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Title
Abstract
FAQs
Figures
Introduction
The Empirical Study
Findings
Test of Hypotheses
Discussion of Findings
Summary
Recommendations
References
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Business and Management
Marketing

Product development and organizational performance

Profile image of Josh GladsonJosh Gladson

Abstract

Product development is an important element of the marketing arsenal of any organization. Unfortunately many firms do not seem to realize it. Consequently, they develop strong arteries to innovation which rubs their performance really rough. This study, therefore, examined product development and corporate performance in the Nigerian brewing industry. Data were gathered from 32 officials drawn from marketing, R&D and production departments in four breweries in the south-south and south east geographical regions of Nigeria through the use of questionnaire. The data were analyzed using appropriate statistical tool (spearman rank order correlation co-efficient). The data revealed among other things that product development facets of product quality and product lines/ product mix were positively and significantly correlated with the corporate performance facets of profitability, sales volume and customer loyalty. The study also revealed that the relationship between product size, product design and profitability, sales volume and customer loyalty was not significant. The study concludes that a positive and significant relationship exists between product quality product lines/product mix and profitability, sales volume and customer loyalty. To this end, it was recommended among other things that high product quality should be maintained and that the breweries should continuously develop new market segments and develop appropriate product accordingly.

FAQs

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What is the correlation between product quality and profitability in breweries?add

The finding indicates a positive and significant correlation, with Zcal = 3.00 exceeding the critical value of ±1.96. This emphasizes the importance of maintaining high product quality to enhance profitability in breweries.

How does product size affect sales volume in the beer industry?add

The study reveals that there is no significant relationship between product size and sales volume, as indicated by Zcal = 1.72, which is less than the critical value of ±1.96. Therefore, product size alone does not guarantee increased sales.

What role do product lines play in customer loyalty for breweries?add

A significant positive relationship exists between product lines and customer loyalty, as seen in the success of brands like Guinness and Nigerian Breweries. Companies with diverse product lines experience higher customer loyalty due to variety and satisfaction.

What findings support the impact of product development on organizational performance?add

Research demonstrated that continuous product development significantly influences profitability and sales volume among breweries in Nigeria, particularly through improved product quality. Survey data showed high mean scores of 4.5 for product quality's impact on financial success.

How is product design linked to profitability and customer loyalty?add

The correlation between product design and profitability was found to be insignificant, indicating that customers prioritize product content over aesthetics. Satisfaction derived from the product remains the crucial factor influencing customer loyalty.

Figures (12)
Figure 1. The Relationship between Product Development and Organizational Performance.
Figure 1. The Relationship between Product Development and Organizational Performance.
Table 1. Spearman Rank Order Test of Correlation between Product Qualit (PQ) and Profitability (P). lines and mix recorded higher profit and market share than those with few service scopes. validated and confirmed by the results of the hypotheses tests in analysis in Tables 5, 6 and 7. This implies that breweries with many product lines or mixes can make more profit, record high sales volume and customer loyalty than those with few product lines or few product mixes. The Nigerian Breweries Plc and Guinness Plc are a few of the breweries that appear to place high premium on product lines and mix in their product development arsenal. Nigerian Breweries Plc Manufactures alcoholic and non-alcoholic products such as beer of assorted from having many product lines and product mixes. This finding corroborates the work of Tunji (2004) in the finan- cial sector that banks that had more product/services
Table 1. Spearman Rank Order Test of Correlation between Product Qualit (PQ) and Profitability (P). lines and mix recorded higher profit and market share than those with few service scopes. validated and confirmed by the results of the hypotheses tests in analysis in Tables 5, 6 and 7. This implies that breweries with many product lines or mixes can make more profit, record high sales volume and customer loyalty than those with few product lines or few product mixes. The Nigerian Breweries Plc and Guinness Plc are a few of the breweries that appear to place high premium on product lines and mix in their product development arsenal. Nigerian Breweries Plc Manufactures alcoholic and non-alcoholic products such as beer of assorted from having many product lines and product mixes. This finding corroborates the work of Tunji (2004) in the finan- cial sector that banks that had more product/services
Table 2. Relationship between Product Quality (PQ) and Sales Volume (SV). important than the container. Although the shape or colour of the product (alcohol and non-alcoholic) may appeal to the consumer at first sight or entice him to have a trial of the product, his repeat purchase, however, will depend on the satisfaction derived from consumption. His loyalty or disloyalty to the brand determines the level of sales and profitability of the firm. This is because corporate profitability and increased sales volume derives largely from customer patronage (Table 11). statistical tools and packages. Discussion of findings was also presented based on the analyzed data. The findings of our study on product development and corporate performance in the Nigerian brewing sector are summarized as follows:
Table 2. Relationship between Product Quality (PQ) and Sales Volume (SV). important than the container. Although the shape or colour of the product (alcohol and non-alcoholic) may appeal to the consumer at first sight or entice him to have a trial of the product, his repeat purchase, however, will depend on the satisfaction derived from consumption. His loyalty or disloyalty to the brand determines the level of sales and profitability of the firm. This is because corporate profitability and increased sales volume derives largely from customer patronage (Table 11). statistical tools and packages. Discussion of findings was also presented based on the analyzed data. The findings of our study on product development and corporate performance in the Nigerian brewing sector are summarized as follows:
Table 3. Test of Relationship between Product Quality (PQ) and Customer Loyalty (CL).
Table 3. Test of Relationship between Product Quality (PQ) and Customer Loyalty (CL).
Table 4. Test of Relationship between Product Size (PS) and Profitability (P). - There is no significant relationship between product design and sales volume since customers do not patronize tha nrngdiicte haraiica nf ite chana cizva nr cnioiir
Table 4. Test of Relationship between Product Size (PS) and Profitability (P). - There is no significant relationship between product design and sales volume since customers do not patronize tha nrngdiicte haraiica nf ite chana cizva nr cnioiir
Table 5. Test of Relationship between Product Size (PS) and Profitability (P). Table 6. Test of Relationship between Product Size (PS) and Sales Volume (SV).
Table 5. Test of Relationship between Product Size (PS) and Profitability (P). Table 6. Test of Relationship between Product Size (PS) and Sales Volume (SV).
Table 8. Test of Relationship between Product Lines (PL) and Profitability (P).
Table 8. Test of Relationship between Product Lines (PL) and Profitability (P).
Table 7. Test of the Relationship between Product Size (PS) and Customer Loyalty (CL).
Table 7. Test of the Relationship between Product Size (PS) and Customer Loyalty (CL).
Table 11. Spearman Rank Order Correlation Co-efficient Test of Linkage between Product Design (PD) and Profitability (P).
Table 11. Spearman Rank Order Correlation Co-efficient Test of Linkage between Product Design (PD) and Profitability (P).
Table 10. Spearman rank Order Correlation test of Relationship between Product Lines (PL) and Customer Loyalty (CL).
Table 10. Spearman rank Order Correlation test of Relationship between Product Lines (PL) and Customer Loyalty (CL).
Table 9. Spearman Rank Order Correlation Test of Relationship between Product Lines (PL) and sales Volume (SV).
Table 9. Spearman Rank Order Correlation Test of Relationship between Product Lines (PL) and sales Volume (SV).

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Related topics

  • Market Segmentation
  • Corporate Performance
  • Product Line
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