Business Research Methodology

Group Project Report

On
Service Quality, Customer Satisfaction and
Loyalty in an Internet Service Providers
By
MUHAMMAD HAMZA (FA22-MBAB-0012)
WALID RAZA (FA22-MBAB-0013)
For
Dr. Muhammad Zahid
Abstract
The current study aimed at examining the influence of service quality (internet service quality)
on customer loyalty through the mediating effect of customer satisfaction. Through employing
the questionnaire on a convenient sample of (860) consumer from different malls and
commercial complexes in Amman – Jordan; the results indicated that internet service quality
has a positive influence on customer satisfaction which in its turn can influence the level of
customer loyalty. The study also reached to the results that good and well-built service quality
may lead to customer satisfaction which in its turn can lead to a better level of customer
loyalty. Consumer loyalty includes highlights or attributes that can fulfill the desires or needs
of a client, it is a post utilization encounter which contrasts apparent quality and expected
quality, in this way a similar conduct between inputs previously and after utilization. The study
recommended to enhance the level of service quality awareness is the best approach to
customer satisfaction. Aware employees tend to pay more attention to the idea of service
quality which can lead to a better customer loyalty.
Keywords: customer loyalty, customer satisfaction, service quality, internet
Introduction
Service quality is becoming one of the most important aspects in the field of services.
Customers are now more aware of the level of the service they get which has led the
organization to give more attention to the level of the service they provide to their customers in
order to be able to get more satisfaction which can lead to better loyalty from customers. Due to
the exceptional rivalry and the antagonistic vibe of natural components, service quality has
turned into a foundation advertising procedure for organizations. This features how vital
enhancing service quality is to associations for their survival and development since it could
enable them to handle these difficulties they look in the aggressive markets. This implies
benefit based organizations are constrained to give astounding service to their clients with a
specific end goal to have a reasonable upper hand. There is in any case, a requirement for these
associations to comprehend what service quality is with a specific end goal to achieve their
destinations.
Statement of the Problem
Service quality and consumer loyalty are essential ideas that organizations must comprehend so
as to stay focused in business and thus develop it. It is vital for organizations to know how to
gauge these builds from the buyers' point of view with a specific end goal to better comprehend
their requirements and consequently fulfill them. Service quality is viewed as imperative since
it prompts higher consumer loyalty, benefit, less cost, client devotion and maintenance.
According to Chingang and Lukong (2010) service quality was defined as "the overall
assessment of a service by the customers". Based on that, the level of the service is determined
by customers is seen very important by the organization to determine the ability of the
organization to deliver such service and to satisfy customers leading to their satisfaction. From
that point, the current research study aims at understanding the mediating role of satisfaction
within the internet service quality field in delivering customer to the status of loyalty to the
organization.
Objectives and Hypotheses
Through the hypotheses the current study will be able to reach the following set of objectives
including:
Page 1 of 18
1. Identify the level of internet service quality in Jordan
2. Examine the degree of awareness about customer satisfaction and service quality among
organizations under examination
3. Highlight the best approaches to increase customer satisfaction
4. Connect between customer satisfaction and their loyalty towards the organization through
the quality of the service
As for the hypotheses, the current study will try to achieve the following set of hypotheses:
H (1): Internet Service Quality has a Significantly Positive Impact on Customer Satisfaction.
H (2): Internet Service Quality Dimensions have a Significantly Positive Impact on Customer
Satisfaction Separately.
H (3): Internet Service Quality has a Significantly Positive Impact on Customer Loyalty.
H (4): Service Quality Dimensions have a Significantly Positive Impact on Customer Loyalty
separately.
H (5): Service Quality and Customer Satisfaction have a Significantly Positive Impact on
Customer Loyalty.
H (6): Internet Service Quality Dimensions and Customer Satisfaction have a Significantly
Positive Impact on Customer Loyalty Separately.

Model:

