A comparative study of customer loyalty in the mobile telecommunication industry in Ghana - the case of MTN and Onetouch

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The ability of mobile telecommunication operators to focus successfully on the customer has proven to be one of the most competitive issues in the 21St century. Several developments such as introduction of new technology, creative and innovative marketing strategies, new and varied products etc. embarked upon by the service providers have rendered the industry very competitive. In Ghana’s mobile telecommunication industry, customers switching from network to another or acquiring additional network(s) have become very prevalent. The phenomena brings to fore the need to investigate customers loyalty to their service providers. This research seeks to study comparatively customer loyalty issues between the two major mobile telecommunication companies (MTN and Onetouch) in Ghana. The study’s main objective was to investigate from subscribers’ perspective the issues that influence their loyalty to the service providers in the mobile telecommunication industry. The research techniques applied were both qualitative and quantitative. The main data collection instruments used was personal interviews and questionnaires. In all, a total of five hundred and forty (540) and two hundred and forty (240) customers of both MTN and Onetouch respectively were identified to answer the questionnaires. The research findings suggested that customers’ loyalty in the industry was dependent on service quality, voice call/SMS charges and cost of switching from one network to another. In line with the findings, it was recommended that service providers, especially MTN should make it charges a little affordable in order to maintain its customers. It was also recommended to Onetouch’s management to retrain its customer service officials in customer care. Further improvement in the speed of network access was also suggested to both service providers.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration, 2008