THE INFLUENCE OF PRODUCT QUALITY ON BRAND LOYALTY IN NIGERIA (A CASE STUDY OF EKWULOBIA RESIDENCE)
This portion of this research project explains the relevant available document (materials) used in the research project. Review of relevant literature helps the researcher to accurately define the problem and formulate appropriate research questions and hypothesis. Apart from acquainting the researcher on the level of work done in the area, thereby revealing what has been covered and those are covered; it enables the researcher to avoid duplication of previous studies or using methods that have proved futile and unproductive. It is a very important step in the researcher process.
2.1 DEFINITIONS OF A PRODUCT
A Product is any thing that is capable of satisfying human need which can be tangible or intangible. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted. Each product has a useful life after which it needs replacement, and a life cycle after which it has to be re-invented. A product needs to be relevant; the users must have an immediate use for it. A product needs to be functionally able to do what is supposed to, and do it with a good potential users must know why they need to use it, what benefits they can drive from it and what it does difference and also what quality. A product need to be communicated, users and it does to their lives.
2.2 TYPES OF PRODUCT
Basically, product are divided into two which are industrial product and consumer product; product classification are often based on the intend application.
There are situation where by a particular product may serve as industrial product and in another situation as consumer products.
- Industrial products: They are those goods and services meant for production of other goods and services for use in the operation of the business or for resale to industrial users. Industrial product comprises of capital equipment, raw materials, typewriter, air-conditioner and industrial services.
- Consumer products: They are those goods and services purchased by the final consumers for personal use, family or household consumption. Consumer products are in such form that they can be used without further processing. Consumer products are classified into convenience, shopping and specialty products. This classification is essentially based on buyers buying behavior and the shopping efforts consumers expend in buying the product. Shopping efforts refers to those activities like visiting retail stores to compare price and product characteristics, evaluation of product information contained in the sellers catalogues or advertising message.
- Convenience product: They are they those product which consumers purchase with a minimum effort. A minimum effort is required because the consumers have adequate information about the product characteristics prior to shopping. The buyer may not be willing to search for additional information about the product and also may be willing to accept a close substitute convenience product is classified into staple, impulse and emergency items.
- Shopping product: These are product which the buyer makes a considerable effort by going from store to store comparing price, quality, styles, colors, size and suitability. This is so because the buyer lacks sufficient information about the product alternatives and their wants satisfying attributes. This act of product comparison enables him to acquire more knowledge in order to make a purchase decision.
- Specialty products: They are product for which consumers cannot willingly accept substitutes for specialty product, consumer establish brand loyalty. Consumer has sufficient product information and product attributes which make buying decisions less difficult. The consumers are ready to make extra efforts to ensure; it means that consumers cannot make any purchase if their choices are not in stock.
2.3 NEW PRODUCT DEVELOPMENT PROCESS
The new product development process involve several stages which began with idea generation and end with commercialization the series of new product development process include; idea generation, idea screening, concept testing, business analysis, product development, test marketing and commercialization.
- Idea generation: It is systematic search for new product opportunities. The new product idea may not come form both internal and external sources such as the research and development department, the sale force, the technical staff, customer, competitors, government etc. the company generate as may ideas as possible after identifying product categories of interest for every product existing in the market several ideas undergone before the actual ideas finally emanates.
- Idea screening: All the new ideas should be evaluated in terms compatibility with the company’s product policies, product objectives and over all company objectives. The main objectives of idea screening are to evaluate and weed out from further considerations of those unviable, unsuitable poor and unattractively ideas. Basically, new product ideas can be evaluates using certain criteria. The new product ideas must be in technical management and financial means of the company and consideration of the existing marketing potential for the product. There are two types of error and a go error and a drop error.
- A drop error: This occurs when a company dismisses a good idea because of lack of vision of its potential.
- A go error: This occurs when the company lets a poor idea proceed to development and commercialization stage.
- Concept testing: In this stage the consumers are presented with a proposed product in order to measure their attitudes at the early stage of the new product development concept testing may be carried out by asking consumer to react to a picture, written statement on oral description of a product. This enables the form to evaluate the initial attitudes before going into the next more expensive stage.
