Complete Material Cost #3,000
Order for Complete Material now
Abstract
The study examined Customer Value Delivery and Customer Retention of Gsm Firm in Rivers State. The survey design was employed. The study was designed to focus on GSM firm in Port Harcourt which includes MTN, Globacom, 9Mobile and Airtel where primary data. The population of this study constitutes all senior and junior staff of selected GSM firm in Port Harcourt which was unknown. The judgmental sampling technique was used for selecting the sample. The sample size of this study was judgmental sample of 130 respondents which comprise of both senior and junior staffs of selected GSM firm in Port Harcourt. In this study both the primary and secondary data were used. A self-designed questionnaire on customer value delivery and customer retention of GSM firm in Rivers State was used for data collection The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS Version, 22). The statistical test used in the testing of the hypotheses was Pearson Product Moment Correlation Coefficient. The study found a significant relationship between service quality and customer retention of GSM firms In Port Harcourt, Rivers State, product benefit and customer retention of GSM firms In Port Harcourt, Rivers State are significantly related and value cost and customer retention of GSM firms in Port Harcourt, Rivers State, are significantly related. Based on the findings of the study, we recommended that there should be constant improvement in service delivery processes to shorten the process customers go through in the course of communication. This is because process management is statistically significant and predicts customer retention, CRM practices should be intensified through a good database management system due to the mediating role it plays in customer retention efforts and organizational policies and strategies should be customer oriented as it is significant in predicting customer retention.
Table of Contents
Title Page i
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Abstract vii
Table of Contents viii
List of Tables x
List of Figure xi
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objectives of the study 4
1.4 Research Questions 4
1.5 Research Hypothesis 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitations of the Study 6
1.9 Definition of Terms 7
CHAPTER TWO 8
LITERATURE REVIEW 8
2.0 Introduction 8
2.1 Conceptual Framework 8
2.1.1 Concept of Customer Value Delivery 8
2.1.3 Dimensions of Customer Value Delivery 12
2.1.3 Concept of Customer Retention 17
2.1.4 Measures of Customer retention 18
2.1.5 Customer Value Delivery and Customer Retention 20
2.2 Theoretical Framework 22
2.3 Review of Related Empirical Studies 23
2.4 Summary of Review of Related Literatures 25
CHAPTER 3 27
RESEARCH METHODOLOGY 27
3.1 Introduction 27
3.2 Research Design 27
3.3 Population of the Study 27
3.4 Sampling Techniques Used 27
3.5 Sample Size 28
3.6 Sources of Data 28
3.6.1 Primary Source (s) of Data 28
3.6.2 Secondary Source of Data 28
3.7 Research Instrument for Data Collection 28
3.8 Validity and Reliability of Instrument 29
3.9 Techniques for Data Analysis/ Test of Hypotheses 29
CHAPTER FOUR 30
DATA PRESENTATION AND ANALYSIS 30
4.1 Questionnaire Distribution and Retrieval 30
4.2 Data Analysis and Presentation 31
4.3 Hypotheses testing 34
4.4 Discussion of Findings: 36
CHAPTER FIVE 38
SUMMARY, CONCLUSION AND RECOMMENDATIONS 38
5.1 Introduction 38
5.2 Summary 38
5.3 Conclusion 38
5.4 Recommendations 39
References 40
APPENDIX I 42
APPENDIX II 43
List of Tables
Table 4.1: Questionnaire Administration and Retrieval 30
Table 4.2: Age of respondents 31
Table 4.3: Sex of respondents 31
Table 4.4: Academic qualification of Respondents 32
Table 4.5: Service Quality and Customer Retention 32
Table 4.6: Product Benefit and Customer Retention 33
Table 4.7: Value Cost and Client Customer Retention 34
List of Figure
Fig. 1: A Conceptual Framework Showing the Relationship between Customer Value Delivery and Customer Retention 8
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Customer retention is seen as a process of building upon customer service quality as it is done in industrial marketing through building financial, social and structural bond and the firm’s ability to practice acceptable general management principles. It is important to note that, it is a management decision to put strategies in place to retain customers when the market is saturated and there is a lower growth of number of new customers. Firms across multitude of industries in their desire to increase their market share and minimize cost of doing business try to put in appropriate strategies in place so as to retain their customers and maximize their profitability. In another dimension, customer retention leads to developing specific strategies by preventing customers from going to other competitors through achieving a marketing goal (Ramakrishnan, 2012).
