The Relationship Between Service Quality, Perceived Value, Trust and Loyalty to Mobile Operators and Their Services

Abstract

In this paper, the authors conceptualize and test a theoretical framework linking service quality, utilitarian and hedonic value, and trust with three individual loyalty dimensions. The direct relationships between trust and different dimensions of loyalty have received little attention in previous research. Data analysis incorporates confirmatory factor analysis and structural equation modeling on 1385 mobile users. The results indicate that trust is a strong predictor of action loyalty, while utilitarian and hedonic value mainly influence cognitive loyalty and word of mouth communication. The findings of this study offer new insights in increasing revenue per user in this dynamic sector by illustrating the dominating role of trust as an important driver of customers’ action loyalty as well as the importance of value-for-money in enhancing cognitive loyalty and word of mouth.