The Effect Of Radio Advertising On Consumer Purchasing Decision

Project and Seminar Material for Marketing

The Effect Of Radio Advertising On Consumer Purchasing Decision


Abstract


Radio is an ideal media for marketing fast moving consumer goods because it can reach wide targeted listener demographics in urban habitat. A large number of people listen to radio while commuting in urban areas and respond to the broadcast of various commercial messages. This study aims at analyzing the impact of radio advertisements on consumers buying behavior and attempts to determine the role of radio advertising on dissemination of information on the sales promotions. The impact of radio advertisements on the store choice and buying preferences are analyzed based on empirical investigation. The study reveals that shopping behavior of urban consumer at retail stores in response to radio advertisements is highly influenced by the physical, cognitive and economic variables.


Chapter One


Introduction

1.1 Background of the Study

Organization and individual are faced almost with the problems of having to make decisions. The decision making process is made difficult by the presence of uncertainty concerning the surrounding environment. For consumer, it was compounded by unlimited wants and scarce resources. Economists says that consumers are utility maximizes; this implies that they will use their limited resources to acquire a bundle of goods that will put them on the highest utility curve. Hence, consumers will choose the maximum value to cost ratio.

Consumer buying decision behavior is the decision processes and act of people involved in buying and using products.

Purchasing a product is not as complex as arriving at the decision whether to buy or not. this decision can be manipulated by organization through various promotional mix including advertising.

Advertising is a form of non-personal communication about an organization or its product that is transmitted to a target audience through a mass/broadcast medium such as television, radio and billboard e.t.c. but the medium that concerns this project is that of radio advertising.

The radio advertising is a medium of advertising which is oral or vocal and has the widest reach of all the media in Nigeria.Of all the marketing weapons, advertising has leading impacts on the viewers mind, as its exposure is much more effective (Katke, 2007). Marketing mix has four elements which are product, price, place and promotion. Advertising is a component of promotional mix, which is used to create awareness about products and services for influencing purchase decisions. Marketers use these types of tools for communication purposes. Advertisement evolved in the ancient times. Different societies used different types of symbols for the promotion of the products and services for attracting consumers. However, these pictures were used for promotion in a limited area. In modern times, advertisement has become an important way to promote products and services and is used for communication purposes. There is company which can become a market leader unless it invests significantly in promotion (Hussainy and Herani, 2008). The major aim of advertising is to impact on buying behaviour. However, this impact about brand is changed or strengthened frequently by peoples’ memories. Memories about the brand consist of those associations that are related to brand name in the consumer mind. These 2 brand cognitions influence consideration, evaluation, and finally purchases (Romaniuk and Sharp, 2004). Most companies conduct analysis of consumers’ behaviour.

The major objective of consumer behaviour analysis is to determine the factors that enhance consumers’ behaviour in particular circumstances like in economic aspects (Ayanwale and Ayanbmipe, 2005). Consumer behaviour analysis is helpful for an advertiser to understand the behaviour of consumer in buying in different situations. According to traditional hierarchy-of-effects models, effect of advertising exposure leads to brand cognition and cognition about the ad, which then leads to the attitude towards the ad and the brands until their purchase intent (Mendelson and Bolls, 2002). The purpose of marketing communications as posited by Awunyo-Vitor, Ayimey and Gayibor (2013) however is to enable companies to achieve their strategic marketing objectives some of which are to introduce new products, to induce present customers to buy more, to combat competition and to increase retail inventory for higher sales. Latifand Abideen (2011) accentuated that television is one of the strongest medium of advertising due to its mass reach. Firms use advertisements to increase demand for their goods or services by influencing customers’ preferences (Ashaduzzaman and Asif-Ur-Rahma, 2011). Similarly, Radio advert is also a mass communication tool (Fill, 2009) used to reach out to the masses. Advertising seems to be everywhere and ever present exerting a far reaching influence on the daily lives of people (Kotwal, Gupta and Devi, 2008). Katke, (2007) posited that of all the marketing weapons advertising is renowned for its long lasting input on viewers mind as its exposure is much broader. Advertising is “a paid non-personal communication from an identified sponsor, using mass media to persuade or influence an audience” (Richards and Curran, 2002).

