Customer loyalty to brands in the mobile industry
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Customer loyalty to brands in the mobile industry. A case of Kenya telecommunication.
Customer loyalty to brands belonging to different companies around the world is fundamental in the growth of the different companies. The mobile telecommunication industry has been identified as one that is growing at a very fast pace globally. Many mobile telecommunication companies have set up base in Africa, and Kenya in particular. With a growing number of these companies in the country, there is a great trend for competition for the Kenyan market. Network service delivery has grown tremendously from the continued demand for services. There is a considerable need for the service providers to develop strategies that will not only attract more clients, but will also retain the clients for as long as the service providers exist. Among the strategies addresses, strategies to address brand loyalty for the customers have been taken into consideration. This research study therefore seeks to identify the factors that influence customer loyalty to brands in the mobile telecommunication industry in Kenya. The study was conducted by first understanding the Kenyan telecommunications industry, a literature review that involved issues related to the telecom industry in the world. The research furthermore provided on literature on the strategies used by different telecommunication companies around the world and Africa. The researcher did interviews for four managers and four customers of four network providers in Kenya. Finally, the researcher identified the factors that affected brand loyalty from the interview results. The research questions that were addressed in the study included; What factors influence brand loyalty among customers in the Kenyan mobile telecommunications industry and to what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry? The result findings that were determined from the results included; network coverage by the service providers, switching costs, customer care services, calling and switching rates. The study findings would be important as they would help the service providers identify and improve areas of concern to the customers. However, the research shed light on a number of issues that needed further study. These included studies on strategies the marketing, customer care and collaboration of the network providers to enhance customer loyalty and ultimately the market share.
1.1 Introduction
Customer loyalty has been examined in numerous contexts and its significance is well understood by the marketers (Sathish et al 2011; Passikoff 2006; Waema, Adeya & Ndung’u 2010). The principal objective of this dissertation is to examine the specific factors that significantly influence the customer loyalty to network providers in Kenya. According to Sewe (2010) and Waema, Adeya & Ndung’u (2010), customer loyalty results in reduced marketing costs. Companies, therefore try to invest a lot of time and funds in attracting new customers, a process which often takes long time and is linked to several uncertainty risks (Ewing, 2007). A larger percentage of loyal clients are viewed as a sign of a greater market share and this means higher profits and to the mobile companies (Kihara and Ngugi, 2014; Terrill and Middlebrooks, 2000; Kiberen, Musiega and Juma, 2013); Waema, Adeya and Ndung’u, 2010). In Kihara and Ngugi (2014)’s view, loyal customers continue to purchase or acquire services or products from the same providers and are often willing to pay more for the first class services and quality products. This leads to increased sales revenue and profitability. Considering the recent studies by Kihara and Ngugi (2014) and Kiberen, Musiega and Juma (2013), many marketers focus on the marketing management aspects to raise customer loyalty and to achieve the desired competitive advantage over the other providers. The studies also show that customer loyalty and its significance has been identified by many authors such as Ewing (2007) and Hazlettb and Ferrell (2006) as a very important factor and a key determinant in the market. This also applies to the mobile telecommunication sector in Kenya. In Kenya, the customer loyalty is viewed as vital and an important determinant in the market (Owino, 2012; Angasa and Kinoti, 2013; Martins, Hor-Meyll and Ferreira, 2013).
In the studies conducted by Kihara and Ngugi (2014) and Passikoff (2006), the mobile telecommunication is becoming more and more saturated and the growth rate does not seem to increase. In Kihara and Ngugi (2014)’s view, the saturation has prompted the network providers to enhance their service quality and to adjust their marketing strategies in order to attract new customers and attain maximum customer loyalty. Table 1.1 shows the key players in the market and the customer market share. Safaricom the leading telecoms provider in Kenya holds ~2/3 of the customers in the market and that is significant in a four player market.
Figure 1.1 Mobile Subscribers per Operator
Source: Quarterly Sector Statistics Report 2014/15 – Communications Authority of Kenya
In order to address the objectives of the study, the study will seek to present a critical evaluation and a comprehensive literature review on brand loyalty and to analyze critically, the variables that affect brand loyalty to network providers through secondary research. The study will also examine the factors that influence the loyalty of customers to mobile network operators in the mobile telecommunications industry in Kenya through primary research in order to make essential recommendations to managers based on the study’s findings (Qi, Zhao and Zong, 2013).
1.2 Background to the study
With the intensifying competition in the market, the client’s loyalty to brands has become a discordant factor in the long term business performance (Gremler, 2005). Previous studies including Muturi (2004) and Owino (2012), have demonstrated that attracting new consumers demands that a company should invest so much money and time. A large number of loyal clients is an indication of a large market share and improved productivity. Based on the information presented by Communication Commission of Kenya (2012) and Sewe (2010), in the Mobile Industry, this has resulted in the increasing sales returns. From the findings of the studies conducted by Owino (2012) and Muturi (2004), the mobile administrators and managers are mainly focused on the marketing management aspects in order to enhance the customer loyalty and gain competitive advantage.
According to Parasuraman, and Grewal (2000), the significance of customer loyalty has been underscored by several researchers in different contexts which include the mobile telecommunication sector and by extension the Kenyan mobile telecommunication industry (Mugenda and Mugenda, 2003; Sewe, 2010). Today, as the mobile telecommunication market becomes more and more saturated, the situation drives the mobile companies to consider enhancing their service quality and to adjust their marketing core techniques from expansion to retaining the existing clients by optimizing and enhancing consumers’ loyalty (Communication Commission of Kenya, 2012). In Kenya, studies such as Kumar, Sharma, Shah and Rajan (2013) and Gruber, Koutroumpis, Mayer and Nocke (2011) have revealed the significance of loyal consumers in business and presented the consumer loyalty as one of the most domineering elements and factors that drive the performance and profits of the mobile operators in the telecom sector (Karanja and Gakure, 2012; Communication Commission of Kenya, 2012). Loyalty programs have been used to try and enhance customer loyalty and to stabilize the market such as the level of network coverage and low calling rates when comparing to other networks (Gruber, Koutroumpis, Mayer and Nocke, 2011; Ewing, 2007). Customer loyalty is very crucial in the mobile telecom sector and this underscores the need to conduct a study to examine the factors that influence customer loyalty to brands in the mobile telecommunications in Africa and in the context of the Kenyan mobile telecommunications industry (Ewing, 2007).
1.3 The research problem
Companies in the telecom industry are increasingly becoming client-centric and embrace client driven initiatives that are intended to attract and retain clients and to establish long-lasting profitable business relationships Muturi (2004) and Parasuraman, and Grewal (2000).
The various factors that influence the customer loyalty have been investigated by various researchers including Parasuraman and Grewal (2000), Muturi (2004), Johnson et al (2001), and Zeithaml (2008). From the information presented by the authors, especially Muturi (2004) and Parasuraman and Grewal (2000), there are numerous factors that affect the customer loyalty in the mobile telecommunication sector. The Kenyan success in the mobile companies and the promising potential for growth in the telecommunication industry continues to attract new players in the Kenyan market. Over the recent years, several new players have found their way into the market to try and exploit the existing investment and business opportunities. Despite the efforts and strategies employed by the new players, Zeithaml (2008) explains that many customers have remained loyal to the leading operators e.g. Safaricom still holds ~2/3 of the market share in Kenya. The ability to persuade and retain the clients remain a crucial element for the performance and success of the mobile operators (Zeithaml, 2008). For example, the success of Safaricom, one of the leading mobile operators, is largely attributed to the loyalty of its clients (Shin and Kim, 2008). The loyalty of the clients seems to work in favour of some operators, while making it hard for new players to persuade and retain the clients (Shin and Kim, 2008). This has made it very challenging for the mobile operators in Kenya to gain the market share which is vital to generate revenue and enhance competitive advantage (Safaricom, Kenya Ltd, 2012; Sewe, 2010).
1.4 Rationale (reason for the study)
The growth and expansion of the mobile telecommunications industry is said to have activated numerous opportunities and a cascade of developments in Kenya and Africa in general (Parasuraman, and Grewal, 2000; World Bank, 2012). The developments have generally led to a uprising in communication and innovation. Considering the World Bank (2012) report, the expansion of the Kenyan mobile industry has been on an upward drift since 2000 and contributes more than 8 percent to the country’s GDP (Gross Domestic Product) (Safaricom, Kenya Ltd, 2012). Additionally, Yuksel and Yuksel (2001) explains the network service providers and mobile operators are making every effort to survive and gain competitive advantage over the competitors. Safaricom Ltd seems to dominate a market share of approximately 67 percent (Parasuraman, and Grewal, 2000). Recent studies have also shown that the introduction of proper government policies have helped to creates conducive and enabling environment for the advancements in the ICT industry (Yuksel and Yuksel, 2001). The underlying principle behind the study is to try and explore the concept of customer loyalty as a key determinant factor for success in the industry and its role in winning the confidence of more clients to act in favor of the mobile operators and organizations (Waema, Adeya and Ndung’u, 2010). Zeithaml (2008) also argued that when a company retains a large percentage of its clients, it is assured of good performance and high profitability. This is true to the spirit of Waema, Adeya and Ndung’u (2010) and Parasuraman, and Grewal (2000), who also pointed out that customer loyalty in competitive business environment is a curial factor which translate into increased earnings and productivity. The rationale behind the investigation is to emphasize on the significance of building customer loyalty as a function of marketing and organizational performance.
1.5 Aim and objectives of the study
- To analyze critically the factors that influence customer loyalty to network providers in Kenya.
The following objectives will be addressed
- To conduct a critical evaluation of a comprehensive literature review on brand loyalty.
- To analyze critically variables that affect brand loyalty to network providers through secondary research.
- To determine the factors that influences the loyalty of customers to mobile network operators in mobile telecommunications industry in Kenya through primary research.
- To make recommendations to managers based on the study’s findings
1.6 Research questions
- What factors influence brand loyalty among customers in the Kenyan mobile telecommunications industry?
- To what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry?
1.7 The relevance of the study
This study will help the top management in the Kenyan telecommunication sectors to devise strategies and customer care procedures and principles that under the factors that affect the service quality delivery in the telecommunication industry. The management will achieve this through by taking a deep scan of the research findings and disseminating them during the management meetings on company way forward. To the customers and junior staff, their understanding will be enhanced and they will make more informed decisions based on the quality of service delivered by the different companies (Ganesh, Arnold and Reynolds, 2000; Ewing, 2007).
This study is immensely relevant in different ways and especially to the mobile company operators, marketing practitioners and policy makers within the telecom sector. To the Kenyan government and administrative units, the findings and results of the study will provide and offer more reliable perspectives and measures for defining and evaluating variables that affect consumer loyalty and towards the products and services delivered in the telecommunication industry (Zeithaml, 2008). This study is also relevant, particularly at this time when Kenya has emerged as a key regional business hub and a preferred destination for organizations within the African Market (Hazlettb and Ferrell, 2006; Ewing, 2007). This will be done through the formation of easy to follow mechanisms for starting businesses in the country.
According to Waema ,Adeya and Ndung’u (2010), the Kenyan economy has been one of the most diversified in the entire continent of Africa. The country’s economy is founded on traditional sectors including tourism and agriculture (Ewing, 2007). However, it needs further diversification in order to better insulate its economy, from economic crisis. For instance, the 2008 unrest defectively affected its sectors, thereby slowing its economic growth and the expansion of the telecommunication sector. Just like agriculture and tourism, which have been the traditional pillars of the country’s economy, there is the need to strengthen the other sectors including the Mobile Telecommunications Industry, that have significant potential for growth and expansion. This underscores the significance and relevance of this study, given that the study will contribute to the enhancement of efforts and strategies that will be applied to increase effectiveness in the market (Zeithaml, 2008). This study, therefore makes a crucial and relevant contribution toward the efforts and notable steps that country is taking to build on its exciting capacities to drive the economic diversification within the regional economy (Karanja and Gakure, 2012). This study will particularly add knowledge to the present literature on customer loyalty and brand management, which is very valuable for new entrants, in developing marketing strategies for the market and can be imitated across to the other market segments in other African countries (Zeithaml, 2008).
1.8 Research hypotheses
Brand image of the network service providers affect the customer loyalty.
The quality of customer care service provided affects the customer loyalty.
