TITLE PAGE

THE IMPACT OF PROMOTION ON CUSTOMERS

PACKING
(A CASE STUDY OF G-WORLD ENTERPRISE BENUE STATE)

BY

RAPHAEL SAMSON IGOCHE

BSP/MKT/H/030

A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF

MARKETING. SCHOOL OF BUSINESS ADMINISTRATION
AND MANAGEMENT STUDIE

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR

THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN
MARKETING

BENUE STATE POLYTECHNIC, UGBOKOLO

FEBUARY, 2024

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 CERTIFICATION
This is to certify that, this research work has been read and approved having
satisfied the requirement for the award of Higher National Diploma (HND) in
marketing, Benue state Polytechnic, Ugbokolo.

_____________________ __________________
PROJECT SUPERVISOR SIGNATURE/DATE
DR. MRS. ADOYI JANET

______________________ __________________
HEAD OF DEPARTMENT SIGNAMENT/DATE
DR. ADAH G.I

_______________________ ___________________
EXTERNAL SUPERVISOR SIGNATURE/DATE

_______________ _________________
STUDENT SIGNATURE/DATE

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 DEDICATION

This project is dedicated to God almighty who in his infinite mercy and grace has
seen me through at the course of this program and also to my beloved Mother, Mrs.
Raphael Veronica and my Brother, Mr. Raphael Innocent Oche who have sacrifice
their time and money for me

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 ACKNOWLEGEMENT

I thank God for the special grace and strength in writing this project. It is by his
grace that this research work became reality. May God reward those who assisted
me in this project worked. You are all worth mentioning, for that I say indeed, I am
grateful.

My special gratitude goes to my supervisor Mrs. Adoyi Janet for painstaking going
through every stage of the project and for being there through this research work.

My gratitude goes to my family member at large, friends and course mates. I

remain grateful to you all.

1.0

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 TABLE OF CONTENT

i. Certification
ii. Dedication
iii. Acknowledgement

1.0 INTRODUCTION

1.1 Background to the study - - - - - - - - -1

1.2 Statement of the Problem- - - - - - - - -1

1.3 Purpose of the Study-- - - - - - - - -2

1.4 Research Question and Hypothesis- - - - - - -2

1.5 Significant of the Study- - - - - - - - -3

1.6 Scope of the study- - - - - - - - - -4

1.7 Operational Definition of terms- - - -- - - - -5

REVIEW OF RELATED LITREATURE

2.1 Conceptual Framework - - - - - - - - -6

2.2 Theoretical Framework - - - - - - - - -16

2.3 Empirical Studies- - - - - - - - - -18

2.4 Appraisal of Review - - - - - - - - -19

CHAPTER THREE
METHODOLOPGY
3.1 Research Design- - - - - - - - - -21

3.2 Population of the Study- - - - - - - - -22

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3.3 Samples and Sampling Techniques- - - - - - -22

3.4 Instrument for Data Collection - - - - - - - -23

3.5 Validity of the Instrument- - - - - - - - -23

3.6 Reliability of the Instrument - - - - - - - -24

3.7 Procedure for Data Collection - - - - - - - -24

3.8 Method of the Data Analysis - - - - - - - -24

CHAPTER FOUR

4.1 Answer to the Research Question - - - - - - -27

4.1.1 Research Question 1- - - - - - - - -33

4.1.2 Research Question 2 - - - - - - - - -34

4.1.3 Research Question 3 - - - - - - - - -34

4.2 Test of Hypothesis - - - - - - - - - -34

4.2.1 Hypothesis 1 - - - - - - - - - -34

4.2.2 Hypothesis 2 - - - - - - - - - -37

4.2.3 Hypothesis 3 - - - - - - - - - -39

4.3 Summary of Findings - - - - - - - - -45

CHAPTER FIVE
DICUSSION, CONCLUSION AND RECOMMENDATION

5.1 Discussion of Findings - - - - - - - - -46

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5.2 Implication of the Study - - - - - - - - -46

5.3 Conclusion - - - - - - - - - - -47

5.4 Recommendation - - - - - - - - - -48

5.5 Suggestion for further Study - - - - - - - -48

References - - - - - - - - - - - -50

Appendices - - - - - - - - - - -51

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 ABSTRACT

This study assesses the impact of sales promotion on customer’s patronage: a

study of g-word enterprise, Benue with the view of reviewing if there is a
significant relationship between coupon, product sampling, and trade show and
customer patronage. The study adopted survey design method of research ad
employed a sample size of 152 respondent’s selected using convenience sampling
techniques. Data collected for this study were analyzed using both descriptive and
inferential statistic and stated hypothesis were tested using simple regression
(bivariate) analysis in SPSS version 21. The findings of the study revealed that
there a significant relationship between coupon, product sampling, premiums and
trade show and customer patronage. The study concludes that sales promotion is
one promotion tool which most firms use to induce customer patronage, customer
repeat purchase intention, customer brand loyalty, increase in sales volume,
contribution to the growth of the firm and attain their desired position in the
industry they operate. The study recommends among others that the firm should
endeavor to use the proper medium that appeals to customer of the firm to create
wide awareness for the product.

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CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY

In the world of business today, for a business to boost sales, a substantial number
of customers must choose one’s product over and above that of its competitors on a
substantial number of occasion. One of the surest ways of ensuring that this
happens is to come up with strategies that will induce customers to patronize a
particular brand (product or service) over its competitors. Promotion is a form of
communication intended to persuade its viewers, readers or listeners to take some
actions, it usually includes the name of a product or service and how that product
or service could benefit consumers by persuading potential consumers to purchase
or to consume a particular product/goods (Adeyemi, 2019)

In recent time communication gets hard and harder as more and more company’s
glamour to get the consumers increasingly divided attention. To reach target
markets and build brand equity; holistic marketers are creatively employing
multiple sales promotional strategies to maintain and increase their customer
loyalty and patronage (Adrian, 2019)

Sales would increase if more customers are attracted to shop, if non-brand users
are attracted and if brand user’s are encourage to buy more (Aderemi, 2019).
According to Ademola (2018) customers are more likely to choose their preferred
products and/or service over its competitors on a consistent basis. Indeed, customer
patronage has been proclaimed by some as the ultimate goal of marketing (Richard
and Ben, 2019). Hence, this concern led to the study of sales promotion as it relates
to customer patronage. Sales promotion is inevitable for any type of organization
that wants to stimulate sales.

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Aashish (2021) opined that sales promotion is a part of the promotional mix where
the business uses many short-term customer-oriented strategies to stimulate the
demand for its product by making it look more attractive and/or worthy.

In Nigeria, the manufacturing sector is highly competitive and manufacturing and

distributing of consumer products operators attempt to appeal and win customers
through sales promotion strategies. With fierce competitive manufacturing industry
operators must work hard in order to reduce cost, win new customer and retain
existing ones and increase profit to ensure sustainable development of their
business (Jobber, 2019)

1.2 STATEMENT OF PROBLEM

Sales promotion has been seen as a major strategy to enhance consumer patronage.
A sales promotion activity does not suggest it use mainly as a basis to induce
purchase patronage.
The sales of manufactured and distributing of consumer products in Nigeria,
especially G-world enterprises, Benue has prompted to use one form of sales
promotion or the other with a view to either attract new customers or retain
existing ones.

However, as good as this seems, the problem observable is that customer’s

patronage hang the belt of sales promotion rather than benefit/value derivable from
the use of the product or services

In addition, frequency of sales promotion leave much to be desired as the

consumer most times doubts the efficiency and credibility of some sales
promotion. This could make sales promotion counterproductive. It has been
observed that marketers employ various means to enhance the attractiveness of
distributing of consumer products.

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Therefore, how can manufacturing firms in Nigeria particular G-World
Enterprises, Benue State improve its customer patronage without the appropriate
sales promotion been put in place?