Internet Services

Prices

Customer Customer
Employees Satisfaction Loyalty

Physical Evidence
Figure 1. Conceptual framework

Literature Review
Customer satisfaction, customer loyalty and service quality have increasingly become
importance concepts in the today’s competitive market. Companies that seek to grow and
remain competitive tend to give attention to these three variables. It is suggested that satisfied
customers are more likely to remain loyal to a brand, make repeat purchases, and offer a
positive word of mouth and consequently market the company. It is also suggested that
customers who feel the good experience of quality service often tend to share their good
experiences with others leading to an expanded customer base and that such customers tend to
become loyal customers (Spreng, &Mackoy, 1996). Conversely, dissatisfied customers tend to
share the bad experiences with the poor quality of service with others and this leads to reduced
purchases and customer base (Smith, & Bolton, 2002). On this basis, studies have suggested a
Page 2 of 18
relationship between service quality, customer satisfaction and customer loyalty. This literature
review explores the studies that suggested the relationship between customer loyalty, customer
satisfaction and service quality. First, it explores the concept of service quality as
conceptualized and documented in the academic literature. Secondly, internet service quality
and its four dimensions, namely core, price, environment and employee are explored. Thirdly,
the concepts of customer loyalty and customer satisfaction as documented in the marketing
literature are explored. Lastly, the relationship between customer loyalty, customer loyalty and
internet service quality as documented in the literature are explored.
Service Quality
Service providers often seek to understand what external or internal customer care about or are
concerned about.
Product quality, or service quality count and they are a good guess. This is also a concern for
most customers. As defined by Parasuraman et al. (1988) service quality is the evaluation of a
service by customers achieved by comparing its actual performance and the genera
expectations of its performance. It can also refers to the difference in expectations by customers
regarding its performance and its actual performance (Parasuraman et al., 1988; 1985).
Parasuraman et al. (1988) identified five dimensions of service quality identified as
SERVQUAL dimensions: tangibles, reliability, assurance, empathy and responsiveness.
Tangible concerns the appearance of equipment, physical facilities, communication materials
and personnel. This dimension translates to the appearance and interior of the organization. It
signals quality and conveys the image of a firm (Zeithaml et al., 2006). Reliability concerns the
ability of service to dependably and accurately perform the promised service or delivering on
its promises (Zeithaml et al. 2006). According to Zeithaml et al. (2006) noted that reliability as
a dimension of service quality is critical as customers often want to companies that implicitly
communicate and keep to their promises. Responsiveness refers to the willingness to offer
prompt service and help customers (Zeithaml et al., 2006). It is concerned with customers’
requests, complaints and questions attentively and promptly. A responsive firm often
communicates with them and how long it takes to deal with their problems or answer their
questions (Zeithaml et al., 2006). Assurance refers to the employees’ courtesy and knowledge
and their ability to convey confidence and trust to customers. Lastly, empathy refers to the
caring and individualized attention provided by affirms to its customers. Empathy can be
offered in several ways: knowing customers’ name, their needs and preferences (Zeithaml et
al., 2006; Andaleeb & Conway, 2006; Harr, & Lily, 2008).
Customer Satisfaction
Customer satisfaction has played a big role in the market share as well as in the company
investment. Researches in the field have proposed several definitions of customer satisfaction.
Many definitions focus on the disconfirmation of all expectations. Some theories explain how
customer satisfaction relates to customer needs, where a customer will be satisfied once he or
she feels satisfied with the product offered to them. Many times the customers have
expectations towards a given product. After buying a product, a customer will expect the new
product to meet his expectation. In situations where the expectations towards the product are
not met, the customer will be dissatisfied.
Gilbert &Veloutsou (2006) defined the term expectations as the preconceived perceptions or
beliefs concerning delivery of service as a reference or standard point where the performance of
a product may be judged. The process of taking measurements for customer satisfaction is
Page 3 of 18
complex. Customer satisfaction is personal in nature and differ from one customer to another
making it hard to establish a standardized measurement kit for the phenomenon. Oliver (1997)
redefined customer satisfaction by considering the response towards fulfillment. He noted that
customer satisfaction refers to judging the features of the product or service and ensuring that
the service or the product offers pleasurable consumption levels that are linked to fulfillment.
In this regard, measurements of customer satisfaction consider satisfaction of needs as well as
expectations. The term satisfaction comes from the word comfort, which relates to the
satisfaction level with no excitement. Customer satisfaction relates to contentment, which
involves passive response where customers would be less involved emotionally. Even though
the definition of satisfaction touches on contentment, the presentation of a pleasant product say
food, may elicit high to moderate arousal effect that may cause happiness and Joy.
Satisfaction has also been linked to the feeling of delight. Delight, in this case, refers to an
individual developing a surprise in a positive way. If a customer was contented with a given
product or service and the service goes through some challenges and creates a discomfort, the
customer will be dissatisfied. If for some reasons the service is recovered the customer will
experience relief. To put it differently, dissatisfaction model has no place for the complexities
of customer satisfaction. In fact, a customer who buys a cell phone is likely to be influenced by
myriad of factors that influence the product such as users’ experience, the treatment given to
him by the sales person, and after sale service. While a customer may be satisfied by a single
aspect of the product, he or she is likely to be dissatisfied with other components of the product
causing conflicting feelings on the overall product. In addition several components in a product
tend to influence customer satisfaction in a different way. For instance, a customer may be
satisfied with on aspect of the product in the short run but not in the long run. Also, the same
customer is likely to be dissatisfied with another component of the same product. In some
situations, negative evaluations on a product will influence the satisfaction for the customer
(Vargo, Nagao, He, & Morgan, 2007).
A study by Cadotte and Turgeon (1988) reported that satisfaction in influenced by satisfiers,
neutrals, and dissatisfies. Accordingly, the satisfiers influence the customer’s intrinsic needs,
while dissatisfies influence the extrinsic needs of customers. As such, customers have basic
needs put in a rank of satisfaction. Once the basic needs are satisfied, the customer will require
other needs to be satisfied. Customer satisfaction will be realized once the intrinsic needs are
met.
Another customer satisfaction model considers it as a complete assessment of accumulated
consumption and purchase experience that reflects a comparison between perceived rewards
and the sacrifice experienced. In this context, sacrifice include intangible costs such as energy
and time spend to make arrangements and reservations and the monetary costs involved in the
purchase of a service (Iglesias, &Guillen, 2004).
Customer Loyalty
In the today’s highly discommoded competitive business environment, customer loyalty is
touted at the best approach to differentiating a business from the competition. This
differentiation serves to driven loyalty in customers by engaging them intellectually,
emotionally and spiritually.
As used in this context, customer loyalty may refer to the conscious evaluation of the quality or
price ratio, the price difference by consumers. Elsewhere, customer loyalty has been defined as
the willingness of customers to pay a high or premium price for a service (Supphellen

