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International Journal of Commerce and ManagementEmerald Article: Towards an integrated model of customer service skills and customer loyalty: The mediating role of customer satisfactionAmjad A. Abu-ELSamen, Mamoun N. Akroush, Fayez M. Al-Khawaldeh, Motteh S. Al-Shibly

Article information:To cite this document: Amjad A. Abu-ELSamen, Mamoun N. Akroush, Fayez M. Al-Khawaldeh, Motteh S. Al-Shibly, (2011),"Towards an integrated model of customer service skills and customer loyalty: The mediating role of customer satisfaction", International Journal of Commerce and Management, Vol. 21 Iss: 4 pp. 349 - 380

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Towards an integrated modelof customer service skillsand customer loyalty

The mediating role of customer satisfaction

Amjad A. Abu-ELSamenDepartment of Marketing, The University of Jordan, Amman, Jordan

Mamoun N. AkroushTalal Abu-Ghazaleh Graduate School of Business Administration,

The German-Jordanian University, Madaba, Jordan

Fayez M. Al-KhawaldehDepartment of Business Administration/Marketing,

The University of Cairo, Cairo, Egypt, and

Motteh S. Al-ShiblyDepartment of Business Administration/Marketing,

The World Islamic Science and Education University, Amman, Jordan

Abstract

Purpose The purpose of this paper is to examine the relationship between customer service skillsand customers loyalty through examining the mediation effect of customer satisfaction dimensions inJordans mobile service operators.

Design/methodology/approach To achieve the research objectives, data were collected from1,350 subscribers in Jordan from which 1,007 were valid for the analysis. Utilizing structural equationmodeling, and after a series of exploratory and confirmatory factor analyses, the authors tested anintegrated model of customer service skills and customer loyalty through examining the meditationaleffects of customer service satisfaction dimensions on the relationship between customer service skillsand customer loyalty.

Findings It was found that three of customer service skills components, namely; reputation buildingskills, nonverbal communication skills, and customer service culture have positive relationships withcustomer service satisfaction dimensions (overall, functional, and technical customer satisfaction). Also,overall customer service satisfaction and technical customer service satisfaction dimensions fullymediated the relationships between customer service skills and customer loyalty.

Originality/value This is the first attempt to investigate the relationship between customerservice skills and customer loyalty through customer service satisfaction dimensions as mediators,either in Jordan or other developing countries. The authors results also provide significant managerialimplications on how to acquire and retain loyal customers in todays highly competitivetelecommunications market, and the vital role of customer service satisfaction dimensions on therelationship between customer service skills and customer loyalty.

Keywords Jordan, Middle East, Mobile communication systems, Customer satisfaction,Customer service skills, Technical customer satisfaction, Customer loyalty, Mobile telecommunications

Paper type Research paper

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1056-9219.htm

Customerservice skills

349

International Journal of Commerceand Management

Vol. 21 No. 4, 2011pp. 349-380

q Emerald Group Publishing Limited1056-9219

DOI 10.1108/10569211111189365

1. IntroductionOver the past two decades, there has been a rising interest in the customer service fieldby both academics and professionals alike. Recognizing the need to differentiate theiroffers, organizations in many competitive markets have realized that providing superiorcustomer service is the way to be distinguished from their competitors (Christopher,1999; Baker, 2000; Lovelock, 2001; Kanovska, 2009). An organizations employees skillsand competencies are essential to making a successful service encounter and interaction.The importance of the service encounter stems from the unique characteristics ofservices which create special problems during the interaction process between thecustomer and the service provider (Parasuraman et al., 1985, 1988; Cronin and Taylor,1992; Lovelock, 2001). Such problems need highly competent and skillful employees totackle them. One of the strategic weapons to creating a successful interaction withcustomers is to provide superior customer service. Furthermore, customer serviceshould be an essential part of marketing strategy. The rationale which underpinscustomer service as a crucial part of the marketing strategy is that the majority of themarketing strategy elements have become standardized and customers tend to perceivethem similarly, especially in telecommunications businesses where customers find itdifficult to distinguish between them. Consequently, we argue that customer servicemay be the only element left to distinguish an organizations offering and its marketingstrategy through providing superior service that needs high quality employees whopossess certain skills and competencies which are essential to achieving customersatisfaction and customer loyalty (CL). Furthermore, empirical studies (TechnicalAssistance Research Programs, 1994; Stamatis, 1996; Akroush et al., 2005; Woods, 1999)have found that customers who are treated well tend to perceive the service providerpositively, complain less, be more loyal, behave cooperatively, pay a higher price, andperceive higher quality of service. This supports earlier empirical findings that revealedthat CL could lead to a 25-85 percent increase in profit (Reichheld et al., 1990).

Customer satisfaction has been a key theme in management and marketing researchover the last 20 years and the relationship between satisfaction and loyalty seems almostintuitive (Cronin and Taylor, 1992). Many researchers have examined theoretical andconceptual foundations of customer satisfaction (Oliver, 1997; Luo and Bhattacharya,2006). These scholars found that customer satisfaction is a major driver of CL. However,the majority of previous research has addressed either overall customer satisfaction(OCS) or used one dimension to measure it. Consequently, based on previous research,we distinguish between three types of customer satisfaction. The three types are OCS,functional customer satisfaction (FCS), and technical customer satisfaction (TCS)(Anderson et al., 1994; Olsen and Johnson, 2003; Dimitriades, 2006). However, whenexamining the satisfaction-loyalty link, previous research (Bolton et al., 1998; Walsh et al.,2008) distinguished between customer satisfaction from the service outcomes(i.e. satisfaction with the assortment/service) and satisfaction from the servicedelivery process (i.e. satisfaction with functional process, e.g. employees friendliness)and indicated that customer satisfaction affects positive word-of-mouth (Swan andOliver, 1989) and future repeat purchase (Bolton et al., 1998). Finally, OCS is a cumulativeconstruct summing satisfaction with specific products/services of the organization withvarious other facets of the organization (Garbarino and Johnson, 1999).

From a practical point of view, there is strong empirical evidence that customersatisfaction is a vital element to long-term business success (Kristensen et al., 1992;

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Zeithaml et al., 1996). Companies that have a more satisfied customer base alsoexperience higher economic returns such as return on investments and profitability(Aaker and Jacobson, 1994; Bolton et al., 1998; Yeung et al., 2002). High customersatisfaction leads to greater CL (Anderson and Sullivan, 1993) which, in turn, leads tofuture revenue (Fornell, 1992; Bolton et al., 1998). In marketing theory, there is strongempirical evidence conducted mainly in Western business environments that shows thatcustomer satisfaction is a strong antecedent to CL (Zeithaml et al., 1996; Anderson andSullivan, 1993; Kim et al., 2004; Xu et al., 2006; Chadha and Kapoor, 2009). In Jordansmobile telecommunications sector, there is a lack of research investigating the effect ofcustomer satisfaction dimensions over Jordanian CL.

To the best of our knowledge, this study is unique since it looks at a developing countrybusiness environment. The Jordanian market has become international over the past15 years by means of a lengthy process of modernization, regulation, and privatization. Oneof the most affected industrial sectors of the Jordanian economy is that oftelecommunications. The importance of this study increases since Jordans mobileservice industry has been ranked as number one in terms of competitiveness in the ArabWorld (Arab Advisors, 2010). This reveals the critical need for our study which is the first ofits kind in Jordan and in the Middle East. The study is equipped with evidence frominterviews with key experts in the mobile service industry which indicated that one of themajor problems facing mobile service operators (MSOs) currently is declining CL rates andsignificant switching behavior. Furthermore, price competition between mobile operatorshas changed the Jordanian market from an emerging market, during the mid-1990s, to analmost saturated one, with customer penetration rate of 90.6 percent in 2008 (JordanTelecommunications Regulatory Commission, 2008). According to Pfanner (2008),eventually emerging markets will look more like their developed counterparts, wherecompetition is intense and network operators lament a lack of CL. This seems to be the caseof Jordans mobile telecommunications industry where 69 percent of mobile subscribershave indicated their willingness to change their current mobile operators (MobileSyndicated Study Report, 2008). Jordanian mobile subscribers have grown to consider allmobile operators to be the same (Kardoosh and Steityeh, 2009), with price as the only basefor differentiation among them (Mobile Syndicated Study Report, 2008). An alternativestrategy Jordans mobile operators could use is to compete through building andmaintaining successful customer service skills program to achieve customer satisfactionand loyalty.

