Unpacking consumer purchase intentions: A stimulus organism response approach to service quality, pricing, and brand loyalty in emerging telecom markets in Tanzania
DOI:
https://doi.org/10.51867/ajernet.6.3.75Keywords:
Brand Trust, Customer Satisfaction, Perceived Price, Purchase Intention, Service QualityAbstract
This study aimed to investigate the indirect effects of perceived service quality and price perception on purchase intention, mediated by customer satisfaction and brand trust, using the Stimulus–Organism–Response (S-O-R) framework. Anchored in the Service Quality Framework and Expectancy Disconfirmation Theory (EDT), the study conceptualises service quality and perceived price as external stimuli influencing internal evaluations, which subsequently shape consumer behavioural intentions. A cross-sectional survey of 601 mobile users across Mainland Tanzania and Zanzibar was conducted, with data analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4. The results reveal that both service quality and perceived price significantly influence purchase intention through the sequential mediation of customer satisfaction and trust. Specifically, perceived price fairness (β = 0.030, t = 9.587, p = 0.000) enhances satisfaction, which increases trust (β = 0.048, t = 10.610, p = 0.000). Similarly, service quality (β = 0.032, t = 13.976, p = 0.000) positively impacts satisfaction and ultimately fosters trust (β = 0.032, t = 8.563, p = 0.000). The study concludes that perceived price fairness and service quality indirectly increase purchase intention through satisfaction and trust. Based on these results, the study recommends that telecom operators should prioritise fair pricing and superior service to enhance satisfaction, build trust, and promote customer loyalty.
Downloads
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T
Aker, J. C., & Mbiti, I. M. (2010). Mobile phones and economic development in Africa. Journal of Economic Perspectives, 24(3), 207-232. https://doi.org/10.1257/jep.24.3.207
Akbar, M. M., & Parvez, N. (2009). Impact of service quality, trust, and customer satisfaction on customers' loyalty. ABAC Journal, 29, 24-38. https://api.semanticscholar.org/CorpusID:167075340
Amin, M., Leong, L. C., Sondoh, S. L., & Tanakinjal, G. H. (2017). A study of the service quality, customer satisfaction, and loyalty in the Malaysian telecommunication sector. Journal of Business and Retail Management Research, 12(1), 12-21.
Bello, S. A., Osman, S., Rahim, H. A., & Yusuf, S. A. (2023). The role of consumer satisfaction, involvement, and engagement on consumer loyalty in the telecommunication industry among Nigerian university students. International Journal of Academic Research in Business and Social Sciences, 13(10), 580-601. https://doi.org/10.6007/IJARBSS/v13-i10/18857
Boomsma, A., & Hoogland, J. J. (2001). The robustness of LISREL modeling revisited. In R. Cudeck, S. du Toit, & D. Sörbom (Eds.), Structural equation models: Present and future. A festschrift in honor of Karl Jöreskog (pp. 139-168). Scientific Software International.
Brislin, R. W. (1970). Back-translation for cross-cultural research. Journal of Cross-Cultural Psychology, 1(3), 185-216. https://doi.org/10.1177/135910457000100301
Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81-93. https://doi.org/10.1509/jmkg.65.2.81.18255
https://doi.org/10.1509/jmkg.65.2.81.18255
Chege, C. N., Wanjau, K. L., & Nkirina, S. (2019). Relationship between empathy dimension and customer satisfaction in the insurance industry in Kenya. International Journal of Research in Business and Social Science, 8(6), 357-366. https://doi.org/10.20525/ijrbs.v8i6.577
Chen, S.-C., & Lin, C.-P. (2019). Understanding the effect of social media marketing activities: The mediation of social identification, perceived value, and satisfaction. Technological Forecasting and Social Change, 140, 22-32. https://doi.org/10.1016/j.techfore.2018.11.025
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Sage Publications.
