ABSTRACT
This study aimed to establish the influence of advertising
on consumer buying behaviour by focusing on Forever Living cosmetics products.
Specifically, the study aimed to identify media of advertising used to
advertise Forever Living Products determine ways in which advertisement influence
purchasing behaviour and establish how different advertisements influence
consumer’s behaviour
The study was conducted in Kinondoni district in Dar es
Salaam. Both, primary and secondary data collection methods were used to
collect data. Primary data were collected with the use of questionnaires and
interview guides, as well as personal observation. Secondary data collection
involved the perusal of various documents. The study used case study research
design and comprised a sample of 100 respondents.
From the findings of the study, the researcher concludes
that advertising plays a very significant role in influencing consumers buying
behaviour by providing attracting their attention, arousing their interest,
creating desire to purchase the products. Forever Living uses event, word of
mouth, magazine, Facebook, DVD, trade fair, T Shirt and Website advertising.
Advertisements used by Forever Living to promote cosmetics
products influences consumer buying behaviour by providing them with information about product benefits,
price, quality, ingredients (materials of which the product is made of),
quality, product quantity, product testimonial, product packaging, product name
and product colour. The advertisements create awareness of the products and
attracts more buyers.
The researcher recommends that the company should create
advertisements in Kiswahili language, create advertisements that reflect the
local situation and ensure that advertisements should convey direct information
about the product rather than to showing glamour and exaggeration. Also,
advertisements should offer more information about the benefits of the product.
Pages
CERTIFICATION....................................................................................................... i
DECLARATIONANDCOPYRIGHT....................................................................... ii
ACKNOWLEDGEMENT........................................................................................ iii
DEDICATION............................................................................................................ iv
LIST OF ABBREVIATION....................................................................................... v
ABSTRACT................................................................................................................ vi
TABLE OF CONTENTS......................................................................................... vii
LIST OF TABLES...................................................................................................... x
LIST OF FIGURES.................................................................................................. xii
CHAPTER ONE.......................................................................................................... 1
INTRODUCTION AND BACKGROUND OF THE STUDY............................... 1
1.0 ........... Introduction.............................................................................................. 1
1.1 ........... Background of the Study......................................................................... 5
1.2 ........... Statement of the Problem......................................................................... 7
1.3 ........... General Objective of the Study................................................................ 7
1.3.1......... Specific Objectives of the Study.............................................................. 7
1.4............ Research Questions................................................................................... 8
1.5 ........... Significance of the Study......................................................................... 8
1.6 ........... Limitation of the Study............................................................................ 8
1.7 ........... Scope of the Study................................................................................... 9
1.8 ........... Organization of the Study........................................................................ 9
CHAPTER TWO....................................................................................................... 10
LITERATURE REVIEW........................................................................................ 10
2.0 ........... Introduction............................................................................................ 10
2.1 ........... Literature Review................................................................................... 10
2.1.1 ........ Psychological Theories............................................................................ 10
2.1.2 ........ Psycho-Analytic Theories....................................................................... 11
2.1.3 ........ Socio Cultural Theories........................................................................... 11
2.1.4 ........ Purchase Intention Theory...................................................................... 12
2.1.5 ........ Theory of Reasoned Action.................................................................... 12
2.1.6 ........ Fishbein Attitude Theory........................................................................ 12
2.1.7 ........ Maslow’s Theory of Needs..................................................................... 12
2.1.8 ........ The Concept of Advertising................................................................... 13
2.1.9 ........ Advertisings Models............................................................................... 14
2.1.10 ...... Stages of the Buying Process................................................................. 15
2.10 ......... Consumers Buying Behavior.................................................................. 19
2.1.11 ...... Types of Consumer Behaviour............................................................... 19
2.1.12 ...... Factors Influencing Consumer Buying Behaviour................................. 20
