| dc.description.abstract | Due to the increase in competition and increasing market liberalization, firms in the
telecommunications industry are facing a threat to the profit sustainability. As market
players’ increase and offerings diversify, the market share reduces causing decrease in
profit (Neto, Kenny, Janakiram, & Watt, 2005). Furthermore, customers’ preferences are
dangerously volatile and satisfaction of their diverse needs can prove arduous and the
heightened customer awareness results in search for better alternative offerings in the
market. As a result, customers may voluntarily switch from one vendor to the other.
The study adopted a descriptive study design. The population was ISP firms in Kenya
from which 10 large ISPs were selected. A total of 50 questionnaires were mailed to the
managers of these firms. Primary data was collected through structured questionnaires.
Data was analysed using descriptive analysis and regression analysis.
The study found that before customer make a decision to purchase or stay with a service
provider, they considered service uptime, network coverage, and customer service. The
regression results showed that product pricing, customer service, and service uptime had
negative but insignificant effects on firm performance while parent shareholding and
network coverage had positive effects on firm performance. The study concludes that the
factors influencing customer staying in a provider were service uptime, customer service,
and network coverage. The study also concludes that product pricing, customer service,
parent shareholding,network coverage , and service uptime do not have a significant
effect on firm performance. Thus the financial performance of ISPs in Kenya is not
influenced by the churn factors.
The study recommends that Internet Service Providers in Kenya should ensure that they
enhance the level of service uptime as this was a major factor that customers considered
before making a decision to purchase an ISP product or to stay with the same ISP. The
study also recommends that Internet Service Providers should have large network
coverage and not just limit themselves to a small or specific area to cover. Third, the
study recommends that Internet Service Providers should invest in a modern and efficient
customer care service that can provide solutions to customers who have issues with their
internet. This was an important purchase decision factor by customers. | en |
