ABSTRACT
This study examined the influence of export positioning strategies on marketing performance of agro-allied firms in South-South, Nigeria. The study also examined the moderating influence of economic infrastructure, safety factors and policy environment on the relationship between export positioning strategies and marketing performance. Causal research design was used to incorporate the ten hypotheses of the researcher’s study interest. Quantitative data were collected through a 5-point Likert-type statement items. A total of 324 copies of the questionnaire were completed by managers representing 230 documented agro-allied firms. Marketing performance was measured using one qualitative and two quantitative measuring instruments: namely, customer patronage, customer loyalty and customer retention. Also, three positioning strategies for export were considered, namely, market orientation, marketing plan and product diversification strategies. Cronbach Alpha method was used to determine the reliability of these measures, both exploratory and confirmatory factor analysis were conducted to validate them. The empirical analysis was based on cross sectional data framework using the regression approach. Empirical results from the quantitative data found that export positioning strategies have a positive and highly significant influence at 5% level of significance on marketing performance. Though, statistical outputs linking product diversification and marketing plan on customer loyalty were a bit lesser than other tested variables, in terms of level of influence they exert on marketing performance. Economic infrastructure, safety factors and policy environment also showed positive and highly significant influence on the relationship between export positioning strategies and marketing performance. Indicating that improvement in infrastructure, safety and policy will enhance performance. For qualitative analysis, the results based on interview data collected through a digital tape recorder were highly consistent with the above quantitative results. Based on the findings, it was concluded that the present performance situation in the agro-allied industry is largely traceable to a range of factors, which may include types of managerial policies driving firms’ operations, available resources, and external influences which affect the agro-allied firms in the industry. Therefore, to tackle the challenges, we contend that adopting market orientation, marketing plan and product diversification strategies would help to reverse the observed declining marketing performance in the agro-allied business sector.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables vii
Abstract viii
CHAPTER 1: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 6
1.3 Objective of the Study 8
1.4 Research Questions 10
1.5 Hypotheses 11
1.6 Scope of the Study 12
1.7 Limitation of the Study 13
1.8 Justification of the Study 13
1.9 Definition of Operational Terms 14
CHAPTER 2: LITERATURE REVIEW
2.0 Overview of the Chapter 16
2.1 Conceptual Review of Literature 16
2.1.1. Export positioning approach 17
2.1.2. The concept of positioning 18
2.1.3 Marketing strategies 22
2.1.4 Market orientation strategy 23
2.1.5 Market orientation practice in the agro-allied export business 25
2.1.6 Product diversification strategy 34
2.2.7 Marketing plan strategy 37
2.2 Marketing Performance 40
2.2.1 Customer loyalty 43
2.2.2 Customer patronage 47
2.2.3 Customer retention 49
2.2.4 Market orientation and marketing performance 52
2.2.5 Marketing plan and marketing performance 54
2.2.6 Product diversification strategy and marketing performance 56
2.2.7 Export positioning strategies and marketing performance 58
2.3 Variables Which Influence Export Positioning Strategies
and Marketing Performance 61
2.3.1 Economic infrastructure 66
2.3.2 Security factors 68
2.3.3 Policy environment 69
2.4 Theoretical Background 71
2.4.1 Dependency theory 72
2.4.2 Theory of comparative advantage 76
2.4.3 Social exchange theory 78
2.4.4 Empirical literature review 81
2.4.5 Operational / conceptual framework 86
CHAPTER 3: RESEARCH METHODOLOGY
3.0 Overview of the Chapter 89
3.1 Research Design 90
3.2 Population of the Study 91
3.2.1 Area of the study 93
3.3 Sample Size Determination 94
3.4 Sampling Procedure 95
3.5 Method of Data Collection 95
3.6 Description of Research Instrument 96
3.7 Test of Validity 96
3.7.1 Reliability test 97
3.8 Methods of Data Analysis 98
3.9 Model Specification 99
3.9.1 Regression models 101
3.9.2 Methods of hypotheses testing 104
CHAPTER 4: PRESENTATION AND INTERPRETATION OF DATA
4.1 Survey Report and Data Processing 107
4.2 Companies Profile / Demography 108
4.3 Descriptive Statistics of Dependent Variables 117
