Abstract
The study examined the effect of market segment6ation on the sales turnover of made in Nigeria goods in Abia State. The objective of the study were to determine socio-economic characteristics of respondents; ascertain other intervening factors that influence market segmentation; measure the relationship between product quality and brand loyalty of made in Nigeria gods; to examine the relationship between brand loyalty and market segmentation and sales turnover of made in Nigeria goods.A sample size of 120 respondents was adopted from 40 respondents selected from the three senatorial zones of Abia state. A well-structured questionnaire was designed and used for data collection. This data was analyzed with simple percentages and multiple regression model. The study concluded that education, income, occupation, marital status, gender, age, perceived quality and frequency of purchases of respondents were significant in influencing the consumer behavior of the respondent in the area of made in Nigeria goods. However, further statistical analysis led to the following conclusion based on findings. Education was a positively significant at 50%. This implies that increase in the level of education of the respondent leads to increase in the rate of purchase of made in Nigeria goods. Income was also positively significant at 1%. This implies that as the income of an individual increased, the rate he or she spend on made in Nigeria goods also increased. Occupation was negatively significant at 5%. This implies that there is direct proportional relationship between the occupation of the respondents and consumption Pattern of made in Nigeria goods. Gender was also negatively significant at 1% to the brand loyalty.However the following recommendation were made on the conclusion drawn from the research, that educational level of the respondents should be improved upon. This is because of the positive relationship between the level of education of the respondents and the choice of made in Nigeria goods among foreign goods in the study area. Early marriage should be encouraged among the respondents in the study area. This is because the majority of the respondents are still youthful age. There should be provision of employment opportunities among the respondents in the study area. This will lead to increase in the frequency of purchases of made in Nigeria goods in the study area. There should be improvement in the product perceived quality. Such will enhance not only brand loyalty, but a long term customer equity for the firm that produce made in Nigeria goods.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Content vi
List of Tables viii
Abstract ix
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problems 3
1.3 Objective of Study 4
1.4 Research questions 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitations of the Study 6
1.9 Definition of Term 7
CHAPTER TWO
LITERATURE REVIEW
2.1 Market Segmentation 11
2.2 Markets, Market Segments and Typologies 12
2.3 Requirements For Market Segmentation 12
2.4 Benefits of marketing segmentation 13
2.5 Target Marking and Strategies 15
2.6 Consumer Market 16
2.7 Socio Economic Characteristics Affecting Consumer
Preference 16
2.8 Model of Consumer Choice 20
2.9 Marketing Stimuli 21
2.10 An Overview of the marketing of Made in Nigeria goods 22
2.11 The Marketing Problem of Made In Nigeria Goods 24
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Area of study 26
3.2 Sample Size Selection 27
3. 3 Method of Data Collection 27
3.4 Method of Data Analysis 27
3.5 Model Specification 28
3.6 Reliability of the Instrument 29
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.1 Socio – economic characteristics of respondent 30
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 43
5.2 Conclusion 43
5.3 Recommendation 44
LIST OF TABLES
Table 4.1: Sex of Respondents 30
Table 4.2 Occupation of the Respondents 30
Table 4.3 Age of respondents 31
Table 4.4 Marital Status of Respondents 32
Table 4.5: Income level of Respondent 32
Table 4.6: Educational level of Respondents 33
Table 4.7: The Reason for Patronizing Made in Nigeria goods 34
Table 4.8: The influence of segmentation on product ranking 35
Table 4.9: Frequency of purchases (in a weekly) 36
Table 4.10:The extent of stocking made in Nigeria goods 36
Table 4.11 Estimation of your monthly made in Nigeria goods 37
Table 4.12:Estimate of percentage contribution of made in
Nigeria goodsto the business profit. 38
Table 4.13:The extent of contribution of made in Nigeria
goods to sales and profit performance 39
Table 4.14: Analysis of socio economic determinants of
Segmentation on consumer brand loyalty of
made in NigeriaGoods 40
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Market segmentation is the marketing strategy of dividing a total heterogeneous market into relatively homogeneous market (Kotler, 2000). The essence of market segmentation is the belief that no single individual is exactly like the other. No single group of people can be a replica of the other either by cultural, social, political, geographical and “spatio-temporal parameters”. This is why different people have different needs and demand which are different from each other. These differences become the basis for differentiating and segmenting consumers with distinct buying behaviour and consumption pattern. It is on this marketing philosophy that Waiter (1979) in Inyanga (1998) opinioned that market segmentation is the recognition that groups or sub-segments differ with respect to (behaviour and attitude)properties which suggested that different marketing mix might be used to appeal to the different groups. It is still on the trade ground of segmentation of market and the designing of market mixes to enhance profitable customer satisfaction that Bush and Houston defined market segmentation as the process by which an organization attempts to match a total marketing programme to the unique manner in which one or more customer groups behave in the market place; which is usually manifested in customer expectations.