1.9 Structure of the dissertation
Table 1.1dissertation structure
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2.1. Introduction
Recent studies conducted by Sharma, Shah and Rajan (2013) and Gruber, Koutroumpis, Mayer and Nocke (2011), have shown that customer loyalty plays a crucial role in the business performance, in this globalization era. The studies have also examined the concept of consumer behavior toward the mobile operators in general and have revealed that customer loyalty is a critical element in enhancing commitment and in helping firms to acquire new customers. Sharma, Shah and Rajan (2013) and Sharma, Shah and Rajan (2013) also demonstrated that customer loyalty generated positive customer experience which led to repeat purchase and increased market share for the companies in the telecommunication sector . The purpose of this chapter is present a comprehensive and critical analysis of the factors that influence customer loyalty to network providers/mobile operator companies in Kenya. The views, suggestions and the varying perspectives of the authors will be presented.
2.2. Theoretical framework
The theoretical framework of this research was based on the assessing the factors that influence customer loyalty to the network providers in Kenya (Angasa and Kinoti, 2013). The idea is to evaluate critical factors such as accessible customer care, customer care training, and the quickness of the access to services and products which are key independent variables in the industry (Gerpott, Rams and Schindler, 2001). The variables represent key dimensions which affect the clients’ feelings and attitudes toward the mobile operator services and products (Sharma, Shah and Rajan, 2013).
According to Gerpott, Rams and Schindler (2001), the companies such as Safaricom and Airtel train their staff in order to enable them to offer effective and quality service. The literature presented by Manica and Vescovi (2009), examined how the independent variables affected the quality of services provided and the ability of the companies to attract and retain clients. Considering Gerpott, Rams and Schindler (2001)’s descriptions customers purchase services and products for nearly the same reasons. They desire to receive a products and services that add value to their personal activities or their businesses processes (Ganesh, Arnold and Reynolds, 2000; Angasa and Kinoti, 2013). The effect of the logic is that mobile companies should consider making their services more customer oriented and focus more on benefiting the clients. Manica and Vescovi (2009) also observed that developing effective customer care policies, and engaging in customer-focused activities support the business efforts to achieve its objectives and to gain competitive advantage .
A number of theoretical concepts are helpful in understanding the current study as they are mentioned throughout . The concepts form a crucial foundation of the theoretical frameworks that were created for the paper. The first concept is the switching intention, which is described by Sharma and Patterson (2000) as the client’s psychological tendency to stop purchasing or using a particular brand and to begin buying another brand. In Sharma and Patterson (2000)’s switching behavior/ intentions are often influenced by the client’s attitude after using the particular product or service. This study uses the term brand switching to describe the clients who stop purchasing a given brand and begin to use another. The second concept that is described in this paper is the customer/brand loyalty, which is described by Kenhove, Wulf, and Steenhaut, (2003) and Shahsavari and Faryabi (2013) as the extent to which the client demonstrates repeat purchase behavior from a particular mobile service operator, hold attitudinal disposition toward the provider and continues to use the producer’s services and products. The concept has also been identified by Shahsavari and Faryabi (2013) as the behavioral outcome of the client’s preference for a given brand or collection of brands for a given period of time. In Shahsavari and Faryabi (2013)’s view, behavioral loyalty shows that repeat purchasing of a given brand over a given period by a client demonstrates their loyalty while the attitudinal viewpoint assumes that consistent purchase of a particular brand is essential but not sufficient condition to ‘true’ brand loyalty (Shin and Kim, 2008; Kenhove, Wulf, and Steenhaut, 2003; Sharma and Patterson, 2000). The third concept that is described in this study is the antecedents of customer loyalty which are the factors/variables that affect customer loyalty. They include customer satisfaction, switching of cost and the corporate image of the service provider.
2.3. The meaning of customer loyalty in the context of mobile telecommunication industry
Many descriptions have been put forth by different authors to help explain the meaning and significance of customer loyalty. Looking at the definition presented by Sirdeshmukh, Jagdip and Barry (2002), customer loyalty is about attracting and retaining customers. In Sirdeshmukh, Jagdip and Barry (2002)’s view, organizations need to focus more on maintaining the current clients much more than persuading new ones. The increasing competition in the international market of distribution and production of products and services together with the globalization challenges make it challenging for companies to acquire new clients, which implies that they need to make every effort to ensure that the current customers remain loyal and committed to the company. In brief, Sirdeshmukh, Jagdip and Barry (2002) emphasizes that strengthening the customer loyalty to the company is very crucial function for the organizational departments based on the philosophy and belief that the duty to attract and retain clients remain the responsibility of the staff.
The Sirdeshmukh, Jagdip and Barry (2002)’s descriptions also represent a unique perspective of customer loyalty in the context of the telecommunication industry and the factors that affect it. According to Sirdeshmukh, Jagdip and Barry (2002), customer loyalty should be viewed as the tendency of the client to do repeat purchase from a particular service provider. Based on Aydin and Ozer (2004)’s descriptions, a loyal customer should be one who presents a positive attitude and behavior toward a given service provider. The explanation is much similar to an earlier description presented by Anderson and Weitz (1992) and Boora and Singh (2011), who pointed out that customer loyalty comprise three key dimensions; the attitudinal, behavioral and cognitive dimensions (Yonggui, Hing-Po and Yongheng, 2004). In Sirdeshmukh, Jagdip and Barry (2002)’s view, customer loyalty has been largely perceived to occur when a client repeatedly buys a product or receives a service from a given service provider over time. At the same time, Gee and Nicholson (2008), emphasized that a client qualifies to be termed as loyal, only if he or she continues to hold a positive view and attitude toward the company product and service brand. Despite the clear descriptions presented by Aydin and Ozer (2004), Gruber and Outroumpis (2010) and Yonggui, Hing-Po and Yongheng (2004), some authors such as International Telecommunications Union (2012) and The Economist (2009). pointed out that the concept is not well understood by marketers and therefore cannot be effectively defined. In their view there is no agreement regarding the most suitable statement that adequately defines customer loyalty.
Three groups of investigations reflect on key approaches to describing and determining customer loyalty and the challenges of these approaches. Even though the studies focus on the approaches for determining loyalty, they reveal crucial regarding the meaning and significance of customer loyalty. The first group of studies comprise International Telecommunications Union (2012), Gruber and outroumpis (2010) and Aydin and Ozer (2004), in the authors mainly view loyalty as the client’s repeat purchase attribute. This approach treats the customer loyalty as either repeat purchase intent or behavior. This view has, however been sharply disapproved by Manicaand Vescovi (2009), who argues that it leads to spurious loyalty. The second group of studies by Zhen and Rossotto (2009),Anderson and Weitz (1992) and Brady, Cronin and Hult (2001), support a composite approach which emphasizes that customer remain loyal due to the switching barriers or lack of better options. According to the authors, customers may remain loyal because of the existing barriers which prevent them switching to another service provider. Earlier studies such as Gee and Nicholson (2008) and Anderson and Weitz (1992), have also revealed that barriers force clients to stick to the current providers for fear of the potential challenges and inconveniences that might occur if one has to switch from current provider to the next. The third group of studies comprise of Brady, Cronin and Hult (2001), Hanson and Stuart (2001) and Gruber and outroumpis (2010) and the authors believe that clients remain loyal only if they achieve their desired satisfaction levels. According to the authors, there is a positive connection between the client satisfaction and loyalty. Considering the descriptions presented by Brady, Cronin and Hult (2001), Cronin and Hult (2001), Hanson and Stuart (2001) and Yonggui, Hing-Po and Yongheng (2004), customer loyalty in the telecommunication industry, could be viewed as the broad attachment or deep commitment to a given service or product brand and the company. It can be classified into two broad categories: attitude and behavior. According to Manish (2001), as an attitude, Manish (2001) pointed out that customer loyalty focused on brand recommendations, resistance to other products and the readiness to incur thee premium price. As a behavior, Manicaand Vescovi (2009)’s descriptions affirm that customer loyalty can be measured as a choice probability for a particular brand. This could be determined by evaluating the repeat purchase possibility, hardcore loyalty and the long term choice probability.
As opposed to Brady, Cronin and Hult (2001)’s arguments, Gee and Nicholson (2008) defined customer loyalty as “a deeply held promise to consistently re-purchase a particular product or service from a particular company”. This causes the same-brand set purchasing or repetitive same brand (Gruber and outroumpis, 2010). The client’s attitude toward a product or service brand together with the attitudinal preference and obligation greatly influence the level of loyalty (Sirdeshmukh, Jagdip and Barry, 2002; Aydin and Ozer, 2004; Zhen and Rossotto (2009).
2.4. The meaning of brand loyalty in the context of mobile telecommunication industry
There are several definitions of brand loyalty. However, Brady, Cronin and Hult (2001) argued that the basic element gives the structure for determining the consumer loyalty and retention. In Manish (2001)’s view the share of requirement (SOR) is the foundation level measure of loyalty. It is expressed as a percentage of the units of funds spent on the brands in the same category. For instance, if a customer buys a given product ten times a week and on average, obtains the product six of the ten times, then it can be said that the share of requirement allocated to the product is sixty percent. The service provider might define the category in its own way, for instance, airtime. In this case, if the client acquires airtime 20 times in a week, the products’ share of requirement at six purchases would be thirty percent. According to Gee and Nicholson (2008), if the share of requirement is determined based on the consumption, and not purchase, the customer may have consumed close to sixty percent during the week in question, thus putting the product’s share of requirement at ten percent. Money is used to build loyalty and generate from the customers repurchases as a result of the loyalty in the future (Gee and Nicholson, 2008).
Despite the descriptions presented by Brady, Cronin and Hult (2001), Hughes and Lonie (2007) and Cronin and Hult (2001), Hanson and Stuart (2001), Liljander and Strandvik (2003) argued that there is no satisfactory definition to brand loyalty. In Cronin and Hult (2001), Hanson and Stuart (2001)’s own view, every mobile company or service provider have to develop its own measure, and the process is driven by dynamics of the clients product and brand categories. Hughes and Lonie (2007) also argued that there are key common threads that generally form the basis of the assessment of the brand loyalty. Brand loyalty is a form of brand building that takes place as a result of effective brand communication programs. As explained by Liljander and Strandvik (2003), brands also provide certain returns to the firm, but may not be in the form of income flows. Instead, Cronin and Hult (2001), Hanson and Stuart (2001) explained that they are values that the clients perceive and hold in appreciation and for which they are ready to pay to the brand owner over a long time period.
2.5. Customer loyalty and brand loyalty in the Kenyan mobile telecommunication industry
Kenhove, Wulf, and Steenhaut, (2003), Shahsavari and Faryabi (2013), and Hetesi (2009) conducted a study to examine the level of client satisfaction for Safaricom, one of the leading mobile service providers. The theoretical frame work presented by Kenhove, Wulf, and Steenhaut, (2003), focused on the customer loyalty, customer satisfaction and the existing gap in service quality. According to the study, Safaricom is mobile service provider and is among the top performers in the Kenyan telecom sector. With its highly competitive and thriving telecommunications sector in Kenya, Hetesi (2009) explained that it is very crucial that the telecom companies such as Safaricom should consider the customer satisfaction levels.
Safaricom has a strong corporate name which the company has made for itself in the local market. This is evident from the large market share the company has in Kenya. It is the largest mobile phone service provider in Kenya. Other studies such as Donner (2008) and Best (2012), examined the independent of the independent Safaricom’s services and products and presented a comprehensive evaluation of the customer satisfaction for the products. Based on the studies, Safaricom has developed a strong corporate image since it began its global systems for the mobile communication in 2002 when it became a public company. Safaricom is a actually the leading mobile provider that has converged essential communication solutions and operates on matter of voice, video, and data transfer as described in the Safaricom website www.safaricom.co.ke. The Kenhove, Wulf, and Steenhaut, (2003)’s and Hetesi (2009)’s descriptions emphasize that the mobile telecom service providers like Safaricom have to overcome significant challenges in order to maintain its position as the leading firm in the telecom industry in Kenya.
The study conducted by Kenhove, Wulf, and Steenhaut, (2003), Donner (2008) and The Economist (2009) also examined the factors that influence customer loyalty in the telecom industry in Kenya. The study, which was conducted around the customer care locations of YU, Airtel, orange and safaricom, indicated that key indicators of consumer loyalty were mainly the repeat purchase of the products and services, increase in consumption/ purchase. In Donner (2008)’s view, the product related factors that influence consumer loyalty include the branding and visibility, the value additional service and availability of airtime as well as introduction of new technology/strategies. The study also established that the care center factors that influence customer loyalty include the attention and god understanding of the customer issues, the ability to provide reliable solutions, quick response to client enquiries and honest business transaction and dealings with the client (Kenhove, Wulf, and Steenhaut, 2003). According to the study, employee training in customer care centers conducting cost benefit evaluation, help to reduce switching costs and enhance strategic alliance among the providers.
