Customer Satisfaction in Achieving Customer Loyalty through Mediation of Trust: An Empirical Study on Mobile Payment Users

• Published in: Ramanujan International Journal of Business and Research Vol. 4; no. 1; pp. 209 - 222
• Main Authors: Siddiqui, Kashif Iqbal, Azam Imam, Md, Mullick, Naushadul Haque
• Format: Journal Article
• Language: English
• Published: Ramanujan College, University of Delhi, Delhi, India 12-12-2019
• Subjects: customer loyalty; customer satisfaction; customer trust; mobile payment service; smartpls; structural equation modelling
• ISSN: 2455-5959; 2583-0171
• DOI: 10.51245/rijbr.v4i1.2019.158

Indian online payment ecosystem has witnessed a very speedy growth in terms of acceptance as well as in volume especially post demonetization which has forced the sellers as well as buyers to switch to alternatives to the cash payments. Due to entry of global tech giants that are facilitating as aggregators for retail transactions, Indian digital payments system has gained an accelerated growth. The present study attempts to contribute to the knowledge of how customer satisfaction and trust influence loyalty as well as mediating effect of trust between satisfaction and loyalty in India. 200 valid responses were used to study the proposed relationship. The proposed hypothesis was tested using Partial Least Square Structural Equation Modelling using software SmartPLS. Our results confirm that customer loyalty of mobile payment users is directly influenced by customer satisfaction and trust. Further, customer trust mediates the relationship between customer satisfaction and customer loyalty. Therefore, mobile payment service providers should work on privacy and security related issue to develop trust of the customers which will further lead to customer loyalty.