Distribution Intensity and Marketing Utility Perception of Consumers of FMCG Products in Lagos State, Nigeria: Moderating Effect of Channel Multiplicity

Abstract

It has been suggested that a firm should adopt only a few variety of routes to market in order to minimise channel conflicts. But today’s consumers which have developed varied and complex choices and preferences for where and how they want to purchase products are continuously forcing FMCGs firms to tailor their channel design and configuration towards multiplicity of channels. Therefore, this study examines the effect of distribution intensity on consumer perception of marketing utility in relation to channel multiplicity. Cross sectional survey research design was adopted for data collection with the aid of a structured and closed ended questionnaire. The questionnaire was administered to 384 consumers across all the local government areas in Lagos. Data was analysed using descriptive and inferential (simple and multiple linear regression analysis) statistics. Findings reveal that distribution intensity has a significant positive effect on marketing utility perception of consumers of FMCGs products in Lagos State, Nigeria. Also, a significant positive relationship was established between distribution intensity and channel multiplicity. Further results show that channel multiplicity has a significant positive effect on marketing utility perception. In a final analysis, the study reveals that distribution intensity and channel multiplicity have a combined effect on marketing utility perception. In concluding, the study gave useful recommendations.