THE IMPACT OF PRODUCT QUALITY ON SALES PERFORMANCE IN NIGERIA BOTTLING COMPANY

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ABSTRACT

The study examined the impact of product on sales performance In Nigeria Bottling Company. The purpose of the study is to examine the impact of product quality on sales performance in Nigerian bottling company. The research design used descriptive and survey method of data collection. The population of the study is made up of all manufacturing organizations in Rivers State. The sample size of this study is judgmental sample of 100 respondents which comprises of both the senior and junior staffs of Dangote cement and uniliver PLC both in Port-Harcourt Metropolis. Findings revealed that Product quality has significant impact on the sale volume of manufacturing organizations in Rivers State. Based on the findings of summary conclusion and recommendations were made that management should improved on the quality of the products they introduce to the market to enhance increase in sales volume of the organization, organizations should try and monitor the production department to ensures that the right materials are always available for production purposes, tThe reliability of the product should also be checked so that the product can command attention in the market, management should also make sure that the product can stand the test of time before introducing it into the market.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

This study is to give a clearer view of how product quality namely performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality (Garvin, 1984) plays very important role in being influential to customer satisfaction and as well increase sales performance in Nigeria bottling company. This research will determine customer satisfaction on which attributes in the product quality from the types of attributes mentioned when price discounting occurs. This research will also determine the effect of low pricing product with the product quality whether it play the same result of low price products produces low quality product and vice-versa. Most people were attracted with quality of the product because customers can enjoy satisfaction by buying quality products and services. Purchasing a low quality product will the standard of the product be equalize with price. This create dilemma for consumers because customers are to choose either low quality product for low financial sacrifice and probably a low quality or a high price product that will have consumer to have high financial sacrifice and to be assure that to have high quality product but it is not a guarantee (Suri et al., 2000).

When sales come around, will the product quality that will the customer perceive will be forgotten because of the main motive is expenses are minimized. Special deals will influence the rationality of consumer  to decide precisely because the price is here out once lowest in the market that only happens once in a blue moon (Inman et al, 1997) where the lower pricing excites consumer and their motive of purchasing is to be left behind because the effect of excitement (Suri et al. , 2002).

Product Quality Management is a philosophy and a set of guiding principles that represent the foundation of an excellent organisation and to ensure survival of industrial organisations in the competitive economy of today (Besterfield, 1999).  Product Quality is a technique that underscores the continuous improvement of product and service quality to satisfy customers and enhance sales volume productivity in manufacturing organization.

1.2 STATEMENT OF PROBLEMS

Product quality practices have been shown to enhance sales performance in both product and service organizations (Powell, 1995). However, there is relatively little research on how product quality influences the sales performance in manufacturing companies. We know little about how these different types of manufacturing organizations in view of what they do, how well they do it, and its consequences. Rather, the growing body of research on products quality has focused on external customer perceptions of quality and satisfaction rather than  organizational knowledge  of  quality practices (Anderson, Fornell, & Rust, 1997; Edvardsson, Johnson, Gustafsson, & Strandvik, 2000; Fornell & Johnson, 1993; Fornell, Johnson, Anderson, Cha, & Bryant, 1996; Huff, Fornell, & Anderson, 1996).

There this research work aims to empirically examine the impact of product quality on sales performance in Nigerian Bottling Company.

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to examine the impact of product quality on sales performance in Nigerian bottling company. The specific objectives are as follows:

  1. To examine the extent to which high quality product have enhanced sales performance in Nigerian bottling company.
  2. To evaluate sales performance towards product quality dimensions (performance, reliability and durability).
  3. To evaluate the relationship of sales performance on product quality components (product testing and verification, identification of non-conformity and corrective actions).

1.4 RESEARCH QUESTION

  1. To examine the extent to which high quality product have enhanced sales performance in Nigerian bottling company.
  2. Do product dimensions (product performance, reliability and durability) influence the sales performance of a product?
  3. What are the relationship of sales performance to product testing and verification, identification of non-conformity and corrective actions?

1.5 STATEMENT OF HYPOTHESES

The following hypotheses were formulated to guide the study:

HO: Product quality has no significant impact on the sale performance of Nigerian bottling company.

HI: Product quality has significant impact on the sale performance of Nigerian Bottling company.

1.6 SIGNIFICANCE OF THE STUDY

The  significance  of  the  study  cannot  be  over  emphasize., The  study  enables  the  manufacturing organizations  see  the   need  for improving on the quality of their product and services and the efficiencies  of  their  service  to  their  customers the  study  also  provides  an  insight  into  the various ways  in  which  product and service quality increase  firms  productivity.  The study  will  also  reveal  the  need  for  improvement  in  the  demanding, desires  of  their  customers  and  compete  with  their  counter  parts  on the product and service line. This  will  also  be  beneficial  to  students  that  will  carry out  further  research  work  and  also to Government  for policy making implementation.

1:7 SCOPE AND DELIMITATION OF THE STUDY

This study covers the Impact of product quality on sales volume on the sales performance of Nigerian bottling company.  All  manufacturing organizations  could  have  been  covered  but  for  time  and  cost  constraints.  So the researcher decided to pick Nigerian bottling company Port Harcourt Rivers State as a case study.

1:8 LIMITATION OF THE STUDY

The study is limited to the following limitations:

The level of frankness in response to questions by the respondents is quite doubtful.

Finance: Accessing fund for the research work as difficult and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.9 DEFINITION OF TERMS

Product: An article or substance that is manufactured or refined for sale.

Quality: The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Sales performance: The quantity or number of products sold or services provided by a company in a particular period of time: higher/lower/total sales performance boost/increase sales.

Manufacturing: Make (something) on a large scale using machinery.

Organization: An organized body of people with a particular purpose, especially a business, society, association, etc.

 

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