EFFECT OF DIGITAL SYNERGY ON CONSUMER PATRONAGE OF PRODUCTS – Complete Project Material

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CHAPTER ONE

INTRODUCTION

1.1     
Background of the study

Customer satisfaction has long been recognized
in marketing thought and practice as a central concept as well as an important
goal of all business activities (Anderson, Fornell, and Lehmann 1994). In fact,
there are at least two different conceptualizations of customer satisfaction,
one is transaction-specific and other is cumulative. Transaction- specific
satisfaction provides specific diagnostic information about a particular
product or service encounter (Lam et al. 2004). In contrast, cumulative customer
satisfaction is an overall evaluation based on the total purchase and
consumption experiences with a product or service overtime (Anderson, Fornell,
and Lehmann 1994), which is more fundamental and useful than transaction –
specific consumer satisfaction in predicting a consumer’s subsequent behavior
and a firm’s past, present and future performance.There are several media
advertisements which are influencing Gen Y customers in making a purchase
decision. Almost everyone grows up in the world which is flooded with the mass
media e.g. television, advertising, films, videos, billboards, magazines,
movies, music, newspapers, and internet. Besides making up over 40 per cent of
the country’s population, Nigerians aged 30 and below are the ones who will
shape the country’s social, economic and political landscape in the future Nigerian
Communication and Multimedia Commission (NCMCIn Africa alone, there are about
660 million people in Gen Y category, which is also known as the millennial
generation. Worldwide, the Gen Y population is estimated at 2 billion. The
sheer size of the Gen Y population and their spending power require companies,
producers, marketers and advertisers to reconsider their business and marketing
models. The distinct characteristics of this generation call for social and
political entities to revisit their existing approaches.We are in a very
dynamic and complex world. The business environment is becoming sophisticated
day by day and as such, decision-making is becoming more and more challenging and
risky. Business organizations are failing due to poor decisions. Investors are
losing their money and are unhappy. They are being discouraged and this is
quite unhealthy to the economy. In some other instances, organizations are
springing up in great numbers; some are successful in the marketing of their
products and services, while others are still akin to the barber’s chair
syndrome where all is motion but no movement; struggling to reach their target
audience. Consumers are also faced with the challenge of choice making due to
indecisiveness, skepticism, indifference and confusion which are among the key
sales killers in business world.Advertising is any paid form of non-personal
communication about an organization or its product to a target audience through
a mass/broadcast medium by an identified sponsor. It should be observed that
for any promotional activity to be called advertisement it must be paid for. In
the real sense, it is the method used by companies for creating awareness of
their products, as well as making new products known to the new and potential
consumers. This thesis however, centers on the impact of advertising on the
sales volume of a product. This work will shed light on how digital synergy can
really affect a consumer’s buying decisions in a growing economy like that of
Nigeria and how successful advertising can keep businesses going even in the
midst a tough competition. More so, advertising as a promotional tool also
tends to remind, reassure and influence the decisions of the consumers because
an advertisement itself enlightens, educates, and persuades consumers on their
acceptability of the product offering. Advertisement in such a media as print
(newspaper, magazines, billboards, flyers) or broadcast (radio, television)
typically consist of pictures, headlines, information about the product and
occasionally a response coupon. Broadcast advertisement on the other hand
consists of an audio or video narrative that can range from 15seconds spots to
longer segments known as infomercials, which generally last 30 to 60 minutes.
(Busari 2002)

1.2
STATEMENT OF THE PROBLEM

Consumer perception challenge is the first and
greatest hurdle that advertisers must cross. Perception guides all activities
of the consumer from the people he associates with to the product he buys. In
the business world, it has always been what people say about a product or
service and not what the marketer says. Especially in this Gen Y consumer,
marketing and advertisement has taken a different dimension from what it use to
be to personified approach, it is against this backdrop that the researcher
intends to investigate the effect of digital synergy on consumers patronage of
products.

1.3     
OBJECTIVE OF THE STUDY

The main objective of this study is to
ascertain the effect of digital synergy on consumers patronage of products, but
specific objectives include:

i)            
To
investigate the impact of digital synergy on consumer choice of product
patronage

ii)          
To
investigate the role of digital advertising on choice of the consumer

iii)         
To ascertain
if there is any relationship between digital synergy and consumers patronage of
a product in Nigeria

iv)        
To
investigate the effect of digital synergy on the sales volume of an
organization

1.4
RESEARCH QUESTION   

For the successful completion of the study, the
following research questions were formulated by the researcher;

i)            
Does digital
synergy has any impact on consumers choice of product patronage?

ii)          
Does digital
advertising play any role on the choice of consumer?

iii)         
Is there any
relationship between digital synergy and consumers patronage of a product?

iv)        
Does digital synergy has any effect on the
sales volume of an organization?

1.5     
SIGNIFICANCE
OF THE STUDY

It
is believed that at the completion of the study, the findings will be of great
importance to the marketing manager in formulation of policy that will enhanced
effective implementation of marketing strategy which will aid increase in sales
volume, the study will also be useful to the sales promotion team as the study
seek to explore the effectiveness of digital synergy in relation to sales
volume, the study will also be of importance to researcher who intend to embark
on a similar study as the study will serve as a reference point to them,
finally, the study will be of great importance to the marketing profession as
the study will contribute to the pool of existing literature in the subject
matter

1.6     
SCOPE
AND LIMITATION OF THE STUDY

The
scope of the study covers effect of digital synergy on consumers patronage of
products, but in the cause of the study, there were some factors which militate
against the scope of the study;

a)     AVAILABILITY
OF RESEARCH MATERIAL:
The research material available to the
researcher is insufficient, thereby limiting the study 

b)     TIME:
The time frame allocated to the study does not enhance wider coverage as the
researcher has to combine other academic activities and examinations with the
study.

c)     FINANCE:
The finance available for the research work does not allow for wider coverage
as resources are very limited as the researcher has other academic bills to
cover.

1.7 DEFINITION OF TERMS

Digital synergy

Digital
Synergy is a premier virtual digital marketing agency successfully serving
clients all across the country.  Since 1997, we’ve delivered web
marketing solutions for all types of businesses and markets, and we always
ensure that our clients receive the best in digital marketing services.

Marketing

Marketing is the study and management of exchange relationships. Marketing is used to
create, keep and satisfy the customer. With the customer as the focus of its
activities, it can be concluded that Marketing is one of the premier components
of Business Management – the other being Innovation

Sales volume

Sales volume is the number of
units sold within a reporting period. This figure is monitored by investors to
see if a business is expanding or contracting. Within a business, sales volume may be monitored at
the level of the product, product line, customer, subsidiary, or sales region

1.8     
ORGANIZATION
OF THE STUDY

This
research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview,
of the study), statement of problem, objectives of the study, research
question, significance or the study, research methodology, definition of terms
and historical background of the study. Chapter two highlight the theoretical
framework on which the study its based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the
study. Chapter four concentrate on the data collection and analysis and
presentation of finding.  Chapter five
gives summary, conclusion, and recommendations made of the study.


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