Professional Documents
Culture Documents
BUYING BEHAVIOUR
(A CASE STUDY OF GLOBACOM NIGERIA LIMITED)
BY:
JUNE 2010
CERTIFICATION
This project work has been read and approved as meeting the
requirements for the award of a Bachelor of Science degree, B.Sc (Hons)
in Business Administration of Faculty of Business and Social Sciences,
University of Ilorin, Nigeria.
..
Dr. J. O. OLUJIDE
Project Supervisor
Date
..
Date
..
PROF. A. F. ADEDAYO
Dean of Faculty
Date
..
External Examiner
Date
II
DEDICATION
This research work is dedicated to Almighty Allah whose glory
is the essence of my living and whose ever-lasting presence has
seen me through all my struggles and that would usher me into my
God-given destiny.
III
ACKNOWLEDGEMENTS
I am expressing my profound gratitude and unaltered
appreciation to Almighty Allah who made sure I finally acquired my
university education despite all odds.
My appreciation also goes to my brilliant and admirable
supervisor Dr. J. O. Olujide, whose advice and suggestions proved
vital in the course of the research work.
Moreover, I will like to appreciate the moral and financial
support given to me by my loving and caring parent Mr. and Mrs.
Ademuyiwa, I say a very big THANKS to them.
Also my appreciation goes to Dr. (Mrs.) S. L. Adeyemi [H.O.D],
Dr. J. O. Adeoti, my level adviser and other lecturers in the
department like Dr. M. A. Aremu, Dr. U. Gunu, Dr. J. A. Bamiduro, Dr.
R. A. Gbadeyan, Dr. S. B. Babaita, Mr. I. B. Kadri, Dr. J. A. Oladipo,
Dr. O. A. Ilesanmi. May the Almighty God be with them and reward
them abundantly.
My sincere appreciation also goes to my siblings Mrs.
Mojeedat Abdulsalam, Idris Ademuyiwa, Ismaeel, Rafiat, Taoreed,
Quadri, Iyabode, Shakirat, Moruf, Morufat and others. I also need to
IV
thanks
is
beyond
the
containment
of
this
ABSTRACT
The depressed nature of Nigerian economy has weaken the
purchase power of consumers of products and goods and services.
The research survey has critically examined the effect which sales
promotion has on Globacom Nigeria Limited together with the
resultant effect on customers buying behaviour and the level at
which customers try and adopt their packages.
The major tools use in collection of primary and secondary
data were the use of 100 administered questionnaires which was
distributed among executives of Globacom Nigeria Limited, the
middlemen
(wholesalers,
retailers
and
distributors)
and
the
VI
ii.
VII
TABLE OF CONTENTS
PAGE
TITLE
CERTIFICATION
II
DEDICATION
III
ACKNOWLEDGEMENT
IV
ABSTRACT
VI
TABLE OF CONTENTS
VIII
CHAPTER ONE
INTRODUCTION
1.1
1.2
1.3
Research Questions
1.4
1.5
1.6
1.7
Definition of Terms
10
VIII
CHAPTER TWO
LITERATURE REVIEW
2.1
15
2.2
16
2.3
18
19
19
2.4
20
22
24
27
28
2.5
30
30
31
31
33
34
IX
34
2.6
35
2.7
37
2.8
38
40
40
41
41
2.9
41
42
43
44
44
46
46
49
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Introduction
52
3.2
52
3.3
3.4
55
3.5
55
3.6
3.7
Regression Analysis
57
3.8
Research Hypothesis
58
56
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.0
59
4.1
59
4.2
66
4.3
68
4.4
71
4.5
Test of Hypothesis
80
XI
4.6
Discussion of Results
86
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
5.1
Introduction
89
5.2
Summary of Findings
89
5.3
Conclusion
91
5.4
Recommendation
92
References
95
Appendix: Questionnaire
97
XII
CHAPTER ONE
INTRODUCTION
1.1
1.2
the
major
challenge
of
the
telecommunication
1.3
RESEARCH QUESTIONS
The following research questions relevant to the study are
raised:
-
sales
promotion
plans
in
the
Nigerian
1.5
study will
be
useful
for
students,
1.6
1.7
DEFINITION OF TERMS
The following terms are defined as they are used in this
study:
PROMOTION: Promotion keeps the products in the minds of
the customers and help stimulate demand for the product.
