Three Dimensional Modelling of Customer

Satisfaction, Retention and Loyalty for Measuring

Quality of Service

Three Dimensional Modelling of Customer Satisfaction, Retention

and Loyalty for Measuring Quality of Service have discussed that the
aim of this thesis is to propose a model that explains the relationship
between customer satisfaction, retention and loyalty based on service
quality attributes. The three elements of satisfaction, retention and
loyalty towards products represent the on-going challenges for the
corporate financial performance.
Customer behaviour analysis (known as business intelligence or
customer relationship management or customer experience
management) has become a major factor in the corporate decision
making and strategic planning processes.
Prevailing logic dictates that by improving service attributes one
should expect better customer satisfaction levels. Consequently, the
improved satisfaction levels should increase the probability of
customer retention and degree of loyalty. Substantial research work
has been dedicated to explain the importance of customer behaviour
measurement for industry. However, there is little evidence that there
has been an overall integrating empirical research that relates the three
elements of satisfaction, retention and loyalty with respect to service
quality attributes. Empirical data collected from the UK mobile
telecommunication for this research shows that such an objective
model that is capable of capturing this three dimensional relationship
will 42 contribute towards more robust decision making and better
strategic planning.
The proposed thesis extracts the data about key service attributes from
a combination of literature review, surveys, and interviews from the
UK mobile telecommunication industry. Responses were analysed
using multiple regression, regression analysis with dummy variables,
logistic regression, logistic regression with dummy variables and
structural equation modelling (SEM) to test variables and their
interrelationships.
This study makes a step forward and contributes to the body of
knowledge as it:
(a) Highlights the role of service attribute performance towards
customer satisfaction, consequently identifies attributes that affect
satisfaction and dissatisfaction of customers,
(b) Maps the relationship between attribute importance and attribute
performance,
(c) Optimize resource allocation process using importance-
performance analysis (IPA),
(d) Classifies customers with respect to the role and length of
relationship they have with the Abstract, Acknowledgments and
Comments company (switching probability),
(e) Describes the interrelationship between customer satisfaction,
retention and loyalty.
The novelty of the research lies in:
(a) establishment of a framework that links service attributes
performance to customer satisfaction and then to customer future
intentions (customer retention and customer loyalty),
(b) Provision of a model that could assist key decision makers in
prudent usage of resources for maximum profitability. This
dissertation presents a novel approach methodology and modelling
construct for customer behaviour analysis. For proof of concept it
presents a case study in the mobile telecommunication industry. It is
worth noting that in this research work the Customer Retention is
interpreted as probability of switching between service providers.
Customer Loyalty is interpreted as referral (word-of-mouth) activity
by existing customers.
 References

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