ABSTRACT
The proliferation of
assorted brands of food drinks in the country has led to cut-throat competition
for increased market share being witnessed among the operators in the food
drink industry. When competition is keen and the consumers are faced with brand
choice in the market, it becomes imperative for the manufacturers to understand
the major factors that can attract the attention of buyers to his own brand.
These then form the basis for this research work. This study examined the
impact of advertisement on consumer behaviour in Nigeria with reference to Cadbury
Nigeria Plc.
Questionnaire was used as
the primary source of data and simple sampling technique was employed in
administering the questionnaire. A sample of One hundred respondents was
sampled out of the population (Forty staff and sixty consumers of Cadbury
products)
Data gathered from the
questionnaire were presented on tables using percentages. The formulated
hypotheses were analysed using Chi
Square analysis. The results from the research
revealed that both male and female and different age groups are equally
influenced by advertisement. The major reasons advanced for this are
captivating and rich quality advertisement. TV advertising was most preferred
by respondents of all the media used in advertising Cadbury products.
The
research also revealed that advertising increases product awareness to
consumers and advertising helps the company in influencing consumer behavior
and gaining more market share
The need for high
preference to advertising is therefore highlighted for companies that want to
not only retain their market but take positive steps to increase their market
share.
TABLE OF CONTENTS
Title
Page ……………………………………………………… i
Cover
Page ………………………………………………. ii
Certification…………………………………………………… iii
Dedication…………………………………………………….. iv
Acknowledgement……………………………………………. v
Abstract………………………………………………………... vi
Table
of Content……………………………………………… vii
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study ……………..……………. 1
1.2
Statement of problem ………………………………. 3
1.3
Aim and Objectives of the Study..………………… 4
1.4
Research Questions ………………………………….. 5
1.5
Significance of the Study …………………………… 6
1.6
Research Hypotheses ……………………………….. 6
1.7
Scope/Limitation of Study ………………………... 7
1.8
Limitations of the Study…………………………..… 7
1.9
Definition of Terms ………..………………………… 10
CHAPTER TWO
LITERATURE
REVIEW
2.1
Introduction …………………………………… 13
2.2
Definition of Advertising …………………………… 14
2.3
Features of Advertising………………………………. 15
2.4
Purpose of Advertising ………………………………. 16
2.5
The Role of Advertising ………………………………. 17
2.6
The Benefit of Advertising…………………………… 19
2.7
Media of Advertising………………………………. 21
2.8
Advertising and Consumer Behaviour …………… 29
2.9
Perspective of Consumer Behaviour ……………. 41
2.10
Consumer Motives ……………………………… 42
2.11
Review of an Existing Analysis …………………… 46
2.12
Impact of Advertisement ………………………….. 48
Reference
…………………………………………… 52
CHAPTER THREE
RESEARCH METHODODLOGY
3.1 Introduction………………………………………..….. 55
3.2 Sources of Data ………………………………………. 55
3.3 Research Instrument Design ……………………… 56
3.4 Population and Sample Size …………………… 56
3.5 Administration of Research Instrument …….. 57
3.6 Restatement of Research Hypothesis ……………. 57
3.7 Analysis of Data ……………………………………… 57
3.8 Methodology ……………………………………….. 58
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction ……………………………………….. 59
4.1 Personal Characteristics of the Respondent
…… 59
4.2 Response of Respondents to the Problem
Areas. 63
4.4 testing and Interpretation of the Hypothesis
…… 68
4.4.1 Analysis of Hypothesis ………………………………. 68
4.4.2 Analysis of Hypothesis Two ………………………… 71
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATION
5.0 Introduction ……………………………………….. 75
5.1 Summary of Finding…………………………………. 75
5.2 Recommendation …………………………………….. 76
5.3 Conclusion …………………………………………….. 78
Reference ………………………………………………. 79
Appendix ………………………………………………. 82
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Cadbury
Nigeria Plc was incorporated in 1965, the company had only brand to its name:
Pronto and Bournvita, but those were doing well indeed, infact the decision to
incorporated a local Company by Cadbury Fry export, as the oversea company was
then called, was informed partly by excellent result obtained from importing
both products for sales within Nigeria.
Earlier
in 1959, the company had begun to hold stocks locally and by 1963 sales had
reached a level where the local packaging of bulk supplies where introduced.
Local manufacturer before sighed decision that was pay off handsomely later.
Viewed-from UK, Nigeria has
before and immediately after independence was a rapidly expanding market with
great potential in various filed of industry and commerce.
