master thesis _ factors affecting customer loyalty

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Geneva Business School

Master Program in International Management

Factors affecting customer loyalty

(Within Saudi Mobile Telecommunication Industry)

Authors:

Mohamed Ali Salem, 343

Supervisor: Prof. Mokhtar Al Hashmi

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Acknowledgements

It’s a pleasure to present our sincere thanks to all people who supported us to accomplish this

thesis through their time , effort and motivited words. also we express our appreciation to our

supervisor Prof. Mokhtar Al Hashmi for his time, valued advices and helpful guidance.

We would like to thank all the students in Geneva Business School, who participated in the

survey, without precious replies to the questionnaire we undoubtedly cannot achive this stage.

Thank you all for your help and valuable time and your motivation make us ambitious to complete

that way to next achievement.

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Table of contents

Acknowledgements ..................................................................................................................................... 2

CHAPTER 1: Introduction ............................................................................................................................ 7

1.1. Introduction ...................................................................................................................................... 7

1.2. Research Background ........................................................................................................................ 7

1.3. Research Model ................................................................................................................................ 9

1.4. Statement of the Problem: ............................................................................................................... 9

1.5. Aim of the Study ............................................................................................................................. 11

1.6. Research Questions ........................................................................................................................ 11

1.7. Significant of the study ................................................................................................................... 12

1.8. Structure of the thesis .................................................................................................................... 12

1.9. Scope, Assumptions, and Limitations of the Study ......................................................................... 13

1.10. Definition of terms .......................................................................................................................... 14

CHAPTER 2: Literature review ................................................................................................................. 15

2.1. Introduction .................................................................................................................................... 15

2.2. Relationship Marketing ................................................................................................................... 15

2.3. Service quality ................................................................................................................................. 16

2.4. Price perception .............................................................................................................................. 18

2.5. Trust ................................................................................................................................................ 19

2.6. Satisfaction ...................................................................................................................................... 21

2.7. Customer loyalty ............................................................................................................................. 22

CHAPTER 3: Methodology ........................................................................................................................ 24

3.1. Introduction .................................................................................................................................... 24

3.2. Research Method ............................................................................................................................ 24

3.3. Research Design .............................................................................................................................. 25

3.3.1. Research Model .............................................................................................................................. 25

3.4. Population ....................................................................................................................................... 26

3.5. Sampling plan .................................................................................................................................. 26

3.6. Questionnaire Design ...................................................................................................................... 26

3.7. Reliability ......................................................................................................................................... 27

CHAPTER 4: Presentation of Data/Empirical Data ................................................................................ 28

4.1. Introduction .................................................................................................................................... 28

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4.2. Sampling analysis ............................................................................................................................ 28

4.2.1. Respondents’ Nationality ................................................................................................................ 28

4.2.2. Respondents’ Age ........................................................................................................................... 29

4.2.3. Respondents’ Gender ..................................................................................................................... 29

4.2.4. Respondents’ Occupation ............................................................................................................... 30

4.2.5. Respondents’ Operator ................................................................................................................... 31

4.2.6. Respondents’ multiple Cell Numbers ............................................................................................. 32

4.2.7. Secondary Mobile network Operator ............................................................................................. 33

4.2.8. Home Network Operator ................................................................................................................ 34

4.2.9. Respondents’ Package .................................................................................................................... 34

4.2.10. Years of Using the Line .................................................................................................................... 35

4.2.11. Factors affecting selection for Cell network ................................................................................... 36

4.2.12. Respondents’ Change behavior ...................................................................................................... 37

CHAPTER 5: Analysis of Data ................................................................................................................... 39

5.1. Introduction .................................................................................................................................... 39

5.2. Statistical Analysis ........................................................................................................................... 39

5.3. Data Reliability ................................................................................................................................ 39

5.4. Reliability Statistics ......................................................................................................................... 39

5.5. Frequencies ..................................................................................................................................... 40

5.5.1. Service quality ................................................................................................................................. 40

5.5.2. Price ................................................................................................................................................ 41

5.5.3. Value offered .................................................................................................................................. 43

5.5.4. Trust ................................................................................................................................................ 44

5.5.5. Satisfaction ...................................................................................................................................... 45

5.5.6. Customer Loyalty ............................................................................................................................ 46

CHAPTER 6: Discussion and Interpretation of Findings ........................................................................ 48

6.1. Introduction .................................................................................................................................... 48

6.2. Finding ............................................................................................................................................. 48

6.2.1. Findings from sampling analysis ..................................................................................................... 48

6.2.2. Finding of the survey results ........................................................................................................... 48

CHAPTER 7: Conclusion ............................................................................................................................. 50

7.1. Introduction: ................................................................................................................................... 50

7.2. Conclusion ....................................................................................................................................... 50

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7.3. Recommendations .......................................................................................................................... 50

7.4. Limitations....................................................................................................................................... 51

8. Bibliography: ................................................................................................................................... 53

Appendix .................................................................................................................................................... 55

Research questionnaire .............................................................................................................................. 55

Figure List

Figure 1: Research Model ............................................................................................................................. 9

Figure 2 Research Model ............................................................................................................................ 25

Figure 3 - Respondents Nationality ............................................................................................................. 28

Figure 4- Respondents' Age ........................................................................................................................ 29

Figure 5- Respondents' Gender .................................................................................................................. 30

Figure 6 - Respondents’ Occupation ........................................................................................................... 31

Figure 7 - Respondents’ Operator ............................................................................................................... 32

Figure 8 - Multiple Cell Numbers ................................................................................................................ 33

Figure 9 - Secondary Cell Operator ............................................................................................................. 34

Figure 10 - Home Network Operator .......................................................................................................... 34

Figure 11 - Respondents’ Package .............................................................................................................. 35

Figure 12 - Years of Using the Line .............................................................................................................. 36

Figure 13 - Factors affecting selection for Cell network ............................................................................. 37

Figure 14 - Respondents’ Change behavior ................................................................................................ 38

Figure 15- Question orders (service quality)............................................................................................... 41

Figure 16- Question orders (Price) .............................................................................................................. 43

Figure 17- Question orders (Value offered) ................................................................................................ 44

Figure 18- Question orders (Trust) ............................................................................................................. 45

Figure 19- Question orders (Satisfaction) ................................................................................................... 46

Figure 20- Question orders (Loyalty) .......................................................................................................... 47

Table List

Table 1- Reliability Statistics ....................................................................................................................... 39

Table 2- Service quality ............................................................................................................................... 41

Table 3- Price............................................................................................................................................... 42

Table 4- Value offered................................................................................................................................. 43

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Table 5- Trust .............................................................................................................................................. 45

Table 6- Satisfaction .................................................................................................................................... 46

Table 7- Customer Loyalty .......................................................................................................................... 47

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CHAPTER 1: Introduction

1.1. Introduction

This research is conducted to explore the key aspects influence the Saudi customers’

buying behavior towards the Mobile network providers and how these aspects influence

consumer trust, satisfaction level thus the brand loyalty.

The introduction chapter allows readers to put the scope of the research into perspective.

Besides, it will explain the purpose of research.

The research background, research problem, research questions, research structure,

definitions of relevant academic terms and limitation will be presented throughout the

search sections .

1.2. Research Background

There are a lot of companies that competing with similar products and services in the

same markets (Amish,2009). As the competitive surroundings becomes rougher,the main

problem is to retain and keep loyal customers who will participate in a profitable

relationship for a long term with the organizations (Tseng, 2007).

Many studies mentioned that the long and loyal customer relationships are valuable for

a company in increasing sales and profits (Reichheld & Sasser, 1990). Other studies

support the views to believe the customer loyalty is one of the sustainable sources of

competitive advantage (Bharatwaj et al., 1993).

The telecom industry is one of the main industries in the world and provide many

communications channels like; voice , data, and the internet fiber optic.

Telecommunication influences the global economy and Telecommunications services

revenue worldwide will grow from $2.2 trillion in 2015 to $2.4 trillion in 2019 — a

combined average growth rate of 2.3 percent — according to a new report from Insight

Research Corp.

The rivalry is becoming stiff and to keep the sustainable competitive advantage, telecom

industry is obliged to provide more ideas with new innovation, invest more capital and

dedicate more sources for customer satisfaction, and it depends on the ongoing

relationships of its clients for long term success and that will happen through a long-term

repeat purchase business, where a high level of participation from the customers is must.

(Hurley, 2004).

