A Study on Influence of Smartphones Business Factors on Customer Satisfaction and Customer Loyalty

Joong-Bae Lee, Dong-Hyun Baek


The core of the smartphone business environment is changing from H/W to S/W and with it the paradigm of an enterprise’s base of competition is changing from H/W to service. In accordance with this paradigm, in this study we have determined H/W, S/W and telecommunication service as smartphone business factors. The purpose of this study is to first analyze the influence business factors has on consumer satisfaction and customer loyalty. Secondly, to analyze the influence switching cost has on customer loyalty. As a result, the factor that has a notable influence on customer satisfaction turned out to be the H/W factor. On the other hand S/W factor and communication service turned out to have very little influence. In addition, the factors influencing customer loyalty turned out to be H/W factor and S/W factor. Telecommunication service did not have much of an influence. Customer satisfaction turned out to act as mediation effect between H/W factor and customer loyalty. Like the result of other preceding researches, switching cost turned out to have a significant influence on customer loyalty. This study differs from other studies in that while other existing studies analyzed H/W, S/W and communication service separately, this study analyzed the influence H/W, S/W and communication service as a whole has on customer satisfaction and customer loyalty. We speculate that the results of this study would provide some insight both in an academic and practical level for stagnant smartphone industry.

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