ABSTRACT
This study investigated the Effect of Advertising on the Purchase of Noodles in Abia State. The objectives of the study are to examine how advertising affects consumption of indomie noodles, to examine how media used affect the patronage of indomie noodles and to examine other factors, in relation to advertising, that influence purchase and consumption of indomie noodles. To achieve the objectives of the study, correlational research design was adopted. A total of 92 questionnaires were administered to the respondents of which 90 were completely filled and returned which represent 98% of the administered questionnaire. The researcher adopted booth primary and secondary data in getting the required information. In testing the hypothesis simple regression analysis was used. The findings revealed that there is a significant relationship between advertising and the consumption of Indomie noodles in Abia state. The researcher recommends that firms should increase their adverting budget and make advertising lively for consumers to associate with. This will definitely have an impact on the sales of Indomie noodles. The researcher also recommends that Indomie noodles should choose the most effective media for advertising.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement
v
Table of
Contents vi
List of Tables
ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypothesis 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitations of the study 6
CHAPTER TWO
REVIEW OF
RELATED LITERATURE
2.1 Conceptual Framework 8
2.2 Review of Related Literature 11
2.2.1 Effect of Advertising on Consumption of
Indomie Noodles 11
2.2.2 Effect of Media on Indomie Patronage 12
2.2.3 Factors that Influences Consumer Purchase of
Indomie Situational Factors 14
2.2.4 Indomie Noodles Advertising in Nigeria 19
2.2.5 Steps taken in setting an Advertising Budget 20
2.2.6 Impact of Advertising 23
2.2.7 Concepts of Adverting 26
2.2.8 Sales Performance 27
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Research Design 32
3.2 Area of the study 32
3.3 Sources of Data/Method of Collection 32
3.4 Population of the study 33
3.5 Sampling Techniques and Sample Size 33
3.6 Validation of the Research Instrument 33
3.7 Reliability of the Research Instrument 34
3.8 Method of Data Analysis 34
3.9 Model Specification 34
CHAPTER FOUR
DATA
PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation 36
4.2 Test of Hypothesis 43
4.3 Discussion of findings 48
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 50
5.2 Conclusion 51
5.3 Recommendations 51
References 53
Questionnaire
LIST OF TABLES
Table 4.1: Distribution
of questionnaire and response rate 36
Table 4.2: Distribution
of respondents according to age 37
Table 4.3: Distribution
of respondents according to
education qualification 37
Table 4.4: Distribution
of respondents according to years of
services 38
Table 4.5: Advertising affects consumption of Indomie
noodles 39
Table 4.6: Media used to advertising Indomie noodles affects
its patronage 40
Table 4.7: There is significant relationship between factors
that influence purchase of Indomie noodles and
Advertising 40
Table 4.8: Advertising is one of eh promotional tools through
which a firm communicate its product to increase
patronage 41
Table
4.9: The primary mission of advertiser
is to reach
prospective customers and influence
their
awareness, attitudes and buying
behavior 42
Table 4.10: It is impossible for an advertisers to deliver
advertising message and information to buyers
without use of advertising 43
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
One function of the mass media which is
becoming increasingly important in the modern world is the economic functions
of advertising (Onyeama, 2002). All over the world, people and organizations
utilize advertising to gain advantage in the competition encountered in the
world regional and local markets and businesses are aided by the
sales-producing force of advertising (Eluwa, 2005). The mass media perform this
function for the people by bringing together buyers and sellers through
advertisements. Again, the world is fast becoming a common market place of
ideas. Many multinational companies have come to realize that people have the
same basic needs and desires. Consequently, they have heeded to calls for
global marketing and can promote their goods and services using advertisements.
According to Kotler (2010), good advertisement has a long-term durable effect
in that it built goodwill between the firm and its distributional channel
(wholesalers and retailers) and the final customers. He went further to state
that bad, misleading or ill-judged advertisement damages customer goodwill that
might have taken years to create.
Advertising has since been seen to help
in economic development by ways of creating jobs, sponsoring sports, etc. It
also helps to provide affordable media which encourage competition, improve
products, keep prices low and enable people to make informed buying choices
(Eluwa, 2005).
Not only does skillfully, well planned
and directed advertisement ( at home and abroad) overcomes prejudice, foreign
competition, establishes new habits, builds goodwill, creates employment,
increase productivity, multiply sales and lays a strong foundation for
sustained economic development of any country, it also serves as the most
powerful socializing force in culture. Advertising itself sells more than
products. It sets image, value, goods and concept of who we are and should be.
It shapes our attitude and our attitude shapes our behaviour.
Kotler and Keller (2006) defined
advertising as any paid form of non personal presentation and promotion of
ideas, goods, or services by an identified sponsor, through mass media such as
newspaper, magazines, radio, television or internet. Arens (2005) sees
advertising as consisting of all activities involved in presenting to a group
non-personal, oral, openly sponsored message regarding a product or idea.
