Abstract
Globally, the telecommunications industry is one the fastest-growing service industries in the business world, with a global estimated revenue value of about USD 1,565 billion in 2021. Similarly, in South Africa the use of telecommunications services has increased rapidly over the years, contributing R200 billion to the country’s total Information and Communications Technology (ICT) revenue of R243 billion. The growth of this market is fuelled by the uptake of mobile and broadband services. The mobile services market had grown to 97.1 million subscriptions and 32 million 4G (fourth generation) subscriptions in 2020. The prepaid segment, at 87%, is the largest in the mobile market. The market for mobile phones is growing rapidly in South Africa, particularly owing to the popularity of smartphones among the young consumers known as Millennials. The Millennial cohort, which is the target audience of this study, comprises the youth of today who have an increasing appetite for mobile products and services. The intensity of competition in this dominant, growing mobile market has brought forward a number of challenges. One of the main concerns of the service providers is to increase the number of customers, to retain the existing ones, and to prevent any from leaving. Low satisfaction levels and weakened brand loyalty make the mobile market a fruitful area of research.
The purpose of this study was to investigate the antecedents of customer satisfaction and loyalty in the mobile prepaid market, particularly among the Millennial cohort. Specifically, the primary objective of the study was to determine the loyalty intention among Millennial prepaid mobile cellular customers in Gauteng. A quantitative non-probability research approach was employed, and convenience sampling was used to identify and select 411 participants. Quotas represented South African consumers aged from 19 to 34 and living in Gauteng, and subscribed to MTN, Vodacom, or Cell C. Data was collected using a self-administered questionnaire adapted from previously validated scales. Descriptive analysis and SEM analysis were applied to achieve the objectives of the study
The outcome of the SEM procedure established that not all of the variables had a significant and positive relationship with customer satisfaction and customer loyalty. The study found that only perceived corporate image expectations and perceived customer care service were the drivers of Millennial satisfaction, and only perceived service trust, perceived value, and perceived corporate image expectations and customer satisfaction were drivers of Millennial loyalty towards their service providers. In addition, the study confirmed the moderation effect of commitment on the relationship between perceived trust and customer satisfaction, as well as the moderating effect of switching costs on the relationship between customer satisfaction
iv | P a g e
and customer loyalty. The mediating effect of customer delight on the relationship between customer satisfaction and customer loyalty was also confirmed.
Based on the findings, various recommendations, implications, and strategies are suggested and outlined to mobile service providers. These findings would help service providers to take better decisions about the customer satisfaction and loyalty matters that are related to the mobile prepaid market. Service providers need to develop marketing strategies that focus on driving customer satisfaction and loyalty through building or strengthening customer perceived trust, perceived corporate image, perceived customer care service, perceived customer expectations, perceived value, and perceived service quality. Thus, customer satisfaction would be achieved and switching behaviour would be minimised by service providers. Service providers would benefit from long-term relationships with improved levels of profitability and competitiveness in the saturated mobile market.