ADVERTISING AND CONSUMER BUYING BEHAVIOUR

  • Chapters:5
  • Pages:96
  • Methodology: Descriptive and Inferential Statistics
  • Reference:YES
  • Format:Microsoft Word
(Business Administration and Management)
ADVERTISING AND  CONSUMER BUYING BEHAVIOUR
ABSTRACT

The purpose of this study was to focus on advertising and consumer buying behaviour. The aim of this research work is to examine the effect of quality advertising, celebrity endorsement and environmental response on consumer buying behaviour. This study employed qualitative research instrument through the administration of questionnaires to one-hundred (100) of the customers and consumers of the soaps products. The administered questionnaires were analyzed using descriptive statistics, Cronbach Alpha test, Pearson correlation and weighted least square regression techniques and test of equality.
The empirical results showed that quality advertising had a significant negative effect on consumer buying behaviour at 5% level of significance. This therefore means that we should accept the hypothesis that quality advertising had a significant effect on consumer buying behaviour. Celebrity endorsement had a significant positive effect on consumer buying behaviour at 10% level of significance. This therefore means that we should accept the hypothesis that celebrity endorsement had a significant effect on consumer buying behaviour. Environmental response had an insignificant positive effect on consumer buying behaviour even at 10% level of significance. This therefore means that we should reject the hypothesis that environmental response had a significant effect on consumer buying behaviour.
The study recommended that management of marketing organizations should always embrace quality advertising to enhance consumer buying behaviour. It is therefore suggested,further empirical work should be conducted in the areas of advertising and consumer buying behaviour by incorporating potential variables that might enhance consumer buying behaviour.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1Background to the Study    -    -    -    -    -    -    
1.2 Statement of the Problem    -    -    -    -    -    -    
1.3 Research Questions    -    -    -    -    -    
1.4 Objectives of the Study    -    -    -    -    -    -    
1.5Significance of the Study    -    -    -    -    -    -
1.6 Scope of the Study    -    -    -    -    -    -
CHAPTER TWO: LITERATURE REVIEW
2.1Introduction    -    -    -    -    -    -    -
2.2 The Concept of Consumer Buying Behaviour    -    -    -    -
2.3 Quality Advertising and Consumer Buying Behaviour    -    -    
2.3.1 Celebrity Endorsement and Consumer Buying Behaviour    -    
2.3.2 Environmental Response and Consumer Buying Behaviour    -    -
2.4Theoretical Framework    -    -    -    -    -    -    -    
2.4.1Defining Advertising Goals for Measured Advertising
         Results (DAGMAR) -        -    -    -    -    -
2.4.2 Lavidge and Steiner’s Hierarchy-of-Effects Theory        -    
CHAPTER THREE: METHODOLOGY
3.1 Introduction    -    -    -    -    -    -    -    
3.2 Research Design    -    -    -    -    -    -    -
3.3 Population of the study    -    -    -    -    -    -    
3.4 Operationalization and measurement of variables    -    -    -
3.5 The Research Instrument    -    -    -    -    -    -    -
3.6 Sources of  Data    -    -    -    -    -    -    -    -
3.7 Method of Data Analysis     -    -    -    -    -    -    -
CHAPTER FOUR: DATA PRESENTATION , ANALYSIS AND INTERPRETATION OF RESULTS
4.1Introdution        -    -    -    -    -    -    -    -
4.2 Data Presentation and Analysis for Sample Background Variables    -
4.3 Data Presentation and Analysis for the Variables        -    -    -    
4.3.1 Reliability Test    -    -    -    -    -    -    -    -
4.3.2 Correlation Matrix    -    -    -    -    -    -    
4.3.3 Weighted Least Square Regression Result    -    -    -    -
4.4 Discussion of Findings    -    -    -    -    -    -    -
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Introduction    -    -    -    -    -    -    -
5.2 Summary of Findings    -    -    -    -    -    -    
5.3 Contribution to Knowledge    -    -    -    -    -
5.4 Conclusion        -    -    -    -    -    
5.5 Policy Recommendations and Implications    -    -    -
Bibliography    -    -    -    -    -    -    -
Appendix    -    -    -    -    -    -    -    
LIST OF TABLES
Table 3.4:  Measurement of the independent and dependent variables    -
Table 1:  Demography of Respondents    -    -    -    -    -
Table 2:  Reliability test    -    -    -    -    -    -    
Table 3:  Correlation result    -    -    -    -    -    -    
