Naiketing Thesis

"A stuuy on factois influencing customei loyalty in
Pakistan Telecommunication"




Submitteu to:

Ni. Shafqat 0llah

Submitteu By:

Shabbii Ahmeu

Submlsslon uaLeť

ŶŹ
th
Sep. ŶŴŵŵ



APPROVAL SHEET



This research study has been examined and passed Ior partial IulIillment oI the
requirements Ior the degree oI Masters in Business Administration (Marketing). This
study is approved by the examiner on oral examination with the grade oI ¸¸¸¸¸¸¸¸¸¸.












¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸
ShaIqat Ullah
Examiner
APPROVAL SHEET



This research is entitled 'A study on Iactors inIluencing customer loyalty in Pakistan
Telecommunication.¨ Prepared by Shabbir Ahmed is accepted in partial IulIillment Ior the
award oI Master`s degree oI Business Administration (Marketing).














¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸¸
ShaIqat Ullah
Examiner


LETTER OF TRANSMITTAL

To,
Mr. ShaIqat Ullah
Course: Final marketing thesis
25
th
Sep., 2011

Dear Sir,
Enclosed is a copy oI 'A study on Iactors inIluencing customer loyalty in Pakistan
Telecommunication.¨ This report is about the research made during the 4 months oI time
period and eIIort, based on the need oI the study, research methodology, Iindings,
limitations and Iuture need.
This research gives useIul inIormation regarding the Iactors involved in customer
loyalty in Pakistan telecom. Although this research is made Ior academic purpose, but the
importance oI the study cannot be ignored.
I hope that this report is acceptable to the Newports Institute oI Communication
and Economics and to you, while keeping in view the scope oI my limited knowledge.
The project was very interesting and challenging, this was throughout a learning
experience. At the end say thank to you Ior giving me the opportunity to extend my
knowledge and ability to look things in a diIIerent way.


Yours sincerely
Shabbir Ahmed


TABLE OF CONTENT
Serial
No
Description Page No
1. Acknowledgement
2. Abstract
3. List oI table
4. List oI Iigures
5. Chapter 1 : Introduction
1.1 Overview
1.2 Problem Statement 1
1.3 Hypothesis
1.4 Outline oI the studies
1.5 DeIinitions 1
6. Chapter 2: Literature Review 1
7. Chapter 3: Research Method 2
3.1 Method oI Data collection 2
3.2 Sampling Technique 2
3.3 Sample Size 2
3.4 Instrument oI Data Collection 2
3.5 Statistical Technique 2
8. Chapter 4: Results 2
4.1 Findings and interpretation oI results 2
4.2 Hypothesis assessment Summary 2
9. Chapter 5: Discussion, Implications, Future Results, &
Conclusions
3

10. ReIerences 3
11. Appendix 3











ACKNOWLEDGMENTS


This dissertation would not have been possible without the guidance and the help oI my
teacher sir ShaIqatUllah, who one way or another contributed and extended their valuable
assistance in the preparation and completion oI this study.
Lastly, I oIIer my regards and blessings to all oI those who supported me in any respect
during the completion oI the project.


















ABSTRACT

Telecom services in Pakistan are clearly changing and growing. Due to rapid development
oI communication technologies in past Iew years and changing demand oI customers, the
paradigm oI mobile telecommunication services is now moving Irom simple voice-
centered communication to a combination oI high speed data communication and
multimedia. With all this, the perceptions, believes and anticipations are changing. It is
very important to identiIy all oI these things.
Secondly the service provider in Pakistan are working in a very tough competition.
All oI the service provider are providing more or less equal services. So it is very critical
to know the exact best service provider. But still there are some Iactors that can make a
service provider the best in the market. in this research paper total eight oI the Iactors were
studied, however the all oI the variables were studied beIore, although not in Pakistan.
Moreover all these variables were not studied in any single research in Pakistan or may
not be disclosed.
Latter in this research, relationship oI the service quality, corporate image,
perceived value and trust with the customer loyalty is discussed, where limitations and
implications are discussed.



















