Effect Of Human Relations On Sales Performance In The Telecommunication Industry With Special Reference To MTN Nigeria

Abstract

The general objective of the study is to establish the influence of human relations on sales performance in the telecommunication industry in Nigeria with special reference to MTN Nigeria. The study used descriptive research design in form of cross-sectional survey. The population of interest of this study was the telecommunication firms in Nigeria. The study sampled a total of 80 respondents through stratified and random sampling from the three categories of telecommunication firms. The sample was equal to 20% of the entire population. The study used both secondary data from the firm’s published financial reports and websites and primary data collected using questionnaire. Descriptive analysis was employed; this included the use of weighted means, standard deviation, relative frequencies and percentages. The data was coded to enable the responses to be grouped into various categories. Descriptive statistics was used to summarize the data. This included percentages and frequencies, tables and other graphical presentations as appropriate to present the data collected for ease of understanding and analysis. Regression analysis used to establish the relationship between the study variables.

The study found that interactive communication influences the human relations on sales performance in the telecommunication industry in Nigeria. The study revealed that established that customer experience influences the human relations on sales performance in the telecommunication industry in Nigeria. The study established that sales performance influences the human relations on in the telecommunication industry in Nigeria. The management recommended the establishment of an interactive communication between the customer and the company itself which will in turn help in being effective in achieving final purchase. The management also recommended the building of the customer and company relationship which will help the company to identify what customers want and provide that value in a product. The management also recommended that the company use integrated marketing communication approach, which will in turn help to alleviate miscommunication and confusion. Telecom companies in Nigeria should ensure that customers’ satisfaction is met at any given time to maintain their customer base.

The study recommended that the management the establishment of an interactive communication between the customer and the company itself which will in turn help in being effective in achieving final purchase. There is need for the to help in building customer and company relationship which will help the company to identify what customers want and provide that value in a product. The study recommended that the company use integrated marketing communication approach, which will in turn help to alleviate miscommunication and confusion. Telecom companies in Nigeria should ensure that customers’ satisfaction is met at any given time to maintain their customer base. The management should encourage retention of customers and increase profitability of the organization, Telecommunication companies should ensure that they respond to customer need swiftly.

Chapter One

1.0 Introduction

1.1 Background Of The Study

Human relations (RM) is a new paradigm that propounds ways to maximize organizational profitability in the emerging liberalized markets (Duncombe & Heeks, 2005). The term human relations emphasize trust, commitment and social norms. The key structural issue in human relations stems from its raison: exchanging resources to provide mutual benefits and thus achieve mutual goals. This differentiates it from the conventional view of marketing offered by the American Marketing Association (1985) which involves the integrated analysis, planning and control of the marketing mix variables like product, price, promotion, and distribution to create exchange and satisfy both individual and organizational objectives.

Achieving greater sales performance is of great importance to sales and finance managers. In today’s business environment, organizations must rely on accurate data to make key sales performance decisions, and avoid the risk of being overtaken by the competition. One leading industry analyst estimates that companies may experience as much as 10 percent in lost revenue from misaligned territories, quotas and sales plans. Sales performance is used to determine the ability of a sales person to close the deal with the company and meet set performance goals as outlined by the company. Sales performance can also indicate the rate of customer loyalty to the business or a specific employee. Loyal customers can automatically enhance the sales performance of a business. Customer loyalty refers to customers who regularly purchase products from the business and refer other customers to the store.

Human relations is about mutuality in the sense that it is an approach that is perceived as benefiting both to the buyer and the seller (Berry, 1995). Information technology is deployed to improve communication between the supplier and the buyer. Information technology can also be used to reduce the number and frequency of service errors and breakdowns. Extra value is included so that the core service offering is improved and increased personalization can result (Berry, 1995). Marketers do and will continue to think in terms of providing benefits to customers and this means that companies will remain customer-focused. Marketers will be market-driven, and will seek to deliver better value and higher levels of customer satisfaction than previously (Achrol & Kotler, 1999).

The human relations perspective is based on human relations and the notion that on top of the value of products and/or services that are exchanged, the existence of a relationship between two parties creates additional value for the customer and also for the supplier or service provider (Grönroos, 2000b). An on-going relationship may offer the customer security, a feeling of control, a sense of trust, minimized purchasing risks, and in the final analysis reduced costs of being a customer.

Arndt (1979) observed a tendency of doing business in the form of long-term relationships, which he labeled “domesticated markets”. Arndt (1979) concluded that both business markets and consumer markets benefit from attention to conditions that foster relational bonds leading to reliable repeat business. Levitt (1983a) used a marriage analogy in noting that the sale merely consummates the courtship how good the marriage is depending on how well the relationship is managed by the seller. A shift of focus in marketing decision making from the transaction toward a process where a relationship is built and maintained has important effects on central marketing areas, such as organization planning, organizational development and the measurement of success in the marketplace (Brodie, Duncombe & Heeks, 1997).

1.2 Research Problem

Managing relationships between a company and their customers, distributors, employees, and customer referral sources are vital to sustained growth and stability of the company. Customer relationships is the driving force for company competitiveness hence loyal relationships with these valued individuals makes the company more competitiveness over its rivals (Peck et al., 1999). As markets become increasingly competitive, price competition intensifies and reduced loyalty appears to be the norm. In many industries, marketing budgets are being restructured to devote more resources to defensive marketing (Kotler, 1992). With the growth of marketing databases and the Internet, reaching customers individually became a viable strategy for a wide range of firms including companies in the consumer products industry (Gummesson, 1999).