4.4 Descriptive Statistics of Independent Variables 122
4.5. Confirmatory Factor Analysis 130
4.6. Empirical Analysis and Hypothesis Testing 144
4.7 Discussion of Findings 158
CHAPTER 5: DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 180
5.2 Conclusions 182
5.3 Recommendations 190
5.4 Suggestions for Further Studies 191
5.5 Contribution to Knowledge 192
References 195
Appendices 216
LIST OF TABLES Page
3.1 Alpha Co-efficient of the study variables 97
4.1a Questionnaire response rate for the field data collection 107
4.1b Demographic/profile analysis of the respondents 109
4.2 Means and standard deviations for customer patronage scale 118
4.3 Means and standard deviations for customer loyalty scale 119
4.4 Means and standard deviations for customer retention scale 121
4.5 Means and standard deviations for market orientation scale 122
4.6 Means and standard deviations for firm market plan scale 124
4.7 Means and standard deviations for product diversification scale 125
4.8 Means and standard deviations for economic infrastructure scale 126
4.9 Means and standard deviations for security factors scale 128
4.10 Means and standard deviations for policy environment scale 129
4.11 Standardized CFA results for independent variables 132
4.12 Inter-factor correlation matrix for CP, CL and CR 132
4.13 Goodness fit statistics for CFA solution for DVs 132
4.14 Goodness fit statistics for modified CFA model for DVs 134
4.15 Standardized CFA results for independent variables 137
4.16 Inter-factor correlation matrix for MO, FMP and PD 137
4.17 Goodness fit statistics for CFA solution for IVs 137
4.18 Goodness fit statistics for modified CFA model for IVs 140
4.19 Standardized CFA results for moderating variables 141
4.20 Inter-factor correlation matrix for EI, SF and PE 142
4.21 Goodness fit statistics for CFA solution for moderating variables 142
4.22 Goodness fit statistics for modified CFA model for moderating variables 144
4.23 Regression results for model 1 (DV = Customer Patronage) 145
4.24 Goodness of fit statistics 145
4.25 Regression results for model 2 (DV = customer loyalty) 146
4.26 Goodness of fit statistics 147
4.27 Regression results for model 3 (DV = customer retention) 148
4.28 Goodness of fit statistics 148
4.29 Regression results for model 4 (DV = marketing performance) 150
4.30 Goodness of fit statistics 150
LIST OF FIGURES
Page
2.1: Marketing performance measures adapted from
Abbasi & Pervaiz (2012) 42
2.2: Operational conceptual framework for the study. 87
3.1 Procedural steps in factor analysis 103
3.2 Confirmatory factor model 104
4.1 Percent distribution of managers 110
4.2 Percent distribution of firm’s industry type 111
4.3 Percent distribution of firm’s operations level 112
4.4 Percent distribution of firm’s annual export percentage 113
4.5 Frequency and percent distribution of firm’s years in export business 114
4.7 Frequency and percent distribution of firm’s level of
involvement in export 115
4.8 Frequency and percent distribution of firm’s stock
exchange quotation 116
4.9 Frequency and percent distribution of respondents’ education level 117
4.10 Means and standard deviations for CP scale 118
4.11 Means and standard deviations for CL scale 120
4.12 Means and standard deviations for CR scale 121
4.13 Means and standard deviations for MO scale 123
4.14 Means and standard deviations for FMP scale 124
4.15 Means and standard deviations for PD scale 125
4.16 Means and standard deviations for EI scale 127
4.17 Means and standard deviations for SF scale 128
4.18 Means and standard deviations for PE scale 129
4.19 Standardized CFA results for dependent variables 131
4.20 Modified CFA model for dependent variables 134
4.21 Standardized CFA results for independent variables 136
4.22 Modified CFA Model for independent variables 139 4.23 Standardized CFA results for moderating variables 141
5.1 Heuristic model of export positioning strategies
and marketing performance 144
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Prior to 1970s, Nigeria was primarily known as an Agro-based economy (Kenny & Nnamdi, 2019; Olukunle, 2013; Nahanga & Vera, 2016), and the agricultural sector alone accounted for over 65% of the GDP. According to Oji – Okoro (2011), the agricultural sector was the mainstay of the Nigeria economy which has provided a degree of support to national food self –sufficiency, by accounting for over 90% of total food consumption requirements. Ekpo and Egwaikhide (1994) and Ihemeje (2016) had also argued that benefits derived from large-scale agricultural business and export of agro-allied products have played an important role in terms of economic development enhancement to Nigerian economy, by providing the needed foreign exchange earnings for other capital development projects.
