CONSUMERS’ ACCEPTABILITY OF LOCAL RICE BRANDS IN NIGERIA. WHICH MARKETING FUNCTIONS REALLY MATTER?
Abstract
With an average annual import bill of USD 300 million,Nigeria is the Africa’s largest rice consuming and importingcountry. This has been attributed to the poor qualityof locally produced rice. Despite huge investments of overUSD 1.65 billion made by government and private sectorsin rice processing over the last six years – which has led todramatic improvements in the quality of local rice brands –the consumers’ preference for imported rice brands persists.Prioritizing the implementation of consumer demand-focuseddomestic marketing policies and programs could encouragethe consumers’ acceptability of local rice brands. Therefore,this study attempts to provide some insight, from the consumerperspective, on the local rice marketing managers’ need toimprove their functions. A binary logistic model was estimatedusing a 2014 dataset collected from a survey with 460 riceconsumer households in the Federal Capital Territory (FCT)of Nigeria. The results showed empirical evidence for the consumers’acceptability of local rice brands in Nigeria and theneed for improvements in marketing functions that enhancethe promotion and distribution of local rice brands. The implicationsof these findings for the development of Nigeria’s ricemarketing policy are discussed.
Keywords
consumer’s acceptability; local rice brands; marketing functions; Nigeria
References
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Eckman, M., Warner, J. (1994). Judging the attractiveness of product design: The effect of visual attributes and consumer characteristics. Adv. Consum. Res., 21(1), 560–564.
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Hogg, M. K., Cox, A. J., Keeling, K. (2000). The impact of self-monitoring on image congruence and product/brand evaluation. Eur. J. Market., 34(5/6), 641–666.
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Kurtz, D. L., Boone, L. E. (1987). Marketing (3rd ed.). Chicago: The Dryden Press.
Lancaster, K. J. (1966). A new approach to consumer theory. J. Polit. Econ., 74(2), 132–157.
Lancon, F., Olaf, E., Akande, S. O., Titilola, S. O., Akpokodje, G., Ogundele, O. O. (2003). Imported rice retailing and purchasing in Nigeria: A survey. Project report – The Nigerian rice economy in a competitive world: Constraints, opportunities and strategic choices. West Africa rice development association (WARDA) Abidjan, Coted’Ivoire.
Latvala, T. (2010). Risk, information and trust in the food chain: Factors explaining consumer willingness to pay. Int. J. Food Syst. Dyn., 1(4), 295–304.
Lauterborn, B. (1990). New marketing litany: Four Ps passé: C-words take over. Advertising age, 61(41), 26.
Lee, J. H., Seo, J. G., Choi, J. H., Kim, T. G., Jeong, J. G., Kim, S. H., Lim, S. Y. (2004). A study on strategy for 2004 rice negotiation. Research report, Korea rural economic institute.
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Mathur, A., Moschis, G. P., Lee, E. (2003). Life events and brand preference changes. J. Cons. Beh., 3(1),129–141. McCarthy, E. J. (1964). Basic Marketing, IL: Richard D. Irwin.
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Meenaghan, T. (1995). The role of advertising in brand image development. J. Prod. Brand Manag., 4(4), 23–34.
Menard, S. (1995). Applied logistic regression analysis. Sage University series on quantitative applications in the social sciences. Thousand Oaks, CA: Sage.
Michaut, A. M. K., van Trijp, H. C. M., Steenkamp, B. E. M. (2002). Dimensions of product newness and their differentia effect on market success. Paper presented at 31st EMAC conference, May 28–31, Braga, Portugal.
Möller, K. (2006). The marketing mix revisited: Towards the 21st century marketing by E. Constantinides. J. Market. Manag., 22(3), 439–450.
Myers, J. H., Allan, D. S. (1981). Research in Marketing. JAI Press Inc.
Nundkumar, P., Singh, A. M. (2016). Repositioning the Durban chamber of commerce using the 4Ps of marketing. Retail Market. Rev., 12(2), 1–13.
Ogbe, A. O., Okoruwa, V. O., Saka, O. J. (2011). Competitiveness of Nigerian rice and maize production ecologies: A policy analysis approach. Tropic. Subtropic. Agroeco., 14, 493–500.
Ogundele, F. (2013). Determinants of household rice consumption in Nigeria: Application of Working-lesser single equation model. Net J. Agric. Sci., 1(2), 48–55.
Ogundele, O. (2014). Factors influencing consumers’ preference for local rice in Nigeria. Afr. J. Market. Manag., 6(4), 49–55.
