CONSUMER ATTITUDE TOWARDS MADE IN NIGERIAN PRODUCTS

(A STUDY OF ABA MADE LEATHER WORKS)

ABSTRACT

It was in recognition of the fact that a favourable attitude towards locally manufactured

leathers in needed for the Nigeria leather industry tosurvive the present intense competition with

foreign leather, that this research work was born. The work is a study of the Marketability of made-

in-Nigeria leather.

The research is aimed at analyzing various factors that influence consumer response to made

in Nigeria leather. It was also aimed at finding the consumer perception of quality, price, colour and

design of made in Nigeria leather.

The study was expected to help the locally leather industry identify areas in their production

and marketing activities that need to be reviewed and improved upon. Data were collected using

structured questionnaires and interview guides from consumers. Secondary data were collected from

journals, publications and related works.

A sample size of 384 respondents was used for the study and the chi- square statistical tool

was used in the analysis of primary data at 5% level ofsignificance.

The study revealed that consumers still perceive made-in-Nigeria leather as being of relative

lower quality and price than that offoreign leather

 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

To a large extent, the coming of white man into Nigeria contributed to the importation of wears

including children and adult wears. Formerly, these wears were for the colonial master, their

facilities and few rich Nigeria that could afford them. But as we goy accustomed to western culture,

search for imported goods became great. This brought some manufacturers of these wears for

instance Bata into our country.

Presently, out quest for western culture has led to establishment of indigenous enterprises which are

mainly located at Aba and Onitsha. Though most of these goods are of highly quality. Nigerians are

not satisfied with them, due to inferiority complex, hence the name “Aba made” “Onitsha product”

and so on. If such persist, in no distance future, it will eradicate all effort being geared towards self

reliance. It is in the light of this that government embarked on campaign to disabuse the mind of

Nigerians from foreign goods; hence the establishment of structural adjustment program (SAP) in

1986 and organizing of made in Nigeria trade fair by chamber of commerce. The essence of these

establishment are;

- To increase our domestic production and encourage the consumption of them.

- To bridge the gap between the rich and the poor.

How ever, this effort has achieved little as Nigerians continue to question for foreign goods. For

instance locally made children clothing cost about N600 while foreign cost the least N2000. also Aba

made shoes and bags can be bought at N700 where as a foreign of the same design and even

sometimes of the same quality well be bought for N200 and N300 respectively. Despite the variation

in price, customers still purchase imported wears for them selves. This has imposed problems on the
nation since the money spent on there foreign wears could be diamered to other economic ventures

thereby increasing the economy of the nation.

Nigeria a attitude towards made in Nigeria goods is a poor that even second hand foreign goods are

regarded better off than first class made in Nigeria goods. If this trend continues at this rate, most

domestic enterprise will be shut down, hence affecting our economic development as unemployment

will rise, therefore consumer attitude towards goods has to be given considerable thought.

Factors that influence consumers in their purchase decision is very necessary to be known by every

organization. So as to make affective the concept of marketing that states that organization effort has

to be geared towards satisfying the needs and wants of consumers. Therefore this research is aimed at

investigating the attitude of consumer toward made in Nigeria goods.

1.2 STATEMENT OF PROBLEMS

There are both large and small scale firms that deals on women wears in Nigeria, and few of them are

here in Enugu. The increase in trend of this firms every year shows that there are different styles,

brand and qualities of women wears. However, autony these brands, imported ones are of highest

quality and cost so much that it dampens the desire of average Nigeria who finds it very difficult to

meet up with the price. Despite this, importation of women wears continue to rise especially the

second hand ones.

Also, some of these products are being smuggled in without made difficulties, one can easily inferred

that increase in importation of this wears is as a result of what it enjoys over the locally made ones. If

they are not being bought more than locally, made ones, there is bound to be a decrease in its trend as

years roll by. Since this situation is of economic malaise, it deserve attention and solution.

Owing to the fact that technology originated from the western people, many people associate their

goods with quality. Nigerians being one of these that want the best in most cases, prefer foreign
 goods to locally made ones. This research work will find out to what extent this nation affect the

demand for locally manufactured women wears and what justification consumers have for the

preference it is true. Also, this work will find out if the style and design of these wears actually meet

the consumers needs and wants.

Marketing oriented companies base their marketing programme on consumer perception and demand

intensity perception is the meaning a person attaches to a given situation base on the accumulation of

the persons past experience. This wears that a person’s behaviour is influenced by his understanding

and interpretation of the given situation based on the past experience. Hence, perception is observed

as a key to value quality and price to be attached to it.

Therefore, this work will measure the perceived value and quality of locally, manufactured women

wears is a similar problem of this research work.

The research is therefore aimed at addressing the above mentioned points, it is believed that such

knowledge will assist the local leather industry in gaining a better patronage from the consumers.

1.3 OBJECTIVES OF THESTUDY.

This research therefore aims at;

 Identifying the factors that are responsible for low patronage of Made in Nigerialeathers.

 Identifying the factors militating against the growth of the local leather industry.

 Identify the factors that influence consumer response to Made in Nigerianleathers.

 Proffer solutions on how to solve the problems militating against Made in Nigerialeathers.

1.2 RESEARCHQUESTIONS.

The prevailing situation as narrated above raises some crucial questions:

 What is the consumer‘s perception of the quality of made in Nigerian leathers in relation to that of
foreignleathers.

 What is the consumer‘s perception of the price of made in Nigeria leathers as

compared to that of foreignleathers.

 Which is the most influential / critical factor in consumers patronage of leathermaterials.

1.3 RESEARCHHYPOTHESIS;
The following hypothesis were postulated to guide the research, Ho1:Consumer’s perception of the

relative quality of made in Nigeria leathers has no impact on their patronage of made in

Nigerialeathers.

Ho2; :Consumer’s perception of the relative price of made in Nigeria leathers has no impact on their

patronage of made in Nigerialeathers

1.4 SIGNIFICANCE OF THE STUDY.

In view of the foregoing aspirations, this work seeks to examine consumer attitudes towards

“made-in-Nigeria” goods. An attempt will be made to determine the image of “made-in-Nigeria”

goods as seen by consumers and to explain the factors contributing to that image.

It is hoped that the result of the study will contribute in no small way to an understanding of the

influences affecting “Made-in-Nigeria” goods in the market. Such an understanding should

conceivably help all who are involved in leather Industry development to make better decisions.

It is hoped that the findings of this study would give manufacturers of locally manufactured leather

the knowledge of how to make local leathers more marketable through winning a favourable
 consumer response to its products.

1.5 LIMITATIONS AND SCOPE OF THESTUDY.

This work is an attempt to research into the problems and prospects of marketing made in Nigeria

goods with particular reference to leathers products. The study will be based on relevant data gathered

within Aba.

Internal and External factors impair marketing local products. This study will be however,

limited to marketing mix elements, product, price, promotion and place.Time posed a serious problem

to the researcher as the reseacher have very busy work schedule to attendto.

1.6 DEFINITION OFTERMS.

CONSUMERS;These are final users of goods and services.They may or not be the buyer of the goods

andservices.

CONSUMER BEHAVIOUR;Engel et al described consumer behaviour as consisting of those acts of

individuals directly involved in obtaining using economic goods and services including the decision

processes that proceed and determine theseacts.

CONSUMER RESPONSE;This is the mental or physical activity a consumer makes to a

stimulussituation.

DEMANDS;Human needs backed by buyingpower.

MARKETS;These are individuals and organization who are the actual and potential buyers of the

product or service.
leather; Woven materials mainly used as clothing.

LEATHER INDUSTRY; Industries manufacturing materials mainly used as shoes and bags.
 CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION

This chapter is aimed at identifying, reviewing, analyzing and appraising previous studies, works,

theories, opinions and comments that have some significance to the study.

2.1 THE CONCEPT OF CONSUMERBEHAVIOUR

Ifezue (1997) opined that product-buying motives may be defined as all impulses, desires and

consideration of the consumer which induces the purchase of goods and services.

So, rather than creating or producing products and later hard-selling them

toconsumer,themarketermustfirstfindoutwhattheconsumerneedsor

wants. The knowledge of who the consumer is, helps the marketerin finding out why, what, when and

how consumers buy and the array of factors which influence them. We see from all these view points

that the objective of consumer orientation is the delivery of consumer satisfaction. That is why a

renowned marketing scholar, Philip Kotler, advocates, “looking at business with the eye

of the consumer”. The societal and environmental concept preached that every businessman or

organization owes an obligation to the society it operates. The concept calls upon marketers to

balance company’s profits, consumer wants satisfaction with societyinterests.

A quick look at the various concepts discussed, one can easily conclude that the concept mostly

practiced by Nigeria markets is the selling concept. Most of them believe that consumers if left alone

will not buy enough of their company’s products, they therefore advertise and promote products just

to dispose off company’s goods without giving consideration to what the consumer actuallyneeds.

The Consumer
All activities in any business must be focused on the consumer; any business unable to provide goods

and services that will fulfill the needs and

satisfy the wants of consumers has lost its prime reason for existence. It will not survive in a

competitive environment. Consumers judge business performance and determine business destinies

by the manner in which they, the consumers, exercise their purchasingpower.

The term “Consumer behaviour” has been viewed from many vantage points by various authors. A

consensus seems to be a mirage. The study of consumer behaviour as “those acts of individuals

directly involved in obtaining and using economic goods and services, including the decision process

that precede and determine those acts”. This definition throws light to the subject matter, but does not

give fuller meaning of the subject. However, Achumba (1996) respectively seem to have wider

acceptance.

Achumba (1996) defined consumer behaviour as, “the activities people engage in actual or potential

use of market items whether products, services, information or ideas”. William (1982) defined

consumer behaviour as, “all purchases related activities, thoughts and influences that occur before,

during and after the purchase itself as performed by buyers and consumers of products and services

and those who influence the purchase”. The above definition embraces others and went further to

include influences on the consumers.

The forces that influence the consumer are grouped into two: namely, psychological and

environmental forces. The psychological forces consist of attitude, learning, perception, personality

and self-concept. On the other hand, the environmental forces influencing the consumers comprise

culture family, social class, group influence, economic; otherwise. Circumstances, socialization,

education, promotional communication and pricerelationship.

Actually the study of consumer behaviour is concerned with the questions why do consumer behave

the way they do? How does consumer learn about new products? How can consumer’s impressions

and opinions be modified?

