Relationship Marketing and Customer Loyalty in Mobile Telecommunication Industry in Nairobi, Kenya

Abstract

Relationship marketing is a strategy designed to promote customer loyalty, interaction and long-term engagement with customers by providing them with information directly suited to their needs and interests and by promoting open communication. The broad objective of the study was to analyze the relationship between customer relationship marketing and customer loyalty in the mobile telecommunication industry in Kenya. The study employed a descriptive survey as its research design because very large samples are feasible, making the results statistically significant even when analyzing multiple variables. The population of interest comprised individuals who obtain services from the four mobile telecommunication companies in Kenya. A sample size of 384 respondents was utilized. The study used stratified sampling technique. With a target sample of 384 respondents, a sample distribution per each company was based on the percentage market share of each company. This study collected primary data from customers of the organizations selected using a questionnaire to collect the data. Descriptive statistics technique was used to analyze the quantitative data. The study found that, the quality of a service is subjectively perceived by customers during the interactions with a firm and has critical impact on customers’ evaluation of service quality. The study also found that effective communication of pricing policies as well as flexible pricing for various services offered play a great role in customer loyalty. The study further concluded that a positive brand image makes it easier for a firm to convey its brand value to consumers and also generates favorable customer loyalty among people. This study recommends that businesses operating in an intensely price based competitive environment, dependent on high economies of scale and with low levels of staff-customer interaction are bound to suffer shocks in their market positions and profitability unless huge investments are made in more relational strategies like building trust, commitment, communication and satisfaction .