Promotion involves on-going advertising, sales promotion and
publicity.
MARKETING: This is the wide range of activities involved in
making sure that the company is continuing to meet the needs
of their customers and getting value in return. Marketing also
includes analyzing the competitive positioning of new packages
or products or services (finding market niche), pricing products
10
CHAPTER TWO
LITERATURE REVIEW
There are two primary means of preventing ideas, goods
or services to those who can use them. Yet there are two
additional promotional methods that when combined with
effective advertising and personal selling programmes really
add up to more than the parts. These methods are sales
promotion and public relations. Almost, everybody has a slight
idea of what public relations is but most people are a bit vague
about sales promotion.
So while sales promotion is a part of promotion, it is not
the same thing as promotion. Sales promotion is a broad label
that is applied to special kinds of sales accelerating activities
not necessarily classified as advertising, personal selling of
publicity and public relation. (Robert George Brown 1974).
Stanton (1997:497) on his part viewed sales promotion as
demand
stimulating
services
designed
to
supplement
definition
given
by
the
American
Marketing
2.1
2.2
17
advisory
service
promotes
long
term
2.3
2.3.1
EXTERNAL FACTORS
Among the external factors responsible for the growth of
The
trade
has
demanded
more
deals
from
manufacturers.
2.3.2
INTERNAL FACTORS
The internal factors that account for the rapid growth of
19
Promotion
is
now
more
accepted
by
the
top
2.4
falls
into
the
broad
categories:
retail,
coupons,
22
counter
offer
can
significantly
reduce
the
23
2.4.2 SALES
PROMOTION
TECHNIQUES
FOR
NEW
PRODUCTS
A number of sales promotion tools can be used to
promote new products. Some of the most common tools used
are free samples, coupons and money funds.
FREE SAMPLE
Samples are offers of a free amount of a product or
services using several modes of distribution door to door, sent
in the mail, picked up in store, found attached to another
product or features in an advertising offer.
Marketers often use free samples for several reasons.
-
Product trial
MONEY REFUNDS
Cash refund offers provide a price reduction after a
purchase rather than at the retail shop. The consumer sends a
specified proof of purchase (e.g. box tops, sweet wrappers
e.t.c.) to the manufacturers who refunds part of the purchase
price by mail.
Refunds
create
and
accelerate
sales
26
volume
by
27
CONSUMER CONTESTS
In consumer contents, individual compete on the basis of
their analytical or creative skill. A contests call for consumers to
submit an entry, a single estimate, suggestion to be examined
by a panel of judges who will select the best entries.
CONSUMER SWEEPSTAKES
Sweepstakes calls for consumers to submit names, sign
and drawings fro prices. Sweepstakes are employed to
stimulate sales and like contests are sometimes teamed with
other sales promotion method.
use
sales
promotion
technique
to
BUYING ALLOWANCES
A buying allowance can be defined as a temporary price
reduction to resellers (retailers) for purchasing specified
quantities of a product. Such offers may provide an incentive to
handle a new product and achieve temporary price reduction or
stimulate the purchase of an item in large normal quantities.
BUY BACK ALLOWANCES
A buyback allowance is a certain sum of money that is
given to a purchase for each unit bought after an initial deal is
over. It is a secondary incentive whereby the total amount of
money that buyers can receive as proportional to their purchase
during the initial trade deal.
SALES CONTESTS
A sales contest is designed to motivate distributors
retailers and sales personnel by recognizing outstanding
achievement equitable for all sales persons involved.
29
2.5
MAJOR
DECISIONS
INVOLVED
IN
SALES
PROMOTION
The following are the major decisions companies
normally take in embarking on sales promotion (Philip Kotler,
1982:668-677).
2.5.1 MAJOR
DECISIONS
INVOLVED
IN
SALES
PROMOTION
There is need to state in clear terms the dims and
objectives of sales promotion. The market of interest will affect
the sales promotion objectives. In this case, sales promotion for
consumers to purchase larger size units and attract switchers
away from competitors product are common.
