SATISFACTION, PRICE FAIRNESS AND LOYALTY: THE CASE OF MACEDONIAN MOBILE SERVICE MARKET

Abstract

The goal of this research study is to reveal if there are significant differences in price fairness perceptions and in loyalty among mobile service users with different level of satisfaction in Macedonia. Namely, the marketing theory has paid significant attention to the concepts of satisfaction and loyalty and their relationship in terms of the effect of customer satisfaction on loyalty claiming that the relationship is positive and significant. Besides abundant discussions about customer satisfaction and loyalty, the topic of price fairness and its linkage with customer satisfaction represent additional important issue that has been attracting significant attention among the scholars recently. A data set of 117 effective responses obtained from survey conducted among university students in Macedonia were analyzed by using exploratory factor analysis, the analysis of variance (ANOVA) and Kruskal-Wallis test. The results of factor analysis provided support for unidimensionality of both dependent variables: customer loyalty and price fairness. ANOVA and Kruskal-Wallis test were used to test the proposed hypotheses. The factor analysis showed that the measurement items of both variables (price fairness and customer loyalty) are reliable indicators of the adequate latent variables. The results of ANOVA test showed no significant differences in price fairness among customers with different level of satisfaction. The results of the Kruskal-Wallis test indicated the existence of significant differences in loyalty among customers with different level of satisfaction. This research study is the first study in Macedonian context to offer evidence-based insights on the influence of level of satisfaction on price fairness and customer loyalty in mobile services market. This research gives valuable insights into the relationship of satisfaction and price fairness and satisfaction and loyalty in Macedonian telecommunications market for both telecommunications companies and regulatory institutions that can be used when designing appropriate marketing strategies and national telecommunications strategy.