IDEAS home Printed from https://ideas.repec.org/a/vrs/manmar/v13y2018i4p1150-1173n1.html
   My bibliography  Save this article

Relative fixed Internet connection speed experiences as antecedents of customer satisfaction and loyalty: An empirical analysis of consumers in Germany

Author

Listed:
  • Gerpott Torsten J.

    (Mercator School of Management, University of Duisburg-Essen, Duisburg, Germany)

Abstract

So far, management practitioners and scholars alike assume that raises in the contractual absolute maximum bandwidth of Internet connections increase the attitudinal bonds of customers with their access provider. The present study broadens this perspective: In a sample of up to 752 German-speaking Internet users with a wireline Internet access at home, it explores two relative speed characteristics of broadband connections as potential determinants of customer affinity with an access provider. The two reference-dependent aspects comprise customer quality experiences in terms of delivered transmission speeds (1) relative to the maximum down- and upload bandwidths as per customer contract, and (2) relative to speeds emphasized in advertisements of a consumer’s access provider. Furthermore, correlations are analyzed between the frequency with which customers use speed tests to check the quality of their wireline Internet connection and their attitudinal bonds with their access provider. Attitudinal bonding is broken down into customer satisfaction with the performance of the current wireline Internet access at home and propensity to churn at the earliest opportunity. Multivariate regression analysis reveals that the impression that advertised wireline access bandwidths are exaggerated compared to the speeds actually delivered and – to a lesser extent – the perception that the contractual maximum speed is reached only in a low share of a customer’s Internet sessions significantly decrease customer satisfaction and significantly increase customer inclination to churn. The effects of the two speed assessments are not independent of one another: Perceived speed exaggerations in a provider’s ads impair customer bonds less (more) strongly if the experienced share of Internet sessions with speeds below the contractual maximum bandwidth is high (low). More frequent speed testing reduces customer bonding, especially in case that advertised speeds of a customer’s provider are experienced as overblown. The results suggest that wireline Internet access providers can increase the attitudinal bonds with their customers by abstaining from emphasizing maximum speeds in their advertising, which customers rarely reach under standard everyday conditions.

Suggested Citation

  • Gerpott Torsten J., 2018. "Relative fixed Internet connection speed experiences as antecedents of customer satisfaction and loyalty: An empirical analysis of consumers in Germany," Management & Marketing, Sciendo, vol. 13(4), pages 1150-1173, December.
  • Handle: RePEc:vrs:manmar:v:13:y:2018:i:4:p:1150-1173:n:1
    DOI: 10.2478/mmcks-2018-0029
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/mmcks-2018-0029
    Download Restriction: no

