The Effect of Reliability and Assurance on Customer Loyalty: The Mediating Role of Customer Satisfaction in the UAE Telecommunications Industry

Abstract

The present study aimed to explore the relationship between reliability and assurance and customer loyalty in the UAE telecommunication sector, by using customer satisfaction as the mediating variable. The study was based on two theories: SERVQUAL and Expectation Disconfirmation Theory (EDT) to explore the impact of service quality dimensions on customer behavior in highly competitive telecommunications market. The quantitative research design was used and the data were gathered from 370 customers of the telecom company in Sharjah, UAE, through a structured questionnaire. To test the measurement and structural models as well as mediation effects, SmartPLS was used. Both reliability and assurance were found to have significant positive effect on customer loyalty and customer satisfaction. Moreover, customer satisfaction was found to be a significant factor in customer loyalty, and mediated the relationships between reliability, assurance and customer loyalty. The findings showed that in the UAE telecom industry, high levels of service consistency, trustworthy interactions, and professional handling of interactions are key factors in retaining and engaging customers. The study has both theoretical and practical significance as it expands SERVQUAL and EDT in telecom environment in UAE and provides practical implications to the telecom companies who want to attract customers by retaining them by improving their service quality and customer satisfaction.