Abstract:
The key objectives of the study are to examine service quality direct effect on
customer loyalty and to examine the perceived value mediates the relationship
between service quality and customer loyalty in the telecommunication industry
in Sri Lanka.
Three hundred fifty-five questionnaires were received from the respondents, and
the data of 339 questionnaires were used for the data analysis. Regression
analysis was used to examine the direct effect of independent variable on
dependent variable. The mediating effect of perceived value on the relationship
between service quality and customer loyalty was analyzed using the process
method. Data analysis was conducted using SPSS 23 software package.
The key findings of the study are the overall service quality positively
influences customer loyalty. Moreover, each service quality dimension
significantly impacts customer loyalty of the telecommunication industry
customers in Sri Lanka. Perceived value shows a significant influence on
customer loyalty, and service quality positively influences perceived value.
Moreover, the results do not offer a full mediating effect of perceived value
towards the relationship between service quality and customer loyalty in the
telecommunication industry.
This study provides insights on the relative significance of perceived value and
service quality for building customer loyalty. Telecommunication companies
can enhance customer loyalty by providing excellent service quality that meets
the expectations of telecommunication customers in Sri Lanka. Future
researchers can examine the direct and indirect impact of the perceived value
and other factors that may affect customer loyalty based on different variables
and industries.
