Development of a Theoretical Framework for Customer Loyalty in Australia

Abstract

Companies increasingly recognise customer loyalty as one of the most important measures for the business of an organisation, and informed knowledge of factors underpinning customer loyalty may help managers build customer retention strategies. Telecommunication ombudsman reports demonstrate that there are service quality and customer retention issues in the mobile telecommunication sector in Australia which can distress end customers and businesses. This study classifies and discovers key elements impacting customer loyalty in mobile telecommunication services in Australia. Moreover, antecedents such as behavioural intention which leads to customer intention to stay loyal with the services are measured through the Unified Theory of Acceptance and Use of Technology (UTAUT2), Marketing Mix Theory and Expectation Confirmation Theory (ECT). Furthermore, investigators have studied the habit, hedonic motivation, customer satisfaction, customer experience, marketing mix factors relationship by empirical testing. It has been determined that very little research is done on customer loyalty in mobile telecommunication services in Australia. Illustration upon theories of the marketing mix, ECT and UTAUT2, this study aims to determine what factors affect customer loyalty (CL) in mobile telecommunication services in Australia. This research outline delivers an extension to the current UTAUT2 model, and this model also offers a strategy for sustaining customer loyalty in mobile service businesses. This theoretical framework can be used in any Telecommunication and IT business and it can help in increasing and retaining the customer base.