Investigating Switching Cost Roles in Determining Loyalty in the Mobile Telecommunications Market

Author(s):  
Abdul Qayyum ◽  
Do Ba Khang

The paper evaluates various roles (direct antecedent, mediator or moderator) of perceived switching costs in determining customer loyalty in the mobile telecommunications market. Data were collected through a field survey of mobile phone users in Pakistan. Structural equation modelling was used to evaluate hypothesized relationships. Perceived switching costs were found to play all three roles. Findings suggest that perceived switching costs directly influence customer loyalty, mediate the impacts of perceived service quality, value, and trust on customer loyalty and negatively moderate the relationships of satisfaction and perceived service quality with customer loyalty. Implications of these findings are discussed.

Author(s):  
Abdul Qayyum ◽  
Do Ba Khang

The paper evaluates various roles (direct antecedent, mediator or moderator) of perceived switching costs in determining customer loyalty in the mobile telecommunications market. Data were collected through a field survey of mobile phone users in Pakistan. Structural equation modeling was used to evaluate hypothesized relationships. Perceived switching costs were found to play all three roles. Findings suggest that perceived switching costs directly influence customer loyalty, mediate the impacts of perceived service quality, value, and trust on customer loyalty and negatively moderate the relationships of satisfaction and perceived service quality with customer loyalty. Implications of these findings are discussed.


2018 ◽  
Vol 4 (2) ◽  
pp. 29
Author(s):  
Nebo Gerald Nwora

This study seeks to assess the marketing implication of the revised operational guidelines on bancassurance referral model in Nigeria particularly in terms of how the model can affect customers’ patronage of Insurance companies. The objectives of the study include; (i) to determine the influence of bancassurance referral on customers’ patronage of insurance products; (ii) to ascertain how customer loyalty moderate the influence of bancassurance referral on customers’ patronage of insurance products; and (iii) to assess how the perceived service quality of the deposit money banks moderate the influence of bancassurance referral on customers’ patronage of the insurance products. Quantitative survey research design was adopted for the study. By gathering primary data from 170 banks’ customers and 68 bancassurance desk officers of insurance companies using structured questionnaire; and using structural equation modelling for testing and analyzing the gathered datasets, findings revealed that bancassurance referral model has significant influence on customers’ patronage of insurance products and both customer loyalty and perceived service quality of the banks significantly moderate the influence of bancassurance referral model on customers’ patronage of the insurance products. It was recommended that insurance companies that want to go into bancassurance relationship with any bank in Nigeria should choose banks characterized by large number of loyal customers and high perceived service quality.


Innovar ◽  
2017 ◽  
Vol 27 (64) ◽  
pp. 23-36 ◽  
Author(s):  
Antonio Carrizo Moreira ◽  
Pedro Miguel Freitas ◽  
Víctor Manuel Ferreira

This article seeks to add to the body of knowledge on the role played by brand experience and its relationship with satisfaction, trust and service quality in the development of loyalty. Structural Equation Modelling (SEM) is used to analyze 690 telecommunications multiple-play users in the Portuguese telecommunications market. Our conclusions show that brand experiences can be used to generate loyalty, trust and quality perceptions; although satisfaction was confirmed to be the main loyalty predictor, service quality has an important indirect effect. In order to build customer loyalty, marketers must manage brand experiences, service quality, satisfaction and trust. Brand experiences can be explored as a way to differentiate services, to change customers' perceptions toward a brand and, ultimately, lead to customer retention. Furthermore, providing reliable services is of the utmost importance for service providers.


2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.


