INTERACTIVE MEDIA SALES PROMOTION TYPOLOGIES AND TELECOMMUNICATION OPERATORS’ BRAND EQUITY AMONG CIVIL SERVANTS IN LAGOS AND OGUN STATES, NIGERIA

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ABSTRACT

Nigerian telecommunication industry has evolved into a competitive sphere as operators endeavour to entreat and win customers through monetary and non-monetary sales promotion typologies. Telecommunication operators utilise sales promotion to create brand awareness, encourage brand trial and ultimately persuade subscribers to be brand loyals in order to increase brand equity. While telecommunication operators are increasing brand equity on interactive media, the appropriate sales promotion typology to be adopted remains a challenge. Scholars have debated usage of sales promotion to increase brand equity. Therefore, this study examined interactive media sales promotion typologies and telecommunication operators’ brand equity among State civil servants in Lagos and Ogun states.

Survey research design was adopted for the study. The population comprised 17,161 State civil servants in Lagos and Ogun states. The states were selected using simple random sampling technique. Systematic sampling technique was adopted to select the ministries. The Saunders, Lewis and Thornhill formula was used to arrive at the sample size of 880 respondents. A validated questionnaire was administered to the respondents. The Cronbach’s Alpha coefficient values for the constructs were: monetary sales promotion (0.732), non- monetary sales promotion (0.797), brand awareness (0.797), perceived brand quality (0.754), brand association (0.796) and brand loyalty (0.827); while 0.930 was obtained for the total scale.A total of 880 copies of the questionnaire were administered to the respondents with a response rate of 93.4%. Inferential statistics (simple linear and multiple linear regression) were used to analyse the data.

Findings revealed that monetary sales promotion typology significantly influenced telecommunication operators’ brand awareness (R2=0.301, p<0.05), perceived brand quality (R2=0.155, p<0.05), brand association (R2=0.171, p<0.05) and brand loyalty (R2=0.058, p<0.05). Non-monetary sales promotion typology significantly influenced telecommunication operators’ brand awareness (R2=0.304, p<0.05), perceived brand quality (R2=0.218, p<0.05), brand association (R2=0.237, p<0.05) and brand loyalty (R2=0.163, p<0.05).

The study concluded that monetary and non-monetary sales promotion typologies were useful to enhancing telecommunication operators’ brand equity. The study therefore recommended that telecommunication operators should strategically combine monetary and non-monetary sales promotion typologies that would positively increase subscribers’ perception of their brands, foster positive relationship with subscribers to generate positive attitude and promote brand loyalty.

Keywords: Typology, Sales Promotion, Brand Equity, Telecommunication Operators, Interactive Media

Word Count: 352

TABLE OF CONTENTS

          Content                                                                                                                       Page                Title Page                                                                                                                        i

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgements                                                                                                    iv

Abstract                                                                                                                      vi

Table of Contents                                                                                                       vii

List of Tables                                                                                                              ix

List of Figures                                                                                                             xi

CHAPTER ONE: INTRODUCTION                                                     

1.1       Background to the Study                                                                               1

1.2       Statement of the Problem                                                                4         

1.3       Objective of the Study                                                                                   6

1.4       Research Questions                                                                                         6

1.5       Hypotheses                                                                                                     7

1.5       Significance of the Study                                                                               8

1.6       Scope of the Study                                                                                         8

1.7       Operational Definition of Terms                                                            9

            CHAPTER TWO: REVIEW OF LITERATURE

            2.0                   Introduction                                                                           12

2.1                   Conceptual Review                                                             12

2.1.1                Sales Promotion                                                                  13

2.1.1.1             Concept of Sales promotion                                                  13

2.1.1.2             Objectives of sales promotion                                             15

2.1.1.3             Typologies of sales promotion                                            18

2.1.1.3.1     Monetary Typology of Sales promotion                       19        

  2.1.1.3.2        Non-Monetary Typology of Sales Promotion                           22

2.1.1.4             Strategies of Sales Promotion                                           23

2.1.1.5             Techniques of Sales promotion                                          25

            2.1.2                Brand Equity                                                           31

2.1.2.1             Definition of brand equity                                               31

            2.1.2.2             Brand Attributes                                                          32

            2.1.2.3.1          Brand Awareness                                                     34

            2.1.2.3.2          Brand Perceived quality                                          36

            2.1.2.3.3          Brand Association                                                          38

            2.1.2.3.4          Brand Loyalty                                                   41                   

2.1.2.4             Classifications of Brand Equity                                       42

            2.1.2.3.5          Brand Equity Scale Development                                      47

            2.1.3      Telecommunication Operators in Nigeria                         48

            2.1.3.1             MTN                                                                        53

Content                                                                                             Page

