ABSTRACT
This study assessed how customer
trust affects customer retention in telecommunication companies in Tanzania.
Using logistic regression, 120 questionnaires
were analysed. Results revealed respondents were not satisfied with
sustainability operations (83.3%), keeping promises (90%), best telecom services (84.2), business performance (83.3%),
stable authority and management
(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 operations for age (0.01) and time (0.02). The logistic regression coefficient shows that time effects operation sustainability negatively by 0.65. For
keeping promises, predictor age affected the model negatively
by 0.07. Moreover, for telecom services, predictor variables such as gender and
income affected the model positively by 0.19 and 0.07, respectively.
Regarding business performance, age and
education negatively affect the model by 0.39 and 0.49, respectively. Furthermore,
on stability of authority and management, predictor variable gender positively
affects the model by 0.23. Thus, telecommunication companies must ensure
customers trust their operations, services, business performance, and
management framework to enhance customer retention.