CONSUMER PERCEPTION OF PRODUCT SALES PROMOTION (A SURVEY OF CONSUMERS IN ENUGU METROPOLIS)
ABSTRACT
This study focused on the consumer perception of product sales promotion in Enugu metropolis the need for this study is to know whether sales promotion actually creates awareness for product. The following objectives one being set up by the research.
1) To determine whether sales promotion affects consumers perception of product.
2) To find out if consumer’s perception or product sales promotion influences their purchase decisions.
3) To ascertain whether consumer perception of product include repeat purchase.
4) To determine if consumer perception of product sales promotion affects their brand preferences.
5) To find out if consumers perception of sales promotion build brand loyalty.
The researcher used survey method in carrying out this research. A sample size of 400 respondents was randomly selected from the population of the study. The finding of this work one: Sales promotion makes consumers perceive the product quality as being superior and its features as being attractive. It also make them perceive the product price as cheaper and affordable and the product readily available. Perception of sales promotion also affect the brand preference of some consumers. It makes few consumers brand loyal.
TABLE OF CONTENTS
Title page - - - - - - - - - i
Certification page - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table of contents - - - - - - - vi
List of table - - - - - - - - ix
CHAPTER ONE
INTRODUCTION - - - - - - - 1
1.1 Background of the Study - - - - - 1
1.2 Statement of problems - - - - - 4
1.3 Objectives of the study - - - - - 5
1.4 Research question/Hypothesis - - - - 6
1.5 Significance of the study - - - - - 8
1.6 Scope/Delimitation of the study - - - 9
1.7 Definition of terms - - - - - - 9
CHAPTER TWO
LITERATURE REVIEW - - - - - - 11
2.1 Meaning of sales promotion - - - - 11
2.2 Objectives of sales promotion - - - - 13
2.3 Sales promotion target - - - - - 17
2.4 Planning and designing sales - - - - 29
2.5 Budgeting for sales promotion - - - - 33
2.6 Consumer perception - - - - - 34
2.7 Perception and consumer behaviour - - 38
2.8 Impact of sales promotion on consumer
behaviour on consumer behaviour - - - 42
CHAPTER THREE
RESEARCH METHODOLOGY - - - - - 45
3.1 Source of Data - - - - - - - 45
3.2 Population of study - - - - - - 46
3.3 Sample Size determination - - - - 46
3.4 Sample techniques - - - - - - 47
3.5 Research instruments used - - - - 47
3.6 Questionnaire administration and response - 48
3.7 Method of data treatment and analysis - - 51
3.8 Limitation of the study - - - - - 52
CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF DATA - - 54
4.1 Data analysis and interpretation - - - 54
4.2 Test of Hypothesis - - - - - - 68
CHAPTER FIVE
DISCUSSION OF FINDINGS, RECOMMENDATIONS AND CONCLUSION - - - - - - - - 74
5.1 Discussion of findings - - - - - 74
5.2 Recommendations - - - - - - 75
5.3 Conclusion - - - - - - - 77
Appendix - - - - - - - - 78
Questionnaire - - - - - - - 79
Bibliography - - - - - - - 84
LIST OF TABLES
4.1 Administration of Questionnaires - - - 54
4.2 Sex Distribution of Respondents - - - 55
4.3 Age distribution of respondents - - - 55
4.4 Marital distribution of respondents - - - 56
4.5 Educational distribution of respondents - - 56
4.6 Occupational distribution of respondents - - 57
4.7 Locational distribution of respondents - - 58
4.8 Responses to being regularly Exposed to product sales promotion affecting their consumer perception - 59
4.9 Response of sales promotion affecting their consumer perception - - - - - - - - 60
4.10 Impact of sales promotion on consumer perception of the product - - - - - - - - 61
4.11 Responses to consumer perception of sales promotion affecting buying decision - - - - - 62
4.12 Responses to consumer perception of sales promotion making consumer buy the product - - - 63
4.13 Responses to consumer perception of product sales promotion inducing - - - - - - 64
4.14 Responses to consumer perception of product sales promotion affecting brand preference - - 65
4.15 Effect of consumer perception of product sale promotion on brand preference - - - - - - 66
4.16 Responses to consumer perception of product sales promotion making consumer brand loyal - - 67
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the contemporary time, the Nigeria’s marketing since is witnessing increasing use of various marketing and promotional strategies by marketing firms to achieve their marketing objectives. One of such promotion strategies is sales promotion which is now being increasingly used firms to facilitate and enhance the sale of their products as competition intensifiers among firms.
Sales promotion gained real recognition as a marketing tool in Nigeria in the early 1960’s but it become widespread in the 1989s. It is one of the element of the “promotional mix” and consists of sales activities and incentives designed to induce enhanced sales on short-term basis.
Although most sales promotion campaign are aimed at achieving short-term sales objectives, it also helps in achieving long-term sales and other marketing objectives (Okeke, 2003: 52).
