CHAPTER
ONE

1.1 BACKGROUND OF THE STUDY

Basically, promotion is first
introduced in the 4Ps of marketing. The four (4) Ps represents the marketing
mix (Product, Price, and Place and Promotion) and the promotional mix is the
important term used to explain the set of tools which businesses use to
communicate the benefit, source and other information about their product to
customers in order to persuade them to purchase the products. These tools are
advertising, publicity, sales promotion and personal selling, (Kotler 2001).

On the other hand consumer
behaviour is another important aspect in the retail business sector. Consumers
are not always normal/simple buyer, (Kotler 2001).

Sales
promotions have become a vital tool for marketers and its importance has increased
significantly over the years. Studies that strive to understand the impact of
sales promotions on consumers’ behavior are very important. Also culture has
profound implications on the psyche of the consumers’ behavior, adaptation to
cultural

values
leads to marketing effectiveness. So to this study, understanding consumer
behavior in a different framework is very useful for the success of an
organization.

Clancy, Jose, & Zacharias
(2000) established a significant relationship between knowledge of it business
environment and with effective and efficient marketing strategy they, firms
must possess a detailed, objective understanding of their own business and the
market in which they operate. Extensive review of literature and focus group
analysis revealed nine marketing mix variables; product (service), pricing,
promotion, information, transaction, distribution, reliability, customer
service and personalization that influence client’s satisfaction. Promotion is
one aspect of marketing mix because the consumers are informed about the new
products and their attributes before they develop positive attitudes toward
them. It is a way to persuade and informing the target market about the product
existence and hence like the product. Sivadas and Baker-Prewitt (2000) are of
the view that to satisfy the customer you will send a word-of-mouth to the
others thereby increasing the demand of the product. Baker (2000), a good
promotion involves product, distribution and price components of marketing. A
business’ total

marketing
communications programme is called the “promotional mix” and consists
of a blend of advertising, personal selling, sales promotion, brand management,
product placement and public relations tools. It has been established that many
companies apply these promotion mix elements in order to increase sales
revenue. Shimp (2003) viewed sales promotion as any incentive used by a
manufacturer to induce the trade or consumers to buy a brand and to encourage
the sales force to aggressively sell it. Retailers also use promotional
incentives to encourage desired behaviours from consumers. Sales promotion is
more short-term oriented and capable of influencing behaviour. Totten &
Block (1994) stated that the term sales promotion refers to many kinds of
selling incentives and techniques intended to produce immediate or short-term
sales effects. Typical sales promotion includes coupons, samples, in-pack
premiums, price-offs, displays, etc. Coupons have been used to produce trial
(Robinson & Carmack 1997).

In view of the above, this
study intends to look into how sales promotion strategies impact on consumer
buying behavior.

1.2 STATEMENT OF THE PROBLEM

Promotion is a key element of
the marketing strategies. It is vital to the marketing process although it is
costly; it helps in informing customers about the right product and services.
The promotional strategies are made up of advertising, sales promotion,
personal selling, publicity and public relations.

The present trend of
marketing today has been shifted towards maintaining consumer patronage and
products loyalty. Stiff competition has however led many businesses into
liquidation. The unfavourable economic conditions, political and social changes
have also produced the same effect. All these could be due to inability of
marketing departments to anticipate, plan and employ effective strategies to
contain the external threats and internal weaknesses of the firm or industry to
boost consumer buying power. As a result of these, sales promotion activities
have become a daily affair in marketing with business adapting different
methods to address one problem or the other for consumers.

1.3
STATEMENT OF RESEARCH QUESTION

In line with above statement
of problems, the following research questions were raised.

1.     
Does sales promotion have a significant impact on consumer buying
decision?

2.  Does sales promotion accelerate the consumer
baying behavior?

3.  Could sales promotion
intervene in consumer buying decision Process?

4.  Does sales promotion contribute positively to
the consumer

patronage of the product?

1.4       OBJECTIVES
OF THE STUDY

From the research questions
presented above, the study has the following objectives:-

1.     
To examine whether sales promotion have significant impact on consumer
buying decision.

2.     
To find out if promotion accelerate the consumer buying behavior.

3.     
To determine whether sales promotion intervene in consumer buying
decision.

4.     
To examine whether sales promotion contribute positively to consumer
patronage of the product.

1.5 RESEARCH HYPOTHESIS

Below are some of the hypotheses formulated to
guide the study.

Ho:   There is no significant impact between sales
promotion and consumer buying decision.

Hi:     There is a significant relationship between
sales promotion and consumer buying decision.

Ho:      Promotion does not accelerate the consumer
buying behavior.

Hi:     Promotion accelerates the consumer buying decision.

Ho:   Sales promotion does not intervene in
consumer buying decision.

Hi:     Sales promotion intervenes in consumer buying decision.

Ho:   There is no significant relationship between sales promotion and
consumer patronage of the product.

Hi:     There is higher significant
relationship between sales promotion and consumer patronage of the product.

1.6 SCOPE AND LIMITATION OF
THE STUDY

According to Evborokhai
(2003), scope is the boundary set for the study. This can be geographical area
to be study, the period the investigator or the researcher wishes to look into
the subject.

The researcher of this study
intends to investigate the relationship between sales promotion and consumer
buying decision in some of the selected Local Government in Zone A of Niger
state. Although all consumers of different product are taking in to
consideration and the researcher did not limit the study to a specific product.

LIMITATION

The researcher is expected to
encounter problems in the course of conducting research in to a problem area,
no matter its nature and scope. Financial constraints were one of the major
factors militating against the smooth conduct of the study.

Time
that is universally accepted to be of essence is also another challenge. And
more so this study is to be conducted along with other academic pursuit [Course
work]. Therefore, the limited time may not permit the researcher to undertake a
more depth study into the areas covered.

1.7 SIGNIFICANCE OF THE
STUDY.

Firstly, this research work
will be of a great assistance to business enterprises owners, to help them
understand the kind of promotional tools to use in other to generate more sales
or to convince more consumers to buy more.

This research work will be of
contribution to the body of existing knowledge on sales promotion and consumer
buying behavior.

1.8 CHAPTER SCHEME

This study is divided in to five (5) chapters as
follows,

Chapter one (1) is the
Introduction, the outline and the basis for the study. It is an exposition on
problems of the study, objective of the study, research hypotheses, scope and
limitation of the study as well as significance of the study.