Sales Promotion: A Tool for Achieving Customer Brand Loyalty in the Yabatech Table Water
Chapter One
OBJECTIVES OF THE STUDY
The purpose of this study is to generally appraise the promotional programmes of Yabatech table water with a view to determining how effective management of it’s sale promotional programmes can help it achieve customers brand loyalty. The other specific objectives are as follows:
to appraise the sales promotional programmes of Yabatech table water.
to identify the defects in the current sales promotional programmes of Yabatech table water.
to identify the problems militating against effective sales promotional programmes of Yabatech table water.
to establish the relationship between effective sales promotional programmes of Yabatech table waterand customer’s loyalty.
to determine how effective sales promotion strategies of Yabatech table watercan bring about increased market share.
to also establish how Yabatech table watercan use sales promotion to improve its customer service and also achieve customer satisfaction.
To recommend the most appropriate sales promotion programmes that will result in customer loyalty and increased market share.
CHAPTER TWO
LITERATURE REVIEW
Theoretical Basis: Behavioral Learning Theory
Many sales promotion studies have been classified as consumer research or consumer behavior studies. The main emphasis has been on the identification of frequent and infrequent users of promotions (Chandon, 1995). Theory-oriented research has used the perceived risk theory, the economic theory, attribution theory, and psychographics as base theories to identify the possible reasoning behind the level of frequency (usage) of sales promotions. The proposed research applies theoretical concepts from behavior learning theory in an effort to explain purchase behavior, the relationship between different types of sales promotions, and brand loyalty. How different types of sales promotions relate differently to brand loyalty will be investigated. The term behaviorism is rooted in several disciplines—psychology, philosophy, and biology. According to behaviorists, learning can be defined as a relatively permanent change in behavior brought about as a result of experience or practice; thus learning is the result of the application of consequences (Huitt & Hummel, 2006). Behaviorism offers a comprehensive view of learning, and thus, an explanation for behavior. “One of the 13 central ideas of behaviorism is that people are essentially biological organisms, and like other biological organisms, innately capable of responding to the environment in which they live” (Slife & Williams, 1995, p. 25). Behaviorism consists primarily of three elements: stimuli, responses, and reinforcements. The stimulus is a quality that influences an action or response. The reinforcement is a way of making the connection between the stimuli and the response conditioned. When the conditioned behavior is no longer reinforced, extinction occurs instead (Pavlov, 1927). The most relevant types of behavioral learning theories include
- contiguity theory
- classical or respondent conditioning theory
- operant or instrumental conditioning theory
Contiguity Theory
Contiguity theory is based on the work of Guthrie (1930, 1935). It proposes that any stimulus and response connected in time and/or space will tend to be associated (Huitt & Hummel, 1999). The following are the principles of this theory:
- In order for conditioning to occur, the organism must actively respond (i.e., do things).
- Since learning involves the conditioning of specific movements, instruction must present very specific tasks.
- Exposure to many variations in stimulus patterns is desirable in order to produce a generalized response. • The last response in a learning situation should be correct since it is the one that will be associated. According to Guthrie (1930, 1935), in contiguity theory, rewards or punishment play no significant role in learning since they occur after the association between stimulus and response has been made. Since sales promotions are primarily based on rewarding the customer for their purchase, this theory will not be discussed in depth
Classical Conditioning Classical conditioning was the first type of learning to be discovered and studied within the behaviorist tradition (Huitt & Humel, 1999). The major theorist in the development of classical conditioning is Ivan Pavlov. While studying systems of dogs, Pavlov, became intrigued with his observation that dogs deprived of food began to salivate when one of his assistants walked into the room. It was then when he established the laws of classical conditioning (Huitt & Hummel, 1997). “In classical conditioning, behavior is influenced by a stimulus that occurs prior to the behavior and elicits it in a manner that has the appearance of being a reflex” (Teunter, 2002, p. 27). The general model of the theory is comprised of stimulus (S) and response (R). An unconditioned/natural stimulus (US) is repeatedly paired with neutral stimulus (NS): As a result of this pairing, the neutral stimulus (NS) is transformed into a conditioned stimulus (CS), which eventually elicits or causes a conditioned response (CR)
Behavior Modification Perspective (BMP)
Nord and Peter’s (1980), Behavior Modification Perspective (BMP) study, represents one of the most complete studies investigating the applicability of behavioral learning to marketing. According to the researchers, the basic difference between BMP and the psychological perspectives that dominate the marketing literature is that BMP focuses on the manipulation of environmental factors that influence behavior. Thus, a primary benefit of BMP is that it encourages a systematic analysis of purchase and purchase-related behaviors. Also, it indicates specific techniques for modifying and controlling these behaviors based on the manipulation of the external factors. For example, a marketer can enhance the utility of a product through appropriate manipulation of price, distribution, and promotional variables (Rothschild & Gaidis, 1981). Behavioral learning can be used as a behavior modification technique.
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 Sales Promotion: A Tool for Achieving Customers Brand Loyalty. Yabatech table water forms 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 Sales Promotion: A Tool for Achieving Customers Brand Loyalty in Yabatech table water. 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 Sales Promotion: A Tool for Achieving Customers Brand Loyalty
Summary
This study was on Sales Promotion: A Tool for Achieving Customers Brand Loyalty in Yabatech table water. Seven objectives were raised which included; to appraise the sales promotional programmes of Yabatech table water, to identify the defects in the current sales promotional programmes of Yabatech table water, to identify the problems militating against effective sales promotional programmes of Yabatech table water, to establish the relationship between effective sales promotional programmes of Yabatech table water and customer’s loyalty, to determine how effective sales promotion strategies of Yabatech table water can bring about increased market share, to also establish how Yabatech table water can use sales promotion to improve its customer service and also achieve customer satisfaction and to recommend the most appropriate sales promotion programmes that will result in customer loyalty and increased market share. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staffs of Yabatech table water. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Loyal customers tend to spread oral advertising and recommendations for their loyalty associated with friendly approach to product dissemination service provider prejudice oral information to others. Loyal consumers buy most of the company’s convinces or products, additional products and services to less marketing efforts over that ship what (Sin et al., 2006)20. According Khadraoui, Gharbi (2008)21 loyal customers are also more receptive to new services proposals and more are likely to try something new. This is due to a smaller need to perform a variety of actions which relate to new sales process: understanding, the creation of works definition, creation of comfort, competitive proposals and presentations. Loyal customers tend to make frequent similar orders, resulting in less cost and service. This benefits the company and emphasize Khadraoui, Gharbi (2008), assuming that loyal customers serviced price-discrimination is lower, it is easier to be as loyal customers are well aware of the service provider procedures and requires less staff time
Recommendation
Once the promotional influence on behavior is analyzed, attitudinal factors could be identified and results linked together. That should give deeper understanding of consumer behavior and attitudes. In addition to gender and age, other demographics could also be studied along with sales promotion to discover smaller customer segments receptive to this kind of promotion. If such segments were found, marketing efforts could be targeted to increase marketing efficiency. Any other marketing efforts could also be studied with appropriate measurement and segmented to get an idea of tactics that work for different segments
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