- CHAPTER
INTRODUCTION











OVERVIEW
Pakistani mobile telecommunication services are clearly exhibiting signs oI an
abrupt industry paradigm change and symptoms oI a market in transition. Due to rapid
development oI inIormation and communication technologies in past years and increasing
demand Irom customers, the paradigm oI mobile telecommunication services is now
moving Irom simple voice-centered communication to a combination oI high speed data
communication and multimedia. Some other Iactors such as the growth oI the wireless
internet, and the use oI diIIerent packages in corporate world all contribute to emphasize
the appearance oI aa transition period in the mobile telecommunication services market.
Also, a stagnation rate oI diIIusion, indicated by a Iall in the rate oI increase in subscriber
numbers, suggests that the market may have now reached maturity.
II we talk about the Iew past years, telecommunication in Pakistan describes
the overall environment Ior the growing mobile telecommunications, telephone, and
internet markets. In 2008 Pakistan was the world`s thirst Iastest growing
telecommunications market. Pakistan`s telecom inIrastructure is improving with Ioreign
and domestic investments into Iixed-line and mobile networks; Iiber systems are being
constructed throughout the country to aid in network growth.
Mobile Telecommunications:
In January 2004 the Ministry oI IT issued its Mobile Cellular Policy with
objectives to:
1. Promote eIIicient use oI radio spectrum;
2. Increase choice Ior customer oI cellular services at competitive and
aIIordable prices;
3. Encourage private investment in the cellular mobile operators;
4. Recognize oI the right and obligations oI mobile cellular operators;
5. Provide Ior Iair competitions among mobile and Iixed line operators;
and
6. Provide and eIIective and well deIined regulatory regime that is
consistent with international best practices.
The mobile telecommunications sector is seeing very large year-to-year growth in
Pakistan. Approximately 90 percent oI Pakistanis live within areas that have cell phone
coverage and more than halI oI all Pakistanis have access to a cell phone. With 108
million mobile subscribers in April 2011, Pakistan has the highest mobile penetration rate
in the South Asian region.
According to the Pakistan Telecommunication Authority (PTA), Mobilink
continues to lead the market with 32.9 million subscribers, Iollowed by Telenor with 26.1
million, UIone with 20.4 million, Warid Telecom with 18.1 million, and Zong with 10.3
million, according to Telecom Indicators; by PTA 3 June 2011. All telecom companies
are working to broaden their networks in the Azad Jammu and Kashmir and Northern
Areas, which were largely ignored until recently. Five oI the seven Agencies oI the tribal
areas have mobile coverage.
- PROBLEM STATEMENT
BrieI Overview
The change oI paradigm and the symptoms oI a market in transition are driving
the industry`s restructuring eIIorts and intensiIying completions between companies.
Pakistani mobile carriers are aware oI importance oI a customer-oriented business strategy
as a condition Ior sustaining their competitive edge and maintain a stable proIit level, and
oII course Ior their survival. As the numbers oI subscribers has reached its almost
saturation level, creating new and securing new customer is not only diIIicult but also
costly in terms oI marketing. Hence, it is becoming an industry-wide belieI that the best
core marketing strategy Ior the Iuture is to try to retain existing customers by heightening
customer loyalty and customer value.
Purpose oI Research
Previous studies tell that, the companies which grow with the time passing are developing
and increasing customer loyalty (Lee & Cunningham, 2001; Reichheld, 1996). This paper
analyses the antecedents oI customer loyalty and the structural relationship between these
Iactors in the Pakistani mobile telecommunication services industry. As researcher`s
knowledge no such previous research was made in Pakistan telecom, or may be made but
was not disclosed. It was very interesting Ior researcher to study the customer loyalty
Iactors in Pakistan telecom because there is very tough competition between the service
providers. So in such tight environment customers are Iree to make a choice. Study was
made to know those Iactors, which are considered by the customer in such an
environment.
Graphical Model











HYPOTHESIS
According to Andreassen (1999), corporate image has signiIicant positive impact on
customer loyalty.
RQ1: What is the impact of corporate image on customer loyalty?
H: Corporate image has significant impact on customer loyalty
Trust is said to be the believe that Iirm is IulIilling the commitments. There is a
strong eIIect oI trust on customer loyalty in telecommunication sector (Corbitt,
Thanasankit, & Yi, 2003)
RQ2 What is the impact of trust on customer loyalty?
H: Trust has significant impact on customer loyalty
all CuallLy 1rusL
value Added
Servlces
onvenlence
ln Þrocedures
orporaLe
lmage
usLomer
SupporL
Þercelved
value
Þrlclng
SLrucLure
usLomer LoyalLy
According to Lin and Wang (2006) there is a positive relationship in perceived
value and customer loyalty.
RQ3: What is the impact of perceived value on customer loyalty?
H: Perceived value has significant effect on customer loyalty
Finally Lee and Ulgado (1997) Iind out that, consistent quality aIIect U.S. consumer
loyalty. Service quality has been measured by call quality, pricing structure, value-added
services, convenience in procedures, and customer support (Kim 2000; Gerpott et al.,
2001; Lee, Lee, &Freick, 2001). In the previous researches it is proved that service quality
is the antecedent oI customer satisIaction (Bedi, 2010; Lee and Hwan, 2005). According
to Yee (2010) has a positive inIluence on customer satisIaction.,
As already stated that service quality is measure oI call quality, pricing structure,
value added services, convenience in procedures and customer support, that is why
Iollowing are the supporting hypotheses oI service quality;
RQ4: What is the impact of call quality, pricing structure, value-added services,
convenience in procedure and customer support on customer loyalty?
H4: Call quality has significant impact on customer satisfaction
H: Pricing structure has positive impact on customer satisfaction
H6: Value added services have significant impact on customer satisfaction
H7: Convenience in procedures has significant impact on customer satisfaction
H8: Customer support has significant impact on customer satisfaction

