The effect of customer service quality on the satisfaction and loyalty of mobile broadband customers

Abstract

The corporate marketing environment has gotten competitive and dynamic. Marketers face the challenge of capturing a larger market share. Securing and retaining loyal customers is critical in achieving a competitive advantage for organizations. This study has examined how the customer service quality affects customer satisfaction and loyalty in the telecommunication sector. Study has also examined the effect of the corporate image on customer retention of organizations. It has further examined the mediation effect of customer satisfaction to the relationship between service quality and customer loyalty. Study has employed a deductive research approach, applying quantitative methods. Colombo district, having the highest mobile broadband subscribers in the country, was selected for the study. A sample of 420 smartphone users in ten divisional secretariat divisions in Colombo district was surveyed using a questionnaire. Descriptive and inferential analyses were employed. Study indicated a significant impact of age and education level on customer satisfaction. Service quality dimensions of tangibility, reliability, assurance, and empathy had a significant effect on customer satisfaction. Age of the customer, service experience, service quality dimensions of assurance, and empathy indicated a significant effect on customer loyalty. Findings also indicated a positive effect of the corporate image on customer loyalty. Customer satisfaction has a mediatory effect on the relationship between the service quality and loyalty of mobile broadband customers.