ISSN:2756-6889 Vol. 2 No. 2.






University of Port Harcourt entrepreneurship Centre (UPEC)






Vol 2 No. 2 Published July 2021


University of Port Harcourt Entrepreneurship Centre (UPEC), Choba, Port Harcourt, Rivers State



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ISSN: 2756-6889





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University of Port Harcourt Entrepreneurship Centre (UPEC), Choba, Port Harcourt, Rivers State




Editor-In-Chief                                                           Prof. Chinedu N. Ogbuji


Associate Editors                                                        Prof . H.N. Ozuru

Prof. L.C. Micah Prof. C.A. Eketu

Dr. Gideon Uboegbulam Dr. Y.T. Bello

Dr. G.O. Omojefe




Prof. Ezirim, C.B.                                     -           University of Port Harcourt

Prof. Onuoha, B. C.                                  -           University of Port Harcourt, Port Harcourt

Prof. Kalu, S.E.                                        -           University of Port Harcourt, Port Harcourt

Prof. Ofurum, C.O.                                  -           University of Port Harcourt, Port Harcourt

Prof. Okereke, E. J.                                 -           University of Port Harcourt, Port Harcourt

Prof. Nwinee, B.F.                                                -           University of Port Harcourt, Port Harcourt

Prof. Nwakanma, P.C.                             -           University of Port Harcourt, Port Harcourt

Prof. Ezirim, A.C.                                     -           University of Port Harcourt, Port Harcourt

Prof. Umoh, G.I.                                     -           University of Port Harcourt, Port Harcourt

Prof. Okpara, G.S                                    -           Abia State University, Uturu

Prof. Ogbulu, O.M.                                   -           Abia State University, Uturu

Prof. Okereke, E.J.                                  -           University of Port Harcourt, Port Harcourt

Prof. Ndugbu, M                                      -           Imo State University, Owerri

Prof. Ogwo, E. O.                                    -           Abia State University, Uturu

Prof. Anyanwu A. V.                                            -           Imo State University, Owerri

Prof. Nwizu, G.                                       -           Abia State University, Uturu

Prof. Awujo, A.C.                                    -           Imo State University, Owerri

Prof. Nkamnebe, A.D.                              -           Nnamdi Azikiwe University, Awka

Prof. Nnabuko, J.                                    -           University of Nigeria, Enugu Campus

Prof. Agbonifoh, B.A.                               -           University of Benin, Benin City

Prof. Akembor, C. O.                              -           Federal University Otuoke

Prof. Andow, H.A.                                   -           Kaduna State University




1          Dr. J.O. Oshi

  1. Dr. Peace Igwe
  2. Dr. Haniel Eke
  3. Dr Wilson Ofoegbu
  4. Dr. Maxwell Nwinye
  5. Dr. Promise Opara
  6. Dr. Godswill Agu
  7. Dr. Emeka Ernest Izogo










Well researched papers are hereby invited from authors from across the globe, for the Volume 2, No 1, January-June editions of the Journal. The journal is published in both print and online versions. All paper submissions and enquiries should be sent to; This email address is being protected from spambots. You need JavaScript enabled to view it. Interested authors should please kindly go through the manuscript guideline below.


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Journal of Entrepreneurship, Business and Innovation (JEBI) is published twice a year (January-June and July-December editions). The journal has both print and online versions which can be accessed at The Journal was created by the Centre as an avenue for authors and researchers to ventilate their research efforts. Breaking ground researches are equally presented and synthesized especially those bothering on academic, business, economic, and social cotemporary and emerging issues that have potential values in advancing knowledge in areas of business success, economic and social development. In this regard, the journal editors and reviewers will be favourably disposed to manuscripts that meet international standards in testing, extending and building strong theoretical framework and or empirically examining issues in business, social, political and technological environments. Interested authors are therefore, urged to aim at original teleologies and value driven papers that signicantly contribute to knowledge.


The main target of the Journal is to support positively, academic, economic, social, professional, technological and entrepreneurial development by free dissemination of relevant ideas and information among professionals, academics, entrepreneurs, business scholars and practitioners, economists, statisticians as well as government, private, public and international agencies. Contributions to this journal in these areas are welcome. It must be stated clearly, that the views and interpretations expressed in the journal are purely and totally those of the authors. The publisher, editors and agents of the Journal are not responsible for any error, mistake, or misstatement contained herein or for outcomes that may result from the use of information or data contained in the issues of this journal.


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All manuscripts must be structured as follows: Abstract, Keywords (3 only), Introduction including Statement of Problem, Objectives and Hypothesis (if any), Literature Review (Theoretical, Conceptual and Empirical), Methodology, Discussion of Findings, Recommendations and Conclusion, References. All tables and gures (if necessary) must be included in the body of the work and must be clearly titled and marked.


Chinedu N. Ogbuji, Ph.D. Associate Professor of Marketing Editor-in-Chief

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1.        Inventory Management and Marketing Performance of Fast Food Restaurants in Abia State

Esi-Ubani, Chidiadi Obinna & Nto, Chioma P.O                                                                   1


2.        Financial Innovation and Growth of Small and Medium Scale Enterprises in Nigeria

Sani Alfred Ilemona, (PhD) & Nweze Uchechukwu Augustine,






3.        Investment Literacy And Investors' Behavior

Walter C. Ndubuisi




4.        Capital Market Development And Industrial Growth In Nigeria: 1999-2019

Enomati Blessing & Gladys A. Nwokoye




5.        Positioning And Customer Perception In The Banking Industry: Empirical Evidence  Of   Banks   Customers   In   Umuahia   Metropolis Chiana, Cyril Anamelechi Ph.D & Professor Gazie S. Okpara





6.        Entrepreneurial Marketing And Business Growth Of Small And Medium Scale Enterprises                    In                    Port                     Harcourt Poi, Godwin (Ph.D., FCA) & Ademe, D. G. Ph.D.





7.            Social Marketing Tactics For Curbing The Prevalence Of Covid-19 Pandemic. Dr.   Jude   E.   Madu,    Anukam,    Amaobi    Isaac,    PhD    & Dr. Chibuike Anyeji Nwuba





8.        Determinants Of Entrepreneurial Intention Among Youths In Ilorin West Local       Government       Area,       Kwara        State Abdulwahab, A. D., Olodo, H. B. Ph.D. & Lawal, A. T. Ph.D.





9.        Employee Training And The Performance Of Poultry Farms In Ilorin West Local       Government       Area       Of        Kwara        State BUSARI, Lateefat Olatundun, BRIMAH, Amudalat Bolatito Ph.D., HAMEEDAT, Bukola Olodo Ph.D.






10.       Viral Marketing And Consumers’ Attitude Towards Cosmetic Products In Rivers State

Ogbeifun, O.B. & Ogbuji, C.N.




11.       Operational Risk Management And Business Survival Of Al-hikmah University Water                                                                  Factory OLADIMEJI, L. , LAWAL, A.T Ph.D. and AREMU, M.A. Ph.D.






12.       Reverse Marketing And Consumer Satisfaction-focus On Deposit Money Banks In Nigeria

A.E.NDU OKO & A.U. Chukwu                                                                                           166





Esi-Ubani, Chidiadi Obinna

Department of Marketing Abia State University, Uturu. This email address is being protected from spambots. You need JavaScript enabled to view it.

Nto, Chioma P.O

Department of Marketing

Michael Okpara University of Agriculture, Umudike This email address is being protected from spambots. You need JavaScript enabled to view it.




Inventory can be cost saving when managed strategically can lead to better Marketing performance. This research work concentrated on inventory management and Marketing performance in fast food restaurants in Abia state. Survey method of research design was adopted and sample size of 138 was determined using topman formula. The data collected through questionnaire as well as secondary data were analysed using Ordinary Least Square regression model and the Product Moment Correlation Coefficient. The findings show that inventory cost reduction has a significant effect on marketing performance of fast food restaurants in Abia State and reorder level has a significant effect on marketing performance. The study recommended that fast food restaurants in Abia State should handle inventory strategically to reduce cost and ensure availability of materials to ensure customer satisfaction.


Keywords: Inventory management, Marketing Performance, Fast Food.



Fast food restaurants have gained increased acceptance and patronage over the years as more brands keep coming up yearly, hence increased competition and quest for market share. In the past three years, Kilimanjaro, Apples, De Choice, Snack bar, and Roots opened new fast food restaurants in Umuahia, Abia State to compete with already existing local restaurants that have won the heart of the consumers.




With this yearly increase in fast food restaurants in Nigeria, there is need for the managers of these restaurants to strategically plan their activities to reduce cost and serve the market better. In these decisions, inventory management is sacrosanct. Fast food restaurants deal with highly perishable products which should be taken care of with nesse to prevent causing the organisation a great loss. Stocks are kept in such a way that tasty meals are available to customer who needs them at any time of the day. To make this possible, inventory management plays an important role of storing and preserving the ingredients needed to prepare these meals to ensure they are accessible whenever they are required.


All the benets of inventory management can only be harnessed if it is practiced the right way, but there are hitches faced by fast food restaurants in Abia State. Some of the problems facing fast food restaurants today are the inability to provide quality services to the customers whose root cause lies in poor inventory management.


Stocks in fast food restaurant need electricity to be ready for the consumers. Drinks are preferred cold and meals are to be kept warm. Some uncooked perishable items need to be refrigerated. To be effective in stock keeping, fast food restaurants get to run standby generators thereby increasing their running cost and making products more expensive.


Some of the products are agricultural products which are seasonal. There are no storage facilities to keep items to make them available all year round.


Inventory management is one of the most expensive and important asset of many fast food restaurants representing a considerable percentage of the total invested capital. However, in most of these restaurants, it has been a difcult task for analyst and managers to ensure that inventory management is given its logical due consideration by top management (Ogbo, 2011).




H01: H02: H03:


Stocking has no signicant effect on total sales value.

Inventory cost reduction has no signicant effect on total sales value. Reorder level has no signicant effect on total sales value.



Literature review


Recent research has examined importance of effective inventory management to an organisation and how they serve their customers and other end users. Some of these research works include:




Ogbo et al., (2014) concluded that inventory control management exibility by business executives is an imperative way to deal with accomplishing organisational performance. It was discovered that organisations gain from inventory control management by way of easy storage and recovery of material, improved sales viability and diminished operational cost. Lwiki et al., (2013) embarked on a survey research in Kenya. Discoveries uncover that there exists a positive connection between inventory management and Return on Sales and furthermore with Return on Equity which were observed to be factually huge.


Agu et al., (2016) in an investigation to discover the degree at which inventory control inuence the protability of some manufacturing rms concluded that inventory control essentially inuences efciency of manufacturing rms. Kimaiyo and Ochiri (2014) in a bid to examine how inventory management cost reduction inuences performance of assembling rms in Kenya afrmed that holding stocks and ordering cost may expand the performance of an organisation. Bawa et al., (2018), utilized a cross sectional secondary data design to test if there is any relationship between inventory management and performance of manufacturing rms in Ghana. Discoveries show that regardless of various research on inventory management and organisational performance, and manufacturing rm's commitment to the Ghanaian economy. Grubor et al., (2016) are of the view that by expanding inventories, retailers endeavour to raise service levels, and therefore increase sale. Mwangi and Nyambura (2015) concluded that a unit increases in maintaining production will lead to an increase in the scores of the performance of food processing company.


Imeokparia (2013) study which explored the relationship between inventory management and control and performance and Food and Beverages companies in Nigeria conrmed that there is a signicant relationship between inventory management and control and the performance of Food and Beverages companies in Nigeria. Olowolaju (2013) found that there is a wide gap between theory and practice with regards to utilizing models in arriving at stock decisions in SMEs. Atnafu and Balda (2018) on an investigation meant to analyse the effect of inventory management practice on rms' competiveness and organisational performance indicated inventory management has a signicant effect with enhanced competitive advantage and improved organizational performance.


Phebe and Njoku (2018) examined how inventory control affects organizational performance. The result of this research conrms the signicant positive impact inventory control has on performance in organizations. It further conrms that inventory control contributes to economic production quantity and quality of products at budgeted costs and scheduled time to customers and hence protability. Shin et al., (2015) argued that while manufacturing rms pursue




efcient inventory management, there is limited evidence of improved nancial performance related to inventory management practices. According to Akinlabi (2017), inventory management practices signicantly inuenced operational performance of our mills companies in Nigeria. Inventory shrinkage has a signicant negative effect on customers' satisfaction of the selected our mills companies in Nigeria Aro-Gordon and Gupte (2016) suggests that sustained protability, cost-reduction, competitive ability, and enhanced capacity- utilization, and market diversication prospects are among the few key advantages of a strong inventory management policy.

Newsvendor model


The newsvendor (or newsboy or single-period or perishable) model is a mathematical model in applied economics and operations management used to decide optimal inventory levels. It is (ordinarily) described by xed prices and uncertain demand for a perishable item. If inventory level is q, every unit of interest above q is lost in potential sales. This model is otherwise called the newsvendor problem or newsboy problem by similarity with the circumstance looked by a paper merchant who must choose what number of duplicates of the day's paper to stock despite uncertain demand and realizing that unsold duplicates will be useless by the day's end.


The mathematical problem seems to date from 1888 where Edgeworth utilized as far as possible hypothesis to decide the ideal cash reserves to full irregular withdrawals from investors. The expression "newsboy" was rst referenced in a case of the Morse and Kimball (1951's) book. The modern formulation identies with a paper in Econometrica by Kenneth Arrow, T. Harris, and Jacob Marshak.



This study adopted a survey research design. After considering the objectives of the study, the researcher felt the appropriateness for adopting both the qualitative and quantitative data gathering techniques, using the questionnaire as the instrument.


The study population consists of workers of all the fast food restaurants in Abia State and customers who patronise fast food restaurants. There are over 50 rms positioned as fast food restaurants in Abia State. Some are national brands, others local and very few global. However, the sample frame specically involved the customers fast food restaurants in the state.




The sample size of the study was determined using the Topman formula. This formula was adopted because the population of all customers of fast food restaurants is unknown.



Hypothesis 1: Stocking has no significant effect on total sales value. Regression result of the effect of stocking on total sales value.


The regression result highlighted the effect of level of stocking on total sales value as well as the relationship between level of stocking and total sales value. Based on the result, there is a positive relationship between level of stocking and total sales value at 0.589. The analysis is an indication that average stock maintenance by the fast food restaurants is not encouraging the rm's marketing performance. The value 33.286 represents what total sales value will be without any case of level of stocking. The value -4.286 for β1 implies that a unit change in level of stocking will lead to - 4.286 change in total sales value Considering the probability value of 0.296 which is greater than 0.05, we will not reject the null hypothesis through the coefcient is not statistically signicant.


Hypothesis 2: Inventory cost reduction has no significant effect on total sales value.


Regression result of the effect of inventory cost reduction on total sales value.


The result shows that holding variables constant, a unit change in inventory cost reduction will lead to change in total sales by ₦2.128. 90.111 is the value for total sales when inventory cost reduction is zero. Similarly, the signicant value was less than the 0.05 maximum signicant value for signicance, this depicts that the relationship was signicant. Therefore, the study rejected the null hypothesis, accepted the alternative and concludes that there existed a signicant relationship between inventory cost reduction and Marketing performance.

Regression result of the effect of reorder level on total sales value.


The regression result above highlighted the effect of reorder level on total sales value. Based on the result, there is a strong positive relationship between reorder level and Marketing Performance at 0.958. Considering the probability value of




0.10 which is less than 0.05, we reject the null hypothesis the coefcient is statistically signicant.

Discussion of findings


From the study, it was observed that inventory management has a positive relationship with marketing performance of fast food restaurants in Abia State. It shows that a rm's performance is positively inuenced by order quantity, inventory cost reduction, ordering time, and reorder level.


The study results conrms that of Akinlabi (2017) whose ndings shows that inventory shrinkage has a signicant negative effect on customers' satisfaction and competitive advantage. Also in Afrmation, Grubor, Milićević & Djokic (2016), stated that by increasing inventories, retailers attempt to raise service levels, and thus increase sale. However, in addition to a positive impact on product availability and sale, higher inventory levels may cause problems in performing in-store activities. As poor backroom-to-shelf replenishment process emerges as one of the most common causes of stock-out situations. Atnafu & Balda (2018) discovered that higher levels of inventory management practice can lead to an enhanced competitive advantage and improved organizational performance.


Inventory cost reduction, in the result of this study shows to have a high positive relationship with marketing performance. From this study, a unit change in cost reduction will lead to change in marketing performance by 2.128 and this view is supported by Mwangi & Nyambura (2015), Phebe & Njoku (2018) Kimaiyo & Ochiri, (2014) and Shin, Ennis & Spurlin (2015). According to Mwangi & Nyambura (2015), a unit increase in cost control will lead to an increase in performance of food processing companies; also, a unit increase in record reduced loss will lead to an increase in the scores of the performance of food processing companies. Cost reduction equips organisations with adequate resources and inventory cost reduction helps in accomplishing protability objective. Inventory control system and channel relationships affect the performance of manufacturing rms (Kimaiyo and Ochiri, (2014). Contrarily, Bawa, Asamoah & Kissi (2018) in a study carried out to investigate the impact of inventory management on rm performance of listed manufacturing rms provided evidence that inventory management have no effect on rm's performance and is insignicantly related to rm performance of manufacturing

rms. Phebe & Njoku (2018) indicated that inventory control has a signicant positive impacts on the performance parameters of organizations and therefore contributes to economic production quantity and quality of products at budgeted




costs and scheduled time to customers and hence protability of manufacturing



The result of the effect of reorder level on Marketing Performance shows that reorder level will lead to a great improvement in Marketing Performance. This result is also supported by the study by Mwangi & Nyambura (2015) which concluded that a unit increase in continuous supply will lead to an increase in the scores of performance in food processing companies.

Conclusion and Recommendations


This research was carried out to determine effect the inventory management on Marketing Performance of fast food restaurants in Abia State. The ndings of the research will assist managers of fast food restaurants who intend to strategically place their organisation in the market with better prot to know how far proper inventory practices can go in making these objectives be achieved, also the study provides an overview of emerging inventory management techniques as well as various costs associated with inventories in fast food restaurants for the benets of inventory managers, procurement managers, store supervisors and accountants which must be harnessed to improve marketing performance.


The study identied ve variables that affect Marketing performance and customer satisfaction: Level of stocking, inventory cost, ordering time, ordering quantity, and reorder level. The results show that inventory management has a signicant effect marketing performance and customer satisfaction.


It concluded that stocking in fast food restaurants in Abia State needs to be controlled through proper inventory management practices. It conrmed that level of stocking has no effect on marketing performance and inventory cost reduction leads to better marketing performance among Fast food restaurants in Abia State. Another variable that has a positive effect on marketing performance is reorder level as this variable ensures that products are always available for customers who need them.


There is a positive relationship between Inventory management and customer satisfaction in fast food restaurants in Abia State. The study determined the relationship between ordering time and customer satisfaction as well as ordering quantity and customer.


After considering the ndings of this research work, the following suggestions can be made for improving inventory management practices in fast food restaurants in Abia State:




  1. Fast food restaurants deal with perishable products, management should try to minimise overstocking while ensuring that products are available to customer whenever they are needed to satisfy the customers better and increase marketing performance.


  1. Management of fast food restaurants should ensure that inventory are kept properly to reduce all cost of holding inventory which will translate to reduction in inventory cost and translate to better marketing performance as the analysis of this study conrms.


  1. Management of inventory internally is very important as inventory management in fast food restaurants go beyond just the raw materials but also moving already prepared cooked meals from the kitchen to the front desk where they are served customers.


  1. Materials should be ordered in their right quantities to prevent frequently going to acquire these products and frequent stock outs which eventually translates to increased cost.


  1. Management of fast food restaurants used understand the nature of different products and determine the right reorder level that will suit these products. Reorder level for fast food restaurants are different considering the fact that some products are very perishable while others are not.






Agu, O. A., Obi-Anike, H. O., & Eke C. N. (2016). Effect of inventory management on the organizational performance of the selected manufacturing rms. Singaporean Journal Of Busness Economics, And Management Studies (Sjbem) Vol. 5( 4) 56.


Akinlabi, B. H. (2017). Inventory Management practices and operational performance of selected our mills companies in Nigeria. PG/14/0368. Being a thesis submitted to the Department of Business Administration and Marketing School of management sciences in partial fullment of the requirements for the award of the degree of doctor of philosophy Babcock University Ilishan Remo.


Aro-gordon, S., & Gupte, J. (2016). Contemporary inventory management techniques: A conceptual investigation. International conference on operations management and research. (icomar 2016) – “towards operational excellence” January 21-22, 2016,mysuru, india Isbn: 978-93- 83302-11-6.

Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on

rms' competitiveness and organizational performance: Empirical evidence frommicro and small enterprises in Ethiopia 5: 150321


Bawa, S., Asamoah G. E., & Kissi, E. (2018). Impact of Inventory Management on Firm Performance: A Case Study of Listed Manufacturing Firms in Ghana. International Journal of Finance and Accounting. p-ISSN: 2168-4812 e- ISSN: 2168-48207(4): 83-96 doi:10.5923/j.ijfa.20180704.01


Grubor, A., Milićević, N., & Djokic, N. (2016). The effect of inventory level on product availability and sale. Prague economic papers, Issue 25(2) DOI: 10.18267/j


Imeokparia, L. (2013). Inventory management system and performance of food and beverages companies in Nigeria. Iosr journal of mathematics (iosr- jm), issn: 2278-5728. Issue 6(1), 24-30.




Kimaiyo, K. K. & Ochiri, G (2014). Role of Inventory Management on Performance of Manufacturing Firms in Kenya – A case of new Kenya Cooperative Creameries.European Journal of Business Management, Issue 2 (1), 336-341.


Lwiki, T., Ojera, P. B., Mugenda, N. G. & Wachira, V. K. (2013). The impact of inventory management practices on nancial performance of sugar Manufacturing rms in kenya. International Journal of Business, Humanities and Technology Vol. 3(5)


Mwangi, W. & Nyambura M. T. (2015). The role of inventory management on performance offood Processing companies: a case study of crown foods limited Kenya. European Journal of Business and Social Sciences, Issue 4(4), 64 – 78 URL: 2235 -767X

Naddor, E. (1966). Inventory systems. Wiley, New York.


Ogbo, A. I., Onekanma, I. V., & Ukpere, W. I. (2014). The impact of effective inventory control management on organisational performance: A Study of 7up bottling company Nile Mile Enugu, Nigeria. Mediterranean journal of social sciences Mcser publishing, Rome-Italy, Vol. 5(10).


Ogbo, A.I. (2011). Production and Operations Management. Enugu: De-verge Agencies Ltd.


Olowolaju, M. (2013). An Assessment of Inventory Management in Small and Medium Scale Industrial Enterprises in Nigeria. European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.5(28).


Phebe, S. & Njoku, P. C. (2018). Inventory  Management and organizational  p e r f o r m a n c e ( S t u d y o f D a n s a F o o d L i m i t e d ) DOI:10.13140/RG.2.2.11093.27364


Shin, S., Ennis, K. L., & Spurlin, W. P. (2015). Effect of inventory management efciency on protability: current evidence from the U.S. manufacturing industry. University Journal of Economics and Economic Education Research Vol. 16(1), 2015.





Sani Alfred Ilemona1, (ORCID: 0000-0001-7007-5268*, PhD, FCA)

1Federal Universityi Kashere, Gombe State. Nigeria.

Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

+234 8036374387

Nweze Uchechukwu Augustine2, (Prof)

2 Accounting Department, Enugu State University of Science and Technology




The study examined the impact of Process Innovation (PrssI) Product Innovation (PrdtI) and Institutional Innovation (InsI as components of Financial Innovation (FIn) on the growth of Small and Medium Scale Enterprises” (SMEs) using Opening of New Markets (ONMs) by SMEs as surrogate for growth (dependent variable). Data for the study were obtained primarily through questionnaire constructed to reflect five

(5) point likert scales. Validity and reliability of data collection instrument were done using test-retest method and Cronbach's Alpha respectively. Response from 251 respondents made up of owners of SMEs in Plateau and Nasarawa states were empirically analyzed using multiple regressions. The result revealed that the predicatory variables (PrssI, PrdtI and InsI) have significant impact on ONMs. The study concludes with recommendation that (Inp, InMs and InEPS) have significant impact on ONMs. The study concludes with recommendation that FIn should be pursued by SMEs operators in Nigeria for growth and competitiveness in global the economy.


Key words: Growth, SMEs; Financial innovation. JEL Classification: B22, B26, D31, F65 Introduction

Across the globe, Small and Medium Scale Enterprises (SMEs) have been playing key roles in economic growth and development of nations as the sector is always revered as engine room for industrialization and self-reliance. The sector has been very supportive in promoting skill acquisition, employment generation and poverty reduction in the society. The sector is held by government and people of nations as the only sustainable means that can pave for greater utilization of local raw materials, mobilization of savings, linkages with industries and




provision of regional balance by spreading investment, growth and development more evenly in both developed and developing nations of the world.


In USA and EU countries for example, it is estimated that SMEs contribute over 65 percent in employment creations, 45-63percent to Gross Domestic Product (GDP) and between 35-65percent to export (Danlami & Famola, 2017). Asian, countries like China, Japan and South Korea have witnessed tremendous growth in their economy due to contribution of SMEs. The contribution of the sector to employment generation, GDP growth and export of these countries is estimated at 75-85percent, 45-50 percent and between 58-62 percent respectively (Ochadu & Nanami, 2017). Similarly, in developing nations of Africa countries like Nigeria, Egypt and South Africa have been recording notable economic growth on account of SMEs as the sector contributes between 70-80percent, to employment creation, 25-30 percent to GDP growth and between 30-45 percent to export of these countries (Lawal & Abuku, 2018).


In Nigeria particularly, the role of SMEs has been key in economic diversication policy of government. From monoculture (solely depending on oil revenue) to production, marketing and export of goods and services, government is looking the way of SMEs as a viable means to fast track economic growth of the nation. It is in a bid to develop the sector that successive government over the years have been formulating policies to aid the growth of the sector. Generous tax incentives and affordable loans from banks and government at low interest rates are some of the incentives to stimulate the growth of the sector in the country. It is noteworthy that strengthening of SMEs and promotion of industrialization is one of the cardinal principles of Economic Recovery and Growth Plan (ERGP) for the country. The ERGP is a medium plan for 2017-2020 of government for sustained growth having recovered (exited) the economic meltdown the country witnessed between 2016 and 2017 and Covid-19 pandemic.

Interestingly, plan and idea to grow SMEs is a macro and microeconomic self- reliance strategy that thrives not only on government support but also on evolved technological based methods, business practices and innovations of entrepreneurs.

Statement of the Problem


Despite efforts to encourage the sector, SMEs in Nigeria are still facing a gamut of challenges. Key among these challenges is that of nance, unfriendly business environment (insecurity) and infrastructural decit particularly low power supply




(Duloyin & Fasch, 2018). These problems have adversely affected the output of the sector both in quantity and quality as most of these output (goods and services) are not t for local consumption and export (Edmehen & Elai, 2018). The multiplier effect of poor quality for made in Nigeria product is low patronage and sales affecting negatively the nance/funds or money that these enterprises would have earned for growth and expansion.


Dolapo and Gregory (2018) observed that the problem of low patronage and sales of made in Nigeria product and services is so severe that many of SMEs die in infancy as a result of erce competition of products from advanced countries.


In view of the success story of SMEs in many developed nations such as China, Japan and USA in terms of inventions and innovation to grow the sector in these countries, quite a number of SMEs operators in Nigeria have identied some

nancial innovations to stimulate the growth of sector in the country. From new product innovations, process innovation, marketing strategy (Sales inducer) to innovative easy payment system (electronic) for convenience of buyers, Nigeria entrepreneurs are beginning to evolve ways to innovatively attract local and foreign customers to get funds (nance) to grow their businesses.


Worthy to note is that while some are of the view that the innovations have impacted positively on the growth of the sector, others are of contrary view. For instance, Momoh and Ola (2017) opined that nancial innovations of Nigerian entrepreneurs (SMEs) have positively impacted on growth of SMEs in the country. Buala (2019) stated that these innovations have not signicantly impacted on the growth of the sector in the country. It is against this backdrop of contradicting views that this study will test the signicance of the impact of these innovations on the growth of SMEs in Nigeria.

Objectives of the Study


The general objective of the study is to examine the impact of nancial innovation on the growth of SMEs in Nigeria with particular reference to selected SMEs in Plateau and Gombe states. The specic objectives however include:


  1. To examine the impact of process innovation on the growth of SMEs in Nigeria
  2. To ascertain the extent of the impact of product innovation on the growth of SMEs in Nigeria
  3. To investigate the impact of institutional innovation on the growth of SMEs in Nigeria.




Hypotheses of the Study

The following conjectural or null hypotheses are formulated to guide the study:


H01:   Process innovation has no signicant impact of the growth of SMEs in Nigeria.


H02:   Product innovation has no signicant impact on the growth of SMEs in Nigeria.


H03:   Institutional innovation no signicant impact on the growth of SMEs in Nigeria.



Conceptual Clarification


Financial innovation: It is a term that means the inclusion of new nancial instruments in nancial intuitions and markets through new technologies (Andrey & Jaraji, 2016). Khalifa (2017) viewed nancial innovation as the creation of new

nancial instruments, technologies, institutions and markets. Innovation in

nance is a sustainability measure which includes research and development activity of an enterprise, its demonstration, diffusion and adoption of the ndings of the research (Gupta & Baker, 2014). Financial innovation is a measure that involves implementation of a new or signicantly improved production, delivery and payment for transactions that expedite the exchange of goods and services in prompt, projected and reliable manner (Raigama & Momoh, 2017). It is an idea evolving ways of doing business which are of three types namely (i) process (ii) product and (iii) institutional (Gibion & Chapman, 2013).


Process Innovation (PrssI) involves the application or introduction of a new technology or method that would assist an enterprise remain competitive. It is a process that involves changes in tools of an enterprise used to sell, maintain goods, accounting for goods and prompt customer service delivery (Nicholas & Tiallo, 2015). It entails new ways of operating business and implementation of information technology such as Automated Teller Machine (ATM), Point of Sale (POS), mobile banking system for easy of business operation (Faloyin, 2015). Further on ATM and POS, Faloyin (2015) stated that while ATM is a banking technology that guarantees 24 hours receipt and payment of cash for goods and services, POS, is a contemporary business technology benecial to entrepreneurs in terms of ability to save information about the nancial status of their




businesses (sales report), segregate categorise of products into most and least protable from where sales strategy can be developed, keep track of goods going in and out of store, change prices to products automatically updated without mistakes and additional sales conducted by staff/employee checked and used by management for reward criteria. Summarising the benets of POS system, Danlami and Famolaya (2017) viewed that it is an innovation that creates economic objectives for enterprises as it makes businesses to be more cost focussed, gives a greater insight into revenues, saves time and improves relation with customers.


Product Innovation (PrdtI) involves introduction of new procedures, policies, organisational forms and knowledge embodied in the distribution channels, product application as well as customers' expectation, preferences and needs (Gupta, 2013 cited in Andrey & Jaraji, 2016). PrdtI include the improvement measures for product of an enterprise, introduction of new credit, leasing, hire purchase etcetera for the purpose of responding better to changes in market demand (Gupta & Baker, 2014). It is the introduction of goods and services that is new or signicantly improved regarding its characteristics or intended use (Andrey & Jaraji, 2016). The innovation is not only concerned with developing new product, it is also about improvement to existing products of an enterprise for enhanced quality, improved performance for better use. A key importance of PrdI is creation/identication of new space in a seemingly saturated or crowded market. Such identication and space creation will enable entrepreneurs to nd customers to satisfy in a manner that is new and refreshing (Momoh & Ola, 2017).

Institutional Innovation (InsI) is a concept that redenes roles and relationship of business stakeholders to accelerate transactions at reduced risks ( Danlami & Famolaya, 2017). The innovation allows enterprises to organise themselves to scale up product and service delivery, business models and management system. The scaling up will create opportunities for businesses to realise prots and expansion they (businesses) value (Omaye, 2017). InsI has to do with introduction of new types of nance rms and new trading system such as internet banking specialist and credit rms aimed at reducing access barriers for customers in a new service structure (Faloyinu, 2015).


SMEs: The Small and Medium Industries and Equity Investment Scheme (SMIEIs) report (2002) cited in Ochadu and Dejo (2015) dened SME as an enterprise with N200million maximum asset base excluding land and working capital with a workforce of not less than 10 employees and not more than 300 employees. SMEs in Nigeria are broadly dened as businesses with turnover of




less than N500 million per annum and/ or less than 300 employees (Lawal & Aduku, 2018). The SMEs play pivotal role in the economy of the country as they (SMEs) represent sources of entrepreneurship for jobs creation in the society.


Growth: A rm's growth is related to its ability to earn prots, expands its asset base and opening up of new markets for strategic advantage (Omaye, 2015). It is ability of an enterprise to gain competitive advantage in local and foreign markets through its innovative strategies (Folayin, 2015). Edomehen and Elai (2018) viewed that an enterprise begin to grow when its reputation in both local and foreign markets increases with multiplier effect on all other growth indices such as opening up of new branches and better competitive forces to contend with pressures from its internal and external environment.

Empirical Review

Studies in other Economies-Developed and Developing

Alfonso and Juan (2018) did a study on innovation and business performance for Spanish SMEs: New evidence from a multi-dimensional approach. The aim was to examine the impact of product, process and organizational innovation on two alternative dimensions of business performance. Financial performance captured by two indicators; sales increases and production cost reduction. Data obtained from a simple of Spanish SMEs were tested empirically using regression analysis. It is found that there is a signicant impact of innovation on the performance of SMEs.


