Impact Of Advertising On Consumer Purchase Decision (A Case Study Of Nestle Milo Nig Plc)

Project and Seminar Material for Marketing

Impact Of Advertising On Consumer Purchase Decision (A Case Study Of Nestle Milo Nig Plc)


Abstract


The aim of this project is to examine “Impact of Advertising on Consumer Purchases Decision” using Nestle Nigeria plc (Milo) as a case study, so that the relationship that exist between advertising and Milo will be analyzed. Advertising is perhaps the most conspicuous of all marketing activities this very fact has led to a widespread misunderstanding of its real scope and nature. The main objective of this study was to evaluate the impact of advertising on the consumption of “Nestle Milo” and also to find out the extend of which advertisement have succeeded in influencing the buying and consumption of Nestle Milo. Survey method was used in collecting data and this method permits the researcher to survey the respondent at their own convenience in order to find solution to problems, three (3) hypothesis were formulated and data were collected through the use of questionnaires administered. Furthermore, result obtained from the test of hypothesis show that advertising has an impact on consumer purchase decision with an impact on consumer purchase decision with a particular reference to Nestle Milo. Based on findings, it was recommended that Nestle milo Plc should improve on its advertising media, in order to have a large market share in the market of milo


Table of Content


  • Title Page
  • Certification
  • Acknowledgement
  • Table of Content
  • Abstract

Chapter One:

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Research Objective
  • 1.4 Research Hypothesis
  • 1.5 Scope of the Study
  • 1.6 Significance of the Study
  • 1.7 Definition of Essential Terms

Chapter Two:

2.0 Literature Review

  • 2.1 Advertising
  • 2.2 Objective and Functions of Advertising
  • 2.3 Technical of Advertising
  • 2.4 Type of Advertising
  • 2.5 Advertising Media
  • 2.6 The Impact of Advertising
  • 2.7 Measurement of advertising Effective
  • 2.8 A Brief History of Advertising Effective
  • 2.9 Summary of the Chapter

Chapter Three:

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 population of the study
  • 3.3 Sampling techniques
  • 3.4 Data Collection Procedure
  • 3.5 Validity of Instrument
  • 3.6 Method of Data Analysis
  • 3.7 Decision of Rule
  • 3.8 Cut of Point

Chapter Four:

4.0 Date Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Hypothesis Testing/Analysis of data Questionnaire Obtained from Customers
  • 4.3 Testing of Hypothesis
  • 4.4 Decision of Finding

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • 5.4 Area of Further Research
  • Appendix
  • Questionnaire

Chapter One


Introduction

1.1 Background To The Study

A typical market is made up of people who have various need, some are buyer in the market while other are sellers, each participant in the exchange process is often confronted with the problems of searching. Every attempt to satisfy consumers needs and desires, is usually and most often the duty of the seller to package their product or service information for dissemination to the consumers by employing such relevant vehicle as promotional activities which is conveyed and executed through advertising. Effort is made to persuade buyers in order to act when they receive this information.

Advertising is a basic tools of marketing most of the message In our media advertisement are through the magazines, radio, bill board, news paper, television are not merely for the sales of the advertised product, but equally to entertain, educate beside the provision of media useful and relevant information to such media and audience.

In a developing country like Nigeria, the distribution of available goods and services depend on customers tearing habit. Advertising do often persuade people against their wish, unless they are gullible and unsophisticated.

To some people advertising is regarded as an art, while others sees it as a science to this background, advertising unique combination of both variable. Advertising comprises the effective blending of the behavioural science such as anthropology sociology, psychology, etc then for communication arts, such as writing editing, drama, graphic, animation and photograph etc.

Nevertheless, for a successful promotional activities advertising skill must be employed using words, pictures, slogans, jingles, colours, size and movement etc to entice the reader viewers, listeners or passer by to stop, look listen read develop interest be convinced and the taken action.

