THE PROMOTIONAL ACTIVITIES AND CONSUMER BEHAVIOR IN UGANDA CLAYS LIMITED AT KAJJANSI ENTEBBE ROAD
BEKUNDA HADSON MWINE
BMM/11329/61/DU
ARESEARCH PROJECT SUBMITED IN PARTIAL FULFILMENT FOR THE AWARD OF ADEGREE IN MARKETING AND MANAGEMENT OF KAMPALA INTERNATIAL UNIVERSITY (KIU)
MAY2009 DECLARATION
I Bekunda Hadson Mwine, a student of Kampala International University in the school of business and management, declare that this research project is original and has not been submitted in any institution for the award of a diploma or degree.
~~•t+ · - Signed: ...... ( ......
BEKUNDA HADSON MWINE BMM/11329/61/DU (CANDIDATE)
Date: ...... 0. \lb~.I?:~ ...... APPROVAL
This research project by Bekunda Hadson Mwine which was carried out under the title: PROMOTIONAL ACTIVITIES AND CONSUMER BEHAVIOR IN UGANDA CLAYS LIMITED AT KAJJANSI ENTEBBE ROAD' has been under my supervision and is now ready for submission to Kampala International University with my approval.
MR. SSENDAGIRE HASSAN WASSWA
(SUPERVISOR).
Date ...... ~\\~ \~'t ......
11 DEDICATION
I dedicate this research to my loving daddy Mr. Jackson Torogo and my dearest late Mummy Mrs. Niwamanya Winnie who labored tirelessly to provide me with descent education though their moral and financial support and has also instilled in me the nobility of honesty and fairness. These virtues will always remain my source of inspiration. May Almighty God bless them abundantly so that daddy may live to see the fruits of his blood.
Ill ACKNOWLEDGEMENT
The completion of my studies at Kampala International University could not have been possible without the support of some individuals: in a special way, I would like to express my gratitude to my daddy Mr. Jackson Torogo for financing my education in this institution.
I also feel indebted to my supervisor Mr. Ssendagire Hassan Wasswa whose support, guidance and cooperation contributed immensely to the successful completion of this work. I am also grateful for his keen supervision and alls the effort he exerted to ensure that this work becomes a success.
My sincere gratitude goes to the staff and customers of Uganda Clays Limited especially, Mr. Joseph Kitone and Mr. Kaggwa: Andrew (sales department UCL), for their corporation and for providing me with the data that I needed in compiling this projects, may God bless you all.
I also thank my loving and caring sisters: Joseline, Apophia, Lilian and Patience for supp01iing me ideally during this period of study, their constant encouragement, moral support and advice that enabled me successfully finish this work.
In a special way I would like to thank my favorite friends notably: Mr. Gitau, Mr. Edwine, Mr. Innocent and Miss Apio Esther and all BMM class among others for their constant support and encouragement thought my study at Kampala international university, I appreciate your assistance.
Lastly, I would like to thank my little brother Kennedy and my elder brothers Benson and Naboth and the entire family of my daddy for supporting me both financially and morally and for the constant love and kindness they showed me though out. I really appreciate and may the Lord grant you more.
iv ABSTRACT
The researcher chose this topic of the study because:
Companies and organizations are responsible for values, behaviors and decisions in consumption of their products and services through their promotional campaigns. The way these consumption behaviors are promoted and influenced has a major effect in the individuals who are at times the ultimate consumers of their products and services. It is in this outrageous background of view that promotional activities can be planed and scheduled no only intending to influence and persuade consumers but also consumers to benefit from quality products, reduced prices and above all customer care.
The topic of the study was to understand promotional activities and consumer behaviors in Uganda Clays Limited. The specific objectives of the study were to examine the effects of the media advertizing on consumer behavior, to assess the effects of sales promotion on consumer behaviour and to evaluate the effects of direct marketing on consumer behaviour on Uganda Clays Limited.
The data collected was both primary and secondary. The researcher used questionnaires and interviews as the research instruments. Closed ended questions were used to obtain data from the respondents. The sample size was of 64 respondents chosen through simple random sampling method. The respondents comprised of staff, from the head office at Kajjansi, 14 kilometers on Entebbe road from the main city Kampala and customers were chosen by the same method as they were coming to buy building materials at the main factory for the month of may, 2009.
The data was then analyzed using percentiles as a statistical method. The information was presented in the form of table. The results obtained showed that promotional activities do tremendously a great role in determining and affecting consumer behaviors in the consumption of goods and services. This was evident since the data obtained exposed a full array of multiple realities that showed how promotional activities are very vital and should be embraced and used by the management of Uganda Clays Limited. At the end of the day, it leads to good reputation, image building, and increase in product awareness which breads the company's success growth
V and development to an extent of winning of the best company of the year 2008 by the Uganda Investment Authority (UIA) (Godwin, 2008)
Vl TABLE OF CONTENTS
DECLARATION ...... i APPROVAL ...... ii DEDICATION ...... iii ACKNOWLEDGEMENT ...... iv ABSTRACT ...... v TABLE OF CONTENTS ...... vii List of Tables ...... ix LIST OF ABBRIVIATIONS ...... x CHAPTER ONE ...... :...... 1 INTRODUCTION ...... 1 1.0 Background of the Study ...... I I. I Problem Statement ...... 3 1.2 Purpose of the Study: ...... 4 1.3 Specific Objectives: ...... 4 1.4 Research Questions: ...... 4 1.5 The Scope the Study: ...... 5 Geographical Scope: ...... 5 1.6 Significance of the Study: ...... 5 1.7 The Conceptual Frame work: ...... 7 Independent Variable Dependent Variable ...... 7 CHAPTER TWO ...... 9 LITERATURE REVIEW ...... 9 2.0 Introduction: ...... 9 2.1 Effects of Media Advertising on consumer behavior ...... 9 2.2 Effects of sales promotion on consumer behavior...... 11 2.3 Effects of Direct Marketing on Consumer Behavior ...... 13 2.4 Overview of Consumer Behavior ...... 13 CHAPTER THREE ...... 20 METHODOLOGY ...... 20 3.0 Introduction: ...... 20 3.1 Research Design: ...... 20 3.2 Study Area: ...... 20
Vll 3.3 Study Population: ...... 21 3.4 Sample Size: ...... 21 3.5 Sampling Techniques: ...... 21 3.6 Sources of Data: ...... 22 3.7 Methods of Data collection: ...... 22 3.8 Data quality Management: ...... 23 3.9 Data processing and Analysis: ...... 23 CAHPTER FOUR ...... 25 PRESENATATION OF DATA ...... 25 4.0 Introduction ...... 25 4.1 The first objective of this study was to examine the effects of media advertizing on consumer behaviour ...... 25 4.2 To assess the effects of sales promotion on consumer behavior ...... 28 4.3 The last objective to this study was to evaluate the effects of direct marketing on consumer behaviour ...... 32 CHAPTER FIVE ...... 36 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ...... 36 5.0 Introduction ...... 36 5.1 Summary ...... 36 5.2 Conclusion ...... 39 5.3 Recommendations ...... 40 REFERENCES: ...... xi APPENDIX A ...... xiii RESEARCH QUESTIONNAIRES: ...... xiii APPENDIX B ...... xvi BUDGET ESTIMATE ...... xvi APPENDIX C ...... xvii RESEARCH TIME TABLE ...... xvii
Vlll List of Tables
Table 4.1 a Radio advertizing to generate leads in UCL ...... 26
Table 4.1 b use of magazine advertizing to promote customer loyalty of UCL ...... 26
Table 4.1 c Lead generation as a result of placed adverts on television in UCL...... 27
Table 4.ld Influence of customers on where to buy by the UCL adverts on radio ...... 28
Table 4.2a Using coupons to promote sales in UCL ...... 29
Table 4.2b Coupon promotion to influence where to buy building materials in UCL...... 29
Table 4.2c Use of samples to promote products in UCL...... 30
Table 4.2.d Trade promotions to bring about lead generations in UCL...... 30
Table 4.2e Using coupons to improve customer relationship with the company [UCL] .... 31
Table 4.3 a Using of telephone calls to influence customers' loyalty in UCL ...... 32
Table 4.3 b Mailing messages in improving relationship building between customer and their
provider in UCL...... 33
Table 4.3c Using electronic mailing in bringing about lead generation in UCL...... 34
Table 4.3e Catalogue mailing to improve customer loyalty in UCL ...... 35
Table 4.3d Calling by customers to order for products in UCL...... 35
!X LIST OF ABBRIVIATIONS
UCL: Uganda Clays Limited
USE: Uganda Stock Exchange
UIA: Uganda Investment Authority
Tnt,=,,or:::ttPil M:::1rh2:tino- l,omm11nication I!v!C: e, • 0
UG: Uganda.
