Attitude Of Consumers Towards Public Utilities (A Case Study Of Power Holding Company Formerly Called NEPA)

Project and Seminar Material for Marketing

Attitude Of Consumers Towards Public Utilities (A Case Study Of Power Holding Company Formerly Called NEPA)


Abstract


The success or failure of product or service depends on the attitude of consumers towards it. That is why the research instrument I used was questionnaire and interview. The questionnaire was drawn and randomly distributed within the indicated area of study. The research also made use of oral interview to supplement questionnaire.

Data was collected from seven zones such as New Heaven, Asata, Achala-Layout, Ogui Urban, Ogui New Layout, Ogbete (Camp) and Agabni Road.

Bourley was used to determine the sample size.

Also, chi-square was used to analyze the hypothesis and know also when to accept or reject the null and alternative hypothesis.


Chapter One


Introduction

1.1 Background of the Study

This research work is aimed at determine attitude of consumers towards public utilities.

The power holding company (formally called NEPA) was established by Decree No 24 of 1st April 1972 with the amalgamation of Electricity corporation of Nigeria (ECN) and Niger Dan Authority (NDA). Power Holding Company formerly called NEPA was empowered to maintain an efficient coordinated and economic system of Electricity supply to all the Nooks and Crannies of the nation. Major power stations namely Yola, Delta and Afam thermal power station of Kanji power station serving more than two million customers nationwide. They propelled the nations technological and industrial growth, Power Holding Company formerly called NEPA has become the fastest and biggest growing electricity industry in Africa and in deed the developing world with impending condition like he ever-rising consumers debts vandalization of NEPA installation, high cost of maintenance inadequate gas supply, low water level at the hydro power station, high cost of foreign exchange and the abysmally low tariff regime.

Power Holding Company formerly called NEPA has always striven to meet its distribution and marketing of stable electricity to its numerous residential commercial and industrial customer against all odds. Inspite of some of its familiar operational shortcomings, PHC has made gaint – strides in the production and marketing of Electricity to the nation and beyond. A principal beneficiary of PHC. Extended electricity programme is the Republic of Niger under agreement with NIGELEC (Niger Electric Company) that country’s electricity monopoly.

Similarly, in Sept 1996 an undertaking was signed between PHC and commercial Electrique Du Benin(CEB) which is responsible for the production transportation of electric energy in the Republic of Benin and Togo. Nigeria Government Policy on the development of public corporation was clearly defined in the year 1970/1974 Second National Development Plan document as follows:

“Statutory corporation and state owned company have become an important tools to public entertainment in the development process. Their primary aim is to stimulate and accelerate national scarcity and structural defects in private business organization. There are also basic consideration arising from the dangers of leaving vital sectors of the national economy to the wimps and caprice of the private sector often with the direct and remote control of foreign large scale industrial companies. Public corporation are therefore crucial in Nigerians quest true National economic independence and self reliance. The Power Holding Company formerly called NEPA being one of the statutory corporations is a household name.

Presently, the corporation is gradually bringing a lot of re-thinking into the minds of Nigerian entrepreneur both private and public from making them to actually appreciate the modern market concepts, a management
orientation which hold the key task of the organization to deliver the desired satisfactory service more effectively and efficiently.

Meanwhile, one of the implication of the concepts is that the consumers in any market segment will favour the offer of the organization who come close to satisfying the consumer’s particular needs and wants. Therefore, it is necessary for an organization to seek to understand customers preference, habits behaviour and criticism and to do this, the organization has to research into those things that attract consumers interest and influence their behaviour.

Moreover, setting up an organization for the purpose mentioned before, an organization should better hold it responsible that survival of the organization depends much on the attitude of consumers towards the organization and its product or services.

However the main priority of the management of Power Holding Company formerly called NEPA at Enugu metropolis is to identify influences on the attitude of consumers towards the organization the knowledge of variables, the consumers opinions, feelings and ideas about their services will help management of the marketing mix in other to achieve their objective. Also, it will enhance growth, expansion and to ensure greater rate of returns in public utilities. PHC. As a monopolist service industry recognize the important variable and even exploring other means of providing better services. Discussions on PHC features regularly on the pages of the periodical and dallies as well, as on the Radio and Television Programme. The frequency at which the newspaper and margarines publish materials on PHC tends to portrary the importance of electricity industry economic development.