Page 4 of 18
&Nysveen, 2001; Zaithaml, Berry &Parasuraman, 1996). According to Raju, Srinivasan, and
Lal (1990) customer loyalty encompasses loyalty behavior or customer retention, which makes
customers to make avoid choosing competitor brands and instead make repeat purchases of a
brand they are accustomed with. Raju, Srinivasan, and Lal (1990) added that customer loyalty
is the behavioral as well as attitudinal tendency by consumers to choose one brand against
others. This may be due to its convenience, performance, satisfaction with the service or
product, or simply comfort and familiarity with the brand. Supporting this view, Supphellen
and Nysveen (2001) opined that customer loyalty often encourage customers feel positive and
enjoy the shopping experience, spend a larger share of wallet, shop more consistently, and
helps attracts customers to popular and familiar brands.
According to Taylor (1997) prompting customer loyalty involves a company building an
emotional bond with its customers. Taylor (1997) further noted that building loyalty in
customer involves blending customer experience management with the emotional, physical and
value elements of shopping experience into a cohesive experience. It has been suggested in the
literature that it is less expensive to retain customers than acquiring new ones and that it is
considered the most cost-effective strategy to dive customer retention, customer loyalty and
customer satisfaction (Teeter, &Schointuch, 2000). Loyal customers are known to ensure sales
and are more likely to buy high-margin supplemented services and products. These customers
are also known to help minimize costs associated with marketing and consumer education,
especially when these customers become the organization’s Net Promoters (Taylor, & Baker,
1994). Different degrees and types of customer loyalty have been identified in the literature:
attitudinal, behavioral, polygamous and monogamous (Turow, Feldman, & Meltzer, 2005).
Connect between Customer Satisfaction and Customer Loyalty
A number of studies have suggested a link between customer satisfaction, service quality and
customer loyalty. In an attempt to integrate customer satisfaction models with perceived quality
models, Gotlieb et al. (1994) examined the effect of customer satisfaction and perceived quality
on customers’ behavioral intentions to purchase. Specifically, Gotlieb et al. (1994) sought to
determine the relationship among perceived quality, disconfirmation of expectations,
behavioral intentions, perceived situational control and satisfaction. It was revealed that the
relationship between two dimensions of disconfirmation of expectations (i.e., contextual and
focal dimensions) and behavioral intentions is mediated by the perceived quality and that
satisfaction in the service influences behavioral intentions. It was also revealed that satisfaction
in the service is influenced by the perceived quality.
In another study, Taylor and Baker (1994) empirically examined the relationship between
customer satisfaction and service quality and the influence of these two variables on customers’
purchase intentions. Accordingly, it was hypothesized that customer satisfaction and service
quality influences the consumers’ intention to purchase a service. Results confirmed the
relationship between service quality customer satisfaction and consumers’ intention to purchase
a service.
Bei and Chiao (2001) used a sample of 495 customers of three Taiwanese automobile
companies (Mitsubishi, Nissan and Toyota) to investigate the effect of perceived fairness price
and perceived product quality on customer loyalty in the. The study further investigated the
effect of perceived fairness, perceived service quality, and perceived product quality on
customer loyalty mediated by customer satisfaction. Results indicated that customer
satisfaction mediates the relationship between perceived service quality and customer loyalty.

Page 5 of 18
Using a sample of five-star hotels within the Jordan context, Al-Rousan and Mohamed (2010)
examined the relationship between customer loyalty and service quality dimensions namely
reliability, assurance, tangibility, assurance and empathy. Data was collected from 322
participants using self-administered questionnaire. The study confirmed the relationship
between responsiveness, tangibility, assurance and reliability and customer loyalty.
In a study involving 412 participants from the hotel industry in India, Gupta and Srivastava
(2011) examined the relationship between service quality, customer loyalty and customer
satisfaction. Data was collected using self-administered questionnaires and analysed using
SEM technique. The study finding confirmed positive and significant relationship between
service quality, customer loyalty and customer satisfaction.
Hag (2012) used a sample of 226 participants in Pakistan Auto-Mobile industry and collected
data using questionnaires to investigate the relationship between customer satisfaction and
customer loyalty. Results confirmed that customer loyalty and customer satisfaction are directly
and strongly related. Bei and Chiao (2001) also examined the relationship between customer
loyalty and perceived product quality and the customer satisfaction as mediating the
relationship between perceived service quality, product quality and customer loyalty within the
Taiwan automobile industry. Results confirmed that customer satisfaction mediates the
relationship between customer loyalty and perceived service quality.
Methodology
The current research study was based on the quantitative approach which employed the
questionnaire as a tool of the study. It is meant of employing the quantitative approach is to be
able to connect between the hypotheses of the research with the perspective of the sample of
the study referring to them as part of the environment under examination. As for the population
and sample of the study; the researcher has considered all consumers in Amman to form the
population of the study. The sample consisted of (1000) consumers from different stores and
shops and commercial complexes in Amman. Through the application process; (860)
individuals answered the questionnaire forming 86% of the overall sample chosen which is a
percentage that is statistically acceptable. The questionnaire which was answered by the sample
of the study consisted to two main parts; the first took into perspective the demographic
variables of the sample (Gender, Age, Occupation, Education, Job and Exp. Amount), while the
second part took into perspective questions related to the variables of the study (Internet
Service, Price, employee, Physical Evidence, Customer Satisfaction, and Customer Loyalty) as
shown in figure 1. The statistical processes which were used to analyze the data of the research
were the regression analysis, reliability test and descriptive statistics.
Results
The current section presented the analysis of the questionnaire paragraphs and the data gathered
from the sample of the study.

Table 1. Demographic characteristics of respondents

Sex Frequency Percent
M 506 58.8

F 354 41.2

Total 860 100.0

Page 6 of 18
Age Frequency Percent Education Frequency Percent
< 20 years 159 18.5 High school 227 26.4
20-30 363 42.2 Diploma 151 17.6
31-40 151 17.6 Bachelor 428 49.8
41-50 132 15.3 Post graduates 54 6.3
> 51 years 55 6.4 Total 860 100.0
Total 860 100.0
Job Frequency Percent Exp. Amount Frequency Percent
Student 257 29.9 < 10 JD 486 56.5
Civil Servant 110 12.8 10- 20 251 29.2
Private 272 31.6 21-30 82 9.5
Own job 121 14.1 31-40 26 3.0
Others 100 11.6 > 41 JD 15 1.7
Total 860 100.0 Total 860 100.0

Table 1 shows the results of the gathered data in reference to the sample of the study. It
appeared that most of the sample was males with a frequency of 506 individuals forming 58.8%
of the total sample. This can be attributed to the nature of the sample which appeared to be
formed mostly of males. On the other hand, 42.2% of the total sample appeared to be within the
age range of 20-30 years which can be attributed to the fact that mostly the young age attended
the markets. Also, 49.8% of the sample had a bachelor degree which formed almost half of the
sample. In addition to that, 31.6% of the sample was working within the private sector which
can explain the results regarding the results of the in reference to the expected amount which
appeared to be 56.5% less than 10 JD.

