12
Th B Receive doi:10.5 he Imp Barriers Asso Re Re ed: June 17, 5296/jmr.v4 pact of C s on Cu Tele ociate Profe Professor , search Scho Sukk search Scho , 2012 A 4i4.1963 Custom ustomer ecomm Niaz essor , Sukku Air Port R Sar University Irsha (Corre olar , Sukkur Air Port R E-mail: Ih_ Rafiqu kur Institute Air Port R Im olar , Sukkur Air Port R Accepted: S URL 180 mer Sat r Loyal municati z Ahmed Bh ur Institute Road Sukku rwar M. Az y of Manage Lahore ad Hussain esponding a r Institute o Road Sukku _sarki@iba- ue Ahmed K e of Busines Road Sukku mran Arshaa r Institute o Road Sukku September 2 L: http://dx. isfactio lty in P ion Ser hutto of Business ur, Pakistan zhar ement and T Sarki author) of Business A ur, Pakistan -suk.edu.pk Khuhro ss Administr ur, Pakistan ad of Business A ur, Pakistan 2, 2012 P doi.org/10.5 Journal of M on and Pakistan rvices s Administra T echnology Administrat k ration Administrat Published: O 5296/jmr.v4 Management ISSN 19 2012, Vol. www.macrothi Switch ni Mob ation tion tion October 1, 2 4i4.1963 Research 941-899X 4, No. 4 ink.org/jmr hing ile 2012

The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

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Page 1: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

Th

B

Receivedoi:10.5

he Imp

Barriers

Asso

Re

Re

ed: June 17,5296/jmr.v4

pact of C

s on Cu

Tele

ociate Profe

Professor,

search Scho

Sukk

search Scho

, 2012 A4i4.1963

Custom

ustomer

ecomm

Niaz

essor, Sukku

Air Port R

Sar

University

Irsha

(Corre

olar, Sukkur

Air Port R

E-mail: Ih_

Rafiqu

kur Institute

Air Port R

Im

olar, Sukkur

Air Port R

Accepted: S URL

180

mer Sat

r Loyal

municati

z Ahmed Bh

ur Institute

Road Sukku

rwar M. Az

y of Manage

Lahore

ad Hussain

esponding a

r Institute o

Road Sukku

_sarki@iba-

ue Ahmed K

e of Busines

Road Sukku

mran Arshaa

r Institute o

Road Sukku

September 2L: http://dx.

isfactio

lty in P

ion Ser

hutto

of Business

ur, Pakistan

zhar

ement and T

Sarki

author)

of Business A

ur, Pakistan

-suk.edu.pk

Khuhro

ss Administr

ur, Pakistan

ad

of Business A

ur, Pakistan

2, 2012 Pdoi.org/10.5

Journal of M

on and

Pakistan

rvices

s Administra

Technology

Administrat

k

ration

Administrat

Published: O5296/jmr.v4

Management ISSN 19

2012, Vol.

www.macrothi

Switch

ni Mob

ation

tion

tion

October 1, 24i4.1963

Research 941-899X 4, No. 4

ink.org/jmr

hing

ile

2012

Page 2: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

Abstra

The sucstrateginew cucustomecustomequestionpopulatregressiswitchinhave siggender telecommakers

KeywoPakistan

ct

ccesses of thes. In respo

ustomers byers througher satisfactinnaire basetion includeion methodng barrier ognificance rdifferences

mmunicationin telecom

rds: Servicn

he firms deponse, the iny offering h creating cion and swed survey es all the cd is used ton customerrelationships among cun services. industry an

ce Quality,

pend on crendustry is sh

competitivecustomer lo

witching barusing simp

current userto test the r loyalty. Thps with custustomer satiFindings of

nd the result

Switching

181

eating high hifting its se prices an

oyalty. This rriers on cuple convenrs of mobiimpact of

he result shotomer loyaltisfaction anf the study ts can be ge

Barriers, C

customer lostrategic focnd package

study aimustomer loyient sampliile telecomm

customer ows that calty. A one w

nd switchingmay be us

eneralized to

Customer S

Journal of M

oyalty by adcus away fres, towards s to investialty. The ding techniqmunication satisfaction

ll quality anay ANOVAg barriers iseful for stro the industr

atisfaction,

Management ISSN 19

2012, Vol.

www.macrothi

dopting appfrom attracti retaining igate the ef

data is colleque and th

services. Mn determinand customerA test was ain Pakistanirategists andries.