The above has created a vacuum which sparked off the interest of the researcher to
investigate on the impact of sales promotion on customer patronage.

1.3 PURPOSE OF THE STUDY

The study is aimed at assessing the relationship between sales promotions on

customer patronage. The following specific objectives were sought.

i. To identify weather there is significant relationship between coupon and

customer patronage
ii. To ascertain whether there is significant relationship between product
sampling and customer patronage.
iii. To find out whether there is significant relationship between premiums
and customer patronage
iv. To determine whether there is significant relationship between trade
show and customer patronage
1.4 RESEARCH QUESTIONS AND HYPOTHESIS

The following research questions were relevant to the study:

i. Is there any significant relationship between coupon and customer

patronage?
ii. Is there any significant relationship between product sampling and
customer patronage?
iii. Is there any significant relationship between premiums and customer
patronage?

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 iv. Is there any significant relationship between trade show and customer
patronage?

The following null hypothesis were formulated to guide this research study:

H01: There is no significant relationship between coupon and customer

patronage.

H02: There is no significant relationship between product sampling and

customer patronage.

H03: There is no significant relationship between premium and customer

patronage.

H04: There is no significant relationship between trade show and customer

patronage.

1.5 SIGNIFICANT OF THE STUDY

This study will be of immense benefit to the following.

To manufacturers and distributor of consumer products, this research work will
give them insight into how they can achieve overall goals of the organizations in
term of sales promotion plan to induce customer patronage, loyalty and positive
brand image from a product (goods or service).
This research work will help to educate the consumers positively and correct any
misunderstanding of sales promotion perception by the consumers. This study will
help to discover the important of sales promotion and make policies that will help
to enhance the growth of manufacturing and distributing of consumer products in
Nigeria as well encourages the industry owners to always adopt and evaluate their
sales promotion activities in order to achieve their promotional goal.

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This research work can stand as reference for future research in the field of
marketing and it will help the researchers to widen their knowledge about how to
evaluate sales promotion in the manufacturing and distributing of consumer
products

1.6 SCOPE OF THE STUDY

This study focuses on the impact of sales promotion on customer patronage: a

survey of G-World Enterprises, Benue and Benue State. Though there are many
manufacturing firms for this researcher work. This research was limited to G-
World Enterprises, Benue.

The choice of G-World Enterprises, Benue is for the ease of access and availability
of data. G-World Enterprises, Benue was chosen as a result of customer traffic in
patronage and product usage. The research believing that the find will equate those
of other manufacturing firms and cities in the North Central State.

1.7 OPERATIONAL DEFINITION OF TERMS

The following terms were defined by the researcher according to the context of
their usage in the research study.

Sale Promotion: It consist of any consumer or trade programs that add tangible
value to brand of that consumer or trade program in order to stimulate sale and
create more awareness of such program.

Consumer: It is a person that buys goods from the producers, wholesales and or
retailers for final consumption.

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Patronage: This is the attention/purchase of a consumer (potential) given to a
particular brand/service based on the abstract or physical benefit he/she intend to
derive or have derived from the product

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 CHAPTER TWO

2.0 Preamble

This chapter was designed with the focus on the review of relevant literature
(Conceptual Review, Theoretical Review, Empirical Review and Summary of
Review Related Literature) related to the topic under investigation. The goal is to
gather perspectives of earlier researcher and to establish conceptual and theoretical
perspective for the current study.

2.1 CONCEPTUAL FRAMEWORK

In line with conceptual framework, the conceptual model guiding this study is
depicted in figure 2.8 (Khalid, 2021)

Figure 2.3: Conceptual Model: relationship marketing and customer satisfaction

and profitability

Sales promotion:
 Coupon
Customer Patronage
 Product sampling
 Premium
 Trade show
Independent variables Dependent variables

Source: Adapted by the Researcher for the purpose of this study

CONCEPT OF SALES PROMOTION

It is necessary to first understand the concept of promotion. Promotion is defined

as all activities undertaken to communicate and promote products or services to the

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target market. These activities include advertising, public relations, personal
selling, sale promotion, exhibitions, brochures and demonstrations etc (Mbaga
2021). Jobber (2019) simple captures sales promotion as a package or incentive to
consumers or the trade that are designed to stimulate purchase.

According to Kotler and Armstrong (2008) promotion is important to communicate

customer value by creating awareness of the product existence and characteristics.
Promotion informs customers on the products availability in the market. According
to Agbonifoh, Nnolim and Nkamnebe (2007), Sales promotion is direct
inducement which offer an extra value or incentive for product to the sales force,
distributors, or the ultimate consumers. With this we realize that sales promotion
should be directed to the sales force, middlemen and ultimate consumer. Sale
promotion includes tools for consumer promotion (for example samples, coupons,
prize, cash refund, price pack, warranties, demonstrations, contest); trade
promotion ( for example buying allowances, free goods, merchandise allowances,
co-operative advertising, advertising and display allowances, dealer sales contests);
and sale-force promotion (for example bonuses, contests, sale rallies). Sales
promotion also refers to any extra incentive manufacturers, retailers, and even not-
for-profit organizations use that could serve to change a brand’s perceived price or
value temporarily (Shimp 2020)

TYPE OF SALE PROMOTION

Sales promotion is directed at either customer, distribution channel members (such

as wholesalers, retailers). Sales promotion targeted at the consumer are called
consumer Sales Promotion. Awa (2018) outline the many types of sales promotion
activities which include coupon, product sampling, contests, sweep states games,
premiums price packs and he called them scheme that reach consumers directly

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and he said that schemes that reach consumer through retailer are trading status
point of purchase pop, display in short demonstration, product packaging.

COUPON: This is a sales promotion device done by printing a booklet with

various coupons promoting specific brand and sending these coupon in booklet
form to select address of households, or printing the coupon on product package.
Awa (2007) reveals that the method of distributing coupon is door-to-door, insert
in packaging or part of magazine or another product.

Product Sampling: This is a situation whereby customer are given a small

packaged sample of a newly manufactured product of tiled. This is one of the
oldest and the most effective device in building demand when the product or
service is new improved or entering into a new market, Awa (2017) implies that it
is as a seeing is believing strategy. It involves the prospect to either get the product
free or allowed to use it free of charge for specified period of time. Ezekwe (2019)
assumes that contests is a situation whereby consumers or dealers may be asked to
write a sentence about a product, complete a user work puzzle or suggest a new use
of a product.

Premiums: Here a manufacturer may decide to give a pack of a product to a

customer who buys three pack of the promoted item. Another alternative is that, an
entirely different product may serve as the free gift item for the item promoted.
Ezekwe (2019) outline that there three basic types of premium and they are as
follows;

i. Coupon plan as an inducement to get purchase to keep on using a product.

ii. Direct premium plans are given with a single purchase.
iii. Container premium plan package offers.

IMPORTANT OF SALES PROMOTION

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Firms adopt sales promotion tool as weapon of warfare for securing and enhancing
marketing share, given the degree of market competitive (Okoh and Ohuonu,
2014). One of sales promotion tools benefit is that it can encourage the consumers
to think and evaluate brand and purchase opportunities. Hence, different types of
promotion tools and promotion strategies are utilized by the marketers so that they
can known consumers first choice and boost their sales. One of the purpose of a
consumer promotion is to elicit a direct impact on the purchase behavior of the
firms customers (Kotler, 2012; Baltberg and Scott, 2017). Research evidence
suggest that sales promotions positively affect short-term sales (Priya, 2010). The
important of sales promotions are outline by the following authors: Ebue (2019)
highlights the following importance for customers; the importance include
increasing buying response by encouraging: (a) shop and buy. This is to build trial
among users and to create in the consumer the desire to purchase (b) Increase
Usage: With sales promotion, short-term incentives, people buy continuously and
in large quantity. (c) Store traffic: sales promotion activities create for sudden rush
in stores, many buyers will be seen rushing to buy the particular product in
question just to get the gift or incentives being used

Sales promotion tools

The term sales promotion refers to several types of selling incentives and method
concave to yield immediate sales effects (Totten and Block, 2016). There are many
sales promotional tools. The job to selecting sales promotional tools reflects on the
decision made, knowledge about the strength and weakness of the various tools.

