ABSTRACT
This study examined the “Effect of promotion on customer patronage of selected electronics product among households in Abia State”.The possibilities of the dealers/distributors of electronics products not carried out marketing research in order to determine appropriate promotional tool to be employed to influence patronage and inability to study the target market or audience before carrying out promotion, propelled the study. The study specifically analyzed the effect of advertising on acquisition of customers; ascertained the effect of personal selling on sales volume of selected electronics product; determined the effect of sales promotion on market shares and ascertained the relationship between public relations and corporate image of electronics firms. Primary data was collected from fifty-seven dealers/distributors (57), and two hundred and thirty-five (235) users/customers of electronics product. Data analysis was carried out with the use of descriptive statistical tool, simple regression and Pearson correlation. The result revealed that male dealers/distributors were 43(74%) while females were 15(26%). From the users/customers perspective, revealed that 178 (76%) were males, while 57(24%) were female. The result also revealed that the majority of dealers/distributors and users/customers of electronics product in Abia state were educated with the figure of 23 (40%) and 157(67%) respectively. The analysis from the advertising on customer acquisition showed that customer acquisition was affected by 58.8% of the advertising and was significant at 5%. However, analysis from the personal selling on sales volume showed that sales volume (dependent variable) was accounted for 79% of the personal selling (independent variable), and was also significant at 5%. Furthermore, findings from sales promotion on market shares revealed that market share was affected by 87.3% of sales promotion. Also result from public relations and corporate image of the enterprise revealed that public relation has strong positive relationship with corporate image. This was shown by the correlation coefficient values of 0.601. The study recommended that more of promotional activities should be targeted towards educated customers in the state since majority fall within this category. This study also recommended that dealers/distributors of electronics product in Abia state should fashion out good sales promotion activities since it has more influence on customer patronage when compared to others promotional elements. Finally, the study also recommended that dealers/distributors of these electronic products should encouraged more patronage from the customers by embarking on more public relations activities in the state, since it is capable of influencing patronage.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of content vii
List of Tables ix
Abstract xii
CHAPTER 1
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitations of the Study 5
1.9 Definition of Operational Terms 6
CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 8
2.1.1 Advertising: 9
2.1.2 Personal Selling 10
2.1.3 Sales Promotion 10
2.1.4 Public Relation and Publicity 11
2.1.5 Customer Acquisition 11
2.1.6 Sales Volume 12
2.1.7 Building Corporate Image 13
2.1.9 Market Shares 14
2.2 Theoretical Framework 14
2.2.1 Social Exchange Theory; John T., Harold K, 1959 14
2.2.2 Learning Theory of Consumer Behaviour; Florid C., 1993 17
2.2.3 Expectancy Disconfirmation Theory of Consumer Behaviour;
Oliver, R. L., 1980 18
2.3 Review of Empirical Studies 19
2.3.1 Daramola, G.C, Okafor L.I; and Bello, M.A (2014) Sales Promotion on
Consumer Purchasing Behaviour of Pz product Nig. Plc, International
journal of business and marketing management. 2 (1) Pp 3-13 19
2.3.2 Olufayo, T.O., Ladikpo P.K.A, Bakare, R.D (2012) Effect of advertising on the
patronage of a new product of Nestle Nigeria Plc in Lagos Metropolis,
International journal of Humanities in Social Science.2 (17) Pp:217-225. 22
2.3.3 Kambiz H.H. & Fatemeh T.H (2011) The effect of brand image and
perceived public relations on customer loyalty of L.G electronics
product in Tebran metropolis, Iran world applies sciences
journal 13 (2) pp.277-286 26
2.3.4 Kim, I. Miller, C. Vid .I., Reardon, J. (2005). A story of consumer
knowledge and country of origin effect with alcoholic drink in manchester
metropolis, a European Journal of marketing 31 (1)56-72 32
2.4 Summary of Related Literature Reviewed 35
2.5 Review on the Relationship between Dependent and Independent Variables 36
2.5.1 Relationship between Awareness and Advertising 36
2.5.2 Relationship between Customer Loyalty and Personal Selling 37
2.5.3 Relationship between Building Corporate Image and Public Relations 38
CHAPTER 3
METHODOLOGY
3.1 Research Design 39
3.2 Area of Study 39
3.3 Population of the Study 40
3.4 Sample and Sampling Techniques 40
3.5 Sample Size Determination 40
3.6 Method of Data Collection 41
3.7 Validity of the Instrument 41
3.8 Reliability of Instrument 41
3.9 Data analysis Technique 41
3.10 Model Specification 41
CHAPTER 4
DATA PRESENTATION AND ANALYSIS
4.1: Personal Data of Respondents 43
4.2 Part B: Customer Patronage 65
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Major Findings. 85
5.2 Conclusion 85
5.3 Recommendations 86
5.4 Suggestions for Further Studies 87
REFERENCES
APPENDICIES
LIST OF TABLES
4.1 Demographic profile of respondents, dealers/users of electronics product 44
4.1.1: Your company adopts advertising in the marketing of their products. 46
4:1:2 Which of these media do your company use 47
4.1.3 Advertising message increases patronage of your products 48