Some
also saw the new nation through the merchant list's viewpoint as available for
very little investment. Cadbury Nig. Plc took off with local manufacturer of
Bournvita and Pronto in 1965 and by 1966 a new factory site was situated at Isheri Road, IkejaLagos.
Before then, expanded production facility at the company's take-off base at
Apapa had brought two other products (Goody Goody and Tomapep) out of the
production line.
The
Ikeja factory was fast-paced, but it was finished before the Nigeria Civil War
brook out. For a while, the war itself threatened the very foundation of the
young company since over 50% of the total turn over then came from the eastern
states, fortunately, however, Government was place a band on imported finished
food, drinks and suddenly Bournvita and Pronto, the only food drinks then
manufactured in Nigeria, had the available market to themselves.
Sales
went through the roof and at least in Naira value terms have not stopped rising
since then except for 'a marginal drop in 1984, that was during the notorious
years of import licenses. Speaking to shareholders on the company's 1984
operations the chairman Mr. G.O. Onosode had said then, that the pressure on
profit margin "came from the need to substantial qualities from basic raw
materials................. From local importers in many cases at prices up to
three times those that would have applies, had we been in possession of
adequate licenses and in a position to import direct".
In
recent time, "We have ensured a stable future in materials supplies for
our company's food, drinks and confectionery products, and put ourselves in a
position where we can supply other manufacturing enterprises with some of their
raw materials needs".
The
trebor brand now belongs to the Cadbury Nigeria portfolio of products, a strong
addition to the existing seventeen (17) products with more on the way. The
average number to the person including directors employed by the company during
the year 1997 was 1,227 of whom only two are foreigners; while about 300 are
senior staff, make up a work force whose watchword is the pursuit of excellence
for them and for the company.
Advertising
being one of the marketing tools, it is so persuasive now that it has become a
very vital part of most organizations heritage in promoting their products. To this end, this study advertisement on
consumer behavior.
1.2 STATEMENT OF THE RESEARCH PROBLEM
It
has been observed that manufacturers of consumer products are faced with one
problem or the other when making their advertising decisions. There are some
factors that are to be considered in realiazing a good advertising decision.
Advertising can betray its role as a source of
information by misrepresentation and by withholding relevant facts. Sometimes,
too, the information function of media can be subverted by advertisers'
pressure upon publications or programs not to treat of questions that might
prove embarrassing or inconvenient.
The practice of "brand"-related advertising can raise serious
problems. Often there are only negligible differences among similar products of
different brands, and advertising may attempt to move people to act on the basis
of irrational motives ("brand loyalty," status, fashion, "sex
appeal," etc.) instead of presenting differences in product quality and
price as bases for rational choice.
Advertising can be tasteful and in conformity with high moral standards,
and occasionally even morally uplifting, but it also can be vulgar and morally
degrading. Frequently it deliberately appeals to such motives as envy, status
seeking and lust. Today, too, some advertisers consciously seek to shock and
titillate by exploiting content of a morbid, perverse, pornographic nature.
On
this note, this project tends to provide solutions to how advertisements could
be presented to avoid false / bad interpretation.
1.3 AIM
AND OBJECTIVES OF THE STUDY
The
aim of this research is concerned with the impact of advertising on consumer
behavior in Nigeria
with the following objectives:
· To
determine the extent to which advertising has created product awareness
· To
determine the benefits of advertising to Cadbury Nigeria Plc.
· To
know whether advertising has encouraged brand loyalty among consumers
· To
find out whether advertising has being able to influence the consumers.
· To
find out whether it has helped the company to provide customers with useful
information as their products.
· To
find out the receptivity of advertisement due to appeal used in it.
· To
explore the impact of personality used in advertisements on consumer behavior.
· To
determine the impact of keyword/caption of advertisement on purchasing behavior
of consumer.
1.4 RESEARCH QUESTIONS
In
determining the impact of advertising on consumer behavior in Nigeria with
particular reference to Cadbury Nigeria Plc, certain research question are
always put forth to be tested for its validity. The following are the research
question to be tested:
· Does
advertisement influence consumer behavior?
· Do
adequate marketing strategies improve product awareness?
· Do
you embrace advertising to face to face marketing system?
· Does
the advert influence your desire for Cadbury Products?
· What are the factors that usually contributes to
the buying perception and behavior of the consumers?
· What is the common goal of advertising?
· What are the recognized faces of advertising within
the organization and to the consumers?