2.6. The Factors Influencing Customer Loyalty to Brands in the Mobile Telecommunications Industry in Africa
Based on the findings of the study conducted by Freempong (2009), there are key variables of concern that significantly determine the strength and level of customer loyalty, especially in the Mobile Telecommunications industry. Some of the key variables mentioned by Hughes and Lonie (2007) and Frempong (2009) were, the quality of service and the brand image among other factors. This is as shown in table 2.1 below.
Table 2.1
| Performance variable | Percentage(%) of influence |
| Quality services | 60% |
| Brand image | 37% |
| Network coverage | 3% |
In their discussion, Akerand Mbiti, (2010), admitted that productivity, quality and satisfaction of clients pose a remarkable challenge or the growth and survival of the firms within the telecommunication industry and elsewhere (Cronin and Hult, 2001); Hanson and Stuart, 2001). A similar opinion was also fronted by Liljander and Strandvik (2003) and Republic of Kenya (2010), who mainly explained that the company growth and survival are intensified by the need to persuade and retain loyal clients . Donner (2008), therefore, pointed out that the customer should be viewed as the central focus for any successful firm. The firm’s success and performance and success is based on its understanding and its ability to satisfy the clients’ demands and needs. In Ghana, just like it is in Kenya, service provision, is viewed as a central component, even though it has suffered a significant setback, given that the mobile operator firms have been condemned for offering low quality services (Manica and Vescovi, 2009).
In Ghana, the federal government has been forced to privatize some enterprises with a view to enhance the service delivery through enhancing the number of stakeholders in the market who will be involved in the decision making processes of the enterprises (Republic of Kenya, 2010). In Kenya, both private and public firms strive to employ the right strategies and techniques to ensure that best service quality standards are achieved and maintained (Liljander and Strandvik, 2003). Considering Jacoby, Robert and William (2008)’s findings, one point is made clear that service is a critical element in any economy and a significant determinant for the customer loyalty in the telecommunication sector. In Kenya, the telecommunication and mobile sector’s role in the economy cannot be undervalued, because it affects virtually all the daily activities and transactions performed everywhere within the country (Frempong, 2009). Jacoby, Robert and William (2008), explains that it helps in decision making, activating, organizing and delivering feedback for both business and personal interactions and events (International Telecommunications Union, 2012). The economic, political, cultural and social events heavily rely on the trade and activities undertaken by the mobile network service providers.
Study conducted by Klemperer (2007) and Jacoby, Robert and William (2008), a quantitative survey was carried out to examine the factors that influenced the clients’ decision and attitude toward the network service providers. The main idea was to explore the factors that significantly influenced the brand defection and loyalty within the Danish telecommunication sector . Based on the study, switching prices and costs negatively affected the clients’ brand loyalty, but the service provision positively influenced the clients’ brand loyalty (Klemperer, 2007). Klemperer (2007), therefore concluded that when clients rank the switching costs and prices higher in their decision regarding the service provided, the more unlikely they were to stick to the particular provider. On the other hand, the study established that when the customers rank high, the company services, the more likely they were to remain loyal to the service providers (International Telecommunications Union, 2012). The insinuation is that for a service provider to switches prices and maintains low costs, the clients are less likely to be loyal to such providers. High service quality by the providers attract more loyalty and commitment from the clients. Additionally, as pointed out by Akerand Mbiti, (2010) and Liljander and Strandvik (2003), matters regarding costs, pricing and retention of the existing clients proved to be critical determinants for the brand defection. According to the study, the presence of such costs and retention issues increase the possibility of clients’ defection from a particular service provider. The study, thus presented valuable information for administrators to enable them gain a better understanding of what affects the customer’s choices and loyalty to the products and services (Manica and Vescovi, 2009).
2.7. The variables that affect brand loyalty to network providers
Donner (2008), Tarus and Rabach (2013) and Best (2012) carried out a study examined the three main factors which affect customer/brand loyalty. According to the authors, customer satisfaction, corporate image and switching cost are the main factors that encourage or discourage customer loyalty in the telecom industry in Kenya and elsewhere across the globe. Best (2012) stated that increased loyalty is consequence of high levels of client satisfaction. Based on the information presented by Tarus and Rabach (2013), customer satisfaction depends on the relationship between the client’s expectations and the actual experience. In Tarus and Rabach (2013)’s view, it is influenced by many factors including product quality, service quality and personal factors such as client’s emotional state and attitude. According to Best (2012), satisfaction transforms into loyalty just like caterpillars change into butterflies. Bello (2012) also made a crucial input on this subject by examining the factors that affect the customer loyalty in the telecom industry in Nigeria. The study evaluated the performance of the service providers collectively and suggested how the providers should map out better ways to enhance customer loyalty in the industry. According to the study, satisfaction is a relative concept that is evaluated in relation to a given standard. That implies that if customer satisfaction closer to the highest standard, the higher the likelihood that the clients loyalty is likely to be. Other researchers such as Angasa and Kinoti (2013) stated that customer satisfaction can be viewed at two levels- overall satisfaction and transaction specific satisfaction. The overall (holistic satisfaction) describes the consumer’s general subjective post-purchase evaluative judgment of the client satisfaction based on the experiences and encounters with the particular service provider. The transaction-specific client satisfaction describes the consumer’s satisfaction with a distinct service encounter and is based on the a particular purchase occasion. Based on Angasa and Kinoti (2013)’s descriptions, overall satisfaction viewed as more useful and fundamental than the transaction-specific one, especially in foretelling the subsequent customer purchase behavior and describing the firm’s present and future business performance. Angasa and Kinoti (2013)’s arguments are also in line with Kiberen, Musiega and Juma (2013)’s who opined that satisfaction is a vital business metric that is able to determine the customer loyalty even though the isolated measurements of satisfaction do not effectively predict loyalty . In a separate discussion, Donner (2008) stated that satisfaction is crucial factor and that in its absence, loyalty can never be attained. Many other authors including Kihara and Ngugi (2014) claimed that slow degree of customer satisfaction generally leads to a low degree of customer loyalty and not vice versa. On the other hand, Kihara and Ngugi (2014) stated that a higher level of client satisfaction may not necessarily lead to a high level of customer loyalty. Kihara and Ngugi (2014) claimed that customers often regard satisfaction as an intrinsic element and an innate component of any deal and therefore believe that merely being satisfied may not be reason enough to prevent them from defecting. In general Bello (2012), Kihara and Ngugi (2014) and Donner (2008) agree that customer satisfaction is a crucial starting point of the consumer loyalty formation even though not a guarantee of customer loyalty.
In the context of Kenya’s network providers, customer satisfaction are also determined by price. When the consumers believe that price is fair, they are likely to continue using the company’s product. Angasa and Kinoti (2013) also demonstrates that satisfied customers make referrals through the word-of mouth communication as an effective marketing tool for business. The studies also demonstrate that customers believe word of mouth in relation to other advertising or marketing modes. Regarding the cost Bello (2012) and Angasa and Kinoti (2013) explains that switching costs is closely linked to consumer loyalty because costs can differentiate services and products that are viewed as homogenous. This implies that customers show brand loyalty if they are offered a choice between a number of services or brands that are functionally identical to the present brand (Communications Commission of Kenya, 2014).
The switching costs have also been expansively examined in Kihara and Ngugi (2014)’s literature. Based on the information presented by Kihara and Ngugi (2014) and Owino (2012), cost switching may be due to o poor service quality, a reaction to high prices or customer satisfaction (Donner, 2008; Passikoff, 2006). Passikoff (2006) stated that switching costs presents key benefits such as preventing consumers from switching service providers. In terms of classification, Sathish, Kumar, Jeevanantham and Naveen (2011) categorized switching cost as a procedural, relational or financial. In general, the costs are negatively linked to the customers’ intention to move from one service provider to another. Passikoff (2006) also identified three types of cost switching: the learning cost, transaction cost and artificial cost. In Sathish, Kumar, Jeevanantham and Naveen (2011)’s and Passikoff (2006)’s view, a customer must be aware that he/she is able to switch service providers before he takes the necessary steps.
Nakhleh (2012)’s descriptions also add crucial input to the discussion regarding cost as a key factor that affects customer loyalty. According to Nakhleh (2012), switching cost entails adjusting the prices for the services and products including the psychological and time costs. In Nakhleh (2012)’s view switching costs may cause a dissatisfied client to remain as a loyal customer to a given service provider. Communications Commission of Kenya (2014) also revealed that the clients who not feel satisfied may still stay loyal to a particular service provider. If the clients perceive that switching costs have are higher, they are likely to remain loyal. If they find alternatives that they perceive to offer excellent services at lower costs, they may take the alternative. According to Nakhleh (2012), the relationship between switching costs and customer loyalty can therefore be described as a positive one. Donner (2008) and Communications Commission of Kenya (2014) also present valuable discussion regarding the concept of cost switching and it financial and non-financial impacts related to the client .. According to the two authors, switching costs affects the connection between the client satisfaction and loyalty .
Despite the indistinguishable views and suggestions expressed by Kihara and Ngugi (2014)and Nakhleh (2012) above, Kiberen , Musiega and Juma (2013) believe that customer loyalty does not really exist. Instead Kiberen, Musiega and Juma (2013) argued that predictive norms indicate that only about ten percent of the customers for the purchased products remain 100 percent loyal to a particular brand or service provider. In Kiberen, Musiega and Juma (2013)’s view, Consumers do not only purchase one brand. For instance, based on Kiberen, Musiega and Juma (2013)’s arguments, customers do not only remain loyal to one service provider. In the mobile telecom industry, the situation seems unique. The multi-brand loyalty is absent in the market. According to Sathish, Kumar, Jeevanantham and Naveen (2011), only one customer selects one mobile operator at a time. Sondoh et al. (2007), who evaluated the key trends of customer loyalty also stated that there are a number of levels of clients. In Sondoh et al. (2007)’s view, the dissatisfied clients look for someone to offer the products or service. The satisfied ones open to the next better opportunity while the loyal clients return to buy despite the delivery and offer by the competition.
Concerning the corporate image, the information presented by Owino (2012) assert that corporate image and consumer loyalty have shared effect on each other. In Owino (2012)’s view, corporate image plays a critical role in determining the clients perceptions and intentions to purchase services and products from a particular service provider. Owino (2012)’s view, most consumers consider more corporate image as more crucial that the perceived quality of service. Additionally, the data presented by Sathish, Kumar, Jeevanantham and Naveen (2011), supports the link between corporate image and quality of service. Other variables/factors identified by Sondoh et al. (2007) service quality and trust. The authors explain that service quality should be viewed as the delivery of superior service relative to the consumer expectations. In the Kenya’s telecom industry, process quality enable the leading network providers to express essential customer care aspects such as courtesy to the employees and clients and the responsiveness in making and receiving calls. The technical outcome of the service providers are evaluated based on the services that have distinct outcomes.
2.8 Factors that influence customer loyalty to brands in the African telecommunication industry
According to the presentation by Gustafson and Chabot (2007), customer loyalty to a brand depends on a number of factors that contribute to improved markets. Competition is created as customers tend to identify themselves to specific brands. The companies around the country produced products with similar identity as those of their rivals According to Oracle White Paper (2011), most clients identify the brands produced by specific companies by having brand preferences. Additionally, the presentation by Gustafson and Chabot (2007) stated that customers in Angola are found to be purchasing cheaper products. Therefore, companies are found to produce products that are exactly similar to those of their rivals and distribute the products in cheap prices. Cheap prices attract customers at any level Alvarez and Casielles (2005). According to these presentations by Alvarez and Casielles (2005), customers are fond to buy brands that they can identify themselves with while considering the prices of these products.
Trust is also a factor that has been identified to contribute to customer loyalty as described by Alvarez and Casielles (2005). As presented by Alvarez and Casielles (2005), trust on certain commodities and products from the network providers creates a sense of commitment from the customers towards these products. Customers are found to trust specific products and most of them cannot tell the relationship between the different products Gustafson and Chabot (2007). The presentation further identifies that customer’s trust on the network services in the African market is not only aligned to the products. These factor of trust also goes further by identifying that many customers have joined the network providers because of their trust on the network provider’s salesmen Gustafson and Chabot (2007). The salesmen tend to have customers that trust their products from their marketing styles, product quality and the prices they are issued on Gustafson and Chabot (2007).