OUTLINE OF THE STUDY
Chapter #
In chapter 1 describes the brieI history oI telecommunication in Pakistan, its major service
providers and Pakistan Telecommunication Authority rules in short. Purpose oI the study
is also discussed, where the main contents oI research are also discussed. This chapter also
covers the research hypothesis, supported by the ample reIerences oI diIIerent authors.
Key terms and deIinitions are also described in this chapter.


Chapter #
In depth review oI the literature is described in chapter 2. Research is based on the service
quality, Switching barriers, customer satisIaction and customer loyalty. This chapter
includes the in depth overview oI the above given variables. Variables are taken Irom the
journals which were previously proved by the other researchers, supporting tags are given
at each variable support.

Chapter #
Chapter 3 includes methods used Ior data collection and reason to use them. What are the
sampling techniques used and why they are used? This chapter also deIines sample size
taken Ior research, instruments used Ior data collection, research model development and
them the statistical technique used in the research, which is Chai-square technique. All the
methods and techniques are supported by the reIerences and solid reasons, which were
accepted in the previous research studies.
Chapter #4
Chapter 4 deIines the research results and their interpretations. The overall research
hypotheses and their results summary is given, which gives the clear understanding oI
research purpose, hypothesis and their results, proving rejected or accepted and Iurther
interpretation oI the research hypothesis.
Chapter #
Chapter 5 is closing chapter, where research is discussed brieIly implications oI the
reaseach are also discussed in the chapter. Need oI Iuture research and its importance is
also given.
- DEFINITIONS
Keywords: ustomer loyalty, value, Pakistan mobile telecom service, service quality,
corporate image.
Customer Loyalty
The term customer loyalty is used to deIine the behavior oI repeat customers, as
well as those who oIIer good ratings, reviews or testimonials. Loyal customers do the
Iavorable word oI mouth publicity regarding a product or service. These customers are the
assets Ior the company. In this report the loyalty oI customers is measured by the time
they are with the existing service provider. It means they are Iully loyal iI they are using
their current network Ior more than Iour years.
Value
Value is marketing terminology, which means that a consumer makes what value
oI a product or service in mental estimation. It can be said to be the relationship between
the perceived beneIits against the perceived costs oI receiving it.Value is totals beneIits
perceived per unit cost.

Pakistan Mobile Telecom Service
Although mobile voice, wireless data, wimax, wireless local loop and VOIP are
included in Pakistan Telecommunication providers. Here in this research, only mobile
voice data providers are meant. Mobile service providers are Mobilink, UIone, Telenor,
Warid and Zong. These operators are operating in whole Pakistan, but the research is only
conducted in the city Karachi, that is why this research only tells the customer loyalty,
switching barrier and customer satisIaction oI Karachi city. Both prepaid and postpaid
customers are taken in the research.
Service Quality
Service quality is a comparison oI customer expectations with perIormance oI
service delivered. It is the measure oI how well delivered service matches the buyer`s
expectations. In telecom the service quality ingredients are call quality, pricing structure,
mobile devices, value-added services, convenience in procedures, and customer support.
Corporate Image
Corporate image is the perception in consumer`s mind about the corporate entity
behind a brand. For example Unilever, behind its every brand has a good impact on
consumers due to its credibility in the market. Positive corporate images can greatly
increase the speed oI new product adoption because oI credibility oI the manuIacturer`s
claims.











CHAPTER #
LITERATURE REVIEW










LITERATURE REVIEW
In earlier studies on movile telecommunication services, service quality ahs been
measured by call quality, pricing structure, mobile devices, value-added services,
convenience in procedures, and customer support (Kim 2000; Gerpott et al., 2001; Lee,
Lee, &Freick, 2001). As the earlier researches revealed that service quality is a kind oI
attitude that is Iormed by the diIIerence between customer`s expectations (Parasuraman,
Zeithaml, & Mitchell, 1990). In this context call quality there is the diIIerence between the
pricing structure oI diIIerent service providers, although the value added services,
procedures and customer support are more or like same. According to the previous
researches made in telecommunication suggest that service quality is not only the Iactor
inIluencing the customer loyalty, as in German mobile communication consumers Iind
service price, phone number portability and beneIit most eIIective loyalty (Grepott, 2001).
Korean study tells that switching costs, brand image and perceived service quality are the
ingredients oI customer loyalty. So there is diIIerence in perceptions oI people due to
diIIerent strengths oI relationship across cultures.
The number oI service quality dimensions varies Irom industry to industry
(Asubonteng, McCleary, & Swan, 1996).According to Btner and Hubert (1994) service
quality is customer`s evaluation judgment, where the degree oI superiority oI perIormance
with respect to the product.
This report choses the conceptualization oI Kims (2000), Grepott et al., (2001), Lee
et al., (2001), where service quality is measured by call quality, pricing structure, value
added services, convenience in procedures and customer support.

