s90862 (1) - DETERMINANTS OF LOYALTY AND THE EFFECTS OF...

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DETERMINANTS OF LOYALTY AND THE EFFECTS OF SWITCHING COST TOWARDS MOBILE TELECOMMUNICATION SERVICE PROVIDERS IN MALAYSIA By ARAVINDAN KALISRI LOGESWARAN 90862 Thesis Submitted to Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, In Partial Fulfillment of the Requirement for the Doctor of Business Administration
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iv PERMISSION TO USE In presenting this dissertation in partial fulfillment of the requirement for a postgraduate degree from Universiti Utara Malaysia, I agree that the University Library make it freely available for inspection. I further agree that permission for copying of this dissertation in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor, or in her absence, by the Dean of Othman Yeop Abdullah Graduate School of Business. It is understood that any copying or publication or use of this dissertation or part thereof for financial gain not to be allowed without my written permission. It is also understood that due recognition shall be given to me and to Universiti Utara Malaysia for any scholarly use which may be made of any material from my dissertation. Request for permission to copy or to make use of the materials in this dissertation, in whole or in part, should be addressed to: Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia 06010 UUM Sintok Kedah, Malaysia
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v ABSTRACT Customer loyalty has been a highly sought after topic among academicians and industry practitioners to enable growth and competitiveness enhancement. This research investigated the challenges plaguing the mobile telecommunication industry, namely fluctuating revenue despite growth in the number of users, sliding average revenue per user (ARPU) and reduced repeat purchase, in addition to scarcity in analysing switching cost’s mediating effect. These impose serious concerns that link to dwindling customer loyalty. This research also compared the preferences of postpaid and prepaid users pertaining to satisfaction, trust, service quality and switching cost towards customer loyalty. This study utilized a quantitative approach where the stratified systematic random sampling was employed and data was collected in the Klang Valley over a time frame of 105 days. The instrument used was a self-administered questionnaire whereas structural equation modelling (SEM) was exercised for statistical analysis. The findings revealed that service quality and switching costs were the driving forces of loyalty while service quality, too, advocates switching cost. Moreover, service quality and loyalty were found to be the only constructs mediated by switching cost. Satisfaction and trust were however, found not to predict loyalty and switching cost. In fact, there were no mediating effects of switching cost on satisfaction and loyalty relationship, similar to trust and loyalty relationship. Meanwhile, service quality and loyalty relationship were found to be important among postpaid users, contrary to prepaid users. The overall findings affirmed
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