Loyalty to brands in the telecommunication industry is also based on the consumers having friendly zones Alvare and Casielles (2005). According to the presentation by Alvare and Casielles (2005), some customers in Egypt have been heard saying that they will be in their current network providers as long as they will live in their cities. The presentation further scores that these customers are bond to stay loyal to their network service providers as these areas are easier when trying to communicate to the customer care individuals. This shows that having a consumer friendly zone when setting up shop in Africa has played a vital role in attracting and retaining clients.
The usage of mobile services in Egypt has penetrated to almost all economic and social sectors Gustafson and Chabot (2007). India’s subscriber base is expected to grow at a compound annual growth rate Gustafson and Chabot (2007) of 18.3% from 2007 to 2013, reaching a penetration rate of 53.4% by the end of 2013. With this growth rate it can be expected that Indian mobile sector is going to reach its diffusion point before long. This tremendous growth has been achieved from the application of these customer loyalty and attraction strategies.
2.9 Strategies used to attract and retain customers by telecommunication companies in Africa
Chang and Chong (2011) presented that entry strategy for a telecommunication company has been significant in achieving a desired market in Africa. In India, Bharti introduced cheap calling rates on their first day of entering the market Chang and Chong (2011). According to the presentation by Chadha (2009), Bharti Mobile company as an example has product strategies. The presentation by Chadha (2009) states that some of this product strategies include retailing of different products from the other network providers, providing products at very low but sensible prices and allowing discounts depending on the number of times these products were purchased by the clients. Furthermore, the product strategies even spread to the pricing of these products in the market Chadha (2009). Some of the companies even have very low pricing systems that are available everyday for specific products. These products range from the costs of switching between networks and positioning of the products offered in the market.
Achieving a target in the telecommunication industry is also a vital advantage that comes with customer loyalty to the given networks Chadha (2009). This markets are achieved when no- profit making companies are involved in mergers with the network providers that are already established in the African market Chadha (2009). This presentation by Chadha (2009), identifies that merging between two or more companies help expand the market share for the different companies. Acquisitions may result from these merging strategy as non-profit making network providers Chadha (2009).
2.10Significance of brand loyalty in the telecommunication industry in the world
Brand loyalty as identified earlier in this chapter creates a niche in the market share of the companies in question Chang and Chong (2011). When many individuals are found to identify themselves with certain brands, they tend to remain loyal to the brands as they create a taste for these products Chadha (2009). According to the presentation by Gustafson and Chabot (2007) , customer’s loyalty to specific brands of the network service providers results to retaining of customers by these companies. Furthermore, this presentation by Gustafson and Chabot (2007) concludes that this can be achieved when customers get what they want. The company in question here has to understand the needs of the customer and therefore provide services and products that are desired Gustafson and Chabot (2007).
As presented by Ayob (2010), brand identification by customers create an identity advantage for a company. Customers are able to find brands that meet their desires are fulfilled. This creates a sense of belonging and trust for the product. This makes the customers to easily identify the said products with the company that provides it.
2.11Conclusion
The evaluated literature demonstrate that numerous studies have examined the concept of customer loyalty and the factors that influence/affect the loyalty of the clients to the network service providers. Considering the evaluated information presented by Sondoh et al. (2007), Sewe (2010), Waema , Adeya and Ndung’u (2010), corporate image, customer satisfaction, trust, switching cost are some of the key factors/variables that affect the customer loyalty in the telecom sector. The views and arguments show that these variables/factors have a direct or indirect effect on the customer attitude ad perception which have a direct impact on the loyalty. It also affirms that the variables are positively linked to loyalty and that the telecommunication service providers need to consider the factors in their efforts to develop likely strategies to build customer loyalty. The presented literature is greatly significant in diverse ways to businesses, marketing practitioners, mobile service providers ands stakeholders within the telecom industry. To the management of the Kenyan mobile telecom companies valuated variables presented by Nakhleh (2012), Sewe (2010), Waema , Adeya and Ndung’u (2010) provide reliable measure and perspective for evaluating and describing the factors that determine and influence customer loyalty towards the products and services they deliver. The views and suggestions presented in this chapter provide essential support for management strategic decisions in critical areas of operations for the mobile service providers in Kenya such as Safaricom, Airtel and Yu and provide a reliable guide to developing and adopting workable service and product delivery improvement techniques for ensuring customer value, improved customer satisfaction, loyalty and long-term mutually beneficial relationship with the clients and attaining sustainable business growth in the industry. Even though the chapter provides key insights regarding the factors that affect customer loyalty it presents little information regarding the relationship between the factors/variables including the trust, corporate image, ands service quality in the Kenyan telecom industry context. The next chapter will explore the study techniques and strategies that were applied to collect the empirical data for evaluation and discussion.
3.1 Introduction
The reason for conducting primary and secondary research is to gather data to address specific objectives and to increase knowledge (Marczak and Sewell 2006). The aim of this chapter is to discuss the research techniques and methods that were applied by the researcher and other approaches and strategies adopted during the study. The chapter will describe a number of key areas including the sample population, the research design, and sampling method applies, the data collection process and analysis techniques applied.
3.2 Consideration of epistemological and ontological alternatives
Epistemological ontological aspects describe what are commonly depicted as the ‘researcher’s worldview which remarkably influence the perceive relative significance and approach to the study process. According to Marczak and Sewell (2006), the two main worldviews include the constructivist and the objectivist perspectives, which illustrate the different ways of viewing the world. The philosophical assumptions are further classified into paradigms which are applicable in the organizational, management and contemporary research. For instance, the positivist paradigm of social reality is based on the fact that true knowledge can be obtained through experiment and observation and is based on real experience of senses (Rumsey, 2008; Rugg and Petre, 2007; Robson, 2011). In Rumsey (2008)’s view, the positivist researchers hold the assumption that reality is objectively presented and is measured using independent properties that are not influenced by the researcher. Rumsey (2008) also argued that positivistic researchers apply scientific research methods to help uncover truth and in the quantification that ensure precision in the explanation of research parameters and the connection among them.
The other perspective is the interpretive paradigm which assumes that the reality consists of the individuals’ subjective experiences and perceptions regarding the external world. According to Robson (2007), Preece (1994) and Orna (2009), the interpretive researchers believe that there is no specific route to specific knowledge or method, so they try to derive constructs through in-depth assessment of the particular phenomenon. Based on the information presented by Marczak and Sewell (2006) and Murray (2011), every study is based on some philosophical theory/assumption regarding what makes up a valid research and which research technique is suitable for achieving the stated research objectives. Rudestam and Newton (2007), therefore recommended that in order to successfully carry out a study and to examine the given phenomenon, it is important to understand these assumptions.
Following the above discussion, the underlying philosophical assumption for this study is the interpretation but it also has footprints of the constructivist research paradigm of epistemology. In the constructivist perspective, the researcher seeks to find meaning and interpretation of how a particular phenomenon is linked to the observable fact that is part of the existing reality. The interpretive theoretical viewpoint was followed, based on Winter (2004)’s recommendations, According to Winter (2004), the interpretive perspective permits the researcher to interact with the environment in which the study is conducted unlike the natural sciences, that seek to establish consistencies in the collected data and to figure out the laws/ theories. According to Winter (2004), the perspective is similar to the social science , which places much emphasis for this research and especially the actions of the respondents involved in the study. This viewpoint was considered appropriate, based on Hine (2005)’s suggestions that is because it provides the researcher flexibility, and enables him/her to acquire new data or information the researcher has to be open for new thoughts and ideas. However, considering Hine (2005)’s descriptions, the perspective often affect the research focus and if not carefully handled, may limit the strength of the findings.
3.3 Research purpose
The general purpose of the study is to explore the factors that influence the loyalty of customers to mobile network operators in the mobile telecommunications industry in Kenya. The primary research aims to collect primary data that identify key variables that affect brand loyalty to network providers and in order to determine the factors that influences the loyalty of customers and make recommendations to managers based on the study’s findings.
The following is a recap of the research questions:
- What factors influence brand loyalty among customers in the Kenyan mobile telecommunications industry?
- To what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry?
3.4 Research Approach adopted
The inductive approach was adopted to support the study. Looking at the information presented by Rudestam and Newton (2007), and Rugg and Petre (2007), in the inductive study approach the researcher utilizes a particular method to establish and build an abstraction to define or describe a given phenomenon being investigated. In Robson (2011)’s view inductive reasoning leads to inductive research methods of collecting data in which the researcher observes/examines a given phenomenon, searches for themes or patterns in the study, and develops generalizations from the evaluation and analysis of the identified themes. The researcher then proceeds from the particular observation, analysis, to establish general statements and approach to knowledge. The inductive approach is often referred to as exploratory research because it explores a given phenomenon prior to the creation of the hypothesis and attempts to answer the research questions without necessarily having to test any hypothesis (Rugg and Petre, 2007; Rudestam and Newton, 2007; Robson, 2011). In line with the Rudestam and Newton (2007)’s descriptions, the author utilized the inductive approach to support the case study and the interview and in order to allow data to be gathered and evaluated. The approach enabled the researcher to use and examine a variety of variables and qualitative data. The analysis enabled the researcher to establish the existing patterns and to identify the existing relationships/correlations between the identified variables. Establishing the existing relationships between the variables enabled the researcher to identify the key factors that influence customer loyalty. The collected data were useful in proposing the marketing strategies for the African market. Subsequent research using similar approach may also achieve similar results.
3.5 Qualitative vs. Quantitative study
Qualitative design is subjective and systematic in its approach and describes life experiences, assigning relevant meanings to them. Based on Patton (2002)’s descriptions, the most common qualitative designs include the ethnography, phenomenology and grounded theory. The main characteristics discussed by Orna (2009), Holliday (2007) and Oliver (2012) are based on tentative application, natural setting, intuitive/felt knowledge, purposive sampling and human as instrument. Regarding the natural setting, Rudestam and Newton (2007) stated that qualitative design is carried out in natural research settings and is based on the naturalistic paradigm or worldview, and the belief that realities cannot be comprehended in isolation from the given context. Participants are recruited and examined within their natural setting. Concerning the human as instrument, Patton (2002) and Robson (2011) pointed out that in qualitative design, the researcher uses himself/herself plus other humans as the primary data instruments while in quantitative designs there are statistical measures or physiologic measures to generate data for analysis. Based on Robson (2011)’s descriptions, in qualitative design, the researcher influences the study findings due to the interaction with the respondents and the evaluation of meaning. As regards the purposive sampling, Robson (2011) argued that in qualitative design there is a conscious selection of particular participants for the study in order to discover meaning, and richness in detail of the particular phenomenon of interest. Relating to phenomenology, the qualitative design explores people’s experiences and the meaning of those experiences. The quantitative research design summarizes the study results numerically. In Preece (1994)’s view, the quantitative design draws principles of scientific realism, in which the researcher collects and summarizes numbers to establish relationships and to describe the preexisting correlation between the variables. Looking at Patton (2002)’s descriptions, the quantitative and qualitative designs may be combined in order to address a particular set of research questions. In line with Robson (2011)’s recommendations, the qualitative research designs was applied in this study. The qualitative design enabled the researcher to highlight variables through interviews.
3.6 Research methods used
The interview technique and secondary research was applied during the study. Based on the information presented by Orna (2009) and Rugg and Petre (2007), background research design is used to complement or extend the existing literature on a given subject. In line with this description, the secondary research design was selected in order to keep in line with the literature and the background research regarding the factors that influence customer loyalty to network providers in Kenya. According to Oliver (2012), the interview method is a suitable technique when an in-depth and holistic study is required. This type of research design was applied because there was need for in-depth evaluations in order to identify and inspect the factors that influence customer loyalty to network providers. In McMillan and Weyers (2011)’s view, the interviews techniques helps to assess the perceptions, views and suggestions in order to draw meaningful conclusions from the collected data. With this in mind, the researcher sought to ensure a process that would support detailed and comprehensive analysis of the existing views in order to address the research objectives. Even though the interviews can be applied for a variety of reasons, McMillan and Weyers (2011), pointed out that the technique provides a good opportunity for the writer to collect varied opinions regarding a given subject. Another description provided by Machi and McEvoy (2009) is that interviews enables flexibility and allows the respondents to provide as much details as possible and the researcher to examine a wide range of views.
