Quality and image: The role of satisfaction and trust as intervening variables on loyalty of customer’s internet service providers

Main Article Content

Teuku Meldi Kesuma
Mukhlis Yunus
M. Ridha Siregar
Abdul Muzammil

Abstract

Many factors can affect customer loyalty that some of them are service quality and corporate image. There are two objectives of this study. First, this study explains service quality and corporate image effects as antecedents for customer satisfaction, trust, and loyalty. Second, this study investigates the role of customer satisfaction and trust in mediating the service quality and corporate image effects on customer loyalty in the context of ISP customers. By using the purposive sampling technique, this study researched 270 ISP customers. The sample of data was statistically analyzed with the Structural Equation Modeling (SEM) and the Confirmatory Factor Analysis (CFA). This study confirmed that customer satisfaction, customer trust, and loyalty were directly affected by service quality and corporate image. Customer satisfaction and customer trust influenced customer loyalty significantly. The role of customer satisfaction and customer trust indirectly in mediating service quality and corporate image effects on customer loyalty was also confirmed by partial mediation. This study concludes by arguing that it needs to pay attention to service quality and the company’s good name levels to maintain customer loyalty.

Dimensions

Downloads

Download data is not yet available.

Plum Analytics

Article Details

Section
Articles
Author Biography

Teuku Meldi Kesuma, Universitas Syiah Kuala

Management Dpartement (Rank Akreditasi A)

References

Abd-el-salam, E. M., Shawky, A. Y., & El-Nahas, T. (2013). The impact of corporate image, and reputation on service quality, customer satisfaction and customer loyalty : testing the mediating role. Case analysis in an international service company. The Business & Management Review, 3(2), 177–196. https://doi.org/http://dx.doi.org/10.1108/ 17506200710779521

Albaity, M., & Melhem, S. B. (2017). Novelty seeking, image, and loyalty—The mediating role of satisfaction and the moderating role of length of stay: International tourists’ perspective. Tourism Management Perspectives, 23, 30–37. https://doi.org/10.1016/j.tmp.2017.04. 001

Alnsour, M. S., Tayeh, B. A., & Alzyadat, M. A. (2014). Using SERVQUAL to assess the quality of service provided by the Jordanian Telecommunications Sector. International Journal of Commerce and Management, 24(3), 209–218. https://doi.org/10.1108/IJCoMA-03-2012-0021

Alsajjan, B. A. (2014). Satisfaction-trust model: developing customer satisfaction and trust indices for mobile service providers in the UK. International Review of Management and Business Research, 3(2), 1088–1104. Available at: https://www.irmbrjournal.com/download.php?file=papers/1402559387.pdf

Amin, S. M., Norulkamar, U., Ahmad, U., & Hui, L. S. (2012). Factors contributing to customer loyalty towards the telecommunication service providers. Procedia - Social and Behavioral Sciences, 40(6), 282–286. https://doi.org/10.1016/j.sbspro.2012.03.192

Arshad, T., Zahra, R., & Draz, U. (2016). Impact of customer satisfaction on image, trust, loyalty and the customer switching behavior in conventional and Islamic banking : evidence from American Journal of Business and Society, 1(3), 154–165. Available at: http://files.aiscience.org/journal/article/pdf/70590028.pdf

Athanassopoulos, A. D., & Iliakopoulus, A. (2003). Modeling customer satisfaction in telecommunications: assessing the effects of multiple transaction points on the perceived overall performance of the provider. Production and Operations Management, 12(2), 224–245. https://doi.org/10.1111/j.1937-5956.2003.tb00502.x

Aydin, S., & Ozer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910–925. https://doi.org/10.1108/03090560510601833

BPS (2020). Jumlah Penduduk Menurut Kabupaten/Kota dan Jenis Kelamin di Provinsi Aceh, 2010 - 2020. Badan Pusat Statistik.

Burke, P. J., & Stets, J. E. (1999). Trust and commitment through self-verification. Social Psychology Quarterly, 62(4), 347–360. https://doi.org/10.2307/2695833

Caruana, Albert, & Ramaseshan, B. (2015). The effect of service quality and consumer trust on retail website loyalty. Spotts H. (Eds) Creating and Delivering Value in Marketing. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-11848-2_21

Castaneda, J. A. (2011). Relationship Between customer satisfaction and loyalty on the internet. Journal of Business and Psychology, 26, 371–383. https://doi.org/10.1007/s10869-010-9196-z

