Keywordscustomer brand switching customer loyalty promotional pricing
JEL Classification M30, M31
Full Article
1. Introduction
Telecommunication companies are under enormous pressure to provide better and quality service to end users. The telecommunication industry occupies a unique space due to its competitiveness in the market. Industry reports suggested that mobile service customers are more dissatisfied (Dhamdhere, 2016). Telecommunication companies are adapting and converging their network services into a new era of robust growth in the global market for internet, data, broadband, and voice services. Around 17 to 20 million subscribers signing up with a new mobile service provider every year are switching from another service provider (TIO, 2017). It means there is a significant issue with telecommunication customers’ loyalty as it is very low according to the statistics due to a competitive market (Dhamdhere, 2016). Moreover, customers switch to another service provider, if the service provider does not provide a competitive and excellent service (Crow, 2017).
The telecommunications industry is going through a major digital transformation (Cloud, 2023; Bhati et al., 2019). Unsurprisingly, startups and established businesses are responding to these opportunities. The result is that customer loyalty is more a result of a great customer experience than price alone (Cloud, 2023). Pricing continues to lose its ability to retain customers as competition increases, creating a void that businesses must fill to thrive in a heavily-saturated market (Cloud, 2023). In the competitive telecommunications market where there is a furious competition among the parameters such as service, network, technology, and pricing, customer long-term relationship with the service provider is a key to the success of a company (Bhati et al., 2019). The business can make increased revenue and profit through happy and loyal customers by provisioning of steady and good service quality (Ascarza et al., 2018). As per (Gupta et al. 2004), a 1% increase in retention rate generates around a 5% increase in customer equity. Customer loyalty plays a major role in attracting new customers and retaining the existing ones in a progressively competitive market (Bhati et al., 2019; Ferguson and Brohaugh 2008).
1.1. Overview of Telecommunication sector in Botswana
The Telecommunication sector in Botswana is regulated by the Botswana Communications Regulation Framework (BOCRA). The telecommunications market in Botswana is dominated by the three operators which operate under Public Telecommunications Operator (PTO) licence namely Botswana Telecommunications Limited (BTLC), Mascom Wireless Botswana (Pty) Ltd (Mascom) and Orange Botswana (Pty) Ltd (Orange). The other major player in the market is Botswana Fibre Networks (BoFiNet). Other market players are the Value Added Network Services (VANS) providers. Although the PTO licence allows the operators to offer both mobile and fixed telephony services and products, Mascom and Orange continue to offer mobile telephony services only including mobile internet and value add services while BTCL provides both the fixed and mobile telephony services including data network services, providing access and connectivity. The market for private networks is fully liberalised as Value Added Services (VANS) may provide services using any technology including very small aperture terminals (VSAT).
Botswana has one of the highest mobile penetration rates in Africa (James and James, 2021). However, in Botswana the internet speeds are relatively slow and data costs are high. They argued that the Telecommunications sector is still facing an array of challenges and chief among them include lack of broadband infrastructure, low access to electricity, lack of skills and the competitive advantage of international operators over local operators. Most of the big players in Botswana’s telecoms sector are majority foreign-owned, while locally-owned companies are in the internet service provider segment.
The level of competition is stiff due to the fact that Botswana is a small country in terms of the population size. The market seems to be saturated and as such most players in the Telecommunication sector relies on the sales from the existing customers. To retain this market, promotional pricing is used but it seems majority of the players does not understand the impact of promotional pricing on the marketing performance of the organization. This gap is the one that has prompted this researcher to conduct a study on the impact of promotional pricing on the marketing performance of the Telecommunications industry in Botswana. Players in the Telecommunications sector in Botswana especially the big three (Mascom, Orange and BTC) are using different promotional pricing tactics like Mascom uses different services like Nzamele, Freebie to Bonus airtime, MyZone, Khumo Points, Internet Settings, Promotional SMS, Masika Le Ditsala, MyMix, MyTime, MyCombo, MyZaka, MyZim, Nightsurfers, MyPocket Wi-Fi, MySurf and PrepaidBB and Internet Vouchers. On the other hand, Orange offers Konnecta Bundles, Buy voice bundles, Buy data bundles, DSTV, Mobile TopUps, International Money Transfers, Orange Money VISA, N’stakolle Loan, Payment services, Wallet to Bank among others. This snapshot of promotional services used by the big two players in the telecoms sector in Botswana is a clear testimony that the market field has got fierce competition. BTC provides both the fixed and mobile telephony services including data network services, providing access and connectivity. All these three players are battling among themselves together with the other small players in the Telecommunication industry.
