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