Table 4:  Weight regression result    -    -    -    -    -    
CHAPTER ONE
INTRODUCTION
1.1    Background To The Study
Advertising is the bedrock of any producing or marketing firm that want to stand the test of time (Hollenson, 2008). The purpose of advertising is to inform the public of a product, good or services. Presently, advertising has been seen as a great tool for firms to inform the public about who they are, what they are, what they want to do, and how they intend going about it (Ijewere 2009).  Advertising creates awareness of a good or product as it affects the purchase intentions of consumers toward the product. However, psychological and environmental factors may also affect consumers’ taste and preference for a product as it is vulnerable to changes overtime. Thus, advertisements plays a crucial part in prompting consumers’ choice in relation to taste and preference.
Consumers are rational regarding their purchases, as they desire optimum satisfaction from consumer goods. Thus, they tend not purchase commodities whose value of satisfaction is below the additional money expense on the product. The quantity of goods demanded is subject to the value of satisfaction consumers derive from additional expenses on the product. According to Sloman and Wride (2007) “rational consumers will spend on a good till their gains equal the cost they pay for the product”. Advertising is perceived differently. They are convey through the various medium which includes; television, magazines, newspapers, internet, radio and bill boards (Sharma & Sharma, 2009). Hence, advertising have significant impact on the buying activities of the customers.  
Advertising are more effectual on goods with inherent features. These features are unknown at the point of purchase and this is discovered upon consumption. Also, when there is need of differentiating a product it becomes necessary to carryout advertisement. So also is it essential to carry out advertisement on products with emotional influence on purchase intention such as to protect healthiness or enhance social position, it is however worthwhile to advertise such product. These conditions make the demand for the product more inelastic. Consumers tend to be insensitive to price when they attach sentiments to a product. As this is beneficial to the firm as it improves the sales from the pricing of their goods (Borden, 1942). Advertisements on some items have less effect on the consumers and in turn do not generate increased sales; for they are consume on a daily basis. However, there is an indirect relationship between higher consumption and advertisement. Advertising tend to be less effective in relations to items with higher consumption (Doyle, 1968). Advertising has a long term dynamic effect on consumers’ purchase and sales of producers. The sole aim behind a firm’s adverts is to create awareness for its product. This may likely affect the existing and imminent sales of companies as consumers tend to act favourably on the adverts. As claimed by Sharma and Sharma (2009), “this dynamic effect of advertising explains that firms usually advertise a product the most at the entry”.
Sometimes, producers advertise their goods with aim of improving sales so as to gain economies of scale and control price. Advertising also ensure product recognition and recall in the market. It is also necessary in the introductory phase of new products. In its absence, firms may find it difficult to penetrate into existing markets with already established brands (Sloman & Wride, 2007) Advertising has repel effect as it increases output and production cost. This must be considered when evaluating the cost and value of extra money on advertisement. The appropriate resolution is to increase advertising to the point where the marginal revenue from additional expense on advertisements equates its marginal cost (Pindyck & Rubinfield, 1995). The aim of this study is to discover if the continued expansion in the soap industry or market is due to the advertisements made on soap products.
1.2 Statement Of The Research Problem
Advertising is a means used to fulfill the conventional desire of companies to meet selected population in order for its products to receive a level of exposure and stimulate patronage. The traditional role of advertisement which is to increase the demand for goods, increase sales revenue and profits of the local firms and has deteriorated (Sundarsan, 2007). Overtime, advertising has been a subject of discussion over decades.
