Sales promotion and consumer buying decisions: a case study of some selected local government in zone a. of niger state

Thesis Overview

<p> </p><div><p><b>1.1 BACKGROUND OF THE STUDY</b></p><p>Basically, promotion is first<br>introduced in the 4Ps of marketing. The four (4) Ps represents the marketing<br>mix (Product, Price, and Place and Promotion) and the promotional mix is the<br>important term used to explain the set of tools which businesses use to<br>communicate the benefit, source and other information about their product to<br>customers in order to persuade them to purchase the products. These tools are<br>advertising, publicity, sales promotion and personal selling, (Kotler 2001).</p><p>On the other hand consumer<br>behaviour is another important aspect in the retail business sector. Consumers<br>are not always normal/simple buyer, (Kotler 2001).</p><p>Sales<br>promotions have become a vital tool for marketers and its importance has increased<br>significantly over the years. Studies that strive to understand the impact of<br>sales promotions on consumers’ behavior are very important. Also culture has<br>profound implications on the psyche of the consumers’ behavior, adaptation to<br>cultural</p></div><div><p>values<br>leads to marketing effectiveness. So to this study, understanding consumer<br>behavior in a different framework is very useful for the success of an<br>organization.</p><p>Clancy, Jose, &amp; Zacharias<br>(2000) established a significant relationship between knowledge of it business<br>environment and with effective and efficient marketing strategy they, firms<br>must possess a detailed, objective understanding of their own business and the<br>market in which they operate. Extensive review of literature and focus group<br>analysis revealed nine marketing mix variables; product (service), pricing,<br>promotion, information, transaction, distribution, reliability, customer<br>service and personalization that influence client’s satisfaction. Promotion is<br>one aspect of marketing mix because the consumers are informed about the new<br>products and their attributes before they develop positive attitudes toward<br>them. It is a way to persuade and informing the target market about the product<br>existence and hence like the product. Sivadas and Baker-Prewitt (2000) are of<br>the view that to satisfy the customer you will send a word-of-mouth to the<br>others thereby increasing the demand of the product. Baker (2000), a good<br>promotion involves product, distribution and price components of marketing. A<br>business’ total</p></div><div><p>marketing<br>communications programme is called the “promotional mix” and consists<br>of a blend of advertising, personal selling, sales promotion, brand management,<br>product placement and public relations tools. It has been established that many<br>companies apply these promotion mix elements in order to increase sales<br>revenue. Shimp (2003) viewed sales promotion as any incentive used by a<br>manufacturer to induce the trade or consumers to buy a brand and to encourage<br>the sales force to aggressively sell it. Retailers also use promotional<br>incentives to encourage desired behaviours from consumers. Sales promotion is<br>more short-term oriented and capable of influencing behaviour. Totten &amp;<br>Block (1994) stated that the term sales promotion refers to many kinds of<br>selling incentives and techniques intended to produce immediate or short-term<br>sales effects. Typical sales promotion includes coupons, samples, in-pack<br>premiums, price-offs, displays, etc. Coupons have been used to produce trial<br>(Robinson &amp; Carmack 1997).</p><p>In view of the above, this<br>study intends to look into how sales promotion strategies impact on consumer<br>buying behavior.</p></div><p>&nbsp; &nbsp;</p><div><p><b>1.2 STATEMENT OF THE PROBLEM</b></p><p>Promotion is a key element of<br>the marketing strategies. It is vital to the marketing process although it is<br>costly; it helps in informing customers about the right product and services.<br>The promotional strategies are made up of advertising, sales promotion,<br>personal selling, publicity and public relations.</p><p>The present trend of<br>marketing today has been shifted towards maintaining consumer patronage and<br>products loyalty. Stiff competition has however led many businesses into<br>liquidation. The unfavourable economic conditions, political and social changes<br>have also produced the same effect. All these could be due to inability of<br>marketing departments to anticipate, plan and employ effective strategies to<br>contain the external threats and internal weaknesses of the firm or industry to<br>boost consumer buying power. As a result of these, sales promotion activities<br>have become a daily affair in marketing with business adapting different<br>methods to address one problem or the other for consumers.