The Influence of Price on Customer Satisfaction Among Mobile Phone Users in Westlands, Nairobi
Abstract
Where as firms have continued to use price as their key strategy to increasing their
competitiveness in the market place and in growing their client base by attracting new
customers and maintaining the existing ones; other non price factors like perceived
product or service quality, value delivery, service delivery efficiency level, brand
perception, technological advancement and new innovations are continually becoming
very central in meeting consumers’ expectations and creating customer loyalty.
Delivering superior service and ensuring higher customer satisfaction have become
strategic necessities for companies to survive in competitive business environments. As a
result, and in realization of the negative ramifications caused by dissatisfied customers,
companies are increasingly making senior management accountable for ensuring high
degree of customer satisfaction. What customers think matters is satisfaction since
satisfied customers will be loyal and will bring repeat business. At the aggregate level,
there appears to be strong evidence that customer satisfaction is positively linked to
loyalty, revenue, and profitability. This is because, highly satisfied customers will be
more loyal and, hence stay longer and spend more on the company’s products and
services.
A descriptive research design was adopted in order to analyze the univariate variables
involved. Simple stratified random sampling technique was used in order to capture the
opinion of the study population of mobile phone customers in the different mobile phone
networks and the influence that price has on their consumption or purchase decisions.
The data collection tool was questionnaire that had both closed and open ended questions.
The data was analyzed using descriptive statistics with assistance of statistical package
vi
for social sciences (SPSS). Output was then presented in terms of pie charts, graphs,
frequency tables and reports.
The findings from the study was that price highly influences customers satisfaction
through offering increased competitiveness of the services offered by the mobile
companies, although other considerations like the efficiency of the services provided,
easy access to services, influence from family and friends, fast connectivity to internet,
availability of low denomination airtime vouchers, promotions, access to dealers and
agents, new innovations, customer service care centers locations, influence of advertising
messages, value addition services like money transfer services, also determine the level
of customer satisfaction and enhance customer loyalty to the mobile phone network.
Other marketing mix factors for example, a good understanding of the product and
availability of a wide range of services, a strong brand presence in the market and
marketing communication, and the presence of many dealers and agents and the customer
service centres, thus easier access to services and the effectiveness of the distribution
channels used; have a great impact on customer satisfaction and customer loyalty too.
The mobile companies commit a great deal of resources and time to customer satisfaction
in order to retain and attract new customers to remain in business and stay relevant
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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