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Influence of Promotional Mix Strategies On Consumer Buying Bahaviour
Influence of Promotional Mix Strategies On Consumer Buying Bahaviour
Influence of Promotional Mix Strategies On Consumer Buying Bahaviour
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I dedicate this work to my parents for their immense support, advice and encouragement before
and during this period.
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ACKNOWLEDGEMENTS.
I would like to first and foremost express my profound thanks to the Almighty God for His
protection, mercies and grace that has enabled me to successfully complete this work. Without
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I owe the deepest gratitude to my supervisor, Dr. J.K. Dzanja, who in spite of his busy schedules
found ample time to share, hugely impacted and advised me on this study. I highly appreciate his
valued suggestions, constructive comments and criticisms to do with technical knowledge on my
drafts and help in shaping of my research.
Also, my thanks and gratitude go to Seed Co Malawi representatives, Mr. Dzalimbo, Seed Co
Malawi marketing manager and Miss. Mtawali who kindly provided me with data and actually
made this study possible.
I am indebted to my family and friends for their emotional support and inspiring me for creative
ideas and solutions while conducting the research.
My sincere gratitude also extends to Racheal Dzitukwana, Geofrey Kaonga, Oliveta Jamilana,
Simion Haswel, Cecilia S. Chidothi, Godfrey H, Kamanga and all those who in diverse ways
assisted me to successfully accomplish this project work.
Finally, I would like to thank those people who agreed to take part in this study and shared their
attitude and perception.
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LIST OF ACRONYMS.
SC Seed Co
In the dynamic business environment, seed companies are facing high competition hence a need
for strategies to influence the consumer buying behavior to increase sales and survive. However,
promotion mix strategies adopted by companies providing hybrid seeds remain an understudied
area. The study, therefore sought to look at influence of promotion mix strategies on the consumer
buying behavior of Seed Co Malawi products. It adopted a descriptive research design. The target
population was smallholder farmers. The research was carried out in Lilongwe rural in Chitsime
EPA for it is in the rural areas where crop production is mainly practiced in Malawi. 60 smallholder
farmers were sampled and interviewed using a semi-structure questionnaire. SPSS, and Excel were
used for data analysis which involved the use of descriptive statistics: mean, standard deviation,
frequency and percentages. The study findings and analysis found out that Seed Co Malawi mostly
used demonstration plots and advertisements to create customer awareness and influence them to
buy the products. The study also revealed that Co Malawi is an extremely competitive brand with
best quality seed and customer satisfaction. High price of products was the challenge faced by
most of the respondents. PANAR Seed and Monsanto were mentioned by most respondents as
other companies other than Seed Co Malawi producing better seed for them. In entire study of the
project, it was observed that the promotion strategies practiced by Seed Co Malawi had a
significant positive influence on the consumer behavior. Majority of the respondents agreed that
promotion strategies like adverts, price off deals and demonstration plot influence them to buy
products. Therefore, there is a significant relationship between promotion strategies and consumer
buying behavior.
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CONTENTS
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3.5 Sampling Methods.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϯ
3.6 Sample Size.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϯ
3.7 Measuring Instruments.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ
3.8 Analytical Techniques.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ
3.8.1 Objective 1: To identify promotional strategies used by Seed Co Malawi to reach its customers.
͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ
2EMHFWLYH7RDQDO\]HWKHLQIOXHQFHRI6HHG&R0DODZL¶VSURPRWLRQDOVWUDWHJLHVLQLQIOXHQFLQJ
the buying behavior of Seed Co customers.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ
3.8.3 Objective 3: To analyze challenges that Seed Co Malawi customers have in accessing their
products.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϰ
4.0 RESULTS AND DISCUSSION....................................................................................................... 25
4.1 Demographic Characteristics.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϱ
4.1.1 Age.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϱ
4.1.2 Gender.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϱ
4.1.3 Education Level.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϲ
4.1.4 Marital Status.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϳ
4.2 Land Holding Size of Respondents.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϳ
4.3 Seed Co Malawi Products Cultivated.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϴ
4.4 Quantity Purchased.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘Ϯϵ
4.5 Years of Using or Purchasing Seed Co Products.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϬ
4.6 Companies other than Seed Co Producing Better Seed for Respondents.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϬ
4.7 Ranking Performance of Seed Companies in Parameters of Price and Quality of Products.͘͘͘͘͘͘͘͘͘͘͘ϯϭ
4.7.1 Performance of Seed Companies in Parameter of Price.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϭ
4.7.2 Performance of Seed Companies in the Parameter of Quality of Products.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϮ
4.8 How Farmers Learn About Seed Co Malawi.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϯ
4.9 Competitiveness of Seed Co Malawi in the Market.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϰ
4.10 Promotional Strategies Used by Seed Co Malawi to Reach Chitsime EPA Farmers in Lilongwe.ϯϱ
4.11 Influence of Promotional Mix Strategies.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϲ
4.12 Challenges Faced.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϳ
5.0 CONCLUSION. .............................................................................................................................. 39
5.1 Introduction.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
5.2 Main Findings.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
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5.3 Study Limitation.͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘͘ϯϵ
6.0 RECOMMENDATIONS. ................................................................................................................ 40
7.0 REFERENCES. ............................................................................................................................... 41
Appendix 1............................................................................................................................................ 44
Appendix 2............................................................................................................................................ 46
dž
LIST OF TABLES
Table 2.2.2: Relationship between some of the promotional mix strategies and the AIDA model............ 21
Table 4.7.1: Performance of seed companies in the parameter of price. .................................................. 32
Table 4.7.1 Performance of seed companies in the parameter of quality of products. .............................. 33
Table 4.11.1: Influence of promotion mix strategies on consumer buying behavior. ............................... 36
džŝ
LIST OF FIGURES
Figure 2.2.1: Stages of the consumer buying decision making process. .................................................. 20
Figure 4.1.1: Distribution of the respondents by age bracket. ................................................................. 25
Figure 4.1.2: Gender of respondents ...................................................................................................... 26
Figure 4.1.3: Distribution of respondents by education level. ................................................................. 27
Figure 4.2.1: land holding size ............................................................................................................... 28
Figure 4.3.1: Seed Co Malawi products cultivated. ................................................................................ 29
Figure 4.4.1: quantity of maize purchased. ............................................................................................. 29
Figure 4.5.1: Years consumers had been using Seed Co Malawi products. ............................................. 30
Figure 4.6.1: Other companies other than Seed Co Malawi producing better seeds for respondent .......... 31
Figure 4.8.1: How farmers learn of Seed Co Malawi products. ............................................................... 34
Figure 4.9.1: Competitiveness of Seed Co Malawi in the market. ........................................................... 35
Figure 4.10.1: Promotional strategies used by Seed Co to reach its customers. ....................................... 35
Figure 4.12.1: Challenges faced by Seed Co Malawi customers of Chitsime EPA in Lilongwe. .............. 37
džŝŝ
1.0 INTRODUCTION.
1.1 Background.
Marketing can be defined as the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy individual
and organizational objectives (Kotler et al., 2014). Marketing is an organizational function and a
set of processes for creating, communicating and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its stakeholders. Promotion
strategy is one of the tools in marketing which helps to create, communicate and deliver value to
customers. It involves the five elements of the promotion mix i.e. advertising, sales promotion,
personal selling, public relations, and direct marketing (Czinkota and Ronkainen, 2004). Whalley
(2010) defines promotion as all the tools available to the marketer for marketing communication.
Promotion strategy is the direct way an organization tries to reach its publics. It communicates the
merits of the product and persuade target customers to buy it. The focus on promotional efforts
and development of marketing strategies has remained a challenge to many firms here in Malawi.