Customer delivered value is difference between total customer benefit and total customer cost (Kotler, 2000). Delivering quality service is also an important aspect of business as it tends to have a great impact on how customers are retained in businesses. Kumar, (2010) state that the exercise of admirable quality of services combined with what offering are given to customers is a potent originator to furnish what the firm’s clients needs and participate with them because financial institutions who pay more attention to how they serve customers better over competitors. Making service quality your hallmark can result in increase revenue, customers making repeat purchases and customer retention.
Customer value is regarded as being “the fundamental basis for all marketing activity” (Holbrook, 1994). The term value refers to a preference judgment by consumers (Taylor, 1961). Customer value has been defined in many different ways. For example, Chen and Quester (2005) use an integrated approach based on past studies (Weinstein and Johnson, 1999) to conceptualize customer value. They describe customer value in terms of rational and experiential perspectives in an effort to capture the extrinsic and intrinsic aspects of customer value in the service context. This study adopts their combined view on customer value in light of the research purposes.
The contribution of customer value toward the maintenance of varied business relationships is well recognized (Bolton, 2014). Consumer’s perceptions and evaluation of the value received in an ongoing relationship can have a definite impact on their intention to continually stay with, or to leave, an organization.
Customer delivered value is difference between total customer benefit and total customer cost (Kotler, 2000). Other importance of value is innovation of proactive company that will give opportunity to get superior customer value, while other with reactive innovation will just serve customer with fair value compare to its competitors. There are four aspect of value dimension based on emotional value; social value; quality performance value; and price/value of the money.
However, it is a very subjective matter only a few of customers who have expertise in valuating and assess the quality and their perceive value, that is why it is necessary for marketer to be able to communicate powerfully to achieve superior customer value. Customer value is regarded as being “…the fundamental basis for All marketing activity”. The term value refers to a preference judgment by consumers. Customer Value has been defined in many different ways.
Perspectives in an effort to capture the extrinsic and intrinsic aspects of customer value in the service context. This study adopts their combined view on customer value in light of the research purposes.
Customer value is defined as an object’s overall evaluation of value in Relation to extrinsic and intrinsic aspects, and based on a comparison of perceived benefits with perceived costs from both the rational and experiential perspectives.
It is also believed and advised that, customers leaving the organization should be minimized and prevented through addressing complaints which will raise switching barriers and cause customers stay with the service firm for an established period. From the foregoing, the study seeks to examine the relationship between customer value delivery and customer retention with references to selected GSM firms In Port Harcourt, Rivers State.
1.2 Statement of Problems
Progressively, organizations are focusing on how well to address and build relationships with customers and make customers their own. The customer has become the centre piece of business strategy so firms must try to make customers respond to their value preposition. CRM tries to realize long term value for firm’s clients which in the long run increase their market share resulting in increased revenue. To be able to achieve these objectives, firms need to consider sources where they can get relevant information for both customers and organizational use in order to satisfy customers better than competitors. This call for GSM firms to build strong lasting relationship with their customers and to deliver value to meet their needs cuts across service organisations.
In the telecommunication sector today, competition has become so keen that, customers have become selective and have numerous choices of patronizing other competitor if there is any form of dissatisfaction with the service that has been delivered. This dissatisfaction can lead to the spreading of bad word of mouth, switching of communication services form one GSM firm to another, seeking convenience resulting in low profit and low market shares for GSM firms. This has given rise to the phenomenon of building strong customer relationships in order to retain customers. The amount firms will spend in wining a client so as to replace lost ones is more due to initial expenditure that one may use to build relationship, hence customer retention should be at the heart of management. GSM firms should try to deliver quality services which result in customer retention because customers are likely to switch to other competing GSM firms where they could receive long term value and build relationship leading to retention with the competing firms, hence the study sought to examine the relationship between customer value delivery and customer retention in .
