ABSTRACT Impact of Hedonistic and Social Factors on Customer Satisfaction and Loyalty: a study of Mobile Phones Users in Bangkok, Thailand This study examines the impact of hedonistic and social factors together with perceived product and service quality on the Mobile phone users’ satisfaction and loyalty. It aims to help vendors, manufacturers, marketing research companies, and customers to evaluate future development of mobile phones. Customer satisfaction and loyalty are central concepts in modern marketing and their influence has made these rapid market changes possible. Customer satisfaction benefits firm in many ways, from increasing loyalty, profitability and market share. This study adds hedonistic and social factors to customer satisfaction and loyalty measurement and create more accurate model for mobile phone future product and service evaluations. This descriptive research used mainly quantitative approach to study conceptual mobile phone customer satisfaction model. Target population of this research is Thai and/or English speaking mobile phone owners living in mainly Bangkok area Thailand. Survey was done by online internet survey, 147 responses were received and used in quantitative analysis. The results showed that hedonistic and social factors, together with perceived product and service quality, had positive correlations to customer satisfaction and finally loyalty. Customer satisfaction did correlate with positive customer voice and loyalty, but negative customer voice was found not to have correlation to these. Hedonistic and Social Values should be measured together with service and product quality, to get better understanding how great mobile phone customer satisfaction and loyalty can be achieved. I recommend using this model to get better understanding how customer satisfaction and loyalty of mobile phones has also hedonistic and social values. Keywords: Customer Satisfaction, Customer Loyalty, Customer Voice, Hedonistic Values, Social Values, Mobile Phone

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Journal Article
Impact of Hedonistic and Social Factors on Customer Satisfaction and Loyalty:
A Study of Mobile Phone Users in Bangkok, Thailand
Veijo Olavi Aalto
Stamford International University
vexi@hotmail.com, veijo.a@stamford.edu
ABSTRACT
Study examines the impact of hedonistic and social factors together with perceived product and service
quality on the Mobile phone users’ satisfaction and loyalty. It aims to help vendors, manufacturers, marketing
research companies, and customers to evaluate future development of mobile phones. The findings suggest that
hedonistic and social values should be measured together with service and product quality, to get better
understanding how great mobile phone customer satisfaction and loyalty can be achieved.
Keywords: Customer Satisfaction, Customer Loyalty, Customer Voice, Hedonistic Values, Social Values, Mobile
Phone
1. INTRODUCTION 6. What features are most used by mobile phone users in
Bangkok area?
Customer satisfaction is a central concept in modem 7. Does new smartphone era change the people’s behavior on
marketing thought and practice; it is an important goal of all using mobile phone?
business activities. It measures how products and services
supplied by a company meet or surpass customer expectation. Objectives of the Study:
When measuring customer satisfaction, results usually explain • This study examines the impact of hedonistic and social
customer experience long period of time (Yi, 1989) (Anderson, et factors together with perceived product and service quality
al., 1994). Kotler writes in book of Marketing Management, page on the customer satisfaction and loyalty from mobile phones.
145, “Satisfaction is a person’s feelings of pleasure or • Study also examines customer satisfaction correlations to
disappointment resulting from comparing a product’s perceived both positive and negative customer voice and finally to
performance (or outcome) in relation to his or her expectations. If loyalty.
the performance falls short of expectations, the customer is • Study aims to help future mobile phone evaluation of
dissatisfied. If performance matches the expectations, the vendors, manufacturers, marketing research companies and
customer is satisfied. If performance exceeds expectations, the also customers.
customer is highly satisfied or delighted.” (Kotler & Keller, 2006). • One objective is also to compare customer satisfaction of
Hedonistic and social consumption models have emerged mobile phones leading vendors in Bangkok area Thailand.
recent years. Now customers want something more from their Comparison helps to understand vendor’s rapid changes of
phones. Mobile phone use must be enjoyment, meet social mobile phones market shares and profit also globally.
requirements and social signaling. Good materials and aesthetic
appeal is also needed (Arruda-Filho, et al., 2010).
