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Achieving customer loyalty through service excellence in internet industry

Article  in  International Journal of Quality and Service Sciences · November 2014

DOI: 10.1108/IJQSS-03-2014-0024

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IJQSS
6,4
Achieving customer loyalty
through service excellence in
internet industry
274 Paramaporn Thaichon, Antonio Lobo and Ann Mitsis
Faculty of Business & Enterprise, Swinburne University of Technology,
Received 14 March 2014 Melbourne, Victoria, Australia
Accepted 4 June 2014

Abstract
Purpose – This paper aims to investigate the antecedents to attitudinal and behavioural loyalty of
customers of Internet service providers (ISPs). In addition, this study endeavours to identify the
relationship between overall service quality and cognitive as well as affective evaluations of customers.
An assessment of service quality dimensions is also included to fill the void of research on modelling
service quality in high tech services.
Design/methodology/approach – The paper reviews the most cited articles on the topic published
in academic journals with a view to identify dimensions that customers use to evaluate the quality of a
service providers, and to determine loyalty formation through customer cognitive and affective
evaluations in Internet industry.
Findings – The exogenous constructs of the conceptual model include influential factors such as
network quality, customer service, information support and security which make up the perception of
overall service quality. The endogenous constructs include cognitive and affective determinants such
as customers’ trust, satisfaction, commitment, value and resultants – attitudinal loyalty and
behavioural loyalty.
Originality/value – The study proposes that by enhancing service quality, firms can influence
customers’ satisfaction, trust, commitment and value, and ultimately loyalty, which are critical for an
ISP’s success and long-term sustainability. Moreover, applying the findings of this study, ISPs can
strategise in making customers more central in their day to day operations, which would create
competitive advantage for the companies.
Keywords Service quality, Attitudinal loyalty, Behavioural loyalty, Internet service providers
Paper type Conceptual paper

