ABSTRACT
This
study is about the discussion on the relationship between attributes of product
quality with brand loyalty in Nigeria. It helps to extend the understanding of
the feelings and effects formed as a result of the reception of quality. Result
obtained in the study were different from the product quality based in the
perceived quality (Extrinsic Attributes) was still found to have significant
influence on the Brand loyalty this happened because the customer has developed
perception that derived from high level of customer, awareness, good image,
sales, promotion etc. by doing this only cap can be closed with a clear picture
on the extended scope of market economic which can be further extended.
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
satisfaction 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, 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 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 typee of loyalty 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 not intend to entangle himself in the fractions trajectory of
attempting to distinguish and analogize time and superious 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 bran
loyalty, the include prince, 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
population 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
compins WAMCO Nigeria Plc is a multinational manufacturing company. It is an
affiliated to Royal Cooperative compina of the Netherlands, the world largest
industrial area its headquarters 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 contributed 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 keybrand, “Peak, Three Crowns
and Friso. 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 seems 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 product of a 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 purpose are ascertain if product quality has influence on
brand loyalty ascertain if customers of Peak identify product quality.
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
Ha:
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 formed appropriate for definitions in this work:
Product: A
product is any thins that can be offered to a market which satisfy a want or
need.
Brand loyalty: Is
the marketing efforts or outcomes that accrued a product with its brand name
corporate to those that would accrue f the same product 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 variable (place, product, price and
promotion) in other to achieve marketing objectives. Those variable 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 infirmity of a product inorder 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 at satisfy consumers wants and needs.
Loyalty: Is
a 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.