VALUE CREATION AND CUSTOMER RETENTION OF QUOTED PHARMACEUTICAL COMPANIES IN NIGERIA

T. D. IBIKUNLE; I. E. OGUNTUASE

T. D. IBIKUNLE Department of Entrepreneurship, School of Management Sciences, Olusegun Agagu University of Science and Technology, Okitipupa, Ondo State, Nigeria.
I. E. OGUNTUASE Department of Business Management, School of Management Sciences, Olusegun Agagu University of Science and Technology, Okitipupa, Ondo

Keywords: Value creation, Market value creation, Strategic value creation, Customer retention

Abstract

Pharmaceutical companies have a vital role in assuring that people have opportunity to high- quality and affordable medications from preventive care to emergency interventions. Despite the contribution of the companies to citizens in developed and developing countries, the performance of the companies has been on decline in customer retention. Studies revealed that many companies have not adequately incorporated value creation activities in their operations. The study identified the effect of value creation on customer retention of quoted pharmaceutical companies in Nigeria. The study adopted a survey research design. The population was 308 made up of executive manager, directors and marketing department official in these quoted pharmaceutical companies in Nigeria. Data was collected using a valid and reliable questionnaire with a Cronbach alpha value greater than 0.7. Data were analysed using both descriptive and inferential statistics. The results revealed that value creation had significant effect on customer retention of quoted pharmaceutical companies in Nigeria (Adj. R² = 0.229, F (4, 297) = 23.306, p < 0.05). The study concluded that value creation had significant effect on customer retention of quoted pharmaceutical companies in Nigeria. The paper recommended that management of quoted pharmaceutical companies should adopt proactive marketing strategies and reward programs in other to enhance performance.