TITLE:
Customer Satisfaction, Switching Costs and Customer Loyalty: An Empirical Study on the Mobile Telecommunication Service
AUTHORS:
Noa Willys
KEYWORDS:
Customer Satisfaction, Switching Cost, Customer Loyalty, Mobile Telecommunication Firms
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.4,
April
28,
2018
ABSTRACT: Previous research mentioned
that Customer satisfaction and switching cost play an important role on
customer loyalty. Based on empirical study, this
present research attempts to evaluate the effect of the switching cost on customer
loyalty and identify which one among switching cost dimensions and Customer satisfaction
has the most influence on customer loyalty; then investigate the moderate
effect of switching cost between customer satisfaction and customer loyalty
link. To test the theoretical model, 300 questionnaires were self-administered to the subscribers of all
mobile telecommunication providers in Madagascar and 273 questionnaires were
returned with 253 questionnaires claimed efficient. Then SPSS 20.0 and
regression method was used to establish the relationship between the dependent
and independent variables. The findings indicate that there is significant relationship
between switching cost and customer loyalty, then customer satisfaction and customer loyalty. It
is also showed that among the dimensions of
switching cost, financial cost has the most influence on customer loyalty. Even
though switching cost shows up a strong effect to customer loyalty, it is
always proved that satisfaction is the most significant cause to steer the
loyalty from customers. The relationship between satisfaction and customer loyalty
is moderated by the financial cost and relational cost.