THE INFLUENCE OF PRODUCT QUALITY ON BRAND LOYALTY IN NIGERIA

(A CASE STUDY OF EKWULOBIA RESIDENCE)

By

MADUEME CHINWE .J.

Presented To

Department of Marketing

TABLE OF CONTENT

Title - - - - - - - - - - - -i

Approval - - - - - - - - - - -ii

Dedication- - - - - - - - - - -iii

Acknowledgements- - - - - - - - -iv

Table of content - - - - - - - - -v

Abstract - - - - - - - - - - -viii

CHAPTER ONE

INTRODUCTION

1.1 Background of the study - - -- - - -1

1.2 Statement of the problem - - - - - -6

1.3 Purpose of the study - - - - - - -7

1.4 Significance of the study - - - - - -7

1.5 Research questions - - - - - - - -8

1.6 Hypothesis - - - - - - - - -8

1.7 Scope of the study - - - - - - -9

1.8 Definition of terms - - - - - - - -9

CHAPTER TWO

LITERATURE REVIEW

Introduction - - - - - - - - - -12

2.1 Review of the current literature - - - - -13

2.2 Types of product - - - - - - - -14

2.3 New product development process - - - - -17

2.4 The product life cycle - - - - - - -22

2.5 Quality product explained - - - - - -26

2.6 Overview of product quality and brand loyalty - -28

CHAPTER THREE

METHODOLOGY

3.1 Design of the study - - - - - - - -33

3.2 Area of the study - - - - - - - -34

3.3 Population of the study - - - - - - -34

3.4 Sample of the study - - - - - - - -34

3.5 Instrument for data collection - - - - - -35

3.6 Validation of the study - - - - - - -36

3.7 Distribution and retrieval of the instrument - - -36

3.8 Method of data analysis - - - - - - -37

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction - - - - - - - - -38

4.2 Findings - - - - - - - - - -53

4.3 Discussion of the findings - - - - - -54

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of findings- - - - - - - -55

5.2 Conclusion - - - - - - - - -56

5.3 Recommendations - - - - - - - -56

5.4 Limitation of the study - - - - - - -57

5.5 Suggestions for further studies- - - - - -58

References- - - - - - - - - - -59

Appendix A -- - - - - - - - - -60

Appendix B - - - - - - - - - -61

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Dr. Joseph Juran (2013) defined product quality as a means to incorporate features that have a capacity to meet consumers need (wants) and gives customer's satisfactions by improving product (goods) and making them free from any deficiencies or defeats.

The quality of a product could be sub divided into real quality and perceived quality.

Nevertheless in this research work, we will place more emphasis on perceived quality as such in the line with the marketing concepts, moreover the rhetoric of the matter in this, of what use is the quality if it does not have any influence on the customer?

Shawn Grimsley (2015) defined brand loyalty as where a customer choose to repeatedly purchase a product by the same company instead of a substitute product produced by a competitor.

Brand loyalty is more than sample repurchasing customer may repurchase a brand due to situation oral constraints (such as vendor locking) a lack of viable alternations or out of convenience, such loyalty is referred to as "superior loyalty". True brand loyalty exists when customers have a high relative attitude towards the brand which is then exhibited through repurchase behavior.

According to Kolter and Keller (2006) this type of loyalty can be the extent of consumers faithful towards a specific brand and this faithfulness is expressed through repeat purchase and other positive behavior each as a word of mouth advocacy, irrespective of the marketing pressure, generating by the other competing brands.

It is important for it to be pointed out here that are not with standing, the redoubtable virtues in true brand loyalty, this research does not intend to entangle himself in the fractions trajectory of attempting to distinguish and analogize time and spurious loyalty in this work. Brand loyalty will be examined textually as it is in its definitions by Shawn Grimsley (2015). The repeatedly purchase a product by the same company.

The topic of this research, of course the influence of product quality on brand loyalty in Nigeria (A case study of customers of Peak Milk Ekwulobia).

Many factors have some impact of brand loyalty, they include price, peer and societal pressure, product availability and etcetera.

Nevertheless we will restrict ourselves to the impact of product quality on such loyalty and with particular reference to customers of Peak Milk in Ekwulobia residents in Anambra State of Nigeria.

Aguata is a local government Area East Central Nigeria. It is a region with marketing fertile land for agriculture with prominent product around like rice, yam, cassava and palm oil. Most of the populations are subsistence farmers and traders there are also a large students community as a result of the presence of Federal Polytechnic Oko located at Oko.

