APPLICATION OF PURCHASING CONCEPT AND ITS IMPLICATIONS ON ORGANIZATIONAL OBJECTIVE SERVICE INDUSTRY

APPLICATION OF PURCHASING CONCEPT AND ITS IMPLICATIONS ON ORGANIZATIONAL OBJECTIVE SERVICE INDUSTRY

Chapter one

INTRODUCTION

1.1 Background of the Study

The purchasing concept is an important management theory employed in modern business operations. However, prior to this, there were other business philosophers, such as the concepts of producing and selling.

However, when conditions changed and rivalry in the economic sector intensified, the purchasing notion evolved and became more prominent.

As rivalry among businesses heated up, it became critical to pay attention to customers’ demands and desires. The purchasing concept evolved to supersede all earlier concepts.

The purchasing concept states that the key to meeting target market demands and wants is to supply the needed satisfaction more effectively and efficiently than competitors.

The purchasing concept is a management philosophy orientation or frame of mind that the marketer works with. It is based on a purchasing focus, customer orientation, co-ordinated marketing, and profitability (kotter 1997).

Purchasing has stated that the purchasing concept is the appropriate philosophy for conducting business. Simply put, the purchasing concept suggests that an organisation should satisfy consumer needs and wants.

In order to make a project to implement the purchasing concept, organisations must understand their consumers and stay close to them in order to provide services that consumers will purchase and use appropriately (peter and solemn 1996).

According to what is observed in real life today, not all corporate organisations accept the purchasing philosophy. For example, in the face of scarcity, the customer is not the king.

Rather, the seller is the king. Most companies do not relay or embrace the purchasing concept unit; instead, they are driven to it by circumstances such as sales growth, changes in purchasing, and increases in market expenditure.

There is now forced competition in Nigeria’s foundry and dry cleaning service industries. When faced with competition, it becomes critical to engage in a consistent and acceptable purchasing strategy.

So laund and dry cleaning services in Nigeria today recognise the importance of purchasing their services because they know they cannot survive without using purchasing strategies.

Previously, most laundry services did not consider purchasing to be a necessary department that planned their purchasing strategies.

Customer satisfaction has become the focus of transport company operations in owerri. Customers say that they are dissatisfied with the service provided by their Landry and dry transport providers; yet, they do not demonstrate that they are using the purchasing concept of prioritising customer satisfaction with a straight comic Landry purchasing approach to enhance performance.

1.2 Statement of the Problems

For long years, Nigerian enterprises, particularly those in the transportation industry, have not used the purchasing idea. Service firms that emphasise the purchasing idea required the organisation to turn its purchasing concept into a purchasing text rather than something in which the entire organisation was involved.

The purchasing approach is poorly implemented, with negative consequences for Nigeria’s organisational objectives. Most dry cleaning customers are dissatisfied. There have been numerous accusations about efficiency favouritism and an unpleasant attitude towards workers.

Given the current state of ITC in Owerri metro, can we conclude that these criticisms and compliments are valid? Has Imo Transport Company failed to apply purchasing concepts?

Are clients unsatisfied with the Imo Transport company? These and other questions are the topic of this investigation.

1.3 PURPOSE OF THE STUDY

The key objectives of the study are to determine if adopting the purchase concept or purchasing management philosophy as a business strategy, and whether this concept is being applied according to transport personnel.
More specifically, the study’s objectives include

1. Determine whether clients of itc service are satisfied with the quality of service they receive.

2. to determine if the service behaviour of ITC is consistent with the needs of the purchasing ideas.

3. Determine whether Imo Transport Company provides appropriate tanning and teaching to their employees on the importance and mechanism for applying the purchasing concept.

4. to ensure that consumers receive their washed clothes on schedule.

5. Determine whether the Imo Transport company’s environments are comfortable and conducive to client service and transactions.

6. Determine whether consumer complaints and problems are addressed sufficiently and effectively.

1.4 Hypothesis 

The following hypotheses were formulated to focus this study.

Ho Imo Transport Company does not consider the demands of their clients in their purchasing act agreements.

HI ITC firm does not regard their consumers’ needs in their purchasing practices.

Customers are dissatisfied with the purchasing actions of snow-white Imo Transport companies.

Ho, clients are delighted with the purchase operations of snow – white Imo Transport companies.

Imo Transport listens to its customers’ complaints.

Ho, ITC in Owerri listens to the complaint of their consumer.

The purchasing practices of Ho ITC in Owerri have a negative impact on client patronage.

ITC’s purchasing practices in Owerri have a favourable impact on client patronage.

1.5 Significance of the Study

The most important component in the functioning of a transport firm in Owerri is customer happiness. This is especially true in recent times, when several modes of transit are now functioning in the country and fighting for client patronage, and we can see how many of these exist in Owerri.

The battle to win customer patronage, survive, and grow is predicated on the ability to provide the expected or required satisfaction to customers, which is why this study is critical, and dry cleaning services will know where they stand in their ability to provide quality and satisfactory service to their customers, as well as what tactical policies to implement.

Above all, this study will benefit both the researcher and the target audience, as it will promote in-depth knowledge and comprehension in the subject, potentially leading to further research.

1.6 SCOPE OF THE STUDY

This study is limited to the Owerri metropolitan area and examined raw transportation firm customers and personnel. The study aims to assess if the transport company in Owerri has adopted and is executing the purchasing concept, as well as the extent to which the transport company in Owerri provides satisfying service to clients.