ICTACT Journal on Management Studies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Determinants of Customer Retention in Mobile Industry - Evidence From Tigo and Vodacom Customers in Ilala District, Dar Es Salaam-Tanzania


Affiliations
1 Department of Accounting and Finance, Ruaha Catholic University, Tanzania, United Republic of
2 Dar Es Salaam Centre, The Saint Augustine University of Tanzania, Tanzania, United Republic of
     

   Subscribe/Renew Journal


The study investigates the determinants of customer retention by mobile telecommunication industries in Ilala District. The study specifically examined the influence of convenience of service, pricing/tariff, network coverage, and service quality on retention of Tigo and Vodacom customers. The study employed mixed research, which encompassed descriptive cross study. Data were collected through questionnaires and interviews and were analyzed through descriptive and inferential statistics. 100 respondents who were Tigo and Vodacom clients participated in the research. Findings depict that respondents were satisfied with the available customer care centres, recharge points, existing recharge vouchers, browsing fees, and price schedules, but were dissatisfied with call rates. Moreover, the study found that signal and drop quality are good and respondents were satisfied with network availability and ultimately confirmed that their expectations were met by service providers. Lastly, the study found that respondents were satisfied with customer complaint reporting mechanisms established by service providers, but had concerns over delays in determining complaints and resolutions reached thereafter.

Keywords

Human Resources, Information System, Effectiveness
Subscription Login to verify subscription
User
Notifications
Font Size

  • A. Aldlaigan and A. Buttle, “SYSTRA-SQ A New Measure of Mobile Service Quality”, International Journal of Service Industry Management, Vol. 13, No. 4, pp. 362-381, 2002.

  • A.D. Athanassopoulos, “Customer Satisfaction Cues to Support Market Segmentation and Explain Switching Behavior”, Journal of Business Research, Vol. 47, No. 3, pp. 191-207, 2000.

  • M.J. Bitner, B.H. Booms and M.S. Tetreault, “The Service Encounter: Diagnosing Favorable and Unfavorable Incidents”, Journal of Marketing, Vol. 54, pp. 71-84, 1990.

  • R. Boohene and G.K.Q. Agyapong, “Analysis of the Antecedents of Customer Loyalty of Telecommunication Industry in Ghana: The Case of Vodafone (Ghana)”, International Business Research, Vol. 4, No. 1, pp. 229-240, 2011.

  • A. Coner. and M.O. Gungor, “Factors Affecting Customer Loyalty in the Competitive Turkish Metropolitan Retail Markets”, Journal of American Academy of Business, Vol. 2, No. 1, pp. 189-195, 2002.

  • D.H. Choi, C.M. Kim, S. Kim and S.H. Kim, “Customer Loyalty and Disloyalty in Internet Retail Stores: Its Antecedents and its Effect on Customer Price Sensitivity”, International Journal of Management, Vol. 23, No. 4, pp. 925-943, 2006.

  • G.A. Churchill and D. Lacobucci, “Marketing Research: Methodology Foundations”, Thomson Learning, 2002.

  • Y.F. Chuang, “Pull-and-Suck Effects in Taiwan Mobile Phone Subscribers Switching Intentions”, Telecommunications Policy, Vol. 35, No. 2, pp. 128-140, 2011.

  • H. Elnan and O. Andersen, “Measuring and Monitoring Service Quality in the Bus Industry”, Proceedings of Asian Academy Conference on Management, pp. 385-392, 1999.

  • J. Ganesh, M. Arnold and K.E. Reynolds, “Understanding the Customer Base of Service Providers: An Examination of the Differences between Switchers and Stayers”, Journal of Marketing, Vol. 64, pp. 65-87, 2000.

  • A. Haquea, S. Rahmanb and M. Rahmanc, “Factors Determinants the Choice of Mobile Service Providers: Structural Equation Modeling Approach on Bangladeshi Consumers”, Business and Economics Research Journal, Vol. 1, No. 3, pp. 17-34, 2010.

  • G.A. Hamel, “Competing for the Future”, Harvard Business Press, 1996.