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Today's Cell phone is a pervasive tool for consumer look after to enjoy life. Mobile phones

exceeded its role of communications to become more advanced to become a part of the

user daily live. It has become such an important feature of a user's daily life and behavior

that it has moved from being a just a 'technological object' to a key and major 'social

object'.

This Research explores and present a clear insights of the factors affecting the Saudi

customers’ loyalty towards the Mobile network provider and in details how these factors

influence the level of trust, satisfaction and accordingly the customer loyalty. This

Research examines the diversity in the importance given by various people groups during

the cycle of choosing a cell phone network operator.

Recently, Cell phones communication has been spread exceptionally in all corner around

the world, and Saudi Arabia is not exceptional. Saudi Arabia has adopted information and

communications technologies as tools for development. In Saudi Arabia, Cell phone

companies started to penetrate the market after 1998.

In Saudi Arabia operators licensed By Communications and IT Commission (CITC) looking

for engaging customers into their networks. Different measures are being taken by

Mobile network operators to survive in the market.

All Mobile operators are struggling to earn more new clients into their networks and

retain the existing. This trend results in a very hard competition. The deferent measures

are taken by different operators including reducing tariffs to provide free SMS and

Megabytes, and free calls at off-peak periods.

This Research aims to investigate the influence of all taken endeavors and actions from

the operator’s side on Mobile phone customers in selecting their Mobile network

operators and improve their brand loyalty.

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1.3. Research Model

Figure 1: Research Model

This research hypothesizes relationship marketing orientation as multi-dimensional

constructs consisting of two behavioral components: Trust; and Satisfaction. The study

will examine each item and present the methodology along with the results from research

analysis.

1.4. Statement of the Problem:

There are many studies about customer loyalty and relationship marketing in various

industries; many researchers show a correlation and difference between relationship

marketing, trust, satisfaction and customer loyalty. For example, Prabhakaran and Satya

(2003) it mentioned that the rise in satisfaction of the customer is needed to maintain

and keep a loyal customer base in the banking industry. Moreover, their research

considers that there is a relevance between the quality of service and customer

satisfaction. Also, there are another study at the banking sector found that the customer

satisfaction is linked with high service quality.

More recently studies in the hospitality sector are stated that the high level of service

quality will direct to a strong customer loyalty. In parallel the loyal customer is linked to a

high level of customer satisfaction.

Heskett, Sasser and Schlesinger (1997) argued about the profit and growth are motivated

primarily by customer loyalty which it is a direct result of customer satisfaction. Yi (1990)

did an extensive and comprehensive review of the various customer satisfaction studies

and concluded that many of the studies find that customer satisfaction influences the

purchase intention, as well as post-purchase attitude.

Relationship Marketing

Service Quality

Value Offers

Price Perception

Relationship Quality

Trust

Satisfaction

Customer

Loyalty

Choice/Keep the

operator

Change the

operator

High

Low

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Although, there is no insight or research conducted to study factors affecting the

customer loyalty in the telecom industry in Saudi Arabia.

So, Research is adopting the concept that there is a solid connection between the quality

of services, values offered and price and customer trust, satisfaction and customer loyalty

connected with each other within many industries.

People in Saudi Arabia has become a busy day by day and more professional than the

previous. They need to share more information with each other because of the

demographics have changed as a result of the globalization era.

Smart Mobile phone sets injected a huge variation change in the telecom sector in Saudi

Arabia. Communications structure has also changed. People in different professions and

income levels use the Cell phone extensively for this purpose the professional and

personal purpose too.

Women come out of the four walls; They work with male hand in hand. They are dealing

with different types of professions. In this case the information necessary to respond to

the changing environment.

Saudi Arabia has five Mobile Network Operators licensed to do business in the country.

Three are currently in real operation. These are STC, which is the largest, Mobily, and Zain

and the other two are virtual Mobile network operators. These are Lebara and Verizon.

Based on the research some new Mobile network operators being licensed from time to

time by Communications and IT Commission (CITC).

This makes competition in the telecommunications market very stiff. All Mobile Network

Operatores are struggling to earn more new customers into their networks and retain the

existing customer as well.

The problem is determining which factor influenced more the consumers during the

selection cycle of their mobile network operators and the factors affect the existing

customer’s trust and satisfaction thus the brand loyalty.

Today, it becomes imperative to know factors that directly influence consumers'

purchasing of cell phone services decisions. Moreover, also it is important to differentiate

between the purchasing behavior in choosing between the various Mobile phone

operators and change aspects referring to the reasons that affect the change and the

connection between that and the customer's trust and their satisfaction level.

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1.5. Aim of the Study

This study aims to cover lacks of previous studies. The study can cover what customers

buy, what features do they look for, the factors that influence the procedures of making

a purchase decision, and the level of satisfaction. All of which are useful in the perfect

understanding of the pattern of consumer behavior.

By reviewing the connection between each construct in the search digram as (figure 1) ,

It is planned for this study to test the connection between the six structures in the shape

of (Service Quality, Value offers, Price Perception, Trust, Satisfaction, and Customer

loyalty), which could be a reference to the Saudi telcom industry. Also, evaluate the

impact of mentioned factors on customer loyalty in the Saudi Mobile telecom sector.

The research was aimed to address the below specific objectives;

1. To find the connection between service quality and customer loyalty in Saudi

telecom industry.

2. To recognizethe the connection between price and customer loyalty in Saudi

telecom industry.

3. To determine the relationship between added value and customer loyalty in Saudi

telecom industry.

4. To discover out that the factors which influence customers to choose Mobile

phone operators.

5. To find out the reasons behind the customers switching to other Mobile phone

operators.

6. To get more intelligence information whether there are any differences among

consumers groups regarding the factors influencing Mobile phone operators’

choice.

1.6. Research Questions

Mobile network providers have applied many relationship marketing methods to reality.

However, many of those methods did not work efficiently; there are phenomena it

shows that often happens behavior convert between most of the targeted customers.

In order to solve this phenomena our research is raised several questions as below;

1. What is the connection between service quality, value offers, price perception

and trust, customer satisfaction in Saudi telecom industry?

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2. Is there a relation between trust, satisfaction, and customer loyalty in Saudi

telecom industry?

3. What are the Factors Influencing Consumers’ mobile phone operators’ choice

Decisions?

4. What are the features Influencing Consumers’ mobile phone operators’

Switching Behavior?

1.7. Significant of the study

The finding of this study will assist mobile operators in their work and the strategic plan

for marketing. The outcomes of this research in an integrated comprehensive framework

for directors of mobile network operatore in Kingdom of Saudi Arabia to grasp the vital

relationship between different dimensions of service quality, price and added value and

how the relation quality could be enhanced. It is clear that there is no in-depth study

covering these issues. This research is a step in the extensive coverage of the gap.

This research provides all of the development theory of academics and practical

implementation of the marketing managements.

It is anticipated that the mobile operators are concerned about their clients in response

to the differentiation factors published as they are helpful for marketers to realize the

effectiveness of differentiation factors result from the consumer perspective. Marketers

may consider the evidence from these findings and improve customer retention and

satisfaction strategies.

It is also predictable that the society will gain advantages from the outputs of this research

because this will serve the knowledge base in Saudi Arabia. Academic world will get many

values, the telecom industry and the rest of the service industries.

Research was expected to include all cell phone users of mobile operators in Saudi Arabia.

However, the geographical scope is restricted to Riyadh city, the main city in the Kingdom

of Saudi Arabia, which is the most densely populated capital with a relatively high lifestyle

and become more focused on cell phone users.

This research is restricted to only three differentiation factors (service quality, price, and

added value).

1.8. Structure of the thesis

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This study organized into seven chapters, chapters one to seven. Chapter one present the

background and the motivation behind the study, objectives, questions, significance of

the study and research scope.

Chapter two introduce the review of literature relevant to the research scope, providing

excerpt of previous studies relating to the study objectives.

Chapter three present the methodology including design of the research, sampling plan,

method of data collection and data analysis.

Chapter four presents the analyzed collected data while chapter five describe the tools

used in the empiracal literature while chapter six discuss and interpret the finding ,

chapter seven includes the limitation , summary, conclusions, and recommendations.

1.9. Scope, Assumptions, and Limitations of the Study

This research was conducted to explore and understand the perception of behavioral

consumer choice of providers of mobile communications services and the impact of this

factors on the customer loyalty.

