Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between customer relationship marketing and market share has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Microfinance Banks in Nigeria where operating conditions differ markedly from more developed markets.

Selected Microfinance Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While customer relationship marketing is widely discussed in policy and industry circles, empirical evidence on its actual effect on market share within Selected Microfinance Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to customer relationship marketing are helping or hindering market share — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Customer Relationship Marketing on market share in Selected Microfinance Banks in Nigeria.
2. To assess the extent to which customer relationship marketing influences market share within the study area.
3. To identify the challenges associated with customer relationship marketing in relation to market share.
4. To recommend strategies for optimizing customer relationship marketing in order to improve market share.

1.4 Research Questions

1. What is the effect of customer relationship marketing on market share in Selected Microfinance Banks in Nigeria?
2. To what extent does customer relationship marketing influence market share within the study area?
3. What challenges are associated with customer relationship marketing in relation to market share?
4. What strategies can be adopted to optimize customer relationship marketing in order to improve market share?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around market share. For managers and practitioners within Selected Microfinance Banks in Nigeria, the study provides practical insight into how customer relationship marketing can be better managed. Finally, it contributes to the academic literature on marketing by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Customer Relationship Marketing and its relationship with market share within the context of Selected Microfinance Banks in Nigeria. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.