ABSTRACT

This study attempted to examine the determinants of satisfaction and loyalty of these products (bread biscuits and snacks). The main objective of this study is to investigate the determinants of customer loyalty and satisfaction in bakery enterprises in Abia state, Nigeria. The specific objectives are to: analyze the socio-economic characteristics of the consumers of bakery products; examine the customers according to their preferences in bakery products consumption; rating and analyze the customers according to level of satisfaction with bakery products; examine the extent of influence of some factors on customers’ satisfaction and loyalty; determine the relationship existing between customer satisfaction and customer Loyalty. About 250 bakery consumers were randomly selected from 6 local governments within the state and data collected with the administration of well-structured questionnaires. Subsequently, the data were analyzed using descriptive (charts, tables and frequencies) and inferential (logit, multiple regression and correlation models) statistics. The results show that majority of the consumers were still young. 50% of the consumers received a monthly income of N 10,000 – 100,000. Bakery products’ consumption was highest among civil servants (contributing 50% of the entire sample). Majority (48%) of the consumers preferred bread over the biscuits and snacks. The result also showed that 47% of biscuit consumers were satisfied while 44% and 9% were strongly satisfied and indifferent respectively. The logit result Nagelkerke R2 shows that 45.5%, 61.2% and 58% of changes in the satisfaction levels derived from the consumption of bread, biscuits and snacks respectively were accounted for the independent variables included in the model. Age negatively affected the satisfaction from all the products at 5% significant levels respectively. Education level was positively significant at 10% for biscuits and 5% for snacks. Product quality was positively signed at 10% for bread and snacks respectively indicating that consumers derived more satisfaction by consuming quality products. Product size was positively significant at 1% for biscuits indicating that consumers derived more satisfaction by consuming products that are large. Packaging had a positive correlation with satisfaction derived from bread and biscuits consumption at 1% respectively. Brand image positively affected the satisfaction derived from bread consumption at 10% significant level. Taste affected biscuit and snacks consumption and satisfaction at 1% level of significance respectively. Satisfaction derived from biscuits and snacks was positively correlated with product availability. A multiple regression analysis result showed that the F-ratios were significant at 1% for the three products. R2 shows that 54%, 64.1% and 69% of changes in the frequency of repeat buying (customers’ loyalty) was accounted for by the changes in the model variables for bread, biscuits and snacks respectively. A very strong and positive correlation of r = 0.872 existed between customers’ satisfaction and loyalty at 1% significant level. The study revealed that customers’ satisfaction and loyalty were jointly affected by consumers’ age, product quality and packaging. In line with the findings of the study, it is recommended that: these firms must develop strategic means of reaching all their customers’ needs. Product packaging and quality must be given serious consideration if the bakery firms are to retain and satisfy their customers. These commodities should be sold at affordable prices.

TABLE OF CONTENTS

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

Declaration-------------------------------------------------------------------------------------------------ii                                                                                                            

Certification -----------------------------------------------------------------------------------------------iii                                                                                                          

Dedication -------------------------------------------------------------------------------------------------iv                                                                                                        

Acknowledgement-----------------------------------------------------------------------------------------v                                                                                                   

Table of contents------------------------------------------------------------------------------------------vi                                                                                             

List of tables------------------------------------------------------------------------------------------------ix

List of figures-----------------------------------------------------------------------------------------------x                                                                                                           

Abstract------------------------------------------------------------------------------------------------------xi                                                                                                       

CHAPTER ONE: INTRODUCTION

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

1.2 Statement of problem----------------------------------------------------------------------------------3                                                                                                 

1.3 Objectives of the study -------------------------------------------------------------------------------6

1.4 Research Questions -----------------------------------------------------------------------------------6                                                                                                     

1.5 Research Hypothesis ----------------------------------------------------------------------------------7                                                                                                   

1.6 Significance of the Study------------------------------------------------------------------------------7                                                                                            

1.7 Scope of the study --------------------------------------------------------------------------------------7                                                                                                         

1.8 Limitations of Study------------------------------------------------------------------------------------7                                                                                                  

CHAPTER TWO:  REVIEW OF RELATED LITERATURE

2.1 Over view of customer satisfaction------------------------------------------------------------------8                                                                              

2.2 Customer satisfaction----------------------------------------------------------------------------------9                                                                                             

2.2.1 Dynamic nature of customer satisfaction---------------------------------------------------------13                                                                  

2.4 Customer loyalty---------------------------------------------------------------------------------------13                                                                                                     

2.5Determinants of customer satisfaction---------------------------------------------------------------16                                                                         

2.5.1 Product------------------------------------------------------------------------------------------------16                                                                                                                     

2.5.2 Packaging---------------------------------------------------------------------------------------------17                                                                                                                   

2.5.3 Prices--------------------------------------------------------------------------------------------------17                                                                                                                          

2.5.4 Promotions-------------------------------------------------------------------------------------------20                                                                                                                 

2.5.5 Brand image-----------------------------------------------------------------------------------------20                                                                                                               

2.5.6 Taste--------------------------------------------------------------------------------------------------21                                                                                                                          

2.6 Determinants of customer loyalty-------------------------------------------------------------------21                                                                                 

2.6.1 Product quality---------------------------------------------------------------------------------------21                                                                                                          

2.6.2 Price---------------------------------------------------------------------------------------------------21                                                                                                                           

2.6.3 Promotion---------------------------------------------------------------------------------------------23                                                                                                                 

2.6.4 Customer satisfaction--------------------------------------------------------------------------------23                                                                                          

 2.6.5 Price of substitutes ----------------------------------------------------------------------------------24                                                                                        

2.6.6 Brand Image-------------------------------------------------------------------------------------------24                                                                                                      

2.7 Relationship existing between customer satisfaction and loyalty---------------------------------25                               

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design-----------------------------------------------------------------------------------------26                                                                                                     

3.2 Study area ---------------------------------------------------------------------------------------------- 26                                                                                                                   

3.3 Population of study -------------------------------------------------------------------------------------27                                                                                                    

3.4 Sampling techniques -----------------------------------------------------------------------------------27                                                                                                    

3.5 Method of Data Collection-----------------------------------------------------------------------------27                                                                                        

3.5.1 Questionnaire design---------------------------------------------------------------------------------28                                                                                               

3.6 Method of data analysis--------------------------------------------------------------------------------28                                                                                             

3.6.1Model specification------------------------------------------------------------------------------------28                                                                                              

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Data presentation and analysis ------------------------------------------------------------------------30                                                                                   

4.2 Socio-economic characteristics of the respondents-------------------------------------------------30                                              

4.2 Consumers’ preferences of bakery products in Abia State ----------------------------------------35                                  

4.3 Consumers’ level of satisfaction with bakery products--------------------------------------------36                                        

4.4 Factors Influencing Consumers’ satisfaction with Bakery product-------------------------------39                             

4.5 Factors Influencing Consumers’ loyalty to Bakery products -------------------------------------42                              

4.6 Relationship Existing Between Customer Satisfaction and Customer Loyalty-----------------45                          

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary-----------------------------------------------------------------------------------------------46                                                                                               

5.2 Conclusion---------------------------------------------------------------------------------------------48                                                                                               

5.3 Recommendations -----------------------------------------------------------------------------------48                                                                                               

References