A general notion, consumers' perception is wide, according to the quality of service, price,

and availability of the product, promotion, etc.

The competition between providers of mobile phone services in Kingdom of Saudi Arabia

is stiffer than before. They compete for the acquire of new customers and retain existing

customers by price adoption.

According to the study, service quality, values offers, and price are also important factors

to a large extent the impact on consumers in the vast Mobile phone market in Saudi

Arabia.

However, one of the main limitation that this research is still expected to be a need for

further research efforts to study the additional variables (corporate image; brand image)

in Saudi Arabia.

The Mobiel phone market is the biggest in Saudi Arabia, the other concern is that the

finding of this study is not directly comparable with those of other research studies, there

is virtually no previous research to measure all of these factors combine to perceive

consumers of Mobile phone operators sectors at once.

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Also, the measurement of the factors that affect the perception of consumers in the

telecommunications industry, making it difficult to compare because of the lack of related

literature.

This research focused only on a few of the factors that are taken from literature and

theories that affect customer perception towards mobile phone operators’ customers. In

addition, several other factors, like consumer learning and memory, and the changing

demographics like education, lifestyle, and the effect of gender can also affect consumer

decision towards the service providers.

1.10. Definition of terms

Term Definition

ICT information and communications technology

Ported Number Ported Numbers are those transferred from the original Mobile network to another with the same Prefix of their original Network.

VMNO Virtual Mobile Networks (MVNO), is a wireless

communications services provider that does not

own the wireless network infrastructure over

which the MVNO provides services to its

customers. An MVNO enters into a business

agreement with a Mobile network operator to

obtain bulk access to network services at

wholesale rates, then sets retail prices

independently.

(En.wikipedia.org, 2016)

CITC Communications and information technology commission

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CHAPTER 2: Literature review

2.1. Introduction

Embodies this chapter review of the literature relevant to the subject of research and

classified into three thematic areas; relationship marketing, relationship quality and

customer loyalty. Discuss these thematic areas in the details of the theory, and also from

the results of previous work or literature.

2.2. Relationship Marketing

Relationship Marketing is a way of marketing expanded and exposed from the consumer

direct response, marketing focusing on building a long-term connection with customers

instead of individual transactions.

Relationship marketing includes the client to study the behavior and understand it such

as needs , wants and demands by supplying a group of products or services.

Grönroos defined relationship marketing as activities performed to develop and enhance

a successful long-term relationship with clients. (Gronroos, 2007)

Hougaard defined relationship marketing as a behavior relationship marketing for the

company to establish and maintain a profitable relationship with customers for win win

situation. (Hougaard et al., 2002)

Grönroos mentioned that the purpose of relationship marketing is to identify and

establish, maintain, and enhance relationships with customers and other stakeholders.

(Gronroos, 2007)

The marketing theory of the relationship includes the success of the results related to

particular aspects of the cooperative relations that characterize successful relational

exchange. (faculty.mu.edu.sa, 2016)

Arnett and Badrinaray depicted the jurisdiction of relationship marketing and the

company's ability to identify, develop, and manage collaborative relationships with the

main clients of trust and commitment to the relationship and communications.

(faculty.mu.edu.sa, 2016)

Wolf and others (2001) Explained that the different results of satisfaction and loyalty have

come to different relationship terms.

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Relationship marketing is a takeoff from the traditional transactional behavior to develop

clients as partners.

With intense competition, an other model which is focused on customers and

relationships instead of markets and products now is required.

2.3. Service quality

Service quality defined as an attitude or judgment relating to the overall excellence or

superiority of the service. Also, it expressed as a difference between expectations and

perception of a customer regarding service performance. Likewise, according to

Gronroos’s study, service quality is a comparison between customer expectations with

the service they perceive to have received. In another word, service quality defined as a

tool that evaluate the gap between expectations and perception of a customer. The

importance of the service quality in this era of fierce competition cannot neglect.

Kim et al. stated that to survive and remaina competitive advantage, all businesses should

develop the quality of service that ultimately will lead towards customer’s satisfaction

and loyalty. Study of Huang & Liu stated that higher level of service quality is supposed to

be an efficient way to improve customer satisfaction, trust, and loyalty. Therefore,

researchers derived that service quality maximize the perceived value, trust, and

customer satisfaction.

Leisen and Vance defined quality of service as one of the main tools to assist in creating

the significant competitive advantage when it is a useful differentiation factor.

The quality of service was started in the 1980s and the trend has been spread all over the

world when marketers realized that only quality products can be ensured the competitive

advantage. (Wall et al., 2002)

As a result, the quality of service can use as a competitive advantage and which is linked

to customer satisfaction and also leads to the consumer and to buy in the future and

loyalty

In particular, consumers prefer quality service at aprice, and other cost elements fixed.

(Boer and Holt, 2005).

It has become an important side distinct products and services exhibit. (Wall et al., 2002)

According to them, it is also a competitive advantage to continue at the time that other

competitors are not able to replicate the benefits of service quality. Moreover, the

necessary quality of service for the provider of telecommunications service to ensure the

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quality of service for the establishment and maintenance of loyalty and customer

profitability (Zeithaml, 2000; Leisen and Vance, 2001).

Condition of service delivery systems can allow business executives to learn about the

real customer feedback and satisfaction on their telecommunications services. Since

reflecting the quality of customer expectations about the product or service.

In fact, consumer perception of the quality of service at the time he or she will decide

next whether or not to buy the service may better explain repeat purchasing behavior.

(raco.cat, 2016)

Crosby and others. (2003) Examined how to create perceptions of quality and maintain in

the minds of consumers. Description of Phusavat and Kanchana (2008) represents the

quality as a main competitive priority. Given the quality of the most of the weight of

36.4%, while the provision of services, and customer-focus, and expertise in 20.4, 12.9

and 12.5% respectively. The weights of the remaining 9.8% of the costs and 8.0% for

flexibility.

From another perspective, Omotayo attempted to find the connection between customer

retention and customer loyalty in the telecom industry in Nigeria. They got that, if

retention is not managed in a proper way customer loyalty perhaps will be lost. Their

research provided a strong relationship between satisfaction and retention in the

communication industry in Nigeria. The findings of the study showed strong support for

the application of customer service to enhance customer retention. The results also

revealed that the participants in this study have an affirmative effect of the ability of their

own telecommunications company to meet their changing needs. (saycocorporativo.com,

2016)

Quality always one of the main concern to the consumers, based on their individual

purchasing power, buying behavior, and demand, and taste, and standards of fashion and

is clear that competitive markets that offer important differentiation strategies.

Therefore, it seems an absolute necessity for the mobile communications service provider

to directly communicate with potential consumers to measure the quality attributes are

possible.

In the Mobile phones sector in China. They visualize factors with quality service and

precedents to assess the overall quality of service to customers, rather than the

dimensions or composition components. Here, the results was that competition between

the two mobile phone providers is more tough than before. This rivalry is not only to

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guarantee the quality of the network, a huge investment in network expansion and

upgrading but also to acquire and retain customers through reducing the price.

2.4. Price perception

Price considered as an instrument that highly affects the purchasing behavior of the

customer and it is a major element in the improvement of marketing strategies and

creating customer satisfaction and trust. The researchers agree on the fact that a

perception price is a vital tool in determining the behavior of large customers, either

because it increases or decreases customer satisfaction and trust Understanding the

behavior of the client towards price perception assists the companies to develop such

pricing strategies that create customer trust and satisfaction.

The consumer pays a certain monetary or financial value for the service. The price has a

major influence on the buying behavior. Price may vary perception of one individual to

another. Sometimes, the highest price that may adversely affect the consumer's decision

to buy (Ping and Wang, 2006). It has a price perception also the relationship with search

Price (Lichtenstein et al., 1993).

Price plays a main role, especially in the telecommunications market to providers of

mobile communications service (Coleman, 2000). This includes the purchase price, rental

and call fees

Oliver (1997) realized that the consumer makes the relationship between price and

service quality. Two methods can measure Price perception:

One is the price reasonable, and the other is value for money (Cheng et al., 2008). More

than once, and the customer is a high price as a reflection of good quality (Chitty et al.,

2007). Research has shown that confidence and satisfaction may affect the price by (Kim

et al.,2008).

Customers usually choose service providers to rely heavily on the perceived price.

monetary value customer are ready to pay is different due to his needs and wants. Thus,

perceptions price for the similar service or product may differ between individuals. Price

increases seen by consumers may adversely affect the prospects of buying (Ping and

Wang., 2006).

