ABSTRACT
The
primary objective of this study is to assess the impact of price and pricing
decisions on the consumption of bambara nut, focusing on selected major towns
in Abia State, Nigeria. The study employed a quantitative research design. The
study focuses on the effect of price and pricing decisions on the consumption
of bambara nut in Abia State, with a targeted population of 170 respondents
selected purposively. Using the Yaro Yamani formula, the sample size was
determined to be 119 respondents.
A
survey design and non-probability sampling technique were adopted. The
multistage and purposive sampling methods were used to select four
towns—Umuahia, Aba, Ohafia, and Isikwuato—and 170 respondents from these areas
in a ratio of 5:6; 4:2. Data were analyzed using simple regression analysis and
correlation analysis. Frequencies, tables, and percentages were utilized to
determine the effect of price and pricing decisions on bambara nut consumption.
The
findings indicate that bambara nuts, as a relatively new product in a
competitive market, struggle to achieve the expected market share due to
inappropriate pricing strategies. The skimming pricing strategy, typically
effective for unique market offerings, was found unsuitable for bambara nuts
due to their lack of uniqueness. Similarly, competitive pricing strategies did not
significantly impact sales volume because the nut market is saturated.
Penetration
pricing strategy emerged as the most effective, allowing for a low market entry
price which can be adjusted upwards as demand increases. This strategy
facilitates market entry and builds consumer loyalty over time.
Key
findings of the study include: The price of bambara nuts significantly impacts
consumer demand, with high prices discouraging patronage due to the product's
novelty; Skimming and competitive pricing strategies were less effective for
bambara nuts, whereas penetration pricing strategies were more favorable; The
lack of promotion and investment in functional value chains, rather than
demand, limits the commercial exploitation of bambara nuts compared to other
legumes.
The
study concludes that not all pricing strategies are suitable for bambara nuts,
given their relative novelty in the market. The penetration pricing strategy is
highly recommended to foster consumer loyalty and market penetration.
Based
on the findings, the study recommends: Improved agronomic practices in bambara
nut production to enhance farmer benefits. Also, development and promotion of
value-added products derived from bambara nuts, beyond traditional offerings,
to increase market appeal and consumption.
TABLE OF CONTENTS
CHAPTER
ONE
INTRODUCTION
1.1 Background
of the study
1.2 Statement
of the problem
1.3 Objectives
of the study
1.4 Research
questions
1.5 Research
hypotheses
1.6 Significance
of the study
1.7 Scope
of the study
1.8 Definition
of technical terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 The concept of consumption of bambara
groundnut
2.2 Consumption
and utilization of bambara nut
2.3 Factors
affecting consumption of bambara groundnut
2.4 Knowledge
on nutritional value of bambara groundnuts by farmers and consumers
2.5 Marketing
of bambara nuts
2.6 Price
and pricing decision
2.7 Organization
for pricing decision
2.8 Marketing
strategy and price setting
2.9 Pricing
policy
2.10 The
skimming pricing strategy policy
2.11 Critics
of the skimming pricing policy
2.12 The
penetration pricing strategy policy
2.13 Critics
of the penetration pricing policy
2.14 Other
pricing policies/strategy
2.15 Penetration
pricing strategy and skimming pricing strategy, comparative analysis
2.16 Socio-economic
profile of the bambara groundnut marketers
2.17 Marketing
cost of bambara groundnut
2.18 Determinants
of income for bambara groundnut marketing
2.19 Cultivation
and production
2.19.1 Potential constraints in production
2.20 World
production and trade
2.21 Supply-side
constraints
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research
design
3.2 Area
of study
3.3 Population
of the study
3.4 Sample
size determination
3.5 Sources
of data
3.6 Sampling
and sampling technique
3.7 Instrument
for data collection
3.8 Method
of data analysis
3.9 Reliability
and validity of the study
3.10 Model
specification
CHAPTER
FOUR
RESULT
AND DISCUSSION
4.1 Data
Presentation and analysis
4.2 Test
of Hypotheses
4.3 Discussion
of findings
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of findings
5.2 Conclusions
5.3
Recommendations
REFERENCES
APPENDIX: RESEARCH QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Bambara
groundnut is a traditional or indigenous crop (Onyango, 2010, Andika et al.,2010). Mainly grown as a
subsistence crop by farmers and to some degree for income generation. The crop
is formed in the wild from central Nigeria. Eastwards to Southern Sudan. It is
however, cultivated throughout tropic Africa (Brink and Belay, 2006). The crop
has the potential to contribute to food security, being nutritious and high in
protein (Azam-Ali et al., 2001) in
view of its ability to with stand drought. (Massaive et al., 2005).
