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CUSTOMER RELATIONSHIP MARKETING AND
CUSTOMER LOYALTY IN THE
TELECOMMUNICATION INDUSTRY IN NIGERIA
(A STUDY OF SELECTED NETWORK SERVICE
PROVIDERS)
ANYIONU SAMUEL CHUKWU
EBSU/PG/PhD/09/03520
BEING THESIS PROPOSAL PRESENTED TO THE
DEPARTMENT OF BUSINESS MANAGEMENT,
MARKETING AND ENTREPRENEURIAL STUDIES,
FACULTY OF MANAGEMENT SCIENCES, EBONYI
STATE UNIVERSITY, ABAKALIKI, IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE
AWARD OF DOCTOR OF PHILOSOPHY (PHD)
DEGREE IN MARKETING
SUPERVISOR: PROF FRED .O. EDE
SEPTEMBER, 2015
APPROVAL
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The research titled "Customer Relationship Marketing and Customer
Loyalty in the Telecommunication Industry in Nigeria" (A study of
selected network service providers) has been assessed and approved
by the postgraduate studies committees of the Department of
Management, Marketing and Entrepreneurial Studies and Faculty of
Management Science , Ebonyi State University, Abakaliki.
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Prof Fred .O. Ede K.C Nwekpa PhD
Supervisor Head, department of management
Marketing and Entrepreneurial Studies
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External Examiner S.C. Nwite Ph
Dean, Faculty of Management Science
CERTIFICATION
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This is to certify that this research titled customer loyalty in the
telecommunication industry in Nigeria: (A study of some selected network
service provider s) was carried out by Anyionu Samuel Chukwu with
registration Number EBSU/PG/Ph.D/2009/03520 under our supervisor in the
department of management , Marketing and Entrepreneurial Studies, Faculty
of Management Science, Ebonyi State University, Abakaliki
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Prof Fred .O. Ede K.C Nwekpa PhD
Supervisor Head, department of management
Marketing and Entrepreneurial Studies
DEDICATION
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This Thesis is dedicated to almighty God and my late parents, Nze Na Ozor
and Lolo Anyionu Nwachifu Nwachifuonu Nwegbo for their love for
education.
ACKNOWLEDGEMENTS
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First , I offer thanks to the Almighty God for the inspiration,
sustenance and guidance in completing this study. I am sincerely indebted
to various authors whose insightful views, ideas, postulations and works,
have contributed immensely in making this study a reality.
I unreservedly acknowledge with thanks the encouragement and
inspiration of my supervisor , Prof Fredrick O. Ede whose wide knowledge
and logical thinking have been very valuable to me. Also to be remember are
messers; Egele ……Ph.D Ozo, J.U Ph.D for their guidance constructive and
objective criticisms and invaluable professional contributions that led to the
completion of this study.
I would also appreciate with thanks. Other lecturers in the department,
especially Nwekpa, K.c. Ph.D, the head of department of Management,
Marketing and Entrepreneurial Studies for all their efforts and support
towards marking this programme a success.
I would like to express my appreciation to these lecturers for their
contributions and encouragement; Prof Ike-Elechi Ogba, Nancy Agha, Ph.D,
Udu, G.O.C Ph.D, Udu, Ama A. Ph.D, Prof .I.O.C Abara, the faculty
representative at the school of postgraduate studies and Nwite S.C Ph.D, The
Dean of faculty of management sciences .
Also, to be acknowledged is Mr. Okezie Obinna (3G) who typed and
arranged the manuscript. I am very thankful to all the respondents for
sparing their time to complete the research questionnaire. May the Almighty
God reward you all, who have directly or indirectly contributed in making
this programme a reality
ABSTRACT
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The telecommunication industry in Nigeria today is highly competitive and the ability to
develop and maintain long term relationship with subscribers has become a strategic
issue. one of the challenges confronting this sector is on how to manage their service
quality to satisfy the subscribers. The study examines Customer Relationship Marketing
and Customer Loyalty in the telecommunication industry in Nigeria , a study of some
selected network service providers’. The objectives of the study include; to investigate
the relationship between complaints handling and customer loyalty, to find out the
relationship between lower call rates and customer loyalty, to establish the relationship
between lower interconnectivity rates and customer loyalty and to determine the
relationship between bonus offer on calls and customer loyalty. The data used for the
study were obtained using a 5 likert scale. The questionnaires were administered by hand
and 351 of the questionnaires were properly filled and returned. The data obtained from
the survey were captured, coded and analyzed. The survey was conducted and restricted
to subscribers using the two network providers (MTN and ETISALAT). The hypotheses
were tested by employing the spearman–product moment correlation coefficient
(SPMCC) statistical tool which is facilitated by the statistical package for social sciences
(SPSS) version 17. The findings of the study revealed that there is no relationship
between complaints handling and customer loyalty with high level of significance,
meaning that it is insignificant, that there is weak relationship between lower call rates,
lower interconnectivity rate and bonus offer on calls. The level of significance in the
above three variables were below 0.05 meaning that they are significant to the study.
Subscribers will stay with their service providers as long as the firms are able to satisfy
their changing needs and meet customer requirements beyond their expectations. The
study recommended that the network providers should make some of the Customer
Relationship Marketing packages in existence to be more interactive and participatory for
better understanding of the subscribers. The network providers should carryout research
to identify the different needs of the subscribers. They should also make conscious effort
to create awareness of the customer relationship marketing packages to enable
subscribers know the benefits and losses accruing from such packages. They should
create new lines for busy subscribers to call agents that can assist them to address their
problem, they should develop new customer relationship marketing packages that will
attract , hold and maintain long term relationship with their clients , compare standards
with their actual performance to identify when innovation should be employed and to
make the policies and programmes understandable to their clients.
