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Service Quality, Customer Satisfaction and CustomerLoyalty of Mobile Communication Industry in ChinaRuijin Zhang a , Xiangyang Li Ph. D. b & Yunchang Zhang ca School of Management, Harbin Institute of Technology , P R. China Phone: +86 45186414042 E-mail:b School of Management, Harbin Institute of Technology , E-mail:c Student School of Management, Harbin Institute of Technology , P R. China Phone: +860451 86414012 E-mail:Published online: 03 Jan 2012.

To cite this article: Ruijin Zhang , Xiangyang Li Ph. D. & Yunchang Zhang (2010) Service Quality, Customer Satisfactionand Customer Loyalty of Mobile Communication Industry in China, Journal of Global Academy of Marketing Science, 20:3,269-277, DOI: 10.1080/12297119.2010.9707353

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R. Zhang, X Li, Y Zhang / Joumal 01 Global Academy 01 Marketing Science 20-3 (201 269-277 269

Service Quality, Customer Satisfaction and Customer Loyalty of Mobil Communication Industry in China**

Eifj ~ {; JJli ! ffi_;f~-i

Ruijin ZhangIl*, Xiangyang Li2l, Yunchang Zhang3l

Abstract

Previous studies have shown that the rnost irnportant ctor affecting custorner loyalty in the service industry is service quality. However, on the subject of whether service quality has a direct or indirect effect on custorner loyalty, scholars' vi:ws apparently vy. Sorne studies suggest that service quality has a direct and fundarnental influence on custorner loyalty (Bai and Liu, 2002). However, others have shown that service qual-ity not only directly affects custorner loy.ty it also has an in-direct irnpact on custorner loyalty by influencing custorner sat-isfaction d perceived value (Cronin, Brady, and Hult, 2000). Currently, there are few dornestic articles that specifically ad-dress the relationship between service quality and custorner 10yal in the rnobile cornrnunication indusr. Moreover, re-sarch has studied custorner loyalty as a whole variable, rather than breaking it down further into rnultiple dirnensions.

Based on this analysis, this paper surnrnarizes previous study results, establishes an effect rnechanisrn rnodel arnong service quality, custorner satisfaction, and custorner loyalty in the rno-bile cornrnunication indusr and presents a statistica1 test on rnodel assurnptions by using custorner invstigation data frorn Heilongjiang Mobile Cornpany. It provides theoretical guidance for rnobile service rnanagernent based on the discussion of the hypothesis test results.

For data collection, the sarnple cornprised rnobile users in Harbin city, and the svey was taken by randorn slpling Out of a total of 300 questionnaires, 276 (92.9%) were recovered. After excluding invalid questionnaires, 249 rernained, for an effective rate of 82.6 prcent for the study. Cronbachs a coefficient was adapted to assess the scale reliability, and validity testing was conducted on the questionnaire frorn thre aspects: contnt validity, construct validity. and convergent validity. The study tested for goo1s of fit mainly from the absolute and relative fit indexes.

1) * Corresponding author: Associate Prolessor , School 01 Management. Harbin Institute 01 Technology , P R. China , E-mai/: zhangruijin_2004 @163.com. Tel. +86451 86414042

) Ph. D. Supervior, Prolessor, School 01 Management , Harbin Institte 01 Technology. E-mai/: xiangyangli@hi t.edu.cn

3) Student ,School 01 Management , Harbin Institute 01 Technology, P R China , E-mai/: zhangruijin 2004@163.com , Tel: +860451 86414012

** Spported by the Nation Natural Science Foundation 01 China (70971029)

@ 2010 KAMS. AII rights reserved

Frorn the hypothesis testing results, overall, four assurnptions have not been supported. Th ultirnate affective relationship of service quality, custorner satisfaction, and customer loyalty is demonstrated in Figure 2. On the whole, the service quality of the cornrnunication industry not only has a direct positive sig-nificant effect on customer loyalty, it also has an indirect pos-itive significant effect on customer loyalty through seIce quality; the affective mechanisrn and extent of customer loyalty are different, and are influencd by each dirnension of service quality.