Empirical
evidence have shown Nigeria is the 3rd largest producer of bambara
nut, but its production capacity is low, due to high cost of bambara nut,
compared to competing products such as cowpea (Vignanuguiculate) and beans (phaseolus
vulgaris) (A. GraHham pers Gmm. Natural Resources Institute, Uk). As a
result of this under-utilized characterization, the livelihood impact of
bambara groundnut, amongst the largely small holder’ producers, processors and
marketers, stands to be obscured and little policy recognition accorded
Cadilhon, et al., 2006).
Bambara
groundnut seeds are roasted and chewed with palm kernel as a snack item, or
they may be milled into flour and used to prepare bean balls (‘akara’) after
trying the paste in vegetable oil alternatively, the slurry may be used to
prepare a steamed gel, also known as ‘okpa’ (Urere et al., 1999). Aremu et al., (2008)
also observed that the seed flour of bambara groundnut seeds could be useful
replacement in viscous food formulation such as soups and baked foods due to
high values of water absorption and oil and emulsion capacities.
Bambara groundnut plays
an important role in traditional ceremonies (funeral rites) and gift exchanges
(Anchirinalli et al., 2001; Haleagoah
et al., 2005). The crop can be
consumed in the following ways: 1) cooked green pods with kernels. 2) Roasted
3) stewed and seasoned according to taste 4) mixed with groundnuts 5) mixed
with cooked maize. The stewed nuts are the most common dish of bambara
groundnut that are preferred by consumers. Dried seeds are mixed with maize or
plantains and then boiled. The seeds may also be ground into flour and added to
maize to enrich traditional preparations (Brink and Belay, 2006).
Flour may be
prepared from roasted or unroasted seeds of bambara groundnuts, which can be
used for livestock feeding after being soaked in water. The roasted ground meal
can be used as a coffee substitute. The porridge keeps well and is
traditionally used on journeys. Ripe seeds are also broken into pieces, boiled,
crushed, and eaten as a relish with maizemeal porridge. The bambara groundnut
makes a complete food, containing sufficient quantities of protein,
carbohydrate, and fat. It has been reported that tribes in the Congo have
roasted seeds and pounded these for oil abstraction. If the seeds are eaten
fresh or premature these can be consumed with no preparation. However, once the
seed has dried out, boiling becomes necessary to soften it. Dried and roasted
bambara can be used to make flour, soup and porridge. The mature seeds of the crop are rich source
of protein (16-25%), carbohydrate (42-60%) and relative to groundnut lous in
lipids (5-6%) (Poultry and Caygill, 1999; Ankroyed and Doughty, 2000; Brough
and Azam – Ali, 2003).Anyika et al.,
(2009) reported that when legumes and cereals are appropriately combined their
protein quality may be as good as casein or other animal protein sources or
better than them.
Despite
of the fact that Nigeria is the highest producers of bambara nut, over the
years the consumption and utilization of the product have continued to
experience unimpressive growth factors affecting the consumption of bambara
groundnut includes; lack of knowledge on the importance and nutritive value of
the crop by consumers, misconception and attitudes of consumers towards the
products – consumers usually vies the product as poor man’s food. (Bamshaiye et al., 2011). The consumption of
bambara groundnut in Nigeria is low because of the fact that it is mainly
consumed by the farmers and their household.
This research work is on the effects of price and pricing decisions on
the consumption of bambara nut in Abia State and evidence has shown that its
consumption is influenced by the quantity of production and lack of organized
market which made the crop to be regarded to be unprofitable by all farmers.
Most consumers are indifferent about locally prepared food. For instance,
‘Okpa’ that is raped with leave may be seen as poorly prepared or prepared in a
low hygienic environment and for this reason, there is need for improvement and
repackaging of the product for it to be acceptable to consumers.
1.2 Statement
of the problem
Bambara
nut Vigna subterranean (L) is
neglected and under-utilized crop in Nigeria (Berchie, 2009). Agricultural
research traditionally has focused on staple food while little attention has
been given to underutilized and neglected crops particularly by scientist in
developed countries (Heller et al., 2000).
