Customer Relationship Marketing, Customer Bonding, and Customer Satisfaction on Customer Loyalty in Telecommunication Companies
Abstract
The telecommunications industry is one of the most competitive industries with high penetration of digital technology, faster availability of data services, and innovations in telecommunications. The purpose of the present study is to empirically test a model that illustrates how customer relationship marketing (CRM) and customer bonding (CBD) affect customer loyalty (CLA) with customer satisfaction (CSA) as a mediating variable in the telecommunication company. A survey of the telecommunication customers was conducted with responses from 230 samples by maximizing the Partial-Least-Square Structural-Equation Modeling (PLS-SEM). The research results show that CRM and CBD are inferred to impact CLA and mediate CSA significantly. Compared to CRM, CBD has emerged as the most influential determinant of the proposed model. Marketing managers can adopt relevant business strategies and promote customer relationship marketing and customer bonding to achieve customer loyalty.
References
Abd-Elrahman, A.-E. H. (2023). Telecommunications service quality, customer satisfaction and customer loyalty in pandemic times. Management Research Review, 46(8), 1112–1131. https://doi.org/10.1108/MRR-08-2021-0595
Abd-Elrahman, A.-E. H., El-Borsaly, A. A.-E., Hafez, E. A.-E., & Hassan, S. A. (2020). Intellectual capital and service quality within the mobile telecommunications sector of Egypt. Journal of Intellectual Capital, 21(6), 1185–1208. https://doi.org/10.1108/JIC-07-2019-0180
Abd-Elrahman, A.-E. H., Hassan, S. A., El-Borsaly, A. A.-E., & Hafez, E. A.-E. (2019). A critical review of alternative measures of telecommunications service quality. International Journal of Quality and Service Sciences, 12(3), 247–263. https://doi.org/10.1108/IJQSS-08-2018-0066
Abdur Rehman, M., Osman, I., Aziz, K., Koh, H., & Awais, M. (2019). Get connected with your Takaful representatives. Journal of Islamic Marketing, 11(5), 1175–1200. https://doi.org/10.1108/JIMA-06-2019-0122
Abror, A., Patrisia, D., Engriani, Y., Evanita, S., Yasri, Y., & Dastgir, S. (2019). Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty. Journal of Islamic Marketing, 11(6), 1691–1705. https://doi.org/10.1108/JIMA-03-2019-0044
Adam, D. R., Ofori, K. S., Okoe, A. F., & Boateng, H. (2018). Effects of structural and bonding-based attachment on brand loyalty. African Journal of Economic and Management Studies, 9(3), 305–318. https://doi.org/10.1108/AJEMS-10-2017-0252
Ahmed, S., Al Asheq, A., Ahmed, E., Chowdhury, U. Y., Sufi, T., & Mostofa, Md. G. (2023). The intricate relationships of consumers’ loyalty and their perceptions of service quality, price and satisfaction in restaurant service. The TQM Journal, 35(2), 519–539. https://doi.org/10.1108/TQM-06-2021-0158
Ahn, J. (2022). Exploring perceived innovation in building customers’ patronizing behavior in the food delivery service context. International Journal of Quality and Service Sciences, 14(2), 258–273. https://doi.org/10.1108/IJQSS-08-2021-0114
Akgunduz, Y., Nisari, M. A., & Sungur, S. (2023). A roadmap focused on customer citizenship behavior for fast-food restaurants during COVID-19. International Hospitality Review. https://doi.org/10.1108/IHR-01-2023-0006
Alzaydi, Z. (2023). Examining the mediating effect of multi-channel integration quality in the relationship with service quality, customer satisfaction and customer loyalty in the Saudi banking sector. Management & Sustainability: An Arab Review. https://doi.org/10.1108/MSAR-12-2022-0061
Ayodeji, Y., Rjoub, H., & Özgit, H. (2023). Achieving sustainable customer loyalty in airports: The role of waiting time satisfaction and self-service technologies. Technology in Society, 72, 102106. https://doi.org/10.1016/j.techsoc.2022.102106
Balci, G., Caliskan, A., & Yuen, K. F. (2019). Relational bonding strategies, customer satisfaction, and loyalty in the container shipping market. International Journal of Physical Distribution & Logistics Management, 49(8), 816–838. https://doi.org/10.1108/IJPDLM-02-2019-0051
