Impact Of Advertising On Consumer Buying Habit

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Impact Of Advertising On Consumer Buying Habit


Abstract


This study was carried out to examine the impact of advertising on consumer buying habit. The study was specifically set to investigate whether there is a significant correlation between advertisement and consumer buying behaviour; find out whether advertising increases product awareness among consumers; investigate whether advertising strategies has a significant impact on consumers buying habit; and ascertain whether advertising has a significant impact on product patronage and consumption pattern among consumers. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of residents in Yaba, Lagos State. In determining the sample size, the researcher conveniently selected 147 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and mean scores. While the hypotheses were tested using Chi-square statistical tool. The result of the findings reveals that there is a significant correlation between advertisement and consumer buying behaviour. Furthermore the study also revealed that advertising strategies has a significant impact on consumers buying habit Therefore, it is recommended that for an effective advertisement to be ensure, target audience must be extensively studied to know their consumption pattern and buying behavior Also effort should be directed more on emotion related advertising since consumers patronage are highly induced through their emotion. To mention but a few.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 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 viewers 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 buying habit. 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 buying habit 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 buying habit, 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 habit (Abideen & Latiff, 2011).


1.2 Statement of the Problem

Advertising is a critical factor in our return on investment and ensures that we do not spend money to benefit the competitor or advertise to support the whole category, Barden (2013). Organizations advertise to increase product awareness on the part of the consumer and increase sales on the part of the organization. Various media are used by organizations to convey messages about their products through different advertising platforms such as television, the internet, magazines, and newspapers are what organizations are doing. Advertising plays an active role in the promotion of goods and services. As a marketing tool, advertising is a powerful tool to persuasively communicate with millions of customers and can persuade consumers to think in terms of brands is the source of its economic power Hackley, (2005). With so many attractive advertisements, unhealthy products have encouraged unhealthy lifestyles leading to several diseases. These messages, which are repeated many times to the seller, promote either good or bad products, but for as long as the advertised product has a positive effect on the consumer, the consumer will go ahead and make a purchase decision.

The communication tool stimulates the consumer by way of getting them informed about the product. In this way, advertising stimulates optimum exposure of the products to consumers that producers fulfill. Consumers build a desire to purchase products. Out of a competitive market, advertising should stimulate awareness and consumer buying habit in society. The level of creativity and innovation has grown in advertising, showing a significant effect on consumers’ minds by persuading them through attractive advertising. Many organizations see advertising as a considerable cost to the organization, which would either effectively increase consumer demand for the product or have no effect on the demand for the product.

When organizations spend on the various strategies, they embark on to attract consumers and help them decide. They are hopeful that their buying habit will positively affect their product. Unfortunately, some advertisements fail to convince consumers and fail to persuade their buying intentions because of their lack of effectiveness. Usually, the failure to convince consumers comes from unrealistic expectations created for the product due to the features dealt with, which is not the same when dealt with within reality. The dramatization in the advertisement goes into a false product representation of a product ingrained in the culture, resulting in false images. As a result, the unrealistic and unattainable images create some disappointment in the consumer, and the relationship is harmed.

Society has been impacted and has brought about a significant change-making people think beyond their compact world of stability. Advertising can misrepresent a product; give a false image giving unrealistic expectations. Advertising can also promote harmful products, which can bring problems in society by influencing consumers negatively while politicians can participate in the political arena; advertising can be harmful to a county’s democracy. Advertising has made society change its way of living as marketers try to persuade people to buy their products. Advertising can play an essential role in inventing false needs by stimulating compulsive consumption habits, which violates maintaining the ecological equilibrium.


1.3 Objectives of the Study

The main objective of this study is to examine the impact of advertising on consumer buying habit. Other objectives of this study are:

  1. Investigate whether there is a significant correlation between advertisement and consumer buying behaviour.
  2. Find out whether advertising increases product awareness among consumers.
  3. Investigate whether advertising strategies has a significant impact on consumers buying habit.
  4. Ascertain whether advertising has a significant impact on product patronage and consumption pattern among consumers.

1.4 Research Questions

The following research questions will be answered in this study:

  1. Is there a significant correlation between advertisement and consumer buying behaviour?
  2. Does advertising increase product awareness among consumers?
  3. Does advertising strategies have a significant impact on consumers buying habit?
  4. Does advertising have a significant impact on product patronage and consumption pattern among consumers?

1.5 Research Hypotheses

The following hypotheses are formulated for testing:

  • Ho: There is no significant relationship between advertising and consumers buying habit.
  • Ha: There is a significant relationship between advertising and consumers buying habit.

1.6 Significance of the Study

The research study will help organizations find possible ways of advertising their products to their target market. Further, this significantly will interest marketing managers as it added value and help them understand better ways of selling their products and various media that may be used in which advertising affects the buying behavior of consumer.
The research study will help consumers increase their product awareness and build brand preference over its competitors.

The findings of this study added to the existing body of knowledge on the influence of advertising on consumer buying habit by provide future researchers with a source of empirical literature on the same or similar topics.


1.7 Scope of the Study

This study focuses on the examine the impact of advertising on consumer buying habit. Hence, the respondents of this study will be obtained among residents in Yaba, Lagos State.


1.8 Limitations of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.


1.9 Definition of Terms

Consumers:

Consumers are people who buy products and services provided by the producers. (Business Dictionary, 2017)

Consumer Behaviour:

The study of how, where, when and why people buy, use and get rid of products and services. (Business Dictionary, 2017)

Consumer Buying Habit:

The process by which individuals search for, select, purchase, use and dispose of goods and services, in satisfaction of their needs and wants (Hershey & Blanchard, 2017). The term consumer buying habit will be used interchangeably with consumer buying behaviour.

Consumer Decision Making:

The processes, by which consumers identify their needs, collect information, evaluate alternatives and make the purchase decision (Hershey & Blanchard, 2017)


1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.


Chapter Five


Summary, Conclusions and Recommendations

5.1 Introduction

This chapter summarizes the findings on examine the impact of advertising on consumer buying habit. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine the impact of advertising on consumer buying habit. The study specifically was aimed to investigate whether there is a significant correlation between advertisement and consumer buying behaviour; find out whether advertising increases product awareness among consumers; investigate whether advertising strategies has a significant impact on consumers buying habit; and ascertain whether advertising has a significant impact on product patronage and consumption pattern among consumers.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are residents in Yaba, Lagos State.


5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

  1. There is a significant correlation between advertisement and consumer buying behaviour.
  2. Advertising increases product awareness among consumers.
  3. Advertising strategies has a significant impact on consumers buying habit.
  4. Advertising has a significant impact on product patronage and consumption pattern among consumers.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. For an effective advertisement to be ensure, target audience must be extensively studied to know their consumption pattern and buying behavior Also effort should be directed more on emotion related advertising since consumers patronage are highly induced through their emotion.
  2. Sensory stimulated advertising should be used to influence consumer buying behavior, since sense modalities can affect users experience and enable them to gain information from advertisements.

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