SERVICE QUALITY AND CUSTOMER LOYALTY: MEDIATED BY CUSTOMER SATISFACTION IN THE TELECOMMUNICATION INDUSTRY
Publication Date : 01/11/2019
This research was triggered by the interest to inquire what drives customer loyalty amongst users of telecommunication services in the wake of hyper growth in this industry. Students in higher education institutions are heavy users and understanding their loyalty inclination would give some idea to understand their future needs. These needs keep changing and providing quality services with view to achieving satisfaction to maintain customer loyalty is the key to sustain profitability. The main aim of this study was to determine and evaluate the mediating effect of customer satisfaction between service quality and customer loyalty relationship in the telecommunication industry amongst students in Malaysia. To analyze the relationships among customer satisfaction, service quality and customer loyalty, quantitative methods applying deductive approaches involving the SEM analysis was adopted. The implementation of research framework designed was also subjected to partial least square procedure on data collected from a survey that yielded 114 usable questionnaires. Four hypothesis were postulated in relevance to the relationship among key variables with literature review support and tests revealed that all hypothesis is not rejected. The study revealed that service quality directly influences customer loyalty strongly and positively. Further analysis also showed that customer satisfaction partially mediates the relationship between service quality and customer loyalty. In future more research needs to be done to investigate the role of customer satisfaction amongst student population of the Malaysian telecommunication industry. Future research should utilize experimental design with longitudinal data in this population via vigorous measures on factors affecting customer loyalty as this will give better insights to telecommunication companies to better serve their future market with the view towards retaining customers.
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