Therefore, what can service organizations do in the field of customer service in orderto increase customer satisfaction and CL in todays competitive business environment?It is apparent that if customers are satisfied and see value in the provided customerservice, they are more likely to repeat purchase and tend to do so in the future (Goodman,1999). Having said that, the main question remaining is what are the antecedents andconsequences of customer service satisfaction (CS)? Our main argument is that theexistence of individual employees customer service skills is a major contributor thatcould lead to achieve customer satisfaction and CL in service businesses. Customerservice is an important topic because it has a strong link to customer satisfaction, whichthen leads to CL. It is also linked to long-term financial outcomes such as profitability(Duncan and Elliott, 2002, 2004). Once the service firm has established its range ofservice product lines and branded them, it is of central importance to have an extensivecustomer service program. The essence of this argument is that successful service


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businesses offer superior service products, but when the core service product and pricesare similar, customer service is the decisive factor. Furthermore, most new services canbe easily copied by competitors (Wong and Perry, 1991), and building up distinguishedbrands in services industries is a relatively difficult task that may not differentiate aservice company. As a consequence, it is argued that customer service should be a mainpart of any service firm offering strategy.

Utilizing customer service skills is vital for todays organizations since it has becomea crucial part of the marketing mix elements, as well as an integral part of the marketingstrategy in order to achieve success (Marr, 1987, 1990, 1994; Lambert and Harrington,1989; Wong and Perry, 1991; Christopher, 1999; Baker, 2000). Although a recognizedeffort was invested in the field of customer service, many businesses face decliningcustomer satisfaction rates (Karimi et al., 2001). Effective and efficient customer serviceoften fails to address important practical issues such as profitability, verbal andnonverbal communication, strategic aspects of customer service, and well-trainedcustomer service staff. Customer service has been defined as the organizations abilityto perform all the processes and activities needed to enable customers to reach the rightparties in the company, receive quick and satisfactory service, and solve their problemsproperly (Kotler, 2000). Hence, in association with Kotlers (2000) definition of customerservice and others work (Marr, 1994; Christopher, 1999; Baker, 2000; Lovelock, 2001),we define customer service skills as individual employees behavioral competenciesthat are essential to deliver a high quality of customer service. In this paper, individualcustomer service employees (providers) are defined as those employees who interactdirectly with the organizations customers, either face to face, over the phone, or over thecall center. However, despite an increasing amount of published material, there remainsa lack of agreement about what customer service is and how customer serviceskills should be developed. Hence, the purpose of this article is to develop an integratedmodel of customer service skills, CS, and CL from customer perspectives of JordansMSOs.

2. Research problemAlthough there is a well established link between customer service and CS and CL (Marr,1994; Smith and Lewis, 1989; Schlesinger and Heskett, 1991a, b; Quinn and Humble,1993; Christopher, 1999; Lovelock, 2001; Swartzlander, 2004; Harris, 2007; Anderson andBolt, 2008), our research of customer service literature indicates that there is littleresearch effort devoted to investigating the link between customer service skills and CLvia CS, especially in service industries in developing countries business environments,e.g. MSOs in Jordan. In Jordanian MSOs, we have not found any research project that isdesignated to investigate such relationship. The only study we found in the field of ourstudy is a study conducted by Akroush et al. (2010) in which they developed a customerservice skills scale and dimensions in Jordans MSOs. Furthermore, the authorsexamined the nomological network of customer service skills scale dimensions andcustomer satisfaction as part of scale development validation. However, the studyrecommended examining the relationship between customer service skills, customersatisfaction, and CL in an integrated model. Consequently, our endeavor in this researchis to fulfill these gaps by developing a model of customer service skills, CS, and CL inMSOs from customers perspectives in Jordan. Hence, this research contributes to theliterature by identifying the customer service skills and competencies that act as

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antecedents to achieve CS properly that will lead to CL by developing an integratedmodel of customer service skills and CL through empirically examining the mediationeffect of CS dimensions in this model. By fulfilling this gap, we hope to enrich ourunderstanding of customer service skills required by customers that enable MSOsemployees to satisfy customers and keep them loyal based on an empirical researchgrounding. From an international marketing perspective, conducting research usingnon-Western samples and focusing on all aspects of the marketing mix in developingcountries is highly encouraged; especially research equipped with rigorous quantitativeanalysis has received a strong support and is recommended in future research(Jain, 2007). Most customer service studies to date concentrate on customer service skillsand other issues in US and Western business environments in general with little effortdevoted to investigating it in developing countries. The results from this research willprovide international telecommunications organizations significant theoretical andempirical research implications on the required skills of MSOs representatives that maybe a good indicator of required customer service skills in neighboring countries in theMiddle East. The essence of this argument is that many customer service programs haveexperienced failure in Jordans MSOs because they adopted ready-made customerservice programs and policies brought from advanced economies of the world that maynot be suitable for the Jordanian/Middle Eastern culture. Furthermore, as part of theAsian nations, Jordan shares some similarities with some Asian mobile serviceindustries such as China, Malaysia, and Indonesia (Zulganef, 2006; Xu et al., 2006;Butt and De Run, 2008; Chadha and Kapoor, 2009; Ee Ling and De Run, 2009). Themajor benefit that can be obtained from the current study is that such nations mobileservice industries may benefit from our study findings in improving individualcustomer service skills since our empirical evidence has come from a relatively similarbusiness environment. Based on the aforementioned discussion, our research objectivesare:

(1) to reveal the customer service skills that should be possessed by individualemployees in order to provide a superior level of customer service from MSOscustomers perspectives;

(2) to investigate if there are relationships between customer service skills and(1) customer satisfaction ((a) overall satisfaction, (b) functional satisfaction,(c) technical satisfaction), and (2) CL in MSOs from customers perspectives;

(3) to examine if the relationship between each component of customer serviceskills and CL is fully mediated by customer satisfaction dimensions ((a) overallsatisfaction, (b) functional satisfaction, (c) technical satisfaction) in MSOs fromcustomers perspectives; and

(4) to investigate if there is a relationship between customer satisfactiondimensions ((a) overall satisfaction, (b) functional satisfaction, (c) technicalsatisfaction) and CL in MSOs from customers perspectives.

3. Research model and hypotheses developmentFigure 1 shows the research model and the hypothesized relationships among itsvariables which all are developed based on customer service skills, CS, and CLliteratures, as shown in the subsequent sections.


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3.1 Customer satisfactionCustomer satisfaction has been regarded as a fundamental determinant of long-termconsumer behavior (Oliver, 1980). Literature shows that there is no universally acceptedmethod or measurement scale that exists for CS. The measurement of customersatisfaction is more exploratory in its development rather than being a precise, exactscience (Gilbert and Veloutsou, 2006). In general, two approaches of customersatisfaction dominate its literature (Gilbert and Veloutsou, 2006). The first approachis the expectancy-disconfirmation approach (Parasuraman et al., 1988; Zeithaml et al.,1996). This approach is based on a comparison of customers expectations versus whatthe customer actually experiences. Expectations-disconfirmation approach appearsmost widely in definitions of product/service quality and consumer satisfaction.This usually means that product/service performance falls short of (or exceeds)what a consumer expects when making a purchase decision with negative(or positive) implications for the experience. The second approach is theperformance-only approach. In this approach, service features are measured inrelation to transaction-specific, and satisfaction is conceptualized as a onetime postpurchase evaluation (Oliver, 1997).

