ABSTRACT
This study is
about the discovery on the relationship between attributes of product quality
and brand loyalty. In solving the research problems, both primary and secondary
sources of data were collected. The respondents comprised the people of
Ekwulobia in Aguata Local Government Area of Anambra State. In organizing and
presenting data collected, tables, figures, frequencies and percentages were
used. Taro Yamene statistical formular was used to determine the sample size of
the respondents. The hypothesis was tested using Chi-square. Data analysis and
interpretation gave the following: product quality influences brand loyalty,
there is a relationship between product quality and brand loyalty, consumers
purchased products with good quality, quality motivates consumers and finally
quality of a product is a factor that affect consumers and finally quality of a
product is a factor that affect consumer behaviour, the researcher draws
conclusion and recommendation from the findings in order for firms and
customer/respondents to see the need to be sensitized about the actual level of quality of product they
carry. Finally suggestions for further research on product quality were also
given.
TABLE OF CONTENT
Title
- - - - - - - - - - - -i
Approval
- - - - - - - - - - -ii
Dedication- - - - - - - - - - -iii
Acknowledgements- - - - - - - - -iv
Table
of content - - - - - - - - -v
Abstract - - - - - - - - - - -viii
CHAPTER ONE
INTRODUCTION
1.1
Background of the study - - -- - - -1
1.2
Statement of the problem - - - - - -6
1.3
Purpose of the study - - - - - - -7
1.4
Significance of the study - - - - - -7
1.5
Research questions - - - - - - - -8
1.6
Hypothesis - - - - - - - - -8
1.7
Scope of the study - - - - - - -9
1.8
Definition of terms - - - - - - - -9
CHAPTER TWO
LITERATURE REVIEW
Introduction
- - - - - - - - - -12
2.1
Review of the current literature - - - - -13
2.2
Types of product - - - - - - - -14
2.3
New product development process - - - - -17
2.4
The product life cycle - - - - - - -22
2.5
Quality product explained - - - - - -26
2.6
Overview of product quality and brand loyalty - -28
CHAPTER THREE
METHODOLOGY
3.1
Design of the study - - - - - - - -33
3.2
Area of the study - - - - - - - -34
3.3
Population of the study - - - - - - -34
3.4
Sample of the study - - - - - - - -34
3.5
Instrument for data collection - - - - - -35
3.6
Validation of the study - - - - - - -36
3.7
Distribution and retrieval of the instrument - - -36
3.8
Method of data analysis - - - - - - -37
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1
Introduction - - - - - - - - -38
4.2
Findings - - - - - - - - - -53
4.3
Discussion of the findings - - - - - -54
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1
Summary of findings- - - - - - - -55
5.2
Conclusion - - - - - - - - -56
5.3
Recommendations - - - - - - - -56
5.4
Limitation of the study - - - - - - -57
5.5
Suggestions for further studies- - - - - -58
References- - - - - - - - - - -59
Appendix
A -- - - - - - - - - -60
Appendix
B - - - - - - - - - -61
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Dr.
Joseph Juran (2013) defined product quality as a means to incorporate features
that have a capacity to meet consumers need (wants) and gives customer’s
satisfactions by improving product (goods) and making them free from any
deficiencies or defeats.
The
quality of a product could be sub divided into real quality and perceived
quality.
Nevertheless
in this research work, we will place more emphasis on perceived quality as such
in the line with the marketing concepts, moreover the rhetoric of the matter in
this, of what use is the quality if it does not have any influence on the
customer?
Shawn Grimsley (2015) defined brand
loyalty as where a customer choose to repeatedly purchase a product by the same
company instead of a substitute product produced by a competitor.
Brand
loyalty is more than sample repurchasing customer may repurchase a brand due to
situation oral constraints (such as vendor locking) a lack of viable
alternations or out of convenience, such loyalty is referred to as “superior
loyalty”. True brand loyalty exists when customers have a high relative
attitude towards the brand which is then exhibited through repurchase behavior.
According to Kolter and Keller (2006)
this type of loyalty can be the extent of consumers faithful towards a specific
brand and this faithfulness is expressed through repeat purchase and other
positive behavior each as a word of mouth advocacy, irrespective of the
marketing pressure, generating by the other competing brands.
It
is important for it to be pointed out here that are not with standing, the
redoubtable virtues in true brand loyalty, this research does not intend to entangle himself in the fractions
trajectory of attempting to distinguish and analogize time and spurious loyalty
in this work. Brand loyalty will be examined textually as it is in its
definitions by Shawn Grimsley (2015). The repeatedly purchase a product by the
same company.
The topic of this research, of course
the influence of product quality on brand loyalty in Nigeria (A case study of customers
of Peak Milk Ekwulobia).
Many factors have some impact of brand
loyalty, they include price, peer and societal pressure, product availability
and etcetera.
Nevertheless we will restrict ourselves
to the impact of product quality on such loyalty and with particular reference
to customers of Peak Milk in Ekwulobia residents in Anambra State of Nigeria.
