Isu 103 ISU10121108g 1 PDF

Department of Business Administration
I-Shou University
Master Thesis
Study of factors Influencing
the Customer Loyalty to Online Games at
Vatgia Company
Advisor: Tai-Chi Wu
Co-Advisor: Tran Van Trang
Graduate Student: Nguyen Tien Dung
July 2014

Acknowledgements
I am expressing my thankfulness and praise to the tutors of the Master thesis, Dr. Tai-Chi Wu
and Dr. Tran Van Trang for the valuable guidance and advice, which help me in completing the
thesis.
My appreciation and gratitude are also extended to Vietnam Price Joint Stock Company,
especially my manager Mr. Bui Trong Tuan his generosity and his tremendous knowledge for
giving continuous and unlimited motivation from the beginning to the end of master thesis.
Not forgetting, an honorable mention goes to my family for their blessing and my colleagues for
their help and wishes for the successful completion of this Master thesis.
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ABSTRACT
Purpose – This paper aims to explore the factors affecting consumers' loyalty toward online
games of Vietnam Price Joint Stock Company.
Methodology approach – The research conducts two approaches to collect data: qualitative
research (personal interview) and quantitative research (questionnaire). This study adopted
structural theory model to analyze the data.
Findings – The results focusing on key factors influencing the success of online games and
customer loyalty. Then to retain and improve customer loyalty to online games of Vietnam Price
Joint Stock Company
Practical implications – First, the research found out factors and component creating customer
satisfaction, playing intention and customer loyalty. Secondly, base on the relationship between
the factors that affect customer loyalty for each group of customer classified by sex, living place,
tools for playing, time for playing games, administrators can make the appropriate business plan
for each different market segments. Third, considering behavior and attitude of customers toward
online games to set the foundation for further online games investment projects. In the view of
online gaming market, especially in Vietnam, this paper is one of the few studies that examine
customer loyalty to online games.
Key words: consumers' loyalty, online games, service quality, price, playing intention, Vietnam

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Table of contents
Acknowledgements ........................................................................................................................... i
ABSTRACT .....................................................................................................................................ii
List of tables ..................................................................................................................................... v
List of figures .................................................................................................................................. vi
CHAPTER 1: INTRODUCTION .................................................................................................... 1
1.1 Background of the study ......................................................................................................... 1
1.2 Overview about Vietnam’s online game industry .................................................................. 1
1.3. Research objectives ............................................................................................................... 5
1.4. Research questions................................................................................................................. 5
1.5. Scope of research ................................................................................................................... 5
1.6. Signification of research ........................................................................................................ 5
CHAPTER 2 LITERATURE REVIEW........................................................................................... 7
2.1 Online game service ............................................................................................................... 7
2.1.1 Online game definition..................................................................................................... 7
2.1.2. Kinds of online games..................................................................................................... 7
2.2. Concept of customer satisfaction ........................................................................................... 8
2.2.1. What is customer satisfaction? ........................................................................................ 8
2.2.2. Customer satisfaction with online games: ...................................................................... 9
2.3. Customer loyalty .................................................................................................................. 10
2.3.1. Definition of customer loyalty ...................................................................................... 10
2.3.2. Why should we care about customer loyalty? .............................................................. 11
2.3.3. How to build customer loyalty? .................................................................................... 12
2.3.4. Customer loyalty with online games ............................................................................. 12
2.4. Factors affecting customer satisfaction ............................................................................... 12
2.4.1. Relationship between price and customer satisfaction ................................................. 12
2.4.2. The relationship between service quality and customer satisfaction ............................ 14
2.5. Relationship between customer satisfaction and customer loyalty ..................................... 15
2.6. Prior research about online games and customer loyalty .................................................... 16
2.7. Research model and hypothesis ........................................................................................... 18
2.7.1. Research hypothesis ...................................................................................................... 18
2.7.2. Research model ............................................................................................................. 20
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CHAPTER 3: METHODOLOGY.................................................................................................. 21
3.1. Quality research ................................................................................................................... 21
3.2. Quantitative research ........................................................................................................... 22
3.2.1. Structure of questionnaire ............................................................................................. 22
3.2.2. Content of questionnaire ............................................................................................... 22
3.2.2. Sampling ....................................................................................................................... 24
3.3. Data analysis ........................................................................................................................ 24
3.3.1 Reliability analysis ......................................................................................................... 24
3.3.2 Exploratory factor analysis ....................................................................................... 25
3.3.3 Linear regression ...................................................................................................... 25
CHAPTER 4: DATA ANALYSIS AND RESULTS ..................................................................... 26
4.1. Respondents profile ............................................................................................................. 26
4.2. Reliability Analysis ............................................................................................................. 32
4.2.1. Reliability of service quality scale ................................................................................ 32
4.2.2. Reliability of price factor scale ..................................................................................... 33
4.2.3. Reliability of customer satisfaction scale...................................................................... 34
4.2.4. Reliability of playing intention scale ............................................................................ 34
4.2.4. Reliability of customer loyalty scale ............................................................................. 35
4.3. Exploratory Factor Analysis (EFA) ..................................................................................... 36
4.3.1. EFA of service quality and game price ......................................................................... 36
4.3.2. EFA of customer satisfaction, intention to play and customer loyalty. ........................ 38
4.3.3. Adjust research model based on EFA result ................................................................. 39
4.4. Linear regression analysis.................................................................................................... 40
4.4.1. Relationship of customer satisfaction and intention to play ......................................... 40
4.4.2. Relationship of intention to play and customer loyalty ................................................ 41
CHAPTER 5: CONCLUSION ....................................................................................................... 43
5.1. Discussion ............................................................................................................................ 43
5.2. Research Summary .............................................................................................................. 43
5.3. Limitation and future Research ........................................................................................... 44
REFERENCES ............................................................................................................................... 45
APPENDIX .................................................................................................................................... 47
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List of tables
Table 2.1: Revenues of Vietnam’s IT Industry in three sub sectors (Million USD) ....................... 2
Table 2.2: Numbers of Workers, revenue and wage per worker in 2011 - 2012 ............................ 3
Table 4.1. Customer habitation ..................................................................................................... 27
Table 4.2 Cronbach’s Alpha of service quality scale .................................................................... 32
Table 4.3: Cronbach’s Alpha of game price factor ...................................................................... 33
Table 4.4: Cronbach’s Alpha of customer satisfaction factor ....................................................... 34
Table 4.5: Cronbach’s Alpha of playing intention factor .............................................................. 34
Table 4.6: Cronbach’s Alpha of customer loyalty factor ............................................................. 35
Table 4.7: KMO and Bartlett's Test............................................................................................... 36
Table 4.8 Factor analysis of variable service quality and price .................................................. 36
Table 4.9 KMO and Bartlett's Test............................................................................................... 38
Table 4.10 Factor analysis of variable satisfaction, intention to play and loyalty ....................... 38
Table 4.11a : The Regressions of satisfaction and intention to play ............................................. 40
Table 4.11b : The Regressions of satisfaction and intention to play ............................................. 41
Table 4.12a The Regressions of intention to play and customer loyalty ...................................... 41
Table 4.12b The Regressions of intention to play and customer loyalty ...................................... 42
Table 5.1. Results of testing research hypothesis .......................................................................... 44
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List of figures
Figure 1.1: Trend and transition of online games ........................................................................... 4
Figure 2.1. Research model ........................................................................................................... 20
Figure 4.1. Customer gender ......................................................................................................... 26
Figure 4.2. Customer age .............................................................................................................. 26
Figure 4.3. Tools for playing game .............................................................................................. 28
Figure 4.4. Places to play games ................................................................................................... 28
Figure 4.5. Time spend on online games....................................................................................... 29
Figure 4.6. The time period of the day play online games ............................................................ 29
Figure 4.7. Money spend on online games per month .................................................................. 30
Figure 4.8. Percent of total money spending in game spend on VNP‘s game? ............................ 30
Figure 4.9. Reason charging money for online games .................................................................. 31
Figure 4.10. Source of news and information updating about online games ................................ 31
Figure 4.11 Adjust model .............................................................................................................. 39
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CHAPTER 1: INTRODUCTION
1.1 Background of the study
In Vietnam, game is not really called an industry. However, Vietnam game market has been
developing quickly in recent years. Vietnamese businesses have been really paying attention to
online game as an industry for 4 – 5 years.
According to game releasing schedule in Vietnam published in trusted website