Table 2. Mean S.D, factor loading and cronbach alpha

S. Internet Service Cronbah Factor Loading S.D Mean
No. Alpha
1 Quick communication service .673 .978 4.05
2 Wide geographic coverage .789 .82 1.06 3.77
3 Provide strong and high quality network signals Easy 1 .777 1.08 3.79
4 access .741 1.27 3.16
5 Follow the innovative and advanced technology 3.60
.95 1.09
6 Provides prompt and quick service .762 1.21 3.40

7 maintain speed of the service during busy times .728 1.05 3.65

8 service is competent and efficient .661 .984 3.87

Average .814 3.66

S. Prices Cronbach Factor Loading S.D Mean
No. Alpha
9 Company provides reasonable prices .645 .72 .977 3.89
10 Company provides a competitive prices 6 1.26 3.38
11 Company provides a various prices offers .824 1.10 3.76
.74
12 My provider keeps records and bills accurate .813 1.05 3.82

Average .831 3.71

S. Employees Cronbach Factor S.D Mean

No. Alpha Loading

Page 7 of 18
13 Employees have the knowledge to do their Job .641 .962 3.95
14 15 Employees perform the service right .715 .59 1.11 3.61
16 Employees are dependable 7 .909 4.09
Employees give me a personal attention .611 1.05 3.61
.73
17 Employees deliver the service according to my needs .658 .822 4.32

18 Employees ready to solve my problems .691 .882 4.14

I Average .626 3.95

S. Physical Evidence Cronbach Factor S.D Mean

No. Alpha Loading
19 Physical facilities are visually appealing .729 .938 4.00
20 Branches have an attractive design and decoration, lighting, .787 .838 4.23
21 ventilation, cleanliness and parking Sufficient number of branches .779 .893 4.14
22 available .796 .883 4.19
It is easy to reach the company’s branches .83
23 Branches are located in suitable places .691 1.04 3.93

24 Operating hours are convenient .683 .905 4.18

25 Short waiting time .545 .892 4.19

Average .641 4.12

S. Customer Satisfaction Cronbach Factor S.D Mean

No. Alpha Loading
26 My choice of my provider was a wise one .689 .909 4.05
27 I am satisfied with my provider .784 .80 .902 .89 3.95
28 I am pleased to use the service by my provider 8 4 4.02
.76
29 Services provided by my provider are excellent .758 .982 3.93

Average .705 3.99

S. Loyalty Cronbach Factor S.D Mean

No. Alpha Loading

30 I will deal with my provider more in future .626 .913 4.02 31 I would consider my provider as my first choice
.755 1.01 3.75 32 I will say favorable things about my provider .805 1.15 3.43 33 I will recommend my
provider to other people .79 .776 1.19 3.24 34 I will be loyal customer of this provider .766 1.09
3.66
35 I will not switch to competitors if my provider increase prices .568 .972 3.99
somewhat
Average .748 3.68

Table 2 refers to the analysis of the data gathered in reference to the sample responses to the
paragraphs of the study. The results showed that the highest cronbach alpha appeared to be for
the benefit of the internet service if I has the quality of an easy access with a rank of .95
followed by the physical evidence with a cronbach alpha of .83 referring to the paragraph " It is
easy to reach the company’s branches" as a good indicator. Generally speaking, it appeared that
respondents had a positive attitude towards the variables of the study given that there mean
appeared to be above 3 which is also considered to be as a good indicator.

Page 8 of 18
Assessment of Reliability and Validity
In order to measure the value of reliability and validity of study, Cronbach Alpha and factor
loading tests are used as shown in the table No. (2), to accept the measure Cronbach Alpha
should be higher than .70. All the dimensions of study had a Cronbach Alpha value of .934,
(Cronbach Alpha for internet service were .95, for prices were .74, for Employees were .73,
physical evidence were .83, forcustomer satisfaction were .76 and loyalty .79). More ever,
Factor loading of all items of the study is more than .54 which is more than .50 as suggested by
(Stewart, 1981).
Hypothesis Testing
H (1): Internet Service Quality has a Significantly Positive Impact on Customer
Satisfaction.

Table 3. Regression analysis of internet service quality on customer satisfaction

R R2 Std. Error F Sig.
Internet Service Quality .67 .46 .521 175 .000
P < 0.05.

Table 3 shows the results of the regression analysis reveals that (R2) = .46, which means that
46% of the overall of customer satisfaction was explained by internet service quality and
remaining 54% can be attributed by other factors which are not studied, because they are
beyond the scope of study. The result indicates that a positive correlation exists among service
quality and customer satisfaction. More ever, the results show that the value of F = 175 and Sig.
= 000 which is less than the significant at the 95% of confidence level P < 0.05 of the study.
Thus, Hypotheses (1) accepted.
H (2): Internet Service Quality Dimensions have a Significantly Positive Impact on
Customer Satisfaction separately.

Table 4. Regression analysis of internet service quality dimensions on customer satisfaction

Variables Β R2 T Sig. Tolerance VIF

Internet Service .02 .35 .489 .625 .623 1.61

Prices .18 .21 5.01 .000 .501 1.99

Employees .11 .23 2.69 .007 .430 2.33

Physical Evidence .48 .25 14.18 .000 .562 1.78

P < 0.05.