Chang, C.-W., Tseng, T.-H., & Woodside, A. G. (2013). Configural algorithms of patient satisfaction, participation in diagnostics, and treatment decisions’ influences on hospital loyalty. Journal of Services Marketing, 27(2), 91–103. https://doi.org/10.1108/08876041311309225

Chen, A., Lu, Y., Gupta, S., & Xiaolin, Q. (2014). Can customer satisfaction and dissatisfaction coexist? An issue of telecommunication service in China. Journal of Information Technology, 29, 237–252. https://doi.org/10.1057/jit.2013.26

Chiou, J. S. (2004). The antecedents of consumers’ loyalty toward internet service providers. Information, and Management, 41(6), 685–695. https://doi.org/10.1016/j.im.2003.08. 006

Chodzaza, G. E., & Gombachika, H. S. H. (2013). Service quality, customer satisfaction and loyalty among industrial customers of a public electricity utility in Malawi. International Journal of Energy Sector Management, 7(2), 269–282. https://doi.org/ 10.1108/IJESM-02-2013-0003

Christodoulides, G. & Michaelidou, N. (2011). Shopping motives as antecedents of e-satisfaction and e-loyalty. Journal of Marketing Management, 27(1-2), 181-197. https://doi.org/10.1080/0267257X.2010.489815

Chun, R. & Davies, G. (2006), The influence of corporate character on customers and employees: exploring similarities and differences. Journal of Academy of Marketing Science. 34(2), 138-46. https://doi.org/10.1177/0092070305284975

Cox, J., & Dale, B. G. (2001). Service quality and e-commerce: an exploratory analysis. Managing Service Quality, 11(2), 121–131. https://doi.org/10.1108/09604520110 387257

Dimitriadis, S., Kouremenos, A. & Kyrezis, N. (2011). Trust‐based segmentation: Preliminary evidence from technology‐enabled bank channels, International Journal of Bank Marketing, 29(1), 5-31. https://doi.org/10.1108/02652321111101356

Dwivedi, Y. K., Papazafeiropoulou, A., Brinkman, W.-P., & Lal, B. (2010). Examining the influence of service quality and secondary effect on the behavioral intention to change internet service providers. Information System Frontiers, 12, 207–217. https://doi.org/10.1007/s10796-008-9074-7

Giovanis, A. N., Zondiros, D., & Tomaras, P. (2014). The Antecedents of Customer Loyalty for Broadband Services: The Role of Service Quality, Emotional Satisfaction and Corporate Image. Procedia - Social and Behavioral Sciences, 148, 236–244. https://doi.org/10.1016/j.sbspro.2014.07.039

Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., & Tatham, R. L. (2014). Multivariate Data Analysis 8th Edition. New Jersey: Pearson Prentice Hall

Hayes, A. F. & Preacher, K. J. (2014). Statistical mediation analysis with a multi categorical independent variable. British Journal of Mathematical and Statistical Psychology, 67, 451-470. https://doi.org/10.1111/bmsp.12028

Izogo, E. E. (2016). Antecedents of attitudinal loyalty in a telecom service sector : The Nigerian case. International Journal of Quality & Reliability Management, 33(6). https://doi.org/10.1108/IJQRM-06-2014-0070

Jahanzeb, S., Fatima, T., & Khan, M. B. (2011). An empirical analysis of customer loyalty in Pakistan’s telecommunication industry. Database Marketing & Customer Strategy Management, 18(1), 5–15. https://doi.org/10.1057/dbm.2011.2

Kandampully, J., Devi, J. T., & Hu, S. H.-H. (2011). The influence of a hotel firm’s quality of service and image and its effect on tourism customer loyalty. International Journal of Hospitality & Tourism Administration, 12(1), 21–42. https://doi.org/10.1080/15256480.2011.540976

Kao, T. W. D., & Lin, W. T. (2016). The relationship between perceived e-service quality and brand equity: A simultaneous equations system approach. Computers in Human Behavior, 57, 208–219. https://doi.org/10.1016/j.chb.2015.12.006

Kaur, G., Sharma, R.D. and Mahajan, N. (2012). Exploring customer switching intentions through relationship marketing paradigm, International Journal of Bank Marketing, 30(4), 280-302. https://doi.org/10.1108/02652321211236914

Kaur, H. & Soch, H. (2012). Validating antecedents of customer loyalty for Indian cell phone users. Vikalpa, 37(4), 47-61. https://doi.org/10.1177/0256090920120404

Khatibi, A. A., Ismail, S., & Thyagarajan, V. (2002). What drives customer loyalty: an analysis from the telecommunication industry. Journal of Targeting, Measurement, and Analysis for Marketing, 11(1), 34–44. https://doi.org/10.1057/palgrave.jt.5740065

Kheiry, B., & Alirezapour, M. (2012). The effect of satisfaction, trust, and switching barriers service provider on customer loyalty (mobile phone users of Iran cell company in Iran). Australian Journal of Basic and Applied Sciences, 6(12), 52–60. Available at: http://www.ajbasweb.com/old/ajbas/2012/Nov%202012/52-60.pdf.

