Determinants of customers switching behavior A Study of mobile telecom industry in Kenya

By: Contributor(s): Publication details: Nairobi, Strathmore University, 2017Description: xi,71p. illSubject(s): LOC classification:
  • HF5415.32.O34 2017
Online resources: Summary: Businesses in the telecom industry need to build long-term relationships with customers to improve customer retention and financial benefit. The problem stated in this study is that due to intense competition, customer mobility across networks is expected with various determinants such as quality of service, price, switching costs and customer loyalty. So far, there is limited mobility according to data with the regulator- Communications Authority of Kenya, hence it is important to identify the determinants that influence switching behavior in the Kenyan market and propose a model for predicting future customer switching behavior. The target population of the study was users of mobile phones services in Kenya. The study sample comprised of 152 respondents drawn from a population of four operators, selected using purposive sampling. The study employed a cross-sectional survey design to explore what influences customer switching behavior analysis of Kenya telecom industry. The study used primary data that was collected using a semi structured questionnaire. Statistical Package for Social Sciences was used to perform the analysis as it aided in organizing and summarizing the data by the use of descriptive statistics, inferential statistics and Pearson’s correlation coefficient. The data collected was presented by use of percentages, frequency distributions, tables, and the researcher’s categorized variables. The study findings revealed that, amongst the customer determinants for switching intention, switching cost and customer loyalty recorded influential determinate with the coefficient was significant in Nairobi and Nakuru. It was also evident from the study results that all the considered determinants (predictors); customer loyalty, price, switching cost and service quality had significant effect for switching intention. The study finally recommended that, the telecom service providers to increase significantly the switching cost in order to retain their customers and more loyalty programs to be implemented by the service providers for increased customer base.
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Thesis Thesis Special Collection Special Collection HF5415.32.O34 2017 Not for loan 77072
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Businesses in the telecom industry need to build long-term relationships with customers to improve customer retention and financial benefit. The problem stated in this study is that due to intense competition, customer mobility across networks is expected with various determinants such as quality of service, price, switching costs and customer loyalty. So far, there is limited mobility according to data with the regulator- Communications Authority of Kenya, hence it is important to identify the determinants that influence switching behavior in the Kenyan market and propose a model for predicting future customer switching behavior. The target population of the study was users of mobile phones services in Kenya. The study sample comprised of 152 respondents drawn from a population of four operators, selected using purposive sampling. The study employed a cross-sectional survey design to explore what influences customer switching behavior analysis of Kenya telecom industry. The study used primary data that was collected using a semi structured questionnaire. Statistical Package for Social Sciences was used to perform the analysis as it aided in organizing and summarizing the data by the use of descriptive statistics, inferential statistics and Pearson’s correlation coefficient. The data collected was presented by use of percentages, frequency distributions, tables, and the researcher’s categorized variables. The study findings revealed that, amongst the customer determinants for switching intention, switching cost and customer loyalty recorded influential determinate with the coefficient was significant in Nairobi and Nakuru. It was also evident from the study results that all the considered determinants (predictors); customer loyalty, price, switching cost and service quality had significant effect for switching intention. The study finally recommended that, the telecom service providers to increase significantly the switching cost in order to retain their customers and more loyalty programs to be implemented by the service providers for increased customer base.

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