Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece

Abstract

PurposeThe purpose of this paper is to investigate crucial factors that lead to customer loyalty in the mobile telephony sector in Greece, namely service quality and customer satisfaction. Furthermore, the mediation effect of customer satisfaction on the service quality and customer loyalty relationship is also to be examined.Design/methodology/approachField research was conducted. The questionnaire was formed by a synthesis of existing constructs in relevant literature. The main research target sample consisted of residential non‐business mobile phone users in Greece. Reliability tests and statistical analyses were performed to both confirm scale validity and reliability and answer the research questions.FindingsCustomer service, pricing structure and billing system are the service quality dimensions that have the more significant positive influence on customer satisfaction, which in turn has a significant positive impact on customer loyalty. The mediation role of customer satisfaction on the service quality and customer loyalty relationship has also been confirmed.Research limitations/implicationsFor a more holistic investigation approach of customer loyalty, a future study could examine other antecedents such as trust, inertia and attractiveness of alternatives. Moreover, the investigation of the mediation role of switching costs on the link between satisfaction and loyalty could enhance the research model.Originality/valueIt is of great importance for mobile operators in a mature market such as that of Greece, to understand what the drivers of customer loyalty are. The present study produced useful findings, which can be utilized by mobile telephony provider managers, in their effort to develop and implement successful customer loyalty strategies.