Strategically, the business must be centered on the customers more than the products (Mbogo,
2013). Through proper promotional strategies, companies will be able to satisfy, attract potential
and retain existing customers. Customer satisfaction is determined by defining customer
perception of quality, expectations and preference (Barsky et al., 1992). In order to keep up with
the competition and changing consumer needs and wants, firms are forced to adopt effective
promotional strategies to promote growth beyond boarders therefore creating awareness and
increase usage rates of their products and services. Seed Co is one of the commercial seed
companies in Malawi actively involved in production of certified seed. It is found in most
countries of the African Continent like Zambia, Zimbabwe, Kenya and Botswana. Its products
mainly include maize, soya beans, beans and cotton. Seed Co Malawi is among other companies
in Malawi which faces competition in the business environment from its competitors like
Monsanto and PANAR Seed just to mention a few. It is the responsibility of both large and small
organizations to adopt appropriate promotional strategies in order to attract and retain customers
and positively influence consumer buying behavior.
ϭϯ
Consumer buying behavior is the sum total of a consumer's attitudes, preferences, intentions, and
decisions regarding the consumer's conduct in the marketplace when purchasing a product or
service. It considers the many reasons why personal, situational, psychological, and social people
shop for products, buy and use them, and then dispose of them7KHFRQVXPHU¶VSXUFKDVHEHKDYLRU
describes how consumers decide to spend their various resources like time, money, etc. on various
products so as to meet their needs and requirement. As Stone (2007) puts it, the study of consumer
behavior is an important part of the managerialist approach to marketing. Underpinning this notion
is the belief that if industrialists can come to a better understanding of why people behave as they
do, it should be possible to develop and promote products which have a better chance of success
in the market place.
1.3 Justification.
The findings of this study are important to Seed Co Malawi as it assesses whether the promotional
strategies it employs are being beneficial to them or not therefore coming up with appropriate
promotional policies what will assist in positively influence the buying behavior of its customers
hence expanding its customer base, increasing sales and achieving growth. This study also helps
ϭϰ
other firms and new firms that have engaged in the market of seed production to know if
promotional mix strategies can help them attract customers at first sight and retain them.
1.4 Objectives.
1.4.1 Main Objective.
To find out the contribution of promotional mix strategies on consumer buying behavior of
Chitsime EPA farmers in Lilongwe District on Seed Co Malawi products.
1.5 Hypothesis.
HO: There is no significant relationship between consumer buying behavior and promotion mix
strategies.
ϭϱ
2.1.1 Advertising.
One of the key factors in the promotional mix, which contributes to brand building and also how
the market perceives the company, is advertising. Kumawat (2009: 318) defines advertisement as
any paid form of non-personal presentation and promotion of ideas, goods or services of an
identified sponsor. Media such as television, radio, newspapers, magazines and billboards and
demonstration plots are mostly used to transmit advertisements to consumers (Lamb, 2008).
Results from research on consumer behavior of hybrid maize seed and study of hybrid maize
ϭϲ
market potential of Solapur district in India carried out by Mahadeorao (2012) show that most seed
companies adopt the advertisement activity which contributes to 75% of the farmers being aware
of the hybrid seeds for the companies. Good advertising builds a solid brand for the company.
Results from a research on analysis of motivational influences of customer buying behavior of
industrial products carried out by Aduba (2009) in Nigeria show that 62% of the respondents were
influenced by a company name. On the other hand, bad advertising with a wrong message, can
cause the brand or product to fail (Bhasin, 2017). The key difference between advertising and other
promotional tools is that it is impersonal and communicates with large numbers of people through
paid media channels. According to Lamb (2004), advertisement is most useful in gaining customer
attention for goods and services although does have an impact in the later stages.
ϭϳ
initiatives; media relation for the spreading of good news as well as for crisis management, such
as damage limitation. Marketers tend to underuse public relations or use it as an afterthought. Yet
well thought out public relations campaign used with other promotion mix elements can be very
effective and economical (Kotler et al., 2014: 444).