Dimitriades (2006) asserted that two additional issues that need to be clarified whenresearching CS in services are:

(1) whether satisfaction is conceptualized as facet (attribute specific) or as overall(aggregate); and

(2) whether satisfaction is viewed as transaction-specific (encounter satisfaction) oras cumulative (satisfaction over time).

In the same vein, Walsh et al. (2008) distinguished between satisfaction with the serviceattributes and the overall satisfaction. In our research, we build on previousconceptualizations of customer satisfaction (Anderson et al., 1994; Olsen and Johnson,2003; Dimitriades, 2006; Walsh et al., 2008) to distinguish between three types ofsatisfactions:

Figure 1.Proposed research model

Reputation BuildingSkills

Problem SolvingSkills

VerbalCommunications Skills

NonverbalCommunications Skills

Customer ServiceSatisfaction

Overall SatisfactionFunctional SatisfactionTechnical Satisfaction

Customer ServiceCulture Skills

CustomerLoyalty

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(1) OCS;

(2) FCS; and

(3) TCS.

According to Garbarino and Johnson (1999) OCS is a cumulative construct summingsatisfaction with specific products/services of the organization with various other facetsof the organization. The rationale of using a one-item measurement for OCS is that it isused in our study as one of CS dimensions alongside other dimensions (not the only oneused to measure CS), and it has received support from previous literature review (Yukseland Rimmington, 1998; Garbarino and Johnson, 1999; Jones and Suh, 2000; Leisen andVance, 2001). The second type of satisfaction is FCS. It is defined as the service encountersatisfaction that reflects consumer evaluation of the service providers functionalcapabilities to provide the service. Examples of such capabilities are employeesresponsiveness in dealing with complaints, frontline employees interaction, and theeasiness to access the companys employees when needed. Finally, TCS is the serviceattributes satisfaction, which reflects consumers evaluation of the service providertechnical capabilities to provide the service to the consumers (Cronin and Taylor, 1992;Nicholls et al., 1998; Gilbert and Veloutsou, 2006). Technical capabilities includes serviceoutcomes, companies reputation and image, and service prices. The rationale for usingfunctional and technical transaction-specific features in our study is that each one ofthem was empirically tested and found valid from a cross section of industries within theUSA. They also were found to be generic to most industries rather than specific to anyone industry, meaning they could possibly be applied to assess service quality in mostcross industry settings (Gilbert and Veloutsou, 2006). Furthermore, the major focus ofFCS and TCS was on the customers personal reaction to the service delivery and to theservice business environment in which it is delivered. Consequently, they were based theperceived quality of service/product features experienced in the service encounter veryclose to the SERVPERF model (Cronin and Taylor, 1992).

3.2 Customer loyaltyThere seems to be two basic approaches to define CL; the stochastic and deterministicapproach (Odin et al., 2001). The stochastic approach views CL as a behavior manifestedin customers shares of purchase, purchasing frequency, repeat purchase,recommendations, repurchase intentions, and willingness to pay price premium(Raju et al., 1990; Anderson and Sullivan, 1993; Zeithaml et al., 1996). On the other hand,the deterministic approach addresses CL as an attitude manifested through customerspreferences, buying intentions, supplier patronization, and recommendation willingness(Ehrenberg, 1988; Hallowell, 1996; Fournier and Yao, 1997; Xu et al., 2006). While bothapproaches have their advocates, it should be underlined that defining CL as merely abehavior overcomes the fact that customers behaviors are not always a reflection of theirattitudes. Certain factors might cause customers to act loyal while their attitudes arenegative or, at best, neutral towards a certain product or brand. Such factors couldinclude the lack of worthy competition, customers perceived risk of change and, mostseriously, customers perceived lack of difference between competing brands. Hence,any research conducted on CL should adopt a deterministic definition in order to clearlyunderstand customers real attitudes towards mobile operators which could give moresolid indicators towards customers potential future behaviors towards mobile


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operators. Accordingly, our paper adopts Olivers (1997) deterministic definition of CLwho describes it as a deeply held commitment to re-buy or re-patronize a preferredproduct consistently in the future situational influences and marketing efforts thatmight cause switching behavior. We use this definition because it includes bothattitudinal and behavioral aspects of loyalty and was used by other empirical studies(Walsh et al., 2008).

Several authors have advocated the importance of CL to the future stability andgrowth of any organization (Parvez, 2005; Calik and Balta, 2006; Tsoukatos andRand, 2006; McMullan and Gilmore, 2008). In the telecommunications services, it isfrequently pointed out that once customers have been acquired and connected to thetelecommunications network of a particular operator, their long-term relations with thefocal operator are of greater importance to the success of the company in competitivemarkets than they are in any other industry sector (Gerpott et al., 2001, p. 249). Benefits ofCL include reducing the initial cost of introducing and attracting new customers,positive word of mouth, increases in the number of purchases, and increases in the valueof purchases. In marketing theory, CS acts as an antecedent to CL (Zeithaml et al., 1996;Anderson and Sullivan, 1993; Kim et al., 2004; Xu et al., 2006; Zulganef, 2006; Chadha andKapoor, 2009; Ee Ling and De Run, 2009). A multitude of scientific articles in the mobileservice industry has found that CS is a major driver of CL (Aydin et al., 2005; Aydin andOzer, 2006; Lim et al., 2006, Kuusik and Varblane, 2009).

3.3 Development of hypotheses3.3.1 Reputation-building skills. Literature shows that reputation has become oneof the most valuable assets of service organizations. An organizations image isdescribed as a major part of customer service quality (Gronroos, 1984; Akroush, 2008,2009) in creating tangible cues to tackle problems created by the unique characteristicsof services. Employees in the organization and their attitudes, behaviors, andactivities strongly affect a companys image in customers minds (de Chernatony andDallOlmo, 1999). Examples of such activities are: employees understating to theimportance of customers, establishing trust with customers, employees competenciesand commitment to provide the best services for the customers. Therefore, when aproblem happens with a customer and they need customer service, an organizationscustomer service employees task becomes easier if the company enjoys a goodreputation in customers minds. Boyd et al. (1994) found that the most importantcriterion upon which customers choose a service company is its reputation. Doyle (1999)found that superior customer service has made a strong contribution for building astrong brand name. de Chernatony and DallOlmo (1999) view branding as a critical wayto overcome difficulties created by the unique characteristics of services. There is acrucial role for the human dimension (i.e., customer service employees) in order to createa brand image because individuals in the organization and their attitudes, behaviors,and activities strongly affect brands. The major theme in the literature is that building asound image in customers minds is one of the fundamental skills that an organizationscustomer service employees should possess and utilize while interacting withcustomers. In other words, individuals skills and competencies in building trust withcustomers, understanding their importance to the company, and providing the bestbenefits to them are crucial elements of building a companys reputation that arefundamental to satisfy customers. Hence, it can be hypothesized that:

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H1. There is a positive and significant relationship between reputation buildingskills and customer satisfaction ((a) overall satisfaction (b) functionalsatisfaction (c) technical satisfaction.