2.1.3.2             Globacom                                                                                            55

2.1.3.3             Airtel                                                                                                   56

2.1.3.4             Etisalat                                                                                               57

  •             Interactive Media                                                                                57

2.2                   Theoretical Framework                                              60

2.2.1                Prospect Theory                                                                     60

2.2.2                Expectancy Theory                                                              63

2.2.3                AIDA Model                                                           66       

 2.3                   Review of Empirical Literature                                          67

 2.4                   Summary                                                                        86

CHAPTER THREE: METHODOLOGY

3.0       Introduction                                                                                 87

            3.1       Research Design                                                        87       

3.2       Population                                                                                    87

3.3       Sample size and sampling Technique                                               88

3.4       Instrumentation                                                                          93

3.5       Validity of Research Instrument                                                    94

3.6       Reliability of Research Instrument                                                    95

3.7       Administration of Research Instrument                                           95

3.8       Method of Data Analysis                                                                   95

3.9       Ethical Consideration                                                                  96

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION OF FINDINGS

4.0       Introduction                                                                                 97

4.1       Presentation of Results                                                            97

4.2       Discussion of Findings                                                                   121

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

            5.1       Summary                                                                                      138

            5.2       Conclusion                                                                   139

            5.3       Recommendations                                                                     140

            5.4       Contributions to Knowledge                                                 141

            5.5       Suggestions for Further Studies                                              142

5.6       Limitation of the Study                                                                    144

References                                                                                                         144

Appendix I      Population of State Civil Servants in Ogun States by Ministries                   158

Appendix II    Population of State Civil Servants in Lagos States by Ministries                  159

Appendix III   Questionnaire Informed Consent                                             160

Appendix IV   Questionnaire                                                                        161

Appendix V    Test of Hypotheses Tables                                                    165

LIST OF TABLES

Table    Page

2.1                   Summary of Empirical Review                                          78

3.1                   Summary of Population and Sample Selection     88

3.2:                  Presentation of Lagos state civil servants, proportion of total population and sample size                                                                90

3.3                   Presentation of Ogun state civil servants population, proportion of total population and sample size                                        92

4.1.1                Composite Table of Respondents’ Demographic Details                               96

4.1.2                Frequency of Exposure to Telecommunication Operators’ Promotional Messages                                                                                 100

4.1.3                Awareness of Monetary Sales Promotion Typology on Interactive Media    101

4.1.4                Awareness of Non-Monetary Sales Promotion Typology on Interactive Media                                                                               103

 4.1.5                 Brand Awareness of Telecommunication Operators on Interactive Media    105

 4.1.6                 Perceived Brand Quality of Telecommunication Operators on Interactive Media                                                                                                 106

 4.1.7                 Brand Association of Telecommunication Operators on Interactive Media  108

 4.1.8                 Brand Loyalty to Telecommunication Operators on Interactive Media         109

4.1.2.1a             Model Summary for the Influence of Monetary Sales Promotion Typology on Brand Awareness of Telecommunication Operators on Interactive Media                                                                       110

4.1.2.1b             Simple Linear Regression showing the Influence of Monetary Sales Promotion Typology on Brand Awareness of Telecommunication Operators on Interactive Media                                                      110

4.1.2.2a             Model Summary for the Influence of Monetary sales promotion typology on perceived brand quality of telecommunication operators on interactive media                                                                         111

4.1.2.2b             Simple Linear Regression showing the Influence of Monetary sales promotion typology on perceived brand quality of telecommunication operators on interactive media                                                                        111

4.1.2.3a             Model Summary for the Influence of Monetary sales promotion typology on the brand association of telecommunication operators on interactive media                                                   112

4.1.2.3b             Simple Linear Regression showing the Influence of Monetary sales

promotion typology on the brand association of telecommunication operators on interactive media                                                                        112

4.1.2.4a             Model Summary for the Influence of Monetary sales promotion typology On brand loyalty of telecommunication operators on interactive media        113