4.1.4 Advertising increases your sales 49
4.1.5 Competition influence your advertising strategy 50
4.1.6 Cost of advertising influences your sales volume 51
4.1.7 Sales promotion attracts customer to your product. 52
4.1.8 Gift and customer bonus remind customer your company’s product 53
4.1.9: Sales promotion campaign support increase customer patronage 54
4.1.10 Sales promotion increases sales volume. 55
4.1.11 Personal selling attract customers to the patronage of your electronic
products 56
4.1.12 Personal selling increases sales for your electronic products 57
4.1.13 Personal selling helps in achieving customer loyalty for the Products 58
4.1.14 Personal selling always help in achieving customers retention in your
enterprise. 59
4.1.15 Public relations always help to build positive image in the
minds of your customers. 60
4.1.16 Public relations always help to influence long term relationship
between your firm and the customers. 61
4.1.17 Media relations create good working relationship between the
enterprise and media outlets. 62
4.1.18 Media relationship always help to reduce customers complaints
against the product of your enterprise. 63
4.1.19 Public relations enhance employee’s sales performance for your products 64
4.2.1 Mention the brand of electronics product you sell 65
4.2.2 Identify how you became aware of these brands 66
4.2.3 Advertising Media influence your purchase of these products 67
4.2.4 Advertising claims help in the patronage of the products. 68
4.2.5 By experience of the product, you recommend to others 69
4.2.6 I am always involved in the purchase decision of these electronics product 70
4.2.7 Gifts and others items influence my purchase of electronics product 71
4.2.8 Personal interaction with company representative influences my
purchase of the product 72
4.2.9 The Company’s delivery services enhances repeat purchases 73
4.2.10 Identify which aspect of he product attributes that influence your
purchase of the product. 74
4.3 Model summary of the simple regression of advertising on customer
acquisition 75
4.3.1 ANOVA results 76
4.3.2 Regression coefficients per effect of advertising on acquisition
of customers in the electronics products. 77
4.3.3 Model summary of the simple regression for personal
selling on sales volume 78
4.3.4 ANOVA results 79
4.3.5 Regression coefficient of effect of personal selling on sales
volume of the electronics product 80
4.3.6 Model Summary of simple regression for sales promotion
on market share 81
4.3.7 ANOVA results 82
4.3.8 Regression coefficient for effect of sales promotion on
market shares of the electronics product 83
4.3.9 Correlation Analysis 84
EFFECT OF PROMOTION ON CUSTOMER PATRONAGE OF SELECTED
ELECTRONIC PRODUCTS IN ABIA STATE, NIGERIA
BY
MARK, RAPHAEL MACARTINE
MOUAU/PG/M.Sc/14/4498
DEPARTMENT OF MARKETING
MICHAEL OKPARA UNIVERSITY OF AGRICULTURE,
UMUDIKE
MARCH, 2019
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Promotion is all about communication. It is concerned with the process of strategic information persuasion of a target market about a company, its goods and services (Robertson, 2007).
Therefore activities of marketing should focus on effective and efficient designing of communication and promotional strategies integrated to achieve communication and sales effect in a target market (Anyanwu, 2003).
In the adoption of promotional tools, the major elements that came to limelight are advertising, sales, promotion, personal selling, public relations, direct and database marketing (Berkowitz, 2006). However, there are other numerous promotional platforms. Electronics companies go beyond these to reach out to the target audience (Kotler, Keller, Koshy and Jha, 2012). The products styling and price, the shape and colour of the package, the sales person’s manner and dress, the store decor, the company’s stationeries all communicate something to customers (Kotler, et al., 2012). Every brand contact delivers an impression that can influence a customer’s view in the electronics market. Promotional activities contribute to brand equity and increase sales in many ways: by creating brand awareness, forging brand image in consumer’s memories, eliciting positive brand judgment or feeling and built consumer loyalty which electronics market is not an exception. (Kotler et al., 2012). This is because promotional tools aimed at influencing the way customers view themselves and how buying certain products can will be beneficial to them (Merton, 2000). The messages design by promotional tools, like the one pass through advertising influence the purchasing decisions in the electronic market (Callow, 2004). However, various types of promotional tools could be used to influence the purchase behavior and buying pattern of customer in the electronics market (Anyanwu, 2003). From the forth-going, promotional tools can be used to manage a product through its life cycle, gear towards influencing customer’s patronage of the product. Like in the electronics market, studies have confirmed that advertising as a component for marketing communication, could be used to create awareness of innovation, personal selling is normally adopted as supportive tool to consummate sale, as sales promotion can stimulate remind or sustain customer patronage of electronic products (Daramola, Okafor, and Bello, 2014). At the long run public relations and publicity are normally integrated into marketing communication and promotional activities so as to build and sustain the corporate image of the enterprise; which will help to create image of good corporate citizenship in the mind of the target market in particular and society in general.