Inducement of off season and the encouragement of
more prospects are some of the objectives of sales promotion
for the sales person.
30
2.5.3 DEVELOPMENT
OF
SALES
PROMOTION
PROGRAMME
The extra decision to be made is to define the full
promotion programme. This involves the accomplishment of
several tasks. These are:
i.
31
ii.
iii.
iv.
v.
vi.
2.5.4 PRE-TESTING
OF
THE
SALES
PROMOTION
PROGRAMME
After
thorough
design
of
the
sales
promotion
2.6
the attention of customers, resellers and sales people and to rechannel the activities towards the increased purchase and sale
of specially promoted items.
These efforts inform the customers dramatically that this
may be an opportunity to buy which may not come again. Also,
this merchandise is special and has a low priced once in a
lifetime value, such appeals are infectious with some buyers
particularly the deal-prone consumer, such consumer are often
fickle and wait only for the blandishment of the next seller with
special promotion to switch their loyalty from the previously
promoted product to the new on in promotion.
Sales promotion must therefore be used judiciously and
sparingly, some special promotional activities can be signed to
35
II.
III.
that
unintentionally
36
create
negative
customer
attitude
and
can
actually
boost
2.7
behaviour
emerged
when
the
sellers
2.8
38
High Involvement
Complex Buying
behaviour
Dissonance
reducing behaviour
39
Low Involvement
Variety seeking
buying behaviour
Habitual Buying
behaviour
40
occurs
under
conditions
of
low
consumer
2.9
Information Search
Evaluation of alternatives
Purchase Decision
Post-Purchase Behaviour
Personal
Source:
Family,
friends,
neighbour,
acquaintances.
-
43
I.
Attitudes of others.
II.
ATTITUDES OF OTHERS:
The extent to which another persons attitude reduces
ones preferred alternative depends on two things.
-
45
INFLUENCING
CONSUMER
BUYING
BEHAVIOUR
The consumer buying behaviour is influenced by variety
of factors which are cultural, social, personal and psychological
factors.
2.10.1
CULTURAL
46
2.10.2
SOCIAL
2.10.3
PERSONAL
47
2.10.4
PSYCHOLOGICAL
48
2.11 EFFECT
OF
SALES
PROMOTION
ON
BUYING
BEHAVIOUR
Understanding sales promotion and buying behaviour, will
give insight to the impact of sales promotion on buying
behaviour of customers. Different organization use different
sales promotion technique in order to influence the buying
behaviour of their customers. Also, customers react to sales
promotion differently.
According to J. Paul Peter and Jerry C. Olson (1999), the
effectiveness of sales promotion on consumer buying behaviour
has been identified. Several points were made that influence
the buying behaviour of consumers. The following are the effect
of sales promotion on the behaviours of buyers.
-
51
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
INTRODUCTION
In this chapter, we shall deal with the methods by which
3.2
the
total
population
of
work
force
of
and
retail
customers
across
the
country.
52
3.3
53
strategies
embarked
upon
by
GLOBACOM
NIGERIA include GLO talk points, GLO 100 crash rate, GLO
free night calls among other.
54
3.4
3.5
55
3.6
simple
percentage
frequency
distribution.
The
56
3.7
REGRESSION ANALYSIS
Regression Analysis is a statistical technique that
57
level of significance.
3.8
RESEARCH HYPOTHESIS
From the research questions, we can now deduce the
research hypothesis.
1. Ho: Sales promotion has no significant impact on the
buying behaviour.
2. Ho: Sales promotion does not lead on repeat purchase
and product loyalty.
