Authors : Maedeh Parvizian, Amir Albadvi and Mohammad Ehsan Kianersi
Abstract: The primary aim of this study is to examine the relationship between perceived service quality, customer loyalty and the firm’s financial performance at the customer level in Iran’s mobile telecommunication industry. “Mobile monthly budget” was considered as a moderating variable in perceived service quality-loyalty and loyalty-CLV relationships. In addition, some potentially mediating variables between perceived service quality and loyalty including customer satisfaction, perceived value, trust, affective commitment, calculative commitment and corporate image were considered in the proposed model. Data was obtained from 271 subscribers of a mobile operator in Iran via questionnaire. The results of this study demonstrate that CLV is influenced by perceived service quality and customer loyalty when mobile monthly budget is considered as a moderating factor. The results of the analysis support the impact of perceived service quality on all the mediating factors and also show that all seven antecedents have positive and significant effects on customer loyalty. The research was conducted in an Asian country where the mobile telecommunication industry is emerging and the findings may not be generalizable to other locations or to other markets. This study provides managers with insight as to how they can improve financial performance through enhancement of service quality and customer loyalty in mobile telecommunication industry. It also supports that strategic consideration of customer segmentation can help mobile operators optimize resource allocation in service design and marketing planning. This study links unobservable constructs of perceived service quality and customer loyalty to CLV as the firms’ financial performance in the mobile telecommunication industry which is important for management decision making and resource allocation.
Maedeh Parvizian, Amir Albadvi and Mohammad Ehsan Kianersi, 2016. How Perceived Service Quality and Customer Loyalty Can Affect Customer Lifetime Value?. International Business Management, 10: 1973-1988.