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Marketing Project Topics

The Impact of Affiliate Marketing on the Performance of Online Businesses in Nigeria

The Impact of Affiliate Marketing on the Performance of Online Businesses in Nigeria

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The Impact of Affiliate Marketing on the Performance of Online Businesses in Nigeria

Chapter One

Researchย Objective

This study aimed to determine the effect of affiliate marketing on The performance of online businesses in Lagos.

  1. To determine the determinants of Customer patronage
  2. To evaluate various affiliate marketing techniques adopted by telecommunication companies in Nigeria.
  3. To examine peopleโ€™s perception of such affiliate marketing
  4. To determine the overall influence of such affiliate marketing approaches on customersโ€™ patronage of telecom services.

CHAPTER TWOย 

LITERATUREย REVIEW

ย Introduction

The chapter gives the relevant literature available, main studies conducted and their results. Itย providesย a theoreticalย frameworkย forย researchย andย clearlyย identifiesย researchย gaps.

Theoreticalย Framework

Affiliate marketingย andย socialย exchangeย theoriesย wereย adopted.

Affiliate marketingย Theory

Bringingย together manyย seeminglyย unrelatedย marketingย ideas,ย DM isย aย popularย concept.ย Customerย relationship management (covered in this current study), marketing strategy, database marketing,ย business-to-businessย marketing,ย strategicย thinking,ย legalย relationships,ย business-to-businessย marketing, and affinity marketing. Each bringing significant benefits to both buyers and sellersย (Zinkhan, 2002). DM is a multidisciplinary and integrative approach because it looks at marketingย asย anย integratedย process thatย integratesย differentย functionsย inย theย organizationย andย aimsย atย promoting, maintaining and establishing connections in the long run (Coviello et al. 1997). A keyย ideaย inย theย affiliate marketingย paradigmย isย loyalty. Keepingย customersย forย lifeย reducesย theย costย ofย acquiringย newย customersย andย increasesย profitabilityย (Muok,ย 2018ยฌ).

Customerย acquisitionย isย stillย theย marketer’sย job,ย but affiliate marketingย focusesย onย theย factย thatย in the long run, customer retention and customer development are equal and even more importantย to your business. From a affiliate marketing perspective, the emphasis on relationships ratherย than transactions suggests that customers have ongoing value over the life of the organizationย (Berry,ย 1995).ย Forย theย purposeย ofย profitย andย ensuringย objectivesย ofย allย stakeholdersย areย reached, RMโ€™s role is to maintain, find, establish, and strengthen connections with stakeholders. Andย commitments are kept by exchanging goods and services (Gronroos, 1990).RM began to evolveย when it moved from viewing the marketplace as transactional to looking at it as an ongoingย relationship.ย Weย focusedย onย ourย relationshipย withย ourย customers.ย Inย marketing,ย hisย fourย phasesย thatย have contributed to understanding DM include Marketing channels, service marketing, affiliate marketing,ย databaseย marketing,ย andย B2Bย marketingย (Mรถllerย andย Halinen,ย 2006).ย DM suggestsย thatย when a company provides value toย its customers, itย strengthens customer relationships andย increases customer retention. We focus on developing approaches and strategies that generateย customer patronageย andย break awayย fromย traditionalย marketingย withย aย single sellingย strategy.

According to RM, sales alone cannot define a company’s success, but they view sales as theย beginning of a relationship with a customer, and consider the profit from that relationship aย measure of the firmโ€™s achievement. We try to build an ongoing relationship with our customers.ย This can be achieved through excellent customer service or offering additional features. It talksย aboutย deliveringย customerย value,ย believesย customersย comeย firstย andย considersย long-termย relationships.ย Strivingย toย provideย robustย customerย service,ย DM understandsย customerย expectationsย and promise to meet their expectations. She works on total quality control. According to RM,ย product pricing should be determined by negotiation and consensus, not by competitivenessย (Juneja,ย 2015).

The theory of DM is relevant because nurturing long-term relationships with clients is probablyย more ideal than pursuing individual, unrelated interactions. This is a viable strategy for gaining aย competitive advantage. By communicating and initiating partnerships with customers, mobileย operators create opportunities to forming strong bonds with customers. This can be mutuallyย beneficial, especially if both parties are interested in realizing long-term returns (Ganesan, 1994).ย DM concept can further be difficult to implement because it is not always desirable or possible toย maintain close relationships with customers (Webster, 1992). Creating them can consume bothย time and resources. Clients may resist the company’s efforts to establish relationships for theirย ownย reasons.

