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: .................................................................................................................