The Effect of Perceived Relationship Quality on Customer Retention in the Jordanian Cellular Telecommunication Market

Abstract

Customer retention has become more and more important in customer relationship management since last decade of the last century, especially in service industry. This is due to fierce competition between companies in today's business. Consequently, companies are required to build long-term profitable relationship with their customers. Therefore, this study is aimed to investigate the impact of relationship quality tactics (satisfaction, commitment and trust) on customer retention, by focusing on the Jordanian mobile telecommunications market. An analytical model is developed to test the relationships between model variables. A self-administered questionnaire is designed and distributed to the students in four universities (Jordanian, Mutah, Isra and Alzaytoonah). A structural equation model technique using AMOS 16.0 was used to analyze data. The findings show that customer satisfaction and trust have direct and indirect effect (through commitment) on customer retention. Furthermore, customer satisfaction and trust have direct effect on customer commitment. Finally, customer commitment has .a direct effect on customer retention