Customer retention in the Nigerian mobile telecommunication industry

Abstract

The massive growth rate in the mobile telecommunication market has led to a strong competition among the GSM service providers. As such the importance of retaining a customer via quality products and services by an organization cannot be overemphasized. This requires that service providers engage in marketing activities that would enable them to retain their customers, especially as the market is becoming very saturated and with little opportunity to attract new customers. The main objective of this study, therefore, was aimed to identify the antecedents that determine customer retention in the Nigerian mobile telecommunication industry in order to fill a research gap particularly in the Nigerian context. The variables used in this study as well as both the conceptual and theoretical frameworks were influenced by the expectancy disconfirmation theory (EDT). A quantitative method approach in line with the positivist philosophical view was used at all stages of data collection, analysis and results. Relevant information was collected from some respondents that use any or some of the mobile phone services of the telecommunication companies in Nigeria. The data collection instrument is based on the literature review through a survey questionnaire distributed in Kano state, Nigeria. The Structural Equation Modeling (SEM) as a quantitative tool was used to test the variables among which interrelated relationships were developed. The result of the study indicates that customers are more likely to be satisfied when they perceive the service delivered to them to be of good quality. It was also revealed that the perception of quality service will result in customers feeling that they are getting value out of their consumption. The positive perception of value and satisfaction will then result in loyalty. Ultimately, the feeling of attachment and belongingness to the service provider (loyalty) will lead to retention of the customer. Recommendations based on research findings and best global practices were offered.