Impact of Seasonal Promotions on Customer Satisfaction in e-commerce Industry in Nigeria
Seasonal promotions are short-term sales promotions used by businesses to coincide with prominent holidays and festivals. Gifts, discounts, vouchers, and samples are used to entice clients. This helps to increase client satisfaction with e-commerce enterprises and drives their purchasing intentions. It makes it easier to increase consumer loyalty to an e-commerce firm (Sardana, Talwar and Gulati, 2018). Nigerian e-commerce sales totaled €2.2 billion in 2019, a 12.9 percent increase over the previous year. With multiple multinational merchants and local shops entering the e-commerce business, there is fierce competition among e-commerce enterprises (Kennedy, 2018). E-commerce companies in Nigeria offer appealing seasonal deals throughout the year to overcome the market competition and attract more clients to their online stores. This is critical in increasing client satisfaction with the e-commerce brand.
Firms employ seasonal marketing throughout March Madness, the World Cup, the Super Bowl, Christmas, Mother’s Day, and Black Friday. Companies create a promotional calendar to help them improve sales (Fuggetta, 2012). E-commerce is known to perform promotional activities around Halloween, Thanksgiving, and other holidays. Because these seasons occur every year in the same month, promotions might be prepared for the entire year. This aids in determining customer satisfaction (Nah and Siau, 2019). As a result, it’s clear that e-commerce companies use seasonal specials to impact client pleasure.
Nigeria’s average e-commerce industry growth rate from 2014 to 2019 was 9.1 percent. Many products are sold online through the e-commerce industry. The upward trend in internet buying continues, with considerable increase owing to improved mobile connectivity.
fixed internet access There are 9,759 businesses in the industry, which employs 18,772 people and has a market of €2 billion. In Nigeria’s e-commerce business, Amazon has the greatest market share (IBIS World, 2019). In the year 2020, the e-commerce sector will generate $3,701 million USD in revenue. By 2024, the yearly growth rate is predicted to reach $4,283 million. Fashion is the most popular product sold on online marketplaces. In the year 2020, user penetration will be 68.0 percent. It is predicted to reach 77.5 percent by the year 2024. In Nigeria’s e-commerce business, the average revenue per user is US$ 915.23. (Statista, 2020). As a result, it is clear that the Nigerian sector is expected to increase in the future. The industry contributes to the economy by providing jobs and money. This industry has been discovered to be extremely important to Nigeria’s economy. As a result, the e-commerce business was employed as a case study in the study.
Seasonal swings have an impact on an organization’s sales; client demand for various products varies depending on the season. Every product, from toys to goods, has seasonal sales swings (Markowitz, 2017). In Nigeria, the e-commerce industry sells practically all things online. As a result, seasonal swings would have a significant impact on e-commerce sales. Seasonal promotions, as mentioned in the background section, could be used by businesses. Customer satisfaction improves as a result of seasonal promotions, according to Sardana, Talwar, and Gulati (2018). Because it is uncertain whether e-commerce enterprises in Nigeria boost consumer happiness through seasonal promotions, this study was conducted.Download Full Material-N4000