Value
According to Kims, Park and Jeong (2004) it is very important to develop maketing
strategies that extend proIitability by retaining the existing customers through customer
loyalty and value. Previous researches have revealed that only the high service quality is
not the reason to buy it (Olshavsky, 1985). That is why this study aims to determine the
value perception oI the customers, and to give understanding to service providers. By this
study we will come to know that, how much important is the value perception, and how to
manage the value in customers.
According to Bob Weybright (2004) 'one must look careIully at their product and
service. Marketers need to assess the competitive climate in the region, country, and world
to determine how it might aIIect the value oI what they have to oIIer; learn to identiIy
what the purchaser needs to see or experience that supports their sense oI value while
satisIying the needs that drove the purchase initially; and Iinally, apply what is learned
when making a decision as to where products or services are to be sold, who. to sell to,
and at what price¨
Trust
Many oI the studies Iocused the connection between loyalty and trust.Morgannad
Hunt deIine trust as one`s conIidence in an exchange oI value. According to Reichheld
and ScheIter (2000) customer trust is the primary Iactor Ior customer commitment and
loyalty.
Concept oI trust Irom previous researches is in various oI ways. In e commerce
trusting belieIs, according to Mayer et al. (1995) are perceptions oI attributes oI e
commerce, including ability, integrity and knowledge. In telecom trust is trustworthiness
including extent to which service is provided, ability to IulIill the commitments.
Corporate Image
Corporate image is one oI the important Iactors in service evaluation (Bitner, 1991;
Gronroos, 1988). Corporate image also aIIects customer loyalty. In service sector
Andreassen and Lindertad (1998) examined the role oI corporate image in Iormation oI
customer loyalty. The study oI Andreasen and Lindestad was replicated by Hart and
Rosenberger (2004) in Australia.
Corporate image reIlects the company`s overall reputation and prestige. According
to Aydin and Ozer (2005) corporate image emerges Irom a customer`s net consumption
experience and also the perceived service quality aIIect corporate image. There is a link
between corporate image and customer loyalty (Erdem and Swait, 2004).


Customer Loyalty
According to Oliver (1999) loyalty is a deeply held commitment to rebuy, reuse a
preIerred product or service consistently in Iuture. One discovery by Xerox changed the
conventional wisdom, because the Xerox totally satisIied customer were six times more
likely to repurchase Xerox products over the next 18 months than satisIied customers.
Customers who have Ireedom to choices is not enough to make them loyal. The only way
is loyal customers are totally satisIied customers (Frederik F. Reichheld and W. Earl
Sasser, Jr., HBR, 1990). There are three approaches oI customer loyalty, the behavioral
approach, the attitudinal approach and the integrated approach (Oh, 1995).
In mobile communication service sector, it would be important to develop
marketing strategies that promote proIitability by retaining existing customers through
customer loyalty and value (Kim, Park and Jeong, 2004).
Many researches Iind that high service quality relatesrelatively high customer
satisIaction (Cronin et al, 2000) which Iurther leads to loyalty (Ennew and Binks, 1999;
Lai et al, 2009).



















Chapter #
Research Methods













3.1- METHOD OF DATA COLLECTION
Structured questionnaire was used to collect the data, which was comprised oI Iire scales
taken Irom the previous researches. For all the variables the author have used 5 scale point
Likert scale. The Likert scale started Irom Totally disagree to Totally Agree.