If the consumer understands the price as equity, they are willing to make this deal with

the provider.Based service on previous studies, Zheng et al. (2008) suggested that the

perception of the price can be measured by two dimensions: the first is affordability,

which reflects the way in which the price is seen by customers as compared to that of

competitors. Another is value for money, which means the relative position of the service

provider regarding the price.In a year, are considered high-quality services to more

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expensive than their counterparts with low-quality (Chitty et al., 2007). Many researchers

pointed out that satisfaction influences the price of customer perception and confidence

(Oliver 0.1999; Ping Wang 2006; Cheng et al. 2008; Kim et al-2008) Customers usually turn

mainly due to some pricing issues, for example, is seen rising prices, and pricing practices

unfair or deceptive (Ping and Wang, 2006).

Therefore, to increase customer loyalty, it is essential for service firms to manage their

customers' price perceptions actively.

Example; implementation of attractive pricing, and provide a mixture at a reasonable

price, low price, without reducing quality and so on.

Price is the medium of exchange with may enable us to get a product or a service.‟

Researchers like Ali et al., (2010) posit that customers are disinclined to disburse less to

have satisfaction this implies that low prices directly associated with a high degree of

satisfaction and high quality associated with higher customer satisfaction. A satisfied

customer would have more price forbearance.‟ According to Jacoby and Olson, Whoever

is of two types objective price (the actual price of the product) and perceived price (the

consumer encodes the price). "

2.5. Trust

Trust, which exists when one party has confidence in an exchange partner’s reliability and

integrity, is a central component in all relational exchanges (Morgan and Hunt, 1994). As

Dwyer, Schurr, and Oh (1987) argue, trust is important because it provides a basis for

future collaborations. In social psychology, a consensus emerges that trust consists of two

essential elements, Confidence in the partner and trust in the partner welfare.

Honesty is the belief that one’s partner stands by its word. Benevolence is the belief that

one’s partner is interested in the company’s Social welfare, and will not take unexpected

actions which will have an adverse impact on the business (Geyskens and Steenkamp,

1995). It seems that if partners in a trust relationship with each other more, they are more

emotionally and less consciously weighing the benefits against the costs of such

relationship.

They are more emotionally and less consciously weighing the benefits against the

expenses of such a relationship (Wetzls et al., 1998). Kramer (1999) assumed that the

confidence of both thinking and feeling aspects to it and that confidence and socially

oriented. He knew logical confidence choice by recognition of the motives of others.

Mishra (1996) assumed that there are four dimensions of trust (i.e., reliability, openness,

and efficiency, and anxiety) found that communication is crucial to show all aspects of the

trust (Mishra et al., 2008).

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In the development of trust and expectations trustors "cognition about secretaries

concerned.

Therefore, the development of trust to be inconclusive to establish a successful long-term

relationship between all parties concerned considered. In the face of complex service

markets, customers tend to act and make a purchase decision based on previous

experiences consuming (Doney and Cannon, 1997).

Customers will have trust in the ability of service providers are likely to be willing to

commit to the service to meet the expectations of the relationship (Morgan and Hunt,

1994). Even when they are a changing environment, customers believe that the service

provider will take into account the interests of customers, rather than do anything

harmful to the development of relations (Liu et al., 2008). Meyer and others (1995).

Customers will have trust in the ability of service providers are likely to be willing to

commit to the service to meet the expectations of the relationship (Morgan and Hunt,

1994). Even when they are a changing environment, customers believe that the service

provider will take into account the interests of customers, rather than do anything

harmful to the development of relations.

Perception of organizational trust by proposing three key elements such as the ability

trustee, charity trustee, and guardian of safety. These three dimensions were provided

more support and adopted by many researchers to trust in subsequent studies. (Lin and

Deng, 2005; Aydin Ozer 0.2005; Tian et al., 2008). In addition to a cumulative process in a

relationship was considered to construct trust by the party's ability to implement its

obligations on an ongoing basis (Doney and Cannon, 1997; Aydin Ozer, 2005). Confidence

is imperative for long-term relationships and enhances customer loyalty.

According to Errol the level of someone’s trust in another party’s capability and his/her

performance based on expected ethical principles is defined as trust. (Errol et al., 2005).

Believe of one party that another party will fulfill his/her need is known as Trust. It has

been discussed broadly in literature. (Errol et al., 2005)]. Trust lead to long-term loyalty

and relationship between two parties becomes stronger (Singh & Sirdeshmukh, 2000).

According to Rauyruen and Miller (2007), there two level of trust. Customer’s trust on one

specific sales representative is at first level. Whereas trust on the institution is at the

second level. If trust exists, then it is obvious that person is likely to purchase something.

Customer’s belief on trust regarding service is the delivery of quality services that meets

customer’s expectations. (Anderson&Weitz, 1989). According to Herbig (1994),

corporates reputation is the stability of its activities over time. Trust has the highest

importance in assessing the quality of products and services from customers‟ viewpoint

as reputation originates from the quality of its goods and services. (Paul et al., 2009).

21 | P a g e

2.6. Satisfaction

Satisfaction has defined as a consumer’s evaluative judgment related to the pleasurable

level of consumption-related fulfillment (Oliver, 1996). Similarly, perceived service quality

conceptualized as the comparison of service expectations with real performance

expectations. Particularly in recent years, the relationship between service quality and

customer satisfaction has received much attention.

Last intermediary relationship, relationship satisfaction, when the client has the affective

or emotional state toward a relationship.Relationship satisfaction exclusivelyreflects

customer satisfaction with the relationship is different from the customer's satisfaction

with the overall exchange (Palmatier et al., 2006).

Other researchers have suggested that this mediation is simply the quality of the global

mediator relationship indicators.

It is a comprehensive assessment of the strength of the relationship, "and the perception

as a multi-dimensional construct that captures the many different aspects of the

relationship of exchange (De Wolf, Odekerken- Schröder, and Iacobucci, 2001).

There is a focal point for discussion is the causal path between the quality of service and

satisfaction. Also, there is considerable debate about the distinctive nature of these

concepts conceptual. The prevailing view is that the effects of satisfaction Quality, Quality

is the ancestor of sense to satisfaction (Iacobucci et al., 1996). Cronin and Taylor (1992)

and in support of experimentally that the service quality is the precedent of consumer

satisfaction (Wetzls et al., 1998). Therefore, we suggest that the trust, commitment,

communication, interdependence, and satisfaction are key dimensions of the

relationship-oriented marketing.

Oliver (1997, 1999), satisfaction as a fun and amusement meet that touched by customers

in consumption.

It means the consumer senses that consumption achieves some need, desire, goal, or so

forth, and this is a fun fulfilled" (Oliver, 1999, P.34).

In the marketing literature relationship, as it was believed to be a customer satisfaction

KPI to assess the quality of the relationship between the service provider and the

customer expectations concerning the costs and benefits of the relationship depends

mainly on experience, and experience satisfactory increase the motivation and the

likelihood that the individual remains in the relationship (Murray, 2005) behaves .

Repurchase Customer Satisfaction It follows the basic needs of clients associated with the

product (Guzzo., 2010). Zeithaml and Bitner (2000), defined customer satisfaction as it is

22 | P a g e

the response of the customer to the service he received from achieving his desires and

expectations of his requirements.

Defines customer satisfaction as providing the required service to customers, which may

generate a positive attitude towards a particular brand used (Mayaki et al. 2011; Radwan

et al., 2013). According to Fornell (1992), and customer satisfaction is customer position

after the use of a particular product.

In this sense, thinking of satisfaction as the rule that "feature or sometimes the product

or service itself, it provides a unique level of achievement of the relevant consumption."

We can review customer retention response.

Thus service providers, the very evocative command to understand the degree of insight

into the customer services.

It is Previous evident studies that there has been much debate about whether service

quality is the quality of the service record of customer satisfaction (Parasuraman 1994,

Zeithaml 1996).

The quality of service contributes significantly to enhance customer satisfaction

(Levesque and McDougall, 1996; McDougall and Levesque, 2000). For example, Cronin

and Taylor "s (1992) model SERVPERF verify the theoretical framework of health as it is

assumed the service quality and customer satisfaction we have a causal relationship.