2.1.13 ...... Factors Affecting Consumer Purchase Decision.................................... 21
2.2 ........... Empirical Literature Review................................................................... 23
2.3 ........... Research Gap.......................................................................................... 28
2.4 ........... Conceptual Framework........................................................................... 29
CHAPTER THREE.................................................................................................. 30
RESEARCH DESIGN AND METHODOLOGY.................................................. 30
3.0 ........... Introduction............................................................................................ 30
3.1 ........... Research Design..................................................................................... 30
3.2 ........... Area of Study......................................................................................... 30
3.3 ........... Study Population.................................................................................... 30
3.4 ........... Sample and Sampling Techniques.......................................................... 31
3.4.1 ........ Purposive Sampling................................................................................ 31
3.4.2 ........ Random Sampling.................................................................................. 31
3.5 ........... Source of Data........................................................................................ 32
3.6 ........... Data Collection Methods........................................................................ 32
3.6.1 ........ Questionnaire.......................................................................................... 32
3.6.2 ........ Interview................................................................................................. 32
3.6.3 ........ Observation............................................................................................. 33
3.7 ........... Validity and Reliability of Instruments.................................................. 33
3.8 ........... Data Presentation and Analysis Plan...................................................... 33
3.8.1.1 .... Editing of Data....................................................................................... 34
3.8.1.2 .... The Coding of Data................................................................................ 34
3.8.1.3 .... Classification of Data............................................................................. 34
3.8.1.4 .... Data Presentation.................................................................................... 34
CHAPTER FOUR..................................................................................................... 35
STUDY FINDINGS, ANALYSIS AND DISCUSSION........................................ 35
4.0............ Introduction............................................................................................ 35
4.2 ........... Demographic Characteristics of Respondents........................................ 35
4.2.1 ........ Age of the Respondents......................................................................... 35
4.2.2 ........ Gender Profile of Respondents.............................................................. 36
4.2.3 ........ Level of Education of Respondents....................................................... 36
4.2.4 ........ Awareness on Cosmetics Advertising Strategies................................... 37
4.2.5 ........ Experience of Respondents in Cosmetics Industry................................ 37
4.3 ........... Advertising Strategies Used by Forever Living..................................... 38
4.4 ........... Influence of Advertising on Consumer Buying Behaviour
Using AIDA Model 40
4.4.1 ........ Advertising Influences Consumer Buying Behaviour by
Attracting Attention 40
4.4.2 ........ Advertising Influences Consumer Buying Behaviour by
Arousing Interest 41
4.4.3 ........ Advertising Influences Consumer Buying Behaviour by
Creating Desire 42
4.4.4 ........ Advertising Influences Consumer Buying Behaviour by
Leading to Action 42
4.5 ........... Elements of Advertisement which Influence Consumer
Buying Behavior 43
4.5.1 ........ Product Benefits..................................................................................... 44
4.5.2 ........ Product Quality...................................................................................... 44
4.5.3 ........ Influence of Product Ingredients on Consumer Buying
Behavior......... 44
4.5.4 ........ Influence of Product Price on Consumer Buying Behavior................... 45
4.5.5 ........ Influence of Product Quantity on Consumer Buying
Behavior............. 45
4.5.6 ........ Influence of Product Packaging on Consumer Buying
Behavior........... 46
4.5.7 ........ Influence of Models Used in Advertisement on Consumer
Buying Behavior 47
4.5.8 ........ Influence of Product Name on Consumer Buying Behavior.................. 48
4.5.9 ........ Influence of Product Colour on Consumer Buying Behavior................ 48
4.5.10 ...... Influence of Product Testimonial on Consumer Buying
Behavior......... 49
4.6 ........... Ranking of Elements of Advertisement which Influence
Buying Behavior 50
4.6.1 ........ Correlation Coefficient for Product Benefits......................................... 50
4.6.2 ........ Correlation Coefficient for Product Quality.......................................... 50
4.6.3 ........ Correlation Coefficient for Product Ingredients.................................... 51
4.6.4 ........ Correlation Coefficient for Product Price.............................................. 51
4.6.5 ........ Correlation Coefficient for Product Quantity........................................ 52
4.6.6 ........ Correlation Coefficient for Product Packaging...................................... 53
4.6.7 ........ Correlation Coefficient for Product Names........................................... 53
4.6.8 ........ Correlation Coefficient for Models Used in
Advertisements................ 54
4.6.9 ........ Correlation Coefficient for Product Colour........................................... 54
4.6.10 ..... Correlation Coefficient for Product