ϭϴ
the form of phone, mail or computer transactions. Internet technology also makes it possible to
follow individual customer usage. With the information gathered in an integrated database it is
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From some of the previous research results highlighted above it is indicated that most of these
promotional mix elements have an influence on consumer buying behavior of a variety of products
and services in different industries hence a need to extend the research and find out the contribution
of a combination of the promotional mix strategies on consumer buying behavior of Seed Co
Malawi products.
ϭϵ
The consumer buying decision making process consists of five stages: need recognition,
information search, and evaluation of alternatives, purchase decision, and post purchase behavior
(Sheth, 2008).
Kotler et al. (2014: 176) gives a figure depicting the five stages of the consumer buying decision
making process as shown below.
ϮϬ
acronym, which consists of the factors of attention, interest, desire and action, all of them relevant
to the relationship between consumer behavior and advertising. The first element, that is attention,
describes the stage in which the brand manages to gain the attention of the consumer through the
advertisement that he/she has come into contact with. It could be either positive or negative
attention or sometimes, in a worse case, no attention at all. Companies in Malawi must be creating
attention, interest, desire, and attraction of their products in the market using appropriate channels
of communication to reach the mass market hence stimulating demand of existing and new
products in the market. Adoption of the theory by firms promotes tremendous growth of the
companies in terms of client base and revenue. When putting messages together, the marketer must
decide what to say and how to say it. Lamb (2004: 479) depicts relationship between promotion
mix strategies and the AIDA model shown in the table below
Table 2.2.2: Relationship between some of the promotional mix strategies and the AIDA model.
Public relations Very effective Very effective Very effective Not effective
From table 1 above, advertisements and public relations are most useful in gaining attention for
JRRGVDQGVHUYLFHVVDOHVSURPRWLRQ¶VJUHDWHst strength is in creating strong desire and purchase
interest and personal selling is effective in at creating desire. This relationship clearly indicates
that there is no one promotional strategy which is perfect in describing the process leading potential
customer to a purchase. This is one of the reasons justifying the need in this study to answer the
Ϯϭ
research question: What is the contribution of promotional mix strategies on the consumer buying
behavior of Seed Co Malawi products.
Seed Co has registered operations in the following countries: Botswana, Ghana, Kenya, Malawi
Nigeria, Rwanda, South Africa, Tanzania, Zambia and Zimbabwe. 6HHG &R 0DODZL¶V PDLQ
competitors include DeKalb, Monsanto and National Seed Company of Malawi (NSCM). Seed Co
products mainly include Maize, Soy beans, Sugar Beans and Ground nuts. Among the products,
the maize varieties found in Malawi include SC 537 (Mbidzi), SC 627 (Mkango), SC403 (Kanyani)
and SC 617(Njovu).
ϮϮ
This study sought to find out the contribution of promotional mix strategies on buying behavior of
Chitsime EPA farmers, T/A Chiseka in Lilongwe on Seed Co Malawi products.
Ϯϯ
3.8.1 Objective 1: To identify promotional strategies used by Seed Co Malawi to reach its
customers.
This objective sought to find out the promotional mix strategies used by Seed Co Malawi to reach
its customers. To achieve this objective, descriptive statistics like frequencies and percentages,
with aid SPSS version 20 was used.
This objective sought to analyze the effectiveness of each promotional mix strategy Seed Co
Malawi uses to reach its customers in influencing consumer buying behavior. To achieve this
objective, descriptive statistics like mean and standard deviations, with aid of SPSS version 20 and
Microsoft Excel 2013 was used.
3.8.3 Objective 3: To analyze challenges that Seed Co Malawi customers have in accessing
their products.
To achieve this objective, descriptive statistics like frequencies and percentages with aid of
Microsoft Excel 2013 and SPSS version 20 was used.
