THE EFFECT OF CONSUMER’S PERCEPTION IN MARKETING OF CONVENIENCE GOODS IN THE FEDERAL CAPITAL TERRITORY ABUJA

THE EFFECT OF CONSUMER’S PERCEPTION IN MARKETING OF CONVENIENCE GOODS IN THE FEDERAL CAPITAL TERRITORY ABUJA

ABSTRACT

This study examine the effect of consumer’s perception in marketing of convenience goods in the Federal Capital territory Abuja. specifically the study seek to identify the view of consumers towards marketing of convenience goods in the federal capital territory Abuja, ascertain the factors affecting consumer’s perception in marketing of convenience goods and determine the role of marketing of convenience goods on the buying behavior of consumers. In order to ensure accuracy, objectivity, clarity and ease of understanding, this collected data will be edited, interpreted and tabulated using percentage explanations and place them into table for easy comprehension. The instruments used for data analysis are simple percentage and chi-square. The simple percentage was used for data presentation and analysis, while chi-square was use to test the hypothesis. The result from the study indicate that the deceptive nature of marketing does not significantly affect consumer’s perception in marketing of convenience goods. It was discovered that a well-defined marketing of convenience goods will contribute immensely on consumer’s perception of convenience goods and their buying behaviour. There is a need for tailor made supervisor of its sales force distributors at all levels with a view of calling overhead expenses. For the purpose of creating, retaining and maintaining loyalty of actual potential customers. Hence there is need to adopt a well regulated form of its sales promotion activities.

CHAPTER ONE

INTRODUCTION

1.0       BACKGROUND OF THE STUDY

Marketing is any paid form of non-personal presentation and communication of ideas, goods and services by an identified sponsor to the general public. Nothing happens in the business until something is bought and sold. The saying goes that “in the word of commerce bringing the buyer and the seller together is the role of marketing or advertising”. In the same taken as in above marketing is needed to reach a wider market by making a favorable influence on the consumer buying behavior. The basic function of marketingis to communicate information about product or services, its features fill the communication link between the producers and the consumers. As one of the important elements of marketing communication mix, any business firm use a powerful strategy in supporting other marketing activitiesincreasing awareness and stimulating demand for a product which consequently result in appreciable returns in the total sales of the firm (Blackwell et al. 2006).

Marketing is obviously not a new activity to this modern society. It is an old practice that could be dated back from the binging of history. There are proves that indicates that signs were used in the ancient days to announce the coming of festivals, meetings, market days, death of important personalities, events and other useful information in the town. For example, people in the eastern part of Nigeria painted their walls with picture to announce the beginning of certain events. To understand the history of marketing and advertising, it is grouped into stages:

TRADE MARK:

Trade marks were used by early craftsmen who make certain products. Product could be sold except they carry the trade mark of the person that made them. From this one should know how trademarks acted as a sort of advertising for crafts men who were known for better quality product.

SIGNS

Early trade used signs for advertising purpose. Commercial message were printed by those trade to signify the product that were ready for sale. The painted message which might be different colours, it tells where exactly to buy a certain product without necessarily going round the town looking for where this product is sold.

TOWN CRIERS

The development of advertising is also traced to the use of town criers, people were paid to go round the town on the streets to announce the sales of products as well as informing people about important news and public events. This form of advertising is still practiced today in some of our villages in Nigeria and other countries.Today, advertising comes in different forms such as persuasive, informative, competitive, direct and indirect advertising e.t.c as a result of the advancement in sciences and technology, these include the radio, television, news papers, outdoors and direct mail advertising.

Advertising is an important element of the promotional mix and is a paid and non-personal form of presentation and promotion of ideas, goods or services by an identified sponsor. Most product advertisement messages are either informative, persuasive or meant to remind consumers of the need for them to sustain the consumption of the advertised product. Producers adopt several advertising media to reach both existing and prospective customers by influencing their perception, awareness, attitudes and ultimately their purchasing behaviour in order to maintain and expand their market and sales volume for their products. But for firms to succeed, they must have an understanding of why prospective consumers behave under certain conditions, and to know product attributes that consumers consider in influencing their purchase behaviour.

Adelaaret. al., (2003), reported that attitude-towards-the advert is the most influencing theory in advertising research which affects the consumer’s belief, and in turn influences the consumer to develop a specific attitude towards the good or service. Therefore, the aim of marketing is to create awareness and develop positive attitude towards the product in the mind of the consumers until they eventually purchase the commodity (Goldsmith and Lafferty, 2002).

Consumer perception involves the study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, socio-psychology, anthropology and economics (Bhattacharya & Sen, 2003). It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling convenience products also play an important role in swaying the decisions of consumers. With the increasing rise of marketing and e-shopping and its long-term potential in the retail industry, many players are interested in the changes that it will bring about. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation or to fulfill their internal psychological needs, such as the need for change or newness. It also provides consumer more information and choices to compare product and price, more choice, convenience, easier to find anything online. This study examined the effect of consumer’s perception in marketing of convenience goods in the Federal Capital Territory Abuja – a case study of Nigeria Unilever Plc.

1.1       HISTORICAL BACKGROUND OF NIGERIA UNILEVER PLC

Unilever Nigeria Plc is a publicly listed company with trading and manufacturing interest in the consumer goods market. In 2014, it was listed among the top 20 most valuable companies quoted on the Nigerian Stock Exchange.

