THE IMPACT OF NEW PRODUCTS ON THE PROFIT PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA

THE IMPACT OF NEW PRODUCTS ON THE PROFIT PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA
 
ABSTRACT
Profitability strategies can only be formulated and implemented when the marketing manager is well informed about the current marketing situation and to a certain degree, anticipate future changes in the potential and new product market. Many commercial or money deposit banks in Nigeria are faced with problems relating to their marketing activities due to lack of adequate knowledge of the prevailing market situation or product performance evaluation. This research study has the objective of assessing the impact of new products on the profit performance of commercial banks. The study is a survey research and Primary and secondary data were applied and formulated hypotheses tested using kendal co-efficient of concordance. The findings of the study revealed that there is a relationship between new product development and profitability in Nigerian deposit money banks, and poor knowledge of the benefits derived from new product innovation is responsible for low rate of profit maximization in banks. Also that new products innovation and developments come as a result of bank’s marketing research efforts. The study recommends however that banks should intensify their research efforts to provide timely information on product development and monitor the degree of customer’s satisfaction through market situation analysis.
 
CHAPTER ONE
INTRODUCTION
Background of the Study
The success of any commercial organization is highly dependent upon the degree to which it is able to satisfy the consumers of its products. The way to ensure this satisfaction is to see that the consumer preferences and needs are determined at the very beginning of the production process. Thus, the end products must satisfy the consumer needs and wants. The financial products of banks consist of those services they rendered which could be exchanged for a price. To understand the concept of banking, we must understand the meaning of bank or banker, because banking is the set of activities which a bank or banker performs. Banking, according to Alabi (2005), is the business of providing services to consumers and businesses. The basic services a bank provides are checking accounts, which can be used like money to make payments and purchase goods and services; savings accounts and time deposits that can be used to save money for future use, loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as