This study applies hedonistic and social values to customer
satisfaction measurement and suggests more accurate model for
future customer satisfaction and loyalty evaluations.
Mobile phones are usually categorized as so called traditional
mobile phones and more featured smartphones. There is no clear
definition for those in literature; some so called traditional
phones can use for example social media and internet. This study
scoped both categories.
Main Research Questions:
1. How to measure customer satisfaction and loyalty from
mobile phone?
2. What are factors for greater customer satisfaction and loyalty
from mobile phones?
3. How do hedonistic and social factors effect on customer Figure 1: Conceptual Framework
satisfaction and loyalty?
4. How does the satisfaction level from mobile phones users in The theoretical frameworks reviewed led to the following
Bangkok area different from the other areas? hypotheses:
5. What operating system gives best satisfaction level from Hypothesis 1: There is a positive relationship between Price Index
mobile phone users in Bangkok area? and Perceived Product Quality.

2. 2
Hypothesis 2: There is a positive relationship between Price Index 2.2. Mobile Phone
and Perceived Service Quality.
Hypothesis 3: There is a positive relationship between Customer A mobile phone (also known as cell phone) is a handheld
Expectations and Perceived Product Quality. device that can make and receive at least telephone calls over a
Hypothesis 4: There is a positive relationship between Customer radio link whilst user is moving a wide area. Mobile phone is
Expectations and Service Product Quality. connected to a cellular network provided by a service provider,
Hypothesis 5 There is a positive relationship between Brand allowing access to the public telephone network (Wikipedia,
Image and Perceived Hedonistic Values. 2012).
Hypothesis 6: There is a positive relationship between Brand Mobile phones can be categorized as two groups, feature
Image and Perceived Social Values. phones and smartphones. Feature phones were used primarily for
Hypothesis 7: There is a positive relationship between Perceived basic talk and text, and smartphones had more functions, like
Product Quality and Customer Satisfaction. Internet browser, social media and different small programs,
Hypothesis 8: There is a positive relationship between Perceived called applications. However, now also feature phones have these
Service Quality and Customer Satisfaction. functions and smartphones have now typically even more
Hypothesis 9: There is a positive relationship between Perceived features and functions (Wikipedia, 2012).
Hedonistic Values and Customer Satisfaction. There is no clear definition for smartphones and feature
Hypothesis 10: There is a positive relationship between Perceived phones, it can be said that today’s smartphones features are in
Social Values and Customer Satisfaction. future feature phones features. Kano model explains the shift
Hypothesis 11: There is a positive relationship between Customer from attractive features to must-be features (Kano, et al., 1984).
Satisfaction and Loyalty.
Hypothesis 12: There is a positive relationship between Customer
Satisfaction and Positive Customer Voice.
Hypothesis 13: There is a positive relationship between Positive
Customer Voice and Loyalty.
Hypothesis 14: There is a negative relationship between Customer
Satisfaction and Negative Customer Voice.
Hypothesis 15: There is a negative relationship between Negative
Customer Voice and Loyalty.
2. LITERATURE REVIEW
2.1. Statistics and Demographic Backgrounds of Thailand
Thailand is South East Asian country of population 67 million. Figure 3: Today’s smartphones; Samsung Galaxy S3 and iPhone
34% of population is living in urban areas of the country. Official 4s
population in capital, Bangkok, is 6.9 million. GPD per capita is
$9,700 (2011). 42.4% labor force work in agriculture, 37.9% in On a full-year basis, the worldwide mobile phone market
services and 19.7% in industry (CIA_The_World_Factbook, 2012). (included both smartphones and feature phones) maintained
International Telecommunication Union ITU, United Nations growing 11.1% in 2011, which was 18.7% less in year-over-year
specialized agency for information and communication growth experienced in 2010. While part of the slowing growth
technologies, statistics from Thailand show that mobile cellular can be attributed to decreasing demand for feature phones,
subscriptions penetration has reach 100% in Thailand continued two-digit growth in the years ahead as smartphones
(International_Telecommunication_Union, 2011). continue to capture a greater share of the overall global market.
