The Relationship between Service Quality, Perceived Value, Trust and Loyalty to Mobile Operators and their Services

Heikki Karjaluoto, Chanaka Jayawardhena, Minna Hannele Pihlström, Matti Leppiniemi

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

In this paper, the authors conceptualize and test a theoretical framework linking service quality, utilitarian and hedonic value, and trust with three individual loyalty dimensions. The direct relationships between trust and different dimensions of loyalty have received little attention in previous research. Data analysis incorporates confirmatory factor analysis and structural equation modeling on 1385 mobile users. The results indicate that trust is a strong predictor of action loyalty, while utilitarian and hedonic value mainly influence cognitive loyalty and word of mouth communication. The findings of this study offer new insights in increasing revenue per user in this dynamic sector by illustrating the dominating role of trust as an important driver of customers’ action loyalty as well as the importance of value-for-money in enhancing cognitive loyalty and word of mouth.
Original languageEnglish
Title of host publication Conference Proceedigs of the Academy of Marketing Science Conference (AMS 2008)
Place of PublicationVancouver, British Columbia
Publication date2008
Publication statusPublished - 2008
MoE publication typeA4 Article in conference proceedings

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    Karjaluoto, H., Jayawardhena, C., Pihlström, M. H., & Leppiniemi, M. (2008). The Relationship between Service Quality, Perceived Value, Trust and Loyalty to Mobile Operators and their Services. In Conference Proceedigs of the Academy of Marketing Science Conference (AMS 2008)