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 et al., 2006) and high customer turnover
(Spiller et al., 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 per cent of their customers discontinued in 2007 (Spiller
International Journal of Quality and et al., 2007). Similarly, an average of 10 per cent of home Internet customers in Thailand
Service Sciences switched service providers each year over the period from 2003 to 2009 (Thaichon and
Vol. 6 No. 4, 2014
pp. 274-289 Quach, 2013). For that reason, the telecommunications industry is under pressure to
© Emerald Group Publishing Limited keep, maintain and increase their existing customer base. This scenario provides an
1756-669X
DOI 10.1108/IJQSS-03-2014-0024 opportunity for ISPs to evaluate determinants that influence customer loyalty, which in
turn, can be employed to nurture long-term customer retention in the competitive home Achieving
ISP market.
Previous research shows that business performance improves as the number of loyal
customer loyalty
consumers increases (Jahanzeb et al., 2011). Recruiting new customers also cannot
guarantee long-term success for a company especially when that company cannot retain
its customers (Wang and Wu, 2012). In fact, a 2 per cent increase in the customer
retention rate is equal to a 10 per cent decrease in the cost of customer acquisition in the 275
mobile phone service industry in China (Han et al., 2012). Hence, keeping a loyal
customer is more profitable in the long run in comparison to acquiring new customers
(Wang and Wu, 2012). 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 and Li, 2010; Rafiq et al., 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 and 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
et al. (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 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 et al. (1985), and
called SERVQUAL, including tangibles, reliability, responsiveness, assurance and
empathy. SERVQUAL was initiated based on Parasuraman’s 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 (Zeithaml et al., 1996). However, as stated earlier, SERVQUAL and
E-S-QUAL focus on service providers who operate via the Internet platform (Vlachos
IJQSS and 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
6,4 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
276 telecommunications industry. Lai et al. (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 (Grigoroudis et al., 2008). On the other hand, when service providers possess
good reputation with regards to their security practice, consumers tend to believe that
purchasing with them is safe (Roca et al., 2009). Therefore, this study proposed the
dimensions of overall service quality in ISP industry as network quality, customer
service and technical support, information quality and website information support, and
security and privacy.
2.1.1 Network quality. Service providers have to deliver a high level of service quality
standard especially in core service driver, in order to maintain a competitive advantage
and improve the degree of service quality perception and customer satisfaction
(Parasuraman et al., 1985). Network quality includes the number of errors, downloading
and uploading speed and system response time (Vlachos and Vrechopoulos, 2008). In the
ISP context, network quality refers to the quality of the network or the quality and
strength of the network signal of the network (Wang et al., 2004). In mobile phone
networking service, the network quality can be discussed on call quality, coverage, and
network, such as dropped calls, static and broken conversation during cellular phone
calls (Asaari and Karia, 2003). Hence, for the ISP, any dropped connection of the Internet
can lead to low network quality in customers’ perspective.
A company that can deliver high quality service has a better chance of recruiting
customers who are willing to return and pass the firm’s performance praises to others
(Ojo, 2010). It is necessary for ISPs to equally focus on both technical quality (i.e. Internet
connection speed, download speed, connection reliability) and functional quality (i.e. the
effective and rapid solution of technical problems, and employee behaviour) in order to
improve service quality (Deng et al., 2010; Kyriazopoulos et al., 2007; Woo and 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 et al.,
2008), and Korean mobile service provider markets (Kim and Yoon, 2004), as well as in
Greece ISP industry (Kyriazopoulos et al., 2007). We, therefore, propose the following:
P1. 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 and Trivellas, 2010). Shops and
call centers are the two major points of interactions between the ISPs’ personnel and
customers (Leelakulthanit and 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 Achieving
customers regarding the nature of the service itself, for example employee dress,
personal appearance, attitudes and behaviors (Zeithaml et al., 2010). Therefore, the
customer loyalty
personnel are expected to have pleasant voices, polite manners and dedicate attention to
customers’ needs and concerns (Carraher et al., 2010).
Service providers need to proactively invest in improving the quality of customer
service, in order to gain an advantage over their competitors (Asaari and Karia, 2003). 277
For example, service providers should detail employee guidelines, which provide
disciplinary steps taken when customers approach or when undesirable behaviours or
actions occur (Carraher et al., 2010). Leelakulthanit and Hongcharu (2011) report that an
ISP that differentiates itself by offering reliable customer support will gain an
advantage over their competitors. In addition, by equipping employees with innovative
technology and right tools, the company grants them the ability to take ownership of
their jobs, and as a result, this will improve the overall quality of the service provided
(Asaari and Karia, 2003).
Previous research in Turkish telecommunication industry confirm this view by
proving that customer complaints handling is an important factors in determining
service quality (Aydin and Özer, 2005). Abdolvand et al. (2006) also suggest that
businesses should pay attention to customer support in order to enhance overall service
quality perception and customer satisfaction. In other words, an ISP with an
outstanding customer service and technical support is more likely to have higher
perceived overall service quality. Based on the above discussion, we propose the
following:
P2. Customer service and technical support is positively associated with ISPs’
overall service quality.
2.1.3 Information quality and website information support. Businesses need to provide
information that helps customers to understand the product offerings and supports
customer decision making (Hasley and Gregg, 2010), such as detailed product
description, transparent price information, company information, professional advice,
research reports, contact information and hyperlinks to relevant websites (Yang et al.,
2005). Yang et al. (2005) also stated that lack of information completeness makes it
harder for customers to get the right message and picture of the statement. On the other
hand, too much information might make it more difficult for customers in finding the
right information. Therefore, companies need to know what kind of information should
be included on their websites and what kind of information distracts customers from
their decision making (Hasley and 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 to which customers perceives shopping experience with an online retailer as user
friendly (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 (Kim and Niehm, 2009).
Positive website environments are also significant, as positive website environments
permit customers to manage more information and forecast more positive outcomes
(Kim and Niehm, 2009). A company that can deliver high level of information quality
IJQSS and website information support will be more likely to have higher overall service
quality. Therefore, Yang et al. (2005) recommend that administrators of websites should
6,4 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:
P3. Information and website support is positively associated with ISPs’ overall
278 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 and
Deng, 2007). Through customer information businesses can study their customers’
unique preferences and behaviors, which later can specifically be used for target
advertising and promotions (Resnick and 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 (Castañeda and
Montoro, 2007; Chang and 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 and 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 and 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 and Stoel, 2012), and in online retailing contexts
(Wolfinbarge and Gilly, 2003). Yang et al. (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 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:
P4. 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 Achieving
which emanates from network quality, customer service and technical support,
information and website support and security and privacy.
customer loyalty

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 279
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 and 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 et al., 2011).
In an ISP industry, customer trust can be evaluated by exploring how customers feel
about their service provider in terms of the company’s honesty, responsibility and
professional manners, and if the customers think that the ISP understands and cares
about them (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 and 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 and Roman, 2009). We, therefore, propose the following:
P5. 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 et al., 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

Figure 1.
Proposed conceptual
model
IJQSS service itself but from the consumer’s perception and expectations of the attributes and
quality of the service as they relate to that individual (Cameran et al., 2010).
6,4 Therefore, different consumers tend to judge the same service experience differently
depending on their own beliefs and expectations. The level of a customer’s satisfaction
is dependent on the ability of the supplier to meet the customer’s norms and expectations
(Zeithaml et al., 1996). In other words, once consumers try the service and, if the initial
280 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 and 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:
P6. ISPs’ overall service quality leads to overall customer satisfaction.
2.2.3 Customer commitment. Customer commitment has been defined as a consumer’s
conviction to maintain a relationship that might produce functional and emotional
benefits (Hur et al., 2010). Lin and Wu (2011) consider customer commitment as a
consumer’s persistent wish and attempt to retain a relationship with a service provider.
In terms of their relationship with service quality, positive overall service quality
impacts on commitment that customers have towards 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).
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 and 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 and 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:
P7. 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 and 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 Achieving
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; Wang and
customer loyalty
Wu, 2012). For instance, benefits may include extra product or service attributes, good
customer service, after-sales support (Shirin and Puth, 2011) and enhanced quality of the
service (Tam, 2012).
In e-commerce settings, researchers (Chen and Dubinsky, 2003) state that perceived 281
service quality is positively related to perceived value. Likewise, in terms of Internet
retailing, perception of service quality can positively influence perceived value of
shopping at an Internet retailer (Kim and Damhorst, 2010). In hospitality industry, Hu
et al. (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 et al.
(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:
P8. ISPs’ overall service quality leads to customer value.