Ibeh (2004) and Oji-Okoro (2011) supported the explanation that growth in the agricultural sector is a catalyst for national growth via its effect on rural incomes and provision of resources for transformation into an industrialized economy. Johnston and Mellor (1961) as cited in Ezirim (2009) itemized a five agro-allied sector performance linkages that reflect agricultural contributions to the economic growth and development of a nation, namely: (i) provision of surplus labor to firms in the industrial sector, (ii) supply of food for domestic consumption, (iii) provision of market for industrial output, (iv) supply of domestic savings and industrial investment and (v) supply of foreign exchange from agriculture export earnings, to finance import of intermediate and capital goods. In addition to these five direct market-based linkages, agricultural value chain contributions to several areas of nation building cannot be over emphasized (Ezirim, 2009; Krauss, 2016).
In the past, the Federal Government showed concern for agricultural development by establishing frameworks in terms of policies and programmes to tackle agricultural challenges. These included the Structural Adjustment Programme (SAP), which main objective was to pave way for a free market oriented economy, capable of encouraging private enterprises and possibly guarantee more efficient use of resources. The objectives of SAP were (i) To increase the production of exportable cash crops thereby diversifying the export base of the economy, (ii) to raise rural employment and income (iii) to increase domestic food production and raise nutritional status and standard. The following policy instruments of SAP were designed to influence the sector indirectly or directly such as the (i) Fiscal policies, (ii) Monetary and (iii) Trade and foreign exchange rate policies. Nevertheless, before the introduction of SAP in 1986, the Federal Government of Nigeria had implemented several agricultural policies and programmes with various degrees of impact on the economy (Kenny & Nnamdi, 2019; Olukunle, 2013; Ihemeje, 2016)
While some of these programmes were either abandoned or restructured, some are still in place. These policies are (i) Farm Settlement Scheme, (ii) National Accelerated Food Production Programme (NAFPP), (iii) Agricultural Development Projects (ADPs), (iv) River Basin Development Authorities (RBDAs) (v) Nigerian Agricultural Cooperation and Rural Development Bank (NACRDB), (vi) Operation Feed the Nation (OFN), (vii) Green Revolution Programme (viii) Directorate of Foods, Roads and Rural Infrastructures (DFFRI) and (ix) Agricultural Credit Guarantee Scheme Fund (ACGSF). It appears that despite the laudable intensions of Government, these objectives and investments at Federal and State levels, still remain under- achieved (CBN, 2010; Olukunle, 2013; Ihemeje, 2016).
Obviously, the discovery of crude petroleum in 1950s reshaped the form and volume of Nigeria level of commitment in agricultural development projects, as principal revenue generator in terms of foreign trade and exchange enhancement (Ezirim, 2009). Also, the euphoria of economic well-being following the emergence of oil prosperity of the seventies, contributed significantly in reducing the focus on agricultural value chain sustenance. According to Iwok (1986) and Ezirim (2009), the Udoji award of 1974 and 1975 mostly encouraged the flamboyant life style of many, as workers’ salaries were doubled that period, thus triggering off the inflationary insatiable thirst and demand for foreign goods. The oil revenue by 1980’s began to dwindle, and eventually ushered in some economic changes through the military regimes for economic re-direction (Ezirim, 2009; Kristopher, 2015).
Evidence of underutilization of agricultural marketing potentials, both at the national and international levels, reflects on lesser output of agricultural produce, as only a few number of firms embrace mechanized systems of agricultural business (Ro, 2014; Okoro & Madueme, 2004; Abiodun & Olakojo, 2010). This has led to low productivity in terms of guaranteeing significant contributions towards increasing foreign reserves through product export. This type of vacuum shows that there is a problem in terms of gap existing in Nigerian present agricultural products export practice and marketing performance in relation to the nation’s economic target. The gap is also evident between agricultural marketing performance in Nigeria and those of other industrialized countries, in the sense that while other leading nations like China, Brazil, and United States are more involved in agro-allied value chain production and exports, Nigeria is rather, more involved in crude oil production and export than we pay attention in exploring the huge potentials domiciled in agro-allied production and exports, thus, adding more to high rate of unemployment and other social vices in Nigeria (Ihemeje, 2016; Ezirim, 2009). Undoubtedly, closing of such gap can significantly improve the economic situation, reduce unemployment rate, and enhance agricultural marketing performance of the agro-allied sector (Ro, 2014, Nasdaq, 2016, Ihemeje, 2016). Also, knowledge gap of the present study is the absence of comprehensive understanding of the need for agricultural product export marketing efforts in Nigeria, to be strategically positioned domestically as well as beyond the nation’s frontiers, to address the missing, link which is about providing a more stable economic growth through positioning the Nigerian economy at the pedestal of being one of the foremost mechanized agro-based nations of the world.