Testimonial.................................... 55
4.6.11 ...... Ranking of Elements of Advertisement which Influence
Buying Behavior 56
4.7 ........... Conclusion.............................................................................................. 56
CHAPTER FIVE....................................................................................................... 57
CONCLUSION AND RECOMMENDATIONS................................................... 57
5.0............ Introduction............................................................................................ 57
5.1 ........... Summary of Findings............................................................................. 57
5.1.1 ........ Recomendation....................................................................................... 58
5.1.2 ........ Specific Recomendation.......................................................................... 59
5.1.3 ........ Effective Marketing Program should be employed at the organisation……. 60
5.1.4 ........ The Buying transactions at Forever Living Company
should be Market and Customer Centered/Driven..................................................................................... 59
5.1.5......... The Assessment of further Consumer Behaviour needs for
effective adoption of Forever Living Products Should be Identified…………...60
5.1.6
The Company should do some advertisements in Swahili Language…..…60
5.1.7 Advertisements should be created and
designed in the Local Context of Tanzania Situation………………………………………………….…60
5.2
Suggested Strategies…………………….…………………………………61
5.2.1 Products should be market
Driven………....……………………………….61
5.2.2 Forever Living Business Persons Need to
be Trained on Service Delivery and Customer Care...………………………………………………….61
5.2.3 Forever Living Companies Need Strong
Partners and Strategies Alliances ……………………………………………………………………..….61
5.3
Conclusion …………………………….……………………………..…….62
5.4 Area for Further Studies.................................................................................. 62
REFERENCES.......................................................................................................... 63
APPENDICES........................................................................................................... 70
Appendix 1: ....... Work Plan................................................................................... 70
Appendix 2: ....... Estimated Research Budget........................................................ 71
Pages
Table 3.1: ...... Sample Respondents: Sample size n=100........................................... 31
Table 4.1: Age Profile of Respondents............................................................... 35
Table 4.2: Gender Profile of Respondents.......................................................... 36
Table 4.3 Level of education……………………………………………...…...36
Table 4.4: Awareness on Cosmetics Advertising Strategies............................... 37
Table 4.5: Experience of Respondents in Cosmetics Industry............................ 38
Table 4.6: ...... Advertising strategies used by Forever Living................................... 40
Table 4.7: Advertising Attracts Attention on Forever Living
Cosmetics Products 41
Table 4.8: Advertising Arouses Interest on Forever Living
Cosmetics Products 42
Table 4.9: Advertising Creates Desire for Forever Living
Cosmetics Products.. 42
Table 4.10: Advertising Leads to Purchase of Forever Living
Cosmetics Products 43
Table 4.11: Product Benefits Influence Consumer Buying Behavior................... 43
Table 4.12: Product Quality Influences Consumer Buying Behaviour................. 44
Table 4.13: Product Ingredients Influence Consumer Buying Behavior.............. 44
Table 4.14: Product Price Influences Consumer Buying Behavior....................... 45
Table 4.15: Product Quantity Influences Consumer Buying Behavior................. 46
Table 4.16: Product Packaging Influences Consumer Buying Behavior............... 46
Table 4.17: Models Used in Advertisement Influences Consumer
Buying Behavior 47
Table 4.18: Product Name Influences Consumer Buying Behavior...................... 47
Table 4.19: Product Colour Influence Consumer Buying Behavior...................... 48
Table 4.20: Product Testimonial Influences Consumer Buying
Behavior............. 48
Table 4.21: Correlation Coefficient for Product Benefits..................................... 50
Table 4.22: Correlation Coefficient for Product Quality...................................... 50
Table 4.23: Correlation Coefficient for Product Ingredients................................ 51
Table 4.24: Correlation Coefficient for Product Price.......................................... 51
Table 4.25: Correlation Coefficient for Product Quantity.................................... 52
Table 4.26: Correlation Coefficient for Product Packaging.................................. 53
Table 4.27: Correlation Coefficient for Product Names....................................... 53
Table 4.28: Correlation Coefficient for Models Used in
Advertisements............ 54
Table 4.29: Correlation Coefficient for Product Colour....................................... 54
Table 4.30: Correlation Coefficient for Product Testimonial................................ 55
Table 4.31: Ranking of Elements of Advertisement which Influence
Buying Behavior 56
Pages
Figure 2.1: ....... Elements in Advertising Process Model........................................... 13
Figure 2.2: ....... Advertisings Models........................................................................ 15
Figure 2.3: ....... Stages
of the Buying Process........................................................... 18
Figure 2.4: ....... Conceptual Framework Advertising and Consumer’s Buying
Behaviour 29
LIST OF ABBREVIATION
AIDA - Attention, Interest, Desire, Action
DVD - Digital Versatile Disc
FMCG - Fast Moving Consumer Good
Consumer is a person who buys and uses products. Therefore,
consumers keep the production cycle moving as well as play an important role in
the economic system of any nation, as a result, any nation will face crisis if
consumers don’t have the effective demand for goods produced. Consumers demand
different commodities based on their taste and preference for them.
