THE INFLUENCE OF TV ON THE SALES OF FAST MOVING CONSUMER GOODS IN NIGERIA

CHAPTER ONE

1.0   Introduction

1.1 Background to the Study

The term ˜"Broadcast media" is quite often mentioned these days. It is a new phenomenon and one would probably imagine that everyone knows or understands what it means. Nearly ninety percent (if not more) of all online or internet users use broadcast media in one way or the other (Kietzmann and Kristopher, 2011; Dolwick, 2009).

The emergence of broadcast media began in the early days of internet when people started sharing information and communicating with one another (Boyd and Ellison, 2010) but unfortunately; the platforms used then were more “technology intensive” and required some level of expertise before use. Hence, the number of people using broadcast media platforms then was limited. Over a period of time as technology advanced, platforms that are less sophisticated were developed thus, enabling billions of regular internet users, without any technology background, to use the services (Boyd et al., 2010; Baden, Bender, Spring, Bhattacharjee and Strain, 2009) and this marked a turning point in the history of the media, making the media all inclusive in such a way that people no longer remain silent spectators to the content being dished out to them. Now, they could create their own content, share it with others, respond to people, collaborate with them and many more (Andreas and Haenlein, 2010). This user interaction is what gave impetus to the today’s increasingly emerging broadcast media platform.

Broadcast media medium such as, the radio and television now allow member individuals to interact with one another and to build relationships even many companies across the world have joined but they joined only the fastest growing networks such as Facebook and Twitter, so as to connect with their customers (Trattner and Kappe 2012). The broadcast media networks act so fantastically as the vehicle helping companies to gain traffic or attention to their product and service usually through the use of Links via the adverts they place on the broadcast media (Chinag and Chung, 2011; Deis and Hensel, 2010).

It also acts just as the traditional Word of Mouth in mainstream marketing does. Corporate messages conveyed through broadcast media spread very fast from users to users and presumably resonate in favour of the company (Deis and Hensel, 2010). In these regards, broadcast media networks, ever since 2002, have become the new 21st century paradigmatic market medium for businesses to exploit (IMAP, 2010) and influence their customer’s purchasing behaviour more. This is because, globally, a survey report reveals that about half of the 170 million Nigerians regualary make use of the broadcast media(Oracle Retail, 2010) and sequel to this notion, virtually all businesses now employ broadcast media networks as an extension of their existing corporate marketing strategies especially the retail industry in order to capture and serve customarily those active users with a broad range of lifestyle brands of products across the universe. And in the light of this, many firms in Nigeria also have started plunging into using these platforms. This current study thus seeks to explore thepatronage behaviour of Nigerian consumers via these growing broadcast media networks especially from those companies that utilize them for their marketing activities.

1.2 Statement of Problem

One of the purposes of using the broadcast media is to create awareness of the products advertised. In order to achieve this aim, producers frequently advertise their products (Jonathan1995). Despite the advertising of shopping goods such as men’s packet shirts, women’s clothing, jewelry, television etc, consumers’ attention is not always drawn to it, because consumers in Lagos State have their areas of interest and the type of goods they buy. They prefer to buy by the road side or open market where they can bargain. Advertising seeks to build a brand preference or to educate people (Kotler, 2006). On the order hand, consumers in Lagos State show less interest in brand preference. Some consumers prefer to buy by the road side or in the open market where they can bargain.

Most consumers prefer to buy used product than to buy quality products from the shop. In Lagos State, there is little or no public communication media through which consumers are educated about a product. Most consumers do not get information about shopping goods that will be of benefit to them. for example when a promo or discount are given for buying a product, some consumers who do not have access to television, radio or public communication media might not be aware. Shopping goods are those goods consumers purchase after comparing quality, price, style, colour and size (Kotler, 2003). On the contrary, consumers in Rivers State prefer to consider cost, transportation and nearness to the market whenever they want to buy their products. Osuala (1987) explained that sellers advertise numerous general products, to increase sales of the products category. But consumers in Lagos State consider advertised products that are sold in the shops to be very expensive thereby prefer to buy in the open market. Advertising based on sizes, colour, shapes, qualities of televisions may influence consumers to buy, however consumers who do not watch TV advertisement frequently will not be so influenced. Furthermore, many consumers think it is a waste of time, those who do not have access to television may not be influenced by such advertisement, Though consumers in Lagos State consider factors such as cost, income, transportation, nearness to market etc. However consumers who buy original products will prefer to buy quality products from the shops. It is important therefore to ascertain the influence of the broadcast media (TV) on the sales of fast moving consumer goods in Lagos State.