Finally, this research work is a conscious effort towards X- raying the overall customers attitude in relations to productivities and efficient power supply of electricity often referred to as heart beat of the nation.


1.2 Statement of Problem

This study is intended to find out the attitude of consumers towards Public utilities. The growth and survival of an organization such as NEPA is paramount. This positive growth achievement of organizational goal is anchored on the effective performance of the organization.

The problem is to determine the people’s response to price of public utilities positively or negatively. They respond negatively when PHC give much bills to consumers, which they did not expect.

Determine consumers view about Power Holding Company formerly called NEPA and also determine the extent to which public demand PHC services.


1.3 Objectives of the Study

The persistent public out cry over the authority’s erratic power supply juxtaposed with the numerous excuse offered by the Authority, some of which tends to expose the consumers to blame for the cause of the matter while the consumer accuses PHC of inadequate service and the Authority also make counter accusation on the consumers for what it describes as their non co-operative attitude.

It is in the face of this controversy that the researcher embarked on this project with the following.

  1. To determine the ideas, attitude and consumers view about PHC at Enugu metropolis.
  2. To determine the extend to which service of PHC is demanded compared to other public utilities
  3. To find out the impression consumer have about the price of organization service on relations to its quality.
  4. To analyse ways of wining consumers favourable attitude and there improve the share among other service.

1.4 Scope of the Study

This study is limited to finding out how consumers rate or regards services rendered by public corporation with special reference to Power Holding Company formerly called NEPA Enugu office.


1.5 Limitation of the Study

During the course of writing the project topic the research encountered some problem associated with finance, time and data collections.

Finance:

Finance is the background of every plan going by the present economic hardship facing the entire country, I have limited finance which will not also found it difficult to purchase much of my requirement so I could only carry out the research works much, my purpose could carry me.

Time:

One of the greatest shortcoming was time factor for the mere fact that I am a student taking recognizance of the academic region facing me as a final year student and it is incumbent on me to attend classroom lectures carryout assignment, writing of term papers. Therefore I could not find it convient in completing such until this task, particularly in the area of field survey, which involves going out in Enugu metropolis. Data collection.

Data Collection:

Collection of information of a several from actual users may not be willing to give reasons, why they use it, where as some will not want to disclose their income level of relevant information about the information themselves in cost case, the deflect appointment.


1.6 Research Hypothesis

Hypothesis according to Webster means “A presentation put forward a basis for reasoning a sub-position formulated from proved data and presented as a temporary explanation of occurrence as science in order to establish a basis for future use.

  1. Ho: Power Holding Company formerly called NEPA, service, price and quality are not acceptable to consumer.
    H1: Power Holding Company formerly called NEPA, service, price and quality are acceptable to consumer.
  2. Ho: Consumer attitude towards the service of Power Holding Company formerly called NEPA are not favourable.
    H1: Consumer attitude towards the service of Power Holding Company formerly called NEPA are favourable.

1.7 Significance of the Study

It will also be seen as a reference point for students who might be carrying out research on similar or related topic. It will also help the government to assess the services ability of Power Holding Company formerly called NEPA and know whether to constitute similar or parallel organization. It will help the Power Holding Company Management to identify areas that they are lacking and effective ways of increasing performance for customer satisfaction.


Chapter Five


5.0 Discussions, Implication and Recommendation

5.1 Discussion of Results

As extension study through observation and use of statistical method is used to evaluate and analyze results. The end result of the hypothetical analysis were as follows:

Testing of hypothesis shows that the calculation value is 3.967 against the table value of 3.8416. Therefore the null hypothesis is acceptable which the that power holding company formerly called NEPA service, price and quality are not acceptable to consumers.

Hypothesis II, the calculated value is 156.85 > 3.8416, we therefore conclude that consumer attitude towards power holding company formerly called NEPA are not favourable.


