The Mediating Role of Customer Satisfaction on Brand Loyalty in Relation to Service Quality and Price Among Telecommunication Companies

The Mediating Role of Customer Satisfaction on Brand Loyalty in Relation to Service Quality and Price Among Telecommunication Companies

DOI: 10.4018/978-1-6684-5897-6.ch008
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Abstract

The present study aimed at examining the influence of service quality and price on brand loyalty through the mediating effect of customer satisfaction. The researcher prepared a well-structured questionnaire and collected data from 150 customers on a convenient sampling method. The population of the study area is Kerala state. The study identified that any change in service quality and price will yield a 37% change in the dependent variable that is the loyalty of the customer. The study also found that there is a mediating effect between the independent and dependent variable. The researcher concluded that customer satisfaction is an important instrument for evaluating service providers' service quality, and it may be measured using customer expectations for a variety of services supplied by telecommunication service providers.
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Literature Review

(Kumar et al., 2014) examined the customer satisfaction towards the mobile service providers like BSNL, Airtel, Reliance, Vodafone, Aircel, and Idea. The researcher used the variables such as network satisfaction, Offers provided by mobile service providers like GPRS, Free-roaming, full talk time, SMS pack, ease of availability of recharge coupons, etc. for analysing the satisfaction of the consumers. The study found that the majority of the customers are satisfied with the performance of Vodafone and Reliance but some of the customers of BSNL and Airtel are dissatisfied with the performance.

(Hajar et al., 2022) examined the effect of value innovation on customer satisfaction and customer loyalty, companies’ performance and sustainable growth. The study revealed that all the indicators of measurement model had a high statistical significance and positive relationship between the variables. The researcher revealed that mediating effect and loyalty of both companies performance and long term growth and concluded that the importance of value innovation creating the knowledge, skills, experience, satisfaction and loyalty. The study identified that the value innovation is an efficient approach for firm’s performance and sustainable competitive advantage.

(Lie et al., 2019) tested the impact of service quality and consumer trust on the customer loyalty with a mediating variable of customer satisfaction. The study concluded that the constructs such as price and trust have a significant influence on loyalty of the consumers. And the service quality variables are negatively influence the consumer loyalty. The researcher suggested that choosing transportation services for customers, the Go-Jek company should consider auxiliary variables including service quality, cost, and customer confidence. The Go-Jek companymust develop a sophisticated system to merge the identity of Go-Jek service users with consideration for customer convenience procedures in the area of service quality.

(G & Shanthi, 2017) studied the perception of customers towards the Indian telecommunication industry. The researcher used the variables like responsiveness, reliability, assurance, tangibility, empathy, and perceived network quality for measuring the perception. The researcher found that the variables positively influence the perception of the customers of Sathyamangalam.

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