PERCEPTION OF BUSINESS EDUCATION LECTURERS IN COLLEGES OF EDUCATION ON THE INFLUENCE OF RETAIL STORE VARIABLES ON IMPULSE BUYING BEHAVIOUR OF CONSUMERS IN NORTH-WEST NIGERIA

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Abstract

This study was carried  out  to determine  the perception  of Business  Education  Lecturers  in Colleges of Education on the influence of impulse buying behaviour of consumers.   A survey research design was used for the study.  The study was carried out in the North-west geopolitical zone of Nigeria.  The  population  of the  study was 219  Business  Education  Lecturers  in 10

Colleges of Education.   The entire population was studied since it was small and manageable. Seven research questions were answered and three null hypotheses were tested at 0.05 level of significance and 202 degrees of freedom.  A structured questionnaire was developed to collect data for the study.   The questionnaire  items were structured on a  5-point Likert   scale.   The questionnaire was face-validated by three experts in Business Education.  The Cronbach’s Alpha reliability test was used to determine the internal consistency of the questionnaire.  A reliability coefficient of 0.75% was obtained.  The researcher and three research assistants administered the questionnaire  to  the  respondents  in  their  various  locations.    A  total  of  204  copies  of  the questionnaire  were  retrieved  from  the  respondents  for  analysis.    The  data  collected  were analyzed  using Mean  statistic  to answer  the  research questions,  while t-test and analysis  of variance were used to test the hypotheses at 0.05 level of significance.  The findings of the study revealed  that  all  the items of retail store location, design,  merchandise  display,  merchandise assortment,  price  of  merchandise,  customer  service,  and  promotion  were  accepted  by  the respondents as having influence on the impulse buying behaviour of consumers.   The findings also  revealed  that  there  was  no  significant  difference  in  the  Mean  responses  of  Business Education Lecturers with regards to their ranks, gender and age on the influence of most of the retail store variables on consumer  impulse buying behaviour.  One  of the implications  of the findings of this study for Marketing Education is in the area of providing retail information for improving teaching and learning in Business Education which would help students to establish retail enterprises or work effectively in retail outlets after graduation. Based on the findings of this  study,  it  was  recommended,  among  others,  that  Business  Education  Lecturers  should effectively  teach the retail variables  so as to  encourage  retail  entrepreneurship  among  their students after graduation. Retailers should adopt the retail store variables identified in this study in order to boost their trade and provide a satisfying shopping experience for their customers.

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CHAPTER I

INTRODUCTION

Background of the Study

Retailing  plays  a  major  role  in  the  distribution  of  goods  and  services  to  the  final consumers.   Most buying activities  for household  products are done in retail stores.   This is because retail stores hold items which are commonly characterized by low price, low marginal need, short life span, small size and ease of storage which are the daily needs of consumers.  The retail store provides an assortment of goods which a consumer can easily walk in, choose and buy without  any unnecessary stress.   The retail store also ensures  the  availability of desired consumer  products  which  the consumer  can,  within a few  minutes,  conveniently  shop  with satisfaction.    The  retail  store  ensures  local  supply  of  goods  and  services  personally  to  the consumers.

According to Osuala (1998), retailing includes all the activities in selling of goods and services directly to final consumers for their personal or non business use.  McGoldrick (2001) defined retailing as the sale of goods and services in smaller quantities to consumers for their own use.     According to McGoldrick, retailing activity takes place both in a store and in non- store outlets.

A retail store is defined by McGoldrick (2001) as a source of supply to end-users, rather than to industrial buyers. Stanton (1981) viewed a retail store as an institution which carries on such activities in the business premises which are directly related to goods and services required by the ultimate consumers for their personal or non-business use.  Similarly, James, Walker, and Etzel (1981) described a retail store as a physical site of a retail business where consumer goods are sold.  It is different from non-store retail outlets in which retailing occurs through the mail, telephone,   vending  machines,   door-to-door   selling,   and  internet,  otherwise  called  online retailing.    Store  based  retail  outlets  have  characteristics  referred  to  in  this  study  as  store

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variables.   The store variables are expected to make the store attractive and present conducive buying environment for the consumer.   The retail store variables include store  location, store design,  merchandise  display,  merchandise  assortment,  price  of  the  merchandise,  customer service, as well as promotion.