Consciousness of good influences consumers purchase of that good. Other factors
that influence one‘s taste and preference for a good are psychological and
environmental. Taste and preference for a good change overtime. Thus,
advertisements play a role in influencing taste and preference of consumers’
choice. (Sharma, 2009).
Advertising is all about mass publicity of products.
Advertising involves creating awareness of product’s uses and their benefits to
consumers. By doing this, it makes a product to be available to those who want
it and this satisfies the needs of the advertiser; increasing sales. According
to Cohen, advertising is a business activity that employs creative techniques
to design persuasive communication in mass media that promote ideas, goods, and
services in a manner consistent with the achievement of the advertiser‘s
objective, the delivery of consumer satisfaction and the development of social
and economic welfare. (Cohen, 1988)
From Cohen’s definition, it can be found that advertising
satisfies three objectives; to increase sales of the firms, to guarantee
consumers a great deal of service and finally to ensure the social and economic
welfare of society. Advertising can be done through various media such as;
radio and television, billboards, magazines and newspapers and websites. (Cohen,
1988)
Other factors that influence one‘s taste and preference for
a good are psychological and environmental. Taste and preference for a good
change overtime. Thus, advertisements play a role in influencing taste and preference
of consumers’ choice. Consumers are known to be rational with regard to their
purchases, wanting to maximize their satisfaction when it comes to consumer
goods (Sharma, 2009).
The term consumer behavior is defined as the behavior that
consumer display in searching for purchasing, using, evaluating and disposing
of product and services that they expect will satisfy their needs. Consumer
behavior focuses on how individuals make decisions to spend available resources
(time, money, effort) on consumption related items (Solomon, 1994).
Consumer behavior includes what they buy, why they buy it,
when they buy it, where they buy it, how often they buy it, how often they use
it, how to evaluate it after the purchase and the impact of such evaluation
fount u re, and how they dispose of it. In other words, consumer behavior is behavior
of individuals in regards to acquiring, using, and disposing of products, services,
ideas or experiences (Loudon, 1988).
Advertising has huge stimulating influence on purchasing
behavior of the consumers. Mostly, advertising are more effective on products
that have intrinsic qualities. Qualities are not known at the time of purchase
and it takes one to discover the qualities upon using the product. And, when
there is a substantial chance of differentiating a product, it best suits to
advertise on that product (Schiffman, 1993).
A consumer will therefore not purchase a commodity whose
price is above the additional satisfaction that he derives from the good. How
much of a good demanded, depends on the satisfaction the consumer gains from
spending extra money on the good. Rational consumers will spend on a good till
their gains equal the cost they pay for the product (Schiffman, 1993).
When there is a strong emotional purchasing motive such as
to product health or enhance social position, it pays to advertise on such a
product. These conditions make the demand for the product more inelastic. The
more emotions consumer attach to a product, they more they tend to be
insensitive to its price. This is of importance to firm’s product as they can
earn high sales in pricing their products (Borden, 1942).
In the absence of advertising, consumers may not be aware of
the product and its potential to satisfy their needs and desires. According to (
Kotler and Keller ,2006) advertisings mix consists of eight modes of
advertising which are; personal selling, direct marketing, advertising, sales
promotion and exhibitions, public relations and publicity, events and
experience, interactive marketing, and word of mouth.
One form of advertising is personal selling. The Relevance
of personal selling to this study lies on the role of face-to-face interactions
in marketing of tourism products. This involves face-to-face interactions with
prospective buyers for the purpose of selling a product or service. These days,
personal selling is considered to be the most effective tool as it involves
personal interaction, hence feedback is received immediately (Kotler and Keller,2006).
