The Effect of Pricing Strategies on Customer Retention in Ethio-Telecom in Case of Addis Ababa City
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Date
2023-06
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Addis Ababa University
Abstract
This study's goal is to investigate how Ethio Telecom's pricing approach affects customer retention. A price discount, a premium price, and price skimming were all employed to assess the impact on customer retention. Both a descriptive and an explanatory research design were selected to meet the study's goal. Additionally, a quantitative research approach was used, 113 clients were chosen using convenience sample procedures to participate in the study as responders. According to the correlation result, all price strategies and client retention have a favorable and significant association. Additionally, the results of the multiple regression analysis showed that every variable had a favorable and significant impact on customer retention. Additionally, it was discovered that price reduction has the highest influence on Ethio Telecom's ability to retain customers. According to the analysis, the researcher advises Ethio Telecom to give the price discount component of its pricing strategy priority implementation over other variables because it has the greatest impact on customer retention. Based on the conclusions of this study, Ethio Telecom may think about providing various discounts targeted at everyone. The business also suggested using dynamic pricing to draw in their loyal customer base. Finally, Ethio Telecom consistently and effectively apply its most essential pricing strategy as a key instrument for creating a competitive edge, which in turn promotes customer retention