The Impact Of Service Quality On Loyalty Intention And Customer Satisfaction: The Moderating Effect Of Price Fairness And Switching Cost Of Prepaid Mobile Phone Users In Thai Land
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Date
2010-04
Authors
Srikanjanarak, Saowanee
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Increasing global competition has led to an intensively competitive market among service providers. Several organizations have created and developed a variety of products or services; in particular the telecommunications industry has developed mobile phone services. Various value-added services linked to mobile phone services, the complexity of price strategies in mass service context is increasingly competitive, offering variety of service options among service providers and various promotions have been increasingly used as major tools to retain their existing customers. However, service quality models have placed little focus on value-added services and no research has yet operationalized the concept of value-added services in a service quality model from the customer’s perspective of the service industry. In addition, the lack of operational measurement to capture the price fairness perception and the impact of various strategies in customer’s view in terms of switching cost has received little attention in the service marketing literature. Moreover, there have been limited studies investigating their impact on customer behaviour. Hence, this study aims to further conceptualize a service quality model, develop an extension of conceptualization and a multiscale measurement of price fairness perception and examine the effects of various dimensions of service quality on loyalty intention through customer satisfaction. Moderating effects of price fairness and switching costs (positive and negative) on customer satisfaction and loyalty intention are also investigated. Data is collected from individual users by using self-administrated questionnaires and 998 usable responses were analyzed. Four dimensions of service quality are created; core service, non-voice service, entertainment service and customer care service. They affect both staying intention and word of mouth intention, except
entertainment services which have impact only on word of mouth intention. The results support the mediation effect of customer satisfaction on three dimensions of service quality and loyalty intention, except entertainment service. The moderating effect of price fairness perception and positive switching cost has been demonstrated. These findings indicated that to maintain the loyalty intention between customer and service provider, the creating and developing the quality of core service, other services related to the core service seems to be an increasingly important weapon. However, entertainment service is also effecting an increasing impact on word of mouth intention. Moreover, price strategy should be focused on the fair deal and positive switching cost should be pursued from the point of view of the customer. The general discussion, limitations, theoretical and practical implications and recommendations from the current findings are provided.
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Keywords
Price fairness and switching cost of , Prepaid mobile phone users in Thailand