Assessment of the Factors that Influence the Customer's Loyalty towards Mobile Phone Service Providers in Jordan

Mohammad Obeidat, A'atef Husein

Abstract


This study assesses the importance of customer loyalty towards mobile phone service providers in Jordan. It aims at determining the factors and their relative importance that influence customer's loyalty. Moreover, it aims at initiating and developing Customer Loyalty Index (CLI) for the industry and each provider under investigation. In order to achieve these objectives, a questionnaire was designed and developed to gather the data needed for the study and analysis. One thousand nine hundred twenty (1920) questionnaires were distributed among the customers in proportion with customer base for each provider. The recovered questionnaire were one thousand three hundred seventy eight (1378), the valid number for study purposes and analytical test were one thousand two hundred ninety (1290) which represent 67.2% from the total distributed questionnaire. Statistical Package for the Social Sciences (SPSS V9.05) was used for analytical purposes.

The study showed that increasing trust in providers, feeling of satisfaction towards the service offered and perceived value of the service from the customer in comparison with their sacrifice, are factors that contributed to increasing customer's loyalty towards their service provider, through the intention of repurchase, positive attitude, positive world of mouth and encouraging friends and acquaintances to deal with this service provider. The study comes out with CLI=63.32% for the whole industry whereas the highest index for Fastlink reached 65.55%, and the lowest was to Umniah with 50.9%.

The study presents some recommendations to increase customer loyalty; segmenting customers according to their loyalty level and using the appropriate strategy to deal with each segment, enhancing the performance of customer care employee, and inadequacy of networks geographic coverage for some providers, it also recommends the adoption of competitive pricing strategies.


Keywords


Customer Loyalty, Jordan Mobile Market, Customer Satisfaction, Trust, Perceived Value.

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