Watson (1975) defined consumer behaviour as the way people act in exchange process. This

definition has its core as the exchange process. It does not consider those activities that proceed the

exchange process.

James Engel (1978) defined consumer behaviour as those acts of individuals directly involved

in obtaining and using goods and services including the decision processes that determine these acts.

This definition throws more light to the subject matter but in it’s entirely does not give a fuller

meaning of the subject.

The definition of consumer behaviour by loudon (1982) as the decision process and physical

activity individuals engage in when evaluating, acquiring

and using economic goods and services, did not add much information to the earlier ones. However

the definition given by Williams (1982) seems to gain wide acceptance. He defined consumer

behaviour thus;

“all purchase related activities, thoughts and influences that occurs before, during and after the

purchase itself as performed by buyers and consumer of products and service and those factors which

influence the purchase”.

This latest definition embraces all the points mentioned by the other authors and goes further

to include influences on theconsumer.

However, the definition given by the American Marketing Association tends to summarize all

the definitions. They defined consumer behaviour as the dynamic interaction of cognition, behaviour

and environmental events by which human beings conduct the exchange aspects of their lives. This

definition pinpoints at least three important ideas. These involve the idea that consumer behaviour is

dynamic, that it involve interaction between effect and cognition, behaviour and environmental event

and that it involves exchange.

First,thedefinitionemphasisthatconsumerbehaviourisdynamic.Thismeans that individual

consumer, consumer groups and society

atlargeareconstantlychangingandevolvingovertime.Thishasimportantimplicationsforthe study of

consumer behaviours as well as for developing marketingstrategies.

In terms of studying about consumer behaviour, the study isusuallylimitedto specific time

periods, product and individuals or groups. In terms ofdeveloping

 marketing strategies the dynamic nature of consumers behaviour implies that one should not expect

the same marketing strategy to work all the time, across all products, markets andindustries.

The second important point emphasized in the definition of consumers behaviour is that it

involves interaction between the effect, cognition, bahaviour and environmental events. This means

that in order to understand consumer and develop superior marketing strategies, we must understand

what they think (Cognition) feel (affect), what they do (bahaviour) and the things and places

(environmental events) that influences what consumers think, feel and do.

A final point emphasized in the definition of consumer behaviour is that it involves exchanges

between human being.

Marketing executives on their part have often sought to understand the concept of consumer

behaviour by carrying out research into knowing what the wants of consumers are, why they want a

particular product, where how and when they need these products. Such knowledge gathered

according to Fojt. m (1994) enables industrialist to monitor their production to suit the consumer’s

desire at any point in time.

2.2 Factors Influencing Consumer Response to aProduct:

Consumer purchases are influenced strongly by cultural, social, personal and Psychological

characteristics.
 In making decisions as to what to or not to buy, these four characteristics come to play on his

personality or disposition these internal and external influences are responsible for the purchase

decisions he makes. They influence him as he passes through the buying decision process.

CULTURAL INFLUENCES:

Culture is defined as the complex of values ideas, attitudes and other meaningful symbols created by

people to shape human behavior as they are transmitted.

A consumer decision on clothing materials to purchase could be influenced by his/her culture.

For instance the current fashion trend could affect a consumer’s choice of clothing material as he

attempt to be culturally acceptable.

A man’s culture is usually identified by his style of clothing and an individual in order to be

culturally identified and accepted adopts a particular clothing style that depicts his or her culture

mostly in various situations such as traditional ceremonies etc.

MOTIVATION
A person has many needs at any given time, some are biological arising from states of tension

such as hunger, thirst or discomfort, others are psychological arising from the need for recognition,

esteem or belonging.
 Most of these needs will not be strong enough to motivate the person to act at a given point in

time. A need becomes motive when it is aroused to a sufficient level of intensity. A motive is

therefore a need that is sufficiently pressing to direct the person to seeksatisfaction.

LEARNING:

Learning is defined as changes in behaviour arising from past experience. It occurs through

the interplay of drives stimuli, cues, responses and reinforcement. For example a consumer drives for

high esteem becomes a motive when it is directed towards a particular stimulus object. In the case of

a piece of rayon lace materials, her response to the idea of buying the piece of material is conditioned

by surroundingcues.

Cues are minor stimuli that determine when, where and how the person responds. Seeing a

friend wearing that particular clothing material is a cue that can influence the consumer’s responses in

buying the piece of rayon lace materials.

Assuming she buys the piece of materials, if the experience is rewarding. She will probably

buy more of the material next time.

BELIEFS AND ATTITUDES:

 A belief is a descriptive thought that a person has about something. These beliefs may be

based on real knowledge, opinion or faith and may not carry an emotional charge.

People have attitude regarding religion, politics, clothes, music, food etc. attitudes describe a

person’s relatively consistent evaluations feelings and tendencies toward an object or idea attitudes

put people into a frame of mind of liking or disliking things, or moving towards or away from them.

SOCIAL INFLUENCES

Consumer’s buying decisions are influenced by the people in the buyer’s life and we refer to such

influence as social factors, social factors include reference groups and family.They influence

behaviour in two ways: provide behavioural standard and norms as well as represent sources of

information for decisionmaking.

REFERENCE GROUPS:

Include those groups that can influence a person’s attitudes, opinion and values such as close

friends, neigbours, fellow students, family and so on.

2.3 The Concept of Made in NigeriaGoods

“Made-in-Nigeria” goods can be said to be goods manufactured in Nigeria by manufacturing

companies based in Nigeria using mainly locally sourced materials.

From inception there have been goods locally processed or manufactured in Nigeria. However, these

goods were given recognition in the early 60s when Aba based local entrepreneurs started imitating

and producing shoes that could be compared with imported ones. It is also on record that prior to this

breakthrough in entrepreneurship there has been resounding success in local art work e.g. the bronze

work of the ancient Benin Kingdom, the fire works of the Awka craftsmen, the carvings of the

ancient Oyo Empireetc.

Agriculture has been our main stay as a nation but proceeds from farm are primarily unprocessed

staple food such as cassava, cocoa, palm products, etc. From the above, it can be said that the earliest

effort of Nigerians on Micro industries was that of “made-in-Aba” products in early60s; little wonder

then inferior and substandard goods of the 60s were tagged “Aba- made goods”. It was so until the

70s when the indigenization/ enterprises promotion decree of 1972 was promulgated. This decree saw

Nigerians at the helm of affairs controlling multinational companies. These companies were

producing goods that cannot be compared with that of their parent companies.
Consumers now saw the needs to differentiate products, thus the name “made-in-Nigeria” goods’

came into being. As at today, all goods manufactured or processed in Nigeria are classified as “made-

in-Nigeria” goods.

The explanation usually given for the ban on importation of goods borders on the protection of the

indigenous industries and a check on the foreign exchange drain which unbridled importation of

goods engenders. The aim is to force, albeit subtly, the consumers to patronize home made goods.

How successful this aim has been achieved is very controversial depending on which side of the

argument one finds oneself. But if the experience had during the made-in-Nigeria permanent

exhibition of 1979 is anything to go by, then the government still has to find solution to the apparent

aparthy towards home madegoods.

The objective of the made-in-Nigeria exhibition was to “create a sense of awareness for the

manufacturing industries in Nigeria so that their products could be patronized like those of advanced

countries which are imported into the country”. Abimbowo (1979) During the exhibition it was

observed that people did not visit the site of exhibition.

What is responsible for this attitude of Nigerians towards goods made in the country? Has the nature

of the products any part to play? Is it a case of prophet not being accepted in his homeland?

Attitude is defined as the learned predisposition to respond in a favourable or unfavourable manner to

any given attitude object. Attitudes refer to the stand an individual upholds and cherishes about

objects, issues, persons, groups, or institutions. Having an attitude means that the individual is no

longer neutral towards the referents of an attitude. He is for or against, positively inclined or

negatively disposed in some degree toward them – not just momentarily, but in a lasting way, as long

as the attitude in question isoperative.

The problem of whether an individual will change his attitude depends on how he categorizes a

communication and the communicator.

Made-in-Nigeria products can be classified into three groupsnamely:

(a) Goods transplanted into Nigeria. Examples are Coca Cola, Fanta, Guinness Stout.

(b) Goods adapted for Nigeria. Examples are leathers and ready made garments.

(c) Indigenous products. Examples include native drinks,

agricultural products and Akwetecloth.

Productivity, from the foregoing implies management of the relationship between quality and

quantity to ensure better business performance. Literally, business performance may be defined as the

degree of market- shareholding by a business.

As we are aware, quality is a relative term and the basis for comparism of made-in-Nigeria goods

with imported goods should therefore be in relation to the degree of conformity of either goods with

the relevant Nigerian industrial standards/Nigerian quality benchmarks. There is no denying the fact

that in the recent past, ignorance and ego contributed to preference of imported goods to made-in-

Nigeria goods by Nigerian consumers. During this era, most Nigerian importers colluded with some

foreign exporters and flooded our markets with substandard goods to the detriment of the economy.

Besides this, Standards Organization of Nigeria (SON) and other regulatory agencies were then, not

fully involved in port operations. However, the situation is different. Quality awareness and bringing

order or sanity in the importation business are assured today. Our economy should be better for this.

With the increasing awareness on quality issues by consumers coupled with the curbing of activities

of the economic cankerworms, the stage is set for Nigerian business to effectively implement quality

tools forbetter
 performance of their products in relation to imported goods.

Better performance of goods issynonymous

2.4 FACTORS THAT INFLUENCE MADE-IN- NIGERIAleatherS.

Export Market Problems and Prospects.

Michelin has recorded success in the export of tyres made in Nigeria. When they began to explore the

idea of exporting “made in Nigeria tyres” to other countries, they met with skeptical reactions from

quarters where it is believed that “made in Nigeria” goods will not be acceptable on the

internationalmarket.

However, they have succeeded because of the quality of their tyres. Currently they export truck tyres

from Port Harcourt to South Africa, Morocco, Algeria, Egypt, and Lebanon, and Tanzania to name a

few countries.

The Michelin’s experience brings to light some important facts that the Nigerian business community

must recognize:

1. To be truly competitive in today’s business world a company must establish and/or maintain
internationalstandards.

2. This is very important in the areasof:

a. Quality of products andservices.

b. Quality of men andmaterials.

