Telecommunications Subscriber's Satisfaction and Loyalty: The Impact of Contractual Switching Cost, Price Fairness, and Brand Image

Telecommunications Subscriber's Satisfaction and Loyalty: The Impact of Contractual Switching Cost, Price Fairness, and Brand Image

Sajad Rezaei (Taylor's University Lakeside Campus, Malaysia), Sreenivasan Jayashree (Multimedia University (MMU), Malaysia) and Firoozeh Fouladivanda (Multimedia University (MMU), Malaysia)
DOI: 10.4018/978-1-4666-9787-4.ch123
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2. Literature Review And Hypotheses Development

Loyalty is a main factor in purchaser growth and productivity and, it is imperative to utilize this considerate to increase the connection with loyal customer. Oliver (2010) “defined customer loyalty as a profound devotion to regularly repurchase a favored product or service”. Baumann, Burton, Elliott, and Kehr (2007) point out, it is imperative fee.

One description of customer loyalty, proposed by Shoemaker and Lewis (1999), is descriptive of feelings, a psychological features of loyalty and they feel their needs are best met. Reinartz and Kumar (2002) indicated the customer loyalty between provider and purchaser. Some scholars also argued customer loyalty were difficult to measure, so the integrated approach, which included attitudinal and behavioral dimension of loyalty, was employed through variety of combination (Dick & Basu, 1994). Several researchers suggested that a purchaser loyalty model explains the differentiations among long and short-term manners (Oh, 2002).The customer satisfaction-repurchase linkage can receive one of two instructions. A model of customer loyalty shows that a knowledge method emphasizes the link among behavioral and attitudinal loyalty (Oliver, 2010). Dick and Basu (1994) classify, customer loyalty as manner and replicate patronage, indicating attitudinal and behavioral components respectively.

Key Terms in this Chapter

Contractual Switching Cost (CSC): The total cost that subscribers might bear in condition that they switch to a new telecom service provider such as access fees and deposit fee.

Structural Equation Modelling (SEM): A general term to explain a family of statistical methods and procedures to assess a conceptual or theoretical model including confirmatory factor analysis, path analysis, and exploratory factor analysis.

Subscriber Satisfaction: A subscriber favourableness of subject evaluation of the several of the outcomes and experiences associated with buying or using telecom services.

Price Fairness (PF): A subscriber perception of telecom service provider related to ethical, acceptable and fair pricing policy.

Subscriber Loyalty: A subscriber’s tendency to repurchase item from telecom company once again.

Partial Least Squares (PLS) Path Modelling Analysis: A technique that enable researchers to integrates structures from principal component analysis and regression in order to predict a set of endogenous constructs.

Telecommunication Services: Any service provided by a telecommunications firms such as 3G, cellular and els.

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