Impact of competition among telecommunication operators on customer satisfaction: the case of the Kenyan market

Abstract

This research study seeks to look at the effect of competition among telecommunication operators, how this will enhance customer satisfaction which is primarily important in the corporate world today. With this in mind, the study proved that evolving technology played a key role in satisfying customer's numerous needs and wants. With the regulatory body as a key stakeholder in the telecoms industry today, governance forms a major control unit to uphold healthy competition and level playing field for all among others. Porter's five forces were used to develop a framework on analyzing the telecommunications' industry and the impact on customer's satisfaction. In the case of the Kenyan market, the research study looked at impact of competition among telecommunication operators on customer satisfaction with variables such as tariffs, product differentiation, product reliability, network footprint, choice of technology examined so as to ascertain the extent of customers satisfaction derived.

The study largely focused on the various products offered to customers to leverage on both profits to operators and enhancing customer preference and behavior. Customer satisfaction is derived from adequate network footprint, value-added-services, network availability, partnership, affordable tariffs and availability of wide variety of products. This project research report contains satisfaction survey which entails quantitative research design. The population of the study is a cross-section of customers from the four telecoms operators in Kenya. Cross-sectional data was collected accordingly and respondents selected through stratified random sampling procedure to represent the population.

The study found out that competition brought evolution of products and services to the advantage of customers and end users, common platform for engagement between Operators and Customers thereby enhancing satisfaction, extended network coverage experienced in most major towns and cities in Kenya, improved network quality leading to Customer growth and retention. The study recommended continuous market research to ascertain customers' needs and wants, improved network penetration, robust collaboration amongst Operators and adequate media attention to new products and services in Kenya. Suggestions for further research included research design out of Kenya and Africa wide, data collection methods should be carried out based on group discussions amongst each target group, global scenarios needs to be factored with an indepth analysis, global telecom players need to be consulted and involved.