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CONSUMPTION BEHAVIOUR OF NIGERIANS TOWARDS HOME MADE GOODS

CHAPTER ONE

INTRODUCTION

Background to the Study

The major reason why customers buy product and/or service is the value delivered. The realization of this fact has made marketers and marketing departments of firms to pay attention to consumer value creation in order to retain customers’ loyalty and capture potential customers through existing ones for the purpose of profit maximization. It is for this reason that Albert and Peter (2018) noted that understanding and creating consumer value has become an important prerequisite for long term business success. This alluded to the fact that every business success rest upon its ability to deliver value to customers through British Journal of Management and Marketing Studies Therefore, businesses’ concerted marketing efforts are focused on the issue of value delivery to customers significantly.

Iyanna, Bosangit and Amrul (2018) noted that the significance businesses attached to delivery of consumer value points to the fact that their exchange relationship with consumers is based on giving up value in order to get value in return. Evidences in existing literature showed that understanding consumer value may be very intricate based on the fact that from whatsoever perspective the concept is viewed, it centres on evaluative judgments that are subjective to consumers (Sánchez-Fernández and IniestaBonillo, 2017).

Supporting this, Atalık (2019) noted that all literature providing definitions for consumer value centre on consumers’ evaluation of ‘perceived value’ as it relates to either the quality of a product and the price paid or the benefit derived from the product and the price paid. In other words, ‘quality at the right price’ or ‘satisfaction derived at the right price’ defines consumer value. Iyanna, Bosangit and Amrul (2018) reviewed two schools of thought definitions of the concept of consumer value. The first school of thought defined consumer value as a unidimensional construct measured through consumer’s perception of the overall benefits received from a product for the money paid, and the second school of thought defined the concept from a multidimensional approach measured through the assessment of many components of values derived from the purchased product/service. Nevertheless, no matter the approach a business may adopt in understanding consumer value, one thing is sacrosanct, it is in order to serve the consumers that the business is established, hence delivery consumer value through product and/or service offerings would be in the interest of every business in today’s highly competitive business world (Albert & Peter, 2018).

Supporting this, Kumar (2018) noted that to sustain a business, the business must first create value for its customers through its offerings and in same process derive value from its customers in form of profit. It is worth noting therefore that because consumer value is based on perception, it becomes very difficult to precisely predict what constitute it using one approach without aligning it to other measurable values. This accounts for the many different categorisations of values attributed to the concept and the lack of uniform definition of the concept amongst marketing researchers. For instance, Holbrook (2018) in order to create a clearer picture of consumer value gave a framework that reorganizes the eight types of identifiable values earlier postulated in into four general values which are: economic value, hedonic value, social value, and altruistic value. Economic value encompasses efficiency and excellence while hedonic value includes play and aesthetics. Social value covers status and esteem whereas altruistic value includes ethics and spirituality.

Smith and Colgate (2017) in their consumer value framework however grouped consumer value into functional/instrumental value, experiential/hedonic value, symbolic/expressive value, and cost/sacrifice value. Kumar (2018) opined that consumer value from the business perspective can be viewed as an asset and evaluated by determining the lifetime value of the consumer. Although, consumer value can be viewed from both consumer and business perspectives, within the context of this work, consumer value is deemed as the benefits that the consumer derived from the product/service purchased. According to 

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