The store location is a major element of the retail mix which plays a significant role in meeting consumer’s  shopping convenience.   James, Walker and Etzel (1981) defined a  store location as the physical site of a retail business.   It is the place where the consumer can easily locate the retailer  whenever  he needs to buy.   The consumer  is sure of where  to go for his shopping after having identified where a particular retail store is located.  The store location also provides the retailer the convenience of displaying and selling his merchandise without having to wander about with them to look for consumers.   Consumers are more often disposed to stores that  are  strategically  located  with  easy accessibility  and  close  proximity  to  their  residence. Consumers  look out  for  location  features  such  as  traffic  flow and  parking  lot that provide soothing shopping environment to them.  This is why Samson, Little, and Wingate (1984) opined that to facilitate merchandising process and arouse the consumer’s curiosity to visit the store, it must be conveniently located near the consumer.

Another feature of a retail store is the store design.   The store design gives the store a desirable  image  and  is  capable  of  influencing  the  consumer  to  make  impulse  purchase. McGoldrick (2001) described store design as representing the general atmosphere of the store, including the visual aspects, the sounds, the scents, and the textures.  It also includes adequate fixtures and fittings, good lighting, wall shelves, adequate space, air  conditioning, soft music, television  set, and sweet  fragrance.   Good store counters and  furniture  are considered  to be extremely important because they contribute a lot in the  visual effect of the store.   Consumers generally have the tendency to shop in good looking stores as compared to unattractive ones. Good looking store environment seems to increase consumers’ adrenaline and their curiosity to

buy more. They derive pleasure buying from stores where they obtain maximum  satisfaction. Lewison and Delozier (1988) thus describe these features as attractors and  interceptors in the store which can be used to induce buying decision.

A feeling of an overwhelming force from the way products are displayed is an element of store design. Howe (1992) described merchandise display as the art of positioning items in the store according to their classes. Modern retailing is very competitive.  Even if a retailer’s product is completely unique, his product is still exposed to competition because there is always another store down the area that is equally aiming at the consumer’s money.  The way a retailer presents his merchandise largely determines how attractive the consumer would be and how much of his interest would be won to the product.   Thus, Rook (1987) opined that product display has an important influence on the consumer’s behaviour and can be responsible for impulse buying.

Furthermore, the assortment of items held by a store is a major element of the retail mix which can easily be used to influence consumer buying decision.  Kotler and Armstrong (2001) defined  merchandise  as the products  and services or lines that a  retailer  offers to the target market.  The type of merchandise offered by a retailer is probably the major determinant of his business and the variety of his products will have  major impact in the buying decision of the consumer.  Thus,  Bovee  and  Thill  (1992)  defined  merchandise  assortment  as  the  array  of products a retailer chooses to carry in the store including the depth and breadth in which these lines are stocked. The breadth of merchandise  is described by Levy and Weitz (1998) as the number of merchandise lines carried by a store, while the depth of merchandise is described as the quality of goods carried in the various colours, sizes, styles, and prices in the store.   Many retailers  nowadays  offer a wide variety of merchandise  in order to afford the consumer  the opportunity to make choice and subsequently buy on impulse.

The price of a product is another element of the retail mix.  Price is defined by Hasty and

Reardon (1997) as the value assigned to something bought, sold or offered  for sale.   Simon

(1989) also defined price as the number of monetary units a customer has to pay to receive one unit of a product or service. Pricing policy is a crucial aspect of merchandise management in a retail outlet.   This is because of the important role price plays in the  process of buying and selling.  While the retailer must protect his business from unwanted losses by fixing appropriate price that covers both cost and profit, he also considers  maintaining  a reasonable  price that consumers can pay and maintain their loyalty.   For a price-conscious customer, a slight cut in price is a strong force to drive such customer to  make unplanned buying and vice versa.   For instance, Grushkin (2001) observed  that  people who are interested  in value more often go to discount stores.