http://hoso.gamek.vn, there has been 40 online game title officially launched in Vietnam in the
first quarter of 2014. Moreover, business results of major game companies in Vietnam such as
Vinagame, Sohagame, FPT Game, VTC game is quite good. In 2013, revenue of game market in
Vietnam was approximately 6 bilions VND, of which Vinagame occupied about 2300 – 3600
billions VND. Investment cost in online game is not too high, but online game bring big profit.
Also, Vietnam game companies mainly import games from China. Most of online games in
Vietnam now originally from Chinese version and buying from China.
In competitive online gaming industry, it is not easy to gain customers. However, retaining
customers and increase customer loyalty is much more difficult. So that, deep understanding of
online games customers’ behaviors and their needs is necessary for online game publishers.
There is a lack of studies on online gaming in Vietnam in general, especially in customers’

behaviors and loyalty. This research intends to indicate main factors affect customer satisfaction
and loyalty that create success of online games. Then, to improve and develop online gaming
customer loyalty of Vietnam Price Joint Stock Company
1.2 Overview about Vietnam’s online game industry
Internet plays an important role in society and business activities nowadays. By the end of 2013,
there were 31,196,878 people use Internet in Vietnam, accounting for 35.49% of the population
ratio (available at www.thongkeinternet.vn). In Vietnam, about 62% of users access the Internet
every day and they spend on average about 2,5 hours on the internet per day. In big city people
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access internet regularly than smaller cities. In Hanoi, internet users spend more than 160
minutes, in Ho Chi Minh City for more than 150 minutes per day for internet access (available at
www.vecita.gov.vn).
Table 2.1: Revenues of Vietnam’s IT Industry in three sub sectors (Million USD)
Revenue of IT industry 2009 2010 2011 2012 Growth
Total revenue of IT industry 5220 6167 7629 13.663 79%
Hardware industry 4100 4627 5631 11.326 101%
Software industry 680 850 1064 1172 10%
Digital content industry 440 690 934 1165 25%
Source: Vietnam Information and Communication Technology White Book 2012
The official report Vietnam Information and Communication Technology White Book 2012
(p.45) indicates this clause clearly (see table 2.1). In the whole IT industry, Digital content
occupied the smallest share but it possessed higher growth rate than software industry.
Table 2.2 illustrates numbers and wages of employees in Vietnam’s IT industry. Hardware
workers earn the least despite of biggest revenue out of three. Despite digital content is the
smallest industry in term of workers, they have the highest wage per person when compared with
the other two industries.
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Table 2.2: Numbers of Workers, revenue and wage per worker in 2011 - 2012
IT Industry Number of Workers Revenue per Worker Wage per Worker

(Person) (USD/Person/Year) (USD/Person/Year)
2011 2012 2011 2012 2011 2012
Hardware 127.548 167.660 44..148 67.555 2.201 2.279
Software 71.814 78.894 14.816 14.855 5.123 5.034
Digital content 50.928 60.200 18.339 19.352 4.896 5.267
Source: Vietnam Information and Communication Technology White Book 2012
Trend of online games nowadays is “Freemium game”.
Freemium game is “offering a game, product or service free of charge while charging a premium
for advanced features, functionality, or related products and services. also referred to as Free to
play or F2p” (Casual Games Association, 2012). So freemium game means free download and
pay in process of playing game, not everything in game is free. The figures below shows trend of
online games nowadays:
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Figure 1.1: Trend and transition of online games
According to an official report of Ministry of Information and Communications in the first

quarter of 2014, the total revenue of the online game industry in 2013 was about 6.000 billion
VND, of which mobile games occupied 1.000 billion VND. Currently there are more than 200
online games operating nationwide (including client games and web games), and more than 100
games with mobile game. The number of domestic game publishers are about 40 companies and
20 units of game studio. Revenue from games produced in Vietnam in 2013 accounted for 10% to
15% of total industry revenue (approximately 500 billion VND). This figure is surprising because
previously it is thought that game "made in Vietnam" has failed in income.
Thus, in terms of position, Vietnam online games are not playing a small role as it has the
potential to bring about 6.000 VND billion in direct revenue and 20.000 billion VND in indirect
revenue (from internet shop, Personal computer sales and other accessories). The coverage of
game industry is the 20 million customers (both online and mobile systems). The number of
direct labor for game in Vietnam currently has up to 7.000 people (indirect labor is about 100,000
people). In fact, from these figures we can see that effective performance of employees for game
industry are making a lot of money than other sectors. (Interesting figures of online gaming in
Vietnam, 2013, available at www.genk.vn/internet/nhung-con-so-an-tuong-ve-nganh-game-
online-viet-nam-20130703152229096.chn. Downloaded on December 3rd 2013). “Online game
market of Vietnam is bigger than Thailand and has grown as the largest market in South East
Asia” (Nguyen Anh Dzung – CEO Sgame, 2012).
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1.3. Research objectives
- To identify key factors those influence the success of online games and customer
loyalty.
- To estimate the impact of key factors to customers’ satisfaction
- To measure the impact of customers’ satisfaction to customer loyalty with online
games
- To understand customers’ demands with online games, then to meet their needs.
- To build and improve customer loyalty and increasing customers’ playing time with
online games released by Vietnam Price Joint Stock Company
1.4. Research questions
- Which factors affect customers’ loyalty and contribute to the success of online games?
- How do these factors influence customers’ loyalty?
- How do customers’ satisfactions impact customers’ loyalty with online games?
1.5. Scope of research
- Objects of research: key factors of online games, customers’ satisfaction, customers’

loyalty and the relationship among these subjects
- Survey respondents: customers who are playing games online of Vietnam Price JSC
1.6. Signification of research
- Research provides information and scientific arguments that not only Vietnam Price
JSC but also other Vietnam game publishers may propose specific policies to improve
the level of customer loyalty to online games of company through the application of
the factors that highly influence the level of customer loyalty.
- Research shows the relationship between the factors that affect customer loyalty for
each customer groups have different characteristics of sex, living place, tools for
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playing, time for playing games, etc. Since then, administrators can make the
appropriate policy for each different market segments.
- Research contribute to developing theory in the field of Marketing Management,

contribute knowledge about key factors influencing and impact of these factors to
customer loyalty for Vietnam Price JSC in particular and for other game publishers in
general.
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Chapter 2 LITERATURE REVIEW
2.1 Online game service
2.1.1 Online game definition
“Online gaming refers to playing the game over the network using a personal computer, a game
console, a PDA, or a smart phone” (Ferretti, Roccetti, and Salomoni, 2014).
Online game can be understood as a game but if people want to play, they must have an internet
connection to the game. Simultaneously with this genre you still play with everyone in the world
without distance limitation. In online game, people will meet and fight as well as communicate
with other players like in real life.
2.1.2. Kinds of online games

There are many types online games that keep people entertain for hours. Common types of online
games classified by game play are:
- Massively Multiplayer Online Role-playing Game (MMORPG): MMORPG is one the

most popular online game. It can be understandable as an online role-playing game that
players can control one character or multiple characters with variety system of level,
diverse skills. These characters are equipped with various items in many classes of
character in battlefield environment, this caste is very clear. Often in Vietnam, MMORPG
players focuses on the level plow rather than playing for fun.
- First person shooters: Playing game with a machine or a gun to shoot at the object. Often in
a futuristic setting, these online games allow players to take the role of a soldier.
- Sports games: Sport lovers can enjoy these online games from their house. One can
compete against other players, team or the computer itself. These games have a variety of
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level to experience. Some traditional sports games are soccer, basketballs, tennis games
such as FIFA online, Freestyle.
- Cards games: Traditional gambling cards with many selection of spades, poker, etc.
- Real Time Strategy games (RTS games): Usually known as PC games. These games
require caculating and rational control of players such as Starcraft, Warcraft, Age of
Empires. This kind of game is quite interesting and timely.
- Casual games: Classic arcade style games, nonviolent puzzle. This kind of games do not
take time consuming. Most of people play just for fun who are teenagers, businessmen,
children, or people with limited time budgets. The characters level and playing time are
not important. These games support items in game for players items such as clothing,
pets. If wanted desired, players can spend money on level up cards and all sorts of
characters decorating.
- Besides, types of online games classified by platform are:
- Webgame (Browser game): A game that is played on a web browser. It does not require
any client-side software to be installed, apart from the web browser (iResearch Consulting
Group (2009), p. 5, 9).
- Game client: Players have to install game software in their computer. This software
connects to game server. The server provides the connections and sends information back
to the game client.
2.2. Concept of customer satisfaction
2.2.1. What is customer satisfaction?
One difficulty in examining the causes and results of customer satisfaction is that there is no
consensus in the composition of satisfaction (Caruana et al., 2000, p. 1338 - 1352).
Customer satisfaction is their reaction to the perceived difference between their perceived
experience and expectations (Parasuraman et al., 1988). That means the experience that
customers already have before using service and results after the service is provided. According
to Kotler & Keller (2006), Satisfaction is feeling level of a person originated from comparing
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benefits of products and services to his expectations (Kotler, 2001). Accordingly, there are three
levels of satisfaction:
- If customers perception is smaller than customers expectations, they feel dissatisfied.
- If customers perception is higher than customers expectation, the customer feel satisfied.
- If customers perception is greater than their expectation, they feel satisfied or excited
Giese and Cote (2000) defined customers are end-users of product. Their research indicates 3
elements variable that generate customer satisfaction: (1) Customer satisfaction is adapting their
feeling, that is the changing in feeling level, (2) Feeling adaptation associated with certain
purposes: product choice, product purchasing and product using, (3) The state changing take
place in particular time but in the limitation of existence.
Meanwhile, Oliva, Oliver, and Bearden (1995, p. 104-132) argued that customer satisfaction is
always associated with the following factors:
- Customers emotional and attitude toward for services providers

