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An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications

Author

Listed:
  • Adebiyi Sulaimon Olanrewaju

    (Department of Business Administration, Fountain University, Osogbo, Nigeria)

  • Oyatoye Emmanuel Olateju

    (Department of Business Administration, University of Lagos, Nigeria)

  • Kuye Owolabi Lateef

    (Deprtment of Business Administration, University of Lagos, Nigeria)

Abstract

The introduction of mobile number portability (MNP) in the Nigerian telecommunications industry has brought a new challenge for mobile operators. This study investigates the use of Analytic Hierarchy Process (AHP) in customer retention decisions in the Nigerian telecommunication industry using a cross-sectional survey design. Primary data were obtained through questionnaires administered to 480 mobile telecommunications subscribers in six tertiary institutions located in Lagos State, Nigeria. These educational institutions were chosen using a multistage sampling technique. Of 438 questionnaires received from subscribers, 408 were valid. Based on this sample data an AHP model was built to assess the determinants of customer retention decisions. Next, eigen values, an eigen vector and maximum lambda (λMax) were obtained using the AHP analysis for the matrices. This analysis shows that customers considered call quality as the important in the retention decision. We conclude that AHP is a meaningful tool for determining what motivates retention decisions, that can help network operators formulate effective customer retention strategies.

Suggested Citation

  • Adebiyi Sulaimon Olanrewaju & Oyatoye Emmanuel Olateju & Kuye Owolabi Lateef, 2015. "An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 48(1), pages 63-83, December.
    • Handle: RePEc:vrs:ijomae:v:48:y:2015:i:1:p:63-83:n:4
    DOI: 10.1515/ijme-2015-0035
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    analytic hierarchy process; mobile number portability; retention management; telecommunication; marketing strategies;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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