INFLUENCE OF ADVERTISEMENT IN CONSUMER’S BUYING BEHAVIOUR. (A CASE STUDY OF COCA-COLA ENTERPRISE LTD, LAGOS NIGERIA)

ABSTRACT

Most firms pay much for advertisement, with the aims of increase in sale and profit. The question then is does increase in advertisement result to increase in sale? This study has attempted to carry out a comprehensive analysis of the influence of advertising on consumer buying behavior using Coca-Cola (coke) advertisement as a case study. This study was primarily designed to evaluate the relationship between advertising which is a pay non-personal form of communication by an identified sponsor and passing through the mass media and consumer buying coca-cola (coke) because advertisement has a corresponding influenced consumer with regard to other promotional tools and marketing mix element. The primary data were collected through a structured questionnaire administered to the sample and personal interviews with the management. Three research questions and three hypotheses were used and trended in this study for their analysis, sample percentage were used in analyzing data for the research question.             The chi-square technique was employed to test the hypotheses after the analysis and interpretation of data. Increase in advertising help the increased in purchase of coca-cola (coke). The research study was concluded with some valuable recommendation to the management of Nigeria bottling company and few suggested areas of further research.

TABLE OF CONTENTS

Title page                                                                                                                  i

Certification                                                                                                             ii

Dedication                                                                                                                iii

Acknowledgement                                                                                                iv

Table of contents                                                                                                   v

Abstract

CHAPTER ONE: INTRODUCTION

1.1            .           Background to the Study                                                                         1

1.2                        Statement of the Problem                                                                       2

1.3                        Objective of the study                                                                              2

1.4                        Research Questions                                                                                   3

1.5            .           Statement of the Hypotheses                                                                 3

1.6                        Scope of the study                                                                                  3

1.7                        Significance of the Study                                                                         4

1.8                        Limitations of the Study                                                                           4

1.9                        Operational Definition of Terms                                                            5

CHAPTER TWO:  LITERATURE REVIEW                

2.1.         Nature of Concept of Advertising                                                          6

2.2            .           Classification of Advertising                                                                   10

2.3            .           The principles of Good Brand Advertising                                          11

2.4            .           The Role of Advertising                                                                         12

2.5.         Criticism of Advertising                                                                            14

2.6.         Basic Determination of Consumer Behaviour                                    15

2.7.         Relationship of Consumer Behaviour                                                   17

2.8      Environmental influence on Consumer Behaviour                           18

CHAPTER THREE: RESEARCH METHOD

3.1.     Research Design                                                                                         20

3.2      Population of the Study                                                                         20

3.3.     Sample/Sampling Technique                                                                  21

3.4      Instrumentation                                                                                         21

3.5      Method of Data Collection                                                                      21

3.6      Method of Data Analysis                                                                          22

CHARPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1.         Data Presentation                                                                                       24

4.2            .           Data Analysis                                                                                               25

4.3            .           Test of Hypotheses                                                                                    29

4.4                        Discussion of Findings                                                                               33

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION                               

5.1.         Summary                                                                                                      41

5.2.         Conclusion                                                                                                   41

5.3            .           Recommendations                                                                                     42

References

            Appendices

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study

This project is designed to illustrate the application and the usefulness of advertisement in consumer buying behavior. Production is said to be incomplete until the product get to the final consumer. So the consumption of a product is as important as its production. However, one cannot consume a product until he/she get the knowledge at the product that means awareness. The face remains that after producing the best project, packaging it, pricing it right, distributing and positioning it to base meet the needs of the consumer, one would have done these things. And this is the essence of communication.

The main objective of business (Run You 2001) said it’s to create consumers and the ultimate aim of marketing effort is consumer satisfaction. This can be achieved through adequate communication; communication can be seen as an exchange of information and transmission of meaning. It is the process by which people through verbal and non-verbal symbol attempt to create an understanding or commonness between them. Communication according to Kaufman (2001) is not only a function of advertising which is just one of the promotional mixture element advertising personnel selling, sales promotion and publicity nor is it the function of promotion only which is yet any of the marketing mixture element products, price, place, promotion and rather of the entire marketing mixture element as such communication in one way or the other to target market.

Although, promotion cannot at this point be said to be the most important, however, it plays a significant role in carrying the increase of  production.        

This is done by a careful selection of the promotional alternatives among these alternatives advertising seems most favoured to communicate product information that will lead to decisions favourable to the producer. Hence, it is expected to accomplish the following task.

1.2     Statement of the Problem

There is always a problem at who the ultimate responsibility of formulating and implementing sales and advertising activities lies.

1.3     Objectives of the Study

Great importance has recently been attached to advertising by marketers, in view of this, this study is designed to:

1.     To evaluate the influence of advertising on consumer buying behavior

2.     To examines the effect of advertising on the consumer choice of coke over other mineral beverages drinks.

3.     To find out factors that encourages brand loyalty amongst coca-cola consumers.

1.4     Research Question

1.               What is the impact of advertisement on consumer buying behaviours?

2.               What is the influence of advertisement on consumer buying behaviours?

3.               What is the effect of advertisement on consumer preference and behavior?

1.5     Statement of the Hypotheses

There is no relationship between advertising and the consumption of coca-cola.

          Advertising does not have influence on consumer buying habits.

1.6     Scope of the Study

This study particularly focuses on the youths. A special segment of the soft drink advertising also, they are corporately educated to the extent of understanding and appreciating the advertising messages.

Geographically, Edo State is choose for this study because of their large market and higher several institution of learning which form the population of the study.

1.7     Significance of the Study

The study will assist companies especially the Nigeria Bottling Company to know how best to make their budget allocation to the different element of the marketing mix and particularly advertising messages.

Finally, the study will serve as a source of secondary data to researcher in the field of advertising and consumer behavior.

1.8     Limitations of the Study

The research in carrying out this study faced various constraints. Company being that some of the data bought from the Nigeria Bottling Company the producer of coca-cola did not release the most outstanding among them. Another limitation was the attitudes of the respondent, were suspicious of the researcher intention, some of the respondent did not return their questionnaire distributed to them by the researcher.

During the course of this study, relevant literatures which could have been of great help were not available in the Polytechnic Library.

1.9     Operational Definition of Terms

Marketing Mix: The set of controllable tactical marketing tools product, price, place and promotion that the firm blends to produce other response it want in the larger market.

Promotions Mix: The specific mix of advertising personal selling, sales promotion and public relations that a company uses to pursue its advertising and marketing objectives.

Publicity: Activities to promote a company, its product by planning news about it in media not paid by the sponsor.

Sales Promotion:  Short term incentives to encourage purchase or sales of product or services.

Personal Selling: Oral presentation in a conservation with one or more prospect purchase for the purchase of making sales.

Consumer Buying Behaviour: The buying behavior of final consumer’s individuals and household who buy goods and services for personal consumption.

Route System: The system of moving product in a planned way without necessary diversion that could disrupt the distribution.

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