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(A CASE STUDY OF NIGERIA BOTTLING COMPANY IN PORT HARCOURT)
ABSTRACT
This research is entitled Branding and consumer choice for regulated bottled water in Port Harcourt. The study was carried out in Port Harcourt, Rivers State, Nigeria. This research work is therefore an investigation into impact of branding and consumer choice for bottled water, with special focus on the contributory roles of its various elements in impacting consumer behavior. The sample size of this study is judgmental sample of 100 respondents which comprises of consumers coming in to the shops for purchase of bottled water in Port Harcourt. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS). The statistical test used in the analysis of the data collected was Pearson Product Moment Correlation Coefficient. Base on the analysis, the finding showcase that there is no significant relationship between branding and consumer choice for regulated bottled water. It was concluded that there is no gain saying the fact that branding is one of the most sought-after strategies in marketing for the purpose of influencing consumer choice positively. We therefore recommended that positioning and repositioning of products should be carried out by firms with branding as the leading strategy.
TABLE OF CONTENTS
Title page………………………….…………………………………………………..i
Certification………………………….……………………………………………….ii
Dedication………………………………..…………………………………………..iii
Acknowledgement……………………………..…………………….………………iv
Abstract……………………………………………………………………………….v
Table of content………………………………………………………………………vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study……………………………………………………..1
1.2 Statement of the study…………………………………………….….……….3
1.3 Objectives of the problem……………………………………………………5
1.4 Research Questions………………………………………..……….…………5
1.5 Research Hypothesis………………………………………………………….6
1.6 Significance of the study ……………………………………………………..6
1.7 Scope of the study…………………………………………………………….8
1.8 Limitations of the study……….……………………………………..……….8
1.9 Definition of key concepts/terms…………………………………….….…..9
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual framework……………………………………………….……..11
2.1.1 Dimensions of branding……………………………………………………..11
i. Brand trust…………………………………………………………….…….11
ii. Brand image…………………………………………………………………13
iii. Brand price ………………………………………………………………….14
iv. Brand name………………………………………………………………….15
2.2.2 Measures of consumer choice……………………………………………….16
i. Consumer belief……………………………………………………………..16
iii. Consumer ability to identify brand………………………………………….17
2.3 Theoretical framework………………………………………………………20
2.3.1 Discrete choice theory of planned Behavior…………………………………20
2.4 Review of related Empirical studies …………………………………………21
2.5 Summary of review of related literature …………………………………….23
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction…………………………………………………………………24
3.2 Research Design……………………………………………………………..24
3.3 Population of the study………………………………………………………24
3.4 Sampling Technique(s)………………………………………………………24
3.5 Sample size………………………………………………………………..…25
3.6 Sources of Data………………………………………………………………25
3.6.1 Primary sources of data………………………………………………………25
3.6.2 Secondary sources of data……………………………………………………25
3.7 Research instrument for data collection………………………………………26
3.8 Validity and reliability of instruments…………………………………….….26
3.9 Techniques for data analysis………………………………………………….27
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Presentation and analysis of data……………………………………………..28
4.2 Analysis of respondents profile……………………………………………….28
4.2.1 Sex of respondents……………………………………………………………..28
4.2.2 Age distribution of respondents……………………………………………….29
4.2.3 Educational qualification of respondents………………………………………29
4.2.4 Nationality of respondents……………………………………………………..30
4.3 Analysis of other data…………………………………………………………..31
4.4 Discussion of the finding…………………………………………………………42
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATION
5.1 Summary………………………………………………………………………45
5.2 Conclusion………………………………………………………………..……46
5.3 Recommendation………………………………………………………………46
Bibliography…………………………………………………………………..48
Appendix I……………………………………………………………………..50
Appendix II…………………………………………………………………….51
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Consider the chaos that would be at the point of purchase if manufacturers have no means of distinguishing their products from that of competitors.
Consumer would definitely be put through the rigors and time consuming task of determining what product to choose from the list of unbranded products. The likely event of choosing the wrong product among the several unbranded products is there, given the unscrupulous behavior of some middlemen. This assertion is buttressed by (Okafor, 1995) quoting (Morden 1987) who posited that, “consumers seeing a favoured brand (to which they may exhibit loyal behavior), may cut short the analysis of the alternatives prior to the purchase decision, and proceed more rapidly towards the purchase.
Moreover, a realization of the fact that branding as a marketing tools affects other product management decisions, confronts one with the fact that its impact on marketing activities and consumers cannot be over emphasized.
