The Impact of Customer Relationship Marketing Tactics On Customer Loyalty Within Swedish Mobile Telecommunication Industry

Abstract: Due to the more and more fierce competition in today’s business, many companies are required to build long-term profitable relationship with customers and to achieve customer loyalty. Therefore, relationship marketing has become more and more important since last decade of 20th century, especially in service industry. There are many different relationship marketing tactics implemented for retaining customer. However, some of those tactics did not affect customer loyalty effectively, and switching behaviors frequently occur among most of targeted customers. Therefore, this study is aimed to investigate the impact of relationship marketing tactics on customer satisfaction and trust, which in turn increase customer loyalty, by focusing on Swedish mobile telecommunication sector. A analytical model is developed as a guildline to test the relationships between relationship marketing tactics, relationship quality (trust and satisfaction) and customer loyalty. a quantitative method with deductive approach are chosen in this research. In order to collect primary data, a self-completed questionnaire is designed and randomly sent out by email to the students in Halmstad University. The SPSS for windows is used to process the primary data. The findings shows that Service Quality, Price Perception, and Value Offers have impact on customer loyalty indirectly via the customer satisfaction and trust. Brand image is positively and directly related to customer loyalty. However, switching costs is found to be less correlation with customer loyalty, as well as satisfaction and trust in Sweden telecommunication industry.