2011 2010
2011 Market 2010 Market
Company Units share Units Share
Nokia 422478 23.81 % 461318 28.89 %
Samsung 313904 17.69 % 281066 17.60 %
Apple 89263 5.03 % 46598 2.92 %
LG 86371 4.87 % 114155 7.15 %
ZTE 56882 3.21 % 29686 1.86 %
RIM 51542 2.90 % 49652 3.11 %
HTC 43266 2.44 % 24688 1.55 %
Huawei 40663 2.29 % 23815 1.49 %
Motorola 40269 2.27 % 38554 2.41 %
Sony
Ericsson 32598 1.84 % 41819 2.62 %
Others 597327 33.66 % 485452 30.40 %
Total 1774563 100.00 % 1596803 100.00 %
Figure 2: Mobile cellular subscriptions per 100 inhabitants, 2001- Table 1: Worldwide Mobile Device Sales to End Users by Vendor
2011 in 2011 (Thousands of Units) (Gartner/Feb, 2012)
Worldwide Mobile Device Shipments by Operating system
2Q12 show Android huge success, it had 68.1% market share.

3. 3
1999 and covered 11 countries and 100,000 interviews (European
2Q12 4Q11 Commission, 2005).
Operating 2Q12 Market 2Q11 Market Hong Kong Customer Satisfaction Index (HKCSI) is based on
System Units share Units Share the concept of cumulative customer satisfaction. It was
Android 104800 68.1 % 50800 46.9 % introduced 2005 to be more customer oriented performance
iOS 26000 16.9 % 20400 18.8 % indicator that will present the product quality. It was constructed
Blackberry mainly from consumption point of view, while previous models
OS 7400 4.8 % 12500 11.5 %
concentrate more on production. Model is based on findings of
Symbian 6800 4.4 % 18300 16.9 %
10000 customer interviews on 60 products conducted in 1998
Windows 5400 3.5 % 2500 2.3 %
and 2000 using computer assisted telephone system. Chan
Linux/Bada 3500 2.3 % 3300 3.0 %
introduced Hong Kong Customer satisfaction Index that instead
Others 100 0.1 % 600 0.5 %
of product attributes, concentrates more on cumulative customer
Total 154000 100.00 % 108300 100.00 %
satisfaction. (Chan, et al., 2003)
Table 2: Worldwide Smartphone Shipments by Operating System
The first Norwegian Customer Satisfaction Barometer (NCSB)
in 2Q12 (Thousands of Units) (IDC, 2012)
model was identical to the original ACSI model with the exception
that it included corporate image and its relationships to customer
2.3. Customer satisfaction
satisfaction and also customer loyalty (Johnson, et al., 2001).
These indexes are expected to give an important complement
Customer satisfaction is a central concept in modem
to traditional measures of economic performance and providing
marketing thought and practice; it is an important goal of all
useful information not only to the firms, but also to shareholders.
business activities. It measures how products and services
There are several national customer satisfaction index models.
supplied by a company meet or surpass customer expectation.
