ABSTRACT

The study analyzed the effect of product differentiation on performance of MTN products in Abia state. The study depended on primary data which was collected with the use of well structured questionnaire. Both descriptive and inferential methods of analyses were used to analyze the objectives. Findings revealed that the mean age of the wholesalers and retailers was 36.4 and 27.3years old per wholesaler and retailer. The mean year of education per wholesalers and retailers was 14.3 and 12.2 years respectively. Mean capital investment of both MTN wholesalers and retailers was N456, 955.00 and N60, 466.00 respectively while their monthly income was revealed as N 110,233.80 and N46, 744.32 respectively. Mean years of experience of wholesalers and retailer was 8.2 and 5.7years respectively, while mean household size of wholesalers and retailers was 6 and 4persons per household. All MTN products wholesalers in the study area sold modem, MTN phones, SIM cards, Recharge card and SIM registration while most of them marketed products like true talk, share and sell. super saver plan, smooth talk, MTN Iplus and MTN data bundles. MTN product retailers marketed SIM cards and recharge cards, MTN phones and modern. The gross margin result showed that the wholesalers and retailers made high returns from their business. Constant availability of products, timeliness of sales, product promotions and bonuses, strong marketing abilities, sales discount and good business reputation were dimensions that influenced MTN product wholesalers sales performance while timeliness of sales, strong marketing abilities, good business reputation and home services, recharge cards scratching. late night sales, creative personnel and low cost product narketing were main dimensions that influenced sales performance of retailers. Market shares, quality of the products, unique features of the products, Cash flow from operation, sales growth, new product innovation and consumer preference, were the significant factors that influenced dimensions of product differentiation as well as sales performance of MTN product wholesalers, while market shares. delivery of the products, unique features of the products, customers satisfaction and retention, cash flow from operation, sales growth and consumer preference were the significant factors that influenced the dimensions of product differentiation as well as sales performance of MTN product retailers study area. It is therefore recommended MTN Company should create channels on how to promote the investment levels of their young product retailers as the study had revealed that the retailer's investment level was low, and this low capital investment level had consequently influenced their level of income which the study also revealed was low.