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International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume: 3 | Issue: 4 | May-Jun 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 - 6470
@ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1141
Telecom Industry with Customer Loyalty of Mongolia
Ulziibaatar Dagvadorj1, Tumenbayar Maralbayar2
1Department of Art and Design, Da-Yeh University, Changhua, Taiwan
2Department of Management, The National University of Economics, Changhua, Taiwan
How to cite this paper: Ulziibaatar
Dagvadorj | Tumenbayar Maralbayar
"Telecom Industry with Customer
Loyalty of Mongolia" Published in
International Journal of Trend in
Scientific Research and Development
(ijtsrd), ISSN: 2456-
6470, Volume-3 |
Issue-4, June 2019,
pp.1141-1143, URL:
https://www.ijtsrd.c
om/papers/ijtsrd24
027.pdf
Copyright © 2019 by author(s) and
International Journal of Trend in
Scientific Research and Development
Journal. This is an Open Access article
distributed under
the terms of the
Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/
by/4.0)
ABSTRACT
This report examines the main influences on customer loyalty (CL) in a study
framework where CL is the dependent variable and customer satisfaction (CS),
perceived price, quality of service (SQ) and trust are independent variables.The
study also tests the hypotheses in which there is a moderate relationship
between SQ and CS. The research uses several statistical techniques, such as
reliability, factor which and regression analysis. The epistemology of the study
was qualitative and involved 170 Mongoliancitizens through asurvey conducted
by a questionnaire and a factorial analysis was applied to confirm the results.
The increase in the customer's belief of the reasonableness of the price also
tends to increase the impact of the SQ on CS.
Keywords: Customer loyalty, customer satisfaction, service quality, telecom
industry
1. INTRODUCTION
The ability to attract the right target market, making them buy/consume the
product regularly and in copious quantities and advocatingfortheproduct which
allows more customers to move from the substitute product to their product is
called Customer loyalty (CL). It is often described as the abilitytogeneraterepeat
orders from customers and ensure good ratings and reviews. However, the term
is not limited to this, since it is a continuous focus, or a program managed by the
company aimed at keeping its customers happy.
Customer satisfaction (CS) has often been considered an
important determinant of loyalty. CS is a general attitude
based on experience after customers buy a product or use a
service [1]. Satisfaction is the evaluation of theexperience of
interacting with a service provider so far and is used by
clients to predict future experiences [2]. Satisfaction is a
broad feeling that is affected by the qualityof theserviceand
the product, its price, and other contextual and personal
factors [3].
CL is one of the most important aspects of marketing
planning since customer retention is more important which
customer absorption [4]. It is a long-term commitment of
existing customers to repurchase products and services [5].
CL is called a sustainable source for income generation,
while, on the other hand, loyal customers are considered the
best people for the commercialization of products and
services [6].
Research conducted on the telecom industry (TI) showed
that the SQ affects CS [7-9]. Therefore, the quality of the
service is a precedent in determining the CSratio.Therefore,
we can propose the following:
H1: SQ has a significant positive impact on CS.
It is possible that we are not wrong to make a conjecture
about the perception of the clients of a reasonable price,
stipulating which in fact it improves theimpactof thequality
of the service on the CS of the client, acting as a moderating
variable. Thus, hypothesis 2 can be proposed as follows:
H2: The perceived price has a significant influence on the
relationship between the SQ and CS.
Satisfaction is the evaluation of the experienceof interacting
with a service provider up to the present moment, and
clients use it to predict future experience [2]. "Satisfaction
positively affects CL" [10]. Although CS may not be the only
reason for people to remain loyal to a specific brand [11], it
is safe to say which satisfied customers are more CL. So we
can propose H3 as:
H3: CS has a significant positive impact on CL.
The client's belief in trust in terms of service is the delivery
of quality services that meet the client's expectations [12].
