| Peer-Reviewed

An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs

Received: 5 June 2023    Accepted: 21 June 2023    Published: 6 July 2023
Views:       Downloads:
Abstract

Grameenphone (GP) is the market leader in the telecommunications sector in Bangladesh by providing consistent service to its targeted customers. The study is devoted to recognizing the variables that impact the customer’s satisfaction and the mediating effect of loyalty programs in the telecommunications industry. Customer loyalty of GP is determined by a variety of gratifying factors, including the company's network facilities, information service, 4G service, billing costs, physical facilities, GP's offerings, customer care service, mobile banking platforms, and more. This study examines the empirical analysis of factors influencing customer satisfaction in the telecommunications industry through the mediating effect of customers’ loyalty programs of university students in Bangladesh. To identify the factors that impact the customer satisfaction and loyalty of the study, the researcher used the methods of Pearson Coefficient of correlation and multiple regression analysis and these helped to find out the result of the hypotheses of the study. This study makes recommendations regarding the factors that can affect customer satisfaction as well as how prospective customers can become loyal customers who use the Grameenphone service platform for a long period of time. The paper also suggests the Grameenphone’s authority to consistently improve the quality of strategic service factors that influence customers’ loyalty programs and their motives.

Published in European Business & Management (Volume 9, Issue 4)
DOI 10.11648/j.ebm.20230904.11
Page(s) 63-70
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Customer Satisfaction, Loyalty Programs, Grameenphone, Telecommunications Industry

