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Abstract
The study was undertaken to examine the effect of consumer price perception on customer loyalty of Jumia Retail Outlet, Port Harcourt. The survey design was employed since the study was to ascertain the effect of consumer price perception on consumer loyalty. The study was designed to focus on Jumia Retail Outlet Port Harcourt, Rivers State. The population of this study constitutes management and staffs all Jumia Retail Outlet in Port Harcourt which was unknown. In this study both the primary and secondary data were used. A self-designed questionnaire on the effect of consumer price perception on consumer loyalty 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 revealed that perceived value is associated with customer loyalty of Jumia Retail Outlet Port Harcourt, brand trust is associated with customer loyalty of Jumia Retail Outlet Port Harcourt and brand effect is associated with customer loyalty of Jumia Retail Outlet Port Harcourt. Based on the finding of the study, we recommended that Jumia Retail Outlet should ensure the value of their product and services should be able to influence customer’s behavior and they should also ensure they maintain a stable price for their product and service.
Table of Contents
Title Page i
Cover Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Abstract vii
Table of Contents viii
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 2
1.3 Research Objectives 3
1.4 Research Question 4
1.5 Research Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitation of the Study 6
1.6 Definition of Terms 7
CHAPTER TWO 8
REVIEW OF RELATED LITERATURE 8
2.1 Conceptual Framework 8
2.1.1 Concept of Consumer Price Perception 9
2.1.2 Dimensions of Consumer price Perception 10
2.1.2 Concept of Customer Loyalty 15
2.1.3 Measures of Customer Loyalty 17
2.1.5 Consumer price Perception and Customer loyalty 20
2.2 Theoretical framework 22
2.2.1 Social Judgment Theory 22
2.3 Review of Related Empirical Studies 24
2.4 Summary of Literature Review 25
CHAPTER 3 27
RESEARCH METHODOLOGY 27
3.1 Introduction 27
3.2 Research Design 27
3.3 Population of the Study 27
3.4Sampling Techniques Used 28
3.5 Sample Size 28
3.6 Sources of Data 28
3.6.1 Primary Source (s) of Data 28
3.6.2 Secondary Sources of Data 29
3.7 Research Instrument for Data Collection 29
3.8 Validity and Reliability of Instrument 29
3.9 Techniques for Data Analysis 30
CHAPTER FOUR 32
DATA PRESENTATION AND ANALYSIS 32
4.1 Data Presentation And Analysis 32
Table 4.1 : Questionnaire Administration And Retrieval 32
4.2 Data Analysis 33
4.3 Hypotheses testing 40
4.4 Discussion of Findings 43
CHAPTER FIVE 45
SUMMARY, CONCLUSION AND RECOMMEDATION 45
5.1 Summary 45
5.3 Conclusion 46
5.4 Recommendation 47
REFERENCES 48
Appendix I 53
Appendix II 55
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Nowadays, consumers are becoming more value conscious, focusing on price and value as the primary reason for product and service (Cronin, Brady and Hult, 2000; McGowan and Sternquist,1998). In general, price is considered as unquestionably one of the most important marketplace cues due to its presence in all purchase situations. Higher prices negatively affect purchase probabilities (Sternquist and Jin, 2004). In the existing literature, perceived price is what a consumer gives up or sacrifices in order to obtain a product (Athanassopoulos 2000). Consequently, price plays an important role in influencing customers‟ decisions in choosing and developing loyalty with a particular product or service. These low-cost have pursued simplicity, efficiency, productivity and high utilization of assets. As a result, low cost has intensified market competition, especially price competition. Jumia has been under increasing price pressure as price cutting is a normal marketing tool to increase sales. Consequently, this price war forces the firm to re-evaluate their service offering and customer loyalty programs.
Notwithstanding that the uni-dimensional conceptualization of perceived value is extensively examined in empirical researches in explaining loyalty (Petrick and Backman, 2002), only a few studies examine perceived value in the multi-dimensional perspective. Most empirical studies examine only the uni-dimensional conceptualization of perceived value by comparing the benefits a consumer receives and the sacrifice for the attainment of a product or service (Zeithaml, 1988). The uni-dimensional assessment of perceived value has been argued of lacking validity (Woodruff and Gardial, 1996). Moreover, it fails to give specific direction on how to improve customers‟ perceived value (Petrick, 2002). There is, however, little understanding of how the multi – dimensions of perceived value influence customer loyalty in the airline context. Empirically, the meaning of perceived value used in the marketing literature is more complex than its traditional conceptualization and should be extended to include five dimensions: quality, emotional response, monetary price, behavioral price and reputation (Petrick, 2002, 2004). From the foregoing therefore, this study seeks to examine the effect of consumer price perception on customer loyalty of Jumia Retail outlet Trans-Amadi Port Harcourt.
