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Sales Promotion and Consumer Loyalty: a Study of Nigerian Tecommunication Industry

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Sales Promotion and Consumer Loyalty: A Study of Nigerian Tecommunication Industry
Oyeniyi Omotayo

Abstract In today’s competitive business world customers are considered to be kings. Customers have several choices to make among alternative products, and they exercise a high level of influence in the market with respect to product size, quality and price. Hence, it is important for producers to meet the needs of customers in order to stay competitive. One of the marketing communication tools that is used in attracting the attention of the customer and build their loyalty is sales promotion. The aim of this paper therefore is to determine the effect of sales promotion on customer loyalty in the telecommunication industry. In this study, the survey method was used in gathering information from the respondents. Simple random sampling was used to select a sample size of 310, while descriptive and inferential statistical analyses were conducted with the aid of SPSS software. Producers spend a large part of their total marketing communication expenses on sales promotion. Hence, this paper attempts to find the effect of sales promotion on customer loyalty using a sample of customers of mobile telecommunication services. The paper found that, there is positive relationship between sales promotion and customer loyalty. More importantly, it was discovered that non-loyal customers are more prone to switch to competing products as a result of sales promotion than loyal customers.
Key words: Sales Promotion, Customer Loyalty, Switching, Telecommunication, Nigeria

1. INTRODUCTION
In Nigeria, the telecommunication sector is highly competitive and telecom operators attempt to appeal and win customers through various sales promotion strategies. The Nigerian telecom industry is entering its maturity phase, with reducing average profit. With fierce competitive telecom

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...Table of Contents Task 1. Critical Evaluation of Key Concepts and Theories 2 1.1 Literature Review on Customer Experience (CE) & Customer Loyalty (CL) 2 1.2 Creating a favourable CE & Strong CL based on Conceptual Framework 2 1.3 Linkage between Customer Experience Vs Customer Loyalty 4 1.4 Conclusion 5 Task 2. Application of Key concepts and Framework 5 2.1 Cooperate Profile / background 6 2.2 Review of existing CE & CL 6 2.3 Recommendation for Improvement for Weakness 7 2.4 Recommendation for sustaining the Customer Loyalty 8 2.5 Conclusion 9 References 10 Task 1. Critical Evaluation of Key Concepts and Theories 1.1 Literature Review on Customer Experience (CE) & Customer Loyalty (CL) Given the competitive landscape today, organization are leveraging their differentiation and competitive advantages not only the innovative products and low prices, better quality but also customer experiences (CE). This experience factor has been defined in numbers of ways. Customer experience is originated from a set of interactions between a customer and a product, a company or a part of its organization which provokes a reaction (La Salle and Brittion, 2003; Shaw and Ivens, 2005). Meyer and Schwager 2007 see it as internal and subjective response that customers have to contact directly or indirectly with the company. Greval et al (2009) also discussed that it include every point of contact at which the customers interacts with the business,...

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