The concept behind these models requires a methodology with
When measuring customer satisfaction, results usually explain
certain properties (Hu, et al., 2011) (Fornell, et al., 1996).
customer experience long period of time (Yi, 1989) (Anderson, et
The methodology must recognize that the customer
al., 1994). Kotler writes in book of Marketing Management, page
satisfaction index and the other constructs in the model represent
145, “Satisfaction is a person’s feelings of pleasure or
different types of evaluations that cannot be measured directly.
disappointment resulting from comparing a product’s perceived
To this end, these constructs should be seen as latent variables
performance (or outcome) in relation to his or her expectations. If
and their scores or indexes should be general enough to be
the performance falls short of expectations, the customer is
comparable across firms, industries, sectors, and nations.
dissatisfied. If performance matches the expectations, the
Second, the customer satisfaction index must be measured
customer is satisfied. If performance exceeds expectations, the
in a way that not only accounts for consumption experience,
customer is highly satisfied or delighted.” (Kotler & Keller, 2006).
but also is forward-looking. Accordingly, the Customer
High customer satisfaction has many benefits for the firms,
Satisfaction Index is embedded in a system of cause and effect
such as increased; customer loyalty, profit, market value of equity
relationships (Hu, et al., 2011).
and repeated purchase intentions. It has negative impact on
customer complaints and it offers a positive word-of-mouth. Also
Latent variables SCSB ACSI EPSI HKCSI NCSB
customer satisfaction has impacts on revenue generation and
cost of doing business (Fornell, et al., 2006) (Anderson, et al., 1994) Perceived performance Yes Yes
(Sharma, et al., 1999). Customer expectations Yes Yes Yes Yes
(Prepurchase)
Customer satisfaction Yes Yes Yes Yes Yes
2.4. National Customer Satisfaction Index Models Customer complaints Yes Yes
Customer loyalty Yes Yes Yes Yes Yes
There are some simple product attributes models, like
Perceived quality Yes
introduced by for example Bettman (Bettman, 1974). He used list
(Postpurchase)
of product attributes, and if those were met, customer would be
Perceived value Yes Yes Yes
satisfied. For example if toothpaste would prevent cavities, fresh (Postpurchase)
mouth and be economical to use, it would have satisfied Corporate image Yes Yes
customers.
Perceived service Yes
It was soon discovered that more fundamental level of quality
satisfaction measurement was needed. All national models have Perceived product Yes
similar causal construct for customer satisfaction. Models have quality
many distinctions, so the results cannot be compared with each Customer Yes
other. characteristics
The Swedish Customer Satisfaction Barometer (SCSB) model Customer voice Yes
established in 1989 was the first National Customer Satisfaction Quality Drivers Yes
Index Model. Model was successful and modified by other Price index Yes
nations (Fornell, 1992).
Complaints behaviour Yes
American Customer Satisfaction Index (ACSI) is widely used. It (handling)
was developed by the National Quality Research Centre (NQRC) Affective commitment Yes
at the University of Michigan and was introduced in 1994 (ACSI,
Calculative Yes
2012). commitment
European Performance Satisfaction Index (EPSI) is another
modification of SCSB and ACSI. It was previously known as ECSI, Table 3: Comparison of National Customer Satisfaction Models
European Customer Satisfaction Index, but was renamed by
European Commission. The first pilot phase study were finished in

4. 4
Some academic research has shown that the national ACSI acquaintances. Online discussion boards are used to share
score is a good predictor of Gross Domestic Product (GDP) customer’s opinions about their purchase (Arruda-Filho, et al.,
growth, and an even stronger predictor of customer consumption 2010).
growth. ACSI is most widely used, is updated quarterly, factoring Discussion boards are not the only interactive social media
in ACSI scores from more than 225 companies in 47 industries in that can reach lot of customers. All leading vendors use also
about 10 countries (ACSI, 2012). Facebook or Twitter to share opinions with their customers. Some
EPSI used in more than 20 European countries. In most magazines and enthusiastic customers have also opened their
countries, EPSI Rating covers the financial sector (banking and own Facebook pages or blogs to express their voice in social
insurance), the ICT sector (tele- and data communication), energy, media.
distribution and trade, personal transportation together with
dominant socio-ethical sectors like education and health (EPSI- 3. RESEARCH METHODOLOGY
Rating, 2012).