This study used the questionnaires of existing literature frorn home and abroad and tested them in empirica1 research, with al1 questions adapted to seven-point Likert scales. With the SERVQUAL scale of Parasurarnan, Zeithaml, and Berry (1988), or PZB, as a reference point, service quality was div-ided into five dirnensions-tangibility, reliability, responsiveness, assurance, and ernpathy-and questions were sirnplified down to nineteen. le measurernent of customer satisfaction was based mainly on Fomell (1992) and Wang and Han (2003), ending up with four questions. Based on the study s three in-dicators of price tolerance, first choice, and complaint reaction were used to measure attitudinal loyalty, while repurchase in-tention, recornrnendation, and reputation rneasured behavioral loyalty. The collection and collation of literature data produced a model of the relationship arnong service quality, custorner satisfaction, and custorner loyalty in mobile cornrnunications, and China Mobile in the city of Harbin in Heilongjiang prov-ince was used for conducting an ernpirical test of the rnodel and obtaining some useful conclusions.

First, service quality in mobile cornrnunication is formed by the five factors mentioned earlier: tangibility, reliability, re-sponsiveness, assurance, and empathy. On the basis of PZB SERVQUAL, the study designed a measurement scale of selce quity for the mobile cornrnunications indus and ob-tained these five factors through exploratory factor analysis. le factors fit basically with the five elemnts indicating the concept of five elernlts of service quality for the mobile cornrnunications indus.

Second, service quality in rnobile cornrnunications has both direct and indirect positive effects on attitudinal 10lty with the indirect effict being produced through the intermediary var-iable, customer satisfaction. There are also both direct and in-direct positive effects on behavioral loyalty, with the indirect ffect produced through two intermediary variables: customer satisfaction d attitudinal loyalty. This shows that better serv-ice quality and hiler customer satisfaction wilI activate the attitudinal to service providers rnore active and show loyalty to

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service providers much easier. In addition, the effect mecha-nism of all dimensions of service quality on all dimensions of customer loyalty is different

lird custom satisfaction plays a significant intennediary role nong service quality and attitudinal and behavioral loy-alty, indicating that improving service quality can boost cus-tomer satisfaction and make it easier for satisfied customers to become loyal customers. Moreover, attitudinal loyalty plays a significant intennediary role between service quality and behav-ioral loyalty, indicating that only attitudinally and behaviorally loyal customers are uly loyal customrs.

The research conclusions have some indications for Chinese telecom operators and others to upgrade their service quality. Two limitations to the study are also mentioned. First, all data were collected in the Heilongjiang area, so there might be a common method bias that skews the results. Second, the dis-cussion addresses the relationship between service quality and customer loyalty, setting customer satisfaction as mediator, but does not consider other factors, like customer value and con-sumer features, This research will be continued in the future.

Keywor.18: Mobile communication industry, Svic quality, Customer satisfaction, Customer loyalty, Empathy

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1. lntroduction

As a pill of China's information society, the communica-tion industry has made gr' contributions to the growth of the national economy. With the rsucturing of the telecom in-dusr in China, the mobile communications market has be-come more competitive. Facing new competition, mobile oper-ators increasingly recognize the importance of customer loyalty. lOugh customer complaints is still one of the hot spots for the Chinese mobile communications market in 2009. Therefore, how to improve srvice quality and keep existing customers is crucial if telecom managers are to improve their perfonnance

Research has shown that the most important factor affecting customer loyalty in a service industry is service quality. However, on the question of whether service quality has a di-rect or indirct effect on customr loyalty, scholars' views

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Vy. Some studies suest it has a direct and fi.mdamental in-fluence (Bai and Liu, 2002), whereas others have shown that it not only directly affects customer loyalty, it also has an in-direct impact by influencing customer satisfaction and per-ceived value (Cronin et al., 2000). Currently, there are few do-mestic articles that focus specifical1y on the relationship be-tween seice quality and customer loyalty in mobile communications. Moreover, the literature has studied customer loyty as a whole variable, not breaking it down further into multle dimensions.

