Determinants of Customer Loyalty Towards Prepaid Mobile Cellular Services in Malaysia

• Main Author: Mohd. Farid, Shamsudin
• Format: Thesis
• Language: English; English
• Published: 2012
• Subjects: HF5001-6182 Business; TK5101-6720 Telecommunication
• Online Access: http://etd.uum.edu.my/3349/1/MOHD_FARID_SHAMSUDIN.pdf; http://etd.uum.edu.my/3349/3/MOHD_FARID_SHAMSUDIN.pdf; http://etd.uum.edu.my/3349/
• Institution: Universiti Utara Malaysia

This research focuses on the determinant factors of customer loyalty of the prepaid segment in the telecommunication industry. Customer is important in the telecommunication industry especially in the prepaid segment where there is no contractual relationship between customer and service provider. This study examines the relationships between customer satisfaction, service quality, perceived value and trust with customer loyalty. This research also examines the role of customer satisfaction as a mediator factor and switching cost as a moderator factor towards customer loyalty. The consideration of putting both mediator and moderator factors in this research allows a more precise descriptions on the relationship between all the variables mentioned and the outcome of the research. Hypothesized relationships are tested using survey responses from a sample of 398 respondents. The study sample was the students studying in Malaysian Universities. Results revealed a positive relationship between customer support service, service reliability, emotional value and trust with customer loyalty. Apart from that, customer satisfaction mediates the relationship between various determinant factors and customer loyalty. Switching cost does not moderate the relationship between customer satisfaction and customer loyalty. The results reported in this research are useful to both industry and academics in Malaysia, by providing relevant empirical data about customer loyalty in the telecommunication Industry. Results are compared with earlier findings and implications for future research are discussed. The results should be able to recommend the strategy in customer loyalty especially in the prepaid mobile services. This study could also be of interest to other on-line services firm, which shares the same characteristics with mobile phone service providers