Securing delight and loyalty in a market with low switching costs

Abstract

Purpose: This study aims to explore the loyalty intent of prepaid (contract-free) customers in a market where disloyalty is prevalent and the market has low switching costs. Design/methodology/approach: A quota, non-probability sampling technique was applied, resulting in the completion of 220 self-administered questionnaires that were used for data analysis. Confirmatory factor analysis and a structural equation model were applied to determine model fit and test the formulated hypotheses for this study. Findings: The strength of the satisfaction–loyalty relationship is found to be influenced by three specific satisfaction antecedents, strengthened by the mediating role of customer delight and impacted by switching costs. Practical implications: The findings of this study may guide mobile service providers in their initiatives to secure satisfaction and loyalty in a market context where switching costs are low and the market is described as disloyal. Originality/value: This study investigates the well-researched relationship between satisfaction and loyalty and the antecedents of customer satisfaction to determine which of these variables should be the focus in a challenging market where consumers are disloyal and switching costs are low.