Niche Marketing Strategies: Consumer Perceived Value and Willingness to Pay for Whole Wheat Bakery Products

Abstract

This study examined the relationship between niche marketing strategies, consumer perceived value and willingness to pay for whole wheat bakery products. A correlational research design was adopted. Questionnaire was used to solicit opinion from respondents who are residents within Lagos state metropolis. Convenience sampling technique was adopted to survey respondents that are accessible and willing to participate in the survey. Pearson correlation and regression analysis were used to test the four hypotheses stated. Results of the analysis revealed that the three variables are significantly related to one another. Specifically, niche marketing strategies and perceived value (r= .540, p<.000), niche marketing strategies and consumer willingness to pay (r= .508, p<.000), and perceived value and consumer willingness to pay (r= .322, p<.000). Furthermore, the results showed that only niche marketing strategies predicted consumer willingness to pay (β=.472, t=5.190, p=.000), perceived value is not a predictor of consumer willingness to pay (β=.067, t=.742, p=.460) for whole wheat bakery products. The study concluded that niche marketing strategies is a potent strategy to compete effectively in the dynamic and growing competitiveness of business environment. On the basis of the findings, the study recommends that companies pursuing niche marketing should realize that niches are relatively too small to be served lucratively, hence, there is need for a customer database so as to keep track of customer preferences for improved relationship building. In addition, to effectively pursue niche marketing, firms should develop strong internal dynamic capabilities to serve as strong defensive barriers that will enable them to grow along with their market and possibly expand into other profitable market clusters.