Adegoke, Andrew and Gerard (2007) conducted a study on innovation types and performance in growing United Kingdom (UK) SMEs. The objective was to explore the types of innovation that are predominantly radical or incremental and their impact. A web based survey instrument was used to administer questionnaire on SMEs in manufacturing, engineering, electronic, information and communication industries. Responses obtained from operators of the businesses were analyzed using regression. It was found that SMEs tend to focus more on incremental than radical innovations and the focus has impacted on growth in turnover of the businesses.


Nirosha and Viviana (2019) did a study on innovation and SME nance: Evidence from developing countries. The aim was to explore the relationship between rm level innovation and external nance for SMEs. From a sample of 13430 businesses from Eastern Europe and Central Asian countries, Propensity Score Matching Approach (PSMA) analysis showed a positive relationship between rm

ancé, product and process innovation.




Ploypailin and Pongsutti (2020) studied innovation and rm performance: The moderating and mediating roles of rm size and small and medium enterprise

nance. The aim was to examine the moderating effect of rm size on the relationship between innovation and performance of SMEs in 29 countries in Eastern Europe and Asia. The study further investigated whether the impact of innovation in product and processes on rm performance is affected by nance. The result of Partial Least Square structural equation modelling indicated  that

rm size and nance both moderate and mediate the impact of innovation on rm performance positively and negatively.

Muhammad, Yong and Muhammad (2020) conducted a study on nancial innovation and economic growth: Empirical evidence from china, India and Pakistan. The aim was to investigate the casual relationship between nancial innovation and economic growth in these countries from 1970-2016. Using Autoregressive Distributed Lag (ARDL) bound testing and Granger causality based Error Correction Model (ECM), it was found that nancial innovation has positive and statistically signicant impact on economic growth in short and long run.

Lura (2014) examined the impact of innovation on SMEs performance. The aim of the study was to investigate the extent of the innovative activities of SMEs and the impact on entrepreneurship. Using primary source, data obtained from 500 SMEs in Kosovo were analysed using simple regression. It was found that innovative activities impact on performance as it (innovation) brings about introduction of new products and services.


Mohd and Syam (2013) conducted a study on the impact of innovation on the performance of small and medium manufacturing enterprises: Evidence from Malaysia. The aim was to evaluate the impact of various dimensions of innovation on the performance of SMEs in Malaysia. Data collected from a sample of 284 SMEs in the food and beverage, textile and clothing and wood based sub- industries were analysed using hierarchical regression statistical tool. Findings suggest that innovation has impact on rm performance.

John, Maurice and Joseph (2013) investigated the inuence of innovativeness on the growth of SMEs in Kenya. The aim was to establish the inuence of innovativeness on the growth of SMEs in Kenya. The study adopted descriptive survey as well as exploratory design. Data obtained from a sample of 4560 SMEs in Nairobi, Kenya were empirically analysed using regression model. Findings indicated that innovativeness triggered growth of SMEs.




Stephen (2019) conducted a study on impact of innovation types on SMEs' performance in the Cape Coast metropolis of Ghana. The aim was to ascertain the impact of innovation types on SMEs performance. Data obtained from 307 respondents to questionnaire distributed was analyzed using Partial Least Square (PLS). Results showed that product, process and marketing strategy positively impact SMEs performance.


Andrey and Jaraji (2016) examined the impact of innovation on the performance of SMEs in Tanzania: A review of empirical evidence. The aim was to explore the studies conducted on the impact of innovation on performance (growth) of SMEs in Africa with practical reference to Tanzania. It was found that little empirical evidence abounds on the innovative activities of SMEs and the impact on businesses.

Studies in Nigeria

Rukevwe (2015) did a study on the effect of innovation on the performance of SMEs organizations in Nigeria. The aim was to investigate the effects of innovation on the growth of SMEs in developing economy particularly Nigeria. Data for the study were collected from 200 respondents into SMEs in Nigeria. Data obtained were analyzed using regression. Innovation was measured using OECD Oslo scale. It was found that there is a high correlation among factors used to measure innovation and also innovation was found to inuence business performance.

Peter and Peter (2019) conducted a study on nancial innovation and output growth of SMEs industries in Nigeria. The aim was to assess the role of nancial innovation in the output growth of the enterprises in Nigeria. Quarterly data from the businesses were analyzed using regressive distributed bounds testing approach and Granger casualty test to ascertain the long run impact and casual relationship between nancial innovation variables and SMEs output growth. Evidence from the analysis conrms that nancial innovation variables of POS and ATM have signicant impact on output growth of SMEs.

Adeyemi Michael and Yusuf (2017) studied the impact of technological innovation on SMEs protability in Nigeria. The aim was to examine the impact of Research and Development (R&D) expenditure, product and process innovation on SMEs performance in the manufacturing industry. Using survey research method, data (responses) of 1000 SMEs on the contribution of these innovations on the protability of the businesses were analyzed. The result of the simple percentage analysis indicated that these innovations have signicant impact on protability of SMEs businesses in Nigeria.




Anthony and Harry (2015) did a study on SME rm performance, nancial innovation and challenges. The aim was to exploit innovative ways to improve

nancing in the sector. It was found out that crowd funding is one of the innovative ways SMEs can overcome funding challenges that impair their performance.


Chinazor and Ama (2018) conducted a study on technological innovativeness and growth: A study of small scale manufacturing rms in Lagos state. The aim was to determine the extent of the relationship between technological innovativeness and rm growth. Using exploratory research design, data obtained from 1,0444 SMEs were analyzed. The result of Pearson Product Moment Correlation indicated that there is correlation between technological innovativeness and growth of SMEs.


The ndings of the exploratory research of Andrey & Jaraji (2016) is a gap identied and therefore this study is a contribution and an addition to few empirical studies on innovation and the impact it has on entrepreneurship in one of the countries in sub-Saharan Africa.

Theoretical Framework

The study is anchored on entrepreneurship and innovation theory propounded by Schumpter, between 1828 and 1950. The theory is a focus on the role of innovation in entrepreneurship, economy and social change. Schumpter viewed entrepreneurship growth as a process of quantitative change driven by innovation. New products, new method of production, new sources of supply, exploration of new markets and new ways of organising business as key innovations in business which the theory describes as entrepreneurial functions of new combination of existing resources. The theory assumes that is always prevalence of initial resistance to new ways of doing things that normally impedes entrepreneurship growth in the society which entrepreneurs must overcome in order to be successful.

The theory is relevant to this study as it is a description of the relationship between innovation and entrepreneurship growth for socio-economic change. Presentation of opportunity of innovation through which entrepreneurs in Nigeria can create new competitive products, market the product and receive payment for them in both local and international markets are some of the emphasis of the theory that underscores its relevance to the study.






Descriptive survey design was adopted for the study. The design describes people's response to questions and reports the way things happen (Bula, 2019). Data for the study were obtained primarily using questionnaire constructed to reect ve (5) point likert scale. The questionnaires were administered on 365 respondents made up owners and employees of 15 SMEs operating in Jos, Plateau State and Laa, Nasarawa State of Nigeria.

Data Analysis

Responses obtained from 251 respondents representing approximately 69percent response rate were empirically analysed using multiple regression.

Model Estimation

The use of multiple regression and equation there on is meant to investigate the degree of variation of the dependent variable (Y) caused by the independent

variables of  β1x1, β2x2, and β3x3. The apriori expectation was that

β1x1, > 0, β2x2  > 0 and β3x3   > 0.


Model Specification


The model linking innovate on (X) and SMEs growth (Y) is depicted as follows


Y = a  + β1x1  + β2x2  + β3x3+ E   …. equation 1


Y = Dependent variable (SMEs growth) measured by Opening up New Market (ONM).



β1x1  ... β3x3


= represent the independent/explanatory variables decomposed


PrssI, PrdtI and InsI. The econometric form of the equation is given as;



a  + β1Prssl + β2Prdtl + β3Insl + E


…equation 2



Therefore equation 2 was used for the analysis where; ONM = Opening up of New Markets.





a =    intercept

PrssI = Process Innovation. PrdtI = Product Innovation. InsI = Institutional Innovation.


E =    Error term (predictor error), That is the difference between actual and the

predicted value of Y (dependent variable).


Validity of the Instrument


Consistency of the response obtained on two occasions was tested using test- retest method. Answers obtained on each item of the construct remained the same administering the same question to the same respondents.


Reliability of the Instrument


Reliability test of the questionnaire construct was conducted using Cronbach's Alpha with each construct on nancial innovation and SMEs growth rate having

0.76 and 0.81 respectively. Cronbach's Alpha coefcient greater than 0.5 is considered acceptable for reliability of items of a construct (Nunnally, 1994) cited in Ekpo (2016).


Results and Discussion


The F-statistical test of the ANOVA result showed that the explanatory/ independent variables are all signicant at 5% as indicated by the F-test values of 18.346, 174.051, 286.173 and p-value (probability) of 0.03146, 0.04631 and 0.03824 for Prssl, Prdtl and Insl respectively. Therefore, with p-value lower than 0.05, the null hypotheses of the study are rejected. Therefore it can be concluded than nancial innovation of SMEs have signicant impact on their growth. This

nding collaborate the previous studies of Rukevwe (2015), Momoh & Ola (2017) Adeyemi et al. (2017) Chinazor & Ama (2018) and Peter & Peter (2019). These

ndings in Nigerian environment are also in agreement with the ndings of Adegoke et'al (2007), Moh'd & Syam (2013), John et'al (2013), Lura (2014), Alfonso & Juan (2018), Stephen (2019) and Mohammed et'al (2020) that found out in their studies of other economies that nancial innovation has impacted positively impacted on growth of SMEs.




Further, the high value of coefcient of determination (R2) on MRM table at 0.8821 showed that approximately about 88percent of the variation in the rate of ONMs by SMEs is explained by the values of the total predictor variables considering that the maximum value of R2  is 1.00 or 100percent. Similarly, the

adjusted  R2   value  of  0.886  indicates that approximately  about  89percent of

changes in ONMs are explained in the model after all necessary adjustment are taken care of. This therefore complements the high explanatory power of R2.


Although, contrary to a prior expectation, the constant variable (a) and PrdtI depict negative gures, the model is still good since the values of R2 and Adjusted

R2   are high. The values indicate a high predictory ability of the explanatory

variables of the likely future changes in the ONMs (growth indicator). It therefore means that all the predictor variables of the study have signicant impact on the dependent variable (ONM) as a measure for growth of SMEs in Nigeria.


Conclusion and Recommendations


Growth/expansion of SMEs is of interest to the government, entrepreneurs and people of Nigeria as the sector is pivotal to the nation's quest for industrialization and self reliance. The sector has contributed tremendously to Nigerian economy in terms of job creation, poverty alleviation and provision of goods and services. As economic pace of the nation slow down for entrepreneurs, businesses cannot afford to overlook the essence of innovative business methods, practices, marketing strategies and adoption of the electronic business transaction system as a way of attracting customers in both local and foreign markets.


Financial innovation is one of the valuable drivers that propel SMEs for growth. It is recommended therefore that businesses operating in Nigeria's economy should be innovative in their operation by introduction of new or improved processes, innovative quality product, embracing modern technological institutional way of dealing with customers in terms of payment and receipt of funds. These will certainly propel growth and competitiveness of businesses and Nigerian products in both local and international markets.






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innovation   in   emerging   Economics









Professor of Banking & Finance






Investing mistakes have been reported throughout history. Such mistakes have bedeviled investors for millennia. Traditionally, individual investment decision is a tradeoff between immediate consumption and deferred consumption but with investment literacy, this axiom does not hold. The individual investors do not behave in a rational manner, rather many factors influence their investment decisions in stock market. The crash of the Nigerian Capital Market is unprecedented, for it plummeted from N13.5 trillion in March 2008 to less than N4.6 trillion by January 2009 with All- Share Index falling from 66,000 points to less than 22,000 points during the same period. Nigeria is integrated into the global capital market; hence, what happens outside the shores of Nigeria affects the Nigerian Capital Market. The impact on the investment public and on the individual investors in particular is enormous. Therefore, the paper is a survey study designed to awaken the sub consciousness of individual investors in forestalling such monumental loses by knowing the nitty-gritty, processes and procedures of the Capital Market and imbibing the right culture and behavior, and taking proactive actions by the investors through investment literacy education. Hence, investment literacy should include familiarity with the mistakes of history not just the success stories; investment literacy education is a sine qua non for investors.


Key words: Investment Literacy Education, Investment setting, Investors Behavior.



Background of the Study


Investment History: Investing is more democratic but it is not entirely equal. According to Norton Reamer and Jesse Downing in their book, “Investment History” they stated that it is necessary that investors be educated at best as it is necessary. The rst nancial commandment of the 21st  century is, “Thou shalt not plead total investment ignorance”, they emphasized. The rst investments were land grants given to retired Roman soldiers by the government to keep them occupied and uninvolved in politics in the capital.


A number of investing mistakes have been repeated throughout history. Such mistakes have bedeviled investors for millennia. They are (1) not diversifying enough, (2) buying into asset bubbles, (3) using leverage inappropriately. (4) ignoring or engaging in conicts of interest, and (5) succumbing to emotional biases. True nancial literacy should include familiarity with the mistakes of investing history – not just the success stories. A very distressed turn around operation was described in the 3000s B.C., in Xenophon's Oeconomicus. Similarly to today's buyouts managers, an investor purchased problematic properties, implemented changes to improve them, and sold them to new buyers who would not have purchased them before the repair (Reamer & Downing, 2016).


In ancient Greece, 2,500 years ago, investment managers were most likely slaves. Many land owners delegated the nancial management of their estates to slaves – and some slaves acted as professional managers, assisting their masters with their affairs. The nancial system we know today began to take shape in the 16th century. Three elements laid the ground work: Joint Stock Companies, Public Markets, and the Industrial Revolution (Reamer & Downing, 2016).


Investment Currency: To get the best out of investment, there must be an understanding of human nature in nancing. Investors need to develop a positive vision, foresight, patience and drive. Prior research has it that investment literacy education in nancial management will signicantly correlate with decision making on critical investment issues (Chen & Volpe, 1998) as contained in Ansari & Moid (2013). To reduce nancial insecurity, feeling of

nancial independence, tendency of having own's assets at an early age could be the reason which creates an urge in the young professionals who are in the early stage of their profession to invest their hard earned money in nancial alternatives such as shares, debentures, bonds, mutual bonds, derivates and others (Ansari & Moid, 2013).   Further, the tenet of investment theory is that




investors are rational beings who always attempt to maximize expected utility based on their expectations of future returns. While economic utility theory views the individual's investment decision as a tradeoff between immediate consumption and deferred consumption, the investment theory has it that investors are rational humans who attempt always to maximize their expected utility on their expectations of future returns (Ansari & Moid, 2013; Chandra & Kumar, 2011).


Nigerian Capital Market: The crash of the Nigerian Capital Market has been unprecedented in its evolution since 1960 to date. The market capitalization nose-dived fromN13.5 trillion in March 2008 to less than N4.6 trillion by the second week of January 2009. Further, the All-Share Index (a measure of the magnitude and direction of general price movement) has also plummeted from about 66,000 points to less than 22,000 points during the same period. In the same vein the stock prices experienced a downward movement regime with more than 60% of slightly above 300 quoted securities on constant offer (supply exceeding demand) on a continuous basis (Olisaemeka, 2012). Informed investors is a pre requisite for a robust capital market.


Consequently, many of the quoted stocks lacked liquidity as their holders were trapped, not being able to convert them to cash to meet their domestic and other investment needs. Yet existing and potential investors are cautious of getting into a vehicle that does not seem to have a brake should they wish to disembark (Olisaemeka, 2012).


From the above, the Nigerian investment environment was turbulent and discouraging and this called for the enlightenment of the public, especially the individual investors. This paper is therefore, a research survey to explore the salient features of investment literacy education and investor's behavior for the benet of investors which have value chain on other stake holders.




Investment has different meanings in nance and economics. Finance investment is putting money into something with the expectation of gain that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time (Graham & David, 1951). As such, those stake holders who fail to thoroughly analyze their stock purchases, such as owners of mutual funds, could well be called gamblers. Indeed, given the efcient market hypothesis, which implies that a thorough




analysis of stock data is irrational, most rational shareholders are, by denition, not investors, but speculators.


Investment is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and nance whether for household, rms, or governments. To avoid speculation, an investment must be either directly backed by the pledge of sufcient collateral or insured by sufcient collateral or insured by sufcient assets pledged by a third party. A thoroughly analyzed loan of money backed by collateral with greater immediate value than the loan amount may be considered an investment. A

nancial instrument that is insured by the pledge of assets from a third party, such as deposit in a nancial institution insured by a government agency may be considered an investment. Examples of these agencies include, in Nigeria, Nigeria Deposit Insurance Corporation; in the United States, the Security Investor Protection Corporation, and in Canada, the Canada Deposits Insurance Corporation (Wikipedia 2012).


Economics or Macroeconomics


In economic theory or in macroeconomics, investment is the amount purchased per unit time of goods which are not consumed but to be used for future production (i.e. Capital). Examples include railroad or factory construction. Investment in human capital includes costs of additional schooling or on-the-job training. Inventory investment is the accumulation of goods inventories; it can be positive or negative, and it can be intended or unintended. In measures of national income and output, "gross investment" (represented by the variable I) is also a component of gross domestic product (GDP), given in the formula GDP = C

+ I + G +NX, where C is consumption, G is government spending and NX is net exports. This investment is everything that remains of total expenditure after consumption, government spending, and net exports are subtracted (i.e. I = GDP – C- G - NX) (Kevin & Hassett, 2000).


Non-residential xed investment (such as new factories) and residential investment (new houses) combine with inventory investment to make up I. "Net investment" deducts depreciation from gross investment. Net xed investment is the value of the net increase in the capital stock per year.



Fixed investment, as expenditure over a period of time ("per year"), is not capital. The time dimension of investment makes it a ow. By contrast, capital is a stock— that is, accumulated net investment to a point in time (such as December 31).


Investment is often modeled as a function of income and interest rates, given by the relation I - f (Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a rm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than lending out that amount of money for interest. (Kevin and Hassett, 2000)


Investment Alternative


In nance, investment is the commitment of funds through collateralized lending, or making a deposit into a secured institution. In contrast to investment; naira value, market timing and diversication are phrases associated with speculation. (Wikipedia, 2012).


Investments are often made indirectly through intermediaries, such as banks, credit unions, brokers, lenders and insurance companies. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary. (Wikipedia, 2012). Investment alternatives are between nancial assets and real assets. A nancial asset represents a nancial claim on an asset that is usually documented by some of legal representation. An example is a share of stock or bond. A real asset represents an actual tangible asset that may be seen, felt, held or collected. An example is real estate or gold.


Real Estate as the Instrument of Investment: In real estate, investment money is used to purchase property for the purpose of holding, reselling or leasing for income and there is an element of capital risk.


Residential Real Estate: Investment in residential real estate is the most common form of real estate investment measured by number of participants because it includes property purchased as a primary residence. In many cases the buyer does not have the full purchase price for a property and must engage a




lender such as a bank, nance company or private lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky (Wikipedia 2012).


Commercial Real Estate: Commercial real estate consists of multifamily apartments, ofce buildings, retail space, hotels and motels, warehouses, and other commercial properties. Due to the higher risk of commercial real estate, loan-to-value ratios allowed by banks and other lenders are lower and often fall in the range of 50-70% (Wikipedia, 2012).


Investment Setting


In this paper, we shall break down investment alternatives between nancial and real assets. A nancial asset represents a nancial claim on an asset that is usually documented by some of legal representation. An example will be a share of stock or bond. A real asset represents an actual tangible asset that may be seen, felt, held or collected (Bodie, Kane & Marcus, 1995).


According to Bodie, Kane and Marcus (1995), the nancial asset can be broken down into ve categories, namely: Direct equity claims, Indirect equity claims, Preferred stock, Commodity futures and Credit claims.


Direct equity claims represent ownership claims which include common stock as well as other instruments that can be used to purchase common stock, such as warrants and options. Indirect equity can be acquired through placing funds in investment companies such as mutual funds. The investment company pools the resources of many investors and reinvests them in common stock or other investments. Preferred stock is a hybrid form of security which combines the elements of equity ownership and creditor claims while Commodity futures represent a contract to buy or sell a commodity in the future at a given price. Commodities may include wheat, corn, copper or even such instruments as treasury bonds and foreign exchange. Creditors' claims represent debt instruments offered by nancial institutions, Industrial Corporation or the government. The rate of return is often xed, though actual return may vary with changing market conditions.




On the real assets, the most widely recognized in this category is real estate, either commercial property or one's own residence. For greater risk, precious metals or precious gems can be considered and for those seeking psychic pleasure as well as momentary gain, collectibles are an instrument outlet. And

nally, the other category includes cattle, oil and other items that stretch out as far as the imagination can go.

Investment Objective

To set investment objective is as important as the selection of the investment. However, they tend to go together. A number of key areas should be considered (Bodie, Kane & Marcus, 1995):


Risk and Safety Principle: The rst factor investors must consider is the amount of risk they are prepared to assume. In a relatively efcient and informed capital market environment risk tends to be closely correlated with returns. The higher the returns, the higher the risks involved.


Current Income Vs Capital Appreciation: In purchasing stocks, the investor with a need for current income may opt for high yielding mature rms in such industries as public utilities, machine tools or high technology rm. Those searching for price gains may look towards smaller, emerging rms in high technology, energy or electronics. The later rms may pay no cash dividend but the investor hopes for an increase in value to provide the desired return.


Liquidity Consideration: This is measured by the ability of the investor to convert an investment into cash within a relatively short time at its fair market value or with a minimum capital loss on the transaction. Most nancial assets provide a degree of liquidity, stocks and bonds and can generally be sold within a matter of minutes at a price reasonably close to the last traded value. Such may not be in the case for real estate.


Short-term Vs Long-term Orientation: In setting investment objectives, you must decide whether you will assume a short-or long-term orientation in managing the funds and evaluating performance in the short-run. You do not always have a choice. Even though you are convinced your latest investment will double in the next three years, the fact that it is currently down 15 percent may provide discomfort to those around you.


Tax Factors: Investors in high tax brackets have different investment objectives than those in lower brackets or tax-exempt charities, foundations or similar organizations. An investor in a high tax bracket may prefer municipal bonds (interests is not taxable), real estate (with its depreciation and interest written off), or investments that provide tax credits or tax shelters.




Ease of Management: Another consideration in establishing an investment program is ease of management. The investor must determine the amount of time and effort that can be devoted to an investment portfolio and act accordingly. In the stock market, this may determine whether you want to be a daily trader or assume a longer-term perspective. In real estate, it may mean the difference between personally owning and managing a handful of rental houses or going in with 10 other investors to form a limited partnership in which a general partner takes full management responsibility and the limited partner merely put up the capital.


Retirement and Estate Planning Considerations: Even the relatively young must begin to consider the effect of their investment decision on their retirement and the estate they will someday pass along to their potential families. Most good retirement questions should not be asked at retirement but 40 or 45 years before because that is the period with the greatest impact. Hence, you plan to invest now or you plan to fail later.

Motives for Saving and Investing


Writing in 1936, John Maynard Keynes identied three reasons for saving: precautionary – saving for a rainy day, transactionary – saving to buy something in future, and speculative – moving out money into non-money assets in anticipation of nancial return.


In supporting J. M. Keynes, the monetarist, Nilton Friedman proposed in his port- folio theory as to why people had different nancial assets. This proposal suggests that people will satisfy their cash demands before considering any other assets. They will then fulll their needs for highly liquid assets (that can easily be converted to cash, such as deposit and current accounts), then less liquid but potentially higher return assets.

Other Factors Influencing Customer Choice


When saving and investing, customers are driven by various stimuli. These vary according to personal need and preferences, as well as factors such as averseness to risk. The following factors usually drive customer demand for funding products offered by nancial institutions: Rate of return, Potential for capital growth, Risk of capital loss, and Convenience – liquidity requirement, simplicity and tax efciency.



Difference between Saving, Speculation, Investment and Gambling

Saving is putting money aside so that it is readily available for any sudden

nancial emergency. Speculation involves a short timescale with a potentially high reward by way of capital gains. Investment has a higher risk and longer timescale than saving and the return can come in the form of income or capital gain or both. And nally, gambling involves a very high risk with a very short timescale. It is usually an 'all or nothing' situation when you either lose your entire stake or make a large gain. Gamble winnings are free of income and capital gain tax concludes Bodie, Kane & Marcus (1995).


Measures of Risk and Return


The return on investment receives from any investment (stocks, bonds, real estate) has two primary components, capital gain or losses and current income. The rate of return from an investment can be measured (Fischer & Jordan, 2005) as:


Rate of return = Ending value – beginning value + income Beginning value


For example, if a stock is valued from N20 to N22 and pays one naira as dividend during the year, the total return is 15%.

Hence, the rate of return = (P1 – PO) + D1



Where: PI = Price at the end of the period PO = Price at the beginning of the period DI Dividend at the end of the period


Risk: The uncertainty associated with the outcomes from an investment is called risk. For example, an investment with 10% absolute return is said to be riskless. But another with uncertain 12% expected return and a possibility of minus 10% in hard economic times and plus 30% under optimum circumstances is said to be risky.


In investment returns are associated with the level of risks involved. Because most investors do not like risk, they will require a higher rate of return for a riskier investment. This is not to say that investors are unwilling to take risk. For this reason, an investment in common stocks (which carries some risks) may require




an anticipated return of 6 or 7 percent higher than a certicate of deposit in a commercial bank. This 6 or 7 percent represents a risk premium.


Consideration of Required Returns


Let us consider how return requirements are determined in the nancial markets. Basically, as stated by Fischer & Jordan (2005), three components make up the required return from an investment: Real Rate of Return, Anticipated Ination Factor, and Risk Premium.


The Real Rate of Return: This is the return investors require for allowing others to use their money for a given time period. Because the term 'real' is employed, this means it is value determined before ination is included in the calculation. It is also determined before considering a specic risk for the investment. Usually, the real rate of return is between two and three per cent.


Anticipated Inflation Factor: The anticipated ination factor must be added to the real rate of return. For example, if there is a two percent real rate-of-return requirement and the anticipated ination factor is three per cent, we combine the two to arrive at an approximate ve per cent required return factor. This combination gives us the required return on an investment before explicitly considering risk. Hence, it is called risk-free required rate of return or simply risk- free rate (RF).

RF (Risk – free rate) = (1 + real rate) (1 + expected rate of ination) – 1 If we work on data given above, we shall:

RF =(1.02)(1.03) – 1

= 1.0506

= 0.056                   5.06%


We have now examined the two components that make up the minimum risk-free rate of return that apply to investments (stocks, bonds, real estates, and others). We now consider the third component which is the risk premium.


Risk Premium: The risk premium will be different for each investment. For example, a government Treasury bill, or certicate, the risk premium approaches zero. All the return to the investor will be at the risk-free rate of return (the real rate of return plus inationary expectations). For common stock, the investor's required return may carry a six or seven per cent risk premium in addition to the




risk-free rate of return (RF). If the risk-free rate (RF) is ve per cent, the investor might have an overall required return of 11 to 12 per cent on common stock. For components of Required Rate of Return, see Figure 1 and the analysis.


The Investment Environment


When someone borrows money from a pawn broker, the borrower must leave some item of value as security. If the borrower fails to repay the loan plus interest, the pawn broker can sell the pawned item to recover the amount of the loan (plus interest) and perhaps make a prot. The terms of agreement are recorded on pawn tickets. When a college student borrows money to buy a car, the lender usually holds formal title of the car until the loan is repaid. In the event of default, the lender can repossess the car and sell it to recover costs. In this case, the ofcial certicate issued by the state serves as security for the loan. (Hirt & Block, 2003).


In another occasion, a person who borrows money for a vacation may simply sign a piece of paper promising repayment with interest. The loan is unsecured in the sense that there is no collateral, meaning that no specic asset has been promised to the lender in the event of default.


Enabling Environment for Investments


Investment Process: The investment process describes how an investor should go about making decision with regards to what marketable securities to invest in, how extensive the investment should be, and when the investment should be made. Hence, the investment process deals with what, how and when.


Thus, ve step procedure for making these decisions forms the basis of investment process (Khan, 2006): (1) set investment policy,(2) security analysis,

(3) construct a portfolio, (4) evaluate the performance of the portfolio, and (5) revise the policy.


  1. Investment Policy: Setting investment policy involves determining the investor's objectives and the amount of his investable wealth. There is positive relationship between risk and return and as a result it is not appropriate to state that he wants to make a lot of money. While stating his objectives for making a lot of money, he must recognize that there are chances of making huge losses. The investment policy therefore concludes in the identication of potential nancial assets for inclusion in the portfolio. This identication will be based on, among




other things; investment objectives, amount of investment wealth, and tax status of the investor.

  1. Security Analysis: Performing security analysis involves examining several individual securities or group of securities within the broad categories of

nancial assets. One purpose for conducting such examination is to identify those securities that currently appear to be mispriced. There are many approaches to this. However, most of these approaches fall under two categories; technical analysis and fundamental analysis.

The technician or technical analyst involves the study of stock market prices in an attempt to predict future price movement for the common stock of a particular

rm. The fundamentalist or fundamental analyst begins with the assertion that the "true" or "intrinsic" value of any nancial asset equals the present value of all cash ows that the owner of the asset expects to receive. He therefore, forecasts the values and timing of the stocks and brings them to their present values with the appropriate discount factor for the benet of the investor.


  1. Portfolio Construction: Portfolio construction involves identifying those specic assets in which to invest as well as determining, the proportions of investors wealth to put into each one. Here, the issues of Selectivity, Timing and Diversication need to be addressed by the investor. While selectivity is micro forecasting which focuses on forecasting price movements of individual securities, timing is known as macro forecasting of price movement of common stocks in general and diversication involves careful allocation of nancial alternatives in portfolio construct to minimize risk instead of putting all the eggs in one basket.


  1. Portfolio Performance Evaluation: The portfolio performance evaluation involves determining periodically how the portfolio performed in terms of not only the return earned but also the risk experienced by the investor.


  1. Portfolio Revision: The market is dynamic, so the investor should also move in line with the dictates of the market. Therefore, portfolio revision requires the repetition of the three past steps, namely; objectives, security analysis and portfolio construction.

Investment Policy


Institutional Issues: Any permanent set of procedures that guide the management of assets fall under investment policy. The old adage "if you don't know where you are going, any road will do" aptly applies to investing. Whether




an investor is an individual or represents an institution, without a clear sense of why investments are being made, how goals are to be achieved, he or she is likely to pursue inefcient approaches that lead to unsatisfactory results, An investor needs a plan that directs his or her efforts and that plan is called Investment policy (Sharp, Alexander & Bailey, 2004. The rudiments of investment policy (which are not restricted) are discussed below:


Mission Statement: This is a description of long-run nancial goals. For example, an individual might be focusing on savings for a child's college education. A pension fund might be intended to accumulate sufcient assets to fund promised benets.


Risk Tolerance: The amount of risk that an investor is willing to bear in pursuit of the designated investment mission is enormous. An elderly retiree may have a relatively low risk tolerance. Conversely a well-funded pension fund with a young work force may have a relatively high risk tolerance.


Investment objectives: This is specic investment results that will indicate when the investment program has been successful.


Policy Asset Mix: This is investor's long-run allocation to broad asset classes, such as stocks and bonds. This choice is by far the most important decision that the investor makes and should be consistent with the investor's mission, risk tolerance and investment objectives.


Active Management: This is the extent to which the investor attempts to beat the market by living investment management rm that analyses and selects individual securities or group of securities expected to exceed the performance of specied bench mark.


When a rm raises capital, it may choose to sell or oat securities. These new issues of stocks, bonds or other securities typically are marketed to the public by investment bankers in what is called the primary market. Purchase and sale of already issued securities among investors occur in the secondary market.


There are two types of primary market issues among stock. Initial Public Offerings (IPOs) are stocks issued by a formerly privately owned company that is going public that is selling stocks to the public for the rst time. -Seasoned new issues are offered by companies that already have oated equity. In the case of bonds, we distinguish also between two types of primary market issues - a public offering and a private placement. The former refers to an issue of




bonds sold to the general investing public that can be traded on the secondary market. The later refers to an issue that is usually sold to one or a few institutional investors and it is generally held to maturity (Henderson, 1998; Rose & Hudgins, 2008)


Investment Banking: public offering of both stocks and bonds typically are marketed by investment banker who in this role are called underwriters. More than one investment banker usually markets the securities. A lead rm forms an underwriting syndicate of other investment bankers to share responsibility for the stock issue (Rose & Hudgins, 2008).


Investment banks advice the rm regarding the terms on which it should attempt to sell the securities. A preliminary registration statement must be led with the Securities and Exchange Commission (SEC), describing the issue and prospects of the company. When the statement is in nal form and approved by the SEC, it is called the prospectus. At this point, the price at which the security will be offered to the public is announced.


In a typical underwriting agreement, the investment bankers purchase the securities from the issuing company and then resell them to the public. The issuing rm sells the securities to the underwriting syndicate for the public offering price less a spread that serves as compensation to the underwriters. This procedure is called a firm commitment; the underwriters receive the issue and assume, the full risk that the shares cannot be sold to the public at the stipulated offering price. Fig 2, depicts the relationship among the rm issuing the security, the lead underwriter, the underwriting syndicate, and the public.


An alternative to the rm commitment is the best efforts agreement. In this case, the investment banker does not actually purchase the securities but agrees to help the rm sell the issue to the public.


The banker simply acts as an intermediary between the public and the rm and does not bear the risk of not being able to resell purchased securities at the offering price. The best efforts procedure is more common for initial public offerings of common stock, where the appropriate share price is less certain.

