ABSTRACT
This study was envisaged to assess the determinants of marketing efficiency among restaurant operators in Abia State, Nigeria. With the objectives to analyse the socio-economic profile of restaurant operators in the study area; identify factors affecting performance (profit) of restaurant operations; estimate the factors that influence marketing efficiency among the operators; estimate the effects of restaurant operators on the welfare of their households; identify problems militating against efficiency of restaurant operating in the study area; and make recommendations based on the findings. The respondents were solicited purposively and randomly which amounted to 120 respondents altogether the use of descriptive statistics, correlation analysis and multiple regression was employed in analyzing the data obtained through set of questionnaire administered to the respondents. The result of the analysis showed that the ages of the respondents ranged from 26-65 years, the number of years spent in school was 10-23 years the number of persons in the household ranged from 1-4 persons, the number of years in terms of experience ranged from 2-30 years and their level of income ranged from ₦30,000.00 – ₦900,000.00, there was a positive relationship between age of the restaurant operators and probability in the study area, educational attainment was positive, income was significant with a positive relationship, access to credit was positive and significant, there was a negative relationship between the educational attainment of the operators and their marketing efficiency in the enterprise. The study also showed that restaurant operation is efficient in terms of profitability.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
The restaurant operators constitute an important component of the informal economy in Nigeria, towards meeting the nutritional needs of the urban populace (Johnson, 2004).
In a broad category, restaurant is one of the alternative surviving strategies to improve the people’s welfare, thereby improving their living standard, alleviating poverty and injecting positive indices in the economy.
Efficiency among restaurant operators generally involve generating additional income or reducing house holds at the expense of non-financial aspects of welfare, such as household time, conducive living and working environment family unity and integrity of the local communities. Hence, the government support and intervention policies and mechanism are put in place to ginger efficiency to restaurant operators in tropics (FAO, 2000, 2002).
Efficiency in general describes the extent to which time, effort or cost is well used for the intended task a purpose (Wikipedia). It is often used with the specific purpose of relaying the capability of a specific application of effort to produce a specific out come effectively with a minimum amount or quantity of waste, expense, or unnecessary effort.
Technical efficiency consists of maximizing the level of production that can be obtained from a given combination of factors. The concept of technical efficiency indicates the degree of success in the utilization of productive resource. Therefore, inefficiency is simple the difference between the observed values of production and the maximum values attainable given the technology used.
Marketing efficiency boils down to three categories of efficiency which includes technical, operational and allocative efficiency. Technical efficiency has to do with the efficiency with which resources are used in marketing, in terms of physical and output ratios. Operational efficiency is the availability of goods and services at least cost and at a high level of output. Allocative efficiency refers to market levels allocative, pricing or economic efficiency (Scarborough and Kydd, 1992).
In economics the term efficiency refers to the use of resources so as to maximize the production of goods and services. An economic system is said to be more effective or efficient than another if it can provide more goods and service for society without using more resources (Wikipedia).
According to Barton (1990) and caves (1992), several studies have developed a strategy for identifying the determinants of efficiency, these determinants can be summarized as follows:
1. factors external to the firm, such as the degree of competition existing in the markets in which they operate
2. Characteristics of the firms itself of investment and the advantages of the location of the firm
Dynamic disturbances is deviations from the firms long term equilibrium situation. This disturbances may be a consequences of the evolution of the demand faced by the firm, a consequences of certain of the firm’s production strategies such as the degree of technical innovation.
1.2 Statement of Problem
The mobile street food service system depends on a number of factors such as resources, markets, locational competition and accessibility, which are in turn dependent on the growth and development of the urban areas. The tertiary industries that produce goods and rendered services catering to the local Urban society, together with allied service industries like hospitals, motor parks, banks administration, schools and markets support the economics of agglomeration are those of environment specialization, and provision of municipal services like (portable water, basic health nutrition and waste disposal. This situation influences the restaurant service system which falls in the lowest rank order of industries (Cletus, 2002).
