INFLUENCE OF CUSTOMER TRUST ON CUSTOMER RETENTION IN THE TANZANIA TELECOMMUNICATION INDUSTRY. A CASE OF THE VODACOM TANZANIA LIMITED COMPANY

ABSTRACT

This research focused on exploring the influence of customer trust on customer retention in the telecommunication industry in Tanzania. Specifically, the study intended to assess the influence of customer trust on customer retention in the Tanzania telecommunication industry. The study used an explanatory research design to search for a causal relationship between the selected variables in this study. The study used a questionnaire instrument to gather quantitative data. The quantitative data collected from the respondents ware used to test the study hypothesis and the model developed. A simple random sampling technique was used to draw a sample of 400 persons from Vodacom customers in Dar-es-salaam. The data collected were analyzed using structural equation modeling (SEM). The study revealed that customer trust has a weak relationship and a partial significant influence on customer retention. The study concludes by recommending that, since customer trust has a partial influence on customer retention, then the company needs to invest a little in campaigning the brand image, future purchase plans, price offers, and purchase process.

 

Key words: Customer Relationship Marketing  customer trust, customer retention.

Author
George Kanire, Dr. Emmanuel Tonya.