    File URL: https://libkey.io/10.2478/mmcks-2018-0029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Riquelme, Isabel P. & Román, Sergio & Iacobucci, Dawn, 2016. "Consumers' Perceptions of Online and Offline Retailer Deception: A Moderated Mediation Analysis," Journal of Interactive Marketing, Elsevier, vol. 35(C), pages 16-26.
    2. Guang-Xin Xie & Robert Madrigal & David Boush, 2015. "Disentangling the Effects of Perceived Deception and Anticipated Harm on Consumer Responses to Deceptive Advertising," Journal of Business Ethics, Springer, vol. 129(2), pages 281-293, June.
    3. Grzybowski, Lukasz & Hasbi, Maude & Liang, Julienne, 2018. "Transition from copper to fiber broadband: The role of connection speed and switching costs," Information Economics and Policy, Elsevier, vol. 42(C), pages 1-10.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Thaichon, Paramaporn & Lobo, Antonio & Prentice, Catherine & Quach, Thu Nguyen, 2014. "The development of service quality dimensions for internet service providers: Retaining customers of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 1047-1058.
    6. Peter D., Lunn & Sean, Lyons, 2017. "Consumer switching intentions for telecoms services: evidence from Ireland," MPRA Paper 77412, University Library of Munich, Germany.
    7. Tony H. Grubesic, 2015. "The Broadband Provision Tensor," Growth and Change, Wiley Blackwell, vol. 46(1), pages 58-80, March.
    8. Doaa Fathy & Tamer H. Elsharnouby & Ehab Abou Aish, 2016. "Deception in advertising revisited: antecedents and differences in perception across consumer groups," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 8(4), pages 403-425.
    9. Syed Akif Hasan & Muhammad Imtiaz Subhani & Ana Mateen, 2011. "Effects of Deceptive Advertising on Consumer Loyalty in Telecommunication Industry of Pakistan," Information Management and Business Review, AMH International, vol. 3(5), pages 261-264.
    10. Gerpott, Torsten J. & Rams, Wolfgang & Schindler, Andreas, 2001. "Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market," Telecommunications Policy, Elsevier, vol. 25(4), pages 249-269, May.
    11. Chuah, Stephanie Hui-Wen & Marimuthu, Malliga & Kandampully, Jay & Bilgihan, Anil, 2017. "What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 124-136.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hagebölling, Mona & Seegebarth, Barbara & Woisetschläger, David M., 2021. "Tactical termination of contractual services – An analysis of the phenomenon and its determinants," Journal of Business Research, Elsevier, vol. 137(C), pages 170-181.
    2. Sharma, Isha & Jain, Kokil & Behl, Abhishek, 2020. "Effect of service transgressions on distant third-party customers: The role of moral identity and moral judgment," Journal of Business Research, Elsevier, vol. 121(C), pages 696-712.
    3. Md. Rakeullah Chowdhury, 2020. "A study on customer retention and brand image: an empirical evidence of mobile operators in Bangladesh," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 10(2), pages 65-73, February.
    4. Jacques Nel & Christo Boshoff, 2023. "Unraveling the link between status quo satisfaction and the rejection of digital-only banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 189-207, March.
    5. José Torrão & Sandrina Teixeira, 2023. "The Antecedents of Customer Satisfaction in the Portuguese Telecommunications Sector," Sustainability, MDPI, vol. 15(3), pages 1-17, February.
    6. Seow Eng Ong & Davin Wang & Calvin Chua, 2023. "Disruptive Innovation and Real Estate Agency: The Disruptee Strikes Back," The Journal of Real Estate Finance and Economics, Springer, vol. 67(2), pages 287-317, August.
    7. Herrmann, Tabea & Hübler, Olaf & Menkhoff, Lukas & Schmidt, Ulrich, 2016. "Allais for the poor," Kiel Working Papers 2036, Kiel Institute for the World Economy (IfW Kiel).
    8. Christiane Goodfellow & Dirk Schiereck & Steffen Wippler, 2013. "Are behavioural finance equity funds a superior investment? A note on fund performance and market efficiency," Journal of Asset Management, Palgrave Macmillan, vol. 14(2), pages 111-119, April.
    9. Berg, Joyce E. & Rietz, Thomas A., 2019. "Longshots, overconfidence and efficiency on the Iowa Electronic Market," International Journal of Forecasting, Elsevier, vol. 35(1), pages 271-287.
    10. Reckers, Philip M.J. & Sanders, Debra L. & Roark, Stephen J., 1994. "The Influence of Ethical Attitudes on Taxpayer Compliance," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(4), pages 825-836, December.
    11. Bier, Vicki & Gutfraind, Alexander, 2019. "Risk analysis beyond vulnerability and resilience – characterizing the defensibility of critical systems," European Journal of Operational Research, Elsevier, vol. 276(2), pages 626-636.
    12. Sitinjak Elizabeth Lucky Maretha & Haryanti Kristiana & Kurniasari Widuri & Sasmito Yohanes Wisnu Djati, 2019. "Investor behavior based on personality and company life cycle," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(2), pages 23-38, August.
    13. Theo Arentze & Tao Feng & Harry Timmermans & Jops Robroeks, 2012. "Context-dependent influence of road attributes and pricing policies on route choice behavior of truck drivers: results of a conjoint choice experiment," Transportation, Springer, vol. 39(6), pages 1173-1188, November.
    14. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    15. Frank D. Hodge & Roger D. Martin & Jamie H. Pratt, 2006. "Audit Qualifications of Income†Decreasing Accounting Choices," Contemporary Accounting Research, John Wiley & Sons, vol. 23(2), pages 369-394, June.
    16. Philippe Fevrier & Sebastien Gay, 2005. "Informed Consent Versus Presumed Consent The Role of the Family in Organ Donations," HEW 0509007, University Library of Munich, Germany.
    17. Ran Sun Lyng & Jie Zhou, 2019. "Household Portfolio Choice Before and After a House Purchase," Economics Working Papers 2019-01, Department of Economics and Business Economics, Aarhus University.
    18. Homonoff, Tatiana & Spreen, Thomas Luke & St. Clair, Travis, 2020. "Balance sheet insolvency and contribution revenue in public charities," Journal of Public Economics, Elsevier, vol. 186(C).
    19. Shuang Yao & Donghua Yu & Yan Song & Hao Yao & Yuzhen Hu & Benhai Guo, 2018. "Dry Bulk Carrier Investment Selection through a Dual Group Decision Fusing Mechanism in the Green Supply Chain," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    20. Senik, Claudia, 2009. "Direct evidence on income comparisons and their welfare effects," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 408-424, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:manmar:v:13:y:2018:i:4:p:1150-1173:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.