Customer Retention: Behaviour Perspective Model of Ghanaian Telecommunication Industry Using Multinomial Regression Analysis

Abstract

To stay competitive, the mobile telecommunication companies spend millions of Ghana cedi each year on building long-term relationships with their customers. Marketing managers are constantly challenged with the problem of where to channel the limited resources in order to retain existing customers. This study approaches the customer retention problem in the mobile phone sector from a behavioural perspective, applying the Behavioural Perspective Model as the main analytical framework and further exploits some other factors that influence customer retention. The model includes a set of pre-behaviour and post-behaviour factors to study consumer choice, and explains its relevant drivers in a viable and comprehensive way, grounded in radical behaviourism. Data for the analysis were collected from tertiary students from Accra and Takoradi. Data collected were analysed using the multinomial regression technique. Analysis of the data revealed that the Behaviour setting factor is the only significant element in Behaviour Perspective Model. Further exploitation of behaviour situation revealed that the number of networks a customer uses, previous experience of a customer and customer’s intention are significant factors in determining customer retention in Ghana’s mobile telecommunication industry.