THE EFFECT OF CONSUMER PROTECTION ON BRAND LOYALTY IN FAST MOVING CONSUMABLE GOODS

THE EFFECT OF CONSUMER PROTECTION ON BRAND LOYALTY IN FAST MOVING CONSUMABLE GOODS

ABstract

This study explored the impact of consumer protection on brand loyalty for fast-moving consumer goods in Lagos.

A descriptive survey design was used to conduct this survey. The study considered the design of the research study to be appropriate given the number of variables to be measured at that time. This study used a structured questionnaire to obtain key information from the respondents.

Research activities were restricted to him over the age of 20. The sample which was used for the study comprised of selected users and customer of FMCG products in Lagos State. The simple random sampling technique method was used, with a combination of two or more sampling technique which was justified and used to select 400 respondents.

The findings revealed that there is no significant impact on consumer protection on brand loyalty of fast moving consumer good in Ikeja, Lagos State; there is no significant impact on the improvement on production as a means of referral from consumer in their various brands especially in Fast moving consumer’s goods in Nigeria; health labeling has a significant effect on Consumer Patronage; expiration date has a significant influence on consumer satisfaction.

In conclusion, in Nigeria there are a large number of uneducated and illiterate citizens whom have no idea about their right to be protected and patronize products from brands with high quality. As such the Nigerian populous should become more aware of their rights, they should be educated through open symposium and seminars so that the citizens can hold the government as well as their bodies to higher standards.

The study suggested that; The government should not just make policies and regulatory bodies like NAFDAC and SON to monitor the activities of the manufacturers of the Fast-Moving Consumer Goods in Nigeria so that it could increase Consumer protection and Brand loyalty; Consumer Protection is within the organization and Brand loyalty is measured from the consumers whom are outside the organization; Consumer Bodies should include medical practitioners, nutrition and dietarians, biochemist, micro-biologist, marketers, pharmacist and others from different fields that can be certified that they are inducted into their professional bodies and have up to 15 years of working experience; Health labeling should be largely printed in all products in Fast moving consumer goods so that consumer know and see exactly what they are taken into their system; Expiration date is very necessary and important to be vividly seen by consumers on products of fast moving consumer goods.

CHAPTER ONE

INTRODUCTION

1.1 Background To The Study

In 2002, World Health Organization stated that about 70 percent (%) of the drugs available in Nigeria were fake or substandard. Also, National Agency for Food and Drug Administration and Control (NAFDAC) states that 41 percent (%) of drugs alone were counterfeit. (Yankus 2006 & Akunyili 2007)

We can see that there is a problem which is reoccurring in Nigeria with respect to lack of protection to consumers. Consumers are not loyal to the brands which they continually purchase. Consumer sovereignty can be viewed as the moral foundation of marketing theory. (Kelly 2005) Consumer rights are neither respected nor protected, and there is a lack of brand loyalty in Nigeria even for consumer goods (FMCG). Consumers are fed up with the rudeness of manufacturers who produce counterfeit goods and alter the quality of their products, hence the term consumerism was born to protect the rights and interests of consumers. (Arndt, Barksdale & Perot, 1980)

Consumer protection has spawned consumer-centricity, consumer focus, and a consumer-centric strategy heavily integrated into marketing terms. (Kelly 2005). Consumerism is defined as a social movement that seeks to advance the rights and powers of consumers. (Kotler 1972, Perrault & McCarthy 2002)

In Nigeria, businesses are driven by the need to make a profit. In doing so, they do unethical and immoral things and endanger the lives of consumers. This has led them to complain and show a lack of patronage for the product, which Nigeria and most developing countries lack in moves to support and protect consumers. (Bello, Suleiman & Danjuma 2012) In Nigeria, the missing factor is consumerism, which has formulated government policies through laws and efficient ways of enforcing laws, rather than supporting consumer interests and sentiments. (Keynak 1985) Various democratic governments have successfully established institutions aimed at protecting consumers from counterfeit and substandard products. Some of these institutions are: National Agency for Drug and Administration and Control (NAFDAC), Nigerian Organization for Standardization (SON), Nigerian Industrial Standards (NIS), Nigeria Consumer Protection Council and Consumer Protection Council Act. These groups seek to protect consumers from harmful products from suppliers and manufacturers. (Bero, Suleiman, Danjuma 2012)

When consumers are protected from harmful influences that lead them to switch brands, they show more support, satisfaction and reference to such brands that respect their rights and interests. increase. This leads to repeat purchases of brands that meet and exceed their expectations.We are particularly interested in protecting fast-moving consumer goods that are used every day as commodities. Consumers are the heart of business because they produce goods and services that meet consumer needs. If consumers are not protected and patronize such deals, their production will slowly come to a halt.

