A study on the determinanta of customer retention and loyalty in the high-speed internet service

Abstract

The high-speed Internet plays an important role in the information of a nation on which the competitive advantage of the country depends. Because of the highest diffusion rate of the high-speed Internet service, Korea is a good model of the information of the nation among OECD members. In spite of the incredible diffusion rate, because service providers have focused on marketing activities for new customer acquisition, they have not paid much effort to improve service quality and customer satisfaction. High-level customer satisfaction may be one of the most important factors for obtaining a competitive advantage. However, prior studies related to service quality, customer satisfaction, and repurchase intention of this service is very rare. With this in mind, the purpose of this study is to 1) examine the relationships among service quality, customer satisfaction, repurchase intention, and customer loyalty of the high-speed Internet service, 2) investigate the influence of quality attributes on customer satisfaction, repurchase intention and customer loyalty, and 3) find out key quality elements which determine customer retention and loyalty. An extensive literature on the concept and the measurement of service quality, and the determinants and effects of customer satisfaction was reviewed. Then, a new model was established on the basis of the literature review. The empirical analysis using web survey, which obtained 551 valid responses, was conducted to test the validity of the model in the high-speed Internet service. The empirical analysis consisted of three steps. Firstly, the simple regression statistical method was used to examine whether or not the general causality of 「service quality →customer satisfaction →repurchase intention」can be applied to the high-speed Internet service. Secondly, the reliability analysis, the factor analysis, and the multiple regression method were employed to investigate the influence level of service quality attributes (...