The Correlation between Business Location and Consumers Patronage: Implications for Business Policy Decisions

Abstract

The study undertook a critical appraisal of the relationship between business locations and consumer patronage, with a view to pinpointing the implications on business policy and decision-makings. The study sought to: Determine the effect of business locations on consumers’ repeat-purchases; and evaluate the effect of proximity of business locations on consumers’ patronage. Survey design was employed. The area of study was University of Calabar, while the study frame were photocopying operators, consumers of their services and the school’s business regulatory body. The sample size of the study was 100 and structured questionnaire was the instrument used for data collection. The instrument was content-validated, while the test-retest method was used to confirm the reliability. Data analysis was done electronically by the use of Statistical Package for Social Science (SPSS) version 21. Among the findings highlighted in the study were; business location affects a business performance very significantly; it also has a significant effect on the repeat purchases of consumers. Also proximity of the business to customers and competitors has significant benefits to business performance in the University. The implications for business policy and decision-making are that intending entrepreneurs must undertake business location feasibility studies before citing their businesses.