THE IMPACT OF PRODUCT QUALITY ON CONSUMER BRAND LOYALTY (A CASE STUDY OF INTERCONTINENTAL DISTILLER LIMITED, OTA, OGUN STATE)

CHAPTER ONE

INTRODUCTION

This research is on the impact of product quality on consumer brand loyalty case study of Intercontinental Distiller Limited, Ota, Ogun State. The researcher intends to find out if Intercontinental Distiller Limited produces quality products and how this impacts on the customer patronage and boost profitability.

The study is also aimed at assessing the relationship between customer service and product quality with customer satisfaction and loyalty as it affect Intercontinental Distiller Limited Ota, Ogun State.

Product quality is beneficial to both consumers and manufacturers in the following ways: It serves as positioning tools, it has impacts on product performance, it helps to create customers value and satisfaction and companies should therefore choose a product quality level that matches target market needs and quality level of competing products.

1.3      Background to the Study

The consumer of goods normally hints on quality rather than quality as different from the company objective which is profit maximization. The success of every business adherence to the marketing concept, which implies the skillful satisfaction of what buyer believe to be their self-interest as an acceptable relationship between the buyer and the company.

The understanding of product quality and the role it plays in attracting consumer loyalty will effectively serve as a paddle to enable us dwell on the subjections of this work.

Notably, our discussion so far has been the impact of product quality on consumer brand loyalty. A case study of Intercontinental Distiller Limited Ota, Ogun State.

The finding of this work give an insight which every among at procession into which we regularly prefer certain product and not other in a variety of circumstances. Manufacturers at the end of this work will be able to spot from marketing activities.

The industry having only carry out some research and find out the impact of product quality on consumer brand loyalty, the product requirement are to convene this finding in to product concept and lastly into goods and services that can satisfy the identifiable wants.

The company has specification and requirement that the firm can be seen as an input/output system.

1.4      Statement of the Problem

Many organizations have be experiencing low patronage from customers, which led to decrease in profitability of such organization.

1.          A common trend among customers who patronize these organizations is that they either complain of taste, colour, packaging, price of their product or poor product quality, and company’s corporate image.

2.          The problem of how to know which to offer and to what extent as always resulted in an attempt to make consumer loyalty to a product.

1.3   Research Questions

1.     Is product quality of useful tool for achieving organizational goal?

2.     Does the products of Intercontinental Distiller Limited have any impact on product quality on consumer brand loyalty?

3.     Is there any factor that affect brand loyalty on consumer product?

1.4   Research Hypothesis

        Hypothesis I

Hi:   There is a positive relationship between the usefulness of product quality and achieving organizational goal.

Hypothesis II

Hi:   There is a positive relationship between product quality and consumer brand loyalty.

Hypothesis III

Hi:   There is a positive relationship between the factors that affect brand loyalty and consumer purchase of product.

1.5   Purpose of the Study

i.      To find out if product quality is a useful tool for achieving organizational goal.

ii.     To determine the impact of product quality on consumer brand loyalty.

iii.    To know the factors that affect brand loyalty.

1.6   Scope of Study

This study shall focus attention mostly on the youth. It is specifically given attention to this segment of the market for the frequent consumption of the product.

Under study i.e. Intercontinental Distiller Limited in Ota, Ogun State adds to this segment of the market is comparatively educated to understanding and answering questions relevant to the study. Geographically, this study covers Ogun State.

1.7   Significance of the Study

To marketing, this study will assist marketing expert to mass emphasis on the specific component of an element of marketing mix that attract most loyalty buyers towards a product.

To all Intercontinental Distiller Limited products, it will assist in spotting possible different that stops their potentials.

To student, this method will serve as a source of secondary data to related research work.

1.8   Limitations of the Study

A lot of problems were encountered by the researcher while conducting the research. Among them being that some respondent of Intercontinental Distillers product in Ota, Ogun State are presumable reserved in providing the researcher with some necessary information.

Secondly, an elaborate research work such as this could only be carried out within the limited available time frame. However, the researcher may be able to squeeze out enough time and found that guarantee exhaustive and reliable work.

1.9   Operational Definition of Terms

        Product Quality: Product quality means to incorporate features that have a capacity to meet consumer needs (wants) and gives customers satisfaction by improving products (Kotler, 2008).

        Product: Product is complex of tangible and intangible attributes including packaging, colour, price, prestige and services that satisfy needs and wants of people (Stanton, 2009). Product is anything that can be offered to someone to satisfy a need or a want.

Consumer Buying Behaviour: Consumer buying behavior is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants (Kotler and Keller, 2011).

Consumer: A consumer can be a person (or group of people), generally categorized as an end user or target demographic for a product, goods or services (Kotler, 2008).

Brand Loyalty: Beerlie, (2009), stated that a true brand loyalty when the decision to repeat purchase is made on satisfactory experiences and positive attitude toward the preferred brand (Beerli, 2009).

Loyalty: Loyalty has been explained as an active loyalty when a consumer re-use the brand and recommend the brand to the others, and a passive loyalty that is characterized as an intension of not switching even when brand provides less positive conditions (Neriga and Vite, 2009).

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