According to [13], the reputation of companies is the
stability of their activities over time. Trust is of the utmost
importance in the evaluation of the quality of products and
services from the point of view of the clients, since the
reputation originates in the quality of its products and
services [14]. During all the processes, such as the change of
service, the subscription to the service and the customer
service, the client's trust is maintained as a whole, so we can
propose H4 as:
H4: SQ has a significant positive influence on trust.
IJTSRD24027
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1142
According to [15], trust has been abstracted as a precedent
of satisfaction. Between the buyer-seller transaction, trust
acts as a catalyst and in terms of satisfactory exchange, trust
in relationships provides buyers with greater expectations
[16]. To greater CS greater confidence.Sowe can proposeH5
as:
H5: CS has a significant positive influence on trust.
Clients are more loyal to a company that relies on an
organization [17]. Consumer confidenceinaproductismore
likely to develop an encouraging attitude towards it,topaya
higher price for it, to stay true to it and to spread word of
mouth [18] to propose H6 as:
H6: Trust has a significant positive influence on CL.
2. Methodology
The operational definition and the measures of the variables
for approval are represented. A preliminary survey was
organized with researchers and marketing specialists of the
mobile TI and the variables were resolved using the results
of these surveys. This survey used the 5-point Likert scale to
classify the selected variables.
2.1. Sample analysis
In this survey, the sample was selected among the current
users of mobile TI in Mongolian. An initial survey was
administered to review and complement the survey
questions. A total of 170 questionnaires were distributed.
After excluding those with omissions or randomly repeated
responses, there were a total of 140 valid survey responses
among the completed survey forms, excluding those with
omissions or randomly repeated responses. SPSS 12.0 was
used for basic statistical analysis, factor analysis and
reliability analysis. The population for the current study is
internet users in Mongolia.
2.2. Instrument and measures
The survey instrument explains two main purposes of this
research: the first purpose is to examine the link of different
variables towards CL. The second is to gather information
about the different attributes of the respondents that can be
used to understand the variations in different groups.
2.3. Process
The questionnaire was distributed among 170 respondents
who were selected on the basis of the criteria mentioned
above. The purpose of the research and the questions were
explained to the respondents before submitting the
questionnaires to make it easier for them to complete the
questionnaire with the relevant answers. A total of 140
questionnaires were selected, others were discarded due to
incomplete or irrelevant answers. After compiling the
answers, these questionnaires were coded and entered into
the SPSS sheet for later analysis.
2.4. Reliability analysis
In general, Cronbach's alpha values of all the study variables
were above the acceptable and recommended value of 0.50
by [19] and 0.60 by [20]. This shows that all of the 21
elements selected were reliable and valid to measure the
opinions of consumers towards CL.
3. Results
3.1. Profile of the respondents
The following table containsdemographicinformationof the
respondents, such as gender, age, income, status and TL.
Table 1: Profile of respondents
Variable category Frequency with (%)
Gender
Male 48 (37%)
Female 92 (63%)
Age
Below 20
20-30
30-40
Above 40
59 (42.1%)
77 (53%)
4 (3.9%)
1 (0.8%)
3.2. Hypothesis testing
SQ, CS and CL: According to the results of the report, the
quality of the service has a significant positive relationship
with the satisfaction of the client with (β = .643) and (p =
0.000). That means that the SQ contributes more than 64%
to CS. The results of the regression of CS with CL are also
significant with (β = 0.457) and (p = 0.000). The results of
the present study validate H1 and H3.
SQ and CS: The results also show a significant positive
relationship between CS andconfidencewith (β= 0.401)and
(p = 0.00). It means that CS contributes more than 40% to
trust. This validates H4 and H5.
CL: The regression analysis of the study showsthatthereisa
significant positive relationship between trust and CL with
(β = 0.379) and (p = 0.00). According to this result, trust
contributes more than 37% to CL. The results of the study
support H6.