Gamal Nasser (2002) to ensure that the pivotal quality in the banking dimensions

positively linked to customer satisfaction. Moreover, research made in

telecommunications services showed that the service is bumping customer satisfaction

quality (Tong, 2004; Kuo et al., 2009; Lee, 2010).

2.7. Customer loyalty

Griffin (1995) divides customers into four categories: inertia loyalty, latent loyalty,

premium loyalty, and no loyalty. The "inertia loyalty" category represents customers who

repurchase a specific service without emotional attachment. Customers who included in

the "latent loyalty" category are those who feel attached to a specific product or service

while they purchase the product infrequently. The third type is the "premium loyalty" that

is related to customers who have a high repeat the visit or purchase rate for a specific

service with high level of emotional attachment to this service. The "no loyalty" category

represents in customers who have no attachment to a specific product or repurchase

intention (Griffin, 1995).The following definitions of customer loyalty contain three major

keys in defining loyalty: first is that the clients' needs met and second are the pleasant

feeling that created from the first key and third is the frequent patronage over a given

period that occurs as a result of the first two keys.

23 | P a g e

Customer loyalty has been defined as constancy of preference over a certain length of

time (Blackwell et al. 1984). Retail store loyalty is defined as a biased, behavioral reaction,

established over time, by some decision-making element, concerning one or more

substitute stores out of a collection from the same sort and as a function of a

psychological series of actions (Jacoby & Kyner 1973). Loyalty has been pointed out as a

long-term promise to return, including both frequent patronage and a pleasant feeling

(Dick & Basu 1994).The following definitions of customer loyalty view loyalty from

competition. Customer loyalty happens when "the customer feels so strongly that you

can best meet his or her relevant needs that your competition virtually excluded from the

consideration set and the customer buys almost exclusively from you referring to you as

'their restaurant' or 'their hotel'" (Smith, 1998). Loyalty is the probability of a customer's

coming back to a hotel and that customer's eagerness to act as a partner in the firm

(Bowen & Shoemaker, 1998). Therefore, companies that implement customer loyalty

programs desire to guard their market share against opponents, take high-value

customers from them, and retain and increase the number of high-value customers

(Dunn, 1997).In "Finding Customers: Market Segmentation," Bull and Passewitz (1999)

discuss two markets: (1) Undifferentiated Marketing focuses on the needs that customers

have in common and relies on mass advertising. It succeeds the most when there is low

competition in the same market. (2) Differentiated Marketing focuses on target

marketing in specialized market segments. This form of marketing builds greater loyalty

by recognizing the needs of specific target customers. The authors define market

segmentation as "dividing a larger market into submarkets based upon different needs or

product preferences." They conclude that those businesses that direct their marketing

efforts toward making customers aware of the special benefits (quality, low price, or

convenience) of their product, benefit the most from their marketing efforts. In the

current study, differentiated commercialization of international restaurants in Jeddah

examined by identifying their customers' needs.

The main topic in the marketing of customer relationship is' get and keep customers. Also,

think of a customer loyalty to be the most valuable asset of the company, and therefore

it is necessary for providers to keep the loyalty of customers who will make a profit in the

long term for business organizations (Tseng, 2007).

The Department of customer loyalty and loyalty to the general attitudes and behavioral

(Aydin Ozer, 2005). It describes the customer loyalty positions attitude towards loyalty

through customer preference measure, purchase intent, and resource prioritization, and

recommendation prepared. On the other hand; behavioral loyalty respect to the shares

buys, buy frequency (Ibid.) Evidence suggests that the relationship stronger commitment

to re-render care to repeat buyers. Wolf and others. (2001) Behavioral loyalty building

defined as a compound based on the purchasing frequency of the consumer and the

amount spent in retail stores compared to the amount devoted to other retailers from

whom the consumer buys.

24 | P a g e

Found Morgan and Hunt (1994), a significant relationship between the level of the buyer's

commitment to the relationship and acquiescence to him, the tendency to leave their

cooperation, which considered as behavioral outcomes of relationships. It has been

identified several factors to influence customer loyalty.

CHAPTER 3: Methodology

3.1. Introduction

This Section started with an exegesis of the used method for this research, followed by

sampling, questionnaire design, data collection, and finally the reliability, validity and

statistical analysis tool is explained.

3.2. Research Method

The aim of the research was to evaluating the factors affecting customer loyalty towards

mobile network provider in Saudi Arabia and to test the proposed theory about the

relation between relationship marketing ( Service quality, added value, and price ),

relationship quality, ( satisfaction and trust) and customer loyalty and quantitative

method is used in this research. The research explains in some questions correlation

between customer experience and its impact on customer loyalty.

Survey and sampling method was used for data collection and analysis, and secondary

data was there as a support tool. Survey and interviews were conducted to collect the

required information for the case

25 | P a g e

3.3. Research Design

3.3.1. Research Model

Figure 2 Research Model

Relationship Marketing

Service Quality

Value Offers

Price Perception

Relationship Quality

Satisfaction

Customer

Loyalty

Choice/Keep the

operator

Change the operator

High

Trust

Service Quality

Customer Service

Internet Speed

Coverage

Offers Variety

Tariff

International rate

26 | P a g e

3.4. Population

A population is a whole group that the survey focuses on . (Jacobsen, 2002)

The sample is the group of the population that is targeted for evaluation. (Bryman, 2003)

The scope of selection is focused on the Saudi mobile telecom sector. Due to the research

is studied from customers’ point of view and study targeted the mobile telecom industry

in Saudi Arabia. The volume of population was a total number of mobile subscriptions

which is around 51 million by the end of Q1 2016.

(Mcit.gov.sa, 2016)

Information was gathered from the customers because this study’s aim was investigating

on the customer loyalty from external clients’ perspectives. The population was expected

to include the people who are consuming the mobile phone services from Saudi telecom

service providers. However, it is noteasy for researchers to communicate with a big

number of sample, as the sample size is a critical question in practice.

The decision about the size of the sample requires to take into account the time and cost,

the need for precision, and a variety of further considerations. (Bryman, 2003)

Due to the limit of time and costs, the population is changed to target Al Riyadh city.

3.5. Sampling plan

The sampling plan used in this survey was the stratified random sampling method. The

population was categorized into three; STC, Mobily, and Zain. After categorization,

random sampling under each category was done.

The focus on respondents was the Cell phone users within AL Riyadh city with keen

emphasis on the customer service centers of the firms for ease of accessibility. The choice

of AL Riyadh city was due to the presence of a high number of people that are likely to

be using the services (Voice, data, SMS) of the three Mobile operators compared to other

areas, and thus captures the viewpoints of a broad cross-section of Cell phone users.

Due to time and resource constraints, the particular sample size chosen is 120 cell phone

users.

3.6. Questionnaire Design

27 | P a g e

Yin has determinded five traditional methods of gathering and analyzing data in business

research. It includes experiments, survey, and analysis of archival information, histories

and case studies. (Yin, 1994).

The study used survey as the primary method of data collection for this research. In this

survey, the primary data was collected by structured questionnaires. The secondary data

was gathering through various literature reviews and articles.

The survey design prepared by the team and the questioner was informed by qualitative

phase to explore the consumer behavior.

In this survey, closed questions are defined. The questionnaire was built from three parts

and 15 points see (Appendix 1).

The team met with a total of 75 master students to share with them the questionnaire

ask their help beside the online survey. At the end of survey, there are 120 persons

interacted with the questionnaire.

3.7. Reliability

Reliability concerned with issues of consistency of measures. (Bryman, 2003), Research

needs to be sure that all indicators are related to each other.

It can be tested by Cronbach’s alpha method. The result of 0.6 and above considered as

an acceptable level of internal reliability. (wikipedia.org , 2016)

28 | P a g e

CHAPTER 4: Presentation of Data/Empirical Data

4.1. Introduction

This section present the data collected from the survey and the data is collected

randomly irrespective of the different category of the people in the form of a

questionnaire, and the sample size is 120 respondents and the research team collected

the results of questionnaire through a face to face meeting, on phone and some time by

electronic survey web services. Then we combined all the collected data regardless the

collection channel to one poll and after this we applied our analysis tools on it.

4.2. Sampling analysis

4.2.1. Respondents’ Nationality

Nationality is one of the factors that may impact the selection of the mobile

operator. Therefore the interviewees were requested to expose their nationality,

and the statistics are shown in below chart (Figure 3).