1.2 Statement of Problems
This study extends the knowledge of previous research by assessing the extent to which each dimension of consumer price perception influence customer loyalty. The effect of consumer price perception on customer loyalty cannot be overemphasized. It has been long acknowledged that creating and delivering superior customers‟ perceived value is regarded as a strategic weapon in attracting and retaining customers and has become one of the most significant factors in the success of both manufacturing businesses and service providers (Wang et al., 2004). Brand effect plays a crucial role in developing customer loyalty (Gremler and Brown 1998).Brand trust is the confident expectations of the brands reliability and intentions (Delgado, Munuera, 2003) and the confidence a consumer develops in the brands reliability and integrity (Chatterjee and Chaudhuri, 2005).But in Jumia retail outlet the reverse is the case. Problems that leads to this study is lostof confidence in a brand, poor perceived value and poor low brand effect. Customer loyalty is argued to be stronger under the condition of low price perception and vice versa (Peng and Wang, 2006).Several studies have been conducted on consumer price perception and customer loyalty. Petrick, (2002) studied consumer price perception and customer loyalty in the airline context. Jin and Sternquist, (2005), also studied consumer price perception and customer loyalty in the banking sector. But no study has been conducted on consumer price perception and customer loyalty in Jumia Retail Outlet Port Harcourt. Therefore this study is determined to examine the effect of Consumer Price Perception on Customer Loyalty of Jumia Retail Outlet Port Harcourt.
1.3 Research Objectives
The main objective of the study is to examine the effect of Consumer Perception on Customer Loyalty of Jumia Retail Outlet, Port Harcourt. The specific objectives are as follows:
1. To examine the extent to which perceived value associate with customer loyalty of Jumia Retail Outlet Port Harcourt.
2. To examine the extent to whichbrand trust associate with customer loyalty of Jumia Retail Outlet Port Harcourt.
3. To examine the extent to which brand effect associate with customer loyalty of Jumia Retail Outlet Port Harcourt.
1.4 Research Question
The following research questions are posed to guide the study:
1. To what extent does perceived value associate with customer loyalty of Jumia Retail Outlet Port Harcourt?
2. To what extent does brand trust associate with customer loyalty of Jumia Retail Outlet Port Harcourt?
3. To what is brand effect associate with customer loyalty of Jumia Retail Outlet Port Harcourt?
1.5 Research Hypotheses
The following research hypotheses are postulated to guide the study:
HO: There is no significant relationship between perceived value and customer loyalty of Jumia Retail Outlet Port Harcourt.
HO: There is no significant relationship between brand trust and customer loyalty of Jumia Retail Outlet Port Harcourt.
HO: There is no significant relationship between brand effect and customer loyalty of Jumia Retail Outlet Port Harcourt.
1.6 Significance of the Study
The study will help marketing organization that would like to embark on marketing and assist them in establishing a well rooted company through the enhancement of sales.
It will also be of great importance to other companies in that at the end of the study, they would diligently make reference to this work and also take the necessary measures to meet up with efficient and effective pricing strategies that will improve customer loyalty in Jumia and other retail organizations.
The study at its conclusion will contribute to literature on consumer price perception particularly with reference to customer loyalty. Also, this work on completion will broaden the essence for application of modern marketing techniques for marketing organizations in Nigeria.
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 effect of consumer price perception on customer loyalty in Jumia Retail Outlet. The dependent variable is customer loyalty, measured by attitudinal loyalty and behavioral responses. While independent variable is consumer price perception measured by perceived value, brand effect and brand trust.
Geographical Scope:The geographical scope of the study is limited to Jumia Retail Outlet in Port Harcourt.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of Jumia Retail Outlet in Port Harcourt at the time of carrying out the 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.
1.6 Definition of Terms
Perception
It is the process through which we receive and interpret information from our environment and create a meaningful, word out of it.
Consumer
It is referred to the individual who purchase or has the capacity of purchasing goods and services offer for sale by marketing institution in order to satisfy personal or household needs and want or desire.
Customer loyalty
It is the result of consistently positive emotional experience, physical attribute-based satisfaction and perceived value of an experience, which includes the product or services.
Price
A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services. In modern economies, prices are generally expressed in units of some form of currency
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