Page 1 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 109
Creating Value for Made in Nigeria Goods: An Issue to Improve the
Performance of Small Business Sectors in Nigeria.
Iliya Bawa1, Ogunbiyi Victor2 and Mohammed Munirat Nma3
1
department of Marketing School of Business Studies Federal Polytechnic Nasarawa Nasarawa
State, Nigeria
Email:Iliyabawa84@Yahoo.Com; Email:Ogunbiyiv@Gmail.
EMAIL:muniratuma@hotmail.com
ABSTRACT
The proliferation of imported goods, many
of which have achieved enviable market
position in Nigeria, present a difficult
challenge for small business sectors in
Nigeria. Consumers acceptance of made in
Nigeria goods is low, these has affected the
performance of most small business sectors.
The objective of this study is to find out the
reasons why Nigerians prefer imported
goods and to encourage the acceptance of
made in Nigeria goods. Value creation has
been recognized and practiced by largely
the big organisations. Though small
businesses are known to equally create
value, yet very many of them have not
mastered methodical approach for
engraving this into their marketing
activities. This paper therefore examines
value creation within the small business
context. A representative sample of 50
organisations was randomly selected from
Kano, Ibadan, Owerri, Enugu, Jos, Abuja,
Calabar, and Lagos. In addition, a sample
of 500 consumers was randomly selected
from each of the 8 major cities of the 1000
questionnaire distributed, only 850 were
returned. After editing 800 were found
worthy of analysis. The chi-square analysis
shows that creating value for goods will
improve the performance of small business
sectors. This paper recommend that for
small business sector to remain ahead of
their foreign industries and improve their
performance, they must constantly engaged
in research ultimately to identify and adjust
to changing market trends.
Key Words: Value creation, acceptance,
small business, customers, imported,
performance.
SECTION I
Introduction:-
The current business environment
predisposes companies to seek for strategies
to optimize revenue, profitability and
customer satisfaction.
Value is defined as the satisfaction
(both tangible and intangible) that is gained
by using a product. It involves a subjective
assessment of tangible as well as intangible
benefits obtained in a consumption
experience (De C’hernatony et al; 2000;
Moller and To”rro”nen, 2003; Parasuraman,
1997). Further, it represents the functional
and psychological benefits of a particular
product perceived by consumers, relative to
competing product offerings. (De
Chernatony et al... 2000). The value – in –
use philosophy of value creation has been
Page 2 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 110
traced to Aristotle (1959). Which “views all
productive activity holistically in terms of its
ultimate impact on the consumption
experience” (Pirog and Smith, 2011:68).
Following from this orthodoxy, value can be
said to be created by users/consumers using
resources of the production system. Thus,
the value of a product is defined by the
individual consumption experience,
suggesting that a particular product can have
varying value index depending on the
perception of various consumers.
In this regard, the general perception
of Nigerian consumers for both made in
Nigeria product and foreign made one is
clear. Most Nigerians prefer foreign made
products to Nigerian made ones and use the
former for special occasion and activities.
They rather go for foreign made products for
the mere facts that they are made far away
from home. They also go for foreign made
products that are conspicuously labeled
‘foreign’ and do not mind putting on locally
made products that carry foreign labels.
The inability of the small business
sector or Nigerian manufactures to produce
highly qualitative products to satisfy their
market may be the major cause of this
massive demand. Urgent step should be
taken to ensure that made in Nigerian goods
are given a face-lift (value creation) to
ensure constant patronage of the locally
made goods.
Today, value creation for locally
made products should be the first thing any
company should face in its day to day
activities. The changing business
environment offers challenges and
opportunities to the organisations. The
changing customers perception of quality
poses unique challenge. Excellence in
quality has become an imperative for
organizational sustainability (Lewis et al
1994). It is a useful strategies that
organisations applied to products and
services to achieve their goal and objective.
It create or build positive image about an
organisation and its products.
From a financial perspective, value is
seem to be created when a business earns
revenue (or a return on capital) that exceeds
expenses (or the cost of capital). It is seen to
represent intangible drivers like innovation,
people, ideas and brand. Creating value for
customers help sell products and services,
while creating value for share holders, in the
form of increase in stock price, insures the
future availability of investment capital to
fund operations. Thus, Encyclopedia of
business (n.d) argues that value creation is
increasingly being recognized as a better
management goal than strict financial
measures of performance, many of which
tend to place cost-cutting that produces
short-term results ahead of investments that
enhance long-term competitiveness and
growth.
Value creation therefore forces an
organisation to adopt a long-term
perspective and align all of its resources
toward future goals. What are the perception
of customers about made in Nigerian goods?
Are they satisfied with the services provided
by the business sectors? Why do Nigerians
prefer imported products to made in Nigeria
goods? How do these small businesses
implement the customer’s delivery value?
What are the solutions to the problem
Page 3 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 111
encounter during implementation? This
paper intend to provide answers to these
questions.
Statement of the Problems:-
Consumers acceptance of made in
Nigeria goods is low. They have negative
perception toward the acceptance of made in
Nigeria goods and these has affected the
performance of most small business sectors
in Nigeria.
Objective of the Study:-
- To investigate the perception of
Nigerians about made in Nigeria
goods
- To determine the level of satisfaction
with made in Nigeria goods
- To find out the reason why Nigerians
prefer imported goods.
- To identify the different ways small
business sectors create value for their
products and services and the
problems encountered during
implementation.
- To encourage the acceptance of
made in Nigeria goods and make
necessary recommendation to the
business sectors on how to improve
production.
Test of Research Hypothesis:-
Ho: Creating value for goods does not
improve the performance of small
business sectors
Hi: Creating value for goods will
improve the performance of small
business sectors.
SECTION II LITERATURE REVIEW:-
Value Creation:-
Value creation is making products
and providing services that are useful to the
customers. Such value creation is based on
product and process innovation and on
understanding of customer need with speed
and precision as enshrined in the product,
place, promotion and price strategies
(Ziethaml, 2009) value creation is a strategy
art. It provides the intellectual frameworks,
conceptual models, and governing ideas that
allow a company’s managers to identify
opportunities for bringing value to
customers and for delivering that value at a
profit.
However, in a fast-changing
competitive environment, the fundamental
logic of value creation is also changing and
in a way makes clear strategic thinking
simultaneously more important and difficult.
Value creating productive labour is labour
exchanged against capital (Marginson,
1998). Value is said to be created when a
business earns revenue that exceeds
expenses and also translates to high standard
of living and quality of life (Asikhia, 2009).
Value creation is represented in the
marketing, resources and capabilities
depicted in product, place and promotion
strategies of the firms. Our traditional
thinking about value is grounded in the
assumptions and the model of an industrial
economy.
According to this view, every
company occupies a position on a value
chain. Upstream, suppliers provide inputs
(Normann and Ramirez, 1993). The
company then adds value to these inputs,
