ABSTRACT
The research focuses on evaluating consumers Patronage of
Consumer Cooperative Stores. A cross- sectional survey of two hundred (200)
members of Consumer Cooperative was conducted to determine factors that
influence consumers Patronage and also examine the level of patronage of
consumer cooperative stores in Enugu State. A uniform set of structured
questionnaire and interview were employed to collect data for the study.
The results show that sex, income level, education and
availability are factors that influence patronage of consumer cooperative
stores. More so, the result reveals that members of the consumer cooperative
often patronize the consumer store. Consequently upon the findings, the
researcher recommends that emphasis should be laid on cooperative education to
equip members with the knowledge and skill about cooperative principles,
management and business. More so, it will help to instill in members
cooperative values, scale up their understanding and participation in
cooperative business by organizing seminar, workshop, discussion group and
meeting. Also staff-owned consumer cooperative stores should be established
outside the working premises to attract none members to patronize the consumer
store. More so enable them to compete with other retail outlets. Consumer
cooperative should endeavour to employ staff for the consumer store instead of
rotating it among themselves to avoid distraction. There is need for qualified
manager and account officer for efficient management of the consumer
cooperative store and record keeping. The cooperative should adopt the
principle of patronage refund. Such policy promotes members loyalty thus
increase the patronage of the consumer store.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Cooperative is a form of economic organization based on
certain human values. The International Cooperative Alliance has defined cooperative
as ‘an autonomous association of persons united voluntarily to meet their
common economic, social and cultural needs and aspirations through a jointly
owned and democratically controlled enterprise’.
According to Kattookaran (2002) cooperatives are
service-oriented institution based on the principles of each for all and all
for each. It is an organization of the people, by the people and for the
people. The basic objective of the cooperative movement is to achieve the
welfare of the members concerned and to protect them from exploitation. In
developing countries, cooperatives have been assigned some important role as
instrument of economic and social transformation. Cooperative aims to remedy
the economic inequality and the evils of concentration of the weaker section by
the strong.
Cooperative came as an aftermath of
industrial revolution which took place in Britain as a reaction to the
capitalist exploitation such as hike in price, profiteering, adulteration of
goods, offering to the market goods with incorrect weight and measures. The
first workable cooperative society was founded in England by the Rochdale
pioneers group of weavers. The policy and organization they adopted later
became the principle of cooperation. The principles of cooperation formulated
by Rochdale pioneer were: democratic control, open membership, limited interest
on capital, patronage divided, cash trading, sale of pure and unadulterated
goods, education of members and political and religious neutrality. The London
Congress (1934) and Vienna Congress (1966) of the International Cooperative
Alliances have revised the principles of cooperative formulated by Rochdale
pioneers. The ICA general assembly met in the occasion of ICA’s centennial
congress in Manchester in September 1995 and approved the ICA 1995 principles
which include; voluntary and open membership, democratic management and
control, member economic participation, autonomy and independence, education,
training and information, cooperation among cooperatives, concern for
community, Uchendu (1998) noted.
The cooperatives have enlarged its
activities in all spheres of human life namely production, distribution,
housing, education and so on.
1.1.1 CONSUMER COOPERATIVE SOCIETIES
Since time immemorial, middlemen have been exploiting the
consumers. It is the consumers who ultimately bear all the burden of the
various middlemen who engaged in the distributive channel of trade. These
middlemen also indulge in the variety malpractices such as underweight,
adulteration, black marketing, hoarding and profiteering. As long as these
nefarious activities of the middlemen are not checked, price line cannot be
brought under control, Himachalam (1991). Under this situation, consumer
cooperative was the only answer to protect the interest of the consumers as a
whole.
Consumer cooperative is a business enterprise run by
consumers who are members as well as owners of the business. According to Guelp
(1993), Consumer cooperative is a cooperative business owned by its customers
for their mutual benefit. The consumers of the goods and services which the
business provides are often the individuals who provide the capital required
for establishing the enterprises.
In the words of Igwe (1999), consumer
cooperative provides unlimited opportunities for helping to solve consumers’
problems and improving the quality of their lives. Consumer cooperative is
organization, which intends to support the economy of member household through
the acquisition of merchandise from wholesalers for sales to members at a fair
price, Igwe (2006) noted. In carrying out their commercial activities, they are
consciously guided ethically by values such as honesty in business, sales of
high quality goods and services, fair prices and advice to consumers so as to
get the best possible decision for the satisfaction of their needs.
A consumer cooperative store is a voluntary organization of
consumers, organized to obtain their requirements of consumer goods and
services on the terms of greatest advantages to them Mathur (1991). Consumer
cooperative stores also sell to non-members and the cost savings that result
from their large-scale operation are onto members. According to Kattookaran
(2002), consumer cooperatives are supposed to serve as the best custodian of
the consumers by supplying quality products and services at reasonable price
and in correct weight.
Consumer cooperative
society is one of the
types of retail
outlets. According to Agbonifoh et al (1998), consumer cooperative
societies are economic associations of consumers for the purposes of purchasing
goods from manufacturers or wholesalers to a retailer to members of the
cooperative who, by definition, are final consumers. Retailing is the process
of selling goods directly to the ultimate consumers. A retailer is a
specialized marketing functionary linking the wholesaler or the producer with
the final consumer. As a specialist in selling to the final consumers, he buys
the assortment of goods demanded by the consumers and makes them available to
the consumers at convenient points from numerous sources. He convinces the
consumer to buy, employs all the marketing variables at his disposal,
Agbonifoh et al (1998).
According to , Agbonifoh et al (1998), retailing has evolved
over the years as is evident in the different types of retailers and the
different functions performed by them over time. Three theories have been
advanced to explain the evolution of retail institutions. The theory of natural
selection maintains that retail institution that adapts best to its environment
will survive and grow. Another theory asserts that retailing institutions that
pass through a life cycle begins with low margin, low price and minimum
services. The next stage in the life cycle sees the retailer
upgrading his facilities and offerings and adding more services in a bid to
increase the volume of sales and hopefully profit.
According to Uchendu (1998), consumer cooperative store is a
retail store that is put up by group of people who come together as a
sociological group to pursue common objectives of:
Buying in large quantities to reduce unit cost.
Buying directly from producers to reduce the incidence of
buying adulterated goods.
Enjoy other economies of scale associated with bulk
purchases.
Consumer cooperative came as an aftermath of industrial
revolution which took place in Britain as a reaction to the capitalist
exploitation such as hike in price, profiteering, adulteration of goods,
offering to the market goods with incorrect weight and measures. The first
successful consumer cooperative was the Rochdale Equitable Pioneers.
In Nigeria, the establishment of consumer cooperative was
prompted by the scarcity of consumer goods after the Second World War. It
started as a village store with meager resources. People pull their resources
and stocked consumer shop so that they can buy from the manufactures or
importers at same price as their counterparts, the competitors.
Members derive a lot of benefits by
joining a consumer cooperative society which urges them to patronize the
consumer cooperative store. Some of the benefits according to Igwe (2006) are
that the membership affords one the opportunity of buying goods at a very
cheaper price. The cheapness of the goods helps the members to save money
thereby contributing to improvement of the socio-economic status of members.
The goods bought are free from adulteration, shortage of weights and measure
and other bad practices in inherent in capitalist trade. The consumers are sure
of getting what they bargained for at consumer store without fear. There is
also regular payment of dividend to members in form of patronage to the
consumer store, Chukwu (1990). Consumer cooperative protects members from being
exploited by middlemen. The idea of cooperative is in the forefront of
upholding this stand in the interest of the consumers.
More so, consumer cooperative makes goods available to
consumers at all times which implies that consumers are sure of getting what
they want at all times. The interests of consumers are highly protected.....
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