- Customers expectations about the ability to meet their needs from services provider
- Results of experiencing services and values benefit from services
- Intent to continue using the services or products
happy with the products and services or not. Improving high levels of customer satisfaction is
very important to a business. Most of satisfied customers tend to be loyal that they use a wide
range of services and products as well as make repeat orders and purchasing behaviors.
2.2.2. Customer satisfaction with online games:
Customer satisfaction with online games can be assessed after experience with games. If game
component such as content, support service, game operation, etc do not meet customer demands,
customer will never be satisfied with that game. When playing game, if they find that game
quality service is high, they will feel satisfied.
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2.3. Customer loyalty
2.3.1. Definition of customer loyalty
Customer loyalty plays an important role in the success of businesses. Customer loyalty to
products or services or to businesses indicates customer intention of purchasing and repeating this
behaviors (Chauhduri, 1999). Customer loyalty has been recognized as a valuable asset to
compete in the market (Srivasta, Shervani, & Favey, 2000). Investing in customer loyalty
management is very important and necessary because they are not bound by the contract (Shapiro
& Vivian, 2000). Therefore, the higher loyalty of customers, the higher profits companies earn.
Some previous studies have analyzed the importance of considering two aspects that are
behaviors and attitude of loyalty to propose that loyalty index is based on the measurement of
attitudes and behavior (Pritchard, Howard). Engel and Blackwell (1982) defines loyalty is attitude
and behavior with good response towards one or a few products or services in a certain period by
a customer. Loyalty is also defined as a deep commitment of re - purchase or re - visit preferred
products or services in the future This leads to repetition and re-order of the same products or
services although the effects of circumstances and marketing effort is likely to lead to behavior
changing (Oliver, 1999, p.34).
As defined above, the loyalty factor includes both attitudes and behavior. Customers who have
behavioral loyalty to a company express more preferred attitude towards the company, in
comparison with competitors. However in some cases, the behavior does not necessarily reflect
the attitude of loyalty, when other factors exist that interefere customers to leave the company.
Failing to calculate loyalty can lead to fake loyalty (Dick & Basu, 1994). So to gain “true”
loyalty, companies should simultaneously focus on both behavior and loyalty attitude (Journal of
Retailing 80, 2004, p. 317-330).
We can see that customer loyalty is a long-term commitment of customer for a products/services
of a certain company. It is represented by repetitive activity or recommend the purchase of other
customers to buy goods or services of the company. When customers buy goods or using services
company once, twice and many times after that, and then tell others that products/services that
have good quality. It is recommended to use these people, they have shown loyalty to the
company, although sometimes they are not aware of this.
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Nonetheless, that customer satisfaction is an unstable element, it is very easy to change over time.
In contrast, the sustained loyalty rarely can be changed ,its value may even increase over time.
Only focusing on the development of products/services to satisfy customers is not enough, it is
necessary to build customer loyalty to the company. Once customers have loyalty to company, it
is not easy for them to leave to other company. A customer will be satisfied with so many
products and services for many different companies as long as their demands be met, but they
only show their loyalty to a few certain brand or a goods.
2.3.2. Why should we care about customer loyalty?
First of all, loyal customers are valuable assets of the business. If the number of loyal customers
increase 5%, the profit of company may be increased to 60% (Frederick Reichheld (1996).
Meanwhile, also according to Frederick Reichheld (1996), the cost to acquire a new customer
than 5 to 7 times more than maintaining a loyal customer. But in fact, a lot of company primarily
focused on attracting new customers, building loyalty customer retention has not been pay
enough attention.
Secondly, loyal customers contribute to company’s source of long-term stability profit through
repeat purchases. Furthermore, loyal customers often buy more up and very easy to buy new
items and other services. At the same time, loyal customers are those that the competitors most
difficult gain back. They always stick with the company even at the most difficult time. They are
sustainable resources.
Thirdly, loyal customers helps companies increase profits by reducing costs such as advertising
costs, access, referral, database building, new understanding buying behavior, serving activities,
etc. At the same time, company can save transactions time. In many cases, loyal customers not
only serve themselves but also help companies serving other customers. Frederick Reichheld's
indicates that if customer loyalty 2% increase, companies can reduce 10% of operating cost.
Moreover, rather than any other channel, loyal customers are people who promote company the
best and most effective. They are satisfied with the goods or services of the company and willing
share it with everyone. They will talk about the good experiences and advise people to use the
company's merchandise. Those introduction is invaluable to the company. In particular, this is a
great advertising channel for free.
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2.3.3. How to build customer loyalty?
Loyalty and good relationships can not be built overnight. They are continuous process and there
is no end point. It requires a major effort of the company, from strategic orientation to programs
and specific actions that focus on customers, particularly is the existing customers.
An American economist Jay Bower found out 10 ways to improve customer loyalty to exceed
their expectations as follows (Ten Ways to Increase Customer Loyalty, 2005, available at
http://www.marketingprofs.com/5/bower5.asp).
2.3.4. Customer loyalty with online games
Vietnam online game market has been developing quickly in recent years. There is high
competitiveness among game publishers in Vietnam. Furthermore, in the future, when Vietnam
population become aging population and the feature of gamers only last to certain age (often 35
years old) so that finding and creating new customers will become very difficult, it requires more
spending on advertising and promotion. This means online game publishers always have to
manage game quality and game service quality as well as adapt new games to attract and to keep
customers in the first time.
Therefore, the research model of customer loyalty to online games published by Vietnam Price
JSC have significant discovery, contributing a new scale and a new theoretical model. In term of
practical level, retaining customers and make them become more loyal is urgent. The research
results will help Vietnam Price JSC and other game publishers plan and implement more
effective marketing activities and promotion policy.
2.4. Factors affecting customer satisfaction
2.4.1. Relationship between price and customer satisfaction
Definition of price
Prices may be viewed as consumer awareness about abandoned or sacrificed something in order
to own a product or a service (Zeithaml, 1988). Prices are expressions of money for value of
goods and services which is determined based on the use value and customer perception on
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products and services they use. One of the methods to advertise services or products is the price
of service (Zeithaml and Bitner, 2000). Customers may not purchase products and services of the
highest quality but they will purchase the product or service gives them the most satisfaction.
Therefore, the perception of the customer on price and cost does not affect the quality of the
service, but will impact customer satisfaction (Cronin and Taylor, 1992).
The relationship between price and customer satisfaction
Meanwhile influence of price in customer satisfaction gets little attention of researchers

compared to other factors (Voss et al., 1998). Zeithaml and Bitner (2000) suggested that price can
be a great influence on the perception of services/products quality, value and customer
satisfaction. Service is invisible so that it is difficult to evaluate before purchasing, price is
viewed as alternative tools that affect on customer satisfaction with services they use. Some
researchers have found that there is significant relationship between price and customer
satisfaction.
The relationship between the amount of price, value and perceived price
When purchasing products and services, customers must pay a certain cost to exchange the use
values that they need to use. It is called the cost price in exchange for the desired value from the
products and services. If taking the price of goods in the value, customers will feel
competitiveness of price is appropriate or not. Only when customers perceive that services and
products quality higher than the cost price of products and services (or perceived price), the price
is considered competitive and the customers will be satisfied. By contrast, customers will
expressed dissatisfaction because they feel to pay more than what they received and the price in
this case will impact negatively on customer satisfaction.
Perceived price is factors affecting customer satisfaction. Customers may pay higher price than
the value received, but if they think it is reasonable, they will be satisfied and vice versa. In the
study of the relationship between perceived price and customer satisfaction. Maythew and Winer
(1982) consider more in the following three aspects :
- Price in comparison with quality

