that customers who experienced dissatisfaction with billing, service, equipment, or other transactions tend to quickly churn. However, the result also highlights the fact that call failure experiences do not necessarily lead to customer churn. It can be conjectured that while call failures are attributable to many events (e.g., interference, handset malfunction, etc.), call drops are mostly attributable to the mobile service provider. Therefore, call failure is not necessarily as much a determining churn factor as call drop.

2.3.2. Price structure
The use of pricing policies to achieve positive customer retention effects is especially discuss for operators of mobile communications networks because, up to now, competitors were very quick in neutralizing temporary advantages in price level or price structure by introducing modified pricing schemes of their own (see for details Wilfert, 1999, p. 197; Gerpott & KnuKfermann, 1998, pp. 144}147; Stoetzer & Tewes, 1996, p. 307).
The importance of pricing strategies is different depending upon the type of market structure because each market structure has special components that affect the pricing schema and determination of output. Although the pricing strategies are different, it is highly important for a select market structure to choose the optimal pricing policy to insure that the firm is able to be successful and earn long-term profit. It also important to remember that pricing policies are subject to change considering that the business environment is ever changing as well; implementation is critical for a firm to remain stable within its industry and competitive. The importance of pricing strategies influence firms within its market structure to make the necessary adjustments to pricing depending upon the demand of it consumers, most importantly. According to Bobette Kyle (n.d.), “A higher or lower price can dramatically change both gross margins and sales volume”. If a firm sets a price that is not appealing to the consumer then it has a higher chance of losing a sale or forcing a consumer to shop around for a substitute with a cheaper price tag. Ineffective pricing strategies may generate overstock which will then cause the profit to be stored in the warehouse until some type of action is taken to move the overstock through advertising or sale promotions (Kyle, n.d.). Pricing policies are critical depending on the type of market structure to avoid the business failure. The analysis of perfect competition, monopolistic competition, oligopoly, and monopoly market structures builds a foundation on which pricing strategy is necessary to generate the optimal profit.
The implication is that mobile network providers should focus on providing excellent network quality at affordable prices. This could in turn influence positively customer perceived value as customers perceive the benefit derived from the services to be greater than the cost of sacrifice (e.g. money) they lose in exchange for the services. Real network quality should be significantly evidenced in all core mobile telecom services and at affordable prices in terms of recharging rates, the call charge per minute/second, reconnection rates, number portability fees, among others. Where this quality is poorly delivered to consumers it could result in influencing their commitment to the service provider (Bansal et al. 2005), induce intention to switch and negative word-of-mouth (Gerrard, & Cunningham 2004; Keaveney 1995).

2.3.3. Convenience
Convenience and network quality dimensions found to be relatively most important dimensions affecting users’ perception. The dimension of reliability did not reflect significant effect on customers’ perception of quality. (Muhammad Asif Khan, 2010, p.164) Consumer choice of multiple mobile service is particularly considered to be influence by such factors as economy of purchase or use, convenience, efficiency in operation or use, and dependability of service or use (Shapiro, 1996); reference group influence, life style and social class (Turckwell 2004); and attitudes, personality and opinion leadership (Solomon et al. 2003). Karahanna found that usefulness influences attitude (judgment) substantively and consistently. In our model, judgment is conceptualized as perceived value. Thus if a technology performs up to expectation, provides gains over alternative services and helps consumers in difficult situations (i.e. useful), consumers are likely to evaluate the use of the technology favorably. Similarly, as it improves on its ability to deliver convenience, effectiveness and efficiency in performing tasks, mobile Internet services appeals more to consumers, especially if the consumer is traveling.
Another area that has been of immense interest with regards to literature on consumer brand decision making is the convenience with which consumers are able to obtain their choice of brands which is referred to as accessibility. Research on consumer memory and choice has been dominated by paradigms that implicitly assume the availability of the brand, whether it is physically present in the choice situation or symbolically present in working memory as a member of a stable evoked set of brands in a product category. Research attention, therefore, typically has focused on the accessibility of brand information, given the presence of the brand. Recently, brand accessibility has attracted some attention, but only from the perspective that the product category is the stimulus activating brand retrieval processes (Alba et al., 1991).
