AN EMPIRICAL STUDY OF FACTORS AFFECTING CUSTOMER LOYALTY OF TELECOMMUNICATION INDUSTRY IN THE KINGDOM OF SAUDI ARABIA

Abstract

This research aims to evaluate the effect of the variables; namely, price, service quality, brand image and trends on customer loyalty of service providers of mobile phones in Saudi Arabia. A questionnaire was developed and distributed to a convenient sample throughout the major cities of Saudi Arabia. A total of 775 were returned representing a response rate of 89.6%. The study showed that the majority of respondents had prescribed to more than one service provider at the same time. Additionally, it was revealed that all the variables tested; price, service quality, brand image and trends, had a direct effect on customer loyalty of service provider. Results obtained from this research will offer necessary feedback for improving a company’s strategy, marketing mix, services, and product offerings, thereby, achieve customer satisfaction and improve their customer loyalty while attracting new ones.