This research work empirically examines the effect of product
quality on consumer brand loyality with particular reference to seven 7up
bottling company Aba. The paper carefully examines the concept of product
quality as a tool for consumers brand loyality. Questionnaires were drawn and
administered to manufacturing personnel of 7up bottling company consumers of
7up products in Aba. Population of 400 was drawn and a sample size of 50% of
the population (200) was employed. Analyzing the answer giving from the
research question and testing hypothesis with the chi-square are statistical
techniques the researcher work therefore concluded from the summary that
quality product have positive effect on consumer’s brand loyality and product
quality increase the demand of 7up product by the consumers. The paper made
some finding which include product quality insure repeat purchase of a product
which leads to consumer’s brand loyality. The conclusion drawn from finding
include, the management of 7up bottling company should lay more emphasis on
product quality in order to gain consumer’s brand loyality in there
organization. Base on the deduction made from the finding recommendation is
therefore, company should always remain focused on product quality in order to
ensure consumer brand loyality.
1.1 Background of the study
1.1 profile of the 7up seven company plc
1.2 Statement of the problem
1.3 objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 scope and limitations of the study
1.8 Definition of terms
REVIEW OF LETERATURE
2.1 The product concept
2.1.1 Meaning of product
2.1.2 types of product
2.1.3 levels of
2.2.1 total quality management (TQM)
2.3 An overview on brand
2.3.1 Benefits of branding
2.3.2 brand strategy
2.4 brand loyality
2.4.1 factors influencing brand loyality
2.5 brand equity
2.6 the effect of product quality on consumer
3.2 Research design
3.3 Population of the study
3.4 Area of the study
3.5 sample and sampling techniques
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Analysis research questions
Test of hypothesis
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Restatement of the problem
5.2 Summary of the
5.5 Suggestions for further studies
BACKGROUND OF THE STUDY
The changes in the Income of consumers and Improvement in their standard of
living with increasing choice of people, have led to the development of
marketing opportunities and product quality development in the business s
world. In a bid to satisfy the consumers, producers, develop new products
to meet the changing needs of the consumes. But a the market grows and expands,
especially, due to the presence of numerous competitors, the need for
product quality becomes an utmost concern to organizations in order
to retain and attract consumes.
Product quality and development is an important function of business
enterprises. This is because products that were satisfactory to consumers
yesterday might not be satisfactory to them today.
Furthermore, if the product quality is satisfactory to consumer the
product is likely to command higher profit margin and consumer
brand loyalty. In the past, many company’s took customers for granted because
the customer may not have had alternative sources of supply or the market was
growing so fast that the company did not worry about satisfying and retaining
its customers, neither are they concern on developing product quality. This is
not longer the case; things have changed in today’s marketing environment.
Kotler (1999): noted that today’s customers are harder and difficult to please.
They are smarter, more price and quality conscious, more demanding, less for
giving and they are been approached by more competitors with equally or better
Thus, The challenges in today’s market is on product quality in
order to retain and maintain consumers loyalty on our product.
Company to study the effect of its product quality in retaining and maintaining
consumer loyalty on her various brands of product.
PROFILE OF SEVEN7 UP BOTTLING COMPANY PLC, ABA
The chairman of Seven Up Bottling Company came to Nigeria in the
year 1929 on October 1st 1960 at
Ijora Lagos and grant total of fourteen cases of Seven up drinks the same
day and was at Ibadan in 1981, another one in 1980 at Aba, 1989 at
Kaduna and finally in Benin 1994.
The Aba Plant which was opened 1980 is located at
Ogor-Hil, Seven up bottling Company Plc bottling company Plc deal on soft
drinks such as Seven up ,Pepsi Cola, Mirinda, Mountain Dew, Mirinda
Soda, Team lemon etc.
The Plant has more than five hundred (500) employees which include male and
1.2 STATEMENT OF THE PROBLEM
7Up Bottling Company is noted as one of the major soft drinks
producers in Nigeria, marketing various brands ,such as Pepsi, 7u,Mirinda, soda
water, Mountain dew, and Teem. In spite of all these range of products,
the company has not yet made the mark as the leader in the soft drink
Industry in Nigeria.