Bambara
groundnut has the potential to contribute to food security, being nutritious
and high in protein (Azam-Ali et al., 2001)
Insufficient or low-intake of protein is a problem which can result to muscle
wasting accompanied by increasing weakness. Lack of protein weakens the immune
system. Immune system not producing enough antibodies or other immune molecules
results to increase number of infections, skin rash and changes to hair
texture. Extreme protein deficiency can result to shock and eventual death.
Evidence
have shown that bambara is one of the underutilized nuts in Nigeria (Bamshaiye et al., 2011). It takes a long time to
cook and contains anti-nutritional factors (Barimalaa and Anoghalu, 1997). The
long cooking time consumes more fuel and water than might be required for
cowpea bean, boiling from fresh may take 45-60 minutes while dried beans may
take as much as 3-4 hours makes it hard for consumers to consume.
Bambara
groundnut is the 3rd most important crops after groundnuts and
Cowpeas but it has low status as it is seen as a snack or food supplement but
not a lucrative cash crop. Between 10 – 40 % of the harvest is sold, the rest
is consumed by the rural farmers themselves (Bamshaiye et al., 2011). The consumption of bambara groundnut in Nigeria is
low; this can be as a result of lack of awareness of the product, its
consumption mainly by farmers and their household and its poor preparation.
People have the mentality that the product is made for poor people. This view
can be from the packaging of bambara ground nut ‘Okpa’, it is usually rapped
with a leaf which looking at it, is not attractive.
1.3 Objectives of the study
The
aim of this study is to assess the effect of price and pricing decisions on the
consumption of bambara nut with special attention to selected major towns in
Abia State, Nigeria, The specific objectives of this research include to:
i.
To ascertain the effect
of price of bambara nut on it’s demand.
ii.
To determine the effect
of skimming pricing policy and strategy on the market share of bambara nuts.
iii.
To establish the
reasonability of the adoption of penetrating pricing policy and strategy in the
marketing of bambara nuts.
iv.
To determine the extent
to which the competitive pricing policy and strategy would enhance the
consumption rate of bambara nuts.
1.4 Research questions
The
following research questions were investigated in this work.
i.
To what extent does the
price of bambara nuts effect its demand (consumption)
ii.
Does the adoption of
skimming pricing policy and strategy enhance the market share of bambara nuts.
iii.
Giving competition in the
nuts market, it is reasonable to adopt the penetrating pricing policy and
strategy in the marketing of bambara nuts to enhance consumer loyalty.
iv.
Will the adoption of
competitive pricing policy and strategy enhance the sale volume of bambara
nuts.
1.5 Research hypotheses
The
understated hypotheses in their null forms served as guide to this study.
H01: The price of bambara nuts does not have
significant effect on its demand
H02: Adoption of the skimming pricing policy and
strategy does not significantly enhance the market share of bambara nuts.
H03 The penetration pricing policy and strategy does not have
significant effect on the actualization of consumer loyalty objective for
bambara nuts.
H04 The competitive pricing policy and strategy do not have
significant effect in enhancing the sales volume for bambara nuts.
1.6 Significance of the study
The study will be beneficial to
various groups namely:-
i.
Consumers:
- Through the value added to bambara groundnuts,
the consumers will derive satisfaction.
ii.
Farmers:
- The farmers will have the satisfactionthat
their product is of high demand and it will also increase their income and
there will be an expansion of bambara groundnut cultivation in Abia State.
iii.
Producers:
- Through innovation and co-ordination, the
producers of bambara nut will increase their sales and there will also be an
increase in their profit.
1.7 Scope of the study
This
research work is limited to assessing the effect of price and pricing decision
on consumption of bambara nut in Abia State. The research work covered the
price as a marketing/activity and consumption of bambara groundnut and also
putting into consideration factors that affects the consumption of bambara
groundnut in Abia State. The study is unable to investigate deeply on the
reformation or repackaging of bambara nut because of time. Therefore it is
important for today as well as the future for further research to so conduct in
divorcing other method to produce and market bambara nut for acceptable
consumption in Abia State.
1.8 Definition of technical terms
These
terms are hereby defined as would be applied in this work.
Food security:
- Is the state of having reliable access to a sufficient quantity of
affordable, nutritious food.
Legumes:-
A plant that has its seed in a pod, such as the bean, pea or bambara nut.
Consumption: The process in which the substance of a thing
is completely destroyed, used up, or incorporated or transformed into something else.
Consumption of goods and services is the amount of them used in a particular time period.
Nutritive value: The
nutritional value of food defines what a food is made of and its' impact on the
body.
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