CONSUMER PROTECTION POLICY IN NIGERIA

(A CASE STUDY OF SURVEY OF CONSUMERS IN ENUGU STATE)

ABSTRACT

Marketing as a profession and an academic discipline has undergone a rebirth which has made it’s principles more embracing and positive in it’s everyday application in improving product innovation.  The main aim of this project is to known the impact of “marketing mix” in the accomplishment of organization objectives. Over the years, unfective marketing communication has had a negative effect on marketing mix, which makes is ask question.  How much is marketing communication (promotion) appreciation in enhancing the positive outcome of other marketing variables.  Marketing communication itself is the effort by a firm or company to design and disseminate information about it product existence, feature turns and the benefits to the target markets, using different medium. This study is expected to throw more light on how effective marketing mix (product, price, promotion, and place) can help accomplish organization objectives.

TABLE OF CONTENTS

CHAPTER ONE 

INTRODUCTION                                                                           

1.1        Background  of the Study                                     1

1.2        Statement of the study

1.3        Objectives  of the Study

1.4        Hypothesis/  Research  Questions

1.5        Significance of the study

1.6        Scope/  Delimitation  of  the  study

1.7        Definition of  terms

1.8        Limitation  of the  study

CHAPTER TWO

REVIEW OF RELATED LITERATURE                       

2.1        Scope of Consumerism

2.2        Perspective on Consumerism

2.3        The Nigeria Context

2.4        The Need for Consumer Protection in Nigeria

2.5        Basic For Consumer Protection Policy in Nigeria

2.6        Perspective on Consumer Protection

2.7        Consumer Laws in Nigeria

2.8        The Consumer Profile

CHAPTER THREE

RESEARCH METHODOLOGY                                              

3.1        sources  of Data

3.2        Research Instrument Used

3.3        Population  of the  study

3.4        Sample Size for Consumer

3.5        Sample Size for Producers

3.6        Questionnaire Distribution

3.7        Pattern of Questionnaire Distribution

3.8        Questionnaire Distribution

3.9        Problems Encountered

CHAPTER FOUR

PRESENTATIONS AND ANALYSIS OF DATA

4.1        Presentation  and  Analysis  Of Data

4.2        Test  of  Hypothesis

CHAPTER FIVE

DISCUSSION OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1        Summary of Findings

5.2        Recommendations

5.3        Conclusion

Bibliography

Appendix

CHAPTER ONE

1.0       INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Marketing practices in the early sixties have its way through satisfying the manufacturer and his goals without considering the consumers position in the product.

Nwaneri (1981), noted that the social orientation in marketing of these early times challenges and changes or cultural values and socio-economic conditions that give rise to consumers dissatisfaction and grievances against marketing activities.  Therefore, one would say that consumerism is a protest against marketing malpratices and or any endeavour to eradicate marketing injustice and malady.

Consumerism, with its emphasis on the consumers right is increasingly becoming a crucial topic in marketing scence with a lot of implications, for business.

According to Assael (1984) consumerism is the set of activities of independent organization government and business a like, designed to protect the consumer the primary concern is to ensure the consumers rights in the process of exchange.

These rights include the rights to information, to be told the truth, to be given the necessary and adequate alternatives, and to be assured of his health and safety in the process of consumption.

Basically, business accepts the marketing concepts of consumer sovereignty, which enjoying that the consumer is the focal point of the economic system this is done through the operation of the market system the consumer not only determine, but also directs the flow of goods and service.  To this extent, he is supreme in the market place and did not need further protection.  On the other hand, the government argues that consumer, supremacy is a mischievous trick played on for a joke and their it has a constitutional obligation to protection the citizens who are consumers’ in one way or the other.

Baker, (1979), while examining the concept of marketing suggested that if economic are comprised of people and we are endeavouring to allocate scarce resources, in order to maximize satisfaction, then it is the satisfaction of people which we are aiming at.

