CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Homemade products are products that are manufacture in Nigeria; Nigeria being among the third world country needs to produce and promote her products to balance the economy in the areas of growth, stability and development; although there may be effect on the country of the product’s origin on consumer’s perception of such products. Consumers usually have several options in their choice of product consumption (Schooler, 2010; Ahmed and d’ Astous, 2012, 2013; Ahmed and Xia Yang et al. 2013). Consumers’ associate specific image to products from given country; such images are influenced by a number of variables including national characteristics, economic and political background history and traditions (Nagashima, 2010)

The global manufacturing industry is increasingly competitive and concentrated, as consumers now have access to different markets far much more than they have had a decade ago. Consumers can easily compare products, authenticity and prices around the world as a result of innovations in the communications and transportation which has made the markets more complex (Daniel, Radebaugh and Sullivan 2010). In Nigeria today, they are several factors which may affect the consumer perception towards the preferences of home made products; some might be the level of technology, the availability of information resources and materials for the production of products (Ahmed, 2012). Previous studies on the Nigerian manufacturing and service industries have shown that Nigerians have unfavourable attitudes towards home-made products (Koleagha et al. 2013; Njoku 2014).

On the other hand the satellite TV is one of the recent technologies coming to Nigeria; some of the satellite TV includes the CONSAT, ACTV, Multi-choice DSTV, HiTV, Chinese owned startimes etc. The Chinese-owned star times has significantly increase the level of competition in the market among other satellite TV providers such as consat TV, Africa cable television  (ACTV), DSTV, GoTV, HiTV, CTL, Metro-digital TV, Montage Cable network, MYTV, MultiTV, Daarsat  and Trend TV.

In 2003, this researcher Wimmer, (2010) had conducted an M. Phil study on satellite television titled “Satellite television Network in Nigeria: Introduction, Development, Prospects and Dilemmas.” The outcome of the study (M. Phil) has now been used in this research, leading to the effects of satellite television and the perception of people towards its patronage. Zia (2003) quotes “In Nigeria, satellite television network was initiated in Karachi in early 1980s and by 1998 was introduced in almost all the big cities of the country but functioned without rules and regulations. The year 2000 witnessed a mushroom growth of satellite television network all over Nigeria after the government legalized satellite television network”.

According to Aziz (2013) in 2012 almost four million households were enjoying its services in the country. Satellite television viewership is no more restricted to the upper-middle class only; with the availability of low-priced television and cable connection, it has become a common household facility for the lower class as well. Viewers have access to a variety of channels from local to foreign, which provide them an opportunity to watch all types of programmes. Zia (2012) quotes, “The reasons for this rapid growth of satellite television included easy access, low cost, access to satellite channels and a huge television viewership

was based on entertainment only”.

According to Nigeria Electronic Media Regulatory Authority, the subscription of satellite television in Nigeria has increased from 0.2 million in 2003 to 0.35 million in 2006. Satellite television subscription to 0.35 million households in Lahore increases the chances of its effect/influence on the viewers as findings of a pilot study with 1200 sample size, conducted by the researcher showed that majority of them (60 percent) are spending 2-3 hours daily to watch satellite television. There are so many service providers in Nigeria when it comes to satellite television provider such as DSTV, GOTV and TSTV. The TSTV seems to be the newest technology in Nigeria with beneficial specifications so as the provision for the pause of a particular subscription plan; a benefit that is not on other cable television service providers like DSTV, startimes and GOTV. The study will examine the perception of Nigerians towards the lunch of TSTV.

1.2 STATEMENT OF RESEARCH PROBLEM

The introduction of satellite TV in Nigeria is very important to the socio-economic well being of the consumers of the products; despite the recent developments, the satellite TV is a nightmare for most people living in Nigeria; reason being that the majority of the satellite TV providers in Nigeria focus on establishing in big cities (Lagos, Kano, Kaduna, portharcout and Abuja); thereby making people living in most of the smaller cities or town to patronize the free terrestrial direct-to-home (GTH) TV cable for the multi-channel television. The above issue led to the introduction of TSTV which is a homemade product; but the problem of pricing for the TSTV might become a problem; most of the home made product tend to be cheaper than the foreign products; the create a kind of image in the mind of consumers; some may see it as been inferior while some with low income may patronize it.

1.3 AIMS AND OBJECTIVES OF STUDY

The main aim of the research work is to examine Nigerian made products and analyze the perception of Nigerians on the lunch of TSTV. Other specific objectives of the study are to:

1. to determine the effect of location on the patronage of TSTV in Nigeria
2. to determine the extent to which pricing affect the patronage of TSTV compared to other satellite TV providers
3. to examine the effect of the authenticity of TSTv services on consumer preference for other satellite Tv

1.4 RESEARCH QUESTIONS

The study came about the research questions so as to be able to answer the above stated objectives of the study. The research questions for the study are stated below as followed:

1. What is the effect of location on the patronage of TSTV in Nigeria?
2. To what extent does pricing affect the patronage of TSTV compared to other satellite TV providers?
3. What is the effect of the authenticity of TSTv services on consumer preference for other satellite Tv?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: the location of TSTv establishment has no significant effect on the rate of patronage

H1: the location of TSTv establishment has significant effect on the rate of patronage

1.6 SIGNIFICANCE OF STUDY

The study on Nigerian made products and the perception of Nigerians on the lunch of TSTV will be of immense benefit to Nigerians, the TSTV Company in the sense that the study will educate Nigerians on the need for choice and behavior towards a certain commodity; the study will educate Nigerians on the need to patronize the locally manufactured products because it will act as a motivational factor to the manufacturers of such products and also boost the economic development in Nigeria. The study will also assist other researchers that wishes to carryout similar research on the above topic.

1.7 SCOPE OF STUDY

The study will focus on the Nigerian made products and the perception of Nigerians on the lunch of TSTV; the study will cover consumer behavior, made in Nigeria products and dimension of consumer behavior for a period of seven (7) years (2010- 2017)

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

The following terms used in this study should be taken to mean the following.

PERCEPTION

Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and cohered picture of the world.