The Effect Of Advertisement On The Demand Of Consumers Goods (A Case Study Of Seven Up Bottling Company)

Project and Seminar Material for Marketing

The Effect Of Advertisement On The Demand Of Consumers Goods (A Case Study Of Seven Up Bottling Company)


Abstract


This research work was designed to assess the effects of advertisement on the demand for consumer goods. Chapter one of this work was devoted to the introduction of this work. It gives a short background of advertisement, the statement of the problems, and significance of the study and limitation of the study. Chapter two and three has to ode with the literature review and the methodology employed for the study. Chapter four deals with analysis, summaries of data collected while chapter five reveals the findings of the research and make appropriate recommendation. The data were collected by means of questionnaire titled. The Effect of Advertisement on the demand for consumer Goods. A case study seven-up bottling company. The study consisted of 20 respondents who were randomly selected. The analysis of the data collected reveals that people like advertised goods because it informs them about the quality and existence of such goods in the market. The study also reveals that how a product is accepted or demanded for depends quickly and completely on advertisement.


Chapter One


Introduction

Background of the Study

Advertisement is the collective term for public announcement designed to promote the scales of specific commodities or services that are meant to educate, inform and persuade the entire public by means of difference methods such as Radio, Television, Newspaper, Journal and Magazines etc.

Sometime, we often get infuriated when listening or watching a programme and all of a sudden an advertisement is intro0duce into it, (programme) telling us about business in which individual advertise their products in an attempt to make for awareness and persuade consumers to buy them. Various mineral drinks advertisement is mostly carried out in advertising media. Notably, among which are radio, television, magazines, bill-boards, newspapers etc. the advertisement tries to persuade and convince their target audience of the differential benefit derivable from consumption of the brand of seven-up.

Advertisement went their perspective consumers to be convinced by impressing upon them that their own brand of seven-up drink is the best in town in terms of its quality contents and satisfaction. Some slogans is been written on calendars given to customer by their producers. Such slogan is intended to assure the perspective hungers and consumers of the benefits of satisfaction derivable. This enable the consumer buys expectation of the product and not the product itself. Furthermore, a theory holds that a consumer satisfaction is a function of the consumer product expectation and product performance. This is say that if the products match expectations, the consumer is highly satisfied if it falls short, the consumer is dissatisfied.

In essence therefore, producers generally make or produce satisfaction and not the physical product alone. Against this background, we can presume that seven-up consumers buy the product hoping it will satisfy the desired intention consumer buy whatever other satisfaction derived from its consumption or usage and not the physical product.


Statement of the Problems

Inspite of criticism and accusation leveled against adverting industry. In recent times, for instance, the investment in adverting in Nigeria has become so much that people started questioning the rationale behind such huge investments. For example “Tom Omo Tage” among other things said the public hear for instance, of some “goods” half a million naira going an advertising on ordinary chocolate beverage every single year or young great advertising limited is already making over seven million naira (N 7,000.00) annually.


Purpose of the Study

This study is aimed at critically examining the worth of such efforts in terms of consumer attitude. To these effects, the study will focus on

  1. Examining whether advertising of seven-up account for brand-switching
  2. Examining other factors responsible for negative or positive perception of advertising by consumers.
  3. Investigating the extent to which advertising determines the patronage of seven-up by consumer

Significance of the Study

It is hoped that this study will be useful in selecting appropriate media for their target market. It is aqlso0 hoped that5 it will help the producers to tailor their advertisement claims as well as product to reflect the attributes most valued by consumers.

This increasing patronage and the frequency in brand switching among customers.


The Research Questions

  1. How do other factors apart from advertising influence consumer patronage of seven-up?
  2. How does advertisement determine consumer patronage of seven-up?
  3. Does brand switching actually results from advertisement?
  4. To what degree if any, does consumer believe in advertising claims in respect of seven-up?

Scope of the Study

The study will be confined to advertising of seven-up products the effect on consumer’s perception. The researcher also explored the assumption of advertising related to patronage and brand-switching amongst consumers.


Definition of Terms

Advertising:

To make goods and services known to the public through the information media.

Demands:

The acquisition of goods and services by payment of money or its equivalent consumer goods

Patronage:

This is the habitual purchase by a consumer of a specific product brand.

Consumer:

Those who make use of goods and services

Brand-Name:

The name used to identify a specific product type e.g. Seven-up bottling company

Advertising Chains:

They are attributes or specific to their advertised product or what advertisement say consumer will benefit from the product


Chapter Five


Summary, Conclusions and Recommendations

5.1 Summary

This research work is on The Effect Of Advertisement On The Demand Of Consumers Goods.

Chapter one introduces the background information about the research work and the statement of research problem gives the various problems that necessitated the research work. The objectives of the study were enumerated showing the objectives to be achieved at the end of the study. In the significance of the study, we would know how important the study will be to management of companies, government and students of higher learning or any interested persons or agencies. The horizon of the study was explained in the scope and limitations of the study. Finally, under chapter scheme, all the chapters were summarized in a nutshell for easy understanding.

Chapter two is on literature review and it deals with the existing literature on the effects of advertisement on consumer buying behaviour. It includes the definition of advertisement where advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.

