Service Excellence in Internet Industry

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International Journal of Quality and Service SciencesAchieving customer loyalty through service excellence in internet industry:

Paramaporn Thaichon Antonio Lobo Ann Mitsis

Ar tic le information:To cite this document:Paramaporn Thaichon Antonio Lobo Ann Mitsis , (2014),"Achieving customer loyalty through service excellence in internetindustry", International Journal of Quality and Service Sciences, Vol. 6 Iss 4 pp. -Permanent link to this document:http://dx.doi.org/10.1108/IJQSS-03-2014-0024

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Paramaporn Thaichon, Antonio Lobo, Ann Mitsis, (2014),"An empirical model of home internet services quality in Thailand",

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Alison M. Dean, (2002),"Service quality in call centres: implications for customer loyalty", Managing Service Quality: AnInternational Journal, Vol. 12 Iss 6 pp. 414-423

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Achieving customer loyalty through service excellence in internet industry

1. Introduction

Customer loyalty increasingly becomes very important and appears to be the main

concern of many businesses, especially when many companies are facing costly challenges in

customer acquisition (Abdolvand, Charkari, & Mohammadi, 2006) and high customer

turnover (Spiller, Vlasic, & Yetton, 2007). This research aims to investigate the antecedents

to customer loyalty of Internet Service Providers (ISPs), especially when customer turnover

has become a hot issue in ISP industry in many countries. For example, Australian ISP

market witnessed that up to 35% of their customers discontinued in 2007 (Spiller et al.,

2007). Similarly, an average of 10% of home internet customers in Thailand switched service

providers each year over the period from 2003 to 2009 (Thaichon & Quach, 2013). For that

reason, the telecommunications industry is under pressure to keep, maintain and increase

their existing customer base. This scenario provides an opportunity for internet service

providers to evaluate determinants that influence customer loyalty, which in turn, can be

employed to nurture long term customer retention in the competitive home ISP market.

Previous research shows that business performance improves as the number of loyal

consumers increases (Jahanzeb, Fatima, & Khan, 2011). Recruiting new customers also

cannot guarantee long-term success for a company especially when that company cannot

retain its customers (C. Wang & Wu, 2012). In fact, a 2% increase in the customer retention

rate is equal to a 10% decrease in the cost of customer acquisition in the mobile phone

service industry in China (Han, Lu, & Leung, 2012). Hence, keeping a loyal customer is more

profitable in the long run in comparison to acquiring new customers (C. Wang & Wu, 2012).


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In addition, a loyal customer is willing to endorse the brand among their peers, and ignore the

negative message promoted by the others (Tam, 2012). Yet, there is limited research about

customer retention and brand loyalty in the ISP context.

Additionally, there is limited research about service quality and its measurements in the

ISP context. The two widely used scales for evaluating service quality are SERVQUAL for

generic services and E-S-QUAL for services associated with information technology (He &

Li, 2010; Rafiq, Lu, & Fulford, 2012). Nonetheless, both of these scales do not take into

account the specific issues relevant to customers of high-tech ISPs. SERVQUAL and E-S-

QUAL focus on service providers who operate via the internet platform (Vlachos &

Vrechopoulos, 2008) and not those who actually provide the internet connection and platform

for online business-to-business and business-to-customer activities. Recent researchers have

attempted to develop service quality measurement scales in different high-tech contexts, for

example Shamdasani, Mukherjee, and Malhotra (2008) in the self-service internet

technologies and Vlachos and Vrechopoulos (2008) with mobile telephony. However, none

of them have effectively analysed the ISPs service quality dimensions. This area therefore

deserves further investigation. Hence, this study aims to investigate the specific service

quality dimensions and attributes, and their differing influence on the overall service quality

of ISPs.

For these reasons, this paper aims to investigate the antecedents to brand loyalty in the

internet consumption market with a view to developing an in-depth understanding about

consumer behaviour, and creating an ideal model for ISP service quality. As the result of that,

ISPs will be able to increase customers satisfaction, trust, commitment, and value, as well as

reduce the current issues relating to customer switching in the home ISP market. The

literature review and formulation of hypotheses related to each construct are then discussed in


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the next section. This paper concludes with a discussion of the implications of the research,

limitations and future research direction.

