CUSTOMER VALUE AND BUSINESS STRATEGY OF MANUFACTURING FIRMS IN ENUGU AND ANAMBRA STATES, NIGERIA

Abstract: The study focused on customer value and business strategy of manufacturing firms in Enugu and Anambra States, Nigeria. The study was conducted in ten purposely selected manufacturing firms in Enugu and Anambra states. The specific objectives were to: examine the effect of average purchase value on product prices of manufacturing firms and ascertain the effect of purchase frequency on new competitor entrants into the market of manufacturing firms. The study adopted the survey research design. A sample size of 365 was got using Freund and Williams’(1966) sample size determination statistical formula and same number was administered to members of the board, management and senior staff of the selected firms using Bowley’s (1997) proportional allocation formula.  311 copies of the questionnaire were returned.   Data were collected from primary and secondary sources. The questionnaire was structured on a five point Likert scale. The face and content validity of the research instrument was evaluated by experts in the industry. The hypotheses were tested with Z-statistical tool.  Findings revealed that average purchase value had positive effect on product prices of manufacturing firms in Anambra and Enugu States, Nigeria Z (97, n = 311) =5.1238, p > 0.05, purchase frequency had positive effect on new competitor entrants into the market of  manufacturing firms in Anambra and Enugu States, Nigeria Z (97, n = 311) =5.0478, p > 0.05. The study concluded that manufacturing firms should broaden their own strategy to cover the same target and prevent new companies from getting a foothold.

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