Abstract for: System Dynamics Methodology to Customer Loyalty (Case Study: Internet Service Provider Company)

Due to the complexity of the customer loyalty, we tried to provide a conceptual model to explain it in an Internet service provider company with system dynamics approach. To do so, the customerís loyalty for statistical population was analyzed according to Stermanís modeling methodology. First of all, the reference modes (historical behavior of customer loyalty) were evaluated. Then, dynamics hypotheses were developed by means of causal-loop cyclic diagrams and stock-and-flow charts, based on theoretical literature. In the third step, initial conditions of variables, parameters, and mathematical functions between them were estimated. The model was tested and finally, advertising, quality of service improvements and maintaining the status quo scenarios were evaluated. Results suggested improving the quality of service scenario is more effective in comparison to others.