X CHAPTERONE INTRODUCTION
1. 0 Background of the Study
The study examined promotional activities and consumer behavior in Uganda Clays Limited, specifically to one of the four elements of the marketing mix. William Stanton (2001) which is promotion. According to Kotler (2003) argues that _many companies and organizations are concerned with promotional activities to influence the levels of consumer buying behaviors and determine their marketing strategies as one of the most efficient means of getting their products and services to the market.
According to Berkowitz (1986), asserts that all organizations and companies whether product or service oriented have a major concern and challenge of how to achieve consumer or customer loyalty through their promotional activities. This means giving a close attention on how consumers can best be inspired through such promotional campaigns and importantly the work of consumer sensitivity.
Promotional activities, according to Shemekar (2001) are processes of marketing communication involving information distribution, persuasion and influence, to help the sale of goods and services. Promotion according to George E. Belch (1993), defines promotion as the function of informing, persuading and influencing the consumer purchase decisions in the buying and selling of goods and services. Generally the term promotional activities according to Shemekar (2001), is the combination of one or more of the promotional elements the firm chooses to use.
Characteristics. Promotional activities were characterized by media advertising, sales promotion and direct marketing. Media advertising according to Batra (2001), refers to the type of medium that includes the use of television radio, newspapers and billboards. Sales promotion according to Raymond (1999), refer to the marketing promotion tool that includes communications activities that provide extra value or incentive to ultimate consumers wholesalers, retailers, or other organizational customers and that can stimulate immediate sales.
Direct marketing according to Etzel ( 1997), refer to the process of communicating directly with target customers to encourage response by telephone, mail, electronic means, or personal visit.
Consumer behavior, according to Schiffman (2003), is the study of how individuals make decisions to spend their available resources (time, money, effort on consumption related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it. In other words, according to Kanuk (1998), consumer behavior is defined as the process of how individuals act in certain consumption related ways and with learning what internal and external influences impel them to act as they do. In a clear sense, consumer behavior generating refers to the combination of all the influences and characteristics of individuals in which it may result to behave in response to stimuli Pavlov (I 890).
Characteristics. Consumer behavior was characterized by customer loyalty, relationship building and lead generation. Customer loyalty, according to Leslie (1990), is defined as a stable and growing market share that is a major intangible asset reflected in the purchase of a company's product. In other words customer loyalty refers to the life time value and benefit of a customer to a given company brand in a specific period of time Leon (200 I).
Relationship building, according to Laforge (1999), is defined as a combination of factors that are involved in initial stages of the new product development process, such as research and development, design, engineering, sales and marketing.
Media advertising, according to Kanuk (1998), is the decision that provides the immediate environment for the advertisement. In this regard such decisions are meant to stimulate the
2 The study of promotional activities in relation to consumer behavior according to Kurtz (2002), underlies distinguished implications that it may lead to problems to companies and organization if at all it is not budgeted and scheduled thus; it may lead to customer switching to other provider or competitors, huge expenses to the company, low turnovers and price cuts hence giving the company setbacks to its growth and developments.
Promotional activities and consumer behavior in Uganda Clays Limited will be conducted at Kajjansi, Entebbe road ranging from the period 2003 to 2008 with the aim of examining the effects of sales promotion on consumer behavior effects of media advertising on consumer behavior and effects of direct marketing on consumer behavior.
1.2 Purpose of the Study:
The purpose of the study was to establish the effects of the promotional activities on consumer behavior in the manufacturing industries such as UCL. Promotional activities were characterized by media advertising, sales promotion and direct marketing while consumer behavior will be characterized by customer loyalty, relationship building, and lead generation.
1.3Specific Objectives:
The study under the topic promotional activities and consumer behavior, seeks to address the following objectives.
(i) To examine the effects of media advertising on consumer behavior of Uganda clays limited.
(ii) To assess the effects of sales promotion on consumer behavior.
(iii) To evaluate the effects of direct marketing on consumer behavior of Uganda clays limited.
1.4 Research Questions:
(i) What are the effects of media advertising in companies and organizations?
(ii) What are the effects of sales promotion?
(iii) What are the effects of direct marketing in organizations?
4 levels of individuals in their purchasing responses hence measuring the cues and traits of consumers.
According to Kotler (2003), sales promotion as the tools of sales other than coupons, samples and premiums that stimulate consumer purchasing and dealer effectiveness that include display, trade shows and expositions. Hence sales promotion bridges a fundamental link to the influence of consumer buying decision making.
Direct Marketing, according to Boone (2002), is the activity that includes; sales letters, postcards, leaflets, telemarketing, catalogs and leaflets that . are periodical published by organizations to initiate responses to consumers about products and services. The impmiance of direct marketing to consumers come from selecting, intensive coverage, speed and formal flexibility hence creating completeness of information that will enable individuals to react positively or negatively to the promoted products and services.
According to Godwin (2008), argues that Uganda Clays Limited might experience severe expenses on promotional campaigns since the company is expanding internationally. UCL has been in operation for over 50 years and in one way or the other, from all that long, its promotional mix that it used has been a setback not until 3 years back the company started to revive its market share. However, a lot is still desired to study why the company has for any years been not performing well in the sell of its goods and services.
1.1 Problem Statement
Promotional activities according to Shemaker (200 I) being the process of marketing communication involving information distribution, persuasion and influence to help in the sale of goods and services, is imperative to the study of consumer behavior in ways such as; it increases revenue for the companies, creates product awareness, image building, company reputation and public relations as a whole.
3 1.5 The Scope the Study:
The study was limited to the period of five years ranging from 2003 to 2008, because Uganda clays limited had started to witness tremendous in sales returns a result of reviving to solving the effects of promotional activities to the purchasing responses to its consumers.
Geographical Scope:
The study was conducted at Kajjansi town, Entebbe road at the location of the factory, l 4kilometres Entebbe road in Kampala city. However other study areas will be with in and around Kampala and Wakiso districts which will help the researcher to at least cover all UCL projects for accurate data observation and collection.
1.6 Significance of the Study:
Although the study was conducted in Kampala, Kajjansi suburb, it is hoped that the study will be of importance to both scholars and practitioners in the following ways;
• To the management of Uganda clays limited and its partners, the findings of the study will give deeper insight into the effects of promotional activities on consumer behavior and will indicate the action required in order to improve on the buying behavior and decisions.
• The results obtained from the study will enable the public to ascertain the effects of promotion on their personality responses to wards the UCL's products and this will address the questions ofprodu(;t quality, price, and their channels of distribution.
• The research will also act as a basis of reference upon which further research on promotional activities and consumer behavior may be made.
• The results of this study will try to help the policy makers to anticipate the roles of promotional tools in the companies' marketing campaigns, which will enable consumer protection against false persuasions.
5 • The findings also will try to help the government to come up with clear promotional policies to the marketers which will improve on consumer buying behaviors in most manufacturing industries such as UCL.
• The study will add knowledge on the existing literature of future researchers.