According to Ahumada and Villalobos, (2009), there are different areas of agricultural marketing fields of study under food and agricultural supply chain and economic development. These include; production, processing, harvesting, storage and distribution of agricultural produce. Previous scholars (Onyango, 2011; Isen, 2012; World Bank, 2006; Nwora & Ejionueme, 2017) have carried out studies on positioning strategies covering different areas of business and industries, such as the automobile positioning, food and drugs positioning, biodiversity, nutrition, brand positioning, and other aspects of agricultural business, but that of strategically positioning agricultural products for export business in Nigeria economic environment, has remained under researched. The present study therefore embarks on a broader perspective of our stated point of departure - agro-allied export positioning strategies for better marketing performance.
To undertake the task of providing a broader view of the potentials derivable by firms when they embrace export positioning strategies in agricultural marketing efforts, three dimensions of the predictor variable were assessed to present a more comprehensive understanding of the variables’ usefulness and better explanation to firms’ marketing performance, with due recognition of the presence of the contextual factors. Previous researchers have attempted to provide explanation using three or four different dimensions, namely; entrepreneurial orientation, managerial competency, organizational characteristics and marketing practice (Ezirim, 2009), to explain performance in the agricultural sector. Nkamnebe (2004), also used other dimensions such as organizational characteristics, and marketing practice, whereas Ibe (2004), featured entrepreneurial orientation and managerial competency as dimensions of export behaviour. Despite all the single and dual use of these dimensions to address the performance challenges in the agro-allied sector in Nigeria, the poor performance situation continued to exist, especially when the agro-allied sector performance is compared with that of leading nations in agricultural business, such as China, USA and Brazil (Ezirim, 2009). Therefore, the present study has adopted three specific dimensions such as market orientation, marketing plan implementation and product diversification approach, with a view to proffer solution in this area of our study interest, and to also fill the existing knowledge gap. The mediating influence of economic infrastructure, safety factors and policy environment were also evaluated in line with the study objectives.
Also, performance challenges firms encounter in the marketing enterprise can be linked to issues pertaining to volume of sales, growth in sales, market share and profits (Albaum, Strandskov & Duerr., 1998; Ezirim, 2009). The necessity to improve marketing performance of the agro-based firms has also been stressed by Nwora and Ejionueme (2017). Recent studies by Thirstle, et al., (2013) and that of Nwora and Ejionueme (2017) show that countries in Europe, North America, and Asia known as industrialized nations have first of all been identified with agricultural production and exports capabilities (Timmer, 2002). The urgency for Nigeria to emulate the industrialized nations by first engaging strategically in full scale agricultural production and export marketing is an attempt to fill the gap created by decades of steady decline in production and exports of agricultural value chain in Nigeria. For instance, as at the 1960s, the agricultural export revenue contributed above (65%) of the total GDP, whereas by 2018, the agricultural sector contribution fall as low as 23.08% (Abiodu & Olakojo, 2010; Olukunle, 2013; Olukunle, 2013; & Uba, 2019).
1.2 STATEMENT OF THE PROBLEM
Over the years, the agricultural sector in Nigeria, large with peasant farmers, has been grappling with the problems of improving marketing performance beyond the nation’s frontiers due to increasing problems of identifying unique selling points attractive to foreign markets. This has led to low market share, low turnover and low profit. Despite the efforts of previous researchers to address these challenges, the situation has continued to linger till date (Olukunle, 2013; Ihemeje, 2016). These types of performance constraints have been aggravated by poor application of unique customer values in the agro-allied value chain, poor infrastructure, low productivity, and poor returns on investments (Olukunle, 2013). Other scholars (Zou & Stan, 1998; Ezirim, 2009) had viewed performance problems as critical issue bordering on types of operations strategies that needs urgent attention. Similarly, Vogl (2018), Jaakkola (2006), Nkamnebe (2004), Ibe (2004) and Ezirim (2009) included market share, sales growth and profit as part of critical substance of performance variables that are mostly affected when firms’ export performance fluctuates negatively.
