EFFECT OF CREDIT MANAGEMENT POLICY ON CUSTOMER PERFORMANCE IN NIGERIA
AbdulJeleel, Badmus Olayiwola and AbdulGafar, Badmus Olayiwola
Volume 2 Issue 2
Abstract
This study examined the effect of credit management policies on the performance of customers in the poultry feed production companies in Nigeria. The aim was to establish empirically the credit management policy that may lead to better customers’ performance in the industry. The choice of the industry was born out the competitive and substitutedness nature of the feeds they produce and stiff nature and sensitivity of the customers to price changes. Two models were used to test our hypotheses where Customer Performance (CP) was used in the two models as the dependent variable but for differentiation, figure 1 was added to become CP1 in model 2. Pay-Per-Invoice and Cash-On-Delivery as independent variables respectively in models 1 and 2 respectively. Secondary data sourced from the database containing the details of customers’ transactions for a period of five years was used. The study was both exploratory and explanatory as we explored and explained the relationship between the variables of the study. Various statistical analysis such as multicollinearity test, descriptive statistics, normality test were used for purposes of authenticating the soundness and reliability of variables and the outcomes were in line with the rules of acceptance. Linear regression was finally conducted to test the study hypotheses. The results indicated a significant negative relationship at 5% between CP and PPI (model 1) and 1% level between CP1 and COD in model 2. Keywords: Credit Management Policy, Cash-On-Delivery, Pay-Per-Invoice,
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