2. Literature Review

2.1 Service quality dimensions

The earliest service quality model was introduced by Parasuraman, Zeithaml, and Berry

(1985), and called SERVQUAL, including tangibles, reliability, responsiveness, assurance

and empathy. SERVQUAL was initiated based on Parasuramans et al. (1985) gap model

between performance and expectations: as performance exceeds expectations, quality

increases and vice versa. In other words, the central idea in this model viewed service quality

as a function of the different scores or gaps between expectations and perceptions (V. A.

Zeithaml, Berry, & Parasuraman, 1996). However, as stated earlier, SERVQUAL and E-S-

QUAL focus on service providers who operate via the internet platform (Vlachos &

Vrechopoulos, 2008) and not those who actually provide the internet connection and platform

for online business-to-business and business-to-customer activities. In order to deal with this

matter, this study aims to investigate the specific service quality dimensions and attributes

and their differing influence on the overall service quality of ISPs

Previous research has endeavoured to explore the dimensions of service quality in

telecommunications industry. Lai, Griffin, and Babin (2009) confirms that network quality is

an important drivers of overall service quality in the Chinese telecommunications market.

Nonetheless, Abdolvand et al. (2006) suggest that businesses should not only focus on

network quality, but also pay attention to customer support in order to enhance overall

service quality perception. Moreover, it is argued that company websites provide an effective

communication and information channel between companies and their customers


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improve service quality (Deng, Lu, Wei, & Zhang, 2010; Kyriazopoulos, Grigoroudis,

Siskos, Spyridakos, & Yannacopoulos, 2007; Woo & Fock, 1999). Previous research

confirms that network quality is one of the most important drivers of overall service quality

in Chinese (Lai et al., 2009), Hong Kong (Cheng, Lai, & Yeung, 2008), and Korean mobile

service provider markets (H. Kim & Yoon, 2004), as well as in Greece internet service

provider industry (Kyriazopoulos et al., 2007). We, therefore, propose the following:

Proposition 1: Network quality is positively associated with ISPs overall service

quality

2.1.2 Customer service and technical support

Customer service is an important part of everyday encounters. Responsiveness of

technical and customer service staff is another key determinant factor in choosing an ISP

(Santouridis & Trivellas, 2010). Shops and call centers are the two major points of

interactions between the ISPs personnel and customers (Leelakulthanit & Hongcharu, 2011).

Leelakulthanit and Hongcharu (2011) claim that these two contact points reflect the quality of

corporate management practices. Besides, ISPs personnel and the service environment can

provide cues to customers regarding the nature of the service itself, for example employee

dress, personal appearance, attitudes, and behaviors (V. Zeithaml, Bitner, & Gremler, 2010).

Therefore, the personnel are expected to have pleasant voices, polite manners, and dedicate

attention to customers needs and concerns (Carraher, Welsh, & Cash, 2010).

Service providers need to proactively invest in improving the quality of customer

service, in order to gain an advantage over their competitors (Asaari & Karia, 2003). For

example, service providers should detail employee guidelines, which provide disciplinary

steps taken when customers approach or when undesirable behaviors or actions occur


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websites and what kind of information distracts customers from their decision making

(Hasley & Gregg, 2010).

Apart from information quality, businesses have to provide well-designed websites in

order to be successful. In terms of online retailing context, website design refers to the extent

which customers perceives shopping experience with an online retailer as user friendly (H. F.

Lin, 2007). As ISPs operate in both online and offline environment, apart from face to face

customer support, websites are a very important channel of communications between ISPs

and customers. In general, websites should deliver a wide variety of information in a format

that is easy to understand and follow (H. Kim & Niehm, 2009). Positive website

environments are also significant, as positive website environments permit customers to

manage more information and forecast more positive outcomes (H. Kim & Niehm, 2009). A

company that can deliver high level of information quality and website information support

will be more likely to have higher overall service quality. Therefore, Yang et al. (2005)

recommend that administrators of a websites should pay more attention to user-friendly

design, visually attractive webpage appearance, intuitive layout and categorisation, high

readability, easy-to-use search and simple navigations. The following proposition has been

formulated:

Proposition 3: Information and website support is positively associated with ISPs

overall service quality

2.1.4 Security and privacy

Customer information can offer a competitive advantage to all businesses and play a

critical role in supporting all activities in a business (Lauer & Deng, 2007). Through

customer information businesses can study their customers unique preferences and


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behaviors, which later can specifically be used for target advertising and promotions (Resnick

& Montania, 2003). However, privacy often appears in the marketing literature as customers

concern on acquiring personal data and using its generated information, especially in this

information age (Castaeda & Montoro, 2007; Chang & Chen, 2009). In other words, privacy

concern refers to the likeliness that businesses obtain data about individuals and make

inappropriate use of it (Roca et al., 2009).

On the other hand, security is defined as an extent to which a customer perceive a

whole transaction, including payment methods, and instruments for storing and transmitting

all confidential information, as safe (Chang & Chen, 2009). Apart from that, perceived

security refers to a threat that forms a case, condition, or incident with potential to cause

economic privation to data or network resources under destruction, exposure, alteration of

data, rejection of service, and/or fraud, misuse and mistreatment (Roca et al., 2009). Lack of

perceived security and high risks in transmitting sensitive information, such as credit card

numbers are major reasons why many potential consumers do not shop online (Chang &

Chen, 2009).

In term of theirs relationship with service quality, privacy and security (security of

payments and privacy of given information) are positively related to service quality

especially in e-commerce (Ha & Stoel, 2012), and in online retailing contexts (Wolfinbarge

& Gilly, 2003). Yang, Jun, and Peterson (2004) also report that security is one of important

dimensions of online service quality. Besides, Yoo and Donthu (2001) developed a

measurement instrument for an Internet shopping site called SITEQUAL, which includes four

dimensions (1) ease of use; (2) aesthetic design; (3) processing speed; and (4) security. In

addition, Roca et al. (2009) report that when service providers have good reputation on their


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security practice, consumers tend to believe that purchasing with them is safe. In other words,

an ISP with an outstanding security and privacy policy is more likely to have higher

perceived overall service quality. Hence the following has been proposed:

Proposition 4: Security and privacy is positively associated with ISPs overall service

quality

In short, overall service quality is proposed as a four-factor second order construct

which emanates from network quality, customer service and technical support, information

and website support and security and privacy.

2.2 Customer cognitive and affective evaluations

The second set of constructs in Figure 1 explores the underlying relationships between ISPs

overall service quality and customers evaluations including their trust, overall satisfaction,

commitment and perceived value.

2.2.1 Customer trust

Trust is known as a foundation of a long-term relationship, as a possible advanced

exchange relationship between buyers and sellers (Hong & Cho, 2011). Customer trust refers

to the customers perceptions of attributes of service providers, including the ability,

integrity, and benevolence of the providers (Deng et al., 2010). Additionally, customer trust

relates to the perception of customers on the ability of a brand to fulfill its promise while

expertise refers to a brand capability of realising its promises (Ou, Shih, Chen, & Wang,

2011).


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In an ISP industry, customer trust can be evaluated by exploring how customers feel

about their service provider in terms of the companys honesty, responsibility and

professional manners, and if the customers think that the ISP understands and cares about

them (S. Chiou, 2004). The quality of the service offered by the service provider impacts the

level of trust that the customer places in the service provider and the service (Gounaris &

Venetis, 2002). In addition, a high level of service quality has a positive influence to

customer word-of-mouth, which in return has a positive impact on customer trust (Sabiote &

Roman, 2009). We, therefore, propose the following:

Proposition 5: ISPs overall service quality leads to customer trust

2.2.2 Customer overall satisfaction

Customer satisfaction is reported to be a key success factor and long-term competitive

advantage for businesses in all industries (Ojo, 2010). This happens because consumers tend

to change their service provider if they are not happy with current products or services

(Bayraktar, Tatoglu, Turkyilmaz, Delen, & Zaim, 2011). Consumer satisfaction is the

happiness, fulfilment and pleasure that a consumer has towards a brand and its products or

services through their expectations and overall experience with the brand (Parasuraman et al.,

1985). In fact, satisfaction does not come from the product or the service itself but from the

consumers perception and expectations of the attributes and quality of the service as they

relate to that individual (Cameran, Moizer, & Pettinicchio, 2010).