Barksdale & Darden 1971 state that the consumer is at the center of all marketing efforts and all business activities. This makes it very important for corporate sustainability. It’s a paradoxical sense that companies are primarily focused on promoting their products to consumers and not health conditions that could be seen as the treatment of employees or slaves. (Vetrivel & Mohanasvndari 2011). Nigeria, as a country, has demonstrated a number of factors that demonstrate the need for strong consumer protection laws to protect their interests.This also allows them to be fully loyal to their brands.Consumption Due to the lack of personal protection, consumers continue to purchase products from unbranded street vendors and retail outlets, or with unknown brand names and little reputation (Bello, Suleiman & Danjuma 2012). Consumers face the challenge of being unable to reach out to manufacturers or distributors of products that are properly manufactured under well-known and respected brands. As a result, you end up with an inferior product that is not well protected. This has led many Nigerian consumers to show volatile loyalty to different brands, buying products that suit their needs at the cheapest prices depending on their income level.

Bello, Suleiman & Danjuma 2012 argue that consumers in the Nigerian market may be content with the status quo. Taking the Mercy 2008 statistic as an example, Nigeria’s complacency has been proven to stem from the fact that consumers are making the wrong choices, especially when it comes to purchasing electronics. Consumers usually buy from dealers with no reputation or large importers who do not offer guarantees or refunds along with after-sales service.Consumers in Nigeria consider them very important and the main You have to understand that it’s a source of income. Once you understand that, you become concerned with ensuring that your rights as a consumer are protected. This encourages consumers to stick with reputable brands more, feeling satisfied and recommending brands for use as home products. The challenge lies in the fact that there are no guidelines or laws to verify claims, and in some cases consumers pay for packaged products without the ability to price quality and quantity monitors. This led to the passage of the Consumer Protection Act. (Uche 1990)

Defective goods and services emerge in markets with little or no competition (Kanyip, 2005). However, when there is competition in the market for goods and services, consumers express a preference for better judgment and push unwanted suppliers of goods and services out of the market. According to Kanyip (2005), there is a shortage of warranties and repair services in case of damage in Nigeria today due to the deep recession and the extremely high prices of brand names and goodwill for these cheap products. Umenyin (2007) states that incomplete and under-informed markets and misleading information through misleading advertising are contributing to the rise of counterfeit and substandard goods. In Nigeria and other countries around the world, consumer protection is the idea of ​​securing the rights and interests of consumers and protecting them from bad practices by businesses, unscrupulous producers and service providers. (Bero, Suleiman and Danjuma 2012). Governments have attempted regulations to protect and strengthen the right of consumers to pay for goods and services provided. Consumer protection legislation consists of two parts that address the need to protect the interests, rights and safety of end-users of products and services. On the one hand, it seeks to monitor and regulate contractual transactions and private law relationships aimed at consumer protection. (Oko & Anyanwu, 2015)

It is very important that Nigerian consumers are protected from corporations, wholesalers, retailers, manufacturers and suppliers of products that are not only harmful to health but also malicious. It shows that you care about making sure the money you pay is being properly monitored.Consumers who are protected and well served show complete loyalty to such products. will embrace But when these consumers can no longer tolerate manufacturers of unprotected and unethical products, their loyalties become divided and volatile. Their loyalty leads to a lack of patronage and satisfaction with the brand. Such brands are ignorant of their rights and interests and therefore fail to receive good recommendations from loyal customers who have repeatedly purchased their products over the years.