6 1.7 The Conceptual Frame work:
Independent Variable Dependent Variable
Promotional activities Consumer behavior
Media advertising Customer Loyalty Sales promotion Relationship building Direct marketing Lead generation
Source: Researcher, 2009.
Promotional activities, according to Stanton (200 I), is also defined as the process of marketing communication involving information distribution, persuasion, and influence, to help the sale of goods and services. It is characterized by media advertising, sales promotion, and direct marketing as for the purpose of this study. Its importance to the business arena, is to create awareness of products and services to the customers, it also helps in increasing sales returns and leads to image building of companies and organizations. Therefore, promotional activities have a major role of influencing consumers in their buying decisions as one of the important marketing strategies marketers use to persuade, influence, and communicate to their targeted audiences.
Media advertising, according to Batra (1999), is the activity that involves the use of radio, television, and magazines that provide the immediate environment for the advertisements. Its importance is to help marketers to reach a wider coverage of their targeted segments. From the conceptual Frame work, media advertising will facilitate customer loyalty since they get to know about the products and taste the quality, price and usage which in turn retain such customers to the product producer or service provider, according to the conceptual frame work, media advertising in relation to customer loyalty a combination of the two leads to influence of consumer behavior.
Sales promotion according to Ingram (2004), is the combination of activities such as coupons, premiums, samples, point-of-purchase displays, and rabbets. Its importance is to stimulate
7 product interest, trail, or purchase. Hence sales promotion according to the conceptual frame work, it leads to relationship building where customers are exposed to enjoy discounts, gifts, such as buy-one-and-get-one-free, which in turn brings customer consistency in buying behavior.
Direct marketing, according to Bearden (2004), is a process of communicating directly with target customers to encourage responses by use of telephone, mail, and electronic means or personal visits. Its importance is the use of precise means to identify members of the target audience and compiling customers or prospect data bases with postal numbers, e-mail addresses, telephone numbers, account numbers, and fax numbers. Therefore, direct marketing according to the conceptual frame work, leads to high levels of lead generation where new products can be tested and new customers targeted. Hence the level of consumer behavior becomes the immediate response to both new and loyal customers.
8 CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction:
This chapter was about the review of literature related to the promotional activities and consumer behavior. It focuses on the effects of media advertising, sales promotion and direct marketing on consumer behavior.
2.1 Effects of Media Advertising un consumer behavior
According to Beardern (2004), Media planning involves decisions on media class (Television, Magazines) and media vehicles (specific television programs, specific magazines). Marketers must then decide on media schedules (frequency, timing of ads). To Thomas (2001) argues that there are seven classes of advertising outdoor, transit and direct mail. There are effects of these, and the effectiveness or defectiveness of each approach depends on its capabilities and incapabilieis. However, these media advertising tools are useful in building brand awareness, but a lot has remained desirable as a result of various effects that they course to consumer buying responses.
Consumer manipulation. According to Raymond (I 995), argues that some critics charge that media advertising stimulates needs and wants by creating unrealistic ideals about appearance and social identity. And indeed students of marketing agree that advertising is intended to influence buyer behavior.
Deceptive or misleading. Ingram (200 I), pointed out that the federal trade commission (FTC), which monitors market place abuses, prohibits advertising messages that deceive consumers by presenting false claims, by omitting relevant information or by giving misleading impressions that result in faulty decisions.
Intrusive. Laforge (1998) argued that many people are irritated by unwelcome advertising messages that threaten their right to privacy. Most observers agree the market place is cluttered
9 with advertising messages and that anyone has limited ability to influence consumers. Yet recognition of this limitation only reinforces pressures to increase and repetition.
Harmful products; Bearden (2004), asserted that the use of media advertising to market harmful products such as cigarettes, and alcohol, is frequently criticized. Regulations, both legislated and self imposed, exist, but critics often argue for further restrictions on such advertising. In markets without restriction, tobacco advertisers frequently connect smoking with glamour, excitement and the great outdoor hence such come as a result of media advertising that may end up being a negative implication to consumers.
Emotional Appeals; According to Myers (I 996), argues that the communication of factual information about a product's primary function is usually accepted as being of value to the consumer. However, when adve1iising utilizes appeals or associations that go beyond such a basic communication task, the charge of manipulation via emotional appeals is raised.
Advertising to children. According to Batra (1999), advertising to children has been a major focus of public policy and concern for many years. In (1977), a CARU (children's advertising review unit) staff report recommended that all television adve1iising be banned for any product that is directed to or seen by audiences composed of a significant proportion of children who are too young to understand the selling purpose of advertising. Hence such a case broadly gives a view on how media adverts can be of negative effective to the consumer's lives.
According to Rajeev (200 I), media advertising effects on values and lifestyles of consumers by its very nature receives wide exposure. Furthermore, in presumable has an effect on what people buy and thus on their activities. Because of this exposure and because of its role as a persuasive vehicle. It is argued that it has impact on the values and lifestyles of society and that this impact has its negative as well as positive side.
Aaker (1996), pointed out the effect of media ads to materialism. He defined materialism as the tendency to give undue importance to material interests. Presumably, there is a corresponding
10 lessening of importance to non-materialism interests such as love, freedom, and intellectual pursuits.
Buer and Greyser (2000) argue however, that although people do spend their resources on material things, they do so they are persuaded and influenced to make such illusive decisions due to media advertisements.
2.2 Effects of sales promotion on consumer behavior.
According to John G. (2002), sales promotions are of two broad types. Consumer promotions such as coupons, sampling premiums, sweepstakes, low-cost financing deals and rebates and trade promotions, such as slotting allowances for featuring the product in retail advertising, display and merchandising allowances and the like. They are used to get consumers to try or to repurchase the brand and to get the retail trade to carry and to "push" the brand. However sales promotion has in one way or the other had effects to the consumers and thus;
Discrimination. According to Myers (1996), argues that sales promotions are also used by manufacturers to discriminate between different segments of consumers for example only those consumers who have the time to clip coupons will clip and use them and obtain a lower price for themselves while those consumers who are time pressed will not use coupons (and will end up paying a higher price).
Bearden (2004 ), asserts that consumers sales promotion, with techniques such as coupons and rebates, helps pull a product through the channel of distribution for a short possible period of time. This will in the later stages abandon consumers who may have tasted the product better hence such as tastes lead to customer switch to other products of a different competitor.
Decrease consume inventory and consumption Laforge (1998), argued that sales promotion sometimes discourages consumers to increase their inventory or consumption to buy more than they would in the absence of a special incentive such as allowances, discounts in prices. The idea is that people tend to consume greater quantities of a product if it is on hand. For instance
11 buy one-get-one-free may sometimes influence people to buy more than they are required hence causing deficiency in their incomes.
Discourages trial; Bruce (2002), special report on consumer journal, argued that marketers commonly use sales promotion to stimulate product trail to get consumers try a product. This is particularly so for newly introduced or improved products. Hence the decision to buy such new products entails risk and of which fake products are dedicated to consumers who in turn fail to repurchase the product.
According to Kolter (200 I), price deals as to sales promotion courses a fundamental change in individuals lifestyles where consumers may resort to luxuriously over spend their resources to newly promoted brands due to price-pack deals that offer consumers something extra through the packaging itself. Hence such changes may course financial setbacks to some families' hence discouraging retention.
According to Ingram (2004), argues that although sales promotion can accomplish a variety of objectives, there are certain things it cannot do. Sales promotion can help boost sales, but it typically cannot reverse a genuine declining sales trend. If sales are slipping, marketers should evaluate and perhaps change the products' marketing strategy. Attempting to use sales promotion as a quick fix may temporarily postpone worsening of the problem, but it cannot eliminate it.
Shicffman (2001) argued that beyond sales promotion inability to improve a brand's image sales promotion may even weaken the brand image. As a sales promotion develops a life of its own, perceived product differentiation can be blurred, consumers may come to see the deal as more important than any other real or perceived brand difference. In essence buyers reach a point at which they fail to see any differences among brands and the marketer has unwillingly created sh01t-run oriented behavior.