3.2- SAMPLING TECHNIQUE
Convenient Sampling
Author is conducting the academic research, where the research like a proIessionals do, is
very diIIicult. That is why the convenient sampling technique was adopted. But researcher
is intended to collect data Irom every required area, so that the signiIicance oI the study
cannot be denied. Sample was taken Irom the Karachi city, through email, and through
getting hard copies Iilled.
3.3- SAMPLE SIZE
Keeping the variables in view, which were 9 in total, almost 200 research questionnaires
were distributed, only 102 questionnaires were collected or only these were valid Ior our
research. Response was 51°. Male respondents were 73.5 °, while Iemale respondents
were 26.5 °. Breakup oI percentages oI respondents with respect to service provider is
10.85, 30.4°, 35.3°, 11.8°, 11.8° Ior Telenor, Mobilink, UIone, Warid and Zong
respectively.
3.4- INSTRUMENT FOR DATA COLLECTION
Questionnaire is a research instrument consists a series oI questions Ior gathering required
inIormation Irom respondents. Francis Galton was Iirst one who used the questionnaire.
Structured questionnaire is used in this research paper as research instrument. The
questionnaire was covering 9 variables; service quality- call quality, convenience in
procedure, pricing structure, value added services, customer support, perceived value,
corporate image and trust. One question Irom each oI the variable was chosen, so the
percentage oI variables in questionnaire was equal. Five pontLikert scale was used with
close ended options; rating Irom 1 to 5 point having option Totally disagree to Totally
Agree.
3.5- STATISTICAL TECHNIQUE
Chi Square technique
Pearson`s chi-square is the best tools Ior assessing the comparison tests oI test oI
independence, which assess whether paired observations are independent oI each other.



























CHAPTER 4:
RESULTS












4.1- FINDINGS AND INTERPRETATION OF RESULTS
In this research nine variables are included, in which customer loyalty is only
dependent variable, and it was assumed that customer loyalty depends upon all oI the eight
variables. Hypothesis against each variable is tested and discussed below.
Importance of call quality in customer loyalty
Cross tabulation between the two variables is given below;

This table shows the Irequencies oI each choice with respect to the period oI using the
existing network. Total disagreement was 1.9 °, 9 ° people were partially disagreeing.
People who were in midway were 15.69 °. Partial agreement was 27.45° while strong
agreement was 46.08°. II we take a look on results, call quality is an important Iactor
among telecommunication users and its importance cannot be ignored. II we talk about the
Call Quality, all network providers are provider more or less equal coverage as research
was conducted in Karachi. All providers have more or less equal network coverage in
Karachi.





CaII QuaIity * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total
Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years









C
a
I
I

Q
u
a
I
i
t
y

$trongly disagree 0 0 0 1 1 2
Partially Disagree 0 2 4 0 3 9
Uncertain 0 4 2 5 5 16
Partially Agree 1 1 7 6 13 28
$trongly Agree 1 2 8 7 29 47
Total 2 9 21 19 51 102

Importance of pricing structure in customer loyalty
!ricing structure * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
!
r
i
c
i
n
g

S
t
r
u
c
t
u
r
e

Partially Disagree 0 1 1 0 2 4
Uncertain 0 2 5 2 7 16
Partially Agree 2 5 11 6 10 34
$trongly Agree 0 1 4 11 32 48
Total 2 9 21 19 51 102

Strongly agreed respondents are 47 °, Partially Agreed 33.33°, uncertain are 15.6° and
a very low percentage oI Partially Disagreed respondents are. This shows that the large
percentage oI respondents wants a reasonable pricing structure. Due to competition in
Pakistan Telecommunication companies, the entire service providers are working on the
very low proIits. Above all it is very important Iactor in Pakistan telecommunication.

Importance of value added service in customer loyalty

'aIue added services * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
'
a
I
u
e

a
d
d
e
d

s
e
r
v
i
c
e
s

Partially Disagree 0 1 0 1 1 3
Uncertain 0 4 9 4 5 22
Partially Agree 1 3 8 9 13 34
$trongly Agree 1 1 4 5 32 43
Total 2 9 21 19 51 102

It is seen that respondents who are using their current network Irom more than 4 years and
are Strongly agreed are 32, while Partially Agreed respondents are 13, this large number
oI Strongly Agreed and Partially Agreed respondents lays in the period oI above 4 years,
which show that that it is meant a lot by value added services.

Importance of trust in customer loyalty

%rust of company in mind of customers * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
%
r
u
s
t

Partially Disagree 0 1 0 0 0 1
Uncertain 1 5 3 2 8 19
Partially Agree 1 1 9 8 11 30
$trongly Agree 0 2 9 9 32 52
Total 2 9 21 19 51 102

50.98° respondents are strongly Agree that they trust their service provider, Partially
Agree were 29.4°, uncertain response was 18.63°. Above table show that a large pool oI
respondents lie in quadrant where people are using their current network above Iour years.
The table shows that when consumers have trust on a service provider, they continue the
use oI that service provider.










