Factors Influencing Customers Ervice loyalty in the Kenyan Mobile Telecommfactors in Fluencing Customersservice Loyalty in the Kenyan MobiIe Telecommunication Industry

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Date
2013-02-19
Authors
Agyei, Paul Mensah
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Abstract
Customer loyalty as a concept is a crucial strategic decision in this competitive environment. It is therefore not astounding that practitioners and scholars have increased their study and understanding of the concept as a strategic marketing imperative over the past decades to capture market share. Indeed the theoretical perspective is that competitive pricing as well as company image and reputation, service quality and switching cost contribute to customer satisfaction and along a number of pathways drives customer loyalty. A few empirical studies have found these linkages to be factual. However, these factors differ in importance based on the cultural and. environmental setting. The objective of the research aimed to identify and e~i,rically analyse the factors that have impact on customer loyalty in the Kenyan '" mobile telecommunication service industry. Appropriate hypotheses were formulated out of the study's objectives, which were statistically tested. Secondary information, both theoretical and empirical from credible available literatures were retrieved and reviewed. The study adopted the descriptive survey study design with a multi-stage stratified sampling design. Questionnaires were used in primary data collection from students at Kenyatta University main' campus and its satellite campuses. Data were analysed with descriptive statistics and parametric statistical tools such as Pearson productmovement correlation coefficient and regression analysis. A significant relationship was found between service quality and customer loyalty r(313) = 0.47, p<O.OS, between corporate image and reputation and customer loyalty r(313) = 0.41~ p<O.OS, between pricing and customer loyalty r(313) = 0.56, p<O.OS. Switching cost on the other hand had a negative relationship r(313) = - 0.014 but the relationship.was not significant (p>O.OS). The mediating and the moderating variables were fQ~d to have influence on the degree to which the independents variables predict: the dependent variable. The mediating variable influenced with an R2 value of 9.6%. The moderating variable even though significantly (p<O.OS) influenced, the amount of influence was diminutive (R2 difference after the introduction of the moderating variable was 0.5%). The SERVQUAL model explained a significant proportion of variance in customer loyalty scores, R2 = 0.306, F(4, 308) = 33.93, P < 0.05. The dimensions in the model predicted different values on customer loyalty: Reliability b = 0.19, t(313) = 2.89, p<O.OS, Assurance b = 0.2S t(313) = 3.50, p < O.OS, Empathy b = 0.3S t(313) = 4.90, p<O.OS and Reliability b = 0.37, t(313) = 0.54, p>O.OS. These findings hold implications for among others, industry operators to pay attention to their quality of service, pricing strategies and corporate image and reputation. Future researchers may replicate this study in other areas with different macro environmental settings. The dimensions of the SERVQUAL model may be examined in full in future research work. Other antecedents of loyalty may also be considered in future research work. v
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Management Science
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