The influence of satisfaction on customer retention in mobile phone market |
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| Institution: | 1. University of Lethbridge, 4401 University Drive, Lethbridge, Alberta, Canada T1K 3M4;2. Faculty of Management, University of Lethbridge, 4401 University Drive, Lethbridge, Alberta, Canada T1K 3M4;1. Karlstad University, SAMOT Vinn Excellence Center, Service Research Center, SE-651 88 Karlstad, Sweden;2. University of Borås, SE-501 90 Borås, Sweden;1. Department of Finance and Marketing, Eastern Washington University, Bellevue Campus, 3000 Lander Holm Circle Se, Bellevue, WA 98007, USA;2. Department of Information Systems and Business Analytics, 668 N. Riverpoint Blvd Suite A, Spokane, WA 99202, USA;1. Universidad de los Andes, Mons. Álvaro del Portillo, 12455 Las Condes, Santiago, Chile;2. Department of Industrial Engineering, FCFM, University of Chile, Républica 701, Santiago, Chile;3. Department of Decision Sciences and Information Management, Katholieke Universiteit Leuven, Naamsestraat 69, B-3000 Leuven, Belgium;4. School of Management, University of Southampton, United Kingdom;5. Vlerick Leuven-Gent Management School, Belgium;1. Department of Marketing and Logistics Management, Yu Da University, No. 168, Hsueh-fu Rd., Chao-chiao, Miao-li 36143, Taiwan, ROC;2. Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung 20224, Taiwan, ROC;3. Department of Information Management, Chang Gung University, 259 Wen-Hwa 1st Road, Kwei-shan, Tao-Yuan, Taiwan, ROC;4. Deparmentt of Thoracic Medicine, Chang Gung Memorial Hospital at Linkou, Taoyuan, Taiwan, ROC;5. Department of Industrial Engineering and Management, Ming Chi University of Technology, Taiwan, ROC |
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| Abstract: | This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets. |
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| Keywords: | Customer satisfaction Mobile phones Customer loyalty Customer retention |
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