Customer Loyalty in Telecom Sector of Pakistan

Abstract

This study examines major influences on customer loyalty in a research framework where customer loyalty is the dependent variable and customer satisfaction, perceived price, service quality and trust are all independent variables. The research also tests the hypothesis that there exists a moderating relationship between service quality and customer satisfaction. The study employs various statistical techniques, including reliability, factor and regression analysis. The epistemology of research was primarily qualitative and involved 170 citizens ofPakistanthrough a questionnaire led survey and factor analysis was further applied to confirm the results. This study acknowledges service quality positively affecting customer satisfaction with perceived price acting as a moderating variable. In addition to that service quality also has a significant positive influence on trust. Customer satisfaction is a strong variable effecting customer loyalty and trust positively. Therefore it could be postulated that customers with high rated perception of service quality and satisfaction also generally exhibit repurchase intent and strong loyalty towards the products. Furthermore, the study also adds up that the moderating variables positively influence the relationship. Increase in the customer’s perception on the reasonableness of price also tends to increase the impact of service quality on customer satisfaction.