Banerjee, S., & Sreejesh, S. (2022). Examining the role of customers’ intrinsic motivation on continued usage of mobile banking: a relational approach. International Journal of Bank Marketing, 40(1), 87–109. https://doi.org/10.1108/IJBM-06-2021-0216
Bapat, D., & Khandelwal, R. (2023). Antecedents and consequences of consumer hope for digital payment apps services. Journal of Services Marketing, 37(1), 110–127. https://doi.org/10.1108/JSM-12-2021-0456
Boateng, H., Kosiba, J. P., Adam, D. R., Ofori, K. S., & Okoe, A. F. (2020). Examining brand loyalty from an attachment theory perspective. Marketing Intelligence & Planning, 38(4), 479–494. https://doi.org/10.1108/MIP-03-2019-0161
Carpenter, M., & Luciano, P. (2021). Emerging market orientation: advertising and promotion in the French telecommunications sector: 1952-2002. Journal of Historical Research in Marketing, 13(2), 112–138. https://doi.org/10.1108/JHRM-07-2020-0026
Dah, H. M., Blomme, R. J., Kil, A., & Honyenuga, B. Q. (2023). Customer Orientation, CRM Organization, and Hotel Financial Performance: The Mediating Role of Customer Satisfaction (pp. 113–135). https://doi.org/10.1108/S1745-354220220000018007
Dandis, A. O., Al Haj Eid, M. B., Robin, R., & Wierdak, N. (2022). An empirical investigation of the factors affecting customer lifetime value. International Journal of Quality & Reliability Management, 39(4), 910–935. https://doi.org/10.1108/IJQRM-12-2020-0412
Dandis, A. O., Al Haj Eid, M., Griffin, D., Robin, R., & Ni, A. K. (2023). Customer lifetime value: the effect of relational benefits, brand experiences, quality, satisfaction, trust and commitment in the fast-food restaurants. The TQM Journal. https://doi.org/10.1108/TQM-08-2022-0248
Dandis, A. O., Wallace-Williams, D. M., Ni, A. K., Wright, L. T., & Abu Siam, Y. I. (2022). The effect of brand experiences and relational benefits on loyalty in the fast-food restaurants. The TQM Journal. https://doi.org/10.1108/TQM-03-2022-0091
De Bruin, L., Roberts-Lombard, M., & De Meyer-Heydenrych, C. (2021). Internal marketing, service quality and perceived customer satisfaction. Journal of Islamic Marketing, 12(1), 199–224. https://doi.org/10.1108/JIMA-09-2019-0185
El Moussaoui, A. E., Benbba, B., & El Andaloussi, Z. (2023). Impact of logistics performance on the store image, consumer satisfaction and loyalty: a quantitative case study. Arab Gulf Journal of Scientific Research, 41(3), 226–239. https://doi.org/10.1108/AGJSR-09-2022-0201
Fazal-e-Hasan, S., Mortimer, G., Lings, I., & Kaur, G. (2020). How gratitude improves relationship marketing outcomes for young consumers. Journal of Consumer Marketing, 37(7), 713–727. https://doi.org/10.1108/JCM-10-2019-3446
Fu, X., & Ren, X. (2023). Hedonic adaptation to preferential treatment: the moderating effect of the structural characteristics of loyalty programs. Nankai Business Review International. https://doi.org/10.1108/NBRI-04-2022-0037
Garepasha, A., Aali, S., Bafandeh Zendeh, A. R., & Iranzadeh, S. (2021). Relationship dynamics in customer loyalty to online banking services. Journal of Islamic Marketing, 12(4), 830–863. https://doi.org/10.1108/JIMA-09-2019-0183
Gilboa, S., Seger-Guttmann, T., & Mimran, O. (2019). The unique role of relationship marketing in small businesses’ customer experience. Journal of Retailing and Consumer Services, 51(November 2018), 152–164. https://doi.org/10.1016/j.jretconser.2019.06.004
Gonçalves, S. M., & Silva, R. V. (2021). Discussing the potential of the institutional theory to leverage service-dominant logic advancements. European Journal of Management Studies, 26(1), 3–16. https://doi.org/10.1108/EJMS-01-2021-0004
Grayson, K. (2007). Friendship versus Business in Marketing Relationships. Journal of Marketing, 71(4), 121–139. https://doi.org/10.1509/jmkg.71.4.121
Hair, J., & Alamer, A. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027
Juusola, K., Boakye, K. G., Blankson, C., & Cao, G. (2023). A comparative examination of the motivating factors underpinning consumers’ loyalty toward credit card usage in the United States and France. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-11-2022-0482
Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: the role of customer satisfaction and image. International Journal of Contemporary Hospitality Management, 12(6), 346–351. https://doi.org/10.1108/09596110010342559
Kingshott, R. P. J., Gaur, S. S., Sharma, P., Yap, S. F., & Kucherenko, Y. (2021). Made for each other? Psychological contracts and service brands evaluations. Journal of Services Marketing, 35(3), 271–286. https://doi.org/10.1108/JSM-01-2020-0002
Kittur, P., & Chatterjee, S. (2021). Goods and services related brand image and B2B customer loyalty: effects of construal level. Journal of Business & Industrial Marketing, 36(1), 17–30. https://doi.org/10.1108/JBIM-06-2019-0284
Kwon, J., & Ahn, J. (2022). Role of customers’ multidimensional perceived equity in the mobile food delivery industry. Journal of Hospitality and Tourism Technology, 13(5), 955–971. https://doi.org/10.1108/JHTT-08-2021-0223
Leung, W. K. S., Chang, M. K., Cheung, M. L., & Shi, S. (2022). Understanding consumers’ post-consumption behaviors in C2C social commerce: the role of functional and relational customer orientation. Internet Research, 32(4), 1131–1167. https://doi.org/10.1108/INTR-11-2020-0664
Lowenstein, M. (2015). Strategic Customer Brand-bonding: Building Personalized Value and Loyal Behaviour through Obsessive Focus, Discipline, and Innovative and Engaging Communication. Journal of Creating Value, 1(1), 108–118. https://doi.org/10.1177/2394964315569636
Mainardes, E. W., & Freitas, N. P. de. (2023). The effects of perceived value dimensions on customer satisfaction and loyalty: a comparison between traditional banks and fintechs. International Journal of Bank Marketing, 41(3), 641–662. https://doi.org/10.1108/IJBM-10-2022-0437
Malhotra, N., Frech, B., Leeflang, P., Kim, Y.-A., & Higson, H. (2023). Understanding how satisfactory service relationships can be mutually beneficial in the higher education context. European Journal of Marketing, 57(2), 562–598. https://doi.org/10.1108/EJM-05-2021-0345
Marmat, G. (2022). Online brand communication and building brand trust: social information processing theory perspective. Global Knowledge, Memory and Communication, 71(6/7), 584–604. https://doi.org/10.1108/GKMC-12-2020-0195
Matsuoka, K. (2022). Effects of revenue management on perceived value, customer satisfaction, and customer loyalty. Journal of Business Research, 148, 131–148. https://doi.org/10.1016/j.jbusres.2022.04.052
Maupa, H., Muis, M., Cokki, & Sulaiman, S. (2023). Marketing Digital Konsep Entreprenurship UMKM (1st ed., Vol. 1). Nas Media Pustaka.
Milan, G. S., Slongo, L. A., Eberle, L., De Toni, D., & Bebber, S. (2018). Determinants of customer loyalty: a study with customers of a Brazilian bank. Benchmarking: An International Journal, 25(9), 3935–3950. https://doi.org/10.1108/BIJ-08-2017-0231
Mittal, S., & Maity, M. (2022). Is relationship marketing investments–customer gratitude–customer loyalty linkage influenced by contextual and individual moderators? An emerging economy perspective. Journal of Indian Business Research, 14(4), 492–519. https://doi.org/10.1108/JIBR-11-2021-0375
Negi, R., & Ketema, E. (2013). Customer‐perceived relationship quality and satisfaction. African Journal of Economic and Management Studies, 4(1), 109–121. https://doi.org/10.1108/20400701311303186
Ojeme, M., & Robson, J. (2020). Revisiting the mediating effect of normative commitment in B2B bank relationships in Nigeria. International Journal of Bank Marketing, 38(5), 1159–1175. https://doi.org/10.1108/IJBM-02-2020-0068
Osman, I., Abdur Rehman, M., Mohy Ul Din, S., Shams, G., & Aziz, K. (2022). Let’s get acquainted: an empirical study on takaful customer-service provider relationships from Saudi Arabian perspectives. Journal of Islamic Marketing, 13(11), 2209–2231. https://doi.org/10.1108/JIMA-06-2020-0175
Potdar, V., Joshi, S., Harish, R., Baskerville, R., & Wongthongtham, P. (2018). A process model for identifying online customer engagement patterns on Facebook brand pages. Information Technology & People, 31(2), 595–614. https://doi.org/10.1108/ITP-02-2017-0035
