The Effectiveness of Relational Bonds on Customer Loyalty Mediated with Customer Satisfaction: Telecommunication Industry, Batticaloa

Abstract

Aims: Customer loyalty is considered to be a key component in enhancing the survival of businesses, especially in the situations faced by highly competitive industries. Therefore, Tele communication service providers should be conscious of the factors affecting customer loyalty in building strong relationships. This study aimed to investigate the effectiveness of relational bonds on customer loyalty with regard to customer satisfaction in mobile telecommunication service providers. Study Design: The descriptive survey design and Cross sectional analysis were used to analyse the data. Place and Duration of Study: This study was based on the customer’s perspectives and their experiences with mobile telecommunications service in Batticaloa. Research was conducted from January 2016to November 2016. Methodology: Stratified random sampling was used. The study divided the whole population (25,482) in Manmunai North divisional secretariat area – Batticaloa according to the villages in that DS division, and the sample of 200 families selected from all villages according to its contribution for total population and unit of analysis is family units. The descriptive statistics, correlation and regression analysis were used to analyze the data. Results: The results revealed that strong positive relationship exist between the relational bond and (0.887) loyalty, same as satisfaction (0.892). Further, relational bonds were significantly impacted on (0.786) loyalty and (.795) satisfaction and also relational bond impact on customer loyalty significantly through customer satisfaction (.804). Therefore, it is reasonable to conclude that customer loyalty can be created, reinforced and retained by developing strong relational bonds between customers and service providers. Conclusion: The study contributes to existing theoretical and practical knowledge by providing evidence about the relationships between relational bonds on customer loyalty, and between customer satisfaction. It is potential to maintain long-term relationships between the service providers and their customers