The essential of this study is to evaluate the effect of advertising on consumer purchase decision of “Nestle Milo” hence this research work is to find out the extend to which those advertisement of Nestle Milo have succeeded in influence its consumer when making their buying decision


1.2 Statement Of The Problem

In the country today, there are many food drinks, this means that the competition being witnessed in the market for beverage is very stiff just like in other market. Consequently, companies producing beverages and other products employ promotional tools in a bid to outdo their competitors. One of such tolls that could be used for this purpose is advertising.

After taking a proper view of the beverage market, the researcher discovered that consumers preferred Nestle Milo to any of its close substitutes. The researcher became curious and decided to know what is responsible for this.

In a situation like this when the information needed about a things is lacking a study of this nature becomes imperative, hence the stud.

Therefore, the problem, of this research work put in the question is what is responsible for the consumers performance for Nestle Milo drink in the Nigerian beverage market.


1.3 Research Objective

The purpose of this study is to evaluate the impact of advertising on the consumption of “Nestle Milo” others are as follows:

  1. To establish the extent to which advertisement have succeeded in influencing the buying and consumption of “Nestle Milo”
  2. To identify those other factors which influences consumer in making their buying decision apart from the various advertisement of Nestle Milo
  3. To find out if the media advertisement of nestle Milo actually have the potentials for creating brand loyalty.

1.4 Research Hypothesis

The following hypothesis were formulated

  1. Ho: Media advertisement of Nestle food drink do not generate brand loyalty for the Milo amongst its diversified consumers
    Hi: Media advertisement of nestle Milo feed drink generate brand loyalty for the Milo amongst diversified consumers
  2. Ho: Media advertisement of nestle Milo food drink do not influence the buying and consumption habit of Nestle Milo consumers
    Hi: Media advertisement of nestle Milo influence the buying and consumption habit of nestle Milo consumers

1.5 Scope Of The Study

The research work is limited to assessing and examine in details the impact of advertising on the consumer buying decision especially on nestle Milo, with particular reference to nestle Milo group of company’s.

The scope of the study is limited to the consumer buying habit to enable the buying decisions of consumers of Nestle Milo in the process of making their choices amongst other brand. It is limited to consumers in Auchi Edo State.


1.6 Significance Of The Study

the research work is useful in the view of the researcher based on the exposure and also the management of nestle group of company’s the professions of advertising the field of mass communication on the interested members of the public and course, posterity, and to benefit from this study.

In view of the massive competition amongst the various Milo industries from keen awareness and attention beside the huge amount of money being annually budgeting on advertising by Nestle group of company, this study would tremendously help to research in deciphering whether this heavy sum of money invested on advertising by nestle group of company’s Nigeria Plc, is worth while.

In considering this research work form a scientific and empirical point of view it would aid those in the field of mass communication in knowing that most critics of advertising are them selves advertisers and indeed purchases of advertised goods and services.


1.7 Definition Of Essential Terms

In order to aid our understanding of the whole work, it is important that some terms used in this work should be defined such terms are defined below:

Product:

Is a thing or substance produced to use or for consumption and that might satisfy want or need.

Product can also be defined as anything they can be offered to a market to satisfy a want or need.

Product can be physical goods, services, experience, events, persons, place or ideas.

Advertising:

Is defined as any paid form of promoting publicly to increase sales.

Advertising is a non personal communication through various media by business firms, non profit organization and individuals who are in some ways identified in the advertising message and who hope to communicate the members of a particular audience.

Advertising can be define as a sponsor identified message regarding a product or organization that can be verbal or visual and is disseminated through one or more media

Message:

Can be defined as the symbol that advertises transmits to have audience to address for benefits purpose motivation, reason or for identification.

Appeal:

Can be defined as the motive use to create interest on a product or services and to stimulate a purchase.

Copy:

This can be defined as a written documents prepared by an expert copy writer it is written or spoken materials of advertising communication and include the headlines, name and address of the advertiser as well as the main text of the message.

Advertising Medium:

Can be defined as any means by which sales messages can be seen as a routs of channels through which the message are delivered to the target audience or consumers.

Brand Loyalty:

It can be defined as a knowledge of the attributes of a particular product.