Where Securities are Traded

Once securities are issued to the public, investors may trade them among themselves. Purchase and sale of already issued securities occur in the secondary markets, which are National and Local Securities Exchanges and Direct Trading between two parties. There are national security exchanges in major cities of Nigeria - Lagos, Abuja, Port Harcourt, and Aba. There are also




local securities exchanges in state capitals - publicly owned and privately owned. Thousand shares are traded over-the-counter market (OTC) but the OTC market is not formal exchange. There are no membership requirements for trading or listing requirements for securities. Thousands of brokers register with the SEC as dealers in the OTC securities and any security may be traded. Security dealers quote prices at which they are willing to buy or sell securities. A trader executes a trade by contacting the dealer listing an attractive quote.




The crucial challenge facing the investor is in the area of investment decisions. To design the investment portfolio, the investors need to be foresighted, patient, articulative and conscious driven. Determinants of investment behavior are demographic such as socio-economic background, education, marital status, gender, age and social class. The most crucial challenge of investor's behavior is in the area of investment decision. This is in respect of designing the investment portfolio where the investors consider their nancial goals, risk tolerance level, and other constraints. In addition to that, they predict the output mean-variance optimization. This approach is however best suited to institutional investors (Ansari & Moid, 2013).


Translating the hopes and circumstances of diverse households into appropriate investment decisions is a daunting task. The task is equally difcult for institutions, most of which have many stakeholders and are often regulated by various authorities. The investment process is not easily reduced to a simple economic arithmetic.


While many principles of investments are quite general, and apply to virtually all investors, some issues are peculiar to the specic investor. For example, tax bracket, age, risk tolerance, wealth and job prospects and uncertainties make each investor's behavior in reviewing his objectives, constraints, and circumstances. We must quickly add this caption, however, that "there is no unique correct" investment powers. However, some approaches are better than others as it can be helpful to use some research approach.


Central Objective of Investors Behavior


The central objective of each investor centers on the risk-return trade off - the expected rate of return desired of the portfolio versus the risk to which the investor is exposed. Of course, everyone wants high return and low risk but that is not feasible. The argument is that there should be competition but the




competition in the security markets will ensure that the price of high expected return is commensurately high risk. Therefore, risk and return objective cannot be specied independently. More of one brings more of the other.


The desired trade-off between risk and expected will depend on the investor's attitude toward and ability to bear risk, which in turn will depend in part on factors such as age, wealth, and other circumstances. Professional investors who manage the portfolios of others must gauge the appropriate risk prole of their clients.


Individual Investors: The basic factors affecting individual investor usually arise from the investor's stage in the life cycle. The rst signicant investment decision for most individuals concern education, which is an investment in Human capital. The most people have during their early working years is the earning power derived from their skills. For these people, the nancial risk due to illness or injury is far greater than that associated with the rate of return on their portfolios of nancial assets. At this point in the life cycle, the most important

nancial decisions concern insurance against the possibility of disability or death.


As one ages and accumulates savings to provide for consumption during retirement, the composition of death shifts from human capital toward nancial asset and from nancial assets towards real estate. At this stage, portfolio choices become progressively more important. In middle age, most investors will be willing to take on a meaningful amount of portfolio risk in order to increase their expected rates of return. As retirement draws near, however, risk tolerance seems to diminish.


For example, if the company writes a policy that pays a death benet linked to the consumer price index, then the company is subject to ination risk. To overcome this, it would search for assets expected to return more when the rate of ination rises, thus hedging becomes necessary.


Investor Constraints: With identical attitude towards risk, still different houses and institutions choose. different investment portfolios because of their differing circumstances. These circumstances include tax status, requirement for liquidity or a ow of income from the portfolio, or various regulatory restrictions. Together, objectives and constraint determine appropriate investment policy. Five types of constraints are described below:


Liquidity: It refers to the speed and ease with which an asset can be converted to cash;- It is a relationship between the time dimension (how long will it take to




sell) and the price dimension (the discount from fair market price) of an investment asset.


Investment Horizon: it is the planned liquidation date of an investment. An individual investment horizon could be the time to fund a college education or the retirement date for a wage earner. For example, the maturity date for a bond might make it a more attractive investment if it coincides with a date on which cash is needed.


Prudent Man Law: This is the duciary responsibility of a professional investor and it is only professional and institutional investors are constrained by the regulations - the prudent man law. That is, professional investors who manage other people's money have a duciary responsibility to restrict investment to assets that would have been approved by a prudent investor.


Tax Consideration: Tax consequences are central to investment decisions, The performance of any investment strategy should be measured by its rate of return after taxes. For household and institutional investors who face signicant tax rates, tax sheltering and deferral of tax obligations may be pivotal in their investment strategy.


Unique Needs: virtually, every investor faces special circumstances. The job is often the primary investment consideration of an individual, and the unique risk prole that results from employment can play a big role in determining a suitable investment portfolio.


Other unique needs of individuals often center on their stage in the life cycle. Retirement, housing, and children's education constitute three major demands for funds, and investment policy will depend in part on the proximity of these expenditures.




The globalization of the investment business has become a recurring theme in recent years. The Nigerian economy is now much integrated with the rest of the world than it was several decades ago, Similarly, Nigerian nancial markets are now more sensitive to events abroad than they were previously. -The growth in foreign security markets has signicantly increased international opportunities for Nigeria investors.




The Nigerian investor is subject to internal and external economic forces and should therefore, be very mindful in employing his hard savings in investment. All what is required is to-be able to analyze the investments critically in the light of prevailing circumstances by himself or by his investment agent. Further, from the investor's age risk analysis, age is a major factor in individual investment decision. The task of life-cycle nancial planning is a formidable one that inuences investment decision. The paper recommends critical content analysis by the investors in the stock market in accordance with the prevailing economic environment from time to time in order to minimize risks and optimize return.




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Enomati Blessing Department of Accounting Bingham University New Karu Nassarawa State, Nigeria

Gladys A. Nwokoye

Department of Banking and Finance University of Benin, Benin City

Edo State, Nigeria




The purpose of this study was to examine the link that exists between capital market development and industrial growth in Nigeria. To achieve this, a review of extant theoretical and empirical literature was made and the study is anchored on the finance-led growth theory, which was postulated by Joseph Schumpeter in 1912. The ex post facto research design was adopted in this study and data were obtained from the Central Bank of Nigeria (CBN) statistical bulletin for the period of 1999 – 2019. The data generated for this study were analysed with both descriptive and inferential statistics using the arithmetic mean, standard deviation, minimum and maximum values, and the Auto-Regressive Distributed Lag (ARDL) Regression technique. These were computed with the aid of E-Views version 10. The findings of the study revealed that market capitalization, value of transactions, and volume of transactions, which were used as dimensions of capital market development have a positive and non significant relationship with industrial growth in Nigeria. Based on the above, the following recommendations are made: government should properly guide the activities of companies listed in the Stock Exchange Market and pursue policies geared towards rapid development of the capital market and should inject much fund into the capital market and create mechanism to eliminate the bureaucracy in the stock exchange operation.


Keywords: Capital market development, market capitalization, value of transactions, volume of transaction, industrial growth.






United Nations (2015) conrmed that the global development agenda emphasizes the need for industrialization as reected in one of the United Nations Sustainable Development Goals of inclusive and sustainable industrialization. Industrialization has a far-reaching impact on employment generation, poverty reduction, external balance, improved quality of life, high productivity and modernisation (Ebong, Udoh & Obafemi, 2014). It is usually argued by development economists that industrial sector development is pre- requisite capable of transforming an underdeveloped economy into a developed one. This is because industrialization is believed to be a catalyst capable of propelling a structural transformation and diversication of an economy. Over the years, successive governments in Nigeria have instituted various policies and programmes aimed at industrializing the Nigerian economy. However, despite these drives for industrialization, the efforts have seemed not to be yielding fruitful results as the share of industrial sector in total output remained unimpressive (Udoh & Udeaja, 2011). For instance, manufacturing sub-sector which is at the heart of industrial sector has continued to perform poorly over the years. Evidence has shown that manufacturing share of the GDP has increased from 7.17 per cent in 1970 to 10.4% in 1980 before declining steadily to 5.50 per cent in 1990. By 2000, the manufacturing share of total GDP has declined to 3.67 per cent before declining consistently to 1.89 per cent in 2010. As at 2012, the manufacturing share of GDP had fallen drastically to 1.88 per cent (CBN, 2012). The industrial sector accounted for about 25.23% of gross domestic product (GDP) in 1986, uctuated before falling to 16.01% in 2015 (CBN, 2015).

The poor performance of industrial sector as evidenced in the dismal performance of the manufacturing sub-sector has been attributed to so many factors, including capacity under-utilization; poor and decaying infrastructures; low level of technology; low investment; high cost of production; high rates of ination; hostile investment climate; policy non-implementation and reversals; lack of political will to really industrialized the Nigerian economy; corruption, weak institutions; poor domestic linkages; general macroeconomic instability and lack of nance capital to build up production capacity in the various industries, etc. However, industrialization thrives on the foundation of key infrastructures and institutions which are built through capital formation. The capital market serves as an avenue for capital formation and mobilization (Jhungan, 2012). The effort in providing solution to the problem of nance makes the role of capital market more imperative in this regard. Capital market has been known to perform two important functions of mobilizing funds from surplus sources and making same available to decit sources, thereby matching




individual saver's needs with rms requiring funds, and the resulting capital accumulation leads to increased investment and economic growth (Chou & Yuan, 2007).


The capital market is a nancial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. It is believed to be more potent in the mobilization of nancial resources in the sense that it mobilises long term

nancial resources and diversies risks. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators such as the Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties. Transactions on capital markets are generally managed by entities within the nancial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with Treasury directly and use it to buy bonds in the primary market, though sales to individuals form only a tiny fraction of the total volume of bonds sold. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets.


Since the expansion of rms and building of new ones requires huge capital in the form importation of technology, expertise and machineries, it is capital market that can provide the needed capital in the form of issuance of equity capital for such huge and long gestation investment. However, given the undeveloped and shallow nature of capital markets in developing countries, it is debatable whether capital market has a relationship with industrial growth in Nigeria. A plethora of studies exists on the link between capital market and industrial growth. These studies cut across several continents. Some existing literature report a positive relationship between capital market development and growth, while others show a negative relationship. For instance, Masoud and Hardaker (2014) revealed that with more development in the capital market, rms that use equity nance heavily grow faster than rms that do not. But Ziorklui (2001) maintained that introduction of high-yield government short-term treasury bills have increased the demand for treasury bills at the expense of credit to the private sector. As a result, commercial banks tend to switch a greater proportion of their deposit liabilities into treasury bills. Portfolio switching tends to crowd out the private sector and productive activities from the capital market. These ndings are mixed and therefore require further investigation. More so, the present study is an improvement of previous studies as its adopts extended data points up to




2020 so as to achieve an up-to-date analysis of the capital market in relation to industrial sector performance in Nigeria.


In examining the relationship between capital market development and industrial sector development in Nigeria, the study applied the neoclassical growth model, otherwise referred to as the growth accounting framework to explain the source of growth in an economy. The Neo-Classical growth model species output as a linear function of Labour (L), Capital (K) and Technology (A), expressed as: Y=F(K,L,T)......................(i) Where: Y is output, K is physical capital, L is labour force and A is an index of technology or efciency parameter. The application of this model has enabled us to incorporate the capital market variables as market capitalization, number of deals and value of transactions in this study. Specically, the objectives of this study are to:


  1. Investigate the relationship between market capitalization as a dimension of capital market development and industrial growth in Nigeria.


  1. Determine the impact of value of transactions as a dimension of capital market development on industrial growth in Nigeria.


  1. Examine the effect of volume of transactions as a dimension of capital market development on industrial growth in Nigeria.


Considering the above objectives, the following hypotheses stated in the null form are formulated:


Ho1:   There is no signicant relationship between market capitalization as a dimension of capital market development and industrial growth in Nigeria.


Ho2:   Value of transactions as a dimension of capital market development has no signicant effect on industrial growth in Nigeria.


Ho3:   Volume of transaction as a dimension of capital market development has no signicant effect on industrial growth in Nigeria.



Capital Market Development


The capital market is an important segment of the nancial markets that sustain real development in industrial nancing in Nigeria. For any economy that wishes




it industrial sector to function effectively and grow, there must be a mechanism by which the surplus funds of sales are transferred to investors who enquired and spend more money than their immediate incomes. The capital markets provide an effective means of mobilizing short and long term capital resources from lender and allocating them to their areas of lenders need. Industrial nancing involves extensive technology based on development of the productive system of an economy. (Udegbunam, 2002). Industrial development therefore represents a deliberate and sustained application and combination of suitable technology, management technologies and other resource to move an economy from the traditional low level of production to a more unformatted and efcient system of mass production of goods and services.

Market Capitalization


Market capitalization refers to the total market value of a company's outstanding shares of stock (Neal, 2005). Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share. As an example, a company with 10 million shares selling for $100 each would have a market cap of $1 billion. The investment community uses this gure to determine a company's size, as opposed to using sales or total asset gures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer.


Understanding what a company is worth is an important task, and often difcult to quickly and accurately ascertain. Stringham and Curott (2015) state that market capitalization is a quick and easy method for estimating a company's value by extrapolating what the market thinks it is worth for publicly traded companies. In such a case, simply multiply the share price by the number of available shares. Using market capitalization to show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk (Hong, 2004). It is also easy to calculate. A company with 20 million shares selling at $100 a share would have a market cap of $2 billion. A second company with a share price of $1,000 but only 10,000 shares outstanding, on the other hand, would only have a market cap of

$10 million.


Mandelbrot and Hudson (2006) afrm that a company's market cap is rst established via an initial public offering (IPO). Before an IPO, the company that wishes to go public enlists an investment bank to employ valuation techniques to derive a company's value and to determine how many shares will be offered to




the public and at what price. For example, a company whose IPO value is set at

$100 million by its investment bank may decide to issue 10 million shares at $10 per share or they may equivalently want to issue 20 million at $5 a share. In either instance, the initial market cap would be $100 million.


After a company goes public and starts trading on the exchange, its price is

determined by supply and demand for its shares in the market. If there is a high demand for its shares due to favourable factors, the price would increase. If the company's future growth potential doesn't look good, sellers of the stock could drive down its price. The market cap then becomes a real-time estimate of the company's value (Goetzmann & Rouwenhorst, 2005).


The formula for market capitalization is: Market cap = share price x number shares outstanding.


Volume of Transactions


Levine (2002) posits that number of deals or volume refers to the number of shares of a security traded between its daily open and close. It is the number of shares of a security traded during a given period of time. Every transaction that takes place between a buyer and a seller of a security contributes to the total volume count of that security. One transaction occurs whenever a buyer agrees to purchase what a seller is offering for sale at a certain price (Goetzmann & Rouwenhorst, 2005). If only ve transactions occur in a day, the number of deals or volume for that day is set at ve.


Each market exchange tracks its trading volume and provides volume data either for free or for a subscription fee. The volume of trade numbers are reported as often as once an hour throughout the current trading day. These hourly reported trade volumes are estimates. A trade volume reported at the end of the day is also an estimate. Final actual gures are reported the following day. Investors may also follow a security's tick volume, or the number of changes in a contract's price, as a surrogate for trade volume, since prices tend to change more frequently with a higher volume of trade (Goetzmann & Rouwenhorst, 2005).


Mandelbrot and Hudson (2006) state that the number of deals tell investors about the market's activity and liquidity. Higher trade volumes for a specied security mean higher liquidity, better order execution and a more active market for connecting a buyer and seller. When investors feel hesitant about the direction of the stock market, futures trading volume tends to increase, which often causes options and futures on specied securities to trade more actively.




Volume overall tends to be higher near the market's opening and closing times, and on Mondays and Fridays. It tends to be lower at lunchtime and before a holiday (Levine, 2002).

Some investors use technical analysis, a strategy based on stock price, in order to

make decisions about when to buy a stock. Technical analysts are primarily

looking for entry and exit price points; volume levels are important because they provide clues about where the best entry and exit points are located. Number of deals is an important indicator in technical analysis because it is used to measure the relative signicance of any market move. If the market makes moves a large amount during a given period, then the strength of that movement either gains credibility or is viewed with skepticism based on the volume for that period. The higher the volume during the price move, the more signicant the move is considered in this form of analysis. Conversely, if the volume is low then the move is viewed with less signicance (Mandelbrot & Hudson, 2006).


Hong (2004) afrms that the number of deals is one of the most important measures of the strength of a security for traders and technical analysts. From an auction perspective, when buyers and sellers become particularly active at a certain price, it means there is a high volume. Analysts use bar charts to quickly determine the level of volume. Bar charts also make it easier to identify trends in volume. When the bars on a bar chart are higher than average, it's a sign of high volume or strength at a particular market price. By examining bar charts, analysts can use volume as a way to conrm a price movement. If volume increases when the price moves up or down, it is considered a price movement with strength.


If traders want to conrm a reversal on a level of support–or oor–they look for high buying volume. Conversely, if traders are looking to conrm a break in the level of support, they look for low volume from buyers. If traders want to conrm a reversal on a level of resistance–or ceiling– they look for high selling volume. Conversely, if traders are looking to conrm a break in the level of resistance, they look for high volume from buyers.

Value of Transaction


Value of transaction refers to the total amount of shares sold by a particular company in the stock exchange market (Hong, 2004). A stock exchange is an exchange (or bourse) where stockbrokers and traders can buy and sell shares

(equity stock), bonds, and other securities. Many large companies have their

stocks listed on a stock exchange. This makes the stock more liquid and thus




more attractive to many investors (Neal, 2005). The exchange may also act as a guarantor of settlement. These and other stocks may also be traded "over the counter" (OTC), that is, through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors. Stock exchanges may also cover other types of securities, such as xed-interest securities (bonds) or (less frequently) derivatives, which are more likely to be traded OTC.


Levine (2002) afrms that trade in stock markets means the transfer (in exchange for money) of a stock or security from a seller to a buyer. This requires

these two parties to agree on a price. Equities (stocks or shares) confer an

ownership interest in a particular company. Participants in the stock market range from small individual stock investors to larger investors, who can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders may be executed on their behalf by a stock exchange trader.


Some exchanges are physical locations where transactions are carried out on a trading oor, by a method known as open outcry. This method is used in some stock exchanges and commodities exchanges, and involves traders shouting bid and offer prices. The other type of stock exchange has a network of computers where trades are made electronically. A potential buyer bids a specic price for a stock, and a potential seller asks a specic price for the same stock. Buying or

selling at the Market means one will accept any ask price or bid price for the

stock. When the bid and ask prices match, a sale takes place, on a rst-come,

rst-served basis if there are multiple bidders at a given price (Mandelbrot & Hudson, 2006).


According to Hong (2004), the purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace. The exchanges provide real-time trading information on the listed securities, facilitating price discovery. In a nutshell, the total value of a company's shares sold in the stock exchange market is the value of transaction.

Value of transactions = share price x number of shares sold.

Industrial Growth


Industrial sector involves extensive technology based development of the productive system of an economy. Industrial sector growth according to Stringham (2015) is a deliberate and sustained application and combination of




suitable technology management techniques and other resources to move an economy from the traditional low level of production to move automated and efcient system of mass production of goods and services. According to Ologunde, Elumilade and Saolu (2006), industrial development has become the main focus of economic development because of its potential benets. Industrial sector tends to proper economic problems constraining the growth of the sector and the strategies and policy reforms needed to accelerate the pace of industrial sector. As noted by Victor, Kenechukwu and Eze (2013), it is usually argued by development economists that industrial sector development is prerequisite capable of transforming an underdeveloped economy into a developed one. This is because industrialization is believed to be a catalyst capable of propelling a structural transformation and diversication of an economy.

Empirical Review


Owui (2019) investigated the impact of capital market indicators (industrial loan, equity, market capitalization) on industrial sector nancing in Nigeria. The data were obtained mainly from Central Bank statistical Bulletin. and Nigerian stock Exchange fact book The work adopted ordinary least squares of multiple regression statistical technique Based on the analysis, the following ndings were made; .there is a signicant impact between industrial loan and the growth of industrial sector nancing in Nigeria, there is a signicant impact between market capitalization and the growth of industrial sector nancing in Nigeria, there is no signicant impact between equity and the growth of industrial sector

nancing in Nigeria.


Offum and Ihuoma (2018) established the causal relationship between the capital market and the performance of the industrial sector in Nigeria from 1985 to 2015. The paper derived its theoretical basis from the nance-led growth hypothesis and the endogenous growth theory. For empirical analysis, the Phillips-Perron unit root was adopted to determine the time series characteristics of the variables, while causality was examined by employing the Granger causality test approach. Findings revealed that there is a unidirectional causality running from market capitalization ratio and total value of shares traded ratio to industrial performance.


Okoye, Nwisienyi and Onyekachi (2016) examined whether the growth of the Nigerian capital market has impacted in any signicant way to the growth and development of the industrial sector and hence the economic development of the country in general. To achieve this objective; the study examines a number of relationships between the capital market and the industrial sector, such as the



proportion of the manufacturing sector in the total market capitalization, or the relationship between the GDP and market capitalization, manufacturing index, New issues, market access to credit, trading values etc to determine the types of inuence exerted on the industrial sector by the capital market. The signicance of this study is that it well help the policy makers to really know the relationship between capital market and industrial sector. The review of available literature indicates that the capital market is a common feature in any modern economy and is reported to promote the growth and development of the real sector in our case there are indication of positive links between the stock market and industrial sector development but the impact has been severely limited by adverse economic environment such as poor economic infrastructures, bureaucratic bottlenecks corruption and poor corporate governance, regulatory and supervisory frameworks.


Ibi, Joshua, Eja, and Olatunbosun (2015) examined the relationship between capital market and industrial sector development in Nigeria, utilizing annual time series data covering the period from 1980 to 2012. The study adopted both descriptive and analytical methodology in its investigation. The descriptive methods were used to analyze trend performances of the variables captured in the study. The analytical methodology employed modern econometric techniques such as the unit root test, co-integration test, granger causality test and the error correction mechanism (ECM) in the estimation of the relevant relationships. The results of the co-integration test showed that there existed a long run equilibrium relationship among the variables. The results of the granger causality test as presented showed that there is a bi-directional relationship between industrial output and market capitalization and between industrial output and number of deals, but a unidirectional causality relationship running from industrial sector development to value of transaction. The results of the short run dynamics revealed that capital market has positive and signicant impact on industrial output in Nigeria via market capitalization and number of deals. On the other hand, value of transaction has negative and signicant impact on industrial output in Nigeria during the evaluation period. The results also showed that real gross domestic product has a positive and signicant impact on industrial output in Nigeria, while exchange rate and gross domestic investment have negative and signicant relationship with industrial output in Nigeria.


Masoud and Hardaker (2014) investigated the effect of stock market development, banks' development and rms' growth using Saudi Arabian




industrial rm-level data set for the period 1995-2013 and applying GMM, MG techniques model developed for dynamic panels. The econometric results revealed that with more development in the stock market, rms that use equity

nance heavily grow faster than rms that do not. There also exist some studies on capital market-growth nexus in some African countries.


In Nigeria, Osinubi (2001), ventured into knowing whether “capital market promotes economic growth”. The study employed the least square regression using data from 1980 -2000. The result established positive link between economic growth and capital market development and suggest the pursuit of policies geared towards rapid development of the capital market. In a study on capital market development and growth in sub-Saharan Africa, using Tanzania as a case study, Ziorklui (2001) maintained that introduction of high-yield government short-term treasury bills have increased the demand for treasury bills at the expense of credit to the private sector. As a result, commercial banks tend to switch a greater proportion of their deposit liabilities into treasury bills. Portfolio switching tends to crowd out the private sector and productive activities from the capital market.

Theoretical Framework


Although theories linking capital market development to industrial sector growth are scarce, however, the relationship between capital market development and industrial sector growth can be established employing the nance-led growth theory. This study is therefore anchored on the nance-led growth theory, which was postulated by Joseph Schumpeter in 1912. The nance-led growth theory is based on an observation that nancial market signicantly boosts industrial and real economic growth and development. The theory postulates that the existence of nancial sector, as well as a well-functioning nancial intermediation mechanism provides avenues for channelling scarce and limited resources from the surplus spending units to the decit units, thus boosting investment and, thereby, stimulating growth. Following from Schumpeter (1912), Goldsmith (1969), McKinnon (1973) and Shaw (1973) laid the foundation for nance-led growth theory. They all argue that nancial development promotes growth through savings and investments. This implies that growth in capital market can lead to industrial growth hence this theory is very suitable for this study.






In this study, the dependent variable (Industrial Growth) was measured as the output of the industrial sector while the dimensions used for the independent variable (Capital Market Development) are market capitalization, volume of transactions and value of transactions. The data for these variables were obtained from the Central Bank of Nigeria (CBN) statistical bulletin from the period of 1999 – 2019.


Since the study involves time series data, the ex post facto research design was adopted. In view of the fact that most time series data are not stationary, using non-stationary data in the model might lead to spurious regression which cannot be used for precise prediction (Gujarati, 2003). Thus, the prerequisite for co- integration test is the stationarity of each individual time series over the same time period. Hence, before turning to the analysis of the long-run relationships between the variables, the study examined the unit root properties of each time series data, as non-stationary behaviour is a prerequisite for including them in the co- integration analysis. If the time series are stationary in their levels, then they are said to be integrated of order zero, i.e., I (0); if the time series are stationary in their rst differences, then they are said to be integrated of order one, i.e., I (1); if stationary in their second differences, then they are integrated of order two, i.e., I (2). The order of integration of the variables was investigated using the Augmented Dickey-Fuller (ADF) tests.


The data generated for this study were analysed with both descriptive and inferential statistics using the arithmetic mean, standard deviation, minimum and maximum values, and the Auto-Regressive Distributed Lag (ARDL) Regression technique. These were computed with the aid of E-Views version 10.

The model specication for this study is given in functional form as:

INDOUT = f (MKTCAP, TVTR, DEALS)------------------------------------------- (i)

In econometric form, the model becomes:




m o+β1MKTCAPt +β2TVTRt + β3DEALSt + - - m i ------------------ (ii)






Market capitalization



Total value of transactions




DEALS        =     Total value of transactions

m             =      Regression Constant

b             =      Regression Coefcient

m               =      Stochastic term


In this study, our a priori expectation is that increase in capital market development will bring about increase in industrial output in Nigeria. In summary, it is expected that β1, β2, β3 > 0.


To test the validity of our data and the model specied for this study, a robustness check was conducted as follows:

Unit Root Test


In determining the characteristics of time series variables, a preliminary analysis is to test whether the series are stationary or not. This preliminary analysis is conducted to test for the presence of a unit root in the series. The Augmented Dickey Fuller (ADF) unit root test was applied.


The results of the Augmented Dickey Fuller (ADF) unit root test at 5 % critical levels in Table 1 indicates that volume of transaction was stationary at levels while industrial output, market capitalization and total value of transaction were stationary only after rst difference. Hence, the variables have a mixed order of integration of zero and one. Since the variables have different orders of integration, this permits us to conduct the Auto-regressive Distributed Lag (ARDL) model to know if the variables have a long run relationship.


Since the Trace-statistic is greater than the critical value at 5% it means that there is cointegration among the variables. This means that there is a long run relationship among the variables. Since there is cointegration among the variables, we will then estimate both the short run and long run analysis for this study.


The results showed that the ECM is negative and statistically signicant, showing that an established long-run relationship can be attained. The speed of Adjustment of -0.188542 implies that 18.85 percent of the deviation of INDOUT from its long run equilibrium can be reconciled annually.


The results showed that there is no serial correlation in the model since the probability statistic of the Chi-square of 0.0542is greater than 5%.




Heteroskedasticity Test


The result showed that the null hypothesis is rejected and concludes that the residuals are not heteroskedasticity since the probability statistic of the Chi- square of 0.0728 is greater than 5%.

Stability Test


The results shows that the model is stable since the expected values of the sequence are within the upper critical line and the lower critical line (within +4 and -4).

Data Presentation and Analysis


This section of the study covers data presentation, analysis and interpretations of the results based on the data collected. The rst section covers the presentation of data on the relationship between market capitalization, total value of transaction and volume of transaction on industrial output in Nigeria. Table 7 shows the data that are collected from the CBN Statistical Bulletin, National Bureau of Statistics and other relevant sources.


The descriptive statistics shows the description of the data in the study. The descriptive statistics describes the mean, median, mode, standard deviation and normality test. Table 8 shows the descriptive statistics of the variables for the time period.


The descriptive statistics of the dependent and independent variables in the model are from 1999 to 2019, the average value of INDOUT, MRTCAP, TVTR and DEALS are ₦10085479million, ₦10311298million, ₦697267.9million and

₦1271515million respectively. These gures may be compared with the maximum  values  of  INDOUT,  MRTCAP,  TVTR  and  DEALS  which  are

₦16263084million, ₦25890220million, ₦2350876million and ₦3535631 million respectively. It can be concluded that the means of all the variables are signicantly lower than its maximum values. Skewness is a measure of asymmetry of the distribution of series around its mean. The skewness of Industrial Output (INDOUT), Market Capitalization (MKTCAP), Total Value of Transactions (TVTR) and Volume of Transactions (DEALS) is above zero. It indicates a positive skewness. Thus, there is a right long-tailed distribution for the observation of each of the variables. The Kurtosis of a normal distribution is Table 8. Table 8 further shows that INDOUT, MKTCAP, TVTR and DEALS each have a Kurtosis of less than three, indicating that each of the distributions is




platykurtic. The JaqueBera statistics of all the variables show that all the series are not normally distributed since the JarqueBera probability values of INDOUT, MRTCAP, TVTR and DEALS which are 2.402499, 1.502154, 3.016014 and

3.259765are all greater than 0.05.

Test of Hypotheses


In order to test the three hypotheses stated in this study, the variables were tested using Autoregressive Distributed Lag (ARDL) model with the aid of Eviews

10.0 to determine the extent to which the independent variables (MKTCAP, TVTR and DEALS) inuence the dependent variable (INDOUT). The Autoregressive Distributed Lag (ARDL) model was used to examine both the short run and long run relationship between capital market development and industrial output. The data in Table 1 on market capitalization, total value of transactions and volume of transactions are regressed against industrial output.


Ho1:   There is no signicant relationship between market capitalization as a dimension of capital market development and industrial growth in Nigeria.


The short run and long run regression of the Autoregressive Distributed Lag (ARDL) result for the study are shown in Tables 10 and 11 respectively. The results in Table 10 show that Market Capitalization (MKTCAP) has a positive coefcient of 0.105668 which is insignicant with a p-value of 0.2019. The interpretation of the positive coefcients of MKTCAP indicates that an increase in MKTCAP by one unit will lead to 0.105668 increase in INDOUT. The value of the Adjusted R-Squared of 0.950228 implies that MKTCAP, TVTR, and DEALS explained about 95.02% systematic variations in the dependent variable (INDOUT) over the observed period while the remaining 4.98% variations are explained by other determining variables not captured in the model.


The F-statistic shows a signicant probability value of 0.000000 which is less than 5%. This means that the impact of the independent variables (MKTCAP, TVTR and DEALS) on the dependent variable (INDOUT) did not happen by chance.


The Durbin-Watson statistic of 2.342098 indicates absence of autocorrelation. The probability value of Market Capitalization (MKTCAP) as shown in Table 10 (0.3854) indicates that MKTCAP has a positive and insignicant effect on INDOUT of Nigeria in the short run while in the long run in Table 11 still shows that MKTCAP has a negative and insignicant effect on INDOUT of Nigeria as the




P-value of 0.2019 is greater than the 5% level of signicance. This means that the null hypothesis is accepted.


Ho2: Value of transactions as a dimension of capital market development has no signicant effect on industrial growth in Nigeria.


The result in Table 10 shows that Total Value of Transactions (TVTR) has a negative coefcient of -1.741023 which is insignicant with a p-value of 0.3889. The interpretation of the negative coefcients of TVTR indicates that an increase in TVTR by one unit will lead to -1.741023decrease in INDOUT. The probability value of Total Value of Transactions (TVTR) as shown in Table 10 (0.3889) indicates that TVTR has a negative and insignicant effect on INDOUT of Nigeria in the short run while in the long run Table 11 shows that TVTR has a negative and insignicant impact on INDOUT of Nigeria as the P-value of 0.6134 is greater than the 5% level of signicance. This means that the null hypothesis is accepted.


Ho3: Volume of transaction as a dimension of capital market development has no signicant effect on industrial growth in Nigeria.


The result in Table 10 shows that volume of transactions (DEALS) has a positive coefcient of 1.351411 which is signicant with a p-value of 0.0178. However, the results of the short run in Table 10 shows that current volume of transactions (DEALS) has a positive coefcient of 1.351411 which is signicant with a p-value of 0.0178. The interpretation of the positive coefcients of DEALS indicates that an increase in DEALS by one unit will lead to 1.351411 increase in INDOUT. The probability volume of transactions as shown in Table 10 (0.0178) indicates that DEALS has a positive and signicant effect on INDOUT of Nigeria in the short run while in the long run Table 10 still shows that DEALS has a positive and insignicant impact on INDOUT of Nigeria as the P-value of 0.4593 is greater than the 0.05 level of signicance. This means that the null hypothesis is accepted.



Given the empirical result of the model, this study found that market capitalization, value of transactions, and volume of transactions have a positive and non signicant relationship with industrial growth in Nigeria. Prior studies related to this study include Owui (2019), Offum and Ihuoma (2018), Okoye, Nwisienyi and Onyekachi (2016), Ibi, Joshua, Eja, and Olatunbosun (2015), Masoud and Hardaker (2014), and Osinubi (2001).




