Chapter One — 1.1 Background to the Study

Competitive Benchmarking has increasingly attracted the attention of researchers, regulators, and practitioners concerned with user retention in digital products. This growing interest reflects the recognition that competitive benchmarking does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected States in South-West Nigeria.

Selected States in South-West 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 competitive benchmarking is widely discussed in policy and industry circles, empirical evidence on its actual effect on user retention in digital products within Selected States in South-West 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 competitive benchmarking are helping or hindering user retention in digital products — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Competitive Benchmarking on user retention in digital products in Selected States in South-West Nigeria.
2. To assess the extent to which competitive benchmarking influences user retention in digital products within the study area.
3. To identify the challenges associated with competitive benchmarking in relation to user retention in digital products.
4. To recommend strategies for optimizing competitive benchmarking in order to improve user retention in digital products.

1.4 Research Questions

1. What is the effect of competitive benchmarking on user retention in digital products in Selected States in South-West Nigeria?
2. To what extent does competitive benchmarking influence user retention in digital products within the study area?
3. What challenges are associated with competitive benchmarking in relation to user retention in digital products?
4. What strategies can be adopted to optimize competitive benchmarking in order to improve user retention in digital products?

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 user retention in digital products. For managers and practitioners within Selected States in South-West Nigeria, the study provides practical insight into how competitive benchmarking can be better managed. Finally, it contributes to the academic literature on product management by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected States in South-West Nigeria, focusing specifically on how competitive benchmarking relates to user retention in digital products within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.