PRODUCT BRANDING AS A TOOL FOR INCREASING CONSUMER LOYALTY IN TELECOMMUNICATION INDUSTRY IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The telecommunications industry plays a crucial and significant role in the economic stability of both developed and developing countries, including Cameroon. Like many nations, government officials and telecommunications stakeholders in Cameroon are diligently working to provide essential services, particularly in remote areas, as a means to alleviate poverty and foster economic growth (Palladan, 2017; Tchamyou, Erreygers & Cassimon, 2019; Asongu & Odhiambo, 2020). The effective regulation of the telecommunications sector has contributed to the increased success of telecommunication services in Cameroon, leading to positive impacts on the nation's economy and the advancement of sectors such as education (Olutosin, 2018). Due to its rapid technological advancement and the increased number of machine operators in a competitive market, mobile telecommunications is one of the service industries that is expanding the fastest and is the most significant market for telecommunications companies. In most countries, both developed and emerging telecommunications have become essential to organizational management and economic growth. Furthermore, 

During the initial stages of industry deregulation, acquiring customers was a primary focus as many potential clients did not already possess telephone lines. However, the landscape has shifted significantly since then. Today, the challenge lies not only in attracting new customers but also in retaining existing ones (Adeleke & Suraju, 2012; Olakunori, 1999). To thrive in this competitive environment, companies must transition their marketing strategies from solely acquiring new customers to fostering loyalty among their current customer base (Keller, 2003; Choi, 2013). Lee et al. (2018) define customer loyalty as a multifaceted concept, encompassing customer satisfaction and a commitment to maintaining an ongoing relationship with a brand or company. This loyalty is evident through various attitudes and behaviors, such as intention to purchase additional products, recommending the company to others, and resisting the urge to switch to competitors. Chinda (2020) emphasizes the importance of customer loyalty as a key attribute for brands to succeed in the market. Loyal customers not only contribute to repeat business but also serve as brand ambassadors, spreading positive word-of-mouth about the brand (Palladan & Ahmad, 2019). Beyond that, customer loyalty is all about relevance and meaning throughout every customer touch point. It is all about making the brand experience a more intimate relationship with the customers (Anjum et al., 2019). Nevertheless,in order to achieve customers loyalty, the telecommunication companies must pay more attention to its product branding. Numerous authors have provided various definitions of branding, and numerous authorities have outlined reasons justifying the adoption of branding as a marketing strategy. In addition, branding is the process of associating a distinctive and unique image or characteristic with a specific product, thereby making it stand out among other products in the perceptions and minds of consumers. Similarly, Phan and Lan (2021) defined branding as an essential and personal component of a product strategy, they encapsulated the essence of the concept. According to Lee (2019), a product isn't finished until it has a name, mark, or symbol attached to it. One of the most important techniques available to businesses to boost customer loyalty is branding (Kuo et al., 2013).Therefore, a survey will be conducted to examine product branding as a tool for increasing consumer loyalty in telecommunication industry in Cameroon.

1.2 Statement of the Problem

In the ever-changing Cameroonian telecommunications scene, service providers' primary goals are to achieve and maintain customer loyalty (Shapiro & Varian, 2019). Telecommunications companies are forced to look for creative ways to set themselves apart from the competition and build enduring relationships with customers as market saturation and competition both get more intense (Porter, 2019). Among these tactics, product branding stands out as a vital instrument for influencing client perceptions, building trust, and creating loyalty (Keller, 2020).Furthermore, telecommunication industry in Cameroon faces perceptual challenges, where consumers may perceive minimal differentiation among service providers, leading to commoditization. According to Aaker (2019), how product branding strategies are refined to effectively communicate unique value propositions and distinguish one brand from another. Also, preferences and expectations of consumers in the Cameroonian telecommunication market are subject to constant evolution, influenced by factors such as technological advancements, socio-economic changes, and cultural shifts. Hence, it is in the light of these that the study seeks to examine product branding as a tool for increasing consumer loyalty in telecommunication industry in Cameroon. 

1.3  Objectives of the Study

The main purpose of this study is to examine product branding as a tool for increasing consumer loyalty in telecommunication industry in Cameroon. Specifically, the study will;

1.Assess the current branding strategies employed by telecommunication companies in Cameroon.

2.Investigate consumer perceptions and attitudes towards branded telecommunication products and services in Cameroon. 

3.Determine whether there is a relationship between product branding and consumer loyalty within the telecommunication industry in Cameroon. 

4.Investigate factors influencing consumer loyalty towards branded telecommunication products and services.

1.4 Research Questions

The following questions have been prepared for the study:

What are the current branding strategies utilized by telecommunication companies in Cameroon?

How do consumers in Cameroon perceive and view branded telecommunication products and services?

Is there a correlation between product branding and consumer loyalty within the telecommunication industry in Cameroon?

What factors play a role in shaping consumer loyalty towards branded telecommunication products and services?

1.5  Research Hypothesis

H0: There is no significant impact of product branding on consumer loyalty in telecommunication industry in Cameroon

Ha: There is a significant impact of product branding on consumer loyalty in telecommunication industry in Cameroon

1.6  Significance of the Study 

The findings of this study will enable telecommunication companies focus on branding strategies that are most likely to enhance loyalty, allocate their marketing resources more effectively and drive customer retention. Also, companies will be able to maximize their return on investment in marketing activities. Additionally, it will help telecommunication companies uncover ways to build stronger relationships with their customers, leading to increased satisfaction, loyalty, and advocacy. Further more, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to product branding as a tool for increasing consumer loyalty in telecommunication industry in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on product branding as a tool for increasing consumer loyalty in telecommunication industry in Cameroon. Empirically, this study will assess the current branding strategies employed by telecommunication companies in Cameroon, investigate consumer perceptions and attitudes towards branded telecommunication products and services in Cameroon, determine whether there is a relationship between product branding and consumer loyalty within the telecommunication industry in Cameroon and investigate factors influencing consumer loyalty towards branded telecommunication products and services.

Geographically, the study will be delimited to employees of some selected telecommunication companies in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Branding: is a fixation of special and unique image or attribute to a particular product, which makes it to be exceptional among other products in the eyes and minds of consumers (Ehikwe, 2018).

Product: is anything that is thought to be inclusive of the buyer's contentment and the utilities they receive from the purchase (Malik et al., 2020)

Customer loyalty: can be described as the customer’s expression of deep commitment to re-patronize a chosen product or service steadily, regardless of situational effects and marketing struggles that have the probability to cause customers to switch to competing providers (Santouridis & Trivella, 2020).