Convenience in Procedures verses Customer Loyalty

Convenience in procedures * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
C
o
n
v
e
n
i
e
n
c
e

i
n

p
r
o
c
e
d
u
r
e
s

$trongly disagree 0 0 0 1 0 1
Partially Disagree 1 1 0 1 4 7
Uncertain 0 3 2 0 10 15
Partially Agree 0 1 10 8 13 32
$trongly Agree 1 4 9 9 24 47
Total 2 9 21 19 51 102

The above table shows that the Strongly Agree respondents are 46.8° out oI 102
respondents, but it can be observed that large percentage oI response was in terms oI
Partially Agree and Uncertain, which is 31.37° and 14.71° respectively, which lies in
column oI respondents using mobile more than 4 years. It means that people who are
using current network more than 4 years may also not be continuing due to convenience in
procedure.










Importance of customer service in customer loyalty

Customer service and support * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
C
u
s
t
o
m
e
r

s
e
r
v
i
c
e

a
n
d

s
u
p
p
o
r
t

Partially Disagree 1 0 2 1 1 5
Uncertain 1 4 7 5 4 21
Partially Agree 0 2 6 6 25 39
$trongly Agree 0 3 6 7 21 37
Total 2 9 21 19 51 102

In the above table Strongly Agree respondents are 36.27° while 38.24° respondents are
Partially Agree. So the ratio oI agreed response is very high which is almost 75°. This
table shows the importance oI customer support. It is direct interaction with the service
provider. So people take into account and continue or discontinue using the service
provider.

Importance of perceived value in customer loyalty

!erceived 'aIue * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

Above 6
months
Above 1
year
Above 2
years
Above 3
years
Above 4
years
!
e
r
c
e
i
v
e
d

'
a
I
u
e

Partially Disagree 0 0 0 0 2 2
Uncertain 0 1 5 1 6 13
Partially Agree 2 7 10 12 11 42
$trongly Agree 0 1 6 6 32 45
Total 2 9 21 19 51 102

In the above table most oI the respondents are Strongly Agree 44.12° and Partially Agree
41.18°. This large number oI responses show that value is very important, which is
perceived by customers.
Importance of corporate image in customer loyalty

Corporate Image * Customer IoyaIty CrosstabuIation
Count

Customer loyalty
Total

above 6
months
above 1
year
above 2
years
above 3
years
above 4
years
C
o
r
p
o
r
a
t
e

I
m
a
g
e

Uncertain 1 3 3 1 3 11
Partially Agree 0 5 13 11 13 42
$trongly Agree 1 1 5 7 35 49
Total 2 9 21 19 51 102

In the above table strong agreement was seen. Company image is very important Ior the
customer and hence they are inIluenced by the company reputation, so that the Strongly
Agree respondents were 48° while Partially Agree was 41.1°.














4.2- HYPOTHESIS ASSESSMENT SUMMARY
Every hypothesis is tested against the dependent variable Customer Loyalty. Using
the Chi-Square, some results were obtained which are given in detail one by one,
According to our Iirst hypothesis;
H: Corporate image has significant impact on customer loyalty


1abte 1.2.1
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 26.930
a
8 .001
Likelihood Ratio 26.463 8 .001
Linear-by-Linear Association 17.692 1 .000
N of Valid Cases 102

a. 8 cells (53.3%) have expected count less than 5. The minimum expected
count is .22.
In the above table, taking Pearson Chi-Square results, the sig. value is 0.001 ·0.05 ,which
show that the null hypotheses is rejected which states that there is no relationship between
Corporate Image and Customer Loyalty. Actually there is positive relationship between
the Corporate Image and Customer Loyalty.
This result shows that consumer is conscious about the overall reputation oI the service
provider, and this perception becomes strong as time passes between the relationship oI
consumer and service provider. Hence our hypothesis H1 is accepted;
Corporate image has signiIicant impact on customer loyalty.







H: Trust has significant impact on customer loyalty

1abte 1.2.2
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 27.994
a
12 .006
Likelihood Ratio 21.461 12 .044
Linear-by-Linear Association 10.435 1 .001
N of Valid Cases 102

a. 13 cells (65.0%) have expected count less than 5. The minimum expected
count is .02.
Table 4.2.2 shows that the sig. value is 0.006 ·0.05, which show that null hypothesis is
rejected which shows that there is no relationship between Trust and Customer Loyalty, so
that our hypothesis H2 is accepted. This test shows that customer loyalty is much aIIected
by trust. Consumer will remain loyal iI trust oI company has developed in his mind. In
telecommunication trust is meant by the commitments oI the services provider those may
be committed call rates, time or packets. So the telecommunication companies operating
in Karachi should consider this Iactor and should build trust among their customers.
Finally our hypothesis H2 is accepted;
Trust has signiIicant impact on customer loyalty.
H: Perceived value has significant impact on customer loyalty

