THE EFFECT OF PROMOTION ON CONSUMER PURCHASE DECISION (A STUDY OF THE BEVERAGE INDUSTRY)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Marketing is the link between a societies need and it’s porttern of industrial response. This implies that the success and future growth of any organization will depend largely upon the acceptability of its products or services by it potential customers. The recent difficult economic times, however house led companies to use promotional tools such as sales promotion, public relation, advertising and publicity more aggressively.

Promotion is a communication process, this had it’s way as devised tool of educating potential customers about their company’s activities products/services availability and the benefits devisable in using products.

The dynamic and complete business world (environment) makes it pertinent for marketing organizations to device strategies in delivering satisfaction to that target market and their potential customers.

These strategies are to influence the customers purchase decision which is the crut of the topic under study. Hence the study is aimed at assessing the effect of promotion on consume purchase decision (A study of Beverage Industry)

The effectiveness of this promotional mix mentioned above and the decision shall be examined in this research work.

1.2     STATEMENT OF THE PROBLEM

         Many marketing practitioners (companies) have not developed and understood an effective promotional strategy that will create the required awareness about their product and to ascertain the effect it has on consumers purchase decision in accepting their product is a problem. There are too many companies that are involved in the product of similar in the minds of consumers on how to differentiate these products. It is a problem.

         The problem of indiscriminate introduction of new products into the marketing by some firm  without the knowledge of the loss of customer’s and lack of product acceptability by these customers in the market.

         There are criticism that promotional activities in organization be discontinued due to its addition to extra cost to products and its negative contribution to the socioeconomic well being of our society that it mislead people into buying what they don’t need and cannot afford.

1.3     OBJECTIVES OF THE STUDY

         In using the various promotional mix a country must establish the objectives, select the tools, develop the programme, protest the programme implement and control it, and evaluate the result all these helps to sharpen the consumers purchasing decision properly.

         However the purpose of this study is to investigate among other things.

1. The effect of promotion on the purchase decision of Beverage industry.
2. To know if the decision of consumers as regards their purchase of the product at the market place is hinged on the effectiveness of the promotional strategy adopted by the firm.
3. To ascertain the promotional mix required at these different stages of the product life vis – a vis the product adoption process.
4. To analyses the contribution of total promotional programmes towards the achievement of a company’s objectives in trying to please their final consumer and the most widely used promotional mix.

1.4     RESEARCH QUESTIONS

         Marketing research is undertaken to understand a marketing problem better. In order to achieve the purpose of this study, the following questions will enable us solve the research problems.

1. Do organizations have the promotional strategy of the promotional plans?
2. What type of promotional plans are practice and accepted by consumers?
3. Which type of promotional strategy s likely to lead to the accomplishment of organizational objectives?
4. Which promotional strategy is most effective in the beverage industry?

1.5     RESEARCH HYPOTHESES

Ho:    There is no relationship between the effects of promotional and consumer decision.

Ho:    Promotional strategy does not help organizations to differentiate then products and the effect on consumer purchase decision

Ho:    Lack of promotional activities in organizations do not lead to consumers not buying the product in the market

Ho:    Effective promotional activities in organization do not lead to consumers buying the products in the market. 

1.6     SCOPE OF THE STUDY

         The aim of this study is to conduct a comprehence research on the purchase decision of Beverage consumers of Guinness product and how the promotional activities of the industry (Guinness Plc) influence them one way or other.

1.7     SIGNIFICANCE OF THE STUDY

         This study is to highlight the effect of promotion on the purchase decision of the consumers towards some products in the beverage market and also to identify other factor that one responsible for this purchase decision of consumers.

         The study will be of immense benefit to marketing firms in trying to determine the base promotional mix that is suitable for a particular market to be able to satisfy their find consumers and also to ascertain if the huze financial expenditure on promotional justifiable.

         It will also help to expose firms to the services of human behavior and buying decision making. Understanding and predict the consumer to analyse their mental and psychological behavior. Also how and why people buy products and services.

         The findings of this study would be great relevance to most marketing firms since it will serve as information and base for subsequent research work on promotional strategy and how it can influence purchase decision.

1.8     LIMITATION OF THE STUDY

The aim of this study is to conduct a comprehensive research on the purchase decision of beverage consumers of Guinness products and how the promotional activities of this industry (Guinness Plc) influence their one way or the other. The study will also investigate the promotional mix applicable to the different stages of the product (Beverage Industry of Guinness life cycle that will enable it influence the consumer purchase decision constraints were experienced from consumer especially those concerned will Guinness Products. The result of this study will be useful to other companies different industries especially those concerned with drinks production.