However, the restaurant operation service is home based carried out in structures or stalls by Isolated, self reliant individuals who meet the nutritional needs of the urban poor food preparation and service occur at different sites, with the home prepared foods transported to meet clients at, often unauthorized, locations within the urban that constitutes the market in Abia State, Nigeria the restaurant food service enjoys a wide spatial distribution (source).
As a consequence, there are numerous challenges facing the informal sector of the economy, more especially, the restaurant business. These challenges are manifested on the face of problems containing the effective and efficient business operations. The problems and constructs faced include harassment by local officials; contamination from unsanitary practices; lack of credit, recognition and legal status complex or non existent licensing, systems; ineffective and arbitrary inspections and aggravated traffic congestion (Saito, 1991), Downing, 1995 and Solo, 1998). These constraints are discussed in details herein.
The restaurant operators are always facing the problem of harassment by government law enforcement agents, especially the ones on environment. Thus, though restaurant business is an important urban function in developing economics, urban leaders and planning agencies tend to look upon the operators as an economic encumbrance to the design development of the city; and Local authorities continually embark on destroying stalls and confiscating supplies (Jinker, 1997).
Similarly, the urban planning process does not define the values and needs involved in the informal sector far from regulating the restaurant, the existing laws create stress, stiffly productivity, and prevent any innovative approaches to restaurant business strategy (Achochi, 2002).
Also, the problem of the restaurant operators to access financial services and credit is often extremely difficult by institutionalized protocols by financial institutions. Location or site is another factor that constraints the efficient and effective restaurant operation. The operations may site the stall which may still be determined by the law enforcement agencies.
Supply menu should also be considered. The supply should consider the socio-economic variables of the consumers; as the general tendency is co-enhance customer satisfaction. Minimize expenses, and travel distance to and from the supply markets and, or the operations stall to reduce operational; costs.
Lack of good storage facilities worsened by poor power supply has engendered the preservation of the operators menu. Thus, the problem of perishability becomes paramount.
Generally, the problem of finance, as said earlier has constrained the operators activities. Money plays a very important role in the starting and operating restaurant business, hence, this study is poised to examine impact of this problems in the marketing efficiency of restaurant operators is Abia State, Nigeria.
1.3 Research Questions
The study will be guided by the following questions:
i. What is the socio-economic profile of the operators?
ii. What are the effects of restaurant operations on household welfare?
iii. What are the factors affecting performance of restaurant operation?
iv. What factors influence their efficiency of operations?
v. What are the problems militating against efficiency of restaurant operation in Abia State, Nigeria?
1.4 Objective of the study
The major objective of the study is to examine the determinants
of marketing efficiency among restaurant operators in Abia State,
Nigeria.
However, the study seeks to achieve the following specific objectives. They are to;
i. analyze the socio-economic profile of restaurant operators in the study area;
ii. estimate the effect of profit on the welfare of restaurant operators and their households;
iii. identify factors affecting performance (profit) of restaurant operators;
iv. estimate the factors that influence marketing efficiency among the operators;
v. identify Problems militating against efficiency of restaurant operation in the study area; and
vi. make recommendations based on the findings
1.5 Research Hypothesis
The null-hypothesis (Hos) was stated to guide the study.
HO1: The socio-economic characteristics have no significant effect on efficiency.
What are the problems against efficiency of restaurant operation in Abia State, Nigeria?
1.6 Significance of the Study
Restaurant operation as a business has become one of the economic injectors in terms of income and employment. And this business has also gone a long way to improve household welfare and poverty alleviation.
The outcome of this study will draw attention to restaurant operation as a veritable source of livelihood and highlight the impact of marketing efficiency to operator’s performance. It will also provide use of restaurant operation as a poverty reduction option.
Consequent to the above scenario, this study will be significant to the following groups highlighted here in;
This study will be a blue print on the efficient and effective operation of business, especially in the present day economic.
The material will serve as a source of data for further studies related to this area especially as it concerns the economic and marketing of restaurant business framework.
This study will serve as a guide on the regulatory and or promotional policy objectives of the government and its agency, especially on the area of poverty alleviation programmes, in order to better the welfare of the household.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment