The effects of customer perceived value on loyalty: a case study of Safaricom subscribers in Mombasa county
Hamid, Mohamed Athman
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The business market is more infiltrated by services and technological communication is a business under rapid change. The traditional use of fixed-line to communicate has been over taken by the new mobile phone services. These new mobile telephone services have created unanticipated value by meeting the customer needs in an unexpected way. Mobile phone service providers like Safaricom have provided several services that have enhanced the customer value. This study focused on determining the customer perceived value of the Safaricom services use, and investigated its effects on their loyalty in the Mombasa County. The research design used was a descriptive survey and data was collected through the use of questionnaires. A total of 119 pre-paid Safaricom subscribers were surveyed within the island of the Mombasa County. The questionnaire was used to determine two customers' perceived values; the service quality and value for money. The effects of these two value drivers on customer loyalty were also analyzed in the questionnaire. Perceived value was measured through questions on its overall quality reliability and price and the extent to which it met the customer needs. A 5-item likert-scale was used to measure the customer's perceived value and loyalty. The questionnaire mainly adopted structured-type questions. The results from the questionnaire were first summarized in a data preparation process and results were analyzed using the descriptive analysis and use of graphical techniques. Tables, graphs and charts were used to show percentages and trends in the data. In order to measure the spread of the data over the sample population, mean scores and standard deviations were calculated using the SPSS package. The study revealed that the Safaricom subscribers in Mombasa County have very high usage of most of the services. The customer perception on service quality aspects was generally good. The value for money perception had mixed results. Findings on customer loyalty revealed that most respondents were neutral as to whether they would recommend others to use Safaricom's services or even commit themselves to continue using the services in future.