- Price in comparison with competitors
- Price in comparison with customer expectations
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2.4.2. The relationship between service quality and customer
satisfaction
SERVQUAL Model
SERVQUAL model by Parasuraman (1988) is one of the key tools in marketing services used to
evaluate the quality of the service. SERVQUAL model measure based on the quality of service
perceived by the customers by 5 component:
- Reliability: the ability to perform services on time and fit right the first time
- Responsiveness: willingness of services provider to provide services timely to customers
- Assurance: professional qualifications to perform the service, friendly staff and affable
service , show respect and understanding customer
- Empathy: take care to each customer, understanding of customer requirements , and
recognize regular customers
- Tangibles: expressed by looks, outfits of personnel , equipment and support services
SERVQUAL model is a common model and widely used in marketing research. It is helpful in
generalizing the criteria for measuring quality of service, but there are still many disadvantages
(Brown et al, 1993) and it is not appropriate if apply entire model to measure online game service
quality due to:
- Not feasible because of general measurement criteria

- Measure providing process more than result of service performance
- Do not consider significantly external factors as well as marketing activities, focused on
internal factors only
- The comparison of gap between quality expectations and perceived quality is difficult to
determine because many scale must be considered
Thus, the criteria to measure service quality by SERVQUAL model can not be applied in all areas
that must be edited to be appropriated with each case study to ensure high accuracy
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2.5. Relationship between customer satisfaction and
customer loyalty
Customer satisfaction and customer loyalty are highly interrelated. According to Oliver (1999),
customer satisfaction occurs through the process of using products and services. This is a
necessary step to determine loyalty. However, these two factors have separate configurations.
Customer satisfaction with a business is a good basis for loyalty (Bloemeretal, 1998, Pont and Mc
Quilken, 2005), although it is not guaranteed because even satisfied customers still switch to
products and services of other company. An important reason for switching is the price.
Similarly, the perceived value is the customer's evaluation of the usefulness of the product, based
on perceptions of what is customers receive and what is customer pay. Thus, customers will be
loyal if received value is determined relatively higher than expectation from competitors
(Kandampully, 1998). It is important that the perceived value is subjective and personal and it is
different between consumers (Ravald and Grönroos, 1996).
Many researchers have studied the relationship between satisfaction and loyalty. In the past many
researchers provide evidence of the relationship between customer satisfaction and customer
loyalty. Bitner (1990) has given notice that satisfaction is directly influenced loyalty. In
particular, Oliver (1980) stated that loyalty is positively influenced attitudes. This positive
attitude was found to regulate the attitude toward products, brands or services such as increasing
the level of trust or increasing purchasing intention.
Customer satisfaction also increased levels of positive affect attitudes. Based on the theory of
Howard and Sheth's (1969), considering customer buying behaviors and attitudes is a function of
the comparison between expectations and satisfaction when purchasing and attitude before
buying.
Many researchers have recognized causal relationship between satisfaction and intention to buy.
Fornell et al. (1996) suggested that increasing satisfaction leads to increasing loyalty in limitation
of repeated buying possibility affordability and repeated purchasing price. Recently, Oliver
(1999) suggests that satisfaction is the beginning of the chain transition to the extreme of loyalty
statement.
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2.6 Prior research about online games and customer loyalty
There is a huge lack of research on online games. “There is little research on even the most basic
aspects of online game” (Griffiths, Davies & Chappell, 2004, p.90). “Instead, most of the existing
studies were on video games to analyze either the gamers or the media regulation. The research
on gamers tends to focus on demographics of gamers and the ways in which the media affects
gamers, how gamers play and use different games and demographics of the gaming population.
Demographic research on the classification of gamers in terms of age, gender and socioeconomic
status shows that young males with relatively lower socioeconomic status tend to dominate the
game world.” (Yuan JiangPing (Peggy), (2008), p.8)
Dal and Florence (2008, p. 40) thought the lack of studies is due to the difficulty of finding
appropriate theories and methodologies for an emerging industry as online gaming. Dmitri found
out the video games affect on media users in The United States. He did not study online gaming
network in depth even though he know this is the trend of game industry development (Dmitri,
W., 2004, Trouble in river city: the social life of video games. Michigan, University of
Michigan.).
Yuan JiangPing’s (Peggy) used Diamond model to answer why gaming industry is competitive.
“This study shows that there is a competitive advantage based upon variables such as market size
and growth, sophistication of domestic demand, building up of advanced labor skills, aggressive
participation of capital, increase in domestic rivalry synergy of supporting industries, as well as
adaptability of firm strategy and ownership structure to the national environment”. However, “the
Diamond model is an economic model that fails to include socio-cultural elements that can
influence the diffusion of online games and the evolvement of the industry”. Yuan JiangPing’s
(Peggy) also said that success or failure of online game industry depends on the ability of
correctly anticipating domestic demand but this type of forecasting is not easy. “The most
difficult thing in this world is to learn the in-depth demand of consumers. There are so many
segments of gamers, some may prefer making new friends, some may like combating, some may
want to show off their virtual property, it is very hard to predict. But this is the key. Whoever
knows will surely win (Mr.Lin from Giant, interviewed on Dec 18th, 2007 in Shanghai).”
Dongseon et al. (2004) constructed a conceptual model of customer loyalty in online games in
large scale to understand why people continue playing online games, then analyzed all online
games mentions in the first study. They suggested 3 hypothesis : (1) whining experiencing game ,
16

players would show their loyalty, (2) Effective personal interaction helps players get optimal
experience and (3) Effective social interaction helps players get optimal experience. The
limitation of this research is some online games at that time did not include in the test so that the
results were not completely correct.
Another prior research is Hao-Erl Yang et al. (2009). “The purpose of this research is to
understand an online game service model.” They combined 3 models service quality
(SERVQUAL), technology acceptance model (TAM) and transaction cost analysis (TRC) to do
the research. Three factors affect customers’ satisfaction are experiential value, transaction cost
and service quality that lead to customers’ loyalty. They found that service quality has high
positively effect on both customer satisfaction and loyalty. But the results and findings did not
show in detail what kind of service quality and transaction cost to retain clients’ loyalty to the
online game service.
According to Ching-I Teng and Yun-Jung Chen (2009), author of study Personality facets and
customer loyalty in online games, the study “recommends online game providers to target the
prospect gamers who are high in fantasy, ideas, achievement-striving, competence, excitement-
seeking, and gregariousness”. “This study did not measure all facets provided by Costa and
McCrae (1992), which comprises one limitation. For this research, they tended to pay attention to
personality facets of customers rather than factors from online games. “This study thus cannot
help understand whether other facets are influential. However, this study laid an initial foundation
for subsequent investigations into the relations between all other facets and gamer loyalty.”
Despite of high potential of online games, there is a few research have been conducted to
discover enough and real factors that influence customer satisfaction and loyalty. A lot of studies
failed to establish relationships between influenced factors and online games design feature.
Moreover, the influenced factors of priors research are not enough and not cover game features
that affect customer loyalty. So we are not sure that those factors are really keys and important
factors, they may include unnecessary factors. If we know which factor is the important factor
affecting customer satisfaction and loyalty, we may apply the results successfully in practical.
17

2.7. Research model and hypothesis
2.7.1. Research hypothesis

Hypothesis 1 (H1): Online game service quality is good deciding the customer satisfaction
Online games quality include: Graphic interface and design of game, Game play, Content and
games’ story, Sound quality of game, Update new features and new version of game, Game
cashshop, Distribution network (download store, websites, posters, banners…), game events,
logo and image of game and support, customer care service.
Cash shop is a mini supermarket located directly in online games with many items carrying
different features. Cash shop became the place for gamers to shop while participating in online
the game. By the fastest way, gamers can choose the appropriate items fast and convenient. In
addition, the diversity of items in cash shop also will be a place for gamers to experience the new
and attractive features.
Game publishers release games through download stores (game official website, game stores
websites), connecting with community websites and forum to get more customers, marketing
methods such as mobile advertising, banners in websites.
Game events include events in game (usually in special days, anniversary, etc) and events out
game or offline events to connect gamers and game publisher to be closer and to understanding
customer’s demands and feeling.
Dedicated and thoughtful game support service create positive impact on customer satisfaction.
Game support activities include quality of server and support service from customer care team.
Good server runs stability even with events in game. Timely supports whenever occurring
incidents and problem with game and gamers.
18

Hypothesis 2 (H2): Reasonable price affects positively to customer satisfaction
‐ Player can play free and Vietnam Price JSC game publisher do not charge by the hour to
play
‐ Vietnam Price JSC offers many discounts and promotion programs
‐ Price of items in game are not expensive
Hypothesis 3 (H3): Customer satisfaction affect positively to their playing intention in the
future
Hypothesis 4 (H4): Customer playing intention affect positively to customer loyalty
19

2.7.2. Research model
Based on the theories, model and previous studies, I proposed a online game loyalty model as
below:
Graphic interface and design of game

Game play

Content and games’ story

Sound quality of game
CUSTOMER PLAY ING
GAME SATISFACTION
SERVICE INTENTION
Update new features and new
QUALITY version of game

