Factors affecting customer loyalty for mobile telecommunication industry

Abstract

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.

Citation

Shafei, I. and Tabaa, H. (2016), "Factors affecting customer loyalty for mobile telecommunication industry", EuroMed Journal of Business, Vol. 11 No. 3, pp. 347-361. https://doi.org/10.1108/EMJB-07-2015-0034