The Effectiveness of Switching Barrier on Customer Loyalty Mediated with Customer Satisfaction: Telecommunication Industry, Batticaloa

Abstract

The mobile telecommunications service providers face technical hitches to meet customer loyalty, to increase the market share. Therefore, service providers should be conscious of the factors affecting customer loyalty in building strong relationships. This study aims to investigate the effectiveness of switching barrier on customer loyalty with regards to customer satisfaction in mobile telecommunication service providers. The objective of this study is to identify the level, relationship and impact of switching barrier on customer satisfaction and loyalty. Finally, the study examines the mediating role of satisfaction. This study was based on the customer’s perspectives and their experiences with mobile telecommunications service in Batticaloa. Data were obtained from the sample 200 customers, and stratified random sampling was used. The descriptive statistics, correlation and regression analysis were used to analyse the data. The results revealed that the switching barrier has a significant impact on loyalty and satisfaction. Same as satisfaction has significant impact on loyalty. And also, switching barrier impact on customer loyalty significantly through customer satisfaction. The study contributes to existing theoretical and practical knowledge by providing evidence regarding the relationships between switching barrier on customer loyalty, and customer satisfaction. The telecommunication service providers, in Sri Lanka; it is growing rapidly with high competition between the service providers. Hence, this research has the potential to contribute to the overall telecommunication service providers in terms of how to maintain long-term relationships between the service providers and their customers through the strategies of switching barrier.