The Mediation Effect of Customer Satisfaction on the Relationship Between Service Quality and Customer Loyalty

Abstract

The aim of the study was to investigate customer satisfaction’s mediation role in the relationship between service quality and customer loyalty within Ghana’s telecommunication sector. The report followed an approach to quantitative analysis and questionnaires to collect data from 105 respondents. The statistical analysis was performed using descriptive methods and inferential statistical techniques in IBM SPSS. The mediation analysis was made using Hayes' PROCESS macro model 4. Results of the analysis showed that quality of service is a substantially positive indicator of customer loyalty. It was also evident that Service Quality had a significant and positive influence on customer satisfaction. The direction between the mediator (Customer Satisfaction) and Customer Loyalty was positive but not significant. Again, it became evident that customer satisfaction partially balances the relationship between service quality and customer loyalty. It was evident that telecommunications companies' service quality cannot be the only predictor of customer loyalty, but customer satisfaction should be considered. The study recommends that telecommunications companies in Ghana should lose the script or the strict customer interaction code, review and analyze customer interactions, make multifunctional supports available and reconnect with disgruntled customers.