This being so essential that we determine first, What the people want and then allocate our resources, accordingly.  In this respect, how ever, the government should come in, in the market system to affect control over business through legislative and regulating processes, which in the middle of the controversy.  The consumer in the face of many products with increasing complexities has remained a helpless victim. It is important to not here that consumption has not been very much pursued with regard to developing the countries like Nigeria.

However, certain developing countries under certain measure to demonstrate government effect in the direction of consumption in Nigeria Onah (1979).

The measure include:-

i.             The rent decree / edict

ii.            The enactment of price control decree of 1970

iii.          The promulgation of the food and grug decree of 1974

Generally, in this regard, the consumer protest rest on balancing the manufacturers profit motives with the consumers satisfaction.  It is clearly stated that the main cause of consumer discontent with the business enterprise is marketing since it is only part of the consumers. However, it is obvious that the consumers dissatisfaction and any attempt to remedy thus arise from the relationship an organization has with the consumer.

1.2    STATEMENT OF THE PROBLEM

Generally, inspite of the outside intervention in the market mechanism, there are still complains of discontent.  These are however, reflection in incessant journalistic, exposition of unethical business practices, business insensitivity to the aspiration of the consumer.  These have been seen in the expression of concern about the image of corporate sector in Nigeria.  consumers have always suffered in the wrath of productive errors and marketing aggrandizement.

From the foregoing, the question that arises hings on whether in fact, the Nigeria consumer need protection by way of more governmental legislation; is he aware of the operating consumer laws and to what extent has he coursed to them when ripped off in the market place?

Would he had been better protected through extra government machinery like personal and group mobilization, or through vigorous consumer protection, movement? What have actually contributed to consumers’ lack of interest, inertia or apathy in fighting for their rights when in fact there are legislative or government bodies to protect them in Nigeria?  Does it means that these consumer protection policy objectives are fast shifting grounds, are they fast becoming obsolete in Nigeria environment?  What have actually become of some consumer, protection policies in Nigeria such as standard organization of Nigeria act of 1976, National Agency for Foods and Drugs Administration Control (NAFDAC) counterfelt and take drugs (MISC, Provision) Decree of 1989, National Drug Law enforcement Agency act of 1989.

1.3    OBJECTIVES OF THE STUDY 

The following objectives of this research study are listed below:

i.             To explore other forms of consumer protection other than direct government intervention

ii.            To determine the desirability or otherwise of more consumer protection legislative in Nigeria.

iii.          To draw out critically the marketing implication of consumerism to the Nigeria marketer.

iv.          To carefully examine the subject matter of consumerism as certaining the extent of consumer protection in Nigeria.

v.           To ascertain also, the extent of consumer awareness of consumer protection laws in Nigeria.

1.4       HYPOTHESIS / RESEARCH QUESTIONS

Based on the objective specltout above, the following, formulation of hypothesis/research questions are below listed:

i.            Hull (H0): Nigeria consumers are not sensitive to their rights in the market place.

Alternative (HA): Nigeria consumers are sensitive to their rights in the market place.

ii.          Hull (H0): Majority of Nigeria consumers’ are unaware of major consumer protection laws in Nigeria.

Alternative (H0): Nigeria consumers are aware of major consumer protections law in Nigeria.

iii.        Hull (H0): The concept of consumer sovereignty cannot ensure adequate protection of Nigeria consumers.

Alternative (Hn): The concept of consumer sovereignty, cannot ensure adequate protection of Nigeria consumers.

1.5    SIGNIFICANCE OF THE STUDY

To the business organization, this is practically and particularly crucial having accepted in principle that corporate profitability depend on how logical advances in recent years have changed the entire complexion of the market place.  It has become increasingly impersonal complex, confusing and most importantly frustrating to the consumer.

Business must realize that consumer protection, can lead to actions which can in the short run, erode the manufacturers profit in the long run lead to the total liquidation.

The entrepreneurial by word of “caveat enptor” (the buyer beware is no longer relevant today) hence business must riser to the challenges of awakening consumer interest.  The result will be shown but also in respect of purchases and brand loyalty which of course are eh hall mark of the satisfied consumer.