Telecom I

Research 941-899X 4, No. 4

ink.org/jmr

propriate ing only existing

ffects of ected by he target Multiple ants and r support also used i mobile d policy

Industry,

Page 3: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

Introdu

A lot ofthroughone studare deteorganizcompanand soman impo

The MDespitetheir nein theirleading Telenortelecomgeneratcompargrowing

Every cpackageretain thmake alikes tosatisfacIn this Mother

On the satisfacexplorinof the satisfacbecomethe cust

The obj

1- To prPakistan

2- To aPakistan

uction

f studies havh satisfying dy Pollack erminants ozation in many. But sommetimes it fortant role in

Mobile telece the slowdoetwork expar subscriber

the mobilr 23.99%, U

mmunicationion and its

rison to theg though av

company ises and markheir custom

a strong bono remain wction is not esituation swsbahgh & B

regional lection (Ali etng the impacustomers;

ction and swes necessarytomer loyalt

jectives of t

redict the imni mobile te

analyze the ni mobile te

ve been dona customer(2009) has f customer aking profit

me researchefails in provn the influe

ommunicatown in the ansion by exrs’ base. Acle market oUfone 19.7n industry s revenue ie last year verage a slow

s trying to keting camp

mers (Shin etnd with thewith the cuenough for witching baBetty, 2002)

evel severalt al., 2010;

act of custombut there

witching bay to explainty in the Pa

this study ar

mpact of cuelecommuni

gender diffelecommuni

ne to find our and switchbriefly expsatisfactiont. A highly rs argues thviding expeencing loyal

ion serviceeconomy o

xtending serccording to of Pakistan1%, Warid remains onincreased b(PTA, 201

wer rate.

capture thpaigns. It is t al, 2004).

e customers urrent comthe loyalty

arrier plays ).

l studies hakhan, 2010

mer satisfacis no such

arriers on Pthat how cu

kistani mob

re,

ustomer satisication serv

ferences amication serv

182

ut the effecthing barrierplained that n, lead to cu

satisfied cuhat customeected resultslty (Jones, M

es in Pakisof Pakistan rvices to diPTA’s repo

n, The mark17.07% an

n the top iby 11% and10). It mea

he customeusually difIn such a sc through br

mpany. But and sometian importa

ave been co0). Howevection and seh study thatPakistani mustomer sat

bile telecom

sfaction andvices.

mong customvices.

tive means r (Min &Wadifferent fa

ustomer loyaustomer liker satisfactios, in this sitMothersbahg

stan are womobile pho

ifferent ruraort market sket share ond Zong 6.6n the curred the subscans that mo

ers of otherfficult for thcenario it isrand loyalty

some reseimes it failsant role in t

onducted oner, these stuervice qualitt has expla

mobile telectisfaction an

mmunication

d switching

mers satisfac

Journal of M

of generatinan, 2009; Kactors of seralty which ies to remai

on is not enotuation switgh & Betty,

orking inteone service al areas resushare of Moof other mo67% respecent year incription basobile teleco

r operators he mobile nes necessary y. A highly earchers arg in providinthe influenc

n the anteceudies have ty respectiveained the imommunicatnd switchingn services th

barrier on

ction and sw

Management ISSN 19

2012, Vol.

www.macrothi

ng customerKim et al., 2

rvice qualitis beneficiain with the ough for thetching barri,2002).

ensive comproviders c

ulting in theobilink is 3obile operactively. Then terms of se grew by

om industry

through aetwork operfor the ope

y satisfied crgue that cng expectedcing loyalty

edents of cmainly foc

vely on the rmpact of ction service

ng barriers inhrough this

customer lo

witching ba

Research 941-899X 4, No. 4

ink.org/jmr

r loyalty 2004). In ty which al for the

existing e loyalty ier plays

petition. continue e growth 32.47%., ators are e mobile revenue

y 5% in y is still

attractive rators to rators to

customer customer d results. y (Jones,

customer cused on retention customer es. So it ncreases study.