Buy-One-Get-One-Free: “Buy one get one free” is one of the promotion method
of sales promotion in which an extra product is offered to the customers at national
price but with greater improve in package. The customers could easily influence to

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purchase the product because there is no condition of any additional price and it
should be more valued by the customer to perceived (Sinha and Smith 2017)

Coupons: Coupon are defined as vouchers or certificates which help consumers to

a price reduction on a specific product (Fill, 2019). The value of discount or price
cut is set and the coupon must be presented when customer purchases product.
According to Cook(2018) coupons are easily understood by the customer and can
be extremely useful for trial purchase. Coupon is a confirmed method by which
producers can communicate with customers and it can be used as strong brand-
switching tools. Bano (2018) highlights the promotional tools below:

Product sampling and demonstrations: This is a situation where the customer

either gets the product free or is allowed to use it free of charge for a period of
time. Sampling is used for reaching new user particular when a product is
introduce at the entry of the new market.

Price Off (Price Reduction): Consumer price off saves the customer money when
he or she purchase the product. This provide a quick defensive response to offset a
competitor’s promotion (Ebue 2014) the customer is given a leaflet (coupon) or
voucher which enables him to buy a product at a cheaper price. Coupons are used
for product trial convert, tries to regular users and to attract many prospects to the
product (Burnet, 2016).

Trade show and exhibition: The motivational aspect of trade show cannot be
underestimated. The exhibiter is given an opportunity to know more about the
competition and to learn the exhibitor’s strategy (Barton, 2018). Furthermore,
Onuoha and Egbuta (2012) emphasized that the sales promotional tools can be
classified into three consumer, trade and sales force promotion.

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Consumer promotion: it is promotional activity directed towards the consumer in
form of premiums offer in pack on pack, contest, money refund offer, coupon,
price offs, sample and trading stamps.

Trade promotion: Sales promotional action is focused on the traders or resellers

in form of cooperative advertising increased allowances and discounts.

Sales force promotion: The sales personals are the target of this class of sales
promotion. It came in a way sale rallies, increase commission, content and
competition and bonuses.

OBJECTIVE OF SALES PROMOTION

Objective of sales promotion, Odunlami and Ogunsiji (2020) succinctly capture

objectives of sales promotion as:

i. To increase sales of product, especially at the time when normal sales are
sluggishly to periodically (e.g. annually or semia-annually).
ii. Clear goals in a warehouse before new inventory taking and restocking
iii. To introduce new product to afford the opportunity of being accepted
into the market.
iv. To encourage the purchase of large size unit
v. To generate trials among non-users
vi. To persuade retailer to carry new items and higher level of inventory
vii. To encourage of session buying and building brand loyalty

Promotion is one of the seven aspects f the promotional mix. ( The other six parts
of the promotion mix are Advertising, Personal Selling, Direct Marketing,
Publicity/Public Relations, Cooperation Image and Exhibitions) media and non
media marketing communication are employed for a pre-determined limited time

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to increase consumer demand, stimulate market demand or improve product
availability. Examples include contests, coupons freebies loss leaders point of
purchase displays, premium, price, product sample and rebate.

MEDDLEMEN’S SALES PROMOTION

These sales promotions are targeted at the marketing intermediaries to encourage

them to be more aggressive and cooperative in pushing the product to the final
consumers (kinCaid, 2019)

i. Point-of-purchase (POP) Materials: These are promotional display and

demonstration at points posters, windows, display, outside signs,
merchandise racks etc all found in many retails stores today (Kurtz,
2017)
ii. Buying Allowance: Used more for new product. This is a temporary
price reduction to middlemen who bought a specific quantity of goods
during a stated time. This idea is that the middlemen (here the retailer)
will not voluntarily push the product through the channel to consumers
because of the higher margin receivable from reduced price example
could be a situation when Nigeria Breweries Plc offer sell N2500 off
each carton price of Amstel Malta to dealers who buy at least two
truckloads (Perrault and McCarthy, 2018).
iii. Promotional Allowance: These are payment or offers to middlemen for
the special promotional effort they performed in the cost of their trade
over a given period of time. Okafor (2012) say they could be inform like:
a. Free merchandise: In which extra goods are offered to middlemen who buy
a certain quantity.

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 b. Merchandise allowance: Which grant the middlemen a reward for simply
stocking manufacturer’s goods
c. Display allowance: Which goes a little further than merchandise allowance?
Display allowance recognizes and reward special effort meant to attract
display product in the middlemen outlets.
d. Spiffs or Premium: Money in which middlemen are offered which may be
cash or gifts for vigorously selling product of a manufacturer over a stated
period
iv. Special advertising: These are promotional gifts to middlemen bearing
the manufacturing name and/or logo as a general or specific recognition
of their effort.
i. Sales contests: These are deliberately designed to reward which
could be in forms of expensive gifts, merchandise goods or cash.
ii. Dealer Listing: This is an advertising arrangement in which a
manufacturer in promoting his product also promote the relevant
retailer by informing the customers where they could be bought.
iii. Cooperative advertising: This is an understanding where the
middlemen are repaid up to a point on their advertising cost, on the
manufacturers products.
iv. Customer’s forum: This is a time to time arrangement whereby a
manufacturer summon his various major middlemen for a cordial
edit-chat and cross fertilization of ideas.

LIMITATIONS OF SALES PROMOTION

Markin (2016) postulated the following limitation of sales promotion.

i. Sales promotion is only supplementary device tools

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 ii. Sale promotion activities have temporarily and short life. They can only
last within three to four month, then the demand will fall down.
iii. Too much sales promotion affect brand image.
iv. There is a feeling in the mind of the consumers that sales promotion
activities are used to sell inadequate and second grade products.
v. It is expensive and lead to vise in the price of product.
vi. Discount or rebates are allowed by boosting the price of the goods with
view to sell with gain which is not real.

CHARACTERISTICS PROBLEMS OF SALES PROMOTION IN NIGERIA

Sales promotion in Nigeria today are usually bedeviled by the following problems
(Burett, 2013)

Short term: The duration and in fact patronage of sales promotion are ephemeral.
It is seemed by the business as a stop-gap. Consumers play along with products
simply to win or earn sales promotional incentives. In order words, consumers are
lured to product only for the duration of the promotion. This is an unfortunate
development to any organization involved.

Paradox of promotion: Sales promotion is meant to upgrade sales at least in the

short run. It is ironic that the more are make to increase sales through sales
promotion, the more the concern product lose popularity and therefore sales in the
market place.

Credibility problem: There is hardly any sales promotional effort in Nigeria today
that consumers will not cry wolf about. It is believed that the incentives are either
not given out at all, or are given to favored, pre-determined person.

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Sole Economic Appeal: How consumers can benefit from reduced price are more
customer’s savings. This may be understood given the notions of economic traits
but this promotion may do better than simple and solely stressing economic
appeals.

REASON FOR THE INCREASE OF SALES PROMOTIONS IN NIGERIA

Kotler (2014) pointed out that sales promotion activities have grown rapidly in
recent years, at least in the last one and half decades as a result of a number of
factors especially in the consumer markets. This could be attributed in the internal
and external environment factors.

a. Internal factors
i. To management, internal factors have long become favorably
disposed to it as an effective means to stimulate sales.
ii. More product managers are now qualified to use sales tools by virtue
of their training initiative actions and handle some competently.
iii. Marketing managers, product managers and sales managers as the
case may be are constantly under intense pressure to deliver value to
top management.
b. External Factors
i. Multiplicity of brand necessitates, sustains promotional activities in
order to hold forth the organization market share.
ii. Competitors more than ever has become promotion minded and
conscious. In virtually all markets competitors produce similar
product sometimes superior with greater value and at some other time
of lower lesser value.