References
[1] Agbor, J. M. (2011). The Relationship between Customer Satisfaction and Service Quality: a study of three Service sectors in Umeå. Umeå University, Umeå School of Business, Master’s Thesis, pp. 1-86.
[2] Ampadu, M. B., Aboagye, M. O., Ampadu, M., & Ampadu, S. (2015). Corporate branding and consumer loyalty in the telecommunication industry: A case study of MTN Ghana. Net Journal of Business Management, 3 (3), 36-42.
[3] AMTOB (2023). Association of Mobile Telecom Operators of Bangladesh. https://www.amtob.org.bd/home/members
[4] Bamfo, B. A., Dogbe, C. S. K., & Osei-Wusu, C. (2018). The effects of corporate rebranding on customer satisfaction and loyalty: Empirical evidence from the Ghanaian banking industry. Cogent Business & Management, 5 (1), 1-11.
[5] Bowen, J. T. and Shoemaker, S. (1998). Loyalty: A Strategic Commitment? Cornel Hotel and Restaurant Administration Quarterly, 12-25.
[6] Brayfield, A. H., & Rothe, H. F. (1951). An Index of Job Satisfaction. Journal of Applied Psychology, 35 (5), pp. 307-311.
[7] Bruhn, M. (2003). Relationship marketing: Management of customer relationships. Pearson Education.
[8] Chiou, J. S., Droge, C., & Hanvanich, S. (2002). Does customer knowledge affect how loyalty is formed?. Journal of Service Research, 5 (2), 113-124.
[9] Chochoľáková, A., Gabčová, L., Belás, J., Sipko, J. (2015). Bank Customers’ Satisfaction, Customers’ Loyalty and Additional Purchases of Banking Products and Services. A Case Study from the Czech Republic. Economics and Sociology, 8 (3), 82-94.
[10] Cronbach, L. J. (1951). Coefficient Alpha and Internal Structure of Test. Psychometrika, 16, pp. 297-334.
[11] Devkota, N., & Dahal, J. R. (2016). An Empirical Study Of Service Quality Dimensions On Customer Satisfaction And Customer Loyalty In Nepalese Commercial Banking Sector (Published master thesis). University of Agder, Kristiansand, Norway.
[12] Ehigie, B. O. (2006). Correlates of customer loyalty to their bank: a case study in Nigeria. International Journal of Bank Marketing, 24 (7), 494-508.
[13] Ganesh, J., Arnold, M. J., and Reynolds, K. E. (2000). Understanding the Customer Base of Service Providers: An Examination of the Differences Between Switchers and Stayers. Journal of Marketing. 64, 65-87.
[14] Gounaris, S. P. (2005). Trust and commitment influences on customer retention: insights from business-to-business services. Journal of Business research, 58 (2), 126-140.
[15] Grameenphone (2023). Grameenphone. https://en.wikipedia.org/wiki/Grameenphone
[16] Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of marketing, 69 (4), 210-218.
[17] Gyasi, N., & Azumah, F. (2009). An assessment and analysis of customer satisfaction with service delivery of mobile telecommunication networks in Ghana. Lulea University of Technology.
[18] Hadi, N. U., Aslam, N., & Gulzar, A. (2019). Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry. Sustainability, 11 (8), 1-17.
[19] Hallowell, R. (1996). The relationship of customer satisfaction, customer loyalty and profitability: an empirical study. International Journal of Service Industry Management, 7 (4), pp. 27-42.
[20] Homburg, Ch., & Giering, A. (2001). Personal Characteristics as Moderators of the Relationship between Customer Satisfaction and Loyalty - An Empirical Analysis. Psychology &Marketing, 18 (1), pp. 43-66.
[21] Ismail, I., Haron, H., Ibrahim, D. N., & Isa, S. M. (2006). Service quality, client satisfaction and loyalty towards audit firms. Managerial auditing journal, 21 (7), 738-756.
[22] Kılıçarslan, D., & Caber, M. (2018). The Impacts of Perceived Crowding, and Atmospherics on Visitor Satisfaction at Cultural Heritage Sites: A Comparison of Turkish and British Visitors to Topkapi Palace, Istanbul. Journal of Tourism and Services, 9 (17).
[23] Kim, M., Chang, Y., Park, M. C. & Lee, J. (2015). The effects of service interactivity on the satisfaction and the loyalty of smartphone users. Telematics and Informatics, 32 (4), 949-960.
[24] Kim, M. K., Wong, S. F., Chang, Y. & Park, J. H. (2016). Determinants of customer loyalty in the Korean smartphone market, Moderating effects of usage characteristics. Telematics and Informatics, 33 (4), 936-949.
[25] Lam, R., & Burton, S. (2006). SME banking loyalty (and disloyalty): a qualitative study in Hong Kong. International Journal of Bank Marketing, 24 (1), 37-52.
[26] Liang, C. J., & Wen-Hung, W. (2004). Attributes, benefits, customer satisfaction and behavioral loyalty-an integrative research of financial services industry in Taiwan. Journal of services research, 4 (1), 57.
