1.0 Background of the study

The customer is the main focus of any successful business (Rosemond and Gloria, 2001). Business success depends on a firm’s understanding and meeting customer’s needs and demand. Service consumption behaviour is based on the customer’s experience on a particular service encounter. According to Jones and sub (2000) it is based in the experience with service provider and the outcome of service. Daramola et al, (2004) assert that the organization understands how consumers are important to describing effective strategies, not only for sale promotion but for other elements of the marketing communication.  It has been observed that one of the major market strategy is the one of telecommunication network providers.

Telecommunication industry in Nigeria is among the fastest growing sector keeping appropriate pace with global advancement especially the mobile telecommunication market. Network providers such as MTN Nigeria, Globacom, Airtel and Etisalat came up with various network services in the country. After several years of the start of Global system of mobile communication (GSM) in Nigeria, the focus is gradually shifting from providing coverage to providing quality service. The growth rate in the use of telecommunication facilities has increased dramatically, especially in the rank of increasing number of telephone subscribers (Sabbir et al., 2010).

However, there have been tremendous growth prospects in the Nigerian telecom sector. The percentage of the total Nigerian population of about 150 million with active mobile GSM lines of 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. (Ogden, et al., 2004)

As a result of increasing efforts to expand market share and profit level, telecommunication operators have developed several strategies including “price war”. These had led to series of drops in mobile phone installation fees, call rates and free Short Message Services (SMS). Installation fee in 2001 was above N40, 000 but are now N100 and free in some instances. New entrants like Etisalat and Airtel in order to penetrate the market have introduced series of fee reduction on all calls including free night calls and per second billing as parts of their marketing strategies (Martins, 2014). Also, older operators like Mobile Telecommunication Network (MTN) also adopted a downward reduction in tariffs of their major repaid products. Other results of the high competition include wide range of improved quality services available with efficient, cost effective and competitive services. To retain consumers in face of keen competition service providers must develop marketing strategies that will not only win customer but help to retain them. Sales promotion plays an important role in retaining old consumers and attracting new ones. Parts of the essence of a business existence are to produce goods and services that will be required by customers and to make profit from such activity.  Enough sales must be generated for profit to be made. ( Long-Yi, et al., 1993)

TABLE OF  CONTENTS

Cover page i

xii

CHAPTER ONE

1.0 INTRODUCTION 1

CHAPTER TWO

LITERATURE REVIEW

CHAPTER THREE

MATERIALS AND METHOD

CHAPTER FOUR

4.1 PRESENTATION OF ANALYSIS

4.3 Discussion of findings

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

REFERENCES