Ebert, P., & Winzer, P. (2025). Bilateral analysis of consumer trust in mobile providers: An empirical mixed methods approach in Germany. In Proceedings of the 58th Hawaii International Conference on System Sciences. 4076-4085, DOI: 10.24251/HICSS.2025.490
Ebrahim, R., Ghoneim, A., Irani, Z., & Fan, Y. (2016). A brand preference and repurchase intention model: The role of consumer experience. Journal of Marketing Management, 32(13-14), 1230-1259. https://doi.org/10.1080/0267257X.2016.1150322
Firmansyah, F., Sugiat, M., & Yunita, I. (2023). The impact of service quality, customer satisfaction, and trust on customer loyalty among BRILink agents in North Sumatra. International Journal of Science Technology & Management, 4(5), 1381-1388.
https://doi.org/10.46729/ijstm.v4i5.957
Gefen, D. (2000). E-commerce: The role of familiarity and trust. Omega, 28(6), 725-737. https://doi.org/10.1016/S0305-0483(00)00021-9
https://doi.org/10.1016/S0305-0483(00)00021-9
Gronroos, C. (2008). Service logic revisited: Who creates value? And who co-creates? European Business Review, 20(4), 298-314. https://doi.org/10.1108/09555340810886585
Hair, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: Updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123. https://doi.org/10.1504/IJMDA.2017.087624
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., Ray, S., et al. (2021). Evaluation of reflective measurement models. In Partial least squares structural equation modeling (PLS-SEM) using R. Classroom Companion: Business (pp. 75-90). Springer. https://doi.org/10.1007/978-3-030-80519-7_4
Hussain, S., Fangwei, Z., Siddiqi, A., Ali, Z., & Shabbir, M. S. (2018). Structural equation model for evaluating factors affecting quality of social infrastructure projects. Sustainability, 10(5), 1415. https://doi.org/10.3390/su10051415
IBM Corp. (2017). IBM SPSS Statistics for Windows (Version 25.0), Computer Software, IBM Corp.
Karim, R. A. (2020). Influence of service quality on customer satisfaction and customer loyalty in the private banking sector of Bangladesh: A PLS approach. Journal of Marketing and Information Systems, 1(3), 8-17. https://doi.org/10.31580/jmis.v1i3.1049
Kim, M. K., Park, M. C., Park, J. H., Kim, J., & Kim, E. (2018). The role of multidimensional switching barriers on the cognitive and affective satisfaction-loyalty link in mobile communication services: Coupling in moderating effects. Computers in Human Behavior, 87, 212-223.
https://doi.org/10.1016/j.chb.2018.05.024
Kothari, C. R. (2004). Research methodology: Methods and techniques (2nd ed.). New Age International.
Kotler, P., & Keller, K. L. (2016). Marketing management (14th ed.). Shanghai People's Publishing House.
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69-96. https://doi.org/10.1509/jm.15.0420
Li, Y. P. (2016). Empirical study of influential factors of online customers' repurchase intention. iBusiness, 8(3), 48-60.
https://doi.org/10.4236/ib.2016.83006
Li, L., & Wang, W. (2020). The effects of online trust-building mechanisms on trust in the sharing economy: The perspective of providers. Sustainability, 12(5), 1717. https://doi.org/10.3390/su12051717
Machemba, S. J. (2022). Factors influencing customers' behavior and mobile-phone companies switching in the telecommunications industry: The case study of Tanzania. International Journal of Novel Research and Development (IJNRD), 7(12), a520-a528. https://ijnrd.org/papers/IJNRD2212072.pdf
Mehrabian, A., & Russell, J. A. (1974). An approach to environmental psychology. MIT Press.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. https://doi.org/10.2307/1252308
Msuya, O. (2022). The multifaceted nature of job satisfaction among academic staff in public and private universities in Tanzania: A critical perspective of counterproductive behaviours. Higher Education Studies, 12(2), 60-70. https://doi.org/10.5539/hes.v12n2p60
Mboya, E., Jani, D., & Dominic, T. (2024). The influence of services quality dimensions on customer satisfaction in the Court of Appeal of Tanzania. ORSEA Journal, 14(2), 71-88. https://doi.org/10.56279/orseaj.14.2.6960
Naik, C. K., Gantasala, S. B., & Prabhakar, G. V. (2010). Service quality (SERVQUAL) and its effect on customer satisfaction in retailing. European Journal of Social Sciences,16, 231-243. https://pdfs.semanticscholar.org/d124/e866687313a05a8ae38c2cd8d7f49e25783 0.pdf
Nguyen, N., & LeBlanc, G. (2021). The impact of service employees and servicescape on customers' perception of quality improvement efforts. Athens Journal of Business & Economics, 7(2), 123-144. https://doi.org/10.30958/ajbe.7-2-1
Okinda, M. M. (2024). The influence of service quality on customer satisfaction of the telecommunication companies in Tanzania: A case study of Vodacom Tanzania. International Journal of Research and Innovation in Social Science, 8(5), 2224-2269.