Before estimating the hypotheses (2), variance inflation factor (VIF) and tolerance were used to
assess multicollinearity for each dimension of service quality as seen in table No. (4).
According to Hair et el, (1995) suggest a cutoff value of < 10 as an acceptable VIF. The
collinearity test shows that the VIF occurs between 1.61 and 2.33 which indicate that
multicollinearity among the dimensions is neglected.
In table (4), results for internet service quality dimensions impact on customer satisfaction have
been analyzed separately. Regression analysis results as regard to internet service is (R 2) = .35,
prices is (R2) = .21, employees is (R2) = .23 and physical evidence is (R2) = .25. The results
show that a positive correlation exists among internet service quality dimensions and customer
satisfaction, which presents that the internet service attained the highest positive correlation,
followed by physical evidence, employees and prices. Regression coefficients were used to
Page 9 of 18
identify the level of impact that internet service quality dimensions had on overall customer
satisfaction. The findings indicated that coefficients of three out of four of the service quality
dimensions were significant at the 95% of confidence level (P < 0.05). The results of
unstandardized coefficients indicated that the impact of internet service dimension is (β = .02,
Sig. = .625), prices (β = .18, Sig. = .000), employees (β = .11, Sig. = .007) and physical
evidence (β = .48, Sig. = .000). The above results of unstandardized coefficients indicated that
internet service dimension has no impact on customer satisfaction and physical evidence gained
the highest impact on customer satisfaction, followed by prices and employees.
H (3): Internet Service Quality has a Significantly Positive Impact on Customer Loyalty.

Table 5. Regression analysis of internet service quality on customer loyalty

R R2 Std. Error F Sig.
Internet Service Quality .68 .45 .555 177 .000
P < 0.05.

Table 5 shows the results of the regression analysis of internet service quality as independent
variable and the customer loyalty as the dependent variable. Regression analysis reveals that
(R2) = .45, which means that 45% of the overall of customer loyalty was explained by internet
service quality and remaining 55% can be attributed by other factors which are not studied,
because they are beyond the scope of study. The result indicates that a positive correlation
exists among internet service quality and customer loyalty. More ever, the results show that the
value of F = 177 and Sig. = 000 which is less than the significant at the 95% of confidence
level P < 0.05 of the study. Thus, Hypotheses (3) accepted.
H (4): Service Quality Dimensions have a Significantly Positive Impact on Customer
Loyalty separately.

Table 6. Regression analysis of internet service quality dimensions on customer loyalty

Variables Β R2 T Sig.
Internet Service .23 .35 7.22 .000
Prices .23 .21 6.52 .000
Employees .08 .23 2.09 .044
Physical Evidence .30 .25 8.94 .000
P < 0.05.

In table 6, results for service quality dimensions impacts on customer loyalty have been
analyzed separately. Regression analysis results as regard to internet service is (R2) = .35,
prices is (R2) = .21, employees is (R2) = .23 and physical evidence is (R2) = .25. The results
show that a positive correlation exists among internet service quality dimensions and customer
loyalty, which presents that the internet service attained the highest positive correlation,
followed by physical evidence, employees and prices. Regression coefficients were used to
identify the level of impact that internet service quality dimensions had on overall customer
loyalty. The findings indicated that coefficients of four of the service quality dimensions were
significant at the 95% of confidence level (P < 0.05). The results of unstandardized coefficients
indicated that the impact of internet service dimension is (β = .23, Sig. = .000), prices (β = .23,
Sig. = .000), employees (β = .08, Sig. = .044) and physical evidence (β = .30, Sig. = .000). The
above results of unstandardized coefficients indicated that physical evidence dimension gained

Page 10 of 18
the highest impact on customer loyalty, followed by internet service, prices and employees.
Thus, Hypotheses (4) accepted.
H (5): Service Quality and Customer Satisfaction have a Significantly Positive Impact on
Customer Loyalty.

Table 7. Regression analysis of internet service quality and customer satisfaction on customer
loyalty
R R2 Std. Error F Sig.
Internet Service Quality .72 .52 .523 181 .000
P < 0.05.

Table 7 shows the results of the regression analysis of internet service quality as independent
variable and the customer loyalty as the dependent variable. Regression analysis reveals that
(R2) = .52, which means that 52% of the overall of customer loyalty was explained by internet
service quality and remaining 48% can be attributed by other factors which are not studied. The
result indicates that a positive correlation exists among service quality and customer loyalty.
More ever, the results show that the value of F = 177 and Sig. = 000 which is less than the
significant at the 95% of confidence level P < 0.05 of the study. Thus, Hypotheses (5) accepted.
H (6): Internet Service Quality Dimensions and Customer Satisfaction have a Significantly
Positive Impact on Customer Loyalty separately.

Table 8. Regression analysis of internet service quality dimensions and customer satisfaction
on customer loyalty
Variables Β T Sig.
Internet Service .23 7.487 .000
Prices .17 5.054 .000
Employees .04 1.179 .239
Physical Evidence .14 3.991 .000
Customer Satisfaction .34 10.410 .000
P < 0.05.