2. A direct off-shoot of the first point is that a good quality product no matter where it is made will

appeal to customers wherever they are. “Made in Nigeria” goods will sell anywhere, if they meet the

quality standards and needs of the target customers.

However, in going forward, we must not fail to point out some areas of difficulty:

b. Cumbersome AdministrativeProcesses.

The logistics of actually getting the products to the country of export can be very cumbersome,

because of the rigor, and the complex administration at our Nigerian Ports. This leads to failure in

meeting the customers’ delivery deadlines, which is unacceptable in international trade.

c. Theft:

There are recorded cases of theft where the containers arrive the port of destination with fewer

exported commodities.

d. Multiple levies, high duties &tariffs.

One major problem for manufacturers is the issue of multiple taxation and hidden costs of doing

business. There are many levies/tariffs/indirectand

direct taxes, all of which cumulatively place a heavy burden on manufacturers as they result in

increased cost.

Problem of Price Elasticity:

In reality, price elasticity vary according to the direction of price changes, a brand’s price position,

and the magnitude of the price change. Buyers, in general, are more sensitive to perceive price

increases than to perceive price decreases. In practical terms, the difference in relative price elasticity

between price increases and price decreases means its easier to lose sales from current buyers by

increasing price than it is to win sales from new buyers by reducingprice.

Problems of Promotion

Researchers have made important advances in understanding both consumer and competitive

response to advertising and promotion. Researchers have also quantified consumer response to

promotion in terms of brand switching, repeat purchase, stock piling and consumption. Ailawadi

(1998) investigated the extent to which advertising attracts new users and retains loyalcustomers
A major problem inherent in marketing local products is inadequate advertisement. Alego (1992)

Review of related literatures suggest that most local footwear manufacturers depend on an

advertisement and publicity to bring their products to the knowledge of consumers and to create the

desire for their products. Empirical findings also suggest that personal selling and sales promotion are

less common in marketing locally made products.

Problem of product

Previous studies have shown that Nigerians have unfavourable attitude towards home made goods

because of the perception that local made goods are inferior in quality to imported substitutes Aire

(1973). Researches have also shown that poor product packaging negatively affects marketing home

made goods. Sobowale (1997). Postulates that enhancing a product with a feature or premium that is

of little or no value to many customers even without raising the price may actually decrease the

popularity of thatproduct.

It has however been confirmed that there is no correlation between income, age and education on one

hand and the desire to buy home made goods, (Okechukwu (1983).
Product is defined as a set of tangible and intangible attributes including packaging, colour, price

manufacturers’ prestige, which the buyer may accept as offering want satisfaction, Stanton (1994).

Problem of Distribution

In recent years, distribution channels traditionally seen as “the economics dark continent and

the neglected side of marketing” have received increased attention. According to one well-published

study, wholesaler-distributor sales are expected to grow in real terms at faster than the economy

through the mid 1990s,Another empirical study found that only 24% of industrial marketers sell

solely direct to end users, while 76% use some types of intermediary channels, McGraw-Hill

Study(1985).

Researches have also shown that because most local firms in footwear industry are either

small or medium scale enterprises, they lack the ability to effectively distribute their products, hence

rely on agents and middlemen Sobowale (1997) and Saha (1983) both of them agree that a major

problem facing local manufacturers is logistic problem. Indeed, studies have repeatedly found distinct

absence of planning and evaluation procedures for channels decision, as a result, marketers

responding to their organizations’ internal structures and performance measurements, also

tend to make distribution decisions on an incremental product-by-product basis, McVey (1961).

Report on the sixth Nigerian Economic Summit (1999) also included logistics and

transportation problems as factors that militate against the growth of marketing in Nigeria.

Distribution channel is the route taken by the title to the product as it moves from the producer

to the ultimate consumer or industrial users, Stanton (1994).

Country of Origin Effects:

The literature in the field of international marketing supports the notion that information on

the country-of-origin of products affects the decision-making process of both final consumers and

industrial customers alike. Decision-makers may exhibit biases in that they either favour domestic

products over imports or view imported products as better/worse than domestic ones simply based on

their origin. Empirical studies indicate there are a number of underlying reasons for the impact of

country-of-origin information, ranging from country stereotypes (positive and negative) playing a

role in consumer product evaluation process to individuals’ outright rejection of foreign-made goods

because of their concern for the well-being of the local economy Bilkey(1982).
 Research also showed that when consumers are asked directly how they feel about products

from a specific country they may express very positive views, yet in the context of actual purchasing

decision process they do not act consistently with these positions. Empirical studies from various

international markets indicate that under normal supply/demand conditions in the market (when a

wide range of domestic and foreign-mode brands are available in any given product category),

consumers will generally prefer domestic products. Primarily due to their patriotic feelings. Terpstra

(1988). Consequently, it is not only important how consumers perceive products of a specific country

of origin, but how domestic products are perceived relative to parallel imports within the same

product category.

Although national reputations for technological superiority, product quality, design and value

naturally vary from country to country, consumers tend to generalise their attitudes and opinions

across a wide range of products from a given country. This stereotyping may also result from the

attitudes of the consumers towards the people of that country, familiarity with the country and its

products, and the background of the consumers, such as their demographic characteristics and their

cultural characteristics. Mass media, personal experiences and the views of national opinion leaders

may also shape the reputation of a country as a producer.

Research has shown that in the developing countries for example, there exists a particularly strong

bias against locally manufactured goods. Other researches postulate that the degree of bias towards a

range of products from the same country may be vastly different depending on the product under

consideration or perceived quality Okechukwu (1994). Country of origin is usually communicated by

the term “Made in (name of country)’.

Country of Origin Effects on Nigerian Consumer Choice

Buy domestic promotions in various countries often urge the citizens to help domestic workers whose

jobs are threatened by imports. Federal government of Nigeria has made several moves towards

ensuring that made-in Nigeria goods are promoted. Some of these moves paved way for the Nigerian

Enterprises Promotion decree. This decree was mainly promulgated to ensure that foreign control

over Nigerian economy was reduced. One of the plans was to encourage the purchase of domestic or

locally made goods or the import - substitution strategy. The import - substitution strategy is a means

of replacing imported goods with domestic alternatives. Instead of taking to importation, small-scale

businesses were encouraged to produce goods locally, which can be used as replacement for the

imported product. Import substitution may also include importation of component Parts and

assembling them locally. Examples ofimport

substitution industries in Nigeria include Volkswagen Assembly plant, Peugeot Automobile of

Nigeria etc.

In the late 1970s, the apathy of local consumers towards products produced locally for the market

knew no bounds with consumers preferring foreign products over and above the locally produced

ones Aire (1973). The deregulation policies of the federal government following the Structural

Adjustment Programme in the late 1980 ushered in the collapse of several local industries that could

not face the onslaught from the deluge of imported products. Consequently, Nigeria became a trading

rather than a production based economy. By 1995 with the tight economic situation experienced

under Abacha regime, it became a little more difficult for the importation of finished goods into

Nigeria as exchange rate hit the roof. ‘Elite consumers’ that had developed tasty appetite for foreign

products suddenly became the leaders of the local ones. Nigeria once again unconsciously started

shifting towards local production. Cottage industries started springing up in the areas of pure water

packaging, food processing, cosmetics, leathers, shoes, etc., but now they are being discouraged and

many are folding up. The advent of civilian administration caused national borders to be wide open as

free trade is embraced and productslike peppermint, toothpaste, soaps, detergents are now being

importedform
Malaysia, Indonesia and India. The implication of this is that the attitude of Nigerians toward locally

made goods will again be lowered.

As noted earlier, past studies Aire (1973), Kalegha (1983) and Okechukwu (1999) had revealed that

the Nigerian consumers possessed a negative attitude towards made-in-Nigeria goods. Okechukwu

(1999) showed that Nigerian made goods (cars and TV.) were rated lowest by Nigerians when

compared with alternatives from overseas (Germany, Japan and South Korea). Following this finding,

there have been serious moves by the government to reverse the situation, It mounted buy domestic

campaigns aimed at persuading the citizenry to look inwards to solve their problems and buy

domestic goods. They stressed that buying foreign goods will endanger the livelihood of domestic

workers. Many other cues are being employed to motivate purchasers to select domestic goods

instead of imported goods.

In addition to earlier indicated factors that influence consumer behaviour, certain marketing

and economic factors influence consumer purchase of made-in-Nigeria leathers.

In reviewing the market and attitude of Nigeria consumers towards made-in-Nigeria leathers,

the researcher wishes to review these marketing and economic factors in relation to its effect on

consumer response to made-in-Nigeria leathers.

PRODUCT QUALITY AND CONSUMER RESPONSE TO

LOCAL leatherS:

Ifezue (1997) opined that product buying motives be classified into two broad categories –

emotional and rational.

Rational motives he explained are those forces, which induces consumers to purchase after

carefully going through a rational process of thought. These rational motives include quality,

flexibility, durability, price etc. hence quality can be said to be one of the rational motives that

influence consumer purchase of a product.

Nnabuko (1998) asserted this by explaining that in evaluating a product for purchase buyers

view products as bundles of attributes that do things for them and normally consider product

attributes such as quality, price, durability, prestige etc. Achison (1999) defined quality product as

that item that is fit for the intended purpose for which that product is commonly bought, as it is

reasonable to expect having regards to any description applied to them.

David (1987) identifies eight factors that determine quality. These factors include

performance, Reliability, durability serviceability, features, Aesthetics, conformance and perceived

quality. However the relative importance of these factors will depend on the item being purchased. In

the
case of leather material the factors that determine quality could rest on durability, aesthetic.

There is a popular belief that the qualities of locally manufactured goods is lower than that of

imported ones. An observable fact of much consumption activity in Nigeria is the consumer’s

preference for imported goods.

Various studies have shown that consumers see quality of a product as a critical influencing

factor in their purchase habit.

Korie (1994), Study on consumer preference of new products in the market, A case study of

flash blue detergents. The results indicated that the quality of any brand of detergent has relationship

with brand preference.

Nwankwo (1994) In his research on consumer preference for different brands of malt drinks in

Aba metropolis. The results showed that the quality, which is measurable by the taste of the malt

drink brands constituted a major factor which determines consumer brand preference for malt drinks.

