EVALUATING CONSUMERS RIGHT AND PROTECTION IN NIGERIA

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Abstract

The study was determined to evaluate consumer right and protection in Nigeria. The research design used descriptive research design of data collection in an attempt to empirically evaluate consumer right and protection in Nigeria. In course of carrying out this research work, our population of the study was made of consumer which was unknown. The researcher therefore determined the sample size to use from the population of selected consumer which was 38 respondents. In this study both the primary and secondary data were used. A self-designed questionnaire on the significance of consumer right and protection was used and administered for the collection of data from the respondents. The statistical test used in the analysis of the data collected was Chi-Square statistical tool. Finding amongst others reveal that there is a significant relationship between communication and customer retention in Hotel Presidential Port Harcourt. Based on the finding of the study, we recommended that that an instrument for standard test be procured by and Consumer Right Protection Agency (CRPA) to ensure that product either imported or locally manufactured comply with international standard.

Table of Contents

Title Page    i

Cover Page ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      vii

Table of Contents viii

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of the Problem  5

1.3 Objectives of the Study     6

1.4 Research Questions 6

1.5 Research Hypotheses        7

1.6 Significance of the Study   7

1.7 Scope of the Study  8

1.8 Limitation of Study 9

1.9 Definition of Related Terms        9

CHAPTER 2        11

REVIEW OF RELATED LITERATURE   11

Introduction         11

2.1 Conceptual Framework     11

2.1.1 Concept of Consumer Right    11

2.1.2 The Place of the Consumer in the Society   12

2.1.3 Protectionist Groups      14

2.1.4 Consumer Right and Responsibilities         15

2.1.5 Consumer Responsibility Component        18

2.1.6 The Role of Consumer Right and Protection Agency     19

2.1.7 Difficulties Faced in Implementing Consumer Right Protection Agency     20

2.1.8 Consumer Right Protection in Nigeria        22

2.2 Theoretical Framework     24

2.2.1 Maslow’s Hierarchy of Needs Theory        24

2.3 Empirical Literature 25

2.4 Summary of Review of Related Literatures    27

CHAPTER 3        29

RESEARCH METHODOLOGY      29

3.1 Introduction   29

3.2 Research Design      29

3.3 Population of the Study    30

3.4 Sampling Techniques        30

3.5 Sample Size    30

3.6 Source of Data         31

3.6.1 Primary Source (s) of Data      31

3.6.2 Secondary Source of Data       31

3.7 Research Instrument for Data Collection       31

3.8 Validity and Reliability of Instrument  32

3.9 Techniques for Data Analysis     33

CHAPTER 4        35

DATA PRESENTATION AND ANALYSIS       35

4.1 Introduction   35

4.2 Questionnaire Administration and Retrieval  36

4.3 Discussion of Findings      43

CHAPTER 5        45

SUMMARY, CONCLUSIONS AND RECOMMENDATION         45

5.1 Introduction   45

5.2 Summary       45

5.3 Conclusions   46

5.4 Recommendations   47

References  49

Appendix I 51

Appendix II          52

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

There is a global recognition of the fact that there exists real and perceived imbalance of power relation between the producers and consumers of goods and services.  This imbalance of power, as noted by several scholars in the field of marketing and business in general appears always to the advantages of the producers, who are strengthened by the traditional legal maxim ‘Caveat Emptier’ (buyer beware) and the ever growing free market philosophy which seems to put the producers at liberty to do whatever they want (Eze, Eluwa, and Nwobodo 2010).

This is in spite of the strong emphasis on consumer sovereignty as the moral basis of marketing theory with emphasis on such concept as ‘customer driven strategies’ in most definition of marketing whether theory or practice (Kelly, 2005).

The consumers have over the years expressed one form of discontent or the other against the activities of organization, with which they engage in trade relationships.  This has led to the growth of mass movements. (a phenomenon referred to as consumerism that have forced marketing and business firms in general in most developed countries, especially in Europe and America to respond favorably and adopt better ways of delivering goods and services to the consumers (Arndt, Barksdale and Perrault 1980).

These mass movements comprise those formed by direct consumer groups or consumer representatives group, as well as the government (Onah, 1979).  The activities of these groups have been a source as well as beneficiary of a distinct school of marketing thoughts known as the ‘activist’ or consumerism school of marketing thoughts, which came about as a result of observance of some “obvious problems in the market place” by marketing scholars and sought to provide an advocacy position in terms of developing and protecting the rights of the consumers” (Sheth and Gardner 1982.4). This school of thought focuses on both empirical research and conceptual thinking related to the issues of consumer welfare and consumer satisfaction and thus covers such areas of consumer complaints as deceptive advertising, high pressure sales of information among others (Sheth and Gardner 1982).