4.1.2.4b             Simple Linear Regression showing the Influence of Monetary sales Promotion typology on brand loyalty of telecommunication operators on interactive media                                           113

4.1.2.5a             Model Summary for the Influence of Non-monetary sales promotion typology on brand awareness of telecommunication operators on interactive media.                                                               114

Table     Page

4.1.2.5b             Simple Linear Regression showing the Influence of Non-Monetary sales promotion typology on brand awareness of telecommunication operators on interactive media                                     114

4.1.2.6a             Model Summary for the Influence of Non-monetary sales promotion Typology on brand awareness of telecommunication operators on interactive media                                                            116

4.1.2.6b             Simple Linear Regression showing the influence of Non-Monetary sales promotion typology on perceived brand quality of telecommunication operators on interactive media                                     116

4.1.2.7a             Model Summary for the Influence of Non-monetary sales promotion Typology on brand association of telecommunication operators on interactive media.                                                      117

4.1.2.7b             Simple Linear Regression showing the influence of Non-Monetary sales promotion typology on brand association of telecommunication operators on interactive media.                                  117

4.1.2.8a             Model Summary for the Influence of Non-monetary sales promotion typology on brand loyalty of telecommunication operators on interactive media.                                                                        118

4.1.2.8b             Simple Linear Regression showing the influence of Non-Monetary sales promotion typology on brand loyalty of telecommunication operators on interactive media.                                  118

4.1.2.9a             Model Summary showing the influence of telecommunication operators’ sales promotion typologies on brand equity                                                   119

4.1.2.9b             Multiple Linear Regression showing the influence of telecommunication operators’ sales promotion typologies on brand equity                                  119

4.1.10       Summary of Findings                                                135

LIST OF FIGURES

Figure            Page

2.1   Conceptual Model of Sales Promotion and Brand Equity of Telecommunication Operators in Nigeria                                                        12

2.2   Sales Promotion Strategies: Push or Pull or Both!                              23

2.3   Aaker’s Perspectives of Brand Equity                                         34

2.4     Framework for Measuring Customer-Based Brand Equity              44

2.5     Market Share of GSM Telecommunication Operators in Nigeria        54

2.6                   AIDA Model                                                                    67

4.1.1                Respondents’ Phone Type                                        97

4.1.2   Services Used by Respondents                                        98

4.1.3      Respondents’ Telecommunication Operators                                     99

4.1.4                Interactive Media through which Respondents Receive Telecommunication Promotional Messages                         99      

4.1.5                Resultant Model                                                          137

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Nigerian telecommunication industry has evolved into a competitive sphere as operators endeavour to entreat and win customers through various sales promotion strategies. Owing to this, it is a common phenomenon for organisations to bombard consumers with both monetary and non-monetary forms of sales promotions using either print, electronic, outdoor or digital interactive media. Telecommunication operators use sales promotion to create brand awareness, encourage brand trial and ultimately persuade consumers to be brand loyals with the ultimate desire to increase or maintain market share. In the world today, every single decision and effort of the organisation is evaluated by the relationship existing between the brand and the customers as well as brand managers commitment to the claims made by the brand, which leads to consumers’ satisfaction and ultimately end with brand loyalty. Companies deploy their strength to promote sales in the shortest possible time; hence, sales promotion, a marketing communication tool involves the manufacturers providing incentives alongside their products which gives the consumers enough justification to purchase the product, service or idea.

Going by World Bank record (2012), Nigeria with a population of well over 168.8 million has 65.8% (149,818,906) active subscribers of licenced telecommunication operators. According to Nigerian Communications Commission (NCC, 2016), “Nigerian telecommunication industry is one of the largest in Africa with 151,017,244 GSM users and is still growing with one of the highest fixed line revenue and cumulative revenue of US$16billion as at June, 2016” (p. 2). The major telecommunication operators in Nigeria are MTN, Globacom (Glo), Airtel, Etisalat and they engage in fierce competition through price slash, and data bundles tailored to meet the data needs of various groups of subscribers in order to gain and retain customers as well as increase their profit margin to broaden their market share.

INTERACTIVE MEDIA SALES PROMOTION TYPOLOGIES AND TELECOMMUNICATION OPERATORS’ BRAND EQUITY AMONG CIVIL SERVANTS IN LAGOS AND OGUN STATES, NIGERIA