Research Paper

Research Paper on

Effect of Switching Cost, Service Quality, Customer Satisfaction on Consumer Loyalty of Cellular Service Providers In Indian Market

Source : ICFAI university Journal of Marketing Management , Vol. VIII ,Feb. 2009

Researchers, S.K.Chadha Deepa Kapoor

Made by, Shreyas D Laste Roll No.-28

Objective - In telecom Sector India has highest growth rate - Protecting Subscriber Base is to win customer Loyalty - Study Shows that Switching Cost, Service Quality, Customer Satisfaction have positive effect on Customer Loyalty

Introduction - Major work is to maintain the current customer - Highest growth rate in the world 45% in 2007 - Total 66.34 million subscriber added in 2006-07 - Annual growth rate 83.17

Theoretical Background -Switching Cost - Cost involved in changing service from one provider to another -Service Quality - customer retention depend upon service quality -Customer Satisfaction - it is customer experience while getting service -Customer Loyalty - it is favorable attitude towards particular brand

Hypothesis Of the Study H1 : Higher is the switching cost ,higher is the Customer Loyalty H2 : Higher is the customer perceived service quality, higher is the Customer Loyalty H3 : Higher is the Customer Satisfaction , higher is the Customer Loyalty

Data Collection and Sample -Data from GSM Pre-paid Subscribers in Ludhiana and Chandigarh -Convenient Sampling method is used -Total 300 questionnaires were distributed in both cities out of which 220 were completed(73.33%)

Research Methodology 3.Measurement Variable i. Switching Cost - include initial set up cost, learning cost, time and effort, monetary cost, uncertainty cost - all measured on a five point Likert Scale ii. Service Quality - include network quality, pricing structure, convenience, and value added services. - all measured on a five point Likert Scale

Contd……… iii. Customer Satisfaction - include overall customer satisfaction and conformity with pre-purchase expectation - all measured on a five point Likert Scale iv. Customer Loyalty - include repurchase intention, switching to competitors product or service and recommended to friends and associates - all measured on a five point Likert Scale

2. Data Analysis and Findings - Collected Data analyzed by SPSS 11.5 statistical tool - Reliability Analysis - done by computing coefficient of Cronbach Alfa - it measures internal consistency of items Sr. No. 1 2 3 4

Name of the Scale Switching Cost Service Quality Customer Satisfaction Customer Loyalty

Cronbach Alfa 0.76 0.82 0.85 0.79

Hypothesis Testing Correlation analysis Correlation

Switching Cost

Service Quality

Customer Satisfaction

Customer Loyalty

0.436

0.368

0.653

Regression Analysis Variables

Std. Coefficient

t-value

Customer Satisfaction

0.693

14.351

Service Quality

0.310

4.98

Switching Cost

0.238

3.85

Conclusion

- Customer Satisfaction is most significant to Customer Loyalty - Maximize service quality and customer satisfaction to enhance customer loyalty - Improve network quality, price and value added services - Also implement some reward programs

Thank you