4. Conclusion
This study could be used as a guide for TI in Mongolian to
maintain its focus on the variables that affect CL. The most
valuable relationship explained is CS with CL. The satisfied
customer serves as the best advertisement; This report not
only analyzes the variables that influence CL, but also the
impact of the quality of the service and confidenceinCS.This
report has important implications for practice. With the
advent of increasing competition for greater market share
within Mongolian's TI, unique core competencies and
inimitable competitive advantages are imperative for
success in this highly dynamic sector. One of the best and
deep ways to achieve this is through a convincing marketing
and customer retention strategy.
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1143
Reference
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[6] Anderson, E., &Weitz, B. (1989). Determinants of
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Telecom Industry with Customer Loyalty of Mongolia

  • 1. International Journal of Trend in Scientific Research and Development (IJTSRD) Volume: 3 | Issue: 4 | May-Jun 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 - 6470 @ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1141 Telecom Industry with Customer Loyalty of Mongolia Ulziibaatar Dagvadorj1, Tumenbayar Maralbayar2 1Department of Art and Design, Da-Yeh University, Changhua, Taiwan 2Department of Management, The National University of Economics, Changhua, Taiwan How to cite this paper: Ulziibaatar Dagvadorj | Tumenbayar Maralbayar "Telecom Industry with Customer Loyalty of Mongolia" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456- 6470, Volume-3 | Issue-4, June 2019, pp.1141-1143, URL: https://www.ijtsrd.c om/papers/ijtsrd24 027.pdf Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/ by/4.0) ABSTRACT This report examines the main influences on customer loyalty (CL) in a study framework where CL is the dependent variable and customer satisfaction (CS), perceived price, quality of service (SQ) and trust are independent variables.The study also tests the hypotheses in which there is a moderate relationship between SQ and CS. The research uses several statistical techniques, such as reliability, factor which and regression analysis. The epistemology of the study was qualitative and involved 170 Mongoliancitizens through asurvey conducted by a questionnaire and a factorial analysis was applied to confirm the results. The increase in the customer's belief of the reasonableness of the price also tends to increase the impact of the SQ on CS. Keywords: Customer loyalty, customer satisfaction, service quality, telecom industry 1. INTRODUCTION The ability to attract the right target market, making them buy/consume the product regularly and in copious quantities and advocatingfortheproduct which allows more customers to move from the substitute product to their product is called Customer loyalty (CL). It is often described as the abilitytogeneraterepeat orders from customers and ensure good ratings and reviews. However, the term is not limited to this, since it is a continuous focus, or a program managed by the company aimed at keeping its customers happy. Customer satisfaction (CS) has often been considered an important determinant of loyalty. CS is a general attitude based on experience after customers buy a product or use a service [1]. Satisfaction is the evaluation of theexperience of interacting with a service provider so far and is used by clients to predict future experiences [2]. Satisfaction is a broad feeling that is affected by the qualityof theserviceand the product, its price, and other contextual and personal factors [3]. CL is one of the most important aspects of marketing planning since customer retention is more important which customer absorption [4]. It is a long-term commitment of existing customers to repurchase products and services [5]. CL is called a sustainable source for income generation, while, on the other hand, loyal customers are considered the best people for the commercialization of products and services [6]. Research conducted on the telecom industry (TI) showed that the SQ affects CS [7-9]. Therefore, the quality of the service is a precedent in determining the CSratio.Therefore, we can propose the following: H1: SQ has a significant positive impact on CS. It is possible that we are not wrong to make a conjecture about the perception of the clients of a reasonable price, stipulating which in fact it improves theimpactof thequality of the service on the CS of the client, acting as a moderating variable. Thus, hypothesis 2 can be proposed as follows: H2: The perceived price has a significant influence on the relationship between the SQ and CS. Satisfaction is the evaluation of the experienceof interacting with a service provider up to the present moment, and clients use it to predict future experience [2]. "Satisfaction positively affects CL" [10]. Although CS may not be the only reason for people to remain loyal to a specific brand [11], it is safe to say which satisfied customers are more CL. So we can propose H3 as: H3: CS has a significant positive impact on CL. The client's belief in trust in terms of service is the delivery of quality services that meet the client's expectations [12]. According to [13], the reputation of companies is the stability of their activities over time. Trust is of the utmost importance in the evaluation of the quality of products and services from the point of view of the clients, since the reputation originates in the quality of its products and services [14]. During all the processes, such as the change of service, the subscription to the service and the customer service, the client's trust is maintained as a whole, so we can propose H4 as: H4: SQ has a significant positive influence on trust. IJTSRD24027