Khoi, B. H., & Tuan, N. Van. (2018). Using SmartPLS 3.0 to Analyse Internet Service Quality in Vietnam. Econometrics for Financial Applications, 2, 430–439. https://doi.org/10.1007/978-3-319-73150-6

Khvtisiashvili, I. (2012). How does corporate image affect the competitive advantage of the Georgian banking segment?. Journal of Business, 1(1). 35-44. Available at: https://jb.ibsu.edu.ge/jms/index.php/jb/article/download/33/41

Kidron, A., & Kreis, Y. (2020). Listening to bank customers: the meaning of trust. International Journal of Quality and Service Sciences, 12(3), 355–370. https://doi.org/10.1108/IJQSS-10-2019-0120

Kim, G. S. (2005). The role effect loyalty of internet: a causal model. Asian Journal on Quality, 6(2), 17–30. https://doi.org/10.1108/15982688200500011

Kim, M., Park, M., & Jeong, D. (2004). The effects of customer satisfaction and switching barriers on customer loyalty in Korean mobile telecommunication services. Telecommunications Policy, 28, 145–159. https://doi.org/10.1016/j.telpol.2003.12.003

Kiran, K., & Diljit, S. (2011). Antecedents of customer loyalty: Does service quality suffice? Malaysian Journal of Library & Information Science, 16(2), 95–113. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.473.5793&rep=rep1&type=pdf

Kishada, Z. M. E., & Wahab, N. A. (2013). Factors Affecting Customer Loyalty in Islamic Banking: Evidence from Malaysian Banks. International Journal of Business and Social Science, 4(7), 264-273. Available at: http://www.ijbssnet.com/journals/Vol_4_No_7_July_2013/29.pdf

Kyriazopoulos, P., Spyridakos, A., Grigoroudis, E., Siskos, Y., & Yannacopoulos, D. (2007). The quality of e-services : Measuring Satisfaction of Internet Customers. Operational Research. 7(2), 233–254. https://doi.org/10.1007/BF02942389

Lai, F., Griffin, M., & Babin, B. J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10), 980–986. https://doi.org/10.1016/j.jbusres.2008.10.015

Lee, S., & Moghavvemi, S. (2015). The dimension of service quality and its impact on customer satisfaction, trust, and loyalty: a case of Malaysian banks. Asian Journal of Business and Accounting, 8(2), 91–122. Available at: https://ajba.um.edu.my/article/download/2715/913/

Lee, W. J. (2011). Critical factors are promoting customer loyalty to smartphones and mobile communications service providers. Academy of Marketing Studies Journal, 15(1), 59–69. Available at: https://casecent.re/p/123711

Loke, S., Taiwo, A. A., Salim, H. M., & Downe, A. G. (2011). Service quality and customer satisfaction in a telecommunication service provider. International Conference on Financial Management and Economics IPEDR, 11, 24–29. IACSIT Press, Singapore. Available at: http://www.ipedr.com/vol11/5-R00009.pdf.

Malik, M. E., Ghafoor, M. M., & Iqbal, H. K. (2012). Impact of brand image, service quality, and price on customer satisfaction in Pakistan telecommunication sector. International Journal of Business and Social Science, 3(23), 123–129. Available at: http://www.ijbssnet.com/journals/Vol_3_No_23_December_2012/13.pdf.

Mbuthia, M. G., & Thaddaeus, E. (2015). Validating customer loyalty model using structural equation modeling in a Kenyan hospital. Open Access Library Journal, 02(04), 1–11. https://doi.org/10.4236/oalib.1101213

Milfelner, B., & Korda, A. P. (2011). Hotel image and guests satisfaction as a source of sustainable competitive advantage. International Journal Sustainable Economy, 3(1), 92–106. https://doi.org/10.1504/IJSE.2011.037722

Minkiewicz, J., Evaans, J., Bridson, K. & Mavondo, F. (2011). Corporate image in the leisure services sector. Journal of Services Marketing, 25(3), 190–201. https://doi.org/10.1108/08876041111129173

Namukasa, J. (2013). The influence of airline service quality on passenger satisfaction and loyalty: The case of Uganda airline industry. The TQM Journal, 25(5), 520–532. https://doi.org/10.1108/TQM-11-2012-0092

