IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v70y2021ics0957178721000424.html
   My bibliography  Save this article

Antecedents of customer loyalty and performance improvement: Evidence from Pakistan's telecommunications sector

Author

Listed:
  • Shahzad, Arfan
  • Yaqub, Rana Muhammad Shahid
  • Di Vaio, Assunta
  • Hassan, Rohail

Abstract

The paper investigates and compares different groups of customers (stayers and switchers) in terms of antecedents of customer loyalty in the telecommunications (telecom) sector, specifically, customer satisfaction, perceived service quality, perceived price fairness, perceived justice in service recovery, and relational bonds. The data were analyzed through the PLS-SEM Approach. The results revealed significant differences between both groups (i.e., stayers and switchers) in their sense of loyalty antecedents. These differences impact the performance of the telecommunications sector in economic, environmental, and social terms. However, the study revealed no difference between stayers and switchers perceptions of service quality. Our research makes a significant theoretical contribution to the consumer behavior literature by comparing stayers and switchers in the telecommunications sector. Moreover, the study has also offered various practical contributions for managers and practitioners to devise value-based strategies for both groups.

Suggested Citation

  • Shahzad, Arfan & Yaqub, Rana Muhammad Shahid & Di Vaio, Assunta & Hassan, Rohail, 2021. "Antecedents of customer loyalty and performance improvement: Evidence from Pakistan's telecommunications sector," Utilities Policy, Elsevier, vol. 70(C).
  • Handle: RePEc:eee:juipol:v:70:y:2021:i:c:s0957178721000424
    DOI: 10.1016/j.jup.2021.101208
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178721000424
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jup.2021.101208?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. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Vogelsang, Ingo, 2017. "The role of competition and regulation in stimulating innovation – Telecommunications," Telecommunications Policy, Elsevier, vol. 41(9), pages 802-812.
    3. Noel Siu & Tracy Zhang & Cheuk-Ying Yau, 2013. "The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery," Journal of Business Ethics, Springer, vol. 114(4), pages 675-686, June.
    4. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    5. Holt, Lynne, 2005. "Utility service quality--Telecommunications, electricity, water," Utilities Policy, Elsevier, vol. 13(3), pages 189-200, September.
    6. Simon Morgan & Krishna Govender, 2017. "Exploring customer loyalty in the South African mobile telecommunications sector," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1273816-127, January.
    7. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    8. Orr, F. Dale & Lefebvre, Bernard J., 1993. "The impact of regulation on telecommunications productivity and price performance," Utilities Policy, Elsevier, vol. 3(4), pages 311-320, October.
    9. Montoya, Miguel A. & Trillas, Francesc, 2007. "The measurement of the independence of telecommunications regulatory agencies in Latin America and the Caribbean," Utilities Policy, Elsevier, vol. 15(3), pages 182-190, September.
    10. Karjaluoto, Heikki & Jayawardhena, Chanaka & Leppäniemi, Matti & Pihlström, Minna, 2012. "How value and trust influence loyalty in wireless telecommunications industry," Telecommunications Policy, Elsevier, vol. 36(8), pages 636-649.
    11. Stern, J., 2000. "Electricity and telecommunications regulatory institutions in small and developing countries," Utilities Policy, Elsevier, vol. 9(3), pages 131-157, September.
    12. Florez Ramos, Esmeralda & Blind, Knut, 2020. "Data portability effects on data-driven innovation of online platforms: Analyzing Spotify," Telecommunications Policy, Elsevier, vol. 44(9).
    13. Md. Alamgir Hossain & Md. Rakeullah Chowdhury & Nusrat Jahan, 2017. "Customer Retention and Telecommunications Services in Bangladesh," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(11), pages 921-930, November.
    14. Da[ss]ler, Thoralf & Parker, David, 2004. "Harmony or disharmony in the regulation and the promotion of competition in EU telecommunications? A survey of the regulatory offices," Utilities Policy, Elsevier, vol. 12(1), pages 9-28, March.