Therefore, different consumers tend to judge the same service experience differently

depending on their own beliefs and expectations. The level of a customers satisfaction is

dependent on the ability of the supplier to meet the customers norms and expectations (V. A.

Zeithaml et al., 1996). In other words, once consumers try the service and, if the initial


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expectations of the overall service quality are exceeded, they would be satisfied.

Furthermore, during the consumption process, consumers tend to use their expectations as a

foundation to evaluate their satisfaction with the service, and in return, their satisfaction

influences their post-purchase behaviour, especially in repurchase decision (Tam, 2012).

Previous research by Bayraktar et al. (2011) state that in the Turkish mobile service

market, customer satisfaction is influenced by customer expectations and perceived quality.

Additionally, in telecommunication industry, service quality is found to have a strong

relationship with customer satisfaction in the mainland China (Deng et al., 2010; Lai et al.,

2009), and Hong Kong (Woo & Fock, 1999). Hence, an ISP which has a higher level of good

overall service quality will tend to have a higher level of overall satisfaction among the

consumers. As a result, the following has been proposed:

Proposition 6: ISPs overall service quality leads to overall customer satisfaction

2.3. Customer commitment

Customer commitment has been defined as a consumers conviction to maintain a

relationship that might produce functional and emotional benefits (Hur, Park, & Kim, 2010).

J. Lin and Wu (2011) consider customer commitment as a consumers persistent wish and

attempt to retain a relationship with a service provider. In term of theirs relationship with

service quality, positive overall service quality impacts on commitment that customers have

toward a particular brand and the associated service provider (Jahanzeb et al., 2011). The

overall service quality including reliability and responsiveness can be considered as cognitive

evaluations of performance over time which can be anticipated to build affective attachment

(Fullerton, 2005).


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A research by Morgan and Hunt (1994) also report that overall service quality is a

direct antecedent of commitment in a retail services context. Besides, overall service quality

represents potential relationship benefits that will be lost if a customer switches to other

service provider (Morgan & Hunt, 1994). In other words, when customers are satisfied with a

service provider, they tend to think that they should stay with their service provider because

of what the company has done for them (Cater & Zabkar, 2009). Therefore, a company that

can deliver high level of overall service quality will be more likely to have higher customer

commitment. Based on the above discussion, we propose the following:

Proposition 7: ISPs overall service quality leads to customer commitment

2.2.4 Customer value

Creating and delivering greater value is known as a primary source of competitive

advantage (Tam, 2012). Customer value has often been described as an exchange between

what customers receive and what customers have to give to purchase a service (Lai et al.,

2009; Shirin & Puth, 2011; Tam, 2012). Values can be in forms of quality, quantity, time

spending, price, brand name, design, social approval, excitement, experience, knowledge,

self-respect, credibility, and security that consumers may receive from using a product or

service (Bell, 2009). In order to increase customer value, companies can either add more

benefits to their service or reduce the costs associated with the service itself as well as the use

of the service (Tam, 2012; C. Wang & Wu, 2012). For instance, benefits may include extra

product or service attributes, good customer service, after-sales support (Shirin & Puth,

2011), and enhanced quality of the service (Tam, 2012).

In e-commerce settings, researchers (Chen & Dubinsky, 2003) state that perceived

service quality is positively related to perceived value. Likewise, in terms of Internet


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retailing, perception of service quality can positively influence perceived value of shopping at

an Internet retailer (J. Kim & Damhorst, 2010). In hospitality industry, Hu, Kandampully,

and Juwaheer (2009) verify that service quality exerts a positive impact on perceived value

by collecting data of customers from hotels in Mauritius. Supporting this view, Cronin,

Brady, and Hult (2000) confirm that service quality affect perceived value. In

telecommunications market, apart from monetary costs, overall service value is also

determined by service quality (Lai et al., 2009). Hence the following has been proposed:

