Customer Satisfaction and Customer Loyalty: A Correlational Study on the Telecommunications Sector in Egypt

Main Author: Wageeh A. Nafei
Format: Article
Bahasa: eng
Terbitan: , 2016
Subjects:
Online Access: https://zenodo.org/record/3533506
Daftar Isi:
  • Purpose: CS and CL is a well known and established concept in several areas like marketing, consumer research, economic psychology, welfare-economics, and economics. The purpose of this study is to examine the relationship between Customer Satisfaction (CS) and Customer Loyalty (CL). Research Design/Methodology: To assess positive CS, refer to (CS Questionnaire, Athanassopoulos, et al, 2001) and CL (CL Questionnaire, Parasuraman, 1996) are used. The data of the study was collected from 250 employees at the Telecommunications sector in Egypt. Out of the 290 questionnaires that were distributed to employees at the Telecommunications sector in Egypt, 250 usable questionnaires were returned, a response rate of 86%. Multiple Regression Analysis (MRA) was used to confirm the research hypotheses. Findings: The research has found that there is significant and positive relationship between CS and CL at the Telecommunications sector in Egypt. CS significantly influenced CL. The finding reveals that CS affects CL. The findings supported the contention that strong relationship exists between CS and CL. However, CS alone cannot achieve the objective of creating a CL base. CS and CL are not directly correlated, particularly in competitive business environments because there is a big difference between CS, which is a passive customer condition, and CL, which is an active or proactive relationship with the organization. The results suggest that improving CS and CL is necessary. The research results also indicate that high levels of CS can build CL. Practical implications: Learning the relationships between CS and CL, retailers can effectively allocate their resources. In addition, by the referring of CL, the Telecommunications sector can attract more customers. Managers are advised to satisfy and better manage their relationships through quality product and service offerings to their customers as a competitive policy in the marketplace. The Telecommunications sector in Egypt is required to offer products/services that meet or surpass consumers’ expectation. The study also reveals interesting implications in CS and CL, useful to both academics and practitioners. Managers will find this research helpful in better understanding these variables and their roles on their companies’ performance. Originality/value: This research dealt with CS in terms of its concept and dimensions, in addition to dealing with the significant role of CL at the Telecommunications sector in Egypt.