COMPARATIVE ANALYSIS OF CONSUMER PREFERENCE FOR RICE
ABSTRACT
         This study examines comparative analysis of consumer preference for rice. Basically, this study examines customers' preference for locally made rice and foreign rice, determines the ratings of locally made rice and foreign rice based on such factors as price, nutritional value, taste, cooking process/duration, and packaging, and ascertains the influence of demographic variables on customers preference for rice.
         The survey research design was adopted for this study. The population of this study consists of all consumers of local and foreign brands of rice in Benin City, Edo State. Questionnaires were administered to a sample of 227 respondents through a convenience sampling technique. Collected data from the use of structured questionnaire was analyzed using descriptive statistics such as frequency distribution and simple percentages. All analyses were conducted using Statistical Package for the Social Sciences (SPSS).
On the source of information that influence consumers choice of rice brand, the study reveals that Mama Gold is the most preferred brand of rice, followed by Royal stallion and Caprice then Ofada and Umza rice are the least preferred. This study found out that the most important factor consumers consider when choosing a brand is the good taste. Lastly, this study also reveals that majority of consumers prefer foreign brand of rice to local brand primarily due to the taste and nutritional value of foreign brands. It is recommended that companies producing rice should improve the taste and quality of their product and government should regulate production and distribution of rice to ensure wider participation of local manufacturers
       TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background to the study    -    -    -    -    -    -        
1.2 Statement of research problem    -    -    -    -    -    
1.3 Research question    -    -    -    -    -    -    -    
1.4 Objectives of the study    -    -    -    -    -    -    
1.5 Research hypotheses    -    -    -    -    -    -    
1.6 Scope of the study    -    -    -    -    -    -    -    
1.7 Significance of the study    -    -    -    -    -    -    
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction    -    -    -    -    -    -    -    
2.2 Meaning of customer perception    -    -    -    -    -    
2.3 Customer perception process    -    -    -    -    -    
2.4 Concept of brand preference    -    -    -    -    -    
2.5 Distinctions between brand preference and other brand constructs-    
2.6 An overview of made in Nigeria goods    -    -    -    -    
2.7 Concept of Country of Origin (COO)    -    -    -    -    
2.8 Causes of consumer preference for foreign products    -    -    
CHAPTER THREE: METHODOLOGY
3.1 Introduction    -    -    -    -    -    -    -    
3.2 Research design    -    -    -    -    -    -    -    
3.3 Sources of data    -    -    -    -    -    -    -    
3.4 Population of the study    -    -    -    -    -    -    
3.5 Sample and sampling technique    -    -    -    -    -    
3.6 Research instrument    -    -    -    -    -    -    
3.7 Measurement of variables    -    -    -    -    -    -    
3.8 Validity and reliability of research instrument    -    -    -    
3.9 Method of data analysis    -    -    -    -    -    -    
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction    -    -    -    -    -    -    -    
4.2 Description of background information    -    -    -    -    3
4.3 Consumer brand preference    -    -    -    -    -    
4.4 Reason for preference    -    -    -    -    -    -    
4.5 Ratings of local and foreign made rice    -    -    -    -    
4.6 Discussion of findings    -    -    -    -    -    -    
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.1 Introduction    -    -    -    -    -    -    -    
5.2 Summary of findings    -    -    -    -    -    -    
5.3 Contribution of knowledge    -    -    -    -    -    
5.4 Conclusion    -    -    -    -    -    -    -    
5.5Recommendations    -    -    -    -    -    -    -    
REFERENCES    -    -    -    -    -    -    -    
APPENDICES I    -    -    -    -    -    -    -    
APPENDICES II    -    -    -    -    -    -    -    
LIST OF TABLES
Table 3.1 Reliability statistics    -    -    -    -    -    -    
Table 4.2 Background information    -    -    -    -    -    
Table 4.3 Brand preference    -    -    -    -    -    -    
Table 4.4 Summarised factors influencing brand preference     -    
Table 4.5 Preference based on brand nationality    -    -    -    
Table 4.6 Ratings of factors based on brand name    -    -    -    
Table 4.7 Ratings based on brand nationality    -    -    -    -    
CHAPTER ONE
INTRODUCTION
1.1     Background to the Study
Made in Nigeria goods are goods manufactured in Nigeria. This means that all or parts of the components of the goods are sourced directly in Nigeria. The Nigerian government has over the years encouraged industries in Nigeria to produce goods with the aim of boosting growth and the rapid industrialization of the nation’s economy (Liman, 2006). According to Liman (2006, p. 12), "Before the indigenization of industries in Nigeria, the Nigerian market was flooded with foreign products and Nigerians have been used to the consumption of these imported goods. But with the change of events it became paramount for Nigerians to patronize made in Nigeria goods if the goals of economic development set by the government are to be achieved." One of the items of trade that tops the list of China’s trade with Nigeria is textile.
