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Abstract
The study has examined the relationship between product branding and customer patronage of fast moving consumer goods. The survey research design was employed since the study was to ascertain product branding and customer patronage of fast moving consumer goods which include Indomie, Peak Milk and Oral B tooth paste. The population of this study constitutes all users of fast moving consumer goods in Port Harcourt which were unknown. The sample size of this study is judgmental sample of 85 respondents which comprise of all users of fast moving consumer goods in Port Harcourt. In this study both the primary and secondary data were used. A self-designed questionnaire on product branding and customer patronage of fast moving consumer goods was used and administered for the collection of data from the respondents. 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. Findings reveal finding also showed a significant relationship between brand culture and customer patronage of fast moving consumer goods, findings also showed a significant relationship between brand communication and customer patronage of fast moving consumer goods and the study also revealed a significant relationship between brand innovation and customer patronage of fast moving consumer goods. Based on the finding of the study, we recommended that firms manufacturing consumer goods should expand their focus and improve the quality of goods and services they offer, firms manufacturing consumer goods should also maintain a good price to increase customer patronage and reduce brand switch.
Table of Contents
Title Page 41
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Abstract 41
Table of Contents 41
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Significance of Study 5
1.7 Scope of the Study 5
1.8 Limitation of Study 6
1.9 Definition of Terms 6
CHAPTER TWO 8
REVIEW OF RELATED EMPIRICAL REVIEW 9
2.0 Introduction 9
2.1 Conceptual Framework 9
2.1.1 Concept of Product Branding 10
2.1.2 Dimensions of Product Branding 13
2.1.3 Concept of Customer Patronage 16
2.1.4 Customer Patronage Development 18
2.1.5 Measures of Customers Patronage 18
2.1.6 Relationship between Product Branding and customer patronage 19
2.2 Theoretical Framework 20
2.2.1 Elaboration Likelihood Model (ELM) 20
2.3 Review of Related Empirical Studies 21
2.4 Summary of Literature Review 23
CHAPTER THREE 24
RESEARCH METHODOLOGY 26
3.1 Introduction 26
3.2 Research Design 26
3.3 Population of the Study 26
3.4 Sampling Techniques Used 27
3.5 Sample Size 27
3.6 Source of Data 28
3.6.1 Primary Source (s) of Data 28
3.6.2 Secondary Source of Data 28
3.7 Research Instrument for Data Collection 28
3.8 Validity and Reliability of Instrument 28
3.9 Techniques for Data Analysis 29
CHAPTER FOUR 30
DATA PRESENTATION AND ANALYSIS 30
4.1 Introduction 30
4.2 Presentation of Question/Items in the Questionnaire and Analysis of Responses 30
4.3 Testing Of Hypothesis 32
4.4 Discussion of Findings 37
CHAPTER FIVE 39
SUMMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 39
5.0 Introduction 39
5.1 Summary of Findings 39
5.2 Conclusions 39
5.3 Recommendations 40
References 41
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Appendix II 41
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Customer patronage as the intangible connections between a customer and the company and constructs customer patronage from customers’ basic needs. In ICRM practice and needs construct value and value determine customer patronage. This intangible customer patronage is the fundamental force behind a customer’s “loyalty” behaviors and the ultimate factor that provides a company with sustainable competitive advantages. To win a customer in his lifetime, it is far enough to just keep this customer’s account active in a company’s database or to keep this customer buying from the company. A company must win this customer’s patronage from his/her heart by providing him the best value among the competitors (ICRM, 2002).
One construct that enhance customer patronage is product branding. Many products offered to the market must be branded, and branding is one of the elements in the product planning activities of a firm. It must do with the efforts a firm makes in choosing, developing, projecting and establishing its own brand(s) of products. Branding has emerged as a top management priority in the last decades due to the growing realization that brands are one of the most valuable intangible assets that firms have. Companies are realizing the power of good branding (brand name) to create instant consumer recognition of the company‘s product. For example, in an average Supermarket, which stocks 15,000 to 17,000 items, the typical shopper passes by some 300 items per minute, and 53 percent of all purchases are made on impulse (Abrams, 2002). In this highly competitive environment, branding (brand name) may be the sellers‘ last chance to influence buyers. Many definitions of branding have been offered by different authors and a lot of reasons have also been deduced by different authorities as justifications for the adoption of branding as a marketing strategy. What is more, the popularity of a brand has often been said to be a direct push for sales turnover (Ogbuji, 2008). Not minding the vagaries of definitions of branding, the fact still remains that it is an important aspect of every firms marketing activity that cannot be over looked. Branding has been said to be as important as a child‘s naming ceremony and as old as man/creation (Okpara 2002).
