Customer Acquisition And Customer Retention, Cost Implication In The Banking Sector In Umuahia Abia State

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