MTN Mobile Money Services and Customer Satisfaction in Lira City

Abstract

ABSTRACT The purpose of this study was to examine the effect of MTN Mobile Money Services on customer satisfaction in Lira City. It focused on MTN mobile money services as a case study. The objectives of the study were to investigate the effect of Mobile Money Service quality on customer satisfaction in Lira City; to investigate the effect of Mobile Money Service charges on customer satisfaction in Lira City and to examine the contributing factors for customer satisfaction with Mobile money services in Lira City. The study is believed to be of help in informing the regulatory body of mobile money services on the best ways of improving the policy regarding the operation of mobile money services in Uganda. The cross-sectional design was used and quantitative and qualitative approaches were adopted. The study sample of 286 respondents which generated a response rate for quantitative and qualitative data was 90.6% and 80%, respectively. Data was collected using a Five-Likert scale questionnaire and interview guide and later analyzed using SPPS computer software. The study findings revealed that MTN mobile money quality significantly affects customers' satisfaction in Lira City; that MTN mobile money charges have a significant negative effect on customers' satisfaction; and that location coverage for MTN mobile services and ease of operation for MTN mobile services does not satisfy customers; but having many MTN mobile agents, availability of MTN mobile shops, and MTN network coverage are the contributing factors for MTN customers' satisfaction in Lira City. The study concludes that MTN mobile service quality positively and affects customers' satisfaction very strongly in Lira City; that higher MTN mobile money charges negatively affect customers' satisfaction in Lira City; and that location coverage and ease of operation for MTN mobile services do not satisfy customers; but having many MTN mobile agents, availability of MTN mobile shops, and MTN network coverage are the contributing factors for MTN customers' satisfaction in Lira City. The study recommends that MTN should improve on all the elements of responsiveness and reliability; that MTN should be mindful of the affordability of service rates that would encourage its customers to continue using mobile money services; and that MTN should endeavour to improve its location coverage, especially for lowly landscapes and also ease their operation to boost customers' satisfactory. Further studies can be made on "factors that are limiting the absorption of the cashless transaction using MTN mobile services"; and "the demographic conditions that present opportunities for MTN growth in a cashless economy" Keywords: Mobile Money Services, Customer Satisfaction, Lira City