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AN ANALYSIS OF MOTIVATIONAL INFLUENCES OF CUSTOMER BUYING BEHAVIOUR OF INDUSTRIAL PRODUCTS IN THE SOUTH EASTERN STATES

Project Description

CHAPTER ONE

INTRODUCTION

  • Overview of the problem

Motivation is a general term used  to refer to the entire class of drives,desire,need , wishes  and similar forces .It refers to the drive and effort to satisfy a want or goal .(Nobert::1999, .245).

According to Nwachukwu (2006, p.186) “Motivation is that energizing force that induce or compel and maintain behavior “.He maintained that human behaviour is motivated and it is goal directed .Motivation in essence is concerned with the reason behind people doing things. He went further by emphasizing that Motivation is an internal psychological process whose presence or absence is inferred from observed performance.

People act because there is a felt need ,which should be satisfied .Every effort  made is to satisfy  such perceived need , This calls for the analysis of consumer behaviour  as it affects the behavioral pattern of the customer in satisfying those  perceived needs or wants.

Customers are central to the practice of marketing, since without customers, a business cannot survive. The stress here is understandably given that the existence of any business is dependent on the patronage from the customers or the consumer. It is necessary to mention here that there are two types of customer or consumer –ultimate customer or consumer and industrial customer or consumer

The ultimate customer buys goods and services for personal consumption while the industrial customer, according to Achison (2000:36)”buys goods and services for some tangible productive and commercially significant purposes. This research work, intends to concentrate on the activities and behavioral pattern of the industrial product customer.

Generally, the Motivation   behind the purchases by these two customers or consumers is basically different. Ultimate customer buys product in order to derive benefit and satisfaction while the industrial customers buys goods and services (products) in order to make profit. An industrial customer buys a   product for its value and expected benefit. The value of an industrial product  to the customer is   dependent upon  its  ability to affect efficiency , profitability  and other benefits in use .It has been observed that  industrial customers are  usually concerned with  the procurement of  goods and services  that are expected  to provide  significant levels  of   benefits,, efficiency. Durability and profitability in his operation. Which means that industrial product is purchased on performance and benefit basis.

In this regard, the ability of industrial customer to discern the economic benefit of his procurement is very essential in his purchasing. In addition, the industrial customer should be more rational in his purchasing activity than emotional .Rational economic motive is more significant than purely emotional consideration. A supplier  may entice the buyer (industrial customer) with  low prices  but an astute  buyer should  be assured of the product  reliability , not only  in meeting up with expected  services  but in  the competence  of the supplier in the knowledge  of his  product , dependability  and good relationship.

Certainty of supply, dependability, Meeting up with schedules and technical  assistance are among the  motivating factors  in the purchase decision , while  price and trade mark or name  plays a  significant  role in the  buying decision  of an  industrial  product user or buyer.

Hence this work tends to study and analyze those motivational influences that affects the customer buying behaviour of industrial products in the South –Eastern states in Nigeria.

  • Statement of Problems

It is observed that the industrial customer usually choose to buy a product because it will yield results or profit at greater rate than its cost (Taylor- show, 1969).

It is one thing to produce goods and service and another to market them. The marketing practitioner is interested in knowing why some customer’s buys a particular brand, why others do not and how non users could be persuaded to become users. All these calls for a research into those motivational factors that influences the purchase decisions of those industrial customers with special reference to some states in the South – Eastern Part of Nigeria.

An analysis of consumer behaviour and decision process will be a very vital tool in order to give this research work a thorough and comprehensive touch. A general look at the model of consumer decision making from authors like Onah and Thomas (2004), Kotler (2006) Engel (1993) Nicosia (1966) Bear the  same theme that consumer behaviour for a product is a sociological and psychological force both interacting with the external environment to produce a purchase decision. Essentially all agreed that the buyer passes through five stages in their purchase decisions.

  • Problem /need recognition.
  • Information search / search for alternative.
  • Evaluation of alternatives.
  • Selection of optional alternative/ purchase decision.
  • Implementation of decision /outcome.

All these stages come into play before the actual purchase is made.

Specifically, the following motivational factors influence the purchase of industrial products- price, quality, availability of goods and spare parts, and finally trade mark/ name. The  above named or mentioned factor that influence the purchase decision of the industrial customer is what this research work is expected to study ,analyze and test.

  • Objective of the Study

The objective of this research study includes.