12 2.3 Effects of Direct Marketing on Consumer Behavior
Michael Etzel (1997) argues that direct marketing communications have two primary objectives that is to establish relationships by soliciting a direct and immediate response from prospects of customers, and to maintain and enhance customer relationships. Whether those relationships have been established by direct marketing communications or by some other means. However, direct marketing has gradual effects on how consumer reacts to their buying decisions.
Invasion of privacy; Stem Louis (1999), a consumer database become more sophisticated, there is growing concern about invasion of_privacy. According to his survey conducted by Harris_ Interactive (1998), consumers do not trust companies to protect their private information and a majority feels that an independent third party should verify a company's privacy policies. This effect largely affects consumers in giving their information about their lives and product specifications which is deprived by mail replies.
Deceptive practices. According to Coughlan (2003), argues that attempts at telemarketing legislation have increased at least in part to address numerous telemarketing abuses, consumers' exhibit high levels of trust in sellers when they order and pay for a product sight unseen. Direct response marketers rely on this trust. Yet certain direct marketing activities have damaged that trust.
2.4 Overview of Consumer Behavior
According to Kolter (200 I), Consumer behavior is affected by lots of variables, ranging from personal motivation, needs, attitudes and values, personality characteristics, social economic and cultural back ground, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as whole.
According to Bruce (2007), the combination of these various factors produce a difference on each one of us as manifested in our different behavior as consumers. You may think that the best way of utilizing your annual is to have a Christmas vacation, but your wife thinks it is
13 wisest to invest in jewellery, while your colleagues consider buying shares as the best way of spending saving. Thus you would find that each person has his way of spending. Thus you would find that person has his other own standards of judgments and aspect of spending his role as consumer. But at the some time, under lying the individual differences are similarities which help explain behavior of specific types or groups of people. It is these similarities which make it possible for us to classify and analyze the behavior of individual consumer. Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities which operate across different types of people and influence their behavior; we can classify the influences of family, friends, and leaders, social class to which the.consumer belongs.
Consumer Demographics (personal factors) Demographics are the vital statistics the describes a population. Marketers make use of variety of demographic characteristics including age, gender, family life style or cycle, education, income, and ethnicity. They are imp01iant to marketers because they are closely related to the demand or many products. Changes in demographics signal the rise of others. Some not w01ihy demographic developments and their significance for marketers are described below.
Age: According to Bruce Walker (2001), the marketing implications of this aging trend are substantial. Many companies recognize that 50 and over group possesses one half of the discretionary income and more than three quaiiers of the total financial asserts in the U. S. thus investment firms such Uganda Clays Limited, are especially targeting this segment of the population in their promotional campaigns.
Family life cycle: Michael Etzel (1997) argues that variaus forms of families can take over time, are major effects and determinants of consumer behavior. A single parent family ( divorced, widowed, or never married) with dependant children faces social and economic problems quite different from those of two parent family. Young married couples with no children typically devote large shares of their income to clothing, autos, and recreation. When children start arriving, expenditure patterns shift as many young families buy and furnish a home. Fainilies with teenagers find larger portions of the budget going for food, clothing and education needs.
14 Education and income: According to William Stanton (1994), education has a significant impact on income. In spite of a considerable increase in disposable income in the past 30 years, 37million people (about 14% of the population) live below government defined poverty level. And the situation may get worse. It was recently reported that 90million Ugandans over age 16 lack the skills necessary to hold a moderately demanding job. Besides impacting potential, the skill deficitiencies are also likely to affect these consumers ability to perform such marketing oriented tasks reading package labels, understanding advertising messages, and following product directions.
Race and ethnicity: Bruce (2001) also argues that segmenting market based on ethnicity presents an interesting challenge. On one hand a company must understand ethnic groups buying behavior and motivation. Studies by the Bureau of labor statistics and private research firms show that there some distinct differences among the races Hence Uganda Clays should analyze of consumers to ascertain what races that may facilitate their buying behavior.
Social Factors: The ways we think, believe, and are determined to a great extent by social forces. And our individual buying decisions including the needs we experience, the alternatives we consider, and the way s in which we evaluate them are affected by the social forces that surround us.
Culture: According to Stanton (1994) culture is a set of symbols and artifices created by a society and handed from generation to generation as determinants and regulators of human behavior. The symbols may be intangible (attitudes, beliefs, values, languages) or tangible (tools, housing, products, and works of art). Although culture docs not include instinctive biological acts, the way people perform instinctive acts such as eating is culturally influenced. Thus everybody gets hungry, but what, when and how people eat vary according to cultures. For example in Uganda some animals are considered as turbo such as lion, cow, insects like grass hoppers and alike. There fore Uganda Clays Limited can carefully ensure that Ugandan cultures are pati and partial of the influence to the buying decision to its customers or consumers behavior.
15 Subcultures: Etzel (1991) argued that any society as a heterogeneous as the United States, subcultures are groups in a culture that exhibits characteristic behavior patterns sufficient to distinguish them from other groups with in the same culture. The behavior patterns that distinguish subcultures are based on factors such as race, nationality, religion and urban-rural identification. Applied to UCL, the company's consumers can be influenced and affected by subcultures where behaviors are created to adopt purchase decisions.
Social class: Bruce Walker (200 I) also asserted that a social class is a ranking with in a society determined by the members of the society. Social classes exist in virtually all societies, and people's buying behavior is often strongly influenced or affected by the class to which they belong or to which they aspire. With out making value judgments about whether one class is superior to or happier than another, sociologists have attempted to describe class structure in a meaningful way. One scheme useful to marketing manager is the five class model developed by Coleman and rain water (1998), classifying people by education, occupation, and type of residential neighborhood.
Reference groups: Each group in a society develops its own standards of behavior that then serves as guides or frames of reference for members (Michael J. 1997). Families and a circle of friends as such groups. Members share values and are expected to conform to the groups behavioral patterns. There are groups we aspire to join (a campus honor, society or club) and groups we admire even though membership may be impossible. All these are potential reference groups who affect person's attitudes, values, and behavior.
Families and house holds: Leon G. (April, 2003), defines a family as two or more persons related by blood, marriage or adoption who reside together. Bruce (2001 ), also argues that a family as group of two or more people related by blood, marriage, or adoption living together in a house hold. During their lives many people will belong to at least two families, the one into which they are born and the one they form at marriage. The marriage family in contrast, has a more direct effect on specific purchases. For example family size is important in the purchase of a car, a house and other asserts.
16 Average house hold size at the end of the (1990's) was 2.64 members, whereas average family size was 3 .19 person. Although house hold size has remained about the same since ( 1990), family size has been slowly declining for years.
Psychological Factors: In asserting psychological factors affecting consumer behavior, one or more motives with in a person activate goal-oriented behavior. One such behavior is perception, that is, the collection and processing of information. Other important psychological activities that play a role in buying decisions are learning, attitude formation personality, and self concept.
Motivation: According to Kanuk (2000), understands why consumers behave as they do, we must first ask why a person acts at all. The answer would be, because he or she experiences a need, all behavior starts with a need. Security social, acceptance, and prestige are examples of need. A need must be aroused or stimulated before it be comes a motive. Thus a motive is a need sufficiently stimulated to move an individual to seek for satisfaction. We have many dormant needs that do not produce behavior because they are not sufficiently intense. Hunger strong enough to impel us search for food, and fear strong enough to motivate a search for security are examples of aroused needs that become motives for behavior. The broadest classification of motives is based on the source from which a need arises. Needs aroused from physiological states of tension, such as the need for sleep. Needs aroused from psychological states of tension, such as the needs for affection and self respect. A refinement of this concept was formulated by the psychologist Abraham Maslow (1980). He identified a hierarchy of five need levels, arrayed in the order in which people seek to gratify them in the figure shown below.
