A Study of the Effect of Advertising On Consumer Buying Habits for Telecommunication Services in Abuja Metropolis

A Study of the Effect of Advertising On Consumer Buying Habits for Telecommunication Services in Abuja Metropolis

 (A Case Study Of Airtel Nigeria Plc. Abuja)

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

The impact of mass communication is felt all over the globe through advertising, newspaper, internet, music, films, videos, magazine, movies and billboards. Among these media, advertising is the one that has lasting impact on the viewer’s mind, since its exposure is much broader (Bodafithan (2000)). Advertising is the main source of communication tool between the producer and the consumer. Advertising is a subset of promotion mix and is one of the 4ps in the marketing mix which comprise product, price, place and promotion. Advertising is a promotion strategy which serves as a major tool in creating product awareness in the mind of the consumer to take purchasing decision.Boston. McGraw-Hi, Dunn, S. W., &Barben, A. (1987).Advertising, sales promotion and public relations are mass communications tools used by marketers. Advertising through mass media influences audience, but television has mass reach and is the strongest medium of advertising.

A company can enhance the brand of their product by investing in promotional activities in order to compete in a consumer market that is dominated through advertising (Arnold, E.J., & Thompson, C.G. (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 (Ayanwale, Alimi&Ayabinpe, 2005).

Advertising also creates advertisement which carry emotional bond with consumers. Positive emotional appeals also provide a strong brand cue and stimulate category based processing. With successful categorization, the effect and beliefs associated with this category in memory are translated to the objective itself. Consumers try to categorize the brand association with the existing memory, when thousands of products are faced by them and might reposition memories to a brand image and perception towards new products. In this way, they can categorize latest information in particular brand and shore accordingly in their memory. Some organizations do not attach importance in advertising their products and these have adverse effect on their output in terms of sales of product. Others use different advertising media like television, internet (face book; email) newspaper, billboard, magazine etc. to convey their product message to their target audience. Companies spend major part of their budget on advertising strategies to promote their products/services. 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. Ascertain the effect of environmental response towards brand on consumer buying behavior.

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

iv. 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 does positively affect 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

In the course of carrying out this research work, certain factors militated against the smooth operation of the work. The exercise was greatly limited due to some factors. Some of the factors include: 
–       Lack of funds 
–       Time constraints 
–       Inadequate research materials to collect data such as textbooks, journals, magazines 

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.

 AUDIENCE: The target audiences are the target customers or buyers of the organization producing the products.