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article · Journal of Management and Strategy

The Mediation Effect of Customer Satisfaction on the Relationship Between Service Quality and Customer Loyalty

202024 citationsOpen accessCape Coast Technical University

In plain language

An examination of telecommunications services in Ghana evaluates how customer satisfaction mediates the relationship between service quality and customer loyalty. Drawing on survey data from 105 respondents analysed through quantitative techniques, the findings indicate that service quality exerts a significant and positive effect on both customer satisfaction and customer loyalty. While the direct connection between satisfaction and loyalty was positive but not statistically significant, satisfaction acts as a partial mediator in the broader link between service quality and loyalty. This demonstrates that service quality cannot serve as the sole predictor of ongoing loyalty. Recommended operational adjustments for telecommunications operators include abandoning rigid interaction scripts, reviewing and analysing customer engagements, delivering multifunctional customer support, and proactively reconnecting with dissatisfied consumers.

Key takeaways

  • Service quality positively and significantly influences both customer satisfaction and customer loyalty in the telecommunications sector.
  • Customer satisfaction serves as a partial mediator in the relationship between service quality and customer loyalty.
  • The direct statistical link between customer satisfaction and customer loyalty was positive but not significant.
  • Telecommunications companies are advised to replace rigid customer interaction scripts with adaptable, multifunctional support systems.

Why it matters

Retaining subscribers is a central operational priority for telecommunications providers in competitive markets. Demonstrating that service quality alone does not guarantee loyalty shows network operators the necessity of managing customer satisfaction. Implementing more flexible customer service practices, monitoring client interactions, and directly addressing the grievances of unhappy users can help companies protect their customer base and improve long-term engagement.

Commercialisation angle

The insights apply directly to customer relationship management teams within telecommunications network operators. The findings suggest near-market operational changes, offering guidance for customer service workflows, agent training, and retention policies. Rather than requiring technical product development, commercial application involves adjusting internal customer care practices, removing script-based call protocols, and implementing structured review processes for customer interactions in telecommunications firms.

AI-generated from the published abstract. Always read the original work before citing.

Abstract

The aim of the study was to investigate customer satisfaction’s mediation role in the relationship between service quality and customer loyalty within Ghana’s telecommunication sector. The report followed an approach to quantitative analysis and questionnaires to collect data from 105 respondents. The statistical analysis was performed using descriptive methods and inferential statistical techniques in IBM SPSS. The mediation analysis was made using Hayes' PROCESS macro model 4. Results of the analysis showed that quality of service is a substantially positive indicator of customer loyalty. It was also evident that Service Quality had a significant and positive influence on customer satisfaction. The direction between the mediator (Customer Satisfaction) and Customer Loyalty was positive but not significant. Again, it became evident that customer satisfaction partially balances the relationship between service quality and customer loyalty. It was evident that telecommunications companies' service quality cannot be the only predictor of customer loyalty, but customer satisfaction should be considered. The study recommends that telecommunications companies in Ghana should lose the script or the strict customer interaction code, review and analyze customer interactions, make multifunctional supports available and reconnect with disgruntled customers.

Research topics

  • Customer Service Quality and Loyalty

Read the original research

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DOI: 10.5430/jms.v11n3p13

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