Effect of Information Technology on Product Management: A Case Study of Supermarkets in Lagos State, Nigeria

Abstract

Aims: This paper explores the relationship between business operations and Technology (IT) effectiveness. Study Design: A descriptive survey and case study approach were used to collect quantitative and qualitative data from supermarkets in Lagos State. The study examined how these businesses adopt IT tools—such as POS systems, inventory management software, and barcode/RFID technologies—to manage product lifecycles from procurement to sales. Key product and marketing indicators like inventory accuracy, product availability, customer satisfaction, and stock rotation were analyzed. Data was collected through structured questionnaires, interviews with store managers, and on-site observations, then analyzed using descriptive statistics and correlation analysis to understand the role of IT in product and marketing performance. Place and Duration of Study: Conducted in selected supermarkets in Lagos State—Nigeria’s leading retail and commercial hub—this study spanned six months, from October 2023 to March 2024, covering research design, data collection, analysis, and report writing. Methodology: A two-stage sampling approach was used. Lagos State was purposively selected for its high concentration of supermarkets actively engaging in Digital Transformation. In the second stage, 87 supermarkets across five administrative divisions were randomly chosen to represent the sample. The aim was to assess the impact of IT adoption on business operations related to product management and marketing efficiency. Analysis: Structured questionnaires captured data on firm characteristics, awareness, and perceptions of digital technologies in marketing and product management. Descriptive statistics were used to interpret the data, while Tobit regression measured the effects of IT tools on sales performance and marketing outcomes. Results: Adoption of POS technology significantly increased sales by approximately 92.69%, influenced by Nigeria’s shift toward a cashless economy. Use of inventory management software led to a 28.16% sales boost, reflecting improved product tracking and availability. These findings demonstrate that IT and Digital Transformation enhance product management and marketing effectiveness, making operations more competitive and customer-focused. Conclusion: The study highlights how supermarkets benefit from integrating IT into product and marketing operations, improving efficiency, customer satisfaction, and sales. However, barriers such as high implementation costs, staff resistance, and marketing inefficiencies remain. Overcoming these challenges through training, investment, and strategic alignment will further maximize the impact of Digital Transformation in the retail sector. Future research should examine other IT tools and their long-term influence on marketing and product strategies across different industries.