The Empirical Research Of Product Innovation's Effect On Customer Loyalty In Communication Industry

In recent years, telecommunication technology develops rapidly. The issuance of 3G license indicates that China began to enter the 3G era. While with the rapid development of telecommunication technology, consumer demand has also undergone a huge change, showing personalized, diversified features, and they also have new requirements for products. Telecom customers can convert operators based on their needs at any time, in order to find products with better quality and in line with their requirements. And with the deepening reform of the telecommunications industry, the market competition among operators has been fierce. The three operators try to sell new numbers in Large quantities and adjust Charges to increase their market share, but they failed. How to keep customers and reduce customer Switch has always been the problem operators committed to resolve.This study uses empirical research methods, takes consumers of telecommunication industry as the subject, builds the model of the effect of product innovation upon customer loyalty, and introduces customer perceived value and customer satisfaction into the model in order to explore the intermediary effect of these two variables between product innovation and customer loyalty. The results the empirical research and data analysis shows that two dimensions of product innovation have positive effect on customer loyalty, and the effect of radical product innovation on customer loyalty's is bigger than incremental product innovation's. The effect of radical product innovation on customer perceived value is bigger than the other; while smaller than incremental product innovation. customer perceived value and customer satisfaction also have direct effect on customer loyalty.The theoretical significance of this study is that:the dissertation builds up a model in which two dimensions of product innovation influence customer loyalty via customer perceived value and customer satisfaction, and develops a practical measurement scale, enlarges the study of product innovation. On the other hand, this study explores the antecedents research of customer loyalty. The practical significance of this study is that:the dissertation provides a direction for elecommunications Operators to seize the opportunity of the rapid development of telecommunications technology, and thus reducing customer switching behavior. The conclusion of the study will help telecom operators carry out product improvement and promotion activities to enhance the perceived value of customers'and their satisfaction, and ultimately contribute consumers to remain in the operator's network.