Determinants of Customer Retention: In the case of Medical Device and Pharmaceutical Import Companies Addis Ababa.

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The purpose of this research is to assess the factors that influence customer retention in Medical device and Pharmaceutical import companies in Addis Ababa. Customer retention has been little studied in this sector. The study assessed the effect of customer satisfaction, price, quality, switching barrier, and firm size effect on customer retention. The sample of the study consisted of 240 customers from six selected importers in Addis Ababa. Five point Likert scale questionnaire was developed and used for data collection. Descriptive analysis, Pearson correlation analysis done and regression analysis was carried out using SPSS statistical tool. The response rate was 89.58%. The correlation between customer satisfaction, Price, Quality, Switching barrier and firm size with customer retention was positive and statistically significant (0.01).The findings of the study revealed the influence of customer satisfaction, price, quality, switching barrier and firm size on customer retention. These conclusions were made within the selected import companies. Based on these findings, a recommendation that stressed on customer retention in Medical device and pharmaceutical import companies has been forwarded.



Customer retention, customer satisfaction, Switching barrier