The impact of social media marketing on customer loyalty using telecommunications services in Vietnam

Abstract

This paper is based on the theory of Social Media Marketing and the Stimulus Feedback Mechanism model. The research sample was surveyed from 300 customers using MobiFone telecommunication services in Khanh Hoa and Dak Lak. The specific objective is to identify the components of Social Media Marketing (SMM) and determine the extent to which those factors affect customer loyalty. The qualitative and quantitative research methods are applied to evaluate the influencing factors of SMM on the loyalty of customers using telecommunications services at MobiFone Service Company Region 7. The results showed that five factors of the SMM activities (interaction, informational, word of mouth, personalization, trending content) have a direct impact on customers' perceived value (Value Equity, Brand Equity, Relationship Equity). Besides, except for the factor of brand equity, value equity and relationship equity have impacts directly on customer loyalty. Based on the results of empirical research on the influence of SMM on the loyalty of customers who are using MobiFone telecommunications services at Company 7, some administrative policy implications are suggested to increase customer loyalty to mobile network services and also increase the impression of MobiFone brand.