scholarly journals The Effectiveness of Switching Barrier on Customer Loyalty Mediated with Customer Satisfaction: Telecommunication Industry, Batticaloa

Author(s):  
Shamini Howshigan ◽  
V. R. Ragel

The mobile telecommunications service providers face technical hitches to meet customer loyalty, to increase the market share. Therefore, service providers should be conscious of the factors affecting customer loyalty in building strong relationships. This study aims to investigate the effectiveness of switching barrier on customer loyalty with regards to customer satisfaction in mobile telecommunication service providers. The objective of this study is to identify the level, relationship and impact of switching barrier on customer satisfaction and loyalty. Finally, the study examines the mediating role of satisfaction. This study was based on the customer’s perspectives and their experiences with mobile telecommunications service in Batticaloa. Data were obtained from the sample 200 customers, and stratified random sampling was used. The descriptive statistics, correlation and regression analysis were used to analyse the data. The results revealed that the switching barrier has a significant impact on loyalty and satisfaction. Same as satisfaction has significant impact on loyalty. And also, switching barrier impact on customer loyalty significantly through customer satisfaction. The study contributes to existing theoretical and practical knowledge by providing evidence regarding the relationships between switching barrier on customer loyalty, and customer satisfaction. The telecommunication service providers, in Sri Lanka; it is growing rapidly with high competition between the service providers. Hence, this research has the potential to contribute to the overall telecommunication service providers in terms of how to maintain long-term relationships between the service providers and their customers through the strategies of switching barrier.

2013 ◽  
Vol 19 (4) ◽  
pp. 687-705 ◽  
Author(s):  
Yong-Jae Park ◽  
Myung-Hwan Rim ◽  
Seung-Koog Lee

Mobile radio frequency identification (RFID) services are expected to be launched in full-scale as a new service option in the telecommunications service market following the development of RFID technology and maturation of the IT infrastructure. Importance of customer loyalty has been widely recognized in business marketing for a long time, and the customer loyalty enhancement strategies for mobile RFID services is of significance to telecommunication carriers in terms of new business value creation. This study identifies the factors affecting customer loyalty for mobile RFID services and presents telecommunication service managers with information useful for improving customer loyalty for related new services. The data was collected from customers with some experience in the use of mobile RFID services through an online survey for an empirical analysis. And the collected data was analysed with structural equation model to verify the cause and effect relationship among perceived quality, switching cost, perceived value, customer satisfaction, switching barrier and customer relationship. The analysis showed that the quality of tag recognition and content quality proved to have a direct impact on the customer satisfaction, whereas connection quality and ease of use would rather indirectly than directly influence customer satisfaction by perceived value. Perceived value and satisfaction affected the loyalty. Adaptation cost affects switching barriers, the higher the switching barriers, the stronger the loyalty. Based on the results of the empirical analysis, practical implications were given. What is more, mobile RFID customers were divided into two groups that are favourably and unfavourably disposed toward the service, and suggested customer loyalty improvement strategies adapted for each group.


2010 ◽  
Vol 9 (2) ◽  
Author(s):  
Ari Setiyaningrum

The purpose of this study is to examine the effect of customer satisfaction on customer loyalty, the effect of trust on customer loyalty, the effect of switching cost as moderating variable on the relationship between customer satisfaction and customer loyalty, and the effect of switching cost as moderating variable on the relationship between trust and customer loyalty. Products are used as objects of this research are celluler telecommunication service providers. Research conducted by survey through questionaires to 160 students of the Economics Faculty of Unika Atma Jaya. The data shows that customer satisfaction influenced customer loyalty significantly, trust influenced customer loyalty significantly, switching cost does not moderate the relationship between customer satisfaction and customer loyalty, and switching cost does not moderate the relationship between trust and customer loyalty.


