EFFECT OF SALES PROMOTION ON PURCHASING BEHAVIOUR OF CONSUMERS OF COCA-COLA PRODUCTS IN UMUAHIA METROPOLIS

ABSTRACT

The unfavourable economic environment of Nigeria has brought about devastating effect on consumers of manufactured products with heavy consequences on producers of consumers products. Producers are trapped with reducing purchasing power of consumers and high cost of production. The study explored the “effect of sales promotion on purchasing behaviour of consumers of Coca-Cola products in Umuahia metropolis”. This research work was carried to investigate whether people do actually buy during sales promotion campaign or not. To this end, research questions were formulated and two (2) hypotheses tested, with a view to find whether the strategies meet the expectation of consumers and sellers of their products. Four hundred (400) questionnaires were distributed to two (2) markets in Umuahia metropolis (Ahia Ukwu Olokoro Market and Umuahia modern market, Ubani-Ibeku).The response rate was four hundred (400). The data analysis was done using descriptive statistics such as frequencies and percentages to analyze objective one (i), two (ii), and three (iii). Correlation and multiple regression analysis were used to analyze hypothesis one and two. It was discovered after testing the hypotheses formulated, that awareness of sales promotion has effect on the socio-economic characteristics of the respondents. Findings from this study revealed that 51% of the respondents were single, more than half of them (50.8%) earn between N6,000-N10,000 daily, 89.5% were aware of sales promotion and 37.5% and 27% sourced their information from television and radio, respectively. Majority of the respondents (95.3%) were aware of open and win promo, majority (70%) reported that price of Coca-Cola products remained the same during sales promotion, majority (65.8%) have not won during sales promotion, and advertisement was the best method of sales promotion according to 34.5% of the respondents. Findings also revealed that sales promotion is not the most effective tool that could be used to stimulate consumer’s purchase of Coca-Cola products. It is therefore recommended that during sales promotion, price of Coca-Cola products be reduced as to encourage consumers to buy more.

TABLE OFCONTENTS

Title ﾿ i ﾿

Declaration ﾿ ii

Certification ﾿ iii

Dedication  ﾿ iv

Acknowledgements ﾿ v

Table of Contents ﾿ vii ﾿

List of Tables    ﾿ xi ﾿

List of Figures ﾿ xiii

Abstract ﾿ xiv

CHAPTER ONE: INTRODUCTION

1.1 ﾿ Background of the Study ﾿ 1 ﾿

1.2 ﾿ Statement of the Problem ﾿ 4 ﾿

1.3 ﾿ Objectives of the Study ﾿ 5 ﾿

1.4 ﾿ Research Questions ﾿ 6 ﾿

1.5 ﾿ Research Hypotheses ﾿ 6 ﾿

1.6 ﾿ Significance of the Study ﾿ 7 ﾿

1.7 ﾿ Limitations of the Study ﾿ 7 ﾿

1.8 ﾿ Definition of Terms  ﾿ 9 ﾿

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 ﾿ History of Modern Sales Promotion ﾿ 11 ﾿

