Pricing Strategy and Customer Retention in Nigeria National Petroleum Corporation Retail Outlets, South-West, Nigeria

Abstract

Given that today's consumers are more informed about what they want and how to obtain it cheaply, managers must be more strategic and pro-active while making decisions relating to price system. In a selected South-West retail outlets of the Nigerian National Petroleum Corporation (NNPC), this study investigates pricing strategy and its relative effect on customer retention. Questionnaire was used to collect primary data from a sample of 384 customers drawn from six mega stations and twelve affiliate stations located in the region. Multiple regression analysis was used to test the hypotheses formulated. Results indicated that pricing strategy has a significant impact on customers’ retention. The study concluded that pricing strategy adopted in NNPC retail units must be in tune in determining customer retention, thus, it was recommended that management of NNPC retail outlets must consider pricing system as an integral part of their marketing strategy.