3.3.2 Problem-solving skills. Problem solving skills requires utilizing employeesmulti-skills such as their ability to identify, seek, and select the solutions for thecustomers problems (Kotler, 2000; Odgers, 2008). Literature shows that problem solvingskills is one of the fundamental aspects of todays customer service employee skills(Quinn et al., 1990; Swartzlander, 2004; Jones and Keppler, 2008). According to Harris(2007), problem solving is an active resolution of a challenging situation. The goals of aservice business and a customer may be different and sometimes are directly opposed.The best approach is to solve the problem creatively by reaching to a win-win solution.Harris (2007) asserted that many people avoid problem solving because employees do nothave the skills necessary to effectively solve problems. Furthermore, empirical evidenceindicates that problem solving skills have a crucial effect on CS (Garfein, 1988; Quinn andHumble, 1993; Freemantle, 1994; Harris, 2007; Odgers, 2008). The above literatureindicates that customer service employee problem solving skills and competencies are amajor driver of customer satisfaction. Hence, it can be hypothesized that:

H2. There is a positive and significant relationship between problem solvingskills and customer satisfaction ((a) overall satisfaction (b) functionalsatisfaction (c) technical satisfaction).

3.3.3 Verbal communication skills. Communication is the process by which information,ideas, and understanding are shared between two or more people (Harris, 2007). Therehas been almost a consensus in customer service literature that communication is anessential part of successful customer service programs and policies, which is intuitivelydivided into verbal and nonverbal communication using many traditional andnontraditional means available to communicate with customers (Smith, 1999; Andersonand Bolt, 2008; Odgers, 2008). Verbal communications skills include words, a set ofsymbols, grammar, the rules for combining words, politeness, being positive, usingnames and titles, and business etiquette (Swartzlander, 2004; Jones and Keppler, 2008).Verbal communication skills should be customer-oriented through the availability oflistening skills such as making the other person feel heard, respecting customerquestions, and being responsive and friendly with customers when discussing theirproblems (Quinn et al., 1990; Timm, 2005; Anderson and Bolt, 2008; Odgers, 2008).Empirical evidence shows that employees verbal communications skills have a positiveeffect on customers attitudes and satisfaction (Farber and Wycoff, 1991; Freemantle,1994; Bernthal and Davis, 1998; Kotler, 2000; Varca, 2004), and on a companys image(Smith and Lewis, 1989; Marr, 1994). Hence, it can be hypothesized that:

H3. There is a positive and significant relationship between verbalcommunications skills and customer satisfaction ((a) overall satisfaction(b) functional satisfaction (c) technical satisfaction).

3.3.4 Nonverbal communication skills. Nonverbal communications skills are anotheressential part of individuals skills to provide successful customer service (Quinn et al.,1990; Jones and Keppler, 2008). According to Swartzlander (2004), it is everything exceptwords, such as employees ability to understand body language, movements and cues,personality, and customers dress, facial expressions, and showing sincerity in serving the


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customer. Empirical research has shown that about two-thirds of a message comes fromnonverbal communication and one-third from words. Usually, in a single communication,a mixed message contains two meanings; one, the verbal, positive, and one, usually thenonverbal, negative. People tend to believe the nonverbal (Swartzlander, 2004). Thediscussed literature indicates that there is rich empirical evidence that has linkedemployees nonverbal communication skills with customer satisfaction (Farber andWycoff, 1991; Freemantle, 1994; Marr, 1994; Bernthal and Davis, 1998; Avkiran, 1999;Varca, 2004). Furthermore, nonverbal communications skills is a major part of customerservice employees skills that deliver the first and lasting impression to customersthrough many silent cues and body language that have a crucial impact on customersatisfaction. Hence, it can be hypothesized that:

H4. There is a positive and significant relationship between non-verbalcommunications skills and customer satisfaction ((a) overall satisfaction,(b) functional satisfaction, (c) technical satisfaction).

3.3.5 Customer service culture skills. The cornerstone of the marketing concept iscustomer orientation (Webster, 1994). If a business is to be successful, its individualsshould be oriented towards satisfying the needs and wants of its customers. Individualsof market-oriented organizations should be able to understand and identify theircustomers needs and requirements (i.e. putting the customer at the heart of business,making customers needs the top priority in the organization, continuously asking forcustomers feedback). Every individual inside the company is responsible for satisfyingcustomers. This argument is supported earlier by Drucker (1968) who argued thatmarketing is not sales or specialized activity, but the whole business seen from the pointof view of its final result, which is the customers point of view. Concern andresponsibility for marketing must therefore permeate all areas of the business. However,putting customers at the heart of the business requires a well established customeroriented corporate culture in which individuals (employees) should possess a set ofvalues and beliefs that are likely to consistently reinforce and pervade the customerfocus across the organization (Deshpande et al., 1993). This argument is supported bymany researchers (Drucker, 1968; Deshpande et al., 1993; Webster, 1994; Slater andNarver, 1996; Hunt and Morgan, 1995; Baker, 2000; Kotler, 2000; Lee, 2004;Homburg et al., 2009) who found that individuals customer-centered culture is amajor driver of customer satisfaction since it is designed around customers needs andcomplaints. Hence, it can be hypothesized that:

H5. There is a positive and significant relationship between customer serviceculture skills and customer satisfaction ((a) overall satisfaction (b) functionalsatisfaction (c) technical satisfaction).

3.4 The mediating role of customer satisfactionThe presented empirical evidence has clearly shown that customer service skills arelinked to CS and CL. The literature also indicates that successful and market-drivenorganizations, such as American Express (Garfein, 1988), UKs financial institutions(Smith and Lewis, 1989), Sears Corporation (Schlesinger and Heskett, 1991a, b),McDonalds (Quinlan, 1991), BMW, British Gas, the Bank of Scotland, and CornhillInsurance company (Freemantle, 1994) and the best service organizations in the USA(Berry, 1999), have created customer service programs and policies in order not only

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to achieve CS but also to create loyal customers. The fundamental issue is that CS is thedirect consequence of a successful interaction between the service provider and thecustomer pre-during-post the service delivery process which should create a positiveand memorable experience in the customer eyes and minds. Positive customerexperience with the service provider creates a solid ground for CL to repeat purchase inthe future, i.e. purchase intentions. Our research on customer service skills, CS and CLindicates that CS is an antecedent of CL. In other words, the existence of customerservice skills is necessary but not sufficient to create CL unless customer service skillslead to achieve CS. Consequently, CS acts as a mediator on the relationship betweencustomer service skills and CL (Zeithaml et al., 1996; Anderson and Sullivan, 1993;Kim et al., 2004; Xu et al., 2006; Zulganef, 2006; Chadha and Kapoor, 2009; Ee Ling andDe Run, 2009). A further support for this argument has come from interviewsconducted with key experts in MSOs in Jordan at an early stage of this research whiledeveloping our research model. According to key experts of MSOs in Jordan, they arefacing a major problem in keeping their acquired customers and retaining their currentones. This is supported by the dealers and retailing manager of a leading mobileservices operator in the Jordanian market who commented that:

We do not have problems in acquiring new subscribers (customers) but we have seriousproblems in retaining them. We are trying to answer one question: how can we keep ourcustomers loyal and retain them? [. . .] what we need to understand is that our customer mustbe satisfied in the first place then we can have our customer service program in place inorder to retain and keep him loyal.

Hence, based on these arguments, it can be hypothesized that:

H6. The relationship between customer service skills and CL is mediated bycustomer satisfaction ((a) overall satisfaction (b) functional satisfaction(c) technical satisfaction).

3.5 Development of sub-hypothesesLiterature shows that there is strong empirical evidence revealed that employee skills andcompetencies are building blocks for creating a sound reputation in modern organizations(Aaker, 1996; Doyle, 1999). Reputation is about what others believe to be true aboutemployees character, personality, skills, competencies, and values. Customers formulatean opinion of these things based on what they have experienced while interacting with aservice companys employees. Eventually, that leads to satisfaction and then creates loyalcustomers because of the positive thought that has been established with the customer.Empirical evidence suggests that reputation building skills is one of the main roots ofcreating loyal customers, but through creating a highly satisfied customer who shouldhave perceived value for money (Aaker, 1996; Doyle, 1999; de Chernatony and DallOlmo,1999; Goodman, 1999; Akroush and Dmour, 2006). Such reputation building skills areembedded in individuals skills and competences in organizations, e.g. customer serviceemployees. In other words, the discussed literature and interviews with key experts inJordans MSOs indicated that there is a relationship between reputation building skillsand CL depends on CS. Hence, it can be hypothesized that:

H7. The relationship between reputation building skills and CL is mediatedby customer satisfaction ((a) overall satisfaction (b) functional satisfaction(c) technical satisfaction).


