The Effect of Service Quality, Satisfaction and Loyalty toward Customer Retention in the Telecommunication Industry

Abstract

Telecommunication industry becomes more competitive, and mobile service providers are facing challenges in maintaining their customer. As a customer plays a vital role in business growth, a company must retain their customer. Thus, the purpose of this research is to examine the effect of service quality, satisfaction and loyalty towards customer retention a telecommunication industry in Malaysia. Data has been collected using a survey questionnaire and analyzed using SPSS and Smart-PLS. Six of the hypotheses were supported. Customer satisfaction has been found to have a significant relationship with customer loyalty. Service quality, which was measured using the network, customer service, and pricing structure, has been found to have a significant relationship with customer satisfaction. Research implications and recommendations are further discussed.