IMPACT OF ADVERTISING ON CONSUMER BUYING BEHAVIOUR

Abstract

This study aimed to establish the impact of advertising on consumer buying behaviour by focusing on Adron Homes and properties LTD. 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 behavior The study was conducted in Abuja. 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. Adron Homes and properties LTD uses event, word of mouth, magazine, Facebook, DVD, trade fair, T Shirt and Website advertising. Advertisements used by . Adron Homes and properties LTD 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 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.

Chapter one

Introduction

1.1Background 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 viewer’s mind, since its exposure is much broader (Katke, 2007). 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. 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. Advertising can influence the attitude of individual behavior, life style in the long run as well as the culture of the country (Latif & Abideen, 2011). 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 (Hussainy, Riaz, Kazi & Herani, 2008). 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 (Latif & Abideen, 2011). It impacts on consumer behavior. Advertising impact on brands change frequently in peoples memory. 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 (Abideen & Latif, 2011) 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 thousand 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 this 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 (Abideen & Latiff, 2011)

Statement of the problem

A great number of consumers seem not to appreciate the manner producers promote their product, especially the lack of knowledge of the products being promoted. Some consumers expect advertisers to bring in services program for all the categories of consumers. The role of advertising in determining consumer behaviour and brand preference has been undermined by many firms over the years. Some firms spend huge amount of money advertising their product and still claim about indifference in their sales volume. This misconception seems to be based on an entirely understandable initiative reaction. How can advertisers claim that advertising does not increase consumption and sales and still spend so much money on it? According to Ambler (2000), advertising has major influences on consumption volume of consumers, as well as sales volume. Adverts may not necessarily bring about huge volume of sales in the short-run, but will certainly increase sales and profits in the long run if done properly. Even if some marketers believe that accurate knowledge about consumers, how they buy, why they buy and where they buy is unnecessary as it is possible to manipulate hopeless buyers into parting with their money in return for products that they do not want. Successful advertisement skillfully engages to mind of the consumer and motivate him to buy the product advertised. Moreover, advertiser sell more than products, it sells brand and if you are a large manufacturer of soap, you will not spend 16 millions of advertising money to encourage people to buy just any soap. You want them to buy your soap and you want advert that will some how convince the public that your brand of soap is more desirable than any other. Global companies that use a large number of agencies located in different countries and serving different divisions have suffered from uncoordinated advertising and image diffusion. Some large companies now use only a few agencies or event one that can supply global advertising and the result is integrated and more effective marketing communications and a much lower total communication cost. In the light of the above statement, this research work will look at how effective advertising works on consumers buying behaviour. It will also assess the impact of advertising towards solving the invading problems faced by companies to maintain their leadership position in the business environment. Based on this background the researcher wants to investigate impact of advertising on consumers buying behavior. Using Adron Homes and properties LTD, Abuja

Objective of the study

The objective of the study is to ascertain the impact of advertising on consumer buying behavior. Using Adron Homes and properties LTD, Abuja. The specific objectives are;

1. To identify media of advertising used to advertise Adron Homes and properties LTD, Abuja
2. To determine ways in which adverting influence consumer buying behavior
3. To establish how different advertising influence consumer behavior

Research Question

The following research questions are formulated

1. Which media of advertisement is used to advertise Adron Homes and properties?
2. In which ways does advertising influence consumer buying behavior?
3. How elements of advertising influence consumer behavior?

Significance of the study

The study will give a clear insight on the impact of advertising on consumer buying behavior. The study will be beneficial to students, companies and the policy makers. The result of this study will help organizations especially Adron homes and properties the way advertising help to promote new product  and the kind of media to be advertised with. The study will also serve as a reference to other researchers that will embark on the related topic

Scope of the study

The scope of the study covers impact of advertising on consumer buying behavior. The study will be limited to Adron homes and properties LTD, Abuja

Limitation of the study 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

Related Project Topics :