Effect of price on consumers patronage of mary kay perfume

Thesis Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1 &nbsp; &nbsp; <br></b><b>Background<br>of the study</b></p><p><b></b></p><b><p>Perfume product is very important to the health of the<br>human being. It is used for preserving the odor. This product has to be<br>appropriately pricing in order to attract customer patronage and increase profitability.<br>According to (Kotler, 1996: 46) price is the amount of money customers pay for<br>the product or service and the time a place of change.(Mmamel, 1994: 10) in the<br>quality renew of marketing stated that price is the exchange value of<br>goods/services and the value of an item is what it can be exchange in the<br>market place, every product and service has its price. It is through price and<br>payment that firms recover their cost of production and active their margin of<br>profit.Pricing is the monetary expression of value is created on utility,<br>utility is an expression of usefulness while usefulness is based on the<br>potential for need and want satisfaction value and utility are culturally based<br>while needs and want-cultural, psychological, sociological and physiological<br>based, therefore price as an ultimate expression of needs and want satisfying<br>potential of an items of product or services which has cultural psychological<br>economic implication on market. (EdogaAni, 2000: 319) noted that price as<br>perceived quality increase, value increase. Also for a given price, value<br>decrease when perceived quality decrease. For some product price itself<br>influences the perception of quality and ultimately value to consumers. This<br>includes toilet soaps.Pricing is an important and compete element of the<br>marketing mix and generate the highest level of external interference. It is a<br>major determine with volume of goods and services available for the consumer in<br>any economy. Therefore, forms especially those on profit business has to choose<br>with the contain of the environmental variables both external and internal<br>pricing policies and techniques which are available to achieve its<br>organizational objectives. The importance of price in the marketing of Mary-Kay<br>perfume cannot be over emphasized. If an organization wants to maximize its net<br>profit, the right price must me selected for its products price in goods may<br>either be too high or too low to be good. When the price and changed are two<br>high the size of the market for that particular product may be unnecessarily<br>restricted and if the right price where used. The size of net profit is<br>directly related to the effectiveness of price because price usually causes<br>change in market demand for a given product and in turn it revenue and net<br>profit.(Monroe 1994: 210) Noted that the consumer perception of product quality<br>very directly with the price, the higher the price the better the quality is<br>preferred to be. In the words of (Adirika, Ebue&amp;Nnolim 1993: 25) without<br>price there can be no marketing, product may be marched with market but only<br>when buyers or sellers agree on price, buyer or a seller may propose a price<br>but it is not effective unit price is accepted by the owner. In the view of the<br>complex nature of price and important to customers patronage decision the researcher<br>in the study critically examine the effect of piecing on consumer patronage of<br>Mary-Kay perfume in Enugu metropolis</p><p><strong>1.2 STATEMENT OF THE<br>PROBLEM</strong></p><p><strong></strong></p><strong><p>The high mortality rate of manufacturing business<br>especially those firms in the beverages industries in our country Nigeria is a<br>source of concern to the management of business organization and the society in<br>general. Itseems that these forms do not adopt appropriate pricing strategies<br>in the pricing of their products.Today, one can see small manufacturing firms<br>spring up in the city in the guise of manufacturing perfume. Some of these<br>firms after a few months/years of operation start to experience low sales low<br>profit as a result of poor customer patronage caused partly by failure to adopt<br>appropriate pricing strategies.A situation where manufacturers of consumers<br>products and services continue to experience low sales volume or an eventual<br>close up of business as a result of low profit margin arising from the adoption<br>of wrong pricing strategies calls for investigation. The study seeks to find<br>out what pricing strategies are used by as well as those manufacturing firms in<br>the Mary-Kay industry and how far they have helped in goal accomplishment.