Study Of The Relationship Between Customer Satisfaction,Customer Loyalty And Business Performance In Telecom Industry,Illustrated By The Case Of China Unicom

With the coming of "service economy" era, service has gradually occupied apivotal position in the national economy. The question about how to improveenterprise performance level has been the focus of business managers. Nowadays, alarge number of scholars have found that customer satisfaction and customer loyaltyhas a positive effect on firm performance. This paper attempts to explore whether theabove conclusions are also supported in the context of China’s telecommunicationsindustry. This paper selected the telecommunications industry, due to its monopolycharacteristics, which is different from the perfect competitive hotel and tourismindustry studied previously. Therefore, this research has important theoreticalsignificance and provides operators with a practice direction.This paper points out the progress and shortcomings of previous studies on thebasis of literature review. According to the service-profit chain theory, we build theframework in terms of customer satisfaction, customer loyalty and corporateperformance, propose the corresponding research hypothesis, and determine theoverall design of this study clearly.This text is divided into six chapters: Chapter I, Introduction; it introducestheresearch background, purpose and meaning, structure and contribution of this paper.Chapter II, Literature Review; it generalizes domestic and foreign definitions，theoretical models and index of customer satisfaction, customer loyalty and businessperformance. Chapter III, Theoretical model and hypothesis; it proposes theoreticalmodel and hypothesis of this study. Chapter IV, Research design and method; itillustrates the source of data，index selection and analysis methods. Chapter V, dataanalysis; it carries out descriptive statistical analysis, correlation analysis andregression analysis. Chapter VI, Conclusions and implications; it includes research findings, management implications, study limitations and future research directions.In this paper, it takes China Unicom as an example, and uses statistical analysissoftware SPSS16.0to conduct descriptive statistical analysis, correlation andregression analysis, in order to explore internal mechanisms about customersatisfaction, customer loyalty and business performance. Through statistical analysis,the study has three conclusions:①there is a significant positive correlation betweencustomer satisfaction and customer loyalty;②there is a significant positivecorrelation between customer satisfaction (or customer loyalty) and businessperformance. It is necessary to illustrate that the relation is also significant whenprofitability capacity index and solvency capacity index are used to measure businessperformance,but it is not significant when operation capacity index and growthcapacity index are used to measure business performance;③customer loyaltypartially mediates the relationship between customer satisfaction and businessperformance. Similarly, the relation is also significant when profitability capacityindex and solvency capacity index are used to measure business performance, but it isnot significant when operation capacity index and growth capacity index are used tomeasure business performance.Finally, the study proposes the limitations of this study and future researchdirections. And it also provides five recommendations for business owners:①Toimprove the quality of service is the basis of enhancing customer satisfaction;②Toimprove customer satisfaction is an effective way to increase corporate performancefor the telecommunications industry;③Take full use of customer satisfactioninvestigation findings and grasp accurate customer needs;④To develop customerloyalty is a key link to enhance the business performance of the telecommunicationsindustry；⑤Strengthen the asset management and maximize the benefits oftelecommunications industry’s assets.