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

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.