Okafor, (1995A) captures the very essence of branding when he opined that “apart from the herculean task that will be associated with trying to decide what manufacturers’ product to buy from all the unbranded products, other product management decisions, based on market segmentation, promotion, product positioning, pricing etc would have been practically impossible”.
From the foregoing discussions on the importance of branding, marketers and producers alike are developing increasing interest in this strategy. The bottled water industry in Nigeria is not an exception to this increasing adoption of branding as a strategy for winning the heart of consumers.
However, a lot still needs to be seen as to whether branding is the major factor influencing consumer choice. In a study by Smith and Brynjolfson (2000) after analyzing 20,268 shopbot consumers who selected various books from 33 retailers over 69 days, they found that although each retailer offered homogenous products, brand was an important determinant of consumer’s choice. They went further to state that, “the three most heavily branded retailers held a $1.72 price advantage over generic retailers in head-to-head price comparisons.
In furtherance of their research, they found that consumers used brand as a proxy for retailer credibility in non-contractible aspects of the products and services bundle, such as shipping reliability.
Bottled water business in Nigeria is a child of necessity. Necessity stemming from the fact that there was lack of portable drinking water across the country at the time. In the words of Babayaro (2007), table water production can be said to be a new business in the Nigeria community. At the beginning, it started without serious consideration to ethical standard and or strict adherence to the purity and hygiene of the water. But with the efforts put by the National Agency for Food and Drugs Administration and Control (NAFDAC) the fear being nursed in the past, by consumers of the product has now been allayed.
Suffice it to say that what is known as bottled water today, like any other product has passed through many stages in Nigeria including cup method, Nylon method and sealing method which became fashionable at the dawn of 1990’s (up-dike industries executive brief 2005). This was the first time some doses of technology were incorporate into the mainstream industry in terms of purification, machinery and packages materials. The regulation of the production and marketing of packaged’ water in Nigeria led to the product being termed regulated water.
This was principally to eradicate the presence of unfit water in furtherance of NAFDAC’s major function of regulation and control of the importation, exportation, manufacture, advertisement, distribution, sale and use of drugs, cosmetics, medical devices, bottled water and chemicals (NAFDAC, 2005). Since then, water business in Nigeria had continued to experience a boom leading to the influx of many producers into the industry.
1.2 Statement of the problem
Often, when asked the non-price reason behind their choice of a particular brand of product over another, most consumers will readily shout “Quality”. However, one would accept this answer with a lot of ambivalence, given what it takes to make an objective quality differentiation among alternative product brands.
This category of consumers is highly informed and enlightened and their percentage is quite negligible in Nigeria. Furthermore, quality status ascribed by consumers to certain product brands is not real but perceived. It is mostly a figment of their perception, it therefore follows that, those marketers who know how best to manipulate consumer perception and therefore better position their brand in the minds of the consumers will definitely emerge winners in the marketing warfare.
In the regulated bottled water industry in Nigeria, it may be expected that the issue of “better quality” should not arise. This is against the backdrop that the National Agency for Food and Drug Administration and Control (NAFDAC) has stipulated and is seriously enforcing both production and marketing standards for all producers of bottled water thereby making every brand of bottled water of equal purity and quality. Yet most consumers of this product readily pay a premium price or are price insensitive when it comes to the purchase of a particular brand of regulated water say “Eva”. This gets one wondering, could it be that consumers in making choice are merely responding to the outcome of their perception which is a function of such attributes like brand name, mark, package, company of make etc. A point to note is the fact that most producers strongly believe that branding has a very high influence on consumer’s choice (Ogbuji, 2008). However, given the fact that many elements constitute branding, one is not sure if these elements play equal role in influencing choice or if some play a higher role than others. This is the crux of the problem of this study.
1.3 Objectives of the study
In line with the statement of problem, this study using empirical quantitative data from bottled water consumers in Port- Harcourt, Rivers State, Nigeria, intends to examine branding and consumer choice for regulated bottled water in Port-Harcourt, Rivers State specifically, it will address the following:
1. Ascertain the relationship between brand trust and consumer choice for regulated bottled water in Port-Harcourt.
2. Examine the impact of brand name on consumer choice for regulated bottled water in Port-Harcourt.
3. Assess the relationship between brand price and consumer choice for regulated bottled water in Port-Harcourt.
4. Assess the relationship between brand image and consumer choice.
1.4 Research question
In order to accomplish the objectives of the study, the following research questions (RQs) were addressed.
RQ1: What are the relationship between brand trust and consumer choice for regulated bottled water?
RQ2: What are the impact of brand name on consumer choice?
RQ3: In what way can we assess the relationship between brand image and consumer choice?
EQ4: To what extend is the assessment between brand price and consumer choice for regulated bottled water?