Pambo, K. O., Julius, J., Okello, J. J., Mbeche, R., John, N., Kinyuru, J. N. (2016). Consumer acceptance of edible insects for non-meat protein in western Kenya. Paper presented at the 5th African Association of Agricultural Economists (AAAE) conference at the United Nations conference center, Addis Ababa-Ethiopia, September 23–26, 2016.
Palmer, A. (2004). Introduction to Marketing – Theory and Practice, UK: Oxford University Press.
Popovic, D. (2006). Modelling the marketing of high-tech start-ups. J. Target. Measur. Anal. Market., 14(3), 260–276.
PROPCOM (2007). Demand and supply study on domestic and imported rice in Kano area. Monograph Series # 22, July, 2007.
Ramasamy, K., Kalaivanan, G., Sukumar, S. (2005). Consumer behaviour towards instant food products. Int. J. Market., 35(6), 24–25.
Sethuraman, R., Tellis, G. J. (1991). An analysis of the tradeoff between advertising and pricing. J. Market. Res., 31(1), 160–174.
Seck, P. A., Tollens, E., Wopereis, M. C. S., Diagne, A., Bamba, I. (2010). Rising trends and variability of rice prices: threats and opportunities for sub-Saharan Africa. Food Policy, 35(5), 403–411.
Swait, J., Erdem, T., Louviere, J., Dubelaar, C. (1993). The equalization price: A consumer-perceived measure of brand equity. Int. J. Res. Market., 10(1), 23–45.
Tellis, G. J. (1988). The price sensitivity of competitive demand: A meta-analysis of sales response models. J. Market. Res., 15(1), 331–341.
Tellis, G. J., Zufryden, F. (1995). Cracking the retailer’s decision problem: Which brand to discount, how much, when and why? Market. Sci., 14(3), 271–299.
Tomlins, K. I., Manful, J. T., Larwer, P., Hammond, L. (2005). Urban consumer preferences and sensory evaluation of locally produced and imported rice in West Africa. Food Qual. Pref., 16(1), 79–89.
Tomlins, K., Manful, J., Gayin, J., Kudjawu, B., Tamakloe, I. (2007). Study of sensory evaluation, consumer acceptability, affordability and market price of rice. J. Sci. Food Agric., 87(8), 1564–1575.
USAID (2009). Global food security response: West Africa rice value chain analysis. MicroReport, No. 161, United States Agency for International Development (USAID), Washington, D.C.
Wolfe, M. J., Crotts, J. C. (2011). Marketing mix modeling for the tourism industry: A best practices approach. Int. J. Tour. Sci., 11(1), 1–15.
Yamane, T. (1967). Statistics: An Introductory Analysis (2nd Ed.). New York: Harper and Row.
Adeyeye, J. A., Navesero, E. P., Ariyo, O. J., Adeyeye, S. A. (2010). Consumer preference for rice consumption in Nigeria. J. Human. Soc. Sci. Creat. Arts, 5(1), 26–36.
AGIS (2014). AGIS deploys high resolution satellite imagery of the FCT, Abuja Geographic Information System. Retrieved from http://agis.fcta.gov.ng/
Allen, M. M., Ng, S. H., Wilson, M. (2002). A functional approach to instrumental and terminal values and the value-attitude-behaviour system of consumer choice. Eur. J. Market., 36(1/2), 111–135.
Azabagaoglu, M. O., Gaytancioglu, O. (2009). Analyzing consumer preference to different rice varieties in Turkey. Agric. Tropic. Subtropic., 42(3), 118–125.
Bamidele, F. S., Abayomi, O. O., Esther, O. A. (2010). Economic analysis of rice consumption patterns in Nigeria. J. Agric. Sci. Technol., 2(12), 1–11.
Basorun, J. O. (2009). Analysis of the relationships of factors affecting rice consumption in a targeted region in Ekiti State, Nigeria. J. Appl. Quant. Methods, 4(2), 2–15.
Blijlevens, J., Creusen, M. E. H., Schoormans, J. P. L. (2009). How consumers perceive product appearance: The identification of three product appearance attributes. Int. J. Design, 3(3), 27–35.
Campbell, R., Schiff, H., Snodgrass, D., Neven, D., Downing, J. Sturza, D. (2009). Global food security response: West Africa rice value chain analysis. USAID microREPORT #161. Washington, DC.
