A survey of factors that determine loyalty of customers to mobile ohone service providers at Kenyatta University
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Date
2012-12-20
Authors
Murunga, Davis M.
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Abstract
The liberalization of telecommunications market in Kenya has introduced competitive approaches and coverage increases in mobile phone services. This has led to a mobile telephony penetration of about50%, with an increase of mobile phone service providers to four, namely; Safaricom, Airtel, Yu and Orange. Besides, competition amongst them has resulted decrease in revenues of the Respective mobile phone service providers, given reduction of prices and diversification of services. The study was carried out with the main objective of identifying the factors that determine the Loyalty of consumers to mobile phone service providers at Kenyatta University. It follows that the specific objectives of the study were; first to determine the relationship between service quality and customer loyalty to Mobile phone service providers; secondly, to determine the effect of corporate image to customer loyalty ;thirdly, to evaluate the impact of switching cost to the loyalty of customers to the Mobile phone service providers; and lastly to establish the relationship between mobile phone service customer trust and loyalty to the respective Mobile phone service providers. The Kenyatta university undergraduate student population was stratified into their respective schools. A total of 128 respondents were reached successfully from all the strata. Primary data was collected using self administered questionnaire. The questionnaire sought the demographic characteristics of the respondents, the mobile phone service providers they are connected to, any switching patterns, their satisfaction with respective mobile phone service provider, and the importance of factors that relate to customer satisfaction, trust, corporate image, and customer loyalty. Thereafter, the data was validated, edited and then coded using SPPS (statistical package for social sciences). Finally, the data was analyzed using descriptive statistical methods and inferential statistical methods of correlation and regression techniques. It was established that customer satisfaction, corporate (company) image and switching cost, influence the factors that determine loyalty of a customer to mobile phone service provider and especially the loyalty status of a mobile phone service customer. However, trust, does not influence the loyalty status but it influences factors that determine loyalty of a customer to mobile phone service provider. Additionally, it was also established that price, promotional programs, distribution and technological status act as moderating variables that influence customer loyalty to MPSPs. This study will be significant in the several ways, such that it will be a contribution to sources of knowledge and information for researcher and academic institutions. Secondly, this study will be important to the Mobile phone service industry in managing of the customer relationships. Thirdly, influencing of product or service development in Mobile phone service provider. Fourthly, in planning marketing programs for Mobile phone service provider. Furthermore, this study will be useful in identifying the competitive advantage aspects of the Mobile phone service provider. therefore, the study recommended continuous monitoring of consumer preferences and patterns Safaricom should emphasize on relationship marketing to service quality and switching barriers, Yu and orange should increase on their respective network coverages, and Safaricom should emphasize on more offers for the age group of between 18-30 years.
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Department of Business Administration