Going by the space of time, marketing organizations are becoming more and more concerned with the medium of advertisement and making substantial efforts to shape affirmative consumer buying behavior by constructing positive perception in mind of consumers through means of effective advertisement policies and regulations that would effectively yield results (Muhammad, Muhammad, Hafiz, Unzila & Ayesha, 2014). Despite the economic hardship facing organizations, marketers are not ready to compromise on advertisement budgets and consumer needs. Pughazhendi, Thirunavukkarasu and Susendiran (2011) examined celebrity based advertisements on the purchase attitude of consumers towards durable products in India. Similary, Ayanwale, Alimi and Ayanbimipe (2005) conducted a study on the influence of advertising on consumer brand preference taking a case study of advertisement of Bournvita food drink in Nigeria. However, this research would contributes to existing body of knowledge by looking at the instances that make marketers to understand the significant impact of advertisements on consumer buying decisions and behaviour. Do consumers have a good retentive memory about advertisements claims on impulse buying? What are the other possible factors that bring about customer intention to buy a product?
1.3 Research Questions
In the light of the above mentioned research problem, this study sought to answer the following specific research questions:
(i)    Does quality advertising have an effect consumer buying behaviour?
(ii)    Does celebrity endorsement has an effect on consumer buying behaviour?
(iii)    Does environment response have an effect on consumer buying behaviour?
Hypothesis of the Study  
1,   Ho: Quality advertising has an effect on consumer buying behaviour
H1: Quality advertising has no effect on consumer buying behaviour
2, Ho: celebrity endorsement has an effect on consumer buying behaviour
H1: celebrity endorsement has on consumer buying behaviour
3, Ho: environment response has an effect on consumer buying behaviour
Hi: environment response has no effect on consumer buying behaviour  
1.4    Objectives of the Study
The broad objective of the study is to find out the effect of advertising on consumer buying behaviour. The specific objectives are to:
(i)    examine the effect of quality advertising on consumer buying behaviour?
(ii)    examine the effect of celebrity endorsement on consumer buying behaviour?
(iii)    examine the effect of environment response on consumer buying behaviour?
1.5    Significance of the Study
The study will be relevant to the following groups:
MARKETING ORGANIZATIONS: This study would be of great relevance to marketing organizations on the best advertising methods to adopting in creating general awareness of a product brand that would arouse the purchasing power of the consumer. This will also enable them to equip themselves with sound product and market strategies to make them obtain a larger percentage of the market
CONSUMERS: The study would be helpful to consumers to make the right choice in buying a particular brand of products that would meet their consumption needs. Also assist them in having an improved knowledge of their environment.
MARKETERS: This research would assist marketers or advertisers of soap products to appreciate the potency of consumer behavior as it relates to advertising, and develop better ways and techniques to deploy in designing advertising messages that would appeal to consumers.
FUTURE RESEARCHER: This study would provide better understanding of consumers attitude towards advertising and also contribute to the body of knowledge which seems scanty by documenting the effect advertising has on consumer behavior since the aim of advertising is to instigate the actual behavior of the targeted audience.
1.6 Scope of the Study
This study would focus on the effect of advertising on consumer buying behaviour in Benin-City. Furthermore, the population of this study consists of customers and consumers of various soap products within the University of Benin, Ugbowo Campus. A simple random sampling technique would be used to administer questionnaires to 100 of the customers and consumers of various soap products which would form the sample size for the study.


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Project Details

Department Business Administration and Management
Project ID BAM0685
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 96 Pages
Methodology Descriptive and Inferential Statistics
Reference YES
Format Microsoft Word

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    Project Details

    Department Business Administration and Management
    Project ID BAM0685
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 96 Pages
    Methodology Descriptive and Inferential Statistics
    Reference YES
    Format Microsoft Word

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