However, personal selling suffers from a few drawbacks i.e.
it is the most expensive tool of promotion. Secondly, it requires too much
dependence on sales force. If the organization is using a pull strategy to sell
the product a sales force will be required to make sure that retail outlets are
looked after well, that they have enough stock, are trained well so they can
push the product onto the consumer (Kotler and Keller, 2006).
Another form of advertising is direct advertising. According
to (Kotler and Keller, 2006) direct advertising is advertising which
communicates directly with customers and prospects. The merits of direct
marketing is that it reaches a larger number of people, the message can be
repeated, its cost is not high, and with the development of art and graphics,
statements can be transformed into forceful messages.
Advertising can be categorized into above the line
advertising and below the line advertising. According to (Kotler and
Keller,2006) there is above the line advertising is advertising placed in TV,
radio, newspapers and other advertising channels in which the advertiser pays
an advertising agency to place the ad. Below the line advertising is based on
advertising via direct mail, sponsorship, merchandising, public relations,
trade show and personal selling.
A variety of short-term incentives to encourage trial or
purchase of a product. (Kotler and Keller, 2009). The aim of sales promotion is
to increase consumer demand, stimulate market demand or improve product
availability. The tactics used for this include; coupons, point of sales,
packaging promotion, web coupons, sweepstakes, contests, product samples,
rebates, tie-ins, self-liquidating premiums, trade shows and trade-ins.
(Kotler and Keller, 2009) explained it as variety of
programs designed to promote or protect a company’s image or its individual
product. For example, British Airways has recently invested in changing its
identity by redesigning its aircraft livery. The change from the use of a
corporate color scheme and national image on the aircraft to a far more
international image reflects the company’s global ambitions (Pender, 2009).
Company sponsored activities and programs designed to create
daily or special brand related interactions (Kotler and Keller, 2009).
Sponsorship is about providing money to an event, in turn the product or
company is acknowledged for doing so. Sponsorship helps the company improve its
image and public relations within the market and usually the company attempts
to sponsor events that mirrors the image they are trying to aim for.
Therefore the goal of this research was to find if consumer
buying behavior is a result of advertisements made on the cosmetics products. As
stated previously, advertising affect products and are believed to have an
intrinsic quality that is not known at the time of purchase .One of such
product are cosmetics. It is for this reason forever living products were
chosen as a case study.
Advertising had been a subject discussed over centuries ago,
but prior to the 20th Century, this subject was not as important as it seems now.
According to (Roberts, J. 1987) The reason been that, in the 19th century,
economist were busy trying to develop the theory of perfect competitive
markets, this theory assumed that, there was perfect information in the market
and that, consumers had fixed preference for their products which were
homogenous in nature.
It was then thought of as a waste of resource and an
increase in cost of production for one to advertise on products because
consumers were not in any way going to respond to that. The advancement in
transportation and technology, made producers rethink their decision to improve
their capacity and thus, ensure publicity of their products (Roberts, J. 1987)
After these happenings, advertising then became an important
area for economist to research into. An early reflection was given by (Alfred
Marshall 1890, 1919). In his works, “Principles of Economics” and “Industry and
Trade”. He marks out two roles played by advertising. To him, advertising might
be useful in providing information to consumers which will help them satisfy
their wants.
(Chamberlin, 1933) in his work “The Theory of Monopolistic
Competition” came up with new ways of looking at advertising. He modeled the
expenditure of a firm as a “selling cost” that expands a firm’s demand for a
differentiated product. In his work, he describes a market structure in which
there are many firms producing and selling similar but not identical products.
In this market, (Chamberlin, 1933) believes that advertising
may provide consumers with information about their wants but also adds that, it
can be persuasive and alter one’s demand for another. Advertising when
informative makes consumers responsive to price changes and thus increases the
demand elasticity for the product but a persuasive advert will create brand
loyalty making the demand for a good inelastic (Bagwell, 2011).
(Chamberlin, 1933) then concluded that, the effects of
advertising cannot be determined by theory alone, thus where a firm’s demand
curve is tangential to its U-shaped average cost of production and selling, but
by also considering the extent to which advertising is whether informative or
persuasive and also whether scale economies exist (Bagwell, 2011).
After this insight by (Chamberlin, 1933), there came into
existence three views of advertising; persuasive, informative and
complementary. The persuasive view developed by Robinson and later advanced by
(Braithwaite, 1928), and empirically supported by (Bain, 1956) and (Comanor and
Wilson 1974) hold that, advertising affects one’s demand and it is capable of
ensuring brand loyalty.
