Krishna Moorthy, Loh Chun T’ing, Seow Ai Na, Chew Tze Ching, Lee Yuin Loong, Lim Sze Xian and Teoh Wei Ling
This paper aims to study the factors that influence customer loyalty toward the internet service providers in Malaysia. The five factors used are corporate image, perceived…
Abstract
Purpose
This paper aims to study the factors that influence customer loyalty toward the internet service providers in Malaysia. The five factors used are corporate image, perceived quality, perceived value, price fairness and promotion. The mediating variable of this study is customer satisfaction, while customer loyalty is the study variable.
Design/methodology/approach
The primary data collection has been done by distributing survey questionnaires to 338 internet users in Malaysia. The data collected have been analyzed with SAS software.
Findings
The results showed that perceived quality has the strongest influence on customer satisfaction toward internet service providers in Malaysia. However, corporate image has no relationship with customer satisfaction toward internet service providers in Malaysia. Furthermore, customer satisfaction has a significant and positive relationship to customer loyalty toward the internet service providers in Malaysia.
Originality/value
European Customer Satisfaction Index has been adopted and combined with price fairness and promotion as a new research model that other researchers may look into it further. This research may also serve as a guide to internet service providers as they may learn about the underlying factors that affect the satisfaction and loyalty of customers and which factor has the strongest impact.
Details
Keywords
Ala' Omar Dandis and Mohammad Badi' Al Haj Eid
This paper investigates the factors affecting customer lifetime value from an attitudinal and behavioural brand loyalty perspective in the Internet service industry. Specifically…
Abstract
Purpose
This paper investigates the factors affecting customer lifetime value from an attitudinal and behavioural brand loyalty perspective in the Internet service industry. Specifically, willingness to pay more and word of mouth are categorised under attitudinal loyalty, while repurchase intention is classified under behavioural loyalty.
Design/methodology/approach
A self-administered questionnaire online survey via Google Forms was employed comprising a sample of 481 participants from the Internet service providers. The partial least squares structural equation modeling (PLS-SEM) approach was applied for hypotheses testing.
Findings
The current study found that “brand credibility, special treatment benefits and confidence benefits had a positive and significant influence on willingness to pay more, word of mouth and repurchase intention, with confidence benefits and brand credibility showing as the greatest elements resulting in word of mouth and repurchase intentions, whereas special treatment benefits showing as the greatest element resulting in the willingness to pay more. The results of this study did not show any positive significant between service quality dimensions and true brand loyalty (word of mouth, willingness to pay more and repurchase intention). Results also found that confidence benefits, brand credibility and special treatment benefits had an indirect impact on true brand loyalty through customer satisfaction”.
Practical implications
Internet service providers should develop and maintain good relationships with their customers as the excellence of the customer–service provider relationship can enhance customer lifetime value.
Originality/value
The current work measured customer lifetime value in terms of both the behavioural and attitudinal aspects to represent loyalty, while most previous studies consider only one dimension for this representation. Particularly, customers' true brand loyalty is measured using separate components of repurchase intentions (RIs), willingness to pay more (WPM) and word of mouth (WOM) to deepen the understanding of both managerial interest and academic.