- Business analysis: It involves a detail review of the financial involvement of the new product introduction. The basis factors that are considered in the analysis includes the cost of producing the new product, time to recoup initial investment risk involved, estimated market potential, strength and weakness of competitors, competitive strategies, average rate of return on investment, use of existing facilities and resource and availability of raw materials considerations of distribution intermediaries etc.
- Product development: This is a stage in the new product development when the idea on a paper either in word description or drawing is converted into a tangible product. It involve product construction, it has to do with the determination of the quality of materials required for the product, method of production, plant capacity alternative size, colors and time requirement for commercialization. Packaging decision includes the colour, alternative, sizes, cost and storage and promotional functions it is expected to perform. Branding decision involve the choice of a brand name, trade mark etc.
- Test marketing: It means placing a fully developed new product in few selected geographical markets and observing it actual performance to determine the feasibility of full-scale commercialization. Apart from observing the behavior of consumers, test marketing is also used to determine the response of channel members towards the new product and also the reaction of competitors. Based on the result of its test, the firm may decide to go into full-scale production, modify the marketing plan, or drop the product.
- Commercialization: This is a stage after the firm has successfully completed test marketing not set to lunch the new product with total marketing plan and full production. During the commercialization stage large sum of money is spent on promotional activities and expansion of production capacity.
2.4 THE PRODUCT LIFE CYCLE
The concept of product life-cycle represents the sales history or a product from the day it is introduced into the market to the day it is removed from the market. The product life-cycle is likened to the arrival of a new baby. The baby begin her life journey as an infant and grows to adolescent stage and from adolescent to a matured adult get old finally dies. Product life cycle attempts to describe product sales, profits, customers and marketing emphasis from its beginning until it is deleted from the market.
Stages of the product life cycle
There are four stages of the product life cycle and these are the introduction, growth, maturity and decline stage.
Introduction stage: This is the stage when a new product is launched into the market and the objective is to generate customer’s interest. The level of sales performance depends on the newness and desirability of the product by the target consumers. During the introduction stage, however the sales growth and level of sales are low. In most cases, the slow sales growth is as a result of customer’s reluctance to change established patterns of behavior delays in selecting the appropriate distribution outlets and unexpected technical problem in the product or in production. This stage is characterized by loss due to high production and marketing costs as well as limited competition. The firm need promotion, especially introductory advertising to pioneer the acceptance of the product by informing the consumers about the new product, it advantages and uses.
Growth stage: The growth stage is characterized by increasing sales volume because the new product now gains wider market acceptance. The competitors begin to enter into the market especially if the profit outlook is attractive. Promotional emphasis begins to shifts from informative to persuasive message. Promotional expenditures become relatively higher than the expenditure on established product. Some firms that adopt a used apple policy will begin to enter the market more and more there by strengthening competition. The term used apple policy deliberately let a policy in which a firm deliberately let other firms develop market for new market and it later comes in during the growth stage.
Maturity stage: During the maturity stage the sales, growth rate declines that is sales will continue to increase at diminishing rate. Many competitors have entered into the market and the market becomes more competitive than ever. In order to withstand competition, companies try to maintain differential, advantages such as offering lower prices, improved product features or extended warranty. Some procedures are marginalized and consequently forced out of the market. Promotion is at its highest level because price reduction is an important competitive weapon at this phase the average – income mass markets make its purchase. A full line of product is made available at many outlets. The key elements of successful marketing at the maturity stage are designing a programme to reach more consumers and to find and promote new uses for the product.
Decline stage: In the decline stage, sales volume falls as new product replaced old ones and consumers show dis- satisfaction with the later. Cost control becomes necessary and many firms fallout of business. Advertising expenditure is drastically reduced in order to control cost. When firms face sales decline, the possible courses of actions of open to them are to reduce the number of product items they make the number of retail outlet and the promotion they use. However, product revival can be achieved by product repositioning, repackaging or other desirable product adjustment. The firms also have the options of remarketing or terminating the product.
