ALLANA MANAGEMENT JOURNAL OF RESEARCH, PUNE - Volume 8, Issue 2 , July 2018 - December 2018

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Drivers of satisfaction in mobile industry and its impact on customer loyalty

Author: Dr.Vijay Ganpat Dhamore

Category: Marketing Management

Abstract:

Brand inclination is the selective claim for a company's product rather than a product; the grade to which consumers prefer one brand above another. Brand preference can be achieved by creating the positive brand copy in customer's awareness. The main contribution of this paper is that it exclusively identifies an approach to understanding the nourishing and susceptibility effects of Product reforms, Perceived value and Service Satisfaction on customer loyalty improvement. Understanding this tactic should lead to operative customer loyalty supervision. Satisfaction was comprised of three basic components, a response pertaining to a particular focus determined at a particular time. This study is based on a primary data based having 145 respondents. Study focuses on the impact of purchase experience factors of respondents on customer loyalty. It also contributes towards further guidelines to customer loyalty studies. The present paper focuses on the study of brand preference for mobile phones with reference to the management students in Pune city.

Keywords: Choice of Mobile, Service Satisfaction, Product reforms, Customer loyalty, Preference of mobile purchase

Full Text:

1. Introduction-
In every invention category, consumers have more selections, more evidence with higher
opportunities. To move consumers from trial to preference, brand need to deliver on their value
proposition. With the great promotion strategy and large amount of investment, attentiveness can
be accomplished rather rapidly; it takes time to shape brand fondness. Managing and nourishing
favorite is a key step on the road to gain the customer loyalty. The primary objective of the study
is to assess the brand preference for mobile phones among the management students of Pune
City. It also identifies the major features which a MBA student experiences while purchase
process. The present study is the descriptive research. Brand liking analysis is done by
conducting the Questionnaire Survey which describes the purchasing preferences for variety of
mobile phones.
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2. LITERATURE REVIEW
2.1 Customer loyalty-
Customer loyalty is a key success corner stone to the progress of perpetual customers. In
marketing research literature, loyalty is investigated as a component of one (general loyalty), two
(attitudinal and behavioral) or four dimensions (cognitive, affective, conative, action). Before
1970, the specialists focused only on behavioral dimension of loyalty, seen as a process of
repeated purchases. Loyalty future, thereby causing repetitive same-brand or same brand-set
purchasing, despite situational influences and marketing efforts having the potential to cause
switching behavior."(Oliver,1997).
2.2 Product reforms-
Wu1 and Li-Hsia Tseng (2014) examined the relationship between customer satisfaction and
loyalty and their results showed that experiential marketing was a significant predictor and it had
a positive impact on customer loyalty and customer satisfaction. Further it was stated that for
daily purchase items, women preferred Internet media due to convenience of Internet ease. There
was a need for widespread services for the sales performance. Internet advertisements and micro
films were a new medium of brand promotion to draw public attention. Study suggested product
design reforms and to offer an extensive assortment to increase its perceived value which leads
to customer loyalty. The lativ customers showed strong preference for the endorsement of brand.
Authors also suggested to the managers of online shop to consistently analyze and develop
marketing strategies to increase customer loyalty.
2.3 Perceived value-
The anticipated benefit from a consumer's perspective of a product or service. The customer
perceived value stems from tangible, psychological and social advantages, and since it affects
demand for a product, it needs to be taken into account when setting prices.
The buyer's cognitive state of being adequately or inadequately rewarded for the sacrifices he
has undergone as stated by Howard and Sheth (1969).Tung (2010) indicated in his research
about integration of the American Customer Satisfaction Model. Study emphasized on consumer
satisfaction and focused on perceived usefulness and perceived ease of use with the mobile
services industry in China. The study found positive effect on customer satisfaction. The
research also found that customer satisfaction had a significant positive direct impact on
customer loyalty. In summary, it can be stated that as the level of customer satisfaction increases,
the level of customer loyalty increases. It also increased perceived value of a brand. So following
hypothesis statement can be stated as3
2.4 Service satisfaction-
It is conceptualized as a feeling developed from an evaluation of the use experience as stated by
