ABSTRACT
The study examined the effect of price differential towards made in Nigeria textile products in relation to foreign made textile products on consumer preference in Abia state, Nigeria. The specific objectives where to examine the purchase behaviour of made in Nigeria textile products; ascertain consumer’s rating of the price of made-in-Nigeria textile products in to that of foreign textiles; analyse the effect of price difference on consumer preference of made in Nigeria Product in comparison with foreign products; ascertain the existence of price differential in made in Nigeria textile products; determine the existence of price differential of Nigeria made textiles in comparison to foreign made textiles; analyse the factors influencing purchase of made in Nigeria textiles products. Secondary and Primary data were used for the study. Data were obtained from 120 respondents in the study area using a well-structured questionnaire. Data were analyzed using both simple descriptive statistics and logit regression model. The result shows that income, taste, product quality, and level of education were the significant variable that influences purchase of made in Nigeria textiles in the study area. It was recommended that adequate provisions should be put in place by the government to encourage the manufacturers of made in Nigeria textile products. Enabling environment should be created for them to access adequate credit facilities and marketing inputs which will enhance their level of providing adequate and quality products to their customers.
TABLE
OF CONTENTS
Title page
i
Declaration page
ii
Certification page
iii
Dedication iv
Acknowledgement v
Table of contents vi - vii
List of tables’
viii
Abstract
ix
CHAPTER
ONE
1.0 INTRODUCTION
1
1.1
Background to the study
1
1.2 Statement of the
problem 3
1.3. Research questions
3
1.4.
Objectives of the study
3
1.5
Research hypotheses 4
1.6
Significance of the study
5
1.7
Scope of the study
5
CHAPTER
TWO
2.0 REVIEW OF RELATED LITERATURE
6
2.1
Conceptual framework
6
2.1.1 Consumer choice
preference 9
2.1.2 Factors Influencing
Consumer preference
14
2.1.3 Consumer Decision
Making Process 16
2.1.4 Determinants of
Consumer Brand Choice 22
2.1.5 The Development and
State of made in Nigeria Textile Industry 24
2.1.6 The Attitude of
Consumers towards made in Nigeria Textile Materials 27
2.1.7 The nature and
scope of price differential
27
2.2 Theoretical Framework
29
2.3
Empirical Review 32
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
34
3.1
Research design
34
3.2
Study area
34
3.3
Population of study
34
3.4
Sampling technique
35
3.4.1. Sample size
35
3.4.2. Method of data
collection
35
3.5: Method of Data
Analysis
35
3.5.1 Model specification
36
CHAPTER
FOUR
4.0
RESULTS AND DISCUSSION
36
4.1 Data presentation and analysis
37
4.2 Socio-economic characteristics of the
respondents
38
4.3
Purchase behaviour of made in Nigeria textile products
42
4.4 Consumers rating of
the price of made-in-Nigeria textile in against that of foreign 44
4.5 Price
difference on consumer preference of made in Nigeria Product in comparison with foreign product 45
4.6
Existence of price differential
in made in Nigeria textile products 46
4.7 Existence of price differential of Nigeria made
textiles in comparison to foreign made textiles
48
4.8 Factors influencing purchase of made
in Nigeria textiles product 49
CHAPTER FIVE
5.0 SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1
Summary 51
5.2
Conclusion
55
5.3
Recommendations 56
List of Table
Table 4.1 Distribution of questionnaires
37
Table 4. 2 Frequency distribution of Nigeria
consumers’ according to age 38
Table 4.3 Frequency distribution of respondents according
to gender 39
Table
4.4: Distribution of respondents based on marital status 39
Table 4.5: Distribution
of respondents by level of education 40
Table 4.6: Distribution
of respondents by sizes of household 40
Table 4.7 Frequency distribution of enterprises by
yearly income 41
Table 4.8 Frequency Distribution of Respondents by
Occupation
41
Table 4.9 Trend of consumer patronage of
made-in-Nigeria Textile 42
Table 4.10 Type of made-in-Nigeria Textile Purchased
43
Table
4.11 Consumer rating of the price of made-in-Nigeria textile 44
Table 4.12
Consumer’s rating of the price of made-in-Nigeria textile in relation to that of foreign textiles
45
Table 4.13 Effect
of Price difference on consumer preference of made in Nigeria Product in comparison with foreign
product
45
Table
4.14 Existence of price differential
in made in Nigeria textile products 47
Table 4.15 price
differential of Nigeria made textiles in comparison to foreign made textiles 48
Table 4.16: Logit regression result of
factors influencing purchase of made in Nigeria textiles product Abia
state 49
CHAPTER
ONE
INTRODUCTION
1.1 Background to the study
Nigerian
consumer has access to several products from around the world and the
information on the country of origin may be used to evaluate these products
(Adekunle, et al., 2014). There is a
popular belief that the qualities of local products are lower than those of
their imported counterparts. In spite of the widespread belief that locally
manufactured textile products are inferior in quality to the foreign ones;
complaints of the high prices of locally-made items are also rampant (Achumba,
2013).
