The effect of Network Quality on Customer Retention Among mobile phone users in public Universities of Western Kenya Region

Abstract

Customers have become more sophisticated and they are enjoying more alternative options of brands, for any organization, either it’s a public sector; private sector or semi-public, there is a need to understand what kind of service or products it offers, and for whom. Despite tremendous growth, telecommunication industry has continued to record an increase in the number of unsatisfied subscribers. The purpose of this study was to investigate the effect of Network Quality on Customer Retention among mobile phone users in public Universities of Western Kenya Region. This study was guided by the social exchange theory which focused on the fundamental principle that humans in social situations choose behaviors that maximize their likelihood of meeting self-interests in those situations. In taking such a view of human social interactions, social exchange theory includes a number of key assumptions for example; social exchange theory operates on the assumption that individuals are generally rational and engage in calculations of costs and benefits in social exchanges.  Explanatory research was utilized in this study. The target population of this study was geographically located in Public Universities in Western Kenya Region. A sample size of 250 respondents was sampled from the population. Primary data was collected using a questionnaire. Data collected was analyzed by use of descriptive and inferential statistics; specifically regressions were used to test the hypotheses. There was need to use a multiple regression analysis so as to determine the effects of each of the variables on customer retention.  Statistical package for social sciences (SPSS) version 17 was used to ease the analysis. Analyzed data were presented in tables. The results reveal that Network quality had negative relationship with customer retention. The study recommends that service providers should identify critical network quality which can help in creating sustainable relationship. The service providers should involve users in designing the appropriate network quality. The study provides new theoretical insight into factors influencing customer retention. Further research should be simulated to other service industries. Future researchers may use other models such structural equations among others to test the hypotheses.

Keywords: Network, quality, customer retention, mobile phone, Users