1.5 SIGNIFICANCE OF STUDY
Advertisement is everywhere in our life
like on television, radio, newspaper and billboards are common medium’s through
which advertisement reach to us. Advertiser and marketers are more concerned to
know what are the consumer’s motives and their purchasing pattern in order to
use different strategies to influence their consumer behavior.
Due to consumers demand in uniqueness
and varieties promoters of products have to focus heavily on how to judge
psyche of consumers; what they like, why they like and what will be appreciable
in Cadbury products. The company should be concern about variety, upgrading of
products, saving schemes to make it more influencing and effective for
consumer’s psyche, so it is important to find out the elements of good
advertisements as if the consumers are prone to the advertisement effectiveness.
1.6 RESEARCH HYPOTHESES
The
following tentative hypotheses are to be tested:
(1)
H0: That advertising does not increase product
awareness in consumers
Hl:
That advertising increases product
awareness in
consumers
(2)
H0: That advertising does not help the company in
influencing
consumer behavior and gaining more market share.
H1:
That advertising helps the company in
influencing
consumer behavior and gaining more
market share
1.7 SCOPE OF THE STUDY
As
advertising has variety of meaning to different group of people especially
traced to its origin, this exercise is strictly restricted to advertising as it
affects the consumer behavior.
Nowadays,
advertising is largely employed to promote service like banking, insurance
Airlines and other service irrespective of those mentioned above. The scope of
this study will be limited only to areas where its importance on consumer
behavior could be fully tapped. There is no other area in the country that can
give a high and good avenue for measuring effectiveness of advertising than Lagos State.
1.8 LIMITATIONS
OF THE STUDY
In
the course of conducting this research work it is expected that the following
will constitute impediments to the effective conduct of the study.
· Locating
the actual and potential users of the Company's product.
· Inaccessible
and inadequate data from respondents during the course of administering the
questionnaire.
· Time
constraint within which the study must be completed.
· Financial
constraint
1.9 DEFINITION
OF TERMS
Advertising: Any paid form of non-personal presentation
and promotion of ideas, goods and services by identified sponsors.
Advertising Agency:
It is defined by the American marketing Association as "An independent
business organization composed of creative and business people, who develop,
prepare and place advertising media for sellers seeking to find customers to
their goods and services"
Brand Loyalty:
It describe the amount of Loyalty that users have to particular product, the
amount of loyalty can range zero to absolute.
Consumer Goods:
these are goods that are destined for use (without further processing by
ultimate consumer). It is classified into three major categories: Consumer
Goods, Shipping Goods, specially goods
Casual Research:
these are goods that tell us the factors responsible for the ineffectiveness of
a prevailing situation. The
causes
and the effect is known through the casual method of research.
Exploratory Research:
this is a research that has already been carried out by someone but explore
information of all sort. it is
also referred to as secondary source of information.
Descriptive Research:
this type of research is meant to rest the hypothesis foe foreseeable solution
(for the purpose of testing hypothesis or answering questions that are related
or concern with the subject matter or a problem which we are finding solution
for.
Appeal of Advertisement: Appeal is
the slogan or need-creating stanza used in advertisement. Attractive
personality, commercial’s keyword/caption and some information adding to
knowledge come under the appeal of the advertisement of a specific brand. They
motivate the consumer to center his/her attention to the specific brand of
product (Wells et al., 1995).
Acceptance of Advertisement: Acceptance
is the extent to which, a consumer relies on the advertisement’s information
and act accordingly to the appeal, keyword / caption, stanza, slogan and model
personality (Wells et al., 1995).
Consumer
Behavior: The decision process and physical activity
individuals engage in when evaluating, acquiring, using, or disposing of goods
and services (Loudon & Bitta, 1994).
1.10 PLAN OF THE STUDY
This study will be divided into five chapters.
Chapter one, which is the introduction, various objectives intended to be
achieved in carrying out this research work will be looked at. In addition, the
research hypothesis as well as the scope and limitation of the study will be
stated among other things.
Chapter two, which is the literature review examine the existing
literatures on Advertisement, its genesis, types, impacts to oraganisations and
how it affects consumer behavior.
Chapter three, which is the structural composition of the study, impact
of advertisement on consumer behavior will be discussed and the methods for
this research work will also be explained in detail.
Chapter four contains data analysis. The data to be analyzed will be
obtained from a structured questionnaire that will be administered to the staff
of Cadbury Nigeria Plc., Lagos
branch. These data will be analyzed through the use of
Chi-Square analysis.
The summary, conclusions and recommendations will be presented in chapter
five.
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