TITTLE PAGE

SALES PROMOTION AND CONSUMER BUYING DECISIONS:

A CASE STUDY OF SOME SELECTED LOCAL GOVERNMENT
IN ZONE A. OF NIGER STATE.

BEING A RESEARCH PROJECT SUBMITTED TO THE

POSTGRADUATE SCHOOL
USMANU DANFODIYO UNIVERSITY, SOKOTO;
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD
OF THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION
(MBA)

BY

MOHAMMED DANJUMA
FMS/MBA/11/210903401
DEPARTMENT OF BUSINESS ADMINISTRATION

DECEMBER, 2012

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 CERTIFICATION

This research project titled: Sales promotion and consumer buying

decision: A case study of selected Local Governments in Zone A. of Niger

state by Mohammed Danjuma has met the requirement for the award of the

degree of Masters in Business Administration (MBA) of the Usmanu

Danfodiyo University, Sokoto and is approved for its contribution to

knowledge.

……………………………………………. ………………………….

DR DAUDA .O. ABDULSALAM DATE

PROJECT SUPERVISOR

…………………………………….. ……………………..
DR DAUDA .O. ABDULSALAM DATE
HEAD OF DEPARTMENT

………………………………………… ………………………..
EXTERNAL EXAMINER DATE

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 DEDICATION

This project is dedicated to Almighty Allah (SWT) and the entire family of

Alhaji Mohammed Liman Daja.

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 ACKNOWLEDGEMENTS

In the name of Allah, the most Beneficent and Merciful. Glory be to

Almighty Allah (S W T), for keeping me alive and healthy and for given me

the courage to pursue this study that culminated in meeting the

requirement for the award of Master Degree in Business Administration.

May His blessing and mercy be upon Prophet Muhammad (s a w), his

family and those who follow the right path till the last day.

I will like to express my profound gratitude to my dynamic project

supervisor DR Dauda O. Abdulsalam who is equally the Head of

Department, of Business Administration, for his consistent and constructive

criticism which has contributed tremendously to the enrichment and quality

of this project.

I would not forget to express my heartfelt gratitude to Mallam Nura Koko

lecturer from Department of Public Administration for his keen interest and

success in the entire process of this project work, I will never forget you sir.

My immeasurable gratitude goes to all the lecturers and staffs of Business

Administration Department.

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I wish to acknowledge the parental support given to me by the following;

Alh. Mohammed Liman, Alh Ibrahim Mohammed, Hajiya Aishatu Liman,

Hajiya Fatima Ndanusa.

My wife Khadijat Mohammed Danjuma is worthy to be acknowledged, for

her long patience with me during the period of my Master Degree and to

my children, may Allah guide us (AMIN).

My appreciation goes to my most senior colleagues in the office, Mallam

Ibrahim Worogi, Mr. James Bake (Director Cabs), Mr. David Gara (Director

entrepreneur), Mallam Jibrin Bida for their courage and advise and my H O

D Mallam Ibrahim Sojeko for his understanding.

I am indeed grateful to all my friends in the school Mall Mohammad Alhaji

Haruna, Aliyu Arimoro, Suleiman Dauda Kuta, Murtala Sani Karaye (M B A

Class rep), Atanda Mutiu Taiwo, Abubakar Musa Neco. May Allah bless you

all.

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 ABSTRACT
This research project intended to examine the Impact of Sales Promotion
and Consumer Buying Behavior in selected Local Governments Area in
Zone A of Niger state. This is with the view to evaluate the extent that the
behavior of the consumers can be affected by sales promotion. The
research used random sampling methods as a sampling technique to
obtain the sample size from the population case study. Primary source of
data, through questionnaire were collected from 80 consumers from four
selected Local Governments in Zone A. of Niger state. Data were analyzed
using tables and statistical Chi-square which shows the significance
relationship between contextual variables and consumer buying behavior,
that sale promotion accelerates the consumer buying decision. It was also
observed that consumers in selected areas of study use more of free
product type of sales promotion than other types. Recommendations were
made to includes that there should be necessary improvement on
promotional activities by using the promotional tools interchangeably.

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 TABLE OF CONTENTS

Title page………………………………………………………………………i

Certification……………………………………………………………………ii

Dedication……………………………………………………………………..iii

Acknowledgement…………………………………………………………iv-v

Abstract……………………………………………………………………..vi

Table of content……………………………………………………………vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study……………………………………………….1

1.2 Statement of the problem………………………………………………4

1.3 Statement of Research Question………………………………………5

1.4 Objectives of the Study……………………………………………….....5

1.5 Research Hypothesis…………………………………………………....6

1.6 Scope and Limitation of the Study……………………………………..7

1.7 Significance of the study………………………………………………..8

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1.8 Chapter Scheme…………………………………………………………8

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction………………………………………………………………10

2.2 Sales promotion and consumer buying behavior……………………11

2.3 Meaning of sales promotion …………………………………………..12

2.4 Types of sales promotion ……………………………………………..14

2.5 Development of sales promotion programme………………………19

2.6 Main tools of promotion………………………………………………..22

2.7 Benefit of sales promotion……………………………………………..25

2.8 Limitation of sales promotion…………………………………………..28

2.9 Meaning of consumer buying behavior………………………………29

2.10 The major factors influencing consumer behavior…………………32

2.10.1 Complex Buying behaviour…………………………………………40

2.10.2 Dissonance reducing behaviour…………………………………40

2.10.3 Habitual Buying Behaviour…………………………………………40

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2.10.4 Variety Seeking Buying behaviour………………………………..41

2.11 Process in consumer buying decision ………………………………41

2.11.1 Information Search………………………………………………….42

2.11.2 Alternative Evaluation……………………………………………..42

2.11.3 Purchase Decision…………………………………………………42

2.11.4 Post-Purchase Behariour…………………………………………43

2.12 The empirical literature on the relationships between

sales promotion and consumer buying behaviour…………….43

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction……………………………………………………………..47

3.2 Research design……………………………………………………….47

3.3 Data Sources and Method of Collection…………………………….48

3.4 Research Population ………………………………………………….49

3.5 Determination of Sample Size………………………………………50

3.6 Method of Data Analysis………………………………………………51

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CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION

4.1 Introduction…………………………………………………………….53

4.2 Data Presentation Analysis and Interpretation ……………………53

4.3 Hypothesis Testing ………………………………………………….64

CHAPTER FIVE: SUMMARY, FINDINGS AND CONCLUSION AND

RECOMMENDATIONS

5.1 Introduction ……………………………………………………………71

5.2 Summary………………………………………………………………71

5.3 Findings and conclusion…………………………………………….72

5.4 Recommendations…………………………………………………..74

Bibliography………………………………………………………………76

Appendices………………………………………………………………80

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 CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Basically, promotion is first introduced in the 4Ps of marketing. The

four (4) Ps represents the marketing mix (Product, Price, and Place

and Promotion) and the promotional mix is the important term used to

explain the set of tools which businesses use to communicate the

benefit, source and other information about their product to

customers in order to persuade them to purchase the products.

These tools are advertising, publicity, sales promotion and personal

selling, (Kotler 2001).

On the other hand consumer behaviour is another important aspect in

the retail business sector. Consumers are not always normal/simple

buyer, (Kotler 2001).

Sales promotions have become a vital tool for marketers and its

importance has increased significantly over the years. Studies that

strive to understand the impact of sales promotions on consumers’

behavior are very important. Also culture has profound implications

on the psyche of the consumers’ behavior, adaptation to cultural

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values leads to marketing effectiveness. So to this study,

understanding consumer behavior in a different framework is very

useful for the success of an organization.

Clancy, Jose, & Zacharias (2000) established a significant

relationship between knowledge of it business environment and with

effective and efficient marketing strategy they, firms must possess a

detailed, objective understanding of their own business and the

market in which they operate. Extensive review of literature and focus

group analysis revealed nine marketing mix variables; product

(service), pricing, promotion, information, transaction, distribution,

reliability, customer service and personalization that influence client’s

satisfaction. Promotion is one aspect of marketing mix because the

consumers are informed about the new products and their attributes

before they develop positive attitudes toward them. It is a way to

persuade and informing the target market about the product

existence and hence like the product. Sivadas and Baker-Prewitt

(2000) are of the view that to satisfy the customer you will send a

word-of-mouth to the others thereby increasing the demand of the

product. Baker (2000), a good promotion involves product,

distribution and price components of marketing. A business' total

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marketing communications programme is called the "promotional

mix" and consists of a blend of advertising, personal selling, sales

promotion, brand management, product placement and public

relations tools. It has been established that many companies apply

these promotion mix elements in order to increase sales revenue.

