Abstract
Consumers brand preference represents a fundamental
step in understanding consumer choices. A deeper understanding of such
preference dynamics can help managers’ better design marketing program and
build a long term relationship with consumers.
This study assessed consumer brand preference of
different brands of cement in Abia state. The objective of this study is to
determine the factors influencing customer brand preference of different brands
of cement taking into consideration the price, quality, durability,
availability and other attributes of the different brands of the product. The
research design used descriptive research method alongside the survey approach,
The sample size for this study is 368, it was determined using the topman
formula. The research found out that price is a mediating factor in customer
brand preference and other factors such as availability, proximity, quality and
other attributes of the product such as instant drying do not have any
significant relationship with customers brand preference. The study recommends
that less emphasis should be made on availability and instant drying attribute,
attention should be made on price but frequent changes should be avoided, a
standard price fixing can be used.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Question
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitations
1.10 Organisation of the Study
CHAPTER TWO
LITERATURE REVIEW
2.0 Consumer Behaviour
2.1 Theoretical Background
2.1.1 The
Theory of Reasoned Action
2.1.2
Behavioral Choice Model
2.1.3 Personal
Variable Model
2.2 Historical Background
2.2.1 Bulkcem
2.2.2 Dangote
CementPlc
2.2.3 Unicem
2.3 Concept of marketing strategy and consumer’s
satisfaction
2.3.1Types of marketing strategies
2.3.1.1 Market dominance strategy
2.3.1.2 Marketing mix strategy
2.4 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Selection of Data
3.3 Design and Administration of Questionnaire
3.4 Population of the Study
3.6 Sampling Technique
3.7 Reliability and Validity of the Research Instruments
CHAPTER FOUR
Data Presentation and
Analysis
4.1 Analysis of Respondent’s Demographic Variables
4.2 Test of the stated hypotheses
CHAPTER FIVE
Summary, Conclusions and Recommendations
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendation
References
Appendix:
Research Questionnaire
CHAPTER ONE
INTRODUCTION
1.1Background
to the Study
The history of cement production in Nigeria is
traceable to the Pre and immediate Post-independence era which witnessed the
introduction of development plans and import substitution policy and which had
impacted on the cement requirement for development of civil infrastructure of
the nation. The basic inputs into cement manufacture are Limestone, Red
alluvium, Shale and Gypsum. With the exception of gypsum, which occurs in
Nigeria only in thin vein layers (Mojekwu, Ademola, Oluseyi2011).Nigeria is
abundantly endowed with all the other inputs. Limestone, the major input occurs
in all the six geopolitical zones of the country. Apart from the basic raw
material inputs, the other major requirement for cement production is fuel.
Nigeria, as a nation, is rich in all sources of energy: oil, gas, coal and even
other alternative fuel (waste).
The demand for cement is derived from the demand for
residential and non-residential construction. Of these two, the latter is
predominantly due to government and business activity. Non-residential construction
is therefore highly vulnerable to cut-backs in government spending and to
forces of depression in the private business sector (wapco1990).
Residential housing is by far the largest segment of
cement consumption. The crucial forces on the demand for residential housing
are population pressure and rent level (mojekwu et al). With the forces on the
demand for residential housing leading to high demand for cement in the
country; hence the formulation and development of different cement brands in Nigeria.
The History of Brands are not new to marketing.
Historically, the concept of brand was first used by the ancient Egyptian
brick-makers who drew symbols on bricks for identification (Farquhar, 1990).
Other examples of the use of brands were found in Greek and Roman times; at
this time, due to illiteracy shopkeepers identified their shops using symbols.
Moreover, in the Middle-Ages, craftsmen marked their goods with stamps as a
trademark by which to differentiate their skills. The next milestone of brand
evolved in North America with the growth of cattle farming as a kind of legal
protection, proof of ownership and quality signals (De Chernatony and McDonald,
2003). The purpose of brands evolved
into a valuable intangible asset and important resource serving the strategic
reference point and contributing to greater value and market success
(Sääksjärvi and Samiee, 2011; Wong and Merriless, 2007).
