IMPACT OF SERVICE QUALITY, TRUST, AND CUSTOMER SATISFACTION ON CUSTOMER LOYALTY

ABAC Journal Vol. 29, No. 1 (January-April 2009, pp.24-38)

AUTHOR:
Mohammad Muzahid Akbar
Noorjahan Parvez

ABSTRACT:

This research has proposed a conceptual framework to investigate the effects of customers’ perceived service quality, trust, and customer satisfaction on customer loyalty. To test the conceptual framework, structural equation modeling (SEM) has been used to analyze the data collected from 304 customers of a major private telecommunication company operating in Bangladesh. The results of the study indicate that trust and customer satisfaction are significantly and positively related to customer loyalty. Customer satisfaction has found to be an important mediator between perceived service quality and customer loyalty. A clear understanding of the postulated relationships among the studied variables might encourage the mobile service provider(s) to figure out appropriate course of action to win customers’ trust by providing better services in order to create a loyal customer base.

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