1abte 1.2.²
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 25.919
a
12 .011
Likelihood Ratio 27.978 12 .006
Linear-by-Linear Association 5.163 1 .023
N of Valid Cases 102

a. 13 cells (65.0%) have expected count less than 5. The minimum
expected count is .04.
Using Pearson Chi-Square we obtained the sig. value 0.011 · 0.05 which means that the
null hypothesis is rejected which is, there is no relationship between Perceived Value and
Customer Loyalty, so that our hypothesis H3 is accepted which states that there is
signiIicant impact oI perceived value on customer loyalty.
This is very important Iactor which enables a customer to diIIerentiate between two
services or providers. Value delivery is very important part in service delivery. Besides the
core competencies, it is very necessary to diIIerentiate on the basis oI value. According to
the results our hypothesis is;
Perceived value has signiIicant impact on customer loyalty.

H4: Call quality has significant impact on customer loyalty

1abte 1.2.1
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 21.165
a
16 .172
Likelihood Ratio 21.333 16 .166
Linear-by-Linear Association 4.517 1 .034
N of Valid Cases 102

a. 18 cells (72.0%) have expected count less than 5. The minimum
expected count is .04.

In the above table 4.2.4, using the Pearson Chi-Square the sig. value is 0.172 ~ 0.05,
which shows that null hypotheses, is accepted, which states that there is no relationship
between the two variables Call Quality and Customer Loyalty. So that our hypothesis is
rejected and there is no relationship between Call Quality and Customer Loyalty.
II we deeply study this, we come to know that research was conducted in Karachi only,
and in the city every network provider has good service, so people living in Karachi city
may not be able to make judgment on the basis oI call quality. So people will not make
any switch to other network due to call quality, hence the loyalty remains constant. This
thing is only Ior Karachi city and may give diIIerent result iI we conduct a research in any
other areas Ior example villages etc., so our actual hypothesis is;
Call quality has no impact on customer loyalty.
H: Price Structure has significant impact on customer loyalty

1abte 1.2.:
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 23.178
a
12 .026
Likelihood Ratio 25.605 12 .012
Linear-by-Linear Association 8.836 1 .003
N of Valid Cases 102

a. 13 cells (65.0%) have expected count less than 5. The minimum
expected count is .08.

In the table 4.2.5 sig. value is 0.026 which is less than 0.05. In this way null hypothesis is
rejected which states that Price and Customer Loyalty has no relationship. But our
hypothesis is accepted that both oI the variables have impact on each other.
Researcher concluded that price is one oI the Iactors inIluencing customer loyalty
in telecom sector in Karachi. That is the reason that telecom service providers launch
several oI the bundle packages with respect to choice in price.
H6: Value added services have significant impact on customer loyalty
1abte 1.2.ó
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 26.916
a
12 .008
Likelihood Ratio 27.432 12 .007
Linear-by-Linear Association 14.020 1 .000
N of Valid Cases 102

a. 13 cells (65.0%) have expected count less than 5. The minimum
expected count is .06.

In the table 4.2.6 sig. value is 0.008 · 0.05 which shows that the null hypothesis is
rejected and research hypothesis h6 is accepted, which states that there is signiIicant
impact oI Value Added Services on Customer Loyalty.
In every service provision value addition is very necessary. When there is value
addition in services, the customer loyalty increases.
H7: Convenience in procedure has significant impact on customer loyalty

1abte 1.2.¨
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 22.949
a
16 .115
Likelihood Ratio 23.417 16 .103
Linear-by-Linear Association .081 1 .776
N of Valid Cases 102

a. 18 cells (72.0%) have expected count less than 5. The minimum
expected count is .02.

In the above table 4.2.7, sig. value is 0.115 ~ 0.05 which shows null hypothesis is
accepted which states that there is no relationship between Convenience in Procedures and
Customer Loyalty.
Features Ior all the network may be same, so the consumers Ieel diIIiculty to
diIIerentiate between the diIIerent service provider`s procedures. So that the conclusion is;
Convenience in procedures has no impact on customer loyalty.







H8: Customer support has significant impact on customer loyalty

1abte 1.2.º
Chi-Square %ests

Value df
Asymp. $ig. (2-
sided)
Pearson Chi-$6uare 24.954
a
12 .015
Likelihood Ratio 21.651 12 .042
Linear-by-Linear Association 9.723 1 .002
N of Valid Cases 102

a. 13 cells (65.0%) have expected count less than 5. The minimum
expected count is .10.

In the table 4.2.8, sig. value is 0.015 · 0.05, which shows that null hypothesis is rejected
which states that there is no relationship between Customer Support and Customer
Loyalty. In actual there is relationship between the two.
Customer support is the key Iactor to determine the customer loyalty. Usually
people make repurchases iI they Iind aIter sale services better. So our hypothesis is
accepted;
Customer support has signiIicant impact on customer loyalty.
























