The Factors Influencing Customer Loyalty to Brands in the Mobile Telecommunications in Kenya
1.1 Introduction
The aim of this paper is to study the primary factors influencing the loyalty of customers in the telecommunications industry in Kenya today. An interview was conducted involving four managers and four customers from the nation’s leading telecommunications services providers, namely Safaricom, Airtel, Orange, and Yu. The paper will first describe the factors that influence customer loyalty, the strategies applied by the firms to retain their current clients, and acquire new ones. The next section will examine the factors that influence brand loyalty among the four firms. Before the conclusion, the last section will look at the role played by brand management in the control of brand loyalty
1.2 What do you think are the factors that influence customer loyalty to your network provider?
Each of the respondent in the interview had his or her opinion regarding the factors affecting the loyalty to their network. Interview results with the four managers revealed that customers remain loyal to their firms due to proper service provision; the four customers interviewed echoed this opinion. The four customers mainly showed that they remain loyal to their firms due to the love for quality and subsidized services. The Safaricom manager explained that his company had the largest customer care. The firm is, for this reason, in a position to provide the best customer service, the Airtel manager revealed that their main strength lay in the proper network connectivity and qualified personnel. On the contrary, the Orange and Yu managers stated that their companies always come first in the provision of subsidized telecommunications services. The Orange managers also pointed out the role played by the provision of quality internet connection to customer loyalty.
According to research by Dick and Basu (1994, p.110), the relationship inculcated between the customer and the firm is the primary determinant of customer loyalty. The two also argued that every firm must strive to satisfy the needs of the customer. Comparing the interview results with the information described above, it is more evident that the nature of service provision determines the loyalty of customers in the industry. Hallowell (1996, p. 30) discusses the importance of customer satisfaction to customer loyalty. There is a correlation between the information acquired from the interview and existing literature. In conclusion, good customer service and customer satisfaction are the main factors influencing the attachment of customers to their telecommunication firms in Kenya.
1.3 What strategies do the Kenyan Network service providers use to retain the current clients?
The results obtained from interviewing the four managers reviled that product differentiation and innovative products enable them retain their current customers. The four customers on the other side replied that firms ensure that they do not migrate through the provision of current and flexible products. The Safaricom manager answered that, “Through innovations such as the revolutionary M-Pesa, we can easily retain our customers.” The Airtel and Orange managers argued that they retained their customers through great offers. The Yu manager answered that loyalty schemes for customers help in their retention. According to Njuguna (2012), the Kenyan telecommunication market requires innovation and product differentiation to ensure leadership in the field. Through the offers and reward schemes from Airtel, Orange, and Yu, the firms successfully differentiate their products and ensure that the customer sees many benefits in the buying process. Safaricom’s innovative M-Pesa, on the other hand, keeps customer attached to the firm.
1.4 What strategies do the Kenyan Network service providers use to acquire new clients?
The four managers interviewed revealed that their marketing efforts are the main contributor in the influx of new customers in their firms. The customers, on the other hand, say that they knew about the services of different providers through different media. The Safaricom manager explained that the company uses visual media such as national television to market their products. The Airtel and Orange managers revealed that they focused on reaching out to new customers through tours to different parts where they can find new customers. The Yu manager said that the company attracts new customers by ensuring that they position their retailers in populous locations. Marketing is an essential tool for the acquisition of new customers in a firm as suggested by Berry (1995, p. 241). Comparing the interview results with the information in his article, it is evident that without marketing efforts, the firm cannot acquire new clients. Berry (2002, p. 62) argued that a firm must create knowledge in potential customers about its existence in the market through the marketing process. Both the literature and the interviews, as a result, show that marketing is very crucial in luring new customers a firm.
1.5 In your opinion, what factors do you think influence brand loyalty among customers in the Kenyan mobile telecommunications industry?
The four managers interviewed believe that brand loyalty is the quality and price of the brands. The four customers had the opinion that pricing is the main factor that determines their loyalty to different brands. The Orange manager explained that the integration call and internet services brands enhance the loyalty of customers towards these products. He also explained that their price policies favor these brands and impacts well on their customers. The Safaricom and Airtel managers explained that the maintenance of quality in their brands ensures customer loyalty. The Safaricom manager proceeded to give the quality of their call service as very customer friendly. The Yu manager maintained that cheap call rates ensure that customers remained loyal to the brand. According to research conducted by Kiberen, Musiega & Juma (2013, p. 87) in Eldoret town, pricing and quality are the primary factors considered by customers. Although the strategies of branding are different in the four firms, both the literature and the interviews show that prices and service quality are the main factors influencing brand loyalty.