Considering Farquhar‘s (1989) approach of brand equity, there was an accessible attitude he refers to and this is related to how quickly a consumer can retrieve brand elements stored in his/her memory (brand awareness). The attitude activation is sometimes - automatic (it occurs spontaneously upon the mere observation of the attitude object) and sometimes - controlled (the active attention of the individual to retrieve previously stored evaluation is required). It was also proven (Farquhar, 2000) that only high accessible attitudes (brands with a high level of awareness) can be relevant when purchasing or repurchasing a brand.

2.3.4. Sales promotion
In order to compete successfully in this situation, the cellular operators have developed critical promotion strategies that include the drop age in the air time rates, free sms, free credit and small top ups. The aim of such strategies is not only to beat the competition and retain the customers; it also triggers the new customers by offering the attractive packages. There is no doubt that the ultimate objective of every company is to generate the certain level of sales that may create profit to continue the business activities. Every business develops the sales estimate and develops the strategies to achieve it, especially in the service industry. This is the critical link between the sales promotion and customer loyalty. The sales battle has created the need of continuously tapping the older customers and creating attraction for the perspective customers. The national and multinational companies are spending millions of the dollars to give a boost to the sales in the short time. Numerous research studies have been conducted on one of very important marketing promotion tool, Sales Promotion. The researchers of social sciences have a long debate on the influence of sales promotion on the behavior of customers. The general observation is that sales promotion motivates consumers to act positively towards offering of company. The customers are satisfied and they will keep on purchasing the products even on the normal price. Contrary to this, Dodson & Taybout, (2001) found that promotion acts as an external stimulus and there is less probability that the customers will repurchase the products after the campaign is over. It may change the customer attitude to purchase the product on the normal price. Price discounts may also encourage low-probability purchasers to try. However they are customers who are not likely to make repeat purchases and thus the promotions have a negative impact on long-term sales. Price is used as a measure of quality for many service consumers. In certain situation, the price cuts sometimes devalue the worth of brand in the mind of the customers. In US, this study was conducted in the retail businesses. Even Das (2009) conducted the same for the Indian Retail market. The same study was conducted in Nigeria in 2009. In Pakistan, the impact of sales promotion on profitability and customer’s preference has been analyzed in the shoe industry (Zehra Rizvi & Malik, 2011). The uncertainty associated with the impact of sales promotion on the customer behavior in context to the loyalty has developed the need for the study. There is less work is done in Pakistan particularly in the service sector like telecommunication. Thus, this study aims to cover the empirical gap in literature.
Marketing literature supports this fact that the regular customers, who purchase the product frequently, are profitable and are primary concern of the companies (Nagar, 2009). Peattie & Peattie (1994) defined the sales promotion as marketing activity specific to a group of customers, a particular place and/or time bound, which encourages an immediate or direct response from customer by offering additional valuable benefits. It highlights the concept of the commitment that every supplier expects from its customers. In order to cater the need of making the repeat purchase possible, the companies develop extensive marketing programs to retain and motivate the buying behavior of the customers. The concept of sales promotion has been discussed in different ways in literature. It has been described as a pressure that is time bound and applied to customers to stimulate the process of trial, choice and ultimately the purchase of the product/brand (Marketing, 2011). There have been different uses of sales promotion described in the literature. It is used to persuade the new customers to make the decision of the purchase of the particular brand/product, lowers the switching barrier/price of the brand/product for the brand switchers to attract them, encourages the competitors loyal to change the buying decision and provides the incentives/ extra value to own loyal customers (Peattie & Peattie, 1994). Sales promotion has multiple effects on the purchase decisions of the customers. It may influence the quantity purchased and responsible for the switching in brands (Nijs, 2011). The phenomenon of sales promotion can be divided into two different groups. The activities that are used to target the consumer such as free gifts, bonuses, free samples etc are called consumer sales promotion methods. The other category is called the trade sales promotion that is directed towards the members of distribution channels (wholesalers, distributors, retailers or sales persons) in the form of free merchandise, sales contest and coupons (Kotler, Armstrong, Agnihotri, & haque). Sales Promotion has been explained in context to the monetary and non monetary promotions as well. According to Luk & Yip (2008) monetary promotions are incentive-based like convenience, saving in cost, quality and provide immediate rewards whereas non-monetary promotions are related to the self esteem and entertainment etc. Monetary sales promotion aims to provide the instant benefits to the customers such as coupons, price packs, shelf discount, free top ups while non monetary are non transactional in nature and tend to be more relationship based (Campbell & Diamond, 1990). Monetary sales promotion does have negative impact on the brand value of a product. The price reductions may enforce the customer to switch to other brand and thus it may eliminate the criteria of the quality and develop price elasticity in the purchase of the product (Aaker, 1996). Therefore, the monetary promotions are more preferred over non monetary because of their power to persuade the customer to change their purchase decisions (Luk and Yip, 2008). The discussion on sales promotion shows that its impact depends upon the level of commitment of the customer. Mariole and Elina (2005) argues that the customers who are less committed exhibit the high level of attention towards the sale promotion and those who are highly committed show lower level of influence.

