AN EXAMINATION OF THE IMPACT OF RELATIONSHIP MARKETING ON CUSTOMER RETENTION IN MTN NIGERIA PLC, CALABAR

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Given the growing relevance of relationship marketing, organizations across various industries are increasingly shifting their marketing strategies to prioritize the development and maintenance of long-term relationships with customers. This is achieved through the delivery of high-quality services, responsive customer care, continuous communication, and the prompt resolution of service-related issues—all aimed at enhancing customer satisfaction and trust (Luu, Ngo & Cadeaux, 2018). According to studies by Chakiso (2015); Bataineh, AlAbdallah, Salhab, and Shoter (2015); and Abtin and Pouramiri (2016), telecommunication companies globally are actively adopting a range of relationship marketing techniques such as trust-building, effective communication, conflict resolution, promise fulfillment, and excellent service delivery, with the objective of improving customer satisfaction and retention. This present study places emphasis on four major dimensions of relationship marketing: customer care, communication, trust-building, and service quality. Chakiso (2015) describes customer care as the provision of support services to clients before, during, and after a transaction, ensuring their satisfaction throughout the service experience. Communication within the context of relationship marketing refers to the mutual exchange of information between an organization and its customers, aimed at promoting understanding and addressing service-related complaints or concerns (Luu, Ngo & Cadeaux, 2018). Trust-building entails fostering confidence in the service provider's ability to consistently deliver on its promises. On the other hand, service quality is defined by the comparison between customers’ expectations or perceptions and the actual services delivered by the firm. A service is considered of high quality when it meets or surpasses customer expectations (Bataineh et al., 2015). In Nigeria, telecommunication companies have increasingly adopted relationship marketing strategies to bolster their competitive advantage in a highly saturated and rapidly evolving market. Despite this, consumers frequently express dissatisfaction with the quality of network services, the high cost of service plans, and poor network signal strength in many rural areas, which significantly limits access to reliable communication. Nosiri, Agubor, and Ekwueme (2015) pointed out that Nigerian subscribers often encounter long delays in addressing service-related complaints—such as network outages, discrepancies in tariff plans, internet connectivity issues, and SIM card replacements—due to technological limitations or inadequate staffing within these companies. These factors help explain why many Nigerian consumers subscribe to multiple telecom providers, displaying minimal brand loyalty, which in turn poses a challenge for customer retention. In response, telecommunications companies in Nigeria have intensified efforts to improve retention by employing various relationship marketing strategies. These include building trust, enhancing customer satisfaction, providing personalized services, resolving disputes promptly, and maintaining consistent communication with clients. The studies of Ndubisi, Anyanwu, and Cosmas (2016); Odili, Frederick, and Nonye (2020); and Adefarasin and Toludare (2018) support the effectiveness of such strategies in the telecom sector. Major telecom providers such as MTN, 9Mobile, and Airtel have established specific relationship marketing initiatives—for instance, customer service helplines (180 for MTN, 111 for Airtel, and 200 for 9Mobile), service quality upgrades (especially for voice and internet connectivity), and enhanced communication through social media platforms, mobile applications, and dedicated customer service email addresses. These measures raise an important research question: To what extent have the relationship marketing efforts of telecom providers like MTN improved customer retention rates? This study was therefore undertaken to evaluate the effect of relationship marketing on customer retention in MTN Nigeria Plc, Calabar. 1.2 Statement of the Problem In the context of today’s intensely competitive business environment, companies must adopt strategies that foster long-lasting relationships with customers to ensure sustained retention. Relationship marketing, which focuses on creating and nurturing strong customer bonds, has become a strategic necessity for organizations seeking to retain clients in the long term (Ndubisi, 2007). Despite widespread adoption of relationship marketing techniques by numerous businesses, many continue to struggle with customer retention due to shifting consumer preferences, aggressive market competition, and insufficient engagement strategies (Morgan & Hunt, 1994). Customer retention is vital for business sustainability, as retaining existing customers is often more cost-effective than acquiring new ones (Reichheld & Teal, 1996). However, many organizations face challenges in maintaining loyal customer bases, often experiencing high churn rates that negatively impact both profitability and market share. Empirical findings suggest that a mere 5% increase in customer retention could result in profit growth ranging from 25% to 95%, depending on the industry (Reichheld, 2001). This statistic highlights the critical importance of implementing effective relationship marketing strategies to build customer loyalty and reduce attrition. The core concern, therefore, lies in understanding how relationship marketing can be optimized to enhance customer retention, particularly in light of evolving consumer behaviors and dynamic market conditions. This study thus seeks to examine the impact of relationship marketing on customer retention within MTN Nigeria Plc, Calabar—offering insights into its successes, limitations, and areas for improvement. 