Satisfaction, trust and loyalty: investigating the mediating effects of commitment, switching costs and corporate image

Abstract

Purpose

The purpose of this study is to develop an understanding of the factors influencing Indian consumers’ loyalty toward mobile phone service providers by exploring the mediating roles of commitment, corporate image and switching costs on causal relationships between customer satisfaction, trust and loyalty.

Design/methodology/approach

A survey of 855 Indian mobile phone users was carried out to test the hypothesized relationships using structural equation modeling. The results support most of the proposed hypotheses.

Findings

The direct linkages in the model are found to be statistically significant. Of these relationships, corporate image emerged as the strongest determinant of attitudinal loyalty. Calculative commitment and corporate image are found to be partial mediators between satisfaction and attitudinal loyalty. Calculative commitment and switching costs are each proven to be partial mediators between trust and attitudinal loyalty, while corporate image is proved to be a complete mediator.

Research limitations/implications

The study is limited to examining the impact of relationship variables on Indian consumers’ loyalty toward mobile phone companies. Future research can examine the impact of variables such as rate plans, value-added services, billing experience and voice quality on customer loyalty.

Practical implications

The results have implications for retaining customers in highly competitive and maturing Indian mobile telecommunications. The research provides some initial insights into corporate brand building as an important area for mobile phone companies.

Originality/value

This is one of the first studies to test the mediating role of commitment, switching costs and corporate image in the relationship between satisfaction, trust and loyalty in the Indian context.

Citation

Kaur, H. and Soch, H. (2018), "Satisfaction, trust and loyalty: investigating the mediating effects of commitment, switching costs and corporate image", Journal of Asia Business Studies, Vol. 12 No. 4, pp. 361-380. https://doi.org/10.1108/JABS-08-2015-0119