Mobile Value – Added Services’ Attributes and Customer Satisfaction: Evidence from Customers of Mobile Subscribers in Tanzania

Abstract

This paper assessed the influence of price, perceived quality and perceived value of mobile value–added services (MVAS) on customer satisfaction in Tanzania. Using questionnaires, the data was collected from 390 sampled mobile subscribers from 10 randomly selected wards in Dar es Salaam. Data was analyzed descriptively and inferentially to determine the effect of price, perceived quality and perceived value of MVAS on customer satisfaction. Findings indicate that, majority of respondents were of the view that customer satisfaction is highly influenced by the price of MVAS. Further, most of respondents were of the opinion that perceived quality of MVAS highly influence customer satisfaction. Likewise, respondents admitted that customer satisfaction is highly influenced by the perceived value of MVAS. Furthermore, price, perceived quality and perceived value of MVAS explain about 57.3% of the variability in customer satisfaction. The study concludes that price, perceived quality and perceived value of MVAS significantly and positively influence customer satisfaction. Perceived value of MVAS is the most significant attribute in influencing customer satisfaction, followed by perceived quality and price. It is therefore recommended that mobile service providers should improve and be more competitive in terms of pricing, quality and value of their MVAS. In this case policy makers in the telecommunication industry such as Tanzania Communications Regulatory Authority (TCRA) and relevant government ministries should create conducive business environment for service providers to provide best pricing, service quality and perceived value of MVAS so as to improve customer satisfaction.

Key terms: Mobile Value-Added Services, Customer satisfaction, Price, Perceived Quality and Perceived Value