Apart from considering the price factor, every customer desires quality service from a retailer.   The nature of customer service rendered in a store has a significant  influence on the buying disposition of the customer.  McGoldrick (2001) identified customer services to include order-taking  and  modification,  customer  problem  solution,  prompt  attention,  order  inquiry, prompt delivery, and technical information.  The customer wants to experience an innovative and welcoming world of shopping.   He wants to be treated well and as a king even if it may mean spending more money for that. According to McGoldrick, these services are capable of inducing the customer to make unplanned purchase.

In addition to the above features is promotion which is an essential activity in retailing. It is one of the elements of the marketing mix.  Osuala (1998) described promotion as one of the ingredients used to inform and persuade the market regarding a company’s products.   Promotion is a marketing tool used by retailers to create awareness and stimulate interest, persuade people and finally sell a product or its brand.  Promotion mix is made up of advertising, sales promotion, events and experiences,  public relations and  publicity, direct marketing,  and personal selling. On one hand, Kotler and Keller (2005) defined advertising as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.   On the other

hand, Cox and Brittain (1993) defined sales promotion as short-term incentives to encourage a stronger market response and stimulate purchase or sale of a product or service. Kotler (2004) observed that advertising can lead to impulse buying because it creates consumer’s knowledge about the product or brand, thus increasing the chance of  the product being recognized  and chosen on impulse. Kotler further noted that sales promotion activity is capable of making the customer buy what he never intended to buy.

The consumer  is the focus or main target of the retailer.   Every marketing effort  is directed towards the consumer.   The retailer sees the consumer as the reason for his business. According to Osuala (1993) a consumer is a person who actually uses the products or services available in the community.  Similarly, Chukwurah (2004) defined a consumer as an individual who buys and makes use of goods and services produced by other persons to satisfy his personal needs.   While the retailer focuses on satisfying the consumer by meeting his needs, he is also mindful  of his business  profitability  and  sustainability.  The retailer’s  aim  is to  make  profit through improved sales.    This, he can achieve if he understands the buying behaviour of the consumer and presents his product to win that behaviour.

Sullivan (2008) discovered that many retailers are conscious of the consumer  impulse buying  behaviour.    Sometimes,  consumers  are  carried  away  by  certain  distinguishing  and attractive features of the store and they buy things they never planned to buy.  Sullivan described this as unplanned or impulse buying and viewed it as an important consumer buying disposition that retailers can exploit to increase sales.

Hodge  (2004)  described  unplanned  purchase  as  synonymous  with  impulse  buying. Therefore, the two terms mean the same thing and shall be used interchangeably in this study. Rook (1987) observed that impulse buying occurs when a consumer experiences a sudden, often powerful  and  persistent  urge  to  buy  something  immediately.    Furthermore,  Miller  (2002) described impulse buying as a situation where most purchase decisions are made in-store without

a prior plan before entering the store.  In this study, therefore, impulse buying shall be defined in relation to product and store features.  Thus, impulse buying is defined as a buying action that occurs  when  the  consumer  is  exposed  to  an  attractively  presented  or  conveniently  located product in a store.  This description agrees with the opinion of Sullivan (2008) which focused on the retail environment  as being an important  feature that can  encourage  impulse  buying  by consumers.

Thus,   Sullivan   (2008)   maintained   that   retailers   need   to   create   attractive   retail environments to encourage impulse buying behaviour.   Similarly, Hodge (2004) observed that impulse buying represents a significant  portion of sales in a retail  environment.   The above assertions were further upheld by Dotson and Dave (2008) who observed that consumers’ retail experiences are affected by their emotional states, retail  store attributes and parking facilities. Retailers can, therefore, take optimum advantage of the consumers’ in-store buying decisions to improve or enhance their turnover rate.