Owui (2019) found that there is a signicant relationship between industrial loan, market capitalization and equity and the growth of industrial sector nancing in Nigeria. Offum and Ihuoma (2018) ndings revealed that there is a unidirectional causality running from market capitalization ratio and total value of shares traded ratio to industrial performance. Okoye, Nwisienyi and Onyekachi (2016) reported that a positive link exist between the stock market and industrial sector development but the impact has been severely limited by adverse economic environment such as poor economic infrastructures, bureaucratic bottlenecks corruption and poor corporate governance, regulatory and supervisory frameworks. Ibi, Joshua, Eja, and Olatunbosun (2015) shows that short run dynamics revealed that capital market has positive and signicant impact on industrial output in Nigeria via market capitalization and number of deals. On the other hand, value of transaction has negative and signicant impact on industrial output in Nigeria during the evaluation period. Masoud and Hardaker (2014) revealed that with more development in the stock market, rms that use equity

nance heavily grow faster than rms that do not. There also exist some studies on capital market-growth nexus in some African countries. Osinubi (2001) established positive link between economic growth and capital market development.




The capital market deals in long-term funds. It supplies industry with capital and

nances medium term and long-term borrowings of the central, state and local governments. The capital market deals in ordinary stocks, shares and debentures of corporations and bonds and securities of government. The capital market is a market for long-term funds, in other words, a market for long-term commitments on the part of the lenders and long term needs for funds on the part of the borrower. It is a market for transacting in long-term debt and equity obligations. It is also a market for the mobilization and utilization of long-term funds for development. Capital market is a market where long term nancing is evolved. In other words, capital market is a source of long-term funds. The capital market deals on long-term funds. The market provides a mechanism for lenders to provide long-term funds in exchange for nancial assets issued by borrowers or traded by holders of outstanding negotiable debt instruments. In Nigeria, the instruments of the capital market are mainly company shares, debenture stocks, revenue bonds or development/loan/stock/bonds and unit trust.




In this study, it was revealed that capital market development has no signicant relationship with industrial growth in Nigeria. This is due to the fact that the Nigerian Stock Exchange Market is yet to be well developed. Based on the above, the following recommendations are made:


  1. The government should properly guide the activities of companies listed in the Stock Exchange Market and pursue policies geared towards rapid development of the capital market.


  1. The government should inject much fund into the capital market and create mechanism to eliminate the bureaucracy in the stock exchange operation.






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Chiana, Cyril Anamelechi (Ph.D)1 and Professor Gazie S. Okpara 2

Department of Marketing, Abia State University, Uturu.




The study is geared to bridge the gap between positioning thrusts of banks (as revealed in their slogans and core values) in Umuahia and the perception by their customers. The major problem of the research work is positioning- perception gap in the banking industry. The study reviewed literature that deals with positioning, perception and service quality using current positioning statements of banks. Data were obtained from both primary and secondary sources. The sample size of 400 banks customers was studied. The survey method was applied. Questionnaire was the main instrument used in data collection, where responses from 293 customers were studied and analysed. The simple descriptive and inferential statistics were applied, where a bench mark of 60% was adopted for acceptance in the descriptive analysis. A multiple regression model was applied, carried out in SPSS Version 21 at a 5% level of significance. The study discovered that most customers are not aware of the banks' positioning statements as contained in their slogans and ads. It was also discovered that most banks do not adhere to their positioning statements. Given this lack, it behoves banks to strive to present itself favourably in the minds of customers by seriously applying their positioning statements. It was discovered that sound technology, strategic location and security of funds are the major drivers for customers' patronage. A sound application of marketing and its tools (marketing communication, marketing research, personal selling and a thorough application of consumer behaviour) are recommended.

Keywords: Positioning, Customer Perception, Banking.



Marketing is a mere civilized form of warfare in which most battles are won with words, ideas and disciplined thinking (Oko, 2000). Nigerian banks in the face of increasing competition are currently facing enormous challenges, which have made survival increasingly difcult. Formerly, the four big banks of First Bank, Union Bank, AfriBank and United Bank for Africa (UBA) were in erce marketing warfare. The competition in the banking industry became more complex as the new generation banks entered, contending for a strong foothold in the industry.




To survive and be successful providers of nancial services, it becomes pertinent that the present banking practice should go with the new management order which focuses on customer satisfaction. This enhances competitive advantage accruing from customer's loyalty. This why Kotler (2001) concludes that there is no product without solution (satisfaction) being offered to the customers. Customer satisfaction represents a modern approach for quality in business life and serves the development of a truly customer-oriented culture and management (Emrah, 2010). Given the increasing competition in the Nigerian banking industry, operators have continued to search for strategies that can attract, satisfy and retain customers for more protable operations.


In recent times, customers are becoming so enlightened and sophisticated in choices that ignoring them will be at the banks' peril. Banks, therefore, need to articulate their superior values and place these favourably in the minds of customers. This is positioning. However, customers interpret things (stimuli) in different ways. A bank that is yearning for survival and success is under obligation to place itself the way it wants its customers to see them as offering the appropriate values to them. Differentiation of market offering from competitors' is vital. This scenario behooves banks to strive for unique value delivery backed by the matching positioning strategy. They range from new services and guarantees, special rewards for loyal users, new convenience to enjoyments. Banks, therefore, constantly need to think new value-adding features and benets to win the attention and interest of choice-rich, price-prone consumers (Kotler, 2001:286)


There has been tremendous growth in the Nigerian banking industry. As a result, banks try to carve out a niche for themselves by articulating their marketing mix options that satisfy customers more than those of competitors, and transmitting them to the target market as their positioning statements.


The issue of positioning in the banks has been an age-long concept. Banks always strive to place themselves favourably in the minds of customers by bringing out their core values and competencies. Often times, a positioning is not in tandem with what they (customers) see or believe in practice. In many instances, customers perceive the banks differently from what they are positioned. This may result in customers' frustration and turnover with the concomitant effect on the banks' performance.


This positioning-perception challenge is the motivation for this research, given the fact that customers, at times seem to perceive banks differently from what the banks are positioned to be. Although studies have been conducted in this




area, very few focused on the Nigerian banking sector, an yet not much studies have been seen on bank customers in Abia State.


The positioning-perception challenge is the basis of the problem of this research work.


The broad thrust of this research is to establish an interface between bank positioning and customers perception. Specically, we aim at:


  1. Measuring the relationship between positioning using service quality and customers' perception of banks.


  1. Ascertain the relationship between positioning using benets and customer perception of banks.


  1. Know whether positioning by social responsibility attracts positive perception by customers.


  1. Determine the link between positioning by technology base and customer perception of banks.


(iv)   Disclose the link between positioning by customer service and customer perception of banks.


In line with the stated objectives, this study will test the following null hypotheses:


H01:   Positioning by service quality is not a signicant predictor of customers' perception of banks.


H02:  There is no signicant relationship between positioning using benets and customers' perception of banks.


H03:   Signicant relationship does not exist between positioning by corporate social responsibility and customers' perception of banks.


H04:  There is no signicant relationship between positioning using technology base and customers' perception of banks


H05:   There is no signicant relationship between positioning using customer service and customers' perception of banks.







The history of banking begins with the rst prototype bank of merchants of the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began around 200 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples made Loans later added two innovations: they accepted deposits and changed money.


Banking, in the modern sense of the word can be traced to medieval and early Renaissance Italy, to rich cities in the north such as Florence, Venice and Genoa. The oldest bank still in existence is Monte dei Paschi di Sienna, headquartered in Sienna, Italy which began operation in 1472. This banking operation spread from Northern Italy through Europe, Amsterdam, Welser, Fugger and Beremberg.


Banking operations in Nigeria started with the establishment of the African Banking Corporations (ABC) in 1892. Elder Dempster and company limited invited the ABC of South Africa to establish a branch of its bank in Lagos in 1892 to serve companies and as such was closely monitored by Dempster and company limited.


This ABC in Lagos experienced some difculties initially because of the recession that had hit Lagos and such was not able to mobilize enough funds to support the expatriate rms and so ran into nancial problem. In March 1894, the company registered as limited liability in London under the name, Bank of British West Africa (BBWA) which registered an initial authorized capital of 10,000 pounds.


The BBWA opened its rst Lagos branch the same year-1894. This Bank-BBWA- has the unique feature of being the rst successful expatriate bank in Nigeria and is today known as the First Bank of Nigeria Plc.


In 1899, another bank known as the Anglo-African Bank subsequently opened up other branches in Burutu, Jabba and Lokoja. However, due to the erce competition and the monopoly for the importation of silver currency from the Royal Mint and its distribution enjoyed by BBWA, the bank was sold out to BBWA in 1912 which gave it full monopoly in the Nigeria Banking.




In 1917, Barclays Bank opened its rst branch in Lagos which is later known as Union Bank of Nigeria Plc.


In 1949, another expatriate bank known as the British and French Bank now called United Bank of Africa Plc was established.


This era of development of banks was not without collapse of banks. Some of the collapse could be as a result of the neglect of marketing and its tools. Customers patronize banks if they have positives about the particular banks; especially now that the competition in the banking industry is intense and stiing. Thus, the need positively market and position the banks and its products to the customers- present and potential.



The broad objective of every business is to grow while satisfying customer needs and wants. This situation is more noticed in banking where the survival of the innovator is the order of the day. Banks presents themselves favourably in the minds of the customers for patronage and survival.


In its simplest term, perception is the process of being aware directly through any of the senses. It is how the customer becomes aware and interprets stimuli within and around the environment. Elaborating further, perception is complex process by which people (consumers) select, organize and interpret sensory stimulations into a meaningful and coherent picture of the world.


It talks about how an individual react to a given stimulus (product, package design, advert, etc) and this depends on his perception to it (Okpara, 2012:70). Three key words are noteworthy. (1) Select (2) Organize (3) Interpret.


In adverts, a consumer listens, selects, organizes and interprets it the way it appeals to him. All these affect behaviors. Perception relates to consumer needs, interest and motives (NIM). Stimuli that do not conrm with NIM are ignored.


Okpara (2012) wrote that perception emerges as a result of three processes: Selective exposure (or attention), selective distortion and selective retention.


In exposure, the consumer screens and lters numerous stimuli for those relevant to him.



In distortion, the consumer twists information into personal meanings, interprets it the way it suits his preconceptions while in retention, the consumer retains in the brain, only those stimulus that reinforce his existing preconception.


From the foregoing of what perception is, it becomes pertinent that proper positioning in banks is necessary. Positioning, according to Anyanwu (1998), is the way a product/company is dened by consumers on important attributes – the place the product occupies in consumers' minds relative to competing products/brands.


The product position results from the conguration of consumer perceptions, impressions and feelings. Marketing practitioners do not leave the consumers alone to make up their minds on how to position their products. They help them by suggesting cues that will enable them form their own opinions.

Bank can adopt several combinations of the following positioning strategies.

  • Positioning based on specic product attributes
  • Positioning based on usage occasions
  • Positioning against or away from the competitors
  • Positioning based on product class.


There is no gain saying the truth. There is a gap between what the banks present themselves to be and what the customers see them to be in terms of rendering services.


For instance, a bank that presents itself as a place where peace is experienced and the staff turn out attack customers on small complains creates a positioning- perception gap.



Effective brand positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and veriable values. Generally, the positioning process involves:

  1. Identifying the business direct competition
  2. Understanding how each competitor is positioning their business today. Eg claiming to be the fastest, cheapest, largest, etc.
  3. Documenting the provider's own positioning as it exists today.
  4. Comparing the company's positioning to its competitors to identify viable areas for differentiation.




  1. Developing a distinctive, differentiating and value – based positioning concept.
  2. Creating a positioning statement with key messages and customer value prepositions.



More generally, Jack Trout and Al Ries developed three (3) types of positioning concept.

1.Functional Positions

a)     Solve problem

  1. Provide benets to consumers
  2. Get favourable perceptions

2.Symbolic Positions

  1. Self image enhancement
  2. Ego identication
  3. Belongingness and Social Meaningfulness
  4. Affective fulllment

3.Experiential Positions

  1. Provide Sensory Stimulations
  2. Provide cognitive stimulation.



Although there are different denitions of positioning, probably, the most common is identifying and attempting to occupy a market niche for a brand, product or services utilizing traditional marketing placement strategies (price, promotion, distribution, packaging and distribution). It could also be expressed as the way by which the marketers attempt to create a distinct impression in the customers' mind.


Positioning is a concept in marketing which was rst introduced by Jack Trout in June 1969 in “Industrial Marketing” Magazine and then popularized by Al Ries and Jack Trout in their best seller book, “Positioning: The Battle for Your Mind” in 1981. This forms the theoretical framework for this research work.




Jack Trout and Al Ries developed a positioning-perception model in 1981. This differs slightly from the context in which the term was rst published in 1969 by Jack Trout in the paper “Positioning is a game people play in today's me-too market place, in which the case is made that the typical consumer is overwhelmed with unwanted advertising and has a natural tenderness to discard information that to do not immediately nd a comfortable slot in the consumers mind. It was then expended in “Positioning: The Battle for Your Mind” in which they dene positioning as an organized system for nding a window in the mind.” It is based on the concept that communication can only take place at the right time and under the right circumstances.


What most agree on is that positioning is something (perception) that happens in the minds of the target market. It is the aggregate perception the market has of a particular company, product or service in relation to their perception of the competitors in the same category. A company can positively inuence the perceptions through enlightened strategic action. A company, product or brand must have position concept in order to survive in the competitive marketplace. Most authors confuse a core idea concept with positioning concept. This model clearly states thus: A core idea simply described the product or service while positioning concept attempt to sell the benets of the product or service to the potential buyer which focuses on the rational and emotional benets a buyer will receive from the product. In conclusion, a successful positioning concept must be developed and qualied before positioning statement with the target audience for feedback and optimization and then follows the articulation of the target audience qualied ideas for creative brief.


In some cases, gaps exist in the positioning statement of rms and customers perception. The rm thinks it has done it well while the customers view this differently. A thorough application of the model by Parasuraman, Zeithml and Berry will be very effective in understanding the gaps in service marketing rms, such as banks, for effective positioning.



This model was developed by the three authors above. The model looks at the quality of service offered to the consumers. It is also called the SERVQUAL or GAPS MODEL.

The position of the model:

A rm's service may win by delivering consistently higher quality service as contained in the positioning statement than competitors and exceeding




customers' expectations. The expectations, which may be formed by their past expectations, word of mouth and advertising compare the perceived service with the expected service. If the former falls below the latter, customer lose interest in the provider and vice versa.


It is on this basis that Parasuraman, Zeithml and Berry formulated a service quality model that highlights the main requirements for delivering high service quality. The model shown below identies ve gaps that cause unsuccessful service delivery. This forms the basis of the model- thus, its name, Gaps model of service marketing.


  1. (Gap 1) Gap between consumer expectation and management perception. Management does not always perceive correctly what consumers want. For instance, bank administration may think that customers need better banking environment but the customers may be more concerned with staff responsiveness.


  1. (Gap 2) Gap between management perception and service quality specication. Management might correctly perceive customers' wants but not set a specied performance standard.


  1. (Gap 3) Gaps between service-quality specication and service delivery. Personnel being poorly trained or unwilling to meet the standard.


  1. (Gap 4) Gap between service delivery and external communication. Consumers' expectations are affected by statements made by company representatives and ads. For instance, if a bank's brochure shows a zero waiting time, but the customer arrives to nd long customers queue, external communications have distorted the customer's expectations.


  1. (Gap 5) Gap between perceived service and expected service. This gap occurs when the consumer misperceives the service quality. The staff may keep visiting the queuing customers to show care but the customers interpret this as an indication that something is wrong.


The model deals with ve determinants of service quality presented in order of importance which Kotler (2000) refer to as the RATER model of service marketing.

R –  Reliability: the ability to perform the promised service dependably and accurately




A -    Assurance: knowledge and courtesy of employees; their ability to convey trust and condence.

T -    Tangibles: the appearance of physical facilities, equipment, personnel etc E -        Empathy: the provision of caring, individualized attention to consumers R -        Responsiveness: the willingness to help customer and to provide prompt


The model addressing the above shows great strength in service delivery.

The model equally shows that excellently managed service companies (banks) share the following common practices; a strategic concept, a history of top management, commitment to quality, high standards, system of top management commitment to quality, system for monitoring service performance and customer complaints and emphasis on employee satisfaction (the hallmark of marketing), since the emphasis is on identifying and closing gaps between the

rm and the consumers of the services.

The model encourages research as a key option to narrow these gaps to uncover the realities in the market place.


From these, a conceptual framework is hereby crafted, in line with the objectives and stated hypotheses:





Service Quality





Corporate Social





Technology Base

Customer Service

Level of






Source: Researcher's proposed positioning-perception model 2019





This study x-rayed some works and its ndings by some authors in the area of positioning, product quality, brand image and customer perception and loyalty. These formed the basis for the empirical framework of the study.

Dibb and Simkin (2013), conducted a study to nd out the impact of perception on Indian commercial banks using the SERVQUAL model. Their research draws on evidence from services marketing theory to consider the area of marketing is less developed than the marketing of manufactured goods. The research studied 400 customers of banks using the survey method. It was observed that over 60% of the bank customers are not aware of the positioning statements. The study recommended an intensied marketing communications as a tool for enhancing positive perception towards banks' products.

Balakrishnan (2009) in their study of positioning and perception in tourism and travel presented a branding framework for designing a successful destination strategy. It is an exploratory study that seeks to determine key factors that affect the strategic branding, positioning and perception in destinations. Based on this study, and its extrapolation, it was discovered that customers view travel and tourism services differently. Te study recommended practical framework for governing bodies to consider when investing time, money and effort in creating destination brand.

Ghose and Lowengert (2009) in their research evaluates a scenario in a foreign country where international, national and private brands are important players in the market to understand consumer needs. It used data from Isreali market and studies consumer perception of brands for consumers of non-durable product category. In addition to testing some research propositions, empirical analyses are performed at the aggregate and disaggregate levels of the market. Being that the customers are culturally diverse in the market, segmentation was recommended for greater insights into brands positioning. The results lead to interesting managerial implications for Isreali market.

Mohammed, Mahmudul and Hussain (2012) had their study to investigate the impact of brand image towards young consumers of beverage products. A survey was conducted among 400 young consumers from the Dhaka capital city of Bangladesh. Data analyses were conducted by exploratory and conrmatory factor analysis and structural equation. The results revealed that most young consumers are highly concerned about brand image (positioning) regarding selection of any beverage drinks. They recommended improvement in the area of brand image through research on beverage consumers prefer and expectations from their chosen brands.




Xiaoling Hao and Shang (2015) tried to examine consumers' perceptions of brands functions in an emerging market: China and to investigate the impact of brand functions on brand loyalty. A two-phase study was conducted consisting of 15 personal indepth interview and questionnaire given to 256 respondents at the second stage. The study nds general support that consumers perceive both utilitarian and expressive functions to the brand. Specically, the results of the research show that for Chinese consumers, brands accomplish various functions such as “recall of past experience'', “quality sign” and “identity” which contribute to brand loyalty. The authors recommended improved brand positioning.

Fuchs and Adamantios (2010) in their study tried to explore empirically the overall relative effectiveness of positioning strategies from customer perspective in automobile industry. Two studies (within and between subject designs) were conducted to evaluate positioning success of brands in terms of brands functionality, differentiation and credibility. The result show that the type of positioning strategy used affects the success of a brand. The ndings also demonstrate that no single strategy outperforms all the others on all dimensions. It was recommended that automobile dealers should shed light on the variables studied.

Srivastava and Sharma (2016) in their work, empirically measures the Airtel brand personality in India using Aaker's brand personality measurement framework (1997). The study involved a questionnaire survey measuring ve brand personality dimensions: sincerity, excitement, competence, sophistication and ruggedness. Data were collected from customers of Airtel services. It was observed that the personality dimension was very important in Indian context and it was recommended that the rm should boost, in addition to personality, excitement and competence dimension.

Okpara, Agu and Benson-Eluwa, V. (2015) conducted a study which aimed at assessing the link between positioning and customer patronage using the GSM

rms (MTL, GLO, Airtel and Etisalat) in two cities in the South East of Nigeria: Enugu and Owerri, using primary and secondary data in data collection. Questionnaire was the instrument of data collection from 384 respondents.. Data was tested using one sample t-test Findings revealed that there was signicant difference between positioning thrust of GSM rms in Nigeria and the actual perception by the market. The study recommended effective marketing research before adopting any positioning strategy , service quality improvement and enhanced network coverage.

Nwachukwu, Benson-Eluwa, Ikechukwu and Obi (2019) conducting this research, tried to nd out how product positioning in the aspect of quality and other variables can bring about customer loyalty of Dettol. 200 respondents were studied. Data were analysed using t-test on SPSS. It was discovered that consumers' perception of brands , brand reliability and innovativeness affect




loyalty. It was recommended that reliability, brand performance, quality should be emphasized in positioning.

Research Methodology

This research work aimed at closing the positioning-perception gap in the banking industry.

The population of this study consists of bank customers operating within Umuahia banking environment. It is made up of customers of all the banks that are operating within Umuahia. Umuahia was chosen because, being the capital of the state, there is relative plurality of people of the state in the town. The researcher believes that the results will be adequately generalized to suit the population of the entire state and the nation at large.

The population of the study was drawn from the customers of the banks in this area.

In order to reect the purpose of this, the Bowley's formula, Mac'O do, (2002:117) was applied to determine the sample size of 399. The researcher rounded it up to 400.

The positioning statements of the banks in the national dailies-This day, The Sun, Punch, The Nation, Vanguard and Guardian – for the second quarter of 2018 (April-June) and internet were used. The dailies were used because of the geographical coverage and permanence (ease of retrievability of message in a medium).

Questionnaire was the source of primary data for the study. This questionnaire was simply worded to guide respondent to specic actions. A fteen-item questionnaire was designed, administered and used in the data collection and analysis for this study. It was subjected to a test-re-test reliability test which yielded 78% correlation and a Cronbach's Alpha test of 0.81. These results signify that the instrument is reliable. Validity was based on experts' opinion. The researcher administered some of the questionnaires directly to the respondents and specic time was agreed for return of completed questionnaire, while some of the questionnaire were dropped with the various branches of the banks at Umuahia for respondents to complete. The remaining copies of the questionnaire were shared equally among the 16 branches operating in Umuahia. That is, 20 copies per bank branch. The researcher personally went back and collected the questionnaire duly lled by the respondents.

The researcher used survey method. This method is suitable for this type of research study as it uses questionnaire to describe and/or predict phenomenon by asking questions because of the nature of the research. This method is highly




used in business research. It is a method that is used to solicit responses from persons believed to have the desired information by asking questions. It has the advantage of being logical, deterministic, general and specic (Etuk, 2010).

The simple descriptive and inferential statistics were applied. A multiple regression was used. A bench mark of 60% was adopted for acceptance of variable in the descriptive analysis as contained in the SPSS version 21 at 5% level of signicance.


Question 6 in the questionnaire serves as eliminator. Those who answered “NO” to the question are eliminated as these do not form part of the study. Our major focus or area of concern was on those who operate in any of the commercial banks operating in Umuahia.

Test of Hypotheses

All the hypotheses were tested with multiple regression with the ve variables as independent and customer perception as dependent.

Results: The R value (0.819) shows a strong, positive and signicant relationship exists between  positioning and perception. The adjusted R2  value (0.666) reveals that 66.6% variation in customer perception is predicted by positioning. Also, the F value (140) and p value (0.000) which are greater than f critical value at 0.05 level of signicance (6.39) and less than alpha (0.05) respectively are positive signs of relationship. The coefcients table shows that all the independent variables are signicant predictors of customer perception. This is because their p-values are less than alpha (0.05) and their t-values greater than t-critical.


We, therefore, reject all the null hypotheses and accept all the alternatives


Based on the analysis, the following ndings were made:

  1. There is a link between positioning using service quality and customers' perception of deposit money banks.
  2. Positioning using customer benets drive positive customers' perception of banks.




  1. That positioning using banks' corporate social responsibility drives positive customers' perception of the banks.
  2. Positioning using technology drives positive customer perception of banks.
  3. There is a link between positioning using customer service and customers' perception of banks.


The following are recommended:

  1. For banks to compete favourably, technology, customer benets and service quality should be emphasized more in their positioning strategies. This is because the present bank customers require more convenient offerings' that are technologically driven and which depend on customer- centric service quality activities and safety of funds.


  1. Attention should also be given to customer service and corporate social responsibilities as they drive positive perception and patronage intention.
  2. The selection of any positioning strategy should be research-driven.
  3. Appropriate of effective and integrated marketing communications using the tools of advertising, sales promotion, personal selling and public relations should be re-emphasized and refocused.
  4. Consumers' behaviour is diverse in nature. Yet most rms do not emphasize this. Consumer behaviour study before, during and after purchase should be lent credence as this can either make or mar a business if the consumers perceive and react negatively to a rm and its product offers.





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Poi, Godwin (Ph.D., FCA)

Director, Entrepreneurship Centre & Head, Department of Business Administration Faculty of Social and Management Sciences,

University of Africa, Toru-Orua, Bayelsa State, Nigeria.


Ademe, D. G. Ph.D. Department of Marketing, Faculty of Management Sciences, University of Port Harcourt

E-mail:This email address is being protected from spambots. You need JavaScript enabled to view it.




This study determined the relationship between entrepreneurial marketing and business growth of small and medium scale enterprises in Port Harcourt. The study adopted descriptive research design. Out of a total of 287 copies of questionnaires distributed, 243 copies were found fit for analysis. Multiple regression statistical tools were adopted with the aid of Statistical Package for Social Sciences (SPSS version 23.0). The findings of the study showed that entrepreneurial marketing significantly relates with business growth. Based on the findings, the study recommended that, government of Nigeria should invest in enhancing the entrepreneurial marketing level of small and medium scale enterprise owners through trainings and incorporating financial literacy issues in formal education; so as to improve the financial performance of the SMEs. This will encourage SME's to expand and grow in areas they are lacking.

Keywords:   Entrepreneurial marketing, Business Growth, SMEs.


The current business climate resembles a battle zone, with rising volatility, turbulence, intense competition, and complexity that necessitate skills and professional acumen to create a successful niche in any eld, particularly for small and medium-sized businesses (SMEs). SMEs facilitate broad-based development in competition and entrepreneurship, as well as providing economy-wide advantages such as innovation and aggregate productivity growth relative to GDP growth (Tarfasa et al., 2016). Small and medium companies (SMEs) contribute signicantly to output, employment, and the




regeneration of the global economy and individual national economies in both developed and developing nations (Paul, 2009). They are considered as one of the key economic drivers and major backbone towards the attainment of national development and business sustainability.

Academics, marketing practitioners, and entrepreneurs are all thinking about the notion of entrepreneurial marketing. In today's corporate environment, chaos, fragmentation, uncertainty, complexity, and ambiguity create market circumstances. Instead of employing a planned linear and rational reaction, which is the traditional marketing method, a new entrepreneurially creative alternative is provided (Fillis, 2010). As a result, entrepreneurial marketing may be thought of as a new paradigm that combines important components of marketing and entrepreneurship into a holistic idea in which marketing is transformed into a process that allows businesses to operate entrepreneurially.

More so, SMEs are recently coming up day by day and the market is becoming more and more competitive and dynamic. SMEs are becoming more dynamic and they are using different strategies in order to still remain relevant in the market and business environment. Just any entrepreneurial marketing strategy cannot be used by any SMEs; each must discover the appropriate entrepreneurial marketing strategy that best suits its own operations. Without the appropriate entrepreneurial marketing strategy, a SME cannot survive in today's competitive environment. Hence, SMEs in Nigeria face enormous pressures as the nation integrates more into the world economy. Inuences, impacting as both external and internal factors, can be found in the business environment, such as globalization, technological innovation and demographic and social change, as well as the level of technology deployed, innovative ability, nancial support, saturated domestic market and entrepreneurship. The development of an effective awareness plan or strategy is an issue most SMES face in recent times, especially in Port Harcourt metropolis. Attracting, inuencing, persuading, reminding, informing, satisfying and retaining new and existing customers is important for the survival of any SMEs, especially in this era of stiff competition in the economy. It is often argued that satised customers are more likely to return and form emotional ties. This perceived trend may negatively affect the survival of the rm in Port Harcourt metropolis and thus, diminish the business growth of the region or State. This formed the basis for carrying out this study on entrepreneurial marketing and business growth of small and medium scale enterprises in Port Harcourt. The aim of this study is to investigate the entrepreneurial marketing and business growth of small and medium scale enterprises in Port Harcourt.




Review of Related Literature

This study presents the theoretical review, conceptual review and empirical review from prior research and relevant literatures on the following research variables entrepreneurial marketing and business growth. The theory of Resource-Advantage Theory (R-A) underpinned this paper. It is critical to provide a theoretical framework for entrepreneurial marketing. Although EM is compatible with a variety of theoretical frameworks, it is particularly compatible with resource-advantage theory (RA) (Hunt, 2000). The Resource-Advantage Theory of Competition is an evolutionary, process theory of competition in which each business in an industry is a unique entity in time and space as a result of its history (Almansour, 2012). the idea encompasses a wide range of non-economic resources, including organizational culture, knowledge, and abilities, and contends that many of these non-economic resources are replicable rather than rare (Aliyu, 2014). It's a notion that clearly accommodates both traditional and entrepreneurial marketing strategies.


Marketing can help rms create new resources and greatly increase the productivity of current resources (a) through the various leveraging approaches mentioned earlier and (b) by championing innovation in the form of new combinations of resources, which is consistent with the dynamics of competition under R-A theory. The R-A theory of competition places a premium on long-term innovation, which indicates that marketing has a role to play in both leading and supporting a company's innovation portfolio (Aliyu, 2014). A portfolio like this contains a variety of product, service, and process innovations with varying degrees of risk and creativity. Furthermore, in the context of R-A theory, a major responsibility for marketing would be the continuous search for new markets in which the rm's resources give comparative advantage. Sales Growth variable has a signicant positive effect on rm value in research.

Entrepreneurial Marketing

Entrepreneurial marketing is characterized as a mind-set generated from entrepreneurial activity, as well as actions that do not adhere to traditional marketing techniques. Numerous denitions for entrepreneurial marketing exist as a result of the varied conceptualizations for entrepreneurship and marketing (Ismail et al 2018). Proactive discovery and exploitation of possibilities for attracting and maintaining lucrative consumers through creative methods to risk management, resource leveraging, and value generation, according to one denition of EM (Morris, Schindehutte & LaForge, 2002). Morris et al. (2002) dened EM as having seven basic dimensions: proactive orientation, measured risk taking, innovativeness, opportunity focus, resource leveraging, customer intensity, and value generation (Morris et al. 2002).




The concept of entrepreneurial marketing describes the values, skills, and behaviors of entrepreneurs in addressing problems and identifying business opportunities; it represents a different approach to envisaging the business itself, its relationship with the market place, and the role of marketing function within the rm, or as a strategic entrepreneurial posture or behavior (Beverland & Lockstin, 2004). Entrepreneurial marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers, as well as managing customer relationships in ways that benet the organization and its stakeholders, and is characterized by inventiveness, risk-taking, and pro- activeness, and can be carried out without the use of currently available resources (Kraus & Fink, 2010). Small and medium-sized businesses have recognized entrepreneurial marketing as one of the most signicant critical factors for excellent performance and global competitiveness (Junde, 2014). When marketing and marketing practices are properly dened, it is easier to grasp Entrepreneurial Marketing (EM), since the two ideas merge to form one. EM is a proactive discovery and exploitation of possibilities for attracting and maintaining lucrative consumers through creative methods to risk management, resource leveraging, and value creation (Morris et al., 2002). EM according to Hills et al., (2010) is a mind-set, an orientation, and a method for chasing possibilities and starting and expanding companies that generate perceived customer value via connections, particularly through the use of innovation, creativity, selling, market immersion, networking, and exibility.

Business Growth

Business growth may be measured in terms of revenue creation, value addition, and company volume increase. It may also be quantied in terms of qualitative characteristics such as market position, product quality, and consumer goodwill. It is also necessary to comprehend the notion of 'the rm' while examining the growth of a company. The denition of what a company is, how much it has grown, and what it delivers to the market all play a role in determining its growth (Gupta et al., 2013). If a business rm is growing, it is considered successful. The word "growth" has a variety of meanings. It may be described in terms of revenue creation, value addition, and business growth in terms of volume. It may also be quantied in terms of qualitative aspects such as market position, product quality, and consumer goodwill (Kruger 2004). As previously said, growth is a key sign of a successful business. Many elements, such as the entrepreneur's personality, access to resources such as nancing, and labour, inuence the growth of the business and distinguish it from non-growing businesses. Gilbert et al. (2006) proposed how and why inquiries are relevant in the context of business growth. Growth is a result of the decisions made by an entrepreneur, such as whether to expand internally or externally, and whether to grow in the home or worldwide market. Mateev and Anastasov (2010) discovered that the size of an organization, as well as other unique factors such as nancial structure and




productivity, affects its growth. They went on to say that while total assets, one of the measures of a company's size, has a direct impact on sales revenue, the number of workers, R&D expenditure, and other intangible assets have less of an impact on the company's growth prospects. High sales growth indicates that the company's earnings have improved. If sales expand rapidly, prot grows rapidly as well, increasing the share of prot allocated to investors (Gurendrawati, 2015).

Opportunity Focused and Business Growth

According to Becherer et al (2008), a rm's capacity to choose the correct opportunity is what denes its success. Opportunities, according to Alvarez and Barney (2013), are considered as objective occurrences that exist independently of the entrepreneur and exist in a stream experience exterior to the entrepreneur, ready to be discovered and exploited. According to Matsune et al. (2002), a company's market knowledge impacts whether innovation is adopted at the proper moment and under less-than-ideal conditions. Market information acts as a restraint, keeping the company from wasting resources. Smaller owner- operated businesses may be unable to take advantage of opportunities that require signicant resource investments. Entrepreneurial businesses, on the other hand, are more closely connected with the entrepreneur's own perspectives when it comes to recognizing and pursuing opportunities (Schindehuth and Morris, 2010).