Proposition 8: ISPs overall service quality leads to customer value

3. Attitudinal and Behaviral Loyalty

This study adopts the composite loyalty approach which suggests a simultaneous

assessment of attitudinal and behavioural loyalty (Dick & Basu, 1994). Attitudinal loyalty is

evaluated by customers inner thoughts of attachment, positive word-of-mouth and

recommendations (V. A. Zeithaml et al., 1996). Attitudinal loyalty can be determined by

exploring if customers consider themselves to be loyal patrons of this ISP, as well as if they

think this ISP is the best choice for them (H. Kim & Niehm, 2009). In addition to attitudinal

loyalty, behavioural loyalty is measured by the number of customers which remain with their

service provider (V. A. Zeithaml et al., 1996). The two final endogenous constructs of

attitudinal and behavioural loyalty is investigated in light of customer evaluations, namely

trust, satisfaction, commitment and value as discussed in the following sections.

Trust plays an important role in determining customer loyalty. When customers trust

the service provider, they will continually use the service and even recommend the service to

potential customers (Deng et al., 2010). In telecommunications market, (J. S. Chiou & Droge,

2006) point out that customer trust has been shown to be important and is related to the


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emotional nature of consumer loyalty long-term orientation in the relationship. For instance,

researchers found that trust positively influences customer attitude and behavior intention in

mobile commerce context (Deng et al., 2010). Pirc (2006) also claim that customer trust in

the mobile service provider have positive and direct effect on loyalty in Slovenia mobile

phone industry. Similar results also reported in Taiwan ISP research by S. Chiou (2004), and

in the United Kingdom mobile phone research by Ranaweera and Prabhu (2013). Therefore,

an ISP which has a higher level of brand trust will tend to have a higher level of attitudinal

and behavioural loyalty among the consumers.

In addition to trust, customer overall satisfaction also has a strong impact on customer

loyalty, especially in the Hong Kong Internet service market (Cheng et al., 2008). Cheng et

al. (2008) confirm that, customers who experience a high level of satisfaction are most likely

to stay with their existing service providers and maintain their service subscriptions. Hence,

businesses must increase the level of customer satisfaction by upgrading service quality,

which in turn influences purchase and repurchase intentions in ISP markets (Seth, Momaya,

& Gupta, 2008). Research in Tehran also reports that satisfaction of university students has a

direct and positive effect on their loyalty (Kheiry, Rad, & Asgari, 2012). Previous study in in

Malaysian mobile services context found that when customers feel more satisfied, they tend

to become more loyal, and there are higher chances that they want to continue with their

service provider (Mokhtar, Maiyaki, & Mohd Noor, 2011). Another research in Pakistan

telecommunications states that there is a positive relationship between customer satisfaction

and customer loyalty (Khokhar et al., 2011). Hence, an ISP which has a higher level of

overall customer satisfaction will tend to have a higher level of attitudinal and behavioural

loyalty among the consumers.


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Moreover, numerous studies have recently demonstrated that there is a positive

correlation between customer commitment and customer repurchase. For example, Cater and

Zabkar (2009) report that affective and calculative commitment positively affects the

customers intention to continue a relationship with their service provider in a Central and

Eastern European in the service sector. Verhoef (2003) found a positive connection between

affective commitment and customer loyalty in financial services industry. Fullerton (2005)

states that calculative commitment and affective commitment are positively influence

behavioral intentions (Cater & Zabkar, 2009; Fullerton, 2005).

Additionally, the more time and effort customers have invested in the relationship with

their service provider, the less inclined the customers are to break up that relationship (Bgel,

Buunk, & Verhoef, 2010). Therefore, customers with high levels of calculative commitment

will be unwilling to switch to another service provider because of the great switching costs

(Bgel et al., 2010; Cater & Zabkar, 2009). Hence, an ISP which has a higher level of

perceived switching is likely to have a higher level of continuance commitment, which leads

to a greater level of attitudinal and behavioural loyalty.

Customer value can be considered as an evaluation of weighted "get" elements in

comparison to "give" elements (Heskett, Thomas , Loveman, Sasser, & Schlesinger, 1994).