  • D. Henard and D. Szymanski, “Why Some New Products are more Successful than Others”, Journal of Marketing Research, Vol. 38, No. 3, pp. 362-375, 2001.

  • T. Hennig Thurau and P. Klee, “The Impact of Customer Satisfaction and Relationship Quality on Customer Retention: A Critical Reassessment and Model Development”, Psychology and Marketing, Vol. 14, No. 8, pp. 737-764, 1997.

  • B. Henry and M. Quansah, “Mobile Telecommunication Networks Choice among Ghanaians”, Management Science Letters, Vol. 3, No. 7, pp. 1839-1850, 2013.

  • M.M. Hossain and N.J. Suchy, “Influence of Customer Satisfaction on loyalty: A Study on Mobile Telecommunication Industry”, Journal of Social Sciences, Vol. 9, No. 2, pp. 73-80, 2013.

  • ITU World Communication, “The World in 2013, ICT Facts and Figures”, Available at http://www.itu.int/ITU, Accessed at 2018

  • S. Jahanzeb, F. Tasneem and B. Khan, “An Empirical Analysis of Customer Loyalty in Pakistan’s Telecommunication Industry”, Database Marketing and Customer Strategy Management, Vol. 18, No. 1, pp. 5-15, 2011.

  • W.C. Johnson and A. Sirikit, “Service Quality in the Thai Telecommunication Industry: A Tool for Achieving a sustainable Competitive Advantage”, Management Decision Journal, Vol. 40, No. 7, pp. 693-701, 2002.

  • G.D. Kang, “The Hierarchical Structure of Service Quality: Integration of Technical and Functional Quality”, Managing Service Quality, Vol. 16, No. 1, pp. 37-50, 2006.

  • T. Kollmann, “The Price/Acceptance Function: Perspectives of a Pricing Policy in European Telecommunication Markets”, European Journal of Innovation Management, Vol. 3, No. 1, pp. 7-14, 2000.

  • P. Gerrard and J. Cunningham, “The Diffusion of Internet Banking among Singapore Consumers”, International Journal of Bank Marketing, Vol. 21, No. 1, pp. 16-28, 2003.

  • F. Lai, M. Griffin and B.J. Babin, “How Quality, Value, Image, and Satisfaction Create Loyalty at a Chinese Telecom”, Journal of Business Research, Vol. 62, pp. 980-986, 2009.

  • H. Lim, R. Widdows and J. Park, “M-Loyalty: Winning Strategies for Mobile Carriers”, Journal of Consumer Marketing, Vol. 23, No. 4, pp. 208-218, 2006.

  • M. Lowenstein, “The Customer Advocate and the Customer Saboteur: Linking Social Word-of-Mouth”, ASQ Quality Press, 2011.

  • G. Madden, G. Coble-Neal and B. Dalzell, “A Dynamic Model of Mobile Telecommunications Subscription Incorporating A Network Effect”, Telecommunications Policy, Vol. 28, No. 2, pp. 133-144, 2004.

  • M.A. Mahmoud and R.E. Hinson, “Market Orientation, Innovation and Corporate Social Responsibility Practices in Ghana's Telecommunication Sector”, Social Responsibility Journal, Vol. 8, No. 3, pp. 327-346, 2012.

  • A. Malhotra and C. Kubowicz Malhotra, “Exploring Switching Behavior of US Mobile Service Customers”, Journal of Services Marketing, Vol. 7, No. 1, pp. 13-24, 2013.

  • D. Martin Consuegra, A. Molina and A. Esteban, “An Integrated Model of Price, Satisfaction and Loyalty: An Empirical Analysis in the Service Sector”, Journal of Product and Brand Management, Vol. 16, No. 7, pp. 459-468, 2007.

  • Magigi, “Research Proposal Development and Report Writing: A Pathway for Success in Higher Learning Institutions”, Safi Publishers, 2015.

  • S.G. Nimako, “Linking Quality, Satisfaction and Behaviour Intentions in Ghana’s Mobile Telecommunication Industry”, European Journal of Business and Management, Vol. 4, No. 7, pp. 1-17, 2012.

