THE EFFECT OF PRODUCT QUALITY ON CONSUMER BRAND LOYALTY

THE EFFECT OF PRODUCT QUALITY ON CONSUMER BRAND LOYALTY

ABSTRACT

This study experimentally investigates the impact of product quality on consumer brand loyalty with a focus on seven 7up bottler Types. The concept of product quality as a motivator for consumer brand loyalty is closely examined in this essay. Consumers of 7up products in Aba were given questionnaires by the manufacturing staff of the 7up bottling company. A sample size of 50% of the population (200) was used, out of a total population of 400. The researcher’s effort ultimately led to the conclusion that quality products have a favorable impact on consumer brand loyalty and that product quality increases consumer demand for 7-Up products by analyzing the response to the study question and evaluating the hypothesis with the chi-square. The writing made Some research has shown that product quality ensures recurrent purchases of a product, which fosters brand loyalty in customers. The management of the 7up bottling company should place greater focus on product quality in order to win consumers’ brand loyalty to their business, according to the conclusion taken from the findings. Based on the inference drawn from the findings, it is advised that a corporation always maintain a focus on product quality to ensure customer brand loyalty.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The growth of marketing opportunities and the improvement of product quality in the business sector are results of changes in consumer income and improvements to their level of living brought on by a wider range of individuals. Producers create new items to fit the shifting consumer wants in an effort to please the market. Yet, when the market expands and grows, particularly as a result of the presence of several competitors, the necessity for product quality becomes a top priority for businesses in order to keep and draw in customers.
Product innovation and quality control are crucial corporate operations. This is due to the possibility that things that consumers found satisfying yesterday may not be so now.

Furthermore, if the product quality is satisfactory to consumer the product  is likely to command higher profit margin  and consumer brand loyalty. In the past, many company’s took customers for granted because the customer may not have had alternative sources of supply or the market was growing so fast that the company did not worry about satisfying and retaining its customers, neither are they concern on developing product quality. This is not longer the case; things have changed in today’s marketing environment.

Kotler (1999): noted that today’s customers are harder and difficult to please. They are smarter, more price and quality conscious, more demanding, less for giving and they are been approached by more competitors with equally or better offers.

Thus, The challenges in today’s market is on product quality in order to retain and maintain consumers loyalty on our product company to study the effect of its product quality in retaining and maintaining consumer loyalty on her various  brands of product.

1.1.1   PROFILE OF SEVEN7 UP BOTTLING COMPANY PLC, ABA

In the year 1929, the chairman of the Seven Up Bottling Corporation arrived in Nigeria. On October 1, 1960, he visited Ijora Lagos and gave out a total of fourteen cases of Seven Up beverages that day. He then visited Ibadan in 1981, Aba again in 1980, Kaduna in 1989, and Benin in 1994.

Seven up bottling Company Plc deals in soft drinks such Seven up, Pepsi Cola, Mirinda, Mountain Dew, Mirinda Soda, Team lemon, etc. from its Aba Factory in Ogor-Hil, which was established in 1980.

There are more than 500 employees total in the plant, both male and female.

1.2   STATEMENT OF THE PROBLEM

One of the largest soft drink manufacturers in Nigeria is known as the 7Up Bottling Company, which distributes a number of brands including Pepsi, 7Up, Mirinda, soda water, Mountain Dew, and Teem. Although offering such a wide selection of goods, the company has yet to establish itself as the market leader in Nigeria’s soft drink sector.

We learned from an oral interview with several employees and distributors of the seven up bottling company that the Nigerian bottling firm, which produces the well-known Coca-Cola, continues to dominate the soft drink industry and is a significant rival of the seven up bottling company.

The crisis of other soft drink manufacturers, such as Limca, Faroz, and others has exacerbated the issue of 7up’s cooperative ambition to dominate the soft drink market. In a conversation with certain distributors of the 7up bottling company, we learned that the main issue facing the company is the presence of rival brands, particularly coca-cola, which some consumers believe to be of superior quality than 7up products. In other words, the goal of this study is to determine whether or not product quality influences consumer brand loyalty.

1.3    OBJECTIVES OF THE STUDY

Product quality has been linked to a great deal of importance in winning back and retaining customer loyalty. As a result, the following objectives of this study are pursued:

i. Analyzing how product quality affects customers’ willingness to buy from a certain brand, with a focus on the 7up bottling firm in Aba.
ii. Analyzing how product quality affects consumer demand for 7-Up goods.
iii. The company’s key marketing tactic is dissuading consumers from accepting poor product quality.
iv. Providing suggestions regarding the profitability of product quality as a method of retiring and gaining market share in the midst of severe competitions.

1.4    RESEARCH QUESTIONS

Several research questions will be addressed during the course of this study, and these questions will help formulate the hypothesis. These are the inquiries:
i. Does a favorable relationship between product quality and customer brand loyalty exist?
ii. Does a product’s quality affect how much demand there is for it?
iii. Is improving product quality constantly pursued in the face of fierce market competition?

1.5   RESEARCH  HYPOTHESES

In the course of this study, the following hypotheses will be tested.

Ho1:   product quality does not have any positive effect on consumer brand loyalty.

HA1:   Product quality has positive effect on consumer brand loyalty.

HO2:   Product quality does not  increase the demand o a product by  the consumer.

HA2:    product quality increase the demand of a product by the consumer.

HO3:    product quality is not always embarked upon when there are severe competitors in the market.

HA3:    Product quality is always embarked upon when there is severe competition in the market.

1.6  SIGNIFICANCE OF THE STUDY

The following list provides an overview of the study’s enormous significance and advantages:

1. This study equips me with the necessary knowledge to prevent the impact of product quality on consumers’ brand loyalty.
2. I consider this research to be significant because it partially satisfies the requirements for receiving a higher national diploma (HND).
3. This study will help businesses, in particular the 7up Bottling Company, to assess the costs and advantages of their product quality plan in order to decide whether or not to continue it in order to increase consumer brand loyalty and market share in the soft drink sector.

4. The purpose of this study is to determine the parentage of the consumers who purchase 7up products due to their high quality.
5. It is believed that the findings of this study would inspire producers and institutions to adopt product quality and development as a tactic or tool to increase consumer brand loyalty.
6. This study will be beneficial to individual, business organizations, Institutions, manufacturers, and government officials etc who wish to know the effect of product quality on consumer brand loyalty.
7. This study will serve as a source of secondary data to researcher in field of product quality, product development and consumer behaviour.

1.7  DEFINITION TERMS

7UP BOTTLING COMPANY:

A legally register business s name licensed to produce soft drinks in Nigeria.

ABA: A commercial Town in Abia  State of Nigeria.

BRAND: A name, term, sign, symbol, design or combination of these,  intended to identify the goods or services of one seller or group of seller and to differentiated them from those of competitions.

BRAND LOYALTY: The feeling of trust and satisfaction that make a customer always buys the same brand of product.

CASE STUDY: A true or invented business situation used in business training to practice decision making.

COMPANY:  legally registered Business  ventures

CONSUMER:  A person or company  who buys and uses goods and services.

EFFECT: A result of something

PRODUCT: Anything that can be offered to  a market  for attention, acquisition ,  use or  consumption that might satisfy a want or need.

QUALITY: What something is like or how good or bad  a product is.

CO-OPERATE GOAL: Top management set  objective/target.

MARKET  SHARE: The percentage of a total market which the sales of a company  product cover.

INDUSTRY: A group of companies making  the same type of product  or  offering the same  types of  services.

PROMOTIONAL TOOLS: materials used in promotion  e.g display material and sales  literature.