IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v36y2017icp75-85.html
   My bibliography  Save this article

The influence of satisfaction on customer retention in mobile phone market

Author

Listed:
  • Ruiz Díaz, Gonzalo

Abstract

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.

Suggested Citation

  • Ruiz Díaz, Gonzalo, 2017. "The influence of satisfaction on customer retention in mobile phone market," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 75-85.
    • Handle: RePEc:eee:joreco:v:36:y:2017:i:c:p:75-85
    DOI: 10.1016/j.jretconser.2017.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969891630618X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2017.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maddox, R Neil, 1981. "Two-factor Theory and Consumer Satisfaction: Replication and Extension," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(1), pages 97-102, June.
    2. Jeffrey James, 2016. "The Impact of Mobile Phones on Poverty and Inequality in Developing Countries," SpringerBriefs in Economics, Springer, number 978-3-319-27368-6, October.
    3. Eugene W. Anderson & Mary W. Sullivan, 1993. "The Antecedents and Consequences of Customer Satisfaction for Firms," Marketing Science, INFORMS, vol. 12(2), pages 125-143.
    4. László Lörincz & Péter Nagy, 2010. "Switching Costs in Telecommunications: Conclusions from a Hungarian Survey," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 11, Edward Elgar Publishing.
    5. Gerpott, Torsten J. & Rams, Wolfgang & Schindler, Andreas, 2001. "Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market," Telecommunications Policy, Elsevier, vol. 25(4), pages 249-269, May.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    7. Orose Leelakulthanit & Boonchai Hongcharu, 2011. "Factors That Impact Customer Satisfaction: Evidence From The Thailand Mobile Cellular Network Industry," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 4(2), pages 67-76.
    8. Turel, Ofir & Serenko, Alexander, 0. "Satisfaction with mobile services in Canada: An empirical investigation," Telecommunications Policy, Elsevier, vol. 30(5-6), pages 314-331, June.
    9. Fu, W. Wayne, 2004. "Termination-discriminatory pricing, subscriber bandwagons, and network traffic patterns: the Taiwanese mobile phone market," Telecommunications Policy, Elsevier, vol. 28(1), pages 5-22, February.
    10. Kim, Moon-Koo & Park, Myeong-Cheol & Jeong, Dong-Heon, 2004. "The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services," Telecommunications Policy, Elsevier, vol. 28(2), pages 145-159, March.
    11. Gijón, Covadonga & Garín-Muñoz, Teresa & Pérez-Amaral, Teodosio & López-Zorzano, Rafael, 2013. "Satisfaction of individual mobile phone users in Spain," Telecommunications Policy, Elsevier, vol. 37(10), pages 940-954.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maksym Koghut & Omar AI-Tabbaa, 2021. "Exploring Consumers’ Discontinuance Intention of Remote Mobile Payments during Post-Adoption Usage: An Empirical Study," Administrative Sciences, MDPI, vol. 11(1), pages 1-33, February.
    2. Jin, Haofeng, 2022. "The effect of overspending on tariff choices and customer churn: Evidence from mobile plan choices," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    3. Assarzadegan, Parisa & Hejazi, Seyed Reza, 2021. "A game theoretic approach for analyzing the competition between national and store brands by considering store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Audrezet, Alice & Parguel, Béatrice, 2018. "Using the Evaluative Space Grid to better capture manifest ambivalence in customer satisfaction surveys," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 285-295.
    5. Chen, Pin-Zheng & Liu, Wan-Yu, 2019. "Assessing management performance of the national forest park using impact range-performance analysis and impact-asymmetry analysis," Forest Policy and Economics, Elsevier, vol. 104(C), pages 121-138.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gijón, Covadonga & Garín-Muñoz, Teresa & Pérez-Amaral, Teodosio & López-Zorzano, Rafael, 2013. "Satisfaction of individual mobile phone users in Spain," Telecommunications Policy, Elsevier, vol. 37(10), pages 940-954.