Figure 3 - Respondents Nationality

Source: Research Data

Egyptian Filpino French IndiaJordaini

anLebanen Pakistani Saudi Sudan Syrian Yemeni

Value 38% 1% 1% 18% 7% 1% 2% 28% 1% 3% 2%

38%

1% 1%

18%

7% 1% 2%

28%

1% 3% 2%0%

5%

10%

15%

20%

25%

30%

35%

40%

Axi

s Ti

tle

RESPONDENTS’ NATIONALITY

29 | P a g e

The statistcs refer to that the majority of the interviewees (72%) were

expatriates from different ten countries while the Saudi’ interviewees were

around (28%).

4.2.2. Respondents’ Age

Age is one of the factors that may influence ownership of a Cell phone. Therefore

the respondents were requested to indicate their age brackets, and the results are

shown in below chart (Figure 4).

Figure 4- Respondents' Age


The statistcs refer to that the majority of the interviewees (68%) were within the

30-40 years age bracket. Those between 40-50 years constituted (17%) while

those above 50 years only (1%) and those between 20-30 years constituted (15%)

of the sample

4.2.3. Respondents’ Gender

20th 30th 40th 50th

Value 15% 68% 17% 1%

15%

68%

17%1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

RESPONDENTS’ AGE

30 | P a g e

The interviewees were asked first to indicate their gender. The relevant

responses are summarized in chart below (Figure 5).

Figure 5- Respondents' Gender

Source: Research Data:

As shown in above (92%) of the respondents were male.

4.2.4. Respondents’ Occupation

The study also sought to establish the occupation of the interviewees. They were

therefore asked to indicate their occupation and results are presented in the below

chart (Figure 6).

Female8%

Male92%

RESPONDENTS’ GENDER

31 | P a g e

Figure 6 - Respondents’ Occupation


As the results of above chart show, various professions were represented in the

study. However, the majority were employees comprising 43%, followed by

management (36%), mainly comprising labor at (18%).

4.2.5. Respondents’ Operator

To determine respondents’ choice of Cell service provider results were

tabulated as summarized in below chart (Figure 7).

Employee Executive Housewife Labor Management

Value 43% 3% 2% 18% 36%

43%

3% 2%

18%

36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

RESPONDENTS’ OCCUPATION

32 | P a g e

Figure 7 - Respondents’ Operator


According to the findings as presented in above chart, some 63% of the

respondents owned STC lines, 21% of them owned Mobily and 14% owned Zain

lines while those who owned Virigin is 2%.

4.2.6. Respondents’ multiple Cell Numbers

The interviewees were asked to indicate how many Cell number they have. The

relevant responses are summarized in chart below (Figure 8).

Mobily STC Virigin ZAIN

Value 21% 63% 2% 14%

21%

63%

2%14%

0%

10%

20%

30%

40%

50%

60%

70%

RESPONDENTS’ OPERATOR

33 | P a g e

Figure 8 - Multiple Cell Numbers


As shown in above (53%) of the respondents have a multiple Cell number.

4.2.7. Secondary Mobile network Operator

The interviewees were asked to indicate the secondary Cell operator. The


No47%Yes

53%

MULTIPLE MOBILE NUMBERS

Lebara Mobily STC ZAIN

Value 2% 35% 54% 10%

2%

35%

54%

10%

0%

10%

20%

30%

40%

50%

60%

SECONDARY MOBILE OPERATOR

34 | P a g e

Figure 9 - Secondary Cell Operator


According to the findings as presented in above chart, some 54% of the

respondents owned STC lines, 35% of them owned Mobily and 10% owned Zain

lines while those who owned Lebara is 2%.

4.2.8. Home Network Operator

The interviewees were asked to indicate the type of Cell number network. The


Figure 10 - Home Network Operator


As shown in above (19%) of the respondents switched to another Cell

operator of the same number while the remaining (81%) are keeping the

same operator.

4.2.9. Respondents’ Package

Ported Number19%

Orginal operator81%

HOME NETWORK OPERATOR

35 | P a g e

The study sought to establish the tariff platform upon which the Cell telephone

lines used by the respondents were based and the findings were as shown in

below chart (Figure 11).

Figure 11 - Respondents’ Package


The findings indicate that the post-paid tariff platform was the one most

owned by the respondents at 62.4%. The pre-paid tariff arrangement was

much less popular coming far behind at 38%.

4.2.10. Years of Using the Line

Interviewees were further asked to indicate the number of years that they

had been using their lines and the study findings were as summarized in

below chart (Figure 11).

Postpaid62%

Prepaid38%

RESPONDENTS’ PACKAGE

36 | P a g e

Figure 12 - Years of Using the Line


The study findings provide the following facts, 54% of Interviewees have

used their cell phone lines for 1-4 years, 26% of them have used their lines

for 4-7 years, 23% of them have used their lines for 7-9 years while 12%

showed that they had used their lines for over a decade. Less half of the

Interviewees indicated that they had used their lines for more than 5 years

showing that most subscribers were very experienced in Cell telephone

use and more likely to give reliable information.

4.2.11. Factors affecting selection for Cell network

In making a choice between the available service providers in the market,

various factors are deemed to come into play. The Interviewees were

asked to mention factors that they considered important in their choice of

a Cell service provider in order of importance starting with the most

important factor. The results were as shown in chart (Figure 13).

6%

10%

13%

24%

4%

8%

15%

3% 3% 2%

12%

0%

5%

10%

15%

20%

25%

30%

1 2 3 4 5 6 7 8 9 1 0 M O R E 1 0

YEARS OF USING THE LINE

37 | P a g e

Figure 13 - Factors affecting selection for Cell network


According to the research findings as presented in above chart, 38% of

Interviewees preferred the service quality as the main factor to select the Mobile

network operator while 31% of Interviewees selected the tariff as a primary factor

to choose the Mobile network operator and the customer service came in the

third place with 13%.

4.2.12. Respondents’ Change behavior

Interviewees were further asked to indicate the change operator’s

decision if they get the factor they selected as a Factor affecting selection

for Mobile network and the study findings were as summarized in below

chart (Figure 14).

Servicevariety

CoverageInternational

rateInternetSpeed

CustomerService

TariffServiceQuality

Value 2% 3% 6% 8% 13% 31% 38%

2% 3% 6% 8%13%

31%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

FACTORS AFFECTING SELECTION FOR MOBILE NETWORK

38 | P a g e

Figure 14 - Respondents’ Change behavior


As shown in above (58%) of the interviewees maybe turn the Mobile

network operator in case got their Factor affecting selection for Cell

network.

I don't know23%

Maybe58%

Never19%

RESPONDENTS’ CHNAGE BEHAVIOR

39 | P a g e

CHAPTER 5: Analysis of Data

5.1. Introduction

This section will present the results of sample analysis; the data is presented on a tables

and charts as an output of SPSS data processing results, followed by the data analysis.

The aim of this stage is defined the relation between the search methodology elements

and nature of that relation and their impact on the customer loyalty.

5.2. Statistical Analysis

The outputs of the survey were analyzed using descriptive analysis technique. There are

many basic techniques for analyzing quantitative data.In this research, the study used

the software of SPSS for Windows to analyze the exploratory factors.

SPSS Given the scales of items for a construct, the Cronbach’s alpha’s are calculated to

assess the reliability of those items.

5.3. Data Reliability

In this survey, there are total 120 feedbacks from the sample population. All the

feedbacks are complete for the eight constructs that this study focused on, it is necessary

to measure the internal reliability of each construct with its different number of items.

5.4. Reliability Statistics

Cronbach's Alpha Number of Items

.867 27

Table 1- Reliability Statistics

To test the reliability, the Cronbach’s alpha are calculated for items designed for the same

construct. If Cronbach’s alphas larger than 0.6 that is mean the reliability is accepted as

40 | P a g e

per most social science research so in this research the Cronbach's Alpha is .867 which is

mean the reliability of this research is accepted.

5.5. Frequencies

5.5.1. Service quality

Questions

Strongly agree

Agree Neutral Disagree Strongly disagree

Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end

Number Number Number Number Number

% % % % %

Your mobile network operator following your requests with high priority and in reasonable time

80 29 8 3 0

4.55 .732 2 Strongly

agree 66.7% 24.2% 6.7% 2.5% 0%

The customer service of your operator are always willing to support you.

51 61 3 5 0


agree 42.5% 50.8% 2.5% 4.2% 0%

The required actions to your complaints are always taken seriously and quickly.

