CUSTOMER VALUE PROPOSITION DIMENSIONS ON MARKET SHARE OF INDIGENOUS OIL AND GAS COMPANIES

Abstract

The value customers attached to a product and the choice of such product is paramount to any organisation aspiring to capture larger market share. However, some organisations do not strategically position their products to the minds of customers in terms of functional, monetary, or psychological values, therefore losing a greater percentage of the market share. This study examined the effect of customer value proposition on market share of indigenous oil and gas companies in Rivers State, Nigeria. Survey research design was adopted for the study. The population of study consist of 322 management staff of 11 indigenous oil and gas companies in River state, Nigeria. Total enumeration was used for the study sample size as the population was not large. Primary source of data collection was adopted via a validated instrument. Cronbach alpha reliability coefficients for the constructs ranged from 0.728 to 0.786. Simple random sampling technique was used and 307 copies of the questionnaire came back representing 84%. Data was analyzed using descriptive and inferential statistics. Multiple regression was used to test the hypothesis. Findings revealed that Customer value proposition dimensions (functional, monetary, psychological value proposition) have significant effect on market share of indigenous oil and gas companies in River state, (Adj.R2 = 0.582; F (3, 303) = 143.149, p < 0.05). The study concludes that customer value proposition dimensions have significant effect on the market share of the selected indigenous oil and gas companies in Rivers State, Nigeria. The study recommended that management of the selected indigenous oil and gas companies in River State should invest in enhancing their ICT tools, skills and capabilities. Developing value propositions that are tailored to the specific needs and preferences of their target customers.