The Role of Quality in Bit Stream Access Internet Service Providers on Customer Loyalty

Abstract

The Internet Service Provider (ISP) sector in Palestine operates in a highly competitive market that presents many challenges related to Israeli rules and regulations concerning internet services. Such challenges emphasize the need for the various ISPs to have a detailed and clear understanding of the critical service quality dimensions that affect the loyalty of customers, and to constantly evaluate and strengthen the service they provide. Therefore, the aim of this work is to study the influence of service quality on customer satisfaction and loyalty in the Palestinian internet sector. The study used a quantitative approach based on the SERVQUAL dimensions to collect the data from internet subscribers through a questionnaire and the data was analyzed using statistical methods. The survey data was gathered from 403 valid responses covering more than eight ISP companies in the West Bank. An examination of the study variables based on the conceptual framework was achieved by using SPSS, where means of quantitative methods such as a comparison of means, and simple and multiple regressions were calculated. The results indicate that, in general, the level of service quality does not meet customer expectations. In addition, a descriptive analysis of the study variables indicates that the means of three service quality dimensions (reliability, responsiveness, and tangibility) have a medium degree level, while empathy and assurance have a high degree level. It is showed that service quality positively affects customer satisfaction. A positive relationship exists between customer satisfaction and customer loyalty. The study suggests that the effect of the “responsiveness” dimension on consumer satisfaction and loyalty is stronger than the effects of the other dimensions, with “tangibility” having the lowest effect. Finally, the study recommends to ISPs to improve the level of service quality in order to meet customers' needs and wants, and in order to gain long-term customer loyalty.