SCSB, HKCSI and NCSB are used mainly in countries where 3.1. Research Design
these models were developed
This descriptive research used quantitative research methods
2.5. Hedonistic and Social Consumption patterns to study conceptual mobile phone customer satisfaction model.
Qualitative techniques were also used in open ended questions of
Innovative customers seem to adopt new technology not just the survey. It tested a new model how customer satisfaction
utilitarian, but also for experimental purposes. A study of early forms. Model is a complex causal model of direct and indirect
iPhone adapters showed that even utilitarian customers have causal links to customer satisfaction and loyalty. These links were
hedonic and social factors present in their consumption pattern. formed to 15 hypotheses, and tested by using a questionnaire.
Customers choose products that give more than just functions, The research tested three hypothesis consequences of
but give enjoyment, social status, social acceptance and customer satisfaction, positive and negative customer voice and
playfulness (Arruda-Filho, et al., 2010). Hedonistic purchase often loyalty, to ensure this new model has important benefits of
creates sense of quilt because of the high price paid for customer satisfaction.
something that is not utilitarian. However, customers are
constantly looking for ways to justify fun (Okada, 2005). 3.2. Target Population and Sampling
Even Apple marketed 2007 iPhone as new mobile phone,
customers seem to see it different way. Customers were more The informants were Thai and/or English speaking mobile
concern joy of use than communication features. Hedonistic phone owners living in mainly Bangkok area Thailand.
features gave technically oriented customers motivation to buy. Samples demographics data consists of;
Apple Acolytes, the customers who are highly devoted to the  Nationality
Apple brand, justify their iPhone usage by highlighting only the  Living region in Thailand
features that worked well in their Phone (Arruda-Filho, et al.,  Gender
2010).  Age
Some examples on hedonistic and social consumption  Education
patterns:  Household size
Haptic Experience  Household income
Customers want to gain information and evaluate phone by The above data was compared to statistics of Thailand, to
touching. Customers want to try the touch screen and also feel make sure sample is reliable and represents population.
the size, weight and materials.
Enhanced Aesthetics 3.3. Research Instrument and Measurement Scale
Contemporary design and aesthetic appeal comes important
aspect to satisfy social needs. For example iPhone user wants to The researcher delivered the online survey via Survey Monkey
leave phone on table when having lunch, because it is “sexy and a service during one month. Moreover field interviews were
great conversation starter”. conducted, which were targeted to demographics groups
Hedonic social contagion underrepresented in online survey.
Smooth, enjoyable use experience, allows user to signal the The questionnaire was translated from English to Thai
hedonic pleasure to others; i.e. Sharing their fun. language by native speaker. To ensure the accuracy, the
Experiential values questionnaire was translated back from Thai to English by other
Innovative customers are constantly looking for newest person, and those questions were be compared to original
technology. They get hedonic satisfaction for been one of first to questions.
own new phone and use its features. Technological people Likert 10-scale was used in survey to indicate respondent
primary concern is to own the best equipment ever launched. attitudes how strongly they agree/disagree with carefully
Hedonic aspects allow customers to justify the usefulness of the constructed statements. Each value was formed by mean values
purchase. multiplied by a scaling constant 10. If all customers interviewed
Technologically innovative, multifunctional, and symbolically give the highest possible score of 10 to all indicators, the
powerful products with aesthetic design combined with good product’s score can reach its maximum score of 100. Similar
usability seem to have high degree of customer satisfaction and scoring is used in national models.
loyalty (Gemser, et al., 2006).
Example of perceived hedonistic and social values indexes:
2.6. Customer Voice in Social media
Social media has also given customers a new channel to Perceived Hedonistic Values
express positive or negative customer voice. Customers share Overall enjoyment of use. (Q18): My phone is overall great joy
opinions with friends and sometimes even thousands of to use.

5. 5
Enjoyment of touch. (Q19): My phone feels excellent in hand.
(Material, size, weight...)
Meet own requirements of exploring. (Q20): I like very much
to explore new features for my phone. (Download applications etc.)