Shimp (2003) viewed sales promotion as any incentive used by a

manufacturer to induce the trade or consumers to buy a brand and to

encourage the sales force to aggressively sell it. Retailers also use

promotional incentives to encourage desired behaviours from

consumers. Sales promotion is more short-term oriented and capable

of influencing behaviour. Totten & Block (1994) stated that the term

sales promotion refers to many kinds of selling incentives and

techniques intended to produce immediate or short-term sales

effects. Typical sales promotion includes coupons, samples, in-pack

premiums, price-offs, displays, etc. Coupons have been used to

produce trial (Robinson & Carmack 1997).

In view of the above, this study intends to look into how sales

promotion strategies impact on consumer buying behavior.

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1.2 STATEMENT OF THE PROBLEM

Promotion is a key element of the marketing strategies. It is vital to the

marketing process although it is costly; it helps in informing customers

about the right product and services. The promotional strategies are

made up of advertising, sales promotion, personal selling, publicity and

public relations.

The present trend of marketing today has been shifted towards

maintaining consumer patronage and products loyalty. Stiff competition

has however led many businesses into liquidation. The unfavourable

economic conditions, political and social changes have also produced

the same effect. All these could be due to inability of marketing

departments to anticipate, plan and employ effective strategies to

contain the external threats and internal weaknesses of the firm or

industry to boost consumer buying power. As a result of these, sales

promotion activities have become a daily affair in marketing with

business adapting different methods to address one problem or the

other for consumers.

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1.3 STATEMENT OF RESEARCH QUESTION

In line with above statement of problems, the following research

questions were raised.

1. Does sales promotion have a significant impact on consumer

buying decision?

2. Does sales promotion accelerate the consumer baying behavior?

3. Could sales promotion intervene in consumer buying decision

Process?

4. Does sales promotion contribute positively to the consumer

patronage of the product?

1.4 OBJECTIVES OF THE STUDY

From the research questions presented above, the study has the

following objectives:-

1. To examine whether sales promotion have significant impact on

consumer buying decision.

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 2. To find out if promotion accelerate the consumer buying

behavior.

3. To determine whether sales promotion intervene in consumer

buying decision.

4. To examine whether sales promotion contribute positively to

consumer patronage of the product.

1.5 RESEARCH HYPOTHESIS

Below are some of the hypotheses formulated to guide the study.

Ho: There is no significant impact between sales promotion and

consumer buying decision.

Hi: There is a significant relationship between sales promotion and

consumer buying decision.

Ho: Promotion does not accelerate the consumer buying behavior.

Hi: Promotion accelerates the consumer buying decision.

Ho: Sales promotion does not intervene in consumer buying

decision.

Hi: Sales promotion intervenes in consumer buying decision.

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 Ho: There is no significant relationship between sales promotion

and consumer patronage of the product.

Hi: There is higher significant relationship between sales promotion

and consumer patronage of the product.

1.6 SCOPE AND LIMITATION OF THE STUDY

According to Evborokhai (2003), scope is the boundary set for the

study. This can be geographical area to be study, the period the

investigator or the researcher wishes to look into the subject.

The researcher of this study intends to investigate the relationship

between sales promotion and consumer buying decision in some of

the selected Local Government in Zone A of Niger state. Although all

consumers of different product are taking in to consideration and the

researcher did not limit the study to a specific product.

LIMITATION

The researcher is expected to encounter problems in the course of

conducting research in to a problem area, no matter its nature and

scope. Financial constraints were one of the major factors militating

against the smooth conduct of the study.

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 Time that is universally accepted to be of essence is also another

challenge. And more so this study is to be conducted along with other

academic pursuit [Course work]. Therefore, the limited time may not

permit the researcher to undertake a more depth study into the areas

covered.

1.7 SIGNIFICANCE OF THE STUDY.

Firstly, this research work will be of a great assistance to business

enterprises owners, to help them understand the kind of promotional

tools to use in other to generate more sales or to convince more

consumers to buy more.

This research work will be of contribution to the body of existing

knowledge on sales promotion and consumer buying behavior.

1.8 CHAPTER SCHEME

This study is divided in to five (5) chapters as follows,

Chapter one (1) is the Introduction, the outline and the basis for the

study. It is an exposition on problems of the study, objective of the

study, research hypotheses, scope and limitation of the study as well

as significance of the study.

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Chapter two (2) is mainly a review of literary works relevant to this

research topic, while chapter three (3) is a detailed discussion about

the research design and methodology adopted to carry out this

research.

Chapter (4) four is a presentation of data analysis and techniques

employed in the analysis. And lastly chapter five (5) is recapitulative

in nature as well as dwell on summary of findings, conclusion and

recommendations for further research on Sales Promotion and

Consumer Buying Behaviour.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION

This chapter is concern with the review of related literatures, on

impact sales promotion and consumer behaviors. The objective of

this of this chapter therefore, is to review the work of some

researchers on sales promotion and consumer buying decision. This

is an attempt to provide a formal basis for examine the practical

relationship between sales promotion and consumer decision. This

chapter discuss on the relationship of sales promotion and consumer

buying behavior, meaning of sales promotion, types of sales

promotion, developing of sales promotion programs, main tools of

sales promotion, benefit of sales promotions, limitation of sales

promotion, meaning of consumer buying behavior, major factors

influencing consumer buying behavior, types of buying decision,

process in consumer buying decision and empirical literature on the

relationships between sales promotion and consumer buying

behavior.

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 In other words, discussion in this chapter, are expected to provide

basic tools for examine the relationship between sales promotion and

consumer buying decision in other chapters. Extensive studies would

be conducted through the use of text books and internet [website].

2.2 SALES PROMOTION AND CONSUMER BEHAVIOR

Sales promotion generally works on a direct behavioral basis rather

than effecting awareness or attitude. Dwyer and Tanner (2006) states

that, business consumer are larger than individual consumer;

meaning that each business consumers is more important to the

economic situation of the business marketers company. There are

also few business, so each business consumers is also more

important to the economical situation of the company; unhappy

consumers can affect the business marketers business in a

noteworthy way. Given the increasing importance of sales promotions

as a percentage of the total advertising and promotional budget

(growth from 58% in 1976 to72% in 1992 and increasing at a rate of

12% per year over the last 10 years), Gardener and Treved (1998)

study strive to understand the impact of sales promotions on

consumers behavior and how very important they are.

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2.3 MEANING OF SALES PROMOTION

A successful product or services means nothing unless the benefit of

product or services can be communicated clearly to the target

market. An organization therefore, uses sales promotional strategies

to reach their target consumers.

Kolo and Gana (2007) define promotion as the effort put in by an

organization to create awareness and encourage real patronage of

excising product. This is also the process in which organization

communicate information about its business and product to its

presence and potential customers. While Suleiman and Koche,

(2008) define promotion as communication activity between

manufacturer and his consumer, with the aim of informing ,

persuading and communicating so as to convince to purchase his

product.

Sales promotion activities are impersonal and usually non-recurring and

are directed to ultimate consumers, industrial users and middlemen. The

final element of the marketing mix is promotion. Promotion is essentially

seen as industry's sales efforts to current and prospective customers. Its

primary purpose is to increase profits by increasing sales volume, (Kotler

2001).

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Sales promotion consists of those seller-initiated activities that supplement

both advertising and personal selling and render them into a more effective

persuasive force (Olujide, 2002). Sales promotion therefore covers a wide

variety of short term incentive tools aimed at stimulating consumers, the

chains of distribution and the organization’s sales force. It could take

different forms such as giving away free samples of product, reducing the

usual price tag, etc. Thus, sales promotion has been an effective tool used

by companies in effecting increase hi sales especially hi the face of

competition and in an ailing economy. In Nigeria presently, the changing

socio-political and economic environment may make products that hitherto

had been selling like hot cake to suddenly lose their attraction. Sales

promotion is a major force in marketing today. Coupons, rebates, free

sample, point of purchase techniques are some of the promotional

strategies being employed today. Thus, an analysis of the sales promotion

on sales volume would

Ammer and Ammer (1977) defined promotion as the overall activity

furthering or advancing a business particularly through increasing the

sales of products or services. The statement: “Nothing happens until

somebody sells something” express succinctly the place of promotional

activities in today modern business operations and buying decisions.