Game cashshop
Distribution network
CUSTOME
Game events R LOYALTY

Logo and image of game

Support services, customer care

Free play

Recharge promotions

PRICE
Price of items in game
Figure 2.1. Research model
20

CHAPTER 3: METHODOLOGY
3.1. Quality research
Creating open questions to explore customer behaviors affect their loyalty to online games. Then
interview 15 individuals playing online games of Vietnam Price JSC (with more than 12 hours
playing per week) through the qualitative questions. Finally, identify the factors that may affect
customer loyalty to online games published by Vietnam Price JSC.
‐ Survey respondents: gamers who are playing online games of Vietnam Price JSC and
living in Hanoi.
‐ Sample size: 12 people
‐ Select 12 gamers who charge a large amount of game cards and rank in high level of 5
online games published by Vietnam Price JSC (Vuong Quoc Than Thoai Chrono Tales,
Chicken fight, Duduto, Fruit cutting and Pokemon Divination). These respondents should
be cooperative and coordinative with interviewer to answer questions effectively.
‐ Design qualitative questionnaire (see Appendix)
‐ The author identify main factors influencing customer loyalty ( attitude and behaviors) to
online games of Vietnam Price Joint Stock Company concerning factors such as online
game’s price, products, service, support, caring customers, game community, etc.
‐ After identifying key factors affects to customer loyalty, the author has interviewed with
12 gamers who are playing online games of Vietnam Price JSC to get information form
their answers and complete the questionnaire of quantitative research.
‐ After conducting qualitative research, the author decide to put selected factors into
quantitative questionnaire.
‐ Each respondent will received directly a mobilephone card with value of 100.000VND for
their cooperation
21

3.2. Quantitative research
Based on the results of qualitative research, I have quantified the concept then design the
quantitative questionnaire, measure elements affecting customer loyalty to online games of
Vietnam Price JSC.
3.2.1. Structure of questionnaire
‐ Part 1: A brief introduction about the purpose of the study.

‐ Part 2: The survey questionnaire included 35 questions
 Question 1 to 11: data questions. This is the collection of personal information,
data used to classify and compare differences that influence customer loyalty to
online games.
 Question 12 to 17: focus questions, using Likert Scale 5 points ( 5 points: very
good, 1 point: very bad)
‐ Part 3: Thank customers
3.2.2. Content of questionnaire
Questionnaire includes 36 questions corresponding to 36 variables in the survey:
‐ Question 1 to 11: personal information and different game playing features of different
group were interviewed, includes:
 gender
 age
 habitat
 devices to play games,
 place playing games
 time spending on games
 money spending on games
 reason to charge money on games
Question 12 to 16: focus questions, using Likert scale 5 points
‐ Question 12 ( 12.1 to 12.10): information about game quality factors that affect customer
loyalty, includes:
22

 Graphic interface and design of game are attractive
 Gameplay is very good
 Content and games’ story are interesting
 Sound quality of game is great, good and mixed - reality of sound effects
 VNP always update new features and new version of game
 Game cashshop is convenient for players
 Distribution network ( download store, websites, posters, banners…) is convenient
for customers
 Game events are attractive to me
 Logo and image of game are attractive
 Customer care are good and support timely when problems occur
‐ Question 13 (13.1 to 13.3): Aim to collect information about how price affect customer
loyalty, includes:
 Free playing game and don't charge by the hour to play
 VNP offers many recharge promotions
 Price of items in game not expensive
‐ Question 14 (14.1 to 14.3): Aim to collect information about satisfaction assessment of
customers, includes:
 In general game quality is good
 Game quality is worthy with money I spent
 Technical infrastructure for game is good and modern
‐ Question 15 (15.1 to 15.3): Aim to collect information about intention to play of
customers, includes:
 I intend to play more online game of VNP in the future
 I intend to play VNP's game for a long time
 I will play VNP's games frequently
‐ Question 16 (16.1 to 16.3): Aim to gather information about loyalty of customers,
incudes:
 I am willing to introduce game to my friends
 I will continue playing VNP online game
 I am proud of game of VNP that I am playing
23

‐ Question 17 (17.1 to 17.3): Conclusion of customers about behavior and attitude toward
online games of VNP
 Game Quality and price effect my satisfaction
 I am satisfied with game so I intend to play game in the future
 I intend to play game for a long time so I will be loyal to game
3.2.2. Sampling
‐ Survey respondents: gamers who are playing online games of Vietnam Price JSC.
‐ Sample size: 350 people
‐ 350 gamers who are playing online games of Vietnam Price JSC. The questionnaires will
be sent to their email address or they can answer and vote in website
3.3. Data analysis
3.3.1 Reliability analysis
According to Cronbach (1951), the reliability of the scale can be tested by using the alpha. The
Cronbach’s alpha calculation is illustrated through the equation below:
Equation 1: Cronbach’s alpha calculation
 K

   Y2i 
K  
 1  i 1 2
K 1 X 
 
 
(Source: Cronbach, 1951)
The objective of this analysis was to assess the appropriateness of the survey scale which was
built upon on the theory of Likert scale that consisted of five scales ranging from strongly
disagree to strongly agree. Cronbach’s alpha coefficient reflects the inter-correlation between the
items or variables in the dimension. The high value of Cronbach’s alpha means the more
consistent the variables are.
24

3.3.2 Exploratory factor analysis
DeCoster (1998) denoted that EFA is applied to identify the underlying constructs of between
independent factors used in a research. Normally, the researchers often design the table of
questionnaire with factors that are based on their subjective ideas or on conceptual models of
previous studies. However, due to the different sample and the purposes between studies, the
factors used in the researches can be constructed in the different way in term of quantitative
approach. Thus, the author would like to conduct EFA in order to verify the initial constructs and
to make the adjustments. EFA can be conducted in the process of four steps as below:
The first step is to generate the correlation matrix between independent factors with the
application of KMO and Barlett’s test. The second step of EFA is to generate the factor extraction
in order to derive the number of components. DeCoster (1998) indicated that the numbers of
factors are based on the total variance extraction that should be higher than 50% of explanation.
Two last steps are factor rotation and final numbers of component conclusion. The factor rotation
technique that is mostly being used is Varimax in order to help the author reaching the optimal
combination in EFA. Then, the final number component will be finalized base on the factor
rotation matrix table.
In short, the standards to conduct exploratory factor analysis include:
- KMO is between 0.5 and 1.0
- Barlett sig. is higher than 0.05
- Factor loading is higher than 0.5
- The cumulative eigenvalues are higher than 50%
3.3.3 Linear regression
With the purpose of predicting the level of influences that independent variables impacts on
dependent variable, a statistical technique named linear regression is applied.
In our study, regression analysis was used to examine the relationship between customer
satisfaction and intention to play ; and between intention to play and customer loyalty
25

CHAPTER 4: DATA ANALYSIS AND RESULTS
4.1. Respondents profile
There are 350 questionnaires issued in total: 50 copies in direct way (sending hard copies to
respondents), 230 copies sent via email of respondents and 50 copies sent through tool Google
Docs.
Figure 4.1. Customer gender
Figure 4.2. Customer age
26

Table 4.1. Customer habitation
Frequency Percent Valid Percent
Valid Ha Noi 95 27.1 27.1
Ho Chi Minh 113 32.3 32.3
Hue 31 8.9 8.9
Da Nang 40 11.4 11.4
Nha Trang 27 7.7 7.7
Other* 44 12.6 12.6
Total 350 100.0 100.0
Figure 4.1, 4.2 and table 4.1 show the study results by age, gender and habitat of gamers. These
tables show that male gamers are main customers of online game, occupied 88,6% while there is
only 11,4 % of female customers. People at ages from 14 to 22 play online games the most. Age
group above 29 years old show smaller attitude and willing to play online games. Most of gamers
are come from big cities of Vietnam such as Ho Chi Minh, Hanoi, Da Nang. There are 5
respondents from foreign countries America, Australia, Japan and China. This mean online games
of Vietnam Price JSC also attract foreign gamers. According to report Net Index 2012 released on
3rd August 2011 of Vietnam, internet users aged from 15 to 24 are interested in entertainment
contents, in particular content about online games occupied 38%.
Figure 4.3, 4.4, 4.5, 4.6 indicates technology products for playing online games, places where
gamers play games and their time spending on games.
27

Figure 4.3. Tools for playing game
Figure 4.4. Places to play games
28

Figure 4.5. Time spend on online games
Figure 4.6. The time period of the day play online games
Despite of an increasing in number of “touching technology product” such as tables or

smartphones nowadays, the survey results indicate most of gamers playing games by personal
29

computer and mobile phones. Surprisingly, respondents often play online games at work
(33,1%), followed by home and internet shops. 8 hours to 20 hours per week is average time that
customers spend on game, only 7,4% of respondents play games less than 7 hours per week.
They often play games from 19h00 to 2h00 - time for resting and relaxing after all day working.
Figure 4.7. Money spend on online games per month
Figure 4.8. Percent of total money spending in game spend on VNP‘s game?
30

