Predictors of Customer Satisfaction and Loyalty in the Mobile Communication Industry in Ho Municipality, Ghana

Abstract

Aims: The objective of this research was to find out whether subscribers are satisfied with services of the mobile network providers and identify the predictors of customer satisfaction and loyalty in the mobile communication industry and to develop model that links these satisfaction factors and loyalty for any customer in the industry. Study Design:  Descriptive cross-sectional study design. Place and Duration of Study: Ho Municipality in Volta Region, Ghana, between July 2016 and September 2016. Methodology: We included sampled subscribers of the five mobile network operators (MTN, Vodafone, Tigo, Airtel and Glo) in the Ho Municipality. A total of 500 subscribers of the five mobile networks in the Municipality were selected for the research. The study employed a purposive sampling technique in selecting the subscribers located in various parts of the Ho Municipality in Volta Region, Ghana. Results: Logistic regression analysis was used to identify the predictors of customer satisfaction and loyalty. Results show that quite a significant proportion of respondents were satisfied with the services provided by the network providers in Ho Municipality. Furthermore, the study revealed that five (5) factors; “X1 (Perceived service quality)”, “X3 (Wide network coverage)”, “X4 (Network quality or Signal strength)”, “X8 (Availability of high-speed internet service)” and “X12 (Perceived price fairness or Call/SMS Rate)” were significant to the prediction of customer satisfaction and loyalty with a predicted satisfaction and loyalty rate of 80.15%. Conclusion: Mobile network providers should place a focus on delivering the best possible service quality as well as use advanced techniques to improve network quality and increase the network coverage to all areas in order to achieve better customer satisfaction and loyalty. Management of network providers should improve the service quality and make their services more economical so that customers can afford and have better value for money in using the service.