ABSTRACT
The examination of the effect of innovation development on consumer patronage of flour-based products in Abia State., Nigeria was the main focus of this study. Simple and purposive random sampling techniques were adopted for this study in the collection of data from 80 flour-based products’ consumers. Simple descriptive statistics like tables and frequencies and inferential statistics like correlation and multiple regression models were to analyze the data. The results showed that majority of the consumers were still young comprising about 82% of the entire population sample. The majority (58%) of respondents who consumed these products were males. A larger proportion of the respondents (54%) were married and the remaining 46% unmarried or single. Findings show that the consumers were moderate income earners and as such could cater for the needs of the household members. Civil servants were the highest consumers of flour-based products accounting for about 43% of the entire respondents. Packaging, market segmentation, branding, use of modern bakery equipment and use of quality flour were the identified innovation practices adopted by the flour-based product manufacturers. These practices were adopted by the manufacturers at different levels ranging from 40%, 13%, 14%, 11% and 23% respectively. The distribution of the flour-based product by level of preference shows that that bread was the most consumed and preferred of all the products accounting for about 23%. The model gave R2 of 0.912, 0.654, 0.461, 0.702 and 0.550 respectively implying that 91.2%, 65.4%, 46.1%, 70.2% and 55% changes in the amount of the products (bread, biscuits, cake, chin-chin and noodles) consumed was accounted for by the independent variables included in the model. The F-ratio was significant for all the regressions at 1% significant level. The result showed that price negatively affected the consumption of all the products at 1% level of significance. Income was positively correlated to the consumption and patronage of bread and cake at 1% and 5% significant levels respectively. The coefficient for taste was positively signed for bread, biscuits and cake at 1%, 1% and 10% significant levels. Packaging influenced the patronage of bread, cake and noodles at 1%, 5% and 5% significant levels respectively. Product availability was positively related to patronage of cake and chin-chin at 5% significant levels respectively. Product quality was also positively correlated to the patronage and consumption of bread, biscuits, cake and noodles at 1% level of significance respectively. The correlation analysis result reveals that positive correlation (r = 0.338, 0.120 and 0.315) existed for packaging, branding and product quality. Based on the findings of this research, it was recommended that flour-based firms should be willing to adopt more innovative practices, packaging as a promotional tool must be efficiently developed to make up for deficiencies in the profit and competitive status of the firms. Brand development must be given adequate consideration as it helps to establish a product’s influence in the market.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of content vi-viii
List of Tables ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background of study 1
1.2 Statement of problem 4
1.3 Objectives of study 5
1.4 Research questions 5
1.5 Research hypotheses 5
1.6 Significance of study 6
1.7 Scope of study 6
1.8 Definition of terms 7
1.9 Limitation of the study 7
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Concept of Innovation Development 8
2.2 Inter-disciplinary Views of Innovation 9
2.3 Sources of Innovation 11
2.4 Diffusion of Innovation 11
2.5 Classification of Innovation 12
2.6 Types of Innovation 13
2.7 Processing of Cassava into Unfermented Flour 14
2.8 Cassava flour Utilization in Abia State 15
2.9 Cassava Biscuits 16
2.10 Cassava, Bread, cake, Noodles and Chin-chin 16
2.11 Factors Affecting the Level of Consumption of Flour-Based Products
in Abia State. 17
2.12 Innovation Practices Adopted by Flour-Product Based enterprises 18
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 22
3.2 Area of Study 22
3.3 Population of the Study 22
3.4 Sample and Sampling Techniques 23
3.5 Method of Data Collection 23
3.6 Method of Data Analysis 23
3.6.1 Model Specification 24
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Socio-economic Characteristics of the Respondents 26
4.2 Innovation Practices Adopted by the Flour-based products
Manufacturers 31
4.3 Consumption Preferences of the Flour-based Products 32
4.4 Factors Affecting the Consumption of Selected Flour-based products 33
4.5 Effect of Innovation Practices on Consumers’ patronage of flour-based
Products 36
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 38
5.2 Conclusion 40
5.3 Recommendations 40
References
CHAPTER ONE
INTRODUCTION
1.1 Background of study
Incorporating innovation in business can help to save time and money and gives the firm a competitive advantage to grow and adapt its business. Von Hippel (2005) opined that innovation generally refers to changing or creating more effective processes, products and ideas, and can increase the likelihood of a firm’s success. Innovation is a new idea, more effective device or process. It can be viewed as the application of better solutions that meet new requirements, inarticulated needs, or existing market needs (Frankelius,. 2009).