1.6 To what extent does brand management influence customer loyalty in the Kenyan mobile telecommunications industry?
The interview results with the four managers revealed that brand management has a significant influence on the loyalty of customers to their firms. The four customers nodded to this argument. The customers said that they remained loyal to the brands that favored the satisfaction of their need. The Yu manager argued that the number of customers using various brands of their services varies. She gave the example that the number of people using their call service is higher than the number of those using the internet brand. The Orange and Airtel managers said that their internet brands had considerably high number of customers. The Safaricom manager answered that variance in brands shifts the loyalty of customers to particular brands.
According to Kapferer (2008, p. 125), the way that a firm manages its brands has much influence on the loyalty of a customer to the firm. It is, for this reason, the duty of the firm to ensure that their products suit the needs of the customer. The literature and the findings of the interviews agree that brand management is very crucial in determining customer loyalty. In conclusion, the loyalty of customers in the telecommunications industry depends on brand management.
1.7 Conclusion
In summary, the interviews revealed that the telecommunications industry is very competitive as every firm strives to maximize its number of customers. The factors that influence customer loyalty to the network providers include quality of service, pricing and customer relations.
The strategies used by the Kenyan Network service providers to retain the current clients include offers, innovative products, current and flexible products. The primary strategy used by companies to acquire new customers is marketing of various brands and services. The factors that influence brand loyalty among customers in the Kenyan mobile telecommunications industry include the price and quality of the brand. Brand management influences customer loyalty in the Kenyan mobile telecommunications industry in the sense that firms have the obligation of ensuring that their products favor the needs of their customers.
1.8 References
Berry, L. (1995). Relationship marketing of services—growing interest, emerging perspectives. Journal of the Academy of marketing science. 23 (4), p. 236-245.
Berry, L. (2002). Relationship marketing of services perspectives from 1983 and 2000. Journal of relationship marketing. 1 (1), p. 59-77.
Dick, A. & Basu, K. (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the academy of marketing science. 22 (2), p. 99-113.
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management. 7 (4), p. 27-42.
Kapferer, J., (2008). The new strategic brand management: creating and sustaining brand equity long term. London: Kogan Page.
Kiberen, W., Musiega, D., & Juma, S. (2013). Influence of Brand Management on Rivalry for Consumers in the Mobile Telecommunication Industry. European Journal of Business and Management. 5 (15), p. 83-93.
Njuguna, V. (2012). Competitive strategies adopted by Safaricom Kenya limited to tackle competition. PH.D. Theses: University of Nairobi.
1.1 Factors That Influence Customer Loyalty To Your Network Provider?
The mobile telecommunication in Kenya is currently experiencing unprecedented competition. Unresponsive mobile telecommunication firms are therefore likely to lose their customers in the scramble by others to expand their customer base. The major mobile telecommunication firms in Kenya are Safaricom, Airtel, Orange and YU Mobile. To study the factors that influence customer loyalty in the industry, firm managers and customers were interviewed. The interview results with the 4 managers revealed that service quality is the main factor that contributes to customer loyalty in the Kenyan mobile telecommunication sector. On the other hand, the four customers interviewed were of the opinion that customer loyalty is greatly influenced the image a mobile telephony company has created in the competitive industry. The Safaricom manager interviewed opined that his company became the market leader in Kenya because of superior value services. The manager added that Safaricom attracts and retains its clients mainly by its Value Added Services (VAS). The Airtel manger interviewed said that barriers to switching users that Safaricom uses have made it quite difficult for its customers to switch to cheaper providers such as Airtel, Orange and Yu. The Orange and Yu managers agreed to the statement by the Airtel Manager.
The interviews also revealed that customers are discouraged by unprofessional and rude customer service or call centre staffs. Because of poor etiquette and lack of response from customer service representatives, many customers easily shift from one provide to another. The interviews with the customers showed that in most cases, calls to customer service representatives are rarely answered, leaving the customers with no options but to try new providers. Unfortunately, it seems to be the norm in the industry that customer representatives do not work to the expectations of their customers (Storbacka, Strandvik, & Gronroos, 1994).
