THE IMPACT OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR (A STUDY OF OMO DETERGENT)

ABSTRACT

Advertising is a very powerful mental tool for creating consumers’ awareness about a product and in the process influence their buying behaviour. This study was carried out to empirically ascertain the extent to which advertising has been used as a tool to create customers’ awareness about OMO detergent and how effective it has been used to influence their buying behaviour. Two econometrics models specified for the study were estimated with SPSS statistical technique. The empirical results indicated that there was a positive and significant effect of advertising on consumers’ buying behaviour and there was also a positive and significant impact on unilever profitably. Suggestions made were that unilever Nigeria plc should sustain the current level of advertising on OMO, the company should start advertising OMO through social media in the internet ,there is a need to complement advertisement with direct selling, and there is a need for the company to carry out more research  on advertising in order to develop new  models of creating product awareness and influence consumers buying behaviour.

TABLE OF CONTENTS

Title page                                                                                                                    i

Declaration                                                                                                                 ii

Certification                                                                                                               iii

Dedication                                                                                                                  iv

Acknowledgement                                                                                                      v

Table of contents                                                                                                        vi

List of tables                                                                                                               ix

Abstract                                                                                                                                    xi                                                                                                                       

Chapter One:               Introduction

1.1       Background of the Study-                   -                       -                       -                       1

1.2       Statement of the Study-                      -                       -                       -                       2

1.3       Objective of the Study-                       -                       -                       -                       3

1.4       Research Questions-               -                       -                       -                        -           3

1.5       Research Hypotheses-            -                       -                       -                        -           3

1.6       Significance of the Study-                  -                       -                       -                       3

1.7       Scope of the Study-                -                       -                       -                        -           4

1.8       Definition of Term-                -                       -                       -                        -           4

Chapter Two: Review of Related Literature

2.1       Advertising-                -                       -                       -                       -                       6

2.2       Emotional Response Advertisement-             -                       -                        -           8

2.3       Environmental Response-                   -                       -                       -                       10

2.4       Advertising and Consumer Behaviour-                      -                       -                       11

2.5       Consumer buying Behaviour-            -                       -                       -                       12

2.5.1    Buying Motives-                     -                       -                       -                       13

2.5.2    Product Motives-                    -                       -                       -                       14

2.5.3    Patronage Buying Motives-                -                       -                        -           14

2.6       Major Factors Influencing Buying Behaviour-                      -                        -           15

2.7       The Impact of Advertising-                -                       -                       -                       17

2.8       Critics/Advocated Views on Advertising-                 -                       -                       18

2.8.1    Unethical-                   -                       -                       -                        -           18

2.8.2 Exaggerated-                 -                       -                       -                        -           18

2.8.3 Materialistic-                 -                       -                       -                        -           19

2.9       Types of Advertising

2.9.1 Product Advertising-                 -                       -                       -                       19

2.9.2 Corporate Advertising-              -                       -                       -                       19

2.9.3 Financial Advertising-               -                       -                       -                       20

Chapter Three:         Research Methodology

3.1       Research Study-                      -                       -                       -                        -           21

3.2       Area of the Study-                                          -                       -                                                                                    -           21

3.3       Population of Study-               -                       -                       -                        -           21

3.4       Sample Size and Sample Technique-             -                       -                        -           21

3.5        Instrument of Data Collection-                                            -        -                                                                                                    22

3.6       Source of Data-                       -                       -                       -                        -           23

3.6.1 Primary Data-                -                       -                       -                        -           23

3.7       Sample Technique and Procedure-                 -                       -                        -           23

3.8       Data Analysis Technique-                  -                       -                       -                       23

3.9       Model Specification-              -                       -                       -                        -           24

Chapter Four: Results and Discussion

4.0       Introduction-               -                       -                       -                       -                       25

4.1       Rate of Return of Questionnaires-                  -                       -                        -           25

4.2       SECTION A: Demographic Profile of the Respondent-                   -                       25

4.2.1    Gender-                       -                       -                       -                        -           26

4.2.2    Age-                -                       -                       -                       -                       26

4.2.3    Marital Status-            -                       -                       -                        -           27

4.2.4    Educational Attainment-                    -                       -                        -           27

4.2       SECTION B: Responses to Questionnaire-              -                       -                       28

4.2.1 The Effect of Advertising on Profitability-                   -                        -           29

4.2.2 The Effect of Consumer Buying Behaviours -              -                        -           29

            4.2.3  The Relationship Between Advertising and

                      Consumer Buying Behaviour-              -                       -                                                                        -           29   

           4.2.4 The Growth of the Company and Advertising-              -                                                                        -           30

4.3      Response to the Items in the Questionnaires-             -                                                                            -                  31

Chapter Five:  Summary, Conclusion And Recommendation

5.1       Introduction-               -                       -                       -                       -                       34

5.2       Summary of Major Findings-             -                       -                       -                       34

5.3       Conclusion-                -                       -                       -                       -                       35

5.4       Recommendations-                 -                       -                       -                        -           35

References

LIST OF TABLES

Table 4.1: Gender profile of Respondents

Table 4.2: Age profile of the respondents

Table 4.3: Marital Status Profile of the Respondents

Table 4.4: Educational attainment profile of the respondents

Table 4.6: The effect of advertising on profitability                                                                                                  

Table 4.7: The   effect of consumer buying behaviours   

Table 4.8 The relationship between advertising and consumer buying behaviour.

