An investigation of key determinants of customer loyalty : evidence from Ghana’s mobile telecommunication industry

Abstract

In a fiercely competitive business environment such as the mobile network services setting, it is a marketplace reality that the ability of firms to attract and retain customers ultimately determines their growth and survival prospects. This study, therefore, investigates how customer satisfaction, perceived service quality, perceived value, corporate image and switching cost determine customer loyalty in the mobile network services setting of Ghana. A total of 140 respondents completed an online survey via emails and social media platforms in Ghana. The results of the empirical study reveal that customer satisfaction had the greatest impact on loyalty. Service quality and perceived value are both directly and indirectly related to loyalty through satisfaction. The results also show that corporate image is a direct antecedent of customer loyalty. The role of image as a key factor in mobile network services marketing is thus confirmed. However, the influence of switching costs on customer loyalty was not corroborated in this study. We suggest that managers should emphasize service quality and perceived value as core elements for building satisfaction and loyalty. In regard to Mobile Number Portability (MNP) intentions, the study found that there were as many customers who were likely to port their numbers as there were those who might not. Notwithstanding, those with porting intent were fairly larger. Some customers also reported indecisiveness with MNP. As such, brand managers should design unique marketing strategies aimed at each of these consumer groups.