THE IMPACT OF ADVERTISING ON CONSUMER PURCHASE DECISION (A CASE STUDY OF DANGOTE NIG PLC)

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Product Code: 00004705

No of Pages: 82

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Abstract

This study examines the “impact of advertising on consumer purchase decision” using Dangote Nigeria limited (Dangote spaghetti) as a case study, so that the relationship that exist between advertising and spaghetti will be analyzed.
In order to find solution to this problem three (3) hypothesis were formulated and data were collected through the use of questionnaires administered on a sample or one hundred (100) customers. Furthermore, result obtained from the test of hypothesis shows that advertising has an effect on consumer purchase decision with a particular reference to Dangote spaghetti. Base on findings it was therefore recommended that Dangote Nigeria limited should improve on its advertising media, in order to have a large market share in the market of spaghetti.




TABLE OF CONTENTS

Title Page                                                                 i

Certification                                                             ii

Dedication                                                               iii

Acknowledgments                                                    iv

Abstract                                                                  v

Table of Contents                                                     vi

CHAPTER ONE: INTRODUCTION

1.1   Background to the Study                                          1

1.2   Statement of the Problem                                         4

1.3   Research Questions                                                 5

1.4   Research Hypothesis                                                5

1.5   Purpose of the Study                                                7

1.6   Scope of the Study                                                   7

1.7   Significance of the Study                                          8

1.8   Limitations of the Study                                           9

1.9   Operational Definition of Terms                                10

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1   Introduction                                                             13

2.2   Definition of Advertising                                           14

2.3   Advertising Objectives                                              16

2.4   Types of Advertising                                                 18

2.5   Advertising Media                                                    20

2.6   The Effect of Advertising                                           23

2.7   Measurement of Advertising Effectiveness                 24

2.8   Communication Effect/Purchase Effect                     24

 

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1   Introduction                                                             27

3.2   Research Design                                                      27

3.3   Population of the Study                                            28

3.4   Sample/Sampling Techniques                                  29

3.5   Instrumentation                                                       31

3.6   Method of Data Collection                                 31

3.7   Method of Data Analysis                                           33

 

CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1   Introduction                                                             36

4.2   Data Presentation and Interpretation                36

4.3   Data Analysis and Hypothesis Testing                       53

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1   Introduction                                                             62

5.2   Summary of Findings                                               62

5.3   Conclusion                                                              63

5.4   Recommendations                                                    64

References                                                               67

Appendix                                                                 69


CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

A typical market is made up of people who have various needs. Some are buyers in the market while others are sellers. Each participant in the exchange process is often confronted with the problem of searching. Every attempt to satisfy consumers needs and desires, it is usually and most often the duty of the sellers to package their product or service information for dissemination to the consumers by employing such relevant vehicle as promotional activities which is conveyed and executed through advertising. Effort is made to persuade buyers in order to act when they receive this information.

Therefore, it should not be surprising to see the systematic and gradual development of advertising form a basic tool of marketing into a very vital means of communication. Most of the message contents in our media advertisement is through the magazines, radio, bill board, newspaper television are not merely for the sales of the advertised product, but equally to entertain, educate, beside the provision of useful and revenant information to such media audience.

In a developing country like Nigeria, the distribution of available goods and services depends on consumers learning habit. In fact, advertising do not often persuade people against their wish unless they are gullible and unsophisticated. To some people advertising is regarded as an art, while other see it as a science. To this background, advertising is a unique combination of ‘both variables. Advertising comprises the effective blending of the behavioural science such as anthropology, sociology, psychology etc with the communication arts such as writing editing drama graphic animation and photography etc.

Nevertheless, for a successful promotional activities, advertising skills must be employed using words, pictures, slogans jungles, colours, sizes and movement etc. to entice the readers, viewers, listeners or passerby to stop, look, listen read, develop interest, be convinced and then take action. Annually huge amount is being invested and budgeted for a advertising by most states and manufacturer (especially those in the consumer goods industries) besides the series or advertisements clone through newspaper, radio, magazines and television, have ignited the emotional zeal and enthusiasm by the company in carrying out the study of communication effect on consumer goods like spaghetti and other product like rice, salt sugar, tooth past, soft drinks, soaps, tin and coffee, with a particular reference to Dangote group of company Lagos state. In fact, there are various producers of these like products in Nigeria today these production turn out different brands of these consumer goods (spaghetti) to the vast Nigeria populace. Conversantly, Nigeria can account for about 8 brands of spaghtti produced by different companies today. Because of this still competition in this consumer product manufacturers, one is tempted to wonder how the newly operating once are able to stimulate public awareness and patronage according to Jerkins (2003), the effort of advertising is to influence people buying behaviour, but this is difficult since human being behave differently, thereby making mass consumer behaviour virtually unpredictable.

The essence of this study is to evaluate the effect of advertising on consumer purchase decision of Dangotte spaghetti”. Hence, this research work is to find out the extend to which those advertisements of Dangotte spaghetti have succeeded in influencing its consumers when making their buying decisions.

1.2   Statement of the Problem

To be candid, this research work is based on effect of advertisement on Dangotte spaghetti on its consumers, and it is aimed at solving some vital problems.