58
CHAPTER FOUR
4.0
and
interprete
data
obtained
from
the
questionnaire
4.1
59
Percent
Female
3
30.0
Male
7
70.0
Total
10
100.0
Source: Field Survey 2010
Valid
Percent
30.0
70.0
100.0
Cumulative
Percent
30.0
100.0
60
Percent
20.0
Valid
Percent
20.0
Cumulative
Percent
20.0
16-
25years
26-
70.0
70.0
90.0
10.0
100.0
35years
36 and
1
10.0
above
Total
10
100.0
Source: Field Survey 2010
100.0
Frequency
Percent
Single
5
50.0
Married
5
50.0
Total
10
100.0
Source: Field Survey 2010
Valid
Percent
50.0
50.0
100.0
Cumulative
Percent
50.0
100.0
Percent
Less than
6
60.0
5years
Married
4
40.0
Total
10
100.0
Source: Field Survey 2010
Valid
Percent
60.0
Cumulative
Percent
60.0
40.0
100.0
100.0
62
20.0
70.0
Valid
Cumulative
Percent
Percent
20.0
20.0
70.0
70.0
10.0
10.0
10.0
100.0
100.0
100.0
40.0
63
Valid
Cumulative
Percent
Percent
40.0
40.0
Sales
6
Promotion
Total
10
Source: Field Survey 2010
60.0
60.0
100.0
100.0
100.0
the
company
reaches
out
to
customers
through
TABLE
4.1
DISTRIBUTIONS
OF
RESPONSES
Quarterly
Monthly
Frequency
Percent
4
1
40.0
10.0
64
Valid
Percent
40.0
10.0
Cumulative
Percent
40.0
50.0
Weekly
3
30.0
Daily
2
20.0
Total
10
100.0
Source: Field Survey 2010
30.0
20.0
100.0
80.0
100.0
4.2
Percent
Male
14
70.0
Female
6
30.0
Total
10
100.0
Source: Field Survey 2010
65
Valid
Percent
70.0
30.0
100.0
Cumulative
Percent
70.0
100.0
Percent
Distributor
2
Wholesaler
8
Retailer
10
Total
20
Source: Field Survey 2010
10.0
40.0
50.0
100.0
Valid
Percent
10.0
40.0
50.0
100.0
Cumulative
Percent
10.0
50.0
100.0
4.3
Percent
Male
41
58.6
Female
29
41.4
Total
10
100.0
Source: Field Survey 2010
Valid
Percent
58.6
41.4
100.0
Cumulative
Percent
58.6
100.0
Frequency
Percent
Single
51
72.9
Married
14
20.0
Others
5
7.1
Total
70
100.0
Source: Field Survey 2010
Valid
Percent
72.9
20.0
7.1
100.0
Cumulative
Percent
72.9
92.9
100.0
2.9
Valid Cumulative
Percent
Percent
2.9
2.9
12.9
12.9
15.7
74.3
10.0
100.0
74.3
10.0
100.0
90.0
100.0
1625years
2635years
36-
Frequency
Percent
58.6
Valid
Percent
58.6
Cumulative
Percent
58.6
41
21
30.0
30.0
88.6
8.6
8.6
97.1
2.9
100.0
45years
46years
2
2.9
and
above
Total
70
100.0
Source: Field Survey 2010
100.0
4.4
TABLE
4.4A
DISTRIBUTION
OF
RESPONSES
ON
Percent
SA
41
41.0
A
49
49.0
I
2
2.0
D
6
6.0
SD
2
2.0
Total
100
100.0
Source: Field Survey 2010
Valid
Percent
41.0
49.0
2.0
6.0
2.0
100.0
Cumulative
Percent
41.0
90.0
92.0
98.0
100.0
4.4B
DISTRIBUTION
OF
RESPONSES
ON
Percent
70
Valid
Cumulative
SA
20
20.0
A
52
52.0
I
2
2.0
D
19
19.0
SD
7
7.0
Total
100
100.0
Source: Field Survey 2010
Percent
20.0
52.0
2.0
19.0
7.0
100.0
Percent
20.0
72.0
74.0
93.0
100.0
4.4C
DISTRIBUTION
OF
RESPONSES
ON
SA
A
I
D
Frequency
Percent
22
52
15
6
22.0
52.0
15.0
6.0
71
Valid
Percent
22.0
52.0
15.0
6.0
Cumulative
Percent
22.0
74.0
89.0
95.0
SD
5
5.0
Total
100
100.0
Source: Field Survey 2010
5.0
100.0
100.0
TABLE
4.4D
