Key Drivers of Brand Loyalty among Homogenous Firms: The Case of the Nigerian Telecommunication Industry

Abstract

No firm operates in a vacuum without interacting within the immediate environment as well as reacting and counteracting with internal and external forces. Each firm operating in an industry strive to expand its operations gaining more market shares, while warding off rival firms from gaining competitive grounds comparatively. The Nigerian telecommunication industry possesses the characteristics of an oligopolistic industry which is predominantly a competitive industry with rival firms vying to retain customers’ loyalty and expand market share. The study thus investigates the impact of key drivers on brand loyalty among the firms. The PLS-SEM analysis employed in the study showed that while communication, cooperation and trust positively impact brand loyalty, product quality, value-for-money and service quality had no significant impact on brand loyalty. The study thus recommends that individual firms take conscientious efforts to develop and implement policies to stimulate brand loyalty as well as expand market share. The policy implications of this study can be applied to other competitive industries in Nigeria.