Unilever history in Nigeria dates back to 1923 when Robert Hesketh Leverhulme opened a trading post in Nigeria under the business name, Lever Brothers (West Africa) Ltd. The firm was primarily engaged in trading of soap and in 1924, the name was changed to West African Soap Company. Sensing opportunity in the country, the firm opened a soap factory in Apapa in 1925. The company later expanded into the production of food products, it opened a new soap factory in Aba in 1958 and changed its name to Lever Brothers Nigeria Limited in 1955. In 1960, Lever Brothers introduced Omo detergent into the market, the new product gained traction among buyers, prompting the firm to commission a factory to manufacture Omo detergents in 1964.

In compliance with the indigenization decree of 1972, Unilever became a publicly listed company in 1973, selling 60% of its shares to the Nigerian public. The company became a Nigerian owned firm. The change in equity ownership did not affect the firm’s growth. In 1982, the firm began producing edible products such as Royco, Blue band and Tree top in Agbara, Ogun State.

In addition, the company went through a period of mergers and acquisition; acquiring Lipton Nigeria in 1985 and later merging with Vaseline manufacturer, Chesebrough Products Industries in 1988. During this period, the company embarked on a backward integration scheme in order to source its raw materials locally. This business decision led the company to invest in crop production and oil palm milling. The company also invested in a tea plantation in Mambilla to provide raw materials for Lipton.

In 1995, Lever Brothers, 40% owned by Unilever merged with Unilever Nigeria Limited, a subsidiary of the Unilever U.K. The merger gave Unilever control of the newly merged entity, this was the first time since the indigenisation decree was scrapped that a multinational will have majority equity in a quoted Nigerian company.

Unilever Nigeria Plc is involved in the manufacturing and marketing of foods and food ingredients as well as home and personal care products. The company has manufacturing plants in Agbara, Ogun State and Oregun, Lagos State.

1.2       STATEMENT OF PROBLEM

Marketing of convenience goods which are those goods that the customer purchases frequently, immediately, and with minimum effort calls for creation of awareness by educating and enlighting customers about a firm product. This will enable the firm to match competition in the market place. It as well enable firms to create enabling relationship with their present customers by reminding them about the firms offering.

However the story is not encouraging after taking a look at the current mode of marketing in the market place with respect to consumers’ perception about the marketing process. Marketing or advertising tends to discourage most customers today as most firms employ the use of deceptive message/nature, it leads to impulse buying and it also gives room for offensiveness. Consequently any firm that fails to consider the above listed problems will definitely face the following challenges: it will not be able to match competition, it will lose customers and it will also witness low market share.

1.       OBJECTIVE OF THE STUDY

The general objective of this study is to examine the effect of consumer’s perception in marketing of convenience goods in the Federal Capital territory Abuja.

At the other hand, the specific objectives are:

1. To identify the view of consumers towards marketing of convenience goods in the federal capital territory Abuja.
2. Ascertain the factors affecting consumer’s perception in marketing of convenience goods
3. To determine the role of marketing of convenience goods on the buying behavior of consumers.

1.4       RESEARCH QUESTIONS

1. What are the views of consumers towards marketing of convenience goods in the federal capital territory Abuja?
2. What are the factors affecting consumer’s perception in marketing of convenience goods?
3. What are the role of marketing of convenience goods on the buying behavior of consumers?

1.5       STATEMENT OF HYPOTHESES

            HYPOTHESIS I

H0: The deceptive nature of marketing does not significantly affect consumer’s perception in marketing of convenience goods

H1: The deceptive nature of marketing does not significantly affect consumer’s perception in marketing of convenience goods

            HYPOTHESIS II

H0: Marketing of convenience goods have no significant effects consumers buying behavior.

H1: Marketing of convenience goods have significant effects consumers buying behavior.

1.6         SIGNIFICANCE OF THE STUDY

The significance of the study is to examine critically the effects of consumer’s perception in marketing of convenience goods in the Federal Capital Territory Abuja with particular references to Unilever Nigeria Plc.

The study will also encourage managers of organization and guide the company or organization and its potential consumers with the perceptions of consumer views towards marketing of the company’s products and how it affects consumer buying behavior.

Finally this research work research work will be of tremendous importance to the researcher since it is a partial requirement for the award of Higher National Diploma (HND).

1.7         SCOPE OF THE STUDY

The study covers the theoretical issues of consumers perceptions in marketing of convenience goods. This study is limited to Unilever Nigeria Plc Abuja, the Federal capital Territory.

1.8       LIMITATION OF THE STUDY.

The scope of the study was limited due to the following:

1. Most company documents are kept in top secret and as such very vital portion of information may not be disclosed. There agree information may only prove inadequate for a project of this kind.
2. Finance: due to non-availability of funds to undertake research to the fullest satisfaction the questionnaire administered are few for the respondent.
3. Time: the time allocated for this research work was not enough as a result of that the researcher could not covers as much as expected due to time constraint.

1.9       DEFINITION OF TERMS

CONSUMERS: is an individual who buys products or services for personal use and not for manufacture or resale.

MARKETING:It is a social and managerial process by which individuals and groups obtain what they want through creating, offering and exchanging product of value with others.

MARKET: Refers to the group of customers or consumers organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product.

CONSUMERS BEHAVIOR: It is the study of how individuals, consumers, groups or organization select buy, use  and dispose ideas, good and services to satisfy their needs and wants.

ADVERTISING: it is any paid form of non – personal presentation and promotion of ideals goods and services by an identified sponsor.