Effect of price and service quality on consumer switching behaviour in the Nigerian telecommunication industry

Purpose This study examines the effect of price and service quality on consumer switching behaviour in Nigeria's telecommunications industry, testing the global assumption of price dominance in a market characterized by infrastructure constraints and inconsistent service quality. Design/methodology/approach A cross-sectional design was employed, with data collected from 845 consumers in Lagos and Ibadan through a structured questionnaire. A logistic regression model was used to analyse the determinants of switching behaviour. Findings A clear hierarchy of effects was identified. Attractiveness of substitutes (Odds Ratio: 1.98) and advertising (OR: 1.48) have strong positive influences on switching. Customer loyalty (OR: 0.89) and service quality (OR: 0.92) are significantly associated with reduced attrition. Price exhibited a small but significant effect (OR = 1.01). Critically, service quality moderated this effect: consumers tolerated higher prices only when service quality was adequate, confirming that push factors (price) operate conditionally rather than additively. Research limitations/implications The geographical focus on urban centres usually limits generalisation. The findings suggest telecom firms should prioritise brand distinctiveness and targeted marketing over price competition, while strengthening loyalty programmes. Originality/value This research extends the Push-Pull-Mooring (PPM) framework by demonstrating that the weighting of switching drivers varies with market infrastructure conditions. In Nigeria's low-infrastructure context, pull factors (attractiveness of substitutes) and mooring factors (customer loyalty) dominate push factors (price), challenging price-dominant models from developed markets and offering a context-sensitive framework for understanding consumer behaviour in African emerging economies.

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Publication Details

Journal
African Journal of Economic and Management Studies
Published
2026-05-27
DOI
https://doi.org/10.1108/ajems-09-2025-0768
Primary Topic
Consumer Market Behavior and Pricing
Type
article
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article

Effect of price and service quality on consumer switching behaviour in the Nigerian telecommunication industry

Noah Olasehinde, Deborah Kadejo
African Journal of Economic and Management Studies
Consumer Market Behavior and Pricing
article

Effect of price and service quality on consumer switching behaviour in the Nigerian telecommunication industry

Noah Olasehinde, Deborah Kadejo
article en

Abstract

Purpose This study examines the effect of price and service quality on consumer switching behaviour in Nigeria's telecommunications industry, testing the global assumption of price dominance in a market characterized by infrastructure constraints and inconsistent service quality. Design/methodology/approach A cross-sectional design was employed, with data collected from 845 consumers in Lagos and Ibadan through a structured questionnaire. A logistic regression model was used to analyse the determinants of switching behaviour. Findings A clear hierarchy of effects was identified. Attractiveness of substitutes (Odds Ratio: 1.98) and advertising (OR: 1.48) have strong positive influences on switching. Customer loyalty (OR: 0.89) and service quality (OR: 0.92) are significantly associated with reduced attrition. Price exhibited a small but significant effect (OR = 1.01). Critically, service quality moderated this effect: consumers tolerated higher prices only when service quality was adequate, confirming that push factors (price) operate conditionally rather than additively. Research limitations/implications The geographical focus on urban centres usually limits generalisation. The findings suggest telecom firms should prioritise brand distinctiveness and targeted marketing over price competition, while strengthening loyalty programmes. Originality/value This research extends the Push-Pull-Mooring (PPM) framework by demonstrating that the weighting of switching drivers varies with market infrastructure conditions. In Nigeria's low-infrastructure context, pull factors (attractiveness of substitutes) and mooring factors (customer loyalty) dominate push factors (price), challenging price-dominant models from developed markets and offering a context-sensitive framework for understanding consumer behaviour in African emerging economies.

African Journal of Economic and Management Studies
University of Ibadan (NG)
Industry, innovation and infrastructure
Openalex Percentile: Top 4%
Consumer Market Behavior and Pricing
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Effect of price and service quality on consumer switching behaviour in the Nigerian telecommunication industry — Noah Olasehinde, Deborah Kadejo · African Journal of Economic and Management Studies (2026) | TGRS Research Map | TGRS