On the other hand, some scholars (Olomola & Nwafor, 2018; Ufiobor, 2017; Ihemeje, 2016; Agbonkhese 2013; Olukunle, 2013; Oji-Okoro, 2011; Ezirim, 2009; Okoh, 2004; Nkamnebe, 2004; Ibe, 2004; Lonidou, Katsikeas & Samiee., 2001) also highlighted a range of deficiencies in terms of underutilization of the agricultural sector in Nigeria. These include poor utilization of agricultural resources, or neglect in the development of the agricultural sector, inability of the government, individuals and firms to maximize the profit potentials of the agricultural product marketing. Also, recent studies (Hirth, 2015; Serletis, 2017; Alsaman & Herrera, 2015) show that developed economies of the world are rapidly improving on global adoption of alternative energy sources (i.e. solar energy, wind, hydroelectric, etc.) as primary energy base, due to its alternative energies’ advantages in terms of guaranteeing cleaner environment and reduction in per unit cost. Based on the technological advancement towards actualization of this alternative energy system, it was also anticipated that the more the developed economies of the world key into full scale utilization of alternative energy in terms of powering the economy, the higher the probability of decline in prices of petroleum products will turn out in Nigeria.
Despite the efforts of previous scholars (Lonidou, et al., 2001; Nkamnebe, 2004; Ibe, 2004; Ezirim, 2009; Olukunle, 2013) who tried to address the issues of poor optimization of agro-allied performance potentials, while focusing on export organization behavior, using entrepreneurial orientation, organizational characteristics, and marketing mix elements to measure influence on export marketing performance, the problem of performance in the agricultural sector continues to exist (Ufiobor, 2017; Ihemeje, 2016). It was also perceived that such problems contribute to other social vices plaguing the present economy (Olomola & Nwafor, 2018). The most disturbing concern triggering interest for this research is that, presently, firms in developed economies such as the United States of America, Germany, Japan and China have gained competitive advantage in the use of advanced technology and technical know-how as core unique selling points to promote mechanized agro-allied value chain and exports, at the same time advancing in manufacturing and exports of renewable energy products such as solar panels, hydro-electric, etc. yet in the agricultural sector where Nigeria ought to maintain comparative advantaged position, in terms of generating sustainable agricultural value chain output, both for domestic consumption and export, extant literature revealed that there has been a significant drop in terms of agricultural contribution to GDP from more than 65% as at the 1960s, to abysmal low of 23.08% in 2018 (Abiodu et al, 2010; Olukunle, 2013; Nahanga & Vera, 2016; Cavusgil & Kirpalani, 1993; Uba, 2019; Kenny & Nnamdi, 2019). Given the above situation, the question begging for answer is, what is the cause behind the abysmal drop of agricultural input in Nigeria economy?
This type of gap increasing by steady decline in the agricultural sector, despite the huge potentials existing in the Nigeria business environment, has raised an agitating concern on how firms in the agro-allied sector in Nigeria can utilize the essential tools of positioning strategies such as market orientation principles, firm’s marketing plan capabilities and product diversification approach in creating agricultural value-chain and exports both locally and internationally, to improve firms marketing performance while increasing Nigeria’s total GDP, especially, when firm’s performance is focused on such areas as level of customer patronage, customer retention and customer loyalty (Ambler, 2004; Jaakkola, 2006; Asikhia, 2006; Sarwar, Abbasi, & Pervaiz., 2012; Hellman & Jantunen, 2012). In line with this notion, we thus proposed an empirical investigation on what we refer to as “export positioning strategies and marketing performance of selected agro-allied firms in South-South, Nigeria”. Evidently, the use of customer orientation, customer loyalty and product diversification in this study is unique and unused by previous researchers. The aim is to attempt to determine how this strategic positioning approach focused on use of combined influence of market orientation, marketing plan and product diversification approach, can improve firms’ marketing performance, in the area of agricultural value chain exports, and also boost the Nation’s economy when private firms in the agro-allied business sector compete favorably with other leading agro-allied export nations like Brazil, United State of America and China.
