CHAPTER ONE

1.1 …

1.2. STATEMENT OF THE PROBLEMS

There are many competitive industries in the market producing similar product or substitute product. For company to gain customers retention and loyalty, companies must continues to place emphasis on product quality in other to retain and maintain customer’s choice on a product.

The study is focused on the relationship between product quality and customer’s choice on a product, because there is a symbiotic relationship between product quality and consumer’s choice on a product. In that light, this study intends to focus attention on improving product quality rather than increasing production and sales volume.

1.3 RESEARCH QUESTIONS

In order to achieve the objective of this research work the following research question will be relevant to us in solving the research problem.

I What is the effect of product quality on product choice?

II What is the relationship between product price and product choice?

III What is the effect of product advert on product choice?

IV what is the effect of packaging on product choice?

V What is the effect of assortments on product choice?

VI What is the relationship between buying intention and product choice?

1.4. RESEARCH HYPOTHESIS

I Ho: There is no significant relationship between product quality and product choice.

Hi: There is significant relationship between product quality and product choice.

II Ho: There is no significant relationship between price of a product and product choice

H2: There is significant relationship between price of a product and product choice.

III Ho: There is no significant relationship between product packaging and product choice.

H3: There is significant relationship between product packaging and product choice.

IV Ho: There is no significant relationship between assortment sizes of a product and product choice.

H4: There is significant relationship between assortment sizes of a product and product choice.

V HO: There is no significant relationship between advertisement and product choice.

H5: There is a significant relationship between advertisement and product choice.

VI Ho: There is no significant relationship between buying intention and product choice.

H6: There is significant relationship between buying intention and product choice.

1.5. OBJECTIVES OF THE STUDY

This study is aimed at achieving the following objectives.

I To determine the relationship between product quality and product choice

II To ascertain the relationship between product price and product choice

III To verify the relationship between product packaging and product choice

IV To determine the relationship between advertising and product choice

V To verify the relationship between assortments and product choice

VI To determine the relationship between buying intention and product choice.

1.6. SIGNIFICANCE OF THE STUDY

Past research examining product quality and the effect price have on consumer buying decision [Churchill and Patter [1994] the consumer decides whether and what to buy depends partly on the significant of purchase.

Consumer purchasing decision specifically refer to the activities consumer take when deciding what to buy and when making actual purchase. Consumer research about price can show how to communicate price and most effective research indicates that, the ending of the price effect how consumers quality of the product.

Other research work prior to this opined that more options can generate decision conflict, confusion and frustration, leading to choice deferral or even no choice at tall [e.g. Chennev 2003, D’har 1996, 1997; Greenleaf and Lehmamn 1995, Iyengar and Lepper 2000]
The present study will correct that assertion and will also builds on preliminary study by examining a wider array of plausible factor’s [variables] that can influence consumers choice of a product such as advertizing, packaging, size assortment, product quality e.t.c. The study will serve as a source of secondary data to research in field of product quality, product development and consumer behavior.

1.7. SCOPE OF THE STUDY

The study will be limited to the effect product quality has on the choices of student’s in Delta State University, Asaba Campus and as such about fifty (50) or more questionnaire have been designed to achieve the objective of the study. The sampling unit of the study is limited to only the students in the institution and not staff and management of the institution. More so, a time frame has being set aside for this study starting from March 11th to April 30th2015.

1.8 LIMITATIONS OF THE STUDY

Although the study found several encouraging results, it is important to recognize that the current findings also have several limitations.

First, the sampling was relatively small since the study focused on the student consuming peak milk product in Asaba campus and not all the student in the institution [Delta State University]. Second. Time constrain on the part of the researcher as well as on the part of student due to academic activities.

Third, large percentage of students consuming peak milk product in the school campus are not the actual buyers of the product, therefore we cannot say for certain what is responsible for student choice of the product.

Hence WAMCO Nigeria Plc, producers of peak milk product will not base their marketing decision on this study alone even though this study will go a long way in assisting them.
Nevertheless, future research should broaden the scope of their study and use other variables different from these use in this study.

Additionally, future research might improve on this study by varying the sampling unit such that it will include staff of the institution, nursing mother at home and employer’s in other firm or sector in the economy.