ABSTRACT
Advertising is a prominent feature of modern business operations. One could encounter advertising messages, while watching TV, reading magazines, listening to the radio, surfing the internet or even simply working down the street, as advertising has a stimulating influence on purchasing behavior of the consumers. Empirical evidence has proven that advertising increases customers’ patronage of firms’ product. Advertising provides a platform for firms to create awareness about their products or services and how consumers could make the best out of such products. This study evaluated the effect of advertising on customers’ patronage of firms (Nigeria bottling company and 7up nig plc).This study was based on primary data collected to know the effect of advertising on customers’ patronage of firms’ products. Among the objectives of the study is to determine the extent to which advertising effect customers patronage. t-test statistics of difference mean and Pearson correlation co- efficient of R designs were adopted for the study. The first hypothesis test is aimed at determining whether or not advertising has significant effect on the creation of product awareness in Nigeria bottling company plc compared to 7up Nigeria plc. Further, the second hypothesis test showed that there is significant difference between effect of advertising on awareness creation of Nigeria bottling company plc and 7up nig plc. This study concluded that advertising is one of the most important medium of communication influencing the companies‟ performance in more than one ways. But its influential strategic importance could be suppressed by other factors which also try to receive equal attention at time of deciding any sales and profitability strategy. It is therefore recommended that not only advertising should be given adequate attention while formulating strategies relating to sales revenue and profitability promotion policy. Other factors which are important to increasing sales revenue and profitability such as sales promotion, personal selling, publicity etc which are crucial should be considered.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Research Questions 4
1.4 Objectives of the Study 4
1.5 Statement of Hypotheses 4
1.6 Significance of the Study 5
1.7 Scope of the Study 5
1.8 Limitation of the study 5
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 6
2.2 The concept of Advertising 6
2.3 Objective of Advertising 7
2.4 Criteria for Setting Advertising Objectives 9
2.5 Developing Advertising Message 11
2.6 Factors that determine the choice of Media 12
2.7 Functions of Advertising 15
2.8 Types of Advertising 18
2.9 Testing of the Advertisement 20
2.10 Theoretical Framework 22
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research 25
3.2 Area of study 25
3.3 Sample Size 25
3.4 Population of the Study 25
3.5 Methods of Data Collection 25 3.6 Source of Data Collection 26
3.7 Validity of the Data 26
3.8 Reliability of Instrument 26
3.9 Data Analyses Procedure 26
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Test of Hypotheses 28
4.2 Findings and Discussion 35
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 37
5.2 Conclusion 38
5.3 Recommendation 39
REFERENCES
APPENDIX
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Modern marketing calls for more than developing a good product, pricing it appropriately and making it available. a company must also communicate to influence the behaviour of the consumers or buyers. Marketers communicate by every activity that can be detected by the market. the marketing communication consists of four major modes namely advertising, sales promotion, personal selling and public relations.
The role of sales promotion in the form of advertising in promoting product and service awareness among consumers cannot be overstressed. Advertisement provides a platform for firms to create awareness about their products or services and how consumers can make the best out of such products. Olusegun (2006) opined that all advertisement must be honest and follow ethical standards and must not be perceived by the target consumer as lie; otherwise it can batter the image of a company and hinder it from building successful brands. Thus, for advertising to be effective, it must have an appeal, attract attention, command interest, inspire conviction and must provoke interest (Frank, 2005). In the same vein, Okeji (2008) posited that a good advert message should not be boring but rather reflect the lifecycle of the product. He concluded that advertising must be exposed in the right medium as this will enable organization to reach the right people with the right message.
A number of studies such as Herbert (2010), Nigel (2009), Gladson and Chinedu (2005) and Meshach (2007) have shown that advertising is a major competitive tool in establishing position in the market place. Companies use advertising not only to market and promote their products but to among other things wade-off competitors, improve their brands and create a vintage-point for their products in the presence of anticipated users, buyers or clientele. Persons, organizations, groups, government agencies and different sectors of many economies employ advertising to marshal messages to target public. This is because a well-crafted advertisement program can be a cost –effective way to disseminate messages and build brand preferences. As the trend globally, companies in Nigeria also rely on sales promotion to get their existing and prospective consumers informed about their products and services as is the trend globally, companies in Nigeria also rely on sales promotion to get their existing and prospective consumers informed about their products and services. Among all the tools of sales promotion in Nigeria, advertising has grown over the years to become the most prominent and easily understandable to firms and the general public (Haruna, 2005). It is therefore not surprising that resources committed to advertisement by firms in Nigeria have grown astronomically over the years. Studies by Akanbi and Adeyeye (2011) have posited that in Nigeria, advertising is more prominent among manufacturing firms, especially those in the food and beverages sector as awareness regarding their products can reach the consumers more rapidly through this channel.This can be substantiated by the revelations made by Kingsley (2012) who explained that euro monitor international in its recent findings showed that the Nigerian bottling company and 7upnig plc sector was ranked one of the best-performing segments of Nigeria’s manufacturing industry. The findings further revealed that operating capacity was generally at a higher level in the sector than within the Nigerian manufacturing sector as a whole, and the sector have shown good returns in the stock exchange. Analysts such as Kingsley and Paul (2009) have argued that even though the use of advertisement as a promotional tool is common among manufacturing firms in Nigeria like Nigerian bottling company and 7up nig plc firms committing huge sums of money into advertising companies do not automatically translate to better performance indices for Organizations. It has been argued that advertising, even when very extensive, does not lead automatically to purchase because it is the culmination of a whole sequence of events (Abiodun, 2011).
