ABTSRACT
This research work was initiated to evaluate consumers preference for consumption of selected NB Plc beer brands among consumers in Aba metropolis, Abia State.
The study was primarily aimed at examining the consumers behavior in respect of their preference for consumption of selected beer brands. The method used, in terms of methodology, the research generated primarily data. The data were generated using questionnaire as the research instrument. The questionnaire was administered to various consumers in Aba, which used a structured question to gather a minimum of respondent. The sample size, about three hundred and sixty (360) people respondents were interview. In terms of analysis Chi-square (x2) statistical tools were employed to test the hypotheses formulated for the study. The results of findings were made after a detailed analysis of the data generated.
Firstly, it was discovered that, the factors that influence consumers’ preference for beer brands do not have equal strength. Taste and alcoholic content were identical as the primary or core factors that influence consumer’s preference for beer while price were categorized as secondary brand choice influencing factor.
Secondly, STAR produced by Nigeria Brewers Plc was found to be the most preferred beer brand, followed by Guilder and Heineken of Nigeria Brewer Plc.
Another finding was discovered that majority of beer consumers are mostly businessmen and students that are youths between the age limit of 21 and 30 and they are low income earners.
Finally, but not the least beer parlor was discovered to be the most preferred place of buying and drinking beer in Nigeria.
The following recommendations were made on the study: First, it was recommended that; Beer brewers should strive to produce beer brand that have good taste and acceptable alcoholic content, since they are the major determinants of consumers’ preference for beer brands. Another recommendation were that beer parlor which was claimed by consumers of beer as the most preferable place of buying and drinking beer should also be targeted in their middlemen, sales promotion with promo tool like point of purchase (POP). And finally, it was also recommended that beer industry should increase their marketing research activities to identify changing needs of the markets and to satisfy the needs.
TABLE OF CONTENTS
Title page
----------------------------------------------------------------------------------i
Project Assessment
-----------------------------------------------------------------------ii
Declaration
--------------------------------------------------------------------------------iii
Certification
-------------------------------------------------------------------------------iv
Dedication
----------------------------------------------------------------------------------v
Acknowledgments
------------------------------------------------------------------------vi
Table of contents
-------------------------------------------------------------------------viii
List of tables
-------------------------------------------------------------------------------xii
Abstract-------------------------------------------------------------------------------------xiv
CHAPTER
ONE: INTRODUCTION
1.1 Background
of the study --------------------------------------------------------------1
1.2 Statement
of the problem -------------------------------------------------------------3
1.3 Objectives
of the study ----------------------------------------------------------------4
1.4 Research
Questions--------------------------------------------------------------------5
1.5 Research
Hypotheses------------------------------------------------------------------6
1.6 Significance
of the study -------------------------------------------------------------7
1.7 Scope
of the study ---------------------------------------------------------------------8
