Relationship between communication and customer loyalty in the small and medium enterprises sector

Abstract

This paper examined the influence of communication on customer loyalty in SMEs in Tanzania. The study used relationship marketing theory and behaviourist theory to determine the influence of communication on customer loyalty in SMEs in Tanzania. Customers from bars, hair salons, and kiosks in Dodoma Urban City participated in the survey because these SMEs are important for the development of the economy of Tanzania. Convenience sampling was used to obtain the sample size of 288 respondents. The study data was obtained from customers using questionnaires. The questionnaires were self-administered to customers of bars, hair salons, and kiosks to gather data. Regression analysis was employed to test the study hypotheses. The findings showed that communication significantly influenced customer loyalty. The study therefore concludes that the application of communication improves customer loyalty in SMEs in Tanzania. The study recommends that SME owners should improve their communication skills to better communicate with their customers.