ABSTRACT
This project highlighted the Role of Sales Promotion in
Influencing Consumer Buying Behavior. The project is divided into five
chapters. Chapter one looks at the general introduction where background of the
study was discuss significance of the study as well as the objectives were
highlighted chapter two review all related literature relevant of the topic
under study, In this chapter the views of scholars and experts in personnel
management were gathered data, chapter three highlighted the sample size and
sampling technic and chapter highlighted the data presentation and analysis and
lastly the chapter highlighted all the summary, conclusion and recommendation.
TABLE
OF CONTENTS
CONTENT PAGES
Title Page…………………………………….………..………………………….…. i
Approval Page……………………………………..…….……………………….…… ii
Declaration Page……………………………………………………………………… iii
Dedication……………………………………………………………………......…… iv
Acknowledgement…………………………………………………………………...… v
Abstract……………………………………………………………………………..… vii
Table of Contents……………………………………………………………….....… vii
CHAPTER
ONE
1.0 Introduction……………………………………………………………………….. 1
1.1 Background of the Study…………………...…………………………..……….… 2
1.2 Statement of the Problem……………………………….………………………… 3
1.3 Objective of the study ………...……………………….……………….………… 4
1.4 Research Question..……………………………………...…………………..…… 4
1.5 Research Hypotheses ……..…………………………..…………………….……. 5
1.6 Significant of the Study ………………….…………………….…………..……… 6
1.7 Scope and Limitation of the Study…………………..……………….…………. 6
1.8 Historical Background of the Case Study Are ……………………………………. 7
CHAPTER
TWO: LITERATURE REVIEW
2.1 Historical Perspective of Research Area ..……….…………………………….… 9
2.2 Review of Current Literature………………….……………….….……….….… 9
2.2.1 Meaning of Sale Promotion
……..………………..……..……………...….… 9
2.2.2 Types of Sale Promotion
………………………….….…….…………..….… 11
2.2.3 Development of Sale Promotion Programme ………………………………… 12
2.2.4 Main Tools of Promotion……………….. ……………………………………. 13
2.2.5 Benefit of Sale Promotion…………………………………………….………… 15
2.2.6 Limitation of Sale Promotion………………………………………….………… 15
2.2.7 Meaning of Consumer Buying Behavior……………………………….……….. 16
2.2.8 The Major Factors Influencing Consumer Behavior ………………….……….. 16
2.2.8.1 Types of Buying Decision Behavior………………………………….………. 18
2.2.9 Process in Consumer Buying Decision………..…….………………….………. 19
2.2.10 Purchase Decision………………………………….………………….……….. 20
2.2.11 Post-Purchase Behavior…………………………….………………….……….. 20
2.3. Theoretical Framework……………………………….………………….………… 21
2.4. Empirical Literature ………………………………….………………….………… 22
2.5. The role of sale promotion in influencing consumer baying behavior …………… 23
2.5.1 Influence of sales promotion on consumer baying behavior
……………………… 24
2.5.2 Consumer psychology and sales promotion ………………………………………. 24
2.5.3 Challenges and Limitation of sales promotion …………………………………… 24
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Introduction……………….…………………………………….……….…...…… 25
3.2Research Design……………….………………………………………….…...…… 25
3.3 Population of the study .. …………………………………………………………. 25
3.4 Sample Size of the Study ……………..…………………..…………………..…. 25
3.5 Sources and Method of Data Collection.……………………………………..…… 26
3.6 Techniques and Data Analysis..……………………………………………………. 26
3.7 Justification of the Study ………………………………………………………….. 27
3.8 Summary……………………………..…………………………………………….. 27
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.0 Introduction…………………….. ………….……………………………………… 28
4.1 Presentation and Analysis of Data ………….……………………………………… 28
4.2 Data Analysis ……………….…………….………………………..…….………… 29
4.3 Summary of Findings …………………………………………………………........ 35
CHAPTER
FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS
5.0 Introduction………………………………………………….……….……………... 37
5.1 Summary…………………………………………………….……….…………….. 37
5.2 Conclusion…………………………………………………………….……..……… 39
5.3 Recommendations…………………………………………………………………… 39
5.4 Suggestion for Further Research.……………………………………………………. 39
References ………………………………………………………………………………. 40
Questionnaire …………………………………………………………………………… 42
CHAPTER ONE
INTRODUCTION
This chapter contained the
introduction, background of the study, statement of the problem, objectives of
the study, research questions, research hypothesis, significance of the study,
scope and limitation of the study, and historical background of the study area.