Consumer Behaviour:

It can be defined as the behaviour that consumer display in searching for purchases, using evaluating and disposing of products, services and ideas which they expect will satisfy their need.

Purchases Decision:

It can be defined as the process by which organization define their product/needs, for goods and services, identify and compare the supplier available to them negotiated and source of supply on some other ways arrived as agreed terms of trading, make contracts and place order and finally received the goods and services and play .


Chapter Five


5.0 Summary of Findings, Conclusion and Recommendations

5.1 Summary of Finding

After a careful in investigation and observation collection and analysis of all available data, the researcher discovered that advertisement of nestle Milo through media has succeed in influencing consumers as they are making their purchase decision.

It was also discovered that the consumers appreciated the quality of the nestle Milo and agreed that they will be loyal to the brand even if to order brand of Milo comes into existence, they will not make any changes.
From the findings, it was also discovered that the more customer are exposed to media advertising of Nestle Milo the more they tend to prefer to Milo, to other brand of Milo.


5.2 Conclusion

From the beginning of this research work the researcher introduced certain for the respondents to give answers. The question was based on the problem of the research and answers from respondents now served as the basis for conclusions have the topic of discussion in mind, impact of advertising on consumer purchases decision” with a particular reference to nestle Milo generate brand loyalty for the nestle Milo amongst its diversified consumers.
It is the wish of the researcher to conclude that the media advertisement of Nestle Milo has always been dictating and influencing the purchases decision of its consumers. Since it is a great extent, the advertisement exposed to play a vary important role in their purchases behaviors.


5.3 Recommendation

Based on the finding of this research work the following recommendation are therefore made to management to nestle group of companies, a brand consumers goods as mentioned earlier in chapter one.

To enhance effectiveness and more loyalist to this named brand the company should ensure that appropriated media vehicle and distribution channel of nestle Milo is selected to ensure that nestle Milo so circulated in all area in Lagos and also in all the state of Nigeria.

The company should keep up with quality of the product, in order to remain in brand in the market. The company should also keep with its effort at creating and sustaining awareness by the provision of road side bill board, with illustrating of people making merry and showing satisfaction over a preferred to of Milo.

More appealing jingle advert should be formulated by nestle group of company Nigeria plc, in addition to the current jingle. The company should employ more enthusiasm in sponsoring important activities, and ceremonies in it’s area of operations since this will further help the prospects develop some favorable sense of acceptability not only with the brand, but also towards the organization.

The advertising practitioners should ensure that their advert should avoid nudity as this is likely to offend public decency culture.

The adverts should not be framed as to abuse the trust of consumers to export lack of assertion.

All their slogans and clines should be truthful and credible and should not be ambiguous exaggerating or misleading about the advertised product. The advert should be product with a sense of responsibility both to the consumer and to the sociality at large.


5.4 Areas for Further Study

This study looks at the impact of advertising on consumer purchases decision; there is still greater need for improvement on this work. It is therefore recommended that more studies should be carried out based in this topic with large universe and sample population. This will help to improve or give lighter on how advertisement influences consumer decision and presences of a product and again studies should be conducted on impact of promotion on consumer demand, for this will lead to high sales volume and profit the producer of such product.
The study is necessary so that advertisement producer would know if the hug budge is placed on advertisement are wasted or not.


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Frequently Asked Questions


Does advertising affect the consumer’s decision to purchase a product?

Consumers take the careful decision to patronize products and services based on several reasons they consider as important. This research has the ultimate objective to examine the impact advertising has on the consumer’s decision to purchase a product.

What factors influence the consumer buying decision?

Despite the key role of advertising on consumer buying decision, other factors such as product packaging, quality, endorsement from previous users and sometimes product esteem influences the consumer’s stage of taking action towards a product.

What is the impact of advertising on brands?

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.

Does sales promotion influence consumer buying decision event?

The purpose of the study is also to stimulate increase in the use of sales promotion as an effective instrument for influencing consumer buying decision event if they do not win the promotion. 

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