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 The primary concern of promotion therefore is to bring about

exchange.

Sales Promotion is defined as .marketing activities usually specific to a

time period, place or customer group, which encourage a direct

response from consumer or marketing intermediaries, through the offer

of additional benefits.. (Peattie & Peattie1994)

Stanton (1978) sees promotion as the design and management of a

marketing subsystem for the purpose of informing and persuading,

present and potential buyers or consumers to purchase the products.

Promotion therefore is a key element in marketing strategy. While sales

promotion being one of the important methods of products promotion

plays a vital role in the marketing of a product in order to have

voluminous sales that may positively or negatively influence consumer-

buying behavior.

2.4 TYPES OF SALES PROMOTION

Says sales promotions are used as a way to attract attention to your

business or provide an incentive for a customer to take a desired

action. Peattie & Peattie (1993) Sales promotions typically last for a

specified time period and are designed to achieve a defined purpose

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 like helping to launch a new business or luring customers away from

a competitor. A variety of sales promotion types are available to small

business owners.

a. Demos and Sampling:- According to . Peattie & Peattie (1993) 51

percent of shoppers purchased a product they normally would not

have purchased when given a free sample. Samples are most

commonly used in grocery stores to introduce a new food product. A

demo is another form of sampling when a product or service is

demonstrated during actual use. A small business owner such as a

home improvement contractor could work with a local hardware store

to demonstrate a home improvement project.

b. Free Samples:- Distributing free samples introduces a new product

to the market to generate demand. Samples should be small, but they

must be large enough to provide customers with an adequate

experience of your product. Give samples to representatives of your

target market. If you are at an exhibition or trade show, have a limited

supply of your free samples available for view; this tells people that

your product is in high demand, and it stops customers from hoarding

samples.

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c. Coupons and Discounts:- Coupons or discounts are distributed by

mail, published in newspapers and magazines or delivered in person.

Coupon distribution pulls customers in and encourages them to buy

within a specific period. A picture of your product or service should be

included on a coupon, along with the discount rate and expiration

date. Target customers who would not normally purchase your

product or service. Coupons can be used as a way to attract new

customers or to develop customer loyalty. Mail coupons to targeted

households as an incentive for someone to shop at your store or

purchase your product. You can also place them on products on your

shelves to provide customers with an immediate savings at the cash

register. The latter method encourages customers to keep coming

back to your business.

d. Mystery Rewards:- Scratch-and-win cards or raffles for prizes are

other popular promotional tools. The key is to offer these rewards

only after the customer has agreed to purchase your product or

service.

e. Money Back Offers:- When customers doubt the quality or reliability

of your product or service, offer a money-back guarantee. Give a

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 detailed explanation of eligible returns and refunds available for

customer reference.

f. Branded Pens and Magnets:- Customers like to receive free

products that they can use, such as pens, sticky notes and magnets.

Distribute these products with your company's name and phone

number branded on them. Customers will be reminded of your

product or service whenever they use it. These items can be

manufactured in bulk, and they cost a fraction of what sales will pay

you.

g. Price Reduction:- A price reduction allows customers to buy your

products at a lower price for a specified period of time. A price

reduction may take the form of a sale or an in-store event like an

unadvertised special on certain items. A price reduction may also be

used to take attention away from a competitor. For example, if you

operate a dry cleaning business and a new dry cleaner opens a store

down the street, you can offer a price reduction to lure customers

away from the new store.

h. Free Products:- Giving something away is another way to lure

customers to your place of business. For your grand opening event,

you can provide everyone who attends with free food or drink or free

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 merchandise. You can also give away items containing your brand or

slogan such as coffee mugs or t-shirts. Another idea is to give away

prizes to the first 25 people who enter your place of business on a

given day.

i. Loyalty Programs:- Some companies use loyalty programs as sales

promotions, which entice customers to make more purchases.

Loyalty programs usually include a membership card that can be

tracked electronically through register purchases. For example, a

movie theater may offer free popcorn, drinks or even tickets to

customers who spend a certain amount of money.

j. Premiums:- Premiums are a very popular sales promotional activities

that provide giveaways to consumers. Fast food restaurants use

premiums all the time, often giving away toys or move character dolls

with the purchase of a kids' meal. Sometimes non-competing

companies go into cahoots with one another in a sales promotion. For

example, a manufacturer of mouthwash may give away floss, which

is another part of oral hygiene.

k. Sweepstakes:-Sweepstakes are another type of sales promotional

activity. Magazine publishers have been using sweepstakes for years

to boost subscriptions. Sweepstakes usually have to be significant

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 enough to entice massive numbers of people to make a purchase.

Money, cars and even computers are used in sweepstakes sales

promotions.

l. Product Demonstrations:- Product demonstrations or demos is

another effective sales promotion activity. Product demonstrations are

sometimes implemented to show customers how to use new or more

technical products. Sometimes, a demo like a computer terminal will

be set up for people to try it out. Other times a person like a model

will be used to demonstrate a product. A product demo display may

run without intervention to explain the various features.

2.5 DEVELOPING THE SALES PROMOTION PROGRAMS

Developing and implementing an effective sales promotion schedule

and advertising plan involves several carefully planned steps. Issues

to be taken into consideration include market research, creating a

campaign theme, developing collateral materials and advertisements,

selecting media outlets to use for message distribution and finally,

advertising plan implementation Das & Kumar (2009). Each step in

this process plays a role in determining the outcome and

effectiveness of the advertising campaign.

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Step 1:- Establish guidelines for what you want to cover in an initial

sales promotion. An initial promotion is typically the first step of a

multi-phase plan. Depending on the scope of the entire advertising

campaign, it may be worthwhile to do all of your pre-planning work at

the same time to make the most of your budget.

Step 2:- Set a timeline for when the initial sales promotion schedule

will launch and work backward in planning efforts. For example, if you

want the sales promotional schedule to begin January 1, figure out

how much time it will take to put the promotion together and develop

an advertising plan. If you anticipate it will take three months to put

the elements of the plan in place, start efforts in October of the

preceding year.

Step 3:- Establish a budget for the initial sales promotion schedule.

The budget should include costs associated with developing the

advertising plan, creating collateral materials and advertisements and

buying time and ad placement with media outlets. Take into

consideration the actual times and dates you want messages to air or

be published, because different time slots have different costs.

Step 4:- Determine the markets to be targeted during initial promotion

efforts. Refer to your budget to determine which aspects of the

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 advertising plan to roll out with each outlet, and the timeframe for

doing that. An initial sales promotion schedule allows you to test the

waters of a new advertising campaign to see how well the message is

received. Allow for some flexibility in your schedule in the event one

media message outperforms another.

Step 5:- Develop your advertising plan with a focus on messaging

and branding. Write copy, graphically design print and web ads and

produce video commercials. As with initial scheduling, you may opt to

create the entire plan at once, or develop and unveil the plan step-by-

step.

Step 6:- Launch your advertising plan per your initial sales promotion

schedule timeline. Establish a tracking system to gauge the

effectiveness of your advertising plan. Tweak the advertising and the

message delivery tools as necessary to reach desired audience and

achieve solid response. Use this research to help you improve your

secondary sales promotion schedules and advertising plans.

2.6 MAIN TOOLS OF PROMOTION

According to Chandon, Wansink & Lawrent (2000). The 4 Ps of

marketing are product, price, place and promotion. All four of these
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elements combine to make a successful marketing strategy.

Promotion looks to communicate the company’s message across to

the consumer. The four main tools of promotion are:-

a. Advertising:- Advertising is defined as any form of paid

communication or promotion for product, service and idea.

Advertisement is not only used by companies but in many cases by

museum, government and charitable organizations. However, the

treatment meted out to advertisement defers from an organization to

an organization. Advertising development involves a decision across

five Ms Mission, Money, Message, Media and Measurement.

Mission looks at setting objectives for advertising. The objectives

could be to inform, persuade, remind or reinforce. Objective has to

follow the marketing strategy set by the company. Money or budget

decision for advertising should look at stage of product life cycle,

market share and consumer base, competition, advertising frequency

and product substitutability. Message’s development further is divided

into four steps, message generation, message evaluation and

selection, message execution, and social responsibility review.

