CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Consumer behavior is a relatively new field; the first books were published in the 1960s, although its philosophical grandparents are much older. Understanding how consumers behave during the consumption process has a lot of advantages. These advantages include supporting managers in making decisions and providing marketing research with a theoretical foundation from which to analyze consumers and make better purchasing decisions.
Consumer research can aid in better understanding psychological, sociological, and economic elements that influence human behavior. A basic understanding of consumer behavior is also beneficial to one’s personal life. It can assist people in becoming better consumers by informing them about how they and others go about their purchasing decisions. It can also assist customers in the purchasing process by providing information.
Consumer behavior research looks into why people make specific purchasing decisions, what products and services they buy, where they buy them, how they use them, how often they buy them, and how the consumer decision process works. Consumer behavior has been characterized in this context as the activities of persons who are involved in the actual or potential usage of market things, whether they are products, services, the retail environment, or ideas (Berkman & Gilson, 1978).
Word of mouth is an important method of disseminating knowledge. Negative and positive word of mouth can have a significant impact on customer behavior. It can go a long way in promoting items or services if used effectively, and the perception produced by this strategy can last for a long time. Influencers and Trendsetters who initiate consumer trends (e.g., fashion trends, automotive purchase trends, consumer product trends, entertainment trends, and beverage consumption trends) that are followed by mainstream consumers are connected with effective word of mouth marketing campaigns. Consumers appreciate word-of-mouth advertising twice as much as advertising. What is the first thing we normally do to learn more about a business, such as a restaurant, in a society where we are assaulted with advertising all day (and all night)? We try to track down someone we know who has been there or knows someone who has been there. That is correct. Word of mouth carries more weight than advertisers can possibly conceive, let alone make up.
It is critical for business leaders to understand consumer behavior in order to achieve commercial success. Because the success of companies’ marketing strategies is dependent on managers’ understandings of consumer behavior (understanding of consumer behavior is especially crucial during a recession – see Kotler and Caslione), the link between consumer behavior and marketing strategy is highlighted (2009). Consumer purchases reveal how successfully a company’s marketing approach aligns with market demand. As a result, marketing starts and ends with the customer.
Customer behavior research is centered on consumer purchasing behavior, with the customer having three separate roles: user, payer, and buyer. Consumer behavior is difficult to predict, even for specialists in the industry, according to research (Armstrong & Scott, 1991). The psychological processes that customers go through are referred to as consumer behavior.
The selection, purchasing, and consumption of goods and services by consumers is referred to as consumer buying behavior. Consumer behavior is complicated by a number of factors. Many aspects, specificities, and traits influence the individual’s identity and the consumer’s decision-making process, shopping habits, purchasing behavior, the brands he buys, and the merchants he visits. Every one of these factors has an impact on a purchase choice. The consumer begins by attempting to identify which commodities he would like to consume, and then selects only those commodities that offer greater utility.
Following the selection of goods, the consumer calculates the amount of money he has available to spend. Finally, the customer considers current commodity pricing.
Image, consultancy, and after-sale service are examples of intangible elements that bestow a desirable perceived advantage on the buyer (Foret & Procházka, 2007).
The majority of developed countries have met their goals by depending on domestic manufacturing and government campaigns encouraging the use of locally produced items. The degree of ethnocentrism influences the level of commitment to local product consumption (Sciffman & Kanuk 2007). As a result, the focus of this research is on the factors that influence consumer purchasing behavior in Nigeria.
STATEMENT OF PROBLEM
The study challenge can be characterized as determining the best and most appropriate marketing approach for organizations producing household items in order to boost local consumption of their locally produced goods.
Nigeria is a developing country in Africa where enormous volumes of products from other nations are imported each year, including alcoholic beverages. As a result, many Nigerians have developed a liking for both indigenous and foreign products. Because of the wide range of goods and services available from other nations, many people prefer to buy imported goods. However, many local businesses are struggling to stay afloat in today’s volatile Nigerian economy.
As more businesses examine the benefits of expanding into Africa, the necessity to understand the market has grown.
When compared to corporations in industrialized nations, it is considered that African companies are less mature in their study and appraisal of their customer base. In this regard, maturity might be characterized as having reached a point where you comprehend the required consumer and consumer base. Companies are not mature primarily because of their internal makeup, but also because of the customers they service. Much of Africa’s marketplaces are likewise immature, with open markets accounting for the majority of purchases. In Nigeria, one of Africa’s major economies, it is estimated that free marketplaces account for almost 80% of all consumer purchases (CNBC Africa, 2014). Because of these issues, it is clear that a research is required.
OBJECTIVES OF THE STUDY
The overall goal of this research is to look into the elements that influence consumer purchasing behavior in Nigeria. The following are some of the specific goals:
1. To learn about Nigerian customers’ attitudes about purchasing household goods.
2. To see if social factors have an impact on consumer purchasing behavior for household goods in Nigeria.
3. To look at the socioeconomic aspects that influence consumer purchasing behavior in Nigerian households.
4. To determine the impact of psychological factors on consumer purchasing behavior in Nigerian households.
5. To see if cultural influences influence consumer purchasing behavior in Nigerian households.
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