ABSTRACT
The study examined the impact of consumer preference
for consumption of locally produced rice in Abia State. The study examined that
price, quality, availability, packaging influence the consumption of local rice
in Abia State. Questionnaire was used to sought information from respondents in
Abia State. Data was analyzed with logistic regression model. It was discovered
that price, quality. Availability
influence the consumption of rice in Abia. Product packaging was not a major
factor in Abia State. It was recommended that producer/ Marketers should
improve on the product quality and add attributes like the foreign rice.
TABLE OF CONTENTS
Title - - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - - v
Table of contents- - - - - - - - - - vi
List of tables- - - - - - - - - - vii
Abstracts - - - - - - - - - - - viii
CHAPTER ONE
1.0 INTRODUCTION- - - - - - - - - - 1
1.1 Background of the Study - - - - - - - - - 1
1.4 Statement
of the Problem - - - - - - - - - 3
1.5 Objective of the Study- - - - - - - - - - 4
1.6 Research
Questions- - - - - - - - - - 5
1.5 Research Hypotheses- - - - - - - - - - 5
1.6 Significance of the Study - - - - - - - - - 6
1.7 Scope of the Study- - - - - - - - - - 6
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework- - - - - - - - - - 7
2.2 Consumer Preference on Locally Produced Rice- - - - - - 8
2.3 Impact of Trade on Domestic Rice Production
in Nigeria - - - - 11
2.4
Consumers’ Perception on locally
Produced Rice Abia State- - - - 11
2.5 Determinants of Consumer Preference for
Rice - - - - - - 16
2.6 Government Intervention in locally produced
Rice in Nigeria - - - 18
2.6.1 Sectorial Policies aimed at
Boosting Rice Production over the years - - - 19
2.7 Theoretical Framework- - - - - - - - - - 24
2.8 Empirical Review - - - - - - - - - - 25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design - - - - - - - - - - 29
3.2 Area of the Study - - - - - - - - - - 29
3.3 Population of the Study - - - - - - - - - 30
3.5 Sampling
Procedure - - - - - - - - - 30
3.6
Method of data Collection - - - - - - - - - 31
3.6
Validation of the
Instrument- - - - - - - - - 31
3.7 Reliability
of the Instrument- - - - - - - - - 32
3.8 Method of Data Analysis- - - - - - - - - 32
3.9 Models
of Consumer Preference - - - - - - - - 32
CHAPTER FOUR
RESULTS AND DISCUSSION
4.0 Presentation and analysis of data- - - - - - - - 35
4.1 Distribution of questionnaire - - - - - - - - 35
4.1.2 General demographic variables - - - - - - - - 36 4.1.3 Response
to key components of hypothetical variables- - - - - 38
4.1.4 Test
of Hypothesis - - - - - - - - - - 39
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary and Conclusion- - - - - - - - - 43
5.2
Recommendation- - - - - - - - - - - 43
References - - - - - - - - - - - - 45
Appendix - - - - - - - - - - - - -
List of Tables
4.1 Distribution of questionnaire - - - - - - - - 35
4.1.2 General demographic variables - - - - - - - - 36 4.1.3 Response
to key components of hypothetical variables- - - - - 38
4.1.4 Test
of Hypothesis- - - - - - - - - - 39
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
Rice is one of the world
most important cereal. It is a staple food for more than 50% of the world
population (Okoruwa and Ogundele, 2004) and accounts for about 60 – 70% of
total food intake in the world (FAO, 2004). About 90% of rice is eaten in the
form of various cooked preparations (FAO, 2010) in addition to its uses as
livestock feed, raw material for industries, fuel and mulching material.
Furthermore, rice production generates employment and provides income to its
operators. In view of the enormous importance of rice, there has been growing
concern on how resources can be efficiently utilized to boost its production,
especially by minimizing production cost to maximize profit.
Rice
is grown in over 100 countries of the world (Oko et al., 2012). Over 95% of the global rice production comes from
the developing countries (FAOSTAT, 2008) and Nigeria is the leading producer of
the commodity in the West African sub-region (FAOSTAT, 2008). Rice is grown in
virtually all the Agro-ecological zones of the country with the highest
proportion of the production coming from the North Central Agro-ecological
zone. However, the production of the commodity did not meet the increasing
demand due to the rapidly increasing population growth and shift in consumers’
preferences towards rice (Ahmadu, 2011).
Despite the recent increase in Nigeria’s production of
rice, rice importation is still required to meet the national demand. The
inability of Nigeria’s to supply enough rice to meet the national demand could
partially be attributed to challenges facing local rice farmers which include
unpredictable weather, shortage of storage facilities and low farm returns.
A number of factors could explain consumer’s
preference for locally produced rice. Usually, consumers are more concerned
about the price and the quality of the commodity they purchase (Diako et al 2010).
