Role of Customer Perceived Value in Mediating Effects of Product Price on Customer Patronage of Global System for Mobile Telecommunication Services in Nigeria

The aim of this study was to explore mediating effects of perceived customer value on the relationship between product price and customer patronage. In order to accomplish the objectives of the study, copies of research instrument (questionnaire) were distributed through systematic sampling technique to 500 customers of Global System of Mobile Telecommunication (GSM) companies in Kano, Nigeria. The data from the survey which yielded 64% valid response rate were analyzed with the help of Hayes Process Macro Model 4 analysis for simple mediation and the results showed that all four hypothesized relationship were supported by the data. Specifically, product price significantly predicted customer patronage of GSM services in Nigeria and that product price significantly influenced customer perceived value. Similarly, customer perceived value significantly predicted customer patronage of GSM services after controlling for product price. In other words, customer perceived value partially mediated the relationship between product price and customer patronage of GSM products. It is recommended that GSM service providers would have to deliver not only economic value, but also social, psychological epistemic and emotional values to their customers in order to enhance customer patronage of their offerings.