Ngo, M. V., & Nguyen, H. H. (2016). The Relationship between Service Quality, Customer Satisfaction and Customer Loyalty: An Investigation in Vietnamese Retail Banking Sector. Journal of Competitiveness, 8(2), 103–116. https://doi.org/10.7441/joc.2016.02.08

Nguyen, N., & Leclerc, A. (2011). The effect of service employees’ competence on financial institutions’ image: benevolence as a moderator variable. Journal of Services Marketing, 349–360. https://doi.org/10.1108/08876041111149702

Nguyen, Nha, Leclerc, A., & Leblanc, G. (2013). The mediating role of customer trust on customer loyalty. Journal of Service Science and Management, 6, 96–109. https://doi.org/ 10.4236/jssm.2013.61010.

Orth, U. R., & Green, M. T. (2009). Consumer loyalty to family versus non-family business: The roles of store image, trust, and satisfaction. Journal of Retailing and Consumer Services, 16(4), 248–259. https://doi.org/10.1016/j.jretconser.2008.12.002

Osman, Z., Mohamad, R. K., & Mohamad, L. (2016). Mediating effect of customer satisfaction on service quality and trust relationship in the Malaysian banking industry. International Journal of Advances in Management, Economics, and Entrepreneurship, 2(1), 25–37. https://doi.org/2226-4809

Osman, Z., & Sentosa, I. (2013a). Influence of customer satisfaction on service quality and trust relationship in the Malaysian rural tourism. Business and Management Quarterly Review, 4(2), 12–25. Available at: https://core.ac.uk/download/pdf/85123806.pdf.

Osman, Z., & Sentosa, I. (2013b). Mediating effect of customer satisfaction on service quality and customer loyalty relationship in Malaysian rural tourism. International Journal of Economics Business and Management Studies - IJEBMS, 2(1), 25–37. https://doi.org/2226-4809

Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988), SERVQUAL: A multiple-item scale measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.

Pashkov, P., & Pelykh, V. (2020). Digital transformation of financial services based on trust. 50th International Scientific Conference on Economic and Social Development – Chelyabinsk, 13- 14 February 2020, 375-383. Available at: https://www.proquest.com/docview/2383820345

Philip, L., Henchion, M., Albisu, L. M. & Fischer, C. (2010), trust and relationships in selected European agri-food chains in Fischer, C, and Hartmann, M. (Eds.) Agri-food Chain Relationships. CAB International, Wallingford Agri-food Chain Relationships, 91-104. https://doi.org/10.1080/16507540701192543

Prastya, D. (2020), Ini Jumlah Pengguna Internet Indonesia 2020 per Provinsi. https://www.suara.com/tekno/2020/11/13/191253/ini-jumlah-pengguna-internet-indonesia-2020-per-provinsi.

Prastya, D. (2021), Jumlah Pengguna Internet di Indonesia Capai 202,6 Juta Orang. https://www.suara.com/tekno/2021/02/15/123000/jumlah-pengguna-internet-di-indonesia-capai-2026-juta-orang.

Prayag, G., Hosany, S., Muskat, B., & Del Chiappa, G. (2017). Understanding the relationships between tourists’ emotional experiences, perceived overall image, satisfaction, and intention to recommend. Journal of Travel Research, 56(1), 41–54. https://doi.org/10.1177/0047287515620567

Quaarach, T. N., Thaichon, P., & Jebarajakirthy, C. (2016). Internet service providers’ service quality and its effect on customer loyalty of different usage patterns. Journal of Retailing and Consumer Services, 29, 104–113. https://doi.org/10.1016/j.jretconser.2015.11.012

Quach, T. N., Jebarajakirthy, C., & Thaichon, P. (2016). The effects of service quality on internet service provider customers? Behaviour: A mixed-methods study. Asia Pacific Journal of Marketing and Logistics, 28(3). https://doi.org/10.1108/APJML-03-2015-0039

Richard, J., & Zhang, A. (2012). Corporate image, loyalty, and commitment in the consumer travel industry. Journal of Marketing Management, 28(5–6), 568–593. https://doi.org/10.1080/0267257X.2010.549195

Russell-Bennett, R., McColl-Kennedy, J. R., & Coote, L. V. (2013). Involvement, satisfaction, and brand loyalty in a small business services setting. Journal of Business Research, 60(12), 1253–1260. https://doi.org/10.1016/j.jbusres.2007.05.001

