An Analysis of the Customer Satisfaction and Customer Loyalty Among Current YouSee Customers

Frederik Emil Gustafsson & Mathias Vestergaard Gamst

Student thesis: Master thesis

Abstract

The market for TV providers in Denmark has been going through changes during the recent years. YouSee is the biggest TV provider in Denmark and the effects of the new changes has been negative for them. The challenges from the new consumer behaviors that favors more digital and selectiveness affects YouSee by them losing customers each month.
This has led to a focus on customer retention. This leads to the motivation of the thesis, seeking to investigate how YouSee can increase the customer loyalty among its subscribers. By using factor analysis and multiple regression, it is possible to find out which factors YouSee should prioritize to improve the loyalty.
The conduction of qualitative interviews provided new insights that led to the creation of new factors that could have an effect on the customer loyalty. The answers from the qualitative interview contributed to designing the questionnaire used in the quantitative analysis. Results from the quantitative analysis showed different significant effects towards customer loyalty. The most important independent variables were the perception of the product quality, service quality, price and the active consumer choice. Customer satisfaction is also an important factor, however it is affected by the variables mentioned above, which is why the factors have great direct and indirect effects on customer loyalty.
The three segments found through the cluster analysis was the non-loyal and unsatisfied customers, the neutral customers and the satisfied and loyal customers.
The factor scores and the effect on customer loyalty determined what factors that was most beneficial to focus on for the non-loyal and unsatisfied customers and the neutral customers. The two most important factors to increase customer loyalty was the perception of the product quality that has a beta-value of 0,959 and the perception of price that has a beta-value 0,595. Therefore, the analysis shows that they have a positive effect on the customer loyalty, which makes them the key factors to prioritize to reduce the customer churn.
It is recommended that further analyses are done with greater information of the customers to gain deeper insights of the factors that drives customer loyalty.

EducationsMSc in Economics and Marketing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2020
Number of pages240