Exploring Service Quality, Customer Satisfaction and Customer Loyalty in the Taiwan Mobile Telecommunication

Abstract

The launch of nationwide Mobile Number Portability (MNP) in  October 2005  has  taken  the  Taiwan mobile telecommunication  industry  one  step  forward . The implementation of MNP has given another challenge for the mobile service providers to maintain their  loyalty of existing  customer  as  customers  are  allowed  to retain their existing telephone number when switching from one mobile service  provider  to  another. Under such circumstances, the pursuit of customer loyalty appears to be an essential goal of the companies' sustainable competitive advantage and growth. In response to the challenges, mobile service providers are aggressively launching various innovative and attractive marketing campaigns and promotions with the aim to retain customer loyalty. The objectives to carry out this research are to investigate  the  relationship  between service quality and  customer  satisfaction  and to  investigate  the  relationship  between  customer satisfaction  and  customer  loyalty  in  the  Taiwan mobile telecommunication market. This study adopts five dimensions of SERVQUAL instrument to measure service quality in the mobile telecommunication industry, such as tangibles, reliability, responsiveness, assurance and empathy.  A series of Questionnaire provide and distribute to explore the mobile service providers’ customer. The five-point Likert scale that ranged from 1=strongly disagree to 5= strongly agree. Hypotheses testing are needed to obtain the objective of this research by using Regression analysis. Result  shows  that  the  dimensions  of  service  quality  such  as tangibles, responsiveness, assurance and empathy have significant effect  to customer  satisfaction.  Furthermore,  customer  satisfaction  was found  to  have significant  positive effect  on customer  loyalty  in  the Taiwan mobile telecommunication industr