ABSTRACT
TABLE OF CONTENTS
Title
page i
Certification ii
Dedication iii
Acknwledgement iv
Abstract vi
Table
of Contents vii
1.0 CHPATER ONE: Background to the study 1
1.1 Introduction 1
1.2 Statement of problem 7
1.3 Aims and objectives of the study 8
1.4 Siganificance of the study 8
1.5 Scope of the study 11
1.6 Limitations and constraints to the study 12
2.0 CHPATER TWO: LITERATURE REVIEW 14
2.1 Concept of Consumer Behaviour 14
2.2 Factors Influencing Consumer Behaviour 15
2.3 Concept of New Product development 19
2.4 Types of New Product Deveopment 20
2.5 Concept of Brand 23
2.6 Characteristics of a brand 24
2.7 Rationale for brand modification 25
2.8 Hypothesis formulation 26
3.0 CHAPTER THREE: RESEARCH METHODOLOGY 28
3.1 Research population and Sample 28
3.2 Research Design 29
3.3 Instruments of Data Collection 30
3.4 Admiistartion of Instruments 32
3.5 Method of Data Analysis 32
4.0 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Brief hisotry of Close-up Brand of
Toothpaste of
Unilever,
Plc 34
4.2 Characteristices of Close-up Brand of
Toothpaste 35
4.3 The Products Market 36
4.4 Test of Hypothesis 38
5.0 CHAPTER
FIVE: SUMMARY, CONCLUSIONS
AND
RECOMMENDATION
5.1 Summary of findings 44
5.2 Conclusions 46
5.3 Recommendations 49
References 52
CHAPTER
ONE
1.1 INTRODUCTION
It is a well know fact that beings, have unlimited
wants that need to be satisfied and that is why economics says ‘’ human wants
are insatiable’’. As a particular need is being satisfied, new ones arise. The
needs are so many that the resources available to satisfy them are limited at
every point in time. The individual therefore has to decide the other in which
these wants are to be satisfied depending on which ones he prefers to the
others.
According to Boone and Kuriz. Consumer behavior can
be defined as the acts of individual in obtaining and using goods and sevices
including the decision process that precede and determine these acts. This
definition includes both the ultimate consumer and the purchaser of industrial goods.
A major differences in the purchaser behavior of industrial consumers and the
ultimate consumer is that additional; influences from within the organization
may be exerted on the industrial purchasing agent.
Consumer behavior results from individual and
environmental influences. Consumer often purchases goods and services to
achieve their ideal self image and to protect the type of self image they want
to in other to accept. Behavior is therefore determined by the individual’s
psychological make up and influence of other. The dual influence has been
summarized into the following simplified equation of behavior.
B=F(P,E)
Consumer action (B) is therefore, the result of
interaction of the consumer’s personal influence (P) and the pressures exerted
upon him side forces in his environment E).
The four basis determinant of consumer behaviour
are the individuals needs, motives, perceptions and attitudes the ineraction of
these factors with influences from the environmental cause the consumer to act.
The starting point in the purchase decision process
in the recognition of a tail need. A need is simply the lack of something useful.
The consumer is typically confronted with numerous unsatisfied needs. It is
important to note that a need must be sufficiently around before it may serve
as a motive.
Motives are inner state that directs us toeards the
goal of satisfying a felt need. The word product can therefore be defined as a
bundle of physical, services and symbolic characteristics designed to produce
consumer want satisfaction.
An important pre-requisite for efficiency product
modification or innovations is a functioning organizational arrangement
designed to stimulate and co-ordinate new product develploment
It is a universal truth that favorable consumer
attitudes are pre-requisites to marketing success. If consumer views the
product unfavorably, the firm may choose to redesign the product to better
conform to their desires to accommodate the consumer.
The firm may make styling changed, variations in
store handling the product. Ingredient change in package size and changes in
retail store handling the product.
Thus, the aim of every consumer to derive the best
satisfaction from every goods and services purchased. Different factors are considered
by the consumer before a decision is made to purchase a product. These factors
sometime vary from individual to individual. They include price of the
commodity, quality of close substitutes, quality of effectiveness of the
product and complements, package and other promotional efforts, etc.
Generally, speaking consumer behavior are high
influenced by ‘’controllable’’ and ‘’uncontrollable’’ ‘’internal’’ and
‘’external’’ factors. They can be grouped under economic, cultural, social,
personal, characteristics and psychological factors.
Economic factors that affect consumer behavior include:
1
Those that
can denote controlled i.e they are outside the influence of the individual firm
e.g total income units specifically other uncontrollable economic factor which
affects consumer purchase decision are disposable personal income, size of
family and family income, consumers income expectation etc.
2
Cultural
factors also exert a broad and deep influence on consumer behaviors according
to kofler ‘’culture is the most fundamental determinant of a persons want and behavior’’.