In table 8, results for internet service quality dimensions impacts on customer loyalty have been
analyzed separately. The results show that a positive correlation exists among service quality
dimensions and customer loyalty, which presents that the internet service attained the highest
positive correlation, followed by physical evidence, employees, customer satisfaction and prices.
Regression coefficients were used to identify the level of impact that service quality dimensions
had on overall customer loyalty. The findings indicated that coefficients of three out of four of
the internet service quality dimensions and customer satisfaction were significant at the 95% of
confidence level (P < 0.05). The results of unstandardized coefficients indicated that the impact
of internet service dimension is (β = .23, Sig. = .000), prices (β = .17, Sig. = .000), employees (β
= .04, Sig. = .239), physical evidence (β = .14, Sig. = .000) and customer satisfaction (β = .34,
Sig. = .000). The above results of unstandardized coefficients indicated that customer satisfaction
gained the highest impact on customer loyalty, followed by internet service, prices, and physical
evidence. Employees has no impact on customer loyalty where (Sig. = .239) is more than
confidence level of the study< 0.05.

Page 11 of 18
Discussion
The current study aimed at understanding the influence of internet service quality and customer
satisfaction on reaching the status of customer loyalty. The results of the study found an
influence of the internet service quality on the customer satisfaction in a positive way, this
means that the level of the service that is presented for customer can have an influence on their
satisfaction in terms of attracting them to the service and satisfy them with the level of the
service that they expect. On that idea, Ariff et al. (2013) argued that taking care of the level of
the service can influence the satisfaction of customers. On the other hand, Khan and Fasih
(2014) noted to the fact that the quality service can be very influential on the level of customer
satisfaction specifically if that appeared through the e-service which can end up in influencing
the overall performance of the organization. Also, Selvakumar (2015) accepted the influence of
the service quality on the customer satisfaction on the bases of the fact that if a customer got
the level of the service they expected their level of loyalty will raise and the image of the
organization will be deeply influence. It was also reached through the results of the study that
the level of the service quality along with its dimensions (prices, employees and physical
evidence) can also influence the level of the level of customer satisfaction. The most influential
variable of all appeared to be the physical evidence which can be seen as the most influential
factor of all given factors. This matched what came along with Sakhaei, Afshari and Esmaili
(2014) arguing that there is no relation between the service itself and the customer satisfaction;
it is mostly the quality of the service and the physical evidence that counts to the customers and
what basically raises their satisfaction towards a certain service.
On the idea of the internet service quality and its influence on customer loyalty, it was found
out that there is a statistically significant influence of internet service quality and the idea of
customer loyalty. It appeared that the more the service matched the expectations of the
customers the more loyal they became to the organization. On the same idea Van Es, R.A.J
(2012) argued that the level of the services and its quality influences the level of the customer
satisfaction; at the same time the higher the customer satisfaction is the more the customers are
welling to become loyal, in that sense we can find a correlation between the level of the service
quality and the degree of customer loyalty through their satisfaction. Orel and Kara (2014)
noted in their study to the influence of service quality on customer loyalty. They argued that the
higher the service quality is the higher the probability of a better customer loyalty. Which also
rhymed with the results of Osman and Sentosa (2016) who stated that the most influential
factor on the level of customer loyalty is the degree of attention that the organization gives to
the level of their service quality specifically when it come to the internet services (e-service).
Generally speaking, and through the analysis it was found out that internet service quality and
customer satisfaction positively influences the level of customer loyalty to the organization.
This appeared through the results and rhymed with the results of Siddiqi (2011) who also found
an interrelation between the idea of customer satisfaction and the quality of the service in
contact with the level of customer loyalty. Also Lenka, Suar and Mohapatra (2009) reached the
same result arguing that the lean of the service may lead to customer satisfaction which in its
turn can end up with having a higher level of customer loyalty. This can be seen as a logical
result given that when an individual is satisfied with a certain service gradually the loyalty will
lean towards that service that provides the best satisfaction.

Page 12 of 18
Conclusion and Recommendations
The current study aimed at examining the mediating effect of customer satisfaction of the
internet service quality on the level of the customer loyalty among a sample of Jordanian
customers in the capital of Jordan Amman. The sample consisted of (860) customers as a
convenient sample from different shopping malls and commercials complexes in Jordan-
Amman. Through the use of the questionnaire it appeared from the statistical analysis that there
is an influence of service quality on the customer loyalty through the mediating influence of the
customer satisfaction. The results of the study indicated that a good and well-built service
quality may lead to customer satisfaction which in its turn can lead to a better level of customer
loyalty. Consumer loyalty includes highlights or attributes that can fulfill the desires or needs
of a client, it is a post utilization encounter which contrasts apparent quality and expected
quality, in this way a similar conduct between inputs previously and after utilization. Consumer
loyalty is a conceptual idea where the real fulfillment differs from people and items relying
upon various factors which incorporate administration quality and the individual desires. Low
quality services, which does not achieve the clients' satisfaction, prompts customer
disappointment, abnormal state of fulfillment is built up when the brand satisfies the necessities
of clients much more than the contending brands. Shopper satisfaction is likewise observed as a
key execution marker inside a business. There is confirming that organizing consumer loyalty
is fundamental to enhance the business' gainfulness the two being emphatically related.
Organizations in this manner now lift the part of clients to that of partners as an excellent
business technique. Consumer loyalty in a business is basic. Unsatisfied customers rush to
change from the brand which neglects to satisfy fundamental necessities. Moreover, it was
noticed that a disappointed client may relate a terrible ordeal disintegrating potential support of
the specialist organization.
Based on the aforementioned results and conclusion, the current study recommends the
following:
- Enhance the level of service quality awareness is the best approach to customer
satisfaction. Aware employees tend to pay more attention to the idea of service quality which
can lead to a better customer loyalty.
- Relying on the concept of CRM within the organization can be the best approach into
reaching the best customer satisfaction and reaching loyalty at the end. Well-built CRM can
help in preserving the current customers and attract potential customers.
- It was found out through the analysis that employees had no influence on the customer
satisfaction and loyalty, from that point it is recommended that employees should be trained in
a better and more scientific approach on how to deal with customers and satisfy them in order
to gain their loyalty through the employees' attention to the details in the level of the service
quality.