CARD (2015). Private sector investment in the rice sector in response to government policies in Nigeria presentation at the sixth general meeting of the coalition for African rice development (CARD) November 18–19, 2015 Accra, Ghana. Available at: https://riceforafrica.net/images/stories/PDF/S2-2EN.pdf Accessed 5/12/2016
Doo Bong, H., Rodolfo, M. N., Ji Yong, L., Jong, M. Y. (2012). Assessing Korean Consumers’ valuation for domestic and imported rice: Importance of country of origin and food miles information. Paper presented at the annual meeting of Southern Agricultural Economics Association, Birmingham, AL, February 4–7, 2012.
Eckman, M., Warner, J. (1994). Judging the attractiveness of product design: The effect of visual attributes and consumer characteristics. Adv. Consum. Res., 21(1), 560–564.
Erenstein, O., Lançon, F., Osiname, O., Kebbeh, M. (2004). Operationalising the strategic framework for rice sector revitalisation in Nigeria. Project report – The Nigerian rice economy in a competitive world: Constraints, opportunities and strategic choices. Retrieved from http://pdf.usaid.gov/pdf_docs/Pdacd181.pdf
Gilaninia, S., Taleghani, M., Azizi, N. (2013). Marketing mix and consumer behaviour. Arab. J. Bus. Manag. Rev.,2(12), 53–58.
Grönroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Manag. Dec., 32(2), 4–20.
Gyimah-Brempong, K., Dorosh, P., Kuku, O., Pradesha, A., Ajibola, A. (2012). Informing Nigeria’s agricultural
transformation agenda with policy analysis and research evidence. Paper presented at NSSP national conference held in Abuja, Nigeria, November 13–14, 2012.
Hogg, M. K., Cox, A. J., Keeling, K. (2000). The impact of self-monitoring on image congruence and product/brand evaluation. Eur. J. Market., 34(5/6), 641–666.
Jairo, M. (2008). Making microeconomic policy work for small business and enterprise development. AfricaGrowth Agenda, 5(1), 7–12.
Johnson, M., Takeshima, H., Gyimah-Brempong, K., Kuku-Shittu, O. (2013). Policy options for accelerated growth and competitiveness of the domestic rice economy in Nigeria. IFPRI policy note 35, IFPRI Washington, D.C.
Kamakura, W. A., Russell, G. (1993). Measuring brand value with scanner data. International J. Res. Market., 10(1), 9–21.
Kellerman, B. J., Gordon, P. J., Hekmat, F. (1995). Product and pricing courses are under-represented in undergraduate marketing curricula. J. Prod. Brand Manag., 4(1), 18–25.
Kim, S. S. (2003). A study on consumers’ willingness-to-pay for domestic and imported rice. Research report, Korea Food Research Institute.
Kotler, P., Keller, K. L. (2013). Marketing management. Praha: Grada.
Kurtz, D. L., Boone, L. E. (1987). Marketing (3rd ed.). Chicago: The Dryden Press.
Lancaster, K. J. (1966). A new approach to consumer theory. J. Polit. Econ., 74(2), 132–157.
Lancon, F., Olaf, E., Akande, S. O., Titilola, S. O., Akpokodje, G., Ogundele, O. O. (2003). Imported rice retailing and purchasing in Nigeria: A survey. Project report – The Nigerian rice economy in a competitive world: Constraints, opportunities and strategic choices. West Africa rice development association (WARDA) Abidjan, Coted’Ivoire.
Latvala, T. (2010). Risk, information and trust in the food chain: Factors explaining consumer willingness to pay. Int. J. Food Syst. Dyn., 1(4), 295–304.
Lauterborn, B. (1990). New marketing litany: Four Ps passé: C-words take over. Advertising age, 61(41), 26.
Lee, J. H., Seo, J. G., Choi, J. H., Kim, T. G., Jeong, J. G., Kim, S. H., Lim, S. Y. (2004). A study on strategy for 2004 rice negotiation. Research report, Korea rural economic institute.
Martensen, A., Maouritsen, J. (2016). Prioritising marketing activities in different types of marketing functions. Total Qual. Manag. Bus. Excell., 2(1), 1–21.
Mathur, A., Moschis, G. P., Lee, E. (2003). Life events and brand preference changes. J. Cons. Beh., 3(1),129–141. McCarthy, E. J. (1964). Basic Marketing, IL: Richard D. Irwin.
McDaniel, S. W., Hise, R. T. (1984). Shaping the Marketing Curriculum: The CEO perspective. J. Marke. Edu.,
27–32. Retrieved from: http://journals.sagepub.com/doi/abs/10.1177/027347538400600207
Meenaghan, T. (1995). The role of advertising in brand image development. J. Prod. Brand Manag., 4(4), 23–34.