  • O. Oyeniyi and A.A. Joachim, “Customer Service in the Retention of Mobile Phone users in Nigeria”, African Journal of Business Management, Vol. 2, No. 2, pp. 26-34, 2008.

  • A. Parusaraman, V. Zeithamal and L. Berry, “A Conceptual Model of Service Quality and its Implication on Future Research”, Journal of Marketing, Vol. 48, pp. 41-50, 1985.

  • C. Ranaweera and J. Prabhu, “The Influence of Satisfaction, Trust and Switching Barriers on Customer Retention in A Continuous Purchasing Setting”, International Journal of Service Industry Management, Vol. 14, No. 4, pp. 374-395, 2003.

  • K. Ravichandran, B.T. Mani, S.A. Kumar and S. Prabhakaran, “Influence of Service Quality on Customer Satisfaction Application of Servqual Model”, International Journal of Business and Management, Vol. 5, No. 4, pp. 1-13, 2010.

  • D. Seo, C. Ranganathan and Y. Babad, “Two-Level Model of Customer Retention in the US Mobile Telecommunications Service Market”, Telecommunications Policy, Vol. 32, No. 3, pp. 182-196, 2008.

  • D.H. Shin and W.Y. Kim, “Forecasting Customer Switching Intention in Mobile Service: An Exploratory Study of Predictive Factors in Mobile Number Portability”, Technological Forecasting and Social Change, Vol. 75, No. 6, pp. 854-874, 2008.

  • D.S. Tull and D.I. Hawkins, “Marketing Research: Measurement and Method”, Macmillian Press, 1990.

  • O. Turel and A. Serenko, “Satisfaction with Mobile Services in Canada: An Empirical Investigation”, Telecommunications Policy, Vol. 30, pp. 314-331, 2006.

  • S. Varki and M. Colgate, “The Role of Price Perceptions in an Integrated Model of Behavioral Intentions”, Journal of Services Research, Vol. 3, pp. 232-240, 2001.

  • Y. Wang and H.P. Lo, “Service Quality, Customer Satisfaction and Behaviour Intentions: Evidence from China’s Telecommunication Industry”, Information Journal, Vol. 4, No. 6, pp. 50-60, 2002.

  • R.W.E. Wal, P.A. Vander and C. Bond, “Service Quality in a Cellular Telecommunications Company: A South African Experience”, Managing Services Quality, Vol. 12, No. 5, pp. 323-335, 2002.

  • R.B. Woodruff and S.F. Gardial, “Know Your Customer”, Cambridge Press, 1997.

  • L. Xia, K. Monroe and J. Cox, “The Price is Unfair! A Conceptual Framework of Price Fairness Perceptions”, Journal of Marketing, Vol. 68, No. 4, pp. 1-15, 2004.


Abstract Views: 180

PDF Views: 0




  • Determinants of Customer Retention in Mobile Industry - Evidence From Tigo and Vodacom Customers in Ilala District, Dar Es Salaam-Tanzania

Abstract Views: 180  |  PDF Views: 0

Authors

David Mosoma
Department of Accounting and Finance, Ruaha Catholic University, Tanzania, United Republic of
Damas Mfundiri
Dar Es Salaam Centre, The Saint Augustine University of Tanzania, Tanzania, United Republic of

Abstract


The study investigates the determinants of customer retention by mobile telecommunication industries in Ilala District. The study specifically examined the influence of convenience of service, pricing/tariff, network coverage, and service quality on retention of Tigo and Vodacom customers. The study employed mixed research, which encompassed descriptive cross study. Data were collected through questionnaires and interviews and were analyzed through descriptive and inferential statistics. 100 respondents who were Tigo and Vodacom clients participated in the research. Findings depict that respondents were satisfied with the available customer care centres, recharge points, existing recharge vouchers, browsing fees, and price schedules, but were dissatisfied with call rates. Moreover, the study found that signal and drop quality are good and respondents were satisfied with network availability and ultimately confirmed that their expectations were met by service providers. Lastly, the study found that respondents were satisfied with customer complaint reporting mechanisms established by service providers, but had concerns over delays in determining complaints and resolutions reached thereafter.

Keywords


Human Resources, Information System, Effectiveness

References