References
Akbar, S., Som, A. P. M., Wadood, F., & Alzaidiyeen, N. J. (2010). Revitalization of service
quality to gain customer satisfaction and loyalty. International Journal of Business and
Management, 5(6), 113-122. http://dx.doi.org/10.5539/ijbm.v5n6p113

Page 13 of 18
Aktepe, A., Ersöz, S., &Toklu, B. (2015). Customer satisfaction and loyalty analysis with
classification algorithms and Structural Equation Modeling. Computers & Industrial
Engineering, 86, 95-106. http://dx.doi.org/10.1016/j.cie.2014.09.031
Alam, A., Malik, O. M., Hadi, N. U., & Gaadar, K. (2016). barriers of online shopping in
developing countries: case study of Saudi Arabia. European Academic Research, 3(12),
12957-12971.3-11.
Al-Rousan, M. R. and B. Mohamed (2010). "Customer loyalty and the impacts of service
quality: The case of five star hotels in Jordan. International Journal of Human and Social
Sciences, 5(13), 886-892.
Andaleeb, S.S., & Conway, C. (2006). Customer satisfaction in the restaurant industry: An
examination of the transaction-specific model. Journal of Services Marketing, 20(1), 3-11.
Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer
satisfaction for firms. Marketing Science, 12(2), 125-143.
Ariff, M., Yun, L., Zakuan, N. and Ismail, K. (2013). The impacts of service quality and
customer satisfaction on customer loyalty in internet banking. Procedia - Social and
Behavioral Sciences, 81, 469-473.
Aydin, S., Ozer, G. K., & Arasil, O. (2005). Customer loyalty and the effect of switching costs
as a moderator variable: A case in the Turkish mobile phone market. Marketing
Intelligence & Planning, 23(1), 89-103. http://dx.doi.org/10.1108/02634500510577492
Bei, L. T., & Chiao, Y. C. (2001). An integrated model for the effects of perceived product,
perceived service quality, and perceived price fairness on consumer satisfaction and
loyalty. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior,
14(3), 125-140.
Blodgett, J. G., Hill, D. J., & Tax, S. S. (1997). The effects of distributive, procedural, and
interactional justices on post complaint behavior. Journal of
Retailing, 73(2), 185-210. http://dx.doi.org/10.1016/S0022-4359(97)90003-8
Cadotte, E., & Turgeon, N. (1988). Dissatisfiers and satisfiers: suggestions from consumer
complaints and compliments. Journal of Consumer Satisfaction, Dissatisfaction and
Complaining Behaviour, 1, 74-79.
Chang, C. C. (2015). Exploring mobile application customer loyalty: The moderating effect of
use contexts. Telecommunications Policy, 39(8), 678-690.
http://dx.doi.org/10.1016/j.telpol.2015.07.008
Chang, Y., & Chen, F. (2007). Relational benefits, switching barriers and loyalty: A study of
airline customers in
Taiwan. Journal of Air Transport Management, 13(2), 104-109.
http://dx.doi.org/10.1016/j.jairtraman.2006.10.001
Cronin Jr, J.J. and Taylor, S.A., (1992). Measuring service quality: A reexamination and
extension. The journal of Marketing, 56(July), 55-68.
Gerpott, T. J., Rams, W., & Schindler, A. (2001). Customer retention, loyalty and satisfaction
in the German mobile cellular telecommunications market. Telecommunications Policy,
25(4), 249-269. http://dx.doi.org/10.1016/S0308-5961(00)00097-5
Gilbert, G. R., &Veloutsou, C. (2007). A cross-industry comparison of customer satisfaction.
Journal of Services Marketing, 20(5), 298-308.
Gotlieb, J. B. et al. (1994). Consumer satisfaction and perceived quality: complementary or
divergent constructs? Journal of applied psychology, 79(6), 875.

Page 14 of 18
Grönholdt, L., Martensen, A., & Kristensen, K. (2000). The relationship between customer
satisfaction and loyalty: cross-industry differences. Total Quality Management, 11(4/5/6),
509-514. http://dx.doi.org/10.1080/09544120050007823
Gupta, P., & R. Srivastava (2011). Analysis of customer satisfaction in hotel service quality
using analytic hierarchy process (AHP). International Journal of Industrial Engineering
Research and Development (IJIERD), 2(1), 59-68.
Hair, J. F. Jr., Rolph, E. A., Ronald, L. T., & William, C. B. (1995). Multivariate data analysis
(4th ed.). Englewood Cliffs, NJ: Prentice Hall.
Han, X., Kwortnik, Jr, R., & Wang, C. (2008). Service Loyalty: An integrative model and
examination across service contexts. Journal of Service Research, 11(1), 22-42.
Haq, A. (2012). Satisfaction towards customer loyalty in auto-mobile industry of Pakistan.
International Journal of Management and Business Research, 2(4), 363-371.
Harr, K. K., & Lily, K. (2008). Service dimensions of service quality impacting customer
satisfaction of fine dining restaurants in Singapore. UNLV Theses, Dissertations,
Professional Papers, and Capstones, 686.
Iglesias, M. P., &Guillen, M. J. Y. (2004). Perceived quality and price: Their impact on the
satisfaction of restaurant customers. International Journal of Contemporary Hospitality,
16(6), 373-379.
Ilieska, K., (2013). Customer satisfaction index–as a base for strategic marketing Management.
TEM Journal, 4(2), 327-331.
Irfan, M., Shamsudin, M. F., & Hadi, N. U. (2016). How important is customer satisfaction?
quantitative evidence from mobile telecommunication market. International Journal of
Business and Management, 11(6), 57-69.
Khan, M. M., & Fasih, M. (2014). Impact of service quality on customer satisfaction and
customer loyalty: Evidence from banking sector. Pakistan Journal of Commerce & Social
Sciences, 8(2), 331- 354.
Kim, M., Chang, Y., Park, M. C., & Lee, J. (2015a). The effect of quality on the satisfaction
and the loyalty of smartphone users. Telematics and Informatics, 32(4), 949-960.
http://dx.doi.org/10.1016/j.tele.2015.05.003
Kim, M., Fan, S., Chang, Y., & Park, J. (2016). Determinants of customer loyalty in the Korean
smartphone market: Moderating effects of usage characteristics. Telematics and
Informatics, 33(4), 936-949.
Kumar, V., Pozza, I. D., & Ganesh, J. (2013).Revisiting the satisfaction-Loyalty relationship:
Empirical generalization and directions for future research. Journal of Retailing, 89, 246-
262. http://dx.doi.org/10.1016/j.jretai.2013.02.001
Lenka, U., Suar, D., & Mohapatra, P. K. (2009). Service quality, customer satisfaction, and
customer loyalty in Indian commercial banks. The Journal of Entrepreneurship, 18(1), 47-
64.
Maxham, J. G., & Netemeyer, R. G. (2002). Modelling customer perceptions of complaint
handling over time: The effects of perceived justice on satisfaction and intent. Journal of
Retailing, 78(4), 239-252.
http://dx.doi.org/10.1016/S0022-4359(02)00100-8
Oliver, R. L. (1997). Satisfaction: A behavioral perspective on the consumer. New York, NY:
McGraw-Hill, Inc.

