EFFECT OF PRODUCT DIFFRENCTIATION STRATEGY ON THE PERFORMANCE OF SMALL-SCALE BUSINESS IN MAIDUGURI METROPOLIS

ABSTRACT The study examined the effect of product differentiation strategy on the performance of small-scale business in Maiduguri Metropolis. The study specifically examined the effect of brand image, product innovation, and product quality on the performance of small-scale business in Maiduguri Metropolis. Data for the study was sourced from the owners of small-scale business within Maiduguri Metropolis were five scale Likert questionnaires were used. A sample of four hundred was obtained from the total population of 2016 using the Taro Yamani formula. Purposive sampling was used to select the owners of the small-scale owners from the fifteen words within Maiduguri Metropolitan Council. The findings revealed that brand image is one of the most influential factors for the succession rate of the small scale business, brand image provides maximum market share to small scale business, it provides small scale business with useful information for instilling what a business has and offers in the mind of the seller, and brand image allows small scale business to determine consumer perceptions of brand characteristics. The findings further showed the findings revealed that product innovation increases sales of small-scale business, product innovation increase profits of small-scale business, product innovation provide small scale business power to retain and grow competitive position, and product innovation improves the quality of products of small-scale business. Findings further revealed that product quality influence customer satisfaction, product quality improves sales of product of a small-scale business, product quality enhance customer reputation on product of a small-scale business and customers become brand loyal when they receive quality product. The study recommends that Government should provide short term or long-term loan facilities to small scale business in Maiduguri Metropolitan Council in order to enhance their performance.