THE ROLE OF TRANSPORTATION ON CONSUMER GOODS

(A CASE STUDY OF SELECTED NOODLES FIRMS IN PORT HARCOURT METROPOLIS)

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ABSTRACT

The study was determined to examine the role of transportation on consumer goods. The purpose of the study is to determine the extent to which road transport influences the durable goods, to examine the extent to which rail transport influence non-durable goods, to find out the extent to which road transportation and consumer goods relate and to examine the extent to which road transport enhance the marketing of consumer goods. The research design used descriptive and survey. The sample size consists of 100 senior and junior staff of duphil, Dangote and Big treat in Port Harcourt.  The research question were analyze using simple percentage, and Chi-Square was used for the test of hypothesis. Findings reveal that road transport had an impact on durable goods in selected noodle firms in Port Harcourt metropolis, Rivers State, it was also revealed that road transport have an impact on non-durable goods in selected noodle firms in Port Harcourt metropolis, Rivers State, findings revealed that road transportation relate with consumer goods in selected noodle firms in Port Harcourt metropolis, Rivers State and that transportation enhance the marketing of consumer goods in selected noodle firms in Port Harcourt metropolis, Rivers State. Finding collaborated with the hypothesis that there is a significant relationship between transportation and consumer goods.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

As life started mankind begin to nurse the need for basic necessities of life for physiological satisfaction as food, shelter, safety, among other things. At first man tried to provide the necessary things to satisfy his needs to engaging in hunting, fetching some selected plants for food and find shelter among tree shades as well as applying plants leaves to cover his nakedness (Rizet, 2001).

In the process of advancement man learnt that he could not provide all his needs by himself. Then the exchange process started. This began as an exchange of goods for goods otherwise called trade by barter. The person who has a particular product in excess of his need of that particular moment would look for the person that has a need for his excess. Produce and at the same time has the produce he lacked so that an exchange could take place (Hine (2003).So, the earliest trading or buying and selling practices were done on retail basis through the barter process.When a common medium of exchange was inverted the practices of trade by barter became less relevant in the exchange process. When barter was in vogue buyers and sellers did not take a conscious account of the cost and burden of carrying the goods around in search of a market. As money became the means of payment even the service of carrying marketable commodities to the market was paid for.

Price must be put on every commodity using money as the standard of measurement. The seller in calculating the expenses of his business must add the cost of transporting product from the point of production to the point of consumption. In the ancient times, man used mostly the best of burden to carry his goods from the point of production to the point of consumption; transportation nowadays has become more sophisticated, convenient, and faster. Some of the mode of transportation includes transport on railway, motor vehicles on road, ship, boats, canoes paddling though water and the airplanes flying the airway. The nature of production items of the order as well as the location of the market and the type of the market will determine the mode of transportation to employ (Rivers on JDN and S Carapetis 2001). Industrial revolution came into place and led to increasing productive capacity. Transportation is involved in every level of production and distribution until the product reaches the final users.

Most manufacturers and sellers want to enjoy the benefit of the economy offered by large-scale production and distribution. They also aspire to explore large markets and operate at competitive levels. They must manage costs and process to be able to operate with efficiency and remain afloat. In the Nigerian case, these distribution cost specifically transportation is sometimes viewed as some of the factors that account from increasing prices of goods (Sieber N2009). It is on this ground that the study examines the role of transportation on consumer goods.

1.2 STATEMENT OF PROBLEM

There has been a continuous increase in the price of consumer’s goods in Nigeria for many years now. These price increase have been alleged to be because of increase in the cost of raw materials, transportation, rent, capital and labour(Sieber N 2009). Among these variable, this study will attempt to determine the degree to which transportation affects process of consumergoods. The consumers allege that the increasing prices of a commodity are indication of the profiting attitude of sellers. On their own side, the seller level the blame of increasing prices on the increasing cost of input materials and facilitating agents. The difficulty now becomes how to determine which of them claims the truth about increasing prices. It has been reported that the increasing price have confirmed to make many families unable to fetch their three sure meals daily. The government, labour and consumerists have shown concern and made some efforts to bring the price increase under control without making any tangible headway.

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to examine the role of transportation cost on consumer goods prices, the specific objectives are as follows:

  1. To examine the extent to which road transport influences the durable goods.
  2. To examine the extent to which rail transport influence non-durable goods.

iii. To find out the extent to which road transportation and consumer goods relate.

  1. To examine the extent to which road transport enhance the marketing of consumer goods.

1.4 RESEARCH QUESTIONS

The following research questions are considered: –

  1. To what extent does road transport have an impact on durable goods?
  2. To what extent does road transport have an impact on non-durable goods?

iii. Does road transportation relate with consumer goods?

  1. What is the extent to which transportation enhance the marketing of consumer goods?

1.5 STATEMENT OF HYPOTHESES

The following hypothesis were formulated to guide the researchers

HO: There is no significant relationship between transportation and consumer goods.

HI: There is a significant relationship between transportation and consumer goods.

1.6 SIGNIFICANCE OF THE STUDY

This study will be of benefit to economic analysis in tracing the causes of inflation in Nigeria. It will be of immense use to marketing and management experts who would want some appropriate solutions to some of their marketing problems and efficiency.It will be an interesting source of material for academicians doing research in retail pricing for retail goods.It will also be a useful piece of information for government in their regulatory policies of price control and transport management.It will be a guiding tool for business men who are in the distribution service because this work will teach them how to control costs and make a competitive pricing.

1.7 SCOPE OF STUDY

The study is on the role of transportation on consumer goals. The content scope is domiciled in marketing distribution and logistics, role the content scope is in the role of transportation on consumer goods study on selected noodles firms in Port Harcourt metropolis which include Duphil, Dangote and Big treat. However, the researcher desire to limit to her sample size within only (3) the noodles firms to enable her draws her sample size.

1.8 LIMITATION OF THE STUDY

Every research study has certain limitation which fall short of ideas which the researcher has established or recognized given the critical and sensitive nature of the topic under this study the researcher encountered a number of problems which hindered the research work paramount among these constraints is the time frame within which the work was expected to be completed. The time period of completion for the work was too small considering the fact that topic covered the  listed supermarkets, beside the cost of embarking on this project work considering the volume of work involve also give its own constraints on the research work as the researcher  was not financially buoyant enough to carry out all the investigation furthermore, their own limitation as most, information sought for were mainly from the management and staffs of the listed supermarket in Port Harcourt Rivers State. Finally, the availability of material for the work also gave its own hindrance as the subject matter have been matter of public discussion without proper literature put on ground in books for academic purpose its worthy to mention that the major source of this work was on few textbooks.

1.9 DEFINITION OF TERMS

Air Transportation: it is the movement of passengers and cargo by aircraft and helicopter.

Consumer: A person who purchases goods and services for personal use.

Durable goods: they are category of consumer products that do not need to be purchased frequently because they are made to last for a long time.

Non-Durable goods: they are products that are consumed or are only useable for a short period of time because they wear out or become useless.

Rail Transportation: it is the means of transferring of passengers and goods on wheeled vehicles running on rails also known as tracks.

Road transportation: It is the movement of goods and personnel from on place to the other on road.

Sea Transportation: It refers to the movement of goods and passengers on water ways using various mean like boat, steamers, launchers, ships, etc.

Transport: Take or carry (people or goods) from one place to another by means of a vehicle, aircraft, or ship.

Transportation: It is the movement of people, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure, vehicles and operations.

 

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