Antecedents of Customer Satisfaction and Retention: Validating Metrics of Mobile Phone Services through SERVPERF

Abstract

This study sought to develop and test a conceptual model of antecedents of customer satisfaction and customer Retention in mobile service sector.

Purpose - The main purpose of this study is to investigate the suitability of the proposed 31-item SERVPERF model in measuring service quality and its association with customer satisfaction and customer retention in mobile service sector.

Design/methodology/approach - A self-administered questionnaire was developed and distributed to a sample of 145 customers, selected using a convenience sampling technique, visiting three Nokia Care mobile service centers in Chennai.

Findings – The Factor Analysis reduced 31 items to 5 factors (Tangibility, Reliability, Responsiveness, Assurance and Empathy) and it explained 94.794% of variance. The SERVPERF scale applied to the five service quality factors revealed that Assurance is having a highest mean score of SERVPERF score and the mobile service center should concentrate on Tangibility as it has the least SERVPERF mean score. Multiple Linear Regression indicated that service quality is an antecedent and it positively affects customer satisfaction (R²=0.942) and customer retention (R²=0.974). Also, there exists a significant association between customer satisfaction and customer retention (R²=0.965).

Originality/value – This study proposes a 31-item SERVPERF Model which is an extension of 22-item SERVPERF Scale by adding extra five variables - Availability of Spares, Accessibility, Transparency, After Service Complaint and Waiting Time which are critical for mobile service sector.