Money spending on online game and Vietnam Price JSC’s online games are illustrated in figure
4.8 and 4.9. Number of respondents who play game for fun and do not spend money on games
accounted for nearly one-third of total participants. Gamers often spend 100.000 VND to 1
million VND for online games per month. There are 259/350 respondents spending 20% to 50%
of total money for gaming for Vietnam price JSC’s online games. This means gamers also pay
more attention to Vietnam price JSC’s games.
Figure 4.9. Reason charging money for online games
Figure 4.10. Source of news and information updating about online games
Figure 4.9 answers the question when customers charge money for game. As can be seen from
the table, times of new events in game and promotion programs like game card discounting 10%
31

to 50% are the hot time that a lot of gamers charge money to play game. From the figure 4.10 of
source of news and information updating about online games, gamers usually update news as well
as information about online games from game official website and forum and websites about
game news such as www.genk.com, www.gate.vn, www.gamek.vn, etc.
4.2. Reliability Analysis
4.2.1. Reliability of service quality scale
Table 4.2 Cronbach’s Alpha of service quality scale
Corrected Item-
Scale Mean if Total Cronbach's Alpha
Item Deleted Correlation if Item Deleted
Cronbach’s Alpha = 0.736
Game play 44.31 .545 .688
Content and games’ story 44.29 .313 .727

Graphic interface and design of game 44.31 .552 .686
Sound quality 44.27 .414 .713
Update new features and new version 44.25 .351 .721
Game cashshop 44.27 .460 .706
Distribution network 44.29 .346 .722
game events 44.28 .436 .709
Logo and image of game 44.29 .253 .738
Support services, customer care 44.27 .306 .727
with data. Chi Square of
Table 4.2 shows Cronbach’s Alpha of game service quality. As can be seen from this table, game
quality factor reaches Cronbach's Alpha of 0.736 and almost Cronchbach’s Alpha of independent
variables in this factor are above 0.6 and under 0.736. However, the Cronbach’s Alpha of
variables named “logo and image of game” is 0.738 and Corrected Item-Total Correlation is
32

lower than 0.3. So that, this variable is not realiable. The other 9 variables of game service quality
factor are used in subsequent Exploratory Factor Analysis (EFA).
4.2.2. Reliability of price factor scale
Table 4.3: Cronbach’s Alpha of game price factor
Scale Mean if Item Corrected Item-Total Cronbach's Alpha if

Deleted Correlation Item Deleted
Free play 9.27 .942 .931
Recharge promotions 9.30 .922 .947
Items price 9.25 .905 .959
Chung, P. (2008), Globalization and the Online Gaming Industries of South Korea and
Singapore, Journal of Science, Technology and Society
Table 4.3 indicates that Cronbach’s Alpha of game price factor. Game price factor reaches
Cronbach's Alpha of 0.963 and all Cronbach’s Alpha of independent variables in this factor are
above 0.6 and under 0.963 with the Corrected Item-Total Correlation of these variables are
moderate (> 0.905). All variables of game price quality factor are used in subsequent Exploratory
Factor Analysis (EFA).
33

4.2.3. Reliability of customer satisfaction scale
Table 4.4: Cronbach’s Alpha of customer satisfaction factor
Scale Mean if Corrected Item- Cronbach’s Alpha

Item Deleted Total Correlation if Item Deleted
Cronbach’s Alpha=0.967
satisfaction 1 9.31 .932 .948
Table 4.4 demonstrates that Cronbach’s Alpha of game price factor. It is clearly that game price
factor reaches Cronbach's Alpha of 0.967 and all Cronbach’s Alpha of independent variables in
this factor are above 0.6 and under 0.967 with the Corrected Item-Total Correlation of these
variables are moderate (> 0.910). So that all variables of customer satisfaction factor are reliable
and will be used in subsequent Exploratory Factor Analysis (EFA).
4.2.4. Reliability of playing intention scale
Table 4.5: Cronbach’s Alpha of playing intention factor
Scale Mean if Item Corrected Item- Cronbach's Alpha if Item

Deleted Total Correlation Deleted
playing intention 1 9.31 .932 .953

34

Scale Mean if Item Corrected Item- Cronbach's Alpha if Item
Deleted Total Correlation Deleted

Table 4.5 illustrates that Cronbach’s Alpha of playing intention factor. It is clearly that playing
intention factor reaches Cronbach's Alpha of 0.968 and all Cronchbach’s Alpha of independent
variables in this factor are above 0.6 and under 0.968 with high Corrected Item-Total Correlation
of these variables are moderate (> 0.917). So that all variables of customer satisfaction factor are
reliable and will be used in subsequent Exploratory Factor Analysis (EFA).
4.2.4. Reliability of customer loyalty scale
Table 4.6: Cronbach’s Alpha of customer loyalty factor
Scale Mean if Corrected Item- Cronbach's Alpha

Item Deleted Total Correlation if Item Deleted
Cronbach’s Alpha= 0.965
loyalty 1 9.30 .928 .947

loyalty 2 9.27 .941 .937
loyalty 3 9.26 .909 .961
Table 4.6 illustrates that Cronbach’s Alpha of customer loyalty factor. It is clearly that customer
loyalty factor reaches Cronbach's Alpha of 0.965 and all Cronchbach’s Alpha of independent
variables in this factor are above 0.6 and under 0.965 with high Corrected Item-Total Correlation
of these variables are moderate (> 0.909). So that all variables of customer satisfaction factor are
reliable and will be used in subsequent Exploratory Factor Analysis (EFA).
35

4.3. Exploratory Factor Analysis (EFA)
Exploratory Factor analysis is used only when value of KMO (Kaiser-Meyer-Olkin) is 0.5 or
higher (Othman & Owen, 2000), Bartlett's Test of Sphericity with Sig > 0.05, the variables of
transmission ratio (factor loading) is less than 0.5 will be disqualified. Initial Eigenvalues
(representing the variation is explained by each factor) is greater than 1 and the total variance
extracted (Cumulative Extraction Sums of Squared Loadings%) greater than 50% (Gerbing &
Anderson, 1988). Extraction method of "Principal component" with rotation "Varimax" is used in
the scale analysis of independent components.
4.3.1. EFA of service quality and game price
Table 4.7: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .694

Bartlett's Test of Sphericity Approx. Chi-Square 3.155E3
df 66
Sig. .000
Table 4.8 Factor analysis of variable service quality and price
Component
1 2 3 4
Free play .974

Recharge promotions .965
Items price .956
Graphic interface and design of game .904
Game play .903
Sound quality .540
Update new features and new version .529
Game events .789
36

Distribution network .758
Game cashshop .757
Support services, customer care .852
Content and games’ story .618
The EFA result indicates that 12 variables of game service quality and game price factors are
dispersed into 4 components Kaiser-Myer-Olkin (KMO)= 0.694 > 0.5 so that EFA is consistent.
with data. Chi Square of
Bartlett's Test of Sphericity is 3.155E3 with Sig = 0.00 < 0.05 so that independent variables are
related to each other. The cumulative is 71.238% means that 4 components explain 71.238% of
data variability.
Rename and explain components:
The explanation of the factors is carried out on the basis of variables with high factors loading
located in the same component. Such component may be explained by variables with high factor
loading in the system.
- Component 1 includes 3 variables: Free play and don't charge by the hour to play, VNP offers
many recharge promotions and Price of items in game not expensive
 Name: game price
- Component 2 includes 4 variables: Graphic interface and design of game are attractive,
Gameplay is very good, Sound quality of game is great, good and mixed - reality of sound
effects and VNP always update new features and new version of game
 Name: game quality
- Component 3 includes 3 variables: Game events are attractive to me, Distribution network is
convenient for customers and Game cashshop is convenient for players.
 Name: service accompanied with game or game service
37

- Component 4 includes 2 variable: Customer care are good and support timely when problems
occur and content and game’s story.
 Name: caring service and game content
4.3.2. EFA of customer satisfaction, intention to play and customer

loyalty.
Table 4.9 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .839

Bartlett's Test of Approx. Chi-Square 9.748E3
Sphericity df 36
Sig. .000

Table 4.10 Factor analysis of variable satisfaction, intention to play and loyalty
Component
1 2 3
Satisfaction 2 .959
Satisfaction 1 .955
Satisfaction 3 .946
Playing intention 2 .974
Loyalty 2 .970
Loyalty 1 .967
Loyalty 3 .957
Result of EFA shows that all variables observed in 3 scale factors of customer satisfaction,
intention to play and customer loyalty remains the same Chung, P. (2008), Globalization and the
38

