Effect of Chinese Product Price, Quality, Innovativeness and Brand Awareness on Customers’ Loyalty: An Empirical Analysis of Local Industries in Northern Nigeria

Mukhtar Halliru, Ibrahim Kabir & Mukhtar Salisu Abubakar

Abstract


The global economy is witnessing the massive influx of Chinese products across the global market. Nigeria in particular, is one of the countries that have a strong trade relationship with Chinese industries. Chinese products dominate most of the Nigerian market with very affordable price and compromised quality. Their pricing strategy, product design and ability to create brand awareness give their products an edge over the competitors. The study is the survey research that used regression analysis and examined the effect of Chinese product price, quality, innovativeness and brand awareness on customers’ loyalty. A sample of 1000 respondents was selected from three states of Northern Nigeria. The study discovered a significant negative effect of Chinese product price, innovativeness and Chinese brand awareness on customer loyalty; however, the effect of Chinese product quality on customers’ loyalty is positive and statistically insignificant. Therefore, the study concluded that Chinese product price, innovativeness and brand awareness negatively affect customers’ loyalty on the local products. The study recommended that the local entrepreneur needs to undergo training in areas of cost cutting, efficient use of resources while being encouraged to form clusters in order to benefit from economies of scale thereby driving down cost and by extension price of products. Local entrepreneurs must embrace new technology; pursue more creativity by perusing through imported brochures for inspiration and adapting designs to suit our own peculiarities. They should also create awareness using social media, publicity, advertisement, exhibition among other methods of creating awareness.


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