oyalty in

arriers in

Page 4: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

This stuin ordercustometelecomstrategicustomediscussitheir claof mark

Literat

Custom

CustomScheftethe intepromotiresearchLee & Fand quconsideSchefte

Accordconativand infoloyalty behavioThere aattitudinpermanis a com

A highlargue tprovidininfluenc

Switchithe sam

In otherretainin

Custom

Many r

udy will ber to enhanceer satisfact

mmunicationes to makers properlying the conassrooms. M

keting.

ture Review

mer loyalty

mer loyalty ier, 2000). Cension of ions and sihers arguedFeick, 2oo1

uality produered as oneer, 2000).

ing to Olivee, affective

formation, arefers to th

or is in the are three apnal approac

nence of pasmbination of

ly satisfied that customng expectedcing loyalty

ing barriers me for all the

r words comng existing c

mer Satisfac

researchers

e beneficial e the loyaltyion and swn services. e the potey. This stud

ncepts of cuMoreover th

w

is such a depCustomer loy

a customerituational ind that custom1; Oliver, 19ucts (Parase of the co

er (1999) thand action

affective loyhe behaviorainterest of tpproaches tch and integst purchasesf both behav

customer limer satisfact

d results. Iny (Jones, Mo

play an impe operating

mpanies’ sucustomers d

ction

in the liter

for the Paky of custom

witching barThis study ntial custo

dy will alsoustomer satihis study w

pendent varyalty in ther to stay wnfluences thmer loyalty999) and thsuraman &mpetitive a

here are fouloyalty. Co

yalty is formal intention the companto study cugrated appros, second exvioral and a

ikes to remtion is not n this situatothersbahgh

portant rolecompanies

urvival and during inten

rature argue

183

kistani mobmers with thrriers on thwill be be

omers loyalo be beneficisfaction, sw

will provide

riable that ie context ofwith the cuhat causes

y can be genhis can be a

&Grewal, 20and a signi

ur stages of ognitive loymed on the to purchase

ny in terms ustomer loyaoach (Oh, xplains the attitudinal.

main with theenough fo

tion switchih & Betty, 2

e in custome(Gerpott et

growth, cunsive compe

e that highe

bile telecomhem. This sthe customeeneficial forl by fulfillcial for the witching barecommend

s used by mf mobile telurrent operswitching b

nerated by dchieved thr000). In bificant facto

loyalty devalty is formbasis of co

e and actionof providin

alty. These 1995). The sense of go

e current coor the loyaing barrier 2002).

er loyalty wal., 2001; K

stomer loyaetition (Ahm

er level of

Journal of M

mmunicationtudy will exr loyalty inr the markeing the nestudents an

arriers and cdations for

many researclecommunicrator regardbarriers (Oldelighting tough provid

business, cuor for succ

velopment; tmed on the Bollective expn loyalty. Thng firm imp

include befirst descriod will of c

ompany. Bulty and somplays an im

when the levKim et al., 2

alty plays a mad & Buttle

customer sa

Management ISSN 19

2012, Vol.

www.macrothi

n services pxplain the imn Pakistanieters while eeds and wnd instructocustomer lothe future r

chers (Reiccation is dedless of mliver, 1999)the customeding superiustomer locess (Rreich

these are coBases of knoxperiences; cThis repeat pproved profehavioral apibes the cuscustomers a

ut some resmetimes it

mportant rol

vel of satisfa2004).

a significante, 2002).