2. Literature Review
The literature review explained the theoretical foundation and the empirical literature that were used to support the study.
2.1 Promotional Pricing
Fuchs (2022) defines promotional pricing is a pricing method where a company temporarily reduces the price of a product or service in the interest of quickly driving sales. In many cases, those deals and discounts are supported by dedicated promotional materials or marketing campaigns. Poloian (2013) also echoed that promotional pricing is a marketing strategy that involves companies/retailers temporarily reducing product prices to catch the attention and interest of customers and persuade them to patronize the brand. Puckett (2023) argued that promotional pricing is one of the most powerful sales promotion techniques is the short-term price reduction or, as known in some areas, “on sale” pricing. Lowering a product’s selling price can have an immediate impact on demand, though marketers must exercise caution since the frequent use of this technique can lead customers to anticipate the reduction and, consequently, withhold purchase until the price reduction occurs again.
A promotional pricing strategy is one of the best ways to generate quick demand for products or services (Fuchs, 2022). Promotional pricing is a quick-hitting, effective practice that is best implemented strategically and in doses. Businesses that constantly undertake large-scale promotional pricing efforts can wind up excessively cutting into profit margins. It also leads their customers to expect lower prices consistently (Chiguvi and Guruwo, 2022; Fuchs 2022). Promotional pricing can be used to entice new customers who have never tried a product to use the product or to encourage existing customers to switch brands in favor of a new brand (Kotler and Keller, 2018). They further argued that it can also influence choices of brands, quantities purchased, and consumption rates of customers. Customers may buy more products during promotional pricing since the savings gained increase their disposable income. The increase in sales is due to the increase in the perceived value of products and the money savings that come about when product prices are reduced. Customers are also compelled to urgently make purchases of the products since the promotions last for a limited period. Therefore, to take advantage of promotions, customers urgently visit the store and make immediate purchases which result in an increase in sales. Fuchs (2022) identified four key examples of promotional pricing examples namely flash sales (is when a business substantial discounts on their products or services within a relatively time frame); BOGOF (The Buy One, Get One Free) deal is the one of the more prominent examples of promotional pricing. This is because the customer is literally getting double value for the price he/she usually get for the one product. The other example is loyalty programs (is a promotional pricing that incentives brand loyalty by offering deals and discounts for consistent, repeated purchases. The fourth example is seasonal sales (is essentially an extended flash sale and is typically tailored to move merchandise relevant to a specific time of the year).