DISTRIBUTION
OF
RESPONSES
ON
SA
A
I
D
SD
Frequency
Percent
38
39
8
10
5
38.0
39.0
8.0
10.0
5.0
72
Valid
Percent
38.0
39.0
8.0
10.0
5.0
Cumulative
Percent
38.0
77.0
85.0
95.0
100.0
Total
100
100.0
Source: Field Survey 2010
100.0
4.4E
WHETHER
DISTRIBUTION
SALES
OF
PROMOTION
RESPONSES
BRINGS
ON
ABOUT
Percent
SA
48
48.0
A
42
42.0
I
4
4.0
D
5
5.0
SD
1
1.0
Total
100
100.0
Source: Field Survey 2010
Valid
Percent
48.0
42.0
4.0
5.0
1.0
100.0
Cumulative
Percent
48.0
90.0
94.0
99.0
100.0
Percent
SA
33
33.0
A
54
54.0
I
6
6.0
D
5
5.0
SD
2
2.0
Total
100
100.0
Source: Field Survey 2010
Valid
Percent
33.0
54.0
6.0
5.0
2.0
100.0
Cumulative
Percent
33.0
87.0
93.0
98.0
100.0
74
TABLE
4.4G
DISTRIBUTIONS
OF
RESPONSES
ON
Percent
SA
20
20.0
A
51
51.0
I
8
8.0
D
19
19.0
SD
2
2.0
Total
100
100.0
Source: Field Survey 2010
Valid
Percent
20.0
51.0
8.0
19.0
2.0
100.0
Cumulative
Percent
20.0
71.0
79.0
98.0
100.0
TABLE
4.4H
DISTRIBUTION
OF
RESPONSES
ON
75
Percent
SA
19
19.0
A
51
51.0
I
5
5.0
D
12
12.0
SD
13
13.0
Total
100
100.0
Source: Field Survey 2010
Valid
Percent
19.0
51.0
5.0
12.0
13.0
100.0
Cumulative
Percent
19.0
19.0
75.0
87.0
100.0
SA
A
I
Frequency
Percent
25
45
13
25.0
45.0
13.0
76
Valid
Percent
25.0
45.0
13.0
Cumulative
Percent
25.0
70.0
83.0
D
12
12.0
SD
5
5.0
Total
100
100.0
Source: Field Survey 2010
12.0
5.0
100.0
95.0
100.0
Percent
SA
40
40.0
A
43
43.0
I
11
11.0
D
4
4.0
SD
2
2.0
Total
100
100.0
Source: Field Survey 2010
77
Valid
Percent
40.0
43.0
11.0
4.0
2.0
100.0
Cumulative
Percent
40.0
83.0
94.0
98.0
100.0
4.5
TEST OF HYPOTHESIS
This section aims at testing the hypothesis formulated,
Model Summary
R
R-Square
78
Adjusted
Std. Error
R- square
1
535a
286
279
a. Predictors: (Constant). Sales Promotion
of the
estimate
880
ANOVAb
Model
Sum of
df
Mean
squares
Square
1 Regression 30.358
1
30.358
Residual
75.832
98
774
Total
106.190
99
a. Predictors: (Constant), Sales Promotion
F. Table
39.233
3.938
Model
Standardized
Coefficients
Std. Error
1. (Constant)
1.949
.325
Sales Promotion
.489
.078
Beta
.535
Sig
5.995
.000
6.264
.000
80
2a
Model Summary
Model
R-Square
Adjusted
R- square
1
494a
244
236
a. Predictors: (Constant), Sales Promotion
ANOVAb
2b
Model
Sum of
d.f
Mean
squares
Square
1 Regression 28.557
1
28.557
Residual
88.603
98
.904
Total
117.60
99
a. Predictors: (Constant), Sales Promotion
F
31.586
Std. Error
of the
estimate
.951
Coefficientsa
81
Table
Value
3.938
Unstandardized
Coefficients
Model
Standardized
Coefficients
Std. Error
1. (Constant)
1.878
.351
Sales Promotion
.474
.084
Beta
.494
Sig
5.345
.000
5.620
.000
4.6
DISCUSSION OF RESULTS
Sales promotion is an exercise that performs the role of
84
85
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATION AND
CONCLUSION
5.1
INTRODUCTION
This chapter is intended to present a brief summary of the
5.2
SUMMARY OF FINDINGS
This research is summarized as follows:
I.