The telecommunications industry in Nigeria, just like the rest of the world, is going through profound changes (CAK, 2014). In the recent past, technological advancement and regulatory restructuring have transformed the industry. In Nigeria the telecommunication industry has been characterized by declining voice revenues, intensified competition, decline in customer loyalty, decline in sale growth, decline in market share for some providers, increased regulations, technological advancements and changing consumer needs (CAK, 2015).

The link between human relations and sale performance has attracted immense interest in marketing research over the past few years. Empirical studies conducted include Matagne and Gérard (2014) did a study on the role of human relations for customer satisfaction in the banking sector in Sweden. The study revealed that there was positive relationship between human relations and customer satisfaction in the banking sector in Sweden. This study failed to establish how human relations influences sales growth. Desbordes (2013) conducted a study on the effect of customer human relations on performance in the banking industry in Ghana. The study established that human relations significantly affects the performance of the bank in Ghana.

Lan (2015) conducted a study on the impact of human relations on customer loyalty in the airline industry in Finland. The study revealed that human relations impacted positively on customer loyalty in the airline industry in Finland. Loyalty in this case This study did not deal with the impact of human relations on sales growth.

Kuria (1999) looked at the state of human relations strategy in the Nigerian banking sector. The study established that though awareness of the human relations strategy was high, its implementation was rather low and unilateral. Karimi (2014) did a study on the impact of human relations practices on customer retention in the insurance industry in Nigeria. The study revealed that insurance companies have adopted customer satisfaction practices to a large extent. Murage (2012) did a study on the extent of usage of human relations strategies in the paint industry to enhance brand loyalty of industrial customers. The study concluded that majority of the paint industry executives were not aware of the relationship-marketing concept. Waiganjo (2012) conducted a study on the influence of human relations on the performance of large supermarkets in Port Harcourt.

The empirical studies reviewed in this section were conducted in other sectors of the economy other than the telecommunication industry, these sectors have different operating environment compared to telecommunication industry. Telecommunication industry in Nigeria is operating in turbulent competitive environment coupled with changing consumer needs; there is need for a study to be done on the telecommunication industry to establish how human relations influences sale performance. This study sought to fill the existing research gap by answering the following research question, to what extent does human relations influence sales performance in the telecommunication industry in Nigeria?

1.3 Research Objectives

The general objective of the study is to establish the influence of human relations on sales performance in the telecommunication industry in Nigeria using a case study of MTN Nigeria. The study will be guided by the following specific objectives

To determine the influence of interactive communication on sales performance in the telecommunication industry.
To examine the influence of customer experience on sales performance in the telecommunication industry.
What is the influence of interactive communication on sales performance in the telecommunication industry?
What is the influence of customer experience on sales performance in the telecommunication industry?

1.4 Research Hypothesis

HO: There is no significant relationship between human relations and sales performance in the telecommunication industry in Nigeria
HA: There is no significant relationship between human relations and sales performance in the telecommunication industry in Nigeria

1.5 Significance Of The Study

The findings of the study will assist policy makers in the telecommunication industry in designing policy aimed at enhancing the sales performance of the telecommunication firms through the application of human relations. The study will assist marketing practioners in understanding how human relations influences sales performance of companies.

The findings of the study will be of great importance to management of telecommunication companies in Nigeria, especially MTN as they will get enlightened on the influence of human relations on sales performance in the telecommunication industry. This will assist them in designing human relations approach strategies aimed at enhancing their sales growth. The findings of this study will assist the management of telecommunication companies to improve their sales revenue through human relations strategies.

The findings of the study will be of great importance to future scholars and academicians as they will form the basis for future studies by identifying areas for further research and providing literature review to future studies on the influence of human relations on sales growth. The study will add to the body of knowledge on the influence of human relations on sales growth.

Chapter Five

5.0 Conclusion And Recommendations

5.1 Conclusion

The study concludes that interactive communication influences the human relations on sales performance in the telecommunication industry in Nigeria. The study established that the organizations marketing communication helps to move the customer along stages of services and ultimately achieve final purchase, personal communication system is very effective as it gives room for quick feedback, organization customer interaction focuses on establishing of strong relationships, which positively affect the sale of their products.

The study established that customer experience influences the human relations on sales performance in the telecommunication industry in Nigeria. Through value of relationship they seek to create new value for customers and then shares the value between consumers and the company, through interaction processes a value base is transferred to the customer, through human relations the company to identify what customers want and provide that value in a product and develops a give and take relationship with the customer. That the company uses integrated marketing communication approach, this helps to alleviate miscommunication and confusion and that through interaction processes a value base is transferred to the customer.

The study concludes that sales performance influences the human relations in the telecommunication industry in Nigeria. It established that the company retains their customers for the past three years, that there has been an increase in average customer spend in the last 3 years, that there has been an increase in average customer spend in the last 3 years, there has been an increase in on stock turnover rate in the last 3 years and that the company’s market share has increased in the last 3 years.

5.2 Recommendations

There is need for building customer and company relationship which will help the company to identify what customers want and provide that value in a product.

The study recommended that the company use integrated marketing communication approach, which will in turn help to alleviate miscommunication and confusion. Telecom companies in Nigeria should ensure that customers’ satisfaction is met at any given time to maintain their customer base.

The management should encourage retention of customers and increase profitability of their institutions, Telecommunication companies should ensure that they respond to customer need swiftly.

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