The Mediating Effect of Customer Satisfaction on the Relationship between Marketing Mix and Customer Loyalty in Mobile Phone Services Industry

Mohd. Khirzan Badzli A. Rahman, Siti Asiah Md Shahid
Institute of Business Excellence, Universiti Teknologi MARA

Rozita Naina Mohamed, Nur Najjah Abd Rahim, Felina Felise Fuza Hamdan, Azuati Binti Mahmud
Faculty of Business and Management, Universiti Teknologi MARA


Abstract

This study attempts to identify the impact of marketing mix on customer loyalty mediates by customer satisfaction in the mobile phone services industry. An explanatory study was employed to examine the relationships between the variables. The quantitative research method was used, and data were collected from 384 distributed questionnaires to targeted respondents. Pearson Coefficient Correlation, factor analysis, descriptive analysis, reliability analysis, and regression analysis were utilized to determine the relationships of the variables, and the data were analyzed using a computer software package – Statistical Package for Social Science (21.0). The findings showed that all the marketing mix elements namely product, price, place and promotion have a significant relationship towards customer satisfaction. While findings for the relationship between marketing mix and customer loyalty mediates by customer satisfaction showed that only place and promotion have a significant relationship while product and price were not significant. The study provides mobile phone company managers to come out with a proper guideline on how to utilize the potential use of marketing activities in return for loyalty from the customer. As a matter of interest, this paper describes the effective usage of customer options in buying behavior and survey method for marketing managers to prepare for a better marketing trend in the future.

Keywords: Malaysia telecommunication industry, Marketing mix, Customer satisfaction, Customer loyalty