1.0 Introduction
1.1 Background Of The Study
The Nigeria economy got in power till 1986 a highly regulated economy with local, state and federal government owing a large value proportion of the national economy.
However, with the introduction of Structural Adjustment Programme (SAP) in August 1986. The national economy was deregulated and most of the control were abolished while the price mechanisms system or the market force system was introduced to determine the price of goods and services. Before the introduction of the Structural Adjustment Programme (SAP), the banking industry, like other sector of the economy was owned largely and controlled by the government.
The sector was dominated by those referred to as the Big four i.e. Union Bank, Afribank, UBA and First Bank. However with deregulation of the economy brought about the Structural Adjustment Programme (SAP), many private participants entered the industry. The competition brought by those banks offered some basic services some of the service offered by bank are receiving deposit of customers, collecting cheques of customers drawn on themselves. From this traditional function developed other services referred to as services banking. It is a related banking services and now banking activities.
A list of services offered by banks include acceptance and safe keeping of deposits and other valuable, granting of loans and overdraft to customers, transfer of funds business services foreign exchange services, money creation, cashing credit facility, project financing service funds transfer outside and within Nigeria, letter of credit and foreign currency domiciliary account etc.
Finally, these services benefit both the provide (Bank and the receive customers) as well as the economy without them bank cannot be in business and the economy will not grow individuals and corporate activities will also be hampered. It is based on these facts that bank services become very vital even before the advent of modern banking activities.
1.2 Statement Of Problems
Investigation revealed the problem statements of this research, which are stated as follows:
- To present the level of competition in the banking industry calls for strategies that will win the customer over.
- To understand what is purchasing what are services and how banks market their products called services. These are some of the areas this research emphasis much on.
- Ways bank can survive and have a sustainable share of market, it must be able to properly and profitable market it products.
- To also understand at the end of this research why banks are struggling to stay afloat in the turbulent business environment.
1.3 Aim and Objectives Of The Study
The aim of the study is to examine the Impact of Purchasing of Banking Services in Competitive Environment. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the purchasing strategies employed by bank in retaining existing customers and attracting new ones;
- To inquire into the cause of negative perception on the bank by the public; and
- To critically examine the various financial services offered by banks to measure the effectiveness of the purchasing activities employed by the banks also the objective that are intended to be achieved.
1.4 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Did the post reform competitive create any impact in the impact of purchasing of banking services?
- Does purchasing have any negative effect on banking services?
- What can the impact of purchasing of banking services contribute to the development of there industry?
1.5 Statement Of Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: Strategies purchasing activities lead to higher profit for an organisation.
- H02: Competition among banks lead to better quality of services.
1.6 Significance Of The Study
The research work is in partial fulfilment for the requirement for the award of Higher National Diploma (HND) in Purchasing.
The study will help open up the new possible avenue for further researcher, which will help to widen the knowledge of research.
The study will give the researcher as well as the public an insight on the issues, problems and prospect of Purchasing of banking in Nigeria.
1.7 Scope Of Study
As Anyanwu (2000) point out, a researcher is not expected to cover a discipline in the course of his study in line with this statement, this research work would not cover every thing on this topic, but specially on the relevant aspect of the impact of purchasing of banking service and the post reform of purchasing strategies in bank services delivery in Nigeria.
This study will examine the various purchasing strategies employed by some selected banks. The focus is on Nigeria banks and the study does not attempt to do comparative analysis of Nigeria banks and banks in other countries.
1.8 Limitation Of The Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint:
The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies:
Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint:
Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents:
A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition Of Terms
The researcher employed simple English for easy understanding of the terms phrases few terms can still be defined.
Purchasing Strategies:
Those strategies employed by firms and organisation to attract customer to there product and services.
Arm Chair Banking:
This is a period where bankers seat and wait for customers to come and patronize them they don’t hunt for customers.
Customer Satisfaction:
This happen when the customer is pleased with the various services rendered by the bank.
Deregulation:
To allow a particular sector or allow the market forces to determine price in the market or a particular industry.
Purchasing:
This is getting the right goods and service to the right people at the right place at the right time and with the right communication and promotion.
Bank:
An institution corporate recognised by a country’s highest monetary authority government business determined by that monetary authority or government.
Banking Business:
Is a business of receiving deposit on current account, savings account or other similar account or paying or collecting cheques drawn by or paid in by customers or provision of finance.