2017 ◽  
Author(s):  
Bambang Hermawan ◽  
Salim Basalamah ◽  
Asdar Djamereng ◽  
Annas Plyriadi

This study aimed to analyze the effect of service quality and price to corporate, customer satisfaction and customer loyalty of mobile telecommunications services in the city of Makassar. Research conducted on customers of mobile telecommunications services by setting a sample of 225 respondents. Data were analyzed using Structural Equation Model (SEM) through Analysis of Moment Structures (AMOS) Ver. 21. The results showed that the quality of the service directly positive and significant effect on corporate image and customer satisfaction. Service quality has a positive and insignificant effect on customer loyalty. Price perception has a positive and significant effect on corporate image, customer satisfaction and customer loyalty. Corporate image has a positive and significant effect on customer satisfaction. Corporate image has a positive and insignificant effect on customer loyalty.


2016 ◽  
Vol 11 (3) ◽  
pp. 347-361 ◽  
Author(s):  
Ingy Shafei ◽  
Hazem Tabaa

Purpose This research works toward identifying the service quality constructs for the telecommunication industry, the extent they affect customer satisfaction, the perceived switching costs and their significance to the customer. The purpose of this paper is to examine the effect of customer satisfaction and switching barriers on customer loyalty as well as the mediating effect of the switching barriers on the customer satisfaction and loyalty link. Design/methodology/approach An empirical causal framework was developed and tested through qualitative and quantitative phases. In-depth interviews were performed with consumers and experts in the field as well a survey with consumers. The results were analyzed using Cronbach’s α, Pearson’s correlation and regression analysis techniques. Findings The results of the research showed that network quality, customer support and pricing structure are the main service quality constructs that affects the customer satisfaction, showing how the customer is more interested in the core services other than other benefits and value-added services. Originality/value The research presents a comprehensive framework enabling mobile service providers to understand the factors affecting consumer loyalty. In terms of practical implication; the telecommunications sector is changing radically and as the market is approaching its maturity, customer retention has become a critical issue in the success of the mobile telecommunications business. The findings of the research can aid practitioners in firms in focussing their efforts on areas that can build consumer loyalty and retention.


Author(s):  
Pham Thi Thanh Hong ◽  
Tran Van Hai

This study explores the factors influencing the quality of telecommunication services in Hanoi and Ho Chi Minh City. By conducting an online survey of 413 office workers, the results indicate that among the five components of the perceived quality of telecommunications services, reliability, assurance, and empathy are Key factors affecting consumer satisfaction in Hanoi and Ho Chi Minh City. The findings of this research help mobile service providers to understand how consumers perceive the quality of mobile services. Thus, mobile service providers would effectively design marketing strategy to improve customer loyalty as well as enter new markets. Keywords: Mobile service, service quality, online survey, empirical study, Vietnam. References [1] Boohene, R., & Agyapong, G., “Analysis of the antecedents of customer loyalty of telecommunication industry in Ghana: The case of Vodafone (Ghana)”, International Business Research, 4 (2011) 1, 229-240.[2] Leelakulthanit, O., & Hongcharu, B., “Factors that impact customers satisfaction: Evidence from the Thailand mobile cellular network industry”, International Journal of Management and Marketing Research, 4 (2011) 2, 67-76.[3] Eugenia Y. Huang, Sheng-Wei Lin, Ya-Chu Fan, “M-S-Qual: Mobile service quality measurement”, Electronic Commerce Research and Applications, 14 (2015), 126-142, http://dx.doi.org/10.2016/j.elerap.2015.01.003[4] Omotayo, O., & Abiodun, A., “Service quality, value offer, satisfaction, and loyalty: An empirical relationship in the Nigerian telecom industry”, Contemporary Management Research, 5 (2011) 2, 14-23.[5] Lee, Roy Chun, “Telecommunications in Vietnam”, Chung-Hua Institution for Economic Research (CIER). Chinese Taipei WTO Center, C.20 (2011), p.1.[6] Agarwal, S., M. Erramilli, et al., “Market orientation and performance in service firms: role of innovation”, Journal of Services Marketing 17 (2003) 1, 68-82.[7] Agyapong, G., “The effect of service quality on customer satisfaction in the utility industry: A case of Vodafone (Ghana)”, International Journal of Business and Management, 6 (2011) 5, 203-210. http://dx.doi.org/10.5539/ijbm.v6n5p203[8] Yee, R. W. Y., Yeung, A. C. L. & Cheng, T. C. E., “An empirical study of employee loyalty, service quality and firm performance in the service industry”, International Journal of Production Economics, 124 (2010) 1, 109-120. http://dx.doi.org/10.1016/j.ijpe.2009.10.015[9] Le The Gioi and Nguyen Minh Duan, “Improving the competitiveness of VMS-MOBIFONE on mobile communication market”, Journal of Science and Technology, University of Da Nang, 2 (2007) 19, 68-72.[10] Dinh Thi Hong Thuy, “Research the factors affecting on the decision for mobile telecommunications of students in Ho Chi Minh City”, Master Thesis, (2008).[11] Le Thi Tuyet Trinh, “Research the customer satisfaction in using Vinaphone mobile service in Binh Dinh province”, Master Thesis, 2012.[12] Bui Van Trinh and Luu Ngoc Mai Anh, “Research the customer satisfaction in using Viettel mobile service in Hai Giang province”, Master Thesis, 2013.[13] Pizam, A., Ellis, T., “Customer satisfaction and its measurement in hospitality enterprises”, International Journal of Contemporary Hospitality Management 11 (1999) 7, p. 326-339, http://dx.doi.org/10.1108/09596119910293231[14] A. Parasuraman, Valarie A. Zeithaml, Leonard L. Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research”, The Journal of Marketing, Vol. 49, No. 4 (1985), pp. 41-50[15] Cronin Jr, J. J., & Taylor, S. A. “SERVPERF versus SERVQUAL: reconciling performance-based and perceptions-minus-expectations measurement of service quality”. The Journal of Marketing, 58 (1994). 125-131.[16] Aydin, S. and G. Ozer, “National Customer Satisfaction Indices: An Implementation in the Turkish Mobile Telephone Market”, Marketing Intelligence and Planning, 23 (2005) 5, 486-504.[17] Mishra, R.C and Sandilya, A., Reliability and Quality Management, New Age International Publishers, 2009.[18] Torsten J. Gerpott, Ilknur Bicak, “Telecommunication service choice and use among migrants: The case of German-Turkish consumers”, Computers in Human Behavior, 6 (2016), 584-596, http://dx.doi.org/10.2016/j.chb.2016.03.018[19] Uddin, M. B., Akhter, B., “Customer satisfaction in mobile phone services in Bangladesh: A survey research”, Management & Marketing X (1) (2012), 20-36.


