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THE SIGNIFICANCE OF PRODUCT QUALITY ON THE DEMAND FOR INDUSTRIAL PRODUCTS

Format: MS WORD  |  Chapter: 1-5  |  Pages: 62  |  970 Users found this project useful  |  Price NGN5,000

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THE SIGNIFICANCE OF PRODUCT QUALITY ON THE DEMAND FOR INDUSTRIAL PRODUCTS


CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Products are essential to the success of a company industries develop products to replace those that have become out dated in the eyes of consumers. Companies have to develop new products to satisfy the changing needs of customers, they also have to be developed in an attempt to contain competition without resorting to price competition. Moreso, product may be an invention or innovation or a modification of an existing product to an extent that customers perceive the modified version as different. It may also be existing product just entering a new market.

Industrial products are intended to be used for making other product or for resale. They include items bought to facilitate the smooth running of an organisation, thus industrial product are aimed at facilitating and expediting exchange between producer and sellers and user who buy for making other products or for the smooth running of their organisation. Industrial products are classified into: raw materials component parts and materials, installations or major, capital equipment, supplies, accessory equipment, and services.

This project is focusing on product quality” therefore finding and meeting customers need is in large measure the essence of project quality. So many successful companies constantly renew their commitment to develop, make and market innovative, easy to use high quality product without product. There is virtually nothing to market and without marketing there would have been any success, any business enterprises.

Good products are keys to market success any film will large succeeds or fails on the basis of it product. This is not because there is no substitute for consumer experience with the product. When satisfied, customers had a first experiences with the product while the other element of marketing mix, are the reasons for transactions and exchange, which transpire between the firm and it customers. Firms that are customer oriented do make a concerted effort through management initiatives marketing research consumer studies in order to put pot the best produce and services that consumer demand.

Industrial products refer to good produced in a factory with the use of machinery and technology. The first industrial products appeared in Britain during the 18th century and were a result of the increasing development in the metallurgic and textile industries. The advent of the industrial Revolution caused a swift change from an agrarian economy to a machine dominated are only in Britain, but in other developed countries around the world. From food and clothes to computers and cars industrial product are today not only an important parts of people’s lives but also base on money countries economy.

The demand quality produce is critical in industrial sector because it helps to ensure customer satisfaction and improves the perceptions of an organisations brand. Product quality provides a strong compel taxes advantage and is an essential requirement for doing business with customer and buyer’s of industrial product. According to international organisation for standardization (180) quality management are tools an industrial distribution need to meet the quality requirement of its customers enhance customer satisfaction and on the long-run maintain organisation standard to meet its and acquire an economy of sale. Demand for industrial products is derived explain also how you estimate the quality on product demand for industrial product.

Industrial product consists of all activities involved in the marketing of products and services to organisation i.e. commercials enterprises, profit and not for profit instructions, government agencies and resellers that use products and services in the further production of consumer or industrial goods and services and to facilitate the operation of their enterprise viewed from the perspective of marketing the quality of product on industrial demand for products require the extensive features that is attached to what a product can offer the satisfaction it can create, the end result of what an individual or organisation tends to achieve which is done through exchange process.

1.2    STATEMENT OF RESEARCH PROBLEM

The problem here is to find out how firm plan and develop their products. The emphasis have is that some companies do not plan or develop their product yet they succeed on the other some may plan and still fill. Even then it is important to plan and develop product therefore the problem which this project want to address is that problem of finding out the development of product quality. Also to find out if there are underling ideas, concept and phenomena. The problem of whether there exist an alternative to a firm would be looked into so that the relevance of the study would be defended. The project work will all attempt to ascertain height of product quality and why it is necessary to appeal consumer attention after maturity stage.

1.3    OBJECTIVES OF THE STUDY

i.        To find out the causes of industrial product in the market and suggest answers to such problem.

ii.       To provide a self explanatory definition of product quality as a concept of improving the quality of industrial product.

iii.      The research will also find the quality and its importance to the industries.

1.4    RESEARCH QUESTIONS

i.        What are the causes of industrial product in the market and suggest possible solutions.

ii.       Does produce quality reduce customer satisfaction?

iii.      Is product quality a difficult excise involving many problems?

1.5    SCOPE OF THE STUDY

          This study is mainly aimed at identifying the importance of product quality on the demand for industrial product. It is therefore directly related to the structures and quarrying business with particular interest on (SETRACO Nigeria Plc).

1.6    SIGNIFICANCE OF THE STUDY

          It is worth mentioning here that industrial sector of the economy would find this research work useful so long they would want to remain in the market as it will serve them as a guide for the planning and development of product qualities successfully.

          Business students would also find this work useful in their research work or reference work. Also customers would be able to know the effort of industrial products it satisfy them profitably

1.7    STATEMENT OF HYPOTHESIS

          To accomplish the objectives of this work, the following hypothesis which are the null form (Ho) shall be tested using the alternative experimental hypothesis (Hi) by chi-square. The hypothesis includes the following;

1.       Ho:    Product quality reduce customers satisfaction.

          Hi:     Product quality increase customers satisfaction.

2.       Ho:    Insufficient product planning on quality, poor launching are not responsible for product failure.

          HI:      Insufficient product planning on quality, poor launching are responsible for product failure.

3.       Ho:    Product quality is not a difficult excise involving many problems.

          HI:     Product quality is a difficult excise involving many problems.

1.8    OPERATIONAL DEFINITION OF ESSENTIAL TERMS PRODUCT

          Masojies (2001: P3) Saw product as anything that can be offered to a market for alternative, use or consumption that might satisfy need or want or a product is a sat of tangible and intangible attributes packaging, colour, price quality brand plus  sellers services and reputation product are like living organisms they are born, they live and they dies. A New product that is introduced into the market will grow and when it loses appeals it is terminated.

PRODUCT QUALITY: Product quality embrace all activities that enable a company to determine what product to market what number of the product to carry the uses that are available.

PRODUCT DEVELOPMENT: In developing a product the product planner needs to think about the product in three ways which are the following;

1.       Core product

2.       Tangible product and

3.       The Augmented product

1.       The Core Product: The most basis level is the core product which includes why the buyer really want to buy the product, what is the benefits he will derived in buying the product because every product must satisfy a want.

2.       The Tangible Product: These are product that normally survive many uses they can be use for many year, these Tangible product may have the following characteristics to assist the core product such as level, feature styles or staying e.t.c.

3.       The Augmented Product: This is the extra benefit that has been attached to the product for the enjoyment of the customers.

Here the market must recognise what interest the customer want in the product. It helps the marketer to look at the buyers total expectation that is what he/she wants to accomplish when using the product.

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