2.2. Customer Brand Switching
Brand switching is an ever-present challenge in today's competitive market. Whether it is due to brand fatigue or the lure of a rival's offering, understanding the brand switcher's mindset is crucial for companies striving to retain their market share. Mandal (2019) and Shah, Husnain and Zbarirshah (2018) define customer brand switching as the process in which a customer stops being loyal to his/her usual service provider and moves to another either because of customer dissatisfaction or any other problems that might have arisen. Brand switching is a change in consumer buying habits in which long-term customers choose to switch to another brand (Chiguvi, 2022). Customer brand switching can either be partial or total switching in the telecommunications industry (Malhotra and Batra, 2019; Kukreja and Ajagaonkar, 2020). This therefore means that a customer can temporarily stop subscribing to a certain network provider or can totally stop using their services (Dauda and Maiyaki, 2019). Brand switching can occur for any products. Guo et al., 2021 defines brand switching as the customers shift from a brand to another brand in same category. The person or customer who switches from brand to the other is called a Brand Switcher (Astuti and Santoso, 2020). A brand switcher is a consumer who is not tied down to one specific brand for a particular product or service. They are comfortable experimenting and regularly alternate between different brands. Brand switchers might be lured away due to factors such as price, quality, customer service, or simple curiosity (Grigoriou et al., 2020; O'Sullivan, 2023). Brand switching presents a considerable challenge for businesses today. By understanding the motivations of brand switchers and implementing strategies to enhance customer loyalty, companies can retain their market share and ensure long-term success. As the marketplace continues to evolve, the ability to adapt to changing customer behaviors and expectations will be an essential part of any successful business strategy.
2.3. Customer Brand Switching
Nasir et al. (2019) define customer loyalty as the ability to attract the right target market, making them buy or consume the product on a regular basis and in high quantities and advocating for the product enabling more customers to shift from the substitute product to your product is termed as customer loyalty. The loyal customers are the one, who are willing to pay more price premiums prices, providing positive word of mouth to others with referral and provide long-term commitment (Bhati et al., 2019). Customer loyalty is very critical for any business or service. Due to the continuous evolving of services, and marketing competitiveness, companies are now focusing on the significance of human involvement in the form of customer loyalty and retention. Customer loyalty has been including as the strategic objective in the decision-making process due to the competition with other companies (Bhati et al., 2019). Customer loyalty has been seen as a source of competitive advantage (Bhati et al., 2019). Loyalty programmes with personalized rewards, benefits, additional services, and exclusive partner deals are arguably the best customer retention tool for businesses (Cloud, 2023). This infers that promotional pricing alone is not adequate to increase customer loyalty in the Telecommunications sector. Customer loyalty is a serious matter of concern for every business where it measures the customer’s likeliness to give repeat business with a brand or organization. In other words, it is the outcome of a positive experience for customers as well as customer satisfaction. The concept of loyalty is also defined by many authors according to the sector of activity which concerns them, according to the strategic objectives pursued as well as according to the currents of thought to which they are attached. Table 1 present some key definition from previous literature.
Table 1. Definitions of Customer Loyalty
Author (s) | Definition of Customer loyalty |
Newman and Werbel, 1973; Oliver, 1999 | Those who rebought a brand considered only that brand and did no brand-related information seeking |
Tellis, 1988 | It is defined as repeat purchase frequency” or “relative volume of same brand purchasing |
Oliver, 1997 | Loyalty has been defined from the attitudinal perspective as well. Attitudinal loyalty includes cognitive, affective, and conative aspects. |
Oliver, 1999 | Customer loyalty is a buyer’s affection or deep association with a product, facility, image, or company. |
Morgan and Hunt 1994 | Loyalty is related to the concept of relationship commitment, which can be expressed as a sustaining desire to be in a valued connection. |
Lee et al., 2001 | Concerning word-of-mouth endorsement, the increased probability of purchase, and a frequent buying of a firm’s offering. |
Bhati et al., 2019 | A deeply held commitment to rebuy or repatronise a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behaviour |
De Mooij, 2019 | defines loyalty as a deep commitment to buy back the product and/or service regularly in the future, which leads to the act of buying repeated the same brand despite situational factors that may influence consumer behavior. |
3. Research Methodology
3.1. Respondents
The targeted population comprised of customers of the big three players (Mascom, Orange and BTCL in the Telecommunications sector in Botswana. In this study the researcher selected 320 respondents from Mascom, Orange and BTCL in Gaborone, Botswana.