Menard, S. (1995). Applied logistic regression analysis. Sage University series on quantitative applications in the social sciences. Thousand Oaks, CA: Sage.
Michaut, A. M. K., van Trijp, H. C. M., Steenkamp, B. E. M. (2002). Dimensions of product newness and their differentia effect on market success. Paper presented at 31st EMAC conference, May 28–31, Braga, Portugal.
Möller, K. (2006). The marketing mix revisited: Towards the 21st century marketing by E. Constantinides. J. Market. Manag., 22(3), 439–450.
Myers, J. H., Allan, D. S. (1981). Research in Marketing. JAI Press Inc.
Nundkumar, P., Singh, A. M. (2016). Repositioning the Durban chamber of commerce using the 4Ps of marketing. Retail Market. Rev., 12(2), 1–13.
Ogbe, A. O., Okoruwa, V. O., Saka, O. J. (2011). Competitiveness of Nigerian rice and maize production ecologies: A policy analysis approach. Tropic. Subtropic. Agroeco., 14, 493–500.
Ogundele, F. (2013). Determinants of household rice consumption in Nigeria: Application of Working-lesser single equation model. Net J. Agric. Sci., 1(2), 48–55.
Ogundele, O. (2014). Factors influencing consumers’ preference for local rice in Nigeria. Afr. J. Market. Manag., 6(4), 49–55.
Pambo, K. O., Julius, J., Okello, J. J., Mbeche, R., John, N., Kinyuru, J. N. (2016). Consumer acceptance of edible insects for non-meat protein in western Kenya. Paper presented at the 5th African Association of Agricultural Economists (AAAE) conference at the United Nations conference center, Addis Ababa-Ethiopia, September 23–26, 2016.
Palmer, A. (2004). Introduction to Marketing – Theory and Practice, UK: Oxford University Press.
Popovic, D. (2006). Modelling the marketing of high-tech start-ups. J. Target. Measur. Anal. Market., 14(3), 260–276.
PROPCOM (2007). Demand and supply study on domestic and imported rice in Kano area. Monograph Series # 22, July, 2007.
Ramasamy, K., Kalaivanan, G., Sukumar, S. (2005). Consumer behaviour towards instant food products. Int. J. Market., 35(6), 24–25.
Sethuraman, R., Tellis, G. J. (1991). An analysis of the tradeoff between advertising and pricing. J. Market. Res., 31(1), 160–174.
Seck, P. A., Tollens, E., Wopereis, M. C. S., Diagne, A., Bamba, I. (2010). Rising trends and variability of rice prices: threats and opportunities for sub-Saharan Africa. Food Policy, 35(5), 403–411.
Swait, J., Erdem, T., Louviere, J., Dubelaar, C. (1993). The equalization price: A consumer-perceived measure of brand equity. Int. J. Res. Market., 10(1), 23–45.
Tellis, G. J. (1988). The price sensitivity of competitive demand: A meta-analysis of sales response models. J. Market. Res., 15(1), 331–341.
Tellis, G. J., Zufryden, F. (1995). Cracking the retailer’s decision problem: Which brand to discount, how much, when and why? Market. Sci., 14(3), 271–299.
Tomlins, K. I., Manful, J. T., Larwer, P., Hammond, L. (2005). Urban consumer preferences and sensory evaluation of locally produced and imported rice in West Africa. Food Qual. Pref., 16(1), 79–89.
Tomlins, K., Manful, J., Gayin, J., Kudjawu, B., Tamakloe, I. (2007). Study of sensory evaluation, consumer acceptability, affordability and market price of rice. J. Sci. Food Agric., 87(8), 1564–1575.
USAID (2009). Global food security response: West Africa rice value chain analysis. MicroReport, No. 161, United States Agency for International Development (USAID), Washington, D.C.
Wolfe, M. J., Crotts, J. C. (2011). Marketing mix modeling for the tourism industry: A best practices approach. Int. J. Tour. Sci., 11(1), 1–15.
Yamane, T. (1967). Statistics: An Introductory Analysis (2nd Ed.). New York: Harper and Row.
Obih, U., & Baiyegunhi, L. (2018). CONSUMERS’ ACCEPTABILITY OF LOCAL RICE BRANDS IN NIGERIA. WHICH MARKETING FUNCTIONS REALLY MATTER?. Journal of Agribusiness and Rural Development, 48(2), 183-196. https://doi.org/10.17306/J.JARD.2018.00412
Uchenna Obih
Lloyd Baiyegunhi
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