Factors influencing customer loyalty in mobile networks in Tanzania: a case of the University of Dar es Salaam
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Abstract
The main objective of the study was to determine factors influencing customer loyalty in the mobile network industry in Tanzania. The study adopted descriptive research design The sample population used by the study is 150 respondents, which were drawn using stratified random sampling procedures in which 128 questionnaires were properly filled and collected. The data were analysed by using statistical package for social science (SPSS) and Stata version 14, cross tabulation and the use of Person chi-square test statistic were used to check the significance relationship between customer loyalty and its determinant factors. The study findings show that customer loyalty is influenced by customer satisfaction, trust, quality service and corporate image. All factors discussed were found to have a positive relationship with customer loyalty at 5% level of significance. Trust is shown to be a strong factor through corporate image; customer satisfaction and service quality are almost as important. Customer satisfaction not only influences customer loyalty but also contribute to the profitability. It is recommended that these factors (trust, customer satisfaction, quality service and corporate image) should be taken into consideration when planning strategies for developing customer loyalty in mobile network industry in Tanzania; this will help reduce the cost of requiring new customers by retaining the existing ones as it costs more to acquire new customers than retaining the existing ones as it costs.