It is, however, discovered that the bane of many retail businesses in Nigeria in recent times has been the inability of the retailers to organize their stores with attractive features. Most retail stores  in Nigeria appear  to lack attractive  image  and are built with  poor  fixtures and fittings, poor lighting, poor shelves arrangement, and inadequate parking and floor space.  For instance, Ikeazor (2002) and Nwokoye (2004) also observed that the roads are rough and stores are poorly located and organized.

With  the  exception  of  a  few  supermarkets,  most  retail  stores  do  not  consider  air- conditioning, soft music, television set, and sweet fragrance as important attractors to consumers. Regrettably  too,  other  important  variables  such  as  price  reduction,  customer  service,  and promotion activities are seemingly ignored in most of Nigerian retail stores and retailers fail to take advantage of the influence of these variables to better their sales. Since impulse buying is a spontaneous buying decision often made in-store, most retailers in Nigeria appear to have lost

the  advantage  of  increasing  their  sales  and  keeping  their  businesses  alive  through  impulse purchasing largely because of poor organisation and management of their stores.

This study is, therefore,  focused  on examining  the perception  of Business  Education Lecturers in Colleges  of Education  on the influence  of retail store variables  on  the  impulse buying behaviour of consumers.  Business Education Lecturers in Colleges of Education are part of the market for consumer goods and services.   They are teachers of business courses in the Colleges  of Education  who  are trained  in both subject  matter  and pedagogy.    They possess Bachelor’s Degree in Business Education or related discipline as their initial or minimum entry qualification  and subsequently Masters Degree  and Doctor of Philosophy (Ph.D) in the same discipline. The choice of Business Education Lecturers is necessitated by the fact that they teach business  and  entrepreneurial  skills with  which the  students  can utilize  in establishing  retail businesses while others might be employed in retail outfits after their graduation.

Business  Education  Lecturers  are  also  chosen  for  this  study  because,  like   other consumers, they patronize the retailers by buying from the stores.  Business Education Lecturers are sensitive to store variables that provide a satisfactory shopping experience and are also prone to  buying  on  impulse.    The  study also  considers  the  Business  Education  Lecturers  gender because research evidence shows that both male and female consumers patronize retail stores. Shopping of household products is no longer the exclusive activity of women.  Men equally buy and  both  male  and  female  buyers  are  vulnerable  to  impulse  buying.  Business  Education Lecturers are made up of the young, the middle age, and the old ones ranging from age brackets of 25 to 40 years, 41 to 50 years, and 51 years and above respectively.   They all have buying experience irrespective of their age. Whether a lecturer is young, middle age or old, each of them is involved in imparting business and entrepreneurial skills to his or her students.

The Federal Ministry of Education (1989) in its scheme of service for Federal Colleges of

Education and Polytechnics provided for different ranks of Lecturers graduating upward  from

Assistant Lecturers, Lecturers III, II, I, Senior Lecturers, Principal Lecturers to Chief Lecturers in that order from point of entry.  Bachelor’s Degree in Business Education or related discipline is the minimum entry qualification to teach at the College of Education system. The income of the lecturers depends on their ranks.   According to the National Salaries, Incomes and Wages Commission (2007), circular on consolidated tertiary institutions salary structure for lecturers, salaries range from a minimum of N579,391 for Assistant Lecturers per annum  to a minimum of N2,232199  for  Chief  Lecturers.    This  study  makes  use  of  the  2007  salary  structure.    As specialists in Business Education and related business disciplines, Business Education Lecturers have the capacity to respond objectively to the issues raised in this study.

Statement of the Problem

There  is an encouraging  emergence  of retail businesses  in the  North-west  region  of Nigeria partly because of its historical antecedent of being the hub of the tran-saharan trade and partly because the people are generally business-inclined.  It is also observed that in recent times, these enterprises do not last long largely because of ignorance of their  owners with regard to store organisation and management.  Nwokoye (2004) observed that most retail stores in Nigeria appear to lack attractive image and are built with poor fixtures and fittings, poor lighting, poor shelves arrangement,  and inadequate parking and floor  space. The inability of the retail store owners  to  provide  attractive  buying  environment  irritates  their  customers  who,  in  reaction, gradually  withdraw  their  patronage.  Consequent  upon  their  inability  to  provide  soothing shopping  environment,  retail  stores in North-west  zone of the country have not really taken advantage of consumers’ impulse buying behaviour to enhance their sales.