Advertisement type is the first variable through which the advertisement is evaluated. All advertising in the media can be classified in five groups: (1) Products or service advertising, (2) public service announcement (PSA), (3) Issue advertising, (4) corporate advertising and (5) political advertising (Thorson, 1996). Each type of advertising has its own structure, through which the advertisement is clearly perceived. When the advertisement is classified in advertisement categories, the group in which the advertisement is classified provides an answer to consumers to a great extent (Rodgers and Thorson, 2000). Advertisement type also specifies the type of cognitive tools required. Advertisement is thus used to provide answers to the question of whether, what, when, where, how and from whom to purchase for. Telecom operators compete aggressively among themselves using all manner of media to influence customers who purchase their market offerings. Radio and television have been major media used by these telecom operators in the country to influence the buying decisions of consumers and also as a competitive tool (Okyere, Agyapong and Nyarku, 2011). In order to influence the customer in purchasing a SIM card from their network, these telecommunication companies engage in aggressive advertising mostly using the electronic media which comprises television and radio.

Currently, there are six telecom operators in Ghana and all these telecom operators have established offices in the Cape Coast Metropolis and selling mobile SIM cards, scratch cards or recharge cards and dealing with customer complaints and related issues. The six companies are Airtel, Tigo, Vodafone, Expresso, MTN and Glo. The products of these telecom operators are aired on daily basis on radio and television stations throughout the country. These telecom operators are heard on various campus radio stations and local television stations whenever there is an event such as a graduation or matriculation ceremony. During such events, these telecom operators buy air time, sponsor programmes and use the air time to promote their products. Huge sums of money are paid for such purposes. How are these investments able to achieve their intended purpose? Are these investments on radio and television adverts able to influence the buying decisions of customers as indicated above? Is advertising the only factor that influences the consumer to purchase from the advertised brand of these network operators? Various studies in the field of advertising have focused mainly on advertisement and consumer behaviour using varied study population: Kotwal, Gupta and Devi (2008) focused on impact of television advertisements on buying pattern of adolescent girls; Rajagopal (2010) also focused on the role of radio advertisements as behavioural drivers among urban consumers; Abideen and Saleem (2011) focused on the responses that adverts elicit in the telecom sector; Haque, Rahman, Ahmed, Yashmin and Asri (2011) focused on fast food restaurant advertisement and its influence on consumer behaviour. None of the studies looked at the impact of other variables such as price and service quality delivery.

Radio message are received virtually in all rural and urban areas. it uses various catching phases and slogan. Musical jingles can also be presented which goes along the way to boost the image of the company.

Lastly, the radio advertising should also have impact on consumer buying decision. The rationale behind this project is to examine and compare the influence of the radio advertising on consumers’ buying decision with other medium of advertising.


1.2 Statement of Problem

Radio commercials hold a marginal share among the main media categories, for example newspaper and television. However, it is still regarded as an important and useful medium in marketing and advertising in large cities and metropolitans. The broadcast of commercials on radio needs real feel orientation and voice is the single major determinant that draws the attention of listeners. it is in view of this that the researcher decide to investigate the effect of radio advertising on consumer purchasing decision


1.3 Purpose / Objectives of the Study

To examine the effect of Radio advertising on Consumer purchasing decision.

  1. To determine the strength and weakness of Radio advertising.
  2. To identify the consumers expectation with regard to radio advertising.
  3. To compare the effect of radio advertising with other media of advertising influencing consumers buying decision.

1.4 Research Hypotheses

To aid the completion of the study, the following research hypotheses were formulated by the researcher;

  1. H0: radio advertising does not have any effect on consumer’s expectation
    H1: radio advertising does have an effect on consumer’s expectation
  2. H0: radio advertising does not have more effect than other media of advertising in influencing consumers buying decision
    H2: radio advertising does have more effect than other media of advertising in influencing consumers buying decision

