The impact of network service performance on customer satisfaction and loyalty: High-speed internet service case in Korea

Abstract

The high-speed internet service has achieved a remarkable increase in penetration in recent years. In order to survive in this competitive market, companies should continue to improve their service performance. The high level of service performance is believed to be an effective way to improve customer satisfaction and loyalty. This paper aims to identify the causal relationship among network performance, customer satisfaction, and customer loyalty in the high-speed internet service context. Using the data collected from 51 current users of a VDSL service in Korea, this paper derives two types of the causal relationship models, namely, cross-sectional model and longitudinal model. The modeling results are discussed from both descriptive and prescriptive perspectives. (C) 2006 Elsevier Ltd. All rights reserved.