Perception: According to Schiff man (2007), a testify that in many purchase situations, a person gathers information before making a choice. Perception there fore is a process of receiving, organization, and assigning meaning to information or stimuli determined by our five senses. It is in this way that we interpret or understand the world around us. Perception plays a
17 fundamental impact in the strategies of the buying decision process where alternatives are identified.
Learning: Learning involves changes in behavior resulting from observation and experience. Stanton (200 I), argued that it even excludes behavior that is attributable to instinct such as a breathing or temporary states such as hunger, or fatigue. Interpreting and predicting consumer learning enhances or affects our understanding of buying behavior, because learning plays a role at every stage of buyer decision process. According to stimulus response theory, learning occurs as a person, responds to some stimulus by behaving in a paiticular way and is rewarded for a correct response or a penalized for an incorrect one. When the same correct response is repeated in reaction to the same stimulus, a behavior pattern is established.
Personality: According to Leslie Lazar (2007), defines personality as an individual's pattern of that influence or affect behavioral responses.
For example, we speak of people of being self confident, domineering, introverted, flexible, and or friendly, and as being influenced or affected (but not controlled) by such personality traits in their responses to situations. It is agreed that personality traits do affect and influence consumer behavior. However, there is a considerable disagreement as to the nature of this relationship and that is how personality affects or influence consumer behavior.
Psychoanalytic theory of personality, formulated by Sigmund Freud (1990's), at the turn of the century and later modified by his followers and critics has had a tremendous impact on the study of human behavior and marketing. Freud contended (I 890' s), that people have subconscious drives that can not be satisfied in socially accepted ways. As we learn that we can not gratify these needs in a direct manner, we develop other more subtle means of seeking satisfaction. These results in very complex reasons for some behavioral effects.
Attitudes: Michael J.Etzel (I 997), defines an attitude as a learned predisposition to respond to an object or class of objects in a consistently favorable or un favorable way. In our buying
18 decision, attitudes play a major role m the evaluation of alternatives. All attitudes have following characteristics in common.
19 CHAPTER THREE
METHODOLOGY
3.0 Introduction:
This chapter dealt with the methodologies that were used in the study. It specifically deals with the location of the study, study population; sample size, sample procedures, methods of data collection and problems that were encountered in the study.
3.1 Research Design: The researcher used a case study design. The researcher will be on establishing the effects of promotional activities on consumer behavior in organizations and companies
A case study of Uganda clays limited (UCL), the case study was used because the results of the study are to be generalized only to UCL as opposed to organizations since different organizations and companies offer and operate using different promotional tools.
According to Gall (1996), case studies are preferred to enable or produce detailed phenomenon to develop possible explanations of it or evaluate the phenomenon.
3.2 Study Area: The study took place in Kampala and Wakiso district; it was mainly focusing on only UCL projects. In Kampala the projects include Gayaza road (UG 131 ), Nakasero (UG 403), Ntinda (UG 400), Bugolobi (UG 413), Kyambogo (UG 402), Mackyinde (UG 411), GABA (UG 501), Nsayabya (UG 506), Mulalago (UG 605), Nakawa (UG 129), Nakulabye (UG 127), Agape (UG 133), Kigungu (UG 511), Entebbe (UG) and Wakiso district respectively.
20 3.3 Study Population: The target population comprised of the staff in the sales and marketing department of UCL and both urban and rural customers that were buying building materials from the main factory at Kajjansi for the month of may 2009.
The researcher used the above categories for two reasons: One, to find out from the staff about the effects of promotional activities on consumer behaviors. Two, to acquire the accurate information from the customers about the effect of promotional tools, how they affect their behaviors.
3.4 Sample Size: The researcher chose I 00 customers that were buying from the main factory for the month of May, 2009. Out of 100 customers, 60 customers, both male and female, were selected using simple random sampling to represent both urban and rural customers.
The researcher also chose two male staff and two female staff informants who work in the sales and marketing department of UCL, systematic random sampling was used to select this interval.
3.5 Sampling Techniques: The researcher used random sampling technique for two reasons, namely; To give to every project employees a chance of being represented in the sample. Every employee might presume to be very knowledgeable about the issues concerning the promotional activities and other project issues like consumer behaviors of individuals. By use of sampling, frame numbers were given and put in box for members to pick and in order for each member to have equal chance replacement once this is done, according to Bailey (1996), enables members to participate equally and minimize errors.
21 On the other hand, the selection of the main city and outside city (Wakiso areas), will be purposive. The main town was purposively selected to represent the views of semi-urban and rural areas.
3.6 Sources of Data: The researcher used both primary and secondary data sources to the study.
(i) Primary sources: this can be defined as the source of data where the researcher acquires the information by the use of questionnaires, interviews and focus groups. Generally, the researcher normally used the materials he got from the field or research findings. (ii) Secondary data sources: this can be defined as the source of data where the researcher acquires information by use of material such as text books, journals, published materials, and information from internal sources.
3. 7 Methods of Data collection: Several methods of data collection were used, namely; (i) Self administered questionnaires, (ii) Formal and informal interviews.
Nevertheless, the self administered questionnaires were used as the main of data collection for three reasons. (i) It might be looked at as appropriate method since all the respondents were reasonably educated and easily fill the questionnaires with out assistance from the researcher. (ii) Self administered questionnaires were normally given the respondent adequate time to fill the questionnaires in the absence of the interviewer hence minimizing subjectivity. (iii) The questions in the self administered questionnaire were closed ended to give room for respondents to give detailed explanations and free coded questions to
22 enable the respondents answer within a given range which might make analysis easy. As can be cited, the researcher also might use formal and informal interviews to supplement, validate and or invalidate the findings that were generated through the self administered questionnaires. In the informal interviews, the researcher will use an interview schedule that will be used in the face-to-face. Interviews of respondents similarly the researcher will use an interview guide in the informal interviews. Probing might be a major aspect of both interview methods. Although both formal and informal interviews might not be the main methods of data collection, because they might generate crucial results on the very per tent issues that will be under investigation.
3.8 Data quality Management: Getting reliable and valid data was one of the main aspirations of the researcher before and during the study. The researcher therefore might achieve the fore cited aspiration by using the triangulation method. Triangulation is the research technique where the researcher uses many research methods to study a particular problem. Using the triangulation method the research was able to collect data from several places that might be included in the 15 projects from the main city (Kampala), and 15 projects from outside areas of Wakiso district.
Similarly, the researcher also used several methods of data collection that included, self administered questionnaires, formal and informal interviews. The triangulation of sources or places and the methods of data collection therefore, inevitably might lead to the finding that was not only be valid but also reliable as well.
The research also might carry out a pretest or pilot study. A pretest according to Gall ( 1999), is when a variable is measured before administering the experimental treatment, this too might help in ensuring the results that might be got from the research might be valid and reliable.
3.9 Data processing and Analysis: Data analysis went through four stages. The response from fo1mal and informal interviews were noted and organized.
23 Editing of data, this involved the process of examining and careful scrutiny of the collected row data (through the questionnaire, formal and informal interviews) to detect errors and omissions, and correct them where possible.
Coding: This involves the process of signing symbols to answers so that responses are put in limited but comprehensive categories. The data was labeled by symbols, initials of the methods through which they were collected.
Classification of Data: the study might result into large volumes of row data that need to be reduced into homogenous classes (on the basis of common characteristics). Data with common characteristics were put in one class and the not similar data were divided into different number of groups. On the other hand, data analysis might start with an in depth study of the data in each of the fore cited classes. The first step being called the case analysis, this entailed shifting through all data in each class, discarding whatever was irrelevant and bringing together what seemed most important. The relevant data was then be sorted out by relating them to the problem areas of this study after which individual interpretation, judgment, opinions, conclusions and recommendations were made by the researcher.
24 CAHPTER FOUR
PRESENATATION OF DATA
4.0 Introduction
The study was set to investigate the promotional activities and consumer behaviour in the Uganda clays limited at Kajjansi, Entebbe road. Data was collected on the basis of these objectives.