McMillan and Weyers (2011) also pointed out that the interview strategy enables various forms of triangulations to take place such as investigator triangulation, theory triangulation, data source triangulation and methodological triangulation. The multiple triangulations enable the researcher to expansively use the existing knowledge and information and to examine the theories in comparison to other studies in order to make meaningful conclusions. In Marczak and Sewell (2006)’s view, interviews have been successfully applied in a wide range of studies and its advantages prove its suitability for examining the factors that affect customer loyalty to the network providers in Kenya and the larger African market. The success of interviews in sociological investigations implies that they can be applied in studies that address complex issues such as examining the market from the business perspective or studies that require the researcher to explore the concept of customer and how they are influenced by the complex factors. Considering the Machi and McEvoy (2009)’s arguments, the interview technique was reliable and valid.
The interview design
Machi and McEvoy (2009) and Robson (2011) examined the interview design concept as a vital aspect of interviewing. Based on Machi and McEvoy (2009)’s information, a properly designed interview enable the researcher to tap the necessary information from the participants. In Robson (2011)’s view, interviews can be classified as either structured or unstructured. A structured interview utilizes structure questions which have a particular number of responses. The researcher asks questions that restrict him/her from providing his own answers but to select from the alternatives provided. On the other hand, the unstructured interviews are often open-ended and attempt to probe into the respondents’ mind enabling the researcher to examine the perceptions and views of the respondent rather than limiting the feedback to a number of pre-defined options (Patton, 2002; Robson, 2011). In this study, the researcher opted to use the unstructured and structured interviews with open-ended questions in order to probe into the respondents’ mind and to examine their perceptions and views of the respondent rather than restricting them certain options. This was through asking questions that allowed the respondents to give responses based on how they thought without coercion to certain options.
3.7 Data analysis
The aim of analyzing data is to show, patterns, trends and relationships that exist between variables. In Oliver (2012)’s view, data collection and analysis is important because it helps the researcher to examine the data based on the research objectives. The inductive approach was adopted in this study. Based on Levin (2005)’s descriptions, data analysis entails subjecting the collected data to certain statistical operations. In this study, the collected data was first organized and edited to ensure that it was accurate, consistent and complete. The process was facilitated by categorization and tabulation before the actual analysis. According to Levin (2005), categorization enables the researcher to evaluate and examine the data by grouping them based on how they address the objectives. In this study, the thematic analysis technique helped to identify the patterns, trends, and correlation between the collected data in order to establish the factors that influence the customer loyalty to the network providers in general and in the context of Kenya and Africa. According to Leedy and Ormrod (2010), a phenomenological research places more emphasis on qualitative data. The research and analysis methods adopted were examined to ensure they were reliable and valid. The researcher used tabular and graphical presentations of the results which were arrived at using the Microsoft Excel software.
3.8 Sampling method and sample population
A total of 8 respondents were engaged in the study. Four customers and four managers from the four main network providers in the Kenyan telecom sector were involved in the study, which included the Airtel Networks Limited, the Safaricom Limited, YU Mobile and Orange mobile. Guided by the information presented by Leedy and Ormrod (2010) and Oliver (2012), the researcher the decided to also engage customers of the network providers and the regulators in the telecom sector. Looking at Levin (2005)’s discussion, Orange, Airtel, YU Mobile and Safaricom are the four main players in the Kenyan telecom sector. The reason for restricting the study to the four main players in the industry was to enable researcher to maximize the efforts and time for the study in order to effectively address the research questions. The purposive sampling in which the respondents had to be either subscribers or managers to the four main network service providers. The entire process helped in ensuring the accuracy of the findings and study conclusions as suggested by Oliver (2012).
3.9 Validity and reliability
Triangulation was used in order to ensure validity and reliability of the collected data. According to Winter (2000), triangulation is a strategy/method that facilitates data validation through cross verification from multiple data sources. In Leedy and Ormrod (2010)’s view, it involves the application and use of multiple research methods/ techniques to examine the same phenomenon. As guided by Jesson (2011) and Leedy and Ormrod (2010), in this study, the triangulation process was achieved through the use of interviews and secondary research. In this case, the data collected through the questionnaires were complemented and cross verified using the interview and secondary data. The interview data were then cross checked with the information retrieved from the secondary sources.
3.10 Ethical concerns
Irrespective of the kind of research conducted, Leedy and Ormrod (2010) explained that ethics is a crucial consideration. Based on Jesson (2011) and Leedy and Ormrod (2010)’s descriptions, the researcher needs to consider the ethical issues and implications of the study. According to Jesson (2011), the key ethical guidelines/principles address the issues including fidelity, beneficence, responsibility integrity, and, justice, and respect for the participants rights and privacy. They emphasize that the study should be conducted in a manner that care not to cause any harm or expose the respondents to risks. Based on Jesson (2011)’s guidelines, the researcher considered truthfulness as a key principle while collecting and evaluating the collected data. The researcher was also guided by Hutchison (2007)’s recommendations which state that the researcher’ has a professional responsibility towards all participants and must ensure that the collected data is accurate and honest. In line with Hutchison (2007)’s descriptions, the researcher should not steal, or intentionally misinterpret data or information during the study. The principles of justice demand that the participants deserve equal treatment. Therefore the researcher respected all the participants and treated them equally at all times. The respect rule demand that all the participants’ rights and dignity must be valued (Hutchison 2007). Considering the Holliday (2007)’s recommendations that ethical insinuation contributes to the protection of the participants’ rights, the participants were informed about the research objectives. For the study, the researcher assured the respondents of their anonymity and the confidential of their responses.
3.11 Limitations and delimitations of the study
The challenges of this study were linked to the obstacles of the participant uncertainness, difficulties or problems that they had when responding to questions during the interviews. The number of informants considered for the interviews was very low compared to the Kenyan population which is over forty million (Holliday, 2007). The informants were also highly concentrated in the urban areas and it is possible that the results did not accurately reflect the picture in both the rural and urban places. Additionally, the limitations of the study included the dependence on the data from a small sample of customers and managers in the telecommunication industry. Due to the need and nature of the research and design, some key delimitations were considered. The information obtained through the interviews were evaluated and cross checked with data from other reliable sources to ensure that all was consistent and dependable.
3.12 Conclusion
In a nutshell, the study was conducted to investigate the factors that influence the loyalty of customers to mobile network operators in the mobile telecommunications industry in Kenya. The idea was to examine to what extent brand management influences customer loyalty in the Kenyan mobile telecommunications industry. The interpretitivism research philosophy and the constructivist research paradigm of epistemology was followed in the study. The inductive and qualitative design and approach were adopted to support the study and to highlight variables interviews. A total of 8 respondents were engaged in the study. Four customers and four managers from the four main network providers in the Kenyan telecom sector were involved in the study, which included the Airtel Networks Limited, the Safaricom Limited, YU Mobile and Orange mobile. The thematic analysis technique was used to analyze the data. All the validity, ethical concerns were considered during the study.
4.1 Introduction
This chapter presents the results obtained from the interviews in this study. The results obtained presented in tables that were later critically interpreted in the presiding chapter. Two groups of respondents for the study were used for the analysis. The first set of respondents were the customers of the four main mobile service providers in Kenya. The second set of data was obtained from the managers of the four different service providers in Kenya. Additionally, the chapter was divided into two sections; the first section presents a summary of the data obtained from the interview distributed to the respondents who were the customers from different network providers, while the second part summarized the results obtained from the interviews that were presented to the Management team of the four network providers in Kenya. It starts with a summary of the customer preferences for different network providers. This chapter presents results relating to the objectives of the study. These include analyzing critically the factors that influence customer loyalty to network providers in Kenya, followed by conducting a critical evaluation of a comprehensive literature review on brand loyalty, analyzing critically variables that affect brand loyalty to network providers through secondary research, determining the factors that influence loyalty of customers to mobile network operators in mobile telecommunications industry in Kenya through primary research and to make recommendations to managers based on the study’s findings.
4.2Demographic data
Four customers were interviewed each from Safaricom, Airtel Kenya, Yu mobile and Orange mobile. Four managers were also interviewed each from Safaricom, Airtel Kenya, Yu mobile and Orange mobile
Presentation of the unstructured interviews only (Results in tables)
Interview Results from the 4 managers (Each from Safaricom, Airtel, Yu mobile and Orange mobile) Display in tables only
Table 4.2: What strategy do you use to retain the current clients and why?
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Theme of the customer care response
From the results, it is evident that the response of the customer care agents is vital when companies are to achieve the customer loyalty and retaining of these customers. In this case, the response of the customer care to calls was identified by a majority of the respondents. One manager said, ‘As I said again, the customer service offices are now found in most towns where we try to respond to complaints in time while educating our customers in our products.’ while the orange manager said, ‘We recently joined Telkom Kenya to enjoy the network coverage which is working and this means our customer care is now easily accessible. Again, you don’t need transferring from agent to agent to get help as we are even on the streets of the towns around that.’
Theme of rewards to clients
From the results, the researcher noted that rewards by the network provider did make the customers to stick to these companies. . One manager said in his response, ‘We notice that the customers were complaining against our turnaround time in handling dispute. We are have taken care of that and so easier dispute resolution process has been put in place. We also have educating services that are found in the free to dial numbers in the network.’ Furthermore, the manager said, ‘currently, my company is working on reducing complaints through proper billing and rewards such as the just ended tetemesha na safaricom. We are also working on the network that is now reaching many people within the country.’
However, this results identified a similarity in strategies which translated to need for more strategies by the network service providers.
Theme of network coverage
As seen in the results, the respondents identified the use of mobile phones that have network coverage. All the respondents said that networks were important for them to stick to the network providers. One respondent said, ‘the network coverage is a very significant part of our strategies to get to attaining many customers for our services.’
Table 4.3: What factors do you consider to acquire new clients?
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Cheap calling rates.
A majority of the respondents mainly stated that the inter-network calling rates was an important thing in that they preferred to use service providers that were less expensive. As a matter of fact, one respondent said, ‘ generally we focus on the cheap calling rates between networks. This has given us leverage over other network providers.’
Eliminating factors that drive away customers
From the results, it was also evident that the respondents said that most of their customers had earlier complained of the transferring they encountered when speaking to the customer care. ‘The customers lamented that their former providers had a problem of transferring them when they made customer care calls.’ On respondent noted.
other mobile services
From these, the results do identify that mobile services such as m-pesa, orange money, airtel money and yu-cash were the main mobile phone services that were identified by the respondents.
One respondent stated, ‘ …… services like m-pesa, m-shwari and the events, just like airtel money and yu-cash which are running such as the safaricom live tour where for entrance fee, customers need to buy a 100 shillings card. This is making the customer base become large.’
Internet offers.
From the results, it was identified that fast and reliable internet services were the most important for the clients to remain loyal to the network providers. A respondent says, ‘Amazingly, our internet is very fast and making calls to other networks is the cheapest.’ The manager further said, ‘As I said again, the number of branches for our company now covers a larger part of Kenya making easy to access customer services and our services.’ The results further identified excellent network coverage responsive and effective customer call centers, eliminating factors that drive away clients such as transferring clients 4 or 5 times before reaching the appropriate agent, showering clients with and rewards creating value proposition that satisfied their clients.
Table 4.4: What do you think are the factors that influence customer loyalty to your network provider?
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Theme of quality services, mobile money transfer services and cheap internet.
From the results tabulated from the interview, the researcher noted a similarity in the factors that the managers had for influencing customer loyalty to their network service providers. These factors included quality services, network coverage services, other mobile money transfer processes such as the company money services, fast and cheap internet facilities e.g. 3G networks and brand identification. One manager said, ‘ we have a unique branding system that has identified us for years as we also offer cheap internet facilities. Our network coverage is also encouraging to our customers. ’ one manager said, ‘we enjoy many customers from the quality services we provide, the coverage and the banking services we have in our company.’ While another manager said, ‘Just I mentioned earlier, the same offers we have are the ones that can be working for this question you asked. Besides, we have very cheap internet offers as compared to other service providers.’ Another respondent said, ‘ the internet is our main attraction besides the easy to access customer services. Again we have cheap inter-services calling rates.’
Table 4.5: What do you think are the variables that affect brand loyalty to network providers in Kenya?
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Themes of Network coverage and calling rates
From the results obtained, the safaricom manager stated that Network coverage and quality, calling rates, network coverage and the calling rates as major factors for the company. The same factors were identified by the managers from the different network service providers.
In your opinion, what factors do you think influence brand loyalty among customers in the Kenyan mobile telecommunications industry?
The themes of core offering, customer satisfaction and demographics.
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
This results indicate that customer satisfaction was crucial for every. This included the use of core offerings and good network coverage.
Table 4.6: To what extent do you think brand management influence customer loyalty in the Kenyan mobile telecommunications industry?
