Full Project – Effect of price differential on consumer patronage for Omo and Elephant detergent

Full Project – Effect of price differential on consumer patronage for Omo and Elephant detergent

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1.0       Introduction

1.1       Background of the Study

Price is a very crucial decision in marketing management. In economic theory the problem of pricing has been approached in different ways. This is because where there are noticeable differences in the quality, cost of production and consumer responses, price differentials are bound to occur. For this reason, there has been a series of fluctuation in  the price of various detergents especially Ono and Elephant detergents in Bida metropolis in particular and Nigeria in general.


This research work is therefore directed at measuring consumer patronage towards difference in price of Omo and Elephant detergent despite the fact that there are no clearly identifiable differences in Omo and Elephant detergent. There have been significant differences in their price in recent times or years. The rate at which consumers patronize these brands is different; some have a high consumer patronage. As rational human beings, consumers will approach price differences of Omo and Elephant detergent with utmost care. A lot of comparisons are likely to be made unless there is a clear evidence of difference in quality. Consumer will close any brand that is sold at prohibited price. Consumers critically study the brands with a view to discovering any unique feature before taking any final decision on which of these brands to buy.

1.2       Statement of the Problem

In the past, there has been consistent complaint by the customer of detergents brand because of differences in the prices of the product i.e. what could be the likely reason for fixing different prices for the same product.


1.3       Statement of Objective

Every research work has it objectives. The following are the objectives in the course of this study:

  1. To determine the reason for price differentials at Omo and Elephant detergents.
  2. To estimate the level of competition among Omo and Elephant detergents.
  3. To critically examine the impact of price differentials on customer patronage on Omo and Elephant detergents.
  4. To serve as a point of reference to other brand of manufacturing companies especially those that have been experiencing low consumer patronage.


1.4       Research Questions

            The following research questions are formulated in line with the research objectives:

  1. What are the likely reasons for price differentials of Omo and Elephant detergents?
  2. What is the level of competition among Omo and Elephant detergents?
  3. What is the impact of price differentials on customer’s patronage on Omo and Elephant detergents?

1.5       Needs and Significance of the Study

            The major significance of this study is that it would help detergents manufacturing companies to know what customers think about their products and how price affect consumer patronage. It would also serve as a reference to the general public, especially students who would like to carry out study on the impact of price effect differential on consumer patronage.


1.6       Limitation and Delimitation of the Study

The scope of the study is limited to the Federal Polytechnic Bida community. It is therefore imperative that all enquires or research would be done within the boundary specified in the study. This study is also limited to Bida town, which might not truly represent other towns or cities in terms of price of these items.


There are some factors that constitute problems during the process of this research work:

  1. Finance: The role of finance cannot be over emphasized in a project like this. This has highly affected the research work.
  2. Time: The period within which this project is being carried out is grossly limited. Date collected involves running around.
  • Lack of cooperation: Some of the respondents did not give due attention which is another major limitation.


1.7       Definition of Terms

–           Price: The term price goes by various names and it is all around us. Price is what one gives up in exchange for a product or services. It can also be seen as agreement between the buyer and the seller concerning what each is to receive.

–           Pricing: The device for translating the value of the product into qualitative term at a point in time.

–           Marketing: This is a total system of business activities designed to plan, price, promote and distribute wants satisfying goods and services to present to customers or consumers.

–           Product: A triangle or intangible good that can be offered for customer satisfaction.

–           Patronage: This is customer support to start laying goods from a shopkeeper.


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Full Project – Effect of price differential on consumer patronage for Omo and Elephant detergent