Formula for 100 scale index:
Perceived Social Values
Meet social requirements. (Q21): I like to show new features of
my phone to my friends.
Social value compared to friends. (Q22): My phone is more
"cooler" than my friend’s phones.
Social value compared to competitors. (Q23): My phone is
"coolest" in market at the moment.
Social signaling. (Q24): I usually keep my phone visible in
Figure 4: Pearson Correlations of the model
public places.
4.2. Non-Hypothesized Findings
Formula for 100 scale index:
It was discovered that Windows Phone gave highest
customer satisfaction when measured operating systems.
4. RESEARCH FINDINGS AND DATA ANALYSIS However, iOS was almost equal. Third was Android operating
system.
Survey was done by online internet survey and field test. Most common features used in Bangkok area daily were
Internet survey was sent to all working or studying in Stamford calling (81.6%), clock and alarm (71.4%), internet browsing
University. Invitation was also sent to 18 other universities around (49.7%), email (44.9%), social networking (41.5%) and calendar
Thailand. Also social media was used to invite to survey. (39.5%) applications. Least used were Tweeting, as 78.9% had
Response rate was lower than expected, 147 answered never tried it.
satisfactory to online survey from tens of thousands potentials. As people are using a lot of features that are so called
Field survey responses were 32, but they were all rejected smartphone applications daily, we can say that smartphone era
because all answers seem to be done by only one person. has changed the way customers are using their mobile phones.
Even a relatively low number of responses, results were still Socio-economic characteristics of respondents show that
usable. Even with low response rate, data can be valid if non- typical respondent is male, 30-39 years old Thai, living in Bangkok
response effects are tested (Templeton, et al., 1997). Mid-testing area. His highest education level is bachelor degree. Household
was done with 106 respondents, and hypothesizes correlations size is 4 and household income more than 100,001 Baht. His
were approximately same level as with 147 respondents. phone brand is Nokia and he daily calls and sends text messages.
To test data internal consistency, Cronbach’s Alpha test was He also uses a lot clock, alarm, phone calendar, email and internet
used. Test is widely used as a measure of the internal consistency browser. Reading books, Tweeting, watching videos and map is
or reliability of a psychometric test scores. Test score for not used and often never even tested
Cronbach’s Alpha was 0.911, so the data is excellently consistent. The test result for the Levene’s t-values shows that there is no
However, if Negative Customer Voice would be removed from significant difference between the genders in perceived
data, consistence would be even better, 0.926. hedonistic and social values, customer satisfaction and loyalty.
Also the 2-tailed significance values are above the required 0.05
4.1. Hypothesized Findings for statistical significance.
Highest Mean Customer Satisfaction has ZTE, and then comes
Results show that there is strong, r > 0.7, correlation in Apple and HTC. Apple has clearly highest loyalty.
hypothesis 1, 2, 3, 4, 5, 7 and 8. Correlation is moderate; r is
between 0.3 and 0.7, in hypothesis 6, 9, 10, 11, 12 and 13. Weak
and non-significant correlation appeared in hypothesis 14 and 15.
Conclusion for hypothesized findings paths coefficients were
significant and correct sign, except those (14 and 15) related to
negative customer voice.
Model presented in conceptual framework was usable for
measuring customer satisfaction and loyalty of mobile phone
customers. However, the negative customer voice should be
removed from model, as it had no relevant correlations. That
would also increase data consistency, as score from Cronbach’s
Alpha would be higher. All other factors were useful.
Hedonistic and social factors had significant correlations to
customer satisfaction, and customer satisfaction had significant
correlation to loyalty. Hedonistic and social factors effect
positively to customer satisfaction.
Figure 5: Customer satisfaction of brands

6. 6
In future research I think this model usefulness with other
type of product should be tested. I would think that for example
automobiles may have same kind hedonistic and social values as
mobile phones.
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