Ϯϰ
4.1.1 Age.
The respondents were required to indicate their age. The study findings indicated that majority
(43.3%) indicated that their age bracket was between 31 and 55 years. Analysis of findings also
indicated that 35.0% of the respondents were between 26 and 30 years of age. The findings further
indicated that 16.7% were between 15-25 years while 5.0% were above 55 years of age. The
finding indicated that most respondents were between 31-55 years. This implies that they were old
enough to understand the extent to which promotional mix strategies influence their buying
behavior. The findings of the study are illustrated in Figure 4.1.1.
ŐĞďƌĂĐŬĞƚŽĨƌĞƐƉŽŶĚĞŶƚƐ
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4.1.2 Gender.
The study sought to establish the gender of the respondents and the findings are as shown in Figure
4.1.2. The study recorded more response rate from females. Of the 60 respondents, 31 representing
Ϯϱ
51.7% were females and 48.3% were males. This shows that both sexes are involved in production.
However, it is females who are mostly involved in crop production.
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affected their buying behavior in terms of quantity of purchase due to the limited land size. The
results are in the Figure 4.2.1below.
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Figure 4.6.1: Other companies other than Seed Co Malawi producing better seeds for respondents
ϯϭ
From the findings as shown in Table 4.7.1, majority of the respondents rated PANAR Seed (3.10),
NSCM (3.10) and Monsanto (3.05) to have good prices. Seed Co Malawi was rated by most
customers to have poor prices (3.58). Customers are very sensitive to price changes. A slight
change in price changes demand for a product hence a need for Seed companies to pay a closer
attention when pricing their products.
ϯϮ
From the findings as shown in Table 4.7.1, majority of the respondents rated PANAR Seed (3.47),
NSCM (3.21) and Monsanto (3.37) to have products of poor quality. Seed Co Malawi was rated
by most customers to have products of excellent quality (1.79). Analysis indicated that Seed Co
Malawi produces good quality products to the majority of the respondents. Most of the respondents
purchased maize hybrid seeds from Seed Co Malawi due to particular attributes like early maturing
(SC 403) and high yielding (SC 617).
ϯϯ
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4.10 Promotional Strategies Used by Seed Co Malawi to Reach Chitsime EPA Farmers in
Lilongwe.
This section presents the findings on the various promotional strategies used by Seed Co Malawi
to avail information to and attract customers. A checklist was used for Seed Co Malawi to indicate
promotion strategies used and respondents were also asked to indicate the promotional strategies
Seed Co use to reach them. Seed Co Malawi marketing manager indicated that they widely use
good product quality, market driven and differentiated pricing, direct selling, personal selling,
advertising and sales promotions.
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zĞƐWĞƌĐĞŶƚĂŐĞ EŽWĞƌĐĞŶƚĂŐĞ
ϯϱ
Illustration of the findings in Figure 4.10.1 shows that 66.7% of the respondents indicated
demonstration plots, 55% adverts, 21.7% price off deals and sales promotion and 16.7% indicated
good product quality. This depicts demonstration plots and adverts were used much more by Seed
Co Malawi in its promotion strategies. The results imply that Seed Co Malawi uses a variety of
promotion mix strategies to reach its customers.
From the findings as shown in Table 4.9, majority of the respondents strongly agreed that
demonstration plots (1.62) influence them to buy Seed Co Malawi products, adverts (2.38), price
off deals (2.68), sales promotions (2.90) and agricultural shows (1.00) influence them to buy Seed
Co Malawi products. There are various actions that the customers can undertake after the purchase
of a product which is being promoted including, if satisfied, becoming loyal to the product, buying
the product again, and telling their others about the product and, if dissatisfied, they can change
ϯϲ
the brand, caution their friends not to try the product and also complain about the product to the
company representatives. Hence, these consumer behaviors were likely to be affected by the
promotion mix strategies adopted by the Seed Co Malawi.
