EFFECT OF SALES PROMOTION ON CONSUMER PURCHASE BEHAVIOUR (A Study of Nigeria Bottling Company, Aba-Abia State)

ABSTRACT

The study examines the effect of sales promotion on consumer purchase behaviour (a study of Nigerian Bottling Company, Aba-Abia State). However, the general objective of this study is to examine the effect of sales promotion on consumer’s purchase behaviour while the specific objectives of the study include to examine the benefits associated with the use of promotional tools and to examine how promotion stimulates consumers’ purchase behaviour. The study employed a correlational design method and a simple descriptive statistics. The finding shows that there are significant benefits associated with the use of promotion tools. The study therefore concludes that the sales promotion is important to every manufacturing company; helps in creating awareness of a particular product to consumers and customers, the study also went further to conclude that sales promotion helps in profit maximization and consumer’s decision making. Therefore the study recommends that Nigeria Bottling Company Plc and other manufacturing organizations in general should always engage in more promotional mix strategies that are innovative and creative to consumers; sales promotions budget should always be adequate in organizations, and companies should be mindful of the type of the sales promotion that they will adopt in order not to spend all their resources on sales promotion that would turn to be a loss instead of benefits. 

TABLE OF CONTENTS

Title page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of content ﾿ vi

List of Tables ﾿ viii

Abstract ﾿ ix       

CHAPTER ONE

Introduction

1.1 ﾿ Background of the Study                                                              ﾿ 1

1.2 ﾿ Statement of the Problem ﾿ 3 ﾿

1.3 ﾿ Objectives of the study                                                                                                                            

1.4 ﾿ Research Questions ﾿ 3                      1.5 ﾿ Research hypothesis ﾿ 3                                        1.6 ﾿ Significance of the study ﾿ 3                                       1.7 ﾿ Scope of the study ﾿ 4

1.8 ﾿ Limitation of the study ﾿ 4                                                     

CHAPTER TWO

Literature Review 

2.1 ﾿ Conceptual framework ﾿ 6

2.2 ﾿ Review of related literature ﾿ 6

2.2.1 ﾿ Benefits associated with the use of promotional tools ﾿ 6

2.2.2 ﾿ Effects of sales promotion in stimulating consumer purchase Behaviour ﾿ 9

2.2.3 ﾿ Effects of continuous use of sales promotion on organizational Performance ﾿ 9

2.2.4 ﾿ Sales promotion programme ﾿ 12

2.2.5 ﾿ The role of the consumer in marketing ﾿ 13

2.2.6 ﾿ Consumer purchasing behaviour ﾿ 14

2.2.7 ﾿ Types of sales promotion ﾿ 16

CHAPTER THREE

Research Methodology

3.1 ﾿ Research design ﾿ 18

3.2 ﾿ Area of the study ﾿ 18

3.3 ﾿ Sources of Data/method of collection ﾿ 18

3.4 ﾿ Population of the Study                                                                            ﾿ 18 ﾿

3.5 ﾿ Sampling techniques and sample size ﾿ 19

3.6 ﾿ Validity of the research instrument ﾿ 19 

3.7 ﾿ Reliability of the research instrument ﾿ 19

3.8 ﾿ Method of data analysis ﾿ 20

3.9 ﾿ Model specification ﾿ 20

CHAPTER FOUR   

Data Presentation, analysis and interpretation ﾿

4.1 ﾿ Data Presentation ﾿ 21

4.2 ﾿ Test of hypotheses ﾿ 29

4.3 ﾿ Discussion of Findings ﾿ 31

CHAPTER FIVE

Summary of findings, Conclusion and Recommendation                                     

5.1 ﾿ Summary of findings ﾿ 33                                       5.2 ﾿ Conclusion ﾿ 33                    5.3 ﾿ Recommendation ﾿ 33                                                                                        

REFERENCES                                                                                                               

Appendix-Questionnaire 

Questionnaire                                                                                                       

LIST OF TABLES

Table 4.1: ﾿ Distribution of questionnaire and response rate ﾿ 21

Table 4.2: ﾿ Distribution of respondents according to age ﾿ 22

Table 4.3: ﾿ Distribution of respondents according to educational qualification ﾿ 23

Table 4.4: ﾿ Distribution of respondents according to years of services ﾿ 24

Table 4.5: ﾿ Religion ﾿ 25

Table 4.6: ﾿ Benefits associated with promotional tools ﾿ 35

Table 4.7: ﾿ Promotion stimulates consumers’ purchase behaviour ﾿ 26

Table 4.8: ﾿ Use of promotion has a positive influence on organizational performance ﾿ 26

Table 4.9: ﾿ Sales promotion contributes to profit maximization ﾿ 27

Table 4.10: ﾿ Companies adopt sales promotion in order to create awareness ﾿ 28

Table 11: ﾿ Sales promotion increases cost ﾿ 28