ABSTRACT
The study examined the influence of physical evidence strategies on consumer patronage of filling stations in Uyo Metropolis, Akwa Ibom State. Specifically, the study examine the influence of ambient conditions on customer patronage in Filling stations; examine the effect of spatial layout and functionality on consumers patronage of filling stations and determine the effect of signs, symbols and artifacts on customers patronage to filling stations in Uyo Metropolis, Akwa Ibom State. The study adopted descriptive survey research design. The population of the study comprised infinite customers above 18years of age residing in Uyo, Akwa Ibom State. Topman formula was adopted to realize 246 sample size. However, 233 form the sample size based on the copies of questionnaire recouped. Judgmental and convenient sampling techniques were adopted for this study. And 5 petroleum product customers at 2 petrol stations were selected for the study. Cronbach Alpha value of 0.76 was realized which showed that the instrument was highly reliable. The data was analyzed with descriptive statistics such as frequency and percentage distribution. The hypotheses were tested with multiple regression model. The descriptive results, showed that 45.5% of the respondents agreed that, the building in the filling stations are attractive and affects their rate of patronage. 42.9% of the respondents agreed that, space available in the service area affects their patronage. 37.8% of the respondent disagreed that, appealing art works of the organization depicted in the artifacts inspire patronage. 35.6% of the respondents strongly disagreed that, they will recommend a petrol station because of its ambience (lighting, staff dress code, building). The empirical result revealed that, ambient condition (lighting) has significant influence on customer patronage of filling stations in Uyo Metropolis, Akwa Ibom State. Spatial layout and functionality (arrangement of equipment, ease of entry and exit, functioning of equipment and space availability) have significant influence on customer patronage of filling stations in Uyo Metropolis, Akwa Ibom State. There is significant joint influence of signs, symbols and artifacts on customers’ patronage of filling stations in Uyo Metropolis, Akwa Ibom State. The study concluded that the use of physical evidence dimensions as strategies to improve customer patronage in filling stations should be recognized since both theoretical and empirical evidence has proven that the dimensions of physical evidence positively correlate with customer patronage. We recommended that, petrol stations should continuously improve their spatial layout in other to increase customers comfort. This can be achieved by ensuring proper functioning of their equipment, as this will serve as a major prerequisite for customer patronage.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables ix
List of Figure x
Abstract xi
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 5
1.4 Research Questions 6
1.5 Research Hypotheses 6
1.6 Significance of the Study 6
1.7 Scope of the Study 7
1.8 Definition of Terms 8
CHAPTER 2: LITERATURE REVIEW
2.1. Conceptual Framework 9
2.1.1 An overview of the petroleum industry in Nigeria 9
2.1.2 Concept of physical evidence 11
2.1.3 Types of physical evidence 13
2.1.4 The roles of physical evidence 14
2.1.5 Guidelines for developing physical evidence strategy 16
2.1.6 Dimensions of good physical evidence 17
2.1.7. Ambient conditions 21
2.1.8. Spatial design and functionality 26
2.1.9. Signs, symbols and artifacts 30
2.1.10. Customer patronage 33
2.1.11. Customer satisfaction 36
2.1.12. Repeat purchases 40
2.1.13. Customer referrals 42
2.2 Theoretical Framework 46
2.2.1. Resource based theory by Jay Barney (1991) 46
2.2.2. The theory of reasoned actions by Ajzen & Fishbein (1975) 48
2.2.3. The SOR model by Mehrabian & Russell (1974) 50
2.2.4. Gestalt theory by Maxwertheimer (1880-1943), Kurt Koffka (1886-1941)
and Wolfgang Kohler (1887-1967) 53
2.3. Review of Empirical Studies 54
2.4 Summary of and gap in the Literature 64
CHAPTER 3: METHODOLOGY
3.1 Research Design 66
3.2 Study Area 66
3.3 Population of the Study 67
3.4 Sample Size Determination 67
3.5 Sampling Technique 68
3.6 Source of Data Collection 68
3.7 Instrument for Data Collection 68
3.8 Validity of the Instrument 69
3.9 Reliability of the Instrument 69
3.10 Method of Data Analysis 69
3.10.1 Model specification 70
CHAPTER 4: RESULTS AND DISCUSSIONS
4.1 Questionnaire Administration 72
4.1.2 Demographic Characteristics of the Respondents 73
4.2 Results Presentation 75
4.3 Test of Hypotheses 80
4.4. Discussion of Findings 86
CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 88
5.2 Conclusion 89
5.3 Recommendations 90
5.4 Suggestions for Further Study 90
5.5 Contribution to Knowledge 91
Heuristic model 92
References 93
Appendices 108
Appendix 2: results 111
LIST OF TABLES
