Factors that determine customer loyalty: the case of mobile telecommunications operators in Nairobi, Kenya.

Abstract

The mobile telephone platform has been heralded as the next frontier for modem business creating entirely new paradigms for interactive marketing initiatives. In a growth industry characterized by competition and alternative telecoms operators, customers have the freedom to choose from among the available alternatives. The research had one objective: It sought to identify the factors that determine loyalty to a mobile telecommunications operator in Kenya and the relative importance of these factors. In undertaking the study individual mobile phone users within Nairobi were targeted. Primary data was collected using a semi-structured and Likert scale questionnaire. The research assistants within the selected areas administered the questionnaire directly to the respondents. Out of the targeted 200 respondents, the researcher managed to obtain 184 responses, representing a response rate of 92%. This sample was obtained from among regular mobile phone users in South C estate. A recruitment guide was used to determine the loyal customers. Any subscriber who has been with the same mobile operator for one year was taken to be a loyal customer. Data collected was analyzed using tables of frequencies and percentages. Ranking of the factors considered for loyalty was also done. The results showed that 68.2% of the respondents found costs of the services offered to be the most important factor while 64.3% stated that countrywide network coverage was the most important factor. Other factors were rated as most important in the following order: Voice quality, friends, family and colleagues, customer service and time taken to go through the line. The research established that the cost changed for the services is a key factor. The billing for this service constitutes the price for the same and thus is equated with the same value to be obtained from the services. Price and value are the comerstones of every consumer purchase transaction. In economic terms, price equates to the level of consumer sacrifice. The amount of money consumers are willing to pay for a particular service is directly related to their perception of their services value. (Kotler and Armstrong 2001). The findings concur with Kotler and Armstrong's argument that price is the sum of all values that consumers exchange for the benefits of having or using the product or service.