Consumer preference for rice may vary from one country to the other. Whereas
consumers in America have high preference for rice with specific cooking types,
menu and processing characteristics, consumers in Middle East have high
affinity for long grain and well-milled rice with strong aroma; however,
consumers in Europe tend to favour long grain rice with no scent (Musa et al,
2011). Nigerian consumer’s high affinity for imported rice could partly be
attributed to the poor quality and non-availability of the domestically
produced rice. Domestically milled rice is of poor quality and only a small
portion of it is made available at the key urban markets. This is because local
rice is produce mostly by farm households at subsistence level of which a portion
is kept for family and the surplus been sold at the village market centers.
Moreover, Nwanze et al., (2006) and Tomlins et al., (2005) reported that
consumers in Nigeria pay particular attention to grain quality and favourable
pricing in their choice for rice types. Similarly, Asante et al., (2013)
reported that Nigerian consumers prefer imported rice to locally produced rice
because of absence of foreign material, better grain quality, ease of cooking
and fragrance. Apart from price and grain characteristics that influence
consumer’s rice preference, there are other socio-economic factors that could
explain consumer’s preference for locally produced in Nigeria and other parts
of the world. Kassali et al., (2012) in analyzing the determinants of rice in Abia
state, Nigeria concluded that income of household head and household size among
other factors significantly influence consumer’s demand for rice.
1.2
Statement of the Problem
Rice is an important staple food worldwide. According
to Jones (1995), rice is the second most important cereal in the world after
wheat in terms of production. Nigeria is the largest net importer of rice in
Africa and the second largest importer in the world; while Nigeria is ranked
the highest producer and consumer of rice in the West Africa sub region. In
spite of the importance of rice in Nigeria, its production does not exist
without challenges. The small farmers have small holdings besides scarcity of
capital and labour. Occasionally, crop failure is experienced due to the flooded
rice field. In addition, productivity is often low (Oko et al., 2012).
Increasing yield per unit area of the rice crop to boost its production remains
a challenge. Other challenges facing farmers in the production of rice includes;
unpredictable weather, shortage of storage facilities and low farm
returns. Ahmadu (2011) identified
efficiency of resource use as one of the measures to increasing rice productivity
and production. Thus, efficiency study has assumed an important dimension in
rice production because resources are scarce and there is need to improve rice
productivity.
The success of any farm business largely depends on
the ability of the farmer to efficiently combine scarce resource in the right
proportion to achieve a given level of output. However, farmers are characterized
with inefficiency due to lack of facilities needed to boost their production,
Availability, price and quantity of packaging have affected consumer preference
and patronage of rice in Abia state, Nigeria. Many studies have been carried
out in this area, either abroad or in the western part of the country towards
enhancing production of locally produced rice in Abia State.
1.3
Objective of the Study
The main objective of the study is to examine the impact
of consumer preference on locally produced rice in Abia State.
The specific objectives are to;
(i)
Ascertain the impact of price in consumption of locally
produced rice in Abia State
(ii)
Ascertain if availability of product quality influences the
consumption of locally produced rice.
(iii)
Ascertain the impact of packaging in consumption of locally
produced rice.
(iv)
Ascertain the impact of product quality in consumption of
locally produced rice.
1.7
Research Questions
(i)
To what extent determines consumer preference for locally
produced rice in Abia State?
(ii)
How does the variables for consumer preference affect locally
produced rice in Abia State?
(iii)
To what extent is the relationship between price and the
consumption of locally produced rice in Abia State?
(iv)
How does the availability of product significantly influence
the consumption of locally produced rice in Abia State?
(v)
To what extent is packaging a major determinant of consumption
of locally produced rice in Abia State?
1.5 Research Hypotheses
For the purpose of the
study, the following hypotheses will be tested in null form
H01: There is
no significant relationship between price and the consumption of local rice in
Abia State.
H02: There is
no significant relationship between product quality and consumption of local
rice in Abia state.
H03: There is
no significant relationship between availability and consumption of local rice
in Abia State.
H04: There is
no significant relationship between packaging and the consumption of local rice
in Abia State.
1.6 Significance of the Study
This study will be quite
significant to the following group of people;
Producers of local rice:
the study will enable them to know the importance of rice to the society, the
study will also enlighten them on the challenges that cause their inefficiency
in rice production. The study will also guide producers (farmers) to knowing
the ways through which the challenges could be handled.
Government: rice is a very
important food in Nigeria and one of the most consumed food in Nigeria.
Irrespective of the importance of rice, Nigeria have not been able to meet up
with the demand. However the study would enable the government to know the
areas at which the production of local rice faces challenges as well as to bring
solution to those challenges.
Consumers: consumers are
affected when their demands are not met. An in-depth knowledge of this work
will assist consumers in knowing the reason why local producers of rice have
not been able to meet their demands.
Academic community: the
study will serve as a reference material to scholars and researchers who would
like to research on a similar topic in their future research.
1.7 Scope of the Study
The subset scope is
consumer behaviour, the geographical scope is Abia State and the coverage scope
is consumers of rice in Abia State.
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