Abstract
The idea of this study is raised because of tough competition in cell phone industry of Pakistan. In this scenario, every organization after retaining customer tries to make him/her loyal. The loyalty, which has rigorously investigated, empirically tested with different combination of variables, which collectively help in making the customer loyal. Data were collected through 508 questionnaires. Respondents were pre-paid cell phone customers. Data was analyzed via factor loading and reliability of variables. Structural Equation Modeling (SEM) technique was used for the testing of hypotheses. Loyalty model was found significantly responsive for cellular phone services in Pakistan. Perceived service quality, satisfaction, trust and image have chained link of positive affects, which leads to loyalty of customers in the telecom sector of Pakistan. Customers do not take effect of perceived service quality. However, it is service quality, which satisfies customer through image of the organization. This loyalty model is more preferably applicable in the industry where competition is tough and switching rate is high. In future researches, this model can be tested across the culture. Moreover, more variables can be added to strengthen the loyalty model.
Highlights
Majority of the organizations follow the popular principle of marketing that “customer is king”
Customer satisfaction, and image of brand are seen as foundation variables of customer loyalty (Zeithaml, 1988), exploration usually acknowledges just the straightforward bivariate bonds between Perceived service quality image and loyalty which might cover correct relations
A loyalty model proposed for the telecomm sector of Pakistan
Summary
Majority of the organizations follow the popular principle of marketing that “customer is king”. Maintaining long-term relation with the customer in this competitive environment is prime objective of every organization. It is only possible if customer is loyal. In spite of the fact that customer loyalty is progressively seen as a prime determinant of long financial performance in hostile markets, there are clear gaps in our literature regarding antecedents of loyalty Alireza et al, (2011). Primary motivation behind this exploration is to test a reconciled model of loyalty. This research intends to design a new customer loyalty model, that how service providers can make customers loyal to their organizations
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