Based on these points, this paper summarizes previous study results, establishes an effect mechanism model among service quality, customer satisfaction, and customer loyalty in the mo-bile communication industry, and presents a statistical test on model assumptions by using customer investigation data from the Heilongjiang Mobile Company. It prodes theoretical dance for mobile service management based on the discussion of the hypothesis test results.

II. Literature Review

2.1. Service Quality

In 1982, Grmoos first put forward the concept of customer perception of service quality, suggesting that servic quality is a subjective catgory dependent on the comparison between customers' expectations of it and their actual perceived service level. Since then, analyzing the concept from fferent per-spectives, scholars have reached a consensus on the view that service quality is actually customer-perceived quality, achieved instantly the moment the service firm comes into contact with customers. In 1988, Parasuraman, Zeithaml, and Berry (pZB)-three of the most influential scholars of service quali dimensions-divided service quality into five elements: tangi-bility, reliability, responsiveness, assurance, and empathy. Since then, other studies (Boulding et al., 1993; McAlexander, Kaldenberg, and Koenig, 1994; Parasuraman, Zeith and Berry, 1994; Zeith Berry, and Parasuraman, 1996) have maintained that SERVPERF is more accurate than SERVQUAL in measuring service quality, although SERVQUAL can pro-vide better diagnostic information. In research on the in-formation industry, similar findings have been proposed (Landrum d Prybutok, 2004; Pitt, Watson and Kavan, 1997; Van Dyke, Kappelman, and Prybutok, 1997), while Zeithaml, Parasurnan and Malhotra (2002) suested that it is not nec-sary to e customers' expectations to measur the service quality of a website. Other studies have concluded that service quity positively influences perceived value (Kuo, Wub, and Deng, 2009). Most previous studies on service quality have been at an aggregate level, their results implying that future research on seice quality must focus on a selent level (Park, Lee, and Choi, 2009). To sum up, this study has adapt-ed the PZB dimensions of service quality

2.2. Customer Satisfaction

Cardozo (1965) frrst conducted an empcal study on cus-tomer satisfaction in the field of marketing and raised the point that customer satisfaction would lead to repurchase behavior. Due to different perspectives, scholars understand customer satisfaction differently. Kotler (1996) defined it as a "pleasant or disappointed state formed by compmg a persons perceived effect or result on one product and his or her ex-pected value." Currently, most scholars emphasize customer satisfaction as customers' evaluation of accepted products or service processes to determine whether the actual quality can achieve their level of expectation. Among studies of the tele-com industry, Wang et al. (2003) investigated mobile servces in China and Canada, respectively, and found that service quality is positively related to prceived value. In terms of mobile commerce, Lin and Wang (2006) have indicated that in a mobile commerce environment, customer satisfaction is the customers post-purchase evaluation and affective response or feeling to the overall product or service experience.

2.3. Customer Loyalty

Early research on customer loyalty focused on repurchase behavior. In recent years, scholars have suested that custom-er loyalty is a continuous mental process which in turn influ-ences consumer behavior. By systematically ordering more than 300 relevant studies, Jacoby and Chestnut (1978) summarized their understanding of customer loyalty from behavior and atti-tudinal angles. In the behavioral point of view, customr loy-alty is promised repurchase behavior on a product or svice; in th attitudinal point of view, it is seen as a product or sence preference and dependence. ls paper suggests that custom:r loyalty includes both aspects, attitudinal and behav-ioral, as an organic unity between positive psychogical ten-dency and repurchase behavior.

III. Research Model and Hypotheses

3.1. Service Quality and Customer Satisfaction

le literature lacks consensus on describing the relationship between service quality and customer satisfaction. Most schol-ars believe service quality is the antecedent. In a study of the causal relationship between perceived service quality and cus-tomer satisfaction, Cronin and Taylor (1 992) reinforced the point that only perceived service quality decides customr satisfaction." Taylor and Baker (1 994) showed that customer satisfaction is a concept of hiler level than service qual-ity,"which means that service quality affects customer satisfaction. Zeithaml et al. (1996) noted that customer sat-isfaction is genrally regarded as a broader concpt than seice quality; therefore, service quality is an important factor of