Value plays a significant role in many businesses. A research conducted in the Australian

mobile service context report that value is related significantly and positively to mobile

loyalty more than service quality and switching costs do (Lee & Murphy, 2008). In the Thai

mobile service context, value has a positive influence to customer retention (Leelakulthanit &

Hongcharu, 2011). In the Chinese mobile data services, customer value also has direct effects

on repurchase intention (Qian, Peiji, & Quanfu, 2011; Y. Wang et al., 2004) and attitudinal


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loyalty (Qian et al., 2011). Likewise, Lien, Wen, and Wu (2011) found a significant link

between perceived value and behavioral intentions in Taiwanese online shopping context.

Similar findings also reported in the Taiwanese mobile commerce context (S. Chiou, 2004).

As a result, it can be concluded that an ISP with greater value will have a higher level of

attitudinal and behavioural loyalty among its customers. Based on extant literature the

following relationships were proposed: A summary related to the conceptual model is

presented in Table 1.

Proposition 9a:Customer trust leads to attitudinal loyalty

Proposition 9b:Customer trust leads to behavioural loyalty

Proposition 10a:Customer overall satisfaction leads to attitudinal loyalty

Proposition 10b:Customer overall satisfaction leads to behavioural loyalty

Proposition 11a:Customer commitment leads to attitudinal loyalty

Proposition 11b:Customer commitment leads to behavioural loyalty

Proposition 12a:Customer value leads to attitudinal loyalty

Proposition 12b:Customer value leads to behavioural loyalty

Drawn upon the previous discussion, a conceptual model is depicted in Figure 1.

Figure 1: Proposed conceptual model.
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Table 1: Summary of the literature review

A summary of literature related to theproposed

Literature

P1: Network qualityISPs overall service

quality

Cheng, Lai and Yeung (2008); Lai et al.,

(2009); Kim and Yoon (2004);Kyriazopoulos et al., (2007); Thaichon,Lobo, and Mitsis (2014)

P2: Customer service and technicalISPsoverall service quality

Abdolvand et al. (2006); Asaari and Karia,(2003); Aydin and zer (2005); Thaichonet al. (2014)

P3: Information and website support ISPsoverall service quality

Thaichon, Lobo, and Mitsis (2012);Thaichon et al. (2014)

P4: Security and privacyISPs overallservice quality

Ha and Stoel (2012); Thaichon et al.(2014); Wolfinbarge and Gilly (2003); Yooand Donthu (2001)

P5: ISPs overall service quality customer

trust

Chiou (2004); Gounaris and Venetis

(2002); Sabiote and Roman (2009)P6: ISPs overall service quality customer

satisfactionBayraktar et al. (2011); Deng et al. (2010);Lai et al. (2009); Woo and Fock (1999)

P7: ISPs overall service quality customercommitment

Cater and Zabkar (2009); Jahanzeb et al.(2011); Morgan and Hunt (1994); Thaichonet al. (2014)

P8: ISPs overall service quality customervalue

Chen and Dubinsky (2003); Hu,Kandampully and Juwaheer (2009); Lai etal. (2009); Kim and Damhorst (2010)

P9a: Customer trustattitudinal loyalty DeWitt, Nguyen and Marshall (2008); andMatzler, Bidmon and Grabner-Kruter

(2006)P9b: Customer trustbehavioural loyalty Amin, Ahmad and Hui (2012); Castaedaand Montoro (2007); Deng et al. (2010);and Morgan and Hunt (1994)

P10a: Customer satisfactionattitudinalloyalty

Kheiry, Rad and Asgari (2012); Khokhar etal. (2011); Mokhtar, Maiyaki and MohdNoor (2011)

P10b: Customer satisfactionbehaviouralloyalty

Cheng et al. (2008); Mokhtar, Maiyaki andMohd Noor (2011); Seth, Momaya andGupta (2008)

P11a: Customer commitmentattitudinalloyalty

Bgel et al. (2010); Cater and Zabkar(2009); Verhoef (2003)

P11b: Customer commitmentbehaviouralloyalty

Bgel et al. (2010); Cater and Zabkar,(2009); Fullerton (2005)


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P12a: Customer valueattitudinal loyalty Qian, Peiji and Quanfu (2011)P12b: Customer valuebehavioural loyalty Leelakulthanit and Hongcharu (2011);

