Impact of Price and Service Quality on Brand Loyalty in Telecommunication Industry: The Mediating Effect of Customer Satisfaction

Abstract

The main reason for conducting this research is to study that how brand loyalty has been affected by price and service quality in telecommunication industries operating in Pakistan. This study addresses the main issue that whether the price and service quality has improved or reduced the significance of brand loyalty. The main reason for conducting this research is to investigate the casual-effect relationship between brand loyalty and the effect of price; similarly, brand loyalty and the effect of service quality and mediating effect of consumer satisfaction with the moderator as level of trust. This research has two independent variables, one moderating and one mediating variable which influence one dependent variable. Independent variables are price and service quality, moderating variable as level of trust and mediating variable as consumer satisfaction, whereas, brand loyalty as a dependent variable keeping all other factors constant. The method used for this research is quantitative; whereas questionnaire is used as an instrument for data collection. Moreover, this research has been chosen three university as population and the students of BS and MS (Business Administration) as the sample for this study. As telecommunication industry is rising lavishly in Pakistan and there is a lot of competition going on between the various networks operating in Pakistan. The findings of this research has helped the industry as well as customers; for industry, this study has helped them to generate such policies which would be best for their customers by getting some insight about the factors affecting the loyalty of the customers to their telecommunication company. Similarly, the customers would get to know which service provider is the best for them.