2.5 QUALITY PRODUCT EXPLAINED
Product quality is the understanding that the product offered by sellers has more selling points that are not owned by a competitor’s product.
Therefore, companies are trying to focus on quality product and compare them with the product offered view is not the highest quality product if the zoom is not needed and desired by the market.
According to Kotler and Armstrong (2004:283) product quality is the ability to demonstrate a product quality in its function, it include the overall durability, reliability, accuracy, ease of operation and repair products are also other products. Attributes Kotler (2002:272) state other product is characterizes of a product or service that relies on its ability to satisfy customers needs are expressed or implied.
Based on the above opinion can be concluded that product quality are the quality or characteristics of product or service that depend on its ability to demonstrate its function, among others, the overall durability, reliability, accuracy, ease of operation and repair product attributes are also other products to satisfy consumer needs and wants.
2.6 OVERVIEW OF PRODUCT QUALITY AND BRAND LOYALTY
In marketing concept the achievement of the overall organizational goals depends on how best is a company in delivery satisfaction better than the competitors. From the marketing point of view, competitive advantage can be achieved through a series of intermediate objectives such as perceived quality achieving satisfaction greater commitment and confidence on the part of customers as well as final objectives which is to enhance loyalty.
Further more, in order to increase the brand loyalty customer base, it is suggested that an organization needs to create the awareness, reputation, image, brand, extension innovation and perceived quality of its product. Product quality is defined as a means to incorporate features that have a capacity to meet consumers need (wants) and give customer’s satisfaction by improving product (goods) and making them free from any deficiencies or defeats (Dr. Joseph Juran 2013). As mentioned by Garvin (2008) there are dimensions of product quality which include performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality.
In order to increase the brand loyalty customers base, it is suggested that an organization need to create the awareness,, reputation, image reputation, brand extension, innovation and perceived quality of its product. It is also noted relationship with the customer. Best practice organization recognizes that the emotional aspects of their brand are reflected in how customers experience that brand across every touch point. Today’s these opportunities by helping them better understand customer motivating and then deliver on those unique insights through mass customization non-mass communication loyalty towards product brand can be delivered in many ways.
According to Kotler 2011, a brand is a name term, sign, symbol or design or a combination of them intended to identify the goals and services of one sellers or group of sellers and to differentiate them from of the competitors. Alor and Kelter, 1990 believed that loyalty is closely associate with various factors one of the main ones being the experiences of use. Customers may be loyal owning to high witching barriers related to technical emotional or psychological factor which make it costly difficult for the customer to change. In another point of view, customer may also be loyal because they are satisfied with the supplier or product brand, and this want to continue the relationship.
Research has been done and it is noted that there is an effect of product quality and after sales service, on a consumer intensions to repurchase vehicles from the original dealer. A good quality product creates customers delight. In turn, delighted customer remain loyal and talk favorably to others above the company and its product studies shows big differences in the loyalty of customers who are less satisfied somewhat satisfied and completely satisfied. Even a slight drop from completely satisfaction can create an enormous drop in loyalty. Several researchers have been done and it is as noted that there are positive relationship between performance quality and customer satisfaction.
However, the correlation differs between once product and service to another. According to a researcher constructed by Crown, (2005) who examined for business, found strong correlation between satisfaction and loyalty to fast food and dry cleaning.
However, satisfaction and loyalty is to be dependent on the characteristics of the total product and services itself. It was discovered in the previous literature that brand reputation to have a strong effect on loyalty. The effect of customer satisfaction on loyalty appears to be contingent and it was suggested that satisfaction will only have a direct effect on loyalty when customers are able to evaluate product quality through their experienced with the product and service itself. As stated and mentioned by Rust and Oliver (2006) who suggested that customer’s satisfaction or dissatisfaction emerges as a response to a single or prolonged set of service encounters. It also mentioned that satisfaction is “Post consumption experience which compare perceived quality with expected quality, whereas service quality refers to a global evaluation of firm’s service delivery system.