Lien, Wen and Wu (2011); Qian, Peiji andQuanfu (2011); Wallace, Giese andJohnson (2004); Wang, Lo and Yang(2004); and Wang and Wu (2012)

3. Implications

This study contributes both theoretical and practical implications. ISPs overall service

quality is widely considered as one of key factors determining customer attitudinal loyalty,

repurchase intention and unfavourable behavioural intentions. This study is original in that it

is the first of its kind which attempts to investigate the dimensions of an ISPs service quality,

and the effects of ISPs overall service quality on attitudinal and behavioural loyalty in high-

tech services. The ISPs overall service quality dimensions are identified as (1) network

quality, (2) customer service and technical support, (3) information quality and website

information support, and (4) security and privacy. It has revealed the differences in service

quality dimensions in an ISP context, which results in a better understanding of ISPs service

quality.

It is vital for Internet Service Providers (ISPs) to obtain accurate information regarding

their service quality as perceived by their customers. This information would certainly enable

them to formulate appropriate marketing strategies which would work in their favour towards

achieving competitive advantage and long term sustainability. By enhancing service quality,

firms can influence loyalty and encourage customers repurchase intention. This knowledge

enables service providers to formulate appropriate marketing strategies by focusing on the key

dimensions of the service quality, which would work in their favour in achieving competitive

advantage and long term sustainability. In general this study contributes towards a new body

of knowledge with regards to the future potential of ISPs globally.


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4. Conclusion and Limitations

This study provides valuable insights into customer loyalty in the home internet

services. The proposed research will develop an understanding about consumer buyer

behaviour of services, and will create an ideal model for retention. Beneficiaries of this study

include various stakeholders, including consumers of ISPs, ISPs themselves, the government,

and other commercial interests. Practical implications that can be produced from this research

will form a foundation for the service providers in the home ISP to develop new retention

strategies. By making customers more central in company operations, these strategies can

potentially reduce the expenses associated with acquiring new customers. As the result of

that, ISPs will be able to reduce the current issues relating to customer switching in the home

ISP market, as well as in other countries that have similar demographic profiles.

In term of limitations, the model in this study is conceptual and has not been tested by

exploratory research. A quantitative research is recommended in order to evaluate the model

and to examine whether theoretical relationship between items and their hypothesised factors

are supported by the data, as well as to provide more insights for the ISP market. Moreover,

the paper did not examine the interrelationships between the affective evaluation constructs,

i.e. customers trust, satisfaction, commitment, and value. Future research should investigate

these relationships in order to understand more about the effects of service quality on those

constructs. Replications of this research in other contexts such as other countries (e.g.

Thailand, Cambodia and Burma) and other services settings (e.g. banking) are also

recommended to examine the generalisability of the findings and verify the model.


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Zeithaml, V., Bitner, M., & Gremler, D. (2010). Services Marketing Strategy. Chichester,UK: John Wiley & Sons.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The Behavioral Consequences ofService Quality.Journal of Marketing, 60(2), 31-46.

Paramaporn Thaichon is in the final stage of his PhD (Marketing) in the Faculty ofBusiness & Enterprise at the Swinburne University of Technology, Melbourne, Australia. Hisresearch interests are in the area of brand loyalty, services marketing, consumer behaviour,relationship marketing and integrated marketing communications

Dr Antonio Lobo is an Associate Professor of marketing in the Faculty of Business &Enterprise at the Swinburne University of Technology, Melbourne, Australia. His researchinterests include supply chain management, services marketing and consumer behaviour.Antonios research has been published in the Journal of Consumer Marketing, Asia PacificJournal of Marketing and Logistics, Services Marketing Quarterly and Journal of Travel and

Tourism Marketing among others.

Dr Ann Mitsis is a Lecturer in Marketing in the Faculty of Business and Enterprise at theSwinburne University of Technology, Melbourne, Australia. Anns research interests andcontributions have a brand focus, especially in the examination of consumers perceptions ofbrand loyalty, perceived quality of a brand, perceived value of a brand and how this createspositive word of mouth and active referral behaviour.
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