[27] Lin, L., Osman, Z., & Wang, S. (2018). Indirect Effect on Trust on Customer Satisfaction and Customer Loyalty Relationship in Malaysian Airline Industry. Journal of Economics and Business, 1 (2), 134-241.
[28] Milan, G. S., Eberle, L., & Bebber, S. (2015). Perceived value, reputation, trust, and switching costs as determinants of customer retention. Journal of Relationship Marketing, 14 (2), 109-123.
[29] Mohmmed, A. A., Ibrahim, S. B., & Ali, A. H. (2017). The Impact of Service Quality on the Customer Loyalty in Sudanese Banking sector. Journal of Economic Sciences, 18 (2), 212-225.
[30] Nguyen, N., Leclerc, A., & LeBlanc, G. (2013). The Mediating Role of Customer Trust on Customer Loyalty. Journal of Service Science and Management, 6, 96-109.
[31] Nunnally, J. L. (1978). Psychometric Theory. New York: McGraw Hill Company.
[32] Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262-270.
[33] Oliver, R. L. (1997). Satisfaction: A Behavioural Perspective on the Customer. New York: McGraw-Hill.
[34] Osman, Z., Mohamad, R., & Mohamad, L. (2016). Mediating effect of customer satisfaction on service quality and trust relationship in Malaysian banking industry. International Journal of Advances in Management, Economics and Entrepreneurship, 3 (1), 10-19.
[35] Pérez, A., & Del Bosque, I. R. (2015). An integrative framework to understand how CSR affects customer loyalty through identification, emotions and satisfaction. Journal of Business Ethics, 129 (3), 571-584.
[36] Pratiwi, D. M. (2015). The Influence of Brand Image, Brand Trust and Customer Satisfaction on Brand Loyalty (Case Of Samsung Smartphone). Jurnal Berkala Ilmiah Efisiensi, 15 (5), 377-385.
[37] Pritchard, M. P. and Howard, D. R. (1997). The Loyal Traveler: Examining a Typology of Service Patronage. Journal of Travelers Research, 35 (4), 2-11.
[38] Qiu, H., Ye, B. H., Bai, B., & Wang, W. H. (2015). Do the roles of switching barriers on customer loyalty vary for different types of hotels?. International Journal of Hospitality Management, 46, 89-98.
[39] Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International journal of service industry management, 14 (4), 374-395.
[40] Rasheed, H. M. W. & Anser, M. K. (2017). Effect on Brand Loyalty in Mobile Phone Purchasing (A Case Study in Bahawalpur, Pakistan). Journal of Public Administration and Governance, 7 (1), 102-115.
[41] Redda, E. H., & Shezi, N. (2019). Antecedents of customer satisfaction and brand loyalty of smartphones among Generation Y students. Polish Journal of Management Studies, 20.
[42] Rychalski, A., & Hudson, S. (2017). Asymmetric effects of customer emotions on satisfaction and loyalty in a utilitarian service context. Journal of Business Research, 71, 84-91.
[43] Sekaran, U. (2006). Research Methods for Business: A Skill Building Approach. Hoboken, NJ: John Wiley & Sons.
[44] Sun, P. C., & Lin, C. M. (2010). Building customer trust and loyalty: an empirical study in a retailing context. The Service Industries Journal, 30 (9), 1439-1455.
[45] Türkay, O., Korkutata, A., & Yılmaz, Ö. (2018). Does Animation Services Really Matter? Place of Animation Services in the Perceived Quality–Overall Satisfaction Model. Journal of Tourism and Services, 9 (16), 14-30.
[46] Ullah, A., and Rahman, M. H. (2015). “Existing and expected service quality of Grameen Phone users in Bangladesh.” The Asian Journal of Technology Management, 8 (2): pp. 151-159.
[47] Ullah, A., Islam, T., & Rahman, M. (2017). Consumer’s Satisfaction Level about Grameen Phone’s (GP) Service in Bangladesh: A Case Study on Perception Analysis. J Bus Fin Aff 6: 258. doi: 10.4172/2167-0234.1000258.
[48] Wikimedia Foundation (2023). Grameenphone. Wikipedia. Retrieved February 21, 2023, from https://en.wikipedia.org/wiki/Grameenphone
[49] Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology & marketing, 21 (10), 799-822.
[50] Yew, M. P., & Rahman, M. A. (2019). The Mediating Role of Satisfaction in Developing Customer Loyalty in the Malaysian Telecommunication Industry. Academy of Entrepreneurship Journal, 25 (1), 1-12.
[51] Yi, Y. (1990). A Critical Review of Consumer Satisfaction. In V. A. Zeithaml (Ed.), Review of Marketing 1990 (pp. 68-123). Chicago, IL: American Marketing Association.
[52] Yoo, S. J., Huang, W. H. D., & Kwon, S. (2015). Gender still matters: Employees' acceptance levels towards e-learning in the workplaces of South Korea. Knowledge Management & E-Learning: An International Journal, 7 (2), 334-347.
Cite This Article
  • APA Style

