An examination of pricing and promotion challenges on customer loyalty: Evidence from a retail electronics firm in Kaduna, Nigeria
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Background of the study
Retail electronics firms in Kaduna operate in a competitive market where customer loyalty is paramount for sustained success. However, pricing and promotion challenges pose significant obstacles to maintaining long-term consumer relationships. Pricing challenges, such as frequent price fluctuations and lack of transparency, coupled with ineffective promotion strategies, can erode consumer trust and reduce loyalty (Afolabi, 2023). When promotional messages are inconsistent or misleading, customers may doubt the fairness of pricing and the true value of the products, which diminishes their commitment to the brand (Chukwu, 2024). In a market where technological products are continuously evolving, establishing a stable pricing structure and clear promotional communications is crucial. This study examines how pricing and promotion challenges impact customer loyalty for a retail electronics firm in Kaduna. By integrating consumer surveys, sales data analysis, and marketing performance reviews, the research aims to identify key factors affecting loyalty and provide recommendations for enhancing pricing transparency and promotional effectiveness to foster stronger customer relationships (Okeke, 2025).
Statement of the problem
Retail electronics firms in Kaduna experience significant pricing and promotion challenges that undermine customer loyalty. Inconsistencies in pricing and ambiguous promotional messages create consumer uncertainty and reduce trust, leading to lower repeat purchase rates. Despite the importance of maintaining customer loyalty, there is a lack of research specifically addressing how these challenges affect consumer behavior in the electronics sector. This gap hinders the development of strategies that could enhance pricing transparency and promotional clarity, thereby improving customer retention. The study seeks to address this gap by evaluating the effects of pricing and promotion challenges on customer loyalty (Balogun, 2023).
Objectives of the Study
To assess the impact of pricing challenges on customer loyalty.
To evaluate how promotion challenges affect consumer retention.
To recommend strategies for improving pricing and promotional practices.
Research questions
How do pricing challenges impact customer loyalty?
What is the effect of promotion challenges on consumer retention?
What strategies can enhance loyalty amid these challenges?
Significance of the Study
This study is significant as it examines the effects of pricing and promotion challenges on customer loyalty for a retail electronics firm in Kaduna. The insights derived will help marketers develop more transparent pricing and effective promotional strategies, thereby enhancing customer retention and brand strength. The research contributes to academic literature and offers practical recommendations for overcoming key challenges in the retail electronics market (Oluwaseun, 2024).
Scope and Limitations of the Study
The study is limited to a retail electronics firm in Kaduna and focuses on pricing and promotion challenges affecting customer loyalty. It does not extend to other sectors or regions.
Definitions of Terms
Pricing Challenges: Difficulties in setting consistent and transparent prices.
Promotion Challenges: Obstacles in executing effective marketing campaigns.
Customer Loyalty: The willingness of consumers to repeatedly purchase from a brand.
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