Ogbuokiri (1996) in her studies on attitude of consumers towards locally manufactured

footwear. She found out that consumers have a negative attitude towards locally manufactured

footwear. This she found out was linked to the perceived quality of made in Nigeria footwear as well

as its lowprestige.
 leathers goods is not left out in this issue of poor quality. Ugwu (1989) in his research on

consumer patronage to General cotton mills Limited Onitsha. His result showed that quality

constitute a strong influential factor affecting the customer patronage.

In his recommendations, he stressed on the need for the company to take cognizance of trend

in consumer taste and aim at acquiring equipment to enable the leather mills to enhance their product

mix and design,

Ahamefule (1994), Research on the problem of small indigenous manufacturing companies; A

case study of Nigerian Garment manufacturing companyAba.

The result obtained indicated that the foreign imported singlets are superior to those

manufactured in the country. Nwafor (1994) investigated on preference of foreign goods to locally

produced ones in Aba. A case study of General cotton mills limited Onitsha. In his findings,

prominent among the reason why consumers prefer foreign materials is poor quality of made-in-

Nigeria leather.

Amadi (1999) in her study titled “An Appraisal of consumer’s attitude towards Nigerian made

leather goods. She noted that consumers are not sensitive to the purchase and use of Nigerian made

prints because of its poor quality.

Product price and consumer response to local leather

Price according to Achison (2000) is regarded as the value of the product measured in terms

of standard monetary unit. From the seller’s perspective it is the value he places on the commodity

and to the buyer it is the amount he perceives he will pay.

This means that price is usually related to the total cost and the value of the product. From

buyer’s perspective, price must be viewed against product quality, delivery and suppliers’ service.

Very often the value of the product is related to buyers sensitivity to price. According to Green

(1964) “Price sensitivity varies with purchases over time and from one set of circumstances to

another. The authors observed that price difference must be significant enough to overcome a buyer’s

anxiety about product quality, service, reliability as he strives to ensure that he purchases the product

at the right price.

In the case of locally manufactured leathers it has been established by various findings that the

price of locally made leathers is relatively lower than that of foreign leather. Agboola (1996) in his

research on consumer response to the quality and resign of made in Nigeria leather as a result of its

relative low price. In the same vein Ugochukwu (1994) in his research on consumer preference for

shoes; A comparative study of consumer’s

attitudetowardslocallymadeandimportedshoes.Hefoundoutthat
consumer only prefer to go for locally made shoes if the price of the shoe is lower than the imported

ones of the same quality, the relatively lower price of locally made leathers would had been

advantage to local manufacturer if it is equally associated with high quality or of the same quality

with that of importedones.

Some are of the different opinion that the relatively lower price of local leather leads to

perceived poor quality as most consumers tend to associate price with quality. Hence a lower price

indicates a lowerquality.

Others believe that price does not always reflect quality and rather believe that only actual

usage can be used to evaluate the quality of a leather material.

With the recent economic recession in the country consumers are now forced to consider the

relatively lower price of made-in-Nigeria leathers in their purchase of leathermaterials.

Impact of Beliefs and Attitudes on Consumer response to Made- in-Nigeria leathers.

Belief is simply the descriptive thought that a person has about something and this has a

significant impact on individual perception and their behaviour.

Schewe (1986) explained attitude as feelings about product brands, retail outlets etc. he

stressed that it is important for markets to remember

that all attitudes can develop only after consumers have learnt that an object exists and what its

attributes are. These attitudes he explained are formed by perceiving information about an object and

evaluating the information.

Infact consumer’s attitude towards a product come from their assessment of the products

ability to satisfy their requirement as expressed in the evaluative criteria. Most products in Nigeria

suffer from rejection and low demand as a result of consumer’s belief and attitudes.

Most authors believe that these beliefs and attitudes are as a result of evaluation of past

experience by the consumer in relation to consumption of localproducts.

Sanyo (1996) made a similar point when he asserted that preference for foreign made goods is

the outcome of experiences gained over a period of years on locally produced goods. The unwashable

fabric, the early consumed electric bulb, the matches that would not produce sparks have all played

their role in turning the mind of the Nigerian consumers against goods produced in thecountry.

He however adds that there are many home made goods, such as cement, soap, which

compare favourably in quality but this not withstanding

thepoorimageoftheinferiorproductstendtoruboffonotherlocally
produced goods irrespective of their qualities. The resulting effect tends to discourage the

consumption of made-in-Nigeria products.

In the case of consumer’s attitude to made-in-Nigeria leather it can be argued that consumer’s

attitude could be due to outcome of experience gained over a period of time with usage of both

foreign and local leathers. In line with various studies reporting on consumer’s complaint of the poor

quality of locally manufactured leathers. It is pertinent to note that the Nigerian consumers have been

able to come up with learned dispositions about local leathers and hence developed a negative attitude

towards locally manufactured leathers.

2.5 General Review of the state and size of the Nigerian leather Industry:

Here the researcher reviewed the variety of leather materials produced by the local leather

industry. A review of the raw materials employed in the production process,the production techniques

employed by these local leather firms as well as every other issues bordering on the marketability of

made in Nigeria leathers.

Nigeria is the largest country in black Africa with a population forecast of 150 million people broken

into 36 states with Abuja as the capital. With this population and clothing being a basic need of life, it

is evidently clearthat
Nigeria constitutes a very large market for clothing items – leather Materials.

The Gross National Product (GNP) or GDP of Nigeria and the per capita income can without

question sustain a vibrant leather industry to satisfy the domestic market and export if possible.

Ironically, this is not the case.

In 1990, there were 175 leather factories operating in Nigeria but today we have 42 epileptic

operators. Only 12 of these can boast of operating at 30% capacity. Among these, 4 leather factories

produce embroidery lace materials as part of their product brands. This further establishes the

inadequacy of the local supply of leather products in Nigeria.

For instance, over $760 million worth of embroidered lace materials/leathers exported from South-

East Asian countries to sub-Saharan Africa annually, at least 75% of this export is consumed in

Nigeria. In other words, Nigeria imports over $540 million worth of lace fabrics yearly. The Nigerian

embroidery lace Co. Ltd. AF print Group Ltd., Bhojsons, Empec Industries Ltd and Kaduna leather

Mills, which are the major local producers of these products can not meet the demand, with an

average annual output of $281 million, when Nigeria annual demand estimate for embroidery lace

alone totals $821.5 million. leather Watch (2004).

In 1990, the Nigeria leather industry was the largest in Africa after Egypt and South Africa. The

industry which currently accounts for less than 25% of manufacturing value added has gone through

various phases of growth. In 1960s, the investment and savings policies induced steady growth which

gave rise to an average of 12.5% growth rate in the 1970s. The recession of the early to mid 1980

dealt with the industry and took its toll. The cumulativeleatherProductionindeed(1972–

2000)declinedfrom4271to

171.1 in 1984 and 112.8 in 2003. The industry recovered in the late 1980’s achieving an annual

growth rate of about 67% between 1985 and 1991, with the embroidery lace alone accounting for

about 20% of the recorded growth.

The industry was the largest employee of labour in the manufacturing sector within these periods.

Capacity utilization integration programme embarked upon by many firms in the industry in

compliance with the government policy issued in the mid 1980’s was a positive contributing factor.

Thus the level of domestic sourcing of raw materials witnessed a steady improvement from 52% in

1987, 57% in 1998 to 64% in1991.

However, this improved performance was not universal among the firms in the industry. The

embroidered lace Fabrics or leather had the reverse experiences. The few producers of lace leathers

who were producing less

than 20% of the total leather output in 1980 dropped to 12% in 1994 and less than 8% in 2003. This

decline could be traced to the quality and quantity of the type of cotton used. For other types of

leather production the level of local raw materials usage increased because they can be obtained

locally while that of the lace material can only beimported.

As at May 29th 2003, 42 leather firms in Nigeria were operating 1,020345 spindles and 57,451 yarns.

This marginal output can only meet 32.5% of the annual domestic demand which still confirms that

there is a large market for leather products in Nigeria. The leather exports constitutes less than 17 of

Nigeria total exports despite the fact that Nigeria has a cotton based leatherindustry.

The Nigeria leather Industry represents:

A strategic non oil industry for Nigeria, though under developed but a potential investment and

industrialization in sub-Saharan African.

The 3rd largest leather industry, in Africa after Egypt and South Africa. The world largest but

singular consumer of lace products of annual demand of about 32.8% of the global output.
In the year 2000, Nigeria leather Industry produced about 500 million meters of all types of fabrics.

In 2002 they produced 72% of the West African, production with the embroidered lace contributing

only12%.

Despite the fact that Nigeria has favourable trade agreements, its exports declined whilst imports

increased dramatically leading to a situation that the Nigerian leather industry has a market share of

about 34% in the home market, it is evidently clear that Nigeria leather product market constitutes a

promising potential market. However, it is imperative to identity these factors that are responsible for

the low acceptance of locally or domestic manufactured leather products.

Definitely Nigeria has many of the prerequisites needed for developing a successful leather and

clothing industry. It has a huge growing domestic demand, availability of well priced raw material,

huge population of young and relatively skilled labour force and a well established tradition in local

leathers. The evidence of this is provided by the existence, in every leather sub-sector of companies

that market the highest world standards. Unfortunately these companies are strained by a number of

factors.

leather Mills in Operations.

Mills in Operation: Equity ownership and management varies from 100% Nigerian ownedand

managedto100% foreignowned andmanagedby

Asian and Lebanese owners. The majority of the mills have been created through

direct foreign

investment. Employment: At present, the sector employs

directly about 57,000persons.

Size of the Industry in the Sub-Saharan Context: Nigeria’s installed short stapling spinning capacity

has a share of 24%, open and spinning of 31% of the sub-Saharan installed capacity. In shuttleless

loom, Nigerian’s share is 35%, in shuttle looms, it is29%.

Production:Nigerian fabric production in the year 2002, represented 72% of the Africanproduction.

Production Focus: the leather industry primarily produces African prints both in real wax and

imitation wax prints. The sector is characterized by little productdifferentiation.

Product: Traditional African Prints, colour and designs do not show big variation between companies.

The background colours are in deep and bright shades. The finished width of the fabric for all prints

is 46.” The sewing operation by local tailor shops.

Product Presentation: Prints are offered in 6 or 12 yard pieces which are labeled for the clients,

brands and names are printed on the hem of the piece

Markets: Prints are namely sold in the domestic markets, some of the companies also export to the

ECOWAS and CEMAC countries. Some companies have wholesale distributors and others sell

directly to the final point of sale.

