Determinants of Customer Loyalty in Telecommunications Companies in Tanzania A Case of Airtel Company in Moshi Municipality

Abstract

Customer loyalty has become an important component in business development. This study was conducted to assess the determinants that contribute to customer loyalty in telecommunication companies taking Airtel Tanzania in particular. Specifically, the study intended to examine the extent of service quality parameters on customer loyalty, determine the relationship between customer satisfaction and customer loyalty, examine the perception of brand trust on customer loyalty, examine the contribution of corporate image on customer loyalty and determine the perception of switching cost on customer loyalty. A cross-sectional research design was adopted with a sample size of 400 respondents. Data was collected using questionnaires which were distributed to respondents. Data were analysed through multiple response techniques, and one sample test. Findings revealed that the service quality parameters determine customer loyalty; customer satisfaction relates to customer loyalty; brand trust contributes to customer loyalty and corporate image contributes to customer loyalty. These four variables are important determinants of customer loyalty. The study also revealed that there was no significant relationship between switching cost and customer loyalty, respondents could switch between operators easily but still choose not to switch. The study concluded that service quality parameters, customer satisfaction, brand trust and corporate image highly determine customer loyalty. The study recommends that telecommunication companies' management should ensure that service quality is reliable and convenient, positive corporate image, strong trust on their brand and maximum satisfaction so that their customers can remain loyal and attract new customers for success of their business. This can be done by creating more awareness to customers and training their personnel in providing best quality services