Rodríguez, C. M., & Wilson, D. T. (2002). Relationship Bonding and Trust as a Foundation for Commitment in U.S.–Mexican Strategic Alliances: A Structural Equation Modeling Approach. Journal of International Marketing, 10(4), 53–76. https://doi.org/10.1509/jimk.10.4.53.19553
Scarlett, G., Reksoprawiro, R., Amelia, N., & Wibowo, A. J. I. (2021). Institutions and technology in the value co-creation process of restaurant consumers: a service-dominant logic perspective. The TQM Journal. https://doi.org/10.1108/TQM-10-2020-0255
Sharma, N. (2022). How core, technical and social components of business relationship value drive customer satisfaction and loyalty in high tech B2B market. Journal of Business & Industrial Marketing, 37(5), 975–994. https://doi.org/10.1108/JBIM-12-2020-0554
Sigala, M. (2018). Implementing social customer relationship management. International Journal of Contemporary Hospitality Management, 30(7), 2698–2726. https://doi.org/10.1108/IJCHM-10-2015-0536
Skjølsvik, T. (2018). Combining goods and service-dominant logics in purchasing strategies. Journal of Business & Industrial Marketing, 33(8), 1087–1099. https://doi.org/10.1108/JBIM-09-2017-0220
Smith, E. A. (2022). Technology, market change and the privatisation of communications in Britain. Journal of Management History, 28(2), 215–235. https://doi.org/10.1108/JMH-02-2021-0012
Sulaiman, S. (2018). Pengaruh Resource Based View dan Dynamic. Capability Terhadap Daya Saing Strategis dan Kinerja Ekspor di Sulawesi Selatan [Disertasi]. Universitas Hasanuddin.
Sulaiman, S. (2022). Analisis Determinan Loyalitas Nasabah Bank Muamalat Indonesia. Jurnal Multidisiplin Madani, 2(3), 1355–1366.
Sulaiman, S., Maupa, H., Kadir, A. R., & Muis, M. (2017). Factors Affecting the Export Performance of Companies in South Sulawesi, Indonesia. Scientific Research Journal (SCIRJ), V(X), 83–87.
Tegambwage, A. G., & Kasoga, P. S. (2022). Antecedents of customer loyalty in Islamic banking: evidence from Tanzania. Journal of Islamic Accounting and Business Research, 13(4), 701–713. https://doi.org/10.1108/JIABR-10-2021-0288
Tseng, T. H., Lee, C. T., Huang, H.-T., & Yang, W. H. (2022). Success factors driving consumer reuse intention of mobile shopping application channel. International Journal of Retail & Distribution Management, 50(1), 76–99. https://doi.org/10.1108/IJRDM-08-2020-0309
Vargo, S., & Lusch, R. (2018). The SAGE Handbook of Service-Dominant Logic. SAGE Publications Ltd. https://doi.org/10.4135/9781526470355
Venkatakrishnan, J., Alagiriswamy, R., & Parayitam, S. (2023). Web design and trust as moderators in the relationship between e-service quality, customer satisfaction and customer loyalty. The TQM Journal. https://doi.org/10.1108/TQM-10-2022-0298
Yen, Y.-S., Chen, M.-C., & Su, C.-H. (2020). Social capital affects job performance through social media. Industrial Management & Data Systems, 120(5), 903–922. https://doi.org/10.1108/IMDS-09-2019-0473
Yi, H.-T., Yeo, C., Amenuvor, F. E., & Boateng, H. (2021). Examining the relationship between customer bonding, customer participation, and customer satisfaction. Journal of Retailing and Consumer Services, 62, 102598. https://doi.org/10.1016/j.jretconser.2021.102598
Yim, C. K. (Bennett), Tse, D. K., & Chan, K. W. (2008). Strengthening Customer Loyalty through Intimacy and Passion: Roles of Customer–Firm Affection and Customer–Staff Relationships in Services. Journal of Marketing Research, 45(6), 741–756. https://doi.org/10.1509/jmkr.45.6.741
Zhang, J. A., Chen, S., Walton, S., & Carr, S. (2022). Green brand ambidexterity and consumer satisfaction: the symmetric and asymmetric approach. Journal of Consumer Marketing, 39(5), 488–504. https://doi.org/10.1108/JCM-02-2021-4483
Zhang, L., Yi, Y., & Zhou, G. (2022). Cultivate customer loyalty in national culture: a meta-analysis of electronic banking customer loyalty. Cross Cultural & Strategic Management, 29(3), 698–728. https://doi.org/10.1108/CCSM-08-2021-0155
Copyright (c) 2023 Haris Maupa, Cokki Cokki, Syarifuddin Sulaiman (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
