CHAPTER ONE

INTRODUCTION

1.1 Back ground of the study.

According to kotler (2016), promotion has the essential factors related to the required business resulting in an aggressive market place. Promotion is an essential factor that is required to produce sustainability in competitive market place. Customers behavior helps marketers to identify how to complete their journey from knowing about a product to make decisions on how to satisfy customer needs and wants, because without customers there Will be no promotion of product, that is why according to kotler customers are always the king in the market place, because they are the o was bringing profit in the organization by buying their products.    

Moreover it is all about attracting the best and right customers and getting them to buy and often in higher quantities and bring more customers (Anderson and Narus 2017)  Thai (2014). Assets that customer behavior to purchase a product can be seen as the mirror. Image consumer deflection, is here by defined as the ability of the organization to keep it existing customers. It is the measure of the ability and organization to give sufficient value with its service or shopper to keep them returning (Abishua 2016).

Customer behavior is making things harder for marketers and there are so many different actions such as advertising, promotion, pricing, distribution and having positive effect on business performance. For more than decades promotion has grown in importance, to increase customer behavoiur in the purchase of product in the market place. Businesses as a whole have many purchase situations are so habitual that customers conduct very little “cognitive” activity for the marketers. It is difficult to motivate behavior of customers for brown switching. The promotional activities now stimulate the customer to rethink and evaluate the brand and the quantity that they may have not realize. So promotion has grown as the important tool for the marketers and retailers in order to understand customers’ needs and wants and boost the business.

In today complex and independent business environment marketers are frequently encourages by the persistence change in what customers want. Aggressive market competition recent entrance in the market, convenience alternative products present a Change to realize their marketing growth, a power have shifted from marketers to customers forcing marketers to guarantee, they put out product that have unique future and are of high quality to give customer a reason to purchase and remain loyal to them. The persistence adjustment in the society, the economy and environment is directly related to customer’s preference and taste.

The attraction of power from marketers to customers have stimulates the marketer to ascertain that their goods are distinct and superior to give customer a reason to purchase the product and stay loyal to them. The shift is particular economic environment, plus social factors have affected how customers change their preferences, people needs and perception of provocation change according to their surrounding and it is attributed from the necessity of concreteness and short term orientation that set apart promotion additionally with limit in the marketing budget, marketers are facing great pressure and hindrance to communicate their goals on marketing to customers (Hawkers 2019).

Customers have become quite price conscious and fast moving consumer goods  have slowly become quite competitive.  Leading fast moving consumer goods form more often than not use price discount in as well as promotional campaigns for instance marketing event, free samples, and premium.

1.2 problem statement.

Customer life style and preference has change over the past decade (cummins, 2018). Awareness of offering in the market by customers has increase and what they expect from producer being offered. Access to information has been highlighted by virtue of technology and has led to the increase of customer bargaining power on any purchase decisions as a consequence, present day marketer have been face with great challenge of meeting the ever grow thing, expectations of customers (James, 2017).

Marketers are relied upon promotion to fulfill the change in demand for customers and the market as a whole.  Consumer promotion is offered to consumers by producers and is designed to stimulate their behavior from procurement right after being exposed to consumer promotion (Tailor, Cameron and pilacik 2010). Marketing campaigns that include various incentives are favored most by the market. This is because of their short term nature to stimulate quick processes of good and service in great quality. Promotion is an insentive that has provide influential pushing customers into forming instance paying decision without pause (Kotler 2016).

However, promotion is included in the famous important element of marketing mix element design to stimulate customer reaction immediately: that is to make an incentive that encourages consumers to get a product as fast as possible, more routine and in large amount than promotion is aspect (Hawkers 2019). Consistent with the institute of promotion”Uk promotion is a range of tactical marketing techniques designs with strategic frame work to add a value to a product or services in order to achieve marketing objective”.

There are two types of promotion; value promotion and price promotion. Under value promotion there are price drawn, competition and premiums , price promotion by contrast include pence off ,flashes , discount coupons buy one and get one free and further filled packs (cummins 2018). One issue in relation to promotion is that efficacy of each promotion, that is which is more efficient than the other enough to influence a customer’s decision not much research has being done that integrates all type of promotion and their element, some studies done prior mostly special in either non price promotion. Then for how each type of promotion plays a part in decision of customers to purchase the product is still unknown.

In Cameroon, promotion is an essential part of marketing activities accustomed to making sure customers are being satisfied with their needs and wants. The effect of promotion on customer behavior on purchase decisions, thus have an issue statement address a problem on how promotional tools like coupons discount, price discount, free samples influence the pitching power of customers behaviour to be more specific, are desire look at the efficacy of promotion tools to Guinness Cameroon S.A. soft drinks with the main target of the view of fast moving commodity firm are award that this promotions tools are useful but they are unsure which one are amongst those promotional frame work Will work best like them . In the study I stress about various promotion and recommend further studies on the consequences of promotion on customer behavior in decision regards to purchase in the firm.

1.2.1 Research questions.

The main research question is the effect of promotion on customer’s behaviour, it is further divided into the following specific research questions

1. What is the effect of price discount on customer behavior?
2. What is the effect of premium on customer behavior?

• What is the effect of free samples on customer behavior?

Objective of the study.

To provide answer to the above research question we are guided by the research objectives.

I.3.l Main objective.

The main objective of this study is to examine the effect of promotion on customer behavoiur of Guinness Cameroon S.A.

1.3.2 Specific objective.

1. i) To assess the effect of price discount on customer behavoiur.
2. ii) To evaluate the effect of premiums on customers behaviour.

iii) To analyze the impact of free samples on customer behavoiur.

1.4 Research hypothesis.

1. i) HO₁ price discount has no significant effect on customer behavoiur.
2. ii) HO₂ premium have no significant effect on customer behavoiur.

iii) HO₃ free samples have no significant effect on customer behavoiur