Export: Direct exports to the EU are namely in the form of yarn. Some suiting and shirting materials

are also exported. It is however estimated that more than 50% of the APS and wax production are

exported to ECOWAS and CEMAC countries.

Size and Degree of Integration: Almost all the Nigerian companies which are in operation have a size

which offers economy of scale. There are only a few stand alone operations. Most of the companies

are integrated with spinning weaving – processingoperations.

Cotton: Nigerian cotton has a medium staple of length which is not only suited for printed fabrics but

also for many fabrics which could be made into garments if the cotton is notcontaminated.

Polyester: Fabric and filaments are produced at about a rate of 25,000 tons/year (50% of capacity).

Major Cost Drivers for the Sector: The major cost drivers in a leather industryinclude:
 The cost of cotton

- The cost of power The cost oflabour

- The cost of dye stuffs andchemicals

- The cost ofcapital

Nigeria has the most important printing industry in West Africa. Nigeria dominates the market with

more than 75% production. The printed fabrics products in West Africa is concentrated in ten

countries and is estimated to have a volume of approximately 700 million linear meters per year.

2.6 Problems of the Nigerian leather Industry:

The uncertainty in the home markets of the Nigerian leather industry can also be illustrated by the

fact that the industry has not participated in the recent global trends, which all the successful leather

countries follow. The global trends show that major leather producing countries offer a wide range of

fabrics, which on the other hand gives a certain degree of protection to the industry. Production

facilities are relocated to selected low cost locations to

remain competitive. There is increased

recognition of the importance of garments in the leather value chain as well as the importance of

technical leathers. There is also hugeworldexportmarketsforcottonyarn,grayfabric,processedfabric

and made ups to the extent that total export market in US dollars is about

$31 billion per year.

Constantly, Nigerian products is almost a mono-product industry which can easily be attacked with

the import of one product only (African prints). Nigeria does not participate in world production

allocation, even after the opportunity offered by AGOA. There is particularly no garment industry,

therefore there is no demand for fabrics from Nigerian leather industry other than African Prints.

Nigerian exports for cotton yarn has dropped to 4000 metres.

It is evidently clear that practically no dyed fabrics other than African prints are exported by Nigeria

to other African countries while such high value added products as made ups and garments are

missing in Nigerian exports.

Labour: Despite Nigeria’s teaming population and high level of unemployment, the average hourly

cost of wages are very much above the level paid in other reference countries. When coupled with the

relatively low labour productivity, it becomes clear that Nigerian labour costs in addition to the other

input costs adversely affect the competitive positioning of Nigerian leatherindustry.

Cost of labour has risen strongly in recent year and the leather industry is now bound by national

union agreements on leather workers remuneration and conditions. These conditions limit operatives

working hours to 40 hrs per week with hefty overtime premiums for additional Saturday and Sunday

working. These conditions mean in effect that almost all leather companies only work a 3-shift

system for 5 days per week (Monday – Friday). Overtime pay is used to cover additional hours on

Saturday and Sunday. The Sunday take-up is usually low at around 50% - 60% turnout. This is quite

unique for a developing country. in all major leather producing countries employees work for 7 days

a week on a 4 shift basis without overtime payment.

Cost of Power: In Nigeria, grid electricity is available only through the state monopoly provider

PHCN. Companies usually have partially or completely no power so they rely on their own power

generators. With the current incessant high prices, diesel generating electricity costs have risen

sharply. It can be seen that Nigeria has the highest power cost in comparison with the other reference

countries. For an oil producing country, this is an aberration and an intolerable situation.
 Water: There is water everywhere in Nigeria, yet water is not available to the industry at attractive

rates especially in the North where raw water has to be supplied by tankers to some of the mills

usually at high cost.

Currency of Technology: Going by the level of technology which is indicated by the age of

technology which is installed in a country, that of Nigeria is verylow.

When that of India and China range from 38, 29 to 74, 69% respectively for spindle and shuttles

looms. For spindles and shuttles looms, Nigeria scores miserable 3.8 and 8%.

When other countries have from 3% to 18% special funds available for technology up

gradations, Nigeria has no such funds. Cost ofCotton:

• Cotton prices in Nigeria, in common with the international situation, have risen

sharply over the lastyear.

• Prices paid in 2003 for ungraded Nigerian cotton bought in the local market ranged

from 140 – 155 Naira per KG of cotton lint. (50 – 55 cents/LBS).

• At these levels and taking account of the ungraded nature of theavailable

 cotton, leather manufacturers do not enjoy any local cotton price advantage anymore.

Dyes and Chemicals:

• Reactive dyes attract at present a 20% duty, which is very high. To bringit to a level

of 5% would make it be globallycompetitive.

Working Capital:

• In leathers production generally the working capital cycle can be quitelong.

In Nigeria however, the cycle is much longer than elsewhere.

•Producers have to buy the cotton crop for cash usually before it is even harvested in order to ensure

supplies. Since there is only one crop per season (November – February) producers also have to buy

up the entire years supply during this period and hold stocks for up to 7 months.

• When selling the yarns and fabrics, producers also have to extend credit to their

customers of around 45 days. This means that working capital is turned-over only between 1.5 – 2.0

times peryear.

• In other countries cotton is often bought on generous credit terms and supplies can be

secured in the local Spot Market significantly reducing working capitalneeds.

 Cost of Finance:

• The problem of a long working capital cycle is made much worse in Nigeria by the

cost of short-term financing. This costs from 20.5% peryear.

• This adds very significantly to producer costs and places Nigeria at a competitive

disadvantage against leather producers elsewhere in the world who enjoy much lower working capital

needs and cheap finance to fulfill theirneeds.

• Many companies also stated that banks impose many additional handling and bank

charges, which significantly increases the cost of capital even further.

Long Term Loans:

• A curious feature of the banking system in Nigeria is the fact that there is a total

absence of Long-Term funding available to manufacturers from local banks.

• Most loans available are for less than 12 months, with only the top companies

occasionally being offered loan facilities for up to 3years.

• Most leather machinery has a service life of at least 10 years and

internationallyisusuallyfinancedwithloansofmorethan5yearsduration.

• SuchloansasareavailableinNigeriaareagainofferedatinterestrates
of 20.5% and upwards making it prohibitively expensive to invest other than by using ones own

equity.

• This is a key factor for the long-term under-investment that is evident in many

companies. The very poor local market environment coupled with prohibitively expensive bank

financing has deterred many companies from making critical investments, which would improve their

productivity as a result such companies are becoming progressively lesscompetitive.

Banking Sector Participation:

• From discussions and experience, it is clear, that the banking sector in Nigeria is

more focused on lending to traders and to certain preferred industrial sectors such as oil,

telecommunications and food & drinks, than toleathers.

• Banks are certainly reducing their lending exposure to leather companies generally in

Nigeria, and where they are lending, preference is given to the larger leather producers who are seen

by the banks as being the more secureinvestment.

• Smaller companies find it increasingly more difficult to secure adequate lending

facilities from commercial banks, and probably have to pay a further risk premium on top of the

already high lending ratesquoted.

• Financial institutions should make credits available to

industry at competitive rates for working capacity and long termfinancing.

Nigeria leather industry and competitive pressure.

In general, sample companies were clearly against liberalization policy pursued by the government.

The companies have complained that global trade rules have not adequately taken into consideration

the low level of industrialization. UNTL and Gaskiyatex show decreasing profitability and occasional

losses for different financial years due to high competitive pressure.

As such, the managements of most of the selected companies reiterate that inability to make

reasonable profit was the main reason why they could not expand and upgrade their

productiontechnology.

In another respect, the competitive difficulties of local leather companies are largely attributed to the

deeply rooted belief among consumers that foreign fabrics are superior in quality.

The Nigerian leather industry is heavily dependent on imported machinery, dye stuff and other

industrial supplies. The nation is yet to have a solid industrial base which will permit the production

of industrial chemicals and equipments locally.

The human capital of the country is also inadequate to sustain productivity in the local industries. As

a result, companies have to spend a lot of money to obtain and retain expatriate. Cotton being the

main raw material in the Northern leather mills has incessantly become expensive in the market. For

instance, as at 2001 the price per kg was between N80 to N90, and by early 2003 the price per kg had

reachedN140.

Again, the infrastructure necessary for modern production has been at best inefficient. Consequently,

companies must undertake heavy investments in boreholes and electricity generating sets to provide

their own water supply and back-up power. In addition, the tariff on power and water is being

doubled almost annually. At ATM, the average bill of electricity and water is estimated at N12

million and 6 Million respectively. These together have made cost of production for the industry

exceptionally high.

It is therefore worth mentioning that most of the leather companies that could not effectively adjust to

lower international prices have either collapsed or have been in serious operationaldifficulties.

In view of the above, some of the management of the sampled companies, on the one hand, blame

government for making them more vulnerable to (especially) “Asian Tigers”. They accuse

government of not doing much to assist and safe guard local industries from unfair foreign

competition and
provide investor friendly environment for local industries to thrive. On the other hand, others fault the

management of the leather companies for their oblivion towards new business challenges. They claim

that the inability of the companies’ management over the years to re-position and modernize their

companies was essentially the root cause of their problems.

Third World Countries. Besides, companies in developed and other industrialized economies have

certain advantages, particularly in overcoming some unfair international trade practices, over

companies from smaller economies. For instance, Fink (2001) found that shipping costs were inflated

by an average of 25 percent by the anti-competitive practices of shipping firms.

While rich economies can deal with this problem unilaterally, smaller economies are not as fortunate.

Hence for the management of manufacturing companies to discharge their corporate responsibility

effectively, certain factors need to be seriously considered.

 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

INTRODUCTION:
This is a framework which specifies the method and procedures employed in carrying out the

research. It specifies the sources of data, procedures for data collection, sample size determination,

sampling procedure as well as method or technique employed in the analysis of the data.

3.1 SCOPE OF RESEARCH AND AREA OFCOVERAGE

The research is conducted within Aba metropolis to cover consumers of made-in Nigeria

leathers only. Relevant data needed for the

research were collected from a selected sample of consumers using selected data collection

instruments.

3.2 SOURCE OF DATA

Data needed for the research were collected from two sources; primary and Secondary

sources.

A. PrimarySources

Oral interviews were conducted to illicit valuable facts from a cross section of consumers to

help assess the overall consumer response to made-in-Nigeria leathers.