1.8 Limitations
of the study --------------------------------------------------------------8
1.9 Definition
of terms -------------------------------------------------------------------9
CHAPTER
TWO: REVIEW OF RLATED LITERATURE
2.1 Conceptual framework of consumer
s’ preference ----------------------------11
2.1.1 Evaluation of alternative’s for
preference ------------------------------------12
2.1.2 Size of evoked set.
---------------------------------------------------------------13
2.13 Reasons why some brands are not
included
in
evoked set for evaluation------------------------------------------------------14
2.1.4 Evaluative criteria for
brands---------------------------------------------------15
2.1.5 Purchase
Conflict-----------------------------------------------------------------17
2.1.6 Consumer purchase decision rules
--------------------------------------------20
2.1.7 Post purchase dissonance and negative words of
mouth -------------------23
2.1.8 Brand loyalty
----------------------------------------------------------------------25
2.2.0 Theoretical
framework of consumer’s preference ----------------------------26
2.2.1 Motivational
Theory --------------------------------------------------------------26
2.2.2 Feud Theory of motivation
-------------------------------------------------------27
2.2.3 Maslow’s Theory of
motivation--------------------------------------------------28
2.2.4 Factors influencing consumers Behavior---------------------------------------28
2.2.4.1 Cultural factors
-------------------------------------------------------------------29
2.2.4.2 Social factors
----------------------------------------------------------------------30
2.2.4.3 Personal factors
-------------------------------------------------------------------32
2.2.4.4 Psychological
factors-------------------------------------------------------------34
2.3 Empirical Review
---------------------------------------------------------------------37
2.4 Summary of the
internal literature--------------------------------------------------38
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Research Design-----------------------------------------------------------------------41
3.2 Area of the Study
---------------------------------------------------------------------41
3.3 Source of Data Collection
-----------------------------------------------------------42
3.3.1 Primary source
----------------------------------------------------------------------42
3.3.2 Secondary source
-------------------------------------------------------------------45
3.3 Population of the study
---------------------------------------------------------------43
3.4 Sample size determination
-----------------------------------------------------------43
3.5 Sampling Technique
------------------------------------------------------------------44
3.5.1 Operational measures of
variable -------------------------------------------------45
3.6 Method of Data Collection ----------------------------------------------------------46
3.6.1 Design and Administration of
the questionnaire --------------------------------47
3.7
Data Analysis Technique-------------------------------------------------------------48
CHAPTER
FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF
DATA
4.1 Introduction-----------------------------------------------------------------------------49
4.2 Analysis of consumer
questionnaire ------------------------------------------------51
4.3 Test of
hypotheses---------------------------------------------------------------------62
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Preamble
----------------------------------------------------------------------------73
5.2 Summary
of findings --------------------------------------------------------------73
5.3 Conclusion
--------------------------------------------------------------------------75
5.4 Recommendation
------------------------------------------------------------------76
5.5 Suggestion
for further studies ---------------------------------------------------77
References
-------------------------------------------------------------------------78
LIST OF TABLES
Table 4.1 Data Presentation --------------------------------------------------------------29
Tables 4.2 Data Analysis
-----------------------------------------------------------------30
Table 4.3 Test of Hypotheses-------------------------------------------------------------31
CHAPTER
ONE
INTRODUCTION
1.1 Background of the
Study
Nigerian
Brewing Plc incorporated in the year 1946, is about sixty-nine years ago
precisely is the pioneer and largest brewing company in Nigeria. At the
commencement of business, the single firm industry experienced little problems
trying to convince beer consumers to accept its product. The problem arose as a
result of a competition of similar importation of beer products (Heineken and
Becks) which resulted undisputed preference (Nigerian enterprise 1986:22).
The
next two decades were crucial for the survival of the industry but by 1960
Nigeria gained political independence with independence came to a new social
awareness that gave birth to a new class system (a system that is no longer
subjected to the colonial master’s influences). Consumers demand for beer brands
gained the much needed acceptability.
Following
the legacy, Guinness Brewery, West Africa Breweries and Golden Guinea Breweries
limited joined the business, still the demand for beer continued to grow. The
successful period between 1962 and 1970 again witnessed great difficulties of
growth despite prompted by civil war. At the end of the war, economic
activities were requested with huge sum of money from petroleum sales floating
around, demand escalated, the industry expanded dramatically as a result of
increment in capital investment, which generated handsome profit margin. The
effect was tremendous as establishment of new breweries.
Today,
there are many brewing firms with different beer brands, which precipitate
stiff competition. Hence, consumers are left with great freedom of choice. This
freedom of choice has made firms to position their products to exhibit
difference from others. Indeed, the preference decision is made on the benefits
associated with a particular brand of products. When a consumer is presented with
different brands of beer to choose from, there is a gamut of marketing and
environmental stimuli, which come into play to determine his brand choice. The
central interest of the marketer is to know how consumers respond to various
marketing controlled stimuli. Marketers who understand how consumers respond to
these stimuli have an enormous advantage over his competitors. The only way to
be one of the fittest who survived in this competitive environment is to have
an insight into the consumers buying behavior as elicited by their preference
for particular brand so as to give marketers in the beer industries who deal on
beer brands guide in tailoring their marketing programmers and efforts in line
with the expectation of their target market.
The
major emphasis in this study were focused on the identification of the major
variables like Product attributes, Price, Taste, Alcoholic content and
Packaging etc, which exert greatest influence on consumers brand preference for
consumption of beer.
1.2 Statement of the
Problem
There
has been a rapid expansion in the beer industrial. A reliable source has shown
that a significant proportion of Nigerian population who hither to consumers of
other drinks has turned to alcoholic drinks. This gave rise to the need for the
firm who produce alcoholic drinks to check on customer satisfaction for their
products. The only way is to study
consumers and their behavior.
It
is paradoxical to observe that firms in the beer industry are proliferating,
the beer market is stinking. Hence, brewers are forced with the problem of
identifying the variables that influence the customers to increase their beer
consumption rate as well as attracting new customers to the market. They have
in several occasions paid attention to only those factors which are salient as
the determinant of consumers preference for their brands, while that there are
many other factors which play significant role are completely ignored and
consequently the penalty is for the marketing programmed to fail.