1.3 Objective of the study The broad objective of the study is to examine the Impact of Relationship Marketing on Customer Retention in MTN Nigeria Plc, Calabar. The specific objectives is as follows i.To determine whether trust in relationship marketing affect customer revisit intention ii.To assess whether effective communications have an effect on customer retention in MTN Nigeria iii.To investigate whether effective customer care have influences customer retention in MTN Nigeria iv.To examine if there is a relationship between marketing and customer retention in MTN Nigeria 1.4 Research questions The following questions have been prepared to guide the study i.Does trust in relationship marketing affect customer revisit intention? ii.Does effective communications have an effect on customer retention in MTN Nigeria? iii.Does effective customer care have influences customer retention in MTN Nigeria? iv.Is there a relationship between marketing and customer retention in MTN Nigeria 1.5 Research hypotheses The stated hypotheses have been formulated to guide the study H0: Trust, communication and customer care have no significant positive effects on customer retention in MTN Nigeria Plc, Calabar Ha: Trust, communication and customer care have a significant positive effects on customer retention in MTN Nigeria Plc, Calabar 1.6 Significance of the study The findings of this study will help business organizations understand how to optimize relationship marketing strategies to improve customer retention. By identifying key factors that contribute to building strong customer relationships, companies can develop targeted approaches to reduce churn and enhance customer loyalty, leading to increased profitability and sustainable growth. Findings of the study will also be significant to the academic community as it will contribute to existing literature, add to library resources and serve as a guide to future researchers. 1.7 Scope of the study The study focus on the Impact of Relationship Marketing on Customer Retention in MTN Nigeria Plc, Calabar. Empirically, the study will determine whether trust in relationship marketing affect customer revisit intention, assess whether effective communications have an effect on customer retention in MTN Nigeria, To investigate whether effective customer care have influences customer retention in MTN Nigeria and examine if there is a relationship between marketing and customer retention in MTN Nigeria. Geographically, the study is delimited to MTN Nigeria Plc, Calabar 1.8 Limitation of the study Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint are: Time: The researcher encountered time constraint as the researcher had to carry out this research along side other academic activities such as attending lectures and other educational activities required of her. Finance: The researcher incurred more financial expenses in carrying out this study such as typesetting, printing, sourcing for relevant materials, literature, or information and in the data collection process. Availability of Materials: The researcher encountered challenges in sourcing for literature in this study. The scarcity of literature on the subject due to the nature of the discourse was a limitation to this study. 1.9 Definition of terms Relationship Marketing: This refers to a marketing strategy that focuses on building and maintaining long-term, mutually beneficial relationships with customers rather than just seeking immediate sales. It aims to enhance customer satisfaction and loyalty by understanding and meeting customer needs on an ongoing basis (Grönroos, 1994). Customer Retention: The ability of a company to keep its customers over a specific period, preventing them from switching to competitors. Customer retention is often measured by the length of time a customer continues to do business with a company and is a key indicator of customer loyalty (Reichheld, 1996). Customer Loyalty: A customer's willingness to continue buying from or engaging with a particular company consistently over time. Loyalty is often influenced by customer satisfaction, trust, and the perceived value of the company's products or services (Dick & Basu, 1994). Trust: In the context of relationship marketing, trust refers to the belief or confidence that a customer has in the reliability, integrity, and competence of a company to deliver on its promises (Morgan & Hunt, 1994). Commitment: The dedication or willingness of a customer to maintain a long-term relationship with a company. It is often driven by emotional attachment, positive experiences, or perceived value in the relationship (Morgan & Hunt, 1994). Customer Satisfaction: A measure of how well a company's products or services meet or exceed customer expectations. It is a key factor in determining whether a customer will return and continue doing business with a company (Oliver, 1980). Customer Feedback: Information provided by customers regarding their experience with a company's products, services, or overall interactions. Feedback is valuable for companies seeking to improve their relationship marketing strategies and customer retention efforts (Homburg & Fürst, 2005).