1.1 The Strategies the Kenyan Network Service Providers Use to Retain their Current Clients
To retain current customers, mobile telecommunication firms in Kenya should implement several strategies. First, the firms should review and improve the quality of their services. For the mobile telephony sector, better services imply improved reliability, accessibility, performance and serviceability (Moloney, 2006). It is also recommended that mobile telephone companies performing poorly in the market improve their brand image. Brand image can be improved through more intense marketing and corporate social responsibility. The role of the government in assisting mobile telecommunication firms achieve customer loyalty is equally important (Kihara & Ngugi, 2014). For instance, the government can develop regulatory mechanisms that eliminate or reduce switching barriers. Once these barriers are reduced or eliminated, it would be easier for customers to change loyalty, depending on the quality and the cost of services offered. In addition, the government can provide better infrastructure (Kihara & Ngugi, 2014). Mobile telecommunication firms should also ensure that their customers’ issues are solved as soon as they are reported (Moloney, 2006). Otherwise, a firm may lose its customers to its competitors in the industry.
1.3 Strategies by the Kenyan Network Service Providers to Acquire New Clients
To attract new customers, the mobile telephone service providers in Kenya should first improve their services, especially network strength, clarity and coverage. Once the networks are improved, the firms should initiate and implement campaign or marketing drives to publicize their services, each portraying itself as the best and preferred service provider in the sector (Kihara & Ngugi, 2014). Corporate Social Responsibility is the other strategy by which mobile telecommunication service providers in Kenya can attract new clients. CSR helps companies have a good public reputation, endearing them to the public.
Observably, in Kenya, Safaricom ranks highest in CSR compared to its competitors, giving it a competitive edge over the others (Kihara & Ngugi, 2014). Hence, the other players in the sector should take cue and engage in similar CSR campaigns. What is more, to attract new clients, mobile service providers should ensure they keep in touch with the ever-changing needs and tastes of the local market. Lagging behind in satisfying customer needs would imply a provider loses out on the younger generation with needs and tastes quite unlike the older generation’s tastes (Kihara & Ngugi, 2014). Moreover, the services must be relevant to the target customers. Flexibility and innovativeness would also be quite effective in attracting new customers who prefer new and more creative and interesting products.
1.2 Factors That Influence Brand Loyalty among Customers in the Kenyan Mobile Telecommunications Industry
The interview outcomes are similar to the findings of a study entitled ‘Factors Influencing Customer Loyalty in Telecommunication Industry in Kenya,’ by Allan S. N. Kihara and Gordon K. Ngugi, both of Jomo Kenyatta University of Science and Technology. Kihara and Ngugi (2014) established that service quality, value added services, brand image, and switching barriers are some of the key factors affecting brand loyalty by customers in Kenya’s mobile telecommunication sector. The findings of the interviews thus concur with the findings of the literature review conducted in the present study in that both identified service quality and value added services as the main factors affecting customer loyalty in the mobile telecommunication industry.
1.3 The Influence of Brand Management On Customer Loyalty in the Kenyan Mobile Telecommunications Industry
Brand management is also a key factor influencing customer loyalty. Thus, it is the duty of every firm to ensure its customers and the public perceive its products as superior to its competitors’ products. Once a product is portrayed as of superior quality, the expectations of the customers on the product also become higher (Kihara & Ngugi, 2014). Hence, mobile telecommunication firms must manage the brand image attained by ensuring the products exceed the high customer expectations. The firms must also have a positive corporate image, which translates into good brand image.
1.4 Conclusion
The interviews revealed that the Kenyan telecommunication sector is quite competitive with all key providers outdoing one another to attract and retain customers. The study identified several factors as instrumental in achieving customer loyalty. These factors are service quality, value added services, Corporate Social Responsibility (CSR), customer service, switching barriers and brand image. To attract and retain their customers, the Kenyan Network service providers should engage in more CSR, marketing campaigns and improve their customer relations services. Importantly, the mobile telecommunication firms should improve the quality and the coverage of their services. To attract new customers, the firms should be flexible and innovative enough to cater for both old and new generation clients. That is, the services must address the divergent tastes and needs of clients of different socioeconomic, cultural and generational statuses. The factors that influence brand loyalty among customers in the Kenyan mobile telecommunications industry include fair prices that motivate clients to increase their purchase and their likelihood to return.