Traditional textiles have been produced in Nigeria for many years, but real industrial activity in textile production is comparatively recent. After some minor attempts, the Kaduna Textile Mills was established in 1956, followed by Nigerian Textile Mills in 1962 (Jamie, 2007). From inception, these companies were conceived as vertically integrated mills; to convert locally available raw materials, mainly cotton through spinning for the production of yarn, weaving for the production of grey cloth, and dyeing, printing and finishing, for the production of finished textiles. Today, the sector has developed to incorporate fibre production, spinning, weaving, knitting, lace and embroidery makings, carpet production, dyeing, printing and finishing. The sector produces a varied series of fabrics annually, ranging from African prints, shirting, embroideries, etc., to Guinea brocades, wax prints, jute and other products (Jetter, 2002).
Emmanuel Ugwu on thisdaylive writes that there is a growing demand for made-in-Aba products by Nigerians saying that former president of Nigeria, Chief Olusegun Obasanjo cannot by any characterisation pass for a model and when he wears a pair of shoes made-in-Aba, the commercial city of Abia State, he would not be hitting the runway to model the shoes. He said that this commercial hub of Abia State in south-east Nigeria has through the hard work by thousands of artisans carved a niche in finished leather products such as shoes, bags, belts among others. While the artisans were busy churning out their products, government was not looking their way and no conscious policy was formulated to encourage these local manufacturers.  Even as Aba-made shoes, bags, belts and garments were making waves in other countries within the West African sub-region and even beyond, successive Nigerian governments did not take note. Nigerians from other parts of the country contemptuously referred to Aba products as “Aba-made”, which was an expression of inferiority in comparison to imported goods. It was so pervasive that Aba artisans developed inferiority complex and had to start inscribing ‘made-in-Brazil’ or ‘made-in-Italy’ or ‘made-in-Spain’ on shoes that were designed and produced in Aba. It was a survival strategy. “It worked for us then,” said Mazi Johnson Ike, a shoe manufacturer in Aba. “Our own people started buying the same shoes, bags that they were referring to as Aba-made, thinking they were buying imported goods”. It has been disclosed that Nigeria has the capacity to become not only self-sufficient, but a net exporter of rice, adding that the federal government and the stakeholders in the rice sector are determined to reduce the ridiculously high foreign exchange of over N365 billion being spent annually on rice import. Nigeria, with an arable land area of 84 million of arable land, is the second largest importer of rice in the world. Nigeria is not an exemption in using high tariffs on rice. All over the world, rice is the most protected and subsidized of all commodities, with tariffs, tariff-rate quotas and tariff escalation for processing and value added.
In those golden years of the nation's automobile sector, companies such as Peugeot Automobiles Nigeria (PAN) Volkswagen or VON Automobile Nigeria, NTM of Kano and a host of others were manufacturing cars locally and vehicle brands such as Peugeot 404, 504, 505 Evolution, Volkswagen Beetle, Passat and others were the status conferrer such that anyone who has not driven one was yet to join the club of the affluent. Today, the reverse is the case as the multi-million naira investments of these companies have almost gone into extinction and Nigerians have developed a penchant for driving imported brands. What is more, prices of locally made automobiles went out of reach of the average Nigerian with many now driving second-hand "tokunbo" cars. According to Executive Secretary of Nigerian Automotive Manufacturers Association (NAMA), Arthur Madueke, the number of component companies in the country has reduced from about 150 to 50, adding that the extinction of local tyre manufacturers like Michelin and Dunlop has equally contributed to the high cost of production in the sector as virtually all components needed are imported. Besides, he noted that inadequacy in power supply and the high cost of energy are equally responsible for the poor performance of existing auto plants in the country.
The preference among Nigerians for foreign made goods is both alarming and disturbing especially when considered in the light of its effect on local industries. The general notion among some Nigerians is that locally made goods are inferior to imported and foreign made goods in terms of quality and performance to the extent that some local manufacturers have resorted, in a bid to remain relevant, to claiming a foreign origin for their products (Ogunnaike, 2010).
As our society undergoes rapid changes and becomes more affluent, newer social forces make consumers spend a greater part of their income in ways remarkably different from what took place in the past. Consumers want the advantage of the affluent and latest services that technology and business can offer (Achumba, 1996). Also marketing failures have been caused by ignorance and underestimation of consumer motivation, perception and behaviour in the market place. The consumer is a personality whose behaviour is governed by different and varied influences such as: his society beliefs, attitude, his past learning, experience, perception and his expectations. These form his taste choice and product preference (Ogunnaike, 2010). These research therefore seeks to examine those factors that influence and affect consumer buying decision with a view to providing the rationale for Nigerian consumers seeming preference for foreign products over locally manufactured goods.