Entrepreneurial marketing focuses on seizing opportunities regardless of resources available (Olannye et al., 2016). Recognizing and pursuing opportunities are crucial marketing actions for a company's success. The degree of t between the rm's capabilities and resources is used to assess market potential. Success is determined by the rm's ability to discover the "correct" opportunity (Becherer et al, 2008). Although opportunity may present itself at any time, enterprising marketers have a proclivity to scan for new chances in advance. Entrepreneurial enterprises use innovation and creativity as crucial instruments to turn chances into reality (Kilenthong et al, 2010).


H01:   There  is  no  signicant  relationship  between  opportunity  focused  and business growth of small and medium scale enterprises in Port Harcourt.

Pro-activeness and Business Growth

Pro-activity is a state of mind and will that is mostly driven by one's awareness in order to maintain a vision, complete a mission, achieve a difcult goal, and meet stated objectives (Olannye & Eromafuru, 2016). To be proactive in recognizing and exploiting business possibilities, small businesses must be proactive. The pro-active component motivates a company to conduct constant environmental




monitoring and anticipate change in order to better serve consumers and markets. It's imagining a future in which one device controls the strategic parameters for inuencing, inuencing, and reconstructing the environment in which to work in accordance with that vision. Entrepreneurial pro-activity displays a propensity to dominate markets by a combination of proactive and aggressive actions, such as launching new products or services ahead of the competition and acting in anticipation of future demand to generate change and control the environment (Olannye et al., 2016). Pro-activeness is primarily goal- oriented, stressing initiative, anticipating, bringing about change, projecting the progression of a crucial circumstance, and early preparedness prior to the occurrence of an approaching uncertainty or danger. Self-awareness is shown through acts in the creation of "stated beliefs" and the implantations of these beliefs (Rosemond, 2012). A rm's pro-active inclination allows it to foresee market changes or demands and is among the rst to respond, and this rst mover advantage translates into higher performance.


Ho2:  There is no signicant relationship between pro-activeness and business growth of small and medium scale enterprises in Port Harcourt.

Empirical Review

Entrepreneurial marketing techniques and competitive advantage of small and medium-sized rms in Nigeria were investigated by Otika et al. (2019). The study's participants are owners/managers of small and medium-sized businesses in Enugu State. A total of 356 people were included in the study. The study used a cross-sectional survey research approach. The hypotheses were tested using multiple regression analysis. The ndings found that pro-activeness and taking risks had no signicant link with competitive advantage, which is used to gauge small and medium-sized business success. The data also found that in Enugu, Nigeria, innovativeness and opportunity recognition had a substantial association with competitive advantage, which is used to gauge the success of small and medium-sized businesses.


Anetoh, Ndubisi, and Anetoh (2017) investigated "entrepreneurial orientation and entrepreneurial marketing behavior among Nigerian entrepreneurs." In Anambra State, Nigeria, the study looked at the link between entrepreneurial inclinations and entrepreneurial marketing behavior among Nigerian entrepreneurs. In Anambra State, a population of 130 entrepreneurs was gathered from 13 different kinds of entrepreneurial endeavors. For the analysis, 118 viable copies of the questionnaire were used. The ve hypotheses were tested using the Pearson coefcient of correlation, which was made possible via the SPSS software. The ndings revealed that entrepreneurial marketing behavior is linked to innovativeness, pro-activeness, risk management, autonomy, and competitive aggression. The ndings showed that all variables of




entrepreneurial orientation are substantially associated to entrepreneurial marketing activities among Nigerian entrepreneurs.

In their study, Hacioglu, Eren, Eren, and Celikkan (2012) looked at the impact of entrepreneurial marketing on SMEs' innovative performance in Turkey. We employed a structured questionnaire based on earlier research (Kreiser, Marino, & Weaver, 2002). Using regression analysis, they examined seven hypotheses on data obtained from 560 manufacturing SMEs in Turkey. The study discovered that recognizing opportunities and taking prudent risks have little inuence on inventive performance. In addition, it was shown that pro-activeness and innovativeness had a substantial impact on the success of small and medium- sized businesses in Turkey. Furthermore, their research indicated that real estate businesses in Turkey can only develop if they operate at a cheaper cost or in a way that differentiates them.


This is an empirical paper, which seek to evaluate the inuence of entrepreneurial marketing on business growth of SMEs in Port Harcourt. This paper adopted descriptive survey design. This design is selected for the study because it allows for obtaining numerical and structured description of the population and will give clear understanding of entrepreneurial marketing and how it affects the business growth of small and medium scale enterprises in Port Harcourt. According to Nigerian Directory (2020), they are one thousand and sixteen (1016) registered small and medium scale enterprises in Port Harcourt. Directors, managers and account managers etc. of the one thousand and sixteen (1016) registered small and medium scale enterprises serves as our accessible population. Using Taro Yamene's formula to determine the sample size, we had 287 SMEs in Port Harcourt. Therefore, 287 became our sample size. Simple random sampling techniques was used in selecting without bias two hundred and eighty-seven

(287) SMEs from the possible one thousand and sixteen (1016) given each rms equal chance of being chosen. Well-constructed questionnaires were used to administer to the respondents. The instrument adopted a ve-point scale which includes: SA=Strongly Agree (5), A=Agree (4), U=Undecided (3), Disagree (2), Strongly Disagree (1). Multiple regression analytical tools were used to analyse hypotheses.

Data Analysis and Presentation

The researcher relied heavily on data gotten through questionnaires distributed to respondents. Its aim was to test the hypotheses and discuss the relationship thereafter.




The result of the multiple regression of the above variables indicated R = 0.922, R²=0.850 which is equal to 85.0% and this is the explanatory power of the model used for the study. It means that only 85.0% variation can be explained by factors within the model used for the study and the remaining 15.0% can only be explained by other external quantitative and qualitative factors of the model used for the study. The f-ratio (F1, 241=109.774) showed signicant effects in existence and this revealed the appropriateness of the model used for the study. The beta values represent the strengths or extent of contributions within the present position of sales growth. Opportunity focused made the highest contribution of 0.751 values while Pro-activeness came second with 0.081 values. These results have revealed that the two dimensions of the predictor made signicant contribution. Also, the p-value<0.05 for the two dimensions of predictor as showed in table 4.3. These results mean that the null hypotheses (Ho1 and Ho2) were rejected as regards the sales growth.

Discussion of Findings

This section sought to discussion various ndings as regards to analysis of data and ndings.

Positive relationship between opportunity focused and business growth

Hypothesis one (Ho1) aimed at examining the signicant relationship between opportunity focused and sales growth. The hypothesis was tested using multiple regression analysis. Our analysis revealed a positive and strong signicant relationship between the variables. That is to say, opportunity focused has a positive relationship with business growth. This also being supported by Gunger et al. (2012) study which revealed that entrepreneurial marketing especially within the SMEs is the path way to achieve performance. Their nding revealed positive relationship between entrepreneurial marketing and business development. Umaru & Obeleagu-Nzelibe, (2014) result suggested that entrepreneurial skill, proper record keeping, access to nancing, concessional taxation, longer period of operation and consistent policies were found to be signicant factors required for business success and protability in Nigeria.

Positive relationship between Pro-activeness and business growth

Hypothesis two (Ho2) aimed at examine the signicant relationship between Pro- activeness and sales growth. The hypothesis was tested using multiple regression analysis. The analysis revealed a positive and strong signicant relationship between Pro-activeness and sales growth of small and medium scale enterprises. Pro-activeness has no signicant link with SMEs' competitive advantage in Enugu state (=-.040, t= -.958, p.339), according to the data. This




contradicts Lumpkin and Dess's (1996) results, which claim that pro-activeness has a high positive correlation with competitive advantage. This suggests that entrepreneurial pro-activeness is not a vital component in gaining a competitive advantage.


The ndings on the characteristics of entrepreneurial marketing, namely opportunity focused and pro-activeness, all contribute considerably to the success of small and medium-sized businesses in Port Harcourt. As a result, the study nds that the dimensions of the predictor variable may considerably raise the degree of sales growth of small and medium size rms in Port Harcourt when correctly implemented.


Based on the ndings and conclusion of this study, the following recommendations were advanced for SMEs in Port Harcourt for appropriate implementation.

  • The study recommends that government of Nigeria should invest in enhancing the entrepreneurial marketing level of small and medium scale enterprise owners through trainings and incorporating nancial literacy issues in formal education; so as to improve the nancial performance of the SMEs. This will encourage SME's to expand and grow in areas they are lacking.
  • SMEs should be opportunity focused as this leads to a higher growth of returns in SMEs.
  • Having examined the generic policy management of SMEs, the pointer is that, to achieve a desired sustainable economic growth and development in the country, it is imperative for government to continuously put in place policies and programmes that will encourage entrepreneurs in the SME sector participation and contribution to the development process.
  • There is need for sustained collaboration between government and the operators of SMEs by providing adequate incentive and the needed enabling environment to stimulate and foster business growth in Nigeria.





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Dr. Jude E. Madu


Department of Marketing, Baze University, Abuja.


2Anukam, Amaobi Isaac, PhD

Entrepreneurship Development Program Center, Imo State Polytechnic, Umuagwo.


3Dr. Chibuike Anyeji Nwuba

Department of Marketing, Federal Polytechnic, Oko.



The objective of this study is to provide a Social Marketing tactics to curb the prevalence of Covid-19 pandemic. Primary data was obtained through a survey of residents in selected estates in Abuja, while secondary data was obtained through a review of related literature from the internet and the Researcher's library. Data obtained was analyzed through descriptive statistics. The following facts emerged: respondents: are still skeptical over the existence and devastating impact of Covid-19 pandemic; do not have access to the campaign for adherence to non-pharmaceutical measures for curbing Covid-19 pandemic; have difficulty understanding the campaign through billboard, radio, television and newspaper; and are yet to notice any reward or punishment for non-adherence to the campaign. Based on these findings, a Social Marketing Tactics is recommended for curbing the prevalence of Covid-19 pandemic.


Key words: Change Agent, Social product, Target adopters.


Before now the word has experienced series of pandemics. Some of these pandemics include: - Lassa fever, Ebola Virus, Cholera, Chikungunya Crimean- Congo hemorrhagic fever, Hendria virus, Marburg virus, Meningitis, Mars-con Monkey Pox, Nipah virus, SARS, Plaque Smallpox, Tularemia Yellow fever, Zika virus, Rift and valley fever amongst others (World Health Organization, 2020). Though none of these pandemics is friendly to man the world over, but none of




them has claimed more lives or devastated social – economic activities the world over like the novel corona virus. The World Health Organization in 2020 declared the novel corona virus disease a pandemic with severe repercussions to human health and global economic activities. Although the virus can be controlled according to WHO, 2020, but its news cause severe anxiety among people around the world. Sherean,, 2020, state that corona virus belong to the coronaviridae family in the Nidovirales order. Corona represents crown -like spices on the outer surface of the virus; thus it was named as a coronavirus.

The origin of the dreadful corona virus is traced to a business hub in Chine known as Wuhan. The disease was rst noticed toward the end of 2019 in Wuhan – China, but within the rst fty (50) days of its existence, it caused the death of over one thousand eight hundred (1800) person with more than seventy thousand person already infected. The number of deaths and infected persons has continued to increase into millions all over the world.

Following the spread of Covid-19 pandemic, Governments including Nigeria have instituted measures to prevent and control the spread of the pandemic. Some of these measures include: total lockdown on economic activities, ban on social gatherings, provision of vaccines and campaign for adherence to nonpharmaceutical measures such as wearing facemask, hand sanitizing and washing with soap and or spirit, keeping the environment clean. Unfortunately, these measures have not yielded the needed result as more cases and deaths are recorded as a result of the pandemic.

The main objective of this study is to identify the reasons behind the skepticism on the prevalence and devastating impact of the Corona-19 decease; the difculty in adhering to non-pharmaceutical measures to curb the decease; and the distrust on the efcacy of the newly invented vaccine for the decease.

Literature Review Conceptual Review Concept of Social Marketing

Social Marketing is the process of initiating and implementing actions aimed at changing behaviors that are inimical to society's wellbeing (Madu: 2016). A typical example of a behavior that is inimical to societal wellbeing that requires a social change is the “inability or unwillingness of Nigerian to adhere to the non- pharmaceutical measures for the prevention and control of COVID-10 pandemic. Social Marketing Strategy comprise of four major activities including: understanding the Social product; identifying the Target Adopters; identifying




the appropriate Change Agent; and implementing the Social Change Management Process (Kotler and Roberto, 1989). These are briey explained as follows.

Understanding the Social Product: In Social Marketing, Product means the ideas, practice and behavior and tangible objects that need to be propagated aimed at changing a bad behavior. Good examples for this study could be in the form of documented and identiable evidence of deaths as a result of Covid-19, Leaets carrying campaign of adherence to non-pharmaceutical measures for preventing Covid-19, Advertising on Billboards, Television and Newspapers, and Personal Selling.

Identifying and understanding the Target Adopters: Target adopters are those individuals or groups who the Social products are aimed at. Given the heterogeneous nature of Target adopters most times, there is always the need for the Social Marketer to segment the Target adopter (market) using parameters such as age, economic status, sex, occupation and geographical location. For this study, every strata of the Nigeria society is a victim of the non-adherence to non- pharmaceutical measures against the spread of Covid-19, hence the need for segmentation and targeting.

Understanding and selecting the Change Agents: Change agents are individuals or group of persons or organizations that can be used to effect the needed social change anticipated from the Target Adopter. For this study, the most preferable change agents include: Staff of educational institutions; Religious leaders; Security Agencies; Legislators; Journalist/Media practitioners; Traditional Rulers; Student's union and Trade union executives.

Social change Management Process: This is the actual execution and control of the social marketing effort. It is the identication of the Target Adopters, selection of the appropriate Social Product and Chang Agent and make them to start work. After each exercise, a comparison is doe between the achievement and the initial situation which may require adjustments.

Spread and Control of Covid-19

According to a press release by the Nigeria Center for Decease Control (NCDC), 2019, Covid-19 spreads easily from person to person mainly through the following channels: between people who are in close contact with one another (within 6 feet); and through respiratory droplets produced when an infected person coughs, Sneezes, breathes, sings or talks.




Most prominent non-pharmaceutical measures for the prevention and control of Covid-19 include:


  1. Wash your hands often with soap and running water or hand sanitizer with at least 60% alcohol.


  1. Avoid close contact. This takes the following forms: (i) inside your home avoid close contact with people who are sick or maintain six (6) feet between the person who is sick and other house hold members; and (ii) outside your home put six (6) feet of distance between yourself and people who don't live in your household.
  2. Cover your mouth and nose with a mask when around others.
  3. Cover your coughs and sneezes. Clean and disinfect your environment and every part of your house regularly. 5. Monitor your health daily, and be alert for symptoms of Covid-19 such as fever or high body temperature, cough shortness of breath and any other.


6. Protect yourself from u during u seasons because u viruses help spread Covid-19 virus.

Theoretical Review

For the purpose of this study, the Health Belief Theory selected amongst many Theories to buttress the objective of this study.

Health Belief Theory

This Theory was made popular by Strestrecher & Rosenstock, 1997 in Lefebvre, 2000. The objective of the Theory is to explain why people do not participate in programs to prevent or detect diseases. These reasons include: perceived susceptibility (the subjective perception of risk of developing a particular health conditions); perceived severity (feelings about the seriousness of the consequences of developing a specic health problem); perceived benet (belief about the effectiveness of various actions that might reduce susceptibility and severity or threat; perceived barriers (potential negative aspects of taking specic actions; and cues to action ( bodily or environmental events that trigger action). The Theory further states the notion of self-efcacy as another predictor of health behaviors (more complex ones in which lifestyle changes must be maintained over time. The Theory also states that factors such as demographic, social, psychological and structural variables (such as age, gender, socioeconomic status and prior knowledge) may also affect an individuals'




behavior on health related issues. This Theory is relevant to our study objectives which examine the reasons behind the skepticism over the existence and ravaging impact of Covid19, unwillingness to adhere to non-pharmaceutical measures to control the pandemic, and the efcacy of the newly introduced vaccines.

Research Methodology

For the secondary data the internet was explored, while relevant topics in textbooks from the Researchers' personal library were reviewed. For the survey, primary data was obtained through a questionnaire administered on a sample size of 342 obtained from a population of 2340 residents of selected Estates within Abuja (NPC, 2020). Given the nature and spread of the population, the sample size was rst determined by applying the Yaro Yamen's formula for sample size determination, and then the Quota sampling method was employed to determine the number of respondents assigned and to be selected from each strata of the population (Barridam, 1995). Out of 342 copies of Questionnaire distributed, 322 representing 94.0 percent of the questionnaire were properly

lled and returned. Therefore the analysis and discussion of ndings was based on the response of 322 (94.0 %) respondents which is reasonable to represent the opinion of the population. Data obtained was analyzed using the percentage method.

Discussion of findings

From the data obtained for this study, the following facts emerged.

  1. Government through the relevant agencies have made remarkable social, economic and health related efforts aimed at curbing Covid-19, yet the prevalence of the pandemic persist in the country.
  2. The most remarkable effort by the government aimed at curbing Covid-19 pandemic is the campaign on the adherence to non-pharmaceutical measures total lockdown of economic activities, and closure of boarders. Despite these efforts, Nigeria and many other countries are still recording more cases of the pandemic with more deaths.
  3. Many Nigerians are still skeptical over the existence and the devastating impact of Covid-19. No wonder that the campaign on the adherence to non-pharmaceutical measures is not yielding the needed fruit in Nigeria.
  4. The reasons behind the skepticism on the existence, spread and devastating impact of Covid-19 include: high rate of poverty among the




citizens; low level of education; high rate of corruption in the country; lack of trust on government agencies; and negative testimonies from discharged victims.


Based on the ndings from this study, the following Social Marketing tactics is recommended for curbing the prevalence of Covid-19.

Step 1:     Segment the population into target adopters.

Step 2:       Develop a rewarding and evidence-based social-product for each segment of target adopters.

Step 3:      Identify and select appropriate change agents for each segment of the target adopter.

Step 4:      Select change agents to personally approach the target adopters to deliver the social product.

Step 5:      Do Periodic measurement and control of the exercise.




From the ndings, it can be deduced that Covid-19 is still spreading and causing more deaths in Nigeria, yet Nigerians are still skeptical about its existence and impact despite government efforts including the campaign for adherence to nonpharmaceutical. Unfortunately, the campaign has not yielded the needed outcome, hence the need for the application of Social Marketing tactics.






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Abdulwahab, A. D., Olodo, H. B. Ph.D. and Lawal, A. T. Ph.D.

Department of Business Administration, Faculty of Management Sciences,

Al-Hikmah University, Ilorin. Nigeria Corresponding Author: This email address is being protected from spambots. You need JavaScript enabled to view it.; 08024668200



The impact of entrepreneurship in any country cannot be overemphasized, especially in developing countries' economies in Kwara State, Nigeria. The State is blessed with so many entrepreneurs within a young age, their entrepreneurial intentions are a crucial mechanism in running the economy of the State. As a result, the study assessed the determinants of entrepreneurial intention among youths in Ilorin West Kwara State. The theory was anchored on two (2) theories: trait theory and social cognitive theory. A descriptive survey design was used for this study. The study population consists of all youths in Ilorin West, Kwara state, but references were made to selected youth in Ilorin West Local Government Area. A sample size of 399 youth was used to represent the study's population using Taro Yamane formula for known population. The ANOVA results for regression coefficients indicate that the significance of the F=83.375>F-table=3.84 at a degree of freedom of (2, 83); i.e. P-value=0.00 is less than 0.05. The findings from hypothesis two showed that the personal attitude variable maintained a strong positive and significant relationship with self-direction, effort, stimulation and pro-activeness, respectively, as shown by their correlation coefficient of 0.238; 0.572; 0.021; 0.243 and P values of less than 0.05 for all. This study showed that the prior perceived educational support and personal attitude are significant determinants towards entrepreneurial intention among youth in Ilorin West Local Government Area.


Keywords:   Entrepreneurial Intention, Perceived Educational Support, Personal Attitude


Entrepreneurship has recently received a lot of attention owing to its relevance in terms of economic development, job creation, innovation, and productivity (Linan &s Fayolle, 2018). As a result, emerging countries like it. Nigeria promotes young people to engage in entrepreneurship and regard it as a career option. Youths will be a vital source of embryonic entrepreneurship in the future, as is commonly acknowledged. Making entrepreneurialism courses mandatory for all




students, regardless of their eld of study, is part of the government's goal to instil an entrepreneurial mindset among youths. Entrepreneurship is critical for economic growth, job creation, and a solution to the overcrowding of youngsters and social issues.

Many scholars from many backgrounds have been drawn to the notion of entrepreneurship in recent decades. As a result, there is no one-size-ts-all denition that is universally recognized. An entrepreneur, according to Nabi and Lifan (2018), is someone who is continually looking for a change, reacting to it, and seeing it as an opportunity. Entrepreneurs' core tool is innovation, which is how they use change as a chance to start a new business or provide new services. As the individual who brings new items to the economy, an entrepreneur is a vital gure in economic advancement. An entrepreneur is fundamentally an inventor, and entrepreneurship is a creative endeavour (Nayak, Marakala, Kamath & Saikrishna, 2020). Problem-solving activities, in which the entrepreneur serves as a problem solver, are examples of innovation. He's the one who turns obstacles into possibilities. His job is to come up with new and better ways to accomplish things.

The technique of beginning a new rm in response to a recognized opportunity to make a prot while causing the least amount of detrimental environmental externality is known as entrepreneurial purpose (Kotchen, 2009). The entrepreneurial purpose is a necessary rst step toward pursuing a career as an entrepreneur. There are two layers to the choice to establish a business: logical and motivated (Gelard & Saleh, 2017). The logical level focuses on objective reasons for doing the job, such as the environment's reinforcement or punishment of various behaviours. The motivational level, on the other hand, relates to subjective factors that represent the decision maker's expectations. As a result, an examination of entrepreneurial behaviour must take into account the reasons behind this decision.

It has been recognized that educational institutions create graduates with no job prospects. Graduates are trained for paying jobs, hence young unemployment in Nigeria has become a big national issue. Furthermore, the time between graduation and work has increased, causing discontent among Nigerian youngsters. In the current situation, it is suggested that one of these adolescents' possibilities is to become entrepreneurs; nevertheless, building sustainable businesses necessitates a learning process. Programs such as the entrepreneurial summit and the poverty alleviation program have been instilled in the State to boost entrepreneurial intention among youths, which has assisted some youths in bringing out the entrepreneurial rhythm in them; however, this is regarded as a necessary but insufcient condition.

Previous research (Ojiaku Nkamnebe &Nwaizugbo 2018; Babatunde, Perera, Zhou & Udeaja, 2015) focused on the drivers of entrepreneurial aspirations among young graduates: views of the push-pull-mooring model by students and




factors of eco-entrepreneurial intention among students. Furthermore, academics like WuandWu. (2018) looked at the necessity/opportunity-driven dichotomy, triggers and obstacles (Richmell, 2018), personality factors (Solesvik & Gulbrandsen, 2018), and the theory of planned behaviour (Nyström, 2018). Hence, attempt to develop an integrative framework for understanding determinants for entrepreneurial intention is limited (Nayak, et al. 2020).

Therefore, it is essential to know the factors inuencing youth intentions to launch a new start-up or entrepreneurship effort. However, there is still limited research on this issue, even though entrepreneurship has been essential to economic development and growth (Ardagna & Lusard, 2018).Other specic objectives are to:

  1. examine the effect of perceived educational support on entrepreneurial intention among the Youth in Ilorin West Local Government; and
  2. determine an association between the personal attitude and entrepreneurial intention among the youth in Ilorin West Local Government.

Literature Review Entrepreneurship

Entrepreneurship has grown in popularity in industrialized, emerging, and developing countries in recent years. Entrepreneurship is usually regarded as the engine that drives every economy. This is because a healthy economy requires a steady supply of entrepreneurship development. Furthermore, they have the potential to turn a novel idea into a successful invention (Peter, 2018). The idea of entrepreneurship, on the other hand, is often seen as a multi-faceted construction. Thereby, it has been usually distinguished in literature; for example, Tamizharasi & Panchanatham (2019) dened entrepreneurship as "an individual's capacity to innovate, to bear risks, to foresee the project's prospects, condence and competence to meet unforeseen and adverse conditions" in their work. Teshome (2021) also invented the term "entrepreneurship" to describe the skill of starting and sustaining a protable and sustainable business.

For the sake of this research, entrepreneurship is dened as the process of discovering people's issues and wants, then establishing a business to solve those problems, satisfy their needs, and prot.

Entrepreneurial Intent

Entrepreneurial desire is the motivating factor behind people starting new businesses (Wu &Wu, 2018). The activity considers an individual's entrepreneurial aim as well as their attitude toward the action's consequences and their self-efcacy (Douglas & Fitzsimmon, 2019). Existing research has




revealed a link between entrepreneurial ambition and perceived desirability, as well as the responsiveness to possibilities and the capacity to capitalize on such chances (Peterman & Kennedy, 2018).Entrepreneurial intentions are critical to comprehending the entrepreneurial process since they serve as the foundation for new businesses and are also seen as the initial step in a long-term process (Ezeh, Nkamnebe & Omodafe, 2020). Attitudes lead to behavioural intention, which becomes a direct predictor of behaviour (Zal, 2019). As a result, researching purpose rather than personality characteristics, demographic features, or environmental circumstances can better determine entrepreneurial behaviour (Krueger, Really & Carsrud 2020).

Determinants of Entrepreneurial Intention (EI)

Individuals' attitudes about entrepreneurial behaviour, personality qualities, and entrepreneurial education are all important antecedents to foreseeing the intents of business owners at the individual and management levels. Management, entrepreneurial, and sociology research have all looked at the link between these antecedents and EI (Dalsgaard & Karen, 2018). The attitude of the entrepreneur is determined by their anticipation and belief in the expected effect of their actions.

Roza et al. (2019) found that entrepreneurship education, inventiveness, and self-efcacy all affect vocational students' entrepreneurial intentions. Additionally, the ndings of the same study demonstrated that entrepreneurial inventiveness and perceptions toward entrepreneurship inuence the association between entrepreneurship and entrepreneurial self-efcacy in a favourable manner (Shahab et al., 2019; Iakovleva, et al. 2016). In addition, entrepreneurship education and self-efcacy are critical in fostering students' entrepreneurial ambitions (Oyugi, 2019). The ndings of this research demonstrate that developing entrepreneurial inventiveness might help entrepreneurs increase their desire to succeed.

Perceived Educational Support and Entrepreneurial Intention

To promote an enterprising society, entrepreneurship education may play three important functions. For starters, it might serve as a general advocate for the entrepreneurial attitude and innovation, as well as introduce kids to entrepreneurship as a feasible career option. Second, perceptions of educational assistance have been identied as a factor in entrepreneurial intent. Entrepreneurial education, according to a previous study, is an effective way of providing students with the required information about entrepreneurship (Fayolle, Linan & Moriano, 2018). Individuals' job choices are also inuenced by entrepreneurship education (Franke & Luthje, 2017). The university must play a signicant role in developing entrepreneurship to thrive in today's competitive economic sector. According to a study done among Turkish university students, higher education has a benecial inuence on entrepreneurial ambition (Shinnar




et al., 2019). They claim that entrepreneurship education is useful for gaining entrepreneurial expertise.

Furthermore, Roza et al. (2019) claim that entrepreneurial education serves three purposes. To begin, students must get a better knowledge of what entrepreneurship involves. Entrepreneurial education is essential for people from all walks of life. Second, it's about training people for the working world. It entails instructing students on how to become entrepreneurs and take charge of their professional and personal life. Finally, enterprise education helps people become better managers and entrepreneurs. Students should be taught how to become entrepreneurs, how to judge if they are capable of becoming entrepreneurs, and how to acquire company management abilities (Kasa, Hassan, Kichin, & Jia, 2019).

Personal Attitude and Entrepreneurship Intention

Understanding how experience leads to a propensity of attitudes requires an understanding of attitudes (Shinnar et al., 2019). They gave that attitude, which is dened as a long-term system of positive or negative assessments of an item. It depicts a person's method of assessing and comparing an object to other possibilities based on their thoughts (cognition), beliefs (values), and feelings (affection) about the thing (Urbano &Aparicio, 2019). They proposed that personal views and perceived behaviour interact indirectly with societal norms to determine a person's willingness to engage in entrepreneurship. In conclusion, a positive attitude among students is more likely to boost an individual's desire to engage in entrepreneurship.

Maina (2020) brought out two important aspects of entrepreneurial attitudes: the capacity to see possibilities and the willingness to take measured risks. People with entrepreneurial views, it is also said, are more inclined to start new businesses. This means that risk-takers are more likely to start a new business, and risk mindset inuences who gets hired into entrepreneurial roles. Entrepreneurship education is dened as a type of education that focuses on developing entrepreneurial knowledge, behaviour, attitudes, and skills. As a consequence, the three components of entrepreneurial attitudes: cognitive, emotional, and behavioural, may be used to assess students' attitudes toward entrepreneurship and entrepreneurship education.

Theoretical Review Trait Theory

Personality traits are the consistent characteristics that a person exhibits in the majority of circumstances (Coon, 2004). Some permanent inborn talents or potentials, according to trait theorists, inherently make someone an entrepreneur. Entrepreneurs have a proclivity for being opportunity-driven,




taking measured risks, and demonstrating a high level of creativity and invention, to name a few characteristics (Simpeh, 2011).They've also been discovered to be upbeat, emotionally resilient, and mentally energetic, to have a strong dedication and tenacity, to live on a competitive desire to achieve and win, to be unhappy with the status quo, and to seek change (Coon, 2004) Entrepreneurs are also transformative by nature since they are lifelong learners who utilize failure as a learning tool and a springboard.

Social Cognitive Theory

Self-efcacy is described by psychologist Albert Bandura (1962) as one's conviction in one's capacity to succeed in given settings or complete a task. Self- efcacy may have a big impact on how you approach objectives, projects, and obstacles (Whuepper, 2017; Carayannis & Provance, 2018). Bandura's social cognitive theory, which emphasizes the relevance of observational learning and social experience in the formation of personality, is built around the notion of self- efcacy. The core idea of social cognitive theory is that in practically every scenario, an individual's actions and reactions, including social behaviours and cognitive processes, are impacted by the actions of others. Self-efcacy is an essential part of social cognition theory since it is based on external experiences and self-perception and determines the outcome of numerous events. The personal view of external social inuences is referred to as self-efcacy. Luszczynska & Schwarzer (2005) People with high self-efcacy, or the belief that they can do well, are more inclined to perceive complicated activities as something to master rather than something to avoid, according to Bandura's concept.

The trait theory and the social cognitive theory were used in this investigation. The core tenet of trait theory is that to do a certain behaviour, an individual must have the intention to do so. As a result, the social cognitive theory should be seen as a catalyst for entrepreneurial goals. Meanwhile, the characteristic theory was sufcient to explain the circumstances underlying entrepreneurial intents, which include an individual's willingness to act entrepreneurially when the means, opportunity, or requirement exist at the same time. The social cognitive theory was applied in this case to provide a logical theoretical framework for understanding the relationships between individual intentions and social, psychological, and personal factors like attitude toward behavioural control, personality traits, perceived behavioural control, and entrepreneurial education.

Empirical Review

Using the Theory of Planned Behaviour (TPB) as a theoretical framework, Ambad and Darmit (2021) explore the factors of entrepreneurial intention among undergraduate students. Perceived educational support, perceived relationship support, perceived structural support, personal attitude, and perceived




behavioural control were the study's independent factors. The study used 351 undergraduate students from one of Malaysia's public institutions as a sample. Personal attitude perceived behavioural control, and perceived relationship support was revealed to be predictors of entrepreneurial intention in the study.

Faloye and Olatunji (2018) explored the effects of education, social network, innovativeness, and self-efcacy on entrepreneurial intention among undergraduate business students. Ajzen's Theory of Planned Behaviour, which regards behavioural intent as an immediate predictor of planned behaviour, directed the research (Ajzen, 2002). The study addressed 1,649 undergraduate business students from Moi, Mount Kenya, and Catholic universities in Uasin Gishu County, using an explanatory research methodology. A sample size of 321 was chosen using stratied sampling. The ndings revealed that student innovativeness was substantially and positively connected with entrepreneurial desire (r=0.650). Education had a substantial and signicantly connected with entrepreneurial ambition (r=0.564), and self-efcacy was the second feature among students to favourably associated with entrepreneurial intention (r = 0.618). Finally, the social network (r = 0.507) revealed a positive and substantial connection with entrepreneurial intent.

Popescu, Bostan, Robu, Maxim, & Diaconu (2021) examine how certain psycho- behavioural traits of the individual (creativity, locus of control, need for achievement, and risk-taking propensity) inuence entrepreneurial intentions, as well as the impact of various types of education on these intentions, to see if entrepreneurial education has a signicant impact on the entrepreneurial intentions of Romanian young people. The study was conducted using a survey research approach. A questionnaire was sent to 600 students enrolled in undergraduate (bachelor's) and master's programs at Romania's biggest public institutions who take entrepreneurial courses. Six different research hypotheses were put to the test. The study included data analysis techniques such as Analysis of Variance (ANOVA), Principal Component Analysis (PCA), and General Linear Models (GLM). The study's ndings revealed that the desire to succeed and the willingness to take risks are critical factors in predicting entrepreneurial intent. Conversely, graduates of entrepreneurial high schools are less likely to start their enterprises than graduates of general education high schools.

Cano and Tabares (2017) used guess research data to investigate the characteristics that inuence entrepreneurial intent among Colombian university students. The variables of perceived desirability perceived behavioural control, and perceived social norms were used to investigate the drivers of entrepreneurial intention using the theory of planned behaviour (TPB).Personal motives to be an entrepreneur, the degree of entrepreneurial intention, and the effect of family and societal environment on entrepreneurial intention were found as factors inuencing entrepreneurial intention in Colombia, according to the ndings.