3.2. Data Collection
A structured questionnaire was used to collect data. In order to check the internal consistency of the questionnaire, the Cronbach Alpha was used and calculated. For internal validity, the Kaiser-Meyer-Olkin (KMO) measure of sample adequacy was conducted through SPSS. Nunnally and Bernstein (1994) mentioned that the validity of variables which are close or above the value of 0.6 can be acceptable and deemed effective to conduct the study.
3.3. Data Analysis
The collected data was statistically analyzed using the Statistical Package for the Social Sciences (SPSS) version 21. Measures of central tendency were employed to analyse the data using descriptive statistics. After determining the descriptive statistics of the study, inferential statistics was used to test the research hypotheses so as to determine the influence of promotional pricing (independent variable) on customer brand switching and customer loyalty (dependent variables).
4. Analysis and Results
4.1. Statistical Reliability
Nunnally and Bernstein (1994) mentioned that the reliabilities of variables which are close or above the value of 0.7 can be acceptable and deemed effective to conduct the study that will be considered as reliable. Table 2 depicts the results of Cronbach Alpha coefficient for the variables of the study.
Table 2. Cronbach Alpha of the study variables
Cronbach’s Alpha for variables | Cronbach Alpha | Conclusion |
Customer Satisfaction | 0.976 | Reliable |
Customer Brand switching | 0.831 | Reliable |
Customer loyalty | 0.894 | Reliable |
The study results in table 2 shows Cronbach’s Alpha for the variables of the study and the alpha coefficient for all of the multiple-item measures are higher than 0.7, which proves that all of the items have relatively high internal reliability in this study.
4.2. Validity
Kaiser-Meyer-Olkin (KMO) measure of sample adequacy was conducted to test the internal validity of the instrument as illustrated in table 3. Nunnally and Bernstein (1994) mentioned that the validity of variables which are close or above the value of 0.6 can be acceptable and deemed effective to conduct the study that will be considered as valid.
Table 3. Kaiser-Meyer-Olkin (KMO) index for variables
Variables | KMO Index | Df | Conclusion |
Promotional pricing | 0.799 | 8 | Valid |
Customer brand switching | 0.787 | 7 | Valid |
Customer loyalty | 0.738 | 7 | Valid |
The study set the KMO variable at 0.6. The analysis from the KMO test in table 3 indicates that the variables were sufficient for internal validity as KMO values for all the study variables are greater than 0.6. This infers that the measurement items are measuring what they intend to measure in this study.
4.3. Descriptive Statistics Results
This section presents descriptive statistics on all two constructs which are customer brand switching and customer loyalty that support this research. Measures of central tendency were employed to analyse the data. The respondents were asked to indicate the extent to which they each agree or disagree with the statement using a 5-point Likert scale where 1 means strongly disagree, 2 means disagree, 3 means neutral, 4 means agree and 5 means strongly agree respectively.
4.3.1. Descriptive statistics on the effect of promotional pricing on customer brand switching
The results in table 4 indicate mean scores and standard deviation results for all items used when measuring the effect of promotional pricing on customer brand switching in the telecoms sector in Botswana.
