International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 1 - Issue 2, March 2012 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Impact of customer satisfaction and retention on customer loyalty

[Full Text]



Inamullah Khan



Customer satisfaction, Customer retention, Customer loyalty



The purpose of this study is to examine the importance of future customer\\\\\\\'s relationship using customer satisfaction, and customer retention on customer loyalty in telecom industry of Pakistan. Questionnaires were distributed through electronic mail and self administered for data collection and regression analysis was used. The results show that customer satisfaction has significant while customer retention has insignificant impact on customer loyalty. The implications of the study are that a company should better manage their relationships with the customers as a competitive policy in mobile telephone marketplace. The weak side of the study is that it is limited to a single industry of mobile telecommunication.



Anderson, E.W. (1994). Variation in Customer Satisfaction and Retention. Marketing Letters, 5(1), 19-30.
Anh, N. P. (2010). The moderating role of trust between e-satisfaction and e-loyalty. http://etd.lib.stut.edu.tw/ETD-db/ETDsearch/view_etd?URN=etd-1215110-100000-118.
Auh, S., & Johnson, M. D. (2005). Compatibility effects in evaluations of satisfaction and loyalty. journal of Economic psychology, 26, 35-57.
Bodet, G. (2008). Customer satisfaction and loyalty in service: two concepts, four construct several relationships. Journal of retailing and consumer services, 15, 156-162.
Bolton, R. N., Kannan, P. K., & Bramlett, M. D. (2000). Implications of loyalty program membership and service experiences for customer retention and value. Journal of of the Academy of Marketing science, 28(1), 95-108.
Chang, Y. H., & Chen, F. Y. (2007). Relational benefits, switching barriers and loyalty: A study of airline customer in Taiwan. journal of Air transport management, 13, 104-109.
Chen, P. T., & Hu, H. H. (2010). The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry. International journal of hospitality management, 29, 405-412.
Gerpott,T. J., Rams,W., & Schindler, A. (2001). Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market. Telecommunications Policy, 25, 249-269.
Guillen, M., Nielsen, J.P., Scheike, T.H., & Perez-Marin, A.M. (2011). Time varying effects in the analysis of customer loyalty, A case study in insurance. Expert systems with applications.doi 10.1016/j.eswa.2011.09.45.
Guo, L., Xiao, J. J., & Tang, C. (2009). Understanding the psychological process underlying customer satisfaction and retention in a relational service. Journal of Business Research, 62, 1152?1159.
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty and profitability International. Journal of Service Industry Management, 7(4), 27-42.
Hauser, J. R., Simester, D. I., & Wernerfelt, B. (1994). Customer satisfaction incentives. Marketing Science, 13(4), 327-350.
Kayali, D.E., & Taher, A. (2010). Developing Benefitbased measurement scale using factor analysis: an improved method for understanding Egyptian car buyers. International review of Business Research Papers, 6(4), 58-76.
Kim, H.S., & Yoon, C.H. (2004). Determinants of subscriber churn and customer loyalty in the Korean mobile telephony market Determinants of subscriber churn and customer loyalty in the Korean mobile telephony market. Telecommunications policy, 28, 751-765.
Kim, K.J., jeong, I. J., Park, J. C., Park, Y. j., Kim, C. G., & Kim, T. H. (2007). The impact of network performance on customer satisfaction and loyalty: High speed internet service case in Korea. Expert system with Applications, 32, 822-831.
Kumar, V., & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century. Journals of Retailing, 80, 317-330.
Lin, H. H., & Wang, Y. S. (2006). An examination of the determinants of customer loyalty in mobile commerce contexts. Information & management, 43, 271-282.
Lin, J. S. C., & Wu, C. Y., (2011). The role of expected future use in relationship-based service retention. Managing Service Quality, 21(5), 535-551.
Mcllroy, A., & Barnett, S. (2000). Building customer relationships: do discount cards work? Managing service quality, 10(6), 347-355.
Pan, Y., Sheng, S., & Xie, F. T. (2011). Antecedent of customer loyalty: An empirical synthesis and reexamination, Journal of retailing and customer services, doi:10.1016/j.jretcons.
Petterson, P. G. (2004). A contingency model of behavioral intention in a service context. European journal of marketing, 38(9), 1304-1315.
Rauyruen, P., & Miller, K.E. (2007). Relationship quality as a predictor of B2B customer loyalty. Journal of Business Research, 60, 21?31.
Rust, R. T., & Zahorik, A. J. (1993). Customer Satisfaction, Customer Retention and Market Share. Journal of retailing, 69 (2), 193-215.
Rust, R. T., Zohorik, A. J., & keiningham, T. L. (1995). Return on Quality (ROQ): Making Service Quality Financially Accountable. journal of marketing, 59, 58-70.
Saeed, K. A., Grover, V., & Hwang, Y. (2005). The relationship of E-commerce Competence to customer value and firm performance: An Empirical Investigation.Journal of Management Information System, 22(1),223-256.
Shankar, V., Amy, K. Smith, A. K., & Rangaswamy, A. (2003). Customer satisfaction and loyalty in online and offline environments. International journal of research in marketing, 20, 153-175.
Smith, M., & Chang, C. (2009). The impact of customer related strategies on shareholder value: evidence from Taiwan. Asian review of accounting, 17(3), 247-268.
Verhoef, P. C. (2003). Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development. Journal of Marketing, 67, 30?45.
Vesel, P., & Zabkar, V. (2009). Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program. Journal of retailing and customer services, 16, 396-406.
Yen, H. J. R., & Gwinner, K. P., (2003). Internet retail customer loyalty: the role of relational benefits. Journal of service industry management, 14(5), 483-500
Wong, Y. H., Chan, R. Y. K., Ngai, E. W. T., & Oswaldw, P. (2009) Is customer loyalty vulnerability based? An empirical study of a Chinese capital intensive manufacturing industry. Industrial marketing management, 38, 83-93.