The impact of perceived service quality on customers’ repurchase intention: Mediation effect of price perception

Abstract

The Internet service sector is characterized as highly competitive, so Internet service providers have to seek ways to offer high-quality services to customers. This study measured the impact of perceived service quality on the repurchase intention of customers with the mediating impact of customers’ price perception. Data were gathered by surveying 405 customers of Internet service providers in Amman (Jordan) using the snowball sampling technique; the questionnaire was shared through social medias. Data were analyzed using factor analysis, regression, path analysis, and structural equation modeling (SEM). The results indicate that service quality factors represented by perceived service quality significantly affect customers’ repurchase intention and price perception (p-value is less than 0.05). Furthermore, price perception partially mediates the relationship between perceived service quality and customers’ repurchase intention, with an estimated power of 0.136. Thus far, the mediating variable that explains and predicts the relationship between perceived service quality and customers’ repurchase intention has been overlooked in the extant literature. Therefore, this study employs the role of price perception as a mediator variable. In addition, it provided an accurate assessment of customers’ perceptions of service quality of Internet providers in Amman (Jordan).