Online Gaming Industries of South Korea and Singapore, Journal of Science, Technology and
Society
Bartlett's Test of Sphericity is 9.748E3 with Sig = 0.00 < 0.05 so that independent variables are
related to each other. The cumulative is 80.285% means that 3 components explain 80.285% of
data variability.
4.3.3. Adjust research model based on EFA result
The Exploratory factor analysis model has launched customer loyalty to online games of Vietnam
Price JSC is a combination of 4 independent (Game price, Game quality, Game service, Caring
service and game content) variables and 3 dependent variables ( Customer satisfaction, Intention
to play and Customer loyalty).
Game quality
CUSTOMER INTENTION CUSTOMER

Game price SATISFACTION TO PLAY LOYALTY
Game service
Caring service and

game content
Figure 4.11 Adjust model
39

4.4. Linear regression analysis
After completing the stage of Exploratory factor analysis, 4 factors were included in the test
model. The value of each factor is the average value of the components of the observed variables.
I conducted linear regression analysis with method Enter.
4.4.1. Relationship of customer satisfaction and intention to play
The result of linear regression shows that R Square = 0.978 and Adjusted R Square = 0.978. This
result is qualified with univariate regression. This model explain that independent variable
Customer satisfaction causes 97,8% of changing in dependent variable Intention to play. The
remaining 2% of variation by other factors out of model. The model also indicates that
independent variable Customer satisfaction positively affect dependent variable Intention to play
at the reliability rate of 95%.
Table 4.11a : The Regressions of satisfaction and intention to play
Adjusted R Std. Error of Durbin-

Model R R Square Square the Estimate Watson
1 .989a .978 .978 .092 2.028
a. Predictors: (Constant), satisfaction

b. Dependent Variable: Intention to play
Statistic value F = 1.570E4 with Sig. = 0.000, correlate phenomenon Durbin-Watson = 2.028 (1 <
2.028 < 3). So that the linear regression model is qualified with research model and research data.
Table 4.11b shows that satisfaction affects positively to intention to play with Beta=0.989 with
sig. = 0.000. I can conclude that the hypothesis H3: Customer satisfaction affects positively to
Intention to play. Regression equation:
40

Table 4.11b : The Regressions of satisfaction and intention to play
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .026 .037 .694 .488
satisfaction .993 .008 .989 125.318 .000
a. Dependent Variable: Intention to play
“Intention to play” = 0.989 “Satisfaction”
This mean when customer satisfaction increases one unit, intention to play of customers increases
0.989 unit respectively.
4.4.2. Relationship of intention to play and customer loyalty
Table 4.12a The Regressions of intention to play and customer loyalty
Adjusted R Std. Error of Durbin-

Model R R Square Square the Estimate Watson
1 .993a .985 .985 .076 2.000
a. Predictors: (Constant), loyalty

b. Dependent Variable: Intention to play
The result of linear regression shows that R Square = 0.985 and Adjusted R Square = 0.985. This
result is qualified with univariate regression. This model explain that independent variable
Intention to play causes 98.5% of changing in dependent variable loyalty. The remaining 1.5% of
variation by other factors out of model. The model also indicates that independent variable
Intention to play positively affect dependent variable Loyalty at the reliability rate of 95%.
Statistic value F = 2.347E4 with Sig. = 0.000, correlate phenomenon Durbin-Watson = 2.000 (1 <
2.000 < 3). So that the linear regression model is qualified with research model and research data.
41

Table 4.12b The Regressions of intention to play and customer loyalty
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 6.813E-16 .031 .000 1.000
loyalty 1.000 .007 .993 153.183 .000
a. Dependent Variable: Intention to play
Figure 4.12b shows that Intention to play affects positively to Loyalty with Beta=0.993 with sig.
= 0.000. We can conclude that the hypothesis H4: Intention to play affects positively to Customer
loyalty. Regression equation:
“Loyalty” = 0.993 “Intention to play”
42

CHAPTER 5: CONCLUSION
5.1. Discussion
In comparison with research result of other researches, there are 4 factors influencing customer
loyalty: game quality, game price, game services, caring service and content of games. The caring
service and content of game are accompanies with game quality and game service, so we
considered there are 3 components affects loyalty of customer: game quality ( talking about game
product only), game service (talking about services accompanies with game) and game price.
Dongseon Choi, and Jinwoo Kim, M.S., (2004) research found out experiencing game , personal
interaction and optimal experience influencing customer loyalty. The limitation is that this study
was carried out with small scale so the result is not correctly. Another prior of Hao-Erl Yang,
Chi-Chuan Wu, Kuang-Cheng Wang, (2009) use service quality (SERVQUAL) and transaction
cost analysis (TRC). They found out three factors affect customers’ satisfaction are experiential
value, transaction cost and service quality that lead to customers’ loyalty. But the results and
findings did not show in detail what kind of service quality to retain clients’ loyalty to the online
game service. According to Ching-I Teng and Yun-Jung Chen (2009 research), they suggest that
online game providers target the prospect gamers who are high in fantasy and ideas. But this
study tended to pay attention to personality facets of customers rather than factors from online
games. Customer satisfaction is explain by different factors out of service quality. Customer
loyalty is explain by factors satisfaction and intention to play.
5.2. Research Summary
In this research, after reviewing the literature about the customer satisfaction and customer
loyalty, the author conduct this research to find the relationship between service quality, game
price, customer satisfaction, intention to play and customer loyalty. The result of this research
was summaried in the table 5-1.
43

Table 5.1. Results of testing research hypothesis
Hypotheses Test
H1 Online game service quality is good decide the customer satisfaction Supported
H2 Reasonable price affects positively to customer satisfaction Supported
H3 Customer satisfaction affect positively to their playing intention in the Supported

future
H4 Customer playing intention affect positively to customer loyalty Supported
When customers appreciate the game service quality and game price, the higher of satisfaction
level, they intend to continue to play online games in the future but do not want to switch to other
online games of other game publishers. Moreover, they will be the best who advertise Vietnam
Price JSC’s online games to other people. They help the company attract more potential
customers, thus contributing to enhanced reputation for game publisher and ensure the success of
online games.
5.3. Limitation and future Research
Although this research attempts to conceptualize the relationship of several factors which effect
on the customer loyalty. But for the time limit, the author only can choose some main factors and
finding their relationship with customer loyalty. So in the future, when the research has more
time, the author suggests that the research should add more factor in finding relationship with
customer loyalty
The other limitation is that the sample which was collected data is one company. Although this is
the big company, but the employees who filled the questionnaire has a lot of similarity such as
the company policies, their mindset as well as their perspective. So in the future, the researchers
should diversify the sample, not only in one firm but also in the other firm.
44

REFERENCES
Caruana, A., Money, A.H. and Berthon, P.R. (2000). Service quality and satisfaction- the
moderating role of value. European Journal of Marketing, 34(11/12), p. 1338-1352.
Dongseon Choi, Ph.D., and Jinwoo Kim, M.S. (2004), Why People Continue to Play Online
Games: In Search of Critical Design Factors to Increase Customer Loyalty to Online Contents.
Cyberpsychology & Behavior, Volume 7, Number 1, p. 11
Dennis Boer (2012), The freemium model in gaming: Successful or unsuccessful, available
at: http://gamemuse.net/freemium-model/
Fan Zhao, (2009), Improve customers’ loyalty in online gaming: An empirical study, Journal of
Computer and Information Technology, p. 54.
Nguyen Anh Dzung (2013), Vietnam game market 2012, SGame J.S.C
iResearch Consulting Group (2009), iResearch China Webgame Industry Research Report, p. 5, 9
Saara Satokangas (2013), Effectiveness of mobile in-game banner advertising Oliver, R.L.
(1997). Satisfaction: A Behavioral Perspective on the Consumer. New York: McGraw Hill
Oliva, Oliver, and William O. Bearden (1995), “The Relationships Among Consumer
Satisfaction, Involvement, and Product Performance: A Catastrophe Theory Application,”
Behavioral Science, 40 (2), 104-132
45

Uer-Aree Phothiyarom (2011). Is There any Space for Late Night Swordsman in Postwar
Vietnam? Online Gaming in Vietnam: Youth Pop Culture, Technological Hero, or Social Threat?,
The road ahead in mobile games, p.1, available at: http://venturebeat.com/2011/07/10/the-road-
ahead-in-mobile-games/. Downloaded on June 2013
Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL: A multiple-item scale for
measuring consumer perceptions of service quality. Journal of Retailing, 64, p. 12–40.
Yuan JiangPing (Peggy) (2008), Dynamics of online game industry in China – An application of
Porter’s model, available at
http://scholarbank.nus.edu.sg/termsofuse;jsessionid=A11EAA1C8ECE57F65F33A9EA63CE922
B
Zeithaml, V. A., Berry, L.L. & Parasuraman, A. (1996). The behavioural consequences of service
quality. Journal of Marketing Management, 60(No. April), p. 31-46
Zeithaml, V.A. and Bitner, M.J. (2000), Services Marketing Integrating Customer Focus Across
the Firm, , New York McGraw- Hill.
Gary Hamel (1996), “Strategy as rovolution” Havard Business, p.69-82
46

