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Full Project – AN INDEPTH STUDY OF ON THE BRAND SWITCHING BEHAVIOR OF MALT DRINK CONSUMER IN ENUGU STATE FROM 2005 -2010

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Brand switching is the consumers decision to purchase a product of a brand different from that previously or usually purchase. Brand switching is when a consumer or group of consumers switches their allegiance from one brand of a certain type of product to another. This brand switching may be temporary, or it may be long lasting.

Sometimes known as brand jumping, brand switching is the process of choosing to switch from routine use of an product or brand to steady usage of a different but similar product.

Brand switching is the most common with products that have no great perceived variation in quality across brands such as bottled water, dairy products, or paper towels etc. Brand switching takes place most commonly by price promotions, in-store displays, superior availability, perceived improvements or innovations in competitive brands, desire for novelty, number fo available brands, perceived risk, frequency of purchase, changes in quality, or level of satisfaction with the most recent purchase.

It is possible to research when consumer in a marketplace determine their attitude to brands and their likehood to switch from a brand they are using at the moment, and in particular to which other brand the might switch. This allows the building of a picture of likely brand switching behavour. If consumers propensity to switch is known, the market can be modeled to indicate future market share. Such modeling could also indicate the relative positioning of the competing brands.

The chartered institute of marketing (1984) in England defines marketing as “ the management process responsible for identifying, anticipating and satisfying customer requirement profitable.

American marketing association (1960:1) also defined marketing as “the performance of business activities that direct the flow of goods and services to the consumers or users. In other words, all activities that are undertaken to facilitate the flow of goods and services come under marketing. According to Nwaizuggo (2004:8) modern marketing concept is built on three foundation namely:

(i) Consumer satisfaction

(ii) Profitable sales volume

(iii) Integrated marketing

This means that consumers satisfaction must be at the centre of any business motive. The central aim of modern marketing is all about ensuring the consumer satisfaction and also to ensure that consumers always continue to patronize the marketer’s brand.

The American marketing association defines branding as a name, term, sign, symbol, or design, or a combination of them intended to identify the goods or a services of one seller or group of sellers and to differentiate them from those of competitors. Oxford Advanced Learner’s Dictionary

(2006: 170) defined branding as the activity of giving a particular name and image to goods and services so that people will be attracted to them a tool of marketing used for the purpose of product identification among other uses.

Branding is also to win consumers brand loyalty.

Brand name is the name given to a product by the company that produces it and this enable the consumers to easily identify the products. Modern marketing is facing a lot of challenges which includes growing affluence and change in the tast of consumers coupled with the drift of market from a monopolistic structure to that of a near perfect competition consumer now have lots of products alternative to choose from. The result is a gradual elimination of the “concept called “Brand Loyalty” and the emergency of a new idea called “Brand Switching”.

Brand switching is the act of discontinuing the purchases of a product brand in favour of another brand. The marketing concept and Nigerian market structure (perfect competition or rather monopolistic) brought about product multiplicity in Nigeria. Lots of product close substitutes now exist an consumers are now dangling like pendulum from one product brand to another.

Recently, brand switching has taken its toll on the soft drink market in Nigeria. For instance, we have malta drinks brands such as Amstle Malta, Guinness Malt, Hi-malt and Grand Malt and many more. A further study shows also that consumers but switch from one brand to another.

This simply implies that the malta drinks, marketers have been battling seriously on how to over come this trend . Given the above, the aim of the research is to carryout a research into the causative favours of soft drinks.

This will guide marketers against being vulnerable to brand switching behavioiur of consumers.

1.2 STATEMENT OF THE PROBLEM

Kotler and Keller (2006:193), define consumer behaviour as the study of how individuals, groups and organization select, buy, use and dispose, of goods, services, ideas, or experiences to satisfy their needs and wants.

Schiffman and Kanuk (2007: 3) Defined consumer behaviour as the behaviour that consumers display in searching for, purchasing, sing, evaluating and disposing of products and services that they expect will satisfy their needs their behaiour are focused on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That in includes what they buy, why they buy it, where they buy it, how often they buy it, how they evaluate it after the purchase , the impact of such evaluations on future purchases and how they dispose of it. To major psychological disciplines com into play when observing and try in to explain consumer behaviour. The first cognitive psychology. Cognitive psychology is the study of all knowledge related (mental) behaviours and they are as follows: attention, perception, memory, comprehension and decision making and they play an important role in consumer behaviour.

The second psychological discipline that has theories to explain certain phenomenon is “`The study of the manner in which the personality, attitudes, motivation behaviour of individuals influence and influences by social groups (Britaninnica Online)

The affect and social influence and reference groups links are two important topics studied in social psychology that have an important impact on consumer beaviour. However, limited problem solving is that bevaiour exhibited by a consumer, who is deciding to try a new brand, responds to emotional or environmental appeal such as the point of purchase display and this situation gives impetus to consumer exhibition of brand switching behaviour.

Emotional appeal has not been the only stimuli responsible for brand switching. The response of consumers to other marketing mix stimuli such as the pricing of the various brands distributional strategy, product design availability of product, and quality may also give rise to brand switch behaviour.

Given the afore mentioned facts, the main problem of this study is to

i. Make an inquest or determine the factors or variables that give rise to brand switching among consumers of malta drinks.

ii. To ascertain the implications of brand switching behaviour of consumers on marketing strategies employed by manufacturers of malta drinks.

iii. To Inquire into how the marketing mix such as price, product design and quality, distribution and promotion influence consumers of soft drink of switch into another brand.

1.3 OBJECTIVES OF THE STUDY

It is quiet unfortunate that no marketer can afford to stay relaxed when its products are loosing its market share to competitors especially in a free market economy like ours. Given this, the prime objective of this study therefore is to:

1. To establish the impact of the marketing mix on the brand switching behaviour of malta drinks consumers.

2. To determine the factors that promote brand switching among malta drinks consumers

3. To discover the relative strengths of the various brands enumerated for this study within a specified market.

4. To ascertain the effect of brand switching by consumers on the rate of consumption of different brands within the market under survey.

1.4 RESEARCH QUESTIONS

1. Assessment of the impact of brand switching bahevour of malta drinks is important?

2. What promote brand switching?

3. What strengths are effective in the market for various brand?

4. Determination of brand switching by consumers on the rate of consumption of different brands within the market?

1.5 RESEARCH HYPOTHESES

For the purpose of a clear result, the following hypothesis have been drawn and will be tested:-

H01 :Consumers switching of soft drink brand is not

significantly influenced by price differences

H1: Consumers switching of soft drink brand is significantly influenced by price differences

H02: Availability of soft drink distributional efficiency does not constitute a major factor in consumer soft drink brand switching.

H1: Availability of malta drinks distributional efficiency constitutes a major factor in consumer soft drink brand switching.

1.5 SIGNIFICANCE OF THE STUDY

The following are the significance of the study:

– It will enable producers (marketers) to identify brand switching causative factor among consumers

– It will go further to buttress the inevitable role of consumers and general market research in the new business era.

– It will help brand owners to develop marketing strategies which will enable them reduce the impact of brand switching on their product line.

Also the researcher hopes that the study would be relevant to other consumer goods marketers engaged in competition with producers of close substitute such as cosmetics and beverages.

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