Aguata is a local government Area East
Central Nigeria. It is a region with marketing fertile land for agriculture
with prominent product around like rice, yam, cassava and palm oil. Most of the
populations are subsistence farmers and traders there are also a large students
community as a result of the presence of Federal Polytechnic Oko located at
Oko.
1.1.1
BRIEF
HISTORY OF PEAK MILK COMPANY
Friesland
compina WAMCO Nigeria Plc is a multinational manufacturing company. It is
affiliated to Royal Cooperative compina of the Netherlands, the world largest
daily cooperative, its headquarter is in the Ikeja Industrial Area of Lagos
State and operate an extensive distribution network across Nigeria. 36 states
and the Federal Capital Territory. The company was incorporates in April 1973
as West Africa Milk Company Nigeria Plc and commenced operations in 1975. The
largest diary cooperative in the world. The company as continued to play a
leading role in the productive, processing, packaging, marketing and
distribution of various milk product in Nigeria with and annual turnover of #111.12
Billion in 2012 and a dominant market share driven by her key-brand, “Peak,
Three Crowns and Olympic. It pioneered the manufactured of evaporated milk and
is the market leader in the introduction of fortified based milk product in
Nigeria. Friesland compina WAMCO Nigeria Plc will maintain its No 1 position as
the rations leading milk manufacturing company by investing in its people,
capacity expansion projects and by being an excellent corporate citizen.
1.2 STATEMENT OF THE PROBLEMS
Product
quality is the collection of features and characteristics of a product that
contributes to its ability to meet given requirement. Early work is
contributing product quality was on creating standards for producing acceptable
product. Dr. Carvin identified 8 dimension as a frame work for thinking about
the basic elements of product quality. Each dimension is self contained and
distinct, a product can be ranked high on one dimension while being low on
another. Eight dimensions of product quality includes performance, features,
reliability, conformance, durability, serviceability, aesthetics and perceived
quality.
Actually,
any product that has good quality which can satisfy its customers, suppose to
attract brand loyalty. But, at times it seems that some products that have
quality seem not to attract brand loyalty. This could be as a result of
customers finding it difficult to identify attributes of quality product or
they don’t appreciate the quality of product.
Thus,
this research set out to look at what a quality product is and also to identify
influence of product quality on brand loyalty using Peak Milk as a case study.
1.3 PURPOSE OF THE STUDY
The
main purpose is to investigate the influence of product quality on brand
loyalty. The specific purposes are ascertained if product quality has influence
on brand loyalty ascertain if customers of Peak milk identify what product
quality is, also to identify other factors that affect brand loyalty.
1.4 SIGNIFICANCE OF THE STUDY
This
research work is especially relevant to those who are
i.
Decision makers on the product quality
levels
ii.
Management of producers of Peak
(Friesland Compina WAMCO).
iii.
It will add to the existing knowledge
1.5 RESEARCH QUESTIONS
1. To
what extent does product quality influence brand loyalty?
2. Do
customers of Peak Milk identify what product loyalty is?
3. What
are the other factors that affect brand loyalty?
1.6 RESEARCH HYPOTHESIS
The
researcher formulated the following hypothesis to guide the research
Ho:
There is a relationship between product quality and brand loyalty
Hi:
There is no relationship between product quality and brand loyalty.
1.7 SCOPE OF THE STUDY
This
study is limited to consumers of Peak Milk Ekwulobia Anambra State.
1.8 DEFINITIONS OF TERMS
These
terms were found appropriate for definitions in this work:
Product: A
product is any thing that can be offered to the market which satisfies a want
or need.
Brand loyalty: Is
the marketing efforts or outcomes that accrued a product with its brand name
compare to those that would accrue of the same product that did not have the
brand name.
Marketing concept: It
is a business philosophy based on the focus of business efforts or its
management orientation that holds that key task of the organization is to
determine the need and wants of target market and to adopt the organization to
delivering the desired satisfactions more effectively and efficiently than its
competitors.
Marketing mix: The
marketing mix refers to the use of several variables (place, product, price and
promotion) in other to achieve marketing objectives. Those variables are also
known as the 4ps.
Quality: Is
a measure of excellence or a state of being free defects, deficiencies any
significant variations. It is brought about by strict and consistent commitment
to certain standards that achieve uniformity of a product in order to satisfy
stated implied needs.
Brand: A
name, term, design, symbol or any other features that identifies one seller’s
goods and services as distinct from those of other sellers.
Concept: An idea aimed at
satisfies consumer’s wants and needs.
Loyalty: Is
faithfulness or a devotion to a person, country, group or cause or the state of
being loyal, faithfulness to commitment or obligations.
Product concept: It
purpose that consumers will prefer product that have better quality,
performance and features as opposed to a normal profit.
Tangible product: Is
any physical product that can be touched like a computer, automobile etc.
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