Key Elements of Customer Trust towards Retaining Customers of Telecommunication Companies in Tanzania

Abstract

This study assessed how customer trust affects customer retention in tele communication companies in Tanzania. Using logistic regression, 120 ques tionnaires were analysed. Results revealed respondents were not satisfied with sustainability operations (83.3%), keeping promises (90%), best tele com services (84.2), business performance (83.3%), stable authority and man agement (82.5%). The percentage of correct predictions of variables ranges from 80% to 90%. Besides, values of Nagelkerke’s R-square show the ability of independent variables to account for variation in the dependent variable from 0.050 to 0.193. Additionally, results from the chi-square analysis were only statistically significant for the variable age on the sustainability of op erations for age (0.01) and time (0.02). The logistic regression coefficient shows that time effects operation sustainability negatively by 0.65. For keeping prom ises, predictor age affected the model negatively by 0.07. Moreover, for tel ecom services, predictor variables such as gender and income affected the model positively by 0.19 and 0.07, respectively. Regarding business perfor mance, age and education negatively affect the model by 0.39 and 0.49, re spectively. Furthermore, on stability of authority and management, predic tor variable gender positively affects the model by 0.23. Thus, telecommu nication companies must ensure customers trust their operations, services, business performance, and management framework to enhance customer re tention.