Determinants of Customer Loyalty in the Mobile Telecommunications Sector

Abstract

Mobile telecommunications as an intensely competitive industry in the contemporary marketing context has expanded as a high-velocity service throughout the world. The purpose of the study is to recognise major determinants which affect customer loyalty in the context of the mobile telecommunications industry and examine the degree of the impact of the determinants on customer loyalty. The mobile phone subscribers were selected as the unit of analysis of the study. A structured questionnaire was administered to a sample of 755 mobile phone subscribers. The Structural Equation Modelling technique was adopted to test the hypotheses where the effect of loyalty determinants on customer loyalty was tested. The five determinants considered in the study, namely customer satisfaction, perceived value, corporate image, loyalty programmes, and switching costs, have statistically significant positive impact on customer loyalty and the results reveal that customer satisfaction has the highest significant impact on customer loyalty in the context of mobile telecommunications industry