Socialย Exchangeย Theory

SEย isย aย processย ofย exchangeย betweenย peopleย thatย isย eitherย rewardingย orย costly.ย Theย theoryย postulatesย that social behavior is the result of exchange processes aimed at maximizing gains and reducingย expenses. This theory holds that individuals consider the possible advantages and disadvantagesย of social interactions, and if the disadvantages outweigh the advantages, individuals are moreย likely to terminate or depart the relationship. It is said that they try to get a lot from Individualsย wantย toย maintainย relationshipsย becauseย theyย expectย themย toย beย rewarding.ย Homansย summarizesย theย systemย ofย socialย exchangeย theoryย intoย threeย propositions:ย Theย promiseย ofย successย meansย thatย whenย aย personย isย compensatedย forย theirย behavior,ย theyย areย likelyย toย repeatย thatย behavior.ย Secondly,ย isย theย stimulus proposition which indicates that when a given stimulus has led a reward several times inย the past, the more likely a person is to respond to it. Finally, deprivation suggests that each extraย unit of a client’s reward gets less valuable the more recently the consumer has gotten that reward.ย (Homans, 1958). The social exchange theory has been shown to help explain customer patronageย whenย basedย onย theory.

 

CHAPTER THREEย 

RESEARCHย METHODOLOGY

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ย Introduction

The chapter covers the procedure to be adopted in conducting the research. It will explain suchย itemsย as;ย researchย design,ย dataย collection,ย dataย analysis,ย populationย ofย studyย andย sampleย design.

Researchย Design

The design adopted was descriptive cross-sectional survey. Descriptive research deals with what,ย where, or how much of a phenomenon. In this case, researchers have some understanding ofย important aspects of the phenomenon, but little or no knowledge of its characteristic propertiesย andย details.ย Theย studyย wasย doneย atย specificย timeย andย thereforeย furtherย classifiedย asย cross-sectional.ย Descriptiveย cross-sectionalย researchย methodsย useย structuredย toolsย suchย asย questionnairesย toย investigateย phenomenaย orย topics,ย andย useย descriptiveย dimensionsย suchย asย frequencies,ย percentages,ย means,ย standardย deviations,ย andย statisticalย relevanceย toย identify distinctions.ย Itย isย theย mainย investigativeย processย fromย whichย conclusionsย canย beย drawn.ย Descriptiveย researchย methodsย provideย the basis for research, examining the relationships between variables that explore why/how/whatย connections are made, and the consequences of such variables, in this case affiliate marketingย andย customer patronageย (Cooper andย Schindler,ย 2014).

Populationย ofย Studyย 

All customers from the five major service providers in Nigeria namely Globacom, Airtel Nigeria,ย MTN Nigeria communications formed the study population.ย Theย numberย ofย activeย mobileย phoneย contractsย (SIMย cards)ย wasย 64.9ย millionย andย percentageย mobile (SIM) subscription market share were Globacom PLC 64.6%, Airtel Networks 26.4%, MTN Nigeriaย (Sectorย statisticsย report,ย 2021-2023).

CHAPTERย FOUR

DATAย ANALYSIS,ย FINDINGSย ANDย DISCUSSION

ย Introduction

Thisย chapterย givesย aย presentationย ofย theย resultsย ofย theย researchย andย itsย analysis.ย Theย analysisย isย guidedย byย theย objectiveย ofย theย study.

CHAPTERย FIVE

ย SUMMARY,ย CONCLUSIONย ANDย RECOMMENDATIONS

ย Introduction

Thisย chapterย putsย togetherย findingsย fromย chapterย four.ย Itย furtherย givesย conclusionย andย recommendations based on the research objective which in this case was to determine the effectย ofย DMย onย The performance of online businessesย inย Lagos.