ŚĂůůĞŶŐĞƐĨĂĐĞĚďLJ^ĞĞĚŽDĂůĂǁŝĐƵƐƚŽŵĞƌƐŽĨ
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WĞƌĐĞŶƚĂŐĞ
ŚĂůůĞŶŐĞ
Figure 4.12.1: Challenges faced by Seed Co Malawi customers of Chitsime EPA in Lilongwe.
ϯϳ
The respondents complained of high prices since they were low income people. Due to high
demand for seed during the planting season there was unavailability of preferred maize hybrid seed
and some distributors were selling fake seeds to the customers. The farmers lacked access to credit
services as they do not meet some requirements like collateral to obtain credit from formal
financial sector. As a result, most of them also complained of lack of cooperatives where they
could be getting inputs on loan.
ϯϴ
5.0 CONCLUSION.
5.1 Introduction.
The major objective of this study was to find out the influence of promotional strategies used by
Seed Co Malawi on consumer buying behavior which can also help seed companies to improve
their businesses.
The findings indicated that Seed Co Malawi adopt at least some promotional strategies mostly
demonstration plots and advertisements in their endeavor to achieve some competitive advantage
over their competitors in such a dynamic environment. In entire study of the project, it was
observed that the promotion strategies practiced by Seed Co Malawi had a significant positive
influence on the consumer behavior. Majority of the respondents agreed that promotion strategies
like adverts, price off deals and demonstration plot influence them to buy products. Therefore,
there is a significant relationship between promotion strategies and consumer buying behavior.
Getting accurate information from the respondents was also one of the major challenges since
some of the respondents had a wrong assumption that seeds would be distributed to them. The
challenge was minimized by clearly explaining to them the major aim of the study and probing
more to get positive response and accurate information.
ϯϵ
6.0 RECOMMENDATIONS.
The study found out that the promotion strategies practiced by Seed Co Malawi had a significant
positive influence on the consumer behavior. The study therefore recommends that the
management of Seed Co Malawi should invest more in promotion strategies mostly demonstration
plots and adverts and formulate comprehensive and effective promotion strategies that seek to
build brand awareness, creating favorable brand attitudes, gaining market share, inducing
purchase, building brand loyalty and increasing sales.
Boyd (2010) declares that in addition to the information that consumers are faced with, there are
many factors that come into play when consumers are deciding what to buy. The lifestyle, culture,
and social class, have been suggested can affect consumer decision making. The study was
conducted in Lilongwe rural and it is recommended that similar studies should also be conducted
in other areas of people with different culture, social class and lifestyle to validate the results.
Finally, the study reveals that majority of the respondents complained about high price of products.
The study therefore recommends that the management of the Seed Co Malawi and other seed
companies should offer affordable prices to their target consumers so as to achieve a long-term
HIIHFWRQLQFUHDVLQJWKHILUP¶VPDUNHWVKDUHLPSURYHVDOHVYROXPHUHWDLQFXVWRPHUVDQGreduce
switching of customers. What customers say about the product is of paramount importance in
product positioning.
ϰϬ
7.0 REFERENCES.
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selling. Far East Journal of Psychology and Business, 12(3), 41-49.
Barskey, J. D. and Labagh, R. (1992). A Strategy for Customer Satisfaction. Cornell Hotel and
Restaurant Administration Quarterly.
Bhasin, H. (2017). Promotional mix: What are the different types of promotions? (Online).
Available at http://www.marketing91.com. Accessed on 15 March, 2018.
Brassington, F., & Pettitt, S. (2000), Principles of Marketing. (2nd Edition). Harlow Pearson
Education Limited.
Cheverton, P. (2004). Key Marketing Skills. (2nd Edition). Kogan Page Limited, London, UK.
Czinkota, M.R., & Ronkainen, I.A (2004), International Marketing. (7th Edition). Ohio: Harcourt.
Inc.