APPENDIX
1. Qualitative survey (English version)
General Information:
1. How often do you play online game ?
2. Which game publishers have you played their games ?
3. Which game publishers do you usually play their games ? Which game(s) ?
4. How long do you play their games ?
Quality of game and game service
5. Do you think that good game quality is one of the factor that create your satisfaction and
loyalty with online game of Vietnam Price JSC ?
6. Which elements of game quality you in your opinion ?
7. Describe the graphic design of game that you want to play ?
8. How impress is gameplay should be to attract you the most?
9. How do you feel about online game that their features and new versions are always
updated ?
10. How do you expect about events in game of Vietnam Price JSC ?
11. Do you want Vietnam Price JSC to change the way of events organizing so that you can
approach and experience games better ?
12. Your recommendation about online and offline events of Vietnam Price JSC ?
13. Your feedback about our customer care service?
14. In your opinion, do game forum management need appropriate time with game
management ?
15. Do you want to be supported by email or only through only yahoo, skype ?
47

16. Do you expect that customer care team via Hotline are male or female ?
17. What makes you dissatisfied about customer care of online games you have played ?
Price
18. Do you want to play game for free or charging ( by hour, level,…)
19. Do you like games which have high frequency of game card charging promoting,
discounting, golden time charging and holiday gifts ?
THANK YOU !

48

2. Questionnaire (English version)
Dear all gamers,
Vietnam Price Joint Stock Company (VNP) would like to send greetings to your health and
success. We are committed to continue improving activities to improve the quality of game
products provided by the VNP to bring the highest benefits and satisfaction to you.
With the desire to provide good products and best service, so hope you give us your assessment of
online games to meet your needs.
Your email: Phone number:
1. What is your gender?
Male □ Female □
2. You belong to the following age groups:
<14 □ 14-18 □ 19-22 □

23-28 □ 29-35 □ >35 □
3. Where do you live?
Hanoi □ Ho Chi Minh □ Hue□

Da Nang □ Nha Trang □ Others (please specify)
4. How do you play game online?
By PC □
By mobile phone □
By PC & Mobile phone □
Tablet □
5. Where do you usually play games?
Internet shop □ Café shop □ At home □

At working place □ other
6. How much time do you spend on online games?
49

<= 7 hours/ week □ 8 – 20hours/week □ >20 hours/ week □
7. Which time of the day do you often play online games?
8h - 12h □ 12h – 16h □ 16h – 18h □

19h – 22h □ 22h – 2h □ Other □
8. How much money do you often spend on online games per month?
Play for fun, not spend money □

<100.000 VND □ 100.000 – 500.000VND □
>500.000 – 800.000 VND □ >800.000 – 1,5 mil VND □
>1,5 mil – 4 mil VND □ >4 mil VND – 10mil VND □
>10 mil VND □
9. How many percent of which you spend on Vietnam Price JSC’s game?
<20% □ 20% - 50% □

>50% – 75% □ >75 % - 100% □
10. When do you charge money for online games?
Anytime when prefer □ For new events in games □

Promotion programs ( discount 10%, 30%, 50%...) □
For both new events in games & promotion programs □
11. Where do you often update news and information about online games?
Game official website and forum □ Website about game news □

Posters, banners of games □ Other: □
Game official website, forum, game news, poster and banners of games □
The following statements are related to the choice to play online games. Please keep your
answer by circling a number on each line corresponds to the full extent you totally agree or
totally disagree with statements by convention as follows:
5. Strongly agree 4. Agree 3. Uncertain 2. Disagree 1. Strongly disagree
12. Quality of VNP online games

12.1. Graphic interface and design of game are attractive 5 4 3 2 1
12.2. Game play is very good 5 4 3 2 1
50

12.3. Content and games’ story are interesting 5 4 3 2 1
12.4. Sound quality of game is great, good and mixed - 5 4 3 2 1
reality of sound effects
12.5. VNP always update new features and new version of 5 4 3 2 1
game
12.6. Game cashshop is convenient for players 5 4 3 2 1
12.7. Distribution network ( download store, websites, 5 4 3 2 1
posters, banners…) is convenient for customers
12.8. Game events are attractive to me 5 4 3 2 1
12.9. Logo and image of game are attractive 5 4 3 2 1
12.10. Customer care are good and support timely when 5 4 3 2 1
problems occur
13. Game price

13.1. Free play and don't charge by the hour to play 5 4 3 2 1
13.9. VNP offers many recharge promotions 5 4 3 2 1
13.10. Price of items in game not expensive 5 4 3 2 1
14. Satisfaction
14.1. In general game quality is good 5 4 3 2 1
14.2. Game quality is worthy with money I spent 5 4 3 2 1
14.3. Technical infrastructure for game is good and 5 4 3 2 1
modern
15. Intention to play
15.1. I intend to play more online game of VNP in the 5 4 3 2 1
future
15.2. I intend to play VNP's game for a long time 5 4 3 2 1
15.3. I will play VNP's games frequently 5 4 3 2 1
16. Loyalty
16.1. I am willing to introduce game to my friends 5 4 3 2 1
16.2. I will continue playing VNP online game 5 4 3 2 1

16.3. I am proud of game of VNP that I am playing 5 4 3 2 1
17. Customer’s conclusion
51

17.1. Game Quality and price effect my satisfaction 5 4 3 2 1
17.2. I am satisfied with game so I intend to play game in 5 4 3 2 1

the future
17.3. I intend to play game for a long time so I will be 5 4 3 2 1
loyal to game
Thank you for taking the time for us. We appreciate your contribution!
52

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Department of Business Administration

Study of factors Influencing

the Customer Loyalty to Online Games at

Co-Advisor: Tran Van Trang

Graduate Student: Nguyen Tien Dung

1.1 Background of the study

According to game releasing schedule in Vietnam published in trusted website

There is a lack of studies on online gaming in Vietnam in general, especially in customers’

1.2 Overview about Vietnam’s online game industry

Revenue of IT industry 2009 2010 2011 2012 Growth

Total revenue of IT industry 5220 6167 7629 13.663 79%

Hardware industry 4100 4627 5631 11.326 101%

Software industry 680 850 1064 1172 10%

Digital content industry 440 690 934 1165 25%

Source: Vietnam Information and Communication Technology White Book 2012

IT Industry Number of Workers Revenue per Worker Wage per Worker

2011 2012 2011 2012 2011 2012

Hardware 127.548 167.660 44..148 67.555 2.201 2.279

Software 71.814 78.894 14.816 14.855 5.123 5.034

Digital content 50.928 60.200 18.339 19.352 4.896 5.267

Source: Vietnam Information and Communication Technology White Book 2012

Trend of online games nowadays is “Freemium game”.

According to an official report of Ministry of Information and Communications in the first

1.4. Research questions

1.5. Scope of research

- Objects of research: key factors of online games, customers’ satisfaction, customers’

1.6. Signification of research

- Research contribute to developing theory in the field of Marketing Management,

2.1 Online game service

2.1.1 Online game definition

2.1.2. Kinds of online games

- Massively Multiplayer Online Role-playing Game (MMORPG): MMORPG is one the

- Besides, types of online games classified by platform are:

2.2. Concept of customer satisfaction

2.2.1. What is customer satisfaction?

- Customers emotional and attitude toward for services providers

2.2.2. Customer satisfaction with online games:

2.3.1. Definition of customer loyalty

2.3.2. Why should we care about customer loyalty?

2.3.4. Customer loyalty with online games

2.4. Factors affecting customer satisfaction

2.4.1. Relationship between price and customer satisfaction

The relationship between price and customer satisfaction

Meanwhile influence of price in customer satisfaction gets little attention of researchers

- Price in comparison with quality

- Not feasible because of general measurement criteria

2.7.1. Research hypothesis

Hypothesis 4 (H4): Customer playing intention affect positively to customer loyalty

Price of items in game

Figure 2.1. Research model

3.1. Quality research

3.2.1. Structure of questionnaire

‐ Part 1: A brief introduction about the purpose of the study.

3.2.2. Content of questionnaire

Questionnaire includes 36 questions corresponding to 36 variables in the survey:

3.3. Data analysis

3.3.1 Reliability analysis

Equation 1: Cronbach’s alpha calculation

(Source: Cronbach, 1951)

In short, the standards to conduct exploratory factor analysis include:

- KMO is between 0.5 and 1.0

- Barlett sig. is higher than 0.05

- Factor loading is higher than 0.5