A STUDY OF THE EFFECT OF ADVERTISING ON CONSUMER BUYING HABITS FOR AIRTEL NIGERIA PLC

A STUDY OF THE EFFECT OF ADVERTISING ON CONSUMER BUYING HABITS FOR AIRTEL NIGERIA PLC

(A Case Study of Airtel Nigeria Plc. Abuja)

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. (Bodafithan (2000).Sponsors of advertising are typically businesses wishing to promote their products or services. Advertising is differentiated from public relations in that an advertiser pays for and has control over the message. It differs from personal selling in that the message is non-personal, i.e., not directed to a particular individual. Advertising is communicated through various mass media, including traditional media such as newspapers, magazines, television, radio, outdoor advertising or direct mail; and new media such as search results, blogs, social media, websites or text messages. The actual presentation of the message in a medium is referred to as an advertisement, or “ad” or advert for short.

Commercial ads often seek to generate increased consumption of their products or services through “branding“, which associates a product name or image with certain qualities in the minds of consumers. (Arnold, E.J., & Thompson, C.G. (2005).On the other hand, ads that intend to elicit an immediate sale are known as direct-response advertising. Non-commercial entities that advertise more than consumer products or services include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may use free modes of persuasion, such as a public service announcement. Boston. McGraw-Hi, Dunn, S. W., &Barben, A. (1987).Advertising may also help to reassure employees or shareholders that a company is viable or successful.

Modern advertising originated with the techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, considered the founder of modern, “Madison Avenue” advertising.

Any ad (no matter what format it takes) is a paid, public (meaning non-personal) announcement that is a persuasive message made by an identifiable sponsor of a company, organization, or person to existing (or potential) customers or a non-profit member base.

Advertising is only one component of the overall marketing process. Advertising is that part of marketing that involves directly getting the word out about your business, product, or service to those you want to reach most. Nearly all ads will have the name of the sponsor (and very often a recognizable logo).

Advertising includes the placement of an ad in such mediums as newspapers, magazines, direct mail, billboards, TV, radio, and online. Increasingly, as the world of print advertising shrinks, people are finding more creative ways to advertise, such as displaying signs on top of taxis. Advertising, because it involves so many layers—including art and design, ad placement, and frequency—is the most expensive part of all marketing plans. (Ayanwale, Alimi&Ayabinpe, 2005)

The primary aim of advertiser is to reach consumers and influence their awareness, attitude and buying behavior. Their major preoccupation is to keep individuals interest in their product through spending on advertising. They also need to understand what influence customers behavior. Advertising has the potential to contribute to brand choice of consumers (Howart .J. 2002). It impacts on consumer behavior. Brand memories consist of those associations that are related to brand name in consumer’s mind. These brand cognition influence consideration, evaluation and final purchase (Romaniuk& Sharp,2003). Consumer behavior should be analyzed for effective advertising, to know why consumers behave in particular ways under certain circumstances. And also to know the factors that influence consumer behavior, especially the economic, social and psychological aspects.These advertisement strategies influence consumer buying behavior(Howart .J. (2002)

1.1     STATEMENT OF THE PROBLEM

Organizations face particularly tough hurdles when it comes to advertising and consumer buying behavior in their business, especially in the beginning. Successful advertising is crucial to the success of any business. As with many organizations, however, you may face budget challenges that tempt you to curtail advertising. When it is most needed without proper preparations, appropriate advices and extensive researches you will run into other problems with advertising as well that create obstacles that could be difficult to overcome. Advertising takes many forms ranging from word of mouth referrals to traditional prints, ads in newspapers to online marketing techniques. Advertising should be focused on bringing new customers, encouraging repeat business and promoting a positive image of the company.

1.2     OBJECTIVE OF THE STUDY

This study attempts to determine the impact of advertising on consumer buying behavior. The objectives of the study are to:

1. Identify the effect of emotional response on consumers buying behavior.

ii.   Determine the effect of Brand awareness on consumer buying behavior.

iii. Identify the effect of sensory stimulated advertising on consumer buying behavior.

1.3     STATEMENT OF HYPOTHESES

The following hypotheses were formulated to guide this study

Ho: Emotional response does not positively affect consumer buying behavior.

Hi: Emotional response towards brand positively affects consumer buying behavior.

1.4     SIGNIFICANCE OF THE STUDY

The study would be of great benefit to the following stakeholders

Companies/Organizations: The study would help organizations to find possible measures/strategies to advertise their products and services. It would be of great interest and valuable to marketing managers and help them to sell their products/services and make reasonable profits to the company/organization Consumers: It will create brand awareness to motivate them emotionally to buy the product.

1.5     SCOPE OF THE STUDY

The study examined the impact of product advertising on consumer buying behaviours. The scope of this study would be limited to Airtel Nigeria Plc. This research work studied advertising only with respect to consumer behavior. This study will help to give recommendations on how Advertising and sales promotion, has effect on consumer buying and to see how it helps company to increase company sales and influence consumer buying habits.

1.6     LIMITATIONS OF THE STUDY

There are many constraints and factors that were encountered by the research during the research work. The prominent once are:

1. Financial Constraints: The cost of materials necessary to aid in carrying the research are very expensive, a lot of field work ought to have been done, but for inadequate finance, a limited coverage of the company understudy was embark upon.
2. Time Constraints: Lack of time contributed greatly affected the quality of work, the academic session very short and the time given to submit the project work also short. Most of the information needed by the researcher in that information needed by the researcher in that company was not accessible for the sole reason of short notice. The study is limited to Abuja bottling company or plant because of time constraint.
3. Biased Response: Biased response by the respondent was a problem encountered by the research when collecting data.

1.8     OPERATIONAL DEFINITION OF KEY TERMS

The following terms are defined below for clear understanding of the topic in this project.

1. ADVERTISING: It is the non-personal selling of goods and services through the mass media which includes newspaper, magazines, radio and television, postal and are fully paid for by an individual.
2. INFLUENCE: Power to produce and effect action of natural forces.
3. CONSUMER: Person who bring goods and services.
4. BEHAVOUR: Way of treating manner or way of acting.
5. MEDIA: Channel through which the message or information passes from the producer to the final consumer e.g. Television, newspaper, magazine etc.
6. ADVERTISEMENT: Is the person or organization that usually initiates the advertising process or the sponsors of the advert.
7. ADVERTISING AGENCY: IS an independent company that provides special advertising services. The advertising agency plans and  executes entire advertising campaign.
8.  AUDIENCE: The target audiences are the target customers or buyers of the organization producing the products.