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

Author

Listed:
  • Nguyen Xuan Tho
  • Min-Tsai Lai
  • Huey Yan

Abstract

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

Suggested Citation

  • Nguyen Xuan Tho & Min-Tsai Lai & Huey Yan, 2017. "The Effect of Perceived Risk on Repurchase Intention and Word – of – Mouth in the Mobile Telecommunication Market: A Case Study from Vietnam," International Business Research, Canadian Center of Science and Education, vol. 10(3), pages 8-19, March.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:3:p:8-19
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    Cited by:

    1. Sadoth Giraldo Acosta & Judith Cavazos Arroyo & Yésica Mayett Moreno & Cecilia Isabel Calderón Valencia, 2022. "Factores que influyen en la intención de compra física y en línea de adultos mayores en supermercados," Estudios Gerenciales, Universidad Icesi, vol. 38(165), pages 479-492, November.

    More about this item

    Keywords

    perceived risk; WOM; first-order and second-order CFA; SEM; mobile telecommunication market; Vietnam;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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