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Rebranding strategies
Rebranding of the products offered by the network providers was identified by a majority of the respondents when asked by the researcher. One respondent said in his answer, ‘It would be ok for my network provider to constantly change the products that we offer to fit with the changing trends in the society. Products such as the calling rates and use of credit would help meet the privileges of the customers. For me, the customers would be happy to have products that they would use constantly. This would contribute to customer loyalty.’ This shows that the customers like to see the constant changes made to the products they are offered by the service providers.
Upgrading of services
The results on the extent of brand management to customer loyalty was similarly identified by the four managers as upgrading of services as the strategies employed by the telecommunication companies. From the responses, it is clear that the upgrade would vary from the network coverage to the customer care services offered.
Table 4.7: Results from the 4 customers (each from Safaricom, Airtel, Yu mobile and Orange mobile)
| Company | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Table 4.8: Interview Results from the 4 customers (Each from Safaricom, Airtel, Yu mobile and Orange mobile)
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Table 4.9: Which network provider do you prefer?
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Themes of network coverage, other services by the companies and mobile offers
From the results shown, the safaricom had reasons such as the company had efficient network coverage the company had many mobile phone services like M-PESA . one customer said, ‘the network is good for this company and the calling rates go as far as being free for a good part of the day.’ The other one said, ‘yu is very cheap in most areas from calling to internet. This is why I use it for my day to day activities.’ The third customer said, ‘I mainly like their club offers and the network coverage. I get to call for less than a shilling to other networks too.’ The company also had many promotional campaigns that are beneficial to customers.
Table 4.10: How long have you been using the services from the preferred Network provider?
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Theme of Length of time
The results from the interview showed that the some customers used their providers for many years as compared to the other networks. This showed how much the customer was loyal to their service providers.
Table 4.11: For the period you’ve been using the services from your preferred provide, how would you rate your level of satisfaction?
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
From the interview results, it is evident none of them had negative comments. The safaricom customer was evidently satisfied with the network’s services. The airtel and the YU-mobile customers rated their network services as very good while the customer from orange company identified the company’s rating for the time he had used it as good.
Table 4.12: What factors do you consider before you purchase any item or service from the network service provider?
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Service quality
From the results obtained regarding this interview question, the four customers joined and chose their network providers based on the quality of services they were offered. Evidently, one said that service quality was a very important factor when identifying the provider to use.
Table 4.13: When you subscribed to the preferred network provider in Kenya, what expectations did you have?
| Company subscribed to | Feedback or explanation |
| Safaricom |
|
| Airtel |
|
| Yu |
|
| Orange |
|
Themes of affordability and network coverage
From the above results, it was evident that each client from the four mobile networks had expectations that resulted to them joining these network providers. The four customers agreed that affordable cost throughout were their most important expectation. They also identified excellent network coverage and quality of the networks as another expectation when joining the network service providers. The respondents further stated that good and appreciating professional conduct from the network players and prompt services were other expectations when joining their respective network service providers.
Table 4.14: Do you have any challenges/grievances toward the preferred network service provider?
| Company subscribed to | Feedback or explanation |
| Safaricom | o High call rates
o Switching Cost o Unreachable customer care o High call rates
|
| Airtel | o Unreachable customer care
|
| Yu | o Poor network coverage
o Unreachable customer care
|
| Orange | o Poor network coverage
o Unreachable customer care
|
Poor network coverage, unreachable customer care and calling rates
This results clearly show that despite the level of satisfaction for the customers, there were areas of concern for the customers. One of the respondents said, ‘ regrettably, in recent times, the calling rates have been painful for me. This is making me have a hard time.’ Another customer said, ‘ customer services are not easy to access at night and the branch in my town is no longer there. Something has to be done with this. It is sometimes very hard to get in touch with the individuals in customer care. This really frustrates me.’ The interview results show that the one customer had challenges with the network provider’s high calling rates and the difficulty to switching between the networks as the main challenges. This customer also identified the high calling rates as a challenge he had been facing in safaricom. He also identified the difficulty to reach the customer care as another challenge. The other customer said, “it is sometimes very hard to get in touch with the individuals in customer care. This really frustrates me.” This identified that he had a challenge in contacting the customer care. This meant that poor network coverage was a challenge for these customers.
Table 4.15: Given a chance to change to another network provider, which one would you prefer and why?
| Company subscribed to | Feedback or explanation |
| Safaricom | o Airtel
|
| Airtel | o Orange |
| Yu | o Airtel
|
| Orange | o Airtel
|
Switching between networks
From the results above, it is clear that a majority of the respondents would go for airtel if they had a chance to switch between networks. The safaricom customer said, ‘ the services in airtel tend to be good with me.’ The airtel customer said, ‘I would join orange, it has very good offers that I have experienced work.’ The YU-mobile customer said, ‘ I wouldn’t mind joining airtel. The network seems easy to work with as I have seen less complaints from the clients.’ This response results showed that something about airtel was different when compared to the other networks. Coincidentally, the airtel respondent stated that he would switch to orange network when given a chance.
Table 4.16: What is your future purchase intent toward the preferred network service provider?
| Company subscribed to | Feedback or explanation |
| Safaricom | o Business
o entertainment o news |
| Airtel | o business
o entertainment |
| Yu | o business
o entertainment o news |
| Orange | o business
o entertainment |
From the results on future intentions for the customer’s purchase, business and entertainment was a major reason as to why the respondents would go for new purchases. The other reason was the observation of news which was identified by the Yu-mobile customer and the safaricom customer. This statements show that the companies needed to develop strategies that need to enhance delivery of these areas as swiftly as possible.
4.3 summary
The interviews results revealed that the telecommunication industry is getting competitive as all the network providers are trying to outdo each other so as to retain the existing customers. Competition has also seen to be the key to various network providers as a strategy to attract new customers. Additionally, the network providers have introduced promotional events, cheaper calling rates and additional customer services. Looking at the results obtained during the interviews form the customers and the management team of the network providers, it was found that most of the network providers offered many additional mobile services to attract new clients. Some of the most notable services include, M-PESA from safaricom, YU-Cash from YU mobile, Airtel money from airtel, Free internet connection systems and cheap or free calling times during specific times of the day.
Furthermore, the one of the respondent identified services from his provider that attracted him to the network. This included; the use of bonga points to buy goods like mobile phones, modems and computers. The other customer identified among other services, the internet data bundles and the free calls at different times of the day. One customer also identified cheaper calling rates while the orange customer pinpointed the internet services provided, costs of calling and professional customer services. Generally, affordable calling costs, excellent network coverage and quality professional and prompt services were further identified as the main factors that made customers loyal to their preferred networks. Besides these factors, the study identified several other factors as instrumental in achieving customer loyalty. These factors are showering clients with rewards by the service providers, branding and re-branding strategies of products and switching rates.
However, the research results identified challenges that needed addressing from the network providers. Most of the respondents identified poor network coverage in some service providers, high calling rates and very high switching costs as to why they were adamant to join the network providers concerned. Despite these challenges, the research result identified mitigating strategies for some of these issues. The managing team of the service providers identified strategies such as rebranding strategies, strategies to meet the services of the consumer and upgrading of services as some of the strategies that are being put in place by the network service providers to mitigate the challenges identified by customers. This chapter therefore provides a critical view of the results obtained during the interviews for the managers and the customers from different network service providers in Kenya.
5.1. Introduction
This chapter provides an in-depth analysis of the data obtained from the interview in chapter four above. It provides a comprehensive literature that analyses and interprets the results obtained at the end of the study. In this chapter, there was a comprehensive discussion
n of the attained results by giving a summarized description of each research objective while identifying the results obtained from the interview. This chapter therefore starts with an overview of the research study. The chapter further provided an elaborate description of the demographic information of the research respondents. The final part of the analysis of the results by discussing the results obtained while taking into the account the research questions of the study.
5.2. Overview
As presented by Aker and Mbithi (2010), the communication industry has had a tremendous growth for the past decade. A good number of network service providers have set shop within the country with an aim of taking advantage of the available market. Mobile company shops have been seen in many towns around the country as the network service providers are fighting for the increasing demand in the country. Consequently, the continued rise of the market players for service production has resulted in a very competitive market. Kenya is now considered one of the most competitive countries in the telecommunication industry in Africa. From this, it has also been noted that the growth and expansion of the mobile telecommunications industry have activated numerous opportunities and a cascade of developments in Kenya and Africa at large (Parasuraman, and Grewal 2000; World Bank 2012). These developments have generally led to an uprising in communication and innovation. Considering the World Bank (2012) report, the expansion of the Kenyan mobile industry has been on an upward drift since 2000 and contributes more than 8 percent to the country’s GDP (Gross Domestic Product) (Safaricom, Kenya Ltd 2012). As presented by (Yukseland Yuksel, 2001), the network providers are making every notable step so as to survive in the market and have a competitive advantage over the other service providers. The steps that are visible to the population involve strategies that will result in attracting more clients. Therefore, creating the need for an investigation on the factors significant in the building of customer loyalty as a core function in the performances of these network service providers in Kenya.
5.3. Demographic information
According to a presentation by Best (2012), demographic information is information used by a researcher to describe the human characteristics in a population. Additionally, Best (2012) further presented that demographic information plays a significant role when studying the marketing strategies for different institutions. From this information, it is notable that the demographic information that was gathered in this study was vital for identifying the strategies put in place by the different network service providers to attract and eventually retain as many customers as they could. For this study, the researcher engaged four customers and four managers from the four network service providers in Kenya. Each customer selected for the study stated different reasons as to why they were loyal to their network service providers. The customer from Safaricom stated that they were mainly loyal in these networks for business. The customer identified a wider network coverage as the main reason for his loyalty to Safaricom. Furthermore, the customer being a businessman, was able to cover very large areas and stay in contact with a very significant number of business associates. The customer also identified the use of M-PESA services and online banking services as an advantage to him being a businessman. The customer of the Airtel mobile service provider identified the network coverage and cheaper internetwork calling rates as a reason for his loyalty to the network service provider. The customer even identified the free calling rates during specific times of the day and cheap internet connection rates as other reasons for his loyalty to Airtel. The customer from YU mobile stated that cheapest calling rates provided by the network service provider were a good reason for his loyalty to the network service provider. Finally, the orange customer described the network coverage as the main advantage that makes him loyal to the network. The respondents state that, “Orange has the best network as it has been identified in areas like Turkana where other services are rarely seen in good coverage. I use orange to call my family that lives in Chebyuk, West Pokot.
The manager from Safaricom states that the company has made tremendous efforts in addressing the plights of different communities around the country by ensuring good network coverage and provision of other services such as m-pesa, which has made money transfer between people of distant areas access money easily and safely. Online shopping was also an area of mention as a factor that has made customers loyal to the network. This is because consumers can access goods through their mobile phones. Airtel, Yu-mobile and orange mangers all identified the internet as the main advantage besides their network coverage. In general, the human characteristics are significant to consider by managers when making strategies to pull more clients.
The information presented by Kahara and Ngugi (2014) provided a reliable overview of the Kenyan telecommunication sector. According to the Kahara and Ngugi (2014)’s descriptions, between 1995 and 2004, Kenya did experience an outstanding rise in the number of subscribers among its population which was credited with boosting the SME sector activities. According to the survey data presented by Chadha (2009), mobile phones have had a positive impact on the growth and development of the SMEs sector as they created new jobs and investment opportunities. The description is much in line with Freempong (2009)’s arguing that Kenya is one of the fastest growing mobile markets and also one of the largest communities in Africa. Considering the data retrieved from Aker and Mbithi (2010), the country has a great potential for the future implementation of mobile applications, ICT based techniques and fixed line penetrations.
Looking at Nakhleh (2012)’s explanations, when the mobile phones were first introduced in 1992, in the Kenyan market, they were so costly and only the rich could afford them. Considering that more than sixty percent of the population are based in the rural areas, and only forty percent affords incomes above the poverty line, the rich represents a small market. This has led to the marginal mobile subscriber growth of less than 20000 between 1993 and 1999. In 1999, with the formation of the Communications commission of Kenya (CCK), the competition levels in the mobile market increased. For instance, the privatized Safaricom limited the other market entrants such as Airtel were licensed to offer mobile services.