2.2 ﾿ Theoretical Issues in Models of Consumer Behaviour ﾿ 12 ﾿

2.2.1 ﾿ Howard – Sheth Model ﾿ 13 ﾿

2.2.2 ﾿ Nicosia Model ﾿ 17 ﾿

2.2.3 ﾿ The Engel-Kollat-Blackwell (EKB) Model ﾿ 20 ﾿

2.2.4 ﾿ Consumer Decision Making Process ﾿ 22 ﾿

2.3 ﾿ Emperical Review of Sales Promotion ﾿ 23 ﾿

2.4 ﾿ Rationale for Sales Promotions ﾿ 27 ﾿

2.5 ﾿ Sales Promotion’s Objectives ﾿ 29 ﾿

2.6 ﾿ Categories of Sales Promotion  ﾿ 30 ﾿

2.7 ﾿ Various Sales Promotions Linked to Coca-Cola Products in the

 Study   Area ﾿ 31 ﾿

2.8 ﾿ Influence of Sales Promotion on Consumer Purchase Decision ﾿ 33 ﾿

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 ﾿ Research Design ﾿ 36 ﾿

3.2 ﾿ A Brief History of Nigeria Bottling Company Plc (NBC) ﾿ 37 ﾿

3.3 ﾿ Area of Study        ﾿ 39 ﾿

3.4 ﾿ Population of the Study ﾿ 39 ﾿

3.5 ﾿ Sample and Sampling Techniques    ﾿ 40 ﾿

3.5.1 ﾿ Determination of Sample Size Using Taro Yamane Formula ﾿ 41 ﾿

3.6 ﾿ Instrument of Data Collection ﾿ 42 ﾿

3.7 ﾿ Validity of the instrument(s) ﾿ 42 ﾿

3.8 ﾿ Reliability of the instrument(s) ﾿ 43 ﾿

3.9 ﾿ Method of Data Collection ﾿ 43 ﾿

3.9.1 ﾿ Primary Sources ﾿ 43 ﾿

3.9.2 ﾿ Secondary Sources ﾿ 44 ﾿

3.10 ﾿ Method of Data Analysis ﾿ 44 ﾿

3.10.1 Model Specification ﾿ 45 ﾿

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 ﾿ Socio-economic Characteristics of the Respondents ﾿ 47 ﾿

4.1.1 Gender of the Respondents ﾿ 47 ﾿

4.1.2 Age of the Respondents ﾿ 48 ﾿

4.1.3 Educational Status of the Respondents ﾿ 49 ﾿

4.1.4 Marital Status of the Respondents ﾿ 50 ﾿

4.1.5 Occupation of the Respondents ﾿ 51 ﾿

4.1.6 Daily Income of the Respondents ﾿ 52 ﾿

4.2 ﾿ Various Sales Promotions Linked to Coca-Cola Products in the ﾿

Study Area ﾿ 53 ﾿

 4.2.1Aware of Coca-Cola Sales Promotion ﾿ 53 ﾿

4.2.2 Sources of Information on Coca-Cola Sales Promotion ﾿ 54 ﾿

4.2.3 Types of Sales Promotions of Coca-Cola Products ﾿ 55 ﾿

4.2.4 Changes in the Price of Coca-Cola Product during Sales Promotion ﾿ 56 ﾿

4.2.5 Types of Changes Noticed During Sales Promotion ﾿ 57 ﾿

4.2.6 Winning during Sales Promotion of Coca-Cola Products ﾿ 58 ﾿

4.3 ﾿ Effect of Various Sales Promotions on Purchasing Behaviour for ﾿

Coca-Cola Products ﾿ 59 ﾿

 4.3.1 Promotional Tools That Make People Buy Coca-Cola Products ﾿ 59 ﾿

 4.3.2 Frequency of Exposure to Sales Promotion ﾿ 60 ﾿

4.3.3 ﾿ Extent to Which Sales Promotion Campaigns Had Persuaded Them ﾿ 61 ﾿

4.3.4 ﾿ Reasons Why Sales Promotion Campaigns Had Not Persuaded Them ﾿ 62 ﾿

4.3.5 ﾿ How Sales Promotion Campaigns Had Persuaded Their Frequency of ﾿ Purchase ﾿ 63 ﾿

4.3.6 ﾿ Increase in the Purchase and Consumption of Promoted Purchase of ﾿

Coca-Cola Products ﾿ 64 ﾿

4.3.7 ﾿ Continued purchase of promoted products even after campaign ﾿ 65 ﾿

4.4 ﾿ Hypothesis Testing ﾿ 66 ﾿

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 ﾿ Summary of Findings ﾿ 71 ﾿

5.2 ﾿ Conclusion ﾿ 73 ﾿

5.3 ﾿ Recommendations ﾿ 73 ﾿

References ﾿

Appendix 1 ﾿

Appendix 2