All over the world every business and profit earning firm want to make their consumer loyal. There are
many factors responsible for this customer loyalty but two of them are prominent. This research study is
focused on that how customer satisfaction and customer retention contribute towards customer loyalty. For
analysis part of this study, Universities students of Peshawar Region were targeted. A sample of 120 were
selected from three universities of Peshawar. These universities were Preston University, Sarhad
University and City University of Science and Information technology. Analysis was conducted with the
help of SPSS 19. Results of the study shows that customer loyalty is more dependent upon Customer
satisfaction in comparison of customer retention. Customer perceived value and customer perceived quality
are the major factors which contribute for the customer loyalty of Universities students for mobile
handsets.