PROJECT RESEARCH PROPOSAL - To Restore The …

1 1 PAUL NNAMDI ADUBA PG/MBA/07/46914 PG/M. Sc/09/51723 AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF customer BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES PUBLIC ADMINISTRATION A THESIS SUBMITTED TO THE DEPARTMENT OF MARKETING, FACULTY OF BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA ENUGU CAMPUS Webmaster Digitally Signed by Webmaster s Name DN : CN = Webmaster s name O= University of Nigeria, Nsukka OU = Innovation Centre APRIL, 2009 2 AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF customer BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES BY PAUL NNAMDI ADUBA PG/MBA/07/46914 DEPARTMENT OF MARKETING, FACULTY OF BUSINESS ADMINISTATION UNIVERSITY OF NIGERIA ENUGU CAMPUS SUPERVISOR: APRIL 2009 3 CERTIFICATION I Hereby certify that this dissertation report was approved by the department of marketing for Paul Nnamdi Aduba (pg/mba/07/46914) and was carried out successfully under my supervision in accordance with the regulations for the award of Masters of Business Administration Degree (MBA) in Marketing, at the University of Nigeria, Enugu Campus.

2 ----------------------------- PAUL NNAMDI ADUBA PG/MBA/07/46914 ------------------------------ ----------------------------------- Prof. J. O. Onah Dr. (Mrs.) G. E. Ugwuonah PROJECT supervisor Head of Department Date---------------------- Date--------------------------- 4 DEDICATION This work is dedicated to the Almighty God for the strength,, wisdom and understanding he has given to me through all those difficult times and also to my only twin brother PETER ADUBA for his immense support, assistance and encouragement 5 ACKNOWLEDGEMENT My profound gratitude goes to my supervisor Prof. Julius .O. Onah whose criticism, corrections, suggestions, guidance and advice contributed immensely in making this PROJECT a reality. I am also grateful to my head department, DR (MRS) for her advice and encouragement. I also express my gratitude to all my lecturers Mrs.

3 Modebe, Dr Chukwudi Nwaizugbo- former head of department, Prof. Onah, Dr (Mrs) Nnabuko, Achison , and the rest of them in the department of marketing, who had at one time or the other instilled in me a valuable knowledge in this field of study. This thesis could not have come to realty without the encouragement and assistance given to me by my cousin- chief. Okwudinka (Ojinnaka) Mrs Gloria Ikwueme, Mrs Ifeanyi Obiji, Nwanneka ,Uchenna Aduba, Uchenna Obanye, Stephen Ugwu and Chukwunweike Enweani (Igwe Okaka). Barrister Johnbosco Ekwedigwe, Chinedu Agu and Magnus Udeh. Finally, I thank my friend and colleagues in the field of study, who were not mentioned above and to several authors from whose books, I have abstracted information. I owe immense debt of gratitude PAUL ADUBA 6 ABSTRACT The main purpose of this study is to identify the motivational influences on customer buying behaviour of industrial products in the south- eastern states and to profer strategies that would enable producers of industrial products to gain a desirable fair market share.

4 The south- eastern states covered in this study are- Anambra, Enugu, Ebonyi Imo and partly Abia states. The methodological approach adopted is the survey method of RESEARCH . The RESEARCH studied relationship with the buyers of industrial products. Literature review was made from works done by eminent scholars, professionals and other marketing practitioners and secondary data was sourced too. Primary data for this study was gathered from questionnaires sample and oral interviews administered to industrial users which was tested. The data collected were tabulated and analyzed using spearman rank order correction coefficient (RHO)rs as test statistic: rs=1-6 ds/N (Ns-1). The findings of this RESEARCH shows that 7 a) Price plays a significant role in the buying decision of industrial product user / customer . b) Many industrial product users always make use of straight rebuy method.

5 C) Though a product many be substandard, people still opted for it. d) Industrial product customer makes their purchase occasionally. It is concluded that a) Price and trade name are significant variables in consideration by industrial customers as motivational factor. b) Companies with good product image and trade name/mark stand to gain more market share as they adopt straight rebuy method. c) The study strongly recommends that manufactures of industrial products should improve on their product quality with considerate price reductions, as this highly influenced their customers. 8 TABLE OF CONTENTS Page Title Page - - - - - - - - - i Certification - - - - - - - - ii Dedication - - - - - - - - - iii Acknowledgement - - - - - - - iv Abstract - - - - - - - - - v Table of Contents - - - - - - - vii List of Figures - - - - - - - - xi List of Tables - - - - - - - - xii CHAPTER ONE INTRODUCTION General Overview of the Problem - - - - 1 Statement of the Problem - - - - - 4 Objective of the Study - - - - - - 5 RESEARCH Question - - - - - - 6 RESEARCH Hypothesis - - - - - - 6 Significance of Study - - - - - - 7 Scope and limitation of Study - - - - 8 Definition of Terms - - - - - - 9 Organization of Study - - - - - - 11 References - - - - - - - - 13 9 CHAPTER TWO OVERVIEW OF RELATED LITERATURE Introduction - - - - - - - 14 Consumer Behaviour - - - - - - 15 Marketing Strategy - - - - - - 16 Consumer