Questionnaires, being the main research instrument was carefully designed to assess the

motivating factors attitudes and response of consumer to made-in-Nigeria leather.

B. SecondaryData

To acquire the secondary data, the following sources were consulted.

a. Textbooks, Journals, Newspapers,Magazines

b. Research projects related to thestudy

c. Ministry of Commerce and IndustryAba.

d. Selected leatherIndustries

3.3 SELECTION AND CONSTRUCTION OF DATA

COLLECTION INSTRUMENTS

Interview guides and questionnaires constituted the chosen data collection instrument.

The questionnaire was designed under an eight stages of questionnaire design process and was

administered to selected sample of consumers.

This was to assess the factors that influence consumer response and attitude to made-in-

Nigeria leathers.

The interview guide was used to administer interview to consumers and were carefully

designed to help assess the overall consumer response to made-in-Nigeria leathers.

Z = At 95% confidence level the standard deviation is 1.96 P =0.5

Q = 0.5

E =0.05
n = 1.962(0.5)(0.5) = 384.16

(0.05)2

Hence the sample size is 384. thus 384 questionnaires was used for the study.

3.6 SAMPLINGPROCEDURE

The researcher used a random sampling technique to administer the questionnaires as well

interview consumer of made-in-Nigeria leathers within Aba metropolis. This method allows that each

member of the population (every possible sample of a certain size) an equal chance of beingselected.

3.7 METHOD OF DATAANALYSIS

 Both descriptive and inferential statistical tools were employed analyzing the data obtained

from the study.

For the presentation and description of data, tables and percentages were used to summarize

the questionnaires. The inferential statistical tool employed to test the hypothesis formulated was chi-

square since it involved relationship between two variables.

The following equation was used in computing the chi-square value.

X2 = (Fo – Fe)2 Where X2 = Calculated chi-squarevalue.

Fe
Fe = Expected frequency Fo =

Observedfrequency
 CHAPTER FOUR PRESENTATION AND

ANALYSIS OF DATA

INTRODUCTION

This study was designed to determine consumer response made-in- Nigeria leather. Consumer

questionnaire were constructed and administered, out of 385 Questionnaires distributed to resident in

different parts of Aba metropolis, a total of 364 werereturned.

To properly analyze consumer response to made-in Nigeria leather, comparative analysis was

conducted to properly identify consumer response to made-in-Nigeria leather putting into

consideration its competition with foreignleathers.

The data derived in the Questionnaire were presented in the tabular form. To properly analyze

the tabulated data, cross tabulation was used to enable the researcher identify data, cross tabulation

was used to enable the researcher identify the relationship between the variables. This is to further

help in testing the hypothesis to determine whether a relationship really exist or not, in the

tabulateddata.
4.1 Presentation of datacollected

Table 4.1 Return rate of the questionnaire

Number of Questionnaire Set out Number %

returned

384 364 94%

Source: Field Survey 2009

According to Table 4.1 A total of 384 questionnaires where administered to consumers within

Aba metropolis. 364 out of the 384 questionnaire were returned.

Hence the return rate of the questionnaire was 94.7%. The high response rate of 94.7% was

due to persistence of the researcher and probable interest the respondents have in the study.

Table 4.2 Age and Sex of the respondents

Sex Respondents Percentage Age respondents %

Female 253 69.5% 16-30 165 45.3%

Male 111 30.5% 31-45 99 27.2%

Total 364 100% 49-59 74 20.3%

60and 26 7.2%
above

Total 364 100%

Source: Computed from the questionnaire

The data on age and sex were also analyzed. All the respondents indicated their sex and age.

From table 4.2. it can be seen that 253 (69.5%)

female and 111 (30.5%) of males constituted the consumer respondents. From the data on age 165

(45.3%) fell within the age bracket 16-30, 99 (27.2%) fell within the age bracket of 31-45, 74

(20.3%) fell within the age brackets of 46-59 and 26 (7.2%) fell within the age bracket of 60 and

above.

Table 4.3 Educational attainment of respondents

Educational Attainment No of respondents Percentage

1 First School Leaving Cet. 55 15.1%

2 WASC/GCE Level 126 34.6%

3 OND/NCE 98 26.9%

4 HND/BSC and above 85 34.4%

Total 364 100%

Source: Field survey 2009.

Table 4.3 shows that 55 (15.1%) of the respondents possess first school leaving certificate as their

highest academic qualifications. 126 (34.6%) possess WASC, SSCE, or GCE O Level Certificate 98

(26.9%). Have OND, NCE qualifications while 85 (23.4%) have HND, BSC or other higher

qualifications.

Table 4.5 Consumer rating of the quality of made-in- Nigeria leather

Rating No of respondents Percentage

High 72 19.8%

Moderate 112 33.5%

Low 170 46.7%

Total 364 100%

Source: Field Survey 2009

From the table 19.8% of the respondents claimed that the quality of made-in-Nigeria leather is
high, 33.5% rated that the quality as moderate while 46.7% rated the quality as moderate and 46.7%

rated the quality as low.

This indicated that a higher percentage of the respondents rated made-in-Nigeria leathers as

being of low quality. According to American society for Quality Control, Quality could be defined as

the totality of features and characteristics of a product or service that bears on its ability to satisfy

stated or implied needs. The implied needs of leather material could be said to be covering, fashion,

beauty, aesthetics etc and product attributes of leather material include fine texture, durability etc.

Table 4.6 Consumer rating of the quality of Made-in-Nigeria in relation to that of foreign

leather

Relative quality No of respondents Percentage

Higher quality 30 8.2%

Same quality 100 27.5%

Lower quality 234 64.3%

Total 364 100%

Source: Field Survey 2009

From the table 30 (8.2%) of the respondents rated made-in-Nigeria leather of higher quality

than that of foreign leather, 100 (27.8%) rated the quality as the same with that of foreign leather

which were more durable and lasts longer than local leather.234 (64.3%) rated it as being of lower

quality.

These consumers judging from experience claimed that foreign leather never fade its colour

on washing or usage and remains the same for a very long time despite constant washing and usage.

Table 4.7 Influence of Consumer’s Perception of the relation quality

of made-in-Nigeria leather
Consumer’s Encourages Discourages Indifferent Total %

perception Purchases Purchases

Relatively 30 - - 30 8.2%

Higher
 Relatively - 200(85.5) 34(145%) 234 64.3%

Lower

Same quality 80 (80%) - 20(20%) 100 27.5%

Total 110 200 54 364 100%

Source: Field Survey 2009.

From the table 30 (80.2%) of the respondents that rated made-in- Nigeria leather as being

relatively higher than foreign leather. They all claimed that this perception encouraged purchase of

made-in-Nigeria leathers. Of the 234 respondents who rated it as being relatively lower, 34 (14.5%)

claimed that it did not influenced their purchase in any way while 200 (85.5%) claimed it discouraged

purchase of made-in-Nigeria leather. Of the 100 respondents who rated it as being of the same

quality, 80 (80%) claimed it encouraged purchase while 20 (20%) said it did not affect purchase

inanyway.

According to Kotler (2001), A motivated person is ready to act, how, the motivated person

actually acts is influenced by his or her perception of the situation.

Table 4.8 Consumer rating of the price of made-in-Nigeria leather

Rating No of respondents Percentage

Higher 72 19.8%

Moderate 80 22%
 Low 212 58.2%

Total 364 100%

Source: Field Survey 2009

From the table 72 (19.8%) of the respondents rated the price of made-in-Nigeria leather as

high, 80 (225) rated it as moderate while 212 (58.2%) rated it as low.

This indicated that a higher percentage of the respondents perceived price of made-in-Nigeria

leather as being low.

According to Achison (1999) price is regarded as the value of the product measured in terms

of the standard monetary unit. From the buyer’s perspective it is the amount he perceives he will pay.

Most of the respondents interviewed attributed this low price as synonymous to the perceived low

quality of local leathers.

4.9 Consumer’sratingofthepriceofmade-in-Nigerialeatherin

relation to that of foreign leathers

Rating No of respondents Percentage

Relative higher 72 19.8%

Same price 80 22%

Relative 212 58.2%

Total 364 100%

Source: Field Survey 2009

 From the table, 72 (19.8%) of the respondents rated the price as being relatively higher, 80

(22%) rated it as being as being of the same price than that of foreign leathers.212 (58.2%) rated it as

being relatively lower than that of foreign leather.

Table 4.10 Influence of Consumer’s perception of the relative price of

made-in-Nigeria leather

Consumer’s Encourages Indifferent Discourages Total %

perception Purchases Purchase

Relatively - 15(20.8) 57(79.2) 72 19.8%

Higher

Same price - 10(12.5%) 70(87.5%) 80 22%

Relatively 200 (94.4%) 12(5.6%) - 212 58.2%

Lower

Total 200 37 127 364 100%

Source: Field Survey 2009.

From the table 15 (20.8%) of the respondents that rated the price of made-in-Nigeria leathers

asbeing relatively higher claimed that itdid not

encourage their purchase of made-in-Nigeria leather, while 57 (79.2%) of the respondents that rated

the price as being relatively higher claimed that they were indifferent.These group of respondents

stressed that judging from the relatively higher quality of foreign leathers, they preferred purchasing

the foreign leather since both quality and price discouraged their purchase of made-in-Nigeria

leathers, of 212 respondents that rated the price of made-in-Nigeria leathers as being relatively lower

(200(94.4%) claimed that this encouraged purchase as they bought made-in-Nigeria leather because it

is relatively cheaper. This they attributed to the poor economic situation in the country were they

have to sacrifice the need for a higher quality foraffordability.

 12(5.6%) claimed that it did not affect their purchase in any way. Of the 80 respondents who

rated that they were the same price 10 (12.5%) claimed it did not affect their purchase while 70

(87.5%) claimed it discouraged purchase of foreign leather, they believed that the quality of made-in-

Nigeria leather were lower but yet of the same price with that of foreign leather. Hence, as rational

beings they purchased foreign leather rather than local leathers.

Table 4.11 Consumer’s Opinion on the performance of the quality of

Made-in-Nigeria leather

Quality No of respondents Percentage

 Improving 208 57.2%

Same 101 27.7%

Reducing quality 55 15.1%

Total 364 100%

Source: Field Survey 2003

From the table 208 (57.2%) said that considering past and present purchases that the quality of

made-in-Nigeria leather could be said to be improving. 101 (27.79%) claimed that the quality is still

the same while 55 (15.1%) said the quality is reducing.