According to Aponte et al. (2017), cooperative entrepreneurship in Puerto Rico was critically examined and compared with commercial organization with a view to improving the operation of cooperative enterprises in Puerto Rico. The study adopted Global Entrepreneurship Conceptual Model that centres on interaction of an individual's perception of opportunity, capability and condition of environment or area of operation where the cooperative society is situated which may make or mar entrepreneurial activity in an environment. Data were obtained through National Expert Survey while Mann Whitney U. test, a non-parametric procedure was employed. This tool can be put to use when samples do not comply with normality assumption for the t-test. The instrument is also good for comparing two independent groups when variables are either continuous, or ordinal but not normally distributed.


Adamu (2019) in a study used factors such as entrepreneurship education, environmental factors and societal entrepreneurship attitude to explore the student's entrepreneurial intention. These factors were adopted based on past theoretical and empirical studies which covered the gap and contributed to the body of knowledge in the eld of literature. The study concluded that researchers and Ministry of Education should examine this proposition on how to design a more comprehensive and benece entrepreneurship courses and curriculum to these Nigerian universities. This would aim at preparing these students to be self-employed (entrepreneurs) which would reduce and assist the government in overcoming the problem of youth poverty and unemployment in Nigeria.




Conceptual Framework of the Study

Independent Variable                                               Dependent variable



Entrepreneurial Intention


Personal Attitude






Figure 1: Conceptual Framework of the Study Source: Author's Conceptualisation (2021)


A descriptive survey design was used for this study. This is useful in research because it helps the researcher develop a mental image of the structure for gathering the data and analysis. The study used a questionnaire simply because the instrument allows the researcher to prepare a list of questions for data collection, and it enables the researcher to collect data from large samples of the population. Also, the problem of any personal bias by the researcher is completely eliminated. The study population consists of all youths in Ilorin West, Kwara state, but references were made to selected youth in Ilorin West Local Government Area, which stood at 292,500 (National Population Record, 2021). Ilorin West local government area was chosen because, according to press reader (2019), Ilorin West has the highest number of youths amongst all the sixteen LGA of the State. For easy understanding of youth in the selected areas in Ilorin metropolis, there are some attributes attached to youth for easy identication: any individual aged between 18-40, mobile, hardworking nature, engaging in social activities, etc.

Sampling size is any portion of a population selected for the study and on whom information needed for the study is obtained. Though the researcher conducted a sample survey and as data are only collected from the selected part of the population. Hence, the sample size was determined using Yamane's (1967) to be 399.

The reliability of an instrument refers to howit consistently measures what it claimed to measure (Nou & Scannel 2002). Fifteen respondents outside the selected LGA were used for the pre-test, after which the instrument was modied and made ready for data collection. The pre-test is to identify areas of weakness



of the questionnaire, especially to ascertain that the respondents will understand the questions and provide appropriate answers: The collected scores were subjected to Pearson Product Moment Correlation. The coefcient of correlation obtained was determined if the instrument is reliable or not.

It was evident from the result that all the variables have a Cronbach's alpha value of more than 0.7000, which shows sound reliability of the instrument except for society with a Cronbach's alpha valueof 0.6137. The Cronbach's Alpha Statistic are all signicant. On the other hand, it will be used to assess the instrument's dependability. Because accordingly, Cattell (1998) recommends 0.50 or more as the accepted value on each latent construct. Relying on this, the present study latent construct has exceeded 0.50 thrash hold, with values ranging from 0.515 to 0.865. Thus, satised the convergent validity requirement.

Upon completing data collection, a combination of descriptive and inferential statistics was employed as data analysis methods. First, the returned questionnaire was sorted and collated to check for and minimise errors. Then, when errors had been checked and reduced, the questionnaire with incomplete information was discarded, while completed ones were coded for analysis and inputted into SPSS Version 23. The descriptive statistics were based on frequencies, means, and standard deviations. At the same time, the inferential method was used to measure the formulated hypotheses through Statistical Package for Social Sciences (SPSS) version 23.

Hypothesis One

The result in the model summary indicates that perceived educational support on entrepreneurial intention variables was jointly explained at 66.8% variance of entrepreneurial intent while the remaining 33.2% could be due to the effect of extraneous variables not accounted for by the model. The adjusted R-square (0.660), which is a value just so close to R-square (0.668), depicts that if the model is sampled from the population rather than the sample, it will account for a negligible difference of 0.008% variance in the outcome. Therefore, the model

tness is good. R=0.817 implies that the relationship between perceived educational support on entrepreneurial intention is fairly high because the correlation coefcient is close to 1.

Overall diagnostic test of signicance using Analysis of Variance (ANOVA) between joint relations of perceived educational support on entrepreneurial intention. The ANOVA results for regression coefcients indicate that the signicance of the F=83.375>F-table=3.84 at a degree of freedom of (2, 83); i.e. P-value=0.00 is less than 0.05. This indicates that the perceived educational supportsignicantly predictsentrepreneurial intention (meaning it is a good t for




the model). Therefore, a signicant relationship between joints perceived educational support on the entrepreneurial intention at 95% condence level.

It can be deduced that perceived educational support has the least beta (β = 0.216). This implies that it has a positive inuence on entrepreneurial intention in the Ilorin West local government area. Therefore, a 21.6% increase in entrepreneurial intention is caused by an increase in perceived educational support by1%, which the incorporated results of model summary in table 7 and ANOVA table 8 failed to indicate the direction of the impact because of insensitivity of statistical power. The constant of regression further predicts that if perceived educational support=0, then the entrepreneurial intention increases by 26.4% and is signicant at a 5% level. Therefore, it seems the removal of perceived educational support can be used for inference. Hence, the null hypothesis is rejected, and the alternative hypothesis is accepted by positing that there is a signicant effect of perceived educational support on the entrepreneurial intention at a 5% level of signicance.

Hypothesis Two

The nature of the relationship among the factors of personal attitude towards entrepreneurial intention among the youth in the Ilorin West local government area. It was discovered from the above table that the personal attitude variable maintains a strong positive and signicant relationship with self-direction, effort, stimulation and proactiveness, respectively, as shown by their correlation coefcient of 0.238**; 0.572**; 0.021**; 0.243** and P values of 0.000; 0.000; 0.000; 0.000. The implication of this is that as the youth continue to intensify efforts in personal attitude towards the entrepreneur, the more it will be able to enhance and know more about the various ways by which these personal attitude variables can affect their entrepreneurial intention because the learning ability of these youth is greater.

As a result, they will proffer solutions to the various dimensions of uncertainties that may affect them. Since all the elements of personal attitude(such as self- direction, effort, stimulation and proactiveness) have a signicant relationship with entrepreneurial intention, then the null hypothesis is rejected, and the alternative hypothesis, which states that signicant association between personal attitude and entrepreneurial intention among youths in Ilorin West Local Government Area is accepted.

Discussion of the Findings

The study assessed the determinants of entrepreneurial intentions among youths in the Ilorin West local government area of Kwara state. The study's specic objectives were to describe the effect of perceived educational support on entrepreneurial intention and to determine an association between the personal




attitude and entrepreneurial intention among the youth in Ilorin West Local Government Area.

The ndings in hypothesis one revealed that the R-square (0.668) depicts the fact that if the model is sampled from the population rather than the sample, it will account for a negligible difference of 0.8% variance in the outcome. Furthermore, the ANOVA results for regression coefcients indicate that the signicance of the F=83.375>F-table=3.84 at a degree of freedom of (2, 83); i.e. P-value=0.00 is less than 0.05. This indicates that the perceived educational support signicantly predicts entrepreneurial intention. The regression constant further predicts that if perceived educational support=0, then the entrepreneurial intention increases by 26.4% and is signicant at a 5% level. Therefore, it seems the removal of perceived educational support can be used for inference. Hence, perceived educational support signicantly affects entrepreneurial intention at a 5% level of signicance. This was in tandem with the studies of Adagna and Lusardi (2018), who explained the intentional differences in entrepreneurship. Also, Khawar, Muhammad and Ishrat (2018); Jean-Pierre, Véronique and Sandrine (2017)show that perceived educational support moderates the entrepreneurial intention.

Similarly, the ndings from hypothesis two show that the personal attitude variable maintains a strong positive and signicant relationship with self- direction, effort, stimulation and proactiveness, respectively, as shown by their correlation coefcient of 0.238**; 0.572**; 0.021**; 0.243** and P values of 0.000; 0.000; 0.000; 0.000. The implication of this is that as the youth continue to intensify efforts in personal attitude towards the entrepreneur, the more it will be able to enhance and know more about the various ways by which these personal attitude variables can affect their entrepreneurial intention. Hence, since all the elements of personal attitude (such as self-direction, effort, stimulation and proactiveness) have a signicant relationship with entrepreneurial intention, there is a signicant association between personal attitude and entrepreneurial intention among youths in Ilorin West Local Government Area. The result corresponds with the study of Nayak, Marakala, Kamath & Saikrishna (2020); Ambad & Damit (2021).


The major nding of this study showed that the prior perceived educational support and personal attitude are signicant determinants towards entrepreneurial intention among youth in Ilorin West local government area.

I) The ndings revealed that their entrepreneurial education, which includes skills, knowledge, creativity, imagination, and attentiveness to chances, fosters drivers of entrepreneurial intention such as perceived educational support and personal attitude. This means that governments and




educators should think about additional variables to encourage young people to start businesses.

ii) In the same vein, personal attitude is the most signicant inuence on youth entrepreneurial intention to become entrepreneurs. Thus, it is crucial to nd a strategy to convince the youth of the advantages of being an entrepreneur.


Based on the results of this research and the conclusion drawn from, the following recommendations were made:

  1. Educational institutions should introduce and strengthen entrepreneurial education from an early age. That will assist in changing the attitude of many youths towards entrepreneurship.
  2. Government agencies should make youth entrepreneurship one of their core missions. In addition, religious leaders should emphasise the dignity of labour in their various places of worship. This will reduce the barriers to entrepreneurship and increase the entrepreneurial intention among youths in the State.




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1BUSARI, Lateefat Olatundun, 2BRIMAH, Amudalat Bolatito Ph.D.,

3HAMEEDAT, Bukola Olodo Ph.D.

1,2&3 Department of Business Administration, Faculty of Management Sciences, Al-Hikmah

University, Ilorin, Nigeria.




Poultry farming is practiced in Kwara State as it is done in the other states of the federation. An identified outstanding problem causing paucity in performance however, is the high degree of inadequacy in training of staff leading to a high number of incompetent staff. This research seeks to examine the impact of staff training on the performance of poultry farms in Ilorin West Local Government, Kwara State. A well- structured questionnaire was used to collect primary data through interview sessions. The validity and reliability of the instrument were. tested using Cronbach's alpha. Collected data were analysed using the Statistical Package for Social Sciences (SPSS) at 0.05 level of significance. Mean Pearson's Product Moment Coordinate Statistics were employed to test the hypothesis. The analysed data revealed that training has a significant impact on the performance of poultry farms in Ilorin West Local Government, Kwara State. It was found that training will make poultry staff to perform better. The study recommended that poultry farmers should improve upon the training of their staff for better performance, hence increase productivity.

Keywords: Poultry Farm, Employee Training, Performance.


Agriculture is one of Nigeria's major revenue generators (FAO, 2018). Agriculture is considered the backbone of the majority of the world's developing countries, according to Faostat (2018). It employs more than 40% of the working population on the planet. In Sub-Saharan Africa, Asia, and the Pacic, agriculture-dependent populations account for around 60% of the population, but only 18% and 4% of the population in Latin America and high-income countries, respectively (World Bank, 2018). It is an important part of the economy, employing more than 70% of the workforce (FAO, 2018). Improved agricultural productivity, according to Xie, Hu, Liangzhi, You, and Hiroyuki (2017), may not only improve food security, but also give more money and better




living conditions to Nigeria's enormous rural population. It is an important part of the economy, employing more than 70% of the workforce (FAO, 2018). According to Ashagidigbi and Dahunsi (2018), one of the main issues in Nigerian poultry industry is a lack of appropriate productivity and efciency in resource allocation and utilization by managers or owners. According to Kareem and Kin (2018), training is a vital aspect of an employee's development because some people lack information, skills, and competences and fail to perform task on time. Furthermore, training is a type of learning that focuses on acquiring certain skills and knowledge in order to obtain a job or career. (Hamid & Sa'ari, 2019). Employee training improves morale, condence, and motivation. It's crucial to remember that training programs that improve people's abilities and talents help them become more productive (Bapna, Langer, Mehra, Gopal, & Gupta, 2020). Individuals who enroll in such classes may be eligible for tuition reimbursement from organizations (Jehanzeb and Bashir, 2019). Training is an element of employee growth, according to Abbas, Hammad, Fahad, Cedar, and Rizwan (2018), because some employees lack knowledge, skills, and competencies and fail to complete assignments on time. Furthermore, training is a type of learning that focuses on acquiring specic knowledge and skills in order to obtain a job or vocation. Training and development have become necessary duties in most businesses because they produce excellent results in the same industry and are a vital component of human resource management. Training has a signicant impact on a company's success by improving employee performance (Mozael, 2019). Latham and Dello (2020) dene training as "planned activities aimed at increasing the development of relevant skills, information, and attitudes among organizational members." Training comprises lower-level staff and the presentation of more factual and concentrated subject matter, whereas development focuses on developing medium and upper-level management's decision-making and human-relations abilities.


Because it supplies labor and animal protein such as eggs and meat, the poultry industry is one of the most important sectors in the agricultural economy. Because it is one of the country's thirty-six states, Kwara is no exception. Low productivity, insufcient supply, inadequate record keeping, and a scarcity of competent personnel are among the difculties plaguing the chicken industry in Kwara State, notably in Ilorin West. The protability of any poultry farm is determined by the quality of its staff, but many poultry farms encounter numerous obstacles in maintaining that quality. In order to solve the issue of poultry employees, regular staff training programs must be developed in order to improve workers' skills and farm output. Furthermore, an early study found that farms face a lot of pressure in terms of nding qualied labor, constantly increasing production processes, bringing advanced technology, and employees who are motivated to achieve work-life balance, all of which necessitate ongoing staff training and development. The goal of this research is to:




1. Investigate the impact of staff training on the performance of poultry farms in Ilorin West Local Government, Ilorin.

Literature Review Concept of Training

Organizational effectiveness, as well as the individuals and teams that make them up, are the focus of training (Bransford and Brown, 2019). Training is linked to rapid changes in organizational performance through organized teaching, whereas development is linked to the achievement of longer-term organizational and personnel objectives. Despite the fact that training and development are conceptually separate concepts, they are commonly used interchangeably and/or in conjunction. Historically, training and development were considered a topic of applied psychology, but in the last two decades, they have grown increasingly linked to human resource management, talent management, and human resource management teaching methods, human factors, and knowledge management are only a few examples of development and organizational development (Cine and Caine, 2020). Dale (2021) denes training as a systematic method for people to acquire information and/or competence in order to achieve a certain goal. Training is dened as teaching and learning activities aimed at supporting members of an organization in obtaining and applying the knowledge, skills, abilities, and attitudes required by a certain job and organization.


In our ever-changing environment, employee and manager training is essential. It's an important human resource development exercise that helps employees enhance their skills Employees benet from training in a variety of ways, including better productivity and effectiveness, increased self-condence, and improved self-management for everyone. Staff training is always important for the organization's stability and performance. Each level of expansion and diversity necessitates more training. Only training can improve quality while reducing waste to a minimum. Adapting to a changing environment also necessitates training and growth.

Types of Training

Induction, on-the-job training, and off-the-job training are the three major categories of training, according to the British Broadcasting Commission (2021).

  • Induction: When a new employee starts working for a company, they are usually given an orientation to their coworkers, as well as additional training on any responsibilities, corporate regulations, and health and safety information.




  • On-The-Job Training: This is training that takes place in your workplace and is accomplished through coaching, job rotation, and demonstration.
  • Off-The-Job Training: This refers to training that takes place away from the workplace.

This instruction can occur in a variety of settings, including colleges and training centers.

Concept of Performance Successful organizations are more conscious that there are various elements that contribute to organizational performance, but human resources are denitely the most signicant, according to Bowra, Sharif, and Niazi (2020). Training boosts total organization protability, effectiveness, productivity, and revenue, according to Aguinis and Kurt (2019), as well as other outcomes that are directly linked to training in improving service quality. Human resources, according to Thang and Buyen (2018), determine an organization's success, not physical resources, and that increasing the company's training investments is highly recommended in order to provide superior expertise, knowledge, and features relevant to employees, rather than their competitor's training and organization performance link They also argued that non-nancial criteria including efciency, quality of service, organizational productivity, employee satisfaction, and dedication can be improved by training. Training boosts employees' potential to contribute to the organization's best performance, according to Olaniyan and Ojo (2018).

Theoretical Framework Theory of Reinforcement

This idea focuses on a person's learning activity and claims that if the action is linked to a favorable outcome or result, the learner will repeat it. Skinner (1979), a behaviorist economist, proposed the theory of reinforcement, stating that training and development programs should be related to organizational objectives and that a positive consequence should be expected. To expand on the notion supplied by reinforcement theory, it can be claimed that there are numerous strategies available in human resource practices that can be associated to training and development programs, thereby satisfying the desired recommendation provided by this theory various types of rewards, like as bonuses, salary increases, promotion, and certicate award during the training program, can be linked to training and development activities, and these rewards will almost certainly have a good inuence. According to Skinner's theory of reinforcement in the organization's employee training, if an organization performs this, the trainer, i.e. the employee, will develop more interest.





Abraham Maslow Theory of Motivation

Theories of motivation are collections of interconnected constructs, concept denitions, and propositions that present a systematic view of the phenomenon by specifying relationships among variables with the goal of explaining and predicting the phenomenon. They are concerned with inducing people to work to their full potential in order to achieve the organization's goals and objectives.


Prior to Maslow (2004), researchers concentrated on such elements as biology, achievement, or power to explain what energizes, guides, and maintains human action. Maslow proposed a human needs hierarchy based on two categories: deciency needs and growth needs. Each lower degree of decit needs must be addressed before going on to the next higher level. If a deciency is discovered after each of these requirements has been met, the individual will take action to correct the deciency.


Maslow's requirements hierarchy hypothesis is now one of the most widely accepted ideas of job motivation, although it wasn't always that way. Despite the fact that the ideas were published in the mid-1940s and were popular until the 1950s, Maslow's development work was mostly focused on clinical psychology. Maslow's need matching theory originated in the early 1960s as an appealing model of human behavior in businesses as greater emphasis was paid to the function of motivation at work. The model became extensively studied and utilized not just by organizational psychologists but also by managers as a result of its popularization by Douglas McGregor (2000, 2007).

Empirical Review

Nu'man, 2020 analyzed the link between training and individual performance in the university's Middle Management level, and contrasted upper management and middle management opinions on the training process in terms of effectiveness (dening the training needs, selecting trainers, designing training courses, and evaluating the training process). He divided the staff into two groups: administrative leadership, which comprised the president, vice president, general managers, and others, and (70) male and female employees. The second category is Taiz University's (middle management) program's (170) male and female managers and department heads. Only individuals who attended training courses were included in this study. The ndings demonstrated a dearth of novel training approaches, with an emphasis on traditional training methods. The ndings also demonstrated that the trainees' selection procedure is weak, with no clear selection standards. Favoritism and personal opinions are




factors in the selection of trainees, which has a negative inuence on the training process. Nu'man also revealed that the training assessment system is ineffective, lowering the institution's prot rate from delivering training courses.

Staff training programs at River State University of Science and University of PortHarcourt in Nigeria were studied by Adeniji, Badalona, and Adeniji (2018). The researchers distributed questionnaires to university librarians, and the results indicated that the success or failure of a training program is highly reliant on the educational level of staff members and the competence they received from the training. The inuence of staff training on job performance was explored by Bin, Atan, Raghavan, and Mahmood (2018). The study was carried out at a Malaysian small and medium-sized enterprise (SME). The research looked at the training component as it relates to the company's workers' work performance. The functional area associated with the company's successful human resource management practices, including training and employee job performance, has been examined. Through a questionnaire, 85 workers from the company's various manufacturing facilities willingly participated in the study. There is a denite correlation between effective training and employment performance, according to the conclusions of the study. Diamantidis and Chatzoglou (2019) used an integrated research model that combined the main factors that existing literature has shown to be related to training transfer, as well as the relationship between training transfer and operational performance, to investigate the medium- to long-term effects of training programs on rms. Training design, trainee selfefcacy, and work environment were the study's transfer aspects. The validity of this model is tested using data from 126 workers who participated in various training programs at a range of Greek companies using the structural equation modeling approach. The data demonstrate that posttraining job performance is most inuenced by the design of a training program, as well as trainees' self-efcacy and post-training behavior.


Al-Awawdeh (2018) performed a statistical investigation of the links between training methods and employee performance. The purpose of the study was to determine the potential inuence of key personnel performance, as outlined in the theoretical part. The SPSS simple regression approach was used to investigate the independent variables, training system, training, and impediments. A total of 120 administrative department workers at Al al-Bayt University were picked from a pool of 651. The ndings demonstrated that all independent factors had a statistically signicant impact on performance, as well as a statistically signicant impact on morale. The transaction effect on the two independent performance indicators was likewise positive. According to the study's ndings, scientic approaches are needed to analyze the training needs of workers at Al-Bayt University, as well as work on establishing training programs that focus on practice challenges and attempt to resolve them.





The study's population comprises of all poultry managers in Ilorin West, Ilorin, and Kwara state. According to ADP data, there are 95 registered poultry farms in Ilorin West Local Government. A simple random sample procedure was utilized to pick 77 respondents from Ilorin West Local Government's chicken farms (out of 95). This was achieved with the Taro Yamane Formula.


A descriptive survey design is the core of the project. Training was the independent variable (IV), while poultry farm performance was the dependent variable. Goal-setting, higher standards, greater market share, trusted relationships, personnel attractiveness, creation of creative solutions, and service quality were all used to evaluate the success of chicken farms. A wellstructured questionnaire served as the data gathering tool. The questionnaire was designed to be brief and straightforward. According to the interview schedule, the questionnaire was completed. Cronbach's reliability was used to assess the instrument's trustworthiness. Job rotation, coaching, on-the- job teacher, internship training, and committee assignment are all predictor. With Cronbach's alpha values of 0.7321 (14 items) and 0.7523 (7 items) for staff training and poultry farmer performance, respectively, it is clear from that the Alpha values are greater than 0.700, indicating good reliability and consistency.

In this investigation, the following hypothesis is being tested:

Ho1:   Staff training has no signicance impact on performance of poultry farms in Ilorin west local government.

The nding shows that those that 9.1% of the respondents is below 5 years of age while those between 16 to 20 years are with the highest percentage of 55.8%.

The hypothesis investigates whether training has a substantial inuence on chicken farm performance in the Ilorin West Local Government. To test the hypothesis, the dependent variable (farm performance) was regressed on the independent variable (training). Training has a big impact on the outcome. Poultry farm performance F (1, 76) =38.364, P-value 0.05, suggesting that training can have a substantial impact on poultry farm performance (=0.0334, P 0.05).


These ndings show that training has a favorable impact on the performance of poultry farms in the Ilorin West Local Government.

Furthermore, the R2 0.134 indicates that the model explains 13.4% of the variance in poultry farm performance in Ilorin West Local Government.




Discussion of Findings

It was observed that training has a signicant inuence on the performance of poultry farms. As a result, one of the important responsibilities for maintaining the performance of poultry farms in the Ilorin West Local Government has been identied as training. Poultry farmers' performance is thought to be improved through training.

Conclusion and Recommendations Conclusion

According to the conclusions of the study, there is a favorable and substantial association between staff training and poultry farm performance. Furthermore, this research showed a strong link between training and the performance of chicken farms.


The study investigates the impact of staff training on the operation of chicken farms in the Ilorin West Local Government. A questionnaire was used to collect data from 77 respondents who were chosen at random. The study looked at the effect of employee training on the performance of chicken farms. The instrument was put to the test, and it was found to be accurate and dependable. A simple linear regression analysis was used to examine the inuence of staff training on the performance of chicken farms. Staff training, according to the data, has a positive inuence on the performance of poultry farms.


Based on the study's ndings, the following recommendations were made:

  1. Poultry managers should establish a training program for their personnel in order to improve their performance.
  2. The government should fund subsidized training programs for poultry employees in order to expand their capacity for producing poultry birds, are also an important protein source.





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By Ogbeifun, O.B.


Ogbuji, C.N.

Department of Marketing, Faculty of Management Sciences, University of Port Harcourt This email address is being protected from spambots. You need JavaScript enabled to view it.




The aim of this research was to empirically examine the nature of relationship that exists between viral marketing dimensions and consumer attitude towards cosmetic products in Rivers State. The study was anchored on epidemiology theory and Theory of Reasoned Action. While cross-sectional survey design was used in accessing the study's subjects, its population comprise of staff of selected universities in Rivers State. A total of 4 hypotheses were proposed and tested with Pearson Correlation Coefficient statistical tool. Results revealed positive and significant relationship between the dimension of viral marketing (informativeness and source credibility) and the measures of consumer attitude (cognition and conation). It was concluded that viral marketing has become a veritable marketing tool to achieve competitive advantage and low cost expenditure. Based on the above findings and conclusions, the study therefore recommends that businesses and marketers most especially in the cosmetic industry in River State to emphasized more on quality of information when the messages are delivered through the viral marketing tools so as to positively influence consumer's attitude.

Key Words:        Viral Marketing, Consumer Attitude, Cosmetic products.


The cosmetic industry is a vital global industry and has always been one of the most competitive commercial spaces that offer opportunity for new entrants as well as existing rms (, 2017 as cited in Koponen, 2017). Cosmetic products have become daily necessities; almost all modern people use some of these products every day such as toothpaste, shampoo, soap, etc. (Sahota, 2014). Many people know the signicant effect of their personal appearance on how they are regarded and treated by others. Therefore, advertising can play on




those concerns by encouraging the target market to be concerned about signs of aging or making themselves more attractive to the opposite sex. For example, some cosmetics campaigns, like those embraced by Avon and Dove, may emphasize the ability of a product to reduce wrinkles or to give potential consumers a more youthful appearance (Kim & Mauborgne, 2001).

Cosmetic brands across the world are now increasing their online presence as the tools and approaches for communicating with customers have changed greatly with the advancements in technology and social media emergence (Mangold & Faulds 1999 as cited in Low & Goh, 2009). Presently, people of various ages tend to spend increased time on virtual world rather than in real world. The internet is now the new way of life for many Nigerians to get their news, book travel reservations among other activities (Al muala, 2018). The created space has provided some threats and opportunities for companies and has forced marketers to use alternate strategies due to the changes of consumers that have started to resist traditional marketing tools like magazines, radio, television commercial et cetera (Leskovec, Adamic & Huberman, 2007). It has also caused advertisers and marketers to adopt a more innovative strategy to reach the customer in his virtual world. This reach is possible with advancements in communication technology through which there is evolution of new electronic word of mouth (eWOM) which is called viral marketing. It is a technique where individuals are encouraged to spread marketing message over the internet and is termed viral marketing because it spreads like a virus. It is one of todays most powerful and effective marketing tools in this new online marketing environment. Viral marketing that once was believed merely as a casual tool has now become a key to achieving result in marketing operations (Olannye & Onobrakpeya, 2017). In area of marketing theory, it is a current subject which has not be investigated thoroughly. Today, viral marketing has become a major marketing tool used by

rms in different industries which comprise Unilever, Nike, Coca Cola, 7up, Microsoft, Philips, Sony, Ford, BMW, Procter and Gamble and Volkswagen etc. According to Aldridge, Forcht and Pierson (1997, as cited in Ler Sin Wei, 2014), many rms had realized the importance of this tool and how inuential it is to make them to have competitive advantage over their rivals. Nevertheless, the buyers' attitude in relation to viral marketing is varied and uncertain that it is a barrier for them.

Consumer attitude is combination of a consumer's beliefs about, behavioral intentions, and feelings toward objects which are within the marketing context like a commodity type or seller shop (Perner, 2010). Attitude can be generally dened as a continuing organization of cognitive, perceptual, emotional and motivational methods in line to some feature of our surroundings (Hawkins, Best & Coney, 2004). Ler Sin Wei (2014) had explained it in a more specic way that attitude refers to negative or positive sentiments and knowledge about an activity or object. He also stated that attitudes serve main purpose for an individual which is knowledge function, as a means of organizing beliefs about



activities or objects. The meaning of attitude to advertisement of assumptions is the perceptions and feeling of the viewer to the observed advertisement. The positive attitude exists when the consumers considers advertisement as a guide to facilitate the purchase process and increase of selection power and awareness, while negative attitude to advertisement occurs when the consumers consider the advertisements as false (Darabjerdi, Arabi, & Haghighikhan, 2016). There are three components of attitude, namely: cognition-affection-conation. In this research, attitude will be measured using cognitive and conation components. Cognitive is the thinking of the consumers while conation is the action taken by the consumers (Amue & Zorbari-nwitanbu, 2018).

A lot of studies has been done in relation to viral marketing with different dimensions and have been conducted almost wholly in the foreign contexts, and none has addressed the relationship between this tool and consumer attitude in relation to cosmetic products in Nigeria. The acceptance of viral marketing by consumers is very crucial; therefore, this study intends to use two of the similar dimensions of viral marketing used by Zernigah and Sohail (2012) which are informativeness and source credibility, and also focus on the cosmetic products in Rivers state. Thus, the present study seeks to ll the literature gap by empirically investigating the relationship between viral marketing and consumer's attitude in relation to cosmetics in Rivers state. This therefore serves as the point of departure.

The internet has caused a revolution in today's advertising and has changed buying habits and consumer behavior which has started to resist the traditional old way with television, radio and commercial newspapers. This revolution is more evident in the cosmetics industry, and has made consumers to experience cosmetic brands in a unique dimension and has caused their role and purchasing power to increase greatly. Presently, buyers hope for a two-side communication mostly in the cosmetic industry. Therefore, with certainty that social media is something that business can no longer ignore, the created space has provided some threats and opportunities for cosmetic companies and has forced them to adopt a more innovative alternate strategies to reach the customer in the virtual world; this is because presently people tend to spend increased time on virtual world rather than in the real world. As a result, many rms and marketers are now taking advantage of this situation by using viral marketing to promote their products, thus fuelling our interest in this topic.

Nevertheless, the buyers' attitude towards viral tool is varied and uncertain that it is a barrier for them. In order to make a successful marketing program, it is essential for marketers of cosmetic products to study the consumers' attitude so that they would be familiar with the psychology of consumers. As viral marketing practices is still at an early stage of development in this part of the world, it is therefore imperative to investigate its importance as it concerns buyer attitude in relation to cosmetic products in Rivers State. It was against this backdrop the




current research was undertaken to unravel the connection between the two variables in relation to cosmetics in the Rivers State.

The variables for this study are viral marketing (VM) (independent variables) and consumer attitude (CA) (dependent variable). Therefore, the dimension for the independent variable is informativeness (IF) and source credibility (SC). However, the measures for the dependent variables are; cognition (COG) and conation (CON).

Literature Review Theoretical Framework

The study adopted the epidemiology theory and Theory of Reasoned Action. As described in epidemiology theory, in the marketing context going viral may mean a situation where the marketing message is broadly received by the target market through person-to-person transmission. When a marketing message goes viral, it is similar to an epidemic in that the message moves through a population by propagation through social networks in a relatively rapid and self-replicating manner. There exists a direct correlation between the customer-to-customer propagation of a viral message and the transmission of a contagious disease within a densely populated environment (Sohn et al., 2013). It appears that the components of the most popular disease transmission model in epidemiology offers many insights and a clear mental model as guidance.

Theory of Reasoned Action (TRA), also known as Fishbein Behaviour Intentions Model is the most widely known model that measures the relationship between attitude and behavior and can be used to predict behavior (Ajzen & Fishbein, 1980, as cited in Lis & Schulz, 2014). Fishbein hypotheses states that a persons behavioural intensions are determined by an attitudinal or personal component and normative or social component. The person's attitude component or attitude toward the act, refers to personal judgement of behavior, whereas the normative or social component refers to social pressure on behavior such as expectations of others (De Moji, 2004, as cited in Ozuru et al., 2015).

Concept of Viral Marketing

Viral marketing is an online marketing method that encourages individuals to pass on a marketing message to others (Devi, 2015). Also, viral marketing is a marketing strategy that concentrates on spreading information and opinions about a product or service from person to person, especially by using unconventional means such as the Internet (Olannye and Onobrakpeya, 2017). The Word of Mouth Marketing Association (2007 as cited in Low & Goh, 2009) dened viral marketing as a kind of word of mouth that involves designing entertaining or informative messages that are structured to be passed along in an




exponential way or frequently electronically. Furthermore, Sohn et al., (2013) also sees the word 'viral' as a type of marketing that inuenced the customers using a marketing message that shares from one customer to another like an unrestrained inuenza virus. People are able to share product information through viral marketing tools that indirectly helps the company to enhance brand awareness. There are several ways whereby company can interact with consumers through viral marketing tools which include SMS, blogs, forums, video websites, chat rooms, social networking and e-mail in viral marketing (Petrescu, 2012; Wang, 2018).


Informativeness is able to change recognition, attitude, satisfaction, and effect of the providing resource. It perception is considered as the evaluation of people whether all of information that they receive is useful or useless. With advertising, informativeness plays a crucial role in determining the effectiveness of message conveyed to customer as well as inuences on customer's attitude, helps them to decide to purchase (Wang, 2018). In order to get positive attitude of consumer, advertisement should consist of interesting and useful information that meet their reference, because they have tendency to concern on reading message that are relevant for their prots (Ler Sin Wei, 2014). Therefore, a communication form covering useful information regarding the current product or service would raise the awareness of customer and receive positive respond to marketing (Saadeghvaziri & Hosseini, 2011). Informativeness can be dened as the usefulness of the information and how up-to-date the information is (Ler Sin Wei, 2014). Marketing plays a key role in conveying information (Ling, Piew & Chai, 2010). According to Ler Sin Wei (2014), there is a positive relationship between informativeness and consumers attitude. Hence, quality of information should be emphasized when the messages are delivered through the viral marketing tools.