The foregoing has shown clearly that advertising does not take place without the organization incurring some costs to that effect. Hence, many are of the belief that the desirability or otherwise of advertisement by firms in Nigeria could also be established when it is related in the context of sales and the profits that advertising companies realize at the end. Against this backdrop of controversy, it became very pertinent to investigate the extent to which the advertising costs of manufacturing firms in Nigeria affect customers’ patronage. Consequently, this study was conducted with the intent of establishing the extent to which the advertising has an effect on customers’ patronage.
In the opinion of Walter(2010), advertising is one of the marketing mix elements that influence customers patronage and it is the most persuasive influence in consumer buying behaviour. Nwokoye (1996) refers to advertising as the words, pictures or illustration that makeup the advertisement and the way they are laid out to create a total impression. For consumers of a product to be positively influenced by advertising message, such a message must be designed in such a way that the consumers are directly touched .
The interest of the researcher in this area is aroused by the changing nature of marketing and its environment. Through advertising before now, has been criticized by many organized bodies and agencies, attention is going to be focused on the effect of advertising on the sales growth of firms with the Nigerian bottling company plc and 7up Nigeria plc as study firms.
According to Adama and Adu (2012) the reason for advertising a product include: making the consumers familiar with the product, when the consumer keep on seeing the product on regular basis, their interest for the product will be aroused. Advertising also tend to familiarize the customers with the mode of operation technological know- how, capacity, product usage etc. It is therefore imperative that producers of these products( coke etc Nigeria bottling companies products) understand the importance of advertising and the degree to which it influences the sales of their products. Thus to understand the real effect of advertising from peoples buying attitude towards Nigeria bottling company products, i.e. coke, Fanta etc. Assessment of advertising and its activities on consumer is necessary
1.2 Statement of the Problem
What led the researcher into this work is to provide answers to questions which are often asked of advertising products. These questions which are often asked why producers spend so much money on advertising and whether advertising really has a major influence on consumers behaviour towards organisations’ offer, and will these influence and also cause increase in sales volume relative of firms that do not advertise. It also establishes relationship with variables such as awareness creation, interest arousing, trial of offer, evaluation and adoption of product as stimuli of advertising as exerted through the media.
1.3 Objectives of the Study
This study is designed to assess the effect of advertising on customers patronage of firms with Nigeria bottling company plc. and 7-up Nigeria plc. as study units. The specific objectives of this study include the following:
(i) to evaluate the effect of messages sent, based on advertisers on creating positive influence based on awareness creation.
(ii) to examine and assess the influence of advertising on buying behaviour particularly based on arousing consumers interest.
(iii) to determine the degree to which advertising causes consumers to try products of firms.
(iv) to assess the response of consumers to advertisement, based on trying the product for adoption.
1.4 Research Question
(1) To what extent does advertising influence buying behaviour towards products based on its ability to create awareness.
(2) To what extent does advertising message create positive influence on consumers based on arousing their interest.
(3) What degree of impact does advertising have in causing consumers to try products.
(4) To what extent does advertising aid the consumers to evaluate corporate market offer For adoption.
1.5 Research Hypotheses
For the purpose of this research the following hypothesis will be tested.
H01: Advertising has no significant influence on awareness creation among consumers of firms offer.
H02: Advertising message has no significant influence on customers patronage based on arousing the interest of consumers. H03: Advertising does not contribute significantly to causing consumers to try firms market offer as index of the advertisement.
H04: Advertising does not significantly influence consumers to evaluating corporate offer for adoption.
1.6 Significance of the Study
Consumers are becoming aware of the products they buy and use. The consumers market is equally large and their money is spent in the market, thus any information provided by this research will help in educating both manufacturers and consumers of these bottling company’s products. such information will guide and direct both the sellers and users on how to operate effectively in the market. This will no doubt contribute economically and socially to the consumption of the products. A comprehensive assessment of advertising influence on consumers buying attitude will also provide a guide line to marketers of other consumers products in implementing their marketing strategies and programmes.
1.7 Scope of Study
The study which is the effect of advertising on customer’s patronage of Nigeria bottling company and 7up bottling plc will be restricted to these products (coke and pepsi). Reference will be made to cover Aba, Abia state.
1.8 Limitations of the Study
Time was a limiting factor in this research since it is restricted to the end of second semester. The researcher being a student, the study was also limited by financial constraints. Finally, how to reach the respondents and extract realistic information from them was also a limiting factor.
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