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custom:r satisfaction. Previous studies of conventiona1 retailing have pointed out that service qua1ity positive1y influences cus-tomer satisfaction (Cronin et a1., 2000; Johnson and Fomell, 1991; Kristensen, Martensen, and Gronhdt 2000). Sirni1ar conclusions have been proposed by studis of websites and on-1ine shopping (Collier and Bienstoc 2006; Kim and Park, 2007). Among studies of the te1ecom industry, Wang et al. (2003) conducted an investigation in China, whi1e Kim, Park, and Jeong (2004) investigated mobi1e svices in South Korea, Singapor and Canada, respective1y. Cho and Shim (2001) studied the determinants of customer satisfaction in e-com-merce, whereas Kim, Shim, and Shin (2009) showed the ef-fects of service quality and va1ue on customer satisfaction and service 10yalty. les studies a1so support the finding that service quality positivy influences customer satisfaction. According1y, this study proposes the following hypotheses to be verified:

Hla. T19ibility of service quality has a siificant positive fect on customer satisfaction

Hlb. RJ1iability of service qua1ity has a significant positive ef-fect on customer satisfaction.

Hlc. Responsiveness in service quality has a significant pos-itive effect on customer satisfaction.

Hld. Assurance of service quality has a silficant positive ef-fect on customer satisfaction.

Hle. Empathy in service qua1ity has a significant positive ef-fect on customer satisfaction.

3.2. Service Quality and Customer Loyalty

Zeitharn1 t a1. (1996) found that a high customer service qua1ity eva1uation 1eads to favorab1e behaviora1 intentions, such as positive publicity or recommendations, or 1eads to negative intentions, such as turning to other companies for the srvice. B10emer Josee, Ruyter Ko de. (1999). found that service qual-ity has a positive corre1ation with customer 10yalty, with dif-ferent eftcts in dirent sectors. Taking the American life in-surance industry as a research object, Tay10r (2001) found that the impact of service quality on customer recommendations was not significant, but its effect on customer repeat purchase intentions was significant and positive. Wang Chunxiao and others' (2003) empirica1 results show that service qua1ity not on1y has significant indirect effects on customer behaviora1 in-tentions, but a1so a significant direct impact. Kim and Jackson (2009) proposed a theoretical framework of service quality in the context of on1ine shopping and identified two aspects of core and recovery services. A study by Noh and Seo (2009) found that the 1ve1 of customer satisfaction differed depending on the cu1tura1 dimensions and socioeconolllc factors of two countries, Korea and China. According1y, the current study proposes the following hypotheses to be verified:

H2a. Tangibility of service qua1ity has a significant positive ef-fect on attitudina1 10yalty.

H2b. R.!1iability of service quality has a significant positive ef-fect on attitudina1 10yalty.

H2c. Responsiveness in service quality has a significant pos-itive effect on attitudinal 10ya1ty.

H2d. Assurance of service quality has a significant positive ef-fect on attitudina1 10ya1ty.

H2e. Empathy in service quality has a significant positive ef-fect on attitudina1 10ya1ty.

H3a. Tangibi1ity of srvice quality has a significant positive ef-fect on behaviora1 10ya1ty.

H3b. Reliability of service qua1ity has a significant positive ef-fect on behaviora1 10ya1ty.

H3c. Responsiveness in service qua1ity has a significant pos-itive effect on behaviora1 10ya1ty.

H3d. Assurance of svice quality has a significant positive ef-fect on behaviora1 10ya1ty.

H3e. Empathy in service quality has a significant positive ef-fct on behaviora1 10ya1.

3.3. Customr Satisfaction and Customer Loyalty

Most scho1ars believe that customer satisfaction 1eads di-rectly to customer 10ya1ty, which is formed on the basis of satisfaction. Higher customer satisfaction reduces perception in-terests brought by switching bhavior which 1eads to hier customer 10ya1ty. Cronin and Tay10r (1992) pointed out that customer satisfaction has a significant effect on purchase in-tentions, whi1e its intluence is greater than that of service quality on purchase intentions. In the "service profit chain" mod1 Heskett, Sasser and Sch1esinger (1997) made it clear that customer satisfaction 1eads directly to customer 10ya1ty. In addition, Anderson and Sullivan (1993), Ramsey and Sohi (1997), and other researchers have a1so found a song corre1a-tion between customer satisfaction and seice 10ya1ty. According1y, the following hypotheses are proposed:

H4. Customer satisfaction has a significant positive effect on attitudina1 10yalty.