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Empirical research shows that problem solving skills are effective and creative solutions tosolving customers problems (Garfein, 1988; Quinn and Humble, 1993; Marr, 1994;Mouawad and Kleiner, 1996; Jones and Keppler, 2008). Once customers feel satisfied, thenthey are entitled to a solution and to receive it; eventually that will turn them into loyalcustomers (Jones and Keppler, 2008). Problem solving skills literature seems to have aconsensus that they are a great source of achieving and enhancing CL via satisfyingcustomers (Garfein, 1988; Quinn and Humble, 1993; Marr, 1994; Mouawad and Kleiner,1996; Smith, 1999; Swartzlander, 2004; Harris, 2007; Odgers, 2008). This literatureindicates that solving customers problems and handling their complaints skillfully leadsto satisfy customers which turns them into loyal ones. In other words, the ability oforganizations to create loyal customers depends on their employees problem solving skillsand abilities which should enable them to achieve CS. Hence, it can be hypothesized that:

H8. The relationship between problem solving skills and CL is mediated bycustomer satisfaction ((a) overall satisfaction (b) functional satisfaction(c) technical satisfaction).

Literature shows that, when customers have problems, employees should possess skillsof approaching and receiving them in a powerful way, which will make them believe inthe employees skills and in what they do ( Jones and Keppler, 2008). Such skills meanthat they are confident of what they are doing and the ways they are presenting thesolutions to their customers when they experience or encounter problems and/orcomplaints have a major impact of CS and then on CL (Smith and Lewis, 1989; Farberand Wycoff, 1991; Bernthal and Davis, 1998; Avkiran, 1999; Smith, 1999; Baker, 2000;Goetsch and Davis, 2004; Anderson and Bolt, 2008; Jones and Keppler, 2008; Kanovska,2009). Put in other words, when a customer has a problem, the way a companysindividuals perceive and approach him has a crucial impact on his satisfaction and is amajor determinant on his loyalty. Therefore, employees verbal communication skillshave an important effect on CL through CS. Hence, it can be hypothesized that:

H9. The relationship between verbal communications skills and CL is mediatedby customer satisfaction ((a) overall satisfaction (b) functional satisfaction(c) technical satisfaction).

Furthermore, nonverbal communications skills are an impressive and powerful form ofcommunication. When employees interact with their customers, they continuously giveand receive countless wordless signals ( Jones and Keppler, 2008). The nonverbal signalsemployees send either a sense of interest, trust, and desire for connection, or theygenerate disinterest, distrust, and confusion. And that eventually affects the CS and thesubsequent decisions to be a loyal customer. Consequently, strong empirical andconceptual literature found that nonverbal communications skills are distinguishingfeatures of todays customer service practices and skills to satisfy todays demandingcustomers and to enhance CL potentials especially in businesses where customers founddifficulties in distinguishing between them, e.g. telecommunications (Smith and Lewis,1989; Farber and Wycoff, 1991; Bernthal and Davis, 1998; Avkiran, 1999; Baker, 2000;Goetsch and Davis, 2004; Lee, 2004; Timm, 2005; Anderson and Bolt, 2008; Jones andKeppler, 2008). Therefore, the ability of an organization to keep its customers loyaldepends on its employees nonverbal communications skills that could lead to achieve CLthrough CS. Hence, it can be hypothesized that:

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H10. The relationship between nonverbal communications skills and CL ismediated by customer satisfaction ((a) overall satisfaction (b) functionalsatisfaction (c) technical satisfaction).

Also, as indicated in the literature, employees customer service culture is a set of beliefs,values, and action options that are communicated to all members of the organization thatbecome part of the employees lives and trends that affect their behavior with all,including the customer. Those values affect the customers service level according to thecompanys values and culture, which, usually when combined with the other values,create high CS and CL since the customers feel a part of the firm and more like a member.This is supported by a considerable amount of literature (Smith and Lewis, 1989;Schlesinger and Heskett, 1991a, b; Quinn and Humble, 1993; Freemantle, 1994; Marr,1994; Mouawad and Kleiner, 1996; Bernthal and Davis, 1998; Christopher, 1999; Baker,2000; Varca, 2004; Goetsch and Davis, 2004; Odgers, 2008; Anderson and Bolt, 2008) thatadvocates that one of the major drivers of customer service skills that leads to achievingsuperior CS is individuals customer-centric culture that assists the organization inachieving CL through CS. Hence, it can be hypothesized that:

H11. The relationship between customer service culture skills and CL is mediatedby customer satisfaction ((a) overall satisfaction (b) functional satisfaction(c) technical satisfaction).

3.6 Customer satisfaction and CLThere is an extensive empirical research that links CS to CL. Several researchers, forexample, Anderson and Sullivan (1993), Fornell et al. (1996), Oliver (1997), Kim et al.(2004), found that CL is a consequence of OCS. CL provides the foundation of acompanys sustained competitive advantage. Additionally, there is extensive empiricalevidence in mobile service telecommunications operators conducted in emergingmarkets, which are similar to Jordan, that shows that CS has positively and significantlyaffected CL (Zulganef, 2006; Xu et al., 2006; Butt and De Run, 2008; Chadha and Kapoor,2009; Ee Ling and De Run, 2009). Developing and increasing CL is a crucial factor incompanies profitability, growth, and performance (Reichheld, 1996). What customersperceive affects their judgment and later affects their satisfaction and loyalty. It is anindustry-wide belief that the best core marketing strategy for the future is to try to retainexisting customers by increasing customers loyalty and customer value (Kim et al.,2004). Mobile operators in Jordan are searching for ways to differentiate themselvesfrom their competitors and gain benefits over competition. There have been variouspromotional efforts over the last three years to differentiate themselves. Unfortunately,due to the aggressive price wars in the market and with over 90 percent of marketpenetration, MSOs do not have much room to differentiate on price and they experiencecustomers switching behavior to each other. Bloemer and Kasper (1995), asserted thatsatisfaction is a necessary prerequisite for loyalty and that satisfied customers are morelikely to purchase the same product/service repeatedly. The ability to keep customers isrelated to the intensity of customer satisfaction. Therefore, it is reasonable to predictthat satisfied customers in MSO will have a higher loyalty intention toward its services.The discussed studies found that customer satisfaction is a major driver of CL. Hence,it can be hypothesized that:

H12. There is a positive and significant relationship between OCS and CL.


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As stated previously, customer satisfaction can result from their evaluation of theservice outcomes (i.e. satisfaction with the assortment/service) and/or their evaluationof the service delivery process (i.e. satisfaction with employees friendliness)(Walsh et al., 2008). Customers that experience a high level of satisfaction with acompany are likely not only to remain with their existing providers, but also to spreadpositive word-of-mouth and to show greater repurchase intention (Swan and Oliver,1989; Fornell, 1992; Rust and Williams, 1994; File et al., 1994; Anderson et al., 1994;Bolton et al., 1998). Therefore, both satisfaction dimensions should have positive effectson CL. Hence it can be hypothesized that:

H13. There is a positive and significant relationship between FCS and CL.

H14. There is a positive and significant relationship between TCS and CL.