It is, thus, observed that there is an increasing rate of retail business failure in the region. Retail businesses are seen to crumble almost at the very rate with which they spring up, thus failing  to  sustain  the  momentum  of  providing  satisfactory  retail   services  to  consumers. Consequent upon their inability to provide soothing shopping environment,  retail stores in the

North-west zone of the country have not fully taken advantage of consumers’ impulse buying behaviour to enhance their sales.

It is expected that some of the graduates of Business Education from the Colleges  of Education are supposed to make positive impacts in improving retail merchandising as workers in retail outfits or owners of retail businesses having been trained in the skills and knowledge of the trade.  It is also expected that much impact would have been made to improve retail business in  the  zone  because  of  the  Business  Education  students’  involvement  in  industrial  work experience during which they offer advice to owners of retail businesses on how to improve on their enterprises. The extent to which these graduates have been able to utilize the retailing skills learned in school in the real work situation, and  how effective their advice to retail business owners have been, give the Business Education Lecturers much concern especially considering the rate at which these retail businesses fail in the zone.

It is on this premise, therefore, that this study is carried out to determine the perception of Business  Education  Lecturers  in  Colleges  of  Education  on  how  retail  store  variables  can influence impulse buying among consumers in the North-west zone of Nigeria.  Scanty empirical evidence is found in this area, hence the present investigation.

Purpose of the study

The major purpose of this study was to determine the perception of Business Education Lecturers in Colleges  of Education on the influence  of retail store variables  on the  impulse buying  behaviour  of  consumers  in  North-west  geo-political  zone  of  Nigeria.    The  specific purposes of this study were:

1.   To determine the perception of Business Education Lecturers on the influence of retail store location on the impulse  buying  behaviour  of consumers  in North-west  zone of Nigeria.

2.   To determine the perception of Business Education Lecturers on the influence of retail store  design  on  the  impulse  buying  behaviour  of  consumers  in  North-west  zone  of Nigeria.

3.   To determine the perception of Business Education Lecturers on the influence of retail store merchandise display on the impulse buying behaviour of consumers in North-west zone of Nigeria.

4.   To determine the perception of Business Education Lecturers on the influence of retail store merchandise assortment on the impulse buying behaviour of consumers in North- west zone of Nigeria.

5.   To determine the perception of Business Education Lecturers on the influence of price of merchandise  on  the  impulse  buying  behaviour  of  consumers  in  North-west  zone  of Nigeria.

6.   To  determine  the  perception  of  Business  Education  Lecturers  on  the  influence  of customer service on the impulse buying behaviour of consumers in North-west zone of Nigeria.

7.   To  determine  the  perception  of  Business  Education  Lecturers  on  the  influence  of promotion on the impulse buying behaviour of consumers in North-west zone of Nigeria.

Significance of the study

The findings  of this study would be beneficial to retailers,  prospective  entrepreneurs, researchers, students of Business Education, as well as consumers of goods and services.

The findings of this study would be beneficial to retailers.   It would provide  strategic information to the retailers to improve on their store location and design decisions, merchandise assortment  and display, proper pricing of products, customer-oriented  service  delivery, and a well planned promotion programme.   The retailers would use the findings of this study to plan their retail activities towards inducing impulse buying decisions among their customers.

The findings of this study would also be of significance to prospective entrepreneurs in retailing.   As prospective  entrepreneurs  plan their new businesses,  the findings  of this  study would provide the basis upon which they give more attention to relevant features of retailing such as store location, store and merchandise organisation, service delivery and sales promotion that would facilitate more sales through impulse buying.

The findings of this study would also be of significance to researchers in retail marketing. The  various  store variables  including  store location  and  deign,  merchandise  assortment  and display, price of product, customer services, as well as promotion would be of interest to retail marketing  researchers  in  further  areas  of  research.  Marketing  researchers  would  pay much attention to investigating more retailing strategies within the identified variables to improve retail marketing.

Students of Business Education in Colleges of Education would benefit from the findings of this study.   Information  provided  in the  findings  of this  study would  motivate  Business Education   students   to   go   into   retail   entrepreneurship   after   graduation.      Students   who consequently venture into retailing would apply the various retail variables in store location and design, merchandise assortment, display and pricing, customer service and promotion as bases to induce impulse purchasing by their customers.

Business Education Lecturers would also benefit from the findings of this study.   The findings of this study would provide the basis for improved teaching of entrepreneurial skills to students  in the areas of store location,  design,  merchandise  assortment  and  display,  pricing, customer service, and promotion.

The findings of this study would also be of significance to consumers. It would  enable retailers to improve on their store organisation and management to provide a soothing shopping environment  for consumers  who would take retail store shopping as a  satisfying  experience. Consumers would benefit from the improved store location, store design, merchandise display,

merchandise  assortment,  price  of merchandise,  customer  service,  and promotion  for a  more satisfying shopping experience.

Research Questions

The following research questions were answered in this study:

1. What is the perception of Business Education Lecturers on the influence of retail store location on the impulse buying behaviour of consumers in North-west zone of Nigeria?

2. What is the perception of Business Education Lecturers on the influence of retail store design on the impulse buying behaviour of consumers in North-west zone of Nigeria?

3.  What  is  the  perception  of Business  Education  Lecturers  on the  influence  of  retail  store merchandise  display on the  impulse  buying  behaviour  of consumers  in North-west  zone  of Nigeria?

4.  What  is  the  perception  of Business  Education  Lecturers  on the  influence  of  retail  store merchandise assortment on the impulse buying behaviour of consumers in North-west zone of Nigeria?

5.  What  is  the  perception  of  Business  Education  Lecturers  on  the  influence  of  price  of merchandise on the impulse buying behaviour of consumers in North-west zone of Nigeria?

6. What is the perception of Business Education Lecturers on the influence of customer service on the impulse buying behaviour of consumers in North-west zone of Nigeria?

7. What is the perception of Business Education Lecturers on the influence of promotion on the impulse buying behaviour of consumers in North-west zone of Nigeria?

Hypotheses

The following null hypotheses were tested at 0.05 level of significance.

HO1:  There is no significant difference in the Mean responses of Business Education Lecturers with  respect  to  their  rank  on the  influence  of retail  store  variables  on the  impulse  buying behaviour of consumers.

HO2:   There  is  no  significant  difference  between  the  Mean  responses  of male  and  female Business Education Lecturers on the influence of retail store variables on the  impulse buying behaviour of consumers.

HO3:  There is no significant difference in the Mean responses of Business Education Lecturers with  respect  to  their  age  on  the  influence  of  retail  store  variables  on  the  impulse  buying behaviour of consumers.

Scope of the study

This study was restricted to the perception of Business Education Lecturers in Colleges of Education on the influence of retail store variables on impulse buying behaviour of consumers in North-west  zone  of Nigeria.  The  study population  was  delimited  to  Business  Education Lecturers in Colleges  of Education  in the North-west  zone of  Nigeria.    The population was considered  in this  study because  of their  strategic  role  in  the  training  of students  with the knowledge  and skills needed  for retail entrepreneurship  after their graduation.  This area was studied because of its relevance in entrepreneurship and development of retailing in Nigeria. It was also studied because there is very scanty empirical evidence in the area in Nigeria. The study did not cover other aspects of impulse buying like types of merchandise prone to impulse buying, psychological aspect of impulse buying (who buys most on impulse between men and women), and impulse buying in on-line stores.



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PERCEPTION OF BUSINESS EDUCATION LECTURERS IN COLLEGES OF EDUCATION ON THE INFLUENCE OF RETAIL STORE VARIABLES ON IMPULSE BUYING BEHAVIOUR OF CONSUMERS IN NORTH-WEST NIGERIA

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