Determinants of customer retention among mobile telephone service provider : case of Vodacom Tanzania

The issue of customer retention in mobile telecommunication companies in Tanzania is complex and very challenging. Vodacom Company has experienced massive customer switching between 2012 and 2013. This study investigated the relationship between network coverage and network quality; customer service quality and price strategies as determinants of customer retention in the mobile telecom service industry in Tanzania. This was a descriptive analytical study describing the relationship between main determinants of customer retention using Vodacom subscribers in Tanzania. The study involved a total of 255 respondents were primary data was collected. A self-completion questionnaire with a total of 42 closed questions was developed to gather field data. All of the items were measured by using a five-point like type response scales, defined with 5 as strongly agree and as strongly disagrees. Reliability test and some parametric and non-parametric tests were conducted. Findings of the study have revealed positively correlated relationship between all five variables service quality, customer special offers, network quality, network coverage and Vodacom company reputation and customer retention. Lastly, it is concluded that finding of the study showed existing relationship between Vodacom strategies to have influence on customers' retention. it is recommended that Vodacom Company and other service providers should strengthen their strategies to attract, satisfy and retain their customers.