Advertising, as marketing communication
tool can be noted for its public presentation, pervasiveness, amplified
expressiveness and impersonality, which are aimed to modify the attitudes and
behaviour of the message.
It is in this regard that manufacturers
of fast-moving-consumer-goods (FMCGs), like indomie noodles, who continuously
work for sales and market share increase, see advertising as an indispensable
tool. In Nigeria, for instance, we see different strong advertising campaign by
manufacturers to promote the image of their brands, through advertising agents.
However, with the recent downward
changes in the economic fortune of the nation and the people, manufacturers of
FMCGs are being faced with declining patronage and scramble for consumers whose
finances are depressed and this in turn has led to stiff competition and
advertisement as each manufacturer wants to out-do the others to gain control
of a larger share of the market (Benson, 2005).
Noodles are, without doubt, among the
products that have been given intensive and wide advertisement coverage in
Nigeria. Indomie noodles, being the leading brand in the noodles market, has
utilized the promotional tool of advertising to arouse attention among
consumers. This is evidenced in the frequent media (television, radio, bill
boards, magazines, etc.) Campaign carried out by Dufil Prima Foods Plc, makers
and marketers of indomie noodles.
This study thus seeks to examine,
primarily, how advertisements affect consumers in their preferences for and
consumption of noodles that are all over the market, using indomie noodles as a
case study.
1.2
Statement of the Problem
Advertising has since been seen to help
in economic development by ways of creating jobs, sponsoring sports, etc. It
also helps to provide affordable media which encourage competition, improve
products, keep prices low and enable people to make informed buying choices. In
spite of these importance, advertising as a major means of selling products,
has a lot of challenges which includes, deceives and manipulations in order to
buy the products by playing on customer emotion and promising greater status. Other
challenges facing advertising is lack of essential facilities and lack of
audience from the customers (Benson, 2005).
It is in vian that this study was
embarked on to proffer ways to correct these anomalies of manipulation and
falsehood in many advertisements.
1.3
Objectives of the study
The general objective of this study is
to e amine the effect of advertising on the purchase of noodles in Abia state,
Nigeria. However, the specific objectives include, to:
(i) Examine how advertising affects
consumption of indomie noodles;
(ii) Examine how media used affect the
patronage of indomie noodles;
(iii) Examine other factors, in relation
to advertising, that influence purchase and consumption of indomie noodles;
1.4
Research Questions
The research questions that were
formulated for this study include:
(i)
How does advertising affect the consumers of
indomie noodles?
(ii)
How does media used to advertising indomie
noodles affect its patronage?
(iii)
What are the factors that influence consumers
in their purchase of indomie noodles in relation to advertising?
1.5
Research Hypotheses
For the
purpose of this research, the following hypothesis will be tested.
HO1: There is no
significant relationship between advertising and consumption of indomie noodles
in Aba, Abia State.
HO2: There is no
significant relationship between media used to advertising indomie noodles and
its purchase in Aba, Abia State.
HO3: There is no
significant relationship between factors that influence purchase of indomie
noodles and advertising in Aba, Abia state.
1.6
Significance of the study
This work is quiet necessary at a time
the media are awash with all forms of advertisement to lure consumers. It will
educate consumer on the best ways to respond to advertisement, since their
financial resources are limited. This then means that any information provided
by this research will go a long way in educating the consumers on how to treat
advertisements. It will also be of benefit to the advertisers, as they will
learn to understand the need to follow the ethics of the profession by avoiding
advertisements that are subversive and deceptive.
Students of advertising will also find
this work useful as it will expose them to various forms of media
advertisements.
Above all, this study will serve as an
addition to existing literature on the topic it is expected that researches
will find some of the recommendation of this work useful in for conducting
further research.
1.7
Scope of the Study
This study focuses on the effect of
advertising on the purchase of noodles in Abia state. The study will examine
indomie noodles, specifically sampling the opinion of consumers in selected
towns within the state.
1.8
Limitations of the Study
Perceived limitations to this study
includes the following;
Financial
Constraints: The problem of finance is not left out in the course of
research to this study. This type of study required adequate money and time to
enable the researcher visit the necessary places for collection of data.
Insufficient fund will hinder an in-depth study of this research but will make
the best use of available fund.
Time
Constraints: Since this study is one of the many courses offered by the
researcher, the researcher will be constrained by time to carry out an in-depth
research on the study but will make the best use of the time available for him.
Respondents’ Behaviour;
The reluctance of bank officials to reveal information on the
need for this study, for fear of breach of duty of secrecy to customer’s
exposure of banks administrative short-comings. However, the researcher will
make the best use of the available information.
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