The Moderating Role Of Involvement On Customer Engagement And Loyalty In The Ghanaian Telecommunication Industry

ABSTRACT

This study examines the moderating role of involvement on the relationship that exists between

the dimensions of customer engagement and loyalty. Explanatory research design is used to

establish the relationship between behavioural, cognitive and emotional dimensions of

engagement and the loyalty of customers in the telecommunication industry, by way of the

social exchange theory. The study employs a self-administered questionnaire to survey 305

mobile network subscribers. Covariance-based Structural Equation Modeling was used to

analyse and test the hypotheses. The findings from the study reveal that customers’ engagement

with preferred brands has a positive significant relationship with their loyalty for the brand. In

addition, the level of involvement of customers moderates the relationship, such that

involvement strengthens the positive relationship between customer engagement and loyalty.

Particularly, with behavioural and emotional engagement, involvement is a significant factor

in enhancing loyalty. In terms of contribution, the study enhances theory by empirically testing

the social exchange theory while providing credence to the observed positive relationship

between customer engagement and loyalty. The moderating effect of involvement on this

relationship is a relatively original contribution to empirical works on engagement. This study

provides a recommendation for policy-makers and management in the telecommunication

industry to encourage customer involvement, participation and co-creation in order to build

stronger bonds and loyalty for their brands. It reaffirms the relevance of the roles of social

media and other online engagement tools on loyalty building. The study further highlights the

interdependent roles of online and offline customer engagement.