2.3.5. Advertising
The firm’s marketing activities are a direct attempt to reach, inform, and persuade consumers to buy and use its products. These inputs to the consumer’s decision- making process take the form of specific marketing mix strategies that consist of the product itself; mass media advertising; direct marketing; personal selling, and other promotional efforts; pricing policy; and the selection of distribution channels to move the product from the manufacturer to the consumer.
Two important papers are Clarke (1976) and Assmus, Farley and Lehmann (1984), who find evidence of a good will effect of advertising for U.S. industries with a depreciation rate of about .4 and 0.3, respectively. Other topic arises from Borden (1942). He makes a distinction between advertising that increase selective (i.e., firm/brand) and primary (i.e., industry) demand.
At the beginning of 80s, with the new empirical industrial organization a second group of research emerged using data at more disaggregated levels (brand and even household levels), more sophisticated econometric methodology and models where consumer´s and firm’s conduct is emphasized, specifying and estimating explicit structural models. Many of them examine the impact of advertising on brand purchase decisions and focus on a narrow set of consumer goods: frequently purchased consumer goods (like cereals, toilet tissues, detergent, coffee, yogurt and ketchup)

2.3.6. Reliability
Reliability is the ability to perform the proposed service dependably and accurately. This includes such qualities as dependability, consistency, accuracy, and “right first time” (Zeithaml et.al., 1990).

2.4. Theoretical Research Model

2.5. Hypothesis
H1. Higher levels of call quality are associated with higher levels of students’ choice
H2. Lower price will have positive impact on students’ choice
H3. Reliability of the network has a positive effect to the choice to use the service
H4. The more convenience of the network has the more positive effect to the choice to use the service
H5. Sale promotion has positive impact on students’ choice of network
H6. Advertising has positive impact on students’ choice of network
Perceived Value
Zeithaml (1996) and Holbrook (2006) defined the perceived value as “the results or benefits customers receive in relation to the total cost (which include the price paid plus other costs associated with the purchase), or the consumers’ overall assessment of what is received relative to what is given”, i.e. a trade-off between perceived benefits and perceived costs (Lovelock, 2000). Holbrook proposed that the perceived value can be regarded as a consumer’s overall evaluation of the utility of a service or product based on the perceptions of what is received and what is given. Holbrook referred to this evaluation as the comparison of a product or service’s “get” and “give” mechanism. Moreover, in their study of mobile telephony services in Canada, Turel et al. (2006) argued that the level of the perceived value is a key factor which affects customer satisfaction.
