THE EFFECT OF HIGH COST OF TRANSPORTATION ON THE MARKETING OF CONSUMER GOODS IN FEDERAL CAPITAL TERRITORY ABUJA. (A CASE STUDY OF NIGERIAN BOTTLING COMPANY IDU, ABUJA)
Abstract
Rising transportation costs pose a significant challenge for businesses and consumers alike, particularly in countries like Nigeria with underdeveloped infrastructure. This study examines the effect of high transportation costs on consumer goods, focusing on the case of Nigerian Bottling Company (NBC) Abuja. Utilizing a combination of surveys, interviews, and company reports, the study explores the impact of transportation costs on NBC Abuja's operations, cost structure, and ultimately, the prices of consumer goods. Additionally, consumer perceptions and purchasing habits influenced by these price changes are evaluated. The study reveals that high transportation costs have significantly impacted NBC Abuja's operational costs, leading to adjustments in logistics strategies and cost-saving measures. These increased costs are subsequently reflected in the prices of consumer goods, impacting consumer purchasing habits and preferences. The study proposes various recommendations for NBC Abuja, consumers, and policymakers. For NBC Abuja, optimizing logistics, adopting technology, and collaborating with stakeholders are crucial. Consumers are encouraged to make informed choices and support sustainable practices. Policymakers should prioritize infrastructure investment, fuel price regulation, and support for efficient transportation solutions. This study highlights the multifaceted impact of high transportation costs on both businesses and consumers, particularly in a developing country like Nigeria. By identifying challenges and suggesting actionable recommendations, this research contributes to understanding and mitigating the negative effects of transportation costs on the affordability and accessibility of consumer goods.
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