2014 ◽  
Vol 12 (1) ◽  
pp. 74-93 ◽  
Author(s):  
Md. Hasebur Rahman

Identification of factors responsible for customer satisfaction is a key concern of marketing scholars and marketers in now a days and it will remain in the future. There is considerable evidence that quality factors affecting customer satisfaction in numerous ways. However, this empirical study is initiated to find out what particular factors responsible for customer satisfaction in the mobile telecommunication industry in Bangladesh. 282 samples have been collected through structured questionnaire; study reveals that service innovativeness, service reliability, service competitiveness and service consistency have significant influence on making customer satisfied and the operator’s network/signal coverage, pricing, offering, fulfillment of customer demand, value added service, brand value and operators contribution for society have insignificant influences on making customer satisfied at five percent level of significant at multiple regression analysis. On the basis of these findings; study concludes that in promoting customer satisfaction mobile service providers should be concerned for factors responsible for insignificant influence on customer satisfaction and care of those factors have significant influence on promoting customer satisfaction in telecommunication industry in Bangladesh.


Author(s):  
Bambang Hermawan ◽  
Salim Basalamah ◽  
Asdar Djamereng ◽  
Annas Plyriadi

This study aimed to analyze the effect of service quality and price to corporate, customer satisfaction and customer loyalty of mobile telecommunications services in the city of Makassar. Research conducted on customers of mobile telecommunications services by setting a sample of 225 respondents. Data were analyzed using Structural Equation Model (SEM) through Analysis of Moment Structures (AMOS) Ver. 21. The results showed that the quality of the service directly positive and significant effect on corporate image and customer satisfaction. Service quality has a positive and insignificant effect on customer loyalty. Price perception has a positive and significant effect on corporate image, customer satisfaction and customer loyalty. Corporate image has a positive and significant effect on customer satisfaction. Corporate image has a positive and insignificant effect on customer loyalty.


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