Also due to the nature of the subject
matter it been used to designed this chapter as much as possible.
1.0 Introduction
The major
tasks of marketers are to produce the right goods, charge the correct price,
gives the product exposure through distribution networks, and to induce the
consumers to purchase the product. All these marketing skills will be a waste of
effort if consumers fail to become aware of the existence of a product or
service. However, sales promotion is the array of method or techniques that
marketers use to stimulate or improve immediate purchase. In most cases, sales
promotion is used in conjunction with other promotional tools especially
advertising and personal selling to achieve desire result. But unlike
advertising and personal selling, sales promotion comprises a wide variety of
technical promotional tools of short term incentives designed to stimulate a
target market response. (Daniel, 2001)
In other words, sales promotion is one of the methods or ways
by which information about a product or service is passed to potential
consumers. Generally, sales promotion has two main objectives which could be
categorize into broad objective and specific objective. The broad objective of
any sales promotion will include product exposure, attention acquisition and
comprehension of sales promotion, attitude change and behavior while in a
specific objective the target consumers are specified as well as the intended
effect of the promotion upon the target market (Micheal, 1994).After the advent
of industrial revolution, machines were introduced into the production system
to boost the production of goods and services and this brought about large
amount of goods available for sales. In this regard, consumers were exposed to
variety of products and were required to select the product which will give
them the optimum satisfaction they desired according to their needs.
Companies on the other hand were interested in boosting their
image, achieving high sales, maximizing profit and at the same time gaining
competitive advantage over the companies in the same trade. In the light of the
foregoing for a company to excel above its competitors, it has to improve
certain marketing strategies to attract the attention and interest of its
consumers. (Daniel, 2001). In recent years, according to consensus have it that
spending on sales promotion by firms in most developed and some developing
countries of the world has significantly overwhelmed those on advertising. This
is not surprising when its inevitable role in complementing other methods of
product promotion in order to achieve short term gains is considered. Sales
promotion involves gaining consumer loyalty, increase repeat purchase and
facilitate profit maximization. Promotion campaigns are probably the most
important of four marketing mix element: product, price, place and promotion
that can help to solve company’s problem and gain competitive advantage if well
implemented.
1.1 Background of the Study
Basically,
promotion is first introduced in the 4Ps of marketing. The four (4) Ps
represents the marketing mix (Product, Price, and Place and Promotion) and the
promotional mix is the important term used to explain the set of tools which
businesses use to communicate the benefit, source and other information about
their product to customers in order to persuade them to purchase the products.
These tools are advertising, publicity, sales promotion and personal selling,
(Kotler 2001). On the other hand consumer
behavior is another important aspect in the retail business sector. Consumers
are not always normal/simple buyer, (Kotler 2001). Sales promotions have become
a vital tool for marketers and its importance has increased significantly over
the years. Studies that strive to understand the impact of sales promotions on
consumers’ behavior are very important. Also culture has profound implications
on the psyche of the consumers’ behavior, adaptation to cultural values leads
to marketing effectiveness. So to this study, understanding consumer behavior
in a different framework is very useful for the success of an organization.