Table 4. Descriptive statistics for customer brand switching
Item code | Item description | Mean score | Mean response | SD |
CBS 1 | I will not switch to substitutes services if the players in the telecoms sector continue to offer attractive promotional pricing services. | 4.78 | Strongly Agree | 0.019 |
CBS 2 | If complaints about the promotional pricing services are not swiftly handled, I would consider switching to a new brand. | 4.45 | Strongly Agree | 0.951 |
CBS 3 | I will try out other brands if the players in the telecoms sector do not offer best value promotional services. | 4.69 | Strongly Agree | 0.865 |
CBS 4 | I am likely to switch brand if the front-line staff are not friendly and courteous. | 3.56 | Agree | 0.832 |
CBS 5 | I dislike low value promotional pricing services because it signifies low quality, and it will make me to switch. | 4.32 | Strongly Agree | 0.931 |
CBS 6 | A decrease in the value of promotional pricing can make me switch to an alternative substitute. | 4.88 | Strongly Agree | 0.897 |
CBS 7 | I would switch to othersubstitutes offering better discounts and promotion pricing. | 4.34 | Strongly Agree | 0.783 |
CBS 8 | Overall, I like patronizing to the players in the telecommunications that offers better rewards and high value promotional pricing services. | 4.88 | Strongly agree | 0.965 |
Source: Research Data (2023)
Generally, the results in table 4 revealed that customers do not change to other brands or close substitutes if the three big players in the telecoms sector provide high value promotional pricing services to them. The mean score of 4.88 (CBS 6) clearly indicates that any decrease in the value of promotional pricing can make the customers switch to other alternative substitutes. This infers that customers in the telecoms sector in Botswana are price sensitive and the demand for the services in the telecommunication sector in Botswana is elastic. This means the players must provide value added promotional pricing services in order to attract and retain the customers i.e. My Mix Bundles by Mascom are doubled at the same old price. The study results in table 4.3 indicates that customers patronize to the players in the telecoms sector that offers better rewards and high value promotional pricing services with minimum mean score of 3.56 and maximum mean score of 4.88. The standard deviation score all indicates that customers strongly agree to their assertions. This means that the big three players must continue offering high value promotional pricing services in order to reduce customer brand switch. The overall mean score for this measurement item was 4.40 with a standard deviation of 0.918.
4.3.2 Descriptive statistics for the influence of promotional pricing on customer loyalty
Table 5 indicate mean scores and standard deviation results for all items used to measure the influence of promotional pricing on customer loyalty in the telecommunications sector in Botswana.
Table 5. Descriptive statistics for Customer Loyalty
Item code | Item description | Mean score | Mean response | SD |
CL 1 | My telecom provider is the best in the industry. | 2.58 | Neutral | 1.019 |
CL 2 | I always get satisfactory promotional pricing services from the telecoms sector. | 3.47 | Agree | 0.751 |
CL 3 | I am satisfied with the overall promotional pricing services offered by the telecoms sector. | 3.36 | Agree | 0.865 |
CL 4 | I have always been on the promotional offer since it was introduced to me and launched. | 4.81 | Strongly Agree | 0.832 |
CL 5 | No matter what happens, I am willing to continue using the promotional pricing services from telecoms sector. | 2.52 | Neutral | 0.931 |
CL 6 | Even if close friends recommended another telecommunication to me, my preference for thiswould not change. | 2.54 | Neutral | 0.688 |
CL 7 | It would be difficult to change my mind about the promotional pricing services in the telecoms sector. | 2.60 | neutral | 0.345 |
CL 8 | Overall, I wish to maintain a long-lasting relationship with the brand. | 2.59 | Neutral | 0.267 |
Source: Research Data (2023)
Table 5, shows a summary of descriptive statistics for the effect of promotional pricing services on customer loyalty. The study results show that customers are neutral about many measurement items in this section. This might mean that the customers are likely to switch their patronage to other players if they feel that they are not getting enough value for their money. This seems to be true because promotional pricing is only available for a short term. This means that customers will only show their loyalty during the time of the promotion ad when the promotion is over, they are likely to switch to other brands and services. This means that the players in the telecoms sector should always have another alternative marketing strategy in order to enhance customer loyalty despite using promotional pricing. They should also know when to introduce promotional pricing in order to realize the best returns from using promotional pricing marketing tactics. The overall mean score of 2.98 clearly indicates that the customers are in the cross road and the standard deviation score of 0.518 also indicates that customers have got mixed feelings towards the effect of promotional pricing on customer loyalty in the telecommunications sector in Botswana.
4.3.3. Inferential Statistics Results
After determining the descriptive statistics of the study, inferential statistics was used to test the research hypotheses so as to determine the nature of the relationships between promotional pricing (independent variable) and customer brand switching and customer loyalty (dependent variables). Regression and correlation analysis was employed to measure the underlying relationships between promotional pricing and customer brand switching and promotional pricing and customer loyalty.
