ANALYSIS OF FACTORS INFLUENCING THE CHOICE FOR THE CONSUMPTION OF GROCERY GOODS IN NIGERIA (A CASE STUDY OF FUTA STAFF AKURE, ONDO STATE)

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The recent decade has seen grocery business as one of the growth areas in the global economy, witnessing high growth rates in the developed countries and perching exponential growth in the emerging economies. Rapid growth being an important factor is also followed by increasing competition and emergence of new retailing formats of grocery business in shaping new scenario of grocery consumption in Nigeria. (Popkowski Leszczyc, Sinha, and Timmermans, 2000). Moreover, consumers of grocery goods now take many factors into account when selecting a grocery product. The consumers are becoming more sensitive in selecting grocery products hence increasing importance of grocery goods/products in establishing brand identities rather than just opening grocery goods/products. In the light of these, the study of how consumers choose grocery goods/products, and what drives their store choice, will be an important contribution retail sector and its affiliates in responding to the changing demands of customers and developments in retail sector. Grocery goods selection and consumption has been a topic of research for many researchers with different perspectives. Grocery goods, in particular continue to face structural changes, with some of the changes being reflected by consumer choices regarding their choice of consumption when it comes to groceries. The new options among grocery goods provide customers with alternatives that may increase consumption (Medina and Ward, 2009). “What influences the choice for the consumption of grocery goods?” Marketing practitioners have always put much emphasis on this question as it affects not only where consumers buy, but what and how much they buy.

STATEMENT OF THE GENERAL PROBLEM

Grocery consumptions has not been increasing over the years and in the era where policy makers are concerned with food security there is the need to examine the factors that influence the consumption of groceries goods in order to help with the marketing and consumption of these products. When the consumption increases, other things equal production will also appreciate.

The central problem, which this research study will tackle, is to identify and examine those factors that influence consumers’ purchase and consumption of grocery products and also ascertain how consumers react to those factors.

AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine the factors influencing the choice for the consumption of grocery goods in Nigeria. Other specific objectives of the study include;

1. To examine the influence of consumption on the patronage of these grocery items.
2. The influence of choice on the marketability of grocery goods in Nigeria.
3. To examine the need for improving the marketability of grocery products in Nigeria.
4. To recommend ways of improving the marketability of grocery products in Nigeria.

RESEARCH QUESTIONS

1. What are the factors influencing the choice for the consumption of grocery goods in Nigeria?
2. What is the influence of consumption on the patronage of these grocery items?
3. What is the influence of choice on the marketability of grocery goods in Nigeria?
4. What is the need for improving the marketability of grocery products in Nigeria?
5. What are the ways of improving the marketability of grocery products in Nigeria?

RESEARCH HYPOTHESIS

H0: There are no factors that influence the choice for the consumption of grocery goods in Nigeria.

H1: There are factors that influence the choice for the consumption of grocery goods in Nigeria.

SIGNIFICANCE OF THE STUDY

The study would reveal the factors influencing the choice of consumption of grocery products which would greatly improve the consumption and marketability of diverse grocery products. The study would also be beneficial to students, researchers and scholars who are willing to develop more research on the subject matter.

SCOPE AND LIMITATION OF THE STUDY

The study is restricted to the factors influencing the choice for the consumption of grocery goods in Nigeria a case study of the staff of Federal university of technology Akure, ondo state.

LIMITATION OF THE STUDY

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.