Effects of Service Quality, Trust, and Perceived Value on Customer Loyalty: The Case of Mobile Subscribers
In this study we conceptualize a theoretical framework linking service quality, trust and, perceived value to both attitudinal and behavioral aspects of customer loyalty. The model is among the first attempts to explore the direct and indirect effects between trust and perceived value (conceptualized as a four dimensional construct: emotional, social, functional, and monetary) and customer loyalty (conceptualized as a four dimensional construct: cognitive, affective, conative, and action) in a continuous service setting. Data analysis incorporates confirmatory factor analysis and structural equation modeling on 1385 mobile subscribers. The primary insights this study gives are: 1) service quality has a strong direct influence on trust and emotional, social and functional value; 2) trust has a direct positive influence on all dimensions of value, of which the effect on functional value is the strongest; 3) individual value dimensions and trust are strong indicators of loyalty dimensions; 4) monetary value is the strongest individual value dimension in predicting cognitive, affective and conative loyalty. The importance of these findings for practitioners and academics, research limitations and future research avenues are subsequently discussed. The research contributes to the literature by providing a more integrated view of customer loyalty and the effects of customer value in the context of continuous service providers.