Price Fairness, Service Recovery and Customer Satisfaction in the Mobile Telecommunication Industry in Nigeria

Omoera, C.I (2017-02)

A Thesis Submitted to the School of Postgraduate Studies, University of Lagos


The life wire and the bedrock of any business is customer satisfaction. Evidently, the available market is one major considerations for the success of the telecommunication industry in Nigeria. Companies providing telecommunication services have been striving to seek effective pricing strategies and subscribers’ perceptions of price fairness. In addition, the rate at which services fail and are subsequently recovered in the Nigerian mobile telecommunication sector is hugely disturbing. The need to understand the relationship between subscribers’ perceived price fairness and service recovery on customer satisfaction have necessitated investigation into this study. Four objectives were put forward for consideration and were basically translated into corresponding hypotheses in order to provide answers to the research questions. In order to achieve these objectives, a cross-sectional survey method was adopted using the descriptive research design. A well-structured questionnaire was used also as data collection instrument. The entire subscribers of the four active telecommunication network providers in the five divisions of Lagos State were taken as the study population. Multi-stage sampling technique was employed to draw the sample size of 610 from the target population. The data collected were subjected to analysis by percentages, mean score, standard deviation and frequency tables. The stated hypotheses were tested using the Pearson’s Product Moment Correlation, Simple Regression and Multiple Regression analyses, with the aid of the Statistical Package for Social Sciences (SPSS) software version 20.0. The findings revealed that perceived price fairness is significantly related to customer’s satisfaction (R = 0.451, P =0.000 < 0.05) and perceived price fairness and service recovery when combined together, have significant effect on customer’s satisfaction with multiple R (0.549). It is recommended that Government, while playing its regulatory role, should enact laws to protect subscribers from being exploited through abnormal pricing or provision of poor service.