  • 2. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1142 According to [15], trust has been abstracted as a precedent of satisfaction. Between the buyer-seller transaction, trust acts as a catalyst and in terms of satisfactory exchange, trust in relationships provides buyers with greater expectations [16]. To greater CS greater confidence.Sowe can proposeH5 as: H5: CS has a significant positive influence on trust. Clients are more loyal to a company that relies on an organization [17]. Consumer confidenceinaproductismore likely to develop an encouraging attitude towards it,topaya higher price for it, to stay true to it and to spread word of mouth [18] to propose H6 as: H6: Trust has a significant positive influence on CL. 2. Methodology The operational definition and the measures of the variables for approval are represented. A preliminary survey was organized with researchers and marketing specialists of the mobile TI and the variables were resolved using the results of these surveys. This survey used the 5-point Likert scale to classify the selected variables. 2.1. Sample analysis In this survey, the sample was selected among the current users of mobile TI in Mongolian. An initial survey was administered to review and complement the survey questions. A total of 170 questionnaires were distributed. After excluding those with omissions or randomly repeated responses, there were a total of 140 valid survey responses among the completed survey forms, excluding those with omissions or randomly repeated responses. SPSS 12.0 was used for basic statistical analysis, factor analysis and reliability analysis. The population for the current study is internet users in Mongolia. 2.2. Instrument and measures The survey instrument explains two main purposes of this research: the first purpose is to examine the link of different variables towards CL. The second is to gather information about the different attributes of the respondents that can be used to understand the variations in different groups. 2.3. Process The questionnaire was distributed among 170 respondents who were selected on the basis of the criteria mentioned above. The purpose of the research and the questions were explained to the respondents before submitting the questionnaires to make it easier for them to complete the questionnaire with the relevant answers. A total of 140 questionnaires were selected, others were discarded due to incomplete or irrelevant answers. After compiling the answers, these questionnaires were coded and entered into the SPSS sheet for later analysis. 2.4. Reliability analysis In general, Cronbach's alpha values of all the study variables were above the acceptable and recommended value of 0.50 by [19] and 0.60 by [20]. This shows that all of the 21 elements selected were reliable and valid to measure the opinions of consumers towards CL. 3. Results 3.1. Profile of the respondents The following table containsdemographicinformationof the respondents, such as gender, age, income, status and TL. Table 1: Profile of respondents Variable category Frequency with (%) Gender Male 48 (37%) Female 92 (63%) Age Below 20 20-30 30-40 Above 40 59 (42.1%) 77 (53%) 4 (3.9%) 1 (0.8%) 3.2. Hypothesis testing SQ, CS and CL: According to the results of the report, the quality of the service has a significant positive relationship with the satisfaction of the client with (β = .643) and (p = 0.000). That means that the SQ contributes more than 64% to CS. The results of the regression of CS with CL are also significant with (β = 0.457) and (p = 0.000). The results of the present study validate H1 and H3. SQ and CS: The results also show a significant positive relationship between CS andconfidencewith (β= 0.401)and (p = 0.00). It means that CS contributes more than 40% to trust. This validates H4 and H5. CL: The regression analysis of the study showsthatthereisa significant positive relationship between trust and CL with (β = 0.379) and (p = 0.00). According to this result, trust contributes more than 37% to CL. The results of the study support H6. 4. Conclusion This study could be used as a guide for TI in Mongolian to maintain its focus on the variables that affect CL. The most valuable relationship explained is CS with CL. The satisfied customer serves as the best advertisement; This report not only analyzes the variables that influence CL, but also the impact of the quality of the service and confidenceinCS.This report has important implications for practice. With the advent of increasing competition for greater market share within Mongolian's TI, unique core competencies and inimitable competitive advantages are imperative for success in this highly dynamic sector. One of the best and deep ways to achieve this is through a convincing marketing and customer retention strategy.