Brand management is given a high priority and the
spectrum of brand has been broadened beyond marketing communication and the
resource-based theory of marketing strategy. The approach of brand orientation
places consumers and brand at the pivotal point of company strategy (Wong and
Merrilees, 2007). Doyle (1989) reports that building a successful brand
achieves a high market share and increases profitability. He defined successful
brands as the associated elements that cannot be copied by competitors,
enhancing consumer preferences over competing brands. Evidence of brand
strength is its success, illustrating its ability to win consumer preferences
and construct long-lasting relationships (Kay, 2006). Consumer Preferences Consumer brand
preference is an essential step in understanding consumer brand choice; has
therefore always received great attention from marketers. Horsky et al. (2006)
demonstrate the importance of incorporating information about brand preference
into the brand choice model. Brand preferences represent consumer dispositions
to favor a particular brand (Overby and Lee, 2006). It refers to the behavioral
tendencies reflecting the extent to which consumers favor one brand over
another (Hellier et al., 2003; Zajonc and Markus, 1980). Brand preference is
close to reality in terms of reflecting consumer evaluation of brands. In the
marketplace, consumers often face situations of selecting from several options
(Dhar, 1999).
Marketing is found as a human activity aimed to
satisfy the needs and wants through exchange. At the stage of the marketing
process company's effort I'd be to better serve its competitors in the market
due to the critical need for a greater understanding of consumer behavior is
secret for anybody (kotler and keller 2016) There has been a long standing
interest from marketers to understand how consumers form their preferences
toward a specific brand. Brand preference is closely related to brand choice
that can facilitate consumer decision making and activate brand purchase.
Knowing the pattern of consumer preferences across the population is a critical
input for designing and developing innovative marketing strategies. It also
uncovers the heterogeneity of consumer choices leading to efficient market
segmentation strategies (Brundel Business Studies).
Consumers are constantly learning about their
environment and a portion of this relates to what they consume and when and how
they consume it. They learn about products and services they are exposed to and
adjust their consumption and buying patterns to those things. However they
sometimes form perceptions and obtain knowledge that influences their
consumption pattern. Marketing managers therefore are interested in these
perceptions, knowledge and preferences as they are constantly trying to
communicate products and service benefits, ideas to their target market
(Brakus).
Perception, preference and knowledge on quality cement
which is one of the areas marketers are interested has become one a concern in
recent times not only to these marketers but consumers in general. Consumers
are therefore extremely cautious about what type of cement they purchase and
use in construction to be sure of a quality, durable construction to avoid
collapse (Adewale 2012).
The incessant collapse of buildings in Umuahia the
capital city of Abia state an in Nigeria at large called for a second look into
the debate on the quality of different cement brands being sold in this country
(Etim 2014).
This study
adopts the experimental view in studying customer preference of different
cement brands and also relationship between brand preference and acceptability
rate. Most of the researches done are outside Nigeria and none involves customer
preference of different brands of cement in Abia state, hence this study will
fill the gap.
1.2 Statement
of the Problem
Nigerian cement industry’s potential capacity hit
58.5metric tons Odinaka (2014). With the increase in the demand for cement,
technology has undergone dramatic changes in the last four decades. Cement is
one of the key infrastructures needed in building a house.
In the market today, different brands of cements are
produced by manufacturers in the country, they bridge the gap of fulfilling the
needs and taste of the consumers. As rightly observed by Amutha and Vinayak
(2014)consumers are dynamic in nature and purchases, their taste, needs and
preferences are changing from time to time. Users of cement in the building and
construction industry look out for certain attributes while making their
purchase decision. These attributes includes price, product, quality,
availability, instant drying, packaging, size, innovativeness and rate of
strength.
