Cost Leadership Strategy and Customers Satisfaction of Aluminium Products in North-Central, Nigeria

Abstract

The study was conducted to examine the relationship between cost leadership strategy and customer satisfaction.  The study was anchored on the Resource Based View Theory (RBV). To achieve the objectives of the study, a survey research design was employed. The population of the study was the composite of Management and staff of the focused Aluminum Firms as well as Aluminum dealers otherwise known as customers made of up of 509 out of which 260 was the population of the Aluminum Firms and 249 was the population of the Aluminum dealers respectively. Primary data was the sources of data used for the study and was collected through self-administered questionnaire designed in five points Likert scale of strongly agree to strongly disagree. Data collected were analyzed with the aid of descriptive and parametric statistical tools. The descriptive statistic tools used were tables, percentages, mean scores and standard deviation to reduce the data into comprehensible form. The parametric instrument used to test the hypothesis formulated for the study was linear regression. Upon the test of the hypothesis cost leadership and customer satisfaction (r= 0.917, P-value < 0.05). Based on the findings, the study recommends the adoption of cost leadership strategy by Management of the Aluminum Extrusion Firms with a view to making competition irrelevant and improves their performance. Hence, the study concludes, that cost leadership Strategy if properly adopted in the Management of Aluminum Extrusion Firms will improve the performance of this all-important dying subsector of the Nigerian economy.