Cadotte, Woodruff and Jenkins (1987). Westbrook and Reilly 1983 stated that an emotional
response to the experiences provided by and associated with particular products or services
purchased, retail outlets, or even molar patterns of behavior such as shopping and buyer
behavior, as well as the overall marketplace. An emotional response triggered by a cognitive
evaluative process in which the perceptions of (or beliefs about) an object, action, or condition
are compared to one's values (or needs, wants, desires). Gogoi (2015) conducted a study on
buying process for services and found that quality was much more challenging to access prior to
purchase. Study contended on five dimensions of services. There was a positive and significant
relationship between the dimensions of service (Reception, Friendliness and Service, Room
Service) and drivers of customer loyalty (Price Satisfaction and Service Satisfaction). Price and
service satisfaction has an impact on customer loyalty. Service quality had a significant, positive
impact on customer loyalty. Results revealed that service quality had a very strong impact on
cognitive loyalty followed by affective loyalty, conative loyalty, and action loyalty. In Summary,
Service quality satisfaction leads to Customer loyalty. So following hypothesis statement can be
stated as-
H1: Choice of Mobile will positively affect Customer loyalty.
H2: Mobile buying preference will positively affect Customer loyalty.
H3: Mobile brand interest will positively affect Customer loyalty.
H4: Service satisfaction will positively affect Customer loyalty.
H5: Emotional purchase experience decision will positively affect Customer loyalty.
H6: Functional purchase experience decision will positively affect Customer loyalty.
The research proposed a set of inferences to the research and the predecessors of enhancing and
emerging customer loyalty. Customer loyalty is a consistent and tactical effort that managers
should focus on and develop.
3. METHODOLOGY
3.1 Variables- Product reforms, Perceived value, Service satisfaction are considered as
independent variables. Customer Loyalty will be a dependent variable.
3.2. Data Analysis-Some of the items were deleted to find tune the questionnaire during the pilot
study. Scale was adopted from journal procedia economics and finance (2012). Perceived value
scale functional value (installation) was adopted from (sa´nchez et al, 2006) and emotional value
(novelty) was adopted from otto (1997); otto andritchie (1996).
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Questionnaire was distributed among the regular mobile phone users. Online survey method was
adopted to collect responses from 145 respondents.
Statistical analysis is as below-
Table 3.1 Reliability statistics
Cronbach's Alpha N of Items
.787 08
With reference to table no 3.1 it is interpreted that Reliability analysis for 8 items is 0787 which
satisfies the criteria for Reliability. This criteria was stated by Nunnally (1978) recommends
reliabilities of 0.70 or better (but not much beyond than 0.80) for basic research
Table 3.2 Frequency Table-
3.21 AGE
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
Valid 20 TO 40 YEARS 145 83.8 100.0 100.0
Missing System 28 16.2
Total 173 100.0
With reference to table no 3.21, it is interpreted that Majority of the respondents were from the
age group 20 to 40 years as compared to other age groups whose percentage is 84%.
3.22 GENDER
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
Valid MALE 98 56.6 67.6 67.6
FEMALE 47 27.2 32.4 100.0
Total 145 83.8 100.0
Missing System 28 16.2
Total 173 100.0
With reference to table no 3.22, it is interpreted that Majority of the respondents were Male,
which contributes to 57 % of total respondents.
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3.23 INCOME
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid BELOW 10,000 101 58.4 69.7 69.7
10,000 TO 20,000 24 13.9 16.6 86.2
ABOVE 20,000 20 11.6 13.8 100.0
Total 145 83.8 100.0
Missing System 28 16.2
Total 173 100.0
With reference to table no 3.23, it is interpreted that Majority of the respondents were from
below 10,000 income earnings whose percentage is 59 %.
3.24 Mobile Purchase preference among the various mobile brands.
With reference to table no 3.24, it is interpreted that consumer preference regarding the purchase
of a new mobile telephone in the Pune market is specific to Brands like Samsung, Apple, LG,
Lenovo etc. The ranking of brands is based on survey according to which the market share of the
four brands under consideration are: Apple 39%, Samsung 37%, LG 8%, MI and Nokia 2%,
Vivo, OPPO, MI, Redmi, One Plus, Xiomi are having 3 %. So, It is interpreted that Apple is the
most preferable brand among all mobile brands and Mi and Nokia are the least preferred brand of
mobile in Pune city.
Apple
39%
Samsung
37%
Nokia
2%
LG
8%
Mi
2%
Redmi
3% Mi
3%
Oppo
3%
One Plus
3%
Preference to Mobile Purchase
Apple
Samsung
Nokia
LG
Mi
Redmi
Mi
Oppo
One Plus
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Table 3.3 Descriptive Statistics
Mean
Std.
Deviation
N
REPURCHASE DECISION 1.31 .464 145
CHOICE OF MOBILE 4.09 2.648 145
MOBILE PREFRENCE TO BUY 1.12 .323 145