The research hypotheses that sought to be tested are as follows;
H1: Promotional pricing has got influence on customer brand switching among the customers in the Telecommunication sector in Botswana.
H2: Promotional pricing has got influence on customer loyalty among the customers in the Telecommunication sector in Botswana.
4.3.4. Relationship between promotional pricing and customer brand switching
Table 6: Shows regression analysis of the relationship between promotional pricing and customer brand switching.
Table 6. Regression analysis Between Variables
Model Summary | ||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .842a | .421 | .420 | 10.4201 |
a. Predictors: (Constant), promotional pricing |
Coefficients | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
B | Std. Error | Beta | ||||
1 | (Constant) | 14.394 | 16.467 | 1.383 | .14 | |
Promotional pricing | .621 | .396 | .842 | 1.045 | .000 | |
a. Dependent Variable: Customer brand switching |
Source: SPSS data
Table 6 revealed that there is a positive relationship between promotional pricing and customer brand switching in the telecoms sector in Botswana. This infers that the influence of promotional pricing is making approximately 84.2% of customer brand switching in the telecommunications sector in Botswana. (β = 0.842, t-value = 1.045 and p-value = 0.000). This means that high value promotional pricing services attract and retain customers and on the other hand low value promotional pricing services makes customers to switch to other brands.
Correlation value (r = 0.842, p-value = 0.000) in table 6 and table 7 respectively shows that promotional pricing is significantly and strongly positively linked to customer brand switch in the telecoms sector in Botswana. This result demonstrates that there is strong positive relationship between promotional pricing and customer brand switch. Therefore, hypothesis two is supported in this study. H2: Promotional pricing has got influence on customer brand switching among the customers in the Telecommunication sector in Botswana.
5. Discussion
5.1. Relationship between promotional pricing and customer brand switch
Table 7 reveals that there is strong positive relationship between promotional pricing and customer brand switch. This result is similar to the study findings by Antwi and Gideon (2019) examined the impact of promotional packages on customer switch and retention in the telecommunication industry in Ghana. The result shows that there is positive and significant relationship between promotional packages and customer brand switch. The study also discloses that promotional offers as a key marketing innovation to customer retention and switch in the telecom sector. The study found that companies without effective promotional packages lose customers and therefore promotional packages were significant chief drivers of customer retention. The study recommends that telecommunication companies who desire to improve upon the level of customer retention should invest much in an attractive promotional package in their marketing innovation segment. The study findings by Alotaibi (2022) also confirmed that there is a positive association between promotional pricing and customer brand switch. This infers that the players in the telecoms sector in Botswana must continue to provide promotional pricing services to their customers to avoid them switching to other brands or substitutes.
5.2. Relationship between promotional pricing and customer loyalty
Table 8. Relationship between promotional pricing and customer loyalty
Model Summary | ||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .227a | .114 | .113 | 10.4208 |
a. Predictors: (Constant), promotional pricing |
Source: SPSS data
Table 9. Hypothesis Test Results - Promotional Pricing and Customer Loyalty
Coefficients | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
B | Std. Error | Beta | ||||
1 | (Constant) | 7.394 | 4.467 | 1.495 | .12 | |
Promotional pricing | .392 | .196 | .227 | 1.022 | .000 | |
a. Dependent Variable: Customer Loyalty |
Source: SPSS data
Table 8 revealed that there is a weak positive relationship between promotional pricing and customer loyalty in the telecommunications sector in Botswana. This depicts that the effect of promotional pricing is only contributing 22.7% of customer loyalty in the telecoms sector in Botswana (β = 0.227, t-value = 1.022 and p-value = 0.000).