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 Once the message is decided the next step is finalizing the media for

delivering the message. The choice of depends on reach of media,

frequency of transmission and potential impact on customer. Based

on this choice of media types are made from newspaper, television,

direct mail, radio, magazine and the internet. After which timing of

broadcast of the message is essential as to grab attention of the

target audience. Checking on the effectiveness of communication is

essential to company’s strategy. There are two types of research

communication effect research and sales effect research.

a. Sales Promotion:- Promotion is an incentive tool used to drive

up short term sales. Promotion can be launched directed at

consumer or trade. The focus of advertising to create reason for

purchase the focus of promotion is to create an incentive to buy.

Consumer incentives could be samples, coupons, free trial and

demonstration. Trade incentive could be price off, free goods

and allowances. Sales force incentive could be convention,

trade shows, competition among sales people. Sales promotion

activity can have many objectives, for example, to grab attention

of new customer, reward the existing customer and increase

consumption of occasional users. Sales promotion is usually

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 targeted at the fence sitters and brand switchers. Sales

promotional activity for the product is selected looking at the

overall marketing objective of the company. The final selection

of the consumer promotional tools needs to consider target

audience, budget, competitive response and each tool’s

purpose. Sales promotion activity should under-go pretest

before implementation. Once the activity is launched it should

be controlled as to remain within the budget. Evaluation

program is a must after implementation of the promotional

scheme.

b. Public Relations:- Companies cannot survive in isolation they

need to have a constant interaction with customers, employees

and different stakeholders. This servicing of relation is done by

the public relation office. The major function of the public

relation office is to handle press releases, support product

publicity, create and maintain the corporate image, handle

matters with lawmakers, guide management with respect to

public issues. Companies are looking at ways to converge with

functions of marketing and public relation in marketing public

relation. The direct responsibility of marketing public relation

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 (MPR) is to support corporate and product branding activities.

MPR is an efficient tool in building awareness by generating

stories in media. Once the story is in circulation MPR can

establish credibility and create a sense of enigma among sales

people as well as dealers to boost enthusiasm. MPR is much

more cost effective tool than other promotional activities.

c. Direct Marketing:- The communication establishes through a

direct channel without using any intermediaries is referred to as

direct marketing. Direct marketing can be used to deliver

message or service. Direct marketing has shown tremendous

growth in recent years. The internet has played major part in

this growth story. Direct marketing saves time, makes an

experience personal and pleasant. Direct marketing reduces

cost for companies. Face to face selling, direct mail, catalog

marketing, telemarketing, TV and kiosks are media for direct

marketing.

2.7 BENEFIT OF SALES PROMOTIONS

Brassibgton & Pettitt (2000). Promotions, when done well, are an

effective way for you to market your business or products and

35
services. I’m not talking about promotions where you drop the prices

on your existing products significantly, or when you have a blowout

sale to move stale inventory. Instead I mean a well-planned,

seasonally relevant focus on themes or solutions wrapped around

your products that your customers will take note of and value, and

that prospects will be enticed to try for the first time. With that in mind,

here are nine benefits of running a well-planned sales promotion:

a. Creates differentiation – When you launch a new product or ask

customers to engage with your business in a new way, this sets

you apart from your competition. Promotion planning compels you

to identify something new or different that offers value to your

customers;

b. Creates new content and communication opportunities – One of

the easiest way to create new content for your customers is to

create news. Promotions are news. News is content;

c. Creates up sell and cross sell opportunities – When you package

or bundle products around a theme or solution, you can often

generate sales of multiple items rather than a single item. When

you focus on creating added value to your regular assortment, you

can charge premium prices;

36
d. Drives customer decision making– Limited availability offers can

create a sense of scarcity in your customers that get them to act.

When combined with new content that helps customers clearly see

the benefits of what you are promoting, you can create compelling

reasons to buy now. If you can add sampling of your promotional

item to the mix, you'll create a lot of reasons for customers to buy;

e. Creates word-of-mouth opportunities– If you operate a retail store,

your regular customers are almost always in a routine to buy from

you. Promotions can often get your regular customers a new

reason to be surprised and delighted by your business which gets

them to talk about you to their friends;

f. Creates training opportunities for your staff– Like regular

customers, your retail sales staff (or any employees who have

direct contact with customers), can fall into a routine and lose the

enthusiasm in their voice. Promotions gives you a chance to train,

prepare and reengage them in what’s new in your business;

g. Creates company focus on marketing – Developing a promotion

calendar forces you to plan for new marketing programs focused

at specific times of year. If you don’t have a dedicated marketing

team doing this for you already, creating a promotions mentality

37
 will get you marketing with more frequency and give you more

experience to build on.

h. Creates testing opportunities– Maybe you have ideas that you

think customers will like but are unsure of the outcome.

Promotions give you a limited time window to test new ideas and

new products and to measure them. This will help you figure out

whether they warrant additional investment of time and money to

make them permanent products or services.

2.8 LIMITATION OF SALES PROMOTION

A sales promotion is a marketing tool where a company uses a vehicle

such as a special price or discount for a limited time period to induce

customers to take a desired action. While successful promotions may prove

beneficial, they can also feature certain limitations.

a. Time Frame:- Sales promotions typically last for a specified

period of time. If the promotion did not attain the desired

objective such as increasing sales or luring customers from the

competition during the promotional time frame the result could

be a waste of money.

b. Misconceptions:- A sales promotion by itself is not enough to

solidify a product's position in the marketplace. If the product is

38
 of poor quality or does not meet expectations, customers may

be reluctant to purchase it again in the future.

c. Considerations:- If a product's benefits aren't clearly

differentiated from other competitors in the marketplace, some

customers may only purchase it when the promotion results in a

lower price. As a result, the overall profit margins may also be

lower than desired.

d. Warning:- If a promotion is successful, competitors may be

quick to imitate it. According to the website Reference for

Business, this may limit the effectiveness of the promotion due

to the appearance of "clutter" to the consumer.

2.9 MEANING OF CONSUMER BUYING BEHAVIOUR

Belch and Belch, (2001) defined consumer behaviour as the

process and the activities people engage in when searching for,

selecting, purchasing, using, evaluating and disposing of

products and services so as to satisfy their needs and desires.

They reported further that, for many products and services,

purchase decision is the result of a long, detailed process that

may include an extensive information search, brand comparison

39
and evaluation. They concluded that other purchase decisions

are more incidental and may result from little more than seeing a

product prominently displayed at a discount price in a store.

Schiffmand and Kanuk, (2000) defined consumer behaviour as

the behaviour displayed by consumers in the search for

purchasing, evaluating and disposing of products, and services.

They further stated that the study of consumer behaviour is

concerned not only with what consumers buy, but how they buy,

and how often they buy it. It is concerned with learning the

specific meaning that products hold for consumers. The

theorists concluded that consumer research takes place at every

phase of the consumption process which includes, before the

purchase, during the purchase, and after the purchase. Bovee

and Thill, (1992) also posited that consumer buying behaviour

refers specifically to the actions which consumers take when

deciding what to buy, and when making the actual purchase.

Perreault and McCarthy, (2000) opined that specific consumer

behaviours vary a great deal for different products and from one

target market to the other. That makes it impractical to try to

categorize all the detailed possibilities for every different market

40
situation. They claimed that most economies are sure that

consumers are economic buyers, that is, people who know all

the facts and logically compare choices in terms of cost and

value received to get the greatest satisfaction from spending

their time and money. They further said that this view assumes

that economic needs guide most consumer behavior. Economic

needs are concerned with making the best use of a consumers

time and money, as the consumer judges it. Some consumers

look for the lower price while others will pay extra for

convenience. Assail, (1980) believes that the buyers age, life

cycle, stage, occupation, economic circumstances, lifestyle,

personality and other personal characteristics and

psychological factors influence his or her buying decisions.

Young consumers have different needs, young married couples

differ from old people, while consumers with high incomes buy

differently from those who have less to spend. Coan, (1973)

opined that psychology helps marketers understand why and

how consumers behave as they do. In particular, concepts such

as motivation, personality, perception, learning, values, beliefs,

41
 attitudes, and lifestyle are useful for interpreting buying

processes and directing marketing efforts.

Perreault and McCarthy, (2000) stated that relationships with

other family members influence many aspects of consumer

behaviour. Family members may also share many attitudes and

values, consider each others opinion and divide various buying

tasks. Kottler, (2002) believes that such social factors, reference

groups, family and social roles and statues influence

consumer’s behaviour. Bovee et al, (1992) claimed that

consumers live in a complex social environment. The kinds of

products they grew up to favour are largely influenced by the

culture they grew up in, by demographic factors such as their

age and income, by their social status, by their household

makeup, by the groups they belong to, and by the people they

know. Cummins, (1990) found that socio-cultural influences

which evolve from a consumers formal and informal

relationships with other people, also exert a significant impact

on consumer behaviour.

