Effect Of Consumer Brand Preference On Purchase Of Beverage In Ado Ekiti Metropolis (A Study Of Cadbury Nigeria Plc, Product)

Effect Of Consumer Brand Preference On Purchase Of Beverage In Ado Ekiti Metropolis (A Study Of Cadbury Nigeria Plc, Product)

Abstract

This study was carried out on the effect of consumer brand preference on purchase of beverage in Ado Ekiti metropolis using the Carbury Nigeria Plc, products as a case study. The study was carried out to find out whether brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand participation influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand loyalty influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis and find out whether brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of traders of Carbury, Nigeria Plc, in Ado Ekiti. In determining the sample size, the researcher purposefully selected 147 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. While the hypotheses was tested Pearson correlation statistical tool, SPSS v23 The result of the findings reveals that brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis. Furthermore, the study revealed that Brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis. Therefore, it is recommended that manufacturing firms should build its strength around the name of the product to suit consumer orientation and preference. To mention but a few.

Table of Content

Chapter One:

Introduction

• 1.1 Background of the Study
• 1.2 Statement of the Problem
• 1.3 Objective of the Study
• 1.4 Research Questions
• 1.5 Research Hypothesis
• 1.6 Significance of the Study
• 1.7 Scope of the Study
• 1.8 Limitation of the Study
• 1.9 Definition of Terms
• 1.10 Organization of the Study

Chapter Two:

Review of Literature

• 2.1 Conceptual Framework
• 2.2 Theoretical Framework
• 2.3 Empirical Review

Chapter Three:

Research Methodology

• 3.1 Research Design
• 3.2 Population of the Study
• 3.3 Sample Size Determination
• 3.4 Sample Size Selection Technique and Procedure
• 3.5 Research Instrument and Administration
• 3.6 Method of Data Collection
• 3.7 Method of Data Analysis
• 3.8 Validity of the Study
• 3.9 Reliability of the Study
• 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

• 4.1 Data Presentation
• 4.2 Answering Research Questions
• 4.3 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

• 5.1 Summary
• 5.2 Conclusion
• 5.3 Recommendation
• REFERENCES
• QUESTIONNAIRE

Chapter One

Introduction

1.1 Background of the Study

Agriculture is the most-important sector of the national economy accounting for about 23.1% of the gross domestic production in 2006 (World bank, 2007). Agricultural sector remains the largest contributor to the Nigeria economy, accounting for over 30% of the non-oil foreign exchange earnings and employing about 75% of the active labour force of the population (FAO, 2002). The Wikipedia free encyclopaedia defined beverage as a liquid which is specifically made for human consumption, in addition to fulfilling a basic need, drinks form part of the culture of human society (Wikipedia, 2012). The Food and Beverage industry is one of the most globally competitive industries – dominated worldwide and in Nigeria by a handful of multinational companies. In food and Fast Moving Consumer Goods (FMCGs), the growth dynamics for Africa’s largest nation by population remain very encouraging. With incomes rising and more people able to afford goods, there is a lot of room for growth. In reality, only the surface of the potential of the Food and Beverage industry has been scratched. Nigeria ranked second in Business Monitor International’s recently launched Food and Drink risk/reward ratings for Sub-Saharan Africa behind only South Africa and comfortably ahead of the other growth economies (BGL 2012). In the beginning, there was water-abundant, refreshing, providing everything the body needs to replenish the fluid it losses. Humans relied on it as their only beverage for millions of years. Milk came next with the advent of agriculture and domestication of animals. Then came beer and wine, coffee and tea all drunk for taste and pleasures much as the fluid they provide. The new comers soft drinks, sport and energy drinks, offer dehydration but with a hefty dose of unnecessary calories that the body may have a hard time regulating (Branske, 2011). Taking a critical look at the work of Willet et al. (2002), beverages can be categorized into six levels based on calories delivered, contribution to intake of energy and essential nutrients. The levels of the classes include water which is not really a beverage but is necessary in the classification because it essentially provides everything the body needs to restore fluids lost through metabolism, breathing, sweating and the removal of waste. The other classes include: Coffee and tea which are the calorie free beverage, low fat, skim milk and soy beverages, non-calorically sweetened beverage, caloric beverages and calorically sweetened beverage which includes carbonated and non-carbonated soft drinks, fruit drinks, lemonades and other “ades”.