Donner (2008)’s descriptions demonstrates that policy (Such as CCK act) strengthens competitive market forces and determines the prices. The mobile operators have to adhere to the policies which affects their product and service provision to the customers. A closer examination of the service providers as presented by Gustafson and Chaboy (2007), demonstrate that Safaricom and Airtel have continued to cover the majority of the areas, adding new regions, and experiencing the largest business growth. For instance, Best (2012) demonstrates that Airtel, exceeded its targets for the first year of activity while its greatest competitor, Safaricom, remains the mobile operator with the largest number of mobile subscribers. On a separate note, Chadha (2009)’s discussion revealed that mobile tele-density have demonstrated superior growth over the years and compared to the fixed line tele-density which has declined. Looking at the interview response the mobile phone industry is constantly growing. Since its inception in Kenya, millions of subscribers have joined the market and the industry keeps expanding endlessly. The intensified competition between the mobile operators is no surprise and especially between Airtel Kenya and Safaricom who are the leading providers. The companies are constantly introducing new products and services in order to win customers and maintain their loyalty as well (Kihara and Ngugi, 2014). The study also revealed that Airtel Kenya, which is part of a Bharti conglomerate founded in Delhi (India), was launched in Kenya in 2000 as kencell renamed Celtel and later as Zain in 2008. The company later changed its name to Airtel Kenya in 2010. Based on the interview with the Airtel manager, the service and product offering for Airtel include the SMS and voice. Furthermore, it also offers value added services such as blackberry services, Airtel money, international roaming, the one network and the local and international text messaging, internet access, directory enquiries, 24-hour customer care center and mobile top up services.
5.4. Discussion based on the research objectives
5.4.1 Factors that influence brand loyalty among customers in the Kenyan mobile telecommunications industry
On the first note, looking at the interview results obtained in the study, numerous factors influence brand loyalty among customers in the Kenyan mobile telecommunications industry. The respondents’ feedback was mainly based on the fact that the network quality is reflected in the outdoor and indoor coverage and that the clarity of voices. The insinuation is that the respondents do not prefer network providers with poor quality which experience a poor connection breakdown. The response closely compares to the Best (2012)’s literature and study, which has revealed that different countries/regions have numerous factors that affect the customer loyalty in the telecom industry. According to Aker and Mbithi (2010), the Kenyan market is a unique one in terms of market status, structure and market saturation. In Aker and Mbithi (2010)’s view, the peculiarities of these factors affect the loyalty of the country’s customer loyalty in the mobile telecom market.
According to the managers, the customer loyalty in Kenya is strongly dependent on the perceive network quality. That means that a call, drop rate or abnormally terminated calls significantly impact the possibility of the clients to continue subscribing to one service provider. In line with Aker and Mbithi (2010)’s descriptions, it is perhaps true that in the Kenyan telecommunication industry, poor network coverage discourages the customer loyalty to the network service operators. The customers are keen to evaluate the indoor and outdoor network coverage as well as the clarity of voice so as to identify any connection breakdowns and quality issues. By, considering the information presented by Freempong (2009), the quality of the core services relating to clarity of sound are very critical determinants of consumer loyalty. On the other hand, the customers noted call rate as a key factor that determined the loyalty to network service provider. In their view, most customers prefer lower calling rates.
Consequently, as the researcher compare results to the definitions presented by Donner (2008), it is clear that satisfaction has a relative concept, that is always judged in relation to a standard. According to Donner (2008), customer satisfaction is a personal feeling that enables clients to compare perceived quality with performance expectations. Satisfaction, was also identified as key factor that determine the customer loyalty. This, as identified, was a reason enough as to why many customers remained loyal to their network providers.
Accessibility to airtime, service quality, Customer satisfaction, network coverage, signal strength, sales promotion, Efficiency in the care center, The calling rates, Switching barrier
And higher calling rates tend to be factors that customers consider when identifying what network service provider to affiliate to. Looking at the study results obtained, the availability of airtime, though not a major factor, was mentioned to some extent by the customer interviewees. One of the customers even further says, “ I decided to join my current network service provider as I could not easily access airtime for my previous network provider. I could walk for many hours just to have airtime worth KSh.20 so that I could talk to my family in upcountry.” This indicates how the availability of the airtime plays a vital role when network service providers are trying to retain their customers. This results agree with the presentation by Chadha (2009) that identifies the availability of airtime at all times as a reason why many individuals are being loyal to their network service providers. The Safaricom customer puts this into context by saying, “Safaricom has now introduced multiple credit offers for airtime and internet services which has made access to airtime for me and my family easier considering that I live in the rural area.” However, the literature presented by Nakhleh (2012) tends to disagree with this by stating that despite the credit services offered by the different companies, the rate at which this airtime is used up is discouraging and therefore a major flaw for the network providers. Despite this disagreement, the literature presented and the results obtained from the study agree that availability of airtime for the customer is significant in the telecommunication industry and market advantage. Generally, the availability of airtime can be included as a factor that determines customer loyalty to the network service providers.
Another factor identified by the managers was the “Switching cost” as a critical marketing element that influence consumer behavior. According to the manager interviewees, switching costs has a special impact on the client retention, satisfaction and loyalty. This is perhaps why Freempong (2009) finds as the customer satisfaction positively linked to the customer retention and that cost switching negatively affects the customer retention levels. However, considering the information presented by Kihara and Ngugi (2014), cost switching barriers are only important when clients consider exiting. This feedback compares to the information presented by Aker and Mbithi (2010). According to Nakhleh (2012), the switching costs are incurred by clients when terminating or initiating transactions or new relationships. In Nakhleh (2012)’s view, switching costs often prevent customers wishing to shift from one service provider to the next. (Nakhleh, 2012)’s description also show that the switching costs are multi-dimensional in nature, especially in the manner in which it relates to the telecommunications industry.
When asked to explain, the customers mainly stated that the switching costs influenced their ability to inform colleagues, friends, and business associates. In their view, the cost of obtaining a new line from a particular service provider, such as Safaricom was greatly linked to the breaking, longstanding associations and the pressure to learn new procedures in dealing with the new service provider. This perhaps emphasizes that clients do not like to incur the cost of finding a new service provider and they fear to sacrifice their time and undergo the psychological efforts due to uncertainty as they join the new service provider (Kihara and Ngugi, 2014). Considering the customers’ feedback, the evidence exists that switching barrier directly affects customer retention and influences the relationship between the client satisfaction and retention Gustafson and Chabot (2009). From the results and the literatures presented in the study, switching cost can be identified as a major factor that is considered when loyalty is brought into consideration.
Another factor unveiled from the interviews was the MMT. Looking at the interview results, the Mobile money transfer is a crucial service which proves to be a key component of the mobile network operators who aim to provide unique offerings to the consumers. Based on the conversation with the Safaricom manager, money transfer services were a factor that creates customer loyalty. Aker and Mbithi (2010) also conducted a study to evaluate the successes and threats of Airtel Money, Safaricom’s MPESA, Orange money and Yu cash in the earlier years. According to the study findings, the cost and quality of the mobile money transfer services determine the clients’ attitude and behavior toward the network service providers.
A factor also identified during the study was the branding techniques of the network service providers in Kenya. This was mainly identified by the managers as a strategy employed in customer attraction and maintenance. As presented by Chadha (2009) in chapter two, branding awareness is a strategic point for client loyalty for the different telecommunication companies in Kenya. According to the presentation by Chadha (2009) branding awareness is a dominant factor as it identifies the impact on the choices made by the customers when purchasing products from different companies.
Looking at the research results obtained, different companies were identified to have unique branding techniques and therefore a major factor when achieving targets as it translates to consumer expectations. According to Donner (2008)’s presentation, the idea of brand awareness, especially when customers are looking for a preferable network service to use for the first time. Donner (2008) further suggests that branding strategies by a company involve developing quality, functional products that the customer will mostly identify. This literature further suggests that the branding technique that will be used by a company will help a customer purchase the best product as they expect. This literature agrees with the results obtained from the manager’s interview results that identified branding strategies as one of the main factors that the network providers were employing in attracting and maintaining new clients. Furthermore, the literature by Chadha (2009) identifies that branding has several effects on the customer, this effects include, customer’s recall of specific products, consumer decision making and image identification. The results attained and the literature presented therefore tend to agree that branding plays a significant role when customer loyalty is considered. However, the presentation by Best (2012) identifies that branding strategies involve calling costs, switching costs, customer satisfaction and development of new and unique products. The literature further identifies that pricing of products is also a branding strategy that allows the customers thoughts to identify products in terms of costs. Despite this disagreements on branding strategies, the literature presented and the results obtained from the study agrees that branding is a major factor to attaining brand loyalty to the network service providers. Generally, branding strategies are significant when attaining targets by network providers and the customer can develop a sense of awareness for specific products. This translates to brand loyalty and therefore customer loyalty to a specific network service provider.
Furthermore, looking at the results obtained from the interviews done on the two sets of individuals, calling rates especially between networks was a major factor that was identified by the customers for their loyalty to their networks of choice. During the interviews, one customer stated that he moved from one network service provider to his current provider to get better calling rates offered by the network. Comparing these results to the literature presented in chapter two by Best (2012), the calling rate of a network were a major factor that identified customer attraction and loyalty to a service provider in the country. According to Best (2012)’s presentation the rates of calling between networks has been a major issue in the industry as many network providers are constantly lowering their rates to attract customers. The presentation by Best (2012)further identifies that at some point, the government agency, Communications Authority of Kenya (CAK) even took matters further by specifically reducing the threshold by which calling rates were to be issued by different network providers in the country. The presentation further identifies that all the network service providers have developed calling tariffs that were created to allow customers use when making calls across networks and between countries. However, the literature presented in chapter two by Donner (2008) disagrees that calling rate are major factors when trying to attain customer targets and eventually a large market share. In the presentation, Donner (2008) identifies that with the introduction of new and cheaper tariffs by the network providers, the issues relating to high calling rates were ultimately solved. Despite these disagreement, the literature presented and the results obtained in the study can be said to agree that pricing of the calls is a vital factor when customer loyalty is considered. Generally, calling rates for the different network service providers plays a significant role when identifying customer loyalty for different network service providers within the country.
5.4.2 To what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry?
A further look at the interview results obtained revealed brands used by the network providers as significant when identifying customer loyalty. Looking at the results obtained from the interview of the mobile phone users, the results found out that many network users identified, good network coverage, network service offers, quality of the services offered, affordability of the network services and the costs of different products as the main factors that determine loyalty to services. On the other hand, according to the results obtained from the manager interviewees from all the network service providers, branding for different items is vital in attaining customer loyalty. The managers identified the upgrading of the network services, formulating strategies to help them meet the consumer needs and improve the network coverage as some of the factors they had put in place for attracting customers. Comparing these results to the information presented d by Tarus and Rabach (2013) in chapter two, customer loyalty is influenced by many factors including product quality, service quality and personal factors such as client’s emotional state and attitude. This therefore is as discussed.
From these findings, both literature and the interview results identify network coverage, quality of services, affordability, costs of services and upgrading services as the main factors that influence the loyalty of customers to network service providers. However, there seems to be a slight difference between the research findings and the literature presented by Freempong (2009) in chapter two. The difference in the two findings is that while the results identify offers, network coverage and services as factors, that customers show brand loyalty if they are offered a choice between a number of services or brands that are functionally identical to the present brand (Communications Commission of Kenya 2014). This identifies the factor of the switching costs between network service providers. In general, both the research findings and the literature results presented by Freempong (2009) identify that quality of the services, upgrading of the services and affordability for the customers as the main factors that influence brand loyalty among the customers towards different service providers.
Looking at the interview results obtained from the customers from the four service providers, each of the customer had a reason for their loyalty to their preferred network providers. The customer affiliated to Safaricom identified that he considered the best network coverage, mobile phone services like m-pesa and m-banking, promotional campaigns as the beneficial factors that made them stick to this service provider. On the other hand, the Airtel customer, identified good network coverage, cheaper calling rates and affordable internet offers as the reasons why he was with the network. The YU-Mobile customer stated the reason for loyalty to the service provider was the cheaper calling rates offered by the company and the cheap internet offers like unlimited internet bundle offers. The orange network customer identified the coverage as the main factor and the cheaper calling rates as the other factors. On the other hand, the results from the manager interviewees identified strategies such as rebranding and making consumers as satisfied as possible as the main factors considered when they are creating brand loyalty for their network services. Comparing this information to the literature presented by Jacoby, Robert and William (2008), customer loyalty can be important when the network service providers meet their decision making needs which included activating, organizing and delivering feedback for both businesses, personal interactions and events (International Telecommunications Union 2012). These service providers were therefore chosen by customers as long as they met their day to day activities promptly.
