AFTER SALES SERVICE, CUSTOMER SATISFACTION, AND LOYALTY IN TELECOM SECTOR

Abstract

This study aims to examine the relationships between after-sales service, customer satisfaction, and loyalty. Moreover, this study also explains how after-sales services such as delivery, installation, product warranty, telephone/online supports, up gradation, and complaint influence customer loyalty with the mediating role of customer satisfaction. Online data were collected using a convenience sampling technique from 204 respondents who were currently using the Internet (i.e., 3G, 4G devices or fixed broadband) in Pakistan. The online-based questionnaire was implemented a five-point Likert scale with 38 items. Structural equation modeling (SEM) was performed to test the hypotheses. The results show (a) after-sales service has a significant influence on customer loyalty, (b) after-sales services effect customer satisfaction positively, (c) customer satisfaction has a direct and positive impact on loyalty, and (d) satisfaction partially mediates between after-sales service and loyalty. This study explains how service sector organizations maintain a profitable long-term relationship with customers, and how to get customer satisfaction and loyalty. In addition, this research may contribute to the literature that there exists a positive relationship between after-sales service, satisfaction, and loyalty which could apply to other service industries as well.