68 46 4 2 0


agree

56.7% 38.3% 3.3% 1.7% 0%

Your mobile network operator is a constant in providing qualified services.

53 65 2 0 0


agree 44.2% 54.2% 1.7% 0% 0%

Your operator offers customized services to satisfy customers’ need.

34 72 12 2 0

4.15 .657 6 Agree

28.3% 60% 10% 1.7% 0%

Your operator offer information

88 28 2 2 0 4.68 .594 1 Strongly

agree

41 | P a g e

on time when there are new services.

73.3% 23.3% 1.7% 1.7% 0%

Table 2- Service quality

In Table 2, the question no.6 (This operator presents information at the right time when there

are new services) is ordered as the first one on mean 4.68 with general trend “Strongly agree”.

Figure 15- Question orders (service quality)

5.5.2. Price

Questions

Strongly agree


Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end


% % % % %

Your operator did dynamic action to support you to know the pricing of products and services policies.

86 28 4 2 0

4.65 .63 2 Strongly

agree

71.7% 23.3% 3.3% 1.7% 0%

4.55

4.32

4.5

4.43

4.15

4.68

3.8

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

Your mobilenetwork operator

following yourrequests with high

priority and inreasonable time

The customerservice of youroperator are

always willing tosupport you.

The requiredactions to yourcomplaints arealways takenseriously and

quickly.

Your mobilenetwork operator

is a constant inproviding qualified

services.

Your operator offers customized services to satisfy customers’ need.

Your operator offerinformation on

time when thereare new services.

Mean

42 | P a g e

Your operator provide an attractive pricing schema of products and services.

86 23 6 5 0


agree 71.7% 19.2% 5% 4.2% 0%

Your operator offers a reasonable rates of the services.

86 30 2 2 0 4.67 .599 1

Strongly agree

71.1% 25% 1.7% 1.7% 0%

My operator offers a supple price for the provided service.

55 52 100 3 0


agree 45.8% 43.3% 8.3% 2.5% 0%

I will keep my operator unless the prices moved up for the same service.

46 66 5 3 0


agree 38.8% 55% 4.2% 2.5% 0%

Table 3- Price

In Table 3, the question no.3 (This operator offers a reasonable rates of the services.) is ordered

as the first one on mean 4.67 with general trend “Strongly agree”.

4.65

4.58

4.67

4.334.29

4.1

4.2

4.3

4.4

4.5

4.6

4.7

Your operator diddynamic action to

support you to knowthe pricing of productsand services policies.

Your operator providean attractive pricingschema of products

and services.

Your operator offers areasonable rates of the

services.

My operator offers asupple price for the

provided service.

I will keep my operatorunless the prices

moved up for the sameservice.

Mean

43 | P a g e

Figure 16- Question orders (Price)

5.5.3. Value offered

Questions

Strongly agree


Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end


% % % % %

My operator provides an offers that worth the money

68 46 4 2 0 4.50

.648 1 Strongly

agree 56.7% 38.3% 3.3% 1.7% 0%

There is a benefits from the offers provided by my operator

53 65 2 0 0


agree 44.2% 54.2% 1.7% 0% 0%

My operator proposed rewards that were what I wanted.

34 72 12 2 0

4.15 .657 4 Agree

28.3% 60% 10% 1.7% 0%

There is a high probability to achieve the proposed reward.

70 44 3 3 0


agree 58.3% 36.7% 2.5% 2.5% 0%

Table 4- Value offered

In Table 4, the question no.1 (This operator provides promotional offers were worth the

money) is ordered as the first one on mean 4.50 with general trend “Strongly agree.”

44 | P a g e

Figure 17- Question orders (Value offered)

5.5.4. Trust

Questions

Strongly agree


Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end


% % % % %

My operator is reliable because it is primarily concerned with my needs.

70 44 3 3 0


agree 58.3 36.7 2.5% 2.5% 0%

My operator has a trust worthy billing system.

67 53 0 0 0


agree 55.8% 44.2% 0% 0% 0%

My operator has a good reputation

65 55 0 0 0 4.54 .50 3

Strongly agree

54.2% 45.8% 0% 0% 0%

My operator has a trust worthy policies and practices

86 34 0 0 0


agree 71.7 28.3 0% 0% 0%

4.5

4.43

4.15

4.31

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6

My operator provides anoffers that worth the money

There is a benefits from theoffers provided by my

operator

My operator proposedrewards that were what I

wanted.

There is a high probability toachieve the proposed

reward.

Mean

45 | P a g e

This operator provides a secure services

83 37 0 0 0 4.43 .496 5

Strongly agree

69.2% 30.8% 0% 0% 0%

Table 5- Trust

In Table 5, the question no.4 (This operator has trustworthy policies and practices) is ordered as

the first one on mean 4.72 with general trend “Strongly agree”.

Figure 18- Question orders (Trust)

5.5.5. Satisfaction

Questions

Strongly agree


Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end


% % % % %

I am satisfied with the quality service provided by the operator.

51 69 0 0 0 4.43 .496 1

Strongly agree

42.5% 57.5% 0% 0% 0%

I am satisfied with the

33 80 7 0 0 4.22 .537 3 Strongly

agree

4.51

4.564.54

4.72

4.43

4.25

4.3

4.35

4.4

4.45

4.5

4.55

4.6

4.65

4.7

4.75

My operator is reliablebecause it is primarily

concerned with myneeds.

My operator has atrust worthy billing

system.

My operator has agood reputation

My operator has atrust worthy policies

and practices

This operator providesa secure services

Mean

46 | P a g e

professionalism of my operator. 27.5% 66.7% 5.8% 0% 0%

I am satisfied with the performance and response of the customer service of my operator.

44 76 0 0 0


agree 36.7% 63.3% 0% 0% 0%

I willing to continue using mobile services from my current operator for a long time.

33 80 7 0 0


agree 27.5% 66.7% 5.8% 0% 0%

Table 6- Satisfaction

In Table 6, the question no.1 (I am satisfied with the quality and method of the overall service

provided by the operator.) is ordered as the first one on mean 4.43 with general trend “Strongly

agree”.

Figure 19- Question orders (Satisfaction)

5.5.6. Customer Loyalty

4.43

4.22

4.37

4.22

4.1

4.15

4.2

4.25

4.3

4.35

4.4

4.45

I am satisfied with thequality service provided by

the operator.

I am satisfied with theprofessionalism of my

operator.

I am satisfied with theperformance and responseof the customer service of

my operator.

I willing to continue usingmobile services from my

current operator for a longtime.

Mean

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Questions

Strongly agree


Mea

n

Stan

dar

d

Dev

iati

on

Ord

er

Gen

eral

Tr

end


% % % % %

Even if another operator’ price is lower, I will go on using my current provider.

72 48 0 0 0

3.60 .492 3 Agree

60% 40% 0% 0% 0%

I will tell other people a good things about my operator..

68 34 0 0 0


agree 71.7 28.3 0 0 0

I will encourage friends to select the services offered by my operator.

83 37 0 0 0


agree 69.2 30.8 0 0 0

Table 7- Customer Loyalty

In Table 7, the question no.2 (I am willing to say positive things about this operator to other people.) is

ordered as the first one on mean 4.72 with general trend “Strongly agree”.

Figure 20- Question orders (Loyalty)

3.6

4.72 4.69

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Even if another operator’ price is lower, I will go on using this

provider.

I will tell other people a goodthings about my operator.

I will encourage friends andrelatives to use the services

offered by this operator.

Mean

48 | P a g e

CHAPTER 6: Discussion and Interpretation of Findings

6.1. Introduction

This chapter is allocated to express the findings of this after achive the last stage of this

research and started with the research methodology, survey design, data collection and

data analysis. This section will also interpret the results, and discuss their implications.

6.2. Finding

6.2.1. Findings from sampling analysis

Based on consumer preference, majority of the peoples are preferred STC as a

main Mobile network operators.

Based on age of the group, most of the respondents 63% , are using STC, who are

in the category of up to 30 years.

Based on the analysis 38% of Interviewees preferred the service quality as the

main factor to select the mobile network operator while 31% of Interviewees

selected the tariff as a primary factor to choose the mobile network operator and

the customer service came in the third place with 13%.

6.2.2. Finding of the survey results

Service quality, values offers, and price are considered as an essential for develop

a long-term relationship with customers to get a joint benefits for both parties.