2018 ◽  
Vol 1 (1) ◽  
pp. 28
Author(s):  
Abdul Kadir ◽  
Muhammad Basri ◽  
Rodi Rodi

This study aims to determine the effect of service quality on customer loyalty mediated by Customer satisfaction and customer value addition, it also examines, the effect of service quality on customer satisfaction, which is mediated by the effect of customer value and customer satisfaction and customer value on customer loyalty mediated by trust. The population in this study are household customers in Kendari who use the services of PDAM for 17,607 households spread are over 10 (ten) districts. The samples in this study are 391 household customers are taken with a precision of 5 % Data Collection techniques utility questionnaire. Data are analyzed by using. Structural Equation Modelling (SEM) with the help of the program, some of the important findings in this study are : (1) better service improvement of Kendari  Regional causes trust, (2) customer loyalty improvement is also achievable of the provided service is able to enhance customer value. Besides, this research also proves that trust has a mediating role between satisfaction and loyalty of our customers as well as between customer value and loyalty.Keywords: service quality, customer satisfaction, customer value, customer trust and customer loyalty.


2020 ◽  
Vol 20 (3) ◽  
pp. 177
Author(s):  
Kunthi A. Kusumawardani ◽  
Saras Asa Hastayanti

Logistics are not only playing a significant role in the business process, but they can also add value to the business, and even also determine the life of the firm. Due to its significance, the advancement of logistics is inevitable. Customers want everything faster, and they are even willing to pay more for the service. This study provides an empirical investigation of instant courier service customers in Indonesia. A total of 300 valid questionnaires were collected and assessed using structural equation modelling (SEM). The results showed that perceived service quality influences customer satisfaction and trust. On the other hand, logistics service innovation influences perceived service quality but not customer satisfaction. While trust affects customer satisfaction and repurchase intention. Moreover, customer satisfaction influences repurchase intention. This study is one of the first to evaluate and confirm the relations of service quality-repurchase intention in instant courier service. This research contributes to the literature for future research in instant courier service by providing empirical evidence in Indonesia. Keywords— Customer Satisfaction; Logistics Service Innovation; Perceived Service Quality; Repurchase Intention; Trust


2017 ◽  
Vol 7 (2) ◽  
pp. 155
Author(s):  
Sugianto Antoni Sitorus

Dalam konsep New Public Management (NPM), birokrasi pemerintah sebagai pemberi pelayanan kepada masyarakat dituntut untuk lebih mengedepankan aspek hasil (results) dibandingkan dengan sekedar kontrol terhadap pembelanjaan anggaran dan kepatuhan terhadap prosedur. Bagi lembaga pelayanan publik, reformasi pada bidang aparatur negara ini berimplikasi secara mendasar pada pelaksanaan tugas pokok dan fungsinya. Pelayanan publik merupakan hal penting dalam pelaksanaan dan penyelenggaraan program pemerintah. Pelayanan publik menjadi bagian dari birokrasi yang harus direformasi sebagaimana ditegaskan dalam Undang-Undang Republik Indonesia Nomor 17 Tahun 2007 tentang Rencana Pembangunan Jangka Panjang Nasional 2005-2025 (RPJPN 2005-2025). Salah satu fungsi pemerintah dalam pelayanan publik adalah perizinan. Perizinan merupakan pemberian legalitas kepada seseorang atau pelaku usaha atau kegiatan tertentu baik dalam bentuk izin maupun tanda daftar usaha. Perizinan frekuensi radio merupakan pelayanan publik yang dilaksanakan oleh Direktorat Jenderal Sumber Daya dan Perangkat Pos dan Informatika (Ditjen SDPPI). Pelayanan publik yang prima menjadi faktor kunci keberhasilan pemerintah dalam terwujudnya pelayanan terbaik kepada masyarakat. Kualitas pelayanan tersebut mencakup waktu pelayanan yang cepat, akurat dan memberikan kepastian hukum. Pada tulisan ini akan dicoba dibahas lebih lanjut mengenai teknik pengukuran persepsi kualitas pelayanan (Perceived Service Quality) metode Structural Equation Modelling (SEM) atau model persamaan struktural, yaitu suatu analisis yang dapat digambarkan sebagai kombinasi antara regresi berganda dan analisis faktor untuk menduga hubungan yang tidak bebas tetapi saling berhubungan secara bersama-sama.


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