Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia

Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia

Customer loyalty has been a highly sought after topic among academicians and industry practitioners to enable growth and competitiveness enhancement. This research investigated the challenges plaguing the mobile telecommunication industry, namely fluctuating revenue despite growth in the number of...

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Main Author: Aravindan Kalisri Logeswaran, Velachamy
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HF5415.33 Consumer Behavior.
Online Access:https://etd.uum.edu.my/5384/1/s90862.pdf
https://etd.uum.edu.my/5384/2/s90862_abstract.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Nik Mat, Nik Kamariah
topic HF5415.33 Consumer Behavior.
spellingShingle HF5415.33 Consumer Behavior.
Aravindan Kalisri Logeswaran, Velachamy
Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
description Customer loyalty has been a highly sought after topic among academicians and industry practitioners to enable growth and competitiveness enhancement. This research investigated the challenges plaguing the mobile telecommunication industry, namely fluctuating revenue despite growth in the number of users, sliding average revenue per user (ARPU) and reduced repeat purchase, in addition to scarcity in analysing switching cost’s mediating effect. These impose serious concerns that link to dwindling customer loyalty. This research also compared the preferences of postpaid and prepaid users pertaining to satisfaction, trust, service quality and switching cost towards customer loyalty. This study utilized a quantitative approach where the stratified systematic random sampling was employed and data was collected in the Klang Valley over a time frame of 105 days. The instrument used was a self-administered questionnaire whereas structural equation modelling (SEM) was exercised for statistical analysis. The findings revealed that service quality and switching costs were the driving forces of loyalty while service quality, too, advocates switching cost. Moreover, service quality and loyalty were found to be the only constructs mediated by switching cost. Satisfaction and trust were however, found not to predict loyalty and switching cost. In fact, there were no mediating effects of switching cost on satisfaction and loyalty relationship, similar to trust and loyalty relationship. Meanwhile, service quality and loyalty relationship were found to be important among postpaid users, contrary to prepaid users. The overall findings affirmed service quality as the key component of customer loyalty and switching cost; likewise they clarified that loyalty does not need to transpire in a continuum manner. These outcomes are immensely valuable to practitioners for strategizing and executing tailormade plans while enhancing knowledge pertaining to switching cost and customer loyalty
format Thesis
qualification_name Doctor of Business Administration (DBA)
qualification_level Doctorate
author Aravindan Kalisri Logeswaran, Velachamy
author_facet Aravindan Kalisri Logeswaran, Velachamy
author_sort Aravindan Kalisri Logeswaran, Velachamy
title Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
title_short Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
title_full Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
title_fullStr Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
title_full_unstemmed Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia
title_sort determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in malaysia
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/5384/1/s90862.pdf
https://etd.uum.edu.my/5384/2/s90862_abstract.pdf
_version_ 1776103678106664960
spelling my-uum-etd.53842023-07-06T00:48:37Z Determinants of loyalty and the effect of switching cost towards mobile telecommunication service providers in Malaysia 2015 Aravindan Kalisri Logeswaran, Velachamy Nik Mat, Nik Kamariah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5415.33 Consumer Behavior. Customer loyalty has been a highly sought after topic among academicians and industry practitioners to enable growth and competitiveness enhancement. This research investigated the challenges plaguing the mobile telecommunication industry, namely fluctuating revenue despite growth in the number of users, sliding average revenue per user (ARPU) and reduced repeat purchase, in addition to scarcity in analysing switching cost’s mediating effect. These impose serious concerns that link to dwindling customer loyalty. This research also compared the preferences of postpaid and prepaid users pertaining to satisfaction, trust, service quality and switching cost towards customer loyalty. This study utilized a quantitative approach where the stratified systematic random sampling was employed and data was collected in the Klang Valley over a time frame of 105 days. The instrument used was a self-administered questionnaire whereas structural equation modelling (SEM) was exercised for statistical analysis. The findings revealed that service quality and switching costs were the driving forces of loyalty while service quality, too, advocates switching cost. Moreover, service quality and loyalty were found to be the only constructs mediated by switching cost. Satisfaction and trust were however, found not to predict loyalty and switching cost. In fact, there were no mediating effects of switching cost on satisfaction and loyalty relationship, similar to trust and loyalty relationship. Meanwhile, service quality and loyalty relationship were found to be important among postpaid users, contrary to prepaid users. The overall findings affirmed service quality as the key component of customer loyalty and switching cost; likewise they clarified that loyalty does not need to transpire in a continuum manner. These outcomes are immensely valuable to practitioners for strategizing and executing tailormade plans while enhancing knowledge pertaining to switching cost and customer loyalty 2015 Thesis https://etd.uum.edu.my/5384/ https://etd.uum.edu.my/5384/1/s90862.pdf text eng public https://etd.uum.edu.my/5384/2/s90862_abstract.pdf text eng public dba dba Universiti Utara Malaysia Adam, J.L., Wickstrom, S.L., Burgess, M.J., Lee, P.P., & Escarce, J.J. (2003). Sampling patients with physician practices and health plans: Multistage cluster samples in health services research. Health Services Research, 38(6), 1625-1640 Adoyo, B., Ondoro, C.O., Ojera, P.B., & Abong, O. B. (2012). 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