THE INFLUENCE OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR IN NIGERIAN BOTTLING COMPANY, IKEJA, LAGOS
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CHAPTER ONE
INTRODUCTION
1.1 Background to the study
The evolution of advertisement dates back into the ancient times. Societies used symbols, and pictorial signs to attract their product users. Over centuries, these elements were used for promotion of products. In the early ages, these were handmade and were produced at limited scale for promotions. Later on, this phenomenon used and gained strength more intensively for promotional purposes. Today’s modern environment, advertisements have become one of the major sources of communicational tool between the manufacturer and the user of the products. Advertising is a form of communication intended to convince an audience (viewers, readers or listeners) to purchase or take some action upon products, information, or services etc (Latif, 2011).
In today’s dynamic world, it is almost impossible for advertisers to deliver advertising message and information to buyers without use of advertising. Certainly, this may be because of the globalization and accessibility of hundreds of channels for the viewers of this modern era. Now a day, due to globalized economy, which made available a bulk of marketing stimuli to the modern consumers. More often consumerism describes the way of equating personal happiness, with purchasing material possessions and consumption in excess of one’s need (Saleem, 2010).
The major aim of advertising is to impact on buying behavior; however, this impact about brand is changed or strengthened frequently in people’s memories. Memories about the brand consist of those associations that are related to brand name in consumer mind. These brand cognition influence consideration, evaluation, and finally purchases (Romaniuk and Sharp, 2003). The principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior, especially the economic, social and psychological aspects (Ayanwale, 2005). When young people choose advertising information and characters as their role models, they may not only identify with them but also intend to copy them in terms of how they dress and what they are going to buy (Muehling and Laczniak, 2007).
As the market is surplus with several products or services, so many companies make similar functional claim; so, it has become extremely difficult for companies to differentiate their products or services based on functional attributes alone. Differentiations based on functional attributes, which are shown in advertisement, are never long lasting as the competitors could copy the same (Hussainy, 2008). Therefore, the marketers give the concept of brand image. Like by creating the character of the caring mother, the marketer injects emotion into the consumer’s learning and process of advertisements (Jalees, 2006). Doing so advertiser creates those types of advertisements, which carry emotional bond with consumer.
1.2 Statement of the Problem
The strong objection and arguments against the advertising is that it is a costly function. It is generally criticized that the cost of advertising is too high and that such high cost is covered by the selling price of the advertising goods. Advertisement is considered as an indirect cost which is added in the distribution expenses. When expenses are to be increased, the selling price of the products will also be enhanced. It is true factor because large advertisers spend thousands of Rupees for advertising in a week.
Some advertisers cleverly create misleading impressions of their goods. They present a very rosy picture of their products, before the consumers with the object of increasing their sales.
It is undoubtedly true that effective advertising increase the sales volume. This increased sale will require more products. Thus the large scale production brings down the cost of goods per unit due to economies in various sectors which reduces the consumers’ selling prices. But the producers do not lower the prices and the burden of advertising remains on the shoulders of consumers.
Another objection is that advertising influences the mind of public. It creates the desire and taste for new products which are not actually necessities of life and income of consumers will not let them enjoy. Advertising may thus be regarded as the cause of unrequited desire which may result in unhappiness.
1.3 Aims And Objectives Of The Study
The main purpose of this research is to examine the influence of advertising on consumer buying behaviour in Nigerian bottling company, Lagos
Other objectives include:
- To evaluate the influence of advertising on consumers’ buying behaviour;
- To show the advertising strategy of bringing existing and potential consumers to a state of relative awareness of the product;
- To determine the benefits of advertising on consumers’ buying behavior; and
- To find out how advertising affect the purchasing power of the consumers.
1.4 Research Questions
In assessing the purpose of the study, this research project attempts to answer the following questions:
- Does advertising have influence on consumer buying behaviour?
- Can advertising bringing existing and potential consumers to a state of relative awareness of the product?
- Can the benefits of advertising be measured in an organization?
- Does advertising affect the purchasing power of consumers?
1.5 Research Hypotheses
In carrying out this research work the following theoretical statements are suggested to serve as a direction on which the work will be premised:
- Ho: Advertising does not have any significant influence on consumer buying behaviour.
H1: Advertising does have significant influence on consumer buying behaviour.
- Ho: Advertising strategy does not bring existing and potential consumers to a state of relative awareness of the product.
H1: Advertising strategy does bring existing and potential consumers to a state of relative awareness of the product.
- Ho: Advertising does not have any effect on consumers’ buying behaviour
H1: Advertising does have effect on consumers’ buying behaviour
- Ho: Advertising does not affect the purchasing power of consumers.
H1: Advertising does affect the purchasing power of consumers.
1.6 Scope of the Study
This research work examines the influence of advertising on consumer buying behaviour in Nigerian bottling company, Ikeja, Lagos.
The study as perceived might face some logistic challenges in term of the time and the costs that will be involve in carrying out the research, but nevertheless, it would endeavor to accomplish its aims and objectives.
1.7 Significance of the Study
It is hoped that the findings and recommendations of the study will be of great benefit through the following ways:
The study will broaden students understanding about the importance of advertising in any business environment and it effects on sales volume.
The study will be of great benefit to the public by bringing to their awareness about the existence of a product and its value.
The study will also help sales manager to monitor the trend of the market and the consumption pattern in order to establish an interactive dialogue between an organization and its customers.
It will also help the sales personnel to reposition their branding and marketing strategy in the society in order to attract and retain their target market.
1.8 Definition of Terms
Advertising: Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media.
Consumer: A consumer is a person or group of people that are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household.
Decision: Decision can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice.
Environment: Environment (systems), the surroundings of a physical system that may interact with the system by exchanging mass, energy, or other properties.
Influence: Influence is the action or process of producing effects on the actions, behavior, opinions, etc., of another or others.
Purchase: This refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise.
Promotion: something devised to publicize or advertise a product, cause, institution, etc., as a brochure, free sample, poster, television or radio commercials, or personal appearance.
Organization: An organization is a social group which distributes tasks for a collective goal.
Sales: The exchange of goods or services for an amount of money or its equivalent; the act of selling.
REFERENCES
Hussainy, S. K., Riaz, K., Kazi, A. K., & Herani, G. M. (2008). Advertising Styles’ Impact on Attention in Pakistan. KASBIT Business Journal, 1(1), 28-38.
Jalees, T. (2006). Brand Personification of Mobilink, UPhone, Telenor, and Warid. Journal of Research Market Forces, 2(2), 50-76.
Latif, Abdul and Abideen, Zain Ul. (2011). Effects of Television Advertising on Children: A Pakistani
Sharp, J. (2003). European Journal of Economics, Finance and Administrative Sciences,Issue, 31, pp. 07-16.
Romaniuk, J., & Sharp, B.. (2004). Conceptualizing & Measuring Brand Salience. Marketing Theory Articles, 4(4), 327-342.
Romaniuk, J., & Sharp, B. (2003).Brand Salience &Consumer Defection in Subscription Markets. Journal of Marketing Management, 19:3, 25-44.
Saleem, H. (2010). Few Determinants of Compulsive Buying of Youth in Pakistan. European Journal of Social Sciences, Volume 17, Number 4, pp. 521-535.
Ayanwale, A. B., Alimi, T. & Ayanbimipe, M. A. (2005). The Influence of Advertising on Consumer Brand Preference. Journal of Social Science, 10(1), 9-16.
Muehling, D. D., Laczniak, R. N. (2007). Advertising’s immediate and delayed influence on brand attitude: considerations across message-involvement
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