Correlation value (r = 0.227, p-value = 0.000) in table 9 revealed that there is a signficant weak positive relationship between promotional pricing and customer loyalty. This means that the players in telecoms sector need to improve its promotional pricing services to exceed the customer expectations. Therefore, hypothesis three is weakly supported in this study. H2: Promotional pricing has got influence on customer loyalty among the customers in the Telecommunication sector in Botswana
Table 9 results revealed that there is weak positive relationship between promotional pricing and customer loyalty. This study finds are similar with the study findings by Albert and Felix (2022) who conducted an empirical analysis of the relationship between promotion strategies and brand loyalty. The result found that there is weak effect of promotion strategies on brand loyalty. It was recommended that; businesses should concentrate on boosting customer product engagement to boost brand loyalty. Another study by Festus (2021) also found that there is low significant impact between sales promotion and customer loyalty. Festus (2018) recommended that the management needs to integrate all promotional tools to ensure that customer loyalty is attained. These results clearly indicated that customer loyalty is only achieved in the long term and hence promotional pricing has got less impact on customer loyalty. This study revealed that the effect of promotional pricing is only contributing 22.7% of customer loyalty in the telecoms sector in Botswana (β = 0.227, p-value = 0.000).
6. Conclusion
The study clearly demonstrated that, although there is strong positive relationship between the promotional pricing and customer satisfaction and customer brand switch in the telecoms sector in Botswana. However, the results also revealed that there is weak positive relationship between promotional pricing and customer loyalty in the telecoms sector in Botswana. This infers that promotions pricing should be tactfully done in order to yield positive marketing results and performance.
Table 10. Study Hypothesis Test
Hypothesis | Decision (Accept/Reject) | Method of analysis | Relationship (positive / Negative) |
H1: Promotional pricing has got influence on customer brand switching among the customers in the Telecommunication sector in Botswana. | Accepted | Regression and correlation | Strong positive |
H2: Promotional pricing has got influence on customer loyalty among the customers in the Telecommunication sector in Botswana. | Accepted | Regression and correlation | Weak positive |
Source: Raw Primary Data
7. Implications
The findings of this study have helped to contribute to literature in the area of promotional pricing. A lot has been researched in the area of sales promotions but to the best knowledge of this researcher no study of this nature was conducted in the Telecommunications sector in Botswana, hence the novelty of this study. It is recommended that robust promotional pricing services must be provided on a regular basis in order to encourage greater usage of the telecommunications services by the consumers. The current trend in Botswana is that customer stop buying the moment promotional services are cut or no longer offered. This means that more resources should be set aside for the sales promotions budget in order to increase customer loyalty as well as to reduce customer brand switching. Personalization is also needed. Telecommunications companies must embrace new technologies especially social media and Artificial Intelligence (AI) and start to personalize their promotional pricing services to the customers. This technique will yield high positive marketing benefits because it makes customers to feel much more special and valued. Personalization enables the company to understand the customer journey and insights better and this information and knowledge will enable the company to produce customer centric and driven products and services hence increasing the competitive advantage of the organization.
Customer follow ups and feedback is also critical in order to enhance promotional pricing. Many companies only communicate with their clients before and during the time of promotions. After the promotions, few companies communicate with their customers or at least give them feedback. Many customers felt that they are neglected or companies only need them only to buy their products or to push sales volumes but they have no much care about them after the promotions. Therefore, effective communication is also needed after the promotions. Marketers need to go back to the customers and establish long profitable relationships with the customers. Sales promotions also need to be linked with other marketing activities of the organization. A robust integrated marketing communication is also needed like aggressive advertising is needed in order to stimulate and arouse interest of the potential buyers. Also it helps to create maximum publicity of the promotional pricing campaign. The secret about promotional pricing is on maximizing sales volumes. Therefore, companies should embrace and compliment promotional pricing with other marketing activities in order to give best value and customer experience which last for a long time.
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Author Contributions: Both Authors have contributed equally to this research.
Funding: This research received no external funding.
Conflicts of Interest: The authors state that they have no conflicts of interest.
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