Abstract:
Customer loyalty is considered to be a key component in enhancing the survival of businesses,
especially in the situations faced by highly competitive industries. Therefore, Tele communication
service providers should be conscious of the factors affecting customer loyalty in building strong
relationships. This paper aimed to investigate the effectiveness of relational bonds on customer
loyalty with the mediation of customer satisfaction among mobile telecommunication service
providers. The objective is to identify the level, relationship and impact of relational bond on
customer satisfaction and loyalty. Further, examines the mediating role of satisfaction between
relational bond and customer loyalty. Data were obtained from the sample of 200 customersin
Batticaloa based on stratified random sampling. The results revealed that relational bonds
significantly impacted on loyalty and satisfaction and also relational bonds impacted on customer
loyalty significantly through customer satisfaction. Therefore, it is reasonable to conclude that
customer loyalty can be created, reinforced and retained by developing strong relational bonds
between customers and service providers which could lead to customer satisfaction and that in turn
to customer loyalty.