  • To find out the impact of trade name, in customer buying behaviour of industrial products.
  • To find out how price of industrial products affects or influences customers buying behaviour.
  • To ascertain whether sociological factors influence customer buying behaviour of industrial products.
    • Research Question

The following are the research questions that guide the steps of the researcher in the course of carrying out a research work on the topic of this work. This includes

  • Does price of industrial products affects the buying decision of industrial customer?
  • Does trade name affects buying behaviour of industrial customers?
  • What are the sociological factors that influence the purchase of industrial products?
    • Research Hypothesis

Ho1:            There is no positive and significant relationship between price and industrial buying behaviour.

Alt H1:         There is a positive and significant relationship between

Price and industrial buying behaviour.

Ho2:            There is no positive and significant relationship between

Trade name and industrial buying behaviour.

Alt H2:         There is a positive and significant relationship between

Trade name and industrial buying behaviour.

  • Significance of the Study

An analysis of motivation and how it influences the buying behaviour of industrial product is very important in our contemporary society. Any distortion may have negative effects on the market share of the economy at large. So, this research work is expected to broaden the intellectual horizon of marketing practitioners and other professionals on the implication of motivational influences.

Especially for those in the area of purchasing, supply and sales promotion. This research study also intends to know what influence customers behaviour and how well one could improve on his products. A researcher once said that the more you know about the customer, the better you never know when a small fact might lead to a better product.

This research work will be an invaluable source of literature for researcher’s, students ,marketing practitioners and companies intending to study the effects of Motivation on customer buying behaviors of industrial products. Findings from it will help researchers suggest alternative strategies that can aid mode of motivation in our society.

  • Scope and limitation of the Study

This means the boundary of study it is the area in which the researcher intends to operate, concentrate and extends its operational tentacles. This means the area where the research cannot exceed during the research study.

In this research work, the researcher could not exceed the boundary of studying motivational influence on customer buying behaviour of industrial products in the South – Easter States of Nigeria, mostly Enugu, Anambra, Ebonyi, Imo, Abia and few areas in other part of Eastern State as Indicated in the map enclose in the project proposal.

The major limitations which the researcher encountered in the course of carrying out this research work are numerous. The main limitation of the study is the difficulty of getting and gathering information,, understanding certain concept in the questionnaires by the respondent.

Also the risk of traveling by road across the Eastern State is another factor. Majority of the roads in the East are very bad and are responsible for a lot of accidents on the high ways. Armed robbery attack during the day is on the increase in the Eastern States and Posses a lot of danger and threat on the research. In addition, financial constraint also limits the research and poses a threat to the study.

Finally, the scope of the study is also another limitation since the research work is limited to the Eastern States, the findings from the study cannot be sweepingly generalized nationally except broader studies are carried out. As a result, the researcher opines that findings are peculiar to a particular region.

However, the lists of limiting factors, not withstanding, the study will make a positive contribution to the literature.

 

1.8    Definition of Terms

Consumer/ customer: This can be defined as the person that buys goods and services for either personal consumption (ultimate customer) or for further production or manufacturing purposes (in dustrial customer)

Research: According to Baridam (2001, P. 7) research is “The activity of investigating the phenomena of human experience.

Consumer Behaviour: Is defined as those activities directly involved in obtaining, consuming and disposing of products and services,, including the decision processes that precede and follow these action (Engel et al: 1993, p 4)

Industrial Project s: Industrial Project s are those goods and services used in further production or manufacturing purposes.. Economists say these goods have derived demand since they are used to make something else. These include Raw materials, fabricating materials and parts, installations, Accessory equipment and operation supplies.

Buying behaviour: is defined as the decision process and acts of people involved in buying and using products.

Trade name / mark: This is defined as individual names, firm names devices or words used by manufacturers, industrialists, merchants and others to identify their business, vocation or occupation (Kalu, 1998: 236).

Motivation – Nwachukwu (1988, P. 181) defines motivation as that energizing force that induce or compels and maintains behaviour. He maintained that human behaviour is motivated and it is goal directed.

  • Organization of the Study

The aim of the study is to examine those motivational factors that influence the customer Buying Behaviour of industrial products in the South Eastern States. The study is to identify those influences as it affects the customer / consumer of industrial products, make useful suggestions where necessary and proffer probable solutions. The study is divided into five chapters. Chapter one examines the basic centrality of customer buying behaviour of industrial products, looks at the overview of the study, statement of the problem, objectives of the study, research question and research hypothesis, significance of the study, scope of the study, limitations of the study and definition of terms.

The second chapter (chapter two) reviews the relevant literature on theories, principles and practices of customer buying behaviour of industrial products and their motivational influences. It is a review of scholarly works and their major findings in relation to the subject of study.

Chapter Three discuss the research methodology used, design, sampling method, data collection and analysis with operational definition of variables.

The Fourth Chapter shows a detailed analysis of the primary data with the aid of statistical techniques while chapter five summarizes the research findings, conclusions and recommendations.

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