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

Authors:
  • NTNguyen Xuan Tho
    Nguyen Xuan Tho
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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.

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