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TABLE OF CONTENT
Title Page i
Approval ii
Certification iii
Dedication vi
Acknowledgements v
Abstract iv
List of Figures ix
List of Table x
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 5
1.3 Objectives of the Study 7
1.4 Research Questions 7
1.5 Statement of Hypotheses 8
1.6 Scope of the Study 8
1.7 Significance of the Study 9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Review 11
2.2 Empirical Review 51
2.3 Theoretical Framework 63
CHAPTER THREE: METHODOLOGY
3.1 Research Design 68
3.2 Area of Study 68
3.3 Population of the Study 68
3.4 Sample Size Determination 69
3.5 Sampling Technique 70
3.6 Research Instrument And Data Collection Method 70
3.7 Sources and Types of Data 72
3.8 Reliability and Validity of Data Collection Instrument 72
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3.9 Methods of Data Presentation and Statistical Analysis 73
CHAPTER FOUR
4.0 FINDINGS / RESULTS
4.1 Analysis of Respondents Disposition to GSM Usage 78
4.2 Test of Hypotheses 168
CHAPTER FIVE
5.0 Discussion
5.1 Discussion on Objective/Hypothesis 175
5.2 Discussion on Objective/Hypothesis lower Call Rates
and Customer Loyalty 182
5.3 Discussion on Objectives/Hypothesis 3:
Lower interconnectivity rate (LIR) and customer loyalty (CL) 185
5.4 Discussion on Objective/Hypothesis 5:
Bonus Offer on Call and Customer Loyalty 185
CHAPTER SIX
6.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
6.1 Summary of Findings 189
6.2 Conclusion 191
6.3 Recommendations 193
6.4 Research Contribution to Knowledge 195
REFERENCES
APPENDIX: QUESTIONNAIRE
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LIST OF FIGURES
Figure I: A Service satisfaction framework 34
Figure II: Operationalisation of customer relationship marketing
on market performance 65
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LIST OF TABLE
Table 1: Distribution/return rate of questionnaires from the subscribers 77
Table 2: Respondents opinion on how their network service provider
handle complaints on high tariff 79
Table 3: Opinion of respondents in availability of network service 80
Table 4: Opinion of Respondents on whether the Way Their Network
Service Provider Handle Complaints on Call Jamming Is Reasonable 82
Table 5: Respondents opinion on whether the immediate attention usual given
to them by their network service provider is un-interesting 84
Table 6: Opinion of respondents on the general poor attitude of their
service provider to their inability to load recharge card or send
text message. 86
Table 7: Respondent opinions on whether the call rates of their network
service providers are affordable 87
Table 8: Respondents opinion on whether they are loyal to their network
service provider because of their call rate 89
Table 9: Respondents opinion as to whether the trust they have of their
network service provider was due to their low call rates 90
Table 10: Respondents opinion on whether their network service
provider’s call rates are lower than others. 92
Table 11: Opinions of respondents on whether the call rates of their
service provider’s attract them to their services 93
Table 12: Respondents opinion on whether the rates charged by their
network service provider when connecting to other network is
affordable 95
Table 13: Respondent’s opinion on whether the rate charged by their
network provider is discouraging them when connecting to
another network. 97
Table 14: Respondent’s opinion on whether the rate charged by the
network service providers made them to have multiple lines 99
Table 15: Respondent’s opinion on whether the lower rates charged rate
charged by their network providers made to remain with the network 100
Table 16: Respondent’s opinion on whether the prompt attention usually
given to them whenever they have problem of connecting to
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another network made them to be loyal to their network. 102
Table 17: Respondents opinion on whether the bonus offer on calls made
them to the service of their network service provider regularly 104
Table 18: Opinion of respondents on whether the bonus offer on calls
reduces their call rates of their network service provider 106
Table 19: Respondents opinion on whether the bonus offer on calls
made them to be consistent with the use of the services of their
network service provider 108
Table 20: Respondents opinion whether bonus offer on calls made them
to have positive word of mouth on their network service
providers 109
Table 21: Respondents Opinion on Whether Bonus Offer on Calls
Increases their Patronage to their Network Service Provider 111
Table 22: Opinion of respondents on whether they trust the services of
their network service providers because of the quality of service rendered 112
Table 23: Respondent’s opinion on whether they will continue to say
positive word of mouth for their quality to others 114
Table 24: Opinion of respondents on whether they are consistent with the use
of the firms services because of their past experience with them 115
Table 25: Opinion of respondents on whether their repeat purchase
encourages their friends to patronize their services 117
Table 26: Respondents opinion on whether the quality of the services
resulted to a lifetime value to their subscribers 119
Table 27: Data on Complaints Handling 121
Table 28: 131
Table 29: Data on Interconnectivity Rate 141
Table 30: Data on Bonus Offer 150
Table 31: Data on Customers Loyalty 159
Table 32: Summary of Hypotheses Test 171
Table 32: There is no significant relationship between complaint
handling (CH) and customer loyalty (CL) of
telecommunication industry in Nigeria 175
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Table 33: Kaiser-Meyer-Olkin (KMO) and Bartlett’s Test 178
Table 34: Communalities 179
Table 35: Total Variance Explained 180
Table 36: There is no significant relationship between lower call rates
(CR) and customer loyalty (CL) of telecommunication
industry in Nigeria. 182
Table 37: There is no significant relationship between lower
interconnectivity rate and customer loyalty of
telecommunication industry in Nigeria. 185
Table 38: There is no significant relationship between bonus offer on
calls and customer loyalty of telecommunication industry in Nigeria. 187
Table 39: Summary of hypothesis Test 188