The Effect of Perceived Risk on Repurchase Intention and Word – of – Mouth in the Mobile Telecommunication Market: A Case Study from Vietnam

Abstract

This study aims at examining the effect of perceived risk on repurchase intention and positive word-of- mouth (WOM). An online survey method was used to collect data, and 268 questionnaires were properly completed and submitted by subscribers in the Vietnam’s mobile telecommunication market. First-order and second-order CFA were established to analyze and confirm dimensions of perceived risk and its construct by using AMOS software. Then, the structure equation model (SEM) was used to test hypotheses. The results show that perceived risk has a significantly negative impact on repurchase intention. The findings also indicate that there is a negative relationship between perceived risk and word - of - mouth. Based on scientific proof as well as practical evidence, it suggests that the mobile service providers in Vietnam need to prevent any cause that may lead to an increase in terms of consumer’s risky perception in order to retain existing subscribers and attract more potential customers.

Adverting Message and Negative Switching Barrier: Effects on Repurchase Intention and Word-of-Mouth

“…However, the behavioral approach has been criticized because it put too much emphasizes on the behavioral outcomes (such as purchase rate or repeat purchase frequency), and did not take into account the psychological perspective of loyalty (Jacoby & Kyner, 1973;Oliver, 1999;Casielles et al, 2009;Ansari & Riasi, 2016;Tho et al, 2017). On the other hand, attitudinal loyalty focuses more on the psychological explanations of the reasons of customer loyalty (Aaker 1996;Oliver, 1999;Maity & Gupta, 2016).…”

“…Contrariwise, advertising messages can be perceived as intrusive, annoying, or risky (Tho et al, 2017). Most cell phone users concern about receiving risky messages, such as unexpected ads, game invitations, or phishing attacks.…”

“…Furthermore, Stewart & Pavlou (2002) and Ahmadi, Masrour, & Khaksar (2013) argued that cell phone users may be annoyed by many irrelevant and distracting information from message advertisements as an intrusion into their privacy, as a consequence, they will show negative attitudes and repurchase behavior. Also, mobile phone subscribers may perceive message advertisements are risky because they sometime contain unexpected ads, game invitations, even phishing attacks via their cell phone (Tho et al, 2017). Thus, the following hypothesis was proposed:…”

“…In addition, with the fact of intense competitive market in the mobile telecommunication, it is impossible for network operators to charge higher price than others. Moreover, Tho et al (2017) supposed that repurchase intention and positive word-of-mouth are two main dimensions of customer loyalty in the cell phone network sector, and it is suitable to adopt this viewpoint in this study.…”

“…Unlike positive switching barrier, negative switching barrier arises objectively from outside of the current service supplier due to that caused by alternative provides or by psychosocial perspectives around existing customers (such as from friends, colleagues, or family members). This study adopts the similar approach, and then focuses on examining the effect of negative switching barrier on two main manifestations of customer loyaltyrepurchase intention and positive word-of-mouth (Tho, Lai, & Yan, 2017).…”