    2. Wajeeha Aslam & Imtiaz Arif & Kashif Farhat & Marium Khursheed, 2018. "The Role of Customer Trust, Service Quality and Value Dimensions in Determining Satisfaction and Loyalty: An Empirical Study of Mobile Telecommunication Industry in Pakistan," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 30(2), pages 177-194.
    3. Suárez, David & García-Mariñoso, Begoña & Santos, Iván, 2016. "Satisfaction of business customers with mobile phone and internet services in Spain," Telecommunications Policy, Elsevier, vol. 40(1), pages 52-61.
    4. Muhammad Irfan & Mohammad Farid Shamsudin & Noor Hadi, 2016. "How Important Is Customer Satisfaction? Quantitative Evidence from Mobile Telecommunication Market," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 1-57, May.
    5. Thomas Cadet & Sophie Larribeau & Thierry Pénard, 2012. "Network effects, Customer Satisfaction and Recommendation on the Mobile Phone Market," Economics Working Paper Archive (University of Rennes & University of Caen) 201242, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    6. Anyanwu Hilary Chinedu & Sharifah Azizah Haron & Syuhaily Osman & Hilary Faith Hayatu, 2021. "Dissatisfaction and Profile of Dissatisfied Consumers: A Case Study of Mobile Telecommunication Network Consumers in Nigeria," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(5), pages 155-155, July.
    7. Rahul, T. & Majhi, R., 2014. "An adaptive nonlinear approach for estimation of consumer satisfaction and loyalty in mobile phone sector of India," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 570-580.
    8. Liu, Chung-Tzer & Guo, Yi Maggie & Lee, Chia-Hui, 2011. "The effects of relationship quality and switching barriers on customer loyalty," International Journal of Information Management, Elsevier, vol. 31(1), pages 71-79.
    9. Deng, Zhaohua & Lu, Yaobin & Wei, Kwok Kee & Zhang, Jinlong, 2010. "Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China," International Journal of Information Management, Elsevier, vol. 30(4), pages 289-300.
    10. Wang, Wei-Tsong & Ou, Wei-Ming & Chen, Wen-Yin, 2019. "The impact of inertia and user satisfaction on the continuance intentions to use mobile communication applications: A mobile service quality perspective," International Journal of Information Management, Elsevier, vol. 44(C), pages 178-193.
    11. Guven, Faruk, 2018. "Churn and loyalty behaviour of Turkish digital natives," 29th European Regional ITS Conference, Trento 2018 184943, International Telecommunications Society (ITS).
    12. Gerpott, Torsten J. & Ahmadi, Nima, 2015. "Determinants of willingness to look for separate international roaming services—An empirical study of mobile communication customers in Germany," International Journal of Information Management, Elsevier, vol. 35(2), pages 192-203.
    13. Thangeda, Rahul & Kumar, Niraj & Majhi, Ritanjali, 2024. "A neural network-based predictive decision model for customer retention in the telecommunication sector," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    14. Mujahid Mohiuddin Babu & Panuel Rozario Prince, 2011. "Factors Influencing the Overall Customer Satisfaction of the Wireless Internet Service Users: An Empirical Study in Bangladesh," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(6), pages 14-24, September.
    15. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    16. Yogesh Verma & Maithili R. P. Singh, 2017. "Marketing Mix, Customer Satisfaction and Loyalty: An Empirical Study of Telecom Sector in Bhutan," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(2), pages 121-129, May.
    17. Tesfom, Goitom & Birch, Nancy J. & Culver, Jeffrey N., 2016. "Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 154-163.
    18. Noor Ul Hadi & Nadia Aslam & Amir Gulzar, 2019. "Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    19. Dan J. Kim & Donald L. Ferrin & H. Raghav Rao, 2009. "Trust and Satisfaction, Two Stepping Stones for Successful E-Commerce Relationships: A Longitudinal Exploration," Information Systems Research, INFORMS, vol. 20(2), pages 237-257, June.
    20. Mohammed Belal Uddin & Bilkis Akhter, 2012. "Customer Satisfaction In Mobile Phone Services In Bangladesh: A Survey Research," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 20-36, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:36:y:2017:i:c:p:75-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.