THE DETERMINANTS OF CUSTOMER SATISFACTION AND LOYALTY AMONG TELECOM USERS IN ABIA STATE

ABSTRACT

The objective of the study is to investigate the determinants of customer satisfaction and loyalty among telecom users in Abia state. Primary data was obtained through a questionnaire. 220 questionnaires were self-administered by the researchers to the subscribers of the four major GSM providers in Abia State. 198 of the questionnaires were returned, properly filled. The questionnaires were analyzed using SPSS 20. Pearson Product Moment Correlation was used to establish the relationship between the independent and dependent constructs of the research. The findings revealed that service quality, customer satisfaction, and corporate image are important determinants of customer satisfaction and loyalty among mobile telecom users in Abia state. The fourth factor, price/tariff is found not to be a determinant of customer satisfaction and loyalty in market. A conclusion was drawn to the effect that since factors influencing customer satisfaction and loyalty have been established, network service provider should note these and emphasize them in their marketing strategy.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1       Background of the study

1.2     Statement of the Problem

1.3     Objectives of the study

1.4     Research Question

1.5     Research hypothesis

1.6     Significance of the study

1.7     Scope of Study

1.8     Limitation of the study

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1     The Concept of Customer Loyalty

2.2     Determinants of Customer Loyalty

2.2.1  Service Quality, Customer Satisfaction and Customer Loyalty

2.2.2  Price, Customer Satisfaction and Customer Loyalty

2.2.3  Customer Service/Care, Customer Satisfaction and Customer Loyalty

2.2.4  Corporate Image and Customer Satisfaction and Loyalty

2.2.5 Approaches to Measuring Customer Loyalty

2.3     Empirical Framework

CHAPTER THREE

RESEARCH METHODOLOGY

3. 1    Research design

3.2     Study area

3.3     Sample size and sampling technique

3.5     Research Instrument Validity and Reliability

3.6     Model specification

CHAPTER FOUR

PRESENTATION OF DATA, ANALYSIS AND INTERPRETATION

4.1     Introduction

4.2     Presentation of data

4.3     Analysis of Data

4.4     Test of hypotheses

4.5     Discussion of Findings

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1     Summary of findings

5.2     Conclusion

5.3     Recommendations

5.4     Suggestions for further research

References

Appendix - Questionnaire

CHAPTER ONE

INTRODUCTION

1.1        Background of the study

Wireless communication technology, particularly cellular networks have spread rapidly throughout Nigeria within the past decades making it the main form of telecommunication in the area. One manifestation of this is the move from analog to cellular system phones whereby, the proportion of analog versus digital users has steadily decreased. Additionally, the number of mobile telephone service providers has increased dramatically, to include MTN, Globacom, Airtel and Etisalat. The existence of these four main players has given way to high competition in a wide range of areas in pursuit of attracting customers and keeping present ones. Consequently, these companies were forced to develop aggressive marketing strategies aimed at improving service quality, price, product offerings, etc. in order to maintain customer base and attract new consumers.  With this strong competition, it would be interesting to examine the effect of these strategies on customer decision making of mobile service providers.

1.2 Statement of the Problem

The fascination of digital gadgets amongst young consumers worldwide, in particular mobile phones, has presented an opportunity for telecommunication marketers to target this group.  The vast majority of mobile phone users have a personal relationship with their phones.   They no longer regard them as a mere luxury, but rather as a necessity for everyday life.  Thus, choosing an appropriate mobile service provider becomes an important part of owning a phone.  For this reason, it is important for mobile service providers to maintain their current customers and attract new ones. Based on a number of preliminary interviews with consumers, it was revealed that customer satisfaction and loyalty to a mobile service provider is affected by the, price, quality of service, brand image and trends.  These factors affect primarily the young who are, by nature, influenced easily by their peers and tend to make hasty and abrupt decisions.  Thus, this research will examine the factors that contribute to customer loyalty of mobile service providers among consumers in Abia state.

1.3 Objectives of the study

The main objective of the study is to access the determinants of customer satisfaction and loyalty among mobile telecom subscribers in the region of Abia state. The specific research objectives of the study are;

1. To determine the factors have important impact on customer satisfaction and loyalty among users of mobile telecom in Abia state.
2. To determine the relationship between service quality and customer satisfaction and loyalty among users of mobile telecom in Abia state
3. To evaluate the relationship between Call rate/tariff and customer satisfaction and loyalty among users of mobile telecom in Abia state
4. To measure the relationship between customer service/care and customer satisfaction and loyalty among users of mobile telecom in Abia state
5. To access the relationship between corporate image and customer satisfaction and loyalty among users of mobile telecom in Abia state

1.4 Research Question

The questions to be addressed by his study include:

1. What factors have important impact on customer loyalty in among users of mobile telecom in Abia state?
2. What is the level of relationship between service quality and customer satisfaction and loyalty among users of mobile telecom in Abia State?
3. What is degree of relationship between Call rate/tariff and customer satisfaction and loyalty among users of mobile telecom in Abia state
4. What is the relationship between customer service/care and customer satisfaction and loyalty among users of mobile telecom in Abia State?
5. What is level of relationship between corporate image and customer satisfaction and loyalty among users of mobile telecom in Abia state?

1.5 Research hypothesis

H0₁: There is no correlation between service quality and customer satisfaction and loyalty among users of mobile telecom in Abia state

H0₂: There is no correlation between Call rate/tariff and customer satisfaction and loyalty among users of mobile telecom in Abia state

H0₃: There   is   no   correlation   between   customer   service/care   and   customer satisfaction and loyalty among users of mobile telecom in Abia state

H0₄: There is no correlation between corporate image and customer satisfaction and loyalty among users of mobile telecom in Abia state

1.6 Significance of the study

This research provides both theory development for academics and practical implication for marketing managements. The result is expected to inform Mobile operators about their customers' response to the variety of marketing strategies being deployed as it is helpful for marketers to understand the effectiveness of marketing tactics from consumer’s perspective. Marketers may take clues from this and improve their customer retention strategies. Other stakeholders are also expected to benefit from the output of this research study since this will serve as an information base which adds up to the existing body of knowledge in the Nigerian Telecommunication industry. The academic world may also benefit from this study; it may serve as a basis for more research in this area, the telecom sector, as well as the rest of the service sectors.

1.7 Scope of Study

The study is expected to cover only mobile telecom users within three Senatorial Zone of Abia state. This study is also limited to four (4) factors influencing customer satisfaction and loyalty variables as well as other tactics and quality measurements are excluded in the study. In addition, the research and analysis is based only on customer's point of view, the service firms' perspective about this subject is not considered in the study.

1.8 Limitation of the study

In most cases, a significant number of the respondents were reluctant to assist in the administration of the structured questionnaires since most of them claimed that they do not have enough time to spare. Another weakness was that the research and analysis is based only on customer's point of view, the service firms' perspective about this subject is not considered in the study.

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