Consumers
want to take advantage of the affluent and latest services that technology and
business can offer. They make a rational choice by comparing and contrasting
textile product features and performance.
Consumers preference are influenced by such
factors as brand familiarity, the level of involvement in the purchase
decision, the level of involvement evoked by the product class, the familiarity
with countries and preference for domestic products and the price of the
textile product (Adekunle et al.,
2014; Batra and Brynjol, 2012). Consumers are personalities whose behaviour is
governed by different and varied influences such as: their society beliefs,
attitude, past learning, experience, perception and expectations.
These
form their taste choice and product preference. Not only that, economic factors
which tend to favour consumer preference for foreign products centre around
product quality, price, and availability (Leon and Kanuk, 2013).
The
abundance of foreign textile product of many kinds of in Nigerian markets makes
it easy for consumers to satisfy their yearnings for these imported items. A
number of psychological forces also operate in the consumer to influence his
perception towards local and foreign products (Leon and Kanuk, 2007).
Firstly,
there are individuals who, in the search for distinctiveness, exclusiveness and
egotism, seek out those products which can confer these qualities. For many
Nigerians, foreign textile products probably have images that bestow these
qualities on the buyer or owner. Secondly, for many people, oversea countries
are places they would cherish to visit either for sightseeing or for
image-boosting purposes; as a result they buy their products as a way of
identifying themselves with those countries (Ogunnaike, 2010).
In
general, made-in- Nigeria goods are perceived as inferior, even when the
foreign products were not really better in value or physically different from
the domestic alternatives, except for the labels describing them as imported or
made-in- Nigeria. No wonder some goods made-in-Nigeria are sometimes labelled
made-in- England, Paris, London as to facilitate acceptance (Ogunnaike, 2010).
Furthermore, Price Differential is
charging a different price on the same good or service to different people.
Basically the seller foreign and local textile product in the country tries to
charge the highest price they believe the individual consumer is willing to pay
for foreign textile product. Price differential
requires segmentation of the market and that whatever it is price differential which applies to many
luxuries that appear to be unique or special from the buyers’ standpoint.
Another pricing strategy that deals with a customer’s perspective of a product
is Psychological/ Oddpricing. Psychological pricing can be the same as
quantity discount; the buyer may likely purchase a product due to reduction in
price. The consumer decides through an emotional response, instead of a
rational basis. The communication network systems in Nigeria adopt this for
their internet product services (Ogunnaike, 2010 and Dele, 2013).
Price differential is identified as the
practice of firms to charge different prices for the same product to different
consumers given that the price differentials cannot be explained in terms of
differences in costs of providing the good or the service.
