Effect of service quality on customer loyalty and the mediating role of customer satisfaction: An empirical investigation for the telecom service industry

Abstract

Purpose: The main purpose of this study is to examine the effects of Service Quality Dimensions on Customer Satisfaction and Service Loyalty in Telecom Industry. Design/Methodology/Approach: Service Quality, Customer Satisfaction and Service Loyalty were measured using 5-point Likert scale from the literature. Exploratory Factor Analysis, Confirmatory Factor analysis and Structural Equation Modeling were conducted to examine the effects of Service Quality on Customer Satisfaction and Service Loyalty. Findings: Not all dimensions of Service Quality affect Customer Satisfaction and Service Loyalty. Only Empathy and Reliability have significant effect on Customer Satisfaction, whereas, Empathy, Assurance, Responsiveness and Tangibility have significant effect on Customer Loyalty. When it comes to mediation, Customer Satisfaction partially mediates between Empathy and Customer Loyalty. Research Limitation/Implications: The main limitation of the study is that it was confined to the city of Delhi only. India is a big and diverse nation, so the findings of Delhi city cannot be generalized for the entire nation. Secondly, present study focuses only on Telecom Service Industry. Practical Implication: The findings clearly indicate the dimensions of Service Quality which the practioners has to focus to provide better service quality. Keywords: Service Quality, Customer Satisfaction, Service Loyalty, Indian Telecom Industry.