1.5 Significance of the Study

The fact that implementation of effective marketing strategies creates satisfaction for both the procedures and consumers, it can be stated that in Nigeria today there is the need to improve on market orientation among organizations. Companies should realize the importance of strategic planning in the provision of goods and services to ensure guaranteed profits. Good strategies means lower cost and so lower prices and consumers are induced to repeat purchase. This way the producers realize their aims and objectives and consumer gets needed goods and services at affordable prices. It is therefore towards this state of affairs that this research work is oriented.This research work is also undertaken in the hope that it’s finding will enable marketing people to understanding, adapt and apply knowledge of consumers purchasing behaviour in tackling their marketing problems.Again it is hoped that the study and the recommendation that will be made, will be of benefit to the Guinness marketing department in particular and the entire industry as a whole. It will contribute to determining the strategic requirements for effective marketing and would enable firms serve their customers more effectively and efficiently. If the research achieves this, it will be a worthwhile contribution to the integration of functional specialism (marketing) that is essential in the business world today.


1.6 Scope and Limitation of the Study

The scope of the study covers the effect of radio advertising on consumers purchasing decision; but in the cause of the study, there are some factors which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities


1.7 Operational Definition of Terms

Radio

Radio is the technology of using radio waves to carry information, such as sound, by systematically modulating properties of electromagnetic energy waves transmitted through space, such as their amplitude, frequency, phase, or pulse width

Consumer Purchasing Behaviour

This is defined as the acts of individuals in obtaining and using goods and services, including the decision process that precede and determine these acts.

Product

A product can be defined as anything that can be offered to someone to satisfy a need or want.


1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain the effect of radio advertising on consumers purchasing decision.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of radio advertising and consumer purchasing decision.


5.2 Summary

From the findings of the study it may be concluded most of customers are influenced by advertisements on television followed by radio then newspaper and finally online media. Generally, it was observed that most of the consumers are affected by advertisement in the buying behaviour. Most of them they buy products which are mostly advert and they make them to be loyal. Television advertisement has more impact on consumer buying behaviour more than other media. Statistical analysis of consumer attitude shows that among three dimensions (loyalty, previous buying experience and word of mouth) are significant factors which effect consumer buying behaviour.

Advertisers had their largest profits from knowledge of previous purchases of consumer and also the loyalty of consumer to any product plays another important role in leading consumer attitude to purchase of that product as also noted by Mohammed and Alkubise (2012).


5.3 Conclusion

From the findings of the study it may be concluded most of customers are influenced by advertisements on television followed by radio then newspaper and finally online media. Generally, it was observed that most of the consumers are affected by advertisement in the buying behaviour. Most of them they buy products which are mostly advert and they make them to be loyal. Television advertisement has more impact on consumer buying behaviour more than other media. Statistical analysis of consumer attitude shows that among three dimensions (loyalty, previous buying experience and word of mouth) are significant factors which effect consumer buying behaviour. Advertisers had their largest profits from knowledge of previous purchases of consumer and also the loyalty of consumer to any product plays another important role in leading consumer attitude to purchase of that product as also noted by Mohammed and Alkubise (2012). On the other hand, it was observed that traditional media (newspaper, radio and television) adverts are more trusted than new media advert. Reason of less significant impact of online ad on consumer purchase behaviour is the lack of trust and lack of industries involvement in online media. On the other case, online media has started to be familiar and beginning to be trusted by people in the society in the current time of 21st century. There are hundreds of advertising agencies but only few of them actively manage and control online media. Moreover, it was observed that advert has influence in consumer buying behaviour compared to marketing communications. People want to purchase products they have already seen or through experience. Word of mouth and other communication are also powerful of convincing consumer in buying behaviour. Moreover, old people are not easy to try new products compared to youth.


5.4 Recommendations

From the findings of the study, a number of recommendations are provided.

The study recommends that newspaper media should continue to be used in advertisement because still people believe and trust it. Advertisers should consider creativity when designing print advertisements. The radio is among the media which has big influence to audience due to its strength such as to be flexible, universal and cheap. Therefore, recommends that advertisers should design radio adverts which are easy to be understood by customers.

Television has more power to influence more than other media. Advert which is displayed in television can be remembered easily and fast because people see and hear the advert. The study recommends that advertisers should use television adverts well and the message should be supported well by visual so as to gain new customers, create brand loyalty and persuade well.


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