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 iii. Inflation and recession has made consumer more deal oriented/
conscious
iv. Political instability amongst others is capable of stagnating an
economy where by consumers and even be the business class will not
be sure the next development in the policy.
v. Trade pressure for more manufacturer deals has grown tremendously.
vi. There is also believed that advertising efficiency has decline because
of costs, media cluster and government control.
vii. Sales promotion remains a vital tool, the process of sales forecast. A
number of organizations make certain assumptions about certain
environment variable (consumer changing habits, government
interventions and international development etc).

RAPID GROWTH OF SALES PROMOTION

In comparison to growth of advertising, sales promotion has grown more rapidly in
many consumer packaged goods of companies, in no account 6.5% to 7% of the
total budget is set aside for the sales promotion by most organizations in Nigeria
(Ajah; 2013)
MAJOR DECISION IN SALES PROMOTIONS
Kotler (2014) outlined various areas that management of firms need to make
proper decisions when adopting sales promotion campaign they include the
following:
i. Setting the overall objectives
ii. Setting the sales promotion tools
iii. Developing the sales promotion program
iv. Implementing and controlling the program
v. Evaluating the result of the program.

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CONCEPTUAL CUSTOMER PATRONAGE

According to the concise Oxford English Dictionary (2008), the word customer or
consumer patronage mean a person or thing that eats or uses something or a person
who buys goods and services for personal consumption or use. People patronize
organization product/services at one time or the other. In the context of this study,
we may use customer patronage and loyalty inter-changeably because customer
patronage precedes loyalty. There is a strong relationship between patronage and
loyalty. Patronage is burn out of desire to be committed to an organization either
based on it service quality or perceived service qualities. Hence, the extent to
which a customer will patronize the service of a bank depends on how the
customer perceives the bank physical environment (service cape) and how the
customers also thinks and feels that the condition of the service environment is
consistent with his/her personality.

CONSUMER PATRONAGE BEHAVIOUR

The customer is as old as business. The sole purpose of every business is to

“Create Customer|”. According to Drucker, (1973) as cited in Ogwo and Igwe
(2012) opined that the only economic and social justification of any business
existence to create customer satisfaction. The importance of the customer and
customer patronage is so germane. It includes financial and non-financial
dimensions. Various studies have been carried out on what influence or impacts on
level of customer patronage. They include firm’s capacity, product or services
attributes, economic situation, political forces, social and psychological factors,
situational, competition, marketing mix programs (Schiffman and Kanuf 2009 as
cited in Ogwo and Igwe, 212; Kotler and Keller 2016) intention to use is defined as
a specific desired to continue relationship with a service provider (Czepiel and

26
Culmore, 1987 as cited in Ogwo and Igwe, 2012). Attitudinal measures have an
advantage over behavioural measures (actual or repeat patronage) in that they can
provide understanding of the factors associated with the development and
modification of patronage (Oiva, Oliver and MacMiliaqn, 2012).

2.2 THEORETICAL FRAMEWORK

Marketing communication/promotion is the main element business organization

can use to connect with their customers by communicating ideas and product
information with the intention of imparting particular perceptions of the products
to customers and other stakeholders. Promotion has been traditionally approached
and managed from the fictional perspectives of informing, persuading, reminding
and reinforcing. Duncan (1999) observed that many marketing roles especially in
the services sector consist of positions in which communication represents the
central element of marketing activities. According to Schultx et al.., (2000),
Market Communication is at the very core of all company activities under the
slogan “you cannot not communicate.” According to these Authors, Organizations
should integrate a wide range of activities and functions to influence the flow of
information between an organization and its stakeholders because the marketing
environment has become technologically dynamic. Organizations that are new in
the market or have new products have a stronger need to communicate. This
research was based on the following marketing communication theories:-

PROSPECT THEORY

This theory proposes that people perceive outcomes of a choice as perceived

‘losses’ and ‘gains’ relative to a subjective reference point (Kahneman and
Tversky, 1984). Researchers who have applied this theory to promotions are
(Diamond and Sanyal, 1990; Diamond and Campbell, 1990) and have stated that

27
consumer’s perception of promotion as a ‘loss’ or ‘gain’ is a function of the type of
the promotion. They proposed that non price promotions such as premium offers
which segregate the promotional gains. On the other hand, price promotions such
as price off, which integrate the promotional gain with the purchase price will be
viewed as reduced losses.

DIFFUSIN OF INNOVATIONS THEORY

Rogers (1995) developed the diffusion of innovation theory to explain how

marketing communication tools as well as interpersonal contacts provide
information and influence opinion and judgment of the target audience. According
to Rogers (1995) the model consists of four stages which are invention, diffusion
or communication through the social system time and consequences. It explains
how different categories of customers adopt new product at different period of time
with innovators (2.5%) being the first, early adopters (13.5), early majority (34%),
late majority (34%) and laggards at 16% in this order respectively. The theory
further states that the rate of adoption always depends on the product’s complexity
relative advantage, compatibility and observability. This theory implies that
business organizations should strive to deliver marketing messages through a
variety of marketing communication tools in order to increase the rate adoption of
a new product.

THE THEORY OF PLANNED BEHAVIOUR AND THEORY OF

REASONED ACTION

The theory of planned behavior (TPB) is one of the most widely cited and applied
behavior theories. It is one of a closely inter-related family of theories which adopt
a cognitive approach to explaining behavior which centre’s on individual attitudes
and reliefs. The TPB (Ajzen 1985, 1991, Ajzen and Madden 1986) evolved from

28
the theory of reasoned action fishbein and Ajzen (1975) which posited intention to
act as the best predictor of behavior. The theory of planned behavior suggested that
behavior is dependent on one’s intention to perform the behavior. Intention is
determined by an individual’s attitude (beliefs and value about the outcome of the
behavior) and subjective norms (beliefs about what other people think the person
should do or general social pressure) (Godin & Kok, 2017; Bandura, 2014 Pery,
Barnowski & parcel, 2011). Behavior is also determined by an individual’s
perceived behavioral control, defined as an individual’s perceptions of their ability
or feelings of self-efficacy to perform behavior. This relationship is typically
dependent on the type of relationship and the mature of the situation. In the test
food industry consumer’s perception of the image of a restaurant will determine
their behavior towards the restaurant. This could be positive or negative.

2.3 EMPIRICAL STUDIES

This section cover other researcher study on the area of this research work or
interrelated work as it will give important to this review of related literature, the
researcher summarized the following under the empirical review.

According to Anthony (2015) a research in the discipline of marketing who studies

the influences of sales promotion as an effective tool for consumers buying
decisions, the researcher observed the following in the course of carrying out this
study; he observed that sale drop occur as a result of ineffective use of sales
promotion program, he also discovered that sales promotion provide last minute
inducement this might attract marginal customers, it can influence consumer
buying and also create product awareness. The research sample size is 165 while
sampling method is stratified and chi-square statistical tool were used to test
hypothesis. Primary and secondary means were used to source data. According to

29
Chukwunma (2013) a researcher in the field of marketing who studies the title
“Assessing the impact of sales promotion as a tool for effective marketing of soft
drink” (a study of Nigeria Breweries, Enugu). The researcher discovered that the
company is lagging behind in marketing soft drink products due to improper
management of sales promotion program. The sample size of this research work is
154 and covariance sampling method was used to sample the respondents. The
researcher source data through secondary and primary means, the researcher
finding include the following; that sales promotion influence the level of customer
demand, improving of organizational work force has direct contribution with
performance and finally sales promotion is relevant in the marketing of soft drinkl
products. According to Solace (2015) a researcher in the discipline of marketing,
who carried out a study on “measuring the effectiveness of sales promotion in
improving marketing share” (A study of Nigeria Breweries Plc). The basic of this
study is to determine the effectiveness of sales promotion over the other
promotional tools in improving market share of firm. The sampling size is 274
respondents while a simple random sampling technique was employed by the
researcher and data were sourced through primary and secondary means.

