The impact of transportation cost on consumers retails goods
prices (A case study of Gariki Market, Enugu South Local Government Area Enugu
State). The study was carried out to the wholesales and retails.
Data was collected using questionnaire that was distributed to the
wholesalers and retailers in the market.
The generated data was
analyzed using descriptive statistic tool and the major findings made include
i. Cost of transportation affects agricultural
goods retails than manufactured goods retailers.
ii. Profit maximization was not always their desire
for most dealers goes into business in order to avoid being idle.
TABLE OF CONTENTS
Table of Contents
1.1 Background of the
1.2 Statement of problem
1.3 Objective of the Study
1.4 Research Hypothesis
1.5 Significance or rationale of the
and Limitation of the Study
2.0 Literature Review
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Methodology
3.2 Sources of Data
3.3 Primary Sources of Data
3.4 Population of the Study
3.5 Determination of Sample Size
3.6 Instrument for Data Collection
3.7 Testing for Reliability and Validity
3.8 Administration of Questionnaire
3.9 Method of Data Presentation and Analysis
CHAPTER FOUR: DATA PRESENTATION
4.1 Interpretation of Data
SUMMARY OF FINDINGS, RECOMMENDATIONS AND
5.1 Summary of Findings
5.3 Suggested area for Further Study
1.2 BACKGROUND OF THE STUDY
In ancient days as life
started mankind began to nurse the need for basic necessities of life for
physiological satisfaction as food, shelter, safety, among other things.
At first man tried to provide the necessary things to satisfy his
needs to engaging in hunting, fishing, and some selected cultivation and
planting of food crops and frund shelter among trees, shades as well as
applying plants leaves to cover his nakedness.
In the process of advancement
man learnt that he could not provide all his needs by himself.
Then the introduction of exchange process came into
existence. It began as an exchange of goods for goods otherwise called trade by
The person who has a particular product in excess of his need of
that particular moment would look for somebody that has a need for his product,
for an exchange to take place, so the earliest trading or buying and selling
practices was done by retailers through the barter process. When a common
medium of exchange was inverted, the practices of trade by barter became less
relevant in the exchange process. When trade by barter was in existence
buyers and sellers did not take into account, the cost and burden of carrying
the goods around n search of a market.
As money is the standard of measurement, the seller when
calculating the expenses of their business has to add the cost of
transportation of goods from the point of production to the point of
In the ancient times, man used mostly the beast of burden to carry
his product from the point it was produced to the point it will be consumed,
transportation these days has become more sophisticated convenient and faster.
Some of the mode of transportation include transport on railway,
motor – vehicles on road ship, boats, aircraft and others.
The nature of the product as well as location of market and the
type of market will determine the mode of transportation to be used or
employed. Transportation is involved in every level of production and
distribution unit for a product to reach the final consumers industrial
revolution came into place and led to the increase in productive capacity
producers. Most manufacturers and sellers want to enjoy the benefit of
what the economy offered by large scale production and distribution. They
also aspire to explore large markets and operate at competition levels.
They have to manage cost and process to be able to operate with
efficiency and remain in business.
In the Nigerian case, distribution costs are sometimes
viewed as some of the factors that give account for the increasing price of
This study “the impact of
transportation cost on consumers retailer goods prices”, a case study of yam
prices at the Garriki Market, Awkunanaw Enugu South LGA, Enugu State will
discover whether cost of transportation constitute significance proportion of
the price of foods, particularly yams in the Garriki market.
1.2 STATEMENT OF PROBLEM
There has been a continuous
increase in the price of goods and services in Nigeria for many years
now. These price increases have been alleged to be as a result of
increase in the cost of raw materials, transportation, rent, capital and
Among these variable, this study will help to determine the degree
to which cost of transportation affects the consumer goods, particularly.
This study tries to find out the following:
The consumers allege that the increasing in prices is an
indication of the profiting attitude of sellers. On the side of the
sellers, they blame increases in prices on the increasing cost of input
materials and facilitating agents. It becomes difficult to determine
which of the claims, is the truth about increases.
It has been reported that the
increasing price have continue to make many families unable to afford three
square meals daily.
The government, labour and consumers have show concern and made
some efforts to bring the price increase under control without making any
1.3 OBJECTIVES OF THE STUDY
The activities of retailers
in the market affect everybody in the society and mostly consumers are
dissatisfied with the yam market
i. Determine the effects of transportation cost on
the prices of consumer goods particularly yam.
ii. Ascertain, if it is the desire for excessive
profit that influence retailers infixing high prices for goods.
iii. Find out what can be done to alleviate the
problems of increasing prices of goods in the market.
1.4 RESEARCH QUESTIONS
The following research
questions are considered:
1. Does cost of transportation contribute
substantially to the price of yams?
2. Is it desire to make high profit that cause
rapid price increase of yams in the market?
3. Have government efforts at reduction of prices
helped to solve the problems of continuous price increase?
4. Does transportation cost lead to rise in the
price of other category goods and service?
1.5 SIGNIFICANCE OF THE STUDY
This study will be of benefit
to economic analysis who would want to trace the causes of inflation to the
It will also be of immense
use to marketing and management experts who could want some appropriate
solutions to some of their marketing problems.
It will be an interesting
source of material for academicians who are doing research in retail pricing
for yams or for other agricultural based products and for staff.
It will also be a useful
piece of information for government in their regulatory policies of price
control and transport management.
It will be a guiding tool for
business people who are in the distribution sectors because this work will
teach them how to control costs and develop a competitive pricing system.
TERMS AND CONDITIONS APPLY
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