Understanding customer value as a driver for customer loyalty: The case of Airtel - Uganda
Abstract
251 words
The value concept has in recent times come to the forefront as many businesses and
institutions grapple with how to ensure customers adopt their products, technologies, services
and stay loyal without defecting to competitors. Customer value is a key concept in marketing
as well as operations management. This case study involves telecom industry where customer
loyalty determines the extent of the success and failure of products and services. Therefore,
this article focuses on customer value as a driver of customer loyalty and attempts to link
product and service attributes, product and service consequences, and customers interests.
It further discusses the perceived value hierarchies of Airtel’s services, like for example
price, convenience, and on time performance. This study sampled 384 respondents using
Disproportionate stratified random sampling method since there were two identifiable subgroups
of elements within the population with a composition of Airtel employees and
customers. Respondent interviews were used in the data collection process. A Likert scale
analysis was undertaken for the first level of descriptive data statistics. Regression analysis
of the data was then conducted using multinomial logistic regression techniques to analyze
predictors for an unordered group classification within the data. This study dissects customer
value as a key driver of customer loyalty, and shows the customer value factors of Functional
value and Price value as the most important among other factors examined. The study
further shows that telecom employees and telecom subscribers view the factors of functional
value, price value, emotional value and customer service value through different lenses.
Keywords
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