CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Product quality refers to the perception of the degree to which the product or service meet the customers’ expectations. Quality has no specific meaning unless related to a specific function and/or objective.

Furthermore, product quality can as well be seen as   a group of features and characteristics of a saleable goods which determine its desirability and which can be controlled by a manufacturer to meet certain basic requirements.

Performance refers to a product’s primary operating characteristics. This dimension of quality involves measurable attributes, so brands   can usually be ranked objectively on individual aspects of performance. Overall performance rankings, however, are more difficult to develop, especially when they involve benefits that not every consumer needs. Performance is often a source of contention between customers and supplies, particularly when deliverable are not adequately defined within specifications. The performance of a product often influences the profitability or reputation of the end-user. As such, many contracts or specifications include damages related to inadequate performance. The question of whether performance difference is quality differences may depend on circumstantial preference but preferences based on functional requirements, not taste.

Sales performance is the measurement of the number of sales that an employee makes for a business. It helps more people hit quota more often by focusing on tools and processes to help the individual sales and channel personnel. Sales performance is also defined as the process of overseeing and training employees to advance their sales skills, processes and results. Making sure your sellers are motivated, trained and are in the right territories is critical to your success and every company should be focused on doing just that.

Effective sales management starts with clearly defined sales performances goals. Translating  an  organizations business objectives into daily activities and tasks is the process side of performance management without clearly defined performance goals, you cannot determine if it is the person or the process   that must be coached or changed. In this context, you will define the results that you need from your sales people, and the activities they need to maintain, in order to create the most productive possible relationship with your associates.

Product quality management is a philosophy and a set of guiding principles that represent the foundation of an excellent organization and to ensure survival of individual organization in the competition economy of today (Bester field, 1999).

Product quality is a technique that underscores the continuous improvement of product and service sales quality to satisfy customers and enhance sales volume and increased productivity in manufacturing organizations.

This study therefore is to give a clearer view of how product quality (namely performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality) plays very important roles in influencing customers satisfaction and as well   

1.2 STATEMENT OF THE PROBLEM 

Product quality practices have been shown to enhance sales performance in both product and service organization (Powell, 1995).

However, there is relatively little research on how product quality influence the sales performance in manufacturing organizations in view of what they do, how well they do it and its consequences. The growing body of research on product quality has focused on external customer perceptions of quality and satisfaction rather than organizational knowledge of quality practices.

Therefore, this study intends to empirically examine in specific terms, the impact of product quality on sales performance in Nigeria bottling company Port-Harcourt, Rivers State.

1:3     OBJECTIVES OF THE STUDY

The main objective of the study is to examine the impact of product quality on sales performance in the Nigeria bottling company Port-Harcourt. The specific objective include;

(i)      To ascertain the impact of product performance on sales performance in Nigeria Bottling Company Port-Harcourt, Rivers State.

(ii)     To ascertain the extent to which product reliability influence sales performance in Nigeria bottling Company Port-Harcourt Rivers State.

(iii)    To ascertain the impact of product durability on sales performance in Nigeria bottling Company Port-Harcourt Rivers State.

1:4     RESEARCH QUESTIONS

This study is aimed at providing answers to the following research questions:

(i)      Does product performance relate to sales performance in Nigeria bottling company Port-Harcourt?

(ii)     Does product reliability relate to sales performance in Nigeria Bottling company Port-Harcourt?

(iii)    Does product durability relate to sales performance in Nigeria Bottling company Port-Harcourt?

1:5     RESEARCH HYPOTHESES

For effective research of the topic, the following null hypotheses are formulated to guide the study;

Ho1: There is no significant relationship between product performance and sales performance in Nigeria Bottling Company Port-Harcourt.

Ho2: There is no significant relationship between product reliability and sales performance in Nigeria Bottling Company Port-Harcourt.

Ho3: There is no significant relationship between product durability and sales performance in Nigeria Bottling Company Port-Harcourt.

1:6 SIGNIFICANCE OF THE STUDY

The significance of every research study justifies the reasons for undertaking the study. The finding from this study is expected to be highly beneficial to all stakeholders in general, management and marketing practitioners of organization in particular.

Though the findings and recommendations from this study, management and marketing experts will be provided with information on how to improve on product quality and also enhance sales performance of their respective organizations.  As quality of products of organizations improves and firms step up their respective sales performance, profitability, sales volume and market share of the organizations will be enhanced. Also, per capital income of citizens and the general health of the economy would be assured and guaranteed.

This study will also be of great benefits to students and researchers as it will serve  as a reference material  especially to those who will want to carry out research on a related topic.

Finally, this study will add to existing stock of literature on product quality and sales performance. 

1:7     SCOPE OF STUDY

The scope of the study will cover three areas which include;

Geographical scope: The geographical scope of the study covers the Nigeria Bottling Company Port-Harcourt, Rivers State.

Content scope: the content scope of this study covers literature on product quality and its dimensions as well as sales performance and its measures.

Unit of Analysis: the unit of analysis will be organizational and will cover selected samples from the accessible population (Top, middle and lower managers) derived from the target population of the study (All Staff of Nigeria Bottling Company Port Harcourt).

1:8 LIMITATIONS OF THE STUDY

  Respondents were evasive. Certain polices  of the organization limited their willingness to offer information solicited.

Inadequate fund was another major challenge faced during the study

Time allocated to the research was not sufficient for an exhaustive research work as this. However, the work will meet required standard and quality.

1:9 DEFINITION OF KEY TERMS

Product: An article or substance that is manufactured or refined for sales to satisfy a need.

Quality: the standard of something as measured against other things of a similar kind, the degree of excellent of something

Sales performance: the quality or number of products sole or service provide by a company in a particular period of time, higher/lower/total sales performance boost/ increase sales

Organization: An organize body of people with a particular purpose especially a business society association.

Also an organization is a group of individuals working together to achieve one or more objectives. It involves hiring, training, culture structure and compensation.

Strategy:     The methodology, communication, execution and process of achieving set objectives.

Optimization:       Continues improvement of sales effectiveness and efficiency.

Metrics:      The measurement of performance improvements

Technology:         The next generation sales tools that enable higher sales productivity.