Every culture involves unique patterns of social conducts analysis. If these
parttarns of social conducts helps in explaining then buying behavior of
individual factors under the cultural anthropological influences include the
roles of ethnic groups, social class, religion leisure time and fashion as well
as the population composition it self.
3
Social
factors or sociological influences also affect consumer behavior. Marketing is
view by the sociologists as involving the activities of groups of people who
are influenced or stimulated by the individual desires that influenced consumer
behavior includes reference group then diffusion process, status symbols,
family,etc
4
A buyers
decision are also determined by his personal characteristics which include the
age of the buyer and life-cycle stage economic circumstances, occupation,
lifestyles, personality and self concept etc
5
Lastly, four
main psychological factors influence a buyers decision or choices. These are
motivation, perception, learning and belief, and attitudes. Since the
psychological factor are relevant to our study.
In this study and attempt is made to examine the
effect of consumer behaviour on product modification (with special emphasis on
the modification). Unilever Nigeria Limited as it is now called is used as a
case study.
1.2 STATEMENT
OF PROBLEM
In any
research work, certain problems are usually identified for the study to solve.
It is the way a problem is defined that governs the ability of decision makers
to search and identify appropriate solution. This regards, below are the study;
1
Why is it
that consumer go for the product?
2
Does the fluoride
and satisfaction derived it influences consumers?
3
Does the
differences in the price for content of the packages when compared to other
substitutes influence consumer?
4
Does they
attach meaning to colour used?
5
Does
modification leads to higher sales?
1.3 AIMS AND OBJECTIVE OF THE STUDY
The
major aims of the study are to test the effect of product modification on
consumer’s reaction. The objectives of this study can therefore be stated as
follow:
1. To test or examine the effect of product
modification on the behavior of toothpaste consumers especially close-up.
2. To find out whether the degree of patronage
(regularity in buying) affects the influence of modification on consumer
behaviour.
3. To find out if the level of income affects the
purchase of the product.
4. To evaluate the effect of modification on sales
volume of close-up tooth paste.
1.4 SIGNIFICANCE OF THE STUDY
Marketing
can be defined as the manageria activities that identify the needs of consumer
at organization profit.
Consumer
need adequate information about a product after determined the problem of such
product. Marketers needs to provide appropriate information about a product and
persuade the consumer to patronize the product
Marketer
must facilitate the purchase intention of consumer by ensuring consumer utilize
the purchase power of the products.
Consumer
reactions are many from demographic, life style, belief, culture and dynamism
in nature all these must be understandable by marketer and employ wisdom to
persuade and convince the buyer to buy the available product.
Significance
of the company (case study).
This
research will be important to the company in the following ways
1.
It will
increased profitability margin of the company.
2.
The market
share will also be increased and stability of the product.
3.
It will be
form of motivation to the organization.
4.
It will allowed
the company to determine the number of people patronized the product.
5.
The necessary
action will be effective on outcome of customer reactions.
Significance to the Society
Society
comprises both controllable and uncontrollable factors. Controllable factors
are internal element and uncontrollable factors are competitors, consumers,
government and whether and forces all these factors are determinant to the
success of an organization.
Society
is very sensitive in response to certain product because they believe in
purchase power.
The
following are the importance to the society:-
1. It will serve as avenue for consumer to show the
grievance about the product.
2. It will allow the buyers to taste the newly
improved products.
3. It will allow buyers to identify the product from competitor’s
products.
4. it will be another value to consumer purchase
5. it will shows the improvement on technology
6. It will allow the consumer to appreciate the
product by buying more.
SIGNIFICANCE
AS A RESEARCHER
The
writer will also be benefited from this project because it gives more exposure
in reaction of consumer to a changed of a product.
It will
improve the knowledge of skill as well.
1.5 SCOPE OF THE STUDY
The
scope of this study is effect of consumer reaction on product modification,
unilever Nigeria plc, RC113.1, Billing way Oregun Lagos Nigeria was used as
case study which would give more information about reaction gathered from
respondent of questionnaire sent to consumer on unilever product especially
close-up modification.
The
case study unilever situated in Lagos
and the information would be gathered within the area of Oregun Lagos state
from the period of febuary to July 2011.
1.6 LIMITATIONS AND CONSTRAINTS TO THE STUDY
During
the cause of this research, the following constraints were encountered by the
research by the researcher.
1. The researcher was faced with the problem of transportation;
i.e from the researcher’s resident to the company (unilever) and market where
data were to be gathered in order, because there were scarcity motors at that
time.
2. In the cause of this research, the researcher was
given wrong information in the market where close-up products were sold. But
some respondent, responded to our questions positively and important parts was
received by the researchers.
3. Financial barriers stands as a big constraint
during exercise and had limited the full success at this study. This is because
a lot of money was required administering questionnaire do also the time devoted
to conduct the interview was based upon looked appointment which was not
reliable for several days.
4. Finally, the dynamic change in consumers taste in
close-up product caused a little delay or constraints in the success of this
research.
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