Impact of Brand Image on Customer Retention with the Mediating Effect of Customer Satisfaction: Special Reference to Sri Lankan Telecommunication Industry

Abstract

The telecommunications industry is one of the main economic contributors of any country with the internet penetration and advancement of communication technologies. This industry has grown at an accelerated rate, and customer retention has become a challenging task for the key players in the marketplace. Hence, this study aims to explore how brand image influences customer retention and to discuss the mediating role of customer satisfaction in the telecommunications industry in Sri Lanka. A quantitative study was conducted with the deductive approach, in which three hypotheses were deduced. This research study employs a positivist research paradigm and follows a deductive approach to examine facts using the developed models and theories. A convenience sample of 384 was collected using a structured questionnaire survey. The sample was mainly collected from the 20–50 age category. The findings demonstrate a significant impact of brand image on customer retention and further indicate that customer satisfaction significantly mediates the relationship between brand image and customer retention. These findings can be utilised to improve customer satisfaction in the telecommunications industry and thereby improve customer retention.