Internet technology and customer relationships : assessing travel agencies in Vietnam | |
| Author | Hoang Thi Phuong Thao |
| Call Number | AIT Diss. no.SM-08-02 |
| Subject(s) | Internet--Vietnam Customer relations--Vietnam Travel agents--Vietnam |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy |
| Publisher | Asian Institute of Technology |
| Abstract | The study investigates how small and medium travel agencies as business customers perceive the benefits and barriers of Internet use that affect their relationships with service suppliers in a developing country like Vietnam. A framework is developed towards integrating the benefits and barriers of Internet use in customer relationships, and to assess the contribution of switching costs and customer relationships to customer loyalty. The framework utilizes both qualitative and quantitative techniques. A survey of 202 small and mid-sized travel agencies in Hanoi and Ho Chi Minh City of Vietnam has been conducted. Regression analysis is used to test the hypotheses derived from the framework. A series of follow-up interviews is conducted to follow any change of customers’ attitude toward the same issue to capture the dynamics. The perceived benefits of Internet use are both interactional and transactional benefits. The important role of communication and information sharing indicates that interactional benefits are more important than transactional benefits for current Internet-based travel businesses. The barriers of Internet use include the organizational weaknesses, poor IT infrastructure, mistrust of the Internet system, and lack of a legal framework. Both interactional and transactional benefits positively contribute to the customer’s service and social bonds. Poor IT infrastructure and legal limitations negatively influence the service bonds. Organizational weaknesses and mistrust of the Internet system negatively affect the social bonds. The relatively low switching costs of the travel sector are not influenced by the transactional benefits and the customer relationships. However, once customers perceive the high switching costs present in the Internet environment, both the switching costs and customer relationships increase customer loyalty. The study makes a contribution to the literature by confirming the existing theory from relationship marketing and applications of Internet technology. The service bonds, i.e. information, quality, price, and value-added reflect nature of relationships, and the social bonds, i.e. trust, commitment, interdependence and investments strengthen relationships. It is important to consider the quality of the business customer-supplier relationship on the use of Internet technology. The study gives evidence on role of switching costs that is influenced positively by interactional benefits of Internet use and contributes to customer loyalty in Internet-based travel business. The study demonstrates a new perspective on customer relationships considering the impact of the Internet technology in the context of low infrastructure development and Asian business habits. So the results of the study would probably be reflected to be at least some extent in other Asian developing countries, even if different degrees of IT availability. Practical recommendations include tourism service suppliers designing websites to better accommodate customers and keeping information up-to-date, building synergy between internal staff and external systems of customers and providing adequate training for staff. The Internet based-business can be combined with traditional business in the future. If the Internet is well integrated into the overall business, it can enable suppliers to provide more customized service, and enhanced personalized relationships. The suppliers can build switching barriers by investing more in IT infrastructure to technologically link with business customer systems in order to create ‘peer encouragement’ effect. They can attract potential travel agencies switching to their interest travel services. Highlighting the dependability and trustworthiness of the new service suppliers is an attempt to overcome concerns about bad service of a new service supplier. The suppliers may achieve loyal customers through flexibility and the ability to adjust their services and deliveries according to the diversified demands of the business customers. As suppliers learn to manage their relationships, businesses customers will be more satisfied, and more trusting. This will increase the demand for the supplier’s services. |
| Year | 2008 |
| Type | Dissertation |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, Fredric W.; |
| Examination Committee(s) | Dimmitt, Nicholas J.;Chotchai Charoenngam;Murphy, Jamie; |
| Scholarship Donor(s) | Government of Switzerland; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2008 |