The Impact of Brand Personality and Customer Satisfaction on Customer's Loyalty: Theoretical Approach and Findings of a Causal Analytical Study in the Sector of Internet Service Providers

For the past few years, companies within the telecommunication and media industry have been operating within the environment of digital convergence. Internet Service Providers especially are, therefore, confronted with a new competitive landscape, which is characterized by an increased complexity and dynamics. This development implies a need for change in the strategic alignment, a change away from transaction towards relationship orientation understanding loyal customers as an asset. In many different industrial and service providing sectors customer satisfaction is regarded as the key to customer loyalty. However, this relationship is influenced by several other variables, such as the congruent perception of a brand’s personality and customer’s self-concept, switching barriers or the attractiveness of products and services provided by rival companies. This paper examines the relationships between those constructs and provides a structural equation model with latent variables for modelling these complex relationships. The postulated relationships are examined simultaneously in two distinct groups. A survey of 241 adult ISP customers provided data for the analysis. Our results reveal the existence of different segments in the Internet Service Providers (ISP) market. We conclude with a set of implications to guide practitioners and to stimulate future research. RESEARCH