Businesses that innovate create more efficient work processes and have better productivity and performance. For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services. FrankeLius (2009) points out that innovation is accomplished through more effective products, processes, services, technologies or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and more effective and as a consequence, new, that “breaks into” the market or society.The purpose of business is to create customers and marketing and innovation are two basic functions of any business enterprise. According to Maranville (2005), a novel device is often described as an innovation in economics, management science and other fields of practice and analysis innovation is generally considered to be a process that brings together various novel ideas in a way that they have an impact on society. In business and economies, innovation is the catalyst to growth (Heyne, et al., 2010), hence, the guideline for management is “innovate or die”.
Over the years, flour has been used in the production of several products in Abia State, Nigeria. Such flour-based products commonly consumed in the state include bread, biscuit, chin-chin, cake and noodle. Flour is a powder which is made by grinding cereal grains or other seeds or roots (like cassava). It is the main ingredient of bread, biscuit, chin chin, noodle and cake (Palmatier, et al 2009). There exists different kinds of flour such as wheat flour, cassava flour, coconut flour, corn (maize) flour, noodle flour (different kinds of flour-Retrieved 2011-04-15). Milling of flour is accomplished by grinding grain between stones or steel wheels (Eben Norton Hosrford , 2006).
Today, “stone ground” usually means that the grain has been ground in a mill in which a revolving stone wheel turns over a stationary stone wheel, vertically or horizontally with the grain in between. Many small appliance mills are available, both hand cranked and electric. The process of converting wheat into flour has three fundamental steps: wheat cleaning, wheat conditioning, and of course, the milling process. All three steps impact the profitability and efficiency of the mill (Falade, & Akingbala, 2009).
Bread is a staple food prepared from dough of flour and water, usually by baking. Throughout the recorded history, it has been popular around the world and is one of the oldest artificial foods, having been of importance since the dawn of agriculture (Harper, Douglas “bread”. Online.Etymology Dictionary). There are many combinations and proportions of types of flour and other ingredients and also of traditional recipes and modes of preparation of bread (Jeffrey Hamelman, 2005). As a result, there are wide varieties of types, shapes, sizes and textures of bread in Abia State, Nigeria. Bread may be leavened by many different processes ranging from the use of naturally occurring microbes by high-pressure artificial aeration methods during preparation or baking. In Abia state, flour based products consumption rate is increasing due to the various innovation practices that the products are experiencing, such as attractive packaging, market segmentation, branding, use of modern bakery equipment and use of quality flour.
On the other hand, biscuit is a term used for a variety of baked commonly flour-based food products. It is a small baked product that would be called either a “cookie” or a “cracker” (Baking powder biscuits source: Us department of defence 2013). Sweet biscuits are commonly eaten as a snack food, and are in general made with wheat flour or oats, and sweetened with sugar or honey. Varieties may contain chocolate, fruit, jam, nuts, ginger or even be used to sandwich other fillings (The telegraph.2009). The most frequently consumed brands in Abia include: digestive, Yale cabin and crackers. Each brand is well packaged and sold to people who are mostly travelers of any age bracket.
Another important flour-based product in Abia State is chin-chin. Chin-chin is a fried snack popular in Abia State, Nigeria. It is sweet crunchy, donut-like baked or fried dough of wheat flour, and other customary baking items. Chin-chin may also contain cowpea (Akubor, et al., 2008). Many people also bake it with ground nutmeg for flavor. Many chin-chin firms in the state have innovated with differentflavours including (Innamon, lemon, vanilla and chilli and is sold in selected stores. It is usually kneaded and cut into small squares of one square inch or so, about a quarter of an inch tick, before frying (Mepba . et al., 2007). However, cake is a form of sweet dessert that is typically baked. In its oldest forms, cakes were modifications of breads but now cover a wide range of preparations that can be simple or elaborated and share features with other desserts such as pastries, custards and pies (Ayto,& John, 2010). Typical cake ingredients are flour, sugar, eggs, butter or oil, milk or water and leavening agents such as yeast or baking powder. Cake is often served as a celebratory dish on ceremonial occasions such as weddings, anniversaries and birthdays. Noodles are staple food made from unleavned dough which is stretched, extruded, or rolled flat and cut into one of a variety of shapes. Noodles are usually cooked in boiling water, sometimes with cooking oil or salt added. They are often pan-fried or deep fried (Roach John 2012). Noodles are commonly consumed and therefore are sold in almost all the stores in Abia state. The factors affecting the level of consumption of flour-based products include price, income, taste, packaging and product availability among others (Barr, 2004).
