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Are customer satisfaction and customer loyalty drivers of customer lifetime value in mobile data services: a comparative cross-country study

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Abstract

Many research papers have been published on the effect of customer satisfaction and customer loyalty on customer profitability which is related to customer lifetime value (CLV). However, there is limited research on the impact of cross-cultural factors on the effect of customer satisfaction and customer loyalty on CLV. This study aims to fill this gap. Focusing on the usage of mobile data services, 846 samples from China and 689 from the US are obtained. Data analysis suggests that customer loyalty is a driver of CLV, while customer satisfaction is not. This research has important implications for firms about how to enhance CLV in mobile data services.

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Acknowledgments

This paper was supported by the National Natural Science Foundation of China (Grant No.: 71171023, 70701005, 70911120262), Major State Basic Research Development Program of China (973 Program) (No. 2012CB315805), Program for Excellent Talents in Beijing University of Posts and Telecommunications, Beijing Municipal Natural Science Foundation (Project No. 9122018), Program for New Century Excellent Talents in University (Program No.: NCET-10-0241), and the Open Research Fund between Beijing University of Posts and Telecommunications and IBM (Grant No. JLP200906011-3). The diligent work by graduate students Lei Peng and Fang Liu from School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, are greatly appreciated. We are also grateful to Dr. Robert W. Palmatier of the Marketing and International Business Department, Foster Business School, University of Washington, Seattle, USA, for his many helpful suggestions. We should also say our thanks for Dr. Aihua Zhang of the School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, who helped with the research survey in China.

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Authors and Affiliations

  1. School of Economics and Management, Beijing University of Posts and Telecommunications, P.O.BOX 295, Beijing, 100876, People’s Republic of China

    Jia-Yin Qi, Wen-Jing Chen & Qi-Xing Qu

  2. Department of Information Systems and Operations Management, University of Washington Business School, Box 353200, Seattle, WA, 98195-3200, USA

    Yong-Pin Zhou

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  1. Jia-Yin Qi
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Appendices

Appendix 1: Measurement

The following statements are evaluated on a scale of 1–7 which represents the level of agreement with the statement: Strongly disagree (1), disagree (2), slightly disagree (3), neutral agree (4), slightly agree (5), agree (6), and strongly agree (7).

 

SAT1. Overall, I am satisfied with the mobile data services I am using

SAT2. Using mobile data services has met with my expectations

SAT3. I am pleased with the experience of using mobile data services

SAT4. My decision to use mobile data services was a wise one

LOY1. My preference for using mobile data services would not change

LOY2. It would be difficult to change my beliefs about mobile data services

LOY3. I will continue using mobile data services in the future

LOY4. Even if friends recommended that I give up using mobile data services, my preference for mobile data services would not change

Appendix 2: Reliability and validity of the measurements

See Tables 8, 9.

Table 8 Reliability analysis of the measurements for CLV drivers
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Table 9 Validity analysis of the measurements for CLV drivers
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Qi, JY., Zhou, YP., Chen, WJ. et al. Are customer satisfaction and customer loyalty drivers of customer lifetime value in mobile data services: a comparative cross-country study. Inf Technol Manag 13, 281–296 (2012). https://doi.org/10.1007/s10799-012-0132-y

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