The perception of Customers on Digital Transaction fees in Tanzania

Abstract

This study investigated on the perception of customers on digital transaction fees in Tanzania. a case of telecommunication companies in Arusha city. The study had the following specific research objectives: To assess the digital transaction operations in telecommunication companies, to examine the digital transaction fees in telecommunication companies, to determine the effect of digital transaction fees variations to the customers, to examine a standard rate that each digital transaction should be charged in telecommunication companies. This study used descriptive survey research design that provides a quantitative or numeric description of trends, attitudes, or opinions of a population by studying a sample of that population. The researcher chose the descriptive research design so as to collect the respondents’ own experience. The design was used to explain the existence of two or more variables at a given point. The findings of this study indicate that the digital transaction has helped all levels of economy including the low- level economy individuals. The findings have denoted that many of the customer appreciate this mode of transaction due to its secure infrastructure, it is convenient way to do transaction and can be easily adopted. Although there is this satisfaction, the findings also denoted that digital transaction fee has not satisfied the customers, the findings indicate the feeling that the fee charged is high and it is an issue to be reviewed by the authorities. The findings indicate the negative effects of high digital transaction fee where the customer tend to develop negative attitude toward such a model of transaction. And as a result the customer move from one Communication Company to another in an effort to find a better service. It was concluded that the digital transaction is a service that is appreciated by many especially the business individuals due to its security, adoptability and that the service is convenient in its own way. As the findings denote, though the service is good and appreciated by many, but the transaction fee charged is high and many customers have complained and asked for the change. The fee charged become even worse when the transaction is done across companies. It has been noted from the findings that there is a negative effect developed by high digital transaction fee charged to customers. They tend to reduce trust due to the high fee charged, this also leads to company losing customers as they move from company to another seeking better and affordable service. Recommendations were made that due to the fact that we are having many communication companies, there should be the same rate charged across companies, the fee charged should be fair to develop both the company and customer in the business level. As the world of business grows the digital transaction mode of payment is a significant factor to the development of business and vii so the companies should avoid with all cost the factors which may lead to development of negative attitude toward this mode of payment