This research work is obliged to find out the extent to which those advertisement of Dangotte spaghetti have succeeded in influencing its consumers when making their buying decisions. Again, this study is out to decipher the extent to which Dangote spaghetti advertisement have justified the- huge sum of money invested and expended on it in terms of attracting public.

1.3   Research Questions

i.            To what have advertisement succeeded in influencing the buying and consumption rate of Dangote spaghetti consumer?

ii.           Does the media advertisement of Dangote spaghetti actually have the potentials for creating brand loyalty?

iii.         What are the other factors which influences consumers in making their buying decision apart from the various advertisements on Dangote – spaghetti?

1.4   Research Hypothesis

This research work is based on the following hypothesis.

Hypothesis One

HO:   The various media advertisement of Dangote spaghetti generates brand loyalty for the spaghetti amongst is diversified consumers

HI:    The various media advertisements of Dangote spaghetti does not generate brand loyalty for the spaghetti amongst its diversified consumers.

Hypothesis Two

HO:   The media advertisement of Dangote spaghetti always been dictating and influencing the buying and consumption habit of Dangotte spaghetti consumers.

HI:    The media advertisements of Dangote spaghetti have never dictated let alone influence the buying and consumption habit of Dangote-spaghetti consumers.

Hypothesis Three

HO:   The cost of advertising Dangote spaghetti does match with the benefits that accrue to advertising especially  when the sale is high in volume.

HI:    The cost of advertising Dangote spaghetti does not match with the benefits of advertising. That is to say that no matter the benefit of advertising, this particular product does not depend on advertising for consumer purchase decision.

 

1.5   Purpose of the Study

The purpose of this study is to evaluate the effect of advertising on the consumption of “Dangote spaghetti. Advertisement has always been on the radio bill boards along high ways.

i.            To find out the extent to which advertisement have succeeded in influencing the buying and consumption rate of Dangote spaghetti consumer.

ii.           To also find out if the media advertisement of Dangote spaghetti actually has the potentials for creating brand loyalty.

iii.         Equally it is the intention of the study to find out those other factors which influences consumers in making their buying decision apart from the various advertisements on Dangote – spaghetti.

1.6   Scope of the Study

This research work is limited to assessing and examine in details the effects of advertising on the consumer buying decision especially on Dangote spaghetti, with particular reference to Dangote group of company’s Lagos state. The scope of the study is limited to the consumers buying habit to enable the researcher to know how advertising can easily influence the buying decisions of consumers of Dangote spaghetti, in the process of making their choice amongst other brands of spaghetti.

1.7   Significance of the Study

This research work is useful in the view of the researcher based on the exposure and also to the management of Dangote group of company’s the professors of advertising the field of mass communication the interested members of the public and of course, posterity, stand to benefit from this study.

In view of the massive competition amongst the various spaghetti industries for keen awareness and attention, beside the huge amount of money being annually budgeting on advertising by Dangote group of company, this study would tremendously help the researcher in deciphering whether this heavy sum of money invested on advertising by Dangote group of company’s Nigeria Plc, is worth while.

This research study will also assist the present and future students in advertising field to understand how powerful and effective media advertisement in influencing consumer buying decisions is.

Equally, this research work would go very long extent in enhancing public enlightenment on how best the Dangote spaghetti consumers tests and choices are dependent on the various media advertisements available to the prospects In considering this research work from a scientific and empirical point of view, it would aid those in the field of mass communication in knowing that most critics of advertising are themselves advertisers and indeed, purchasers of advertised goods and services.

1.8   Limitations of the Study

The insufficient documentary evidence and related literature on the impact of advertising on the marketing Dangote spaghetti making research on information given by few textbooks, articles, journals of supplement the existing data. Finance also limits the effort of the researcher to get material for the research work and browsing the internet to get recent development regards the study.

In addition respondent attitude towards the research was not favourable. They were not ready to cooperate by giving all necessary information needed to carry out the study however this situation seriously undermined a comprehensive study.

 

1.9   Operational Definition of Terms

In order to aid our understanding of the whole work, if is important that some terms used in this work be defined such terms are defined below;

a.     Product: A products is a set of tangible and intangible attributes, including packaging, colour, price and retailers service which the buyer may accept as offering satisfaction of wants and needs

b.     Advertising: The program or series of activities necessary to prepare the message and getting it through to an intended audience.

c.     Advertisement: It is the content of a particular message.

d.     Message: It is the symbols that the advertisers transmit to his audience to address, for benefits, purpose, motivations reasons or for identification.

e.     Appeal: The motive use to create interest on a product or services and to stimulate a purchase.

f.      Copy: This is prepared by an expert copy writer, it is a written or spoken material of advertising communication and includes the headline, name and address of the advertiser as well as the main text of the message.

g.     The medium: Refers to routs of channel through which the message are delivered to the target audience of consumers.

h.     Brand Loyalty: Knowledge of the attributes of a particular product:

i.      Consumer behaviour: A subject of human behaviour concerning with specific bearing on the purchase or goods and services from marketing organization.

ii.     Purchase Decision: The process by which organization defines their needs, for goods and services. Identify and compare the suppliers available to them, negotiate with sources of supply or in some other ways arrived at agreed terms of trading, make contracts and place order, and finally receive the goods and services and pay.

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