This website uses cookies to ensure you have the best experience. Learn more

Sales Promotion And Consumer Loyalty: A Study Of Nigerian Tecommunication Industry

3970 words - 16 pages

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 ...view middle of the document...

There are four major telecommunication providers in Nigeria offering Global Systems of Mobile (GSM) services with several mobile fixed wireless companies Code Division Multiple Access (CDMA). Nigeria telecommunication industry is one of the largest in Africa with over seventy (70) million GSM users and still growing with one of the highest fixed line revenue and cumulative revenue of US$14billion as at December, 2009 (NCC, 2010). There are tremendous growth prospects in the Nigerian telecom sector; as such new entrants are attracted. For example, Etisalat was recently in January 2007 licensed to provide telecom services and Airtel Indian largest telecom company in 2010 acquired Zain, the third largest mobile telecom provider in Nigeria this shows the level of attractiveness of the Nigerian telecom market. The telecom industry in Nigeria as at November, 2010 according to NCC had generated more than eight thousand direct first-tier employments (vendors, PR agencies, operators’ call center employees, security etc) and estimated thirty (30) million indirect 2nd-tier employments (NCC, 2010). More im Journal of Competitiveness | Issue 4/2011

joc_4-2011en_v3.indd 66

19.12.2011 18:06:46

portantly, the telecom contribution to national Gross Domestic Product (GDP) has increased from 0.6% in 2001 to 4.2% in 2009. Total private investment in the sector is US$12billion and earning per line according to International Telecommunication Union (2010) in 2001 was US$48.21, US$17.80 in 2005 and US$11.26 in 2008. Tab. 1- Statistics of Nigerian Mobile Connections. Source: Nigerian Communication Commission (accessed 27/12/2010) Market Etisalat GLO Mtel MTN Multilinks Starcomms Visafone Airtel ZOOMmobile Total Technology GSM GSM GSM GSM CDMA CDMA CDMA GSM CDMA Market share (%) 1.66 23.32 0.38 40.14 3.38 2.17 3.68 23.59 1.78 100 Quarterly growth (%) 46.61 4.30 2.58 7.36 29.76 15.16 12.18 7.78 27.15 8.44 Annual Growth (%) 13.17 2.58 49.82 156.87 134.71 353.68 9.98 38.54 Net Additions 365,620 665,695 6,670 190,6018 537,416 197,521 276,793 1,1174695 262,781 5,393,209 Share of Net Addition (%) 6.78 12.34 0.12 35.34 9.96 3.66 5.15 21.78 4.87 100 Connections 1,835,870 16,228,556 258,520 29,740,000 N/A N/A N/A 14,935,770 N/A 71, 998,716

Note: Global Communication Network (GLO); Mobile Telecommunication Network (MTN)

The percentage of the total Nigerian population of about 150 million with active mobile GSM lines is about 47.8%. The number of mobile phone users in Nigeria has grown rapidly in the wake of the industry deregulation of 2001. The tele-density rate grew dramatically from 1.89 in 2002 to 53.23 in 2009 and penetration rate of 1.2% in 2002 to 48.7% in 2009. It is common for an average Nigerian mobile telephone user to have more than one mobile line which helps to increase the penetration rate. As a result of increasing efforts to expand market share and profit level, telecom operators have developed several strategies including “price war”. These had...

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

Airline Industry - A Study Essay

2269 words - 10 pages AIRLINE INDUSTRY A STUDY ECO 203 NYC ROSA MARIA MAGPANTAY, RN, BSN, CCRN INTRODUCTION Since the inception of flight in 1903, air travel industry has been a crucial means of transportation for people and products. The invention of the first aircraft hundred-plus years ago brought about a revolution of how people travel. It has been a dynamically changing industry. Air travel remains a large and growing industry. It facilitates world

Promotion Of Rights And Liberties Essay

1059 words - 5 pages The English colonies promoted liberties and rights as well as slavery and racism. During the revolution, a Constitution was written that contradicted promises of liberties and rights preventing slavery until the Civil War. During the seventeenth century in North America, at the same time that slavery and racism were being engraved in society for Africans, colonies were creating charters to promote and protect the rights of Englishmen. These

The Role Of Fashion Promotion Within The Fashion Industry

1916 words - 8 pages The Role of Fashion Promotion Within the Fashion Industry In an age where fashion and technology is constantly evolving it is important that we take a step back and take a look at the current happenings in the promotional side of the fashion industry. The fashion show,a key tool to making designers collections accessible to its consumer, will be the main focus of this essay. We shall define fashion promotion before looking at how the catwalk

Merchant of Venice - Conflict and Loyalty

932 words - 4 pages The Merchant of Venice The Correlation between Loyalty and Conflict Loyalty is recognized as the dedication of oneself to another, and is prevalent in nearly all of today’s societies. Its importance is unparalleled, as a bond formed by loyalty and trust is one that should last a lifetime. This play presents the forming of bonds of loyalty, though not all of these bonds end well. In Shakespeare’s play The Merchant of Venice, he emphasizes

Study of Consumer Behavior Towards Purchasing Toothpaste

1645 words - 7 pages A STUDY OF CONSUMER BEHAVIOR TOWARDS PURCHASING TOOTHPASTE INTRODUCTION Consumer behavior is stated as the behavior that consumer display in searching for, purchasing, using, evaluating, and disposing of products, services and ideas that they expect will satisfy their needs. The study of consumer behavior is concerned not only with what consumers buy, but also with why they buy it, when and how they buy it, and how often they buy it. It