Both the literature and the interview information therefore reveal that the choosing of a particular network, by customers is dependent on the day activities of the customers and whether these network service providers have services that enable them meet these needs. However, there seems to be a slight difference between the research findings and the literature by Chadha (2009) that identifies that popularity of a network service provider determines the customers affiliation to the service provider.
In general, both the findings and the evaluated literature presented by Chadha (2009) reveal that customers will always choose a network as long as the day to day needs and wants are met by the company chosen.
5.4.3 Strategies to retain clients in the Kenyan mobile telecom industry
Regarding the strategies used by the mobile network providers, the managers expressed that the operators continually seek for ways to delight clients and to provide better services by offering innovative technology, services and products as well as delivering exciting and exceptional client experiences (Kihara and Ngugi, 2014). The manager from Safaricom stated that growing with the customer base was a helpful approach/strategy. In (Kihara and Ngugi, 2014)’s view, the customer base expanded by more than 11 percent from the previous 22 percent in 2014. The double digit expansion, in the respondents view, was due to the compelling data, voice and SMS prepositions and the operator’s commitment to offering unmatched client experiences at all the consumer touch points. Looking at (Kihara and Ngugi, 2014)’s descriptions, voice is the backbone of business and it improved from 12 percent and contributed over sixty percent total revenue due to the increase in the number of customers and the enhanced Safaricom network experience. Other factors that help the company retain clients include the implementation of various innovative consumer propositions and the robust airtime distribution systems. For instance, the Safaricom manager explained that the company commenced a top-up campaign and promotional service referred to as “the tetemesha na safaricom” which was purposely to stimulate minutes of use. In the manager’s view, the promotions such as this helps, deliver over six percent increase in the profits. Another promotional system referred to as “the Okoa Jahazi” led to over 37 percent growth in the emergency access revenue and which saw the introduction of superior loan bands of up to ksh. 1000 that are positively welcomed by the clients. The information loosely resembles the Donner (2008)’s descriptions that the approach and decision to upgrade networks and service offerings in business solutions proves as crucial testimony to the company’s commitment to serve the clients.
The interview with the Yu mobile manager revealed that special links and collaborative intelligence with other entities and companies in order to innovate faster, and operate more efficiently. The Yu mobile manager stated that collaborative relationships helped the company to exchange helpful information and to share the business platform in order to achieve enhanced business processes. The recent collaboration with the Airtel Kenya has helped unlock the company’s performance potential and to motivate clients, which contributes to business success.
Comparing the feedback with the (Kihara and Ngugi, 2014)’s descriptions, collaborative intelligence is important in order to help the network service providers to innovate factor, and work more effectively. In (Kihara and Ngugi, 2014)’s view, collaborative associations with business and strategic partners enhances the company’s ability to conduct cross business and to unlock its business potential.
Empowering employees
The interviews with the managers also revealed that employee empowerment is a significant strategy that contributes to customer loyalty. According to the responses from the Safaricom manager, the company focuses on developing human capital through the existing avenues and exposure to opportunities. In order to enhance the capability and potentials of the staff, the interviews revealed that employees are trained and allowed to pursue various data offering related certifications such as the certified internet expert, Oracle certified masters, or ICT, management and Leadership modules. The courses help the managers and staff members to enhance strategy execution, people’s management, coaching and performance, which translates into improved service delivery and customer loyalty. The activities are really supported by the literature presented by Cronin and Hult (2001), that the use of expert and training programs are implemented to help the employees improve in their areas of specialization, learn soft skills and service delivery. In Cronin and Hult (2001)’s view, the functional training across the business ensure an exceptional customer experience at the customer touch points and enhanced development of consultative services and product offerings. According to the Safaricom manager that was interviewed, Safaricom company has continued to encourage academia partnership and renewed a memorandum of understanding with the local and international universities such as the Jomo Kenyatta universities and the Strathmore university which remains helpful in supporting and enhancing development and industrialization through training innovation and research. In line with Cronin and Hult (2001)’s descriptions,
A similar feedback was provided by the Airetel manager that was interviewed. According to the respondent, Airtel Kenya invests in the employee training, especially because of the numerous perceived benefits including the increased morale, which result in enhanced productivity leading to bottom line profits (Hetesi, 2009). The manager stated ‘training intervention is a critical factor for ensuring customer satisfaction and loyalty’. This explains why the literature presented by Cronin and Hult (2001) and Hetesi (2009), assert that improved performance of managers is achieved through field training and continuous capacity enhancement strategies.
5.5. Conclusion
From the study, the results obtained from the interviews demonstrate that customer loyalty to different network service providers depend on a number of factors. This factor identified by the customers from the four service providers includes factors such as network coverage, the cost of calling, switching costs, special offers, the quality of services provided by the network companies and the affordability of the services offered. Furthermore, the managers identified factors which included the branding, upgrading and promotional events as factors that play a lot at how customers become loyal to their network providers. However, besides the factors, the study also identified that more needed to be done by the network service providers as the Kenyan market is still growing with the growing population. The research results stated that the management from the network service providers also needs to formulate strategies in their respective companies to attract more customers.
6.1. Introduction
This chapter seeks to identify the main areas of the study that were highlighted at the end of the research. The chapter therefore seeks to evaluate how much the purpose was attained. This chapter will involve further highlighting of the results, the analysis of the literature given in the study, evaluated results and providing an in-depth conclusion of the research objectives. These were achieved through by describing the research questions that were investigated during the study. The main objective was to determine the factors that influence customer loyalty to the network service providers they are affiliated to in Kenya. This was achieved through identifying ideas that will provide solutions which will be used by the network service providers in attaining the desired market share advantages. This research study had the following research objectives; To analyze factors that influence customer loyalty to network providers in Kenya; To conduct a critical evaluation of a comprehensive literature review on brand loyalty; To analyze variables that affect brand loyalty to network providers through secondary research; To determine factors that influences the loyalty of customers to mobile network operators in mobile telecommunications industry in Kenya through primary research and to make recommendations to managers based on the study’s findings.
6.2. Conclusions
In conclusion, the results revealed that network service providers in Kenya had their own strategies which they employed when acquiring and retaining new clients. Additionally, the results revealed that more can be done to these strategies by the network providers to acquiring a more client-base. The researcher identified that the Kenyan market has potential for more clients for the existing network service providers. The results further identify that besides most of the network service providers having most of their strategies almost equal, there were other strategies that identified a greater customer loyalty in certain companies in the country as compared to the others. The conclusions were therefore made by identifying the research findings while relating them to the research questions.
Regarding the research question ‘What factors influence brand loyalty among customers in the Kenyan mobile telecommunications industry?’, the research results revealed that both the team of interviewees that included the four managers from the service providers and their respective customers identified several factors. The results from the customers identified factors such as costs of calling across networks, quality network services provided, fast internet connections, cheaper and faster methods of switching between networks among others as the main factors that influenced them to be in their specific networks. The managers agreed that these were the factors and that they were already trying to put down strategies to mitigate the challenges that followed. Some of these strategies included the branding strategies, satisfying the consumer strategies and upgrading the already existing systems to enhance brand loyalty and attract more clients. This result therefore concluded that customer loyalty to different networks in Kenya was mostly based on the factors identified here.
Furthermore, regarding the research question, “what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry?” The research findings as seen in the previous chapter revealed the managers identified strategies that their companies have developed in identifying and getting a larger market share. Some of these strategies included strategies to starting initiative that delighted customers such as offering innovation and technological advantages in their services and products. Some of these managers also mentioned free voice calls and messaging propositions, robust airtime distribution strategies for the different network providers and advance credit offers for emergencies from the different networks. Other managers stated collaborative measures to achieve certain special customer limits. This result therefore concluded that there were strategies that were used by the network providers to retaining customers, but we’re not good enough for the already increasing competition from all the existing network service providers.
In general, the study identified major factors such as pricing strategies for goods and services, network coverage, consumer satisfaction and promotional attractive activities as the main factors that influence consumer loyalty to the network service providers.
6.3. Implications of the study
The study will benefit various parties, including academicians, government, corporate and consumers. For the students/and academicians, the study will help provide and increase knowledge and enable them obtain more awareness regarding the link between the customer loyalty and the factors that influence the consumer behavior toward the service providers. Additionally, the academicians will be able to develop interventional and training programs and strategies to enhance practices that ensure enhanced service and product delivery and customer loyalty. It will also help corporate to address the existing challenges in relation to customer loyalty and performance. Most managers often make hasty verdict without gathering tangible information to back their findings. So the study will help the managers and corporate to address the challenges. The study will also have implications for project and policy adoption for mobile companies that operate in the Kenyan telecom industry. For customers, the study will help in the job hunting individuals to equip themselves with the necessary skills to join the telecom industry in order to improve productivity and performance. The job hunters will be able to filter the mobile companies they would like to work in or to subscribe to become aware of the information regarding the factors that affect customer loyalty and factors that influence it.
6.4. Recommendations
From the research results obtained in the study more studies could be done by the different companies in Kenya and as well as scholars to ascertain various new strategies that can be employed by the service providers to retain clients and maintain them for very long. Among the recommendations that the researcher proposed were as follows.
The researcher noted that many customers identified network coverage as the main factor for their loyalty to specific network service providers. This therefore calls for more research on better network frequencies by the service providers. Better network frequencies translate to better network coverage. Better network coverage further translates to a larger customer base as a bigger market is reached from good network availability by the service providers. This research will be helpful to the stakeholders in telecommunication industry in developing better strategies that can be used to identify better frequencies that will be used to increase the network coverage and avaialiability.
Additionally, the researcher identified that most of the network service providers in Kenya did their decision making without much involvement of the customers. The researcher therefore recommended for further research on strategies that can be used by the network service providers in Kenya to involve all their customers in decision making. This can eventually boost the customer loyalty to their networks that will contribute to a larger client base.
Furthermore, the researcher recommends more epidemiological studies on the negative health issues associated with these network services. As presented by Donner (2008) in chapter two, the health issues are some of the factors that create fear of certain networks by the customers. Several health issues have been found to begin as a result of certain issues associated with the network service providers. This therefore calls for more research on strategies to develop user-friendly products and services of the network providers within Kenya and the world at large.
As presented by Best (2012), some of the service providers in Kenya can employ strategies of collaborations so as to achieve certain market targets. With this in mind, the researcher recommends further researches on areas of the network provider systems whereby network providers can combine efforts and do collaborations in some areas of their services. This will result in better market shares and help the network service providers achieve greater profits.
Additionally, the researcher also found out from the results that switching costs were a major factor in maintaining customer loyalty for the four network service providers in Kenya. More research on areas that can be identified to affect the rates of switching can be done by different researchers. Researches on cheaper switching costs can also be done to determine cheaper strategies that will enable consumers switch between networks without financial difficulties.
Regarding products offered by the four network service providers, the researcher identified several products ranging from free calling rates, internet and texting advantages as the main products that determined customer loyalty to different service providers. From these identifications, the researcher recommended that the network service providers can start researching on identifying more products that would be used by the companies in attracting more customers to their markets. This will translate to an increased market share by the successful companies.
The researcher noted further that the network service providers had problems that were identified in their customer services. The lengths of response times and employee response to grievances by the customer were a factor that could be important to the customer loyalty to the companies. This finding, therefore calls for research on employee ethics in the service provider network companies.
Finally, the researcher recommends for more research on strategies that can help the companies increase their customer base such as researches on applications that can be introduced to cater for special needs individuals. These individuals include the physically handicapped and accident victims.
You are kindly invited to take part in this study which seeks to examine the Factors Influencing Customer Loyalty to Brands in the Mobile Telecommunications in Kenya. The information provided will be used for study purposes only. All information submitted will be treated with maximum confidentiality. Thank you for your cooperation.
| Interview questions for the Customers | |
| Which network provider do you prefer?
Kindly explain why
|
|
| How long have you been using the services from the preferred Network provider? |
|
| For the period you’ve been using the services from your preferred provide, how would you rate your level of satisfaction?
Explain_________ |
|
| What factors do you consider before you purchase any item or service from the network service provider?
Why ___ |
|
| When you subscribed to the preferred network provider in Kenya, what expectations did you have?
Why?__________ |
Affordable cost through out
Excellent network coverage and quality Good voice quality Good effective customer care services. Professional and prompt services Warm and helpful customer representatives |
| Do you have any challenges/grievances toward the preferred network service provider?
Kindly mention them____ |
Switching Costs
Poor network coverage Unreachable customer care High call rates
|
| Given a chance to change to another network provider, which one would you prefer and why?
Kindly explain___ |
|
| What is your future purchase intent toward the preferred network service provider?
Kindly explain___ |
|
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