Thus far, there is no known publication on the customer
brand preference of different brands of cement in Abia state. This is a gap, if
bridged will assist the cement industry in their marketing strategy redirection
and formulation.
1.3 Objectives
of the Study
The general objective is to analyze factors that
determine customer brand preference of different brands of cement in Abia
state.
The specific objectives are to:
i. Determine the socio economic characteristics of the
cement users and rate of adoption in Abia state.
ii. Determine the factors influencing the brand
preference of different brands of cements in Abia state.
iii. Determine if there is a significant relationship
between quality and brand preference of different brands of cement in Abia
state.
iv. Ascertain if there is any significant relationship
between brand preference of different brands of cement and price of cement in
Abia state.
v. Assess if there is a significant relationship
between brand preference of different brands of cement and availability of the
product in Abia state.
vi. Investigate if there is any positive relationship
existing between brand preference of different brands of cement and instant
drying attribute of cement in Abia state.
1.4 Research
Question
i. What relationship exist between socio economic
characteristics of cement users and rate of adoption of different brands of
cement in Abia state?
ii. What are the factors influencing brand preference
of different brands of cement in Abia state?
iii.Is there any significant relationship between
brand preference of different brands of cement and quality of cement in Abia
state?
iv. What is the relationship between brand preference
of different brands of cement and price of cement in Abia state?
v. What is the extent of the relationship between
brand preference of different brands of cement and availability of cement in
Abia state?
vi. What is the extent of the relationship existing
between brand preference of different brands of cement and instant drying
attribute of cement in Abia state?
1.5 Research
Hypothesis
Ho1: There is no significant relationship between
brand preference of different brands of cement and quality of cement in Abia
state.
Ho2: There is no significant relationship between
brand preference of different brands of cement and price of cement in Abia
state.
Ho3: There is no significant relationship between
brand preference of different brands of cement and availability of the product
in Abia state.
Ho4: There is no significant relationship existing
between brand preference of different brands of cement and instant drying
attribute of cement in Abia state.
1.6 Significance
of the Study
This study takes a look at customer brand preference
of different brands of cement in Abia state. Information gathered on this can
be of help to the following bodies:
Consumer
Consumers are dynamic in nature and purchase, their
taste, needs and preferences change from time to time. This study helps give
the consumers an overview of their dynamic nature (consumer behavior) and their
preference change.
Academic Community
Previous studies carried out on this subject are done
outside Nigeria and none involves customer preference of different brands of
cement hence this study will fill the gap and contribute to already existing
researches.
Manufacturer
Since consumers’ tastes and preferences are changing
from time to time, this study will help manufacturers know a little more on
consumer behavior, and those attributes the consumer look to see in a
particular brand of cement.
1.7 Scope of
the Study
This study aims to understand customer brand preference
of different brands of cement, these preferences arise from knowledge and
experience of the brand. To achieve this aim, we look at the different scopes
involved in this study: Geographical scope (Abia state), the subject scope (consumer
behavior, brand and strategic marketing), and the coverage scope (cement users
in Abia state).
1.8 Limitations
i. Lack of related literature
ii. Time constraints
iii. Financial constraints
iv. Illiteracy in the part of respondents
1.9 Operational
Definition of Terms
Brand
A Brand is a
name, term, symbol or design or a combination of them, which is intended to
identify the goods and services of a seller or a group of sellers and to
differentiate them from those of competitors.
Brand Preference
Brand
preference is when you choose a specific company’s product or service when you
have other equally priced and available options. Companies with products at the
brand preference stage are in favorable position in competition their industry
since the brand preferenceresults in brand loyalty companies more market share.
1.10 Organisation of the Study
The research
will be organized into chapters. Chapter one
which is the introduction of the study, chapter two theliterature
review, chapter three the research methodology, chapter four data presentation,
analysis and interpretation, chapter five the summary, conclusion and
recommendations.
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