1.3 Objectives of the study
The main objective of the study is to examine the relationship between customer value delivery and customer retention of GSM firms In Port Harcourt, Rivers State. In specific terms, the study seeks to:
1. Understand the relationship between service quality and customer retention of GSM firms In Port Harcourt, Rivers State.
2. Understand the influence of product benefit on customer retention of GSM firms In Port Harcourt, Rivers State.
3. To examine the effect value cost on customer retention of GSM firms In Port Harcourt, Rivers State.
1.4 Research Questions
In course of this research, the following research question enhanced the conduct of this research work.
1. Are there any relationships between service quality and customer retention of GSM firms In Port Harcourt, Rivers State?
2. Does product benefit influence customer retention of GSM firms In Port Harcourt, Rivers State?
3. Does value cost enhance customer retention of GSM firms In Port Harcourt, Rivers State?
1.5 Research Hypothesis
In the conduct of this research, the following research hypotheses will be used:
H01: There is no significant relationship between service quality and customer retention of GSM firms In Port Harcourt, Rivers State.
H02: There is no significant relationship between product benefit and customer retention of GSM firms In Port Harcourt, Rivers State.
H03: There is no significant relationship between value cost and customer retention of GSM firms In Port Harcourt, Rivers State.
1.6 Significance of the Study
It is believed that the completion of this work will provide empirical material on the relationship between customer value delivery and customer retention. Also, it is believed that the work will serve as a stepping stone for future researcher as it will provide useful materials for their studies.
In another development, the result of this study will also guide marketers on the relationship between customer value delivery and customer retention. This simply means that it will enable them to develop strategies that can foster customer retention which in turn will enhance sales performance of the firms.
This study will be meaningful in a lot of ways to the government, manager, businesses, academics and also to student and organizations since it provides them with some vital data in the area of client/customer relations as well as help them to make policies and strategies that will be of help to businesses especially in the area of customer service or customer relations management.
1.7 Scope of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between customer value delivery and customer retention of selected GSM firms in Port Harcourt. The dependent variable is customer retention, measured by customer satisfaction, customer trust and customer involvement. While independent variable is customer retention measured by service quality, product benefit and value cost.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with reference to selected GSM firms in Port Harcourt. The study limits scope to selected GSM firms in Port Harcourt which include MTN Nigeria Rumuokwurusi, Globacom Waterlines, 9mobile, GRA Junction and Airtel Nigeria, GRA.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of the selected GSM firms in Port Harcourt at the time of the study.
1.8 Limitations of the Study
In course of carrying out this research, the researcher met with a lot of constraints. Among these constraints is: The time frame which this research was expected to be completed which was too short.
Secondly, the cost in carrying out this research work act as a barrier as we were not financially buoyant to carry out all investigation.
Finally, assembling the relevant materials needed this work was a problem. It is difficult due to the fact that some of the respondents were not willing to give us the required coorperation.
1.9 Definition of Terms
Customer: This is a person who buys a product or service from a person or organization, usually a seller. A customer is a client who patronizes the bank either to make deposits, withdrawals, or get a loan or other banking services.
Customers’ Retention: Customer retention is the action or movement an organization undertakes for the main purpose of reducing consumers’ anxiety and fear about a product or service in order to increase the lifespan of a customer.
Loyalty: Is a positive (or negative) attitude of the customer toward the business organization and its products and services. It is considered important because the loyal customer will contribute to organization in long-range.
Direct Mailing: Is the process of exchange or swap conducted by the customer between the benefits obtained from the product or service and the cost of obtaining in terms of product benefits.
Commitment: The notion of commitment is then central to understanding better the mental processes underlying the repeat purchasing of a brand.
Customer value: It is an object’s overall evaluation of value in Relation to extrinsic and intrinsic aspects, and based on a comparison of perceived benefits with perceived costs from both the rational and experiential perspectives.
Complete Material Cost #3,000