</p><p><b>1.3 OBJECTIVE OF THE STUDY &nbsp; &nbsp;</b></p><p><b></b></p><b><p>The<br>main objective of this study is effect of price on consumer patronage of MaryKay<br>perfume. But for the successful<br>completion of the study; the researcher intends to achieve the following<br>sub-objectives;</p><p>1. &nbsp; To<br>determine if the price of Mary Kay perfume affect customers patronage</p><p>2. &nbsp; To<br>determine whether customers patronage Mary Kay perfume than others brand</p><p>3. &nbsp; To<br>ascertain the relationship between the price of Mary Kay perfume and <br>customers patronage</p><p>4. &nbsp; To<br>ascertain the level of advertisement carry out by the company</p><p><b>1.4 RESEARCH HYPOTHESES</b></p><p><b></b></p><b><p>For<br>the successful completion of the study, the following research hypotheses were<br>formulated by the researcher; </p><p><b>H0: </b>the<br>price of Mary Kay perfume does not affect customer’s patronage</p><p><b>H1: &nbsp;</b>the price of Mary Kay perfume<br>affects customer’s patronage</p><p><b>H02: </b>customers<br>does not patronize Mary Kay perfume than others brand</p><p><b>H2:</b>customers<br>patronize Mary Kay perfume than others brand</p><p><b>1.5 SIGNIFICANCE OF THE STUDY</b></p><p><b></b></p><b><p>It<br>is believed that at the completion of the study, the findings will be of<br>benefit to the company of Mary Kay and the customers. The study will also be of<br>great benefit to the researchers who intends to embark on research on similar<br>topics as it will serve as a guide. Finally, the study will be of great importance<br>to academia’s, lecturers, teachers, students and the general public.</p><p><b>1.6 SCOPE AND LIMITATION OF THE STUDY</b></p><p><b></b></p><b><p>The scope of the study covers the effect of<br>price on customer’s patronage of Mary Kay perfume. The researcher encounters<br>some constrain which limited the scope of the study;</p><p><b>a) AVAILABILITY OF RESEARCH MATERIAL:</b>&nbsp;The research material available to the researcher<br>is insufficient, thereby limiting the study &nbsp; &nbsp; &nbsp; </p><p><b>b) TIME:</b>&nbsp;The time frame allocated to the study does not<br>enhance wider coverage as the researcher has to combine other academic<br>activities and examinations with the study.</p><p><b>c) Organizational privacy</b>:<br>Limited Access to the selected auditing firm makes it difficult to get all the<br>necessary and required information concerning the activities</p><p><b>1.7 DEFINITION OF TERMS</b></p><p><b></b></p><b><p><b>PRICE: </b><em>price</em>&nbsp;is the quantity of payment or compensation given by one<br>party to another in return for goods or services.</p><p><b>CONSUMER:</b>A <em>consumer</em>&nbsp;is a<br>person or organization that uses economic services or commodities. In economic<br>systems <em>consumers</em>&nbsp;are utilities expressed in<br>the decision to trade or not.</p><p><b>PATRONAGE: </b><em>Patronage</em>&nbsp;is the support, encouragement, privilege, or financial<br>aid that an organization or individual bestows to another. In the history of<br>art, arts <em>patronage</em>&nbsp;refers to the support that<br>kings, popes, and the wealthy have provided to artists such as musicians,<br>painters, and sculptors</p><p><b>PERFUME:</b><em>Perfume</em>&nbsp;is a mixture of fragrant essential oils or aroma compounds,<br>fixatives and solvents, used to give the human body, animals, food, objects</p><p><b>1.8 ORGANIZATION<br>OF THE STUDY</b></p><p><b></b></p><b><p>This research work is<br>organized in five chapters, for easy understanding, as follows</p><p>Chapter<br>one is concern with the introduction, which consist of the (overview, of the<br>study), historical background, statement of problem, objectives of the study,<br>research hypotheses, significance of the study, scope and limitation of the<br>study, definition of terms and historical background of the study. Chapter two<br>highlights the theoretical framework on which the study is based, thus the<br>review of related literature. Chapter three deals on the research design and<br>methodology adopted in the study. Chapter four concentrate on the data<br>collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and<br>recommendations made of the study</p></b></b></b></b></b></b></strong></b></b></b> <br><p></p>