A STUDY ON ADVERTISING AND ITS INFLUENCE ON CONSUMER BUYING BEHAVIOR

A STUDY ON ADVERTISING AND ITS INFLUENCE ON CONSUMER BUYING BEHAVIOR

A CASE STUDY OF MOBILE TELECOMMUNICATION LIMITED ABUJA, NIGERIA

CHAPTER ONE: INTRODUCTION

1.0     BACKGROUND OF THE STUDY

Advertisement is one of the major tools organizations use to stimulate consumers demand for goods and services. In order to know the impact of advertisement on consumer’s behavior, it is necessary to know what advertising itself is and its goal and purpose. Advertisement is a paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor Rosenblatt (1977). Advertisement is a process, it is a programme or series of activities necessary to prepare the message and get it to the intended market. Another point is that the public know-how is behind the advertising because the sponsor is openly identified in the advertisement and also payment is made by the sponsor to consider, differentiate advertising propaganda and publicity. The advertising agencies occupies itself with devising messages to suit the potential consumers considered as a channel while the output as his decision to buy or not Ralph, (2005). The major goals of advertising is to communicate ideas or promote goods and services, its major objectives is to facilitate the work of the salesperson by stimulating demand. Advertising is generally accepted as an essential service to the industry and the public. Its effectiveness depends largely on the audience, it is the way audience perceives the information that is very important Baron, (2006). The advertiser here has to consider the usefulness of the goods and services to his audience and allow them to select what will satisfy them. Advertising as an established factor in marketing mix help in marketing and non-marketing among which include the announcement of product, or services to expand the market to new buyer to announce a modification on a product, incite inquiries test a medium, announce location of stock list, educate customers, retrieve lost sales, recruit new staff, attract investors to make a special offerOkigbo (2001). Advertisement is carried out through magazines, newspaper, radio and television and outdoor displays (posters), direct mail, directories and one of the most used now is social media. whatever form of advertising taken an organization, the basic principles is to deliver the right message to merit the right audience at the right time and at the lowest possible cost, and to achieve positive result Collins, (2005). Today advertising is constructed to make a favorable impact on the behaviours of consumers to patronize organizations offerings. Most people use advertising at sometime, either privately or in business. In addition, most people respond to advertisements and so enjoy the choices available to them in every sphere of life this in many ways have informed the choice of one product over another.

Advertising according to Bovee&Arens (1995)  can be classified into the following:

PERSUASIVE:

This is also known as “hard sell” advertising. It is the most obvious kind which surrounded us in our daily activities, urging us to buy all manner of products or services.

INSTITUTIONAL:

This is also known as prestige or corporate Advertising. This form of advertising is design to create a proper understanding towards the seller and to build goodwill, rather than to sell a specific product or services.

INFORMATIONAL:

This form of Advertising is designed to inform consumers about the existence of a product or services and to inform the consumers of any change in price, quality, quantity or packaging. Trade advertising which is close to distribution, agents, wholesalers, retailers, mail order house servicing firms.

However, there are many special and specific reasons why advertising is used. The following examples can offer a broader idea to the versatility and value of advertising.

To announce a new product or services: Here prospective buyers are presented with details of a new product and this usually means a costly and dramatic launch for the particular product.

An existing product maybe given a “face lift” with me addictive, a retirement, a new finisher or casting or perhaps even a new package or container to test a medium is another reason for advertising. Some large advertisers prefer to test a new or united medium rather than accept or reject the claims made by space salesman.

The promotional aspect of advertising is not only restricted to business organization. Non-business organization also undertakes some form of advertising. Government organization such as ministry of information educates the public on government activities, ministry of health also advertises to educate the people on issues concerning their health. Advertising is used by philanthropic organization to raise funds for social welfare projects. So it can be seen that advertisement cuts across all aspect of social, political and economic life. It is necessary to say of this point that an advertising campaign is considered successful only when the consumer themselves have begun to appreciate and talking upKogal, (2007).

However, more would be discussed in details on advertising and importantly on the impact it plays on stimulating consumer’s behaviour towards patronizing a given product in the proceeding chapter of this research work.

1.1     STATEMENT OF THE PROBLEMS

Every business is established to solve a particular societal problem, to meet a targeted consumer’s need and to add value to people’s life. Advertising is a very important tool used not only to create awareness to people about the existence of a product or services, but it also  stimulate consumer buying behaviours by ways of getting them informed or remind them about a product, in many ways it  persuade them to purchase and use the products. As such, it becomes very important in marketing.

But in spite of the laudable impact of advertising in stimulating consumers behaviour, some organization often see advertising as an expensive venture and in some cases a waste of resources  and as such do not take advantage of its benefits to boost awareness of their products or services and also encourage demand for their products. Hence the subject matter of this research becomes an empirical problem worthy of investigation.

1.2     OBJECTIVES OF THE STUDY

The central objective of this research is to examine the impact of advertising on consumers with reference to MTN Nigeria.

1. To determine whether advertising influences the behaviour of MTN Telecommunication consumers.
2. To identify the effectiveness of advertising mediums employed by MTN Telecommunication.
3. To find out the militating factor against MTN Telecommunication.
4. To proffer solution to the identified problems.

1.3     RESEARCH QUESTIONS

The researcher finds it fit to formulate some research questions as a guide to this work.

1. Does advertising influence consumer’s behavior?
2. Does advertising create awareness to consumers?
3. To what extend can advertising influence consumers buying behaviour?
4. What media is often used by MTN Telecommunication to advertise her product?

1.4     STATEMENT OF THE HYPOTHESIS

HO: That advertising influence consumer’s behavior effectiveness in marketing goods.

H1: That advertising does not influence consumer’s behavior effectiveness in marketing goods.

1.5     SIGNIFICANCE OF THE STUDY

One of the cardinal significant ofthis studies is to discover if advertising has an influence on the choice and behavior of the consumer.

The study is of vital importance academically, since the result of the study will significantly fill a gap in the body of knowledge and will benefit not only organization but also consumers.

It also prepares the writer of the study in readiness to join the marketing and advertising of any business industry after his academic career.

Furthermore, the significance of the study cannot be over emphasized as it is a prime mover of any organization because advertisement serves as a tool use to blend and stimulate consumers towards patronizing a given organizations product or services to ensure growth and development.

1.6     SCOPE OF THE STUDY    

The study will cover an empirical examination of the impact of advertising on consumer’s buying behaviours in MTN Nigeria Plc. To this end, the study will equally identify low advertising influences the behaviour of consumers of MTN Nigeria as well as the advertising medium employ in advertising her products. The study will equally identify the problems militating against advertising in MTN Nigeria Plc.

1.7     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 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.