BRAND LOYALTY AND CUSTOMER RETENTION IN TELECOMMUNICATION INDUSTRY IN TANZANIA. A CASE OF VODACOM COMPANY
Publication Date : 03/07/2021
This study specifically intended to assess the influence of brand loyalty on customer retention in the telecom industry in Tanzania. In order to meet the objective of the study, positivism research philosophy was employed along with exploratory cross-sectional research design to ascertain the causal relationship between brand loyalty and customer retention in telecom industry. Structured questionnaire was used to gather the statistical data to test the hypothesis and model used. The study collected data from a total of 400 Vodacom customers in Dar-es-salaam, obtained through simple random sampling technique. The data were analyzed using Structural Equation Modeling (SEM), the findings reveal that brand loyalty was an insignificant factor on customer retention at (p) value of 0.096. The study concludes that both managers and policy makers in telecommunication companies including Vodacom should not only seek to attract customers, rather integrate the marketing communication strategies in the process of building brand loyalty in order to retain their customers. Brand loyalty leads to greater opportunities for telecommunication companies to build cultures among customers to rely on services offered by companies including Vodacom. Moreover, it is recommended that the managers should invest more on service customization, customer problem resolution and customer support in their marketing. Telecommunication companies in Tanzania have to design policies which can ensure that communication services offered by their employees are embracing the quality and reliable services fit for their customers. Policy guidelines that stipulate on how and what service quality should be rendered to telecom customers could overcome a great deal of predicaments related to customer retention. Nonetheless, poor services from the vendors have an impact on the effort to increase the customers’ retention in telecommunication industry. Based on the findings of this study which was conducted in Tanzania, it is proposed that further studies be done in more than one country in order to confirm and establish more evidence which can help to explain the adoption phenomenal in developing countries and compare some unique characteristics found in each country under investigation. Furthermore, due to contextual differences that might limit the replicability of the model employed, therefore the study appeals for studies to further validate the model and its replicability in other countries.
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