ABSTRACT
The principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. This study was carried out to examine the effect of advertisement on the buying behavior of toothpaste consumers in Abia State. A stratified random sampling technique was used to select 300 toothpaste consumers for this study and data was elicited with the use of questionnaires. Descriptive statistics (such as tables, means, frequencies and percentages) as well as inferential statistics (Logit and OLS models) were employed for the data analyses. Chi-square and Correlation were used in the hypothesis testing. The result shows that majority (52%) of the respondents are females while 48% are males. Majority (35%) of customers were adult between ages of 46 and 55 years; although there were a few minors who participated in the survey. The result further showed that majority (77%) of the respondents use toothpaste while 23% do not, therefore implying that the minority of the respondents use other oral care materials other than toothpaste such as traditional powder, chewing stick and others. Brand name was the most important reason why consumers will prefer a particular brand. The regression result shows that media jingles, information on toothpaste pack, promotion and use of free samples were all positively correlated to toothpaste patronage. Similarly, level of education and annual income were positively related to patronage rate while sex, age and household size were negative. In addition, the use of billboards, radio, television, print media, promotions and celebrities positively influenced buying behaviour. Price rise of current brand and unavailability of preferred brands encouraged brand switch while impact of packaging, scheme of brands and advertisement impact were negatively related to brand switch. The test of hypotheses further agreed with the empirical findings that consumers’ patronage of toothpaste and brand switch were influenced by advertisement attributes. Similarly, sales promotion and advertisement significantly influenced consumers’ buying behaviour respectively. It was recommended that marketers assess the market segment that will appreciate specific promotion techniques in order to get maximum response, which will in turn result in increased sales. Nigerian toothpaste companies must learn from their western counterparts in identifying new competencies and perspective that will enable them respond to these changes, comprehensively and effectively.
TABLE OF CONTENTS
Title Page i
Certification ii
Declaration iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables ix
Abstract x
CHAPTER 1
INTRODUCTION
Background of the Study 1
Problem Statement 4
Objectives of the Study 5
Research Question 6
1.4 Hypotheses of Study 7
1.5 Significance of the Study 7
1.6 Scope of the Study 8
CHAPTER 2
LITERATURE REVIEW
2.1 Conceptual Framework 9
2.1.1 Concept of advertising and consumer behaviour 9
2.1.2 Objectives of advertising 11
2.1.3 Criteria for setting advertising objectives 13
2.1.4 Creation and development of advertisement message 16
2.1.4.1 Perception 16
2.1.4.2 Business publication 17
2.2 Factors that Determine the Choice of Media 18
2.2.1 Types of advertising 20
2.2.2 Functions of advertising 23
2.2.3 Measuring advertising effectiveness 26
2.2.5 Influencing consumers’ emotional response through advertising 27
2.3 Theoretical Framework 30
2.3.1 The marketing communication process 30
2.3.2 Theories and models 31
2.3.2.1 AIDA 32
2.3.2.2 DAGMAR 34
2.3.3 The theory of attractive quality 35
2.4 Empirical Framework 38
CHAPTER 3
RESEARCH METHODS
3.1 Research Design 42
3.2 Study Area 42
3.3 Population of the Study 43
3.4 Sampling Techniques 43
3.4.1 Sample Size 43
3.5 Method of Data Collection 44
3.6 Design of Research Instrument 44
3.7 Reliability and Validity of Instrument 45
3.8 Method of Data Analysis 45
3.8.1 Model Specification 45
3.9 Hypothesis Testing 47
CHAPTER 4
RESULTS AND DISCUSSION
4.1 Demographic Features of Respondents 48
4.1.1 Sex Distribution of Respondents 48
4.1.2 Age Distribution of Respondents 49
4.1.3 Level of Education of the Respondents 50
4.1.4 Income Distribution of Respondents 51
4.1.5 Household size Distribution 52
4.2 Consumers’ Usage of Toothpaste 52
4.2.1 Usage Rate 53
4.2.2 Daily Consumer Brushing Pattern 54
4.2.3 Frequency of Purchase 55
4.2.4 Awareness of Toothpaste Brands 56
4.2.5 Usage of Toothpaste Brands 57
4.2.6 Dentist Recommendation for Buying Toothpaste 58
