Abstract
<p>This paper examines the extent to which service use experience, commitment and perceived positive corporate reputation affect loyalty behaviour of dissatisfied stayers in mobile telephony context. Drawing on relationship marketing and switching behaviour literature a conceptual framework was developed and tested using partial least square structural equation modelling. The proposed model was validated with data from 736 subscribers of six global providers of telecommunication services. Results show that commitment and corporate reputation have significantly positive influence on the loyalty of dissatisfied stayers. Generally, the present study confirms existing marketing literature that dissatisfied customers may not necessarily switch while making unique contribution on the influence of corporate reputation as a switching barrier for dissatisfied customers. The managerial and theoretical implications are discussed.</p>
Highlights
Modern business organizations continue to purse customer-centric marketing strategies for retaining and building intimate long term relationship with profitable customers (Kotler & Keller, 2012; Bolton, 2011; Gummesson, Kuusela, & Närvänen, 2014; Jaakkola & Alexander, 2014)
This study aimed at assessing the extent to which service use experience, commitment and perceived positive corporate reputation affect loyalty behaviour of dissatisfied stayers in mobile telephony context
The results show that, among the three, the strongest factor that explains the loyalty of dissatisfied stayers is commitment, which explains as much as 58% of loyalty of this group and make a large effect size of 0.37 (Cohen, 1988)
Summary
Modern business organizations continue to purse customer-centric marketing strategies for retaining and building intimate long term relationship with profitable customers (Kotler & Keller, 2012; Bolton, 2011; Gummesson, Kuusela, & Närvänen, 2014; Jaakkola & Alexander, 2014). There is some evidence in the literature that some dissatisfied customers may still remain loyalty to current service provider (Panther & Farquhar 2004; Tseng & Wang, 2013). In the literature, results in past studies are limited to mostly firm-customer relationship factors that explain why dissatisfied customers still remain loyal to current service providers. Past research has failed to examine the effect of corporate reputation as a switching barrier that prevents dissatisfied customers to stay or remain loyal to their current service providers. The main purpose is to assess the extent to which corporate reputation and firm-customer relationship factors influence loyalty of dissatisfied customers in mobile telecommunication industry, using Ghana mobile telecommunication industry (GMTI) as the research context. The present research will contribute to marketing literature on why dissatisfied customers stay in a relationship and not switch mobile telephony service providers
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