1.2 Statement of problem
Importation of wheat flour for the production of flour-related products is a problem. Flour-based products have become important item in the diet of many people living in Abia State. The major raw material used in baking these products is wheat flour whichhas become increasingly expensive because it is imported. The use of locally made cassava flour in place of wheat flour for production by the flour-basedindustries results in low quality of end products when compared with wheat flour products.
Basic problems include:
Creation of financial problems for Nigeria which is naturally unsuitable for growing wheat and therefore have to import wheat to sustain their new wheat-based diets.
The use of low quality cassava flour in the production of flour based products.
High transportation cost involved in importing wheat.
1.3 Objectives of study
The broad objective of this study will be to examine the effect of innovation development on consumer patronage of flour-based products in Abia State, Nigeria.
However, the specific objectives of the research include to:
1. describe the socio-economic characteristics of the respondents.
2. examine the various innovation practices adopted by the flour-products based enterprises.
3. rank the product consumption by preferences
4. analyse the factors affecting the level of consumption of the selected products.
5. examine the effect of innovation on consumer patronage of the flour-based products.
1.4 Research questions
For the purpose of achieving the objectives of this study the following questions will be attended to:
1. What are the socio-economic characteristics of the respondents?
2. What are the innovation practices adopted by the flour-product based enterprises?
3. How can the product consumption be ranked according to preferences?
4. What are the factors affecting the level of consumption of the selected products?
5. What is the effect of innovation in consumer patronage of the flour-based products?
1.5 Research hypotheses
The following hypotheses are formulated to be tested:
H01: There are no significant innovation practices adopted by the flour-product based enterprises.
H02: Product consumption cannot be ranked according to preferences.
H03: There are no factors affecting the level of consumption of the selected products.
H04: There is no significant effect of innovation on consumer patronage of the flour-based products.
1.6 Significance of study
A clear understanding of the effect of innovation, as well as the various innovation practices adopted by the flour product based enterprises can help the managers and management of these enterprises in effective customer satisfaction by delivering quality product to their customers. This can as well ensure customer loyalty.
However, the result of the study will be of high significance to the flour-products consumers, traders, manufacturers and other group of people who might be interested in the subject matter.
Finally, this research work is also beneficial to other researchers as well as students because it will serve as a reference material or secondary source of data in their course of study.
1.7 Scope of study
This research is meant to examine the effect of innovation development on consumer patronage of flour-based products in Abia State, Nigeria. Studying the whole flour-based products will be two cumbersome; therefore the study is concentrated on five flour based products such as bread, biscuit, cake, chin-chin and noodle. This is because the above mentioned flour based products are the major flour products commonly consumed in the state.
1.8 Definition of terms
Innovation: This means a new idea, modification of an existing idea or process.
Patronage: This could be referred to as the act of spending money on a particular product in order to acquire it.
Product: This is anything that is capable of satisfying a need or want.
Diffusion: This is the process by which an innovation is communicated through certain channels over time among the participants in a social system.
Enterprises: These are economic organizations responsible for production, distribution or another function
1.9 Limitation of the study
The researcher encountered some difficulties in the execution of the work. Such difficulties affected the objectivity of this work. One of such limitations was financed. It was not easy for the researcher to finance this work as he was still faced with other academic challenges that required money.
There was also limitation caused by time constraint. The time exhausted in carrying out this research was inadequate, and the researcher was also faced with the challenge of attending lectures at the same limited time. However, there was very limited number of relevant needed materials in respect of this study. This to a great extent affected the objectivity of this work
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment