Open Access Original Research Article

Consumers’ Loyalty to Bottled Water Brands in Nigeria: An Empirical Study

Okey C. Akabogu

Journal of Economics, Management and Trade, Page 1159-1173
DOI: 10.9734/BJEMT/2014/7104

Aims: This study operationalized a theoretical framework, the “brand-choice sequences” theory, to empirically measure and analyze consumers’ loyalty to brands of bottled water in Nigeria, using Awka, a capital city of Anambra State, Nigeria and six bottled water brands as study slices. The study objectives focused on determining if brand loyalty exists among the bottled water consumers and to what extent. This study provides marketing intelligence on loyalty to brands of bottled water in this part of Nigeria.  Such marketing intelligence on brand loyalty is expected to contribute to the formulation and reformulation of promotional strategies in the bottled water industry in Nigeria. 

Study Design: This study was based on a survey of a convenience sample of 280 bottled water consumers resident in the place of study at the time of the study.

Place and Duration of Study:    The place of study is Awka a capital city of Anambra State, Nigeria. The duration of the study was from August 1st to August 30th, 2013.

Methodology:   Quantitative methodology involving the use a questionnaire with interval and nominal scales was used to collect data on consumers’ purchases and repeat purchases of the bottled water brands under consideration. The interval scales on the measurement instrument yielded a Cronbach’s alpha of .63. The method of data analysis was a computerized analysis involving single sample t-tests and analysis of variance (ANOVA). 

Results: This study found that there while there were significant differences in brand loyalties to the bottled water brands, there was however no significant undivided loyalty to any of bottled water bands. Segmentation analysis of brand loyalty by age showed no significant difference across the age segments. The income segments also showed no significant difference in brand loyalties. Across the education segments, no significant difference in brand loyalties was detected.

Conclusion: The study concludes that the “brand-choice sequences” theory can be empirically applied to measure, and analyze brand loyalty in the bottled water market in Nigeria, thus extending the testing and universality of the theory. This extension is significant in the study of brand loyalty, an area of marketing where there appears to be insufficient application of theoretical frameworks in measuring and analyzing brand loyalties in various consumer goods categories in Nigeria.


Open Access Original Research Article

Social Accounting Matrix Balanced Based on Mathematical Optimization Method and General Algebraic Modeling System

Ming- Chang Lee, Li- Er Su

Journal of Economics, Management and Trade, Page 1174-1190
DOI: 10.9734/BJEMT/2014/8942

Aims: Social accounting matrix (SAM) is a kind of important form in the national accounts calculation. The requisite data are typically collected from a number of different sources.  Therefore, much of data used will not be immediately consistent. The aim of this paper present the various methods of balancing applied to social accounting matrix.

Design: These methods (RAS, Cross-entropy (CE), least square, linear programming with  and linear programming with  method) are applied widely for develop and keep and time consistent multi-sector datasets.

Methodology: This paper solves the social accounting matrix balanced problem using iterative method (in RAS approach) and using the computer program about General Algebraic Modeling system (GAMS) (in other approach). The sum square error of the estimated table from the initial table is used as the main instrument to measure deviation of the updated matrices from the matrix.

Results: We found that CE method is more accurate than the other methods.


Open Access Original Research Article

Risk and Concentration of Portfolios on the Zimbabwe Stock Exchange after Currency Reform

Batsirai Winmore Mazviona, Davis Nyangara

Journal of Economics, Management and Trade, Page 1191-1202
DOI: 10.9734/BJEMT/2014/8684

Aims: The objectives of this study are to assess the level and impact of concentration of portfolios on the ZSE and to determine the number of stocks to be held in a concentrated portfolio to achieve effective risk reduction.

Study Design:  Portfolio Model.

Place and Duration of Study: Zimbabwe, Department of Insurance and Actuarial Science and Department of Finance, between February 2013 and March 2013.

Methodology: We analysed the level of concentration of portfolios held on the Zimbabwe Stock Exchange (ZSE). The market capitalization weights and the daily closing prices of 62 stocks in the industrial index for the four-year period form 19 February 2009 to 31 December 2012.

Results: The Herfindahl-Hirschman Index and the Roll measure of concentration were employed to analyse the level of concentration of portfolios mimicking the industrial index and it was observed that portfolios held on the ZSE are highly un concentrated with an approximate measure of 14% under the HHI measure as at 31 December 2012. The daily returns over the period were calculated and used to estimate the risk of the portfolio. The findings indicates that stocks in the industrial index of the ZSE have relatively low correlation due to the small difference in risk between equally weighted portfolios with no correlation and equally weighted portfolios with historical correlation.

Conclusion: The empirical evidence highlights that an optimal portfolio size averaging 20 to 25 stocks of the Industrial Index stocks will have to be included in order to achieve effective risk reduction.


Open Access Original Research Article

Issues in the Management of the Supply-side Financing of Micro, Small and Medium Enterprises (MSMEs) in Nigeria

Paul O. Udofot, John O. Udoidem

Journal of Economics, Management and Trade, Page 1203-1213
DOI: 10.9734/BJEMT/2014/8688

Access to financial credit facilities remains top on the list of constraints affecting the development of MSMEs in Nigeria. This state of affairs subsists despite the nation’s robust financial sector. Commercial banks loans portfolio to MSMEs as percentage of total credit to the private sector has been dwindling over time, from 27.04 percent in 1992 to less than one percent in 2012. Driven by the desire to effect a positive change, government has initiated policies and programmes which have produced unsatisfactory results. International best practices identify interventions which can substantially contribute to effective and greater efficiency in financial credit system delivery. Such interventions, modified along the line of a developing economy environment are needed as integral part of efforts to initiate, develop and sustain MSMEs in Nigeria.


Open Access Original Research Article

Optimization of Resources of the Company

Abdelhakim Handous

Journal of Economics, Management and Trade, Page 1214-1229
DOI: 10.9734/BJEMT/2014/8381

This article helps to understand that there is no theory of optimal capital structure of the company in a perfect market where there are no transaction costs, costs of bankruptcy and tax and where information is perfect.  It recalls that the consideration by some authors of market imperfection factors implies that there is an optimal capital structure of the company corresponding to its maximum value.  It reviews the financial conditions of the capital increase by companies.  It shows that the demand of optimal debt to a debtor is based on his expectation of credit and the conditions for granting the credit, requested in terms of interest rate and repayment periods, offered by the creditor.  It proposes a model for determining the optimal rent for a rental investment operation by a company.     


Open Access Original Research Article

Performance and Visitor’s Satisfaction of Recreation Facilities in Akure Metropolis: A Veritable Tool for Impacts Studies in Undp Mdg’s Cities in Nigeria

S. O. Oladeji, O. O. Adedapo

Journal of Economics, Management and Trade, Page 1230-1250
DOI: 10.9734/BJEMT/2014/9136

Performance of recreational centers and level of satisfaction derived by participants are considered as veritable tool to explore the economic and social impacts of recreational activities on the host communities in UNDP MDG’s cities. This research work was undertaken in four of the randomly selected recreation centers in Akure Metropolis through multiple research techniques including site observation, personal communication, questionnaire administration and collection of secondary data. The research was undertaken during the weekends over a period of six months between January and June 2013. It was observed that greater percentage of the participants (80%, 90%, 100% and 71.4%) expressed their willingness to revisit; this is an indication that the satisfaction and purpose of their visits have been achieved. Over 50% of the respondents in all the centres also indicated that the quality of services being provided was good. None of the staff working in any of the centers received less than $1 daily this form part of the target of UNDP MDG to eradicate poverty and hunger by year 2015.While facilities being enjoyed most by the visitors need to be maintained others need to be improved upon and additional ones need to be acquired to boost customer’s patronage. Private and government operators of recreation centers as well as other policy makers in tourism industry will benefit tremendously from this research output in their quest to meet the economic and social needs of their communities.


Open Access Original Research Article

Impact of Agricultural Credit Guarantee Scheme Fund (ACGSF) on Domestic Food Supply in Nigeria

S. Saheed Zakaree

Journal of Economics, Management and Trade, Page 1273-1284
DOI: 10.9734/BJEMT/2014/6441

Food supply in Nigeria depends on the rural population who are the main producers of food for the entire population. However, due to the continuous movement of people, particularly, the youths, to the cities in search of lucrative jobs, very few people are left to work on farms. Majority of these farmers engage in subsistence agriculture and lack sufficient funds to operate, expand their business, or even practice mechanized farming, with modern equipment like plough, tractors and other labour saving devices. There is insufficient and limited sources from which funds can be obtained by these farmers. In fact, about a third of the credit needs in rural areas are met by formal lending agencies, which has led to the dominance of informal credit associations like the credit and thrift cooperatives, community development associations and moneylenders. As part of the government effort to guarantee adequate food supply in Nigeria, the government has put in place many policies including an agricultural credit guarantee scheme fund (ACGSF).

Aims: The objective of this paper therefore is to examine the effect of Agricultural Credit Guarantee Scheme Fund (ACGSF) on domestic food supply in Nigeria

Place and Duration of Study: The study was carried out in Nigeria, between the period of 1988 and 2011.

Methodology: The study used secondary data which include annual agriculture credits guarantee funds and the total domestic food output obtained from CBN’s statistical bulletin; the rural population data, obtained from the NBS’s reports; and the average annual rainfall for the country, calculated from the annual rainfall in each state of the federation obtained from the Nigerian Meteorological Agency. The data were analysed using Ordinary Least Square approach.

Results: The results show a robust Adjusted R-square of about 86.3 percent. The value of t-Statistics of each of the explanatory variables shows 3.0323 for ACGSF, 6.8480 for RP and 2.5418 for AAR, indicating that the explanatory variables are statistically significant in explaining domestic food supply (DFS) in Nigeria. Meanwhile, the results give a coefficient of 0.14454 for Agricultural Credit Guarantee Scheme funds (ACGSF), 7.17082 for rural population (RP) and -1.4870 for the annual average rainfall (AAR). It implies that a change of one percent in Agricultural credit facility to the farmers in the agricultural sector, will bring about a change of about 0.14 percent, 7.17 percent and 1.48 percent respectively, on domestic food supply in Nigeria.

Conclusion: It is observed that there has been an increase in the trend of agricultural credits guarantee funds to the farmers within the period of observation, with an average growth of 573.8 percent compared to the average growth of 59.25 percent in the domestic food supply in Nigeria, and the changes in the agricultural credit guarantee fund to the farmers has a significant impact on the domestic food supply.

Recommendation: Based on the finding, it is recommended that the government should encourage agri-business, and the youths, especially fresh graduates be equipped to practice scientific farming. This would greatly improve agricultural production and hence increase food supply in Nigeria.


Open Access Original Research Article

The Effect of Change Management on Operational Excellence in Electrical and Electronics Industry: Evidence from Malaysia

Oon Fok-Yew, Hartini Ahmad

Journal of Economics, Management and Trade, Page 1285-1305
DOI: 10.9734/BJEMT/2014/9201

The objective of this study is to investigate the main hypothesis between change management and operational excellence. This empirical research utilizes causal studies as it attempt to ascertain the relationship between the soft systems in the change management and operational excellence.The study focuses on the soft systems (i.e. leadership, human resource, culture) in the change management. Based on the literature review, the authors develop a linkage that the change management factors are likely to contribute positively to the operational excellence of the organization. A survey of a sample of Malaysia’s manufacturing leading sector, Electrical and Electronics (E&E) industry was conducted between February 2013 and June 2013. More than 100 organizations responded to the questionnaire survey. Data was analyzed using multiple regressions. The theoretical framework guided by theoretical perspectives which is the resource-based view. There was a significant and positive relationship between transformational leadership style, human resource practices and involvement cultural trait on the achievement of operational excellence. Importantly, this research finding adds value to theory building in both change management and operational management domains. The contribution to a body of knowledge in terms of promoting better understanding of the operational excellence in Malaysian E&E industry. Practical adoption of change management may improve infrastructural decision areas of manufacturing strategy such as benchmarking, best practices, quality practices and human resource policies. Therefore, it has implication on activities concerning organization and managing change.


Open Access Original Research Article

Assessment the Impact of Zakat on Aggregate Consumption and Poverty: Evidence From Egypt

Hisham H. Abdelbaki

Journal of Economics, Management and Trade, Page 1306-1322
DOI: 10.9734/BJEMT/2014/9516

This study aims at investigating the impact of Zakat on aggregate consumption and poverty alleviation in Egypt. To achieve this, the study presents the concept of poverty and the strategies of poverty alleviation in a conventional economy, and then discusses the concepts of poverty in Islam and the ability of Zakat to eliminate poverty in the Muslim community. The most important results are the potential Zakat collection in Egypt cannot eradicate poverty from the Egyptian economy and the other types of charities may play an important role in eradicating poverty in Egypt. The study recommends the need to pass legislation that requires the collection of Zakat from different sectors, organizations and institutions as well as individuals. Finally, the study emphasizes the need to voluntary charities as complementary tools in poverty eradicating. The study recommends also the Egyptian government to monitor and control the processes of collecting and distributing Zakat where the more directed to the poorest eligible (first of the eligible categories), the greater the effect on consumption then on poverty.


Open Access Review Article

Modern Maritime Piracy: An Overview of Somali Piracy, Gulf of Guinea Piracy and South East Asian Piracy

Bruce A. Forster

Journal of Economics, Management and Trade, Page 1251-1272
DOI: 10.9734/BJEMT/2014/8893

Maritime Piracy has existed since ancient times. In recent decades there has been a resurgence in piracy. The major focus for much of the past 10 years has been on piracy in the waters off the Horn of Africa conducted almost exclusively by Somali pirates. Attention has been drawn also to piracy in the West African Gulf of Guinea and in South East Asia. This paper draws upon the data resources of the International Chamber of Commerce - International Maritime Bureau to develop statistical profiles of piracy over the 11 year period 2003-2013 for these regions. The actions of the pirates have economic and human consequences. A World Bank study estimated the annual, global cost of Somali piracy alone to be US$ 18 billion. Over the time period analyzed more than 6000 crew were held hostage, or kidnapped, for ransom. Guns were the most frequently cited weapon used in attacks. The data shows that the most of the successful attacks were those on ships at berth while the success rates were lowest for attacks on steaming ships. Drawing upon additional information in Reports of the UN Office of Drugs and Crime, studies by the World Bank and the ReCAAP Information Sharing Center, the paper discusses the differences in the strategies used by the Somali pirates, those employed by the pirates in the Gulf of Guinea and those in South East Asia.