2.1 Summary of review of related literature 64
4.1 Questionnaire administration 72
4.2: Demographic characteristics of the respondents 73
4.3: Rate of patronage of filling stations 74
4.4: Occupation of the respondents 75
4.5: Influence of ambient conditions on customer patronage in filling stations 75
4.6: Effect of spatial layout and functionality on consumers patronage 76
4.7: Effect of signs, symbols and artifacts on customers’ patronage 78
4.8: Physical evidence and customer patronage 79
4.9: Multiple regression coefficients result of influence of ambient
conditions on customers’ patronage of filling stations in Uyo
metropolis 80
4.10: multiple regression coefficients result of effect of spatial layout
and functionality on customers’ patronage of filling stations in Uyo
metropolis 82
4.11: multiple regression coefficients result of signs, symbols and artifacts
and customer patronage of filling stations in Uyo metropolis 84
LIST OF FIGURES
2.1: Operational conceptual framework 45
2.2: A schematic representation of the theory of reasoned
action by Rah et al., (2004) 50
2.3: Schematic representation of SOR model by Mehrabien and
Russel (1974) 52
5.1 Heuristic model 92
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
For the past ten years, the effect of the physical condition of environment has become a significant factor for the business and marketing experts for effective distribution of products and boosting level of customer patronage. Specifically, the physical condition is a viable determinant in differentiating business and correspondence with customers as it permits a simpler assessment of the administration division with an impalpable component. In effect, physical evidence shapes buyers perception by providing reliable information the quality and performance of the service rendered by firms. As indicated by Shostacke (2002), the significance of physical evidence to consumers’ perception of services are gaining extraordinary enthusiasm in the literature, since services setting assumes a basic job in molding desire, differentiating service firms, encouraging client and employee objectives and influencing the nature buyers’ experiences.
Physical evidence has been characterized as the atmosphere wherein the services are conveyed when the firm and clients interact and some tangible mechanisms that encourages performance of goods and services firms (Zeithaml and Bitner 2003). Physical evidence incorporates the presence of physical structure, arrangement of vehicles and equipment, hardware, interior furniture, garbs, signs, printed materials and obvious signals that give indication of service quality. Physical evidence is in this manner a component of service marketing blend which empowers the customers to assess the firm. Physical evidence as characterized by Namasivnyyam and Lin (2008) is the physical condition of the firm including the general format, structural layout and enhancement. It is additionally to assemble condition with an artificial condition encompassing rather than nature, or social condition (Bitner, 1992). Physical condition is progressively significant in firms than basic offers in service-related centers like, lodgings, emergency clinics, films and schools, yet its significance cannot be over underlined in firms where client administrations are rendered as compelling control of the service scape can prompt consumer loyalty and increment rehash buy (Namasivnyyam and Lin, 2008). Physical evidence is seen as a significant wonder in molding customer physiological intellectual and passionate states as well as their conduct on the grounds that, for purchasers visiting a help or retail location, the service condition is the primary part of the administration that is seen by the customer and it is at this phase buyers are probably going to frame impressions of the degree of service they will get.
Generally, physical evidence recounts to the tangible facets of services which are regarded as man-made physical environment where services are offered as potential customers may not touch, hear, see, smell or taste services in advance before buying them, thus marketers are trying to use communication features that makes welfares palpable and offer assurance in customer purchase decision (Churchill & Peter 1998). Services are seen to be elusive, as it cannot be seen or contacted and customers cannot look at them before settling on buying choice (Chow and Blackwell, 2002) consequently, condition which the services are conveyed and where the firm and clients cooperate must be decorated with unmistakable segments that encourages performance or correspondence of the services. Accordingly, physical proof incorporates every single unmistakable portrayal of services, for example, pamphlets, letterheads, signage, reports recipes, hardware and sometimes it incorporates the physical office where the services offered are conveys and encourages service conveyance.
