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

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

Abstract

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

More definitely, the study sought to assess consumer protection and brand loyalty at Ikeja.

The survey consisted of consumers from Ikeja Axis, Lagos State, the sampling frame of the survey consisted of fast-moving consumer goods consumers residing in Ikeja, Lagos State, Nigeria, and the survey was based on was limited to

Simple random sampling was used to select respondents, her 400 consumers of his Ikeja Axis in Lagos State were selected and well-designed questionnaires were created to elicit information from the respondents. it was done.

Collected data were analyzed using descriptive statistical techniques and linear regression analysis was applied to test hypotheses made at the 0.05 significance level.

The study found a strong relationship between consumer protection and brand loyalty, a strong relationship between improved production processes for fast-moving consumer goods and consumer recommendations, and a strong relationship between health labeling and consumer loyalty. was shown to have a strong relationship with Based on this, the study found that consumers should carefully check the expiry date of the product they are about to purchase, and secondly, consumers should avoid counterfeit products or products made of inferior quality. It advises consumers that they should complain about unsatisfactory products and, finally, that consumers should use them correctly. of the products they buy.

chapter One

Foreword

1.1 Research background

In 2002, the World Health Organization stated that approximately 70 percent (%) of medicines available in Nigeria were counterfeit or substandard. Additionally, the US Food and Drug Administration (NAFDAC) states that 41 percent (%) of pharmaceuticals alone are counterfeit. (Yankus 2006 and Akunyili 2007)

Developing countries are repeatedly troubled by the lack of consumer protection. This indicates that consumers are not loyal to the brands they purchase over and over.Also, given that consumers are sovereign, this can be seen as a moral basis for marketing theory. (Kelly 2005) Brand loyalty is lacking even in fast-moving consumer goods in Nigeria because consumer rights are not respected and protected. Consumers are fed up with the rudeness of manufacturers who produce counterfeit goods and alter the quality of their products, and came up with the term consumerism to protect their rights and interests. (Arnt, Barksdale and Perreault, 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 and McCarthy 2002).

In Nigeria, business is 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 their lack of patronage for their products.Nigeria and most developing countries lack moves to support and protect consumers. (Bello, Suleiman and Danjuma 2012) Consumerism is a missing ingredient in Nigeria, where government policies have been formulated through efficient methods of enforcing laws and regulations 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: The National Drug Administration and Control Agency (NAFDAC), the Nigerian Organization for Standardization (SON), the Nigeria Consumer Protection Council, and the Consumer Protection Council Act are intended to protect consumers from harmful conduct by suppliers and manufacturers. increase. (Bero, Suleiman, Danjuma 2012)

When consumers are protected from the harmful effects of switching brands, they are more likely to show support, satisfaction, and referrals to brands that respect their rights and interests. This leads to repeat purchases of brands that meet and exceed their expectations and protect their conservation interests, especially in fast-moving consumer goods that are used daily as household items. It is the heart of your business because it produces goods and services. If consumers are not protected and patronize such deals, their production will slowly come to a halt.

Barksdale and Darden (1971) state that consumers are at the center of all marketing and business activities and are critical to business sustainability. There is a paradoxical sense that the company’s main focus is to promote its products to consumers and not their welfare which can be seen as the treatment of servants or slaves (Vetrivel and Mohanasvndari 2011). Nigeria as a country has demonstrated a number of factors that point to the need for strong consumer protection laws that can protect their interests and ensure full loyalty to their brands. However, the lack of consumer protection has resulted in consumers constantly buying products from street vendors and retailers under unknown brand names with little or no brand name. (Bello, Suleiman and Danjuma 2012) Consumers face the challenge of being unable to contact manufacturers or distributors of products that are well-known and respected brands and are properly manufactured. As a result, you end up with an inferior product that is not well protected. This has led many Nigerian consumers to purchase the products that meet their needs at the cheapest prices based on their income level, showing precarious loyalty to various brands.

Bello, Suleiman and Danjuma 2012 argue that consumers in the Nigerian market can be complacent. Let’s take a look at the Mercy 2008 stats. This proves that complacency among Nigerians stems from the fact that they make the wrong choices, especially when it comes to buying electronics. Consumers typically buy from reputable dealers or not large importers who do not offer warranties or refunds.

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. Consumers who are protected and receive excellent service show complete loyalty to such products. But when these consumers can no longer tolerate manufacturers of unprotected and unethical products, their loyalties become divided and shaky. Their loyalty leads to a lack of patronage and satisfaction with the brand. Such brands are ignorant of their unappreciated rights and interests and therefore fail to get good recommendations from loyal customers who have repeatedly purchased their products over the years. They need to be protected and be able to ensure that the products they buy are of a superior standard and quality that meet their wants and needs. , will remain loyal to these brands.

