Relationship Between Distribution Channel Innovations And Customer Satisfaction In The Telecommunication Industry In Kenya: A Case Of Safaricom Plc

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Date

2023-10

Journal Title

Journal ISSN

Volume Title

Publisher

School of Business and Economics, Daystar University

Abstract

ABSTRACT In today’s market, the lack of innovation in distribution is counterproductive to customer satisfaction and organizational performance. The purpose of this study was to investigate the relationship between distribution channel innovations and customer satisfaction in the telecommunication industry in Kenya, with a focus on Safaricom Plc. The objectives of the study were to establish the distribution channel innovations adopted by Safaricom Plc, assess customer satisfaction at Safaricom Plc, and examine the relationship between distribution channel innovations on customer satisfaction at Safaricom PLC. A descriptive research design was adapted and targeted Safaricom PLC.’s employees, dealers and agents. A stratified sampling technique was used to select a sample size of 376 respondents and questionnaires were used in data collection. Descriptive statistics and inferential statistics were used in data analysis. The study established that the distribution channels innovation adopted included adaptability (84%), information sharing (86.6%), distributor collaboration (85.3%), and cost leadership (86%). Safaricom PLC enhanced customer satisfaction through on time in full delivery of services (86.3%), monitoring lead time to delivery (85.7%) and collaborating with customers to tailor their services and product to customer needs (88%). The study exhibited a positive relationship between distribution channel innovations and customer satisfaction (adaptability; beta= 0.064, p=0.00, information sharing; beta=0.137, p=0.01, distributor collaboration; beta=0.177, p=0.001 and cost leadership; beta=0.261, p=0.00). The study concluded that distribution channel innovations were adopted by Safaricom PLC to a high extent and this positively influenced customer satisfaction. The study recommends that Safaricom and other profit oriented organizations should use a combination of more than one channel innovation approaches .

Description

Masters Thesis

Keywords

Innovations, Customer Satisfaction, Telecommunication Industry, Kenya, Safaricom Plc

Citation

Monicah W. M,. (2023, Thesis) Relationship Between Distribution Channel Innovations And Customer Satisfaction In The Telecommunication Industry In Kenya: A Case Of Safaricom Plc.School of Business and Economics, Daystar University