Clancy, et al (2015) established a significant relationship between
knowledge of it business environment and with effective and efficient marketing
strategy they, firms must possess a detailed, objective understanding of their
own business and the market in which they operate. Extensive review of
literature and focus group analysis revealed nine marketing mix variables;
product (service), pricing, promotion, information, transaction, distribution,
reliability, customer service and personalization that influence client’s
satisfaction. Promotion is one aspect of marketing mix because the consumers
are informed about the new products and their attributes before they develop
positive attitudes toward them. It is a way to persuade and informing the
target market about the product existence and hence like the product. Sivadas
and Baker-Prewitt (2014) are of the view that to satisfy the customer you will
send a word-of-mouth to the others thereby increasing the demand of the
product. Baker (2017), a good promotion involves product, distribution and
price components of marketing. A business' total marketing communications
programmer is called the "promotional mix" and consists of a blend of
advertising, personal selling, sales promotion, brand management, product
placement and public relations tools. It has been established that many
companies apply these promotion mix elements in order to increase sales
revenue. Shrimp (2013) viewed sales promotion as any incentive used by a
manufacturer to induce the trade or consumers to buy a brand and to encourage
the sales force to aggressively sell it. Retailers also use promotional
incentives to encourage desired behaviors from consumers. Sales promotion is
more short-term oriented and capable of influencing behavior. Totten &
Block (2015) stated that the term sales promotion refers to many kinds of
selling incentives and techniques intended to produce immediate or short-term
sales effects. Typical sales promotion includes coupons, samples, in-pack
premiums, and price-offs, displays, etc.
1.2 Statement of the Problem
Major external factors such as socio-economic, regulatory and
technological issues have shaped the structure of communication service and
also the nature of competition within it. The Nigerian telecommunication
industry cannot be isolated from the list of industries where product promotion
and incentives are wholly adopted. The reason for this can be associated with
oligopolistic nature of the industry. In other words, the major challenge of
the telecommunication companies in Nigeria is how to be the choice of majority
of the over 140 million interconnected Nigerians. However, many promotion and
sales incentives adopted by companies these days are so ineffective, dull and
dreary that they bore the prospective consumer rather than instigate them.
Hence, the question that readily comes to the minds are:
ü Are
sales promotion activities a waste?
ü Do
promotion incentive schemes really work?
ü If
they do, what is the extent of their efficacy and how do they affect purchase
Behavior?
However, considering the level of economic resources
committed to these promotional mix and programmer, a good business manager must
weigh the cost of a promotion against the expected increase in sales that will
result from the promotion rather than buying sales at the cost of reduced
profit i.e. carry out a cost benefit of the promotion programmer. A sales
promotion is only effective and appropriate if it can instigate its target and
it is possess a high degree of creativity and flexibility. Obviously since the
afore-stated applies to the Nigerian telecommunication sector, there is
therefore a void to fill by carrying out this study.
1.3 Objectives
of the Study
The aims and objectives of this study is to assess the role of sales promotion on consumer buying decision
case study of Lautai bread Company. Other specific objectives are:-
1.
To
examine whether sales promotion have significant impact on consumer buying
decision in Lautai Bread Company.
2.
To
find out if promotion accelerate the consumer buying behavior in Lautai Bread
Company.
3.
To
determine whether sales promotion influences in consumer buying decision in Lautai
Bread Company.
1.4 Research Question
The following research questions were raised.
1. Does sales promotion have a significant impact on consumer
buying decision in Lautai
Bread Company?
2. Sales promotion accelerates the consumer baying behavior
in Lautai Bread Company?
3. Could sales promotion influences in consumer buying
decision Process in Lautai
Bread Company?
1.5 Research Hypothesis
A hypothesis (plural hypotheses) is a proposed explanation
for a phenomenon. For a hypothesis to be a scientific hypothesis, the
scientific method requires that one can test it. Scientists generally base
scientific hypotheses on previous observations that cannot satisfactorily be
explained with the available scientific theories.
Below are some of the hypotheses formulated to guide the
study.
Hypothesis one:
H₀: Sales promotion
has no significant impact on consumer buying decisions for Lautai Bread
Company.
H₁: Sales promotion
has a significant impact on consumer buying decisions for Lautai Bread Company.
Hypothesis
two:
H₀: Promotion does not influence the consumer buying
behavior.