2.10 THE MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR

42
According to Kotlers (2003) as cited by Zhenyu (2007) model,

consumer purchases are influenced strongly by cultural, social,

personal and psychological characteristics. Generally speaking,

marketers cannot control such factors, but they must take them into

account because these factors affect how individual consumers react

to the different stimuli that firms send out through their

communication. The marketers task is to understand what happens in

the buyers consciousness and the buyers decision making process.

The following factors are discussed to bring out the extent to which

they affect consumer behaviour.

a. Cultural Factors:- Cultural factors exert deep influence on

consumer behaviour. Culture is the basis for a persons wants and

behaviour (Kotler, 2003). Culture refers to “a set of values, ideas,

artifacts and other meaningful symbols that help individuals to

communicate, interpret and evaluate as members of society”

(Blackwell, Miniard, and Engel, 2001). It affects the consumers by

shaping the attitudes, feelings, biases, and opinions, which enable

marketers to interpret or even predict the reaction of consumers to

specific marketing strategies. Thus, it is vital for firms to be aware

43
 of culture, as well as its trends and changes. (Baker, 2000,

Lancaster & Massingham, 1993).

b. Social Factors:- A consumer’s behaviour is also influenced by

social factors, such as reference group, family, social roles and

status (Kotler, 2003). Because these social factors can strongly

affect consumer response, firms must take them into account

when designing their marketing strategies.

For one thing, reference group has significant influences on the

individuals product and brand purchases. Reference group are

groups that serve as direct or indirect points of comparison or

reference in forming a persons attitudes or behaviour (Kotler

2003,). The indirect or direct reference groups will include family,

friends and neighbour. Bearden and Rose (1990) pointed out that

reference group not only lead an individual to new behaviors but

also have effect on individuals attitude and self-concept, which in

turn influence actual brand preference and choice. Therefore, in

other words, references lead the market trends (Kotler, 2000).

For another thing, family members can strongly influence buyer

behavior. Kotler (2003,) pointed out that “family influences ones

44
 orientations toward politics and economics and a sense of

personal ambition, self-worth and love”. Even if the buyer no

longer interacts very much with his or her parents, the family can

still significantly influence the buyers behavior. Walters and Paul

(1970) suggested that the importance of the family can not be

overemphasized as many products purchased by multiple

members of the family may heavily influence the buying decision

of the individual.

What is more, the persons position in each group can be defined

in terms of both role and status. A role consists of the activities that

people are expected to perform according to the persons around

them, which influence the persons buying behaviour (Kotler, 2000).

Each role carries a status reflecting the general esteem given to it

by society. People often choose products that show their status in

society. For example, the role of a manager has more status than

the role of student, as a manager, the person will buy the kind of

product that reflects his/her role and status.

c. Personal Factors:- A buyers decision is also influenced by

personal characteristics such as the buyers age, occupation,

45
economic situation, lifestyle and personality and self-concept

(Rowley, 1997).

The age of the buyer is one of the major factors influencing

individuals purchases (Cole and Siva, 1993). People in the

different ages have different needs. A brand must be

understandable to the age group to which the product or service is

targeted and should be delivered through a medium used by

members of that group (Wells et al, 1992). On the other hand, a

person’s occupation can affect the goods and services bought.

Occupational groups usually have above average interest in the

products and services, which are related to their occupation

(Kotler, 2003). Therefore, the marketers need to consider the right

occupational groups as the production and marketing target.

Moreover, “lifestyle is a persons pattern of living as expressed in

his or her activities, interests and opinions” (Kotler, 2003, p183).

People coming from the same subculture, social class and

occupation may have quite different lifestyles and it can vary

significantly in different countries. There is no doubt that knowing

the target consumers‟ lifestyle will help in product development

and advertising.
46
Equally important, economic circumstances greatly affect product

choice. Since the income is not only the consideration factor for

the consumption demand, but also the determinants factor for the

preference, companies need to continuously track the trends of the

personal income over the target potential consumers, towards the

designed product (Baker, 1996). Therefore, income level is a

useful variable to explore the consumer buying behaviour and

brand decision while buying a product. (Zhenyu, 2007)

Different people have distinct personalities that influence their

buying behaviours and certain brand choices (Kolter, 2003).

Personality refers to the unique psychological characteristics that

lead to relatively consistent and lasting responses to one‟ own

environment (Kotler, 2003). “It is described in terms of such traits

as self-confidence, dominance, autonomy, deference, sociability,

defensiveness, and adaptability” (Kassarjian, 1981). However,

Chisnall (2001) proposed that personality may influence the

decision to buy a certain product type, but not the final brand

choice.

Finally, self-concept is the way a person views himself/herself

(Kotler, 2003). In other words, it is the perceptions that contribute

47
 to and reflect their identities: that is, „we are what are‟ Marketers

can predict the response of the customer towards the brand image

by analyzing the target consumers self concept thereby helping

the marketer in the adoption of an appropriate.

d. Psychological Factors:- A number of complex behavioural factors

lie in psychological factors such as perception, motivations,

attitudes and learning (Kotler, 2003, Zhenyu, 2007).

Firstly, “a motivation is a learned need that is sufficiently pressing

to direct the person to seek satisfaction” (Kotler & Keller, 2006,). In

other words, it leads consumers to pursue particular goals

because they are socially valued (Buchanan & Huczynski, 1997).

Therefore, motivation is the condition of being motivated (Walter &

Paul, 1970). Thus, marketers need to identify what needs the

consumer is trying to satisfy. Here we introduced one motivation

theory in order to understand human motivation, which is often

used by marketers.

Maslow’s theory: Maslow (1970) as cited by Zhenyu (2007)

illustrated that people are driven by particular needs at particular

times. The key point is that human needs are arranged in a

48
 hierarchy. He classified the humans needs to five levels, which are

psychological needs, safety needs, social needs, self-esteem

needs and self-actualization. Maslow argues that the lower down

the needs lie, the more basic they are and the basic physical

needs have to be satisfied, at least to minimum level, before the

next level of needs becomes important. This theory helps

marketers understand how various products and brands fir into the

plans, goals and lives of potential consumers. Secondly, a

motivated person is ready to act. How the person acts is

influenced by his or her perception of the situation. “Perception is

the process by which an individual selects, organizes and

i9nterprets inputs to create a meaningful picture of the world.”

(Bereson and Steiner, 1964). Two people with the same motivation

and in the same situation may act quite differently because they

perceive the situation differently. Thirdly, learning describes

changes in an individual’s behaviour arising fro

2.11 TYPES OF BUYING DECISIONS BEHAVIOR

49
 Kotler,(2003). Buying Decision differs from person to person.

Deepening upon the need of the person, the decision gets change;

Even if the product is small. There are different factors which

influences the nature of buying. Hence buying decision has been

classified into four different categories such as Complex buying

behavior, Dissonance Reducing buying behavior, Habitual buying

behavior and Variety seeking buying behavior. These are classified

depending upon the degree of involvement and degree of difference

among brands.

2.10.1 Complex Buying behavior: This situation involves the high

level of involvement from consumers and the same with the

difference among brands. These cases arise when the product is of

high price, risky, high for servicing, and so on. For Ex: Buying a

laptop/Car. Here the product is expensive and there is a significant

difference among the brands.

2.10.2 Dissonance reducing behavior: This involves high involvement of

the buyer but a less significance difference among the brands. For

ex: Buying an Air Conditioner. Here the product is highly priced but

almost all every brand gives the same features. Sometimes this may

50
 involve the post purchase dissonance behavior. Here the consumer

looks at the disadvantages of the product after purchase.

2.10.3 Habitual Buying Behavior: Here there will not be any kind of

involvement from the consumer. Here the purchase happens

depending upon the Brand familiarity. Here the consumer

involvement is low and less differences among brands. This happens

based on the habits of buying. For Ex: Buying of a liquid soap . Most

of the people prefer Dettol because of the brand. But there are other

products like Lifebuoy with less significant difference.

2.10.4 Variety Seeking Buying Behavior: Here the consumer

involvement is low but there will be significant difference among

brands. For Ex: Biscuits, when we buy a biscuit we do not know the

taste hence after consumption only we can tell that whether to go for

the brand or not for the next time. Here the companies try to change

the nature to Habitual Buying behavior by different strategies.

Sometimes this depends upon the retailers too.

