CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Basically, promotion is first introduced in the 4Ps of marketing. The four (4) Ps represents the marketing mix (Product, Price, and Place and Promotion) and the promotional mix is the important term used to explain the set of tools which businesses use to communicate the benefit, source and other information about their product to customers in order to persuade them to purchase the products. These tools are advertising, publicity, sales promotion and personal selling, (Kotler 2001).

On the other hand consumer behaviour is another important aspect in the retail business sector. Consumers are not always normal/simple buyer, (Kotler 2001).

Sales promotions have become a vital tool for marketers and its importance has increased significantly over the years. Studies that strive to understand the impact of sales promotions on consumers’ behavior are very important. Also culture has profound implications on the psyche of the consumers’ behavior, adaptation to cultural

values leads to marketing effectiveness. So to this study, understanding consumer behavior in a different framework is very useful for the success of an organization.

Clancy, Jose, & Zacharias (2000) established a significant relationship between knowledge of it business environment and with effective and efficient marketing strategy they, firms must possess a detailed, objective understanding of their own business and the market in which they operate. Extensive review of literature and focus group analysis revealed nine marketing mix variables; product (service), pricing, promotion, information, transaction, distribution, reliability, customer service and personalization that influence client’s satisfaction. Promotion is one aspect of marketing mix because the consumers are informed about the new products and their attributes before they develop positive attitudes toward them. It is a way to persuade and informing the target market about the product existence and hence like the product. Sivadas and Baker-Prewitt (2000) are of the view that to satisfy the customer you will send a word-of-mouth to the others thereby increasing the demand of the product. Baker (2000), a good promotion involves product, distribution and price components of marketing. A business' total

marketing communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion, brand management, product placement and public relations tools. It has been established that many companies apply these promotion mix elements in order to increase sales revenue. Shimp (2003) viewed sales promotion as any incentive used by a manufacturer to induce the trade or consumers to buy a brand and to encourage the sales force to aggressively sell it. Retailers also use promotional incentives to encourage desired behaviours from consumers. Sales promotion is more short-term oriented and capable of influencing behaviour. Totten & Block (1994) stated that the term sales promotion refers to many kinds of selling incentives and techniques intended to produce immediate or short-term sales effects. Typical sales promotion includes coupons, samples, in-pack premiums, price-offs, displays, etc. Coupons have been used to produce trial (Robinson & Carmack 1997).

In view of the above, this study intends to look into how sales promotion strategies impact on consumer buying behavior.

1.2 STATEMENT OF THE PROBLEM

Promotion is a key element of the marketing strategies. It is vital to the marketing process although it is costly; it helps in informing customers about the right product and services. The promotional strategies are made up of advertising, sales promotion, personal selling, publicity and public relations.

The present trend of marketing today has been shifted towards maintaining consumer patronage and products loyalty. Stiff competition has however led many businesses into liquidation. The unfavourable economic conditions, political and social changes have also produced the same effect. All these could be due to inability of marketing departments to anticipate, plan and employ effective strategies to contain the external threats and internal weaknesses of the firm or industry to boost consumer buying power. As a result of these, sales promotion activities have become a daily affair in marketing with business adapting different methods to address one problem or the other for consumers.

1.3 STATEMENT OF RESEARCH QUESTION

In line with above statement of problems, the following research questions were raised.

1.      Does sales promotion have a significant impact on consumer buying decision?

2.  Does sales promotion accelerate the consumer baying behavior?

3.  Could sales promotion intervene in consumer buying decision Process?

4.  Does sales promotion contribute positively to the consumer

patronage of the product?

1.4       OBJECTIVES OF THE STUDY

From the research questions presented above, the study has the following objectives:-

1.      To examine whether sales promotion have significant impact on consumer buying decision.

2.      To find out if promotion accelerate the consumer buying behavior.

3.      To determine whether sales promotion intervene in consumer buying decision.

4.      To examine whether sales promotion contribute positively to consumer patronage of the product.

1.5 RESEARCH HYPOTHESIS

Below are some of the hypotheses formulated to guide the study.

Ho:   There is no significant impact between sales promotion and consumer buying decision.

Hi:     There is a significant relationship between sales promotion and consumer buying decision.

Ho:      Promotion does not accelerate the consumer buying behavior.

Hi:     Promotion accelerates the consumer buying decision.

Ho:   Sales promotion does not intervene in consumer buying decision.

Hi:     Sales promotion intervenes in consumer buying decision.

Ho:   There is no significant relationship between sales promotion and consumer patronage of the product.

Hi:     There is higher significant relationship between sales promotion and consumer patronage of the product.

1.6 SCOPE AND LIMITATION OF THE STUDY

According to Evborokhai (2003), scope is the boundary set for the study. This can be geographical area to be study, the period the investigator or the researcher wishes to look into the subject.

The researcher of this study intends to investigate the relationship between sales promotion and consumer buying decision in some of the selected Local Government in Zone A of Niger state. Although all consumers of different product are taking in to consideration and the researcher did not limit the study to a specific product.

LIMITATION

The researcher is expected to encounter problems in the course of conducting research in to a problem area, no matter its nature and scope. Financial constraints were one of the major factors militating against the smooth conduct of the study.

Time that is universally accepted to be of essence is also another challenge. And more so this study is to be conducted along with other academic pursuit [Course work]. Therefore, the limited time may not permit the researcher to undertake a more depth study into the areas covered.

1.7 SIGNIFICANCE OF THE STUDY.

Firstly, this research work will be of a great assistance to business enterprises owners, to help them understand the kind of promotional tools to use in other to generate more sales or to convince more consumers to buy more.

This research work will be of contribution to the body of existing knowledge on sales promotion and consumer buying behavior.

1.8 CHAPTER SCHEME

This study is divided in to five (5) chapters as follows,

Chapter one (1) is the Introduction, the outline and the basis for the study. It is an exposition on problems of the study, objective of the study, research hypotheses, scope and limitation of the study as well as significance of the study.