6 Buying Decisions Process - - - 17 Types of Buying Behaviour - - - - - 19 Buying Influences - - - - - - 23 Trade Name and Buying Behaviour - - - 25 Theories of Motivation - - - - - - 25 Major Theories on Motivations - - - - 27 Maslows Hierarchy of Needs - - - - 30 Mcqune s Psychological Motives - - - 34 Motivational Influences in the customer Buying Behaviour - - - - - - - 36 The Role of Incentive in Behaviour Modification - - 39 Consumer Goods versus Industrial Goods - - 40 Factors Affecting the Purchase of Industrial Goods - 44 Types of purchases/Buying Situation - - - 45 References - - - - - - - - 48 10 CHAPTER THREE RESEARCH METHODOLOGY Introduction - - - - - -- - 49 RESEARCH Design - - - - - - 50 Sampling Procedure - - - - - - 51 Data Collection Method - - - - - 51 Data Analysis Techniques - - - - - 52 Validity and Reliability Test of Instrument - - 53 Summary - - - - - - - - 54 References - - - - - - - - 55 CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION Introduction - - - - - - - 56 Response Rate - - - - - - - 56 Testing of Hypothesis - - - - - - 66 References - - - - - - - - 71 11 CHAPTER FIVE DISCUSSION, RECOMMENDATION AND CONCLUSION Introduction - - - - - - - 72 Discussion of RESEARCH Findings - - - - 72 Conclusion - - - - - - - 73 Recommendation - - - - - - 74 Bibliography - - - - - - - - 76 Appendix - - - - 78 Appendix interview Guide - - - - 83 Appendix tool for testing hypothesis 84 Appendix tool for testing hypothesis two.

7 - 91 Appendix showing the location of study. - - 98 12 LIST OF FIGURE Figure Consumer Buying Decision Processes a comparison - - - - - - - 19 Figure Abraham Maslows Hierarchy of needs - 32 13 LIST OF TABLE Table Sample States and Questionnaire Distributed - 57 Table Demographic Data of Respondents - - 58 Table Period of service with the company - - 59 Table Company Relationship with Industrial products - 60 Table Purchase Period of Industrial Products - - 60 Table Categories of Products Purchased - - 61 Table Motivational influences and industrial buyer - 62 Table Price / customer buying relationship - - 63 Table Relationship between Price and Quality - - 63 Table customer and Purchasing Pattern - - 64 Table between Trade name and customer 65 Table Trade name versus buying Behaviour - - 65 14 AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF customer BUYING

8 BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES BEING dissertation REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTERS DEGREE IN BUSINESS ADMINISTRATION (MBA) DEGREE IN MARKETING TO DEPARTMENT OF MARKETING, FACULTY OF BUSINESS ADMINISTATION UNIVERSITY OF NIGERIA ENUGU CAMPUS BY PAUL NNAMDI ADUBA PG/MBA/07/46914 APRIL 2009 15 CHAPTER ONE INTRODUCTION Overview of the problem Motivation is a general term used to refer to the entire class of drives,desire,need , wishes and similar forces .It refers to the drive and effort to satisfy a want or goal .(Nobert::1999, .245). According to Nwachukwu (2006, ) Motivation is that energizing force that induce or compel and maintain behavior .He maintained that human behaviour is motivated and it is goal directed .Motivation in essence is concerned with the reason behind people doing things.

9 He went further by emphasizing that Motivation is an internal psychological process whose presence or absence is inferred from observed performance. People act because there is a felt need ,which should be satisfied .Every effort made is to satisfy such perceived need , This calls for the analysis of consumer behaviour as it affects the behavioral pattern of the customer in satisfying those perceived needs or wants. Customers are central to the practice of marketing, since without customers, a business cannot survive. The stress here is 16 understandably given that the existence of any business is dependent on the patronage from the customers or the consumer. It is necessary to mention here that there are two types of customer or consumer ultimate customer or consumer and industrial customer or consumer The ultimate customer buys goods and services for personal consumption while the industrial customer , according to Achison (2000:36) buys goods and services for some tangible productive and commercially significant purposes.

10 This RESEARCH work, intends to concentrate on the activities and behavioral pattern of the industrial product customer . Generally, the Motivation behind the purchases by these two customers or consumers is basically different. Ultimate customer buys product in order to derive benefit and satisfaction while the industrial customers buys goods and services (products) in order to make profit. An industrial customer buys a product for its value and expected benefit. The value of an industrial product to the customer is dependent upon its ability to affect efficiency , profitability and other benefits in use .It has been observed that industrial customers are usually concerned with the procurement of goods and services that are expected to provide significant levels of benefits,, 17 efficiency. Durability and profitability in his operation.