BUSINESS LEVEL STRATEGIES AND CUSTOMER LOYALTY OF SELECTED SERVICE FIRMS IN NIGERIA
Abstract
The ability to continually gain customer loyalty in the midst of increasing competition, increasing customer bargaining power and trust through appropriate business level strategies is a consistent challenge for service firms. This is necessary in order for firms to remain competitive and increase growth. The study therefore examined business level strategies and customer loyalty of selected service firms in Nigeria. Quantitative method and survey research design was employed in the study. The primary population was twenty-four (24) selected service firms which consisted ten (10) Deposit Money Banks, ten (10) Insurance firm and ten (10) Telecommunication firms. The secondary population was eight hundred and fifty-three (853) project team members. Stratified random sampling technique was adopted to obtain responses from the study participants. The study used validated self-developed questionnaire with KMO >0.5 <1 and AVE >0.5 and was administered to collect primary data from the participants. Reliability test of the questionnaire was achieved with Cronbach Alpha values between 0.702 and 0.807. Descriptive and inferential statistics were used analyse the data and test the hypotheses. Data analysis of the study revealed strategic project management components have statistically positive and significant effect on service quality of selected service firms in Nigeria (Adj R2 = 0.776, p=0.000, Q2 =0.552). The study concluded that business level strategies affect service quality of selected service firms in Nigeria. The study recommended that that service firms should adequately consider their cost leadership, differentiation strategy and focus strategy efforts since they directly influence customer loyalty to their services.
Keywords: Business Level Strategies, Cost Leadership, Customer Loyalty, Differentiation Strategy, Focus Strategy
JEL Classification: M10; M11; M15
CITATION: Ogunberu, A. O., Binuyo, A. O., & Akinlabi, B. A. (2022). Business level strategies and customer loyalty of selected service firms in Nigeria. The Strategic Journal of Business & Change Management, 9 (2), 1017 – 1028.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2316
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