PRODUCT INNOVATION AND ITS INFLUENCE ON CUSTOMER RETENTION AND MARKET EXPANSION

Abstract

The study examined the effect of product innovation on Customer acquisition and retention. The specific objectives were to: examine the effect of product innovation on customer acquisition: and examine the effect of product innovation on customer retention. The study adopted the survey design. A sample of 300 Aba residents who consume products (alcoholic and non-alcoholic) of Nigerian Breweries Plc. were randomly selected and used as respondents for the study. 300 Copies of a well-structured questionnaire were administered and 250 usable copies were recouped from the respondents. The instrument was appropriately tested to ensure validity and reliability. The hypotheses were tested using simple regression model (E-view version 8.0). The overall result revealed that product innovation has positive and significant effect on Customer acquisition Customer retention. It was recommended that: (i) organizations should be passionate about incorporating specific qualities that delivers satisfaction to their customers through dynamic innovation: to keep attracting new customers; and (ii) organizations should be passionate about dynamic innovations capable of retaining customers and increasing market share