Farese, L., Kimbrell, G. and Woloszyk, N. (1997). Marketing Essentials. (2nd Edition). McGraw
Hill, California.
Jain, S.C. (2001). Marketing: Planning and Strategy. (6th Edition). Loneton Press, New York.
Jones, J.M. (2010). An exploratory study on attitude persistence using sales promotion. Journal of
Managerial Issues, 20(3), 401-416.
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Kamanga, E. (2013). The influence of packaging and labeling on young consumer buying behavior
of food items. Unpublished BSc Thesis. Lilongwe University of Agriculture and Natural
Resources, Bunda College.
Kisu, J.N. (2015). Effect of marketing strategies on the performance of seed companies in Kenya.
Published MSc Thesis. University of Nairobi, Kenya.
Kotler, P. & Keller, K.L. (2007). Marketing Management. (12th Edition). Pearson Prentice Hall.
Kotler, P. and Gary, A. (2014). Principles of marketing. (15th edition). Pearson Education, UK.
Kumawat, H.S. (2009). Modern Entrepreneur and Entrepreneurship: Process, Theory and
Practice. Sunrise Publishers and Distributors, Jaipur.
Lamb, W., C., Hair, F., J. and McDaniel, C. (2004). Marketing. (7th Edition). Thomson South
Western, Canada.
Lamb, W., C., Hair, F., J. and McDaniel, C. (2008). Marketing. (9th Edition). Thomson South
Western, Canada.
Loudon, D. and Bitta, A.D.J. (1993). Consumer Behavior: Concepts and Applications. (4th
Edition). McGraw Hill Inc. London, UK.
Mahadeorao, B.S. (2012). Consumer Behavior of Hybrid maize seed and study of Hybrid maize
market potential of Solapur district. Published MSc Thesis. Jabalpur College of
Agriculture, India.
McDonald, M. and Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. (8th Edition). Wiley Publishers, India.
Moore, D.S., McCabe, P.G., Duckworth, M.W. and Sclove, S.L. (2003). The Practice of Business
Statistics: Using Data for Decisions. W.H Freeman and Company, New York.
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Ochieng, O.M.C. (2014). Influence of sales promotion strategies on consumer behavior in the
alcoholic spirits industry in Nairobi Central Business District, Published MSc Thesis,
University of Nairobi, Kenya.
Ritchards, C., Dransfield, R., Richards, N. and Hough, K. (2006). Applied Business. Heinemann
Education Publishers, UK.
Saunders, M., Lewis, P. and Thornhill, A. (2009). Research methods for business students. (15th
Edition). Pearson Education, London, UK.
Sheth, J., N. and Mittal, B. (2004). Customer Behavior: A Managerial Perspective. (2nd Edition).
Thomson South Western, USA.
Sheth, J., N. and Mittal, B. (2008). Customer Behavior: A Managerial Perspective. (9nd Edition).
Thomson South Western, USA.
Spender, J., C. (2014). Business Strategy: Managing Uncertainty, Opportunity and Enterprise.
Oxford University Press, UK.
Surridge, M. and Gllespie, A. (2005). Business Studies. (2nd Edition). British Library, London.
Yousif, O.R. (2016). The Impact of Personal Selling on the Purchasing Behavior towards Clothes:
A Case Study on the Youth Category. Published MSc Thesis, Al-Zarqa University, Jordan.
ϰϯ
Appendix 1.
INTRODUCTION
You may also add anything you wish to be included in my research. A copy of the final report will
be made available to you at your request. All information elicited through this medium, will be
held in strict confidence and used for the research purpose alone.
CHECKLIST
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
ϰϰ
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
___________________________________________________________________________
ϰϱ
Questionnaire Number______________
Appendix 2.
QUESTIONNAIRE
CONTRIBUTION OF PROMOTIONAL MIX STRATEGIES ON CONSUMER BUYING
BEHAVIOUR OF SEED-CO MALAWI PRODUCTS. (A case study of Chitsime EPA, T/A
Chiseka in Lilongwe District).
