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An empirical analysis of customer loyalty in Pakistan's telecommunication industry

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This research aspires to achieve two main objectives. The first objective of this study is to comprehend customer loyalty in context of a developing country such as Pakistan where there has been an incidence of above average cellular subscriptions within the last decade. The second aim of this article is to understand underlying attitudes and behaviors of loyal customers through their demographic details. It attempts to replicate an empirical model for measuring Customer Loyalty in the telecommunication industry of Pakistan and examines factors such as Telecommunication service quality (TSQ), Trust (T), Staff loyalty (SL) and switching cost (SC). This subject has received copious attention in the literature pertaining to marketing studies, yet has been scantly covered from the viewpoint of Resource-Based view in strategic management. The article opts for a field study where data is collected by means of a cross-sectional approach through a structured questionnaire from 146 users of cellular operators (54 per cent male), who work in private or public sector or are self-employed. Pearson correlation, simple linear regression and correlations are used to analyze the data. This research has identified that the factors that shape the loyalty of customers in the telecommunication industry of Pakistan are not just limited to trust, TSQ, SC and SL. They can also be observed through their intersection with social categories such as youth and gender. The omnipresence of mobile phones in a developing country such as Pakistan suggests that genders share their usage for technology and appreciate cellular service both on account of its utilitarian aspects, as well as hedonic features. Mobile service has become a communication channel that aids in marketing, maintains social networks and also facilitates an informal system of learning.
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Document Type: Research Article

Publication date: 2011-03-01

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