Death of a Sales Man Reaction Paper

997 words - 4 pages time an athlete with a college scholarship. Biff did not graduate from high school nor join college. According to DiYanni (2004), He did this out of spite because he found his father with another woman in one of his sales trips in Boston. Sine that incidence, Biff, has always been in constant downfall, spending in jail and stealing at every job he has been. Biff it depicted as having a kleptomaniac character that has a constant desire to steal

Global and Chinese Baler Industry | Report Is a Complete Study Of Current Trends in The Market 2010-2020

616 words - 3 pages Baler Industry, 2010-2020 Market Research Report is a professional and in-depth study on the current state of the global Baler Industry with a focus on the Chinese market. The report provides key statistics on the market status of the Mixing Station manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry. In this part, the report presents the company profile, product

Study of the Scenario of Indian Aviation Industry in a Span of Five Years and the Rise and Fall of Kingfisher Airlines in Those Years

5143 words - 21 pages STUDY OF THE SCENARIO OF INDIAN AVIATION INDUSTRY IN A SPAN OF FIVE YEARS AND THE RISE AND FALL OF KINGFISHER AIRLINES IN THOSE YEARS. Indian Aviation Industry It is one of the fastest Growing Aviation Market. There are approximately one billion people and 0.05% of them fly. More and more middle class families now prefer air transport than other traditional mode of transport. The Indian travel market has nearly tripled to

Assessment of the Attractiveness of the Swedish, Bulgarian and Nigerian Markets for Starbucks

1786 words - 8 pages Assessment of the Attractiveness of the Swedish, Bulgarian and Nigerian Markets for Starbucks Starbucks already has an existing connection to Sweden: CEO Howard Schultz previously worked with Hammarplast, “a Swedish housewares company which marketed coffee makers” (Subhadra and Dutta, 2003). It was whilst working for this company that Schultz first became aware of Starbucks, who was a major customer of Hammarplast at the time. A relationship

Odysseus' Loyalty And The One Sided Contract Of Marriage

1881 words - 8 pages Danika GuileyProfessor FisherWR 10018 February 2014Odysseus' Loyalty and the One Sided Contract of MarriageIn Homer's Odyssey, the epic poem depicts the journey of a husband and father as he returns home after fighting in the Trojan War. Throughout the epic poem, many instances of fidelity and infidelity occur in war and in athletic challenges; however, the most significant and reoccurring instances of fidelity and infidelity occur inside

A Study of the Technological Environment of Mobile Services Industry of India

5269 words - 22 pages estimated that by 2010, the two dominant 3G technologies, CDMA2000 and Wideband CDMA (WCDMA), will account for 1.2 billion subscribers, representing 41 per cent of the global subscriber base Its introduction would be a transition point for Indian mobile industry. It will bring a complete entertainment solution as follows: 1. One can watch any television show which he has missed out at any time during his convenience. 2. Watch video highlights of

Related Essays

Giant Consumer Products, Inc The Sales Promotion Resource Allocation Decision

2495 words - 10 pages GIANT CONSUMER PRODUCTS, INC THE SALES PROMOTION RESOURCE ALLOCATION DECISION I. PENDAHULUAN Kasus ini berkaitan dengan strategi marketing, khususnya dalam promosi penjualan. Saat itu awal September 2008 di markas Giant Consumer Product, Inc (GCP), tepatnya pada Divisi Makanan Beku (Frozen Food Divison ) – FFD - tidak melakukan tanggung jawabnya dengan baik, dimana target yang telah ditetapkan tidak tercapai dan performance kinerjanya

The Impact Of Sales Promotion Essay

2364 words - 10 pages the evoked set of alternatives, perceived risk, brand loyalty and attribution of dissatisfaction as Telecom is in the service industry. This research therefore seeks to find out to what extent the sales promotion practiced by telecom operators influence the consumer buying process. It also seeks to find out reasons for consumers deviation from the established buying process. OBJECTIVES OF THE STUDY The general objective of this research is to

The Evolution Of Selling: A Study Of Historic And Contemporary Sales Methods And Attitudes’

2216 words - 9 pages ENTE 2534 ASSIGNMENT 1 Criteria ‘The evolution of selling: a study of historic and contemporary sales methods and attitudes’ Name: Arun Sehgal Student Number: P11271202 Tutor Marking: Edwina Goodwin CRITERIA | COMMENTS | MARK | Introduction/Conclusion..5% | | | Depth and Range of academic research, and evidence of understanding 25% | | | Quality of examples both historic and contemporary25% | | | Quality of individual

Consumer Perceptions Of Socially Responsible Consumption: Attitudes Among Chinese And German Business Students A Comparative/ Contrastive Study

3809 words - 16 pages Hochschule Worms Fachbereich Wirtschaftswissenschaften Studiengang International Management Fach- Sozial und Methodenkompetenz Supervised by Michael Werle Rutter Bachelor Research Proposal Consumer perceptions of socially responsible consumption: Attitudes among Chinese and German business students- A comparative/ contrastive study Wintersemester 2014/2015 by Laura Beckmann Matrikelnummer: 669461 * Index 1 Title and