115. Customer satisfaction has a significant positive effect on behaviora1 10ya1ty.

3.4. Artitudinal and Behavioral Loyalty

Oliver (1999) points out that the order of customer 10ya1ty formation is the creation of awareness loy.ty followed by emotiona1 loya1ty, then loya1ty in the 1evel of behaviora1 in-tention, and finally behavioral loyalty. In research on th r1ationship between customer satisfaction and loya1ty to service enterprises,Wang and Han (2003) distinguish four different types of customer 10yal and demonstrate that loya1ty in a previous stage will directly affect loya1ty in a later stage, thus supporting Olivers point of view. Empirical results from Gu and Su (2006) show that customers cognitive 10yalty and in-tention 10ya1ty directly affect behaviora1 loya1ty. According1y, this study proposes the following hypothesis to be vfied:

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H6: Attitudina1 1oya1ty has a siificant positive effect on be-

havioral 10ya1ty.

Based on the above theortical ana1yses, Figure 1 describes the research mode1 of the re1ationship among mobile communi-catlOn svice quality, customer satisfaction, and customer 10yalty.

Fig. 1 Conceptual model

N. Research Approach

4.1. Questionnaire Design

ls study adapted the questionnaires of existing 1iterature

from home and abroad, which had been tested in empirica1 research. All questions were measured using seven-point Likert-type sca1es. In adapting the PZB SERVQUAL sca1e, service quality was divided into five e1ements-tangibi1ity, reli-abi1ity, responsiveness, assurance and empathy-and the ques-tions wre simplified down to nineteen. le measurement of customer satisfaction was adapted from Fomell (1992) and Wang and Han (2003) scale, ending up with four questions. From scales were adapted for th three indicators of price to1-erance, frrst choice, and comp1aint reaction to mease attitudi-na1 10ya1ty, and three indicators of repurchase intention, recom-mendation, and reputation to measure behavioral 10yalty.

4.2. Sample and Data Collection

Due to many factors such as human, material, and financia1 resources, this research was limited to the city of Harbin, with mobi1e users as the targets. From November to December 2009 the survey was taken by random slp1ing nding up with a tota1 of 300 questionnaires, from which 276 ques-tionnaires were recovered, for a recovery rate of 92 percent. Excluding invalid questionnaires, 249 questionnaires were valid, which means th effective rate was 83 percent. Most of the research subjects were men (60.6%) whose ages r1ged primar-i1y from 21 to 30 years old (39.8%) and 31 to 40 years old (28.9%). Mobi1e phone costs ranged primari1y from 50 to 100 yuan (40.6%) and 100 to 150 yuan (22.9%).

V. Data Analysis and Hypothesis Testing

5. 1. Reliability Analysis

Cronbach's coefficint was used to assess sca1e reliabi1ity for this study. As Tab1e 1 shows, the Cronbachs of all 1a-tent variab1es was 0.833 to 0.898, which was higher than the standard va1ue of 0.80. At the sne time, as shown in Tab1e 2, one of the indicators testing the reliability corre1ation co-efcient of the comp1ex square (R2) va1ue was higher than the

standard 0.30. In addition, the value of the 1atent variab1es constructed by confrrmatory factor anasis of reliability (CR)