The research outcomes are as follow: by increasing sales promotion expenditure

firm tend to increase their market share, by increasing the value of incentive used
in promotion firm, customer end to increase their purchase and finally sales
promotion increase the level of sales volume of a firm. After a careful observation
of other researcher empirical work, the researcher observed that sales promotion is
a good marketing strategy to adopt in order to increase market share, level of sales
and to increase of quality purchased.

30
2.4 APPRAISAL OF REVIEWED LITERATURE

The manufacturing industry such as G-word Enterprise Benue State is undergoing

a drastic changing as a result, how to increase customer patronage, sales volume
and also improve their market share. However, how can the company ensure high
level of customer patronage, position their brands in the minds of their customer?
Despite of the known constraints in sales promotion activities of production
industry, sales promotion strategy such as coupon, product sampling, premiums
and trade show will continue to play a major and growing role in customer
patronage. Empirical review, prospect theory, diffusion of innovations theory and
the hierarchy of effects theory were adopted to explain the literature review.

31
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 PREAMBLES

In this section, Preambles, research design, scope of the study, selection of data,
secondary sources, collection of primary data, design and administration of
questionnaire, population of the study, sample size determination, sampling
techniques, method of data collection, reliability of instrument, validity of
instrument, method of data analysis will be discussed among other.

3.1 RESEARCHER DESIGN

As noted by Anyanwu (2004), research design is a framework or a plan for a study

that guides the collection and analysis of data to be used in a research study. The
research design adopted in this study is the survey method. The reason is that it
allows the researcher to gain insight into the problems by accurately describing the
event as it happens. It also focuses on investigating the belief, attitude, opinion of
other group of people by administering questionnaire to them and having face-to-
face questions and responses.

SELECTION OF DATA

Data for this study were gathered from primary and secondary sources.

Primary sources

The primary data were sourced through the use of questionnaire, interview and
observation, the researcher constructed a research questionnaire that captures the
core objectives of the study and which help in addressing the research problem. To

32
support the research questionnaire, the researcher interviewed some respondent as
well.

Secondary sources

On the other hand, the secondary data were sourced from existing related works
done by previous scholars and researchers. This consists of empirical and
theoretical studies of previous research. The major sources were journals,
newspaper, books, magazine, bulletins, business websites, and the internet.

COLLECTION OF PRIMARY DATA

The questionnaire was dominantly in this study. Questionnaire is actually a written

list of questions that were designed by the researcher to be answered by the
respondent which serves as source of information for a study (Bryman & Bell,
2017). In the process, structured (closed-ended) questions developed by the
researcher were administered on each on each of the selected classes of
respondents. Respondents were customers of G-Word Enterprise residing within
Benue metropolis. The respondents are expected to tick where necessary according
to their personal opinion.

DESIGN AND ADMINISTRATION OF QUESTIONNAIRE

In the first part of the questionnaire, a letter of introduction stating the aim of the
researcher and outline the purpose of the questionnaire proper by completing and
returning it to the researcher.

The second part of the questionnaire is the question paper has section A and B.
section “B” centers on the questions. However, the questions were designed with
sample and unambiguous sentences to elicit proper understanding the respondents

33
were given two weeks to complete the questionnaire after which the researcher
called for retrieval appendix at the end of the study.

The respondent were asked to rate their response on a 5-points scale (1=:”strongly
agree” to 5=”strongly disagree”). Which is a modified form of 5-point likert scale.
Researchers have made a case for higher-valued scale and claimed that 5-point
item scale was the optimum size scale compared with five-point likert-type scale
(Bryman & Bell,2007)

3.2 POPULATION OF THE STUDY

The study population is made up of all the customers of G-Word Enterprises

Benue, Benue State. Since attention is on customers, the study population is finite
but largely unknown as the firms could not state their exact customer base. The
Cochra (1963) formula for unknown population was applied to determine the
sample size.

3.3 SAMPLE AND SAMPLING TECHNIQUES

In the course of the research, the sampling technique that was adopt is the random
sampling techniques. In this type of technique, the random sampling will be used
by dividing the population into sampling points or strata.

The use of random sampling techniques is to give all the customer of G-Word
Enterprise, Benue equal opportunity of being selected. This is designed to avoid
prejudice and to remove bias.

SAMPLE SIZE DETERMINATION

Since the population of the study of the study is intact, the sample size was
determined using the Cochran (1963) Formula for unknown population.

34
 ¿¿

0.4994
=199.72=200
0.0025

3.4 INSTRUMENT FOR DATA COLLECTION

For the purpose of this research two main sources of data collection were solicited:
The primary data and secondary data collected method. I read through textbooks
both on retailing and marketing, newspaper and magazines. Also some
unpublished materials were used.

Furthermore, in primary data method, made used of questionnaire and personal

interview. My questions where design to prospective business owners and
government officials. Business owners were served with section “A” questionnaire
for government officials

5.5 VALIDITY OF INSTRUMENTS

The instrument was tested for content and face validity by the project supervisor
and other marketing and research experts. It was adjust to be suitable for meeting
the research objectives. Again, the fad or bading on the table 3.1 are strong
evidence that the instrument is valid. Since the value are above 0.50 (50%).

3.6 RELIABILITY OF INSTRUMENT

The method used to test for reliability was the Conbach Alpha. This was the 200
copies of the questionnaire administered within two days interval to G-World
Enterprises, Benue for a pilot study.

3.7 PROCEDURE FOR DATA COLLECTION

35
In the process of this study, the research made use of secondary source of data
collection. These include:

i. Text Books
ii. Lecture Notes
iii. Dictionary and Encyclopedia
iv. Magazine, King
v. Internet

Secondary data: this method is wed for the purpose of these research works
because it base on existing information, which is useful for the purpose of
specified surveys.

This method is very cheap because information is being collecting for existing
records

These existing records on the influence of advertising by Nigeria women incluse

above examples, journals, lecture note, dictionary and encyclopedia

3.8 METHOD OF DATA ANALYSIS

Collected data were analyzed in this study using both descriptive and inferential
statistics. Tables, simple percentage, charts, mean and standard deviation were
utilized at various stages of data presentation. Stated hypothesis were tested using
simple regression (Bivariate) analysis in SPSS version 21.

Regression analysis as pointed out by Ezejeluo, Ogwo and Nkammebe (2008).

Kottani (2012) and Hair, Bush and Ortinan (2014), the bivariate, simple regression
analysis is a statistical technique that uses information about the relationship
between an independent variable or predicator and a dependent variable to make
predictions. In this study, sales promotion application, represented by the four

36
variables in each hypothesis ( coupon, product sampling, premiums, trade show)
stands as the independent variables (X) while represented by (customer patronage)
stand as the dependent variable (Y).

The linear relationship is of the form

Y = a+ bx = ei

Where:

Y = Dependent variable (customer patronage)

a = The intercept when x = 0

b = The slope (change in Y for any 1 unit change in X)

ei = The error for the prediction

Where

∑ Y =b ∑ X
a=
n

∑ Y =b ∑ X
a=
n

n ∑ Y XY =∑ X ∑ Y
a=
n ∑ X 2−¿ ¿

Thus the model specification is given by:

Y = F (X1, X2, X3, X4)

Where:

Y = Dependent variable (customer patronage)

37
X1 = First independent variable (coupon)

X2 = Second independent variable ( product sampling)

X3 = Third independent variable (premiums)

X4 = Fourth independent variable (trade show)

However, our analysis was performed in the SPSS using 5-point Likert scale for
satisfaction and 5-point Rating Scale promotion application

Decision Rule

Using the value of R2, the P-Value and F statistic, the null hypothesis would be
rejected at 0.05 level of significance if the P-Value (Significance) is above alpha
(0.05) and vice versa. Again, the value of Y can be weak, strong or very strong.