atisfaction

Research 941-899X 4, No. 4

ink.org/jmr

roviders mpact of i mobile

making wants of rs while

oyalty in research

chheld & efined as

marketing ). Many ers (Lee, or value yalty is hheld &

ognitive, owledge conative purchase fitability. pproach, stomer’s and third

earchers fails in

le in the

faction is

t role by

leads to

Page 5: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

higher satisfac2004; Osatisfacdoes thareas of

Lee et aservicesdimensiplans ,n

Researcswitch tthat swfactors

Customcustomedissatis

In the mmobile supportwhich l

Switchi

Fornell operatoswitchinexplainand inte

Switchioperatoswitchinquestionpsycholtelecomadoptio

Some sloyalty moderaat al. 20or mod

level of cction is definOliver, 1999ction that is his while acf service ind

al (2001) des and priciions of cus

network qua

ch done by to other ope

witching of c(Kim et al.,

mer’s own per satisfactifaction form

mobile telecdevices, va

t to measureeads to cust

ing Barrier

(1992) defor to anotherng barrier, ted that swierpersonal r

ing cost is dor (Porter, 2ng away frn. The cost logical cos

mmunicationon cost (Kim

cholars hav(Sharma

ating effect o000, Bansalderating eff

customer loned as the f9). In the fsignificantl

cknowledgindustry and b

escribed cusing plan bstomer satiality, enterta

the Vividenerator, 28%customers t, 2004; Shin

perception aion (Zeithammed after th

communicatalue added e service qutomer loyal

rs

fines switchr operator bthe more thitching barrrelationship

defined as t2008).Switcrom the cur

are incurrest (Dick an services, m et al., 200

ve explainedand Pattersof switchingl and Taylorfect of swit

oyalty (Yanfulfillment ofollowing sly relevant tng that a vabusinesses.

stomer satisbut Lim et isfaction suainment serv

nce Corpora due to the

to other servn et al., 2004

about the smal & Bitnehe use of ser

tion service services, couality (Kimty and price

hing barrierby a dissatishe customer rier is made.

the cost incching cost rrent produed in terms and Basu switching c4).

d that there son 2000, g cost on cur 2004). Contching cost

184

ang &Peterof customersection the to the mobiast body of

sfaction in tal., (2006

uch as custvices and SM

ation (2002)better servi

rvices is ma4).

service qualer, 1996). Srvice (Paras

provider inonvenience

m et al 2004es profitabil

r as the diffsfied custom

r will remaine up of the

curred whenmeans the

uct and this of time , m,1994 & cost is defi

is a signifiSharma 2

ustomer loyntrarily Yant on custom

rsen 2004; r’s expectatipaper focule telecomm

f literature e

three groups6) on the tomer serviMS service

) found thatice. But somainly due to

lity is the mervice quali

suraman, Ze

ndustry manin using, p

4; Gerpott, elity (Pollack

fficulty in cmer. Literatn with the eswitching

n switchingcost that cost depen

money wasteAidin, 200

fined as the

cant effect 003) while

yalty (Lee eng & Petersmer loyalty

Journal of M

Lee et alions and per

uses on litermunication sexists that i

s of core seother handices, locatos.

t 35% of theme researcho better pric

main anteceity is define

eithmal & B

ny researchepricing strucet al., 2001;k, 2009).

hanging theture informsexisting opecost, altern

g from one oa customernds on the ed and also 05).In terme loss cost,

of switchine other sayt al., 2001;

son (2004) fy. After fur

Management ISSN 19

2012, Vol.

www.macrothi

l., 2001).Cerceptions (Mrature on cservices. This targeted

ervices, valud proposed or services,

e mobile cuhers contritece along wi

edent that ed as satisfa

Berry, 1998)

ers used calcture and c; and Freick

e service frs us that hierator. Stud

native attrac

operator to r has to patype of proincludes in

ms of the move in c

ng cost on cys that theOliver 199

found that nrther analys

Research 941-899X 4, No. 4

ink.org/jmr

Customer Moshavi, customer he paper in other

ue added several pricing

ustomers ely argue ith other

explains action or .

ll quality, customer k, 2001)

rom one gher the

dies have ctiveness

another ay while oduct in

ntangible mobile

cost and

customer ere is a 9, Jones

no direct sis they,

Page 6: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

howevecustome

Alternacompanalternatservice

There aSome o2007), Pattersocustome

Interpercommuhave suswitchin

Method

This rebarrier comparon loyavariablemeasurivariableservicesthe swrelation

ConvenShah Afocusinattentiothe servquestionand thuanalyse

The samdistribumales a32.7% telecomWarid 6

er found thaer satisfacti

ative attractny availabletive attractiquality of a

are lot of stof them find

other find on 2000, Sher loyalty an

rsonal relatunication beuch relationng in the m

dology

esearch is con custome

rative study alty of mobies were takeing the detes used for s, convenien

witching banships.

