An Extensive Analysis of the Effect of Brand Loyalty on Brand Preference in Airtel Tanzania

Abstract

Amid intensifying competition that has seen Airtel Tanzania’s market share decline from 28 percent in 2023 to 25.8 percent in 2024 (TCRA, 2024), this study assesses how attitudinal and behavioral dimensions of brand loyalty influence brand preference. Drawing on Aaker’s Brand Equity Theory and Attitude-Behaviour Consistency Theory, two hypotheses were posited:H₁: Attitudinal loyalty positively affects brand preference.H₂: Behavioral loyalty positively affects brand preference. A quantitative design employed structured questionnaires administered to 400 randomly selected Airtel customers across Dar-es-Salaam’s five municipalities. Instrument reliability was confirmed (Cronbach’s α = 0.85), and content validity established through expert pre-testing. Data were analysed with Structural Equation Modeling (SEM) in AMOS v.29. The measurement model satisfied threshold criteria (factor loadings ≥ 0.60; AVE ≥ 0.50). Overall model fit was acceptable (χ²/df = 2.17; CFI = 0.948; TLI = 0.936; RMSEA = 0.054; SRMR = 0.041), indicating robust construct validity. Path estimates supported both hypotheses: H₁ (β = 0.42, p < 0.001) and H₂ (β = 0.36, p < 0.001), jointly explaining 58 percent of the variance in brand preference. Attitudinal loyalty—reflected in favourable beliefs and emotional attachment—exerted the stronger effect, underscoring the strategic value of cultivating positive brand sentiments alongside repeat-purchase behaviour. Practical recommendations for Airtel Tanzania, Digital-centric initiatives, Personalised MyAirtel App rewards: Use AI-driven segmentation to deliver dynamic data bundles and micro-loans, reinforcing attitudinal engagement. Gamified loyalty dashboards: Badges, leaderboards, and referral trackers within the app to convert behavioural loyalty into advocacy. Omnichannel data analytics: Integrate USSD, M-Pesa, and social-media touchpoints to monitor churn signals and trigger real-time retention offers. Complementary traditional tactics are Neighbourhood agent empowerment: Equip airtime agents with instant-commission incentives and branded point-of-sale materials to sustain visibility among feature-phone users, Community-based events: Sponsor local football and entrepreneurship clinics to strengthen emotional bonds where digital reach is limited. By synchronising high-frequency digital engagements with face-to-face community outreach, Airtel can translate loyalty drivers into durable brand preference, countering market-share erosion and enhancing lifetime customer value.