1.1.1 BRIEF HISTORY OF PEAK MILK COMPANY

Friesland compina WAMCO Nigeria Plc is a multinational manufacturing company. It is affiliated to Royal Cooperative compina of the Netherlands, the world largest daily cooperative, its headquarter is in the Ikeja Industrial Area of Lagos State and operate an extensive distribution network across Nigeria. 36 states and the Federal Capital Territory. The company was incorporates in April 1973 as West Africa Milk Company Nigeria Plc and commenced operations in 1975. The largest diary cooperative in the world. The company as continued to play a leading role in the productive, processing, packaging, marketing and distribution of various milk product in Nigeria with and annual turnover of #111.12 Billion in 2012 and a dominant market share driven by her key-brand, "Peak, Three Crowns and Olympic. It pioneered the manufactured of evaporated milk and is the market leader in the introduction of fortified based milk product in Nigeria. Friesland compina WAMCO Nigeria Plc will maintain its No 1 position as the rations leading milk manufacturing company by investing in its people, capacity expansion projects and by being an excellent corporate citizen.

1.2 STATEMENT OF THE PROBLEMS

Product quality is the collection of features and characteristics of a product that contributes to its ability to meet given requirement. Early work is contributing product quality was on creating standards for producing acceptable product. Dr. Carvin identified 8 dimension as a frame work for thinking about the basic elements of product quality. Each dimension is self contained and distinct, a product can be ranked high on one dimension while being low on another. Eight dimensions of product quality includes performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality.

Actually, any product that has good quality which can satisfy its customers, suppose to attract brand loyalty. But, at times it seems that some products that have quality seem not to attract brand loyalty. This could be as a result of customers finding it difficult to identify attributes of quality product or they don't appreciate the quality of product.

Thus, this research set out to look at what a quality product is and also to identify influence of product quality on brand loyalty using Peak Milk as a case study.

1.3 PURPOSE OF THE STUDY

The main purpose is to investigate the influence of product quality on brand loyalty. The specific purposes are ascertained if product quality has influence on brand loyalty ascertain if customers of Peak milk identify what product quality is, also to identify other factors that affect brand loyalty.

1.4 SIGNIFICANCE OF THE STUDY

This research work is especially relevant to those who are

i. Decision makers on the product quality levels

ii. Management of producers of Peak (Friesland Compina WAMCO).

iii. It will add to the existing knowledge

1.5 RESEARCH QUESTIONS

1. To what extent does product quality influence brand loyalty?

2. Do customers of Peak Milk identify what product loyalty is?

3. What are the other factors that affect brand loyalty?

1.6 RESEARCH HYPOTHESIS

The researcher formulated the following hypothesis to guide the research

Ho: There is a relationship between product quality and brand loyalty

Hi: There is no relationship between product quality and brand loyalty.

1.7 SCOPE OF THE STUDY

This study is limited to consumers of Peak Milk Ekwulobia Anambra State.

1.8 DEFINITIONS OF TERMS

These terms were found appropriate for definitions in this work:

Product: A product is any thing that can be offered to the market which satisfies a want or need.

Brand loyalty: Is the marketing efforts or outcomes that accrued a product with its brand name compare to those that would accrue of the same product that did not have the brand name.

Marketing concept: It is a business philosophy based on the focus of business efforts or its management orientation that holds that key task of the organization is to determine the need and wants of target market and to adopt the organization to delivering the desired satisfactions more effectively and efficiently than its competitors.

Marketing mix: The marketing mix refers to the use of several variables (place, product, price and promotion) in other to achieve marketing objectives. Those variables are also known as the 4ps.

Quality: Is a measure of excellence or a state of being free defects, deficiencies any significant variations. It is brought about by strict and consistent commitment to certain standards that achieve uniformity of a product in order to satisfy stated implied needs.

Brand: A name, term, design, symbol or any other features that identifies one seller's goods and services as distinct from those of other sellers.

Concept: An idea aimed at satisfies consumer's wants and needs.

Loyalty: Is faithfulness or a devotion to a person, country, group or cause or the state of being loyal, faithfulness to commitment or obligations.

Product concept: It purpose that consumers will prefer product that have better quality, performance and features as opposed to a normal profit.

Tangible product: Is any physical product that can be touched like a computer, automobile etc.