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 inadequate to protect consumers from counterfeit and substandard products, and consumers rely on loyalty, customer satisfaction, and I am experiencing a lack of references to the various brands found in Nigeria. Consumers show volatile loyalty to various Nigerian brands. Most consumers change brands when they feel that the quality of their products has declined and that they are being challenged by government agencies charged with reviewing manufacturers’ practices. Okeke 1981 states:

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 will focus on these industries with the aim of achieving high profit margins from their profits. They back this up by pointing out that they are tapping into different target markets. This reflects the desire and desire to protect consumer rights, as brands that put consumer health and wealth first receive greater consumer satisfaction, endorsement, endorsement, and complete loyalty to these brands. linked to necessity. According to Onah 1979, Agbonifo, Ogwo, Nnolim, Nkamnebe 2007, and Ayozie 2013, consumer protection in Nigeria has been less aggressive since the 1970s, from the perspective of various marketers. They all say the business environment is not making reasonable attempts to ensure that consumers are adequately protected in Nigeria, which is a major concern for users of the product. If products easily consumed by humans are not checked to ensure they do not comply with standards, they are left unopened, exposed to various diseases, and consumer interests unprotected. It’s possible. Consumers are the reason companies exist. No way to go directly to the manufacturer

Lack of consumer protection therefore in developing countries especially Nigeria has led to unstable loyalty to the different brands which has made consumers to change brands frequently to satisfy their needs. From the forgoing therefore, the problem that this study seeks to address is to find out the extent to which the available consumer protection laws and activities would have effect on loyalty of consumers on different brands of goods in Nigeria. What is the extent to which government, the society, organization and manufacturers have striven to protect consumer rights especially in fast moving consumer goods in Nigeria? There is need to know if manufacturers had looked beyond making profit but adapting societal marketing concept as well as consumer-oriented marketing to improve their credibility to consumer to satisfy them, get referral from them, and have large number of patronage so their brands remain market niche in Nigeria.

1.3 Objectives of the Study

The main objective of this project is to study the effect of consumer protection, and the impact it has on brand loyalty in respect to fast moving consumer goods of Nigeria. Other goals of this research are:


Finding ways to improve the production process as a means of recommending different brands, especially fast-moving consumer goods from Nigeria, to consumers.
Exploring the impact of health labeling on consumer empowerment in fast-moving consumer goods.
To investigate 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 related to fast-moving consumer goods in Nigeria?
How have you improved the production process of fast-moving consumer goods in Nigeria to get brand endorsements from consumers? 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 for 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):
There is no significant impact of health labeling 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 Justification of hypothesis

The thought process behind various hypotheses is that there is a link between consumer protection and brand loyalty, especially for fast-moving consumer goods in Nigeria. Consumers should be protected by companies by emphasizing health labeling, expiry date labeling, and ensuring that production processes are adequate and properly clean, as soon as they are protected, to ensure products of a high standard. The best facilities and the patronage, satisfaction, and consumer endorsements indicate different brands are fast-moving consumer goods, especially in Nigeria.

1.7 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 = f(Y1, Y2, Y3…Yn)

Y1 = Consumer Protection

Y2 = consumer satisfaction

Y3 = Consumer Recommendation

Y = f(X1) __________________ (1)where a is a constant in the equation, β is the coefficient of the independent variable X, and μ is the error or probability term in the equation.

1.8 Research scope and boundaries

The study is primarily focused on examining the impact of consumer protection on brand his loyalty in fast-moving consumer goods in Nigeria. The target population of Lagos State is about 8,048,430 based on the 2006 census, but the sample size is 560 and consists of students, housewives, teachers, doctors and retailers. A simple random sampling technique was used to select survey respondents. The survey will be conducted between Ikeja and Berger Axis in Lagos State, Nigeria, within two weeks.

1.9 Validity of research

The purpose of this study is to improve general knowledge on consumer protection and increase consumer loyalty to various brands of consumer goods which are rapidly changing in Nigeria. Brand loyalty in fast-moving consumer goods is impacted when consumer interests and rights are protected by regulators.

1.9.1 Management practices

Organization management begins to realize the importance of ensuring that quality products are not solely focused on quantity for the sole purpose of making a profit. will begin to respect consumers who are Management must integrate safe practices using quality materials to increase product volume and protect consumers. This increases profitability and loyalty to Nigeria’s fast-changing consumer goods brands.

1.9.2 Industry

Nigeria’s fast-changing consumer goods industry will enjoy profitability and brand loyalty when it begins to protect consumers by discouraging unethical and unscrupulous activities. The industry also needs to adapt its marketing philosophies to ensure it meets consumer needs. This research impacts the industry by helping it understand that protecting consumers increases brand loyalty and increases profits.

1.9.3 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 Agency for Food and Drug Administration, a standard organization in Nigeria, and amend the Consumer Protection Council Act to adequately and efficiently protect citizens from various brands of fast-moving consumers. be done. Nigerian goods. This study addresses the needs of all Nigerians, regardless of their religious beliefs, which the government needs to address and protect against substandard, counterfeit and adulterated goods consumed in the market by Nigerian consumers. Especially for Muslims, governments need to provide halal products in both fast-moving consumer goods and pharmaceuticals.

1.9.4 Society

The purpose of this study is to influence Nigerians and educate them that their rights as consumers should be protected against bad practices by organizations whose sole purpose is to make a profit. consumers and citizens

1.10 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 a systematic effort by concerned citizens, businesses, and governments to even out the balance of power among the parties to the exchange, to correct and remedy the injustices imposed on consumers in pursuit of a normal life. increase.

Consumer products:
Products or services purchased by end-users for personal consumption.

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. Consumer-oriented marketing:
Principles of sustainable marketing that state that companies should consider and shape their marketing activities from the consumer’s perspective.

consumer:
Consumers are people who buy products and services from manufacturers.

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 that company’s products and services, and refer them to their colleagues.

Consumer protection; protecting purchasers of goods and services from inferior or dangerous products and deceptive advertising. Consumer protection can also be defined as measures that protect the interests and rights of consumers from unscrupulous and unethical misconduct by companies and enable consumers to seek prompt redress for complaints. I can do it.

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.