4. Research methodology4.1 Population and sampleOur research population is mobile subscribers who had valid subscription in at least oneof the three mobile operators operating in Jordan and experienced problems with theiroperators. Several attempts were made to access the three mobile operator customerdatabases from which to draw the research sample. The three mobile operators wereextremely reluctant to provide their customers databases since they were highlyclassified and confidential for competitive reasons. Consequently, to draw arepresentative sample, a convenience sample was chosen from three major cities ofJordan. According to Jordans Telecommunications Regulatory Commission (2008) thesecities represent approximately 80 percent of Jordans mobile service subscribers. Thesecities are Amman (Capital of Jordan), Irbid, and Zarqa. Our sample included mobileservice subscribers in at least one of the three operators in Jordan who were regularsubscribers for at least nine months and experienced problems with their operators. Thequestionnaires were personally delivered to the research sample by a team of researchersin the marketing field and were collected after two weeks. A total of 1,350 surveys weresent out; of those, 1,092 were returned. The effective sample size was 1,007. Table Ipresents a description for the research sample characteristics.

4.2 Constructs operationalizationScales used to measure the research constructs were drawn from available literature oncustomer service skills, CS, and CL, as shown in Appendix 1. Customer service skillsconsists of five behavioral constructs which were drawn based on empirical research ofAkroush et al. (2010). These behavioral constructs are: reputation-building skills, it isoperationally defined as employees understating to the importance of customers,establishing trust with customers, employees competencies and commitment to providethe best services for the customers. Problem-solving skills, it is operationally defined asemployees multi-skills and knowledge possession, identifying and understandingcustomers problems, identifying and providing the best solutions based on win-winsituations. Verbal communication skills, it is operationally defined as employeesresponsiveness and friendliness while explaining and discussing problems withcustomers, and being respectful and sympathetic with customers when problems occur.Nonverbal communication skills, it is operationally defined as multi-skills ofunderstanding body language, movements and cues, personality, and customers dress,

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facial expressions, and showing sincerity in serving the customer. Customer serviceculture skills, it is operationally defined as employees commitment to do things right thefirst time, putting the customer at the heart of the business, making customers needs thetop priority in the organization, continuously asking for customers feedback, easy accessto employees, handling customers complaints quickly, and making customer satisfactionthe responsibility of each employee in the organization. Akroush et al. (2010) five customerservice skills components have excellent composite reliabilities and average varianceextracted, respectively; reputation-building skills (0.81; 0.59), problem-solving skills(0.96; 0.63), verbal communications skills (0.86; 0.62), nonverbal communications skills(0.79; 0.55), and customer service culture (0.89; 0.65). Customer satisfaction, it isoperationally defined as OCS, FCS, and TCS. CL, it is operationally defined as customersintentions to re-buy from their mobile operator in the future, willingness to recommendtheir mobile operator to other people, and customers intentions to endorse their mobileoperator in front of other customers.

4.3 Data collection methods and field workA self-completion questionnaire was used as the main primary data collection method.The questionnaire used in the research survey was highly structured where most of itsquestions were fixed-response alternative questions that required the respondents toselect from responses which are located by using five point Likert scales ranging from5 (strongly agree) to 1 (strongly disagree). The type of research is a single cross-sectional

Gender Frequency Percentages

Subscribers subscription duration (month)Less than 11 98 9.712-23 229 22.724-35 124 12.336-47 85 8.4More than 48 471 46.8Subscribers educational levelHigh school 182 18.1Diploma (college) degree 193 19.2Bachelor degree 515 51.1Master degree 97 9.6PhD degree 20 2.0Subscribers mobile service usageHeavy usage 270 26.8Moderate usage 608 60.4Low usage 129 12.8Subscribers incomeLess than 149 JDsa 111 11.0150-299 JDs 209 20.8300-449 JDs 225 22.3450-599 JDs 259 25.7600-749 JDs 166 16.5More than 750 JDs 37 3.7Total 1,007 100

Note: aJDs is the currency of Jordan Jordanian Dinar

Table I.Research sample

characteristics


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design in which the collection of data from the research respondents (customers) wascarried out only once. Multiple item measures of each construct were used to capture itsrichness and attributes. Our instrument was piloted using personal interviews withcustomers and key managers in the mobile telecommunications industry to revealability of customers (respondents) to understand it and to test its appropriateness forresearch purposes. Using a team of researchers, the primary data collection was carriedout using the personal delivery approach which usually yields a high response rate.The questionnaires were personally delivered to the respondents and were collectedafter two weeks. In the main survey, we delivered 1,350 questionnaires to customers(subscribers) of the three mobile operators in Jordan from which 1,092 were returned; theresponse rate was 80.9 percent. The valid and useable questionnaires for data analysiswere 1,007 (92.2 percent from the returned questionnaires).

5. Analysis and results5.1 Exploratory factor analysisThe dimensionality and measurement properties of customer service skills have beenestablished previously (Akroush et al., 2010). For the remaining variables, CS dimensions(OCS, FCS, and TCS) and CL, our analysis started by examining their structure anddimensionality using exploratory factor analysis (EFA) and reliability analysis. Afterexamining the rotated matrix of EFA, two items of the FCS (FCS 1 and FCS4) were crossloaded with the TCS factor. However, we decided to further examine this issue throughconducting the confirmatory factor analysis (CFA). Cronbachs a for the four-itemfunctional satisfaction variable was 0.77, for the four-item technical satisfaction variablewas 0.78, and for the three-item CL variable was 0.89. EFA results are shown inAppendix 2. The Hermans single factor test was conducted to diagnose common methodvariance in this research. As can be seen in Appendix 2, the unrotated factor solutionresults in a four-factor model, rather than a one-factor model, that explains the majority ofthe covariance among the measures. This result is important because it indicates thatcommon method variance does not represent a substantial threat to the research findings.

5.2 Confirmatory factor analysisThe objective in this study is to retain the items that have high loadings to maintainface validity since the modification indices suggest that many items have more incommon with each other than the specified model allows. Therefore, consistent withthe extant literature, offending items were sequentially deleted until the standardizedloadings and the fit indices revealed that no improvement could be attained throughitem deletion. In addition, following guidelines outlined by Voss et al. (2003), a series ofshortened versions of the scale, were compared using x 2 difference test, goodness of fitindices (GFI), and adjusted goodness of fit indices (AGFI). Following the decision rules,the item deletion process stops if the deletion process compromises the constructvalidity and when one or two possible results occur:

(1) the x 2 difference test shows no difference; and

(2) the AGFI does not increase.

The measurement model was estimated using LISREL (8.5). The model has poor fitindexes (x 2 554.63, df 49, comparative fit index (CFI) 0.93, root mean squareerror of approximation (RMSEA) 0.10, AGFI 0.87, and model AIC 612.63).

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The modification indexes suggested that some items have significant cross loadings.The items are: FCS1, FCS4, and TCS2. We decided to sequentially delete these itemsand run the measurement model again. The fit indices revealed that the model providesexcellent fit to the data (Hu and Bentler, 1999) (x 2 75.64, df 22, CFI 0.99,RMSEA 0.05, AGFI 0.97, and model AIC 121.64). This model has better fitindexes and is favored for two reasons:

(1) the AIC for this (121.64) is lower than the AIC for the saturated model (612.63);and

(2) the AGFI for this model (0.97) is higher than the AGFI for the saturated model(0.87).

Therefore, the modified model will be the base for our discussion in the subsequentsections. Appendix 3 shows the results of CFA.

5.3 Assessment of constructs validityAdditional evidence provided by or derived from the CFA suggests that the resultingmeasures are reliable and valid as indicated by the relatively high composite reliability(CR) and average variances extracted (AVE), as shown in Appendix 3 (Fornell and Larcker,1981; Gerbing and Anderson, 1988). Convergent validity: to establish the convergentvalidity, the items of specific construct should share a high proportion of variances incommon. As can be seen in Appendix 3, the convergent validity is indicated by:

. All factor loadings are significant.