1.2 STATEMENT OF THE PROBLEM
Marketing communication has become an integral element in influencing buying behaviour in the electronics market; especially now that the wind of globalization has led to proliferation of innovation in the electronics market. Therefore there is need for strategic combination of promotional tools to influence and sustain buyer’s behavior and preference in the electronics market. These promotional tools are advertising, sales promotions, personal selling, public relations and publicity as well as direct and data base marketing. However, many researches have been done to determine the effect of the promo tools on customer patronage Kambiz and Fatemeh, (2011); Daramola et al., (2014); Light and Morgan, (2010). The problem is that, there are areas that have not been given proper statistical analysis so as to draw the empirical inference that will enhance strategic implementation that will help to achieve product sales as a result of customer patronage in relation to promotional tools adopted. It is true that consumers of both industrial and consumer goods exhibits various attitudes and behavior toward the products and services offered and rendered to them. This is basically because presently consumer’s income is very low due to the economic predicament coupled with the other environmental factors that influence their buying habit, many consumers prefer to spend their hard earned resources on essential goods like food stuff, clothes, shelter and other immediate requirements.
In a developing economy like Nigeria, which Abia State is not left out, it is not enough for dealers /distributors of electronic product to import the product and expect the customer /consumers to buy without considering what they will benefit from it. Hence promotion becomes inevitable. Dealers/distributors are faced with the problem of product quality and competition. It is because of this reason, dealers now attempt to stimulate the market and get consumer attention with customer loyalty, increase market share by using promotional tools. It appears that there is every possibilities that the dealers/distributors of electronic products do not carry out marketing research in order to determine appropriate promotional tool to be employed to influence the customers of these products. They are always in the hurry to sales without studying the target market or audience. This may account for the reason why the required sales levels have not been achieved. Empirical studies that have been carried out on this area are in the context of developed economy. Therefore this study is aimed at examined the influence of promotion on customer patronage of electronic products in Abia State, Nigeria in order to bridge the knowledge gap.
1.3 OBJECTIVESOF THE STUDY
The broad objective of the study is to examine the effect of promotional tools on customer patronage of selected electronic products among households in Abia State. The specific objectives are to;
i. analyze the effect of advertising on acquisition of customers;
ii. ascertain the effect of personal selling on sales volume of selected electronics products;
iii. determine the effect of sales promotion on market shares;
iv. ascertain the relationship between public relations and corporate image of electronic firms.
1.4 RESEARCH QUESTIONS
To address the above stated problems, the following research questions were asked to guide the study
i. what is the effect of advertising on acquisition of customers?
ii. what is the effect of personal selling on sales volume of selected electronics product?
iii. what is the effect of sales promotion on the market share of selected electronics product?
iv. what is the relationship between public relations and cooperate image of the selected electronic companies?
1.5 RESEARCH HYPOTHESES
The following hypotheses were stated in null form to guide the study;
H01: Advertising has no significant effect on acquisition of customers in the electronics product.
H02: Personal selling has no significant effect on sales volume.
H03: Sales promotion has no significant effect on market shares in the electronic products.
H04: There is no significant relationship between public relations and corporate image of the enterprise.
1.6 SIGNIFICANCE OF THE STUDY
The study is significant in many respects. To the marketers, the study would serve as the source of core competence for designing and integrating promotional tools that will help to influence the purchase behaviour of the customers and dealers in electronic product market.
Customer- The customer would gain understanding into better choice and attitude formation towards their purchase of electronic products that would help them to spend their income wisely in their purchase decision.
Government- Government would use the research findings for policy making especially in the area of promoting and regulating activities in the electronic market. .
The research finding would constitute source of knowledge to students and lecturers to augment their classroom teaching and learning activities .in the area of marketing communication and promotional activities.
1.7 SCOPE OF THE STUDY
This research focuses mainly on effect of promotion on customers' patronage of selected electronic products such as LG, Sony, Sharp, Samsung etc. The study was carried out in the South Eastern part of Nigeria, precisely Abia State. The study was limited to the users of selected electronics products in Abia State. The selected electronics products include Samsung, LG, Sony, Sharp etc.
1.8 LIMITATIONS OF THE STUDY
The researcher in the course of this study, which was based on effect of promotion on customer patronage of selected electronics product among household in Abia state encountered some challenges which affected the efficiency and effectiveness in the realization of data for the achievement of the research objectives which can eventually affect the generalization of results obtained from the findings. Some of them are poor attitude from the some of the respondents in given out information, the scope of the study, statistical models used for the analysis of data.
1.9 DEFINITION OF OPERATIONAL TERMS
i. Advertising: any paid non-personal communication through various media about a business firm, product, or idea by a sponsor identified in a message intended to inform, persuade or remind members of a particular audience.
ii Sales promotion: It is defined as those marketing activities directed to the distributors, sales force or the ultimate consumers and can stimulate immediate sales.
iii Personal selling: It is a form of face-to-face communication in which a seller tried to persuade and/or to assist potential buyers to purchase the firms goods and services
iv Public relations: a firm’s communications and relationship with it’s various publics.
v Publicity: non-personal simulation of demand for a good services, person, cause organization through repaid placement of significant news about it, in a published medium or through a favourable presentation of it on the radio or television.
vi Marketing communication: This is the means by which firms attempt to inform, persuade and remind consumers directly or indirectly about the products and brands they sell.
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