Moreover, physical evidence is the outward appearance of the organization and this can be basic in framing introductory impression or setting up client desires. Accordingly, the capacity of physical surrounding to encourage the accomplishment of organizational goal as well as marketing objectives is obvious. A long standing marketing rule is that understanding and fulfilling clients prompts predominant business results. An organization identifies with its clients to accomplish the comprehension and increment support through the structure of service conditions, service quality and service work force. In other word, service condition and the physical design of the hardware are stable with client desires, satisfaction will increase which will essentially expand the degree of customer patronage.
However, customer patronage refers to the approval or support provided by the buyers with reverence to a particular brand. According to Oliver (2011), customer patronage refers to deeply-held assurance to repurchase a particular firm’s goods and services at the expense of the competitor’s offerings. Soeck (2012) defined patronage as replication purchase behavior at a specific store for either the similar products or any other goods. Patronage delivers the basis for a well-known growing market share. Kotler (2007) advocates that consumers have unpredictable degree of patronage to particular services store and other entities According to succinct Oxford English Dictionary (2008), buyer or consumer patronage refers to a person or thing that consume or uses something or a person who purchase goods / services for individual consumption or use. Therefore, patronage is seen as the level which a buyer exhibits consistent purchase behavior from a product or service firm, upholds a positive extensive attitude and disposition towards a products or service provider (Grembler & Brown, 1996).
For buyers visiting a service or merchandizing store, the service atmosphere is the first aspect of the service that is observed by the buyer, and it is at this stage that consumers are likely to form an impression of the level of service to be receive. Consumers seek evidence of the superiority of the intangible service from observing the tangible elements that is physical evidence (Barney & Parasuraman, 1991).
Customers usually depend on physical evidence which are concrete or tangible cues to critic the worth of service. According to Besson and Jackson (2013), the presence of the establishment and its personnel are often employed by customer as cues to the quality of the service. Physical evidence plays a perilous part in shaping expectations, differentiates service firms, simplifying consumer and employee goals, thus, can be precarious in forming initial impression or setting up customer expectation (Anand 2008). Therefore, the purpose of physical indication is to support the organizations marketing programs by making it possible to manage the palpable cues to the best advantage of the customer and the organization. Physical condition is therefore significant since it influences not only consumer’s cognitive, emotional and physical states nevertheless also customer behavior which affects patronage.
1.2 STATEMENT OF THE PROBLEM
The untouchability of service represents some difficulties faced in marketing of service-related products, because the potential purchaser cannot look at it before getting it, so the marketer must give signals about the quality and advantages of the services. Additionally, when there is shortcoming or error in the service conveyance, it cannot be rectified or reclaimed. According Mcdougall and Snatsinger (1987), elusiveness has been broadly decreed by many promoting scholars to be the most basic and special element of services, this is on the ground that, as services items cannot be shown, exhibited or outlined, shoppers cannot make a pre-buy assessment of the considerable number of qualities of the services. Large number of the filling stations, notwithstanding their cold-heartedness toward customers’ essential mental need, could not care less about some significant selling focuses like civilities, dispensing pump accuracy, quality of products, good attention, orderliness of station, spatial layout, neatness of the stations and staff, ambient condition, staff attitude, signs, symbols, artifacts and dispatch of customers. Other problems include lack of good convenience and functional POS services and old equipment.
Furthermore, the intangibility of some service related-products on the fragment of the consumers makes it tasking for buyers to appraise services offerings, predominantly, quality and worth for cash, prior to acquisition and on the area of management makes it challenging for the marketers to position new service product offerings. Because of these, marketers find it challenging in appropriately manipulating evidences to suite the appeal of individual customers, thus, they go a long way in providing myriads of physical evidence elements which may or may not lead to patronage. In view of the aforementioned issues, the research examined the physical evidence and consumer patronage of filling stations in Uyo Metropolis, Akwa Ibom state.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this study was to examine the influence of physical evidence on consumer patronage of filling stations in Uyo Metropolis, Akwa Ibom State. The specific objective were to:
i. examine the influence of Ambient Conditions on Customer Patroange in Filling stations in Uyo Metropolis, Akwa Ibom State.
ii. examine the effect of Spatial Layout and Functionality on Consumers patronage of Filling stations in Uyo Metropolis , Akwa Ibom State
iii. determine the effect of Signs, Symbols and Artifacts on customers patronage to Filling stations in Uyo Metropolis, Akwa Ibom State.
1.4 RESEARCH QUESTIONS
The study provides answers to the following research questions:
1. How does ambient conditions influence customers patronage of Filling stations in Uyo Metropolis, Akwa Ibom State.
2. How does spatial layout and functionality effect on customers patronage of filling stations in Uyo Metropolis, Akwa Ibom State.
3. How does signs, symbols and artifacts effect on customers patronage of filling stations in Uyo Metropolis, Akwa Ibom State.
1.5 RESEARCH HYPOTHESES
The following null hypotheses were provided for the study:
H01: Ambient conditions has no significant influence on customer patronage of filling stations in Uyo Metropolis, Akwa Ibom State
H02: Spatial layout and functionality has no significant effect on customers’ patronage of filling stations in Uyo Metropolis, Akwa Ibom State.
H03: There is no significant joint influence of signs, symbols and artifacts on customers’ patronage of filling stations in Uyo Metropolis, Akwa Ibom State.
1.6 SIGNIFICANCE OF THE STUDY
This study has its own significance for the following reasons;
The present study highlights to players in the petroleum industry the roles that physical evidence plays on the perception of customers of filling stations with regards to service quality as such they will understand how to manipulate the various physical evidence elements applicable to the sector that will enhance patronage. The study will be of help to managers of companies in other service industry in the Nigerian economy as the results of this study will aid them to tangibilize their service offering to gain competitive advantage above their competitors. Furthermore, the study also has its contributions to the society as its findings will expose stakeholders and other relevant players in the economy in planning effective strategic marketing programs in the petroleum industry in Uyo Metropolis in particular and Nigeria in general. Finally, future scholars and researchers will use the results as a source of reference in subject matters related to physical evidence and consumer patronage in the petroleum sector
1.7 SCOPE OF THE STUDY
The study analyzed the influence of physical evidence on consumer patronage of Filling stations in Uyo Metropolis, Akwa Ibom State, Nigeria. Conceptually, the study examined the influence of ambient conditions, spatial layout and signs, symbols and artifacts on customer satisfaction, repurchase and referrals. Geographically, the study was limited to all Filling stations in Uyo Metropolis, Akwa Ibom State. Many factors necessitated the choice of Uyo metropolis, first is the fact that uyo metropolis is the state capital of Akwa Ibom State. Secondly, the filling stations in Uyo Metropolis are well developed because owners of these stations due to competition understand the need to tangibilize service quality and thus manipulate many physical evidence elements in order to have a competitive edge. Also, comprehensive data is available on the number of filling stations in Uyo Metropolis and the consumers are enlightened enough to offer needed information for the research. Methodologically, customers of filling stations in Uyo Metropolis were the respondents of the study and data will be analyzed with both descriptive and inferential statistics. Finally, the study was on customers level and the unit of analysis includes customers of filling stations above 18 years of age.
1.8 DEFINITION OF TERMS
Physical Evidence: Physical evidence includes all efforts taken by the service provider to make services visible. It includes incorporating elements such as ambient conditions, spatial layout, signs symbols and artifacts, staff dressing, building, equipment, etc. that suggest to the quality of service to be received.
Consumers Patronage: This refers to the impulse, desire and consideration with the consumers which induce the purchase of goods and services form a particular outlet.
Filling Stations: Any place licensed for the purchase and sales of petroleum products to retail customers.
Ambient Conditions: These are the essentials that affect human perceptions of and responses to an environment. It includes features of an environment like; lighting, noise, music, scent etc. which mostly affects the five senses.
Spatial Layout: This refers to the design and arrangement of services equipment, including provision of space among them for easy movement. It is the design and arrangement of service equipment in a service outlet, including the space provided for easy entry and exit.
Signs, Symbols and Artifacts: These include all labels, signage and other environmental objects that communicates, give directives, and implicit cues to consumers about the meaning of a place and expectations for behavior in the place.
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