1.2     Statement of the Problem
The improvement in the standard of living of the people stimulated by economic growth, made the taste of Nigerians for foreign goods to be high at the detriment of made in Nigeria goods, which they perceived to be of inferior quality.  Innovation in areas of new product development coupled with the rise in customers demands for foreign goods and services has made it necessary for manufacturers in Nigeria or the industry as a whole to embrace marketing and its concept.  The growing sophistication of consumers and their passion for foreign imported products and services thus became a problem for manufacturers and the managers of the Nigerian economy. The cost of marketing activities in Nigeria has also continued to be on the increase. For manufacturers to meet up with operational costs and make a little margin it means that they have to go an extra mile to convince Nigerians to patronize their products (Liman, 2006).  Another problem is in the area of quality of the goods; most Nigerian made products are of substandard quality when compared with the foreign imported products. No one will ever want to buy a product of low quality. Most made in Nigeria products are of low quality which may be the consequence of producers trying to make excess profits or over management of resources. For instance, you cannot expect a Nigerian to purchase a bag of rice which half of it is filled with stones and other dirts, instead the Nigerian will prefer to purchase a bag of rice produced elsewhere without stones in it. This therefore has contributed to the negative perceptions Nigerians have of made in Nigeria products. According to Liman (2006, p. 16), "Rapid improvements in technology have also contributed to the problems faced in the marketing of made in Nigeria goods. Most Nigerian manufacturers do not have access to the Internet and in the modern day, the place where most marketing transactions are concluded is on the Internet." Another problem here is discrimination. Sometimes we are our own problems. Most people perceive goods made in Nigeria as inferior, and of lower quality compared to goods made in other country and as a result chose not to buy made in Nigeria products. Those who are willing to buy this made in Nigeria goods gets discriminated, for example with sayings like ''that guy Is always wearing Aba made'' and as a result, the individual stops buying made In Nigeria goods to avoid the embarrassment of wearing 'Aba made'. The fact that the raw materials used in manufacturing these made in Nigeria products is not sourced in Nigeria is an important issue to point at. Manufacturers who spoke to Bukola Adebayo, a correspondent on Punch newspaper said due to unfavourable policies, lack of infrastructure and investment and the bad condition of the petrochemical and agricultural sector, more than 90% of the raw materials they use are imported from Italy, Germany, China and other countries. For instance, the only raw material that is sourced locally in the production of sachet water, popularly known as ‘pure water’, is the water itself. According to the Managing Director of El-Elyon Water, a producer of sachet water in Ibadan, Oyo State, Mr. Tola Adeniyi, 80 per cent of the chemicals used in purifying water and the petrochemicals used in producing the sachet are imported. When sachet water manufacturers increased their prices in January  from N80 to N120 per bag, many thought  it was informed by fuel scarcity but the increment came about because of scarcity of forex. Poor after-sale services also contributes to the negative perception customers are having for products manufactured in Nigeria. If you purchase a Mercedes Benz today in Nigeria, be rest assured that there are many outlets or mechanic shops where you can service or maintain your Benz. If for example, you purchase an Innoson vehicle which is produced in Nigeria but doesn't have authorized servicing outlets where you can service or maintain the vehicle, you will definitely be discouraged to buy the innoson car produced in Nigeria and rather choose the Toyota vehicles instead. These among other other issues has resulted in negative perception customers have of made in Nigeria products, and the low patronage suffered by goods produced locally.
1.3     Research Questions
1. Does customers prefer foreign rice to locally made rice?
2. How can locally made rice and foreign rice be ranked based on some certain attributes? (Price, nutritional value, taste, cooking process/duration, and packaging)
3. How has demographic variables influenced customers’ preference for rice?
1.4     Objectives of the Study
The main objective of this study is to examine customers' perception as it affect the patronage of made in Nigeria goods with focus on Benin City, Edo state and its environs.  The study also has the following specific objectives:
1. To comparatively examine the customers' preference for locally made rice and foreign rice
2. To determine the ratings of locally made rice and foreign rice based on some certain attributes. (price, nutritional value, taste, cooking process/duration, and packaging)
3. To ascertain the influence of demographic variables on customers' preference for rice
1.5     Research Hypotheses
The following hypotheses have been developed and will be tested in the course of the study:
1. There is no statistically significant difference in customers’ perception of locally made rice and foreign rice.
2. Demographic variables (gender, marital status, age, educational qualification, and income level) do not significantly influence customers' perception of locally made rice and foreign rice.
1.6     Scope of the Study
Based on the vital role played by the manufacturing industry in a nation's economy, with many customers who are people with different experiences and personalities from various locations and backgrounds, any study involving perception of products manufactured will perhaps involve people for it to more useful. This has made it necessary for the researcher to limit the scope of study to Benin City, Edo State and its environs. This research will feature 227 customers and the project will be completed over three months where the perception of these customers will be assessed with respect to locally made rice and foreign rice.
1.7     Significance of the Study
Perception contributes to the growth and increase of patrons or customers of a business entity in Nigeria. Hence, a study of this nature is justified by the benefits to be derived from it by the stakeholders in the manufacturing industry as it will touch on various issues that centres on perception made about Nigerian products. The study is also significant in the sense that it will examine the challenges associated with made in Nigerian goods in Benin City and its environs. The study will also serve as a contribution to knowledge and would be useful as a reference/guide to policy makers, operators in the industry and future research endeavours with similar dispensation.  It is also expected that recommendations that will stem from this discourse will serve as an important data for the manufacturers, regulatory authorities and customers hence it will be a contribution to knowledge.