Progressive Composite and Price-based marketing impact on Airtel Kenya Internet Data segment performance

Abstract

This study examined the performance of a follower firm in an oligopolistic telecommunications market over a ten-year period (2014-2024). The study hypothesized that price-based and composite marketing strategies influenced the company’s data segment performance at 95% confidence interval. A case study research design cantered on Airtel Kenya Limited Plc was adopted. Secondary data on internet data services, subscriber trends, pricing strategies, and promotional efforts was collected for analysis. The findings revealed a strong positive relationship between progressive composite promotion, subscriber numbers, data usage, and data revenue, but a negative correlation with internet data pricing. Regression analyses further demonstrated that progressive composite promotional efforts explained monthly data subscription rates (R² = 0.8548, β = 1.34, SE = 0.175, p < .005), change in annual data revenue (R² = 0.8113, β = 1.34, SE = 3.31, p < .005), and monthly data usage (R² = 0.7885, β = 0.693, SE = 0.113, p < .005). On the other hand, average price per megabyte predicted regular internet subscriber numbers (R² = 0.4431, β = 3.11, SE = 1.10, p < .005), change in data revenue (R² = 0.7224, β = 0.61, SE = 0.1191, p < .005), and monthly data usage (R² = 0.6906, β = 0.897, SE = 0.1191, p < .005). These findings suggest that Airtel’s promotional strategies and outcomes align with penetration pricing and consumer behavior theories and generate valuable insights for Telecom providers navigating competitive landscapes in oligopolistic markets in which they occupy the position of followers.