ABSTRACT
It is
always costly to attract new customers, so the managers always try to find ways
to retain their current customers and concentrate on different factors which
enhances the customer loyalty among the customers of the organizations.
This
research examined the effects of product quality on customer loyalty and the
overall effect on corporate survival with reference to Chi Limited. Survey
design was employed with the use of a well structured questionnaire.
Respondents were selected based on simple random sampling technique. Fifty (50)
customers of Chi Limited and Thirty (30) staff were sampled.
Two
hypotheses were formulated and tested with the use of Chi-Squre analysis. The
analysis resulted to rejecting both null hypotheses and hence accepting the two
alternate hypotheses.
Based on
decisions of the tested hypotheses conclusions were reached that product
quality is relevant to customer loyalty and it also has impact on corporate
survival. Chi Limited was recommended to take fresh look at loyalty and retention
strategy, align loyalty and retention programs with marketing strategy and also
providing consistently high quality products.
TABLE OF CONTENTS
Title Page i Certification ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Contents vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 2
1.2 Statement of Problem 5
1.3 Objective of the Study 5
1.4
Research Questions 6
1.5
Research
Hypotheses 6
1.6
Significance
of the problem 7
1.7
Scope
and Limitation of the Study 7
1.8
Historical Background of The Study 8
1.9
Operational
Definition of Terms 9
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction 11
2.2 Meaning and Definition of Packaging 12
2.3 Components of Packaging 13
2.4 Importance of Packaging 14
2.5 Package
Design 18
2.6 Packaging
Strategy 27
2.7 Forms of Packaging 29
2.8 Policies and Strategies of Packaging 30
2.9 Factor Affecting Packaging Design 33
CHAPTER
THREE
RESEARCH METHODOLOGY
3.1 Introduction 38
3.2 Research
Design 38
3.3 Sources of Data 39
3.4 Population
of the Study 39
3.5 Sample Size and Sampling Techniques 39
3.6 Research
Instrument 40
3.7 Restatement of Research Hypotheses 40
3.8 Methods
of Data Analysis 41
3.9
Validity of Research Instrument 41
3.10 Reliability of Research Instrument 41
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Introduction 43
4.2 Analysis of Respondent Bio-Data 43
4.3
Analysis
of Questions from Problem Area 46
4.4 Testing
and Interpretation of the Hypotheses 53
4.4.1 Analysis of Hypothesis One 53
4.4.2 Analysis of Hypothesis Two 56
4.6 Discussion
of Findings 58
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings 59
5.2 Conclusion 59
5.3 Recommendations 60
5.4 Suggestions for Further
Studies 62
Reference 63
Appendix 65
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
A study of the evolution
of packaging is inextricably linked to the evolution of consumption habits in
particular, and of society as a whole (Zeithaml, V. 1988). In the rural society which
prevailed until the industrial revolution of the 19th century, packaging was as
rudimentary as the living conditions of the time. Packaging was often
standardised and could be used for a number of different purposes: transporting
food, wood or tools. We are talking more about receptacles than about
packaging, a role they did not fulfill with much success. The role of packaging
was just to ensure the conservation and transportation of products.
The industrial revolution
gave a considerable impetus to the need for packaging. Mass production and
developments in modes of transport created new needs. We moved from a society
where trade was limited and each community produced goods it needed to a
society where activities became more and more specialised. Products were no
longer used by their producer or his or her immediate neighbours, but were now
transported, sold and consumed. New manufacturing procedures and transport
conditions determined the forms that packaging should take. That is how barrels
evolved especially adapted for sea transportation, as well as boxes that were
easy to move and store. The packaging of products had the principal aims of
protecting them and facilitating their transport, making them available to more
people. Retailers would then simply unpack products before selling them.
Individual packaging was not yet used and no real thought had been given to
packaging as a means of communication or as a sales tool. Products were
packaged and then sold in bulk. Shopkeepers handled the products, weighing and
wrapping them individually, with little concern for hygiene, while their
customers watched carefully to make sure they were getting what they asked for.
The second packaging
revolution came after the Second World War, parallel to the development of the
post-war economy. After having been used to serve the principally needs of the
product (protection) and then to the producer (transportation), packaging began
to focus on the needs of the consumer. Distribution systems were in the process
of changing radically, from open markets and small local grocery stores to
supermarkets. From then on, packaging was used for each individual product, so
that it was ready to be picked up from the shelf and taken away by the
consumer. The era of self- service had begun thanks to packaging of pre-packed
products. Products were pre-packed. Another consequence of this new method of
consumption was that information about the product could be printed on the
packaging. After all, the shopkeeper was no longer relieve to convey the
necessary information in a large supermarket. Consumption rose considerably, as
did the population. This was the age of the baby boom, which was twinned by a
consumption boom, packaging being the pre-condition for the modern retail
trade. Packaged products soon became a much-desired commodity and packaging had
to adapt to the latest trends. It is no coincidence that the mass introduction
of plastic packaging dates from this era. Packaging was to emerge as an
industry, and was automated to keep up with the accelerating pace of
developments. Demands for quality began to rise, thus making ever greater
demands on state-of-the-art technologies. The increasing importance placed on
the individual and the increase of working women made it once again necessary
for packaging to find a means of surpassing itself. Consumption became mobile,
people were on the move and time was precious. Packaging faced up to this new
challenge by means of vacuum- packed food, using materials that could withstand
the impact of being taken out of the deep-freezer to be popped into a
microwave. As if this growing complexity was not enough, consumption also
became more global. Products made on the other side of the world had to be delivered
in perfect condition. Packaging had to be made even more resistant, protective,
and easily transportable.
The (provisional) end of
this story is evident in shops and daily lives. Supermarkets should be able to
offer ever more exotic products, our household appliances have sometimes
travelled many kilometres before reaching our homes, and our fridges are filled
with convenience foods (Rettie R. et al. 2000). The world is becoming a truly
global village. Packaging has played a key role in this.
1.2 STATEMENT
OF THE PROBLEM
The general public has little understanding of packaging as it is the
product that is of interest. The consumer/customer package may influence the
consumer/customer at point of purchase, but the transport package is only
interesting to manufacturers and distributors (Firstenfeld,
J. 2005).
Industry and individuals must continue to strive for effectiveness and
efficiency to make their businesses competitive. Obviously packaging is a
necessary facilitator in this global trade (Aaker, J. L. 2009).
It is a guarantee for proper distribution of food and other necessities to
people and industries all over the world. Therefore the packaging
industries are faced by a number of
challenges, namely
·
Developing tools to demonstrate how to utilise packaging
in product development, thus making products competitive in different markets.
·
To gain understanding of the supply
chains serving different industries and organisations in detail, analyse the
consequences of new supply structures and changes that influence packaging.
1.3 OBJECTIVES
OF THE STUDY
The
main objective of the study is to determine the role of packaging as a
marketing strategy. The subsidiary objective includes:
·
To
examine how packaging shape affects purchase quantity
·
To
investigate if packaging and design is a marketing strategy
·
To
examine if package type affect buyer volume perception
1.4 RESEARCH
QUESTIONS
In order to achieve the purpose of
this research study, the study will attempt to provide answers to the following
research questions.
·
Does package
type affect buyer volume perception?
·
Does Package shape effects, Visual
Perceptual Biases and Purchase Quantity decisions?
·
Is
packaging and design a marketing strategy?
·
Does
package shape affect purchase quantity?
·
Does
packaging influence consumers’ brand choice?
·
Do
different kinds of packaging evoke different reactions in consumers?
1.5 RESEARCH
HYPOTHESES
A
hypothesis is a conjectural or tentative statement of the relationship between
two or more variables. In this research project, The following hypotheses will
be tested.
Hypothesis One
Ho: Product
packaging does not have significant influence on sales volume
H1: Product
packaging has significant influence on sales volume
Hypothesis Two
Ho: Product
package shape does not effect,
Visual Perceptual Biases, Purchase Quantity decisions
H1: Product
package shape effects,
Visual Perceptual Biases, Purchase Quantity decisions
1.6 SIGNIFICANCE
OF THE STUDY
The
relevance of this study is to produce information on the role of packaging as a
marketing strategy that will be useful to:
Members
of the board or councils of WAMCO Nig. Plc. Also those at the helm of the organisation,
which include high level, managers, and low level managers in the industry, the
financial managers, accountants, auditors and marketers who carry out marketing
promotion and distribution.
The
study is would also contribute to theoretical framework and add to body of
knowledge, as well as for further studies.
1.7 SCOPE AND LIMITATION OF
STUDY
The premise on which this study is
based is that, product packaging has
effect on sales volume in dairy industry with special reference to Wamco
Nigeria Plc. The research work will be conducted on data that will be garnered
from Wamco Head Office situated at Ogba, Lagos State.
Data will also be collected from consumers of Wamco products residing at
Ifako/Ijaiye Local Government Area of Lagos State.
The study will further identify the
fundamental limiting factor which most managers usually encounter in product
packaging design.
Limitations
In the course of conducting this
research work it is expected that the following will constitute impediments to
the effective conduct of the study
a) Time
constraint within which the study must be completed.
b) Financial
constraint
c) Inaccessible
and inadequate data
Nevertheless, I believe the above
limitations will in no way affect the reliability and validity of the research
study.
1.8 HISTORICAL
BACKGROUND OF THE STUDY
Peak Milk arrived Nigeria
1954 with importation of peak milk only. The company was incorporated as West
Africa Milk Company (WAMCO) Incorporation in 1973 and started the local
production of Peak Milk in 1975. A can factory was launched in 1978 and
commenced the production of many of its products that includes;
WAMCO was certified as the first dairy company in Nigeria
to be ISO certified in 1997. WAMCO started the local production of powder milk
in 1999 with the launch of her first powder factory. The second powder plant
was launched 2005. WAMCO Plc was renamed Friesland Foods WAMCO Nigeria Plc. In
the year 2005. It was again renamed Friesland Campina
WAMCO Nigeria PLC in the year 2009.
Friesland
Campina WAMCO Nigeria Plc has remain the largest dairy production company in Nigeria with its
products sold nationwide and across Africa
countries.
1.9
OPERATIONAL DEFINITION OF TERMS
Packaging: A
coordinated system of preparing goods for safe, efficient and cost-effective
transport, distribution, storage, retailing, consumption and recovery, reuse or
disposal combined with maximising consumer value, sales and hence profit
Supply Chain: is a system of organizations, people,
technology, activities, information and resources involved in moving a product
or service from supplier to customer.
Purchase Intention: The likelihood that a consumer will
buy a particular product resulting from the interaction of his or her need for
it, attitude towards it and perceptions of it and of the company which produces
it.
Brand Marketing:
is the art/science of making the right impression on prospects
Purchase Quantity: The economic lot size
for a purchased
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