This view adds that, advertising makes demand for a product
inelastic and thus ensures increase in the price of the product and this effect
might lessen as a result of scale economies. The view also adds that, consumers
are unwilling to try new products especially those of unknown quality and this
may deter entry of new producers. These scholars agree that, this view of
advertising will only work in scale economies.
The informative view of advertising, propagated by (Ozga,
1960) holds that, advertising serve to inform consumers about a product. They
add that, advertising increases the demand elasticity for a product and this
happens because, it is believe by these scholars that, as information of a
product is given, it is assumed the product is of high quality and this can
even increase the demand for products.
There is the complementary view of advertising which is
developed by (Stigler and Becker, 1977), this view believes that, advertising
influences consumers by attaching a “complementary influence in the consumer’s
utility function” (Bagwell, 2001). These views make us understand the different
phases through which advertising has gone through.
Advertising has been a subject for debate either on one
pretext or another for decades at the beginning of the 19th Century. People
showed little interest but it later became a fertile topic for research at the
turn of the 19th Century (Sharma, 2009).The reason people lost interest was the
fact that the role of advertisements was falling apart due to the fact that
most increase in product and sales, especially; cosmetics products had been
attributed to other factors like taste, long term use of products and users
unwillingness to switch products (Sundarsan, 2007).
The falling role raised numerous questions which became the problem
of this study. The researcher therefore intended to get answers as to how and why
cosmetics companies do advertise their products while they know the increase in
product and sales is attributed to other factors and no longer advertisements.
Cosmetics products were considered because they satisfy the
conditions of commodities on which they are effective to advertise. There are a
lot of cosmetics products which are differentiated but serve same purpose.
Therefore, this study aimed to find out the role of advertising in the consumer
buying behavior of cosmetics products specifically Forever Living cosmetic
products with emphasis to its users.
The general objective of this study was to establish the influence
of advertising on consumer buying behavior by focusing on Forever Living cosmetics
products.
The
study was guided by the following specific objectives
(i.)
To identify media of advertising used to advertise
Forever Living Products
(ii.)
To determine ways in which advertisement influence
purchasing behavior
(iii.)
To establish how different advertisements influence
consumers behavior
The study was guided by the following research questions
(i.)
Which media of advertisement is used to advertise
Forever Living Products?
(ii.)
In which ways does advertising influence consumer buying
behavior?
(iii.)
How elements of advertising influence consumer behavior?
The findings of the study benefitted cosmetics companies,
specifically, Forever Living Products by helping them to understand the influence
of advertising on consumer buying behavior, various media of advertisements
that can be used to advertise cosmetics products, ways in which advertisements
influence consumer buying behavior and how advertisements influence consumer
buying behavior.
The findings of this study added to the existing body of
knowledge on the influence of advertising on consumer buying behavior by
provide future researchers with a source of empirical literature on the same or
similar topics. Also, successful completion of the study helped the researcher
to partially fulfill the requirements for the award of a Master’s of Science in
Marketing Management offered by Mzumbe University.
The researcher faced time constraints since
this is an academic paper and needed to be completed according to the academic
almanac of the university, hence it was a short period of time for conducting
the study. To address this constrain the researcher had to manage time used for
data collection by using interview and
questionnaire methods which helped to collect data in short period of time. The
researcher was willing to cover more respondents; however it was possible due
to financial constraints due to the fact that the amount available for conducting
the study is not sufficient. To solve financial constrain the researcher had to
hire people who helped to distribute and collect questionnaires while the
researcher interviewed other respondents.
The study focused on how advertising influences consumer
buying behavior for cosmetic products promoted by Forever Living Products. The
study was conducted in Kinondoni District in Dar es Salaam and involved 100
members of staff working for Forever Living Products Company and consumers of
various brands of Forever Living cosmetics products
The study consists of five chapters. Chapter one offers
introduction, research problem, research objectives and research questions. The
second chapter offers literature review while the third chapter consists of methodologies
that were used in the study. The fourth
chapter offers findings and subsequent justifications in analysis while the
fifth and last chapter offers conclusion, recommendations and suggested areas
of further study.
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