    Ripan Chatterjee, Atikur Rahman. (2023). An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs. European Business & Management, 9(4), 63-70. https://doi.org/10.11648/j.ebm.20230904.11

    Copy | Download

    ACS Style

    Ripan Chatterjee; Atikur Rahman. An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs. Eur. Bus. Manag. 2023, 9(4), 63-70. doi: 10.11648/j.ebm.20230904.11

    Copy | Download

    AMA Style

    Ripan Chatterjee, Atikur Rahman. An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs. Eur Bus Manag. 2023;9(4):63-70. doi: 10.11648/j.ebm.20230904.11

    Copy | Download

  • @article{10.11648/j.ebm.20230904.11,
      author = {Ripan Chatterjee and Atikur Rahman},
      title = {An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs},
      journal = {European Business & Management},
      volume = {9},
      number = {4},
      pages = {63-70},
      doi = {10.11648/j.ebm.20230904.11},
      url = {https://doi.org/10.11648/j.ebm.20230904.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20230904.11},
      abstract = {Grameenphone (GP) is the market leader in the telecommunications sector in Bangladesh by providing consistent service to its targeted customers. The study is devoted to recognizing the variables that impact the customer’s satisfaction and the mediating effect of loyalty programs in the telecommunications industry. Customer loyalty of GP is determined by a variety of gratifying factors, including the company's network facilities, information service, 4G service, billing costs, physical facilities, GP's offerings, customer care service, mobile banking platforms, and more. This study examines the empirical analysis of factors influencing customer satisfaction in the telecommunications industry through the mediating effect of customers’ loyalty programs of university students in Bangladesh. To identify the factors that impact the customer satisfaction and loyalty of the study, the researcher used the methods of Pearson Coefficient of correlation and multiple regression analysis and these helped to find out the result of the hypotheses of the study. This study makes recommendations regarding the factors that can affect customer satisfaction as well as how prospective customers can become loyal customers who use the Grameenphone service platform for a long period of time. The paper also suggests the Grameenphone’s authority to consistently improve the quality of strategic service factors that influence customers’ loyalty programs and their motives.},
     year = {2023}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - An Empirical Analysis of Factors Influencing Customer Satisfaction in the Telecommunications Industry Through the Mediating Role of Loyalty Programs
    AU  - Ripan Chatterjee
    AU  - Atikur Rahman
    Y1  - 2023/07/06
    PY  - 2023
    N1  - https://doi.org/10.11648/j.ebm.20230904.11
    DO  - 10.11648/j.ebm.20230904.11
    T2  - European Business & Management
    JF  - European Business & Management
    JO  - European Business & Management
    SP  - 63
    EP  - 70
    PB  - Science Publishing Group
    SN  - 2575-5811
    UR  - https://doi.org/10.11648/j.ebm.20230904.11
    AB  - Grameenphone (GP) is the market leader in the telecommunications sector in Bangladesh by providing consistent service to its targeted customers. The study is devoted to recognizing the variables that impact the customer’s satisfaction and the mediating effect of loyalty programs in the telecommunications industry. Customer loyalty of GP is determined by a variety of gratifying factors, including the company's network facilities, information service, 4G service, billing costs, physical facilities, GP's offerings, customer care service, mobile banking platforms, and more. This study examines the empirical analysis of factors influencing customer satisfaction in the telecommunications industry through the mediating effect of customers’ loyalty programs of university students in Bangladesh. To identify the factors that impact the customer satisfaction and loyalty of the study, the researcher used the methods of Pearson Coefficient of correlation and multiple regression analysis and these helped to find out the result of the hypotheses of the study. This study makes recommendations regarding the factors that can affect customer satisfaction as well as how prospective customers can become loyal customers who use the Grameenphone service platform for a long period of time. The paper also suggests the Grameenphone’s authority to consistently improve the quality of strategic service factors that influence customers’ loyalty programs and their motives.
    VL  - 9
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • Department of Business Administration, Port City International University, Chattogram, Bangladesh

  • Department of Business Administration, Port City International University, Chattogram, Bangladesh

  • Sections