Consumer expectation, especially in terms of quality perception, has exposed consumers who by virtue of circumstances, education and awareness are becoming enlightened and as the day go by to numerous influences and factors which propel them to accept a product or develop a brand loyalty. In the context brand loyalty occurs as a result of consumer attributes and behavioral responses. Also brand loyalty occurs as a result of product colour, taste, and instance satisfaction (berger, 2004).
Consumer attribute towards a product according to Kotler and Armstrong (2008) is being shaped and influenced by psychological factors such as motivation, perception, learning, personality, attitude and belief. Therefore, consumer behaviour been habitual because habits are safe and familiar consumers as also influenced by certain product features and characteristics such as product quality, quantity, style, colour, design, package and labeling (Kotler and Armstrong, 2006).
However, market segmentation can be adopted in this dimension. This is because these consumer behavior variables can be used to segment the beverage market (Berger, 2004); thus, for a successful market segmentation strategy. Hence, consumer acceptance, product quality and brand loyalty are very important to manufacturer of consumer beverages. Outstanding and successful companies or industries have promised this by building and developing any of consumer loyalists who are less sensitive or price change and competitive promotion.
At this juncture, the research of this gives the researcher the opportunity to investigate, examine and unravel the success of the adoption of market segmentation to achieve brand loyalty in the beverage market.
1.2 Statement of Problems
Consumer preference and buying pattern is a reflection of how loyal the consumer and the buyer is to the product. Brand loyalty as a result indicates a positive relationship with the product brand equity. As a result, customer equity, which is the total purchases of a consumer or buyer of a product will depend on not only on the product adoption, but the post purchase behaviours; manifested on the repeat purchase when the customer is satisfied after consuming the product. (Kotler and Armstrong 2008).
The above scenario indicates that brand loyalty which comes from brand equity (and also manifested in the customer equity) has become a headache to the marketer to be adopted for brand positioning and differentiation has been key difficulties in the soft drinks product market (Berger 2004). Empirical studies in consumer analysis, there buying pattern and pre-disposed preferences are always considered in product quality, colour shape, style, the old ones as well as retrieve lost ones (Okafor 2000). Such will help to segment the market; and also to know how this will enhance sales and long term profitability.
Statistically however, socio graphical analysis and the impact of motivation research has concluded that the dynamics of market segmentation in relation to consumer buying behaviour and purchase pattern, and the use of models to predict them with certainty is difficult if not impossible. This study is therefore poised to study the above problems constraining brand loyalty and the predisposition of purchase and post purchase patterns of the consumer in the face of target market segments.
1.3 Objective of Study
The main objective of the study is to determine how market segmentation can determine sales through brand loyalty of made in Nigeria goods.
However, the specific objectives are to:
i. Determine Socio-economic characteristics of respondents.
ii. Ascertain other intervening factors that influence market segmentation.
iii. Measure the relationship between product quality and brand loyalty of made in Nigeria goods.
iv. To examine the relationship between brand loyalty, market segmentation and sales performance of made in Nigeria goods.
v. Make recommendation based on my research findings
1.4 Research questions
The research tends to give answers to the following questions
i. Do Socio-economic characteristics of respondents influence their buying behavior of made in Nigeria goods?
ii. What are the other intervening factors that influence market segmentation?
iii. What is the relationship between market segmentation product quality and brand loyalty of made in Nigeria goods?
iv. What is the relationship between brand loyalty, market segmentation and sales performance of made in Nigeria goods?