► To determine the effects of media adve1iizing on consumer behaviour
► To assess the effects of sales promotion on consumer behaviour
► To evaluate the effects of direct marketing on consumer behaviour of Uganda clays limited Findings of this study are presented using the data below:
4.1 The effects of media advertizing on consumer behaviour The first objective of this study was to examine the effects of media advertizing on consumer behaviour and the following questions were used to answer the research objective. • Do you use radio advertizing to generate leads? • Does advertizing in magazines promote customers loyalty for your products? • Are leads generated through adverts on the television influence where you buy? • Do adverts of UCL on radio influence where you buy? • Does radio advertizing promote rural customers to building materials of UCL? The results from these questionnaires are summarized in the tables below.
The respondents were asked if they use radio advertizing to generate leads. The results are summarized in the table below;
25 Table 4.1 a: Radio advertizing to generate leads in UCL Do you use radio advertizing to generate Yes No No Total leads? Response Frequencies (F) 3 1 - 4 Percentages (%) 75 25 - 100 Source: questionnaire
The results in table 4. la above rendered that three staff [75%] was of the view that the leads both rural and urban are keen to the radio programs and through that they respond to the adverts of UCL while another one I staff [25%] did not agree that lead generation can be influenced or generated through radio adverts. None of the staff did not respond. It can therefore be deduced that, the majority of the staff [75%] accepted that radio adve1ts can generate leads since they believed that it can improve on consumer buying behaviour and decisions.
The I manager who did not agree that radio adverts generate leads, would make his customers to go an extra mile only if they knew they would get better promoted products elsewhere. He believed that customers do their best all the time to acquire relevant info1mation from different to make their judgment or decisions.
The respondents were asked if adve1tizing in magazines would promote customer loyalty for their products. The results are summarized in table 4.1 b below
Table 4.lb Use of magazine advertizing to promote customer loyalty of UCL Does advertizing in magazines promote customer Yes No No Response Total loyalty? Frequencies (F) 2 2 - 4 Percentages (%) 50 50 - 100 Source: questionnaire
The results in table 4.1 b above showed that the two staff [50%] thought that the magazine adverts promote customer loyalty of their products while also two staffs [50%] also felt that
26 advert in magazines do not promote customer loyalty. On the other hand, none of the staff failed to respond to this question. It can therefore be deduced that half of the staff [50%] believed that if customers frequently adopt the culture of reading magazines. It will promote their buying behaviors.
The other staff [50%] did not agree with this because they felt that instead of using magazine advertizing, where customers' reading culture is still low, it made those customers on extra mile of switching to other competitors products that used other means of adve1iizing.
The respondents were also asked if leads are generated through adverts based on television. The results are summarized in the table 4. lc below.
Table 4.lc: Lead generation as a result of placed adverts on television in UCL Are leads generated through adverts placed Yes No No Total on a television? Response Frequencies (F) 4 - - 4 Percentages (%) 100 - - 100 Source: questionnaire
The results in the table 4. le above showed that all staff [100%] were of the view that lead generation is as a result of placing adve1is on television since people like to view and confirm on some samples of the products. No one of the staff disagreed about this question or had to confirm that television advertizing has got high levels of promoting and motivating new customers as well as loyal customers to change in their buying decisions. This was because most of the staff had put in a lot of trust to the adverts that are placed on television stations.
The other question that the customers were asked was if adverts of UCL on radio influenced customers where to buy.
27 Table 4.ld: Influence of customers on where to buy by the UCL adverts on radio Do adverts of UCL on radio influence you Yes No No Total on where to buy? Response Frequencies (F) 40 JO 10 60 Percentages (%) 67 16.5 16.5 100 Source: questionnaire
The results in table 4.ld above showed that 40 [67%] of the customers felt that their response to buying decisions of building materials is through UCL adverts on the radio. 10 [16.5%] of the customers were of the view that even there are means of adve1iizing such as magazines and other media, 10 [16.5%] of the customer did not respond to the question. 67% of the customers agreed that their buying behaviors were as the result of UCL adverts on the radio to allocate where they buy from since it was equivalent to the behaviors they had put on the buying from UCL outlets. The other 16.5% of the customer pointed out that where they buy from cannot be determined buy UCL adverts on the radio but through their decisions. This de-motivates them and interferes with their consumption behaviors even to switch to other providers. 16.5% of the customers did not respond to this question owing to the fact that they were not comfortable discussing this issue.
4.2 The effects of sales promotion on consumer behavior. This was the second objective of this study that is appropriate to consumer behavior and the following questions were to answer the research objectives. • Do you use coupons to promote sales? • Does coupons promotion influence where you buy building materials? • Do you use samples to promote your products? • Do trade promotions bring about lead generation? • Do coupons improve you relationship with the company? The results of these questionnaires are summarized in the tables below:
The respondents were asked if they use coupons to promote their sales. The results are summarized in the table 4.2a below; 28 Table 4.2a: Using conpons to promote sales in UCL Do you use coupons to promote sales? Yes No No Total Response Frequencies (F) 3 1 - 4 Percentages (%) 75 25 - 100 Source: questionnaire
The results in the table 4.2a above revealed that three staff [75%] were of the view that the use of coupons in promoting products influence high levels of customer flow which increases sales. One staff [25%] did not agree that coupons can lead to a high flow of customers since- some customers may even throw away or even forget the coupons. It is therefore deduced that majority of the staff [75%] agreed that coupon promotion can do it better because of higher discount associated. This promotes buying behaviour in individuals. The one staff [25%] did not agree in using coupons to promote products because he believed that it involves a lot of wastage in printing out the coupons and besides customers may find it easy to throw them away. And the other reason was that when customers are promised high discounts, they think it is a mare persuasion to attract their intentions.
The respondents were also asked if coupon promotion influence where one buys the building materials. The results are summarized in table 4.2 b below.
Table 4.2b: Coupon promotion to influence where to buy building materials in UCL Does coupon promotion influence you Yes No No Total where to buy building materials? Response Frequencies (F) 55 - 5 60 Percentages (%) 92 - 8 100 Source: questionnaire
The results in the table 4.2b above revealed that 55 customers [92%] were of the view that the use of coupons in promoting products influence them where to buy. None of the customers disagreed about this question. 5 customers [8%] did not respond to the question. It can therefore
29 be deduced that the majority of the customers [92%] were of the view that promoting using coupons influence them where they can buy from. Customers are able to respond to various promotional sensitivities as they can be inspired by some incentives like discounts and price free products. The other 5 customers [8%] did not answer that question in the view that they never had any briefing about the issue.
The other question that the respondents were asked was if samples can be used to promote their products.
Table 4.2c: Use of samples to promote products in UCL Do you use samples to promote your Yes No No Total products? Response Frequencies (F) 4 - - 4 Percentages (%) 100 - - 100 Source: questionnaire
The results in table 4.2c above revealed that all the staff [100%] were of the view that they had high hopes selling by samples can lead to a better promotion and sales due to customer flow. No staff that had disagreeing views of the above reason. None of the staff failed to respond. It can therefore be deduced that the four staff [ I 00%] had a positive view about selling by sampling since they were able to disclose their feelings about their judgment. This also gave them the opp01iunities for promotions in the company [UCL]. The respondents were also asked if trade promotions bring about lead generation in UCL. The results are summarized in the table 4.2 d below
Table 4.2.d: Trade promotions to bring about lead generations in UCL Do trade promotions bring about lead Yes No No Total generation? Response Frequencies (F) 35 15 10 60 Percentages (%) 58 25 17 100 Source: questionnaire
30 The results in table 4.2d above revealed that 35 customers [58%] agreed that their perceptions can be inspired by trade promotions. This provided them opportunities to win some fabulous prizes that created their many intentions to be lead generated. 15 customer [25%] said that new products and new customers cannot only be influenced by trade shows alone, they pointed out that there must be some other incentives that compels the customers to change their minds to respond to their buying influences. 10 customers [17%] did not respond to the question. It can therefore be deduced that 35 customers [58%] agreed that they are influenced by trade promotions to lead generate since they believed that trade shows and promotions are the only .ways customers cannot be persuaded as it would be the case with other promotional tools such as media advertizing on television and radio. They said late after a few years each had to switch from their providers since that there was a lot of misleading. 15 customers [25%] disagreed to the view that all promotions are formulated with the same goal of persuading and misleading customers. Hence they argued that trade promotion like any other promotional strategy can do harm as advertizing, they also said that it is the ethical standards that the promoter chooses to deliver what is exactly his message [promotion] impacts to the customer. The other 10 customers [17%] did not respond to the question with reasons best known to them.
