CHAPTER ONE
1.1 INTRODUCTION
In our economy today, wants satisfaction has generally
replaced the necessity of fulfilling only basic physiological needs. This
however has exposed Nigerian consumers who by virtue of circumstances,
education and awareness are becoming enlightened as the day go by to numerous
influences and factors which propel them to accept a product or develop a brand
loyalty.
Consumer’s attitude towards a product according to Kotler and
Armstrong (2008:143) is being shaped and influenced by psychological factors
such as motivation, perception, learning, personality, attitude and belief.
Consumers are also influenced by certain product features and characteristics
such as product style, quantity, quality design, colour, packaging and labeling.
Picking it up form there, Nebo and Onyeke (2000:65) Pointed
out seller centered factors like image, credibility, price, advertisement and sales
promotion. Situation centered factors also play a role in determining what the
consumer buys; such as age, income, social group or reference group favourable
brand attitude, in doubt is determined by this factors.
Ultimately, marketing is the art of creating, attracting and
keeping profitable customers., in order to covert occasional purchasers into
brand loyalists, habits must be reinforced by appealing to the afore-mentioned
factors that shape consumer purchase attitude, because they hold the key to
success or failure of any product.
Against this backdrop, consumer acceptance, preference and
loyalty are very important to manufactures of consumer products. Outstanding
and successful companies have priotized this by building and developing army of
consumer loyalists who are less sensitive to price change and competitive
promotion. This set of consumers are ready and willing to search for their
favorite brand.
In essence, the topic of this research study stemmed form the
researchers deep desire to personally investigate and unravel the success of
Nigerian first indigenous beer “STAR LAGER BEER”. Star brewed and bottled buy
Nigerian Breweries PLc is synonymous and comes to mind once beer is mentioned
among the youths.
The imagination of why “star Lager Beer” is Nigerian’s most
popular beer will continue to hover until the end of this research study.
1.2 STATEMENT OF THE PROBLEM
In today’s highly competitive, dynamic and challenging
business environment, the level of consumer product acceptance and preference
are critical to survival of business. Also the unpredictable and transient
nature of consumers which studies have shown are more complex than a machine
cannot be over-emphasized. Each day consumers are becoming more rational and
speculative in their spending, willing to spend their hard earned money on
product they believe will give them value and maximize their utility.
Interestingly, in the midst of all these uncertainties, one
company, one product have continued to soar high by placing and positioning an
indelible products in the minds of Nigeria beer consumers. Nigerian Breweries
plc, brewers and bottlers of “STAR” is worth celebrating. STAR, the first
indigenous beer in Nigeria, and the only beer believe to have assumed the
status of a national icon.
According to the marketing directors of NB PLC Mr. Woulter
Fijnaut, star has about 80 percent of the market share. These in no doubt,
means that star has a wide range of consumer’s acceptance and loyalty.
The factors responsible for this phenomenal success of STAR
beer against other competing brands of alcohol is the rational behind this
study which will go a long way in exposing other hidden factors influencing
consumer preference and acceptance of this brand.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study include;
i. To unravel the reason(s) for consumers wide acceptance and
preference of star lager beer against other competing brands;
ii. to ascertain and determine the effect of promotion in a
competitive marketing environment;
iii. to determine if quality adds to consumer acceptance and
loyalty to a brand;
iv. to determine if packaging and branding play a role in
influencing consumer loyalty to a particular brand;
v. to also ascertain other factors that give a product an
edge over competing brand; and
vi. to make necessary recommendation in line with the
findings;
1.4 RESEARCH HYPOTHESES
Ho: The leadership stand of star lager beer does not
influence the rate at which it is consumed and purchased.
Hi: The leadership stand of star beer influences the rate at
which it s consumed and purchased
Ho: That advertisement and sales promotion do not influence
brand acceptance and loyalty of star beer.
Hi: That advertisement and sales promotion influence brand
acceptance and loyalty of star beer.
Ho: The quality and taste of star beer does not positively
influence the patronage of the product and its acceptance
Hi: The quality and taste of star beer positively influence
the patronage of the product and its acceptance
1.5 RESEARCH QUESTIONS
The research intend to give answers to the following
questions.
1. Does packaging and branding influence consumer acceptance
and loyalty to a particular product.
2. Do promotional activities influence consumer acceptance
and loyalty to a particular product.
3. Does psychological and sociological factors play a role in
influencing consumer acceptance and loyalty to a particular brand.
1.6 SCOPE OF THE STUDY
The study is mainly about consumer acceptance and loyalty to
a product; STAR LAGER BEER, brewed and bottled by Nigerian Breweries Plc (NBL)
was used as the product of study: While consumers and retailers within Enugu
metropolis were used for the study.
The areas covered for the survey included, new Heaven G.R.A,
Uwani, New layout, Abakpa. Independence layout.
1.7 SIGNIFICANCE OF THE STUDY
This research study hopefully will be of great assistance to
the marketing department of Nigerian Breweries Plc (NBL). It will be a
practical guide in retaining there market share.
Furthermore, the study will demonstrate that promotional
activities especially advertising and sales promotion remains a variable and
indispensable tool in respect of consumer acceptance, loyalty and preference of
a product over another, not also over-looking the importance of branding.
Finally, the study will serve as a reliable guide and good
source of secondary data on this topic for future researchers.
1.8 LIMITATIONS OF THE STUDY
The gathering of all needed data for a research study is
usually met with a number of constraints. The researcher encountered multiple of
problems in the course of this work.
Firstly, some consumers thought that the research was a staff
of Nigerian breweries and always demand for a tip before accepting to fill the
questionnaire.
Secondary, the researcher could not gain access in to AMA Breweries
due to some bottleneck bureaucracy though he was later supplied with relevant
materials.
Finally, time and financial constrain also derailed the study.
1.9 DEFINITION OF TERMS
The beginning of wisdom is the definition of terms”
(Socrates, 470?-399BC)
i. CONSUMER
A consumer is one who buys good or uses a service. Onyeke and
Nebo (2000:42) defined a consumers as people acting as individuals or in small
groups who purchase goods and services to satisfy their personal and household
consumption needs as opposed to individual or people who buy and use items for
commercial, business, organizational, government or institutional purpose.
ii. Product
Kotler and Armstrong (2008:225) defined a product as anything
that can be offered to a market for attention, acquisition, use or consumption
that might satisfy a want or need. Products include more than just tangible
goods.
Broadly defined, product will include physical objects,
services, events, persons, places, organization, ideas, or mixes of these
entities.
iii. CONSUMER PRODUCT
Having defined consumer and product, in extension consumer
products are products and services bought by final consumer for personal use or
consumption. This set of product are classified further based on how consumers
go about buying them.
- The consumer product includes
- Convenience goods
- Shopping goods
- Specialty goods
- Unsought goods.
iv. BRAND
The American marketing Association defined a brand as a name,
term, sign, symbol or design, or a combination of them intended to identify the
goods or services of one seller or group of sellers and to differentiate them
from those of competitors.
v. Brand loyalty
Brand loyalty is the ultimate goal a company set for a branded
product. Nancy and Hofmann (2007: File C5-54) defined brand loyalty as a
consumers preference to buy a particular brand in a product category. It occurs
because consumers perceived that the brand offers the right product features,
images, or level of quality at the right price.
Department | Marketing |
Project ID Code | MKT0138 |
Chapters | 5 Chapters |
No of Pages | 83 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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