Factors Affecting on Customer Retention in Mobile Telecommunication Industry in Sri Lanka

Abstract

It is obvious that customers are important stakeholders in organizations and their retention is a priority to the business. From the years, mobile telecommunications industry is evolving drastically by creating utmost competition resulting an increased level of customer penetration throughout years. Maintaining existing customers are less costly than acquiring new customers, thus this study is focused to identify factors affecting on customer retention and measure the impact of each identified factor on customer retention. Based on the literature, network quality, customer experience and perceived price are important factors that decides the level customer retention. Primary data were collected through survey method and sample techniques applied was convenience sampling and sample size is 384. The developed hypotheses were tested using Multiple Regression analysis in SPSS. All the hypotheses were accepted proving that network quality, customer experience and perceived price have a significant impact on the level of customer retention.