The current intense emphasis on consumer economy, private sector led development, the increasing wave of globalization, and unprecedented growth in information and communication technology (ICT) among others have all combined to reawaken interest in consumers’ right in the transaction process.  This resurgence is not restricted to the developing countries but has been shown to be prevalent in the highly developed democracies of the world.

In Nigeria as in some developing countries of the world, the enactment and enforcement of consumer protection laws have witnessed appreciable emphasis particularly with the return of democratic rule in the country.  All these are taking place at a time when consumers right and even protection life are seriously been challenged by the unprecedented growth in fake and sub-standard products in the Nigerian markets as evidenced by the recurring destruction of unwholesome food and drugs by the Consumer Right Protection Agency  (CRPA) and others regulatory agencies in the recent years.

This problem cuts across virtually all the sectors of the Nigerian economy including services providers (Manye, 2003).  Such wanton exploitation has resulted in gross abuse of consumers rights, with at times results in loss of human life.  Surprisingly all these are happening in a context where manufacturer’s sellers and services providers on the other hand, have continued to asserts their unfettering acceptance and application of both marketing concept with as attested for by the corporate mission and vision statement that decorate the literature of most of these organizations in Nigeria. On this basic we evaluate consumer right and protection in Nigeria.

1.2 Statement of the Problem

Consumer’s protection with emphasis on the protection of the rights of the consumer from the injustices in the market place is increasingly becoming a crucial topic in marketing with a lot of implications for business.

Consumer’s protection is prompted by the allegation of abuse of consumer rights in the market place. Consumer rights in this regard are the rights of consumer to some basic entitlement in the goods and services they consume.

Despite the above rights of consumers, the consumers are constant abused and permanently remained unresponsive to variants form of trade malpractice discharge concept.  Nigerians consumer’s rights have been ignored. This study therefore attempts to evaluate consumers’ rights and protection in Nigeria.

1.3 Objectives of the Study

The main objective of the study is to evaluate consumer right and protection in Nigeria. The specific objectives are as follows:

  1. To ascertain the extent of consumer protection in Nigeria.
  2. To unravel the various laws backing up consumers in Nigeria.
  3. To examine the role of the consumer right protection in protecting consumer.
  4. To examine the difficulties faced in implementing consumer right protection agency

1.4 Research Questions

Based on the objectives of the study, the following research questions were formulated.

  1. To what extent is consumer protection in Nigeria?
  2. What are the various laws backing up consumers in Nigeria?
  3. What is the role of consumer right protection in protecting consumer?
  4. What are the difficulties faced in implementing consumer right protection agency?

1.5 Research Hypotheses

The following research hypotheses were formulated to guide the researcher:

H01: There is no significant impact of consumer protection in Nigeria.

H02: There are no laws backing up consumers in Nigeria.

H03: There is no role of consumer right protection in protecting consumer.

H04: There are no difficulties faced in implementing consumer right protection agency.

1.6 Significance of the Study

Consumer rights and protection in Nigeria, consumer protection is one of the ways in which government has responded to consumer’s dissatisfaction and disenchantment. The government provides the legal frame work within which economic activity is carried on.  In the context of consumers and the business sector, the government tries to balance the interest of the two parties concerned in the case of consumers, the trust of government is mainly in the form of legislation to protect the consumer right to safety, right to be informed, right to choose, and right to be heard.

The specific measures taken to protect consumers include those probability unfair trade practice in the marketing and advertising of products, those protecting consumers against hazards to health and safety, services, labeling, branding and packing of product, the consumer is also assisting the effort to inform and educate consumers in various stage of the federation.

1.7 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves the evaluation of consumer’s right and protection in Nigeria.

Geographical Scope: This study is delimited in Port Harcourt Metropolis.

Unit of Analysis: The unit of analysis in this research involves selected consumers in Port Harcourt.

1.8 Limitation of Study

The limitation of this research work is somehow difficult to undertake and research of this magnitude without hitches.  Hence the prime most among the limitation was lack of material to be used as aids.

Secondly, time factor was also another big problem, as traveling expenses took much form the researcher.  Since the issue of consumerism is a new concept in Nigeria, relevant literature were lacking in most of the states as a result constituted another limitation to the research work.

1.9 Definition of Related Terms

CRPA: Consumer right protection agency

Consumerism: Consumerism is defined as a social movement that seeks to increase the right and power of consumers”.

Unethical Practice: These are practice that is alien to any business or private organization.

Consumer: It is a person who purchases goods and services for personal use.

Protection: It is the action of protecting, or the state of being protected.

Consumer Rights: Generally accepted basic consumer rights are (1) Right to safety: protection from hazardous goods.

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