Recent research studies suggest that perceived value may be a better predictor of repurchase intentions than either satisfaction or quality (Cronin et al., 2000; Oh, 2000). Perceived value can be analyzed with either a self-reported, unidimensional measure (Gale, 1994) or a multidimensional scale (Petrick & Backman, 2002; Sheth, Newman, & Gross, 1991). Past studies have suggested that perceived value is an important antecedent to satisfaction and behavioral intentions (Cronin et al., 2000; Dodds, Monroe, & Grewal, 1991; McDougall & Levesque, 2000)
Many scholars agreed upon the four features that are the main drivers of the customer value in mobile telephony services. These features are network quality, price, customer service, and personal value and benefit (Danaher et al. 1996; Bolton, 1998; and Booz et al., 1995 in Eniola, 2006). Network quality includes network coverage (indoor and outdoor), voice clarity, and connection quality. Price is the amount paid in order to access the service and use the network. Customer service includes the quality of the service delivered to the customer such as customer care, maintenance service, billing, etc. Finally, personal value and benefits is the level of perception of benefits from using the mobile service by individual customers.
Service Quality
For measuring the customer satisfaction in regard to the quality of services delivered to the customer, it is necessary to review the concept of quality of service. It usually refers to the customer perceived quality as it is basically defined from a customer’s point of view and not from the producer’s point of view.
Gronroos (1984) defined the consumer perceived quality as the confirmation or disconfirmation of a consumer’s expectations of service compared to the consumer’s perception of the service actually received. Consumers of product or service will make the judgment about the quality of the product or service relative to what they want. They view a provider’s service quality by comparing their perceptions of service experiences with their expectations of what the service performance should be.
Researchers have emphasized distinct conceptualizations of quality (Holbrook, 1994). In operation management, reliability and fitness of use define quality; whereas in marketing and economics, attributes of products constitute quality. In services, quality is concerned with the overall assessment of the services (Parasuraman et al., 1988). Garvin (1988) identified performance, features, conformance, reliability, durability, serviceability, aesthetics, and customer perception of quality based on service provider’s image.
The service quality model, SERVQUAL based on the expectancy disconfirmation theory (Parasuraman, Zeithaml, & Berry, 1985, 1988), has been widely applied in the tourism literature. However, Fick and Ritchie (1991) argue that SERVQUAL scale does not adequately address both affective and holistic factors which contribute to the overall quality of ‘service experience’. In Otto and Ritchie’s (1996) study, differences between service quality and experience quality are discussed.
The original study by Parasuraman et al., (1988) presented ten dimensions of service quality.
- Tangibles: the appearance of physical artefacts and staff members connected with the service (accommodation, equipment, staff uniforms, and so on).
- Reliability: the ability to deliver the promised service.
- Responsiveness: the readiness of staff members to help in a pleasant and effective way.
- Competence: the capability of staff members in executing the service.
- Courtesy: the respect, thoughtfulness, and politeness exhibited by staff members who are in contact with the customer.
- Credibility: the trustworthiness and honesty of the service provider.
- Security: the absence of doubt, economic risk, and physical danger.
- Access: the accessibility of the service provider.
- Communication: an understandable manner and use of language by the service provider.
- Understanding the customer: efforts by the service provider to know and understand the customer.
These five dimensions have been used successfully across a plethora of industries, notwithstanding its flexibility and popularity (Linda et al., 2009). However, in general research on customer satisfaction is able to measure the current performance but cannot be considered as guidance to improve the customer’s experience as it cannot relate to the behavior of the customer to the actual behavior that results from those perceptions (Kotler et al., 2006).
Measuring service quality is a better way to dictate whether the services are good or bad and whether the customers will or are satisfied with it. A researcher listed in his study: “three components of service quality, called the 3 “Ps” of service quality” (Haywood 1988, p. 19-29). In the study, service quality was described as comprising of three elements:
- Physical facilities, processes and procedures;
- Personal behavior on the part of serving staff, and;
- Professional judgment on the part of serving staff but to get good quality service. “Haywood 1988, p. 19-29).
Customer Satisfaction
The most widely accepted theory to explain customer satisfaction is the Expectancy-Disconfirmation theory proposed by Lewin (1938). This theory suggests that consumers have expectations about products or services before consumption. As the product is consumed or the service is rendered, customers compare their perceptions of consuming the product or service to their expectations. Perceptions that exceed a customer’s expectations result in a state of satisfaction, leading to a positive attitude toward the product or service and influencing positive future behavioral intentions (Carpenter, 2007; Tse and Peter, 1988). If a customer’s perceptions fall short of their expectations, they will experience negative disconfirmation and, consequently, dissatisfaction.