Source Credibility

Source Credibility relates to the trust of receiver towards the source of information (Wang, 2018). In some studies, the researchers mention credibility as trustworthiness and also link to perceived risk. The perceived risk will be low, if the information comes from trusted source. Haghirian, Madlberger and Tanuskova (2005) stated that the value of advertisement would impact on recipient more strongly, if they perceived highly credibility of the advertising. The source of message communication can be judged by the customer through website or social networks (that supply the advertising) reputation and reviewer or friend (the person who share advertising on social media). Furthermore, some studies acknowledged that there is a positive relationship between consumer perceptions of the source credibility and consumer attitudes towards marketing (Ler Sin Wei, 2014; Wang, 2018).




Consumer Attitude

Fishbein and Aizen (1975, as cited in Asiegbu et al., 2012), stated that attitude is a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object. Krech et al (1962, as cited in Asiegbu et al., 2012), dene an attitude as a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea. Kotler (2004, as cited in Asiegbu et al., 2012) observes that people have attitudes toward almost everything: religion, politics, food, music, clothes, and others. Attitudes put them into a frame of mind of liking or disliking an object, moving toward or away from it.

Perner, (2010) concluded that an attitude is the way we think, feel, and act toward some aspect of our environment such as a retail store, television program, or product. According to Chisnall (1975, as cited in Asiegbu et al., 2012) attitudes may be acquired or modied by inuences arising from four principal sources: information exposure, group membership, environment, and want satisfaction. Consumer attitudes are both an obstacle and an advantage to a marketer.


Cognition attitude involves the awareness, knowledge, identication and consciousness of the existence of a thing or an object. Attitude can be formed towards something a consumer is aware of. In other words a consumer cannot develop attitude for something he or she does not know or exist. The cognition component of a consumer's attitude is a function of the information available to him. Attitude is developed through conscious awareness of the existence of an object or a thing (Amue & Zorbari-Nwitanbu, 2018).


Conation attitude is the action towards the object identied either favorably or unfavorably. This is the actual purchase of the product. The conative component reects behavioral tendencies toward the attitude object. In marketing and consumer research, this component is frequently treated as an expression of the consumer's intention to buy. Behavior involves the person's intentions to do something with regard to an attitude object. The behavioral component of an attitude is one's tendency to respond in a certain manner toward an object or activity (ZorBari-Nwitambu & Kalu, 2017).

Viral Marketing and Consumers' Attitudes

Viral marketing is a strategy encouraging people to send the advertising messages to each other through the internet. In this marketing, advertising




message is spread as a virus among people (Beverland, Dobelee & Farrelly, 2014). As the name suggests, Viral marketing works on the principal of a virus and speedily spreads it inuence just within a short period of time. One example of viral marketing is encouraging current and potential customers to tell others about the company's products and services, and in turn encouraging those others to tell even more others. Many studies have been carried out in the area of viral marketing and consumer purchase behavior. As stated earlier, despite the varying dimensions of viral marketing, this research used informativeness and source credibility as dimensions of the construct.

Informativeness and Consumers' Attitudes

Viral marketing messages that include personalized and modied information which go with consumer fondness will bring the result of their positive attitude towards viral marketing (Reyck & Degraeve, 2003, as cited in Wang, 2018). In general, it has been believed that perceived informativeness of consumers is an essential aspect which may inuences consumers' attitude towards viral marketing. Previous research established that the strongest signicant aspect on consumers perceptions and attitudes is informativeness of the viral marketing message (Haghirian et al., 2005). Besides, Oh and Xu (2003) found that the marketing message will be taken as important as long as it provides information and in consequence generates some advantage and assistance to the consumers. Also, Bauer et al (2005) identied information value as one of the strongest drivers of positive attitudes towards viral marketing which leads to the behavioral intention to use viral marketing tools when viral marketing messages are providing a high information value. Based on the previous literature, the following hypothesis is proposed:


Ho1:  There  is  no  signicant  relationship  between  informativeness  and consumer's cognition towards cosmetic products in Rivers state.


Ho2:  There  is  no  signicant  relationship  between  informativeness  and consumer's conation towards cosmetic products in Rivers state.

Source Credibility and Consumers' Attitudes

Usually, consumers tend to ignore or delete the messages that sent out by unreliable source due to suspect and untrustworthy on the particular media or brands (Phelps, Lewis, Mobilio, Perry & Raman, 2004). People avoid messages from viral marketing due to the lack of credibility towards the medium and untrustworthy of the marketers. Consumers tend to show the lack of trust towards several media due to the reason that many of them have the perception that the marketers are often dishonest which directly lead them to resist providing their personal information for marketing purpose (Kelly et al., 2010). Many studies and researches had implied that there is a strong association that




has been afrmed between source credibility and consumers' attitudes towards viral marketing. Based on the credibility concept within the viral marketing context, it was established that consumers' attitudes of the source credibility of viral marketing are positively related to consumers' attitudes towards viral marketing (Haghirian et al., 2005; Waldt, et al., 2009). The perceived source credibility may lead the consumers to have positive attitude towards viral marketing. Based on the previous literature, the following hypothesis is proposed:


Ho3:  There  is  no  signicant  relationship  between  source  credibility  and consumer's cognition towards cosmetic products in Rivers state.


Ho4:  There  is  no  signicant  relationship  between  source  credibility  and consumer's conation towards cosmetic products in Rivers state.


This study adopted a cross sectional research design; hence copies of questionnaire were distributed to staffs of University of Port Harcourt and Rivers State University using simple random sampling. Based on the information that there is total number of 6757 staff in the two universities, therefore the Krejcie and Morgan table was used to determine the sample size of 382. Cronbach's Alpha test was done in order to ascertain the reliability of the instrument. Lastly, two levels of data analyses were carried. The rst was at the primary level, which adopted descriptive statistics such as tables, charts, graphs, etc. On the other hand, Pearson Correlation Coefcient was adopted at the secondary level in testing the three hypotheses as proposed earlier in the study. It is important to mention that all data analyses were done with the help of SPSS (Version 21.0).

Data Analysis and Discussion

From the output of reliability test statistics obtained, Cronbach's Alpha >0.70 shows that, the instrument (variables) have accepted reliability test scores. In addition, since Cronbach's Alpha >0.7 (base on the decision-making in the reliability test), we can say that the research instrument is acceptable.

Hypothesis One

Ho1:  There  is  no  signicant  relationship  between  informativeness  and consumer's cognition towards cosmetic products in Rivers state.


Ha1:   There is a signicant relationship between informativeness and consumer's cognition towards cosmetic products in Rivers state.





Correlation between informativeness and consumer's cognition

The test of hypothesis one reveals that Signicant level (Sig) = 0.000 which implies that (Sig<0.01) while Pearson Correlation coefcient (rho) = (0.875) also indicates that informativeness has strong and positive correlation with consumer's cognition. We therefore reject the Null hypotheses and accept the alternative hypotheses which state that there is a signicant relationship between informativeness and consumer's cognition towards cosmetic products in Rivers state.

Correlation between informativeness and Consumer's Conation

The test of hypothesis two, reveals that Signicant level (Sig) = 0.000 which implies that (Sig<0.01) while Pearson Correlation coefcient (rho) = (0.880) also indicates that informativeness has strong and positive correlation with consumer's conation. We therefore reject the Null hypotheses and accept the alternative hypotheses which state that there is a signicant relationship between informativeness and consumer's conation towards cosmetic products in Rivers state.

Correlation between source credibility and Consumer's cognition

The test of hypothesis three, reveals that Signicant level (Sig) = 0.000 which implies that (Sig<0.01) while Pearson Correlation coefcient (rho) = (0.882) also indicates that source credibility has strong and positive correlation with consumer's cognition. We therefore reject the Null hypotheses and accept the alternative hypotheses which state that there is a connection between source credibility and consumer's cognition towards cosmetics.

Correlation between source credibility and Consumer's Conation

The test of hypothesis four, as shown in Table 4.6 above, the SPSS output reveals that Signicant level (Sig) = 0.000 which implies that (Sig<0.01) while Pearson Correlation coefcient (rho) = (0.832) also indicates that source credibility has strong and positive correlation with consumer's conation. We therefore reject the Null hypotheses and accept the alternative hypotheses which state that there is a connection between source credibility and consumer's conation towards cosmetics.




Discussion of Findings

Relationship between Informativeness and Consumer Attitude

From the hypothesis tested, the results are however discussed based from the context of existing literature on Informativeness and Consumer Attitude. However, the outcome of our analysis from hypothesis one and two (H01, H02) showed that there exist a signicant relationship between Informativeness and Consumer Attitude of cosmetics products in Rivers state, with the results showing 0.875 and 0.880 respectively. This therefore conforms to the ndings of Wang, (2018); Bauer et al (2005); Haghirian et al., (2005).

Relationship between Source Credibility and Consumer Attitude

From the hypothesis tested, the results are however discussed based from the context of existing literature on source credibility and consumer attitude. However, the outcome of our analysis from hypothesis three and four (H03, H04) showed that there exist an important and positive connection between Source Credibility and Consumer Attitude towards cosmetics in the state, with the results showing 0.882 and 0.832 respectively. This therefore conforms to the ndings of Haghirian et al., (2005); Waldt, et al., (2009); Wang (2018); Dao et al.

Conclusions and Managerial Implications

Research ndings showed that there is a signicant and positive relationship between the viral marketing with its dimensions (informativeness and source credibility) and consumer attitude with its measures (cognition and conation). Therefore, it is an advantageous suggestion for businesses and marketers most especially the cosmetic rms and marketers in River State to emphasized more on quality of information when the messages are delivered through the viral marketing tools and also used sources that are trustworthy so as to positively inuence consumer's attitude.






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Department of Business Administration, Faculty of Management Sciences,

Al-Hikmah University, Ilorin, Nigeria


Corresponding Author:This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.




Businesses constantly face risk, after all settling up a business in the first place is a risk. However, risk management assist businesses in anticipating, preventing and mitigating risk. Risk management is an important part of the management strategies of all entrepreneurs. The goal is to increase the maximum sustainable value of the business This study examined the technical and operational strategies used in managing an unforeseen risk on businesses survival in Nigeria. To achieve these objectives, data was collected from primary sources with the use of a well-structured questionnaire of two sections administered to the staff of Al-Hikmah University Water Factory in Ilorin, Kwara State. The population size was 10. Survey research design was used. The collected data were analyzed using regression analysis with the help of Statistical Package for Social Sciences (SPSS). The study findings revealed that policies have positive effects on (longevity) business survival. The study concludes that there is a relationship between policies and business and these polices have an effect on (longevity) business survival. The study recommends that management should carefully consider policies before implementation as these policies have an effect on business survival.


Keywords: Operational Risk Management, Business Survival, Water.






Every business manager must have the necessary assurance on the possible growth and survival of enterprises being embarked upon after all the risks must have been factored in and adequately evaluated (Inang & Ukpong, 2002).Setting up a rm in Nigeria necessitates a thorough assessment of the country's unique risks, which can only be recognized with a thorough understanding of the country's economic structure (Agarwal, Priya & Bhuvaneswai, 2005). Individuals and organizations both face risk in the workplace. Various dangers, such as re, getting hit by another vehicle on the road, being ooded during the rainy season, and so on, can prompt us to ee.


Risks are events or conditions that could jeopardize the achievement of an organization's aims and objectives. The purpose of entrepreneurship, as we all know and agree, is to establish and expand competitive advantage in the rm. Risk management operations are inextricably linked to the activities of a corporate entity or rm.


The creation and implementation of procedures to manage a company risk is known as risk management. Risk management is the preparation for the more complicated actions of commercial units or enterprises, which are caused by scientic and technical advancement (Kasidi, 2010). Risk is a state of uncertainty that can result in a loss. So, based on some of the denitions given, risk is something that is unpredictable yet can affect a rm if not handled effectively.


Business survival is crucial in determining whether a company will succeed or fail. Business survival, on the other hand, permits businesses to identify important problem areas and change accordingly. Business survival research is signicant because it examines not only the primary nancial and non-nancial aspects that inuence success or failure, but also other departments, performance management, performance processes, and employee welfare (Ling & Hung, 2010). Finally, risk management is a proactive system that examines potential risks and establishes procedures and methods to improve the rm's ability to avoid or reduce the effects of risk processes. Risk management is the process through which a company can assess risks, evaluate them, and devise strategies to control or maintain them at an acceptable level (Berg, 2010).


For all entrepreneurs, risk management is a crucial aspect of their management methods. The identication of solutions to deal with risk is at the heart of good risk management. The goal is to increase the company's maximum long-term worth. Risk management raises the chances of success while lowering the chances of failure and uncertainty in achieving the company's ultimate




objectives. The Al-Hikmah University Water Factory is experiencing a number of operational issues, including a drop in production owing to defective machine(s), raw material nishing before restocking, and so on. Risk management should be long-term, with processes that t with the whole organization's strategy and implementation.


According to Hillson (2006), risk is recognized and regarded as inescapable and unavoidable in every sector of human endeavor, and there is a corresponding drive to mitigate risk as much as feasible. According to Pavodani & Tugnoli (2005), there are several factors that contribute to the current relevance of risk management. To begin with, the increased volatility and rivalry that organizations face in this era has compelled them to employ some sort of risk awareness. According to Pavodani & Tugnoil (2005), the factor adds new hazards while also increasing the effect and frequency of existing dangers. As a result, risk management is now recognized as a continuous and formalized process that complements and integrates with other activities in the organization, which may be a more appropriate approach to the reality that organizations face. The objective of this study is to investigate the relationship between people and business survival of Al-Hikmah University Water Factory and to examine the effect of policies on business survival of Al-Hikmah University Water Factory.

Literature Review Concept of Risk

Risk has been described in a variety of ways, according to Rosa (1998) in Habegger (2008), which are virtually never totally accurate or untrue, but are valuable tools for abstraction and identifying common focal points. A dictionary denition of risk is "the possibility of injury, damage, or loss" (Habegger, 2008). Risk would no longer be predetermined, but rather susceptible to human agency (Habegger, 2008). Furthermore, the concept's signicance in both technical and non-technical situations. As a result, the term "risk" can have a variety of interpretations in technical contexts, ranging from "the cause of, the probability of, or an unpleasant event that may or may not occur" to "a decision that has been made under the condition of knowing probabilities.”

Characteristics of Risk

There are various classications that focus on and reect the causes of risk, according to Vaughan (1997). As a result, and for the purposes of this study, the following classications were chosen:





  • Financial and non-financial considerations: The denition of risk in this sense, according to Vaughan (1997), would encompass nancial loss or consequences, but not necessarily nancial effect. As a result, nancial risk is dened as the relationship between an individual (or an organization) and an asset (or simply the anticipation of an income) that is at danger of being lost or damaged.According to Vaughan (1997), nancial risk consists of three components: (1) the person or organization who is at risk of losing money, (2) the asset or income whose destruction or dispassion will result in nancial loss, and

(3) a peril that can result in the loss.

  • Dynamic and Static: Under this classication, risk is caused by dynamic changes in the economic environment and is dependent on both the evolution of external variables such as the economy, competitors, industry membership, and consumers, as well as internal organizational actions (Forestieri, 2003).Dynamic risks, on the other hand, would generally benet society in the long term because they are the outcome of resource misallocation adjustment (Vaughan, 1997). Dynamic risk, on the other hand, could inuence a large number of people and be perceived as less predictable than static risk because it does not occur on a regular basis. Static risks, on the other hand, are those that are not dependent on an assessment of the competitive environment in which the business operates, but instead rely solely on the entity's internal elements. Static hazards, unlike dynamic risks, are predictable and occur on a regular basis. The indicated principles of dynamic and static risks, according to Pavodani & Tugnoli (2005), would supply the fundamental elements for reasoning on the transferring process of risks through the insurance market.


  • Systematic and Diversified: The main macroeconomic factors, such as the general trend of the economy (measured, for example, by GDP variation) and the trend in market interest rates and ination, are sources of systematic risk (measured, by the variation of the index of consumer prices). The sources of systematic risk are sometimes summed by a single systematic risk element, market risk.As a result, risks that are not linked to sources of systematic risk are those that can be diversied (Vaughan, 1997).


  • Pure and Speculative Risk: Speculative risk is generally described in the literature as a situation in which there is a chance of losing or gaining money. As a result, these risks would not be insurable because they would involve a speculative procedure that could result in a prot (upside risk) but could also result in a loss (downside risk) (Pavodani & Tugnoli 2005). Pure risk, on the other hand, is used to describe circumstances in which there is only a chance of loss or no loss.The chance of loss associated with the ownership of property or any item




is one of the best examples of pure risk. In that instance, someone who buys a car, for example, is instantly confronted with the prospect that something will happen to harm or destroy the car (Vaughan, 1997).


  • Fundamental and Specific Risks: The difference between fundamental and particular risks is based on the genesis and effects of the losses. Fundamental risks, in this view, are those that involve losses that are impersonal in origin and consequences (Culp 2001 in Pavodani & Tugnoli 2005).As a result, these types of hazards are generally produced by economic, social, and political factors, albeit they may also be induced by physical events. Because fundamental hazards are generated by circumstances outside the control of those who experience loss, and because they are not the fault of anyone in particular, it is believed that society, rather than the individual, bears responsibility for dealing with them (Vaughan, 1997). Fundamental dangers would thereby affect a large portion of the population. Individual losses, on the other hand, are referred to as particular hazards since they occur in individual events and are experienced by individuals rather than groups.As a result, specic hazards are seen to be the responsibility of the individual, rather than a worry of society as a whole (Vaughan, 1997).


  • Core and Non-Core: The risk that is inherent to the type of activity conducted by the organization is the core of business risk. This type of risk, in this context, would be one that could not be transferred and would have to be managed internally by the company. As a result, these types of risks could become a source of anticipated revenue or return to the rm (Forestieri, 2003 in Pavodani & Tugnoli, 2005).As a result, core or business risks can be managed primarily through strategic decisions. The latter would imply, for example, deciding which industries and markets to invest in, implementing centralization policies, and selecting vertically integrated or outsourcing techniques, among other things. Non-core risks, on the other hand, are those to which the organization is exposed as a result of any operational activity. As a result, non-core risks could be addressed by strategic solutions or suitable nancial and insurance transfer mechanisms.


  • Strategic and operational risk: Most researchers that discuss the idea of comprehensive or enterprise risk management (Drennan & McConnell, 2007; Fone & Young, 2005; Lam, 2003; Olson & Desheng, 2008; Sadgrove, 2006, to name a few) distinguish between strategic and operational risk. Strategic risks, according to these authors, are concerns that demand businesses to think on a larger scale. As a result, these risks would be controlled at the board level and would necessitate strategic planning (Sadgrove, 2006).For example, in local government, this would be the case for elected members, who would ensure that the proper policies, procedures, and delegations are in place, as well as that risk is appropriately managed inside the institution. On the other hand, while




operational hazards would necessitate the engagement of the organization's highest levels, they would be implemented at a lower level (Sadgrove, 2006). In that case, operational risks would be present in the organization's day-to-day functions and services. As a result, such risks could arise from the people, property, or processes involved in providing the services that the company expects or requires.

Types of Risk

Risk is divided into two categories: systematic risk and unsystematic risk (Gaurav 2012).

vSystematic Risk

Systematic hazards are macro in nature and are unmanageable by an organization. The impact of external pressures on an organization causes systematic risk. From an organizational sense, such factors are usually uncontrollable. It is macro in nature since it has an impact on a huge number of organizations that work in a comparable eld. The following are examples of systematic risk sources:


Interest rate risk: is a risk that results from the inconsistency of interest rates over time. It mostly concerns debt securities, which have a set interest rate. Price risk is one example.


Market risk: is the risk of a stock's or security's exchange price uctuating on a regular basis. It occurs when the trading price of listed shares or securities on the stock exchange market rises or falls. Absolute risk, relative risk, directional risk, non-directional risk, basis risk, and volatility risk are some examples.


Purchasing power risk: is another name for inationary risk. This is because it stems from the fact that it has a negative impact on purchasing power. Investing in securities during an inationary environment is not a good idea. Demand ination risk and cost ination risk are two examples.

vUnsystematic risk

Internal elements that are prevalent within an organization might cause unsystematic risk. From the perspective of an organization, such issues are frequently within its control. It is micro in nature because it only affects one organization. It can be prepared for so that the organization can take the appropriate steps to mitigate (i.e. lessen the impact of) the risk. The following are examples of unsystematic risk:




  • Business or liquidity risk: Business or liquidity risk arises from the trading of securities, which is inuenced by business cycles, technology advances, and other factors. Asset liquidity risk, for example, is dened as losses resulting from the inability to sell or pledge assets at their carrying value when needed. The risk of not having enough funds to make a payment on time is known as funding liquidity risk. 2013 (Papadamou & Tzivinikos).


  • Financial or credit risk: Financial or credit risk is a term that refers to the possibility of losing money. It develops as a result of changes in an organization's capital structure. The capital structure is primarily made up of three methods for obtaining funds for projects. This is what they are: Share capital, borrowed funds such as loan funds, and retained earnings such as reserve and surplus are all examples of owned funds. Exchange rate risk, also known as exposure rate risk, is a type of risk that involves the risk of a change in the value of It is a type of

nancial risk that results from a potential change in the exchange rate of one country's currency in relation to the currency of another country, and vice versa. For example, when investors or enterprises have assets or operations that cross national borders, or when they have loans or borrowings in a foreign currency, they face this risk. Recovery rate risk is a facet of credit risk analysis that is sometimes overlooked. In most cases, the recovery rate is required for evaluation. For example, the predicted recovery rate of cash tendered (given) to consumers as a loan by banks, and so on. The government is linked to sovereign risk. In this case, a government is unable to satisfy its nancial obligations, and is reneging (breaking a pledge) on loans it guarantees, among other things. When a counterparty fails to deliver a security or its value in cash as agreed upon in a trade or business transaction, settlement risk emerges.


  • Operational risk: Operational risk refers to the possibility of a business process failing due to human mistake. This risk will vary depending on the industry. It happens as a result of aws in internal procedures, personnel, policies, and systems. When diverse models are used to value nancial instruments, there is a danger of model failure. It's because of the possibility of losing money owing to aws in the nancial model used to analyze and manage a risk. When people do not follow the organization's procedures, policies, and/or rules, they put themselves at danger. That is, they stray from the path. When parties are not legally competent to enter into an agreement with one another, there is a legal risk. Furthermore, this pertains to the regulatory risk, in which a transaction may conict with a government policy or specic legislation (law) may be altered with retrospective effect in the future. Changes in government policies cause political risk. Investors may be harmed as a result of such developments. It is particularly common in third-world countries (Petrakis, 2004).




Concept of Operational Risk Management

Risk management has become a major concern of stakeholders in recent decades due to the dynamic and complicated nature of the corporate environment. Risk management is the discipline that is gaining the most traction. However, diverse perspectives affect the notion and concern of risk management, as well as the actual and functional behavior of risk management and its primary goal. In the nineteenth century, the concept of risk management in business and its consideration as a strategic issue evolved (Bernstein, 1996).The ability of a corporation to manage risk, identifying risks that must be accepted or minimized, and making measured and concrete decisions in this regard, boosts not just the

rm's strength but also the country's overall economic system.

Risk management is a useful technique for reducing the negative impacts of exposures and getting the most out of risky situations (Essinger & Rosen, 1991). Effective risk management aims to provide reasonable assurance that the rm's objectives will be met, as well as assisting the organization in meeting its nancial goals.Effective risk management examines and recognizes risks on a constant basis, minimizing the impact of unexpected events on the rm. As a result, successful organizational governance necessitates effective and integrated risk management (Pezier, 2002).


Risk management, on the other hand, entails providing constant, relevant, and trustworthy information to executives and workers at various levels of the business, as well as establishing realistic frameworks and procedures to ensure that risk management decisions are based on solid basis.Risk management, on the other hand, isn't just about reducing risk and avoiding dangerous circumstances. Instead, because business is constantly associated with exposures, good risk management aims to maintain a balance between risk and return. This allows for both defensive and offensive risk management. As a result, risk management should be one of the top corporate strategic goals, and managers' constant focus should be to strike a balance between the risks and possibilities that come with them (Andersen, 2008).

Concept of Business Survival

Convergence, corporate governance, corporate reporting, fraud, operating globally, enhancing business performance, managing assets, change and people, mergers and acquisitions, risk management, shareholder values, and sustainability are all difculties that businesses face today. He believes that since neither the strongest nor the most intelligent species survives, it is the most adaptable to change that survives; thus, companies in the industry have had to




deal with the equivalent of self-administered surgery with no insurance, no aesthetic, and no guarantee of long-term health (Ciano 2011).


As a result, every company's success is contingent on its ability to adapt to the environment in which it operates. As a result, the word "business environment" refers to all elements, circumstances, and institutions that are beyond the control of a corporation and have an impact on how it operates. Customers, rivals, suppliers, the government, as well as social, political, legal, and technological issues, are all examples. While some of these causes or forces may have a direct impact on the company, others may have an indirect impact (Duncan, 1972).Thus, the whole surrounds that have a direct or indirect impact on the operation of a business can be characterized as the business environment. It can also be dened as the set of uncontrollable external elements that inuence a

rm's business decisions, such as economic, social, political, and legal issues, demographic factors, technical considerations, and so on.


According to Adebayo et al. (2005), the business environment can be divided into two categories: internal and external, with the former encompassing variables or factors under the control and manipulation of the rm to achieve a set goal, and the latter encompassing variables or factors outside the control and manipulation of the rm to achieve a set goal. As a result, the company must devise a strategy to deal with the diverse environmental inuences (Oluremi & Gbenga, 2011).


Similarly, the nature of the corporate environment is characterized as dynamic, stable, or unstable, which can assist a company choose the best strategy (Ibidun & Ogundele, 2013).Businesses must create and implement appropriate strategies to protect their operations and provide the necessary results in order to cope with the dynamic and continuously changing business environment (Adeoye (2012). Similarly, according to Ogundele (2005), a rm's perspective of the nature of the business environment is inuenced by its size and industry.


Business survival is dened as a rm's ability to continue operating despite numerous problems, i.e. the managerial process of routinely overseeing a rm's operations on a going concern basis while meeting the needs of all stakeholders (Akindele et al., 2012).Leadership styles, changes, uncertainty, conict, culture, technology, structure, competitive market, protability, and workplace motivation, according to Adeoye (2012), are the current forms of complications facing organizations. As a result, businesses must design a strategic plan and tactical procedure that are relevant and adaptable to the current business climate, allowing for the most efcient use of resources and achievement of set objectives.





Burns (2001) argued that small businesses cannot be categorized solely as scaled-down versions of large businesses because they exhibit a number of fundamental differences that can be explained by the absence of economies of scale and scope, which is caused, among other things, by a lack of factor supply. According to Ciano (2011), any transformation endeavor for any company entity has four dening elements. This includes the amount of time between milestone reviews; the project team's performance integrity, which is the ability to complete the initiative on time based on members' skills and traits in relation to the project's requirements; top management's and employees affected by the change's commitment to change, as well as the extra effort required of employees by the change initiative. Alexander (2000) observed that the dynamic and rapidly changing business environment in which most enterprises operate has a substantial impact on the survival and performance of organizations. This means that the external environment is complicated and continually changing, with competition as a key feature.


Recognizing the presence of erce competition often necessitates the need to gather more information about customers for the purpose of evaluation and to use that information to their advantage, allowing competition to drive business organizations to seek out their customers in order to better understand how to meet their needs and desires, thereby improving organizational performance (Azhar, 2008). The ve forces of competitive position analysis were designed by Porter (2004) as a basic framework for measuring and evaluating a business organization's competitive strength and position. His theory is based on the idea that a market's competitive intensity and attractiveness are determined by ve forces, which can be used to establish where power sits in a commercial situation. This is valuable for determining the strength of an organization's present competitive position as well as the strength of a position that an organization might want to pursue. Supplier power, buyer power, threat of substitution, threat of new entrance, and competitive rivalry are the ve forces at work.

Effect of Operational Risk Management on Business Survival

Effective and integrated risk management system must improve the performance of the company.Effective risk management necessitates massive resource mobilization. As a result, the organization anticipates a greater improvement in performance as a result of the risk management system in place (Pagach & Warr 2011). Effective risk management improves the company's understanding of exposures that are likely to pose a threat to the company and treats risk as an opportunity rather than a threat. As a result, integrated and effective risk management is expected to assist sound decision-making, ultimately increasing

rm performance by improving precision in balancing the risk-return trade-off




(Gehner 2008).The more a company understands its inherent risks, the more condent it will be in its ability to explore possibilities.


The effectiveness of risk management promotes stakeholder accountability, resulting in improved corporate governance and strategic competitive advantages. As a result, integrating risk management operations and documenting the risk management process may aid in the identication of business opportunities and the dissemination of information and best practices. Finally, integrated and comprehensive risk management is expected to result in long-term resource allocation to improve the organization's performance.

Theoretical Review Agency theory

Smith and Stulz (1985) established agency theory, which expands the examination of the corporation to encompass separation of ownership and control, as well as management incentive. However, agency difculties have been proven to impact managerial attitudes toward risk taking and hedging in the eld of risk management (Smith & Stulz, 1985). The theory also explains how asymmetries in earning distribution can lead to a misalignment of interests between shareholders, management, and debt holders, resulting in the rm taking on too much risk or not engaging in positive net value and production projects (Mayers & Smith, 2007). As a result, agency theory suggests that established hedging measures can have a signicant impact on business value (Fite & Peiderer, 2005). A few studies have looked at managerial motivation elements in risk management implementation and found that they had a detrimental inuence (Faff & Nguyen, 2002). Hedging as a response to a mismatch between managerial incentives and shareholder interests is well supported by agency theory.The research adopts the Agency Theory.

Stakeholder theory

Stakeholder theory was rst established as a managerial tool by Freeman (1984), and it has since matured into a rm theory with signicant explanatory potential. Furthermore, stakeholder theory emphasizes the importance of stakeholder interest equilibrium as the primary driver of business policy. The expansion of implicit contracts theory beyond employment to other contracts, such as sales and nancing, is the most promising addition to risk management (Cornell & Shapiro, 1987).Consumer condence in a rm's ability to continue supplying its services in the future may contribute signicantly to corporate value in some areas, notably high-tech and services.




The value of these implicit claims, on the other hand, is greatly dependent on the costs of nancial difculty and bankruptcy. Because risk management strategies reduce these predicted expenses, the value of the organization grows (Klimczak, 2005). As a result, stakeholder theory offers a fresh perspective on risk management logic.


Independent Variable Dependent Variable Operational Risk Management

Empirical Review

Aladdin (2020) conducted a eld study at Jordanian insurance businesses to investigate the inuence of risk management methods on organizational performance. The purpose of this research is to look at the inuence of risk management methods on the organizational performance of insurance businesses in Jordan's Hashemite Kingdom. A questionnaire was used to collect data from 120 managers working in Jordanian insurance businesses in order to carry out this study. A descriptive analysis was done to establish the normal distribution of answers as well as the tool's validity and reliability, and the connection between the variables was studied.


SPSS 19 was used to do regression analysis on the data. According to this report, the majority of businesses are in operation for a long period. The study found that risk management techniques had an inuence on organizational performance, with risk mitigation having the most impact, followed by risk identication, risk assessment, and risk control, and risk management implementation having the least impact. Risk management methods in general have a favorable inuence on business success.


The research recommended thatInsurance rms should implement cost-effective strategies to detect hazards in a timely manner and efciently manage risks, according to the ndings. Jordanian insurance businesses should educate their workers on the importance of risk management and their procedures, and they should examine risk management methods on a regular basis to ensure that they can continue to operate in a changing work environment. As a result, experts suggested collecting more data over a longer period of time in the future to conrm the validity of the existing model and measurement device. This research is one of the few that has looked at the inuence of risk management methods on Jordanian insurance businesses. The research model was created from a variety of sources in order to develop and raise risk management knowledge among Jordanian insurance businesses.




The impact of enterprise risk management on institutional performance in Jordanian public shareholding companies was investigated by Altanashat, Al Dubai, and Alhety (2019) in their study titled "The impact of enterprise risk management on institutional performance in Jordanian public shareholding companies." This study evaluates the inuence of corporate risk management on the organizational performance of listed rms in Jordan, based on the ERM COSO (Committee of Sponsoring Organizations) Integration Practices (2004). The survey technique used in this study was a questionnaire, and 313 questionnaires were gathered.


A structural equation modelling tool (Smart-PLS) was used to evaluate the data, and the results showed that the company's risk management implementation has a considerable inuence on organizational performance. The ndings revealed that the company's risk management strategies are critical to improving the Jordan mining company's performance. The research also emphasizes Jordanian mining rms' continuous use of global risk management approaches to improve their performance. Furthermore, all independent factors (internal environment, event detection, risk assessment, risk response, control actions, information and communication, monitoring) are signicant predictors in addition to goal preparation. These variables have a statistically signicant relationship with the success of Jordanian mining businesses. The survey's ndings will aid rms in better understanding the execution of global risk management and identifying opportunities for development within each component of overall management.