1.3 OBJECTIVE OF THE STUDY
The main objective of this study is to evaluate the effect of export positioning strategies on the marketing performance of selected Agro-Allied firms in South-South, Nigeria. Furthermore, the study is set to achieve the following specific objectives:
1. determine whether firm’s adoption of market orientation tactics for export advantage has a significant effect on customer patronage of the organizations in the agro-allied business sector.
2. ascertain whether use of market orientation approach in the export practice can significantly affect firms’ customer loyalty experience within the agro-allied industry.
3. evaluate whether there is a significant effect of market orientation application for agro-allied export on customer retention efforts of firms in the agro-allied business sector
4. identify the effect of firm’s marketing plan on customer patronage of the organizations in the agricultural value chain and export sector
5. ascertain whether marketing plan adopted for agricultural product export has a significant effect on customer loyalty of agro-allied firms.
6. determine whether firm’s marketing plan has a significant effect on customer retention activities of organizations in the agro-allied export business sector
7. assess the effect of product diversification approach on customer patronage of agro-allied firms involved in agricultural value-chain creation and export.
8. determine whether product diversification approach has a significant effect on customer loyalty of export organizations in the agro-allied business sector
9. evaluate whether product diversification has a significant effect on customer retention efforts of firms in the export of agro-allied goods in the South-South Nigeria.
10. examine the extent the moderating factors influence the relationship between export positioning strategies adopted by the agro-allied firms and their marketing performance.
1.4 RESEARCH QUESTIONS
Based on the problems statement and objective of the study, the following research questions were provided:
1. To what level of significance is the effect of market orientation tactics for export advantage on customer patronage of the organizations in the agro-allied business sector?
2. To what level of significance is the effect of market orientation approach in the export practice on firms’ customer loyalty experience within the agro-allied industry?
3. To what level of significance is the effect of organization’s market orientation application for export on customer retention efforts of firms in the agro-allied business sector?
4. To what level of significance is the effect of firm’s marketing plan on customer patronage of the organizations in the agricultural value chain and export sector?
5. To what level of significance is the effect of marketing plan adopted for agricultural products export on customer loyalty of agro-allied firms?
6. To what level of significance is the effect of firm’s marketing plan on customer retention activities of organizations in the agro-allied export business sector?
7. To what level of significance is the effect of product diversification approach on customer patronage of agro-allied firms involved in agricultural value-chain creation and export?
8. To what level of significance is the effect of product diversification on customer loyalty of export organizations in the agro-allied business sector?
9. To what level of significance is the effect of product diversification on customer retention efforts of firms in the export of agro-allied goods in the South-South sector?
10. How does the moderating factors influence the relationship between export positioning strategies adopted by the agro-allied firms and their marketing performance?
1.5 HYPOTHESES
The following null hypotheses were formulated for testing based on a preliminary literature review that reflected the sources of the study variables as captured in the operational conceptual framework in Fig. 2.3 of chapter two. The ten major relationship or null hypotheses included the following:
H01: Export firm’s level of market orientation for competitive advantage has no significant effect on customer patronage of their products.
H02: Level of market orientation firms practiced in the export of agro-allied products has no significant effect on customer loyalty in the agro-allied sector.
H03: Market orientation skills adopted by firms involved in the export of agro-allied products have no significant effect on customer retention.
H04: Firm’s marketing plan adoption has no significant effect on customer patronage of firms in the export of agro-allied products.
H05: Marketing plan adoption by firms in the export of agricultural products has no significant effect on customer loyalty in the agro-allied industry.
H06: Marketing plan developed and utilized by export firms for competitive benefits has no significant effect on customer retention.
H07: Export firm’s product diversification approach has no significant effect on their customer patronage.
H08: Product diversification approach has no significant effect on customer loyalty of the export firms in the agro-allied sector.
H09: application of product diversification strategy has no significant effect on retention of export firm’s target customers.
H010: The moderating factors do not influence the relationship between export positioning strategies adopted by firms and their marketing performance.
