Factors Influencing Customer Loyalty in Mobile Phones Communication Industry: A Structural Equation Modeling (SEM) Approach on Tanzanian Consumers

Francia Paul, Lixian FAN

Abstract


Tanzanian economy grows by 7.1% with the help of telecommunication sector. In recent years the competition between telecommunication companies was so intense to the extent of decline of some new entrant companies. Despite of high competition some telecoms companies strive and still operating. The success behind their existence lead to this research study, were we will investigate factors that lead to Customer loyalty in Mobile phone service provider companies in Tanzania. The online survey was used with 318 respondents from all over Tanzania to measure the antecedents of customer loyalty. Data was coded and analyzed by SPSS/AMOS 16 software. Equation model was proposed and tested with three dimensions which were service quality, customer satisfaction and switching cost. Findings show three positive and direct significant effects and one negative and indirect insignificant to customer loyalty.

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ISSN : 2251-1555