1.2 Statement of the problem
Over the years, the Nigerian
consumer have developed a taste for foreign textiles, going to the market
places one cannot fail to notice how consumers regard foreign products as
having a better quality than locally manufactured ones. With the trade
liberalization policy, the country has experienced unrestrained imports of all
kinds of textile materials. This has led to a very strong competition by both
foreign and local textile products, each seeking to gain a higher patronage
from the Nigerian consumer (Bola et al., 2011)
Sadly
in the past decade, we watched with concern as one local textile factory after
the other closed shop. The latest local factory that closed last year was the
United Nigeria Textile UNTL which used to produce fine wax that was a good
match for any imported brand. The closure of textile factories was not limited
to but was repeated in Funtua, the
headquarters of cotton production belt, Kano the commercial centre of Northern
states and Lagos the nation’s business capital and closure of the textile
company was attributed to lack of patronage from local customers (Adekunle and jester, 2014).
Furthermore,
Nigeria consumers see locally manufactured goods as inferior in quality when
compared with their foreign counter parts (Dele, 2013)
No
amount of patriotic slogans about made in Nigeria goods has been able to
correct this trait in Nigerian consumers. It has persisted to the extent that
many retailers in Nigeria use the foreign tags or labels as a selling tool
especially in justifying high product prices (Dele, 2013)
Nigerians,
tend to ignore locally made materials in preference for imported materials this
as lead to price differential. This negative attitude towards home made
products contribute to the economic development of advanced countries and
relegate cultural heritage of the country in various fields of arts to the
background.
1.3. Research questions
1.
What are the purchase behaviour of consumer of made in Nigeria textile products?
2.
What are the consumer rating of the price of made-in-Nigeria textile in
relation to that of foreign product?
3.
What are the effect of price difference on consumer preference of made in
Nigeria product in comparison with foreign products?
4.
What are the existence of price differential in made in Nigeria textile
product?
5.
What are the existence of price differential of Nigeria made textile in
comparison to foreign made textiles?
6.
What are the other factors influencing purchase of made in Nigeria textiles
product?
1.4. Objectives of the study
The
broad objective of the study is to examine the effect of price differential towards made in Nigeria
textile products in relation to foreign made textile product on consumer
preference in Abia state, Nigeria.
The
specific objectives are to;
i.
examine the purchase behaviour of made in
Nigeria textile product
ii.
ascertain consumer’s rating of the price of
made-in-Nigeria textile in relation to that of foreign textiles
iii.
analyse effect of Price difference on
consumer preference of made in Nigeria Product in comparison with foreign
product
iv.
ascertain existence of price differential in made in Nigeria textile products
v.
determine the existence of price differential
of Nigeria made textiles in comparison to foreign made textiles
vi.
analyse the factors influencing purchase
of made in Nigeria textiles product
1.5 Research hypotheses
The
following hypotheses were stated in null form;
H01:
purchase behaviour does not significantly and negatively influence made in
Nigeria textile product
H02: Consumer
rating does not significantly and negatively influence price of made in Nigeria
textile in relation to that of foreign textile
H03:
Price difference does not significantly and negatively influence consumer
preference of made in Nigeria product in comparison with foreign product
H04:
Existence of price differential does not significantly and negatively influence
made in Nigeria textile product
H05:
Existence of price differential does not significantly and negatively influence
made in Nigeria textile product in comparison to foreign made textiles
H06: Income of consumers, taste, product quality,
Level of education, Gender, Age does not significantly and negatively influence
consumer preference of made in Nigeria product
1.6 Significance of the study
The
choice of this topic was based on self-interest and the need to take a look at
effect of price differential
towards made in Nigeria textile products in relation to foreign made textile on consumer preference in Abia state.
The findings of this study in Abia
State, Nigeria. Nigeria will contribute
immensely in aiding the government, policy makers, and economic planners in
policy formulation.
The findings of this study will also be of immense
help in providing an insight and knowledge to the general public and made
in Nigeria goods consumers in Abia State and Nigeria at large.
To the academia, the findings of the study will
contribute to the available literature on the current research work on effect
of price differential towards
made in Nigeria textile in relation to foreign made textile on consumer
preference in Abia state.
1.7 Scope of the study
The
research work will focus on the effect of price differential towards made in Nigeria textile products in relation
to foreign made textile on consumer preference in Abia state.
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