1.6 SCOPE OF THE STUDY
This section features three aspects of the scope guiding the study: (a) Content scope covering variables with their dimensions and measure, (b) the geographical scope covering registered agro-allied firms in South-South Nigeria, and (c) the survey scope (firms’ level of analysis and agro-allied business managers that represented individual firms as units of analysis) in the agricultural business sector. For the purpose of checking standard, the framework provided by previous researchers on the subject were reassessed to enable cross-sectional survey research, since the study is a cross-dimensional type that involves the activities of Nigerian agro-allied firms and other interest groups (government and private sectors). The list of firms that are involved in the agro-allied enterprises were obtained from Nigerian Agricultural Export Promotion Council (NEPC). Agro-allied managers as the key informants in this sector, were interacted with for data collection. The choice of the aforementioned locations is based on accessibility of the required data for the study, and the fact that Nigeria has the potential to remain as one of the world major producers of agro-allied products like Cocoa, agro-allied by-products, Cassava, Palm kernel, rubber, etc. used as raw materials for industrial productions abroad. This opportunity will allow for adequate sample space to draw samples required for the study.
1.7 LIMITATION OF THE STUDY
This study is limited to the assessment of profit oriented and documented agro-allied firms involved in manufacturing, processing and services of agricultural value chain export in South-South, Nigeria. Also given some established similarity intrinsic and universal in the operations of agro-allied value chain export business, and service delivery both domestically and abroad, the researcher therefore used a common questionnaire template designed in two categories to get across to limited respondents representing the total population of the study, as provided by NEPC. Data collected from respondents is hoped to provide pertinent information for generalization in terms of outcome of performance challenges and/or successes experienced by the agro-allied firms in the south-south zone of Nigeria in particular, and to other parts of the country not covered in this study. Generalization of data from selected agro-allied firms may be associated with the problem of context and validity. Finally, data collected from the respondents were measured on a five-point Likert-type. These ranges from 1 - strongly disagree to 5 — strongly agree. These self-biases constituted limitations in this study.
1.8 JUSTIFICATION OF THE STUDY
This study could be of immense benefits to the producers and exporters of agro-allied products, local manufacturers, governments and government agencies in the agro-allied sector. They include: Agro-allied producers, processors, home and foreign governments of the various nations consuming Nigerian agro-allied products, private and public Nigerian primary products related investors, importing and re-exporting nations, etc. The information derivable from this study could be used as input for planning, organizing, directing and controlling relevant policies and programmes that would improve Nigerian agro-allied sector’s export performance.
Again, the suggestions that were made based on this study, could be useful for both national and international strategic alliances aimed to influence foreign exchange enhancement, debt management improvement, better risk management approach, etc. It could also enhance the country’s production and export competencies and contribute significantly to economic development of Nigeria and allied nations.
1.9 DEFINITION OF OPERATIONAL TERMS
Product export: this refers to tangible goods produced, processed or extracted and shipped abroad either as finished goods, or produced means of production used for further production of goods and services abroad.
Positioning: this refers to the intensity with which organizations or individuals provide unique customer value, or key selling points designed to fill existing or anticipated vacuum in consumers’ mind relative to the offerings from competitors.
Strategies: this has to do with the combined methods an organization fuses to realize its set goal(s) and the means or policies by which it seeks to achieve the set goal.
Customer loyalty: This refers to willingness on the part of customers to remain committed in purchasing products or paying for service from specific business outfits with the capacity to resist the activities of rival companies attempting to attract their patronage.
Market orientation: this refers to the process of creating the necessary behaviors from the firm’s side, to facilitate improved product values consistent with target customers’ expectations derived from understanding of customer needs and preferences.
Marketing plan: this refers to firm’s concrete form of documentation process with structured information about the market, competitors and suggestions on how firm can accomplish selected goals from the items it intends to market.
Product diversification: this has to do with firm’s internal approach of producing and introducing new products to gain competitive edge without completely abandoning its previous product line(s).
Moderating variable: this refers to those elements that may affect specific performances or interplay of variables either positively or negatively.
Marketing performance: this is a measure of the contributions of a firm’s marketing functions to its corporate goals and objectives, which in this context is measured in terms of customer loyalty, customer patronage, profitability, customer retention and market share. Etc.
Economic infrastructure: this comprises all the basic amenities such as the road network, water ways, telecommunication system, airways, financial institutions, water supply and electricity which directly benefit the wellbeing of the populace through the process of production and distribution of recourses that enhance the economy.
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