Moreso, this study is to limited to production companies alone, but it extends to the service organization such as school (whether private or public). The government agencies / bodies such as the police force, customs, army, post office, hospital and even the general attitude of the government towards her public consumer.

Therefore, the extent of consumerism is not just limited to the scope of the production and marketing organization alone.  It makes a great deal of sense for business to recognize that it has concern with the consumer interest.

The most important things about a firm is not its physical assets which an become valueless over rights without customers.

The major assets of company has in the long run is the loyal customer.  Loyalty of the customer, means a continuous patronage, stable market and this in effect means the stability of the firm in term of profit, survival and growth (Kolter 1974) the company’s survival and growth even personal satisfaction are only possible with continuous and increased sales of the company’s rather than the orientation of its physical assets.

1.6    SCOPE / DELIMITATION OF THE STUDY

For the purpose of drawing a fairly representative, sample the survey was carried out in Enugu and Mgbowo in Enugu and Agwu local government areas of Enugu state respectively.  The consumers included in this study are those between 18 and 80 years.

SIDE VIEW OF ENUGU

Enugu is the capital of Enugu State.  The town has been the seat of government since Nigeria’s independence in 1960’s Enugu is compliant in nature mainly inhabited by public servants and private businesses.  One can boast of infrastructure, facilities like pipe –born water, goods road electricity, telecommunication services, there are many educational institutions such as two polytechnics, federal polytechnics Uwana and Institute Of Management and Technology projected population was about 535, 428 , 1988.

For part of the questionnaire, Enugu was zoned into two components Enugu South and North.  For the North, it comprise of Enugu urban which is the local government headquarter, Enugu Ugwuaji and Nike while the South comprise of Akwuke Amechi Awkunanaw, and Uwani which is the headquarter of the local government.

MGBOWO TOWN

The town with the population of about 20, 690 as per Enugu state population statistical document No. 3 of 1985 and is located in Agwu local government of Enugu state.  The town is about 40 kilometers from Enugu.

It has five villages Aliechera, Inyi, Ezioha Amada, and Imama. It is bounded in the North by Neriwe in South by Awgu in the East by Ndeaboli and in the West of Maku.

It has Ekemgbowo as its market, occupation of the people is mainly trading and farming. In terms of infrastructure, this electricity, postal agency no pipe born water and the maternity.

There are all privately owned with the exception of Enugu Port Harcourt express road, the road leading to the town is dilapidated.

1.7    DEFINITION OF TERMS

1.      Consumer: Hoyer and maclnnis (1997:3) noted that the consumers are the people acting as individuals, or groups who purchase goods and services to satisfy their personal and household consumption needs.

According to Kotler put simply consumer is an organized movement of concerned citizens and government to enhance the right and power of buyer in relation to sellers.

ii.          Brand Name: Knaur (1969:25) described brand name as that product that differ it from others,. In other word if is a name terms, sign, symbol or design or a combination of them, intended to identify the good and services of one seller or group of seller and to identify them from those of their competitions.

iii.        Publicity: According to the Adirika, Ebue, and Nnolim(1996:90) stated the various ways, in which publicity can appear which are. It could be press relation, (that is placing news worthy items in the news media) product publicity (e.g launching a new product) lobbling (that is fighting indesirable government policies and legislation or promoting and supporting the desirable, consumer protection policy.

iv.         Consumer Protection: Odutayo (1989:5) noted that the consumer protection is the way of government argue that consumer supremacy is a mischievous trick played on for a joke and that, it has a constitutional obligation to protect the citizens who are the consumer is one way or the other.

v.           Advertising: Udeaha (1999:182) added that advertising unlike personal selling is non personal or public mode of communication.  The message is transmitted simultaneously to a large audience.

Adirika (1996:88) view advertising as any paid form of non-personal presentation and promotion of ideal, goods and servicing by an identified, sponsor, involves the use of mass medium.  These mass medium (media) include; radio, television, neither paper, magazine, out door displays such as posters and signs direct mail etc.

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