Relationship Marketing And Customer Loyalty In Mobile Telecommunication Industry In Nairobi, Kenya

Abstract

Relationship marketing is a strategy designed to build customer loyalty, interaction and
customer long-term engagement through provision of information and open
communication that suits customer needs. The broad objective of the study was to analyze
the relationship between customer relationship marketing and customer loyalty in the
mobile telecommunication industry in Nairobi, Kenya. The study employed a descriptive
survey design. The population comprised individual customers of the four mobile
telecommunication companies in Kenya. A sample size of 384 respondents was utilized.
Proportionate stratified sampling method based market share of each company was used.
Primary data was collected using a semi-structured questionnaire while descriptive
statistics and simple regression analysis was used to analyze the quantitative data. The
findings were as follows, quality of a service is subjectively perceived by customers during
the interactions with a firm and has critical impact on customers' evaluation of service
quality; effective communication of pricing policies as well as flexible pricing for various
services offered play a great role in customer loyalty; positive brand image makes it easier
for a firm to convey its brand value to consumers and also generates favorable customer
loyalty among people; Businesses operating in an intensely price based competitive
environment, dependent on high economies of scale and with low levels of staff-customer
interaction are bound to suffer shocks in their market positions and profitability, However
large investments on relational strategies like building trust, commitment, communication
and satisfaction can turnaround the shocks.