THE IMPACT OF TRANSPORTATION COST ON CONSUMERS RETAIL GOODS PRICES

ABSTRACT

The impact of transportation cost on consumers retails goods prices (A case study of Gariki Market, Enugu South Local Government Area Enugu State).  The study was carried out to the wholesales and retails.

Data was collected using questionnaire that was distributed to the wholesalers and retailers in the market.

The generated data was analyzed using descriptive statistic tool and the major findings made include the following:

i.               Cost of transportation affects agricultural goods retails than manufactured goods retailers.

ii.              Profit maximization was not always their desire for most dealers goes into business in order to avoid being idle.

TABLE OF CONTENTS

Abstract

Table of Contents

CHAPTER ONE

1.0    Introduction

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the Study

1.4        Research Hypothesis

1.5        Significance or rationale of the study

1.6       Scope and Limitation of the Study

CHAPTER TWO

2.0        Literature Review

CHAPTER THREE: RESEARCH METHODOLOGY

3.1   Research Methodology

3.2    Sources of Data

3.3    Primary Sources of Data

3.4    Population of the Study

3.5    Determination of Sample Size

3.6    Instrument for Data Collection

3.7    Testing for Reliability and Validity

3.8    Administration of Questionnaire

3.9    Method of Data Presentation and Analysis

CHAPTER FOUR: DATA PRESENTATION

4.1    Interpretation of Data

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION S

5.1      Summary of Findings

5.2      Recommendations

5.3      Suggested area for Further Study

5.4      Conclusion

Bibliography

Questionnaire

CHAPTER ONE

1.0   INTRODUCTION

1.2   BACKGROUND OF THE STUDY

In ancient days as life started mankind began to nurse the need for basic necessities of life for physiological satisfaction as food, shelter, safety, among other things.

At first man tried to provide the necessary things to satisfy his needs to engaging in hunting, fishing, and some selected cultivation and planting of food crops and frund shelter among trees, shades as well as applying plants leaves to cover his nakedness.

In the process of advancement man learnt that he could not provide all his needs by himself.

Then the introduction of exchange process  came into existence. It began as an exchange of goods for goods otherwise called trade by barter.

The person who has a particular product in excess of his need of that particular moment would look for somebody that has a need for his product, for an exchange to take place, so the earliest trading or buying and selling practices was done by retailers through the barter process. When a common medium of exchange was inverted, the practices of trade by barter became less relevant in the exchange process.  When trade by barter was in existence buyers and sellers did not take into account, the cost and burden of carrying the goods around n search of a market.

As money is the standard of measurement, the seller when calculating the expenses of their business has to add the cost of transportation of goods from the point of production to the point of consumption.

In the ancient times, man used mostly the beast of burden to carry his product from the point it was produced to the point it will be consumed, transportation these days has become more sophisticated convenient and faster.

Some of the mode of transportation include transport on railway, motor – vehicles on road ship, boats, aircraft and others.

The nature of the product as well as location of market and the type of market will determine the mode of transportation to be used or employed. Transportation is involved in every level of production and distribution unit for a product to reach the final consumers industrial revolution came into place and led to the increase in productive capacity producers.  Most manufacturers and sellers want to enjoy the benefit of what the economy offered by large scale production and distribution.  They also aspire to explore large markets and operate at competition levels.

They have to manage cost and process to be able to operate with efficiency and remain in business.

In the Nigerian case, distribution costs are sometimes viewed as some of the factors that give account for the increasing price of goods.

This study “the impact of transportation cost on consumers retailer goods prices”, a case study of yam prices at the Garriki Market, Awkunanaw Enugu South LGA, Enugu State will discover whether cost of transportation constitute significance proportion of the price of  foods, particularly yams in the Garriki market.

1.2   STATEMENT OF PROBLEM

There has been a continuous increase in the price of goods and services in Nigeria for many years now.  These price increases have been alleged to be as a result of increase in the cost of raw materials, transportation, rent, capital and labour.

Among these variable, this study will help to determine the degree to which cost of transportation affects the consumer goods, particularly.  This study tries to find out the following:

The consumers allege that the increasing in prices is an indication of the profiting attitude of sellers.  On the side of the sellers, they blame increases in prices on the increasing cost of input materials and facilitating agents.  It becomes difficult to determine which of the claims, is the truth about increases.

It has been reported that the increasing price have continue to make many families unable to afford three square meals daily.

The government, labour and consumers have show concern and made some efforts to bring the price increase under control without making any tangible headway.

1.3   OBJECTIVES OF THE STUDY

The activities of retailers in the market affect everybody in the society and mostly consumers are dissatisfied with the yam market

i.         Determine the effects of transportation cost on the prices of consumer goods particularly yam.

ii.        Ascertain, if it is the desire for excessive profit  that influence retailers infixing high prices for goods.

iii.       Find out what can be done to alleviate the problems of increasing prices of goods in the market.

1.4   RESEARCH QUESTIONS

The following research questions are considered:

1.        Does cost of transportation contribute substantially to the price of yams?

2.        Is it desire to make high profit that cause rapid price increase of yams in the market?

3.        Have government efforts at reduction of prices helped to solve the problems of continuous price increase?

4.        Does transportation cost lead to rise in the price of other category goods and service?

5.

1.5   SIGNIFICANCE OF THE STUDY

This study will be of benefit to economic analysis who would want to trace the causes of inflation to the economy.

It will also be of immense use to marketing and management experts who could want some appropriate solutions to some of their marketing problems.

It will be an interesting source of material for academicians who are doing research in retail pricing for yams or for other agricultural based products and for staff.

It will also be a useful piece of information for government in their regulatory policies of price control and transport management.

It will be a guiding tool for business people who are in the distribution sectors because this work will teach them how to control costs and develop a competitive pricing system.

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