Page 15 of 18
Omachonu, V., Johnson, W. C., & Onyeaso, G. (2008). An empirical test of the drivers of
overall customer satisfaction: Evidence from multivariate qranger causality. Journal of
Services Marketing, 22(6), 434-444. http://dx.doi.org/10.1108/08876040810901855
Omar, N. A., & Omar. (2009). Parents’ perceived service quality, satisfaction and trust of a
childcare centre: implication on loyalty. International Review of Business Research Papers,
5(5), 299-314.
Orel, F. D., & Kara, A. (2014). Supermarket self-checkout service quality, customer
satisfaction, and loyalty: Empirical evidence from an emerging market. Journal of
Retailing and Consumer Services, 21(2), 118-129.
Osman, Z., & Sentosa, I. (2016). Influence of customer satisfaction on service quality and
qustomer loyalty relationship in Malaysian commercial banking industry. International
Journal of Economics, Finance and Management, 3(2), 115-120.
Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Understanding customer expectations
of service. Sloan Management Review, 32(Spring), 39-48.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality
and its implications for future research. Journal of Marketing, 49(4), 41-50.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale
for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-37.
Raju, J. S., Srinivasan, V., & Lal, R. (1990). The effects of brand loyalty on competitive price
promotional strategies. Management Science, 36(3), 276-304.
Sakhaei, F., Afshari, A., & Esmaili, E., (2014). The impact of service quality on customer
satisfaction in internet banking. Journal of Mathematics and Computer Science, 9, 33-40.
Selvakumar, J. J. (2016). Impact of service quality on customer satisfaction in public sector and
private sector banks. Purushartha: A Journal of Management Ethics and Spirituality, 8(1), 1-
12.
Siddiqi, K. O. (2011). Interrelations between service quality attributes, customer satisfaction
and customer loyalty in the retail banking sector in Bangladesh. International Journal of
Business and Management, 6(3), 12-36.
Smith, A. K., & Bolton, R. N. (2002). The effect of customers' emotional responses to service
failure on their recovery effort evaluations and satisfaction judgments. Journal of the
Academy of Marketing Science, 30(1), 5-23.
Spreng, R. A., & Mackoy, R. D. (1996). An empirical examination of a model of perceived
service quality and satisfaction. Journal of Retailing, 72(2), 201-214.
Stewart, D. W. (1981). The Application and misapplication of factor analysis in marketing
research, Journal of Marketing Research, 18, 51-62.
Supphellen, M., & Nysveen, H. (2001). Drivers of intention to revisit the websites of well-
known companies: The role of corporate brand loyalty. International Journal of Market
Research, 43(3), 341-352.
Tax, S. S., & Brown, S. W. (1998). Recovering and learning from service failure. Sloan
Management Review, 40(1), 75-88.
Taylor, S. A. (1997). Assessing regression-based importance weights for quality perceptions
and satisfaction judgments in the presence of higher order and/or interaction effects.
Journal of Retailing, 73(1), 135-159.
Taylor, S. A., & Baker, T. L. (1994). An assessment of the relationship between service quality
and customer satisfaction in the formation of consumers' purchase intentions. Journal of
retailing, 70(2), 163-178.
Page 16 of 18
Teeter, C., & Schointuch, B. (2000). Controlling internet service quality. Credit Union
Executive Journal, 40(6), 6-11.
Van Es, R. A. J. (2012). The relationship between service quality and customer loyalty, and its
influence on business model design-A study in the Dutch automotive industry. (Master's
thesis, University of Twenty).
Vargo, S. L., Nagao, K., He, Y., & Morgan, F. W. (2007). Satisfiers, Dissatisfiers, Criticals and
Neutrals: A review of their relative effects on customer (dis)satisfaction. Academy of
Marketing Science Review, 11(2), 509-533.
Wong, A., & Zhou, L. (2006). Determinants and Outcomes of Relationship Quality: A
Conceptual Model and Empirical Investigation. Journal of International Consumer
Marketing, 18(3), 81-96. http://dx.doi.org/10.1300/J046v18n03_05
Zeithaml, V. A. et al. (1996). The behavioral consequences of service quality. Journal of
Marketing, 60(April), 31-46.

Page 17 of 18