2.3 Attitudinal and behavioural loyalty

This study adopts the composite loyalty approach which suggests a simultaneous
assessment of attitudinal and behavioural loyalty (Dick and Basu, 1994). Attitudinal
loyalty is evaluated by customers’ inner thoughts of attachment, positive
word-of-mouth and recommendations (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 (Kim and Niehm, 2009).
In addition to attitudinal loyalty, behavioural loyalty is measured by the number of
customers which remain with their service provider (Zeithaml et al., 1996). The two final
endogenous constructs of attitudinal and behavioural loyalty are 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, Chiou
and Droge (2006) point out that customer trust has been shown to be important and is
related to the 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 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
IJQSS satisfaction by upgrading service quality, which in turn influences purchase and
repurchase intentions in ISP markets (Seth et al., 2008). Research in Tehran also reports
6,4 that satisfaction of university students has a direct and positive effect on their loyalty
(Kheiry et al., 2012). Previous study 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 et al., 2011).
282 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.
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
positively influence behavioural intentions (Cater and 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 (Bügel et al., 2010). Therefore, customers with high levels of calculative
commitment will be unwilling to switch to another service provider because of the great
switching costs (Bügel et al., 2010; Cater and 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 et al., 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 and Murphy, 2008). In the Thai mobile service
context, value has a positive influence to customer retention (Leelakulthanit and
Hongcharu, 2011). In the Chinese mobile data services, customer value also has direct
effects on repurchase intention (Qian et al., 2011; Wang et al., 2004) and attitudinal
loyalty (Qian et al., 2011). Likewise, Lien et al. (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 (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 I:
P9a. Customer trust leads to attitudinal loyalty.
P9b. Customer trust leads to behavioural loyalty.
P10a. Customer overall satisfaction leads to attitudinal loyalty.
P10b. Customer overall satisfaction leads to behavioural loyalty.
P11a. Customer commitment leads to attitudinal loyalty.
A summary of literature related to
the proposed
P1. Network quality¡ ISPs’
overall service quality
P2. Customer service and
technical¡ ISPs’ overall
service quality
P3. Information and website
support ¡ ISPs’ overall
service quality
P4. Security and privacy ¡ ISPs’
overall service quality
P5. ISPs’ overall service quality ¡
customer trust
P6. ISPs’ overall service quality ¡
customer satisfaction
P7. ISPs’ overall service quality ¡
customer commitment
P8. ISPs’ overall service quality ¡
customer value
P9a. Customer trust ¡ attitudinal
loyalty
P9b. Customer trust ¡
behavioural loyalty
P10a. Customer satisfaction ¡
attitudinal loyalty
P10b. Customer satisfaction ¡
behavioural loyalty
P11a. Customer commitment ¡
attitudinal loyalty
P11b. Customer commitment ¡
behavioural loyalty
P12a. Customer value ¡
attitudinal loyalty
P12b. Customer value ¡
behavioural loyalty
Achieving
Literature customer loyalty
Cheng et al. (2008); Lai et al., (2009); Kim and Yoon (2004);
Kyriazopoulos et al., (2007); Thaichon et al. (2014)
Abdolvand et al. (2006); Asaari and Karia, (2003); Aydin and
Özer (2005); Thaichon et al. (2014)
283
Thaichon et al. (2012); Thaichon et al. (2014)
Ha and Stoel (2012); Thaichon et al. (2014); Wolfinbarge and
Gilly (2003); Yoo and Donthu (2001)
Chiou (2004); Gounaris and Venetis (2002); Sabiote and
Roman (2009)
Bayraktar et al. (2011); Deng et al. (2010); Lai et al. (2009);
Woo and Fock (1999)
Cater and Zabkar (2009); Jahanzeb et al. (2011); Morgan and
Hunt (1994); Thaichon et al. (2014)
Chen and Dubinsky (2003); Hu et al. (2009); Lai et al. (2009);
Kim and Damhorst (2010)
DeWitt et al. (2008); and Matzler et al. (2006)
Amin et al. (2012); Castañeda and Montoro (2007); Deng
et al. (2010); and Morgan and Hunt (1994)
Kheiry et al. (2012); Khokhar et al. (2011); Mokhtar et al.
(2011)
Cheng et al. (2008); Mokhtar et al. (2011); Seth et al. (2008)
Bügel et al. (2010); Cater and Zabkar (2009); Verhoef (2003)
Bügel et al. (2010); Cater and Zabkar, (2009); Fullerton (2005)
Qian et al. (2011)
Leelakulthanit and Hongcharu (2011); Lien et al. (2011); Qian Table I.
et al. (2011); Wallace et al. (2004); Wang et al. (2004); and Summary of the literature
Wang and Wu (2012) review

P11b. Customer commitment leads to behavioural loyalty.

P12a. Customer value leads to attitudinal loyalty.
P12b. Customer value leads to behavioural loyalty.
Drawn upon the previous discussion, a conceptual model is depicted in Figure 1.

3. Implications
This study contributes both theoretical and practical implications. ISPs’ overall service
quality is widely considered as one of the key factors determining customer attitudinal
loyalty, repurchase intention and unfavourable behavioural intentions. This study is
IJQSS original in that it is the first of its kind which attempts to investigate the dimensions of
an ISP’s service quality, and the effects of ISPs’ overall service quality on attitudinal and
6,4 behavioural loyalty in high-tech services. The ISPs’ overall service quality dimensions
are identified as:
• network quality;
• customer service and technical support;
284
• information quality and website information support; and
• 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 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.

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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About the authors

Paramaporn Thaichon is in the final stage of his PhD (Marketing) in the Faculty of Business &
Enterprise at the Swinburne University of Technology, Melbourne, Australia. His research
interests are in the area of brand loyalty, services marketing, consumer behaviour, relationship
marketing and integrated marketing communications. Paramaporn Thaichon is the
corresponding author and can be contacted at: pthaichon@swin.edu.au
Dr Antonio Lobo is an Associate Professor of marketing in the Faculty of Business &
Enterprise at the Swinburne University of Technology, Melbourne, Australia. His research
interests include supply chain management, services marketing and consumer behaviour.
Antonio’s research has been published in the Journal of Consumer Marketing, Asia Pacific Journal
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 the
Swinburne University of Technology, Melbourne, Australia. Ann’s research interests and
contributions have a brand focus, especially in the examination of consumers’ perceptions of
brand loyalty, perceived quality of a brand, perceived value of a brand and how this creates
positive word of mouth and active referral behaviour.

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