According to Kotler and Keller (2009), a brand is thus a product or service whose dimensions differentiate it in some way from other products or services designed to satisfy the same need. The differences may be functional, rational, or tangible or intangible related to what the brand represent. It involves decisions that establish an identity for a product with the goal of distinguishing it from competitors offering. Branding is a fixation of special and unique image or attribute to a particular product which makes it to be exceptional among other products in the eyes and minds of consumers. (Ehikwe 2005).From the above definition of branding, it means that a brand has an added value to the physical product beyond the core product. These may be aesthetic, emotional, psychological and philosophical values that are embedded in the minds and hearts of consumers. Based on the definition, a brand is a product and the value-added which personifies it beyond the core product. Onah and Thomas (2004), identified the various types of brands as manufacturer‘s brand and private brands. They posited that branding helps to facilitate the performance of the various other Marketing Management functions like New Product Introduction, Advertising and other Promotions, Pricing etc. It is strongly speculated that most times, what consumers buy is name and not quality or functionality or performance.
Anyanwu (1999), commenting on branding said that it is the use of a name, term, symbol or design or a combination of these to identify a product. This statement infers that branding identifies the product for the consumer and relates it to branding and product design.
Obiesie (2003) captured the very essence of branding when he described it as an integral and intimate part of a product strategy. This suggests that a product is not complete until it is given a name, mark or symbol. He went further to describe branding as a name, term, sign, symbol, or design or a combination of these which is intended to identify the goods or services of one seller or group of sellers and distinguish them from those of its competitors. From the foregoing therefore, the study is determined to examine the relationship between product branding and customer patronage of fast moving consumer goods.
1.2 Statement of the Problem
With the fierce competition and the saturated market already, companies must work hard to reduce cost, win new customers and most importantly retain the existing ones. To retain consumers in face of this keen competition, companies must develop marketing strategies that will not only win customers but to retain them also. Branding has been identified as one of the major tool in the hands of firms to increase customer patronage. In this highly competitive environment, branding (brand name) may be the sellers‘ last chance to influence buyers and also differentiate it from similar products.
Branding is a fixation of special and unique image or attribute to a product which makes it to be exceptional among other products in the eyes and minds of consumers (Ehikwe, 2005).From the above definition of branding; it means that a brand has an added value to the physical product beyond the core product. These may be aesthetic, emotional, psychological and philosophical values that are embedded in the minds and hearts of consumers. Based on the definition, a brand is a product and the value-added which personifies it beyond the core product.
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between product branding and customer patronage of fast moving consumer goods. The specific objectives are as follows:
1. To examine the extent to which brand experiences associate with and customer patronage of fast moving consumer goods.
2. To examine the extent to which brand communication associate with customer patronage of fast moving consumer goods.
3. To examine the extent to which brand innovation associate with customer patronage of fast moving consumer goods.
1.4 Research Questions
Based on the objectives of the study, the following research questions were formulated.
1. To what extent does brand experiences associate with customer patronage of fast moving consumer goods.
2. To what extent does brand communication associate with customer patronage of fast moving consumer goods.
3. To what extent does brand innovation associate with customer patronage of fast moving consumer goods.
1.5 Research Hypotheses
The following research hypotheses were formulated to guide the researcher:
H01: There is no significant relationship between brand experiences and customer patronage of fast moving consumer goods.
H02: There is no significant relationship between brand communication and customer patronage of fast moving consumer goods.
H03: There is no significant relationship between brand innovation and customer patronage of fast moving consumer goods.
1.6 Significance of Study
This study is significant in the sense that it throws more light to the effect of product branding on customer patronage, which is the optimal target of marketing.
The result of the work will benefit the management of the selected organization, as it shows them the perception of the market of it product branding. The information gotten here will enable adjust where there is need for in order to project a better brand image in the minds of their customers and potential customers.
Also this research work is expected to provide to the academic sector a new horizon of enlightenment, as it will serve as a basis for further research into related topics.
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 an investigation to ascertain the relationship between product branding and customer patronage of fast moving consumer goods. The dependent variable is customer patronage, measured by sales volume, profit margin and customer retention. While independent variable is product branding measure by brand experience, brand culture, brand communication and brand innovation.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with references to some selected fast-moving consumer goods.
Unit of Analysis: The unit of analysis in this research involves users of Indomie, Peak Milk and Closeup Tooth Paste. The scope of this study is to ascertain the relationship between product branding and customer patronage of fast moving consumer goods in Port Harcourt.
1.8 Limitation of Study
The study was limited by the following:
The level of frankness in response to questions by the respondents is quite doubtful.
Finance: Accessing fund for the research work is difficult and 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
CUSTOMER: A person or organization that buys goods or services from a store or business.
MARKET: Market is people or organization that has money, they ready and willing to spend their money for the product of choice during a marketing plan.
MARKETING MIX: The marketing mix refers to the set of actions or fact that the company uses to promise its bound or product in the market.
MARKETING: Marketing is the process of planning and executing the consumption pricing, promoting and distribution of ideas goods and services to create exchange that satisfy individual and organizational objective.
PATRONAGE: Patronage is customers or the financial support from customers or guests.
PRODUCT: An article or substance that is manufactured or refined for sale.
PRODUCTS: A product is an article or substance that is manufactured or refined for sales.
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