H₁: Promotion influence the consumer buying decision.
Hypothesis three
H₀: There is no significant
relationship between sales promotion and customer loyalty.
H₁: There is a significant
relationship between sales promotion and customer loyalty.
1.6 Significance of the
Study
Firstly, this research work will be of a great assistance to
business enterprises owners, to help them understand the kind of promotional
tools to use in other to generate more sales or to convince more consumers to
buy more. This research work will be of
contribution to the body of existing knowledge on sales promotion and consumer
buying behavior. This study would be great significance to student and
researchers who want to carry out research on similar topic and further these
researches. Moreover, to the researcher it is part of the requirement for the award
of national diploma in Business Administration and management by Jigawa state
Polytechnic Dutse.
1.7 Scope and Limitation of
the Study
The scope is the boundary set for the study. This can be
geographical area to be study, the period the investigator or the researcher
wishes to look into the subject. The researcher of this study intends to
investigate the relationship between sales promotion and consumer buying
decision in Lautai Bread Dutse Local Government. The researcher is expected to
encounter problems in the course of conducting research in to a problem area,
no matter its nature and scope. Financial constraints were one of the major
factors militating against the smooth conduct of the study. Time that is
universally accepted to be of essence is also another challenge. And more so
this study is to be conducted in Lautai Bread along with other academic
pursuit. Therefore, the limited time may not permit the researcher to undertake
a more depth study into the areas covered.
The content of this project is limited to the role of
material costing inscale industries, in Nigeria other limitations are explained
vividly as
i.
Academic
Activities
The fact that exams are taking place during the conduct of
this research work constrained my research work, as it is not easy to cover
wide areas.
ii.
Time
Time is one of the major factors that constrained the
research work, because the research is to be conducted in specified period of
time and so covering large area is not possible which lead to narrowing the
scope of my work to Dutse Local Government where the company is located.
iii.
Finance
One other problem faced in time of conducting this research
work is finance, lack of funds as a student during the process of conducting
this research as well as high transport fare from one place to another prompted
me to limit my research work.
1.8 Historical Background of
the Case Study Area
Lautai Bread Company
was established in 1999 at Gumel Local Government, along hospital road in Gumel Local
Government, Jigawa state, Nigeria.
The company started
with a small-scale grinding-machine operated for commercial use with only three
staff, year later, the company became expanded to rice processing firm and employed more than thirty-staff.
However, the company as a small-scale firm has five functional departments
that run its production activities. These include the; Administration,
Production, Marketing/Sales, Account and lastly Maintenance Departments, each
carrying out different functions for the company.
Transportation of bread product was
mainly by road and local ways. As the number of automobiles in the state
continues to grow in leaps and bounds and more families in state and neighbours
continue to scarcity of lautai bread products become the order of the day, it
even threatened to cripple the rapid expansion of the economy.
About Lautai Bread Company
Lautai Bread Company is a marketing
service subsidiary of Lautai Bread Company a multinational energy company
operating in more than 5 local government and committed to providing
sustainable products and service products and service for its customers. For
over 24 years, Lautai Bread Company has remain the downstream sector of the Nigeria
with an extensive distribution network of over 5 service stations. Nationwide
and a wide range of top-quality energy products and service. Lautai Bread
Company.
Their Mission Statement
Lautai Bread Company. Is in business
to ensure total customer satisfaction by the creation of quality products and
service delivered with a storage commitment to safety and respect for the
environment and the sustainable development of resource.
The clear Market Leader
Today, Lautai Bread Company. Is a
leader as well as the symbol of good service in the downstream sector of
Nigeria. The company maintains excellent corporate relations with the general
public and investor’s confidence in its performance is tremendous as depicted
by the pricing of its product.
Because Lautai Bread Company knows
that building and sustaining trust is more important than ever in today’s
global business environment, the company strives to conducts its business in a
manner that reflects its passion for top quality products, customer service,
health, safety, and environment. Little wonder why many people chose Lautai
Bread Company every day, it’s a matter of trust.
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