CHAPTER ONE: INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
In our society and
the world at large companies are facing toughest competition ever. Before any
business can go about winning customers and outperforming competitors, there is
the need to do a thorough task of meeting and satisfying consumer needs. It is
only customer centered consumers companies that are adapt at cllaming customers
not just product. So many companies think that it is the marketing or sales department’s
job to gain customers. If they cannot, the company draws the conclusion that is;
the marketing people are not very good and are not effective in discharging
their duties. But marketing is only one factor in attracting and keeping
customers. The best marketing department in the world cannot sell products that
are poorly made or fail to meet consumers needs.
The consumer is
faced with an infinite number of choices in his buying behavior. He makes a
decision on whether to spend his money or save it. If he chooses to spend it,
he has a wide range of product choices available to him. Even within the
relatively narrow field of paint industries the consumer has, from five to ten
different brands of paints from which to choose in the average paint shop or
depot, obviously, no one brand is going to be sold for long if it stops giving
the customer what he wants. Hence, it is a total error for a marketing manager
to believe that the consumer must buy his product.
The consumer
bestows his favor on those who give him what he wants in product, price,
promotion and convenience. The penalty for disobeying his mandate is almost
certain failure. There are numerous illustrations of firms that refused to obey
“Key consumer”, thereby incurring his wrath. At one time, the Waltham Watch
Company was held in high esteem by watch buyers decided that the wrist watch
was preferable to the pocket watch and subsequently, the consumers changed
their buying habit, Waltham was stubborn until the consumer forced it to do so
by refusing to buy pocket watches. Meanwhile, key consumer decided that he
wishes his wrist watch to do more than ten times, he wanted a fashionably
styled time piece. The majority of firm in that country immediately entered a
competitive race on a fashion basis, but not Waltham. His refusal to produce a
properly style watch eventually caused its failure.
Obviously, the
consumer seldom directly commands a manufacturer.
1.2 STATEMENT OF THE PROBLEM
The researcher
must confine himself to the following inherent factors for prompt
considerations”
Of
what quality and quantity would they prefer to buy?
Is the price charged on the product not
too high enough for them to bear?
Is
there any welfare package available for the consumer at all?
Are
company products readily available to any shortest possible notice from
consumer?
Are
there any positive responses from consumer as to the prospect of the business?
The researcher
must however bear in mind and proffer proficient solution and answers to these
numerous questions if he is to guarantee himself of success or survival of the
business entrusted to him.
1.3 AIM AND OBJECTIVES OF THE STUDY
The
objective of this research study is to improve and increase the sales volume of
the organization as a whole. The study allows for freedom of information (FOI)
by the consumer (Consumerism). This is done by evolving customer complaint
department so as for them to disclose their displeasure and grievance about the
services being rendered to them either in term of price, quality, quantity,
test marketing, and prototype as highlighted in the statement of problem
written earlier.
It guarantees the
future of the business at a profit. The study enables the consumer to
participate actively through their willingness to buy the product and pay for the service
rendered to them. As it is well known that consumer is a key, they dictate what
business is i.e the prospect and exit of the business is to a large extent
determined by him. The interest of consumer should be properly monitored for
success accomplishment.
1.4 SIGNIFICANCE OF THE STUDY
The important of
the study is that it broadens and widens the researcher’s knowledge. The topic
chosen has really increases or improves the standard of living of the
researcher. The study serves as an impetus to participate actively without allaying
fears or panic in the field of practice. The study being “Consumer Satisfaction
and Retention as a key to business survival” plays a dominant role in any
business ramification.
The study of this
research study is a pre-requisite in partial fulfillment of the requirement for
the award of Higher National Diploma in Marketing. The research equally creates
awareness to the society at large as regards what consumer satisfaction is all
about in running of the organization in the respect that it helps in solving
problems associated with the satisfaction of consumers how consumer can be
valued at a profit.
1.5 SCOPE OF THE STUDY
The scope of this
study covers to paint industry. It is
therefore imperative for the researcher to carry out all necessary enquiries
and activities within the boundary specified in the study. The scope will also
cover the conceptual aspect in terms of user, colour, behavior, reaction and
modes, friendliness and relativeness.
The market scope
covers Ilorin Township to immediate consumer areas. The industrial scope will
cover all the manufacturers of paint product. But the case study of this
research will be BERGER PAINT NIGERIA LIMITED. The geographical aspect of the
scope covers Ilorin metropolis area directed to the consumer.
The area of
interest will be on the number of sales recorded in the five consecutive years
(2003 – 2008).
1.6 LIMITATION OF THE STUDY
This are the varieties
of problems faced white carrying out this research work. One of time is thane
constraint. There is no adequate time or sufficient time for the researcher to
visit and consult all necessary sales depots, distributors, and consumers of
Berger paint Nigeria Limited, since they are not geographically sited in one
region. In view of the limited time available for the final submission of this study,
the researcher has to limit the research finding to Ilorin depot of the company
since they offer likely services or operations.
The researcher
however came about finding solution to this problem by taking one advantage of
the semester break given by the school authority to consult and gathered all
vital information’s necessary and needed for this research work from their
various district and sales outlet (Berger Paint Nigeria Limited) such as Lagos
depot of the company and Ibadan respectively. This done so as to update,
equipped, and enlightening the researcher on the topic chosen.
The researcher is
also faced with some administration problems from the staff of Berger Paint
Nigeria Limited. The staff were always reluctant to grant interview being
carried out by the researcher. The solution to this is achieved by re-orientating
them and give a kind of incentive as motivation in order to change their
lackadaisical attitude towards the researcher and their customer at large.
Consumer satisfaction and retention. A key to business survival.
1.7 DEFINITION
OF TERMS
CONSUMERS:
These are groups of individuals who are buyers for consumption purpose. They
are not buying to make profit, but to satisfy basic or psychological needs or
wants.
TOTAL
CONSUMER VALUE: This is the bundle of benefits consumer expects to
derive from a given product or service.
TOTAL
CONSUMER COST: This is the bundle of cost consumer expects to incur in
evaluating, obtained using and disposing of the product or services.
MARKETING:
Marketing is the total system of interrelating business activities designed to
play price, promote and distribute want, satisfying goods and services to
prospective customers. (would be customers).
SATISFACTION:
Is all about pleasing the consumer by making available what they want, need at
the right time, in the right place and with the right price. To provide them
with what they want, needed or asked for.
RETENTION:
All the activities involved in finding and retaining consumers and growing the
business.
CONSUMER
SATISFACTION: This is the way by which the consumer is pleased with the
company aim and objective to make profit. It is the way by which the company
makes every effort to make goods and services available for the consumer at the
right time, in the right place and at the right prices.
BUSINESS
SURVIVAL: This is all about the improvement or growth of the business.
Meanwhile, the primary aim of any business is to minimize loss.