EFFECT OF SALES PROMOTION ON CUSTOMER PATRONAGE OF TELECOM SERVICES (A STUDY OF GLOBACOM NIGERIA LIMITED)

ABSTRACT

The aim of this research project was to appraise the effects of sales promotion on customer patronage telecommunication services. This was done under the following specific objectives: assess if it is justified to spend large sum of money on sales promotion; examine the effects of sales promotion on customer patronage with respect to the product of Globalcom Nigeria Limited; determine the level of awareness of customers towards the company product or services; and make recommendations to Global Nigeria Limited for future sales promotional activities. Two hypotheses were tested. In the research methodology, the random sampling techniques were employed in gathering of data. Using Taro Yamani’s formula sample size of thirty-six (36) of Globalcom staff were drawn and using purposive sampling, seventy four (74) customers/ consumers/ subscribers and retailers from company’s sales territory. Finally, the chi square statistical techniques were used for the data analysis. Based on the research it was concluded that sales promotion is not a wasteful venture rather sales promotion has a high impact on the customer patronage, and that this impact has a significant effect turnover, as it positively influences the company’s profitability. It was recommended among others that for effective development of the sales promotion programme, the management needs to determine the size of the incentive, the conditions for participation, the duration of the programme, the distribution channel suitable for the particular programme and then it must establish timing for the promotion.

TABLE OF CONTENTS

Title Page ﾿ i

Declaration ﾿ ii

Certification ﾿ , ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of Content ﾿ vi

Abstract ﾿ x

CHAPTER ONE

1.0 ﾿ INTRODUCTION ﾿ 1

1.1 ﾿ Background of the Study ﾿ 1

1.2 ﾿ Statement of the Problems ﾿ 3

1.3 ﾿ Research Questions ﾿ 4

1.4 ﾿ Objectives of the Study ﾿ 4

1.5 ﾿ Research Hypotheses ﾿ 5

1.6 ﾿ Significance of the Study ﾿ 6

1.5 ﾿ Limitations of the Study ﾿ 6

CHAPTER TWO

2.0 ﾿ LITERATURE REVIEW ﾿ 9

2.1 ﾿ Sales Promotion ﾿ 9

2.2 ﾿ Purpose of Sales Promotion ﾿ 13

2.3 ﾿ Effect of Sales Promotion on Customer Patronage ﾿ 15

2.4 ﾿ Types of sales Promotional Techniques ﾿ 16

2.5 ﾿ Developing the Sales Promotional Programme ﾿ 19

2.6 ﾿ Sales Promotional Planning and Strategy ﾿ 21

2.7 ﾿ The Problem Implementing Sales Promotional Programme ﾿ 22

2.8 ﾿ Historical Background of the Company Globacom 

Nigeria Unlimited ﾿ 23

CHAPTER THREE

3.0 ﾿ RESEARCH METHODOLOGY ﾿ 29

3.1 ﾿ Research Design ﾿ 29

3.3 ﾿ Area of the Study ﾿ 30

3.4 ﾿ Population of the Study ﾿ 31

3.5 ﾿ Sample Size and Sampling Techniques ﾿ 32

3.6 ﾿ Data Collection Method ﾿ 33

3.7 ﾿ Data Analysis Technique ﾿ 34 

CHAPTER FOUR

4.0 ﾿ RESULTS AND DISCUSSIONS ﾿ 35

4.1 ﾿ Analysis of Questionnaire ﾿ 35

4.2 ﾿ Employees Response to Effect of Sales Promotion ﾿ 36

4.3 ﾿ Customers Response to Effect of Sales Promotion ﾿ 43

4.4 ﾿ Hypothesis Testing ﾿ 49

CHAPTER FIVE

5.0 ﾿ SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1 ﾿ Summary of Finding ﾿ ﾿ 53

5.2 ﾿ Conclusion ﾿ 54

5.3 ﾿ Recommendation ﾿ 54

References

Appendix