Sanchez-Franco, M. J., Ramos, A. F. V., & Velicia, F. A. M. (2009). The moderating effect of gender on relationship quality and loyalty toward Internet service providers. Information and Management, 46(3), 196–202. https://doi.org/10.1016/ j.im.2009.02.001

Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal, 22(3), 330–343. https://doi.org/10.1108/17542731011035550

Su, L., & Fan, X. (2011). A study on the relationships between service quality, satisfaction, trust, and loyalty among rural tourism. 8th International Conference on Service Systems and Service Management - Proceedings of ICSSSM’11. https://doi.org/10.1109/ ICSSSM.2011.5959418

Shafei, I. & Tabaa, H. (2016). Factors affecting customer loyalty for the mobile telecommunication industry. EuroMed Journal of Business, 11(3), 347-361. https://doi.org/10.1108/EMJB-07-2015-0034

Shainesh, G. (2012). Effects of trustworthiness and trust on loyalty intentions: validating a parsimonious model in banking. International Journal of Bank Marketing, 30(4), 267-79. https://doi.org/10.1108/02652321211236905

Tarus, D. K., & Rabach, N. (2013). Determinants of customer loyalty in Kenya: Does corporate image play a mediating role?. The TQM Journal, 25(5), 473 – 491. https://doi.org/10.1108/TQM-11-2012-0102

Thaichon, P., & Jebarajakirthy, C. (2016). Evaluating specific service quality aspects which impact customers’ behavioral loyalty in high-tech internet services. Asia Pacific Journal of Marketing and Logistics, 28(1). 141-159. https://doi.org/10.1108/APJML-02-2015-0027

Thaichon, P., Lobo, A. & Mitsis, A. (2012). Investigating the antecedents to the loyalty of Internet service providers in Thailand: Developing a conceptual model. Paper presented at the Australian and New Zealand Marketing Academy Conference (ANZMAC) 2012 Conference, 03-05 December, Adelaide, Australia.

Thaichon, P., Lobo, A., & Mitsis, A. (2014). An empirical model of home internet services quality in Thailand. Asia Pacific Journal of Marketing and Logistics, 26(2), 190–210. https://doi.org/10.1108/APJML-05-2013-0059

Thaichon, P., Lobo, A., Prentice, C., & Quach, T. N. (2014). The development of service quality dimensions for internet service providers: Retaining customers of different usage patterns. Journal of Retailing and Consumer Services, 21(6), 1047–1058. https://doi.org/10.1016/j.jretconser.2014.06.006

Thaichon, P., & Quach, T. N. (2015). The relationship between service quality, satisfaction, trust, value, commitment, and loyalty of Internet service providers’ customers. Journal of Global Scholars of Marketing Science, 25(4), 295–313. https://doi.org/10.1080/21639159.2015.1073419

Thomas, S. (2013), Linking customer loyalty to customer satisfaction and store image: a structural model for retail stores. The decision, 40(1–2), 15–25. https://doi.org/10.1007/s40622-013-0007-z

Tolba, A., Seoudi, I., Meshriki, H., & Abdelshahid, M. (2015). Impact of ethical sales behavior, quality and image on customer satisfaction, and loyalty: evidence from retail banking in Egypt. International Journal of Management and Marketing Research, 8(2), 1–18. Available at: http://www.theibfr2.com/RePEc/ibf/ijmmre/ijmmr-v8n2-2015/IJMMR-V8N2-2015-1.pdf

Vlachos, A., & Vrechopoulos, P. (2008). Determinants of behavioral intentions in the mobile internet services market. Journal Services Marketing, 22(4), 280–291. https://doi.org/10.1108/08876040810881687

Wang, C., & Wu, L. (2012). Customer loyalty and the role of relationship length. Managing Service Quality: An International Journal, 22, 58–74. https://doi.org/10.1108/ 09604521211198119

Yap, B. W., Ramayah, T. & Shahidan, W. N. W. (2012). Satisfaction and trust on customer loyalty: A PLS approach. Business Strategy Series, 13(4): 154-167. https://doi.org/10.1108/17515631211246221

Zhao, Y. L., & Benedetto, C. A. D. (2013). Designing service quality to survive: Empirical evidence from Chinese new ventures. Journal Business Research, 66, 109–1107. https://doi.org/10.1016/j.jbusres.2012.03.006

Zhou, R., Wang, X., Shi, Y., & Zhang, R. (2018). Measuring e‑service quality and its importance to customer satisfaction and loyalty: an empirical study in a telecom setting. Electronic Commerce Research. 19(3), 477-499. https://doi.org/10.1007/s10660-018-9301-3