https://doi.org/10.47772/IJRISS.2024.805164
Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469. https://doi.org/10.2307/3150499
Oliver, R. L. (1997). Satisfaction: A behavioral perspective on the consumer. McGraw-Hill.
Omar, M., Ariffin, H., & Ahmad, R. (2016). Service quality, customers' satisfaction and the moderating effects of gender: A study of Arabic restaurants. Procedia-Social and Behavioral Sciences, 224, 384-392. https://doi.org/10.1016/j.sbspro.2016.05.393
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Ringle, C., Da Silva, D., & Bido, D. (2015). Structural equation modeling with the SmartPLS. Brazilian Journal of Marketing, 13(2), 56-73.
https://doi.org/10.5585/remark.v13i2.2717
Sarstedt, M., Hair, J. F., Cheah, J.-H., Becker, J.-M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197-211. https://doi.org/10.1016/j.ausmj.2019.05.003
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. E. Vomberg (Eds.), Handbook of market research (pp. 1-47). Springer. https://doi.org/10.1007/978-3-319-05542-8_15-2
Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L., & Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology & Marketing, 39, 1035-1064. https://doi.org/10.1002/mar.21640
Saunders, M. N. K., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8thed.). Pearson.
Tanisah, T., & Maftukhah, I. (2015). The effects of service quality, customer satisfaction, trust, and perceived value towards customer loyalty. Jurnal Dinamika Manajemen, 6(1), 55-61. https://doi.org/10.15294/jdm.v6i1.4296
Tanzania Communications Regulatory Authority (TCRA). (2023). Communication statistics report: Quarter ending December 2022, Tanzania, 1-40.
Tanzania Communications Regulatory Authority (TCRA). (2025). Communication statistics report: Quarter ending December 2024, Tanzania, 1-53.
Tran, V.-D., & Lê, T. (2020). Impact of service quality and perceived value on customer satisfaction and behavioral intentions: Evidence from convenience stores in Vietnam. Journal of Asian Finance, Economics and Business, 7(9), 517-526. https://doi.org/10.13106/jafeb.2020.vol7.no9.517
Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources-based view. Industrial Marketing Management, 89, 89-97. https://doi.org/10.1016/j.indmarman.2020.03.003
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478. https://doi.org/10.2307/30036540
Wan Nawang, W. R., Che Murat, S., Anwar, I. F., & Hashim, N. H. (2024). Service quality, brand image, customer satisfaction, and customer loyalty towards telecommunications service providers in Malaysia: A PLS-SEM approach. International Journal of Academic Research in Business and Social Sciences, 14(8), 490-504. https://doi.org/10.6007/IJARBSS/v14-i8/22225
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22. https://doi.org/10.2307/1251446
Zeithaml, V. A. (2020). Service quality, profitability, and the economic worth of customers: What we know and what we need to learn. Journal of the Academy of Marketing Science, 28, 67-85. https://doi.org/10.1177/0092070300281007
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46. https://doi.org/10.2307/1251929
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Robert Makorere

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.













