The effects of service innovation on customer retention: An integration of customer satisfaction

Ta Thi Dao, Chia Han Yang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

Services are becoming driving forces of economies currently resulting in much attention on innovation of new services from firms to satisfy customer needs. Customer satisfaction and their behavioral intention play a critical role in firm's performance and have been investigated carefully in both business and academic practices. Many previous studies have conducted to investigated the key role of service innovation on firm's performance and firm's competitiveness. But, few studies in the service literature have simultaneously examined the effects of service innovation on customer satisfaction as antecedents of customer retention, especially in telecommunication. This study focuses on addressing the end user issue of service innovation. This study examines service innovation from end consumers' perspective. A data of 400 telecom service users sample from Vietnam is collected for empirical hypotheses testing of relationship among variables. The conceptual model investigates the relevant relationships among the constructs by using confirmatory factor analysis (CFA) and structural equation modeling (SEM). Findings show that two components of service innovation namely interactive and supportive are the key determinants of customer satisfaction and customer retention. The paper also includes a discussion on the theoretical and managerial implications of the research results.

Original languageEnglish
Title of host publicationPICMET 2014 - Portland International Center for Management of Engineering and Technology, Proceedings
Subtitle of host publicationInfrastructure and Service Integration
EditorsDundar F. Kocaoglu, Gary Perman, Dilek Cetindamar Kozanoglu, Tugrul U. Daim, Timothy R. Anderson, Kiyoshi Niwa
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1958-1965
Number of pages8
ISBN (Electronic)9781890843304
Publication statusPublished - 2014 Oct 10
Event2014 Portland International Center for Management of Engineering and Technology, PICMET 2014 - Kanazawa, Japan
Duration: 2014 Jul 272014 Jul 31

Publication series

NamePICMET 2014 - Portland International Center for Management of Engineering and Technology, Proceedings: Infrastructure and Service Integration

Other

Other2014 Portland International Center for Management of Engineering and Technology, PICMET 2014
CountryJapan
CityKanazawa
Period14-07-2714-07-31

All Science Journal Classification (ASJC) codes

  • Management of Technology and Innovation
  • Strategy and Management
  • Transportation

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  • Cite this

    Dao, T. T., & Yang, C. H. (2014). The effects of service innovation on customer retention: An integration of customer satisfaction. In D. F. Kocaoglu, G. Perman, D. C. Kozanoglu, T. U. Daim, T. R. Anderson, & K. Niwa (Eds.), PICMET 2014 - Portland International Center for Management of Engineering and Technology, Proceedings: Infrastructure and Service Integration (pp. 1958-1965). [6921025] (PICMET 2014 - Portland International Center for Management of Engineering and Technology, Proceedings: Infrastructure and Service Integration). Institute of Electrical and Electronics Engineers Inc..