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International Journal of Research in Management
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Vol. 7, Issue 2, Part D (2025)

Branding, packaging, and customer retention in nano-firms: Experimental evidence from Kuje markets

Author(s):

Chinonso Adeyemi, Fatima Ibrahim Musa and Tunde Oladipo

Abstract:

Nano-firms owner-managed enterprises with ≤5 employees operating in informal markets face intense competition, thin margins, and high failure rates, yet practical evidence on cost‑effective marketing levers remains scarce. This randomized field experiment tested whether rudimentary branding and packaging can improve customer retention in Kuje markets (Nigeria). One hundred and twenty nano-firms were randomized into four arms (n=30 each): Control, Branding (name + simple logotype + stall placard), Packaging (branded kraft bags/labels), and Both (branding + packaging). After a 2‑week baseline, interventions ran for 12 weeks. The primary outcome was 30‑day repeat‑purchase rate; secondary outcomes included a 6‑item perceived quality/professionalism/trust index (0-100) and weekly retention trajectories. Post‑intervention retention averaged 19.8% in Control (95% CI: 17.3-22.3), 25.5% in Branding, 22.8% in Packaging, and 33.7% in Both. Difference‑in‑differences (DiD) estimates versus Control, based on firm‑level pre/post deltas, were +6.6 percentage points (pp) for Branding, +4.1 pp for Packaging, and +13.9 pp for Both (all p<0.001), with Cohen’s h indicating modest‑to‑moderate practical significance. Weekly trend lines diverged from Control by Week 4, with the combined arm showing the steepest and most durable gains through Week 12. The perception index improved most in the combined arm and correlated positively with retention (r≈0.53), consistent with a pathway in which visible, consistent identity reduces uncertainty and strengthens trust. Findings demonstrate that ultra‑low‑cost branding and packaging feasible for resource‑constrained sellers can meaningfully lift repeat purchasing, suggesting clear, actionable guidance for nano‑entrepreneurs and a high‑leverage target for micro‑grants and NGO programs in informal retail settings.

Pages: 350-354  |  114 Views  32 Downloads


International Journal of Research in Management
How to cite this article:
Chinonso Adeyemi, Fatima Ibrahim Musa and Tunde Oladipo. Branding, packaging, and customer retention in nano-firms: Experimental evidence from Kuje markets. Int. J. Res. Manage. 2025;7(2):350-354. DOI: 10.33545/26648792.2025.v7.i2d.471