Table 1. Tests of reliability

ItI Tangibility 3 0.833

Reliability 4 0 885

Service qlity Responsiveness 4 0.856

Assurance 4 0.885

Empathy 4 0.869

Customer satisfaction 4 0.898

Attitudinal loyalty 3 0.839

Behavioral loyalty 3 0.867

Table 2. Confinnatory factor analysis

T1bility 0.63

Reliality 0.71

Responsiveness 0.60

Assurance 0.66

Empathy 0.63

0.69

Attitudinal loyalty 0.67

Blavioral loyalty 0.69

Notes: (t~ r /{ ~2 +} VE ~2 /{ + t, e}

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ranged from 0.84 to 0.91 , hiler than the recommnded value of 0.60. In summy the reliability of the scale used in this

study was good

5.2. Validity Analysis

Validity testing was conducted on the questionnaire from

three aspects: content validity, construct validity, and con-vergent validity. First, the reference scales in the previous em-pirical studies showed hi1 validity; therefore, the scale did not have the problem with content validity. Second, the result of confrrmatory factor analysis showed that X 2/df = 1.37, AGF1=0.90, GF1=0.91 , RMSEA=O.04, NFI=O.91 , IFI=0.97, and CFI=O.97. le indicators reached an acceptable level, indicat-ing that the questionnaire had high consuct validity. In addi-

tion, as shown in Table 2, the standardized regression weights of latent variables were 0.67 to 0.88, so all passed through T-testing; the variance extracted (VE) of latent variables was

higher than the recommended value of 0.50 proposed. Therefore, the scale had good convergent validity.

5.3. Model Analysis and Hypothesis Testing

This study tested goodness of fit mainly from the absolute and relative fit indexes. As Table 3 shows, the absolute fit in-dexes of the structural model were: X 2/df =1.93, AGFI=0.90, GFI=O.91, RMSEA=.04; relative fit indexes were: NFI=0.91 , NNFI=0.93 , CFI=O.93. In addition, other indicators were more desirable. Therefore, the model and date have a hi1 goodness of fit.

Table 3 Analysis of overall model fit

Abso1ute fit lndexes

Comparative fit Indexes

le results of testing the hypotheses of the study are shown

in Table 4. Overall, four assurnptions were not supported, nnely: Hld, H2a, H3a, and H3e. In the frrst set of assurnp-tions, except for assurance, other dimensions of service quality had a significant positive effect on customer satisfaction. Moreover, the effect path coefficient of responsivness was the largest (=0.39) followed by empathy (=0.31). In the sec-

ond set of assumptions, except for tangibility, other dimensions of service quity had siificant positive effects on attitudinal

loyalty. According to the value of the effect path coefficient, the ranking was responsiveness, empathy, reliability and assurance. In the third set of assurnptions, reliability, re-sponsiveness, and assurance of service quality had significant positive effects on behavioral loyalty, with path coefficients of

Table 4. Hotheses testing rest

H1a: T19ibi1ity Customer satisfaction 0.17** Hl b : Re1iability Customer satisfaction 0.24*** H1c: Responsiveness Customer satisfaction 0.41 *** Hld: Assrance Customer satisfction 0.07 Hle : Empathy Customer satisfaction 0.33*** H2a: Tanbi1ity Attitudinal 1oya1ty 0.04 H2b : Re1iability Attitun loy.ty 0.19** H2c : Responsiveness Attitunal 1oya1ty 0.28**' H2d : Assurance Attituna1 10yalty 0 16** H2e : Empathy Attitudina1 loyalty 0.25*** H3a : Tangibility Behavioral 10yty 0.02 H3b : Reliability Behavioral loyalty 0.22*** H3C : Responsiveness Behaviora1 1oya1ty 0.20*** H3d : Assurance Behaviora1 loyalty 0.35*** H3e : Empathy Behaviora1 loyalty 0.09 H4 : Customer satisfction Attitudinal 1oya1ty 0.38*** H5 Customer satisfaction Behavioral loya1ty 0.26* H6 : Attitudinal 10yty Behavioral 1oya1ty 0.59***

Note : is standard path coefficient ; neans p

R. Zhan X Li, Y. lang I Journal 01 Global Academy 01 Marketing Science 20-3 (201 269-277 275

0.26**'

0.59**'

0.38'"

0.41"'**

0.33'"

Customer satisfaction

Fig. 2 Moditied model

alty of their customers. Therefore, mobile operators need to strenhen seice personnel training and management, and make up a ten consisting of interdisciplinary talents who know both technology and enterprise m:tagement.

