Factors influencing customers switch-over in Tanzania: a case of mobile phone users in Dar es Salaam

Telecommunication in Tanzania has been gaining a lot of momentum since the introduction of mobile phones. Phones are no longer seen as luxury but a pre requisite for economic growth. Mobile phone operators on the country compete with each other to attract and retain customers. Competition level in industry increases due to the ability of customers to change mobile phone operators at any time they want. Understanding the relationship with customers in crucial for mobile phone operators in order to be able to sustain a long relationship with customer. This study has looked at the factors influencing customers switch-over in Tanzania. The study was conducted in Dar es Salaam using survey strategy. This strategy allows collection of large amount of data in a highly economic way from a sizable population, primarily based on questionnaires. Data collected was analyzed using computer and hypotheses developed for the study were tested using chi test and correlation analysis. The study identifies and revealed that services quality, network coverage, service charges and influence of family, friends and worker mates to be the main causes of customer switch-over. It also revealed that there is no significant difference between demographic characteristics and switching behavior. The study concluded that mobile phone service providers should give much attention to factors leading to cause of switch-over among customers and finding permanent solution to retain their customers. Finally, there is a need to establish good relationship with customers through efficient services toward brand loyalty by charging fair so as to establish a long term profitable relationship with customers.