Table 4.9 The growth of the company and advertising.

Table 4.3.1: Effect of advertising on the profitability of firms

Table 4.3.2: Relationship between advertising and consumer buying behavior

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In today’s era, advertisement is of great importance. It is the essence of any product or brand. Advertisement can lead to the epitome of success or to the diminishing layers of its existence. Advertising, when done in a proper way is sure fire way to attract a large volume of the target audience in one shot, only those products or brands becomes popular through effort of  those  who put a  brave show of their  product. Advertisement  can be done through different media.

    Almost every one grows up in the world which is flooded with the mass media, for example; television, advertising films, videos, billboards, magazines, movies, music, newspaper and internet (Latif and Abideen 2011). Of all the marketing weapons, advertising is renowned for its long lasting impact on viewer’s minds as its exposure is much broader (Katke 2007). Advertising is a subset of promotion mix which is one of the 4ps in the marketing mix, that is, product, price, place and promotion.

    As a promotional strategy, advertising serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision.

Advertising through all mediums influence audience but television is one of the strongest medium of advertising and due to its mass reach, it can influence not only individuals attitude, behaviour, lifestyle, exposure and in the long run, even the culture of the country (Latif and Abideen 2011).

 A company cannot make products to be well known brands until they invest in their promotional activities for which consumer market has been dominated through advertisement (Hussainy et al 2008). As a primary mission of advertisers is to reach prospective customers and influence their awareness, attitude and buying behaviour, they spend a lot of money to keep individuals interest in their products. They need to understand what makes potential customers behave the way they would like. It also appears that advertising may have the potential to contribute to brand choice among customers (Latif et al 2011).

The major aim of advertising is to impact on buying behaviour. 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 customer mind. These brand cognition influence consideration, evaluation and finally purchase (Romaniuk and sharp 2003). The principal aim of customer behaviour analysis is to explain why customers act in a particular way under certain circumstances. It tries to determine the factors that influence consumer behaviour especially the economic social and psychological aspect (Ayanwale et al 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 (Latif et al 2011).

1.2 Statement of the study

Looking at the growing trend of the detergent market fact portray that competition will continually grow. Therefore, lever Brother Nigeria plc, the producers of omo detergent need to do more in order to have an edge over its competitors.  This could be achieved through proper product research, product branding, product packaging, quality assurance, and dynamic promotional method.

1.3. Objectives of the Study

The broad objective of the study is to examine the impact of advertisements on consumer buying behaviour with reference to omo detergent plc. Enugu

The specific objectives are to;

i. ascertain the impact of various element of an advertisement on consumers buying behaviour

ii. empirically investigate the impact of advertisement on consumers buying behaviour.

iii. establish how consumers response to advertised product as against non advertised product

Iv. identify other factors that influence the buying behaviour of consumers other than advertisement.

v. examine other forms of advertisement that influence the buying behaviour of consumers.                                                                             

1.4 Research Questions

1. What are the impacts of various element of an advertisement on consumers buying behaviour?

2. How does advertisement impact on consumers buying behaviour?

3. To what extent does consumers response to advertised product as against non-advertised product?

4. What are other factors that influence the buying behaviour of consumers other than advertisement?

5. What are the forms of advertisement that influence the buying behaviour of consumers?

1.5 Research Hypotheses:

The following hypotheses was stated in null form; thus,

H0₁: Internet, Television, radio, internet, bill board, newspaper.

Papers have no significant impact on consumers buying behaviour

H0₂: Advertisement has no significant impact on consumers buying behaviour.

1.6 Significance of the Study

This research will help the matter of omo detergent identify the most influential variable that makes consumers accept this product.

This study aims at fashioning a suitable marketing strategy for easy penetration into the market and better definition of the target market of typical consumers.

The study will also help management to position the product towards the need and wants of the target consumers.  Finally it will also help to properly allocate the advertising budget on the outcome of the past advertising campaign.

1.7 Scope of the study

The main purpose of this study is to provide insight of how effective advertisement influences the consumer buying behaviour.

The scope of this research encircles various advertising strategies adopted by Omo detergent, the type of advertising and its impact on consumer buying behaviour, the effectiveness of advertising on consumer buying behaviour, reactions of consumers to emotional and environmental response in advertisements. However, this research does not include or encircle other factors such as; income, population change, price of other goods and services that could affect consumer buying behaviour.

1.8 Definition of term

i. Advertising: - Is a form of marketing communication used to persuade an audience to take or continue to some action, usually with respect to a commercial offering or political or ideological support.

ii. Buyer behaviour: - Is a management theory component which analyzes the purchasing habit of individuals or groups, primarily used for marketing purposes.

iii. Consumer buying behaviour: - Is the sum of a consumer’s attitude, preference, intentions and decisions regarding the consumer’s behaviour in the market place when purchasing a product.

iv. Purchasing: - refers to a business or organisation attempting to acquire goods or service to accomplish the goals of its enterprise.

v. Brand loyalty:-consistent performance and purchase of one brand  in specific product or service category.

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