1.2 Problem Description

Developed countries have laws to protect consumers from fraud, counterfeit and substandard products. However, in developing countries like Nigeria, existing laws appear to be insufficient to protect consumers from counterfeit and substandard products. This leads consumers to show their loyalty, customer satisfaction and lack of reference to various brands in Nigeria. Most consumers switch brands as soon as they perceive a product to be of poor quality. This also happens when quality is perceived as being questioned by a government agency set up to review a manufacturer’s practices. Okeke (1981) says:

Consumer protection is an afterthought in Nigeria and is not seen as a priority for businesses and manufacturers. Oko and Linus (2013) found that consumer interest in fast-moving consumer goods is particularly strong in Nigeria and other developing countries, and that this category of industry is developing various He backs this up by pointing out that he leverages his target market. This has led to a desire and need to protect consumer rights as brands that prioritize consumer health and wealth gain greater satisfaction, referrals and consumer support. You have total loyalty to these brands.

According to Onah (1979), Agbonifo, Ogwo, Nnolim and Nkamnebe (2007) and Ayozie (2013), consumer protection has not been active in Nigeria since the 1970s, from the perspective of various marketers. They all say that the business environment is not doing enough to ensure that Nigerian consumers are adequately protected, which is a major problem for users of their products.Many Nigerians If products that are easily consumed by consumers are not checked for compliance, they may be left unopened, exposed to various diseases, and consumer interests may not be protected. is a person. The inability to contact manufacturers directly means that consumers need more protection to stay loyal to the brands they trust.

Consumer perceptions influence consumer behavior to stay loyal to a brand or switch to a better brand that protects both rights and interests. This point, emphasized by Hawkins, Best, and Coney (2001) states: Consumer knowledge of best-in-class products with superior quality, highest standards and superior quantity certified as authentic by the National Food and Drug Administration and Administration, Nigerian Standards Organization, and Nigerian Industrial Standards . Protecting consumers should be a brand’s top priority, not just making a profit. This leads consumers to believe that these brands are actually protecting them from malicious practices and counterfeit goods.

Lack of consumer protection has therefore led to precarious loyalty to various brands in developing countries, particularly Nigeria, leading to consumers switching brands frequently to meet their needs. As such, the question this study seeks to address is to determine the extent to which available consumer protection laws and policies affect consumer loyalty to various brands of goods in Nigeria. To what extent are governments, societies, organizations and manufacturers trying to protect consumer rights, especially for fast-moving consumer goods in Nigeria? 1. Do more than manufacturers make a profit. It is important to know if you are thinking 2. For them to adopt social marketing concepts and consumer-oriented marketing to improve their credibility with consumers, satisfy them, get recommendations from them and keep their brands in a niche market in Nigeria. If you have a large number of regular customers in

1.3 Purpose of the survey

The specific objectives of this research are to:

Studying the impact of consumer protection on brand loyalty for fast-moving consumer goods in Nigeria
Find out about improving production processes as a means of recommending different brands, especially Nigerian fast-moving consumer goods, to consumers.
Exploring the impact of health labeling on consumer empowerment in fast-moving consumer goods.
To explore the impact of sell-by dates on consumer satisfaction for fast-moving consumer goods in Nigeria.
1.4 Research question

What is the impact of consumer protection on brand loyalty in fast-moving consumer goods in Nigeria? What improvements in Nigeria’s fast-moving consumer goods production processes do consumers recommend for brands?
Will Nigeria’s fast-moving consumer goods health labeling impact customer satisfaction?
How does knowing the shelf life of fast-moving consumer goods in Nigeria improve consumer satisfaction?
1.5 Research hypothesis

H0(1):
There is no significant consumer protection impact on brand loyalty in fast-moving consumer goods in Nigeria.

H0(2):
There is no significant impact on improving production processes as a means of promoting various brands, especially fast-moving consumer goods from Nigeria, to consumers. H0(3):
Health labeling does not have a significant impact on consumer promotion of fast-moving consumer goods in Nigeria.

H0(4):
No significant impact of sell-by dates on consumer satisfaction for fast-moving consumer goods in Nigeria.

1.6 Operationalization of variables

Therefore, the variables in this study are operational here

Y = f(X)

Y = brand loyalty

X = consumer protection

where Y = dependent variable

X = independent variable

Y = f(x1,x2,x3…xn)

X1 = manufacturing process

X2 = health label

X3 = expiration date

Y = (y1, y2, y3)

y=consumer protection

y = consumer satisfaction

y = consumer recommendation

y = f(x1) __________________ (1)

y = f(x2) __________________ (2)

y = f(x3) __________________ (3)

The study will target on equation (4) above.

