INTRODUCTION
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)
Moreso, their competitive services affect the consumption behaviour of the customers. Consumer behaviour can be regarded as a utility and value producing activities (Kojima and Baba, 2001). It plays a significant effect on decisions which help in achieving the organizational objectives, and furthermore, influence the economic social conditions within a society (Loudon and Bitta, 2002). In this study therefore, the impact of marketing strategy of telecommunication network providers on service consumption behaviour will be investigated using the agro industry entrepreneurs in Abia state as a case study.
1.2 Statement of the problem
Traditionally, marketing strategy is a plan for pursuing the firm’s objective or how the company will apply its marketing goals within a specific market segment (Kotler, 2010; Walker, 2011). Marketing strategies have a major impact upon the efficiency and cost structure of any company. The competitive nature of companies have forced markets, business owners, researcher, scholars in applying several dimensions to designate marketing strategies as business strategies. According to Slater et al., (2010) the concept of marketing strategy generally and extensively embraces marketing mix elements which consists of product, price, distribution and promotion and other activities.
The problem of this study is propelled by the need to empirically measure service consumption behavior with service delivery of telecommunication network providers as a marketing strategy. The state of service consumption behavior with service delivery of telecommunication network providers is not clear as there is scarcity documentation of the issue. In order to obtain sustainable competitive advantage, telecommunication network provider firms are forced to be highly innovative as well as ensuring customer satisfaction. The effective of the strategies of telecommunication network providers on the service consumption behavior has necessitated this study.
1.3 Research objectives
The broad objective of the study is to investigate on the impact of marketing strategies of telecommunication network providers on service consumption behavior in Abia state.
The specific objectives are to:
i.) identify the telecommunication network providers in Abia state and extent of patronage by agro industry entrepreneurs;
ii.) ascertain the marketing strategies of telecommunication network providers in the study area;
iii.) analyse the service consumption behavior of agro-industry entrepreneurs with respect to the telecommunication services;
iv.) analyze the effect of marketing strategies of telecommunication network providers on patronage of agro-industry entrepreneurs;
v.) determine the factors that affect the telecommunication service consumption behavior of agro-industry entrepreneurs and make recommendation following the findings of this study.
1.4 Research question
i.) which telecommunication service providers exist in Abia state and to what extent does the agro – industry entrepreneurs patronize them?
ii.) what are the marketing strategies of telecommunication network providers in Abia state?
iii.) what are the service consumption behaviour of agro – industry entrepreneurs with respect to the telecommunication services provided?
iv.) what factors affect the marketing strategies of telecommunication network providers in Abia state?
v.) what factors affect the telecommunication service consumption behaviour of agro – industry entrepreneurs in Abia state and what recommendation(s) could be made?
1.5 Significance of the study
The findings and results from this study will provide a more reliable scientific measure and perspective for describing and evaluating the level of their customer satisfaction with the services being rendered.
It will also serve as an invaluable source of information that brings to limelight the switching intensions of the telecommunication network providers respective customers.
It will essentially uncover dimensions of service of quality that customers consider as important as well as customer’s intension to switch to other competitor networks. This study will also help at building up bring-term mutually beneficial relationship will profitable customer’s and achieve sustainable business growth.
1.6 Scope of the study
The study is delimited to only telecommunication network providers in Abia state. Again only agro industry entrepreneurs who use the services of this network providers as valuable mean of marketing strategies are used in this study for analysis. Moreover, customers in this study are limited to only agro industry entrepreneurs who are also customer of significance in considering overall customers satisfaction in service delivery.
1.7 Research hypotheses
Ho1 : There is no significant difference between the service consumption behavior and the services of the telecommunication network providers.
Ho2 : Telecommunication networks are not valuable marketing strategy for agro – industry entrepreneurs in Abia state.
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