Respondents were asked if coupons can improve their relationships with the company. The results are summarized in table 4.2 e below.
Table 4.2e: Using coupons to improve customer relationship with the company [UCL] Do coupons improve your relationship with Yes No No Total the company? Response Frequencies (F) 31 19 IO 60 Percentages (%) 51 32 17 100 Source: questionnaire
The results in table 4.2e above revealed that 31 customers [51 %] agreed that coupons truly improve relationships building of customers to their providers of goods and services. 19 customers [32%] said that creation of mutual relations between a customer and the provider or
31 seller is not only by promoting goods by coupons but a combination of other promotional tools that will create satisfaction in them, hence creating relationships. 10 customers [17%] did not respond to the question. It was therefore deduced that 31 customers [51 %] who are the majority, confirmed that their relationship building with UCL was as a result of discounts from coupons used by the company. 19 customers [32%] never agreed upon the view of the 31 customers. They argued that coupons are only fliers that may even have no any incentive that can lead to customer relationship with the company. The other 10 customers [17%] did not respond to the question basing on their knowledge about the issue.
4.3 The effects of direct marketing on consumer behaviour. The last objective to this study was to evaluate the effects of direct marketing on consumer behaviour and the following questions were used to answer the research objectives: • Do you use telephone calls to influence your customers? • Do mailing messages improve relationship building with your provider? • Does electronic mailing bring about lead generation? • Do customers call in to order for products? • Do catalogues mails improve your loyalty? The results of these questions are summarized in the tables below.
The respondents were asked if they use telephones to influence their customer loyalty. The results are summarized in table 4.3a below.
Table 4.3 a: Using of telephone calls to influence customers' loyalty in UCL Do you use telephone calls to influence Yes No No Total your customers' loyalty? Response Frequencies (F) 3 1 - 4 Percentages (%) 75 25 - 100 Source: questionnaire
32 The results in table 4.3a above showed that 3 staff [75%] was of the view that they use telephone call to sensitize their customers to buy their products. I staff [25%] said that the use of telephone calls cannot only stop or hinder customers' loyalty but also it deprives the customers' privacy. None of the staff failed to respond to this question. Therefore, it can be deduced that 3 staff [75%] agreed that the use of telephone calls truly influences customer loyalty since calling someone can reduce fear to taste the products. Instead it can bring about requesting for an order. I staff [25%] believed that telephoning customers takes away his/ her intentions and she said one could be having headache and the response to such a customer will be harsh to the caller. On the other hand, none of the staff failed to respond to this question.
The respondents were also asked if the mailing messages can improve relationship building with their providers. The results are summarized in table 4.3 b. below.
Table 4.3 b: Mailing messages in improving relationship bnilding between customer and their provider in UCL.
Do mailing messages improve relationship Yes No No Total building with your provider? Response Frequencies (F) 30 26 4 60 Percentages (%) 50 43 7 100 Source: questionnaire
The results in table 4.3b above revealed that 30 customers [50%] were of the view that mailing messages to customer is a step ahead in creating relationships. This is what they believed that through such messaging replies can take place be inquiring about product information hence creating consistence in messaging to build such relationships. 26 customers [43%] were of the view that mail messages can alternate or even delay in post offices which may even destroy the relationships. The 4 customers [7%] did not respond to the question. It can therefore be deduced that the majority of customers [50%] viewed that for customer to increase their ties with the product provider, mail massaging can work better. They even argued that though mails, articles letters customers are retained to build strong relationships with their providers. On the other hand, 26 customers [43%] were of the view that mailing messages can create disturbance if the
33 messages are too long and rapid which may even turn the customer to switch to another competitor. 4 customers [7%] did not respond to the question due to the reasons they themselves know better.
The respondents were also asked if electronic mailing brings about lead generation. The results are summarized in table 4.3 c. below
Table 4.3c Using electronic mailing in bringing about lead generation in UCL Does electronic mailing bring about lead Yes No No Total generation? Response Frequencies (F) 2 2 - 4 Percentages (%) 50 50 - 100 Source: questionnaire
The results in table 4.3 c above revealed that 2 staff [50%] was of the view that applying information technology in communicating with their customers creates lead generation. While the other 2 of the staff [50%] believed that applying info1mation technology in communicating to customers can confuse them since there is still digital divide. [The gap between those who can access the internet and those that cannot]. That it was the time wastage. None of the staff failed to respond. It can therefore be deduced that a half of the staff [50%] felt that electronic means to create new customers and promote new products was a fundamental point since all the two believed in creativity and innovation while the other two staff [50%] their argument was that in Uganda people are still unable to access such facilities such as the internet to transact business or even place orders. However, none of the staff failed to respond to this question.
The respondents were also asked if the customers call in to make orders. The results are summarized in table 4.3d below
34 Table 4.3d: Calling by customers to order for products in UCL Do customers call in to order for products? Yes No No Total Response Frequencies (F) 4 - - 4 Percentages (%) 100 - - 100 Source: questionnaire
The results in table 4.3d above revealed that all the four staff [100%] were agreeing to the same view that mostly customers make orders by their cell phones. None of the staff said no because all were viewing the question in the same analysis. None of the staff failed to respond to this question. It can therefore be deduced that the whole staff was precise to this question and their views were that customers calling for an order is not only possible to them but also they prefer it. The respondents were also asked if catalogue mails improve customer loyalty. The results are summarized in the table 4.3e below.
Table 4.3e: Catalogue mailing to improve customer loyalty in UCL
Do catalogue mails improve your loyalty? Yes No No Total Response Frequencies (F) 42 18 - 60 Percentages (%) 70 30 - 100 Source: questionnaire
The results in table 4.3e above revealed that 42 customers [70%] were of the view that catalogues, customers are able to order for products with their own specifications. While the other 18 [30%] believed that catalogues cannot meat the standards of their orders due to a lot of fraud on the internet. It can therefore be deduced that 42 customers [ 70%] were the majority and felt that catalogs are much more important since they are less costly and customers are given chance of placing orders of their specifications.
35 CHAPTER FTVE
SUMMARY, CONCLUSIONS AND RECO1\1MENDATIONS 5.0lntroduction
This chapter under the topic promotional activities and consumer behavior in UCL, presents the summary, general conclusions and recommendations made based on the objectives of the study and data collected from the staff and customers of UCL.
5.1 Summary
According to the findings, majority of the staff felt that radio adve1iizing generates the leads both from rural and urban areas. In this was they argued that radio is the richest vehicle to advertize products due to the wider coverage of reach. Lead generation involves the new customers, in response to the new products. However, they argue that radio can be the cheapest means of adve1iizing compared to television advertizing.
From the findings, a half of the staff agreed that magazine advertizing can half way promote customer loyalty and the same way it can improve the retention of customers as they as they regarded magazine reading is a culture that is influenced into an individual to stimulate his / her response to consistently adopt the behavior. Therefore from that perspective, a half of the staff agreed that magazines can promote customer loyalty.
According to the findings, it was surprising that all the staff had a meeting of minds; they agreed totally that lead generation is as a result of placing adverts on television. In this way, people like to view the samples they display on screen which sensitize more of a customer to taste a product. However, they argued that much as advertizing on television is full of persuasion it can satisfy a customer by viewing and make a judgment.
