Differentiation Strategies and Service Delivery of Mobile Service Providers in Kenya
Khendi, Nimrod Kaane
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The telecommunication industry in Kenya is full of competition the mobile service providers present include Safaricom Plc, Airtel Kenya and Telkom Kenya. These mobile service providers touch on the social- economic life of most individuals both directly and indirectly as they are tasked with offering superior, reliable service delivery. However, different clients have different attitudes and perceive service delivery differently. Mobile service providers are grappled with offering service delivery commensurate with the perception of customers. This research investigated the effect of differentiation strategies on service delivery of mobile service providers in Kenya. The specific objectives of the study were to determine the effect of product differentiation, convenience and price differentiation on service delivery of mobile service providers in Kenya. The research was supported by two theories namely, SERVQUAL model and Porters generic model. The research employed survey research design. The population target were three mobile service providers that are Safaricom PLC, Airtel Kenya and Telkom Kenya the study respondents were the customers of the mobile service providers. The study used sample of 96 customers drawn from customers visiting the following outlets, Safaricom Moi Avenue, Airtel Xpress Moi Avenue and Telkom Extelcoms Hailesellasie Avenue. Systematic random sampling was employed in identifying respondents. A structured questionnaire was incorporated in data collection. A total of 32 questionnaires were distributed to each outlet. Pilot study was done on 9 respondents (10% of the sample) who were drawn from the mobile service providers’ outlets in Nairobi Central Business District through simple random sampling. Content validity was adopted in the study; to evaluate content validity the researcher used an expert that is the project supervisor to appraise the measuring instrument. Cronbach alpha coefficient was useful in examining the research instrument, Cronbach alpha coefficient of 0.7 was used for reliability. The assembled data was examined by means of descriptive statistics and inferential statistics assisted by Statistical Package for Social Scientists (SPSS). Data presentation entailed usage of percentages, bar charts, pie charts. The findings indicated that differentiation strategies had a positive significance influence on the service delivery of mobile service providers in Kenya with product differentiation t-values (t=7.235, <0.05), convenience t-values (t=4.504, <0.05) and price differentiation t-values (t=4.308, <0.05). The research concluded, product differentiation, convenience and price differentiation affects service delivery of mobile service providers in Kenya having been statistically significant and therefore considered. The study recommended that the companies have to keep on offering an emotive salience attributed to a service or product. It is most vital for traders to present convenience in a manner that is germane to the customer. Position the products for customer convenience as a differentiation strategy. Organizations should develop distinct prices to cater for diverse client segments, or centered on fluctuating situational dynamics, such as, timing, competition and demand.