The Impact of Perceived Quality, Value and Loyalty on the Customer Retention in the Telecommunications Sector of Pakistan

Abstract

Customer retention, considered to be the backbone of the telecommunication sector. From the past few years, in Pakistan customer retention has diverted marketing researchers attention over this important and essential element. Due to intense antagonism prevailing in the market, numerous service providers are losing their existing customers resulting a downfall in the market share, this practice is being followed over the past few years. The objective of the study was to observe the impact of as Perceived Quality, Value and Loyalty on customer retention in the telecommunication sector of Lahore, Pakistan. Methodology considered under this study is quantitative in nature. Survey research design is used for the study; self-administered questionnaires were used for the collection of data. The sample size consisted of 200 questionnaires that was disseminated and 172 questionnaires was received with a response rate of 85%. Selection of sample was made through the non-probability convenient sampling technique. Pearson-product moment correlation was used to find the relationship while the regression analysis was considered to the check the impact of the predictors on the customer retention in telecommunication sector of Pakistan. The finding of the study indicates that perceived quality, value and customer loyalty are positively related with the customer retention. This study provides a unique contribution in the literature, since few studies have been conducted, especially relevant to the to customer retention in telecommunication sector of Pakistan. The results of the study will be very helpful source for the service providers as it will help them to retain loyal customers of the telecommunication sector in Pakistan.