    15. 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.
    16. Fisher, Matthew & Freeman, Toby & Schram, Ashley & Baum, Fran & Friel, Sharon, 2020. "Implementing policy on next-generation broadband networks and implications for equity of access to high speed broadband: A case study of Australia's NBN," Telecommunications Policy, Elsevier, vol. 44(7).
    17. KwabenaAdjei & Richard Denanyoh, 2014. "Determinants of Customer Loyalty among Mobile Telecom Subscribers in the Brong Ahafo Region of Ghana," International Journal of Business and Social Research, LAR Center Press, vol. 4(1), pages 82-95, January.
    18. Ruiying Cai & Christina Geng-Qing Chi, 2018. "The impacts of complaint efforts on customer satisfaction and loyalty," The Service Industries Journal, Taylor & Francis Journals, vol. 38(15-16), pages 1095-1115, December.
    19. Srivastava SHAILA & Dixit SHWETA, 2017. "Brand Switching – A Case of Mobile Telecom Industry in India," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 48-53.
    20. Ajdanai Yuktanandana & Dissatat Prasertsakul, 2015. "The Effects Of Service Quality And Customer Satisfaction On Customer Loyalty: A Case Of Thai Mobile Network Industry," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 11, pages 808-823.
    21. KwabenaAdjei & Richard Denanyoh, 2014. "Determinants of Customer Loyalty among Mobile Telecom Subscribers in the Brong Ahafo Region of Ghana," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(1), pages 82-95, January.
    22. Rasoolimanesh, S. Mostafa & Ringle, Christian M. & Jaafar, Mastura & Ramayah, T., 2017. "Urban vs. rural destinations: Residents’ perceptions, community participation and support for tourism development," Tourism Management, Elsevier, vol. 60(C), pages 147-158.
    23. Chang, Yu-Wei & Chang, Yu-Hern, 2010. "Does service recovery affect satisfaction and customer loyalty? An empirical study of airline services," Journal of Air Transport Management, Elsevier, vol. 16(6), pages 340-342.
    24. Hwa-Kyung Kim & Timothy J. Lee, 2018. "Brand Equity of a Tourist Destination," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
    25. Bahri-Ammari, Nedra & Bilgihan, Anil, 2017. "The effects of distributive, procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 89-100.
    26. Davoud Nikbin & Ishak Ismail & Malliga Marimuthu & Hamed Armesh, 2012. "Perceived justice in service recovery and switching intention," Management Research Review, Emerald Group Publishing Limited, vol. 35(3/4), pages 309-325, March.
    27. Md. Alamgir Hossain & Md. Rakeullah Chowdhury & Nusrat Jahan, 2017. "Customer Retention and Telecommunications Services in Bangladesh," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(11), pages 921-930.
    28. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    29. Paramaporn Thaichon & Thu Nguyen Quach, 2015. "The relationship between service quality, satisfaction, trust, value, commitment and loyalty of Internet service providers' customers," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 25(4), pages 295-313, September.
    30. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    31. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-741, September.
    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. Zhang, Qi & Ariffin, Shaizatulaqma Kamalul & Richardson, Christopher & Wang, Yuling, 2023. "Influencing factors of customer loyalty in mobile payment: A consumption value perspective and the role of alternative attractiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    2. Muhammad Umair Wattoo & Syed Muhammad Javed Iqbal, 2022. "Unhiding Nexus Between Service Quality, Customer Satisfaction, Complaints, and Loyalty in Online Shopping Environment in Pakistan," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. José Torrão & Sandrina Teixeira, 2023. "The Antecedents of Customer Satisfaction in the Portuguese Telecommunications Sector," Sustainability, MDPI, vol. 15(3), pages 1-17, February.
    4. Ardvin Kester S. Ong & Yogi Tri Prasetyo & Andrei Estefanio & Ayen Sienna Tan & Jedrek Charles Videña & Renz Albert Villanueva & Thanatorn Chuenyindee & Kriengkrai Thana & Satria Fadil Persada & Reny , 2023. "Determining Factors Affecting Passenger Satisfaction of “Jeepney” in the Philippine Urban Areas: The Role of Service Quality in Sustainable Urban Transportation System," Sustainability, MDPI, vol. 15(2), pages 1-18, January.