2.11 PROCESS IN CONSUMER BUYING DECISION

Five stages comprise the consumer buying decision process:

problem recognition, information search, alternative evaluation,

51
 purchase decision and post-purchase behavior. Each of these stages

can be a deliberate action such as researching product options or a

subconscious thought like recognizing the juice in the refrigerator has

almost run out. A merchant or business must understand the steps a

customer goes through to make a purchase. A merchant can

influence a customer's purchase by providing targeted information,

advertisements or guidance.

2.11.1 Information Search:- Customers in the information search

stage of the buying process look for solutions to their problems or

needs. They remember what types of purchases solved a similar

problem in the past. Customers also discuss their needs with friends

and relatives to see what solutions they may suggest. For more

expensive purchases, customers may read reviews, look through

newspapers or research the product online.

2.11.2 Alternative Evaluation:- Consumers evaluate their purchase

options based on product attributes, such as technical specifications,

through subjective factors, such as brands, and through personal

experience, such as sampling or testing products. Consumer and

company reviews can influence a consumer's product evaluation.

52
2.11.3 Purchase Decision:- A consumer's decision to purchase something

includes where to buy, when to buy and whether to buy. For routine

goods such as groceries, consumers may simply go to their favorite

grocery store, but for electronic purchases, they may browse multiple

stores. They will evaluate each merchant based on prior experience

with the store, special offers and whether they can return the product

easily. A store that's visually appealing, has helpful sales associates

and offers specials and discounts influences a buyer.

2.11.4 Post-Purchase Behavior:- After making a purchase, a consumer

mentally ranks her purchase satisfaction. She will evaluate if she

liked the store, if she enjoys the product and the quality of the

product. This evaluation determines whether the customer will

purchase the product or brand again and whether it would be from

the same store. Customers who are happy with their purchases and

feel they received a quality product at a good price, will become

repeat customers and will tell others about their experience.

2.12 THE EMPRICAL LITERAURE ON THE RELATIONSHIPS

BETWEEN SALES PROMOTION AND CONSUMER BUYING

BEHAVIOUR.

53
Most researchers agree about sales promotions boosting effect on

short-term sales. However, long-term effects are under an academic

debate and different research shows opposing results. According to

Ailawadi (2001), sales promotions have a positive long term effect on

sales because promotions persuade consumers to change brands

and to buy in larger quantity. Some of the research shows that after a

promotional purchase probability for a repeat purchase is lower than

after a non-promotional purchase. Literature identifies five main

reasons for that. First, promotion is considered to be an ex ternal

stimulus and after when it is gone consumers are less likely to re-

purchase (Dodson et al. 1978, Bawa & Shoemaker 1987; in Peattie &

Peattie 1993, 257). Second, customers might also become

comfortable with the lower price and demotivated to buy with the

normal price anymore (Monroe 1973, Winer 1986, Kalwani et al.

1990; in Peattie & Peattie 1993, 257). Third, promotions might also

encourage low-probability purchasers to try. However they are

customers who are not likely to make repeat purchases and thus the

promotions have a negative impact on long-term sales. (Neslin &

Shoemaker 1989; in Peattie & Peattie 1993, 257) Fourth, price is

used as a measure of quality for many service consumers. In that

54
sense, decrease in the price devalues the brand in the eyes of the

customers. (Peattie & Peattie 1993, 257)

Last, regular purchasers tend to stockpile during a promotion,

decreasing the amount of after-promotion purchases (Frank &

Massey 1971; in Peattie & Peattie 1993, 257). Some research has

also shown that sales promotions increase the likelihood for repeat

purchases. If consumers are satisfied with the brand that is being

promoted, it is more likely that they will also buy it later after the

promotion is over. (Peattie & Peattie 1993, 257) Davis et al. (1992)

conclude that price promotions do not have effect on consumers´

quality perceptions and promotions do not change the long-term

purchase patterns of an established brand. Also brand switching and

purchase re-timing are under an academic review. Moriarty (1985; in

Peattie & Peattie 1993) found that promotions 35have only a minor

effect on brand switching and customers who do switch might be

those who are always looking for the best deal and thus cannot be

kept as loyal customers. Previous research has also found that

consumers simply re-time their purchases according to promotional

offers (Doyle & Saunders 1985; in Peattie & Peattie 1993, 257).

Based on the previous research, three different long-term effects of

55
sales promotions can be identified. First, if the promotion campaign

has been successful in persuading new customers it might have a

positive effect on long-term sales. However, if these new customers

are those that are always looking for the best deal, it might be that

when the deal is over, there are no long-term effects on sales. Third

possibility is that, according to the five reasons mentioned above,

promotions might have a negative impact on the long-term sales.

(East 1997)

Conclusions from the sales promotions research should be made with

care because many of the results can vary between different products

and consumer groups. Also, situational factors play a role in the

outcome analysis.

56
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter describes the research design and methodology for the

research work. The purpose of this study is to examine the

relationship of sales promotion and consumer behavior in some

selected Local Government in Zone A of Niger State. The researcher

will collect data from some consumer of varieties of product from this

selected area of study through the use of questionnaire.

3.2 RESEARCH DESIGN

57
 A good research design therefore will ensure that the information

obtained is relevant to the research problem and that is collected by

an objective procedure. Base on the nature of this study, explanatory

and descriptive approach will be used.

Descriptive research: This is used to obtain information concerning

the current status of the phenomena to describe "what exists" with

respect to variables or conditions in a situation. The methods involved

range from the survey which describes the status quo, the correlation

study which investigates the relationship between variables, to

developmental studies which seek to determine changes over time.

Explanatory research: This is research conducted in order to explain

any behavior in the field. It could be done through using

questionnaires, group discussions, interviews, random sampling, etc.

3.3 DATA SOURCES AND METHOD OF DATA COLLECTION

The study used both primary and secondary data sources for the

purpose of collecting data for this research work.

(i) PRIMARY SOURCE:- This is a type of source that uses

questionnaire and interview method to generate the required data

from the respondents during the course of the study. They are aimed
58
at gathering information’s through questionnaire and interviewed

techniques.

(a) Questionnaire:- This is an instrument used to generate

primary data. It consist of several questions relating to the study

area and directed to the respondents whose response will be

collected and analyzed so as to address the research question,

problem and test hypothesis.

In this research work, structured questionnaire was

administered to selected consumers in some selected Local

Government area in Zone A of Niger state which comprises

Bida, Lapai Agaie and Mokwa LGA’s respectively.

(b) Interview:- This was also used to aid in the collection of

primary data. This instrument allow the researcher an

opportunity of face-to-face conversation with the respondents.

(ii) SECONDARY SOURCE:- Secondary data for this study includes

books and texts that are already published and are available in

libraries and bookshops. The internet also provides easy access to

secondary data and it also constitutes the materials to be used in

building of literature review for this study.

59
3.4 RESEARCH POPULATION

Population refers to the entire subjects which the researcher is

investigating. It is also referred to any group or objects which are

similar in one or more ways and which form the objects of study in a

particular investigation.

The absence of a reliable census data of consumers made it difficult

to know exactly what the total population of the study is. The research

cover some selected LGAS within Zone A of Niger state namely Bida,

Mokwa, Lapai, and Agaie.

3.5 DETERMINATION OF SAMPLE SIZE

To get a reliable data of this research work, the researcher will

sample the opinion of some consumers in view of eliciting information

on the impact of sales promotion on consumer buying decision which

help most businesses to increase their sales.

In attempt to elicit adequate data for this study, the researcher will

select a sample of 80 consumers within the area of study to cover the

total population.

LGA SAMPLE SIZE

Bida 20

60
 Mokwa 20
Lapai 20
Agaie 20
TOTAL 80

The researcher will use the random techniques to select the sample

size. In this study, the population of the study constitutes of all the

people (i.e. consumers) in Niger state Zona A comprising of Bida,

Lapai, Agaie, and Mokwa LGAs of the state. The absence of a

reliable census data of consumers made it difficult to know exactly

what the total population of the study is. However, a sample of 80

consumers within the study area was chosen as the sample size of

the study.

3.6 METHOD OF DATA ANALYSIS

To enhance decision making and understanding of data analysis and

interpretation, the researcher will use tables and sample percentages

in data analysis. The population statistical method called Chi-Square

(X²) will be use to provide the means of establishing the significance

of the differences between the hypotheses raise in chapter 1.