nient sampliAbdul Latif g on unive

on towards tvice providnnaires wer

us rejected les of the dat

mpling for uted among and 25.2% f

were frommmunication6.67% and

at there is a ion is above

tiveness me in the maiveness as another oper

tudies on thd negative re

some interharma 2003nd alternati

tionship is detween custnship with tobile teleco

conducted ter loyalty iand aims to

ile phone uen from Kimterminants omeasuring nce in proc

arrier are

ing was usf Universityersity studenthe promotiders. The nre returned pleaving 254a and testin

this researthe respon

females. Thm the rurn services w

Zong 17.7

relationshipe the averag

eans the parket (Jonethe perceprator.

he interactioelationship braction effe), while Leve attractiv

defined as tomer and othe compan

ommunicatio

to measure n Pakistanio study the sers. The mm et al. (200of consumesatisfaction

cedure and cswitching

ed for this y, Sukkur Ints for the ional activitnumber of properly fill

4 useable qung hypothesi

rch was codents and 2

he 67.3% resral areas. were as Mo71%. The p

185

p between sge.

perception s et al., 20

ption of cu

on of alternabetween theect betweenee et al. (20veness.

the relationoperator (Gnies and thon service i

the affect i mobile teleffects of cu

measuremen04). The samer satisfactin were call qcustomer sucost, alter

research aIBA, and Ucollection ties and alsquestionnaled while 3uestionnaireis.

ollected fro254 or 84%spondents oThe samp

obilink 16.9percentage o

switching co

of the cus000). Whilestomer abo

ative attracte two (Bansn them (Jo008) wrote t

nship that sGremler, 19ese relationindustry.

of customlecommunicustomer sat

nt items useme scale waion in celluquality, pricupport. Andrnative attr

and the respUniversity of data is to students

aire distribu1 questionnes for this s

om universi% were colleof the studyple charact95 %, Ufonof Ufone is

Journal of M

ost and cust

stomers aboe Kim et alout the rep

tiveness andsal and Taylnes at al. that there is

shows itself95). Many

nships incre

mer satisfactcation servitisfaction and for collecas used by Aular industrycing structurd variables uactiveness

pondents weof Sindh, Tthat young are the maiuted were 3naires were pstudy. SPSS

ities. 300 sected back. y were form eristics of ne 38.18 %s greater th

Management ISSN 19

2012, Vol.

www.macrothi

tomer loyal

out the col. (2004) d

putation ima

d customerlor, 2004; Y2000, Shars no effect b

f as care, trcustomers

ease the ba

tion and swices. This ind switchingcting the daAli et al. (2y of Pakistre, and valuused for meand interp

were the studThe reasonstudents pa

in target ma300 of whpartially co

S 16 is used

survey formThere were

m the urban af the five

%, Telenor 2han other o

Research 941-899X 4, No. 4

ink.org/jmr

lty if the

mpeting escribed age and

r loyalty. Yim et al., rma and between

rust and wish to rriers to

witching is causal g barrier

ata about 010) for tan. The ue added easuring personal

dents of n behind ay more arket for hich 285 ompleted d for the

ms were e 74.8% area and

mobile 20.47 % operators

Page 7: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

becauseof all m

Table 1

Call quaPrice st

Value aConvenuse Customsupport SwitchiBarrierLoss coAdoptio

Move inAlternacarrier’image InterperrelationCustomloyalty

Results

Reliabi

ReliabilrepeatedCronbaare con81.6%.

