Factors influencing mobile service satisfaction and loyalty in Ghana: A rural urban comparison

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Since the introduction of mobile number portability in Ghana, mobile network operators (MNOs) have been challenged to retain customers as defection rates continue to rise. Currently, MNOs use competitive price strategies which constrain industry profitability and brand sustainability. To determine how MNOs can reduce dependency on competitive price strategies, the study examined: (1) the factors that drive satisfaction, (2) the relationship between satisfaction and loyalty, and (3) the effect of subscribers’ profiles on satisfaction and loyalty. With the concurrent mixed method, data were collected from 178 mobile subscribers in a rural and urban area. Data were analyzed using Spearman’s rank-order correlation, multiple linear regression, and binary logistics regression. The results showed that there is a positive relationship between satisfaction and loyalty; such that satisfied subscribers were 4.8 times more likely to be loyal than dissatisfied subscribers. Service quality, price, brand image, and customer care drove the satisfaction of urban (quality-conscious) subscribers while price and service quality drove the satisfaction of rural (price-sensitive) subscribers. Also, quality-conscious subscribers were more likely to be loyal than price-sensitive subscribers. The study concluded that MNOs in Ghana could reduce their dependency on competitive price strategies by (1) investing in customer satisfaction, (2) prioritizing penetrating specific localities, (3) matching price-based products with service quality, (4) retaining and acquiring split loyalists, and (5) using value-added services to create positive switching barriers.
Thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administrations, April 2018
satisfaction, loyalty, telecommunications, service quality, brand image, price perception, Ghana