III.
IV.
when
there
87
is
too
much
sales
promotion,
it
shows
the
inferiority
of
the
packages.
b.
sales
promotion
objectives
and
cost
5.3
CONCLUSION
Based on the findings of this study, it was concluded that
5.4
RECOMMENDATIONS
89
II.
III.
name.
This
will
always
remind
the
V.
VI.
VII.
REFERENCES
Abraham, M. M. and Lodish, L. M. (1990) Getting the most out
of
14,
No 20.
92
93
APPENDIX
Faculty of Business and Social Science,
Department of Business Administration,
University of Ilorin,
P.M.B 1515,
Ilorin, Kwara State.
FOR
RESPONSE
TO
RESEARCH
TOPIC:
94
SECTION A
1.
Sex : Female
2.
Age group: 16 25 {
37 46 {
Male {
26 36 {
47 56 {
}
95
56 and above {
2.
3.
Marital status:
Single
Others
5.
6 10years {
11 15years
16 20 years
promotion {
} personal selling {
sales
married { }
than 5 years
6.
How long have you been working with the company? Less
above 21years {
4.
{
Yearly{
quarterly { }
Weekly {
daily {
SECTION B
NB: Strongly agree S A
Disagree D
Agree A
Indifference I
96
8.
D{
SD { }
9.
Do you agree that your sales promotion has brought about an
increase in the awareness of the existence
of GLO packages? SA {
D{
SD {
A{
I{
10. Do you agree that your sales promotion has an impact on the
buying behavior of customers?
SA { }
11.
A{
I{
D{
SD { }
D{
SD {
A{ } I{
12.
Do you agree that sales promotion acts as a quicker means
of informing customers about your package?
SA { }
A{
I{
D{
SD {
}
13.
Do you agree that sales promotion often have a short term
impact rather than long term impact on customers?
SA { }
A{
SD {
I{
97
D{
14.
Do you agree that frequent sales promotion often gives
customers a low impression on the standard of the package?
SA { }
15.
A{
I{
D{
I{
D{
SA {
}
SD {
SD {
A{
customers patronage? SA { }
D{
17.
16.
SD {
A{
I{
SD {
SA {
}
}
98
A{
I{
Male {
female
{
} OND/NCE {
}Professional qualification
}
}
others { }
3. What type of middleman?
Middlemen
Distributor
Retailers
99
{}
SECTION B
NB: strongly agree
SA Agree A
Indifference I
I{
D{
SD {
A{
} A{
} I{ }
D{
I{
D{
SD {
A{
I{
D{
}SD {
A{
100
I{
D{
A{
I{
D{
SD {
}
10.
customers patronage?
D{
SD {
SA {
A{
I{
I{
D{
13.
A{
A{
I{
D{
SD { }
D{
SD { }
101
SA { }
A{
I{
OS
SALES
PROMOTION
ON
BUYING
BEHAVIOUR
[A case study of Globacom Nigeria Limited]
Please
answer
the
following
questions
sincerely.
The
Male {
Female {
}
Married {
} Others {
56 and above {
SECTION B
NB: Strongly agree SA Agree A Indifference I
Disagree D Strongly disagree - SD
5. Do you agree that sales promotion affects your purchase
decision? SA { } A {
} I{
D{
}SD {
SD { }
102
A{
I{
D{ }
SA {
}A {
} I{
SD { }
SD {
A{
I{
} SD {
} A{
I{
I{
D{
SA { }
A{
SD { }
11.Do you agree that sales promotion has a short term impact
rather than long term impact on you? SA {
}
12.
I{
D{
A{
SD { }
A{
I{
}
103
D{
SD {
13.
brand loyalty?
}
14.
SA { }
A{
I{
D{
SD { }
patronage? SA { } A {
} I{ } D{ }
104
SD { }