All analysis was done in SPSS

38
 CHAPTER FOUR

RESULT

.1 ANSWER TO RESEARCH QUESTIONS

In this chapter of the study, collected data were analyzed, presented and interpreted
for easy and fast adaptation by users using tables and simple percentages. On the
other hand, the simple Regression was applied for the test of hypotheses in SPSS
version 21. It should however, be noted that only those data that are applicable in
addressing the objectives of the study, helpful in answering the raised research
questions, and significant in testing the stated hypotheses were analyzed in this
chapter: Moreover, this chapter was arranged in five different sections as follows:

Section One – Nature of distribution and retrieval of the research instrument.

Section Two – Analysis f demographic variable of respondents

Section Three – Analysis of key research variables

Section Four – Test of hypotheses

Section Five – Discussions of findings

The research instrument used in this study were copies of structured questionnaire
administered on randomly selected customer of G-World Enterprise, Benue State
under study. Table 4.1 below how the 200 copies of the questionnaire were
distributed retrieved.

Table 4.1 shows that out of the 200 copies of the questionnaire distributed to
customers of the firm, 176 (88%) copies were retrieved while 24 (12%) copies
were lost. Also, of the 176 copies retrieved, 24 (14%) copies were incompletely
filled and therefore were discarded. However, 152 (86%) copies were completely
39
filled and found useful for analyses. Thus, further analyses in this study were based
on the 152 copies retrieved and found useful.

In this section, all the demographic questions in the questionnaire were analyzed.
This section covers responses to questions 1, 2 3, 4 and 5.

Table 4.2 shows that 82 (54%) respondents and 70 (46%) respondents were males
and females respectively. Also, it was further that 30 (20%) respondents, 35(23%)
respondents, 50 (33%) respondents and 37 (24%) respondents were in the age
brackets of 18-25, 26-35, 36-45 and 46 respectively. Again, item three in the table
revealed that 20 (13%) respondents, 49 (32%) respondents, 48 (32%) respondents.
30 (20%) respondents and 4(3%) respondents, 48(32%) respondents, 30 (20%)
respondents, 62 (41%) respondents and 12 (8%) respondents were married, single
and others respectively. Moreover, it was revealed that 60 (39%) respondents, 51
(34%) respondents and 41 ( 27%) respondents had consumed the products of the
company for a period of 0 to 5 years, 6 to 10 years and 11 years and above,
respectively.

As seen in table 4.4 above, 75 (49%) respondents, 58 (38%) respondents, 6 (4%)

respondents, 10 (7%) respondent and 3(3%) respondents attested that sales
promotion activities influence their level of patronage of PZ Cussons Plc, Benue
State Brands to a very great extent, a great extent, has no influence, to a low extent
and a very low extent, respectively.

Table 4.3 show that out of the 152 respondents, all the respondents, representing
100% voted that premium and coupons as one of the promotional activities
adopted by NBC. Also, 132 (87%) respondent 117 (77%) respondents, 112 (80%)
respondents and 150 (99%) respondents voted in favor of price-off, trade show,

40
cash discount and product samples as some of the promo tools used by G-Word
Enterprise Benue.

Table 4.5 shows that out of the 152 respondents, 128 (84%) respondents, 16 (11%)
respondents, 5 (3%) respondents, 2(1%) respondents and 1 (1%) respondent
strongly agreed, agreed, had not decided, disagreed and strongly disagreed
respectively that there is a significant relationship between coupon and customer
patronage.

From the table (4.6), a total number of 134 (89%) respondents, 9 (6%) respondents,
5 (3%) respondents, 2 (1%) respondent strongly agreed, agreed, had not decided,
disagreed and strongly disagreed respectively that whether there is a significant
relationship between product sampling and customer patronage.

Table 4.7 shows that a total of 145 (89%) respondents, 5 (3%) respondents, 2 (1%)
respondent , 0 (0%) respondents strongly agreed, agreed, had not decided,
disagreed and strongly disagreed respectively that sale promotion activities
encourage customers to recommend the brand to others.

From the table (4.8), a total of 131 (86%) respondents, 14 (9%) respondents, 4
(3%) respondents, 2(1%) respondents and 1 (1%) respondent strongly agreed,
agreed, had not decided, disagreed and strongly disagreed respectively that there is
a significant relationship between premiums and customer patronage.

As seen in table 4.9 above, 75 (49%) respondents, 58 (38%) respondents, 10 (7%)

respondents, 6 (4%) respondents and 3(2%) respondents strongly agreed, agreed,
had not decided, disagreed and strongly disagreed respectively that there is a
significant relationship between trade show and customer patronage.

Nature of distribution and retrieval of research instrument

41
Table 4.1: Distribution and Retrieval Of instrument

Nature of Number Number of Number of Number of Percentage of

copies Of Copies copies lost copies discarded retrieved and
distributed Retrieved found copies used copied
useful
200 176(88%) 24(12%) 152 24 86.00
Source: Field survey, 2023

3.1 Analysis of Demographic Variables of Respondents

Table 4.2: Demographics of the Respondents

Option Frequency Percentage

Gender:
Male 82 54.00
Female 70 46.00
Age Bracket:
18- 25 30 20.00
26- 35 35 23.00
36 – 45 50 33.00
46 years above 37 24.00
Educational Qualification
FSLC 20 13.00
O’Level/ND 49 32.00
HND/BSC 49 32.00
Masters and above 30 20.00
Others 04 0.3.00
Marital Status

42
 Married 78 51.00
Single 62 41.00
Others 12 08.00
Length of consumption of
the products:
0 – 5 years 60 39.00
6 – 10 years 51 34.00
11 years and above 41 27.00
Source: Field Survey, 2023

3.2 Analysis of major (Research) Variable

In this section, responses to the main question were analyzed.

Table 4.3” Responses to promo tools adopted by PZ Cussons Plc, Benue State

Option Frequency Percentage

Premium 152 100.00
Price-Off 132 87.00
Coupon 132 100.00
Trade show 117 77.00
Cash discount 122 80.00
Product samples 150 99.00
Source: Field Survey, 2023

Table 4.4: Responses to the extent sales promotion activities influence your
level of patronage of G-WORLD ENTERPRIS, BENUE STATE BRANDS

Option Frequency Percentage

To a very great extent 75 49.34
To a great extent 58 38.16
43
 No effect 6 3.95
To a low extent 10 6.58
To a very low extent 3 1.97
Total 152 100
Source: Field Survey, 2023

Table 4.5: Responses to whether there is any significant relationship between

coupon and customer patronage

Option Frequency Percentage

Strongly agreed 128 84.00
Agreed 16 11.00
Undecided 5 3.00
Disagreed 2 1.00
Strongly disagreed 1 1.00
Total 152 100
Source: Field Survey, 2023

Table 4.6: Responses to whether there is any significant relationship between

product sampling and customer patronage

Option Frequency Percentage

Strongly agreed 134 89.00
Agreed 9 6.00
Undecided 5 3.00
Disagreed 2 1.00
Strongly Disagreed 2 1.00
Total 152 100.00
Source: Field Survey, 2023

44
Table 4.7: Responses to whether sale promotion activities encourage
customers to recommend the brand to others

Option Frequency Percentage

Strongly agreed 142 96.00
Agreed 5 3.00
Undecided 2 2.00
Disagreed 0 0.00
Strongly disagreed 0 0.00
Total 152 100.00
Source: Field Survey, 2023

