The interconnected roles of brand prestige, alternative attractiveness, brand credibility, customer satisfaction, and trust in shaping customer loyalty: a study of the Malaysian mobile network operator sector

The Malaysian telecommunications sector experienced substantial growth in 2022, spurred by endemic transition and increased mobile technology demand. Total mobile cellular subscriptions increased by 1.6% to 47.95 million, driven by improved nationwide connectivity, affordable mobile plans, and government programs. Despite growth, mobile network operators (MNOs) face persistent challenges in maintaining customer loyalty due to issues like poor service quality and limited-service differentiation. This study examines the dynamics among brand prestige, alternative attractiveness, brand credibility, customer satisfaction, trust, spirituality, and customer loyalty within Malaysia's MNO sector, employing Social Exchange Theory, Expectation Confirmation Theory, and Commitment-Trust Theory. The data was gathered from the survey questionnaire, and a total of 187 valid samples were collected and analysed. A quantitative research method was applied to test the hypotheses developed in this research using Partial Least Square Structural Equation Modelling (PLS-SEM). The research findings show that brand prestige is a key driver of customer satisfaction and loyalty, while alternative attractiveness empowers customers, increasing satisfaction with their current provider. Brand credibility plays a crucial role in building trust, which mediates the relationship between satisfaction and loyalty. Spirituality emerges as a moderating factor, with highly spiritual customers prioritising ethical over brand prestige considerations. These insights suggest that MNOs should integrate social responsibility into branding strategies to cater to diverse customer values. This research contributes both theoretically and practically by providing a framework for understanding customer behaviour in telecommunications and proposing strategic approaches for MNOs to strengthen customer loyalty in a competitive market.