The Chi-Square formula is expected as follows:-

61
Chi-Square (X²) is given by the formula

X² = ∑ (fo –fe) ²
fe

Where,

X² = Chi square

fo = observe frequency

fe = expected frequency

∑= Summation

DECISION RULE:- If the chi-square value is less than or equal to the

calculated value we accept, and if more than we reject the

hypothesis.

62
 CHAPTER FOUR

DATA PESENTATION, ANALYSIS AND INTERPRETATION

4.1 INTRODUCTION

This chapter is concerned with presentation, analysis and

interpretation of the data obtained from the study area by means of

questionnaire:

The hypotheses propounded at the beginning of the study in chapter

one will be put to test. This enable readers to understand the

relationship between the response of respondent and the statement

of research hypotheses through chi-square as the statistical tool to be

used.

4.2 DATA PRESENTATION, ANALYSIS AND INTERPRETATION

63
 A total of 80 (eighty) questionnaire were personally distributed by the

researcher to selected consumers within selected Local Government

in Zone A of Niger state (Mokwa, Bida, Lapai and Agaie). Out of the

80 (eighty) copies of the questionnaire distributed, only 70 (seventy)

were duly completed and returned to the researcher. Thus, the

analysis below is based on 70 respondents.

TABLE 1: DISTRIBUTION OF RESPONDEND BASED ON LGA

L.G.A. Administered Percentage Collected Percentage

Questionnaire
MOKWA 20 25 18 26
BIDA 20 25 19 27
LAPAI 20 25 17 24
AGAIE 20 25 16 23
TOTAL 80 100 70 100
Source: Questionnaire administered

Table 1 shows that out of the total number of 80 (eighty) copies of the

questionnaire distributed, 20 (25%) were administered to respondents

at Mokwa, 20 (25%) were administered to respondents at Bida, 20

(25%) were administered to Lapai, and 20 (25%) were administered

to respondents at Agaei local government areas respectively.

Also, out of 20 (25%), administered copies of the questionnaire at

Mokwa, 18 (26%) were collected, 20 (25%) administered to

64
respondents at Bida, 19 (27%) were collected, 20 (25%) administered

at Lapai, 17 (24%) were collected, and 20 ( 25%) administered at

Agaie 16 (23%) were collected.

This result shows that there was a high participation rate by the

respondents.

Table 2: Distribution of Respondent base on marital status

Variables No of respondents Percentages (%)

Single 30 43
Married 40 47
Total 70 100
Source: Questionnaire administered.

Table 2 shows that 30 respondents representing 43% of respondents

are single, were 40 respondents representing 47% are married.

Table 3: Distribution of Respondent according to Age

Variables No of respondents Percentages (%)

18-25 years 30 43
26-35 26 37
36 and Above 14 20
Total 70 100
Source: Questionnaire administered.

Table 3 shows that 30 or 43% of the respondent are between the

ages of 18-25yrs, 26 or 37% of the respondents are between the

65
ages of 26-25yrs while, about 14 0r 20% of the respondents are

between the ages of 36 and above.

Table 4: Distribution of respondents based on whether sales

promotion impact on buying decision

Variables No of respondents Percentages (%)

Yes 50 71
No 20 29
Total 70 100
Source: Questionnaire administered.

Table 4: shows that 50 respondent representing 71 percent believe

that sales promotion on buying decision, while 20 respondent

representing 29 percent do not believe that sales promotion do

impact on buying decision.

Table 5: Distribution of respondents based on whether

there is relationship between sales promotion tools and

consumer buying decision.

Variables No of respondents Percentages (%)

Yes 50 71
No 20 29
Total 70 100
Source: Questionnaire administered.

66
Table 5 shows that 50 of the respondents representing 71percent

believe that there is a positive relationship between sales promotional

tools and consumer buying decision. While 20 of the respondents

representing 29 percent did not agree.

Table 6: Distribution of respondents based on whether

price reduction tempted them to buy a particular product.

Variables No of respondents Percentages (%)

Yes 54 77
No 16 23
Total 70 100
Source: Questionnaire administered.

Table 6 shows that 54 of the respondents representing 77percent

agreed that price reduction do tempted them to buy a particular

product. While 16 of the respondents representing 23 percent did not

agree.

Table 7: Distribution of respondents based on whether free

sample do motivate on buying a particular product.

Variables No of respondents Percentages (%)

Yes 46 66
No 24 44
Total 70 100
Source: Questionnaire administered.

67
Table 7 shows that 46 of the respondents representing 66 percent

agree that free sample do motivate on buy a particular product. While

24 of the respondents representing 44 percent did not agree.

Table 8: Distribution of respondents based on whether cost of

promotion have an effect on the price of product .

Variables No of respondents Percentages (%)

Yes 46 66
No 24 44
Total 70 100
Source: Questionnaire administered.

Table 8 shows that 46 of the respondents representing 66 percent

believe that cost of promotion have an effect on price of the product.

While 24 of the respondents representing 44 percent did not agree.

Table 9: Distribution of respondents based on whether

Discounts Is Instrumental To Buy Products

Variables No of respondents Percentages (%)

Yes 54 77
No 16 33
68
Total 70 100
Source: Questionnaire administered.

Table 9 shows that 54 of the total respondents representing 77

percent believes that discounts often is an instrumental to their

buying of products, while 16 of the respondents representing 33

percent believe that discount does not often motivate them to buying

a product.

Table 10: Distribution of respondents based on whether sales

promotion do increase patronage on a product

Variables No of respondents Percentages (%)

Yes 48 69
No 22 31
Total 70 100
Source: Questionnaire administered.

Table 10 shows that 48 of the total respondents representing 69

percent believes that sales promotion increase patronage of

products, while 22 of the respondents representing 31 percent

believe that sales promotion has nothing to do with patronage on a

product.

69
Table 11: Distribution of respondents based on whether social

class is a determinant factor to buying decision

Variables No of respondents Percentages (%)

Yes 49 70
No 21 30
Total 70 100
Source: Questionnaire administered.

Table 11 show that 49 of the total respondents representing 70

percent believe that social class influences their buying decision.

While about 21 of the total respondents representing 30 percent

believe that it does not determine their buying decision.

Table 12: Distribution of respondents based on whether point-

of-purchase displays influence decision to buy products.

Variables No of respondents Percentages (%)

Yes 46 66
No 24 44
Total 70 100
Source: Questionnaire administered.

Table 12 shows that 46 of the total respondents representing 66

percent believe that point-of-purchase displays influence their

decision to buy products while 24 of the respondents representing 44

percent disagree.

70
 Table 13: Distribution of respondents based on whether

particular sales promotion affects buying decision.

Variables No of respondents Percentages (%)

Yes 42 60
No 28 40
Total 70 100
Source: Questionnaire administered.

Table 13 shows that 42 of the total respondents representing 60

percent believe that types of sales promotion influences their buying

decision. While about 28 of the total respondents representing 40

percent believe that it does not.

Table 14: Distribution of respondents based on whether

Free Trial of Products Stimulate Purchase.

Variables No of respondents Percentages (%)

Yes 46 66
No 24 44
Total 70 100
Source: Questionnaire administered.

Table 14 shows that 46 of the respondents representing 66

percent believe that free trials of product can stimulate

71
 purchases, while 24 of the respondents representing 44 percent

do not believe that they stimulate purchases.

Table 15: Distribution of respondent based on which sales

promotion motivates them to purchase a product.

Variables No of respondents Percentages (%)

Free trial 27 39
Sample 05 7
Coupons 07 10
Free gift 31 44
Total 70 100
Source: Questionnaire administered.

Table 15 shows that 27 of the respondents representing 39

percent agree that free trials motivate them to buy a product, 5

respondent representing 7 percent indicated sample, 7 of the

respondent representing 10 percent chooses coupons . and

31respondent representing 44 percent indicated free gift.

4.3 HYPOTHESES TESTING

As stated earlier and for the purpose of ascertaining the relationships

between the tentative statement of hypotheses in chapter one, and

the analysis of the data in chapter four, the chi-square test will be

used to test the hypotheses. The test involves the comparing of

observed frequencies and expected frequencies.

72
 The following formula will be used in computing the cha-squire value

for the data.

X² = ∑ (fo –fe)²
Fe
Where,

X² = Chi square test

fo = observe frequency

fe = expected frequency

∑= Summation

The following tables will be use to test the hypotheses

Table 4, 5, 8, 10, 13.

4.3.1 HYPOTHESES 1

There is a significant relationship between sales promotion and

consumer buying decision.

