User Satisfaction with Mobile Services in Canada

Abstract: While satisfaction and loyalty in regards to physical goods and some services have been studied to a great extent in marketing and information systems research, there is little research on these factors with respect to mobile telecommunications services. Furthermore, there is no standard measure for satisfaction with these services. This study taps into these voids and examines the antecedents of satisfaction and loyalty through an empirical study of 80 cellular subscribers in Ontario, Canada. Results of the study suggest that most causal relationships depicted by the American Customer Satisfaction Model are valid in the mobile telecommunications sector. However, due to the switching barrier, loyalty to a wireless service provider is no longer a unidimensional construct, but rather comprised of two independent factors – repurchase likelihood and price tolerance. This investigation also suggests that there are some differences in service perceptions between prepaid and post-paid cell phone users. Based on the model, a satisfaction index is calculated for Canadian wireless service providers. This index is found to be low in comparison to those of other sectors and industries. Overall, this study forms the foundations for future benchmarking of the performance of wireless network operators in terms of satisfaction and loyalty.