    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. Thieme, Lutz & Winkelhake, Olaf & Hartmann, Ulrich, 2014. "Fairness als universelle Norm? Empirische Evidenz ohne Manna [Fairness as a universal norm? Empiric evidence without manna]," Working Papers of the European Institute for Socioeconomics 12, European Institute for Socioeconomics (EIS), Saarbrücken.
    2. Grossmann, Volker, 2002. "Is it rational to internalize the personal norm that one should reciprocate?," Journal of Economic Psychology, Elsevier, vol. 23(1), pages 27-48, February.
    3. Bogliacino, Francesco & Grimalda, Gianluca & Pipke, David, 2021. "Kind or contented? An investigation of the gift exchange hypothesis in a natural field experiment in Colombia," OSF Preprints xmjaq, Center for Open Science.
    4. Jean-Michel Oudot & Claude Ménard, 2010. "Opportunisme ou équité ? Le cas des contrats d’approvisionnement de défense," Revue Française d'Économie, Programme National Persée, vol. 24(3), pages 195-226.
    5. John A. List, 2006. "The Behavioralist Meets the Market: Measuring Social Preferences and Reputation Effects in Actual Transactions," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 1-37, February.
    6. Ashraf, Nava & Bohnet, Iris & Piankov, Nikita, 2003. "Is Trust a Bad Investment?," Working Paper Series rwp03-047, Harvard University, John F. Kennedy School of Government.
    7. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
    8. Du, Shaofu & Nie, Tengfei & Chu, Chengbin & Yu, Yugang, 2014. "Reciprocal supply chain with intention," European Journal of Operational Research, Elsevier, vol. 239(2), pages 389-402.
    9. Hahn, Volker & Mühe, Felix, 2009. "Committees and reciprocity," Mathematical Social Sciences, Elsevier, vol. 57(1), pages 26-47, January.
    10. Frieling, Julius & Pohlkamp, Stefanie & Stöver, Jana & Vöpel, Henning, 2013. "Suarez und die "Hand Gottes": Wie fair ist Fußball?," HWWI Policy Papers 80, Hamburg Institute of International Economics (HWWI).
    11. Russell Golman, 2016. "Good manners: signaling social preferences," Theory and Decision, Springer, vol. 81(1), pages 73-88, June.
    12. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2008. "Testing theories of fairness--Intentions matter," Games and Economic Behavior, Elsevier, vol. 62(1), pages 287-303, January.
    13. Rübbelke, Dirk T.G., 2011. "International support of climate change policies in developing countries: Strategic, moral and fairness aspects," Ecological Economics, Elsevier, vol. 70(8), pages 1470-1480, June.
    14. Puaha, Hubertus & Tilley, Daniel S., 2002. "Coalition Development In The Agricultural Marketing System," 2002 Annual meeting, July 28-31, Long Beach, CA 19721, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Vincze, János & Koltay, Gábor, 2009. "Fogyasztói döntések a viselkedési közgazdaságtan szemszögéből [Consumer decisions from the angle of behavioural economics]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 495-525.
    16. Matthias Benz & Alois Stutzer, "undated". "Do Workers Enjoy Procedural Utility?," IEW - Working Papers 127, Institute for Empirical Research in Economics - University of Zurich.
    17. Davide Proserpio & Wendy Xu & Georgios Zervas, 2018. "You get what you give: theory and evidence of reciprocity in the sharing economy," Quantitative Marketing and Economics (QME), Springer, vol. 16(4), pages 371-407, December.
    18. Qaiser Rashid Janjua, 2017. "Service Failures and Consumer Responses: Exploring the Antecedents of Consumer Dissatisfaction and Propensity to Complain," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(4), pages 23-48, December.
    19. Sven Hoeppner, 2014. "The unintended consequence of doorstep consumer protection: surprise, reciprocation, and consistency," European Journal of Law and Economics, Springer, vol. 38(2), pages 247-276, October.
    20. José Torrão & Sandrina Teixeira, 2023. "The Antecedents of Customer Satisfaction in the Portuguese Telecommunications Sector," Sustainability, MDPI, vol. 15(3), pages 1-17, February.

    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:juipol:v:70:y:2021:i:c:s0957178721000424. 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.sciencedirect.com/journal/utilities-policy .

    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.