ASSESSING BRAND SWITCHING BY CUSTOMERS IN THE TELECOMMUNICATION INDUSTRY IN GHANA (A CASE STUDY OF KUMASI)

Abstract

Consumers, no matter how geographically inclined they may be have individual preferences and reacts differently. The regulation of the telecommunication industry by the NCA and the increase demand for telecommunication services in Ghana has led to new entrants into the telecommunication industry. Because of the increasing growth of the Ghanaian telecommunication industry, foreign firm are engaging in the service industry of the country to reap in on the potential benefits it may present. One can talk about companies like Vodafone, Airtel among others. The growth of the Ghanaian service industry has led to an increased competition resulting in switching by its subscribers. This research looked at assessing brand switching by customers in the telecommunication industry in Ghana and it is based on Keaveney’s 1995 study on service industries. The study was done in Kumasi and 250 respondents were sampled on the basis of convenience and cluster sampling and the cluster were conveniently grouped into Suame industrial area, Kejetia, Adum and the various university campuses. Questionnaires were the main research instrument used in collecting the data. Various literatures were reviewed and all attempts were made to link the literature to the study. Five (5) service providers in Ghana (MTN, Vodafone, Tigo, Airtel and Glo) were considered in relation Susan Keaveney’s findings. After analysis of data it was revealed that the major factor affecting customer switching behaviour is inconvenience and price of calls, low network coverage, unreliable service and bad voice clarity. Although respondents from the informal sector were few for this study it was also revealed that they switch more than those of the formal sector as a results of issues of pricing and core service failure in the telecommunication industry in Ghana.It is therefore recommended that the network providers should make issues of service vi lapses their main concern instead on bringing innovative service to attract new customers thereby having a competitive advantage.