IMPROVING CUSTOMER SERVICE LEVELS IN SERVICES INDUSTRIES, THROUGH THE APPLICATION OF THE MARKETING CONCEPT

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Marketing implies all those human functions performed to satisfy consumer needs through production and exchange processes. Organization that adopt the marketing concept mostly aim at finding what the consumers needs and wants are, and providing such needs and wants effectively and efficiently to the consumers.

Offering marketing services as a form of business is fast growing within the scope of marketing over the year. The relative amount of services has been growing in the economy representing about two third of the Gross National Product. Marketing of service as an intangible product, apart from the existence as separate industrial sector, services also represent a major strength of Nigerian firm and the world at large. It has dominated the spectrum of Nigerian businesses.  

However, the growing importance of services and their business to start up, in most cases, have made the sector very attractive to a lot of the citizenry.

Competition has become more intense than before and people are becoming too conscious of the quality of services being offered to them.

1.2 HISTORICAL BACKGROUND OF THE STUDY

The company, Ibeto photographic colour laboratory, is a subsidy of Ibeto Group of companies. Ibeto photographic colour laboratory was incorporated in 1984 in the Eastern part of Nigeria under the name of Ibeto Industries limited (IIL). With an array of modern and sophisticated machines it has been able to meet the demands of its numerous customers in both quality and services, through its networks of branches all over Nigeria. The company has established an excellent reputation and has remained a leading photo processing company with laboratories in Nnewi, Enugu, Onitsha, Aba and Nsukka. Its customers cut across different individuals and organisation. Some of the organisations that patronize the company include Rocana Advertising Agency etc. The individuals include Newton etc. The service rendered by the company include development of firms into negation processing pictures into different sizes.

1.3       STATEMENT OF PROBLEM

Ibeto photographic colour laboratory has been facing a lot of problems in the recent past. Some of the problems are listed below.

Intense competition in printing photophobic colour laboratory industry in Enugu.

Lack of adequate marketing experts in Ibeto photographic colour laboratory.

Lack of customers, due to poor quality of their photographic colour laboratory.

Lack of adequate machines in the firm which helps to fasting the job to their customers.

Another problem is time consuming by the customer  in terms of service given to them.

However, in all these that have stated here as the problems facing this company, one should be able to know the steps to take in solving the problem facing Ibeto photographic colour laboratory Enugu.

1.4       PURPOSE OF THE STUDY

The purpose of this study is to find out how Ibeto photographic colour laboratory are improving their customer services level.

How Ibeto photographic colour laboratory can stand the competition from other related firms in the same photographic colour laboratory market. 

To know their customers are satisfied with the quality of their services at the right profitability level.

How possible to employ enough marketers who know the principles of marketing concept in the Ibeto photographic firm.  The way to increase the level of awareness/enlightment to the general public is to enable them understand the importance of patronage.  To know the reactions of the customers toward the services rendered to them.

1.5       HYPOTHESIS FORMULATION

Ho:   Good customer service, increase to the customer patronage.

Hi:    Good customer service does not increase to the customer patronage.

Ho:   Customer services impacts positively on the company’s profitability.

Hi:    Customer services does not impacts positively on the company’s profitability.

Ho:   Customers are satisfied with the photographic services offered by Ibeto. 

Hi:    Customers are not satisfied with the photographic services offered by Ibeto. 

1.6       SCOPE OF THE STUDY

For the purpose of this study, Ibeto photographic colour laboratory, Enugu was chosen. Although they are many other photographic laboratories, the choice of Ibeto Enugu is to make the study more manageable. This is informed by the fact that the researcher has constraint of time and fund. In any case, the findings from the study of Ibeto photographic colour laboratory could easily be generalized among other similar organisations throughout the country.

1.7       SIGNIFICANCE OF THE STUDY

This study is significant in carryout: firstly, this study will be of immense benefit to some stakeholders in service industry. Secondary, the study is significant to both the management of Ibeto photographic colour laboratory Ltd Enugu, and other related firms because the study will no doubt expose the problems affecting them, as well as proper solutions for most of the problems.   

Thirdly, this study will be significant to the customers/users of services especially those of Ibeto Enugu and other photo lab. Industries in Nigeria, because it shall expose them to the intricacies of evaluation of service rendered to them.

Finally, the study will hopefully aid researchers who are interested in this particular profit topic.

1.8       DEFINITION OF TERMS

There are varied definitions of services but the definition below brings out the essential ingredient in services.

Kotler (2002: 444) services can be defined as any act or performance that one party can offer to another that is essentially  intangible and does not result in the ownership of anything. Kotler (2002).

Services industries: They are these firms that render intangible services to their customers such as hospitals, loan agencies, military services, police and fire departments, post office, regulatory agencies, and schools. Kotler (2002: 444).

Edoga (1998) defined services as any activity benefactor or satisfactions that is offer for sales, it is essentially intangible and does not result in the ownership of anything.