On the other hand, customers according to these findings felt that radio adve1iizing influenced them on where to buy and why to UCL products. They argued that radio advertizing reaches a wider targeted audience and it plays a big role to allocate where to buy. In this analysis of
36 customers radio is still important in developing countries or economies like Uganda hence leading to the cheapest means of customer acquisition of information which at the end influence them in their buying responses and behaviors.
An overwhelming number of the staff felt that using coupons as a means of direct marketing strategy leads to their achievements. In this was they meant that when they promote their products in reduced priced, sales increased in number which again meet their reduced prices in turn calling it "win-win situation. In the summary of this analysi8s [findings] the use of coupons to promote sales is done by the company issuing fliers that shows that price cuts, gifts and high discounts to the promoted products. In this, the staff largely agrees that it improves customer relationship and loyalty.
On the other hand, the findings from this study noticed that customers were not in disagreement in views with the staff. Customers felts that using coupons influence them where to buy their products. In this point of view, customers can get the address of where to buy and when to buy since prices cut and discounts are given and gifts such as "buy-one-and-get-one-free" this ultimately influences customers to not only be inspired to allocate where to buy but also to be retained to a strong relationship with the company.
According to the findings, an overwhelming number of staff almost all agreed that using of samples to promote their products got better results since customers was inspired to flow in large numbers. In this case the staff argued that sampling the products on displays not only lead to customer switching from their competitors but it also lead to lead generation. New products were put to market and new customers were also acquired and that they tasted the company's products. It was surprising that all the staff had the same view meaning that samples work better for them.
A big number of customers according to these findings felt that lead generation is by means of trade promotions. It was outrageous to note that when company's carry out trade shows and exhibitions, a lot of customers are generated. The customers interestingly reported that trade shows captures the attentions of most leads. In this circumstance, people become aware of the
37 products and their behaviour get changed resulting to switching from their providers to the promoting company's products.
The findings show that the majority of the customers built their relationships with their companies of choice through direct marketing where coupons are largely used. In this sense, customers like to buy products on reduced prices and being given some motivations like free transport to those who buy in large quantities and logistics to those who place purchase orders. It was observed that the usage of coupons improve relationship building between a customer and a company.
Majority of the staff from the findings revealed that telephone calls influence customers' loyalty. This was because companies use toll-free telephones that are offered to their customers for free contacts to express their views make specifications and acquire information about the produce, price, place and the means to reach him / her at the customers convenience hence, the analysis of this view seemed convincing the researcher.
A big number of customers believed that mailing messages improve their relationships with their companies of their choices. They believed that with electronic mailed and traditional mails create freedom to a customer at reading and replying to their pace. The agreed that through messaging, convenience is attained even they said that it is the cheapest means of communication.
On the other hand, the staff according to these findings a half of the percentage agreed and the other percentage disagreed that electronic mailing brings about lead generation. It was hard and confusing idea to judge which is good from which is bad. But this analysis, electronic mailing such as sending electronic messages to customers is targeting the less audience who can access the internet and other networks. Which is good but however according to the low developing countries, customers largely can be discriminated from this strategy.
Most of the staff believed that a large number of customers like to make call to order for the goods. In this view, the staff argued that calling customer bring them nearer to their providers as
38 is that is not enough customer are able to make specification to meet their needs and wants and how the products will satisfy their desires. Thus the staff reasoned that this is the main goal of rendering toll free telephones for customer to order their goods on free charge.
An overwhelming number of customers were aware of how catalogue mails are the cheapest and convenient improving their loyalty to the company. In this reasoning, the customers believed that the acquisition of products can cheaply be via the catalogue mailings. They viewer this issue as a strategy of cutting down transport charges and lowering the charges of logistics. Hence the argued that loyalty is by was of mutual satisfaction of customers is the company's modes of marketing.
5.2 Conclusion
The first objective of the study was to examine the effects of media advertizing on consumer behavior of Uganda Clays Limited and according to there data collected, it was revealed that most staff felt that their media advetis were not well scheduled and planned in time, which compelled the company for the last years to experience some set backs [Godwin 2008], not until the company started to devise means of efficiently plan and schedule the advertizing campaigns to rip customers' responses since the majority of the staff and customers agreed that advertizing can influence buying decisions.
The second objective was to assess the effect of sales promotion on consumer behavior in UCL. According to the data collected, the staff and the customers had a positive view that sales promotions largely improves their behaviors in response to the company's products much as some of the customers disagreed that sales promotions such as use of coupons consists of a considerable fraud to customers where the coupons contradict with the company's offer just mainly being done to persuade them and so on the other hand sample can lead to customer loyalty.
The last objective was to evaluate the effects of direct marketing on consume behaviour in UCL. The staff had a positive attitude towards direct marketing through using telephone calls to
39 contact their customers and emphasizing customers to use telephones to make orders. On the other hand, customers had both positive and negative attitude towards direct marketing. Some argued that it brings about leads, customer loyalty, and relationship with the providers, however, some view were not undermined as how direct marketing can take away customers privacy through constant contacts and rapid messaging. This lead to customer switching to the impmied building products from China, England and south Africa in the last years [Godwin, 2008] when inappropriate campaigns get used by companies, the major implications is customers switching to company's competitors.
5.3 Recommendations
The recommendations made from this field of study are as follows. The management and the marketing department of UCL should perfectly use promotional tools that do not discriminate, and take a way customer privacy and leading to customer switching since these promotional activities had some effects on consumer consumption behaviors. Well planned and scheduled promotions ensure that customers can acquire the information they need which outrageously promote their buying decisions. Planned and schedule promotions lead to product awareness and increase sales returns that breeds to company's image and perception which promotes largely the lead generation.
The promotions manager should ensure that his promotional mix not only influences, persuades, but also providing exact information that the customers need to make up their responses. This helps the company the sponsor a promotion that will create loyalty and retention as well as relationships. This will help to solve problems of competition, price cuts, lowering of sale returns and most importantly customers switching to other competitors.
The management of UCL should explore the use of electronic marketing where customers can cheaply use some networks like the internet to order and give comments and get inform action about a company's activities which will largely create leads lot generate since we are moving towards a digital economic world. This will enhance the company even to strategize internationally as it is starting to expand to Rwanda, Juba, and Kenya [Bongo, 2008].
40 Instead of over-relying on publications such as magazme advertizing and newspapers, the company can also consider trade and consumer promotions. This include sales letters, telemarketing and leaflets for intensive coverage.
5.4 Areas of Future Research
Despite all the efforts made by the researcher, he cannot claim that he has I 00% accurately and exhaustively tackled the problem area(s) bringing in areas requiring for future and further research.
First Uganda Clays Limited operates in central region, eastern region, northern region and Juba, western region and Rwanda. This means that the company now is strategically targeting international markets [Godwin, 2008]. The study however covered Kampala and Wakiso districts, yet the findings have generalized all consumer behaviour where the company extends its operations [promotions]. A more comprehensive study therefore that well cover all the regions as well as all districts in Uganda, Rwanda, Kenya, and Juba as opposed to only two districts of Kampala and Wakiso, it might be necessary to validate, invalidate and / or supplement the findings that have generalized in and by this research.
Second, this study mainly focused on the effects of the promotional activities on consumer behaviour in Uganda Clays Limited, it was however evidently discovered that it is not only promotional tools that affect consumer behaviors in Uganda Clays Limited. Other factors that influence consumer behaviour are personal factors, social factors, cultural factors, sub-culture, psychological factors and demographic factors [Kolter, 200 I]. All these factors were also sited to be affecting and influencing consumer buying behaviors in Uganda Clays Limited.
A very comprehensive research therefore, that will focus on a wide range of factors as opposed to only one factor [promotional activities] to effect consumer behaviors might be required to get an accurate gist of the various effects of consumer behaviors in Uganda Clays Limited.
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