1.2 Statement of the Problem

Today, competitive conditions characterize practically every market in Nigerian’s beverage industry; there is a great variety in the quality between competitive products. Every human being by human nature always like to appear best of all, so does every industry want to have the best of products (Branske, 2011). This is a general feeling that some materials are inferior and preference is shown on products with more superior quality. In some cases some products sell more than others not because they are better in quality, but because of the name it has made or the level of advertisement made on it (Branske, 2011).

1.3 Objectives of the Study

The main aim of this study is to examine the effect of consumer brand preference on purchase of beverage in Ado Ekiti metropolis using the Carbury Nigeria Plc, products as a case study.

Other aims of this study are:

1. Find out whether brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
2. Find out whether brand participation influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
3. Find out whether brand loyalty influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
4. Find out whether brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.

1.4 Research Questions

The following research questions will be answered in this study:

1. Does brand awareness influence consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis?
2. Does brand participation influence consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis?
3. Does brand loyalty influence consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis?
4. Does brand perceived value influence consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis?

1.5 Research Hypotheses

The following research hypotheses will validate this study:

Ho: There is no significant relationship between consumers brand preference and the purchase of Carbury Nigeria Plc, products.

Ha: There is a significant relationship between consumers brand preference and the purchase of Carbury Nigeria Plc, products.

1.6 Significance of the Study

Over the years there has been inequality in the consumer brand preference in the purchase of beverage. This study shall enable use to sort out the factors responsible for this trend. So, the study will be great benefit to the marketers, processors and in particular the consumers.

Finally, it is hoped that thus research work will be helpful to new processors an sellers so that they might know the reigning brand and how to improve on the low grade ones. So as to bridge the inequality gap among various brand.
Sometimes, the producers usually maximize profit by adding more water to the beverage, which is an unethical practice. Then back to the exotic brands the reverse is the case and most consumers go for these brands because they fell its more hygienic compare to the locally made product due to the level of civilization both the poor and rich go for the foreign beverage.

Now, in Ado Ekiti metropolis, the purchase of foreign beverage has risen tremendously because one can seldom find locally sell it most in the campus. And we are posed with the issue of the variable that affect the low consumption of locally processed beverage in Ado Ekiti metropolis.

1.7 Scope of the Study

This study focuses on the effect of consumer brand preference on purchase of beverage in Ado Ekiti metropolis using the cadbury Nigeria plc, products as a case study. The study will by extension find out whether brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand participation influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand loyalty influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, and find out whether brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis. The respondents for this study will comprise of traders of Carbury Nigeria Plc, products in Ekiti Metropolis.

1.8 Limitations of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definition of Terms

Product

A product refers to those physical goods, services, experiences, events, persons, places, properties, organizations and idea that can be offered to a target market for the purpose of satisfying a want and need.

Brand

It is a product strategy referring to a symbol or design or a combination of them for the purpose of product identification and differentiation from other.

Marketing

It is a societal process through which individuals and groups obtain what they need and want by creating offering, and freely exchanging products and services for a value with other people.

1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the effect of consumer brand preference on purchase of beverage in Ado Ekiti metropolis using the Carbury Nigeria Plc, products as a case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to examine the effect of consumer brand preference on purchase of beverage in Ado Ekiti metropolis using the Carbury Nigeria Plc, products as a case study. The study specifically was aimed at to find out whether brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand participation influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis, find out whether brand loyalty influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis and find out whether brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are traders of Carbury, Nigeria Plc, in Ado Ekiti.

5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

1. Brand awareness influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
2. Brand participation influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
3. Brand loyalty influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.
4. Brand perceived value influences consumers purchase of Carbury Nigeria Plc, products in Ekiti Metropolis.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

1. Manufacturing firms should build its strength around the name of the product to suit consumer orientation and preference.
2. Organizations should consider promotional schemes for retaining their customers, as consumers are ready to move on to other brands.
3. Organizations should hire psychologists to help them with other decisions to make the consumer buy more.
4. It is of the researcher’s opinion that manufacturing and other forms of business organizations should seek the service of a consultant who will exposes them to other essentials of advertising and who will also bring to their notice the most effective form of advertising campaign and the most suitable and effective systems of execution. This is necessary because advertising is one sector of a business organization that sustains the products competitiveness and patronage in the market.

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