A PILOT STUDY OF THE HONG KONG SMARTPHONE MARKET: HOW SERVICE QUALITY AFFECTS REPURCHASE INTENTION VIA CUSTOMER SATISFACTION AND ATTITUDINAL LOYALTY

HOLLY NG, TILO LI, MARINE YEUNG

Abstract:

The smartphone penetration rate among people aged 15 and above in Hong Kong stood at close to 90 per cent in 2018. While the demand for smartphones has been increasing, the smartphone market in Hong Kong is highly competitive. Smartphone firms strive to maintain their customers by encouraging repurchases through launching newer models. The marketing cost of keeping an existing customer is well below that of finding a new customer. Therefore, how to motivate current customers to repurchase newer editions of the same brand is a major marketing concern for most companies. The purpose of this paper is to explore the causality between service quality and repurchase intention via customer satisfaction and attitudinal loyalty. Data from a sample of 200 Hong Kong smartphone users aged 18 and above confirm that customer satisfaction mediates the relationship between service quality and attitudinal loyalty that eventually affects repurchase intention. The percentage of the direct effect of service quality on attitudinal loyalty demonstrated a significant partial mediation of customer satisfaction. The results of this study provide important theoretical and managerial implications for researchers and practitioners of the smartphone industry not only in Hong Kong but also around the world.

Keywords:
Smartphone marketing, service quality, customer satisfaction, attitudinal loyalty, repurchase intention

DOI: 10.20472/BM.2020.8.2.006

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APA citation:
HOLLY NG, TILO LI, MARINE YEUNG (2020). A pilot study of the Hong Kong smartphone market: How service quality affects repurchase intention via customer satisfaction and attitudinal loyalty. International Journal of Business and Management, Vol. VIII(2), pp. 93-109. , DOI: 10.20472/BM.2020.8.2.006

Copyright © 2020, Holly Ng et al, hollyng@twc.edu.hk