Niche Marketing Strategies: Consumer Perceived Value andWillingness 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. Acorrelational research design was adopted. Questionnaire was used to solicit opinionfrom respondents who are residents within Lagos state metropolis. Conveniencesampling technique was adopted to survey respondents that are accessible and willingto participate in the survey. Pearson correlation and regression analysis were usedtotest the four hypotheses stated. Results of the analysis revealed that the threevariables are significantly related to one another. Specifically, niche marketingstrategies and perceived value (r= .540, p<.000), niche marketing strategies andconsumer 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 nichemarketing 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 nichemarketing strategies is a potent strategy to compete ef ectively in the dynamic andgrowing competitiveness of business environment. On the basis of the findings, thestudy recommends that companies pursuing niche marketing should realize that
niches are relatively too small to be served lucratively, hence, there is need for acustomer database so as to keep track of customer preferences for improvedrelationship building. In addition, to ef ectively pursue niche marketing, firms shoulddevelop 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.