  • 3. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID - IJTSRD24027 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 1143 Reference [1] Fornell, C., 1992. A national customer satisfaction barometer: the Swedish experience. JournalofMarketing56,6–21. [2] Metters, R., King-Metters, K., & Pullman, M. (2003). Successful Service Operations Management. Thomson South-Western. [3] Zeithaml (Ed.), 2002. Review of Marketing (pp. 68- 123). [4] Ba and P. A. Pavlou, "Evidence of the effect of trust building technology in electronic markets: Price premiums and buyer behavior," MIS Quarterly, vol. 26, pp. 243-268, 2002. [5] McDougall, G.H.G., Levesque, T., 2000. Customer satisfaction with services: putting perceived valueinto the equation. Journal of Services Marketing 14 (5), 392–410. [6] Anderson, E., &Weitz, B. (1989). Determinants of continuity in conventional industrial channel dyads. Marketing Science, 8(3), 10–23. [7] Tung, L.L., Tan, P. L.J., Chia, P.J.T., Koh, Y.L., and Yeo, H.L. (2001), "An empirical investigation of virtual communities and trust",Proceedingsof Twenty-Second International Conference on Information Systems, pp. 307- 319. [8] Kuo, Y., Wu, C., & Deng, W. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25, 887-896. [9] Lee, H. S. (2010). Factors influencing customer loyalty of mobile phone service: empirical evidence from Koreans. Journal of Internet Banking and Commerce, 15(2), 1-14. [10] Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2009). Understanding customer satisfaction and loyalty: an empirical study of mobile instant messages in China. International Journal of Information Management, article in press. [11] Gerpott, T. J., Rams, W., & Schindler, A. (2001). Customer retention, loyalty and satisfaction in the German mobile cellular telecommunications market. Telecommunications Policy, 25(4), 249–269. [12] Singh, J.,&Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150–167. [13] Lee, H. S. (2010). Effects of perceived value and service quality on customer satisfaction in the mobile phone service market. INFORMATION: An International Interdisciplinary Journal, 13(4), 1207-1218. [14] Palvia, P. (2009). The role of trust in e-commerce relational exchange: A unified model. Information & Management, 46(4), 213–220. [15] P. M. Doney and P. Cannon, "An Examination of the Nature of Trust in Buyer-Seller Relationships," Journal of Marketing Research, vol. 61, pp. 35-51, 1997. [16] Bowen, J. T. and Shoemaker, S. (1998). Loyalty: A Strategic Commitment? Cornel Hotel and Restaurant Administration Quarterly, 12 25. [17] Garbarino, E., Johnson, M.S., 1999.Thedifferentroles of satisfaction, trust and commitment in customer relationships. Journal of Marketing 63 (April), 70–87. [18] Chaudhuri, A.,Holbrook,M.B.,2001.Thechainofeffectsfrombrandtru stand brand affect to brand performance: the role of brand loyalty. Journal of Marketing 65(2),81–93. [19] Rizwan, M., Usman, A., Hussain, T., Shafiq, A., Rauf, S. & Ayaz, Q., (2013) The Impact of the Perceived Quality, Customer Satisfaction, Brand Trust and Contextual Factors on Brand Loyalty, International Journal of Research in Commerce and Management, 4(3), 83-89 [20] Khokhar, S.Z., F. Hussain, T.M. Qureshi, I. Anjum, A. Samran and R. Arshad, 2011. Only customer satisfaction and customer loyalty is not enough: A study of Pakistan‟s telecom sector. Afr. J. Bus. Manag., 5(24) : 10176-10181.