CONSUMER BUYING BEHAVIOUR: IMPLICATION FOR MARKETING FIRMS

CONSUMER BUYING BEHAVIOUR: IMPLICATION FOR MARKETING FIRMS

(A CASE STUDY OF UAC FOODS PLC, ABUJA BRANCH)

ABSTRACT

The topic of this research work: “Consumer Buying Behaviour: Implication for Marketing Firms.  A Case Study of UAC Foods Plc Abuja”.  The project work tries to review detail the understanding of how consumer generally behave.  To make the research complete, data were collected through the use of questionnaire.  The sample used for this research was 12 respondents randomly choosing from the UAC Foods Plc. 

CHAPTER ONE

1.0     INTRODUCTION

          The aim of marketing is to meet and satisfy target consumers needs and wants, the field of consumer behavior studies how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and desires.

          Consumers make many buying decisions every day.  Most large companies research consumer buying decision in good details to answer question about what consumers’ buy, where they buy, how much they buy, where they buy and why they buy.  Marketers study actual consumer purchases to find out what they buy, where and how much, but learning about the why of consumer buying behavior is not so easy. Consumer may say one thing but do another, this is because the actions and reactions of those consumers only vary but quite unpredictable, their wants are ever changing in nature and this has accounted for different experiences in the market.

          In understanding consumer behavior, one has to note the nature and acts of purchasing itself.  Purchasing activities are quite complex and consumer not only collect information and determine the selection criteria but also reach decision concerning the attribute of the product, styles, size, colour and retail agent.

          The study of consumer behavior is so complex that even the behavior scientists have divergent views in this regard.

          The buying behaviors of a consumer depend on some factors as rate of consumptions, seasonality nature of goods, economic conditions as well as characteristics of the said product.  How consumers generally buy remain the key task facing the marketers to enable them design effective marketing programmes.

1.1     HISTORICAL BACKGROUND OF THE STUDY

          United Africa Company (UAC) Food was incorporated in 18 centuries known as Royal Niger Company and later it was changed to UAC.  In early 19 centuries still partly owned by British and some wealthy Africans.  It means operation then was to assist the bourgeoisies that is the British owner in transferring of cash crops such as palm oil, timber etc to the British empire.

          Subsequently, in 1973 the indigenization decree gave room to many Nigerians to be part owner of the conglomerate thereby making it a public liability company with no restriction with the cash capital.

          The company’s corporate headquarter which is still been known as Niger House is situated in the heart of Lagos. After the indigenization decree the new management gave room for additional division such as the African Timber and Palmwood (ATP), King Way Stores,  Kings Way Randavo, Tractor and Equipment, Niger Motors known as General Motors (GM), Perabin (Part Electrical Refrigeration and Air-conditioning).

          Other subsidiaries such as Grand Cereals and Mill Nigeria Limited (GCMNL) Chemical and Allied Product Limited (CAPL), Private Pharmaceutical Products (PP & P), Prudent Bank.

          Fully owned UAC Foods are Mr. Biggs, General Motors (GM) formally Niger Motors, Ikogosi Warm Spring Water (Cossy Water), UNDC (Proper Division).

          All of the above are what make up UACN Plc out of all these divisions some have parked up due to poor performance and financial difficulties and others resold.

          United African Company (UAC) core business areas include food processing and production, motor vehicles assembling, air conditioning maintenance and services and refrigeration, property development, banking services and marketing of all the produce.  UAC have companies scattered around all the looks and crane of Nigeria.

i.                   Ice-cream plant Onitsha

ii.                 Gala Factory Ojota

iii.              Bread Factory Lagos, Port-Harcourt, Suleja

iv.              Meat Factory Lanlate (Eruwa) Oyo State.

v.                 Ikongosi Warm Spring Water Ekiti State.

vi.              Grand Cereal and Swam Water both in Jos.

vii.            UAC end product ranges from fast moving consumer goods such as Mr. Bigg’s varieties, Gala, Supreme ice cream, Satis, Cocon chips, Funtime Plantain chips, Bumpus Park, Delite, Cocktail Gala, Vengs Ways fish rolls.

viii.         General Motors (GM) include Isuzu Tiger, Isuzu NPR Kocliak, Trust T and A, marketing of caterpillar parts and earth moving equipment such as caterpillar brand.

Grand Cereal include pure cotton seed oil, animal feed, vital feed and others.

          All these combined together are various brands of product from UAC and this is what is it a leading conglomerate in Nigeria.

1.2     STATEMENT OF THE PROBLEM

          Generally speaking, consumer buying behavior imposes numerous threats to marketing firms.  These difficulties stems from the fact that firms in bid to market their products/services, must strives to understand the buying patterns of consumers.  These problems form the entire trust of this project work.

          The expectation is that at the end of this work, firms would have adjusted their marketing pattern to accommodate the every changing, pattern of consumer, these problems include:

1)      The problem of understanding who the occupants of the market are.

2)      What consumers generally buys, how, where, when and they even buy at all.

3)      That problem of knowing the influences in the consumer buying decision.

4)      The problem generated by various forces at work in the consumer buying environment economics, socio-cultural and psychological factors.  Again, this project work is embarked upon to proffer solution to these problems.

1.3     OBJECTIVES OF THE STUDY

          The objectives of the study hold great interest for us as consumer and marketers.

          It is important for us as marketers to recognize why and how individual make their consumption division and the factors influencing their buying behavior.

          This project work will help to educate the researcher and as well enhance his knowledge about consumer buying behavior and no doubt marketers who understand consumer behavior have great competitive advantages to the market place.

1.4     STATEMENT OF HYPOTHESIS

          It serve as a guide towards the realization of the aims and objectives of this research work.  The researcher has these basic facts which she will put to test.

          These facts shall be denoted by:

Ho:    For Null hypothesis

Hi:     For Alternative hypothesis

HYPOTHESIS I

Ho:    Consumer buying behavior has no impacts on marketing firms.

Hi:     Consumer buying behavior has a lot of impacts on marketing firms.

1.5     SIGNIFICANCE OF THE STUDY

          The significance of study of this nature cannot be over emphasized.  The topic seeks to be of relevance to marketers, organization as well as individual who stands to benefit from the research work.

          This research work would benefit prospective readers and future researchers who may wish to use this work as a reference point to understanding why and how individual make their consumption decision.

1.6     SCOPE OF THE STUDY

          This research work is carried out so as to understand the buying behavior of the consumer as well as factors influencing their decision, but due to time and financial constraints, the researcher limited herself to United African Company (UAC) as the case study of this research work.

1.7     LIMITATION OF THE STUDY

          In the course of making this research work, the researcher experienced the following constraints.

1)      Secrecy: The secrecy of an organization was a constraint because all organizations will agree to give out required information because of fear they may have against competitors.

2)      Time and Financial Constraints were the greatest obstacles to research work, no time for gathering information as required for project.  Therefore, the researcher make use of the limited resources under investigation also affect.

1.8     DEFINITION OF TERMS

CONSUMER:  Person who buy goods and uses services.

CONSUMERISM:  The belief that a society or individual benefit from using a large quantity of goods and services.

BUYING:  The ability to obtain.

BEHAVIOUR:  Individual psychological make up and the influence of others.

INFLUENCE:  The power of affect action, character and beliefs.

PERCEPTION:  Process by which individual become aware (through sense of sight, hearing).

MOTIVATION:  Drives, urges or desire.