Therefore,this research was conducted to exmaine the impact of relationship

marketing tactics (Service quality, Price, Added value) on relationship quality

(Trust and Satisfaction), and in turn, affect the customer loyalty within on Saudi

Mobile telecommunication market. The results of the survey can be concluded as

below:

The three relationship marketing tactics (Service quality, values offers, and price

perception ) are positively connected to relationship quality. Values offered tactic

show the lowest connection to customer trust and satisfaction. This implicit that

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the value adding activities applied by the telecom service providers, such as

reward refund, are not adequately perceived by respondents group.

Trust and satisfaction are related to loyalty positively. Finding also provides a

statistics supporting previous studies that higher level of trust and satisfaction

perceived by customer , affect positively the loyalty level achieved by service

providers.

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CHAPTER 7: Conclusion

7.1. Introduction:

The aim of this section is concluding the objectives and finding of this research, then the

theoretical academics, limitation and valid recommendation for the future researches

and studies and how these could utilize the finding of this research in proper way and all

of this will be discussed.

7.2. Conclusion

The main goal of the study is providing a better understanding of the main factors

affecting the Saudi customers’ behavior towards the Mobile network providers. Then

how these factors influence the level of consumer trust, satisfaction thus the brand

loyalty as well as to explore the variation in the importance given by different customer

groups while choosing Mobile phone operators.

In today's competitive markets, customers are quick to give up the services that do not

meet their expectations. The facility which customers can move from their current

service provider to another, to be successful, a telecom service providers require to

supply the highest levels of service quality and performance, customers’ positive

experiences with rich services, and comprehensive service quality management.

The study found that both consumer groups stayers, and switchers, pay more

importance to the service quality and price while choice, and purchase mobile phone

operators' services. It was also found features affecting to choice and cause behind

switching to other mobile network provider are somewhat similar. So, service providers

should emphasize on the explored features to attract new customers and retain old

customers as well as to increase market share.

7.3. Recommendations

The research's findings should also support the government impress upon Mobile phone

operators in Saudi Arabia to improve the services.

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CITC must provide all the efforts to formulate and implement policies for Mobile services,

in particular, which are create value, relatively cheaper, the reliability of the service, and

uniform ‘call rates’.

The Mobile phone service providers should establish the appropriate factors that

influence the decisions of consumers. This research has identified the most important of

these factors (service quality and Price) which if utilized by the service providers

effectively could positively affect consumer response to their marketing strategies.

Understanding the customer and responding effectively to their needs is inevitable in this

day and age of increased competitiveness in the marketplace. Mobile phone service

providers should therefore prioritize and re-focus their efforts on the most value-adding

market initiatives.

7.4. Limitations

This research evaluated the tactics that affect customer satisfaction and trust that will

improve and maintain the loyalty, through the survey method. This research has some

limitations as follow;

This research still expect that more research efforts are needed to evaluate other

variables (corporate image; brand image) with the current study variables in Saudi mobile

phone market with larger samples.

The other issue is that this study’s finding cannot be compared directly with other

researches, as there is no previous studies that measuring all discussed factors combine

on consumers’ perception of mobile phone operators sectors at once.

Also, there is a lack of related literature that is making it difficult to draw comparisons

between factors affecting consumers’ perception in the telecom sectors were measured.

This study examined only a few factors taken from theories and research that influence

customers’ perception towards the mell phone operators. In additions, there are other

factors such as consumers learning, memory, demographic variables like users’ ethnicity,

education, income level and can look at the effects of gender, and lifestyle on the

behavior of buying and all these factores may influence consumers’ perception towards

service providers

The study is quantitative and could not evaluate the dilemma in-depth. The qualitative

studies needed to be carried out to examine the details pertaining to key factors affecting

the Saudi customers’ behavior towards the mobile network providers and how these

factors influence the level of consumer trust, satisfaction thus the brand loyalty.

52 | P a g e

Also, the research’s sample size was small. Researchers should work to increase the size

of the survey’s sample to produce more efficient dissemination of results to be more

accurate. Researchers may also widen the area of the study to cover consumers in the

various places since this study was limited to only Al Riyadh citizen. A cross-country

analysis might be an appropriate study to consider having a more global perspective of

the phenomenon.

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Appendix

Research questionnaire

1) Personal information

Name : ----------------------------------------- -----------------------------------

Age :

10th 20th 30th 40th + 50th

☐ ☐ ☐ ☐ ☐

Nationality : --------------------------------------------------

Gender :

Male Female

☐ ☐

Job Position :

Student Housewife Crafts Labor Employee Management Executive Business owner

☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐

2) Mobile network Operator Details

Multiple Cell Numbers :

Yes No

☐ ☐

If (Yes) Count of Cell Numbers :

2 3 More

☐ ☐ ☐

Purpose of the Additional Cell Numbers :

Family Business Other

☐ ☐ ☐

Main Mobile network Operator :

STC Mobily ZAIN Lebara Virigin

☐ ☐ ☐ ☐ ☐

Years of ownership

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Additional / Secondary Mobile network Operator:


☐ ☐ ☐ ☐ ☐

Years of ownership

Count of Numbers

Package:

Cell Number Postpaid Prepaid

Main ☐ ☐

Secondary

☐

☐

Charging Method:

Cell Number Online Scratched Card

Main ☐ ☐

Secondary

☒

☐

Ported Number* :

Cell Number Yes No

Main ☐ ☐

Secondary

☐

☐

Ported Numbers are those transferred from original Mobile network to another with the same number.

If (Yes) New Operator


☐ ☐ ☐ ☐ ☐

Years of ownership

3) Customer Experience

a. Service quality

1) Your mobile network operator following your requests with high priority and in reasonable time

Strongly agree Agree Neutral Disagree Strongly disagree

☐ ☐ ☐ ☐ ☐

57 | P a g e

2) The customer service of your operator are always willing to support you.


☐ ☐ ☐ ☐ ☐

3) The required actions to your complaints are always taken seriously and quickly.


☐ ☐ ☐ ☐ ☐

4) Your mobile network operator is a constant in providing qualified services.


☐ ☐ ☐ ☐ ☐

5) Your operator offers customized services to satisfy customers’ need.


☐ ☐ ☐ ☐ ☐

6) Your operator offer information on time when there are new services.


☐ ☐ ☐ ☐ ☐

b. Price

7) Your operator took effective ways to help you to know the pricing of products and services

policies.


☐ ☐ ☐ ☐ ☐

8) Your operator provide an attractive pricing schema of products and services.


☐ ☐ ☐ ☐ ☐

9) Your operator offers a reasonable rates of the services.


☐ ☐ ☐ ☐ ☐

10) My operator offers a supple price for the provided service.

58 | P a g e


☐ ☐ ☐ ☐ ☐

11) I will keep my operator unless the prices moved up for the same service.


☐ ☐ ☐ ☐ ☐

c. Value Offered

12) My operator provides an offers that worth the money.


☐ ☐ ☐ ☐ ☐

13) There is a benefits from the offers provided by my operator.


☐ ☐ ☐ ☐ ☐

14) My operator proposed rewards that were what I wanted.


☐ ☐ ☐ ☐ ☐

15) There is a high probability to achieve the proposed reward.


☐ ☐ ☐ ☐ ☐

d. Trust

16) My operator is reliable because it is primarily concerned with my needs.


☐ ☐ ☐ ☐ ☐

17) My operator has a trust worthy billing system.


☐ ☐ ☐ ☐ ☐

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18) My operator has a good reputation.


☐ ☐ ☐ ☐ ☐

19) My operator has a trust worthy policies and practices.


☐ ☐ ☐ ☐ ☐

20) This operator provides a secure services.


☐ ☐ ☐ ☐ ☐

e. Satisfaction

21) I am satisfied with the quality service provided by the operator.


☐ ☐ ☐ ☐ ☐

22) I am satisfied with the professionalism of my operator.


☐ ☐ ☐ ☐ ☐

23) I am satisfied with the performance and response of the customer service of my operator.


☐ ☐ ☐ ☐ ☐

24) I willing to continue using mobile services from my current operator for a long time.


☐ ☐ ☐ ☐ ☐

f. Customer loyalty

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25) Even if another operator’ price is lower, I will go on using my current provider.


☐ ☐ ☐ ☐ ☐

26) I will tell other people a good things about my operator.


☐ ☐ ☐ ☐ ☐

27) I will encourage friends to select the services offered by my operator.


☐ ☐ ☐ ☐ ☐

End of survey