STEP 1

YES NO TOTAL
TABLE fo fe fo fe sample
4 50 20 70

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 5 50 20 70
8 46 24 70
Total 146 64 210

STEP 2
Fe (Yes) = 146 X 70 = 48.7
210 1

Fe (No) = 64 X 70 = 21.3
210 1
TABLES Yes No Total
Fo Fe Fo Fe Sample
4 50 48.7 20 21.3 70
5 50 48.7 20 21.3 70
8 46 48.7 24 21.3 70

STEP 3
Table Fo Fe Fo-Fe (fo –fe)² (fo – fe)²
fe
4 Yes 50 48.7 1.3 1.69 0.035
4 No 20 21.3 -1.3 1.69 0.08
5 Yes 50 48.7 1.3 1.69 0.035
5 No 20 21.3 -1.3 1.69 0.08
8 Yes 46 48.7 -2.7 7.27 0.15
8 No 24 21.3 2.7 7.28 0.34
X² 0.730

74
 STEP 4

The significance level is 0.05 i.e a = 0.05 and degree of

freedom

(df) = r x cl – 1 = 3 x 2 – 1 = 5

Where n (r) = 3 and n (c) = 2

The chi-square table value is 11.070 while the calculated value is

0.730

DECISION RULE

Since the calculated value of x² (0.720)

is less than the tabular value of x² (11.070)

There is significance relationship in the observed and expected

frequencies.

That there are relationship between sales promotions and consumer

buying decision.

4.3.2 HYPOTHESES 2

That sale promotion accelerates the consumer buying decision.

75
 STEP 1

TABLE YES NO TOTAL SAMPLE

10 48 22 70
13 42 28 70
TOTAL 90 50 140
STEP 2

Fe (Yes) = 90 x 70 = 45
140
Fe (No) = 50 x 70 = 25
140

TABLE YES NO TOTAL

FO FE FO FE BALANCE
10 48 45 22 25 70
13 42 45 28 25 70

TABLE FO FE FO - FE (fo –fe)² (fo – fe)²

Fe
10 Yes 48 45 3.0 9.0 0.2
10 N0 22 25 -3 9.0 0.36
13 Yes 42 45 -3 9 0.2
13 No 28 25 3 9 0.36
X² 1.12

76
STEP 3

The significance level is 0.05 i.e a = 0.05 and degree of

freedom

(df) = r x cl – 1

=2x2=4 –1=3

Where n (r) = 2 and n (c) = 2

The chi-square table value is 11.070 while the calculated value

is 1.12

DECISION RULE

Since the calculated value of x² (1.12) is less than the tabular value of

x² (11.070)

There is significance relationship in the observed and expected

hypotheses.

77
 That sale promotion accelerates the consumer buying decision.

CHAPTER FIVE

SUMARY, FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 INTRODUCTION

This chapter sums up background procedures, methodologies and

summary and findings of the study.

78
 Conclusion were drawn from the results of research findings and

recommendations were made base on such findings

5.2 SUMMARY

The study reveals in clear terms, how sales promotion strategies

impact on consumer behavior. The significance of sales promotion

and consumer buying behavior are given adequate emphasis in all

the chapters.

Chapter one includes the background of the study as a remark to

what interest the writer to undertake the research.

The chapter is basically a review of contemporary literature on sales

promotion and consumer buying behavior. The chapter dwells on the

concepts such as definition of sales promotion, growth of sales

promotion activities, factors to consider in developing sales

promotion, types and limitations of sales promotion among others

were fully discussed.

The chapter three, the research design and methodology were

thoroughly discussed. This study avail itself of a combination of

sample statistical tools such as percentages and frequencies were

79
 employed, while chi-square was used to test the hypotheses

generated.

Chapter four (4) consists mainly of data analysis. Data collected were

analysed using table of simple percentages and frequencies.

Chi-square tables were calculated and compared with the tabular

value of chi-square to test the hypotheses generated in the preceding

chapter.

5.3 FINDINGS AND CONCLUSIONS

5.3.1 FINDINGS: A review on sales promotion and consumer buying

behavior as being presented theoretically through literature reviews

and through the analyses of data in chapter four. Therefore, based on

the analysis of data and interpretation, the following are the major

findings:

1. That allowing consumers to have free trial on the products also helps

in influencing their decision to make purchases.

2. That the majorities of the consumers within selected local

government are motivated by free trial and free gifts promotional

tools.

80
3. That free samples of products to consumers helps motivates them in

making buying decisions within selected local government in Zone A

of Niger state.

4. That issuance of free gift on some products to consumers pushes

them more to make buying decision on such products.

5. That consumers are aware of different other sales promotional tools

available such as rebates and refunds, premiums, product warranties,

sweepstakes etc.

6. That availability of different promotional tools and activities within the

selected local government will increase consumers buying decisions.

7. That the distribution of coupons to consumers on different products

helps in stimulating consumers to buy products.

Finally, chapter five of the study came up with the summary, findings,

conclusion and recommendations of the whole study.

5.3.2 CONCLUSIONS

Considering all that have been discourse so far the findings of this

study, we conclude that sales promotional tool used by sellers assist

in influencing consumers buying decision in selected local

81
 government in Zone A of Niger state. In addition to this, consumers

within the selected areas have preference to the type of sales

promotional tool that will effectively influence their buying decision.

5.4 RECOMMENDATIONS

Base on the analysis of data, summary of major findings and

conclusions, the following recommendations were made based on the

study. It is sincerely hoped that the adoption of these

recommendations will contribute immensely towards improving

consumers buying decision through different sales promotional tools

in selected Local Government in Zone A of Niger state.

1. There should be necessary improvement on promotional activities by

using the promotional tools interchangeably.

2. There should be series of sales promotional activities. This will

positively impact on consumers buying decision within the metropolis.

3. There should be continuous use of sales promotional tools such as

free samples, free trials, free gifts, coupons, and discounts within

selected LGA. This will thus, aid in stimulating consumers to make

more purchases.

82
4. Efforts should be made to introduce and use other sales promotional

tools like rebates and refunds, premiums, product warranties, and

sweepstakes, which the consumers are aware of to further, stimulates

their buying decision.

5. Lastly, adequate care should be taken to find out the type of sales

promotional tool that motivates them most in making decision to buy

products. This will also assist in ensuring that the desired objectives

are attained at all times.

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APPENDIX

QUESTIONNAIRE

87
Topic: Sales Promotion and Consumer buying behavior (A case study
of some selected Local Government in Zone A of Niger state.)

Department of Business Administration,

Faculty of Management sciences,
Usmanu Danfodiyo University, Sokoto.
Dear Respondent,

I am a postgraduate student of the Department of

Business Administration, Faculty of Management Sciences,
Usmanu Danfodiyo University, Sokoto. Am carrying out a
research on the above topic leading to the award of masters
Degree in Business Administration (MBA).

These questions are been design for the purpose of

research work.

Please kingly tick these questions to the best of your

knowledge. The objective is purely for academic purpose and
you are assured that the information given will be treated with
almost confidentiality.

Yours faithfully,
Mohammed Danjuma

PERSONAL DATA

1. Sex Distribution.

88
 a. Male ( ) b. Female ( )

2. Marital status.

a. Single ( ) b. Married ( )

3. Age.

a. 18-25 ( ) b. 26-35 ( ) c. 36 and above ( )

QUESTIONS

4. Does sales promotion impact on your buying decision?

a. Yes ( ) b. No ( )

5. Is there any relationship between sales promotion tools and

consumer buying decision?

a. Yes ( ) b. No ( )

6. Does price reduction tented to buy a particular product

a. Yes ( ) b. No ( )

7. Do free sample motivate you to buy a particular product?

a. Yes ( ) b. No ( )

8. Does cost of promotion have any effect on the price of product?

a. Yes ( ) b. No ( )

9. Does discount stimulate your buying decision?

89
 a. Yes ( ) b. No ( )

10. Does sales promotion increase your patronage on a product?

a. Yes ( ) b. No ( )

11. Have your social class determine your buying decision?

a. Yes ( ) b. No ( )

12. Does point of purchasing influence your decision to buy a product?

a. Yes ( ) b. No ( )

13. Have any sales promotion affected your buying decision?

a. Yes ( ) b. No ( )

14. Do free trials of product stimulate you to make purchase?

a. Yes ( ) b. No ( )

15. Which of the sales promotions motivate you to purchase a

product?

a. Free trial ( ) b. Samples ( )

c. Coupons ( ) d. Free gift ( )

90