1.5 Research Hypotheses
H01: There is no significant relationship between market segmentation and brand loyalty of made in Nigeria goods.
H12: There is no relationship between product quality, brand loyalty and sales performance of made in Nigeria goods.
1.6 Significance of the Study
This research study will hopefully be of great important or assistance to the marketing of made in Nigerian goods. inAbia State, and to a great extent aid in retaining the market share or to increase it.
However, this study will also show that promotional activities especially advertising and sales promotion remains a variable, efficient and effective tool to use in respect of product quality and loyalty of a product over another not also overlooking the importance of market segmentation.
Finally, this research study will serve as a relief and sufficient guide and good source of secondary data on this topic for future researchers.
1.7 Scope of the Study
The scope of the study is on the effect of market segmentation on the sales turn over of made in Nigerian goods.
1.8 Limitations of the Study
The gathering of needed data for a research study is usually meet with a number of difficulties and constraints. In the research of this work several problems were encountered in the course of the work.
Firstly, some consumers thought that the research was for of made in Nigeria goods marketers who needed it for their analysis and market survey and always demand for a tip before accepting to give responses to the questions asked or to fill the questionnaires.
Secondly, to gain access to meet with the staff and management proved abortive since some of them tends to be busy or were not around.
Finally, other constrain ranging from time to time is the financial resources and the stress also detailed the study.
1.9 Definition of Term
The beginning of wisdom is the definition of term “(Socrates, 4703-399BC)
Consumer: A consumer is one who buys goods or uses a service Onyeka and Nebo (2004) Defined a consumer as people acting as individuals or in small groups who purchase goods and services to satisfy their personal and household consumption needs as opposed to individual ort people who buy and use items for commercial, business, organization, government, industrial or institutional purpose.
Product: Kotler (1980) gave a comprehensive definition of a product to include anything in the form of objects, service, places, organization and ideas offered for acquisition and attention to a particular target market. For the purpose of this research, product can be defined as air economic value that attracts exchange and consumer patronage.
Consumer Product: having defined consumer and product, in extension consumer and products and services bought by final consumer for personal use and consumption. These sets of product are classified further based on how consumers go about buying them.
The consumer product includes:-
i. Convenience goods
ii. Shopping goods
iii. Specify goods
iv. Unsought goods
Product Quality: This is the product ability to fulfill the expectations and needs set by the end user. Is also the group of features and characteristics of a saleable good which determine its desirability and which can be controlled by a manufacturer to meet certain basic requirements? Most business that produce goods for sale have a product or assurance department that monitors outgoing products for consumer acceptability. For example. People often pay more to acquire a product that is associated with high quality and dependability. In like manner, a leading brand confers some aura of status on the products purchaser.
Product:Bovee and Thill from a marketing point of view, define a product as anything offered for sale for the purpose of satisfying a want or need on both sites of the exchange process.
From the consumers is print of view, a product is define as a bundle of factors and benefits that can be offered to satisfy a want or need.
Brand Loyalty: Nancy and Hotman (2009) defined brand Loyalty as a consumer’s preference to buy a particular brand in a product category. It occurs because consumers perceived that the brand offers the right product features image or level of quality at the right price.
Brand: Brand is a product or services, which relates a firm reputation with consumer needs and the public expectations.
Brand Loyalty: Brand loyalty is highly important in contemporary business environment which constitute the integrating elements of consumer satisfaction and commitment. In marketing, it consists of a consumers commitment to re-purchase or otherwise continue using the brand and can demonstrated by respected buying of a product or service or other positive behaviours such as word of mouth advocacy. Nancy and Hotman (2007) defined brand loyalty as a consumers preference to buy a particular brand in a product category. It occurs because consumers perceived that the brand offers the right product features image or level of quality at the right price.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment