scholarly journals Customer Loyalty a Key to Success: A Case Study in Telecom Sector of Pakistan

2021 ◽  
Vol 9 (2) ◽  
pp. 103-111
Author(s):  
Sajjad Hussain ◽  
◽  
Shahzad Mehmood Mehmood ◽  
Asim Masood ◽  
Azhar Naeem ◽  
...  

This paper identified the role of the independent variable like service quality, taking perceived value, word of mouth and customer satisfaction (mediation/ intervening variables) in creating customer loyalty (dependent variable) among the telecom user (mobile phone users). The empirical portion have extensive literature regarding the mentioned variables and shown their impact towards the customer loyalty. The telecom industry has been facing cut throat competition due to the market saturation, decrease in ARPU (average revenue per user), and shift to internet based (cheaper sources) communication tools, unexpected mergers, higher cost and decreasing the margin. Thus, telecom companies have been thinking about devising the best possible suitable strategies for creating the customer to maintain their survival and growth. The simple random techniques are used for sample selection and self-administration questionnaire is the tool for collecting data. A sample of 300 universities students from Rawalpindi and Islamabad is base for analysis. Amos 20 is the software and SEM is the tool for extracting result. Dual relationship is tested likewise direct (service quality and customer loyalty) and indirect through mediating variables. Results showed that customer satisfaction is the strongest mediator in developing a high-quality customer loyalty service, and it has more effect than the direct link between quality of service and customer loyalty. It leads industrial professionals to develop a strategy based on customer satisfaction. It is concluded that customer satisfaction increases the level of the industrial professionalism. Hence the customer satisfaction increases the service quality and customer loyalty services. In nutshell, the cooperate image and switching barrier can be possible leads for the future research.

2019 ◽  
Vol 11 (8) ◽  
pp. 2408 ◽  
Author(s):  
Noor Ul Hadi ◽  
Nadia Aslam ◽  
Amir Gulzar

Generally, the current scenario in the hyperactive corporate world, and specifically in the telecom sector, renders companies to compete concurrently on two fronts: Expansion of their customer base and the retention of their current customers. In order to explore and examine the latter concept, the current study hypothesizes the effects of sustainable service quality on customer loyalty with a mediating role of customer satisfaction conceptualized through the reciprocity theory. The study also considers the suggested moderating role of switching cost by theorizing the Apostle model. Pertinently, the satisfied customer may not be loyal if the switching cost is low, since the dynamics of the switching cost provide a useful insight into the phenomenon of retaining the customers through customer satisfaction. The research opts for explanatory study where data were conveniently collected. The study has used the PROCESS macro model 4 and 14 to analyze the data. Findings reveal that the role of customer satisfaction is significant but the effect of the switching cost was considered to be insignificant, elucidating that a satisfied customer will remain loyal even if the switching cost is low. It means that sustaining service quality longitudinally did not affect customer loyalty in the presence of a low switching cost. With a view to complement the study, managerial implications of a switching cost have also been discussed.


Author(s):  
Tariq Saeed Mian

Maintaining a strong and loyal customer base is the objective of every organisation. However, in reality this is difficult to achieve in the current competitive environment. When the widespread challenges of the business environment are taken into account, organisations cannot simply plan to absorb new customers but instead adopt the strategy of preserving existing customers and promoting their loyalty to the organisation. This study examined customer loyalty in the banking sector in the Kingdom of Saudi Arabia (KSA). A theoretical model was constructed through an extensive literature review and by extracting the most relevant and important variables for customer loyalty. A questionnaire was used to collect data from customers of different banks. Regression results showed that service quality significantly influences customer satisfaction and customer trust. Furthermore, customer satisfaction and trust significantly affect customer loyalty towards banks. In this respect, service quality is imperative to maintain customer loyalty through customer satisfaction and trust. 


2021 ◽  
Vol 7 (1) ◽  
pp. 143-154
Author(s):  
Danish Ali ◽  
Mohammad Alam ◽  
Hazrat Bilal

The purpose of this research is to examine the influence of service quality (SQ), Price (P) and Restaurant Environment (RE) on customer loyalty (LOY), via the mediating role of customer satisfaction (SAT) in the context of the restaurant industry in the capital city of Pakistan (Islamabad). Five hundred questionnaires were distributed at various restaurants in a different location at Islamabad, and 385 were returned. Multiple Regression Analysis was used to test hypothesis relationships. The outcome of this research shows that SQ, Pand RE have a positive association with the SAT. In contrast, customer satisfaction also leads to customer loyalty. Moreover, customer satisfaction significantly mediates the association among SQ, P, RE, and customer loyalty. The restaurant operators need to consider that good quality of service, fairness in price, pleasant and attractive restaurant the environment can increase customer satisfaction, which often contributes to customer loyalty.


2020 ◽  
Vol 32 (3) ◽  
pp. 543-558 ◽  
Author(s):  
Neale J. Slack ◽  
Gurmeet Singh

PurposeThe purpose of this study is to determine the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.Design/methodology/approachIn total, 480 supermarket customers participated in an intercept survey in four urban centres of Fiji. Descriptive statistics were used to determine the level of service quality provided by supermarkets, and inferential statistics to determine the gap between customer's service quality expectations and perceptions and to test the research hypotheses.FindingsThe findings indicate service quality of supermarkets is perceived as being unsatisfactory, service quality significantly affects customer satisfaction and loyalty and customer satisfaction partially mediates the relationship between service quality and customer loyalty reducing customer's perceptions of service quality, leading to lower customer loyalty.Practical implicationsThis study provides an indication as to where supermarkets should target their marketing attention and scarce corporate resources and may help in their efforts to service, satisfy, retain and attract more long-term loyal customers in the increasingly competitive supermarket sector. This research could inform government policy makers in sequencing the supermarket sector transformation and assist local supermarkets to adapt to this changing retail landscape.Originality/valueThis study advances our understanding of the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.


2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.


2013 ◽  
Vol 3 (2) ◽  
pp. 1-19
Author(s):  
Albert Chong Yan Vun ◽  
Amran Harun ◽  
Jaratin Lily ◽  
Charlie Albert Lasuin

The study of e-consumer behavior is getting more attention in e-commerce related literature. Acknowledging the importance of e-commerce, this study aims to investigate the influence of e-service quality dimensions (efficiency, requirement fulfilment, accessibility, privacy and responsiveness) on customer satisfaction and customer loyalty as well as to understand the mediating effect of customer satisfaction on e-service quality and customer loyalty. The study employed survey strategy using a self-administered questionnaire with professionals working in different industries and business settings located in Sabah, Malaysia. Study results indicated that out of five e- service quality dimensions, efficiency, accessibility, privacy and responsiveness are positively affecting customer satisfaction but in contrast accessibility had insignificant impact on customer satisfaction. Meanwhile, efficiency, accessibility and responsiveness were found to have a positive and significant relationship with customer loyalty. The findings of hierarchical regression indicated that customer satisfaction partially mediated the effects of efficiency, privacy and responsiveness on customer loyalty. Based on these findings, the study implications and suggestions regarding future research are discussed.


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