1.5 Research hypothesis
The following hypotheses stated in their null forms were formulated to guide the study.
HI: There is no significant impact of brand name on consumer choice.
H2: There is no significant relationship brand trust and consumer choice of regulated bottled water.
H3: There is no significant effect on brand image for consumer
choice.
H4: There is no significant relationship between brand price on consumer choice.
1.6 Significance of the study
The development tests and applications of the theory of “brand-choice sequences” were done using data from consumers in Nigeria. This study utilizing data from bottled water consumer in Port-Harcourt, Rivers State, Nigeria, extends the testing and application of the “brand-choice sequences” theory to the developed nations. By adding to and extending the testing and application of this theory, this study not only enhances the universality of the theory, but also provides additional resources in the literature, knowledge management and pedagogy in brand choice in the Nigerian bottled water market. Using the theoretical framework adopted in this study to measure and analyzed consumers choice of brands of bottled water in this part of Nigeria and estimating the distribution of brand choice across the bottled water brand and across the socioeconomic and demographic groups in the study, provides bottled water marketers and bottled water brand’s managers with marketing intelligence on consumers’ choice to bottled water in this part of Nigeria.
Marketing intelligence on choice of brand to bottled water I this part of Nigeria, may lead to reformation of promotional strategies aimed at the different socioeconomic and demographic groups. Brand managers of bottled water brands in this part of Nigeria may then harness the benefits of such promotional reformulation for their individual brand management, with subsequent impact on consumers choice. Promotional contents are expected to also produce more and better informed consumers, all have previously discussed on the relevance of continual brand choice, sustaining and increasing consumer choice for bottled water brand in this part of Nigeria is expected to enhance a brand’s sales volume with, perhaps, accompanying positive impact on the brand’s profitability and equity.
Brand choice on consumers constitute a market niche for a brand, a market niche ultimately gives a brand a competitive position, based on the brand’s attributes that have emotional appeals to its consumer’s choice.
1.7 Scope of the study
Consumers’ choice of brand in the area of consumer behavior in marketing is the subject scope of this study. Consumer brand is one of the variables considered in the study, and has the theory of behavioral “brand-choice sequence”, operationalized in this study. The geographical scope of the study is Port-Harcourt, Rivers State, Nigeria. In terms of language, customs and traditions, with nuances that may or may not be distinguished. The study unit scope is only the adult bottled water consumers who buy bottled water by themselves and use any of the following brands of bottled water. ‘Eva, which are the brands of bottled water of interest in the study.
1.8 Limitations of the study
There is no doubt that coverage of all consumers would have produced a better result. This limitation is however moderated by the fact an in depth study was made of the selected respondents and that consumers of bottled water share certain behavioral characteristics in common (e.g. willingness to part with more money for safe water).
The dearth of data and lack of current related studies with respect to the Nigerian market of bottled and branding also constituted a limitation of this study. Efforts at accessing recent related studies for review, even through the internet, did not yield expected level of dividends. Furthermore, we discovered that most of the institutions selected in Port-Harcourt either did not have an updated list of their staff strength or they were afraid to give it out for reasons best known to them. Finally, the fact that some copies of our questionnaire were not returned, equally constituted a limitation of the study not minding the fact that we had an acceptable return on the questionnaires.
In this study, several limitations and exigencies both anticipated and unanticipated, were encountered in various forms and degrees. It is not possible to comprehensively describe the limitations.
The concept of consumer based marketing research is perhaps still in its infancy in many parts of the world, including the part of Nigeria in this study.
In view of this, cooperation of the respondents was not as readily available as expected. The literacy levels of some respondents also came into question at some points, in terms of their requiring additional explanation to fully comprehend the questions posed in the data collection instrument. However, these limitations were adequately managed so as not to compromise the findings from this study.
1.9 Definition of key concepts/terms
In the modern day, brand plays a vital role in enhancing country’s economy.
Brand is one of the tools used by marketers to alter the buyer’s purchase intention and the tools are
Brand: Brand is a combinations of name, symbol and design. Brand represents the customer’s understanding or perceptions and opinion about product performance.
Branding: Is the process involved in creating a unique name and image for a product in the customer’s mind, mainly through advertising campaigns with a consistent theme.
Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.
Consumers: A consumer is a person or organization that uses economic services or commodities.
Choice: It is an act of choosing between two or more possibilities. Choice involves decision making, it can include judging the merit of multiple options and selecting one or more of them.
Bottled water: Is drinking water packaged in PET bottle or glass water bottles. Bottled water may be carbonated or not, sizes range from small single serving bottles to large carboys for water coolers.
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