. The relatively high AVE (FCS 67 percent, TCS 60 percent, CL 89 percent).

. CR is higher than 0.7. (FCS 0.80, TCS 0.96, CL 0.89) provide evidence insupport of the measures reliability.

Discriminant validity. It is important to establish that the construct is truly distinctfrom other constructs and captures some phenomena other measures do not. In ourresearch, the discriminant validity is established by:

. The absence of significant cross loadings that are not represented by themeasurement model (i.e. congeneric measures). The absence of significant crossloading is also an evidence of constructs unidimensionality (Gerbing andAnderson, 1988).

. Although the correlations among the five factors are significant (Table II), evidenceof the measures discriminant validity is provided by a significant x 2 differencetest in which the measurement model with construct correlations constrained tounity was compared to a measurement model in which construct correlations werespecified as free and allowed to be less than 1 (Gerbing and Anderson, 1988).Table III shows thex 2 difference tests between each pair of constructs with df 1.

5.4 Structural equation modeling: model and hypotheses testingFollowing the extant literature in model specification (Cannon and Hombourg, 2001), thereliability for the single indicator variables (i.e. OCS), was 0.85 in order to ensure modelidentification. The model was estimated using structural equation modeling usingLISREL 8.5. After purifying the items using the CFA, the next stage of the analyseswas to conduct a structural equation model to test for the hypothesized relationships.


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With regard to testing mediation using SEM, Gerbing and Anderson (1988) suggestedfollowing a two-step procedure:

(1) conducting a CFA to develop a measurement model with an acceptable fit to thedata; and then

(2) conducting a structural model to test the hypothesized relationships.

Then, the hypothesized fully mediated structural model is compared with a partiallymediated structural model to select the best fitting model using a number of CFIs(Hu and Bentler, 1999).

In our analyses, we used the same approach suggested by Gerbing and Anderson(1988) when testing the meditational effect of CS variables (OCS, FCS, and TCS) on therelationship between customer service skills and CL. A full mediation model was built firstin which paths were created from each of customer service skills constructs to each of CSvariables (OCS, FCS, TCS), and from each of CS variables (OCS, FCS, TCS) to CL. The fitindexes for the full mediation model were excellent (x2 283.89; df 55, CFI 0.98,RMSEA 0.06 and AIC 383.89). Next, an alternative structural model was tested(a partial mediation model), in which paths were created from each of customer serviceskills constructs to each of CS variables (OCS, FCS, TCS), and from each of CS variables(OCS, FCS, TCS) to CL as well as adding direct paths from each of customer service skillsconstructs to CL. The fit indexes for the partial mediation model were excellent(x 2 280.95; df 50, CFI 0.98, RMSEA 0.07 and AIC 390.95). We then usedthe Satorra-Bentler scaledx 2 difference test (Satorra and Bentler, 2001) to compare the fullmediation and the partial mediation models to determine which model was a better fit toour data. As can be seen in Table IV, when comparing the two models, the x 2 between thetwo models showed a difference of 2.94 , 11.07 (0.05, 5), thus, favoring the moreparsimonious model with the least paths, which is the full mediation model.

Research constructs OCS FCS TCS CL

OCS FCS 82.67 TCS 115.88 119.33 CL 79.86 84.44 122.44

Table III.x 2 difference testsbetween each pairof constructs

Research construct RBS PSS VCS NCS CSC OCS FCS TCS CL

RBS (m 3.69, std 0.85) 1.00PSS (m 3.57, std 0.84) 0.73 1.00VCS (m 3.69, std 0.90) 0.66 0.73 1.00NCS (m 3.32, std 0.94) 0.56 0.62 0.61 1.00CSC (m 3.54, std 0.84) 0.69 0.71 0.70 0.68 1.00OCS (m 3.74, std 0.94) 0.54 0.51 0.47 0.48 0.54 1.00FCS (m 3.73, std 0.80) 0.54 0.50 0.48 0.47 0.60 0.54 1.00TCS (m 3.54, std 0.84) 0.57 0.55 0.53 0.51 0.65 0.63 0.57 1.00CL (m 3.33, std 0.95) 0.49 0.47 0.43 0.43 0.54 0.57 0.48 0.59 1.00

Table II.Correlations, means, andSDs among the variables

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Additionally, the CFIs for the full mediation model were better than the mirrored ones inthe partial mediation model (i.e. lower RMSEA and lower AIC).

The structural equation findings indicate that, based on R 2, customer service skillscomponents explain 62 percent of the variance in each of OCS and FCS, and 77 percent ofthe variance in TCS. Furthermore, customer satisfaction (OCS, FCS, and TCS) explain52 percent of the variance in CL. Regarding the individual relationships, the resultsshowed that reputation building skills positively influence OCS, FCS and TCS (t 9.29,t 7.75, and t 8.63, p , 0.05, respectively), problem solving skills negativelyinfluence OCS, FCS, and TCS (t 24.29, t 23.78, and t 24.52, p , 0.05,respectively), verbal communication skills negatively influence OCS, FCS, and TCS(t 24.35, t 23.98, and t 24.33, p , 0.05, respectively), nonverbalcommunication skills negatively influence OCS, FCS, and TCS (t 4.86, t 2.75, andt 3.26, p , 0.05, respectively), customer service culture positively influence FCS andTCS (t 3.72, t 4.23, p , 0.05, respectively) and has no relationship with OCS(t 20.41). Furthermore, the results showed that OCS and TCS positively influence CL(t 6.46, t 7.67, p , 0.05, respectively). In contrast, the relationship between FCSand CL was found to be nonsignificant (t 1.68). The full mediation is establishedbecause none of customer service skills has a direct significant relationship with CL, andboth OCS and TCS have a direct positive relationship with CL. A summary of the fullymediated model findings is shown in Table V. Overall, in testing our hypothesized modelshown in Figure 1, we found that CS (OCS, FCS, and TCS) fully mediate the relationshipsbetween customer service skills and CL. When examining the influence of each CS(OCS, FCS, and TCS) as mediators, we found that CS (OCS and TCS) fully mediate theeffect of customer service skills on CL.

5.5 Results discussionThe empirical results supported the prediction that customer service skills havesignificant relationships with customers satisfaction (OCS, FCS and TCS). Customerservice skills explained 62 percent of the variance in each of OCS and FCS, and 77 percentof the variance in TCS. This finding is of strategic significance since the effect ofcustomer service skills on TCS is higher than their effect on both overall and FCS. Theimplication here is that the bottom line of customer satisfaction is the final outcome of theinteraction process that takes place between the customer and the service provider. Thisis supported by another empirical finding in our study which shows that TCS hasexerted the highest effect on CL. A vital implication is that the major focus of customerservice skills should be not only on FCS but also on TCS which should lead to CL.

Regarding the individual relationships in our hypothesized model, the resultsshowed that these relationships were not all at the same direction. We found that thereputation-building dimension had a significant positive effect on CS dimensions,

Mediation models indices x 2 CFI AIC RMESA

Full mediation 283.89 0.98 383.89 0.06Partial mediation 280.95 0.98 390.95 0.07x 2 difference test resultsFull mediation vs partialmediation

x 2 Diff 2.94 , 11.07 (0.05, 5) Accept full mediationTable IV.

Comparison formediating effects of

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supporting H1. This finding is well supported in marketing literature (Smith and Lewis,1989; Boyd et al., 1994). Moreover, our analysis revealed the nonverbal communicationskills dimension positively related to CS dimensions, supportingH4. This relationship isexpected due to the documented literature on effect of nonverbal communication skillson CS and attitudes (Freemantle, 1994; Marr, 1994; Bernthal and Davis, 1998; Varca,2004). Furthermore, enhancing employees customer service culture was found to be animportant factor to influence CS dimensions. Deshpande et al. (1993) found that serviceorganizations need to have a customer-oriented corporate culture to practice customerorientation and CS dimensions. Our results found a positive relationship betweencustomer service culture and customers satisfaction, supporting H5.