INTRODUCTION
I am William Bisayi from Lilongwe University of Agriculture and Natural Resources, Bunda
Campus studying Enterprise Development and Microfinance. Am doing a research on the topic
above as one of the requirements for the program. I would like to get some data from you which
will help me in my research project. You are kindly requested to participate in answering the
questionnaire. Be assured that any information obtained will be treated with utmost confidentiality
and will be used for purpose of this study only. I therefore request that you may answer all the
questions with utmost honesty. Thank you.
A. IDENTIFICATION
Interviewer_________________________ Name of respondent___________________________
B. DEMOGRAPHIC INFORMATION
B1. Age B2. Sex B3. Education level B4. Marital status
C. GENERAL OVERVIEW
C1. What is your land size? (Acre / Hectare).
1. <1
2. 1-5
3. >5
ϰϲ
Questionnaire Number______________
C2. What Seed Co Malawi products do you cultivate? (Tick where necessary)
Yes No
1. Maize [ ] [ ]
2. Soy beans [ ] [ ]
3. Sugar beans [ ] [ ]
4. Other________________________________________________________ (specify)
C3. Why do you like to cultivate these products from Seed Co Malawi?
1. Cheap [ ] 3. Other(specify)_______________
2. Quality products [ ] __________________________
C4. What is the point of purchase for the seed if the seed was purchased? (Tick)
ϭ͘ Maize : Distributer Cooperative Other___________________________
Ϯ͘ Soybeans : Distributer Cooperative Other___________________________
ϯ͘ Sugar beans: Distributer Cooperative Other___________________________
ϰ͘ Other (Specify)________________________________________________________
Distributer Cooperative Other_______________
C5. What is the quantity of purchase in the 2018/19 growing season if seed was purchased?
ϭ͘ Maize : 1-5kg 6-10kg other (specify) ___________________
Ϯ͘ Soybeans : 1-5kg 6-10kg other (specify) ___________________
ϯ͘ Sugar beans: 1-5kg 6-10kg other (specify) ___________________
ϰ͘ Other (Specify)________________________________________________________
C6. If seed was not purchased, where did you get the seed?
1. used seed harvested from previous growing season [ ]
2. Given by friends [ ]
3. Other (specify) ________________________________________________________
C7. Since how long have you been purchasing or using Seed Co Malawi products?
1. Below 2 years [ ] 4. More than 10 years [ ]
2. 3-5 years [ ]
3. 6-10 years [ ]
C8. Apart from Seed Co Mw, which other company produces better seeds for you in Malawi?
ϰϳ
Questionnaire Number______________
C9. Rank performance of the following Seed companies in the following parameters.
Use the scale: 1. Excellent 2. Good 3. Moderate 4. Poor
Parameter Seed Co NSCM Monsanto PANAR
Malawi seed
Price
Quality of
products
C10. How do you learn about Seed Co Malawi products? (Tick where necessary)
Yes No
1. Friends [ ] [ ]
2. Family members [ ] [ ]
3. Adverts [ ] [ ]
4. Other ________________________________________________________(specify)
C11. As a customer, how do you rate the competitiveness of Seed Co Malawi in the market?
1. Extremely competitive [ ] 4. Less competitive [ ]
2. Very competitive [ ] 5. Not competitive [ ]
3. Competitive [ ]
C12. How likely are you to switch to an alternative Seed Company in Malawi?
1. Very unlikely [ ]
2. Unlikely [ ]
3. No opinion [ ]
4. Likely [ ]
5. Very likely [ ]
Yes No
1. Demonstration plots [ ] [ ]
2. Advertisements [ ] [ ]
3. Price off deals [ ] [ ]
4. Sales promotions [ ] [ ]
5. Other ________________________________________________________ (specify)
ϰϴ
Questionnaire Number______________
ϰϵ
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