Table 4.8: Response to whether there is any significant relationship between

premium and customer patronage

Option Frequency Percentage

Strongly agreed 75 49.00
Agreed 58 38.00
Undecided 10 7.00
Disagreed 5 3.00
Strongly disagreed 4 3.00
Total 152 100.00
Source: Field Survey. 2023

.1.1 RESEARCH QUESTION 1

a. What are the problems associated with G-World enterprise, Benue
b. What are the causes of business failure at G-World Enterprise, Benue

45
 c. Does government effectively implement it polices on G-World Enterprise by
its appropriate agencies?
d. Is Otukpo Local Government contributing to the development of G-World
Enterprises, Business?
e. Does the State and Federal Government Aid to Business effectively co-
ordinated?
f. How do you think that G-World Business should be run?
g. Do you experience any problem of economic constraints?
.1.2 RESEARCH QUESTION 2
a. Which of the following attributed to economic constraints?
b. Do you experience any shortage in finance?
.1.3 RESEARCH QUESTION 3
a. Which of the following factor attribute to financial shortage?
b. What means can be employed to check the cause of financial shortage?
c. Link the following ways to causes of the problem of financial shortage?
d. Which of the following do you think are the survival strategies of retail
business firms?
.2 TESTING OF HYPOTHESES

In this section of the chapter, all the four hypotheses stated in chapter one were
tested using the simple regression analysis in SPSS version 21.

.2.1 HYPOTHESIS ONE

H0: There is no significant relationship between coupon and customer patronage.

H1: There is a significant relationship between coupon and customer patronage.

This hypothesis was tested using information as contained in tables 4.5 and the
SPSS output is as follows:
46
Model Summaryb

Mode R R Square Adjusted R Std. Error of

1 Square the Estimate
1 .936a 876 .875 .22574
a. Predictors: (Constant), customer patronage
b. Dependent Variable: Sales Promotion

ANOVA

Model Sum Of Df Mean F Sig.

Squares Square
1
Regression 53.830 1 53.830 1056.29 0.000b
Residual 7.644 150 6
Total 61.474 151 .051
a. Dependent Variable: Sales Promotion
b. Predictors: ( Constant), consumer patronage

Coefficient

Model Unstandardized Standardized T Sig.

coefficients coefficient
B Std. Error Beta
1 (Constant) .623 .129 4.840 .000
Customer .866 .027 .936 32.501 .000
Patronage
a. Dependent Variable: Sales Promotion
Residuals Statistics

47
 Minimum Maximum Mean Std. Deviation N
Predicted value 1.4885 4.9511 4.7632 .59707 152
Residual -95109 .78020 .00000 .22500 152
Std. Predicted -5485 .315 .000 1.000 152
Value
Std. Residual -4213 3.456 .000 .997 152
Dependent Variable: Sales Promotion

CHARTS

Histogram
Dependent Variable: Sales Promotion

150- Mean. 2.03E-15

Std. Dev. 0.997
N. 152

100-

50-

0 0 2
-6 -4 -2 4
Regression Standardized Residual

Interpretation

The R value in the model summary table shows a simple correlation of 0.936
which shows a very strong of positive correction. The R2 value shows how much
of the total variation in the dependent variable (sales promotion – coupon) that can
be explained by the independent variable (customer patronage). The table shows
48
that 87.5% variation in the sales promotion can be explained by the customer
patronage. This is equally high with a sig (p-value) of (0.000) which is less than
Alpha (0.05) and at value of 32.501, the overall regression model, therefore, is a
good fit. That is, predicts the outcome of the variables.

Decision

Since the p-value (0.000) is less than Alpha (0.05), that is 0.000<0.005, and t
calculated (32.501) is greater than t tabulated (1.960), we therefore reject the null
hypothesis and accept the alternative hypothesis which implies that there is a
significant relationship between coupon and customer patronage.

.2.2 HYPOTHESIS

Ho: There is no significant relationship between product sampling and customer

patronage.

H1: There is a significant relationship between product sampling and customer

patronage.

Hypothesis two was tested using information as contained in tables 4.5 and 4.7.

The SPSS output is as follows:

Model summary

Model 1 R R Square Adjusted R Std. Error Of

Square The Estimate
1 .826a .682 .680 .36080
a. Predictors: (Constant), product sampling
b. Dependent Variable: Sales Promotion

ANOVA

Model Sum of Df Mean F Sig.

Squares Square
1 322.242 .000b
Regression 41.948 1 41.948
Residual 19.526 150 .130

49
 Total 61.474 151

a. Dependent Variable: Sales Promotion

b. Predictors: (Constant), product sampling

Coefficient

Model Unstandardize Standardized T Sig.

d Coefficients coefficients
B Std. Beta
Error
1 (Constant) -4.300 .506 -8.502 .000
Product 1.834 .102 .826 17.951 .000
Sampling
a. Dependent Variable: Sales Promotion

Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 1.2032 4.8718 4.763 .52707 152
Residual -1.87177 .79683 2 .35960 152
Std. Predicted -6.754 .206 .0000 1.000 152
Value 0
Std. Residual -5.188 2.209 .000 .997 152

.000
a. Dependent Variable: Sales Promotion

Histogram
Dependent Variable: Sales Promotion

Mea
Std.
N=
50
 Regression standardized Residual

CHARTS

Interpretation

The R value in the model summary table shows a simple correlation of 0.826
which shows a strong of positive correlation. The R2 value shows how much of the
total variation in the dependent variable (sales promotion – product sampling) that
can be explained by the independent variable (customer patronage). The table
shows that 68% variation in the sales promotion can be explained by the product
sampling. This is equally high, with a sig (p-value) of (0.000) which is less than
Alpha (0.05) and a t value of 17.951, the overall regression model, therefore, is a
good fit. That is, it statistically predicts the outcome of the variables.

Decision

Since the p-value (0.000) is less than Alpha (0.05), that is 0.000<0.05, and t
calculated (17.951) is greater than t tabulated (1.960), we therefore reject the null
hypothesis and accept the alternative hypothesis which implies that there is a
significant relationship between product and customer patronage.

.2.3 HYPOTHESIS III

H0: There is no significant relationship between premiums and customer

patronage.

H1: there is a significant relationship between premiums and customer patronage.

Hypothesis three was tested using information as contained in tables 4.5 and 4.8.
The SPSS output is shown below:

Model Summaryb

51
 Mode 1 R R Square Adjusted R
Square
1 .968a .937 .936 .16113
a. Predictors: (Constant), customer patronage
b. Dependent Variable: Sales Promotion

ANOVA

Model Sum of Df Mean F Sig.

Squares Square
1 1 57.579 2217.83 .000b
Regression 57.579 2
Residual 3.894 150 .026
Total 61.474 151
a. Dependent Variable: Sales Promotion
b. Predictors: (Constant), Customer Patronage

Coefficients

Model Unstandardized Standardized T Sig.

coefficients coefficients
B Std. Error Beta
1 (Constant) -040 .103 -384 .701
Customer 1.003 .021 .968 47.094 .000
Patronage

a. Dependent Variable: Sales Promotion

Residuals Statisticsa

Minimum Maximum Mean Std. N

Deviation
Predicted Value .9632 4.9743 4.7632 .61751 152
Residual -97426 .03676 .00000 .16059 152
Std. Predicted -6.154 .342 .000 1.000 152
Value
Std. Residual -6.047 .228 .000 .997 152
a. Dependent Variable: Sales Promotion

52
CHARTS

Histogram
Dependent Variable: Sales Promotion
Mean = -2.9E-15
Std. Dev. = 0.997
N = 152

Regression Standardized Residual

Interpretation

The R value in the model summary table shows a simple correlatioin of 0.968
which shows a strong of positive correlation. The R2 value shows how much of the
total variation in the dependent variable (sales promotion – premiums) that can be
explained by the independent variable (customer patronage). The table shows that
93.6% variation in the sales promotion can be explained by the customer brand
loyalty. This is equally high. With is equally high. With a sig (p-value) of (0.000)
which is less than Alpha (0.05) and t value of 47.094, the overall regression model,
therefore, is a good fit. That is, it statistically predicts the outcome of the variables.