4.2.7 Factors which make Consumers Purchase a Toothpaste Brand 59
4.2.8 Decision to Purchase 60
4.3 Advertisement for Increased Toothpaste Patronage 60
4.3.1 Most Attractive Mode of Promotion 61
4.3.2 Most Attractive Promotional Tools 62
4.3.3 Advertisement Attributes 63
4.4 Preference for Toothpaste Brand 63
4.4.1 Reasons for Preference of a Brand 64
4.4.2 Preference of an Attribute 65
4.4.3 Brand Switching 66
4.5 Effect of Promotion Techniques on Consumers’ Patronage 67
4.6 Effect of Advertisement on Consumers’ Demographics with
respect to Patronage Rate 69
4.7 Effect of Advertisement Attributes on Consumers’ Buying Behaviour 72
4.8 Analysis of the Advertisement Factors Affecting Brand Switching 74
4.9 Hypothesis Testing 76
4.9.1 Effect of Media Jingles and Advertisement on Toothpaste Purchase Decision 76
4.9.2 Veracity of Information on Toothpaste Pack and its Influence on
Respondents’ Purchase Decision 78
4.9.3 Effect of Promos involving People with White Teeth Creating Attraction
for them to buy the Toothpaste Brand 79
4.9.4 Effect of Free Samples and Gifts Attached to Toothpaste on Patronage
of the Toothpaste Brand 80
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Major Findings 88
5.2 Conclusion 91
5.3 Recommendations 91
References 93
Appendices 103
LIST OF TABLES
4.1: Sex Distribution of Respondents 48
4.2: Age Distribution of the Respondents 49
4.3: Distribution of Respondents by Level of Education 50
4.4: Income Distribution of Respondents 51
4.5: Household Size Distribution of Respondents 52
4.6: Toothpaste Usage Rate 53
4.7: Consumer Brushing Pattern 54
4.8: Frequency of Purchase 55
4.9: Awareness of Brands 56
4.10: Consumers’ Usage of Toothpaste Brands 57
4.11: Dentist Recommendation for Buying Toothpaste 58
4.12: Factors which affect Purchase of a Toothpaste Brand 59
4.13: Persons who Influence Consumers’ Purchase Decision 60
4.14: Most Attractive Mode of Promotion 61
4.15: Most Attractive Promotional Tools 62
4.16: Advertisement Attributes 63
4.17: Reasons for Brand Preference 64
4.18: Preference of an Attribute 65
4.19: Reasons for brand switch 66
4.20: OLS Estimates of the Effect of Promotion
Techniques on Consumers’ Patronage of Toothpaste 67
4.21: Advertisement Influence on Consumers’ Demographics with
Regards to Patronage 69
4.22: OLS Estimates of the Effect of Advertisement Attributes on
Consumers’ Buying Behaviour 72
4.23: Factors Affecting Consumers’ Product Brand Switching 75
4.24: Chi-Square Analysis on the Effect of Media Jingles and
Advertisement on Toothpaste Purchase Decision 77
4.25: Chi-Square Analysis of the Veracity of Information on Toothpaste
Pack and its Influence on Respondents’ Purchase Decision 78
4.26: Chi-Square Analysis on the Effect of Promos involving
People with White Teeth Creating Attraction for them to
Buy the Toothpaste Brand 79
4.27: Chi-Square Analysis of the Effect of Free Samples and
Gifts attached to Toothpaste on Patronage of the Toothpaste brand 80
4.28: Mean Scores of Advertisement Techniques 81
4.29: Effect of Promotion on Consumers’ Demographics with
Regards to Buying Behavior 83
4.30: Effect of Advertisement Attributes on Toothpaste Consumers’
Buying Behavior 85
4.31: Impact of Advertisement on Brand Switch 87
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Oral care has been a long time way of life considered to be as old as man. From ages, this has been core part of a man’s daily life activities. Oral care materials such as ash and charcoal mixture, chewing sticks etc. were used in past decades but with modernization, these materials have grown obsolete and almost extinct. There is a paradigm shift to the use of toothpastes whose market has considerably grown with a lot of exerting influence. In the Nigeria oral care market, such brands as Colgate, Close-up, Darbur, Pepsodent, Macleans, Sensodyne, Anchors, Mymy, and Meswak all exist (Oladele et al., 2015) with increase in their demand; these all come in different variants, sizes, colours, flavours, and tube shapes. The multiplicity of brands have left consumers with a variety of choices and increased desire for utility maximization. These have created stiffened competition and as such toothpaste producing firms and companies are faced with a herculean task of customers’ retention and enforcing brand loyalty. To overcome these, they are constantly devising means of getting to the market and ensure survival through a mix of promotional services such as advertising.
