ABSTRACT

The unfavourable economic environment of Nigeria has brought about devastating effect on consumers of manufactured products with heavy consequences on producers of consumers products. Producers are trapped with reducing purchasing power of consumers and high cost of production. The study explored the “effect of sales promotion on purchasing behaviour of consumers of Coca-Cola products in Umuahia metropolis”. This research work was carried to investigate whether people do actually buy during sales promotion campaign or not. To this end, research questions were formulated and two (2) hypotheses tested, with a view to find whether the strategies meet the expectation of consumers and sellers of their products. Four hundred (400) questionnaires were distributed to two (2) markets in Umuahia metropolis (Ahia Ukwu Olokoro Market and Umuahia modern market, Ubani-Ibeku).The response rate was four hundred (400). The data analysis was done using descriptive statistics such as frequencies and percentages to analyze objective one (i), two (ii), and three (iii). Correlation and multiple regression analysis were used to analyze hypothesis one and two. It was discovered after testing the hypotheses formulated, that awareness of sales promotion has effect on the socio-economic characteristics of the respondents. Findings from this study revealed that 51% of the respondents were single, more than half of them (50.8%) earn between N6,000-N10,000 daily, 89.5% were aware of sales promotion and 37.5% and 27% sourced their information from television and radio, respectively. Majority of the respondents (95.3%) were aware of open and win promo, majority (70%) reported that price of Coca-Cola products remained the same during sales promotion, majority (65.8%) have not won during sales promotion, and advertisement was the best method of sales promotion according to 34.5% of the respondents. Findings also revealed that sales promotion is not the most effective tool that could be used to stimulate consumer’s purchase of Coca-Cola products. It is therefore recommended that during sales promotion, price of Coca-Cola products be reduced as to encourage consumers to buy more.

TABLE OFCONTENTS

Title i

Declaration ii

Certification iii

Dedication  iv

Acknowledgements v

Table of Contents vii

List of Tables    xi

List of Figures xiii

Abstract xiv

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 4

1.3 Objectives of the Study 5

1.4 Research Questions 6

1.5 Research Hypotheses 6

1.6 Significance of the Study 7

1.7 Limitations of the Study 7

1.8 Definition of Terms  9

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 History of Modern Sales Promotion 11

2.2 Theoretical Issues in Models of Consumer Behaviour 12

2.2.1 Howard – Sheth Model 13

2.2.2 Nicosia Model 17

2.2.3 The Engel-Kollat-Blackwell (EKB) Model 20

2.2.4 Consumer Decision Making Process 22

2.3 Emperical Review of Sales Promotion 23

2.4 Rationale for Sales Promotions 27

2.5 Sales Promotion’s Objectives 29

2.6 Categories of Sales Promotion  30

2.7 Various Sales Promotions Linked to Coca-Cola Products in the

 Study   Area 31

2.8 Influence of Sales Promotion on Consumer Purchase Decision 33

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design 36

3.2 A Brief History of Nigeria Bottling Company Plc (NBC) 37

3.3 Area of Study        39

3.4 Population of the Study 39

3.5 Sample and Sampling Techniques    40

3.5.1 Determination of Sample Size Using Taro Yamane Formula 41

3.6 Instrument of Data Collection 42

3.7 Validity of the instrument(s) 42

3.8 Reliability of the instrument(s) 43

3.9 Method of Data Collection 43

3.9.1 Primary Sources 43

3.9.2 Secondary Sources 44

3.10 Method of Data Analysis 44

3.10.1 Model Specification 45

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Socio-economic Characteristics of the Respondents 47

4.1.1 Gender of the Respondents 47

4.1.2 Age of the Respondents 48

4.1.3 Educational Status of the Respondents 49

4.1.4 Marital Status of the Respondents 50

4.1.5 Occupation of the Respondents 51

4.1.6 Daily Income of the Respondents 52

4.2 Various Sales Promotions Linked to Coca-Cola Products in the

Study Area 53

 4.2.1Aware of Coca-Cola Sales Promotion 53

4.2.2 Sources of Information on Coca-Cola Sales Promotion 54

4.2.3 Types of Sales Promotions of Coca-Cola Products 55

4.2.4 Changes in the Price of Coca-Cola Product during Sales Promotion 56

4.2.5 Types of Changes Noticed During Sales Promotion 57

4.2.6 Winning during Sales Promotion of Coca-Cola Products 58

4.3 Effect of Various Sales Promotions on Purchasing Behaviour for

Coca-Cola Products 59

 4.3.1 Promotional Tools That Make People Buy Coca-Cola Products 59

 4.3.2 Frequency of Exposure to Sales Promotion 60

4.3.3 Extent to Which Sales Promotion Campaigns Had Persuaded Them 61

4.3.4 Reasons Why Sales Promotion Campaigns Had Not Persuaded Them 62

4.3.5 How Sales Promotion Campaigns Had Persuaded Their Frequency of Purchase 63

4.3.6 Increase in the Purchase and Consumption of Promoted Purchase of

Coca-Cola Products 64

4.3.7 Continued purchase of promoted products even after campaign 65

4.4 Hypothesis Testing 66

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings 71

5.2 Conclusion 73

5.3 Recommendations 73

References

Appendix 1

Appendix 2