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

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.