The Influence of Customer Experience on Customer Loyalty in Telecommunication Industry

Abstract

This study aims to examine the relationship between customer experiences and customer loyalty in the context of telecommunication industry. A self-administrated questionnaire was distributed to 248 network service subscribers as a sample of this study. PLS approach to Structural Equation Modelling (SEM) was applied to data analysis. In the second-order model derived from the results, customer experience is decomposed into 3 dimensions, namely core service, charging, and brands, which have a significant impact towards customer loyalty. It is concluded that customer experience positively influenced customer's loyalty. The study's results have important implications for the durability of customer relationship with the service provider since it provides the best practice guideline in building customer loyalty through customer experience. Designing good customer experience will ensure telecommunication industry to perform well. Furthermore, this paper hopes to enhance marketing manager's knowledge and understanding of the effect of customer experience towards customer loyalty. Thus, they will be able to precisely maneuver the identified determinants that contribute towards greater customer experiences

Augmenting customer loyalty through customer experience management in the banking industry

“…With increased competition in the banking industry the world over, there is an impetuous need for banks to enhance the loyalty of their customers. According to Imbug et al (2018), customer experience is an antecedent factor of customer loyalty. Imbug et al (2018) reiterate that customer experience drives the cognitive and emotional well-being of the customers to liking the product or brand in a way that eliminates or reduces switching behavioural effect.…”

“…According to Imbug et al (2018), customer experience is an antecedent factor of customer loyalty. Imbug et al (2018) reiterate that customer experience drives the cognitive and emotional well-being of the customers to liking the product or brand in a way that eliminates or reduces switching behavioural effect. Becker and Jaakkola (2020) emphasize that customers become loyal because of the experience they gain from the service providers at various touch points.…”

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“…One of the factors that can give customer loyalty is Customer experience (Imbug et al, 2018;Santoso et al, 2018). The research by Wijaithammarit dan Taechamaneestit (2012) and Thuan et al (2015) show that Customer experience influences customer loyalty.…”

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