Effect of Customer Satisfaction on Customer Loyalty at Mobile Telecommunication Network (MTN) Ghana Limited

Abstract

In today’s volatile dynamic environment, top performing telecommunication companies are looking into the demands of their customers avidly in order to survive and compete successfully. Researchers have relentlessly emphasized on the utmost importance of customer satisfaction and customer loyalty as part of survival of most organisation. The aim of this study was to examine the effect of customer satisfaction on customer loyalty within MTN Ghana and the moderating effect of switching cost on the customer satisfaction and customer loyalty relationship. The study also sought to also determine factors that influence the purchasing decision of MTN customers. A quantitative method and self-administered questionnaire was used to investigate the problem. The study sampled 450 respondents by using a simple random sampling technique. Descriptive, Bivariate and standard multiple regression models were used for the analysis of the study. The analysis of the study clearly revealed call rates, widest coverage, quality of network and the use of the MTN network by family and friends are part of the factors that influenced the purchasing decisions of MTN customers for the choice of their network. The study also revealed that customer satisfaction is significantly and positively associated with customer loyalty. Despite limitations such as generalizability, the findings of this study provides evidence MTN Ghana needs to pay close attention to these strategies and fine-tuning them to reflect the existence of the time and also to measure their continued use and adaptation for an improved Customer Life Value.