FULL COMPANY INTEREST 1.18 .385 145
AFTER SALES SERVICE
SATISFACTION
5.58 .770 145
EMOTIONAL DECISION
SATISFACTION
2.41 1.441 145
FUNCTIONAL EXPERIENCE
SATISFACTION
3.46 1.833 145
RECOMMENDATION TO OTHERS
1.00 .000 145
With reference to table no 3.3, it is interpreted that Based on the descriptive statistics, Mean
value for after sales service satisfaction factor is high 5.58 and Mean value for the factor mobile
preference to buy is low 1.12.Since high value interprets that respondents are satisfied with after
sales service. They are most likely to buy as per their shopping experience from the service.
Table 3.4 Regression Analysis
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
B Std. Error Beta t Sig.
1 (Constant) 2.732 .502 5.439 .000
CHOICE OF MOBILE -.045 .016 -.257 -2.737 .007
MOBILE PREFRENCE
TO BUY
-.166 .123 -.115 -1.347 .180
FULL COMPANY
INTEREST
.223 .093 .185 2.399 .018
AFTER SALES SERVICE
SATISFACTION
-.229 .070 -.379 -3.274 .001
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EMOTIONAL DECISION
SATISFACTION
.067 .028 .209 2.400 .018
FUNCTIONAL
EXPERIENCE
SATISFACTION
-.058 .029 -.230 -2.006 .047
a. Dependent Variable: REPURCHASE DECISION
With reference to table no 3.4, it is interpreted that For all mentioned constants one factor does
not satisfies the p value criteria (p< 0.05) that is 'Mobile preference to buy'. But all other factors
are statistically significant. (p<0.05). Repurchase decision factor mentioned here is pertaining to
customer loyalty.
H1: Hypothesis is rejected. Hence it is stated that Choice of Mobile will not positively affecting
on Customer loyalty.
H2: Hypothesis is accepted. Hence it is stated that Mobile buying preference will positively
affecting Customer loyalty.
H3: Hypothesis is rejected. Hence it is stated that Mobile brand interests will not positively
affecting on Customer loyalty.
H4: Hypothesis is rejected. Hence it is stated that Service satisfactions will not positively
affecting Customer loyalty.
H5: Hypothesis is rejected. Hence it is stated that Emotional purchase experience decisions will
not positively affecting Customer loyalty.
H6: Hypothesis is rejected. Hence it is stated that Functional purchase experience decisions will
not positively affecting Customer loyalty.
Table 3.5 Model Summary
ANOVAb
Model
Sum of
Squares
df
Mean
Square
F Sig.
1 Regression 7.827 6 1.305 7.757 .000a
Residual 23.207 138 .168
Total 31.034 144
With reference to table no 3.5, it is interpreted that Overall Model is partially fit. For proposed
observed values as F value shows high value but statistically significant relationship as p value is
below 0.05.
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Table 3.6 Model Summary
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .502a .252 .220 .410
With reference to table no 3.6, it is interpreted that Correlation coefficient R measures the
strength and direction of a linear relationship between two variables on a scatterplot.
The value of r is always between +1 and -1. R value 0.502 provides an estimate of the strength
of the positive relationship between proposed model and the response variable. R2 Value comes
to 25 % which shows less positive correlation. The F-test of overall significance determines
whether this relationship is statistically significant.
4. IMPLICATIONS TO RESEARCH AND PRACTICE
As from the research study, it can be a new trial to search out new variables which are impacting
customer loyalty. It will help managers to understand that only after sales service is not a only a
predictor for loyalty but there can be other factors also. To improve sales as well as profits in the
marketing domain after sales experience should be customer delight level. Managers should
implement the strategies during the stages of sales. Mobile buying preferences will positively
affecting Customer loyalty so managers and companies should offer alternative choice for
various mobile brands. Mobile preference is based on features of mobile and not on the based on
price criteria. So, Marketing managers should give more stress on designing innovative features
of mobile which can pool customers and further there are less chances of mobile brand switch.
5. CONCLUSION
This research focused mainly on the Customer loyalty related with mobile usage and experience
form the youth and having low income level group. Service satisfaction level is affecting on the
customer loyalty which results into the repurchase decision of buyers as well as Brand Advocacy
of mobiles in the market. Further research study can be done for other independent variables
impacting on customer loyalty. It is interpreted in the study that Mobile buying preferences will
positively affecting Customer loyalty so managers and companies should offer alternative choice
for various mobile brands. It will help organizations dealing with mobile manufacturing to
design new models with recent features to retain customers and to increase loyalty customers.
The study finds that organizations should do their extreme to improve apparent quality, as doing
so seems to signify the most operative way of increasing stages of customer satisfaction.