References
Kihara, A. S., and Ngugi, G. K. (2014) “Factors Influencing Customer Loyalty in Telecommunication Industry in Kenya.” International Journal of Social Science and Entrepreneurship, 1(2); 1-16.
Moloney, C. X. (2006) “Winning Your Customer’s Loyalty: The Best Tools, Techniques and Practices.” AMA Workshop Event(s).
Storbacka, K., Strandvik, T., and Gronroos, C. (1994) “Managing Customer Relationships for Profit.” International Journal of Service Industry Management, 5(5): 28.
[supsystic-tables id=4]
students will review President Barack Obama’s law review entitled “The President Role in
Advancing Criminal Justice Reform” see the link below. Please prepare to formulate a proposal
basedon a prevention or intervention program for responding to a grant by creating a cogent
problem statement.
http://harvardlawreview.org/2017/01/the-presidents-role-in-advancing-criminal-justice-
reform/
Advisement
As indicated with the course syllabus, students are required to meet with the instructor
to receive academic advisement and work on career development and professional
development opportunities. The instructor will organize this process to expedite
advisement for graduation.
Assignment: Points:
1st Activity 10
Writing Assignment 10
Oral Presentation 10
Weekly Journals 65
Professional Attainment and
Career Development
5
Total 100
Assessment and Grading
Students within the course will be required to complete a variety of activities that
include that will assess their competency in the subject matter of Juvenile Justice
Administration and Management through prevention and intervention
This is a graded discussion: 10 points possible
due Mar 16
1.6: First Activity
No unread replies.No replies.
Due March 16, 2024, 11:59 pm
Describe in detail what legal and/or ethical dilemma means to you as an independent researcher. For this section, the maximum/minimum word count is 150 words. Then, describe a program you would like to propose in the form of a proposal (Grant) to address the perceived legal or ethical dilemma in 150 maximum/minimum word count.
Requirements:
Word Count no more than 300 words max/minimum.
You must reference the President Obama Law review in your response.
A statistical delineation is a must.
APA must be followed
Do not upload as a document, must be written in a discussion form
I have been affected severally with late delivery of assignment but since I hired an EssayBark writer, my assignment reaches me before the expiry of the agreed deadline. Some tasks proved to be difficult since they required me to express my original ideas after carrying out an extensive research. This used to give me sleepless nights and occasionally used to turn down my friends invites to parties. However, EssayBark.com came at a time I needed them most and their services proved to be of high quality.
If it were not for EssayBark.com, I don't think I would be where I am today. 90 percent of my success came from this company and I can say without any fear of contradiction that they are the best essay writing company in the whole world.
Nothing seemed to work my way until I hired EssayBark.com. I can now confidently say that I enjoy my Environmental Science Course because the ideas provided by the writers have simplified all the technicalities of the subject. It seems that your writer understood the subject well. I believe she has a doctorate in the subject. Thanks to all of them for treating me personally.
Johannesburg, South Africa
Since I started hiring EssayBark.com I learned that investing in your future is more important than any monetary investment. The knowledge provided in my political science essays by your writers helped me defend my thesis professionally in front of my teachers. I am highly obliged to your writers.
I sometimes lack words to describe how happy I am since I met you guys. You are a gift to many as the essays provided by your writers are original, accurate, and timely.
Meeting EssayBark.com, to me is fate. I had never dreamt of getting an A in my English literature course but you made my dream come true. Thank you so much.
Since I started working with Essaybark.com life has never been the same again. I can comfortably say that my grades have greatly improved and I no longer have to worry about failing.
My experience with Essaybark.com was one of a kind. They completely erased all my worries and as per now, I feel like am a master of all difficult topics which used to give me sleepless nights. Thanks a lot for opening my eyes.
When I decided to join MBA, I wasn’t sure how I was going to handle those essays which required creative writing skills because I was literary very poor in it. However, my problem was solved by Essaybark.com. Apart from helping me with my assignments, they gave me free advice on how to polish my writing skills. My future is now bright all thanks to Essaybark.com.
My worry with most companies offering writing services had been originality but since I started engaging Essaybark.com, all I get is quality and original work, delivered within the specified time frame. If you are looking for quality and non-plagiarized work, I recommend this site for you.
[wpadm-chat]