EFFECT OF TEST MARKETING ON NEW PRODUCT PERFORMANCE (A STUDY OF 7UP BOTTLING COMPANY PLC)

ABSTRACT

This study examines the effect of test marketing on new product development (a study of 7up bottling company plc). The work further investigate the effect of test marketing on new product acceptance, performance and measurement. Date were collected from both primary sources and secondary sources using personal interview and questionnaire survey these date were analyzed using description statistics, simple regression and correlation analysis.  Base on the result of the analysis, regression result of the effect of test marketing on new product quality has the computed f – value as 16.101 while the table value on new product acceptance has computed is 228. Regression result of the effect of test marketing on new product acceptance has computed f – value as 68.762 while table value is 228. Regression result of the effect of test marketing on substitute has the computed f -    value as 54.262 while table value is 228. As a recommendation, companies should encourage test marketing acceptance and performance and lunching of new product and marketing campaign 

TABLE OF CONTENTS

Title Page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Acknowledgement ﾿ iv

Table of Content ﾿ v

List of table ﾿ vi

Abstract ﾿ vii

CHAPTER ONE

1.0   Introduction ﾿ 1

1.1 Background of Study ﾿ 1

1.2 Statement of Problem ﾿ 4

1.3 Objective of the Study ﾿ 5

1.5 Research Questions ﾿ 6

1.6 Research Hypotheses ﾿ 6

1.7 Significance of the Study ﾿ 6

1.8 Scope of the Study ﾿ 7

1.9 Limitations of the Study ﾿ 8

 CHAPTER TWO

2.0 ﾿ Literatures Review ﾿ 9

2.1 ﾿ Conceptual Framework ﾿ 9

2.2 ﾿ Review of Related Literatures ﾿ 10

2.2 (1) Meaning of Test Marketing ﾿ 10

2.2 (2) Measuring of New Product Quality with Test Marketing ﾿ 11

2.2 (3) Criteria for New Product Acceptance ﾿ 12

2.2 (4) Performance Criteria for New Product ﾿ 14

2.2 (5) Test Marketing as a Tool Measuring for New Product Performance ﾿ 15

2.2(6) ﾿ Application of Test Marketing in 7up Bottling Company ﾿ 16

2.2(7) ﾿ Different Types of Test Marketing in New Product Development ﾿ 17

2.2(8) ﾿ Problems Associated with test Marketing ﾿ 22

2.2(9) ﾿ History of 7up Bottling Company ﾿ 22

CHAPTER THREE

3.0 ﾿ Research Methodology ﾿ 24

3.1 ﾿ Research Design ﾿ 24

3.2 ﾿ Area of the study ﾿ 25

3.3 ﾿ Sources of Data and method of data collection ﾿ 25

3.4 ﾿ Population of the Study ﾿ 25

3.5 ﾿ Sampling Technique and Sample Size ﾿ 25

3.6 ﾿ Validity of the study ﾿ 27

3.7 ﾿ Reliability of the study ﾿ 28

3.8 ﾿ Method of Data Analysis ﾿ 28

3.9 ﾿ Model specification ﾿ 28

CHAPTER FOUR

4.0 ﾿ Data Presentation, Analysis and Interpretation ﾿ 30

4.1 ﾿ Data Presentation and Analysis ﾿ 30

4.2  ﾿ Hypotheses Testing ﾿ 34

4.2.1 Research Hypothesis One ﾿ 34

4.2.2 ﾿ Test of Hypothesis Two ﾿ 36

4.2.3 ﾿ Test of Hypothesis Three ﾿ 38

4.4    Discussion of Findings ﾿ 40

CHAPTER FIVE

5.0 ﾿ Summary of findings, conclusion and recommendations ﾿ 41

5.1 ﾿ Summary of Findings ﾿ 41

5.2 ﾿ Conclusions ﾿ 41

5.3 ﾿ Recommendations ﾿ 42

REFERENCE

APPENDIX