In this project research study (work) is a very crucial study for
the Nigerian Commercial Banks, this study was actually motivated by the
necessity of effects of development of new consumer credit products in Nigeria
commercial banks. To solve the research problem, both primary and secondary
data were collected. The research instrument used in collecting data were
interview and questionnaire, the respondents were bank staff and some bank
customers of the user of the product. The population and population sample is
50 and 40. Also in organizing and presenting data collected, tables,
frequencies, charts and percentages were used. The various hypothesis
were tested using the chi-square. Data analysis and interpretation gave
the following findings:- The problems encounterable in the process of product
development have effects on the commercial banks. The consumer credit products
of commercial banks in Nigeria have not been satisfying their customers’ needs.
The education of customer on the usage of products and their level of awareness
has effect on the bank’s credit products development. Based on the findings,
the researcher recommends that: The management of our commercial banks should
try as much as possible to equip their research and development department and
for those that have not, they should try to establish one. There should
be increase in product awareness mechanisms such as good adverts, seminars for
bank customers on product usage by the bank customers etc. These should be a
good research before embarking on a new product development. In conclusion of
the whole matter, one commercial banks customers credit products have not been
satisfying their customers’ needs but if improved at an appealing price will
satisfy their customers’ needs.
TABLE OF CONTENTS
Background of the Study
Purpose of the
Significance of the
Scope, Limitations and Delimitations
CHAPTER 2: REVIEW OF RELATED LITERATURE
Definition of new Consumer Credit Products
Some of the Nigerian commercial banks services (products)
Intercontinental bank products and services and credit products
Problems of financial services marketing of Nigerian
Commercial banks’ new consumer credit products
Effect of the new consumer credit products in Nigeria
Ways of improving marketing banks financial services (products)
Marketing mix As A Tool To Influence Target Market On Consumer
Credit Products in
Pricing and product cycle
Reasons for customers dissatisfaction with Nigerian
RESEARCH DESIGN AND METHODOLOGY
Area of Study
Sources of Data Collection
Sample and Sampling
Method of Investigation: Method of Data Presentation
Method of data
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
CONCLUSION AND RECOMMENDATION
Appendix - Letter
Designed Interview Questionnaire
Background of Study
As far back as 1892 when banking started in Nigeria, the need for
the development of new consumer credit products was not much needed as few
banks then were in operation. But as of 1986 when the Structural
Adjustment Programme (SAP) was introduced by the federal government of Nigeria
a new era characterized by deregulation of the banking system took place.
Worse still, deregulation gave room for the formation and licensing of numerous
new command and merchant banks. This however brought what we call aggressive
competition among the commercial banks, which finally led to the introduction
of new consumer credit products in the Nigeria commercial banks.
This period brought a total disappearance of armed char banking in
Nigeria. As new banks sprang up, heavy competition becomes the order of
the day. This with commercial banks and about 190-branch offices in 1960,
there emerged no fewer than 124 commercial and merchant banks (with 2076
branches) as it the end of December, 1994 according to report released by the
Central Bank of Nigeria.
As this new face of change took place, the only way out is to map
out strategies for new credit products in order to retain customers
satisfaction and their stay, the only way out is to introduce new products
changes in the market, a bank is enable to;
Keep its old customers
Attract new customers
Lesson its risks
Be strong to face competition
Building up and broaden its corporate image
Utilize some idle resources and waste material
Increase consumers selecting and satisfaction and
Increase its revenue base for consequent profitability and growth.
This research work is aimed at
identifying the consumer and its products available in Nigeria commercial
banks, how they could be developed, to know some of the task of marketing
management of new consumer credit product to the Nigeria commercial banks, to
find some of the bank marketing management philosophies/concepts that will help
conduct their new consumer credit products activities, taking intercontinental
bank Plc as a case of study.
Statement of Problem
Commercial banks in Nigeria
have been introducing new brand of consumer credit products to enhance
effective banking service. Each month that comes is followed by wonderful
consumer credit product in Nigeria commercial banks. Despite this,
customers are not yet satisfied with the credit products introduced in the
financial market. Also, many people (customers) don’t have knowledge of
some of all these old consumer credit product and still, new ones are been
introduced, more still, those that have the knowledge of such existing ones
don’t patronize them. What are the main reasons why people don’t pass
such new credit products despite all these innovations?
Purpose of the Study
This work titled “an appraisal
of the new consumer credit products in the Nigerian commercial banks: a case
study of intercontinental bank plc” has the purpose of critically and
positively assessing the impacts of the development of consumer credit products
in the Nigeria Commercial Banks, in order to properly fulfill this main
purpose, this paper has the following objectives they are as follows:
To identify the difficulties encountered in the process of produced development
in commercial banks.
To determine whether bank customers are really satisfied with the banks’
product or not and why? (Product quality).
To find out the best ways to educate the customers on the use of the bank
credit products and the best way to create awareness of the existence of such
To identify the best way the banks consumers credit products market could be
segmented for a fruitful venture.
To equally offer possible solution or suggestions addressable to such problems
and or make recommendations that may lead to better banks customer relationship.
Transforming the above
objective in 1.2 into research questions we can have in the resource question
are as follows:
Have commercial bank credit products been satisfying their customer’s needs?
Do the difficulties encountered in the process of products development have any
effect in Nigerian Commercial Banks?
Do customer education on the usage and level of awareness has any effect on the
consumer credit products.
Does improper market segmentation of the new consumer credit products have
effect to the marketability?
Significance of the Study
Having seen that there is
aggressive competition among the Nigerian commercial banks, this research will
help bank managers and their staff to know that, they will only retain their
customer through the process of establishing unique consumer credit product
more still, the project is to let bankers know that it is not all products that
is of good interest to the customer also, the project will show the best way of
making bank credit products known to their customers moreover this project will
equally ex-ray the main reason behind non-patronage of bank new consumer
products in the financial market.
This project will equally show
non-quality of good banking services leads to bank failure and there fore seek
for means of avoiding it occurrence. Finally, this project serves as a
partial fulfillment for an award of National Diploma (ND) Certificate in
Banking and Finance.
A hypothesis is an intelligent
guess, the following are my research hypothesis based on my research topic
which says “An Appraisal of the new consumer credit products in the Nigerian
commercial banks” a case study of intercontinental bank plc.
The commercial banks new credit
products have not been satisfying their customer’s needs.
The commercial banks new credit
products have been satisfying their customer’s needs.
Definition of Terms
An organization or place that provides a financial service.
Deregulation: The systematic dismantling of
regulatory controls and operational guideline which were considered to have
hindered orderly and systematic growth of banks
Customer credit products: This refers to any service which the bank
can offer to the customers for consumption.
services: These refer to the various services
rendered by the operators in the financial markets.
alternation of adjustment on how things have been before
Product development: This is the conversion of the idea on
paper into physical product with need satisfying attributes.
Marketing mix: This is one of the memories used by
marketing people to remind themselves of the marketing variables which they use
in implementing their marketing decisions.
hypothesis is an intelligent guess of solution to the research problem.
Null Hypothesis: It posits that “no difference” or relationship exist
between two variables.
Alternative Hypothesis: It
posits that difference or relationship exist between two variables.
A system of rule governing formal occasions.
Fund: A sum of money saved or
made available for a particular project, objective or purpose.
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