ANTECEDENTS OF CUSTOMER RETENTION: EVIDENCE FROM MOBIL PETROL STATIONS IN IKORODU AREA OF LAGOS STATE, NIGERIA

Abstract

The intense competition and low margins in the retail petrol market of Nigeria’s downstream petroleum sector have made customer retention very important in the market. This research examined the antecedents of customer retention in Nigeria’s petrol stations. Using the research instrument of questionnaire, data were collected from a valid sample of 600 respondents at four outlets of Mobil at Ikorodu, Lagos State, Nigeria. Using SPSS 23, data analysis was undertaken by a Multiple Regression Model to test the three research Hypotheses. The results supported all the three hypotheses in a significant way. Brand image, service quality, and Trust have significant effects on customer retention in Mobil Petrol Stations. Brand image has the strongest effect on customer retention. The other two constructs also have robust effects on customer retention. The findings contribute to the scarce literature on customer retention in the context of Nigeria’s retail petrol market. It was concluded that brand image, service quality, and Trust are very important in retaining customers of petrol stations. The practical implications of the findings for managers and scholars are also highlighted in the paper.