Table4.12Consumer’sratingofthecolouranddesignofmade-in-

Nigeria leather

Rating No of respondents Percentage

Very good 109 29.9%

Good 93 25.5%

Fair 68 18.7%

Poor 62 17.0%

Very poor 32 8.8

Total 364 100%

Source: Field Survey 2003

From the table 109 (29.9%) rated colour and design of made-in- Nigeria leather as being

very good, 93 (25.5%) rated it as being good,

68 (18.7%) rated it as being fair, 62 (17%) as being poor and 32 (8.8%) as being very poor.

Table 4.12 Consumer’s perception of the colour and design of made-in- Nigeria leather in relation to

that of foreign leathers

Consumer’s perception No of respondents Percentage

Better than 202 55.5%

Same 98 26.9%

Not better than 64 17.6%

Total 364 100%

Source: Field Survey 2003

The table indicated that 202 (55.5%) rated the colour and design made- in-Nigeria leathers as being
better than that of foreign leathers, 98 (26.8%) rated it as being the same with that of foreign leathers
while 64 (17.6%) rated it as not being better than that of foreign leather.
Table 4.14 Effect of the Colour and design of made-in-Nigeria leather to that of foreign leather

on consumer response to made-in-Nigeria leather.

Consumer’s Encourages Indifferent Total %

perception Purchases

Than 172(85.1) 30(14.9) - 202

18(18.4) 80(81.6) - 98

Better than - 49976.5 15(23.4) 64

Total 190 159 15 164

Source: Field Survey 2003

Here the table indicated that out of 202 respondents that rated the colour and design of made-

in-Nigeria leather as being better than that of foreign leathers, 172 (85.1%) claimed this encouraged

purchase. These respondents claimed that made-in-Nigeria leather comes in variety of colour with

very attractive design that were well suited for various styles.

30 (14.1%) said this did not affect their purchase in any way of the 64 respondents that rated it

as not being better than that of foreign leathers.

Of the 98 respondents that claimed that the colour and design of made-in-Nigeria leather is the

same with that of foreign leather, 18 (18.4%) said this encouraged purchase while 80 (81.6%) said

this did not affect purchase in any way.

Table 4.15 influence of the current fashion on consumer response to

made-in-Nigeria leather.

Influence No of respondents Percentage

Encouragement 202 71.9%

Indifferent 62 17%

Discourage Purchase 40 11%

Total 364 100%

Source: Field Survey 2009

From the table, 262 (72%) of the respondents claimed that the

currentfashionstyleencouragedtheirpurchaseofmade-in-Nigerialeather.
This they attributed to the fact that the current fashion styles consisted of variety of ethnic/traditional

styles which involved the use of local leathers in making it such as Adire, supperprint hence the need

to conform to the current fashion style led to the purchase of these local leathers.

From the researcher’s observation most young and older adults now wear a variety of

traditional style made with these local leathers. These trend was noticed since the beginning of

thismillennium.

These can be attributed to the creativity of various Nigerian designers who have created a

niche for African traditional styles by making use of our local fabrics to create a variety of attractive

designs and styles and its adoption by many consumers.

According to Kotter (2001) A style is a basic and distinctive mode of expression appearing in

a field of human endeavour, styles appear in homes, clothing and art. A style can last for generations,

going in and out of vogue.

A fashion is a currently accepted or popular style in a given field.

Stanton (1984) suggests that the length of a particular fashion cycle depends on the extent to

which the fashion meets a genuine need, is consistent with other trends in the society, satisfies

societal norms and value and does not exceed technological limit as it develops.
 Also from the table, 62 (17%) of respondents said that the issue of current fashion did not

affect their purchase of made-in-Nigeria leather while 40 (11%) claimed and current fashion style

discouraged purchase of made- in-Nigeria leathers. These respondents did not adopt any traditional

fashion. Findings:- from this data analysis it can be deduced that the current fashion trend

influenced the purchase of made in Nigeria leathers to a reasonable extent.

Table 4.16 Relative Influence of the various factor on consumer patronage of foreign and made-

in-Nigeria leather.

Factors No of respondents Percentage

Colour and design 70 19.3%

Current fashion 58 15.9%

Quality 145 39.8%

Price 91 25%

Total 364 100%

Source: Field Survey 2009

From the table, 70 (19.3%) of the respondents claimed that the colour and design of a leather

was the most influencing factor, 58 (15.9%) claimed that the current fashion was the most influencing

factor. 145 (39.8%) claimed quality was the most influencing factor and 91 (25%) said price was the

most influencingfactor.

Table 4.17 Other factors influencing purchase of Made-in-Nigeria

leathers.
 Consumer’s perception No of respondents Percentage
Suitability of variety of 111 30.4%

styles

Creativity 92 25.3%

Texture 76 20.9%

Availability 85 23.4%

Total 364 100%

Source: Field Survey 2009

From the table 111 (30.4%), respondents were of the opinion that in addition to quality, price,

colour and design, suitability to variety of styles, influence their purchase of made-in-Nigeria leather

92 (25.3%) saidthe ability to creatively translate the fabrics to different styles in amazing ways

influenced purchase, 76 (20.9%) said the texture influenced their purchase as its soft to touch and

firm texture which makes it very fitting encouraged purchase while 85 (23.4) said its availability

created the ease of purchase which encouraged purchased.

Table 4.18 leather Preference of respondents

Preference No of respondents Percentage

Made-in-Nigeria 101 27.7%

Foreign 263 72.3%

Total 364 100%

Source: Field Survey 2009

 From the table 101 (27.7%) preferred made-in-Nigeria leathers to foreign leathers, reasons for

this preference was that it was relatively cheaper, suitable for various styles and its colour and design

better than that of foreign leathers while 263 (72.3%) preferred foreign leathers because of its

relatively higher quality and durability.

Table 4.19 Trend of consumer patronage of made-in-Nigeria leather

Trend No of respondents Percentage

Buying more 263 72.3%

Buying less 101 27.7%

Total 364 100%

Source: Field Survey 2009

From the table 263 (72.3%) said that they were buying more of made- in-Nigeria because of

its improved quality, attractive colour and designs and its suitability to a variety ofstyles.

While 101 (27.7%) said they were declining in purchase of made-in- Nigeria leather as their

increased income made it possible for them to afford the costlier foreign leathers and the need for

prestige associated with wearing foreign leathers also led to their purchasing less of made-in-Nigeria

leathers, while others claimed that considering their present social class it was more acceptable and

prestigious to dress in foreign leathers.

 Research Question 1: What is the consumer’s perception of the quality of made in Nigeria leathers in

relation to that of foreign leathers?

4.3 Test of Hypothesis

Chi-square was used at 95% confidence level to conduct the test of Hypothesis. The following steps

were taken to reach our decision.

1. The contingency table wasconstructed.

2. The row and column totals weredetermined.

3. The expected number of observations (expected frequencies) was calculated for each of theentries.

Eij = Ri Cj Wherei = 1,2,3.......................................r

N J = 1,2,3.......................................c

Eij = Expectedvalue.

Ri = Total number in RowI

Cj = Total number in Columnj

n = Total number of observations.

4. X2 value was then calculatedthus.

Rc

(O-E)2

X2 = E

ij
5. The degree of freedom was determined (d.f) = (r-1)(c-1)

6. The tabulated value of the x2 based on the degree of freedom and the chosen level of significance ()

was readoff.

7. Then a decision was taken based on theresult.

Decision Rule; Reject Null Hypothesis (Ho) if x2 cal >x2 table.

4.3.1 Testing of Hypothesis 1 (Refer to Table4.7)

Ho: Consumer perception of the relative quality of made-in-Nigeria leathers has no significant

impact on their patronage of made-in-Nigeria leather.

Impact of consumer’s perception of the relative quality of made-in-Nigeria leather on consumer

patronage of made-in-Nigeria leather
Consumer’s Encourages Indifferent Total %

perception Purchases

Relatively Higher 30 - - 30

Relatively Lower - 200 34 234

Quality 80 1 20 100

Total 110 200 54 364

(Data obtained from table 4.7) Calculation of the tabulated value of X2Level of

significance = 5% i.e. 0.05

The number of freedom is (R-1) (C-1) i.e. (3-1) (3-1) = 4 degrees of freedom

If = 0.05, the critical value of chi-square at 4 degrees of freedom is 9.49.

Calculation of Expected Frequencies for each cell

= Ri Ci n

Wherei = 1,2,3.........................................r

Eij = Expectedvalue

Ri = Total number in Row I Cj = Total number in Rowj

n = Total number of observations

E11 = 30 x110 = 9.065 E12 = 30 x 200 =16.48

364 364

E13 = 30x54 = 4.45 E12 = 234 x 110 =70.71

364 364

= 234x200 = 73.96 E23 = 234x54 = 34.71 364

364

= 100x110 = 30.22 E32 = 80x127 = 54.95

364 364
E33 = 100 x54 = 148.35

364

table4.2.0 Calculation of chi-square (x2) for Hypothesis1

Cell Observed Expected 0-E (O/E)2 (O-E)2

Number value (0) value (E)

E

1.1 30 9.065 20.935 438.27 48.347

1.2 0 16.48 -16.48 271.59 16.47

1.3 0 4.45 -4.45 19.80 4.449

2.1 0 70.71 -70.71 4999.9 70.709

2.2 200 128.57 71.43 5102.2 39.68

2.3 34 34.71 -0.71 0.504 0.014

3.1 80 30.22 49.78 2478 81.99

3.2 0 54.95 -54.95 3019 54.95

3.3 20 148.35 -128.35 16473. 111.64

TOTAL 364 364 428.25

 Decision Rule: Reject Null Hypothesis (Ho) if x2 cal >x2 tab.

Since x2 calculated (428.25) is greater than x2 tab (9.49), we reject Null Hypothesis Ho that

consumer perception of the relative quality of made-in-Nigeria leather has no significant impact

on their patronage of made-in-Nigeria leather. Hence we accept the alternative hypothesis that

there is a significant impact of consumer perception of the relative quality of made-in-Nigeria on

consumer patronage of made-in-Nigeria.

Consumer’s perception of the quality of made-in-Nigeria leather influenced their purchase of

this leather material. This is as a result of the fact that consumes considers quality a very important

factor in the purchase of leathermaterials.