</p></div><div><p><b>1.3<br>STATEMENT OF RESEARCH QUESTION</b></p><p>In line with above statement<br>of problems, the following research questions were raised.</p><p>1. &nbsp; &nbsp; <br>Does sales promotion have a significant impact on consumer buying<br>decision?</p><p>2. Does sales promotion accelerate the consumer<br>baying behavior?</p><p>3. Could sales promotion<br>intervene in consumer buying decision Process?</p><p>4. Does sales promotion contribute positively to<br>the consumer</p><p>patronage of the product?</p><p><b>1.4</b>&nbsp; &nbsp; &nbsp; &nbsp;<b>OBJECTIVES<br>OF THE STUDY</b></p><p>From the research questions<br>presented above, the study has the following objectives:-</p><p>1. &nbsp; &nbsp; <br>To examine whether sales promotion have significant impact on consumer<br>buying decision.</p></div><div><p>2. &nbsp; &nbsp; <br>To find out if promotion accelerate the consumer buying behavior.</p><p>3. &nbsp; &nbsp; <br>To determine whether sales promotion intervene in consumer buying<br>decision.</p><p>4. &nbsp; &nbsp; <br>To examine whether sales promotion contribute positively to consumer<br>patronage of the product.</p><p><b>1.5 RESEARCH HYPOTHESIS</b></p><p>Below are some of the hypotheses formulated to<br>guide the study.</p><p>Ho: &nbsp; There is no significant impact between sales<br>promotion and consumer buying decision.</p><p>Hi: &nbsp; &nbsp; There is a significant relationship between<br>sales promotion and consumer buying decision.</p><p>Ho: &nbsp; &nbsp; Promotion does not accelerate the consumer<br>buying behavior.</p><p>Hi: &nbsp; &nbsp; Promotion accelerates the consumer buying decision.</p><p>Ho: &nbsp; Sales promotion does not intervene in<br>consumer buying decision.</p><p>Hi: &nbsp; &nbsp; Sales promotion intervenes in consumer buying decision.</p></div><div><p>Ho: &nbsp; There is no significant relationship between sales promotion and<br>consumer patronage of the product.</p><p>Hi: &nbsp; &nbsp; There is higher significant<br>relationship between sales promotion and consumer patronage of the product.</p><p><b>1.6 SCOPE AND LIMITATION OF<br>THE STUDY</b></p><p>According to Evborokhai<br>(2003), scope is the boundary set for the study. This can be geographical area<br>to be study, the period the investigator or the researcher wishes to look into<br>the subject.</p><p>The researcher of this study<br>intends to investigate the relationship between sales promotion and consumer<br>buying decision in some of the selected Local Government in Zone A of Niger<br>state. Although all consumers of different product are taking in to<br>consideration and the researcher did not limit the study to a specific product.</p><p><b>LIMITATION</b></p><p>The researcher is expected to<br>encounter problems in the course of conducting research in to a problem area,<br>no matter its nature and scope. Financial constraints were one of the major<br>factors militating against the smooth conduct of the study.</p></div><div><p>Time<br>that is universally accepted to be of essence is also another challenge. And<br>more so this study is to be conducted along with other academic pursuit [Course<br>work]. Therefore, the limited time may not permit the researcher to undertake a<br>more depth study into the areas covered.</p><p><b>1.7 SIGNIFICANCE OF THE<br>STUDY.</b></p><p>Firstly, this research work<br>will be of a great assistance to business enterprises owners, to help them<br>understand the kind of promotional tools to use in other to generate more sales<br>or to convince more consumers to buy more.</p><p>This research work will be of<br>contribution to the body of existing knowledge on sales promotion and consumer<br>buying behavior.</p><p><b>1.8 CHAPTER SCHEME</b></p><p>This study is divided in to five (5) chapters as<br>follows,</p><p>Chapter one (1) is the<br>Introduction, the outline and the basis for the study. It is an exposition on<br>problems of the study, objective of the study, research hypotheses, scope and<br>limitation of the study as well as significance of the study.</p></div><p>Chapter<br>two (2) is mainly a review of literary works relevant to this research topic,<br>while chapter three (3) is a detailed discussion about the research design and<br>methodology adopted to carry out this research.</p><p>Chapter (4) four is a<br>presentation of data analysis and techniques employed in the analysis. And<br>lastly chapter five (5) is recapitulative in nature as well as dwell on summary<br>of findings, conclusion and recommendations for further research on Sales<br>Promotion and Consumer Buying Behaviour.</p> <br><p></p>