ABSTRACT

The study examined the cost implication on customer acquisition and customer retention in the banking sector. The study ascertains the extent to which cost affect the acquisition and retention of customers. 104 questionnaires were distributed and used. Spearman rank correlation, analysis of variance (ANOVA) and correlation coefficient was used to test the hypotheses raised in the study. The researcher revealed that all the variation of cost studied has a significant effect on customer acquisition and retention. The researcher concluded that in order to retain customers after acquisition, banks should keep on researching on new ways of satisfying their customers thereby making them loyal customers. The researcher recommends that banks should ensure that the service delivery time are optimized to the advantage of the customers. 

TABLE OF CONTENTS

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of Contents vi

List of Tables viii

Abstract ix

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 Introduction 1

1.2 Statement of the Problems 3

1.3 Objective of the Study 4

1.4 Research Questions 4

1.5 Research Hypotheses 4

1.6 Significance of the Study 5

1.7 Scope of the Study 5

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework 6

2.1.1 Concept of Customer Acquisition 7

2.1.2 Customer Identification 8

2.1.3 Ways of Customer Identification 8

2.1.4 Customer Acquisition Strategies 9

2.1.5 Customer Acquisition Management 10

2.1.6 Customer Acquisition Cost 11

2.1.7 Ways Cost are Incurred in Customer Acquisition 12

2.1.8 Importance of Customer Acquisition 13

2.1.9 Concept of Customer Retention 13

2.1.10 Customers Retention Strategies 14

2.1.11 Ways Cost are Incurred in Customer Retention 17

2.1.12 Importance of Customer Retention 18

2.2 Theoretical Framework 18

2.3 Empirical Framework 19

2.4 Summary of Related Literature 20

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design 21

3.2 Area of Study 21

3.3 Population of the Study 21

3.4 Sample and Sampling Procedure 22

3.4.1 Sample Size Determination 22

3.5 Method of Data Collection 23

3.6 Method of Data Analysis 23

3.7 Model Specification 23

3.8 Test of Validity 24

3.9 Test of Reliability 24

CHAPTER FOUR

RESEARCH ANALYSIS 

4.1 Data Presentation and Analysis 25

4.2 Hypothesis and Analysis 26

4.3 Findings and Discussions 35

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary 37

5.2 Conclusion 37

5.3 Recommendation 38

REFERENCES

APPENDIX