Effective Service Quality in Short-Lived Promotions; Its Effects on Brand Loyalty in the Teenage Segment

Abstract

Even though the concept of service quality is widely researched, its role in short-lived promotions needs a closer look. Its relation to the teenage market segment has also seen low exploration. The purpose of the study is to examine whether service quality and customer satisfaction experienced by teenagers positively influence customer loyalty and, subsequently form a basis upon which other researchers can contribute further to the relevance of this topic. The paper examines the relationship between service quality of products [during promotion], customer satisfaction, and customer loyalty for brands. It, again, looks at the mediating role of customer satisfaction in the promotion of service quality - customer loyalty relationship in the teenaged segment. It, lastly, explores the role of customer satisfaction in building loyalty among teen consumers. The study was founded on the social exchange theory and the consumer tribe concept. The promotional activity of Vodafone Ghana [The Vodafone X] was used as a case in the study to identify how the variables play. Purposive sampling was applied to select a sample consisting of 300 teenagers in Ghana in a study that spanned six months. An analysis of the relationships was done using Structural Equation Modelling. The findings reveal that service quality evidenced in promotional products, does not directly result in long-term customer loyalty but this can be effectively achieved through customer satisfaction gained as actual service quality exceeds customer expectation. That is to say, service quality increases customer satisfaction which leads to customers’ long-term partnership with the brand. The practical implication for companies is that, product service quality should be improved in periods of promotions, with sustained efforts to improving customer satisfaction. In the light of this the firm can be assured of a long term loyalty of customers.