Every company that wants to make its brand known must invest in its promotional programs (Hussainy et al., 2008) as the primary mission of advertiser remains getting to its potential customers and elicit their awareness and the way and means they buy. They do this to keep their customer’s preferences to their products. In doing this, one of the better way of having it go successful would be their ability to access why the would be customers act the way they do. Advertising also assist to brand choice among consumers (Latif et al., 2011).
The main aim of advertising is to influence on buying behavior; however, this influence about brand is changed or strengthened frequently in people’s memories. Memories about the product 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 et al., 2005).
Advertising is a subset of promotion mix which is one of the 4P’s in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, advertising serve as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are mass-communication tools available to marketers. Advertising through all mediums influence audiences, but television is one of the strongest medium of advertising and due to its mass reach; it can influence not only the individual’s attitude, behavior, life style, exposure and in the long run, even the culture of the country (Latif and Abideen, 2011).
The evolution of advertisement dates back to 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 communication tool between the manufacturer and the user of the products.
Traditional hierarchy-of-effects models of advertising stated that advertising exposure leads to cognitions, such as memory about the advertisement, the brand; which in turn leads to attitudes, i.e. Product liking and attitude toward purchase; which in the end leads to behaviors, like buying the advertised product (Mendelson and Bolls, 2002). 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 et al., 2008).
Therefore, a consumer is more likely to associate with advertisements of those brands, which have emotional values and messages. Because positive emotional appeals also provide a strong brand cue and stimulate category-based processing, (Abideen and Latif, 2011), if the categorization process is successful, then the affect and beliefs associated with this category in memory are transferred to the object itself.
Consumers are not only at first confused and disordered in mind, but they also try to categorize the brand association with their existing memory, when thousands of products are faced by them, and they might reposition memories to outline a brand image and perception/concept toward new products. They can categorize latest information into particular brand or product group label and store them accordingly. This procedure is not only associated to consumer’s familiarity and information, but also attachment and preference of brand. It is also suggested that consumer can disregard or prevail over the dissonance from brand extension (Abideen and Latif, 2011).
1.2 STATEMENT OF THE PROBLEM
Advertising is the effective source to influence the mind of viewers and give viewers exposure towards a particular product or service (Katke, 2007). Advertising play an important role in business presentation and is a useful strategy to attract customers. It is a part of promotional mix to create awareness among target population. In recent times, advertising have become one of the crucial commercial activities in competitive business environment and yet, its potentials have not been fully harnessed.
Every region has its own culture and varying pictures and symbols for product promotion which are used by the marketers. Actually, these symbols, most of the times, reflect traditional culture and lifestyle. In the present digital world, everything like culture, habits of the people, technology etc, are on their way of globalization. This fast pace of globalization is minimizing the distance among customers. Now with the help of advanced technology, it has become possible for advertisers to reach all segments of a target market. Along with advanced technology, in rural areas the marketers further need to address other factors as well to effectively influence customers’ mind. For example, customers in rural areas may need to be educated for better understanding of advertisers’ message. Similarly, customers residing in rural areas may not have high purchasing power and lifestyle may be different from urban areas. For example, the extent of using toothpaste may vary across locations, income and preferences of brands. To examine these changes is vital to this study.
A lot of firms in the industry have embarked on one strategy or the other in order to gain more market share for their products. In an attempt to get more customers to purchase their products, companies have engaged in different innovations so as to make their product compete with that of competitors, advertisement is one way to gain consumer notice (Berkowtiz, 1987).
Furthermore, the abundance of scientific literature on this issue do not provide unanimous answer concerning impact of advertising elements on consumer’s buying behavior: diversity of the results in this area depends not only on research models constructed and methods employed, but on the context of the research too. In order to make their advertising campaign even more effective and rewarding, advertisers are trying to analyze various factors which may influence customers’ buying behavior e.g. residential area lifestyle, education etc.
More so, it seems some companies do not conduct market research to know the right and appropriate advertising technique to apply in each market segment. The above mentioned issues confirm the necessity to investigate in details the effect of advertisement on the consumption behaviour of toothpaste users in Abia state, Nigeria.
