MEDIATING ROLE OF TRUST ON THE RELATIONSHIPS BETWEEN PRICE, SERVICE QUALITY AND CUSTOMER LOYALTY IN THE NIGERIAN TELECOMMUNICATION INDUSTRY
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Author
Presented To
Department of Administration
ABSTRACT
Service providers having competitive prices and rendering quality services cannot solely rely on these to enjoy high customer loyalty. Relationships built on trust go a long way in solidifying such relationships. However, there are lack of sufficient studies that have assessed the mediating role of trust on the relationship between price and customer loyalty and between service quality and customer loyalty. As a result, this study investigated the mediating role of trust in the relationships between price, service quality and customer loyalty in the Nigerian telecommunication industry. Copies of the questionnaire were distributed using stratified and systematic sampling. 416 copies of the questionnaire distributed were used for analysis. PLS-SEM path modelling was employed to analyze the data.
Four hypotheses were developed in alternate form and result supported the hypotheses. Statistical evidence shows that there is significant relationship between price and customer loyalty and between service quality and customer loyalty. Statistical evidence also show trust significantly and positively mediate the relationships between price and customer loyalty and between service quality and customer loyalty. The study therefore recommends that for service providers to gain the trust and hence loyalty of their subscribers, service providers should from time to time, carry out online polls, to determine the satisfactory level of their subscribers regarding their pricing scheme and the quality of services they deliver. Having this knowledge will allow managers to make improvements where necessary and also make adjustments where necessary.
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