(3) The responsiveness of service quality has a direct pos-itive influence on customer satisfaction, and both a direct and indirect positive influence on customer loyalty. It also in-directly affects attitudinal loyalty through customer satisfaction, and behavioral loyalty through customer satisfaction d attitu-dinal loyal. The faster response speed mobile operators pro-vid the higher the degree of satisfaction and loyalty of their customers. Therefore, irnpoant measures should be considered for irnproving customer satisfaction. le path coefficient of rsponsiveness to customer satisfaction is 0.41, the biggest of the study, so improving comp1aint solution abilities and reducing queue tirnes are two irnportant means for irnproving customer satisfy.

(4) le assurance of service quality has no positive effect on attitudinal loyalty, but does positively affect customer satisfaction. Its positive ef:fict on behavioral loy.ty is both di-rect and indirect. Furthermore, assurlce has indirect ect to behavioral loyalty by attitudinal loyalty. The more stable serv-ice mobile operators airn to supply, the more training and ed-ucation employees need. If so, customers are inclined to choose those kinds of mobile operators, indicating that the op-erators should focus on transfir quality.

(5) Tangibility of sce quality has a direct positive effect on customer satisfaction, both a direct and indirect positive ef-fect on attitudinal loyalty, and an indirect positive effect on service satisfies. It also has an indirect positive ect on be-havior thou attitudinal loyalty. The more convenience service operators can supply, the more loyal customrs will be. For a

more competitive advantage, mobile operators should draft a differentiation strategy for service.

(6) In the mobile indusr customer satisfaction has a sig-nificant positive effect on attitudinal loyalty, and both direct and indirect positive effects on behaoral loyalty. Attitudinal loyalty is the mediator of this indirect positive effect.

(7) Finally, attitudinal loyalty of customers can positively af-fect their beha'or but fmns should ultimately actively pursue those customers who have both attitudinal and behaviora1 loyalty.

VI. Conclusions, Limitations, and Future Research

6.1. Conc1usions

Through the collection and collation of literature data, this study has bui1t a model of the relationship between service quality, customer satisfaction, and customer loyalty in mobile communications. Taking China Mobile in Harbin as an inves-tigation subject, it conducted an empirical test on th model. Some useful conclusions have been obtained.

First, service quality in mobile communication is formed by five factors: tangibility, reliability, responsiv1ness assurance and empathy. On the basis of the scale designed by PZB, SERVQUAL, a measurement scale of service quality designed for the mobile communications industry obtained five factors through the exploratory factor analysis. The five factors fit ba-sically with the five elements, indicating the concept of five lements of service quality for the industry.

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Second, service quality in mobile communications has a di-rect and inrect positive effect on attitudinal loyalty, with the indirect effect produced throu the intermediary variable: cus-tomer satisfaction. The positiv effect on behavioral loyalty is both direct and indirect, with the indirect effect produced through two intermediary variabls: customer satisfaction and attitudinal loyalty. This shows that btter service quality and hiler customer satisfaction in mobile communications. We can make it much easier that the attitudinal more active and show loyalty to service providers. In addition, the effect mechanism is diffirent that all dimensions of service quality on all di-mensions of customer loyalty

lird customer satisfaction plays a significant intermediary role among srvice quality, attitudinal loyalty, and behavioral loyalty in mobile communications, indicating that improved quality can increase customr satisfaction d lead to grater loyalty among them. Attitudinal loyalty plays a significant in-termediary role between service quality and behavioral loyalty, indicating that only attitudinally and behaviorally loyal custom-ers are truly loyal.

6.2. Limitations and Future Research

There are two limitations in this study. First, all the data in this article were collected in the Heilongjiang area, so there might be a common method bias that would disturb the rsults. Second, the study discussed the relationship betwen service quality and custom:r loyty setting customer sat-isfaction as the mediator, but without considering other factors such as customer value and consumer features. This research will continue in the future.

At present, Chinse scholars resarch of the mobile tele-communication industry is limited to the personal consumption market. However, family and customer group clients are also an important source of profit in telecom nterprises. Therefore, future research could expand the scope of the study to the two markets, and construct a mechanism of service quality and cus-tomer loyalty.

(RIcived: July 1, 2010) (Revised: August 13, 2010) (Accepted: Septmber 29, 2010)

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