Sales promotion consists of different incentives tools mostly short-term, designed to stimulate quicker consumer response or purchase of the firm’s product or services. Sales promotion activities include exhibitions, trade shows demonstration, couponing, sampling, sweeps takes competition among others.
Marketers use incentive types of promotion to attract new consumer and to increase the purchase rates of occasional users.
Generally, sales promotion often attracts brand switchers who are primarily looking for low price, good value or premiums. Beside, sales promotion benefits flow to both marketers and consumers. For instance, it enhances the sales of the product being promoted and enables consumers to try new products (Kotler and Keller, 2003: 586).
No doubt, product sales promotion as a form of mass communication is aimed at changing the behaviour of the consumer in order to make him or her prefer the particular product of service. The ability of the promoter to achiever this purpose depend to a long extent on consumer’s perception of sale promotion.
A well-planned, implemented and controlled sales promotion campaign significantly influence consumers perception of the product (Nwatu, 2005: 162).
Consumers are not mere preceptors of stimuli – Rather, they actively process and recognize the information received through product sales promotion and its ability to persuade and convince the consumers (Mansfied, 2002: 211).
Thus, in a situation of different brands of a product competing among themselves, consumers awareness and conviction can be achieved through any of or a combination of the various promotion tools.
Consumer’s purchase decisions are largely influenced by their perception of the product not only in terms of it’s quality but also by the attributes which the promoter is able to lend to the product through sales promotion and other promo tools. It is against this background that this study sets out to examine the economy.
1.2 STATEMENT OF PROBLEM
Poor planning, implementation and control of sales promotion leads to wrong perception by consumer and failure to include enhanced sales of the particular product through sales promotion campaigns. Poor planning results in inadequate budgeting which makes the company unable to adequately makes use of sales promotion techniques. Poor implementation makes it difficult to fulfill obligations to customers.
This in turn makes them perceives sales promotion campaign as a rip-off.
Secondly, sales promotion may weaken brand image which it sets out to improve especially if the purported product differentiation is not already perceived. This is capable of even making consumer to perceive the product wrongly, there by making the sales promotion campaign ineffective.
Thirdly, where consumers fail to perceive any differences, it implies that sales promotion campaign is ineffective. This may result in short-run price oriented behaviour, and short run increase in sales at the expense of profit.
The problem of this study is therefore to investigate consumer perception of product sales promotion and how this affects product sales in Enugu metropolis
1.3 OBJECTIVES OF THE STUDY
The objectives of the study are:
(1) To determine if product sales promotion affect consumer perception.
(2) To find out if consumers perception of product sales promotion influence their purchase decision.
(3) To ascertain whether consumer perception of product include repeat purchase.
(4) To determine if consumers perception of product sales promotion affects their brand preferences
(5) To find out if consumers perception of sales promotion build brand loyalty.
1.4 RESEARCH QUESTIONS
The following questions will be addressed in this study
1) Does product sales promotion affects consumer perception?
2) What is the impact of consumer perception of sales promotion on purchase decision?
3) To what extent does consumer perception of sales promotion include repeat purchase?
4) What is the impact of consumer perception of sales promotion on brand preferences?
5) To what extent dose consumer perception of sale promotion build brand loyalty?
HYPOTHESIS
The following hypothesis are postulated for this study:
Ho: Product sales promotion does not affect consumers perception.
Hi: Product sales promotion affects consumers perception.
Ho2: Consumer perception of sales promotion does not affect buying decisions.
Hi: Consumer perception of sales promotion affect buying decisions.
Ho3: Consumer perception of sales promotion does not affect brand preference.
Hi: Consumer perception of sales promotion affects brand preference.
1.5 SIGNIFICANCE OF THE STUDY
The significance of the study derives from the following:
(1) It will provide manufacturers information with which they can determine whether sale promotion campaigns actually creates awareness and induce consumer purchase. This will enable them to formulate effective policy on sales promotion.
(2) It will provide information which will enable marketers to adapt both marketing and societal marketing concepts. These demand that firms should determine the needs and wants of consumers and target markets and deliver the desired satisfaction more effective than competitors in a manner that improves the consumers and society’s well being. Marketer will then see the need to incorporate all these elements into sales promotion message or campaigns.
(3) Finally, the study will be useful to students. It will serve as a reference material to those who will carry out studies in related areas in the future
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1.6 SCOPE/DELIMITATION OF THE STUDY
This study focuses on consumer perception of product sales promotion however, the scope cover Enugu metropolis only.
The research work is concentrated on the consumer perception of product sales promotion.
1.7 DEFINITION OF TERMS
The following are the definition of terms.
SALES PROMOTION
According to (Etze, Jotal, 2001) Sales promotion is defined as demand stimulating devices designed to supplement advertising and facilitate personal selling.
CONSUMER PERCEPTION
According to Kevin et al (2003), consumer perception is the process by which an individual or group select, organizes, and interprets information to create a meaningful picture of the world.
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