One wa

e it targetingmeasures by

.Cross-table

M

ality 3tructure 3

added 3nient of

3

mer t

3

ng r ost 3on cost 3

n cost 3ative s 3

rsonal nship

3

mer 3

s and Discu

ility

lity is defindly (Kim ech’s alpha m

nsidered reli

ay ANOVA

g the youth demograph

e of measur

15-19 YeaMea

n StandDevia

.22 .7

.27 .7

.39 .7

.35 .52

.40 .7

.36 .9

.13 .7

.39 .9

.40 .5

.44 .4

.68 .5

ussion

ned as the set al., 2004measures thiable if it is

A test was

by their atthics are show

res by demo

W

ars 2dard ation Mea6 3.2

9 3.3

1 3.3

2 3.4

1 3.2

9 3.0

8 3.1

0 3.2

9 3.2

5 3.2

8 3.5

tability of o4).It is usuhe average os more than

used to un

186

tractive callwn in the ta

ographics (m

What’s your

20-29 years

anStandDeviat

28 .79

4 .53

6 .69

40 .72

24 .75

03 1.10

4 .77

26 .78

24 .69

28 .64

8 .65

outcomes wually measuof items of n 0.5. In th

understand t

l and SMS pable 1.

mean & stan

age?

30ard tion Mean

9 2.98

3 3.40

9 3.42

2 3.50

5 3.63

0 3.05

7 3.25

8 3.20

9 3.30

4 3.52

5 3.52

when the puured by Crvariables anis research

the gender

Journal of M

packages. T

ndard deviat

0-39 years

nStandardDeviatio

.83

.78

.66

.76

.58

.76

.50

.80

.74

.63

.77

urpose of reronbach’s and their corCronbach’s

differences

Management ISSN 19

2012, Vol.

www.macrothi

The cross ta

tion)

40 ORrd on Mean

3.00

4.00

3.50

3.50

3.50

4.00

3.00

2.50

2.17

3.50

3.25

esearch is malpha methorrelation ands alpha was

s among c

Research 941-899X 4, No. 4

ink.org/jmr

abulation

R MORE Standard Deviation

.00

.47

.71

.71

.71

1.41

.00

2.12

1.18

.71

.35

measured odology. d results s almost

customer

Page 8: The impact of customer satisfaction and switching barriers on customer loyalty in pakistani mobile telecommunication services

satisfacindicate

Table 2Pakistan

CS

CPVCCSLAMA

In

* Signif

The resstructurwhich ibetweentelecomexist nosupportconstrutelecom

Multiplswitchinthis stucustomeconveniimage,

ction and sed in table 2

2. ANOVA (ni mobile te

Customer’s witching B

Call quality Price structuValue added Convenient oCustomer su

ervice qualiLoss cost Adoption coMove in costAlternative c

nterpersona

ficant at 0.1

sults indicatre constructis significann male and

mmunicationo significant, service qucts of cu

mmunication

le regressiong barrier o

udy the cuser satisfactiient, customand interper

switching b2.

(Gender Difelecommuni

satisfactionarriers

ure

of use upport ity

st t carrier’s ima

l relationsh

0 level (two

te that theret of customnt at p <.10.female in m

n services wnt differenceuality, loss ustomer sn services.

on analysison customestomer loyaion and swmer supportrsonal relati

barriers in

fferences amication serv

n and F

0.02.990.501.201.340.20.091.222.05

age 0.78ip 1.0

o tailed).

e exist signimer satisfact

. The resultmove in coswhich is signes between cost, alternatisfaction

s was useder loyalty inalty was tak

witching bart, service qionship wer

187

Pakistani

mong custovices)

10 98 08 07 44 16 96 29 50 82 18

ificant diffetion in Pakits also indicst construct nificant at pthe call qu

native carrieand swi

d to predicn Pakistani ken as a drrier such cquality, lossre taken as t

mobile te

mer satisfac

df

1 1 1 1 1 1 1 1 1 1 1

erences betwistani mobilcate that the

of switchinp <.10. The uality, valueer’s image, tching bar

ct the affemobile tel

dependent vcall quality,s cost, movthe indepen

Journal of M

lecommuni

ction and sw

Si

0.0.0.0.0.0.0.0.0.0.0.

ween male ale telecomm

ere exist signng barriers iresults also

e added, coand interperriers in

ct customeecommunic

variable andprice struc

e in cost, andent variab

Management ISSN 19

2012, Vol.

www.macrothi

ication serv

witching ba

Sig.

.919

.085*

.477

.273

.247

.643

.757

.269

.053*

.377

.314

and female munication gnificant difin Pakistanio indicate thonvenient, cersonal rela

Pakistani

er satisfactcation servid the constcture ,valuealternative

bles.

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