4.3.2 Test of Hypothesis 11 (Refer to Table4.10)

Ho: Consumer’s perception of the relative price of made-in-Nigeria leathers has no significant impact

on their patronage of made-in-Nigeria leathers.

Impact of consumer’s perception of the relative price of made-in-Nigeria leathers on their patronage
of made-in-Nigeria leather

Consumer’s Encourages Discourages Indifferent Total

perception Purchases Purchase

Relatively Higher - 57 15 72

Relatively Lower 200 - 12 212

Same price - 70 10 80

Total 200 227 37 364

 (Data obtained from table 4.10) Calculation of the Critical Value of x 2Level of significance

= 5% ie 0.05

The number of freedom is (R-1) (C-1) e (3-1) (3-1) = degrees if = 0.05, the critical value of chi-

square at 4 degree of freedom is9.49.

Calculation of Expected frequencies for each cell

E11 = 72x200 = 39.56 E12 = 72x127 = 25.12

364 364
E13 = 72x37 = 7.318 E12 = 212x200 = 116.48

365 364
E22 = = 73.96 E23 = 212x37 = 21.55
212x127

364 364
E31 = 80x200 = 43.96 E32 = 80x127 = 27.91

364 364
E33 = = 8.13
80x37

364
Table 4.2.1 Calculation of chi-square (x2) for Hypothesis II

Cell Observed Expected 0-E (O/E)2 (O-E)2

Number value (0) value (E)

E

1.1 0 39.56 -39.56 1564.99 39.55

1.2 57 25.12 31.88 1016.33 40.46

1.3 15 7.318 7.682 59.013 40.46

2.1 200 116.48 83.52 6975.59 59.89

2.2 0 73.96 -73.96 5470.08 73.96

2.3 12 21.55 -9.549 91.18 4.23

3.1 0 43.96 43.956 1932.12 43.96

3.2 70 27.91 -42.09 1771.568 63.47

3.3 10 8.13 1.879 3.531 0.43

TOTAL 364 364 334

Calculated chi square = 334.

Decision Rule: Reject Null Hypothesis Ho if x2 cal > x2 tab. Since calculated chi square (334) is
greater than the critical value of the chi square ie x2 tab (9.49) we reject Null hypothesis (Ho) that
there is price of made-in-Nigeria leathers on their patronage of made in Nigeria leathers. Hence
we accept the alternative hypothesis that there is a significant impact of consumer’s perception of the
relative price of made in Nigeria on their patronage of made in Nigeria leather.
 CHAPTER FIVE

SUMMARY OF FINDINGS ,RECOMMENDATIONS AND CONCLUSIONS.

5.1 SUMMARY OF FINDINGS.

Having sourced the relevant data for this study using questionnaires, analyzing them and further

using them to test the hypothesis formulated. The following major findings were made and

summarized as follows:-

1. There is a significant difference between the quality of made in Nigeria leathers and that of foreign

leather. Most of the consumer respondents 72.5% of them perceived a significant difference in their

quality .Most of them rating made in Nigeria leather as being relatively lower inquality

2. There is a significant difference between the price of made in Nigeria leather and that of foreign

leathers. Most of them 78% of them perceive a significant difference in their prices. Majority of these

respondents rating the prices as being relativelylower.

3. There is a significant difference between the colour and design of Made in Nigeria leather and that of

foreign leather .204(55.5%) rated the colour and design of made in Nigeria leathers as being better

than that of foreign leathers, 98(26.9%) rated it as being the same while 64(17.6%) rated the colour

and design of foreign leathers as being better than that of Made in Nigerialeather.

4. Current fashion style influenced consumer ‘s purchase of made in Nigeria

leathers. 262(72%) of the respondents claimed that the current

fashionstylesencouragedtheirpurchaseofmadeinNigeria

.62(17%) of the respondents said it did not influence the purchase while 40(11%) claimed that current

fashion style discouraged their purchase of made in Nigeria leather.

6 Consumer‘s perception of the relative quality of made in Nigeria leather influenced their purchase of

made in Nigeria leather. 30(8.2%) of the respondents that rated the quality of made in Nigeria leathers

as being relatively higher claimed this perception influenced their purchase .Of the 234 respondents
 who rated it as being relatively lower, 34 (14.5%) said it did not affect their purchase of Made in

Nigeria leathers. Of the 100 respondents that rated it as being of the same quality, 80(20%) claimed it

did not affect purchase in anyway.

7 Consumers’ perception of the relative price of made in Nigeria leather influenced their purchase of

made in Nigerialeather

15(20%) of the respondents that rated the price of made in Nigeria as being relatively higher claimed

it did not affect their purchase of made in Nigeria leathers while 57(79.2%) of the respondents that

rated the price as being higher claimed it affected their purchase .Of the 212(94.4%) claimed that

rated the price as being relatively lower, 200(94.4%) claimed it did not affect purchase in any way. Of

the 64 respondents that rated it as being better than foreign leathers 46(76.5%) claimed it did not

affect purchase in any way while 15(23.5%) claimed it discouraged purchase of made in Nigeria

leathers.

8 Quality ,price ,colour,design and style were the four common factors that consumers considered in

their purchase of made in Nigeria leathers.

145(39.8%) of the respondents said that they considered colour and design most important factor in

their purchase of leather materials.91(25.9%) said they considered colour and design most important

factor while 50(15.9%) said the current fashion style was their major consideration while purchasing

leathermaterials.

9 Quality was the most inducing factor in the purchase of foreign leathers while it recorded the least

inducing factor in the purchase of made in Nigerialeathers.

Most of the respondents claimed that the colour,design and style of made in Nigeria leather was the

most inducing factor in their purchase of made in Nigeria leathers.

10 According to the literature review findings, foreign and local leather materials

use the same basic raw materials cotton in their leather production.
However in the spinning of cotton to produce yarn a high technology is required to produce high

quality cotton. The difference now lies in the fact that most Nigerian leather do not employ this high

technology in their production thus producing lower quality cotton material.

11. Most Nigerian leather firms still adopt out dated less efficient technologies in their production while

foreign leather firms employ very recent mordern sophiscatedtechnologies.

This has invariably created a huge difference in the leather materials produced by local and foreign

firms in terms of quality.

CONCLUSIONS:

Based on the following findings ,the following conclusions could be drawn.

1. The quality of made in Nigeria leather is lower than that of foreign leathers.

2. The colour and design of made in Nigeria leather could be said to compete favourably with that of

foreignleathers.

3. The current fashion style that promotes and encourages traditional African style influenced the

purchase of made in Nigeria leather positively.

4 Consumers perceived the quality of made in Nigerian leathers as being relatively

lower and this discouraged their purchase of made in Nigeria leather to a largeextent.
5 Most consumers perceive the colour and design of made in Nigeria leathers as

being better than that of foreign leathers hence this encouraged their purchase to a greatextent.

6 Quality was the most motivating factor in their purchase of foreign leather while

it recprded the least inducing factor in their purchase of made in Nigerialeathers.

7 Most consumers foreign leather because of its higher quality and durability.

Recommendations

In addition to the empirical findings but based on the analyses of the critical focus areas, detailed

recommendations should be made on the following:

. Local Market Environment and Governmental Policies: Smuggling seems to be a major set back in

this area. The government should implement imports of African prints initiated by the Federal

Government on September 1st 2002.

• A temporary task force should be set up to monitor imports and smuggling activities

and arrange seizures. Periodic assessments should be made to assess the progress made in

implementing theban.

• Thus the first move to stabilize the home market is by protecting it from damaging

impact of smuggling. The need for protecting the home market cannot be over emphasizedas:
 1. Production and employment would again rise.

3. Investors confidence wouldreturn.

4. Mills would modernize andexpand

5. New product lines wouldemerge.

6. Capacity utilization will increaseand.

7. New jobs will be created in cotton farming and leathers, and the sector would bounceback.

8. As applicable in the worlds leather producing countries, a sizeable, strong home market will protect

the leather industry against vagaries of international export markets. It will also lead to competitive

advantage due to economies of scale for the industry. The accompanying rapid growth of

the domestic market will lead the nation’s firms to invest faster, and build large, efficient facilities

with the confidence that they will be fullyutilized.

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 QUESTIONNAIRE.

INSTRUCTIONS:

Kindly indicate your answers by making a tick () in the boxes provided or comment in the

appropriate spaces.

SECTION A

1. Sex:Male Female

2. What is your agebracket18-30 46-59 andabove.

3. Educational Status(a)FSLC (b) WAEC/GCE OLEVEL

(c)OND/NCE (d)HND/BSC and above.

4. Occupationheld………………………………………………

SECTIONB.

1. Have you bought any made in Nigeria leather?

Yes No

2. If no, what is your reason for no purchase?……………………

3. What type of leather materials do you buy ? State

reasons…………………………………………………………………

4. If yes to question 1 what type of made in Nigeria leather do you purchase?

VeritableWax Lacematerial Super print Akara

Adire.
 5. What is your opinion of the quality of made in Nigerialeathers?

High Moderate Low

6. What is your opinion of the quality of madein Nigeria

leatherrelation to that of foreignleathers.

Higherquality Lowerquality Same quality

In what ways does your answer in6 affect your

purchase of made in Nigerialeathers.

7. Encourage Purchase Indifferent DiscouragesPurchase.

8. What is your opinion of the price of made in Nigeria leather?

High Moderate Low.

8. What is your opinion of the price of made in Nigeria leathers in

relation to that of foreignleathers?

RelativelyHigher SamePrice RelativelyLower.

10. In what ways does your answers in 9 affect your purchase of made in Nigerialeathers?

Encourages Purchase Indifferent

 DiscouragesPurchase

11. Judging from your past and present purchase of made in Nigeria leathers

would you describe the quality as improving?

………………………………………………………………

12. What is your opinion of the colour and design of made in Nigerianleathers?

Verygood Good Fair Poor

13. What is your opinion of the colour and design of madein Nigerian of made in Nigeria

leather in relation to that of foreignleather?

Better than Same Not betterthan

14. In what way does your answer in 16 affect your purchaseof made in Nigerialeather?

EncouragesPurchase DiscouragesPurchase

Indifferent

15. Does the current fashion affect your purchase of made in

Nigeria leathers?

Yes No and statereason……………………………..

16. If yes to answer 15 in what way doesitaffect yourpurchase?

EncouragesPurchase Indifferent
Discourages Purchase.