Summaryย ofย theย Findings

ย DMย is importantย andย companiesย areย usingย itย toย gainย competitiveย advantageย andย inย turnย winย loyalย customers. Mobile telecommunications service providers in Lagos have not been left out asย customers are on the lookout for the one that serves them better. The current research focused onย finding out whether DM had been adopted by the mobile telecommunications service providersย in Lagos. Various statements relating to determinants of DM, were posed to respondents toย show level of agreement or disagreement. The results in a nut shell revealed that DM has beenย adoptedย byย mobileย telecommunicationsย serviceย providersย inย Lagos.ย Thisย isย becauseย allย responsesย to each statement had MS of above 3.40 except one statement under communication on whetherย the company makes follow ups on customer feedback that scored a MS of 3.31 meaning majorityย ofย theย respondentsย wereย neutralย onย this.ย Thisย studyย alsoย aimedย toย findย outย ifย customersย wereย indeedย loyal to their respective service providers. Statements that related to the determinants of CP wereย sent out to respondents and majority scored a MS of above 3.40 indicating that they concurredย with the statements. However respondents disagreed that they are not willing to pay more forย services offered by their service providers with a MS of 2.60.They were neutral on whether theyย followย theirย respectiveย serviceย providersย onย socialย mediaย toย keepย upย withย everythingย thatย was happening with a MS of 3.05 and on whether they were likely to move to other providers ofย services with a MS of 2.75.The regression analysis revealed a substantial impact of empathy,ย communication,ย reciprocity,ย sharedย value,ย trust,ย andย bondingย onย CL.ย Bondingย andย reciprocityย wereย foundย toย beย betterย predictorsย ofย CL.

Conclusion

With an objective to determine the effect of DM on The performance of online businesses in Lagos, this study has clearly revealed that there is a substantial impact of empathy,ย communication,ย reciprocity,ย sharedย value,ย trustย andย bonding,ย whichย areย determinantsย ofย DMย thatย were adopted in the current study, on CL. In as much as all these determinants have an impact onย CL, bonding and reciprocity were found to better predict CL. The mobile telecommunicationsย providersย ofย serviceย inย Lagosย haveย embracedย DMย practicesย andย thisย isย evidentย fromย theย findings.ย Itย is importantย toย noteย thatย thereย areย stillย areasย thatย needย moreย focusย toย makeย itย moreย successful.

ย Recommendationsย ofย theย Study

Results from this study have revealed that DM has a substantial impact on CP in the mobileย telecommunications serviceย provisionย in Lagos.ย It thereforeย recommends thatย fiveย serviceย providers,ย Globacom,ย Airtelย Nigeria, MTN Nigeriaย om,ย shouldย be more effective in the implementation of the six determinants of DM adopted in this study.ย Theย serviceย providersย shouldย putย moreย effortย inย ensuringย bondingย andย reciprocityย areย givenย priorityย asย theyย substantiallyย impactย CL.

Telecommunications service providers should put more emphasis in following up on customerย feedback. This is because it scored a mean of 3.31 meaning respondents were neutral about this.ย Thisย clearlyย meansย thatย aย lotย stillย needsย toย beย doneย toย helpย winย moreย loyalย customersย thatย mayย feelย left out because of their feedback not being attended to. The study also recommends that mobileย telecommunications service providers should align with their customers in terms of beliefs. Thisย is because half of the respondents felt they did not have much in common with their serviceย providers.ย Itย is extremelyย importantย toย have commonย beliefsย andย goals.

The study recommends that mobile telecommunications service providers focus on ensuring thatย theyย giveย qualityย andย exemplaryย services.ย Accordingย toย theย currentย study,ย mostย ofย theseย consumersย are reluctant to pay more for services offered by their respective service providers. The only wayย they will do is when they feel that they are receiving premium services. This will also ensure thatย thereย isย noย switchingย behaviorย asย mostย respondentsย alsoย admittedย theyย couldย easilyย switchย toย otherย available options.

The final recommendation from this study is that Mobile Telecommunication service providersย should ensure that they do enough research to fully understand their customers. As much asย majority concurred that research is done, a MS of 3.53 means there is still a lot to be done.ย Consumerย researchย shouldย beย aย continuousย undertakingย inย everydayย runningย ofย theย company.ย Thisย mayย beย theย onlyย wayย customerย needsย andย wantsย willย beย metย andย thereforeย gainingย loyalย customers.

REFERENCES

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