There
is therefore the need for a study which will help the management and marketers
in the brewery industry to identify the various factors which exert influence
on consumers’ preference for a particular brand.
1.3
Objectives
of the Study
This
study is primarily aimed at examining the customer’s behavior in respect of
their preferences for consumption of selected beer brands in Aba Metropolis.
Specifically
the objectives of this study are:
i.
Determine the extent; Price
exerts influences on consumer preference in respect to their consumption rate
of other beer brands.
ii.
Ascertain the extent;
Taste of a particular brand of beer influences consumers on the consumption of other
brands.
iii.
Determine if the level
of the Alcoholic content of a particular brand of beer influences consumers for
consumption of other brands of beer.
1.4
Research
Questions
The following
research questions were arrived at;
i.
To what extend does
Price of any brand of beer exert influence on consumers’ preference in respect
to their consumption rate of other beer brands?
ii.
To what extend does
Taste of a particular brand of beer influences consumers on the consumption of other
brands of beer?
iii.
To what extend has the level
of the Alcoholic content ofa particular brand of beer exert influence to
consumers for consumption of other brands of beer?
1.5
Research
Hypotheses
Based
on the research questions and objectives, the following hypotheses were
formulated in pursuance of this research work:
Hypothesis (i)
H0:
Price of any brand of beer does not have any relationship with consumers’
preference in respect to their consumption rate of other beer brands in Aba.
Hypothesis (ii)
H0:
There no relativity with Taste (bitter, sweet etc) of any brand of beer and consumers’
preference for consumption of beer brands in Aba.
Hypothesis (iii)
H0:
The level of the Alcohol content of any brand of beer does not have any
relationship with consumers’ preference for consumption of beer brands in Aba.
1.6
Significance
of the Study
The
work is significant in several aspects. Apart from being a necessary condition
for the award of Bachelor of Science degree in Marketing, of Michael Okpara
(Federal) University of Agriculture Umudike to the researcher, it is also an
opportunity for the researcher to conduct an independent research based on
empirical data.
The
significance of this study can also not be over emphasized as competition
within the industry has left the beer market leaders, challengers, followers
and niches with unique market share.
The
findings of result of this research will help firms that have subsistent market
share by discovering their area of weakness and how their products can be
improved to meet the test of time. The research will also aid the market leader
to know what makes them tick hence they can consolidate their efforts so far.
Also, consumers will benefit from this research by getting what they need as
products are improved upon.
1.7
Scope
of the Study
Beer
consumers can be virtually seen in allparts of Nigeria, especially in
non-Islamic states of the country. Amongst these states the beer consumers can
not be absolutely identified. Hence, it was difficult for the researcher to
undergo into a detailed study of these entire beer consumers in all the thirty
- six (36) states of Nigeria and owing to this; this study is directed only on
beer consumer Aba, Abia State on the assumption that what is obtainable from it
is a representative of entire beer consumers.
1.8
Limitations
of the Study
The
major limitation of this study is that the conclusion about consumer preference
cannot be absolutely taken in it’s entirely because of the subjectivity of
human behavior inferences. Engel, Backwell and Kollat (1968) corroborated with
this view when they said thus; the complexity of the psychological field is not
the only difficult face by analyst of human action because mental process
cannot be observed directly. The result of the explanation of what transpires
can be only in inference us to what must have taken place to cause the
individual to act as he or she did. Since why an individual acts or displays
the way he or she does cannot be categorically explained. Thus, our conclusion
about human behavior is related, and this affects the objectivity of this
research.
Secondly
in writing this research work, it has been a tasking assignment considering the
paucity of information and difficulties in accessing the relevant data. Also,
the extents which this work is limited, is by financial constraint due to
limited resources at the disposal of the researcher. It is further limited by
time factor as the researcher is a student still doing other course work.
However, the project is well undertaken and the result is valued for any
consideration.
1.9
Definition
of Terms
Consumers:
This term is used in this contest as those who purchase products offered for
sales.
Brands:
Brand refers to particular kinds of beer with different trademarks attached to
it.
Preference:
It refers to the favoring of one brand of bear to the others.
Beer:
It is an alcoholic drink made from malt or other roots and flavored with hops
for bitter taste.
Price:
This means the quantity of payment or compensation given by one party to
another in return for goods and services.
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