CHAPTER :
DISCUSSION, IMPLICATIONS,
FUTURE RESULTS & CONCLUSIONS














DISCUSSIONS AND IMPLICATIONS
The present study is notable, because as to the knowledge oI the researcher no such
study has been made by others on antecedents oI customer loyalty in Pakistan telecom, or
may be made but they were not published Ior all. As it is seen that 6 out oI 8 hypotheses
were accepted, so the majority oI the hypotheses are supportive. It can be said that service
quality in combine is the important antecedent oI customer loyalty.
The thing is noticeable that two oI the hypotheses were not supportive in
relationship with customer loyalty (Call quality and convenience in procedures). These
two Iactors were proved having positive impact on customer loyalty in Korea and China,
but in this research this is important that the research was made in Karachi city due to
convenience and call quality is Iound to be almost equal Ior all the networks and that may
be the reason. Secondly the procedures are more or less same Ior changing or subscribing
any package. So people Iind it diIIicult to switch to or remain with the existing service
provider. Service providers have to make it diIIerentiating Ior their customers by
improving their call quality and convenience in procedures.
According to Sharma and Patterson (1999) trust plays an important role in
motivating the customers to remain loyal with the service provider. Although this study
also suggests that the trust is important Iactor because respondents Iound to be much
judgmental in case oI trust. Corporate image also plays a vital role to make customers
loyal with the service provider. DiIIerent people have diIIerent perceptions regarding the
service provider, it is the service provider who makes credibility among consumers.
This study has some limitations. There are other Iactor inIluencing customer
loyalty, apart Irom the Iactors studied above. For example demographic characteristic,
usage patterns and liIe style oI consumers. Future studies could Iocus on examining the
Iactors cited above.





REFERENCES
1. Luarn & Lin. 'A customer loyalty model Ior e-service context¨. Journal oI
Electronic Commerce Research, VOL. 4, NO. 4, 2003.

2. Boohene & Agyapong, 'Analysis oI the antecedents oI customer loyalty oI
telecommunication industry in Ghana: The case oI VodaIone (Ghana)¨
International Business Research Vol. 4, No.1: January 2011.


3. Kim and Lee 'Relationship between corporate image and customer loyalty in
mobile communication services markets.¨ AIrica Journal oI Business Management
Vol. 4(18), pp.4035-4041, 18 December, 2010.

4. Julander & Soderlund, EIIects oI switching barriers on satisIaction, repurchase
intentions and attitudinal loyalty¨ SSE/EFI Working Paper Series in Business
Administration No. 2003:1.


5. Homburg, Koschate and Hoyer 'Do satisIied customers really pay more? A study
oI relationship between customer satisIaction and willingness to pay.¨ Journal oI
Marketing vol., 69 (April 2005), 94-96.

6. Yang and Peterson, 'Customer perceived value, satisIaction, and loyalty: The role
oI switching costs.¨ Psychology & Marketing, Vol. 21(10): &99-822 (October
2004).


7. Storbacka, K. Strandvik, T. and Gronroos, C. (1994) "Managing customer
relationships Ior proIit", International Journal oI Service Industry Management,
vol. 5, no 5, 1994, pp. 21-28.
8. Http://www.en.wikipedia.org

9. http://www.google.com

10. Baloglu, 'Dimensions oI customer loyalty. Separating Iriends Irom well-wishers.¨
Cornell Hotel and Restaurant Administration Quarterly; Feb 2002; 43, 1;
ABI/INFORM Global pg. 47





APPENDIX

Ŵ -eLwork coverage ls very goodŦ
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

2Ŵ ver all servlce l recelve ls valuableŦ
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

3Ŵ 1he servlce provlder's overall repuLaLlon ls very goodŦ
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

4Ŵ varleLy of value added servlces ls avallableŦ
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

3Ŵ All Lhe commlLmenLs of Lhe servlce provlder are LrusLedŦ (1rusL)
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

6Ŵ SubscrlpLlon and changlng Lhe package ls very convenlenLŦ
3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree
7Ŵ usLomer supporL ls very goodŦ

3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree
8Ŵ Þrlce sLrucLure ls very reasonableŦ

3Ŵ 1oLally 4Ŵ ÞarLlally 3 Ŷ uncerLaln 2 Ŷ ÞarLlally Ŵ 1oLally
Agree Agree ulsagree ulsagree

9Ŵ l am uslng Lhe currenL neLwork fromŦ
3Ŵ More Lhan 4Ŵ More Lhan 3 Ŷ More Lhan 2 Ŷ More Lhan Ŷ More Lhan
4 years 3 years 2 years year 6 monLhs