A study on mobile phone service loyalty in Taiwan

Raising customer loyalty is one of the most important tasks for telecom companies confronting the circumstance of a gradually saturated market. This paper centres on mobile phone service loyalty and explores the relationships between service quality, perceived value, satisfaction and loyalty of mobile telecom services. Service quality has been specified as the driver that predicts and explains customer loyalty through value creation and satisfaction as intermediary constructs. Using the structural equation modelling technique to empirically examine the relationship model in Taiwan, the results reveal: (1) a relationship path of quality --> value --> satisfaction --> loyalty is supported in general; (2) service quality has positive direct effects on perceived value, and satisfaction; (3) perceived value has positive direct effects on both satisfaction and loyalty; and (4) satisfaction has a positive effect on loyalty.