Based on lapse, we have

y1 = a0 + β1X1 + μ…. (1)

y2 = a0 + β2X2 + μ…. (2)

y3 = a0 + β3X3 + μ…. (3)

Where, a is the constant of the equation, β is the coefficient of X the independent variable where μ is the error or stochastre term in the equation. 1.7 Scope of investigation

The study was primarily focused on investigating the impact of consumer protection on brand loyalty in fast-moving goods for Lagos consumers. The target population of Lagos State is about 8,048,430 based on the 2006 census, but the sample size is 400 and consists of students, housewives, teachers, doctors and retailers. A simple random sampling technique was used to select survey respondents. The survey will take place between Ikeja and Burger Axis in Lagos State, Nigeria, within two weeks. 1.8 Validity of research

The study aims to improve general knowledge on consumer protection and increase consumer loyalty to various brands of fast-moving consumer goods in Nigeria. Brand loyalty in fast-moving consumer goods is affected when consumer interests and rights are protected by regulators.

1.8.1 Management practices

Organizational managers need to realize the importance of ensuring quality products are produced, rather than just focusing on quantity to make a profit. They will begin to respect consumers, who play a key role in the company’s success. Managers must integrate safe practices using quality materials. Increase product volume and protect consumers. This will boost profitability and loyalty for fast-moving consumer goods brands in Nigeria.

1.8.2 Industry

Nigeria’s fast-changing consumer goods industry will enjoy profitability and brand loyalty if it begins to protect consumers by discouraging unethical and unscrupulous activities. The industry also needs to adopt marketing philosophies to ensure that consumer needs are met. The study will impact the industry by demonstrating the need to protect consumers. This increases brand loyalty and increases profitability. 1.8.3 Government

Governments play an important role in ensuring that citizens are protected from unscrupulous and immoral business practices. This investigation will help the government to investigate regulators more deeply. Regulators should continually review organizational practices for unethical behavior. The government will also examine the activities of the National Food and Drug Administration, the Nigerian Standards Organization, and the Nigerian Industrial Standards and amend the Consumer Protection Council Act to ensure that citizens are adequately and efficiently protected from various brands. need to do it. Located in fast moving consumer goods in Nigeria. The study will help the government address the problem of substandard, counterfeit and adulterated goods in the Nigerian consumer market. This also helps meet the needs of all Nigerians, regardless of their religious beliefs that need to be protected. In particular, the government needs to provide halal products in both fast-moving consumer goods and pharmaceuticals

1.9 Defining Operational Concepts

Consumerism:
An organized movement of citizens and government agencies to improve the rights and powers of buyers over sellers. It can also be described as an organized consumer effort aimed at promoting, protecting and enhancing consumer rights in exchange relationships with all organizations and individuals. Consumerism is an organized effort by concerned citizens, businesses, and governments to balance exchange and power between the parties against the rights and injustices imposed on consumers seeking a normal life. (Philip Kotler)

Consumer products:
Products or services purchased by end-users for personal consumption. (Marketing dictionary)

brand:
A name, term, mark, symbol or design, or any combination thereof, that identifies the products or services of the seller or group of sellers and distinguishes them from those of competitors. (Philip Kotler)

Consumer-oriented marketing:
A principle of sustainable marketing that states that companies should consider and design their marketing activities from the consumer’s perspective. (Philip Kotler)

consumer:
Consumers are people who buy products and services from manufacturers. (business dictionary)

Consumer Loyalty:
A positive attitude and behavior towards future consumer repeat purchase engagement. Consumer loyalty is a customer’s commitment to do business with a particular company, purchase its products and services, and refer them to their colleagues. (Marketing Dictionary)

Consumer Protection; This protects purchasers of goods and services from substandard or dangerous products and deceptive advertising. Consumer protection can also be defined as a means of protecting the interests and rights of consumers against unscrupulous and unethical misconduct by businesses and providing prompt remedies for complaints. (investpedia)

Brand Loyalty:
A pattern of consumer behavior in which consumers become attached to a brand and purchase from the same brand repeatedly over time. Loyal customers consistently buy products from their preferred brands, regardless of convenience or price. Brand loyalty can also be defined as the level of consumer loyalty towards a particular brand. This is represented by repeat purchases regardless of marketing pressure from competing brands. (business dictionary)