Nwokoye (2000) explained that advertising has become a major form of selling, if not only supports form of selling but also serve as the only selling tool used to inform target audience about producer product. He said in the ancient times, the most common form of advertisement was by the word of mouth, however commercial messages were found in the runs of Pompeli. In setting advertising objectives, it should be based on past decisions about the target market, positioning and marketing mix. The following are the classification of advertising objectives namely: informative, persuasive, reminder and reinforcement advertising. When setting advertising budget Nwokoye (2000) gave five (5) specific factors to be considered i.e. stage in the product life cycle, market share and consumer base, competition and clutter, advertising frequency and product substitutability.

Gary (1992) observed that when developing advertising strategies four (4) steps are followed to develop a creative strategy: message generation, message evaluation and selection, message execution and social responsibility review. According to Irwing (1997) the major steps in media selection are: decoding on reach, frequency and impact, choosing among major media types, selecting specific media vehicles and deerding on media timing.

Kotler (2004) said the advertising programme should evaluate both the communication effects and the sales effects of advertising regularly. The sales effect of advertising are often harder to measure than communication effects and sales are affected by many factors besides advertising such as products features, price and availability.

Kotler and Keller (2012) said one of the common views in understanding consumer behaviour is it has become a factor that has a direct impact on the overall performance of businesses. Thompson (1990) identified four (4) theories of consumer behaviour namely: rational actor’s theory, new institutional economics, process theory and the bullwhip effect.

Five stages model of consumer decision making has been studied by a number of other researchers, but Blackwell (2006) identified the five (5) stages of consumer decision making process as: problem/need recognition, information search, evaluation of alternatives, purchase decision made and post- purchase evaluation. Furthermore, a number of researchers have been carried out by scholars on the factors affecting the consumer buying behaviour. Wiedermann (2007) classified them into internal and external factor, while Wiver (2009) divided them into social, personal and psychological factors.

Chapter three which is on research methodology includes the introduction to the chapter. In the research design, we would know that it’s a survey research which purpose is to examine the effect of advertisement on consumer buying behaviour with a study of Honeywell Mill Nigeria Plc. Under sources of data collection, the researcher collected both primary and secondary data. For the population and sample, the population of the study covers all the workers of Seven bottling Company, where a selected sample of twenty (20) employees working in the marketing department were taken from the entire population. For the data collection methods, the researcher used both the questionnaire schedule and personal interview in collecting information from the respondents.

In the method of data analysis, the researcher presented data in tabular presentation based on percentages in analyzing responses. In testing of hypotheses, the statistical technique employed is the chi-square (X2) method, which is used to test the relationship between the variables concerned.

Chapter four involves data presentation and analysis, it is where data collected were tabulated using percentages to analyse each table. The research hypotheses raised in the opening chapter were tested and all two (2) hypothesis formulated were accepted as true.

Chapter five is on summary, findings and conclusions and recommendations of the whole research work. For the summary, all the chapters were summarized chapter by chapter, while the findings and conclusions consist of the findings observed by the researcher during the study. The recommendations were based on the findings observed before useful suggestions will be given as recommendations to management of blue chips companies, governmentand students of higher learning or any interested persons.


5.2 Conclusions

With respect to the analysis and the findings of this study, the following conclusions emerged;

Generally, businesses say that advertising provides a public service because it gives them information about their products and in its broadest sense; it is the vital conduct for information between producers and consumers. Of course, we all know that advertising does more than merely inform, its job is to sell. It is not objective or neutral and successful adverts skillfully engage the mind of the consumer and motivate them to buy the product advertised.

Furthermore, communication does not only enhance mutual understanding and social integration of communities. It foster harmonious relationship that contributes immensely to the overall-social economic, political and well as the cultural development of the human society.

Finally, advertisement campaign worldwide influence the behaviours and attitude formation of consumers not only in Nigeria but also worldwide. The consumers of products have their motivational sources which are advertisement and it’s motivating them to materialize the purchase of durables. The consumers are induced significantly by advertisements when the target is on quality and price. Purchase attitude and behaviour is influenced by variety of advertisements which cover product evaluation and brand recognition.


5.3 Recommendations

Based on the findings and conclusion, the following recommendations are made:

  1. The management of the organisation should evolve a strategy that would fully embrace advertisement as a promotional mix in the marketing of their products.
  2. The efficiency in carryout advertisement in the company depends on the experience and mental alertness of the personnel involved in the advertising campaign for the organisation.
  3. The organisation should intensively monitored customers satisfaction through client complaints and suggestions, because their customers are very vital to the growth and survival of the company.
  4. The company should conduct quarterly marketing research, so as to gather information as regard the ways to meet projected sales and profit level set by them.
  5. There is need for a constant meeting between the management and its customers, so as to establish a good relationship in order to find answers to most of the customers complains.
  6. The management of the organisation should try its possible best to use the promotional mix i.e. advertising,sales promotion, personal selling to pursue its objectives in the target market.
  7. The staff employed in the sales and marketing department should be given adequate training on consumer behaviour, which will help to boost their effectiveness when dealing with customers.

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