The study adopted a survey research design, where data is collected from a sample of respondents. The population of this study consistsof Al-Hikmah University Water Factory operations staff in Ilorin metropolis. Hence, a population census was used for the study since the total population is 10. The data for this study were sourced from primary method of data collection. The primary source which includes the use of structured questionnaire to generate data for the study. Data was generated through structured questionnaire that were administered to Al-Hikmah University Water Factory staff. The questionnaire was divided into two sections. Section 'A' part of the questionnaire centres on demographic factors such as age, years of experience, level of education which were analyzed using simple percentages. Section 'B' which contains questions relation to the subject matter using a Likert scale question rating scale from Strongly Agree to Strongly Disagree. Closed ended questions were asked and rated on a ve point like scale which was used in scoring the respondents on their personal views as regards the subject matter. The respondents reacted to the statement by ticking strongly




agreed (SA=5), agreed (A=4), undecided (U=3), disagreed (D=2), or strongly disagreed (SD=1). The questionnaires were administered personally to the respondent.


A quantitative method of data analysis was utilized for the purpose of this study. Data collected was analyzed with descriptive statistics frequency table and simple percentage while inferential statistics of regression and correlation coefcient was used to test the formulated hypotheses at 5% level of signicance.


Methodology Research Design

The study adopted a survey research design, where data is collected from a sample of respondents. The population of this study consists of Al-Hikmah University Water Factory operations staff in Ilorin metropolis. Hence, a population census was used for the study since the total population is 10. The data for this study were sourced from primary method of data collection. The primary source which includes the use of structured questionnaire to generate data for the study.


Data was collected using a standardized questionnaire distributed to Al-Hikmah University Water Factory employees. There were two sections to the questionnaire. The demographic parameters such as age, years of experience, and degree of education were examined using simple percentages in Section 'A' of the questionnaire. Section 'B' contains questions about the subject matter that are graded on a Likert scale from Strongly Agree to Strongly Disagree. Closed- ended questions were asked and assessed on a ve-point scale, with the respondents being scored on their personal opinions on the subject. Severely agreed (SA=5), agreed (A=4), uncertain (U=3), disagreed (D=2), or strongly disagreed (SD=1) were the responses to the statement from the respondents. The responder was given the surveys by hand For the purposes of this research, a quantitative approach of data analysis was used. The data was examined using descriptive statistics such as frequency tables and simple percentages, while regression and correlation coefcient inferential statistics were employed to test the hypotheses at a 5% level of signicance.





The researcher got all the questionnaires distributed thus, a 100% feedback.


H01: there is no relationship between people and business survival of Al-Hikmah University water factory.


It was found that there is a favorable association between people and business survival (longevity). However, because the p-value for both co-relational analysis of correlation is > 0.05, the result is not signicant at 95 percent condence interval. As a result, the null forms of both hypotheses are kept. Hence, for hypothesis, the results suggest that there is no signicant relationship between people and business survival.


H02: there is no effect of policies on business survival of Al-Hikmah University water factory.


The R Square of the model, is 0.40, implying that the independent variable (policy) explains 40% of the variation in the dependent variable (longevity), while the remaining 60% is attributable to other variables not included in the model. However, because the R2 value is near to 1, the regression (i.e. model established) is benecial for generating predictions. Furthermore, as seen above, a coefcient of.633 indicates that policies have a considerable positive inuence on rm survival, while r2 =.400 indicates that policies account for 40% of the variation in business survival.






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Department of Marketing


2A.U. Chukwu

Department of Industrial Relations and Personnel Management

1, 2 Michael Okpara University of Agriculture, Umudike-Nigeria

Corresponding Author: A.E.NDU OKO

Department of Marketing, Michael Okpara University of Agriculture, Umudike- Nigeria

Tel: +2348057851630, +2348064868940

e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.




The study is based on reverse marketing and customer satisfaction; it has its thrust as selected front line banks in Nigeria with service vendees as consumers of bank services. It considered indices of customer satisfaction of corporate market share expansions, sales volume and value enhancement, customer loyalty as well as customer retention. The study sample size is made up of 10(ten) commercial banks; one hundred and twenty copies of 5 (five) top level branch personnel per bank and 15 (fifteen) service vendees firms of each of the banks. Open and close ended questionnaire were administered and responses were scaled using the modified 5(five) scale Likert rank statistical model and hypotheses were tested using the pearson's correlation co-efficient 'R' statistical model. Findings show that: reverse marketing based on ease in access to technology of communication enhances corporate market share; research results aid better corporate positioning thus lead to increase in sales volume and value; computerization operations and electronic interchanges expand corporate operation from local to glocalization and globalization operations hence customer loyalty is assured as long term contractings enhance customer retention ability of vendors. The study therefore recommended good quality vendee research, functional promotion activities, personality marketing activities of vendors among others for enhanced corporate vendees' satisfaction.


Keywords: Reverse marketing, Consumer satisfaction. Deposit Money Bank.





Reverse marketing as a strategic tool for brand and image building and sustenance is adopted for the creation of meaningful relationship with target market (customers) as actual or potential. It encourages the customers to seek out the product of their desire rather than the vendor making and adopting marketing related activities at cost to woo the target market. Exchange and transaction relationships are initiated by the vendee rather than the vendor.

Reverse marketing as corporate marketing activities involves the deliberate effort aimed at building relationship between the vendor and the vendee for the purpose of shaping suppliers' market offer in terms of goods, services, idea, information and or capabilities to t the buyers needs and those of the customers-Berkowitz, Kerin, Hartley & Rudeluis (2000), Blenkhorn & Banting (1991) and Lenders & Blenkhorn (1996). In reverse marketing, the vendee initiates relationship and persuades the vendor to supply; unlike in traditional marketing–Rajasekar (2013).

The concept of reverse marketing is anchored on the principle of corporate personality marketing; hence rms as natural and or articial persons are encouraged to build their personality based on good internal market and marketing management principles, practice and customer touch point efciency management for customer pull rather than push. This implies that less time, efforts and other resources are spent on wooing customer rather the benets the offer provides to the target markets are explained. It works in reverse direction of the marketing concept, that is built on the satisfaction of the target market as basis for prot –Hutt & Spech (1985) and Druker (1974). Given this, the rm is concerned with product specications from customers' point of view rather than the vendors' view-Thayer (1982), thus reverse marketing is a negation of product orientation policies rather it favours customer orientation –Levitt (1960).

To achieve projected rms' objectives based on reverse marketing activities, the

rm's research efforts are focused at identifying target markets' needs and the fashioning of market offer to meet these needs rather wooing the target markets

–Blenkhorn & Banting(1991).

Based on this, and with the information available the target market is allowed latitude of freedom to decide whether or not to invest (spend) on the offer of the vendor.

The banking industry in Nigeria is experiencing uniformity of market offer in terms of product characteristics, mode and method of service delivery, service marketing communication and promotion as well as service charges. Hence




customers nd it difcult to differentiate corporate offers. To cause difference to exist in banks market offers, banks spend so much to enhance corporate esthetic value. This rather is considered expensive and does not add to corporate culture neither does it build condence in the target market about the rm nor its offer. This accounts for the increase in inter and intra industrial competition in the banking industry in Nigeria with obvious decrease in the value of stockholders' welfare.

To reverse this order or trend in the banking industry in Nigeria, the concept of reverse marking commonly referred to as value or attraction marketing is advocated for. This as a strategy based tool encourages customers to choose

rms rather than the use of forceful advertising techniques that are “push” inclined to woo customers to corporate offer. The reverse marketing strategy is focused on building trust and “pulling” customers to corporate brand.

The reverse marketing activities are tailored around offering customers assistance, advice and relevant information. On account of these, rms woo ideal customers who perceive the rms (vendors) as authorities or experts in specic

elds of operations.

Authorities in the eld of marketing assert that those rms that are reverse marketing concept inclined in technique are avoiding coercion rather they encourage customer to feel empowered and condent in the choice of market offer-Ammers (1974), Ardt (1979) and Leenders & Blankhorn (1988).

Based on the foregone, this study has its thrust as assessing the contributions of reverse marketing practices to the growth and development of the bank industry in Nigeria; using the non-nancial protability indices as proxies of customer satisfaction; as measure.

The study has its general objective as the determination of the relationship between the adoption of the reverse marketing techniques and the performance of rm of rms in the banking industry in Nigeria based on the non protability indices as bases for assessing customer satisfaction.

Specic objectives include:

  1. To determine the relationship that exist among ease in access to technology for strategic market offer positioning, international (trade) marketing efciency, and just-on-time material requirements plan as components of reverse marketing and corporate market share.




  1. To assess the strength of relationship that exist among corporate proper social, political and physical environmental management and corporate sales volume and value.
  2. To determine the relationship that exist among computerization of operations and electronic data inter changes, globalization of markets as quality control indices in reverse marketing and customer loyalty.
  3. To determine the relationships that exist among long terms contracting, research and development supports, quick and exibility in action and customer retention.

This study and associated analysis has its hub on the following hypotheses.

H01:  no  signicant  relationship  exist  among  ease  in  access  to  technology, corporate market offer positioning, international (trade) marketing efciency, and just –on-time material requirement planning as components of reverse marketing and corporate market share.


H02:  no signicant relationship exist among proper social, political and physical environment management as integrals of reverse marketing and corporate sales volume and value.


H03:  no  signicant  relationship  exist  among  computerization  of  operation, electronic data interchanges and globalization of markets as quality control indices in reverse marketing and customer loyalty.


H04:  no signicant relationship exist among long term contracting, research and development supports and quick and exibility in action as variables of reserve marketing and customer retention.

The study has the potential of re-positioning the banking industry in Nigeria for enhanced protability and shareholders' welfare based on stakeholders' satisfaction indexed on corporate market share expansion, sales volume enhancement, and customer loyalty and retention. This will be achieved based on good image and (brand) building, decline in cost of promotion and esthetics and enhanced service touch points' efciency as the internal market is exposed to efciency based on better management of the elements of reverse marketing.




Review of Related Literature:

The cost of marketing if optimized has signicant relationship with corporate prot ability and shareholders welfare; hence cost most often is reasonably minimized.

To minimize cost as crucial to corporate success, rms strive to offer value to the target market based on operations that are anchored on what delivers value for the target market, as well as the appreciation of the target markets as expected and actual unique value proposition.

Firms especially in the competitive banking industry in Nigeria are expected to build relationships with the target market based on inter-personal relationships as pull concept strategy based rather than push that is built on mass communication (advertising). These relationships position the rms and not their offers as authorities and experts in the specic elds, hence are considered capable of creating and sustaining consumer satisfaction. This as hallmark of customer condence and satisfaction is the basis of reverse marketing.

Reverse marketing involves a reversal of traditional buyer-supplier roles and relationship. Traditionally, the supplier makes the exchange and transaction initiative. In reverse marketing the buyer tries to persuade the supplier to provide exactly what the buyer's organization needs. Without this buyer initiative from the purchasing side of the exchange and transaction relationship, the supplier is unlikely to offer specically what the buyer requires.

The reverse marketing concept as described is the outcome of research activities that highlight the following as the essence of reverse marketing-Leender & Blenkhorn (1988)

  1. Reverse marketing in the assertion of Blenkhorn & Banting (1991), is an aggressive and imaginative approach to achieving supply objectives. The vendees take the initiative in making the proposals that are expected to meet their (vendees') needs as required. The goal is to be satisfy the vendee both in the short- and long-terms.
  2. Reverse marketing requires close work with an existing or a new vendor to meet ambitious supply objectives. This often involves persuading a reluctant vendor to become a supplier; persuading managers inside the vendee's organization to make what was formerly purchased, or vice versa; persuading users to try a new product, service, or system while persuading a vendor to do likewise; and a host of other tasks. The key is in the two words “initiative” and ''persuasion.





  1. The rewards are many. Savings in the 5 to 30 percent range are not uncommon. Reverse marketing permits procurement to contribute effectively to the organization's objectives and strategy. Successful reverse marketing requires cooperation from all levels and most functions in the organization; hence, it enhances the role of the supply function. Reverse marketing is future oriented and requires careful planning and research. It may permit the achievement of seemingly impossible objectives in terms of quality, quantity, price, delivery, and service


  1. Reverse marketing is more than just a technique or tool. It is opined by Leenders & Blenkhorn that reverse marketing represents a different perspective on the role of supply and how it should be managed so as to contribute effectively to organizational goals and strategies. The activities in reverse marketing comprise an eleven step process ranging from fundamental research at the commencement of the reverse marketing idea to reverse marketing options undertaken at the project's completion. Reverse marketing involves a great deal of negotiation and frequently aggressive behavior to enable the supply function to achieve its goals, which usually include adding directly to bottom-line protability-Blenkhorn & Banting (1999).

Reverse Marketing

In the marketing current scenario, as opined Rajasekar (2013), the buyer- supplier relationship has changed considerably compared to the traditional relationship, where the seller takes the initiative by offering a product. This is increasingly being replaced by one where the buyer actively searches for a supplier who is able to fulll its exact needs. On account of this, the supplier is urged to deliver the product with the required specications and the buyer participates in identifying the best solution, thus it is called Reverse Marketing.

Given this, the vendee, instead of being persuaded to buy, now tries to persuade the vendor to provide!

Reasons for Reverse Marketing:

Reverse Marketing is not a technique, rather a change of perspective on purchasing and supply management. Considered results of research show that the adoption of reverse marketing principles leads to cost reductions, as Rajasekar (2013) asserts to decline within the range of 5 to 30 percent. In addition, reverse marketing may result in improved product quality, delivery




performance and service support. The traditional vendee and the reverse marketing oriented vendee are both regarded as two extremes, each with specic characteristics. The characteristics of the reverse marketing oriented vendee have far-reaching implications for vendors. A supplier needs to assess the vendee in the exchange relationship and translate this into strategy and action- Rajasekar (2013).

Basic consequence for the supplier is an increasing attention to the use of relationship management techniques, which may lead to the implementation of account management. Reverse Marketing is a powerful method to increasing the sales by 'reversing' many of the conventional marketing procedures that really are not very productive-Rajasekar(2013). It can in the assertion of Rajasekar (2013) be summarized as follows

  • the vendor can sell a lot more of the products or (services) by using methods that get prospects to approach the seller instead of the seeking prospects out. Converting these warm prospects to paying customers is a breeze compared to convincing the cold prospects.
  • a system of multiple contacts to qualied prospects can reduce the vendor's expenses dramatically and increase the prots.
  • the real money in any business is in repeat sales to customers who already know the vendor. This type of marketing is easily 10 times as protable as selling to new customers.

Based on reverse marketing, principles vendors create “good, better and exceptional vendors” overtime, hence are able to sustain the exchange and transaction relationships for overall corporate benets.

Reverse Marketing Oriented Purchasing

Reverse marketing approach to purchasing requires other capabilities compared to what traditional purchasing does. As with every signicant organizational change, the successful implementation of a reverse marketing in the assertion of Rajasekar(2013) requires:

  • personnel with the right education and attitude
  • sufcient commitment and support from the organization and
  • practical guidelines.





These show reverse marketing oriented vendees how to implement such a strategy. Organizational commitment and support are fostered by top management and are demonstrated by elevating purchasing position in the organization and involving it formally in various critical strategic decision making processes.

Based on these, reverse marketing practices have these as thrust areas:

Reverse Marketing Supply Strategy

Reverse marketing is a thinking which starts with the market place and works backwards to the rm as source of the product; it allows product specications and descriptions to originate from the target market, thus forms basis of the products decisions. On the account of this, the consumers (the vendees) are involved in all input acquisition decisions as well as inbound and outbound logistics policies of the vendor organization-Kotler & Armstrong (2008).

Reverse marketing enhances corporate success through efciencies in supply strategy management as it has signicant cost reduction implications on corporate operations. This is sequel to the fact that it allows for the adoption of technologies and techniques that enhance corporate economies of scale, strategic positioning of market offer, and international marketing efciencies based on just-on-time material requirements planning –Ammers (1974), Kraljic, (1983) and Leenders & Blenkhorn (1988).

Reverse marketing supply strategic management ensures on time delivery of inputs in a situation devoid of extra attention and cost, however vendors are offered advice along the supply channel on product quality and quantity as well as price. The vendors in turn enjoy numerous benets such as standard and demand information, reduced selling efforts as well as technical, managerial and

nancial assistances –Leenders & Blenkhorn (1988). This study has the objective of ascertaining the extent to which these benets are optimized in the banking industry in Nigeria with its thrust as customer satisfaction as anchored on market share, sales volume and value, customer loyalty and retention enhancements as non nancial performance indices.

Reverse Marketing-Social, Political and Physical Environmental Concerns

Firms in the banking industry in Nigeria like in other economies that practice reverse marketing are expected to be pro-active rather than re-active to




environmental inuences with necessary governmental agencies and other vertical and horizontal operational organizations for market offer characteristic designs with the target market attributes optimization.

These relationships are vital for efciency in operational cycle defects management. Firms with reverse marketing inclination are credited with efciency in the management of environmental pollution, price discrimination and service touch points personnel training-Leenders & Blienkhorn (1988), Monczka, Philip & Hoagland (1979) and Stern & El-Ansary (1986). Efciency in the management of these environmental factors build condence and trust in the target markets concerning the vendor, thus woos customers as vendees to corporate offer as a pull promotion strategy expectation.

Reverse marketing principles are adopted in bringing vendors to the point of success in normal competitive bidding –Leenders & Blienkhorn (1988).

Reverse Marketing and Quality Control

The principles of reverse marketing as anchored on vendor-vendee information exchange relationship and joint problem solving, ensure quality control as are traceable to Material Requisition Planning (MRP) and just-in-time ordering systems. The practice echoes the relevance of learning curve and vertical and horizontal inter and intra rm and industrial relationships that yield cooperative planning for long term goal actualization in favour of both the vendor and vendee.

Given the need for quality control in corporate activities, based on reverse marketing principles, the adoption of computerization of operation of the nance institutions for inter and intra rms and industrial electronic data interchanges and the globalization of markets to meet the increase in demand for bank services-Arndt (1979), Ammers (1974) and Dwyer, Schurr & Sejo (1987) is considered basic for reverse marketing operations.

Reverse Marketing in Market Selection

The principles of reverse marketing aid rms in market selection and adjustment of operations in relation to size of markets. This is because the rms are equipped to create relationships that are inuenced by size of market, hence customer loyalty is guaranteed especially given the fact that vendor-vendee actions are quick and exible-Ammers (1974).




The adoptions of long term contracting policies that are supported with inputs from the research and development support programmes yield internal and external economies of scale for lower cost of operations-Dwyer, Schurr & Sejo (1987).

Operational Benchmark of Reverse Marketing

Reverse marketing practices are adopted with the objective of achieving improvement in corporate and brand image, to shun coercive marketing principles and strategies, to cut out hard sales and abrasive tactics of marketing as well as for building relationships with customers prospecting. Firms involved in the adoption of reverse marketing principles do not employ the use of scare tactics, they do not fail to deliver what is promised nor do they offer solutions and conditions that do not have nor add value to customers.

The acceptable techniques of reverse marketing include tailoring corporate market offer to meet the target market's expectations, obtaining the consent of the target for possible contact for exchange; provision of value through follow- up, deliberate effort at focusing at customers success by creating authentic relationships, fostering knowledge and customer involvement and the encouragement of transparency in the choice of corporate offer by customers.

These benchmarks of reverse marketing yield corporate sustainable brand values and positioning, improve stakeholders' value and builds brand development and possible align the rm with market offer and corporate virtues of trust, relationship and condence.

Evaluation of Reverse Marketing

Both marketing and purchasing are all about developing and maintaining relationships with internal and external parties- Rajasekar (2013). Reverse marketing embodies a number of relevant world-wide trends that serve as conceptual umbrella. This implies that reverse marketing should not be embraced as a completely new purchasing philosophy rather a modication of the traditional approach. In this context, three remarks need to be highlighted. These in the assertion of Rajasekar (2013) include:

  • First, the concept of reverse marketing is not suitable and certainly not protable for all vendees. The number of products to which it can be applied is limited and there will always be room for traditional, adversarial purchasing with an emphasis on individual transactions rather than long term relationships.




  • Secondly, reverse marketing efforts directed at vendors require an informed and streamlined internal organization. Internal marketing may prove to be the key to having organizational function as a single unit with bias for the different corporate touch points. However, the implementation of a reverse marketing strategy has signicant implications for the whole organization.
  • Thirdly, rms can no longer limit themselves to applying marketing principles only vertically (forwards to customer and backwards to suppliers). Successful rms in the current dispensation must develop and maintain products, government, interest groups and relevant media relationships.

Core Issues in Reverse Marketing Programme

For qualitative practice of reverse marketing, the vendor must have a good understanding of the practice of traditional marketing as well as the points of variance between the traditional marketing concepts and reverse marketing principles as basis of reverse marketing practices.

This understanding is vital for the expected mutual relationship based on cooperative partnership between the vendor and vendee that is vital for long term relationship.

The features of reverse marketing challenge the vendor in relationship with the vendee in the assertion of Blenkhorn & Banting (1991) as follows:

  • Reverse marketing challenges practitioners as vendors or vendees to pro- active response to the dynamisms of environmental variables especially given the needs of the organization. The need for aggressiveness in factor input procurement must be acknowledged as response to vendees' initiatives must not be sub-optimized. This is unlike in the traditional marketing situations where responsive actions oriented policies are acceptable.
  • Reverse marketing programmes are multi-dimensional thought obsessed unlike in the traditional marketing where outlook or the way of thinking is uni-dimensional. Based on this, vendors and vendees in reverse marketing are inuenced by the implications of exchange and transaction relationships on several distinctive plans; especially as they inuence corporate future and exibility and re-action of other departments based on intra and inter departmental relationships. In the opinion of Blenkhorn & Banting (1991), the strategy for the vendors is not only to proffer




solution to the pressing needs or challenges but to in addition demonstrate how the solution affects different operations' elds; in respect to decisions and other issues of concern to the organization in the current dispensation and in the future.

  • Vendees involved in reverse marketing are creative rather than routine in thinking. Reverse marketing activities are evaluated based on system approach as wholistic rather than as functional areas individually. Given this, activities are considered and conducted at organizational level of framework. Based on this, the vendors' position market offer accurately within the vendee organizations' system with future scenarios in consideration and for possible education and training made available to the vendees on the use and application of the product. The vendors are expected to recognize the fact that the vendees evaluate the vendors' offer based on system perspective.
  • Vendees as reverse marketing practitioners desire long-term rather than short term relationships with vendors. Thus the desire is to relate with vendors who are willing to share the experiences of the different cycle of business in terms of prot and loss, and this must be on the basis of sacricing short term prot for the long term as relationship marketing index.
  • Reverse marketing envisions both the vendors and vendees on the impact of current purchasing decisions on the long term welfare of the organization. While solution to short term challenges are considered vital, attention is directed to issues that will yield successful long term results, both in planning and execution. The vendees and vendors assess situations not just in current problem but also in challenges of the future.
  • Satisfaction creation must be sustained over a long span of time and on continuing and optimized bases. Gains of the exchange and transaction relationships must be mutual, stable and collaborative; given the concern of both the vendors and vendees. Sales closures are deliberately delayed based on the use of after sale services, follow up services, and adjustments of policies to meet vendees' needs.
  • Expectations of marketing rms based on reverse marketing policies are often in the afrmative and are also denite; hence exibility is expected of vendors as well as security for greater long run gains. The vendor must therefore be logical and straight forward when presenting offer to the vendee. Based on expert knowledge built around formal presentations, sensitivity and adaptivity to vendee's requirements and objectives.




  • Reverse marketing principles spur up the vendors as well as the vendees to the pursuit of goals vigorously even in the midst of resistance by the vendees. Alternative avenues to sustainable long run benets must be exploited for solutions to purchase requirements even when available opportunity may be preferred.
  • Reciprocity in exchange and transaction relationships is encouraged between the vendors and vendees, and parties must be willing to go beyond normal levels to ensure the satisfaction of parties to the dened exchange and transaction relationships.

Empirical Review

Reverse marketing is not a new concept even as it is a shift from the traditional marketing built on the marketing concept with the target market as thrust of activities. However, there is paucity of empirical literature on the study of reverse marketing:-Available literature include those of Blenkhorn, D.L. & Banting P.M (1991), “How reverse marketing changes buyer-seller roles, industrial marketing management” August and Leenders M.R & Blenkhorn, D. L (1996)”. Reverse marketing: The new –buyer-supplier relationship” New York: Free Press cited by Berkowitz, E. N Kerin, R.A, Hartley, S.W & Rudelius, W (2000). Marketing 6th edition. Boston Burr Ridge Irwin McGraw Hill and Rajasekar D. (2013). Reverse marketing –a new perspective in the current marketing Scenario”, Asian Journal of Management Sciences.

These work as referred are all theoretical based articles hence lack empirical content with exception to the study by Scoth C, Ellis John W. Henke, Thomas J. Kull (2012) on the effect of buyer behaviour on preferred customer status and access to supplier perceptions' in US where authors assert that buying rms are increasingly looking to suppliers for technological innovations that enhance the competitive position of their new products. The work also opines that extent research provides limited guidance on how buying rms may gain access to suppliers' innovative technologies. To address this gap in the literature, it draws from social exchange theory to posit sequential relationships among buyer behaviours, preferred customer status, and supplier's willingness to share technological innovations. The study tested its assertions that by applying structural equation modeling statistical analyses to survey response data from 233 sales personnel of production good supplier in the US automotive industry. Whereas the study's results show that two buyer behaviours-early supplier involvement and relational reliability –positively affect preferred customer status is positively associated with supplier's willingness to share new technology with the buyer. Further, the ndings indicate that preferred customer status fully mediates the benets exchanged within a buyer-supplier relationship. Hence the




study highlights why buyers seeking innovations should take care that their behaviour is appropriate for managing suppliers' perceptions. Accordingly the results provide specic guidance to buyers as to how they may increase their access to suppliers' new technologies.

To this end, the current study to the best knowledge of the author is the second empirical work in this area of study.


This is a survey based research. It sourced relevant data based on the use of open and closed ended questionnaire administered on selected top level managers of selected commercial banks in Nigeria classied along the line of market leaders, attackers, followers and nichers among these are First, Access, Unity, Zenith, Fidelity, Union, United Bank for Africa, Stambic, First City Monument and Guaranty Trusts banks and their selected end services consumers with one hundred and two hundred copies of questionnaire respectively. Responses of the respondents were scaled based on the modied

ve scale Likert model, while the projected hypotheses were tested using the Pearsons correlation co-efcient R.

Summary of Findings

The following are ndings associated with this study –reverse marketing in consumer satisfaction with special attention for frontline commercial banks in Nigeria.

  • Reserve marketing based on its principles that aid ease in access to technology in communication given inputs based on vendees research enables the vendors position corporate market offer especially in transaction and exchange relationships using international (trade) marketing efciency and for just-on-time material planning requisition. This contributes signicantly to vendors' corporate market share expansion as the vendees achieve satisfaction. This satisfaction leads to repeat purchases and encourages referral marketing.
  • The vendors based on vendees' research, position selves as trustworthy and as concerned with environmental (economic, social, political and physical environment) sustainability focused in routine activities; as well as on specic products. Given this, the vendees are given reasons to believe that the vendors are eco-friendly. As a result, this reverse marketing strategy encourages the vendees to seek out for, on their own the products of the vendors especially when in need of eco-friendly




product. On account of this, corporate sales volume and value are enhanced.

  • The principles of reverse marketing abhor coercive marketing communication. In the place of coercive marketing communication, the vendors, based on reverse marketing principles adopt the use of computerized operations and electronic data interchanging techniques for localized, glocalized and globalized market expansions, as the message of the vendors are often aimed at creating positive, condence –boosting association with the vendees. This increase the likelihood that the vendees will choose and seek out for the market offer of the vendors.
  • As a virtue, reverse marketing principles compel the vendors to be involved in vendees' environmental research as basis for marketing plan and planning, and for crafting marketing materials that connect the vendees meaningfully. This research that is web based, is vital for contract term denition in terms of specications and descriptions and quick and

exibility in action, hence customers as vendees are satised and retained.

Discussion of Findings

  • The study shows that rms that practice reverse marketing as principle improve corporate brand or image rather than creating awareness about market offer based on corporate advertising-Kotler & Keller (2009) and Cassidy (2005). The message contents project the rm, as attention is re- directed away from products. Given this, customer loyalty is created in favour of the rm. This is made possible as the rm has easy access to technology in communication that aids the evaluation of the vendees' needs. These needs are tailored around efciency for local, glocalize and global operations; satisfying just-on –time material planning and requisitions, that repositions the rm for customer satisfaction, repeat purchase and referral marketing activities-Berkowitz, Kerin, Hartley & Rudeluis (2000).
  • Vendors adopt reverse marketing promotion strategy as one devoid of coercive –Kotler & Keller (2009), hence vendees are made to know what to appreciate in the vendors' market offer. Reverse marketing promotion activities instead of convincing the vendees to specic product, project the vendors' as more eco-friendly compared to similar products from competitors. Hence gives the vendees reasons to accept the vendors as eco-friendly-Agbonifoh, Ogwo, Nnolim & Nkamnebe (2007). This promotion principle as adopted encourages vendees to seek out the vendors' market offer on self violation.




  • Reverse marketing as differently and strategically adopted follow the same principles of knowing what the vendees consider important, giving the vendees reasons to demand the vendors' offer out of volition and offering the vendees value and in attempt at closing sales aid the vendors build value as central concept of offer. Given this, the vendors position selves as trustworthy source of information concerning economic, social, political and physical environmental sustainability; hence position selves as authorities and experts qualied to manage the environmental variables of the micro and macro societies for the best interests of the vendees.
  • Reserve marketing strategies provide that rms create information platform on how the vendors manage environmental waste and pollution situations by creating thoughtful consumerism, highlighting selves as more concerned in sustainability and respect compared to protability. Here the rms are involved in personality marketing in the area of green thinking, building image of respect for vendees and themselves. These in actual sense increase corporate sales volume and value.
  • All reverse marketing strategies with bias for promotion create positive, condence boosting association with vendees, hence the computerization of operations and electronic data base offer inter changing techniques for local, international and globalized marketing activities that are aimed at expanding customer satisfaction scope and dimensions as vendees are allowed latitude of choice of patronize the vendors. Information relating to the vendors' operation are made available at no implicit or explicit cost, and are presented honestly, showing the vendors as “masters' in the different and specic elds of operations, as such trust is created and sustained.

For the purpose of optimizing the benets associated with reverse marketing, the vendors are expected to be involved in marketing plan and planning that must be based on honest assessment of corporate current image, target market of interest as vendees, and the vendees' expectations as value. This is essential for the purpose of crafting market and marketing offers that create and sustain meaning to the vendees. All offer presentations must be based on good understanding of the vendees. This accounts for the importance of marketing research activities in reverse marketing.

All activities and strategies of rms with reverse marketing inclination must be perceived by the vendees to mean good intention and demonstration of care by the vendors. This does not build trust for the product but the vendors in relationship with the vendees, hence repeat purchase are assured.




Firms in the banking industry in Nigeria given the inter and intra industrial competition are expected to distinguish their market offering using the non-cost involving marketing strategy of reverse marking. This strategy has the ability to reposition the rms as responsible, authorities in specic elds of marketing and experts in nding solution to vendees (consumer of banks' service) needs rather that projecting the market offer that can hardly be differentiated.

This good corporate image for banks based on reverse marketing activities is necessary to cause the consumers to seek out for banks' services as solution to challenges. Here the consumers as vendees initiate exchange and transaction relationship activities rather than the banks as vendor.

Reverse marketing activities are research and technology based; they have macro economy as base of operation. The research inputs equip the banks for proper managing of the social, political, economic and physical environments of business as prot are considered long term rather than short term projection.


Reverse marketing is a new approach to vendor-vendee relationship. It provides that the vendees initiate the exchange and transaction relationships based on the ( vendees) assessment of the vendors not the market offer as capable of providing solution to the vendees' (problem) challenges. It is based on building stronger and long term relationship between the vendors and vendees for greater mutual benets as new market opportunities are identied and exploited.

Reverse marketing is born out of innovativeness, it broadens corporate market base, builds inter and intra rms/ departments cooperation respectively thus leads to sales volume expansion.

This approach to market is more advocated for in industrial marketing as it allows for the integration of past and current vendors for new and existing market offer as means to the enhancement of efciency in supply management.


The study that has its thrust as selected front line banks in Nigeria has its recommendations as follows:

  • Banks in Nigeria though has shifted from the state of arm chair banking to seeking and searching for customers, but must adjust policies that favour good understanding and respect for customers as service vendees.




  • Inspite of the inter rm competition in the banking industry in Nigeria banks must de-emphasize advertisement and the use of esthic value to promote market offer, rather efforts should be made at building acceptable corporate image of respect for customers internal and external and management of the rm.
  • Information on the banks must not center on the market (offer) service, but the contributions to the management of corporate social, political, economic and physical environments, hence must be considered consumerism as well as green marketing bias. This will project banks as concerned with sustainability rather than respect for prot. This is considered the core issue in reverse marketing.
  • Nigeria banks in service delivery must aim at building value as basic philosophy in reverse marketing. This aids rms position selves (articial) as trust worthy, authorities and experts as these virtues encourage vendees to seek out with passion the market offer of vendors.
  • All promotions activities of banks should be aimed at highlighting the principles of the banks themselves, as attention is re-directed away from bank services and must not be coercive marketing oriented rather message must create positive, condence, boosting association with expected target markets' needs as means for creating likehood of patronage by the vendees as service consumers.
  • Banks in Nigeria as reverse marketing efforts should provide information about the rms' capabilities at no cost to the service vendees as means of establishing corporate authority. The information should be trust worthy as this gives vendees the feeling of having been informed for qualitative purchase decisions. Newsletters are highly appreciated as means of passing information to vendees about the corporate personality of the vendors.
  • Reverse marketing activities are optimized based on honest assessment of corporate current image, the vendors' target market and the offer expected to create value for the vendee, hence research activities are highly advocated for. Outputs of research are required for the creation of viable link between the vendor and vendee.
  • Customer satisfaction based on reverse marketing principles is considered corporate goodwill, thus should be adopted in building vendees' trust for repeat purchase.





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