Factors Affecting Customer Loyalty in the Context of a Leading Telco in Pakistan

Abstract

The aim of this research is to evaluate the impact of five indirect variables i.e., customer satisfaction, perceived value, communication, conflict handling and service quality on Customer loyalty and how the two variables i.e., Commitment and trust is performing theory role as a mediating variable. This quantitative research based on the primary data collected from the current and past service users of PTCL include telephone, wired Internet/broadband, wireless internet/CharJi/EVO, and smart TV/Netflix/Smartzplay users. The questions were derived from the previous researches of factors contributing effect on customer loyalty. This research is specifically conducting in Karachi. Online surveys distributed were 100 from which 90 has been received other than online the physical surveys received 149 responses after deleting the outliers the responses became 233. The model was tested through different multiple regression after conducting validity, normality, reliability. The study concludes there is no mediating effect of commitment between customer loyalty and perceived value and service quality. Similarly, trust has no mediating effect in between Conflict handling, perceived value, service quality and customer loyalty and all the other hypothesis were accepted. The hypothesis was tested through the test of simple linear regression and analyzed by using smart PLS 3.0 software. The study can help PTCL with improving their services discussed in the research by using different and better strategies i.e., software enhancement, training of staff members, etc. The limitation of the study were demographics which can be more focused in future researches.