Antecedents of Customer Satisfaction Affecting Broadband Loyalty: An Implementation of Servqual and NPS®

Antecedents of Customer Satisfaction Affecting Broadband Loyalty: An Implementation of Servqual and NPS®

Franklin M. Lartey (Capella University, Minneapolis, MN, USA), Kathleen Hargiss (Colorado Technical University, Colorado Springs, CO, USA) and Caroline Howard (HC Consulting, Oceanside, CA, USA)
DOI: 10.4018/IJSITA.2015010103
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Abstract

Many customer satisfaction studies in the service industry use SERVQUAL, an instrument developed by Parasuraman, Zeithaml, and Berry (1998). Similarly, many studies on customer loyalty use the Net Promoter System™ (NPS®) developed by . Even though researchers acknowledge a relationship between satisfaction and loyalty, there is currently no empirical evidence demonstrating such relationship using SERVQUAL and NPS. In that regard, this study analyzed the antecedents of satisfaction measured by SERVQUAL that influence loyalty as measured by NPS in the context of the residential broadband service industry. To that effect, 208 broadband customers in the U.S. Midwest region were surveyed online. A confirmatory factor analysis confirmed the latent structure of collected data, validating the use of the five SERVQUAL factors as predictors. An ordinal logistic regression (OLR) model built on the collected data confirmed the existence of a statistically significant relationship between Empathy (one of the factors) and customer loyalty, suggesting that increasing empathy by one point increased the odds of becoming a promoter by 11.73%. The final model was validated using the Akaike information criterion (AIC), a single sample cross-validation model.
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Significance Of The Study

Recently, providers of residential broadband services like AT&T, Comcast, Cox Communications, Time Warner, and Verizon started using NPS® as an instrument to measure their customer loyalty. While scholars acknowledge the existence of a relationship between satisfaction and loyalty, this linkage is not linear (Bowen and Chen, 2001; Castañeda, 2011; Nam, 2014). As such, an increase in customer satisfaction does not necessarily result in an increase in loyalty. Additionally, satisfied customers are not necessarily loyal and loyal customers are not automatically satisfied. Looking at the factors that determine customer satisfaction and their level of contribution in loyalty will improve general knowledge on drivers and inhibitors of loyalty based on the determinants of satisfaction. As a result, practitioners will be able to improve satisfaction and loyalty by focusing on increasing their pool of promoters and at the same time decreasing that of detractors. By providing such empirical evidence of a linkage between satisfaction and loyalty based on SERVQUAL and NPS, this study fills a gap in scholarly literature related to residential broadband service industries. It can also serve as a mold for studies using different instrument or industries.

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