1.3 Objectives of Study

The following will be the aims and objectives of undertaking this study:

The main objective of this study is to examine the influence of broadcast media (TV) on the sales of fast moving consumer products in Lagos.

i.            To determine the perception of consumers towards the broadcast media (TV).

ii.          To determine the extent to which consumers patronize products advertised on broadcast media (TV).

iii.        To determine the relationship between broadcast media TV) and sales of consumer goods in Lagos.

1.4 Research Questions

The following research questions shall guide the study;

i.            What is the influence of broadcast media on the sales of fast moving consumer products in Lagos?

ii.          What is the perception of consumers towards the broadcast media (TV)?

iii.        To what extent do consumers patronize products advertised on broadcast media (TV)?

iv.         Is there a relationship between broadcast media and sales of consumer goods in Lagos?

1.5 Research hypotheses

The following hypotheses will be tested in the study;

Ho:Broadcast media does not influence the sales of fast moving

consumer goods in Lagos.

Hi:Broadcast media influences the sales of fast moving consumer

goods in Lagos

Ho: There will be no significance effect on the fast sales good if advertised on the TV.

Hi; There will be a significance effect on the fast sales good if advertised on the TV.

1.6 Significance of the Study

The finding of this study would be of importance to the business operators most especially proprietors of shopping goods as it would create awareness of the importance of advertising on the sale of their products. The findings of this study would be of benefit to marketing students and lecturers in tertiary institutions as they would have a broader understanding of how advertising influence the sale of shopping goods. The findings of this study would be of benefit to the Ministry of Commerce and Information. It will give them an insight on the benefit of advertising on the sale of shopping goods. It will also assist them on how to organize training programmes for proprietors of small scale business. The findings of the study would be of immense benefit to the media organization as the knowledge gain from the findings would help them to be innovative in their various approaches to advertising designs. Finally the findings of this study would be a significant contribution to the existing body of literature in the discipline

1.7 Scope and Limitations of the Study

This study is restricted to the influence of broadcast media on the sales of fast moving consumer products in Lagos.

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 Research Methodology

The study shall employ the survey research method in the process of data collection. The method entails identifying population of study and collection of data through questionnaire administration.

Population of Study

The population of study shall comprise of Small Business Entrepreneurs in Ikeja, Berger, Oshudi, and Ikorodu area of Lagos state. The population size is at about 420 Micro and Small Businesses Entrepreneurs which largely includes owners of supermarkets, electronic shops, pharmacies, Business centers/ cyber cafes, restaurants, barbing and hair dressing salons, pure water companies and paint companies in the metropolis.

Sample Size 

A sample size of 110 respondents was drawn from the study population. The constitution of the sample was as follows;

Sampling Technique

The study shall adopt the stratified random sampling technique. The method entails grouping respondents into strata on the bases of common characteristics which in this case is the industrial affiliation. After the grouping, the simple random sampling technique is then applied to select the required sample size

Data Collection Instrument

Data collection will be done through the questionnaire method. The questionnaire was structured into section A and B with close ended questions. Section A shall generate information on respondents’ bio-data while, section B, will elicits information on respondents perception on the research topic.

The questionnaire is in a close ended format which allowed the respondents to offer their views according to the Lickert scale of responses as follows;

SA – Strongly Agreed

A - Agreed

U - Undecided

D -disagreed

SD – Strongly Disagreed

Administration of the Instrument

To foster quick response to the questionnaire, the researcher will personally administered the questionnaires to the respondents. The effort enable the researcher to clear some of the items contain in the instrument with the respondents while, at the same time, respondent attention were drawn to some items yet to be filled.

Method of Data Analysis

All data collected shall be analysed using statistical tools such as frequency distribution table, percentages, and chi-square analysis for testing the formulated hypotheses.

Chi-square formula;

Chi-square formula;

X2     = ∑(O-E)2

                E

df (degree of freedom)= N-1

Where;

X2 = Chi-square calculated value.

O = Observed frequency

E = Expected frequency which is derived by

While,

df       = Degree of freedom

N        = Number of Observation

 ∞       = level of significant (5%)

1.9 Definition of Key Terms

Consumer goods:goods bought and used by consumers, rather than by manufacturers for producing other goods.

Media:the main ways that large member of people receives information and entertainment that is television, radio, newspapers and internet.

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