1.3 OBJECTIVES OF THE STUDY
The broad objective of the study is to examine the effect of advertisement on consumer behaviour towards toothpaste in Abia state, Nigeria. The specific objectives are to:
i. ascertain the consumers’ usage pattern of toothpaste with respect to usage rate, brushing pattern, awareness of brand, brand usage, usage recommendation and buying attributes;
ii. ascertain the frequency of purchase of toothpaste with respect to frequency of monthly purchase and who influences decision to purchase;
iii. identify the extent to which toothpaste brand awareness, mode of product promotion, product characteristics and advertisement attributes affect consumers’ patronage;
iv. describe preference and product switch characteristics of the toothpaste brands;
v. examine the influence of promotional techniques on consumers’ patronage of toothpaste brands;
vi. analyze the effect of consumers’ demographics on advertisement with regards to purchase behaviour;
vii. examine the effect of advertisement attributes on toothpaste consumers’ buying behaviour and;
viii. analyze the impact of advertisement on brand switch (decision to switch brand for another).
1.4 RESEARCH QUESTIONS
In the light of these problematic aspects, the following research question would guide the study.
i. What is the consumers’ usage pattern of toothpaste with respect to usage rate, brushing pattern, awareness of brand, brand usage, usage recommendation and buying attributes?
ii. What is the frequency of purchase of toothpaste with respect to frequency of monthly purchase and who influences decision to purchase?
iii. To what extent does toothpaste brand awareness, mode of product promotion, product characteristics and advertisement attributes affect consumers’ patronage?
iv. What are the product characteristics that affect preference and or brand switch?
v. Does promotional techniques influence consumers’ patronage of toothpaste brands?
vi. What is/are the effect (s) of promotional techniques on the consumers’ demographics with regards to purchase behaviour?
vii. Is there any effect of advertisement attributes on toothpaste consumers’ buying behaviour and;
viii. What impact does advertisement have on brand switch (decision to switch brand for another).
1.5 HYPOTHESES OF STUDY
The following null hypotheses were formulated to guide the study:
HO1: The use of advertising techniques does not significantly influence toothpaste patronage;
HO2: Promotion is not significantly influenced by consumers’ demographics;
HO3: Advertisement attributes do not significantly affect buying behaviour
HO4: Advertisement does not have any significant impact on brand switch
1.6 SIGNIFICANCE OF THE STUDY
The study expects to yield a number of desirable benefits, the most essential of which is contribution to existing knowledge. Specifically, the findings of the study would provide direction as to the effect of advertising on purchase behaviour of toothpaste consumers. Thus, the study is expected to contribute to the not-so-well-developed body of knowledge regarding the advertising and purchase performance of toothpaste users in Nigeria, especially Abia state. Similarly, the study also hopes to expand the frontiers of knowledge in the area of conducting its analysis through the use of techniques that have been hitherto overlooked by previous researchers on the effect of advertising on the sales of toothpaste in Abia state.
The importance of the findings of the study to the managers of toothpaste manufacturing firms in Nigeria could not be quantified in that it would provide evidence with respect to the justification of managers‟ increased resource commitment to advertising in Nigeria over the years. The findings would equip managers with better insights on how to juxtapose the benefits of increase in advertising expenditure vis-à-vis sales revenue and net profit.
Furthermore, the study was also expected to be of immense utility to shareholders whose primary goal is to maximize their wealth. The findings of the study would help shareholders in their bid to monitor managers and ensure that only costs that could ensure the maximization of shareholders‟ wealth were incurred by managers on behalf of shareholders.
The outcome of the study might also be of benefit to government and its agencies in the process of making decisions. For instance, the findings of the study could guide the Advertising Council of Nigeria to understand the burden that advertising might constitute to the long-run growth and survival of firms in Nigeria, its benefit notwithstanding.
The present research is invaluable for reference of future studies particularly those related to customer satisfaction, customer loyalty and customer retention as a result of advertising.
The availability of many competing brands of toothpaste in the market in Abia State has made thecompetition to be very stiff and this has also motivated the various toothpaste producers to embark on aggressive advertising techniques to induce the trader (wholesalers and retailers) or other channel members and consumers to patronize their brand of toothpaste. The research will provide further insight on how effective advertising techniques can stimulate the patronage of individual toothpaste brands in Abia State.
1.7 SCOPE OF THE STUDY
This study is concerned with the effect of advertising on the purchase behaviour of toothpaste consumers in Abia State, Nigeria. In the state, oral care materials like the use of ash and charcoal mixture, chewing sticks etc. have been in use but with modernization, these materials are less used with toothpaste becoming a more accepted oral care material. The study was restricted to this area because of the growing and competitive market of toothpaste brands. In addition, household heads were used as the unit of analysis.
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