In contrary to what we hypothesized, we found that the relationships between theproblem-solving skills dimension, verbal communication skills, and CS dimensionswas negative, thus, rejecting H2 and H3. The results can be explained through theservice recovery paradox; that is, CS ratings tend to be higher when a service failureoccurs and is successfully recovered than those ratings when there is no failure at all.Our sample was drawn from those subscribers who had problems with their operatorsand thus experienced a service failure that was not successfully recovered by theservice provider, which explains the negative relationship with CS.

The results also supported hypothesis H6 which states that the relationship betweencustomers service skills and customers loyalty is fully mediated by customerssatisfactions (overall and technical) (Parasuraman et al., 1994). This conclusion is echoedin the finding that none of the customer service skills has a direct significant relationshipwith CL and that both OCS and TCS have a direct positive relationship with CL. Thisfinding is well established in the literature which asserts that customer service skills arenecessary but not sufficient to create CL, unless they lead to achieve CS and meetcustomers needs (Aaker, 1996; Jones and Keppler, 2008).

Variables in the paths model t-value * b a Hypotheses tested Hypotheses results

RBS! OCS 9.29 * 1.09 H1 AcceptedRBS! FCS 7.75 * 0.80 H1 AcceptedRBS! TCS 8.63 * 0.89 H1 AcceptedPSS! OCS 24.29 * 20.33 H2 RejectedPSS! FCS 2 3.78 * 20.27 H2 RejectedPSS! TCS 24.52 * 20.32 H2 RejectedVSC! OCS 24.35 * 20.37 H3 RejectedVCS! FCS 23.98 * 20.32 H3 RejectedVCS! TCS 24.33 * 20.33 H3 RejectedNCS! OCS 4.86 * 0.39 H4 AcceptedNCS! FCS 2.75 * 0.20 H4 AcceptedNCS! TCS 3.26 * 0.23 H4 AcceptedCSC! OCS 20.41 20.04 H5 RejectedCSC! FCS 3.72 * 0.34 H5 AcceptedCSC! TCS 4.23 * 0.37 H5 AcceptedOCS! CL 6.46 * 0.29 H6 AcceptedFCS! CL 1.68 0.08 H6 RejectedTCS! CL 7.67 * 0.43 H6 AcceptedNotes: Significant at: *p , 0.05; astandardised beta coefficients

Table V.Findings of CS (OCS,TCS) fully mediatesthe relationship betweenCSS and CL

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Regarding the individual relationships between CS dimensions (OCS, FCS, and TCS),and CL, only FCS had no effect on CL, whereas both OCS and TCS had significanteffects on CL, thus, supporting H12 and H14, but rejecting H13. As Fornell (1992) andAnderson et al. (1994) indicated, customers that experience a high level of satisfactionwith a company are likely to remain with their existing operators and maintain theirsubscription that leads to future revenue for the company. Furthermore, a high level ofservice becomes the selling point to attract customers attention and is the mostimportant and significant driver in CS. Furthermore, our research provides an importanttheoretical contribution manifested in the finding that CS (OCS and TCS) fully mediatethe relationship between customer service skills and CL. This is an important findingbecause it supports the literature on CL, as without assuring satisfaction in therelationship there will be no loyalty as an outcome for such relationship. However,FCS did not have a significant effect on CL but maintained a positive one which indicatesthe importance of TCS on CL.

6. Contribution to services marketing literatureTheoretically, our research is the first that has examined the effect of customer serviceskills dimensions on customers loyalty via customers satisfaction as an integratedmodel. This research has enriched our understanding of the customer service skills thatshould be possessed by mobile service organizations employees who have a positiveeffect on customers satisfaction and later leads to achieve CL. From an internationalmarketing perspective, our research is the first of its kind that is devoted tounderstanding customer service skills and CL through CS in emerging or developingcountries business environments, e.g. Jordan. The majority of research conducted in thisarena is either descriptive (e.g. listing customer service skills) or embraced classiccustomer service quality and CS models which are well established and developed inwestern business environments. Our research is different because it has investigatedcustomer service skills from an employee competency-approach through focusing on therequired customer service skills to satisfy customers and keep them loyal in an emergingmarket. Finally, from the transactional marketing perspective, it is recognized that themarketing mix elements, either the 4Ps or the 7Ps, are very similar among mobile serviceorganizations, especially the core mobile service, and customers tend to perceive themsimilarly, i.e. low level of product differentiation. It could be argued that the customerservice skills are the only marketing mix element left for mobile service organizations tosatisfy customers and keep them loyal. Moreover, although they are bigger in size, someAsian Nations mobile service industries could benefit from the findings of our researchsince they share some similarities with Jordan such as culture and behavior.

6.1 Managerial implicationsThe results from this research have several implications for managers and decisionmakers in the mobile service sectors. MSOs should focus their efforts and trainingon enhancing their employees reputation building skills, nonverbal communicationskills, and customer orientation skills, as all these factors were found to be enhancers tocustomer satisfaction. This training could be done internally by communicating toboth consumers and employees what the company brand stands for, educating theemployees about the importance of body language cues in delivering a lastingimpression about the company, and ensuring that service delivery consistently exceeds


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customer expectations. Equally important is building employees problem solvingskills and verbal communications skills because it seems that the companies in themobile sector lack the adequate level of these skills in their employees. This could bedone through creating a learning oriented organization where the employees learn howto multi-task through brainstorming sessions and personal interactions. Thisinteraction will also have a positive effect on enhancing employees verbal skills asthey learn how to listen to their customers and anticipate their needs. Our resultsprovide a framework for the managers to maintain loyal customers. It was found thatavailability of customer service skills is not sufficient for having loyal customersbecause customers perception of the service delivered affects their evaluation andeventually their level of satisfaction, with the intention of keeping the customer loyal,satisfied and to achieve excellent performances. In fierce competition, it is essential forthe MSOs to develop superior customer service skills and customer service capabilitiesthat are able to satisfy and retain customers loyal.

6.2 Limitations and future research directionsAs with all empirical research, research limitations exist as a result of trade-off inresearch design decisions. Although our research model is developed basedon theoretical grounds, its generalizability is limited to the mobile service industryin Jordan as a single industry. However, this is consistent with services marketingliterature that encourages developing a body of marketing knowledge within singleservice industries. A potential area of future research is to replicate our model on otherservice industries in Jordan as well as on developing and developed countries to testits generalizability. Furthermore, comparative or cross-cultural studies are highlyencouraged. Also, only five-facets of customer service skills are investigated in ourmodel which implies that we might have overlooked other important dimensions ofcustomer service skills. A future area of research is to elaborate the customer serviceskills in our model and examine the effect of expanded skills on the other constructs inthe model. Furthermore, the negative relationships between problem solving skills andverbal communication skills and customer satisfaction is counter intuitive. A potentialvenue for future research is to validate these findings. From a methodologicalperspective, a hierarchal effect of MSO might exist. It is possible that multi-level effectswere operating because responses were drawn from three MSOs. Furthermore, it ispossible that the subscriber characteristics (i.e. duration and usage rate) might haveaffected the proposed relationships. Unfortunately, the data were collected on anaggregate level and cannot be analyzed for each MSO to test for the afore-mentionedlimitations. Therefore, it could be a possible area of future research. Finally, anotherarea of potential future research is to examine if the relationship between customersatisfaction dimensions and CL is affected by other variables such as relationshipmarketing, customer service capabilities, customers subscription duration, andcustomers expertise.

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