Decision

Since the p-value (0.000) is less than Alpha (0.05), that is 0.000<0.05, and t
calculated (47.094) is greater than t tabulated (1.960), we therefore reject the null
hypothesis and accept the alternative hypothesis which implies that there is a
significant relationship between premiums and customer patronage

.2.4 HYPOTHESIS IV

H0: There is no significant relationship between trade show and customer

patronage

53
H1: There is a significant relationship between trade show and customer patronage.

This hypothesis was tested using information as contained in tables 4.5 and 4.9.

The SPSS output is as follows:

Model Summaryb

Mode 1 R R Square Adjusted R Std. Error Of

Square The Estimate
1 .834a .695 693 .35363
a. Predictors: (Constant), Customer Patronage
b. Dependent Variable: Sale Promotion

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square
1
Regression 42.716 1 42.716 341.580 .000b
Residual 18.758 150 .125
Total 61.474 151
a. Dependent Variable: Sales Promotion
b. Predictors: (Constant), Customer Patronage

Coefficients

Model Unstandardized Standardized T Sig.

coefficients coefficients
B Std. Error Beta
1
(Constant) 2.297 .136 16.830 .000
Trade show .576 .031 .834 18.482 .000

a. Dependent Variable: Sales Promotion

Residuals Statisticsa

Minimum Maximum Mean Std. N

Deviation
Predicted Value 2.8728 5.1761 4.7632 .53187 152
54
 Residual -1.87285 .55135 .00000 .35246 152
Std. predicted -3.554 .776 .000 1.000 152
Value
Std. Residual -5.296 1.559 .000 .997 152
a. Dependent Variable: Sales Promotion

Charts

Histogram
Dependent Variable: Sales Promotion

Mean = -9.71E-17
Std. Dev. = 0.997
N = 152

Regression Standardized Residual

Interpretation

The R value in the model summary table shows a simple correlation of 0.834
which shows a strong of positive correlation. The R2 value shows how much of the
total variation in the dependent variable (sales promotion – trade show). The table
shows that 69.5% variation in the sales promotion can be explained by the trade
show. This equally high. With a sig (p-value) which is less than Alpha (0.05) and a
t value of 18.482, the overall regression model, therefore, is a good fit. That is, it
statistically predicts the outcome of the variables

Decision

Since the p-value (0.000) is less than Alpha (0.05), that is 0.000<0.05, and t
calculated (18.482) is greater than t tabulated (1.960), we therefore reject the null

55
hypothesis and accept the alternative hypothesis which implies that there is a
significant relationship between trade show and customer patronage.

SUMMARY OF FINDINGS

This study sought to study impact of sales promotion on consumer patronage using
customers G-World Enterprise Benue State makes use of such promotion tools as
premium, coupons, price-off, minimum credit line, cash discount and product
samples. Also, these promo tools have a very great influence on customer
patronage. This is in support of the findings of Olaekan, Ibidolapo, Folasade
(2017) which found out that promotional activities influence consumer patronage.

Also, the study revealed that sale promotion had significant relationship with all
the variables on customer patronage as used in the study. That is, there is a
significant relationship between coupon, product sampling, premiums and trade
show and customers ability to patronize a firm.

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 CHAPTER FIVE

DISCUSSION, CONCLUSION AD RECOMMENDATION

4.0 Preamble

From the study carried out, the following findings were made:

5.1 DISCUSSION OF THE FINDINGS

1. There is a significant relationship between coupon and customer patronage.

2. There is a significant relationship between product sampling and customer
patronage.
3. There is a significant relationship between premiums and customer
patronage
4. There is a significant relationship between trade show and customer
patronage
5. More so, it was discovered that the cost of sales promotion does not make a
firm inefficient.
6. Sales promotion significantly affects consumer’s patronage of insurance
business; the sales promotion objectives of the industry or firms should
determine its promotional strategy. The research suggest further that in order
to achieve the objectives of developing favorable association as well as to
impress customers, a suitable strategy should be designed to promote the
image of the particular industry or firm.
7. Finally, it was revealed that the cost of sales promotion motivates consumers
to buy in large quantities.

5.2 IMPLICATIONS OF THE STUDY

Our study, being of an exploratory and interpretive nature, raises a number of

opportunities for future research, both in terms of theory development and
concept validation. More research will in fact be necessary to refine and further
elaborate or novel findings.

Firstly, our study offer the opportunity to refine and validate the concepts and
constructs that emerged from our inductive analysis. For example, the idea of a
personal knowledge ability infrastructure will need further refinement and

57
 elaboration in terms of both its component elements and its internal dynamics.
One could also ask whether and to what extent it is possible to identify different
ideal types of retail business, so that a typology of managerial forms of
knowledge ability can be constructed. The study could also be extended in
longitudinal and comparative ways. For example, here we have hypothesized
that the problem of retails business will adapt their styles and practices of
knowledge mobilization in relation to career development and experience.
Further research could elaborate on this point, providing precious information
to selection panels and training bodies. Further research could also take a
historical perspective and ask if the last work of top retail business executives
has significantly changed in the last several decades, including a significant
shift in skills an attitude (and if it should have occurred). Again, this would
provide valuable information to those tasked with selecting or developing top
managers in the future.

5.3 CONCLUSION

Base on the contents and finding of this work the following conclusion can be
drawn that the problem associated with establishing of retail business are
economic constraint, competition, social cultural environment, technological
environment, political/legal environment, basic infrastructure and demographic.
Furthermore, that the rate of failure in retail business firm is as due to poor
management, financial shortage and inadequate self-financing. That
government strongly supports and aid development of retail business firms in
the local government and that government also gives special attention by giving
financial and to these firms. It has also seen that the major problems faced by
retail business firms are encounters with stiff completion. Hence, their products
or services cannot compete effectively with these competitors. It is also
envisaged that the best survival strategies to employ by retail business
organization is to ensure it has a good management and able to liaise with
outside environment. Most firms wish to dominate the market in which they
operate. This they want to achieve by exploring all possible avenues in shell,
sales promotion is one promotion tool which most firms use to induce customer
patronage, customer repeat purchase intention, customer brand loyalty ,
increase in sale volume, contribution to the growth of the firm and attain their
desired position in the industry they operate. However, it should be noted the
58
 though sales promotion is an invaluable tool in achieving increase in customr
patronage and brand loyalty in the short run, this increase does not linger after
the sales promotion campaign.

5.4 RECOMMENDATION

Deducing from the forgoing, that is the finding and conclusions read from the
data analysis and hypothesis tested, the researcher makes the following
conclusion.

1. In executing a sales promotion campaign, the firm should endeavor to use

the proper medium that appeals to customers of the firms to create wide
awareness for the product.
2. In planning for sales promotion campaign, firms should use prizes that are of
good monetary values to consumers. This recommendation is base on the
fact that the more the monetary value of the prize to be won, the more
consumers are induced to adopt and patronage a brand.
3. Firms that use sales promotion to increase sales volume should try as much
as possible to stage the campaign at least thrice every year.
4. Firms should explore more in the tools of sales promotion for it is effective
in motivating consumer to buy more. Equally, firm should embark on some
energy promotional tools like public relations. Also promotion like
providing welfare services and sponsoring some event for the public should
also be considered.

5.5 SUGGESTION FOR FURTHER STUDIES

The researcher suggests that further studies be conducted on this topic using other
towns and companies.

59
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Chidi K. E. (1994). Lecture Notes. Retailing and Merchandizing, (Ugbokolo,

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State Polytechnic Ugbokolo 1996)

Iduh Peter; Lecture Notes on small scale business management studies (Benue

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Kotler, P. (1980). Marketing Management: Planning, Analysis and control. 6th

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