An Evaluation Into the Nature of Problems and Prospects of the New Products Developed in the Banking Industry (a Case Study of First Bank Plc, Enugu)
Chapter One
OBJECTIVES OF THE STUDY
In view of the problems identified, this will achieve the following objectives:
- To identify the nature of the New products services delivery strategies in our banks.
- To find out if the New products develop by banks is convenient to customers.
- To find out if these New products developed by banks satisfy customers needs.
- To find out if fund transfer is one of the prospects new products developed by banks.
- To find out if inadequate infrastructural level is among, the problems of the New products, in the banking industry.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
New Product Development
In business and engineering, new product development (NPD) is the complete process of bringing a new product to market (Wong & Tong, 2012). A product is a set of benefits offered for exchange and can be tangible (that is, something physical you can touch) or intangible (like a service experience, or belief). There are two parallel paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new product within the overall strategic process of product life cycle management used to maintain or grow their market share. A Product according to Kotler and Keller (2006) is anything that can be offered to a market to satisfy a want or need. Also Akpan (2002) defined a product as a complex of tangible and intangible attributes, including packaging, price, manufacturing and retailers services, which the buyer may accept as offering satisfaction of wants and needs. An organization’s product policy is fundamental to the whole operation of the business. When an organization determines to produce a specific product or group of products, it is the decision which dictates the industry to which it will belong, the market it will serve and the nature and extent of the resources, methods, and techniques it will employ (Akpan, 2002) Kotler and Keller (2006) opined that they are five product levels and each level adds more customer value and the five constitutes a customer value hierarchy. The fundamental level is the core benefit; the service or benefit the customer is really buying. For instance a hotel guest is buying ‘rest and sleep’ while a bank customer is buying guidance and custody of his/her fund. At the second level the marketer has to turn the core benefit into a basic product. Thus, a hotel room includes a bed, bathroom, towel, desk and dresser; while a bank hall include vault, desk, air conditioner and counting machines. At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product. Hotel guest expect a clean bed, fresh towels and working lamp; while a bank customer expect a clean hall, prompt attendance and politeness. At the fourth level, the marketer prepares an augmented product that exceeds customer expectations. Differentiation arises on the basis of product augmentation. Product augmentation also leads the marketer to look at the user’s total consumption system; the way the user performs the tasks of getting and using products and related services. At the fifth level stands the potential product which encompasses all the possible augmentations and transformations the product or offering might undergo in the future. Here is where companies search for new ways to satisfy customers and distinguish their offer. This leads to new product innovations as in the case of banks. New product development according to Ejiogu (2012) is the total efforts by the marketing Executives add another variety to already existing products and services base on envisioned need of customers. In this regards when banks introduced new variety of services to attract customers patronage, a new product is born.
Profit
In neoclassical microeconomic theory, the term profit has two related but distinct meanings. Economic profit is similar to accounting profit but smaller because it reflects the total opportunity costs (both explicit and implicit) of a venture to an investor (Albrecht, 1983). Normal profit refers to a situation in which the economic profit is zero. A related concept, sometimes considered synonymous to profit in certain contexts, is that of economic rent. In Classical economics and Marxian economics, profit is the return to an owner of capital goods or natural resources in any productive pursuit involving labor, or a return on bonds and money invested in capital markets (Carbaugh, 2006). By extension, in Marxian economic theory, the maximization of profit corresponds to the accumulation of capital, which is the driving force behind economic activity within the capitalist mode of production.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine an evaluation into the nature problems and prospects of the new products developed in the banking industry. First Bank Plc, Enugu form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain an evaluation into the nature problems and prospects of the new products developed in the banking industry. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of nature problems and prospects of the new products developed in the banking industry
Summary
This study was on an evaluation into the nature problems and prospects of the new products developed in the banking industry. Five objectives were raised which included: To identify the nature of the New products services delivery strategies in our banks, to find out if the New products develop by banks is convenient to customers, to find out if these New products developed by banks satisfy customers needs, to find out if fund transfer is one of the prospects new products developed by banks and to find out if inadequate infrastructural level is among, the problems of the New products, in the banking industry. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from first bank. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
This study draws its conclusion base on the findings that the inability of banks to actively involve in marketing research hampers their new product innovation and development efforts. And the poor knowledge of the benefits derived from new product innovation is responsible for low rate of profit maximization in banks
Recommendation
Based on the conclusions above, the following are our recommendations. 1. Nigerian deposit money Banks should pay more attention and intensify their research efforts to provide timely information on product development and other areas of their operation.
- In line with the above, Nigerian deposit money Banks should strive to monitor the degree of customer’s satisfaction with their services on a continuous basis through market situation analysis. This way, the banks will be able to see areas requiring improvement thereby facilitating the much-desired satisfactory delivery of financial services and profit maximization.
- Diversification of product line in banks will reduce cost and increase profit, so banks should diversify their product line
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