In an oral interview with some staff and distributors of seven up
bottling company, we noted that Nigeria Bottling company prodders of the famous
coca-Cola remains the market leader of soft drink Industry and major
competitors of 7 up bottling company.
The emergency of other soft drink producers, such as Faroz, Limca
etc has compounded the problem of 7up co-operate goal to be the market leader
in the soft drink Industry. In an interview with some distributors of 7up
bottling company, we noted that the major problem of 7up bottling company is
the existence of competing brands especially coca-cola which is
regarded to be of higher quality by some consumers than 7up
product. In other words, this study would attempt to find out if consumer brand
loyalty is based on product quality or not.
OBJECTIVES OF THE STUDY
Great Importance has been attached to product quality in retaining
and maintaining consumer’s loyalty. In view of this, this study is aimed at:
i. Evaluating the effect of product quality in
retaining and maintaining consumers brand loyalty with a special emphasis on
7up bottling company, Aba.
ii. Examining the effect of product quality on the
demand of 7up products.
iii. Deterring the acceptability of product quality
as an important marketing strategy adopted by the company.
iv. Making some recommendations towards the
profitability of product quality as a strategy in retiring and gaining
market share in the midst of severe competitions.
In carrying out this research, some research questions will be
answered and this research questions will aid in formulation of the hypothesis.
The questions are as follows:
i. Dos product quality have a
positive effect on consumer brand loyalty?
ii. Does product quality increase the demand of a
iii. IS product quality always embarked upon when
there are severe competitors in the market?
In the course of this study, the following hypotheses will be
product quality does not have any positive effect on
consumer brand loyalty.
Product quality has positive effect on consumer brand
Product quality does not increase the demand o a
product quality increase the demand of a product by
product quality is not always embarked upon when
there are severe
competitors in the market.
Product quality is always embarked upon when there
is severe competition in the market.
1.6 SIGNIFICANCE OF THE STUDY
The importance and benefits to be derived from this study are enormous
and are outlined below:
1. This study prepares me for the tasks ahead in
deterring the effect of pro duct quality on consumers brand loyalty.
2. This study is important to me
because it serve as a partial fulfillment of the requirements for the award of
higher National Diploma (HND).
3. This study would assist companies
especially the 7up Bottling company to examine the cost involved and the
benefits derived from product quality in order to ascertain if they should continue
with the strategy of product quality in order to gain consumer’s brand loyalty
and a larger marketer share in the soft drink industry.
4. This study is designed to find out or
ascertain what parentage of the consumers are buying 7up product as a result of
its product quality.
5. It is hoped that the result of this study will
encourage manufacturers and institution that might not have used product
quality cum product development as a strategy or tool to gain
consumer brand loyalty to do so.
6. This study will be beneficial to individual,
business organizations, Institutions, manufacturers, and government officials
etc who wish to know the effect of product quality on consumer brand loyalty.
7. This study will serve as a source of secondary
data to researcher in field of product quality, product development and
1.8 DEFINITION TERMS
7UP BOTTLING COMPANY: A
legally register business s name licensed to produce soft drinks in Nigeria.
ABA: A commercial Town in Abia State of Nigeria.
BRAND: A name, term, sign, symbol, design or combination of
these, intended to identify the goods or services of one seller or group
of seller and to differentiated them from those of competitions.
BRAND LOYALTY: The feeling of trust and satisfaction that make a
customer always buys the same brand of product.
CASE STUDY: A true or invented business situation used in business
training to practice decision making.
COMPANY: legally registered Business ventures
CONSUMER: A person or company who buys and uses goods
EFFECT: A result of something
PRODUCT: Anything that can be offered to a market for
attention, acquisition , use or consumption that might satisfy a
want or need.
QUALITY: What something is like or how good or bad a product
CO-OPERATE GOAL: Top management set objective/target.
MARKET SHARE: The percentage of a total market which the
sales of a company product cover.
INDUSTRY: A group of companies making the same type of
product or offering the same types of services.
PROMOTIONAL TOOLS: materials used in promotion e.g display
material and sales literature.
TERMS AND CONDITIONS APPLY
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