Abstract
AbstractThe South African mobile telecommunications environment has become increasingly competitive, thus there is increased focus on acquiring and retaining loyal customers in order to facilitate repeat purchases, guarantee future revenues and shield the customer base from competitive activity. In the light of the aforementioned, an online survey which comprised questions on loyalty, customer satisfaction, brand image, perceived quality and perceived value, was conducted among 110 customers of the South African (SA) mobile telecommunications industry. A number of hypotheses were formulated proposing relationships among the above-mentioned variables. The findings which resulted from structural equation and multiple regression modelling, revealed that customer satisfaction has the most significant positive effect on customer loyalty. Customer brand image and perceived value have a significant positive effect on customer satisfaction, but not customer loyalty. By implication, brand image and perceived value...
Highlights
IntroductionSouth Africa (SA) has played a pivotal role in bridging the communications gap (Rao, 2011), and whereas Telkom South African (SA) (the national telecommunications provider in SA) was struggling to address the backlog of fixed-line telephony, mobile telephony emerged as a viable and profitable means to provide ICT services to lower income segments (Vodacom, 2008)
Introduction and background Mobile telephony inSouth Africa (SA) has played a pivotal role in bridging the communications gap (Rao, 2011), and whereas Telkom South African (SA) was struggling to address the backlog of fixed-line telephony, mobile telephony emerged as a viable and profitable means to provide ICT services to lower income segments (Vodacom, 2008)
Such behaviour which is the opposite of total brand loyalty, becomes a significant challenge for telecommunications service providers
Summary
South Africa (SA) has played a pivotal role in bridging the communications gap (Rao, 2011), and whereas Telkom SA (the national telecommunications provider in SA) was struggling to address the backlog of fixed-line telephony, mobile telephony emerged as a viable and profitable means to provide ICT services to lower income segments (Vodacom, 2008). If a customer is looking for cheap call rates but very fast and stable Internet, s/he might chose to use provider X to make mobile calls, and have a portable modem or data SIM from provider Y. Such behaviour which is the opposite of total brand loyalty, becomes a significant challenge for telecommunications service providers. Service providers are seeking to develop strategies to increase loyalty and entice customers to satisfy all their mobile communications needs with a single brand
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