5.2 Conclusion

Markets and marketing activities should be allowed to exist because they are full need within economic system. Also one of the principles of economics which may be applicable here called “The principles of wants selections, it stated that wants should be provided for an order of their important or to put it negative no want should be satisfied if a more important want is thereby excluded.

It is believed that no cardinal charge would be achieved in the marketing of a product research in order to motivate and arouse consumers’ attitude and by the existing level of income to suit Nigerian taste.

Moreover, the most important is to maintain high quality service, right price and to make service available at places where they are needed at the tight time using adequate test promotional appeal. This will help to restore of the economic mechanism of public utilities to attain the best service in the public enterprises in Nigeria

To my over belief, I hope it is advisable to our public utilities to identify these factors that influence customers attitude towards the consumption of their service. The organization could now use the necessary factors to arouse the attitude of consumers towards the consumption of their service.

However, the organization is now in better position to analyze the utilities services in relation to consumer’s idea, feeling and opinion about its various service. Also, it can now about enhance its recommendation effectiveness, know the reason for better performance and adequately segment and its target market.


5.3 Implication of the Result / Findings

  1. Consumer considers the prices in patronizing the public utilities, this is true, in order to change the attitude, authorities should communicate to consumer’s effective information about their service and public relation. Also they should use adding that might charge emotional feeling consumers might have had.
  2. Consumers reaction to the price of public activities in Enugu looks sharply. People expect adequate and quality service from these utilities with minimum cost.
  3. It is accepted that the peer group or reference public utilities employees should always consider social organizational, religious institution, traditional institutions and families to create great demand for the service.
  4. It is therefore accepted that adding message influence consumer’s patronage.
Public Utitlities

Therefore, it is an attempt to create awareness or charge of attitude to consumers where necessary, the identification of the target audience is primarily confidence followed by selection of appropriate media to reach the audience.

  1. PHC is public utility considers attitude of consumer in the service they render very importantly. Knowledge of attitude an organization to predict consumer and to advertising message about product. Also it is through the attitude that an organization will know either to progress in producing certain goods and services.

5.4 Recommendations:

On the basis of the findings from facts and figures earlier presented, it will be null for a research of this kind is left without any recommendation. The following are recommendation made.

Production / Service Quality

Product quality satisfaction and service are major attitude factor that gives incentives to people’s attitude constellation. Therefore to the responsible manufacturers of goods or service, reliability, quality tastes are purely more important objective than simply production at a lower price.

Price

Price tells the manufacturer or retailers if this accounting method are good enough, how much profit he will make and tells the purchaser what the cost will be to him, through the cost is not necessary reckoned purely in term of immediate cash payment.

In referring to the present day economy of this country, price level is high and it is noticed that it has a very strong relationship with consumption owing to this to the business firm “Average prosperity to consume” is important to enable the management plan about their total output of consumer goods and service. It is good to remark that as income increase” Consumption increase also but the increases is not at par with the rate of increase in consumption.

Therefore public utilities management should be aware of people income especially disposable income before fixing price for the service rendered to customers.

Place:

Availability of product in areas they are needed is of cardinal importance. Manufacturers should not accept customers to shop around too much in-order to find out particular product, it should be available at the place convent for them.

Manufacturer should distribute (place) their product readily at place they are regard because availability enhance the purchaser frequency of product and where by a needed product that are available.

Therefore, the management of our public utilities especially as much as sales and marketing manager should try as much as possible to increase the number of their services in many more locations. It is always said that if the desirable is not available, the available becomes desirable.

Promotion

The term promotion is used here to include personal selling as well as at forms of advertising and sales promotion packages and display in the information sources, exposures of significant important. People need to see or hear a product and it is on this basis that public utilities should try to motivate consumer through the use of last promotion appeals to entice customers interest by talking cognizance of perception and the three perceptional, scream selective exposure, selective perception and selective retention.

Mean while, public utilities management is advised to full their product or service into existing attitudes. Because attitude is difficult to change.

The organization that react to circumstance may not survive those which only adopt have a little chance while the innovation that is one’s those who ask what will be plan according to add survival.


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