To further understand customer satisfaction, previous research has identified both antecedents to and consequences of satisfaction. Marketing researchers have examined perceived value as an antecedent of satisfaction (Babin et al., 1994; Jones et al., 2006; McDougall and Levesque, 2000; Day and Crask, 2000). In particular, they identified a strong linkage between hedonic/utilitarian values and satisfaction, suggesting that both values have a positive effect on customer satisfaction (Babin et al., 1994; Jones et al., 2006).
Further, prior research has also demonstrated that customer satisfaction significantly influences future behavioral intentions (Oliver, 1980; Reichheld and Sasser, 1990; Jones et al., 2006). If the role of satisfaction is examined in conjunction with both its antecedents and consequences, it can be interpreted that satisfaction is produced in a consumer’s mind through positive perceptions of value regarding products or services. Further, satisfaction leads to positive future behavioral intentions, such as repurchase intention, positive word-of-mouth intention, and/or willingness to recommend.
Levy (2009, p. 6) in his studies, suggested three ways of measuring customer satisfaction:
- A survey where customer feedback can be transformed into measurable quantitative data.
- Focus group or informal where discussions orchestrated by a trained moderator reveal what customers think.
- Informal measures like reading blocs, talking directly to customers.
Asking each and every customer is advantageous in as much as the company will know everyone’s feelings, and disadvantageous because the company will have to collect this information from each customer (NBRI, 2009). The National Business Research Institute (NBRI) suggested possible dimensions that one can use in measuring customer satisfaction, e.g.:
- Quality of service
- Innocently
- Speed of service
- Pricing
- Complaints or problems
- Trust in your employees
- The closeness of the relationship with contacts in your firm
- Other types of services needed
- Your positioning in clients’ minds
Behavioral intention
Behavioral intention can be defined as the degree to which a person has formulated conscious plans to perform or not perform some specified future behavior (Ajzen and Fishbein, 1980). According to the theory of reasoned action (Fishbein and Ajzen, 1975), behavioral intention is the motivational component of a volitional behavior and is highly correlated with the behavior itself (Jang and Feng, 2007). Although there are still arguments about the level of correlation between behavioral intentions and actual action, it seems to be generally agreed that behavioral intention is a reasonable variable for predicting future behavior (Quelette and Wood, 1998). Thus, a good understanding of the determinants of favorable post-dining behavioral intentions such as saying positive things about the restaurant, recommending the restaurant to others, and repeat purchasing can provide practical guidance for restaurant practitioners.
Another construct that is highly related to behavioral intentions is customer satisfaction. It is regarded as one of the key antecedents of post-purchase behavioral intentions because customer satisfaction has a positive effect on the customer’s attitude towards the product or service and can reinforce the customer’s conscious effort to purchase the product or service again in the future (Oliver, 1980, 1999).
Some empirical studies have reported that service quality has a direct effect on behavioral intentions (e.g.,Cronin et al., 2000; Mohr & Bitner, 1995; Zeithaml et al., 1996), while others have shown that quality has an indirect path to behavioral intentions through satisfaction (Anderson & Sullivan, 1993; Anderson et al., 1994; Brady et al., 2001; Cronin & Taylor, 1992; Rust & Oliver, 1994).
Research also has shown perceived value and satisfaction to be direct antecedents of behavioral intentions (Cronin et al., 2000; Petrick & Bachman, 2002a; Tam, 2000). In a study of restaurant patrons, Babin et al. (2005)reported that both perceived value and satisfaction had positive and significant effects on positive word-ofmouth communication. Recent research has suggested that perceived value may be a better predictor of repurchase intentions than either satisfaction or quality (Cronin et al., 2000; Oh, 2000). In a study using a sample of hotel guests, Hartline and Jones (1996) reported that both perceived service quality and value had a direct and positive effect on guests’ word-of-mouth communication, with value having a stronger effect than quality. In a study of fine-dining patrons’ pre- and post-experience, Oh (2000) reported value to be a superior predictor of repurchase intentions, both before and after their dining experience.