The Effect of Advertising on Customer Behavior and Retention
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To ascertain the effect of advertising on customer behavior
- To ascertain the effect of advertising on customer retention
- To identify the role of advertisement on building consumer perception
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Theoretical framework
Psychological Theories
The essence of psychological theories (learning theories) lies in the fact that people learn from experience and the results of experience will modify their actions on future occasions. The importance of brand loyalty and repeat purchase makes learning theory more relevant in the field of marketing. Among the learning theories come stimulus response theories and cognitive theories. Contributors of stimulus response theories include Purlon, Skinner Thorindike and Kotlew. According to them learning occurs as a person responds to some stimulus and is rewarded with need satisfaction for a correct response. They proved that most frequent and recent stimuli are remembered and responded. This approach is the basis of reported advertisements. The cognitive theory was propounded by Festinger mainly to explain certain post buying behavior According to it stimulation and want are conditioned by a consumer’s knowledge, his perception, beliefs and attitudes. The theory further states that even after a well thought out purchase the consumers undergo some sort of discomfort, fear or dissonance.
This post decision anxiety is caused by ‘nice’ (cognitive dissonance) arising from doubts on the decisions taken. The consumers compare on the merits of the products bought with substitutes or start analyzing drawbacks of the product. Such customers require some reassurances from the seller stressing that the decision taken is wise one. Though the theory was developed to explain a ‘post decision’ phenomenon. Gestalt theory, coined by German Psychologist Christian Von Ehrenfels viewed personality as the result of the interaction between the person and the total environment and the two must be considered together as a patterned event. Consumers attempt to stabilize their psychological field by providing meaning to the surrounding world. Consumers strive to reduce conflict between themselves and their environments.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from food affairs and pepperoni in order to determine the effect of advertising on customer behavior and retention. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 50 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effect of advertising on customer behavior and retention. 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 advertising on customer behavior and retention
Summary
This study was on the effect of advertising on customer behavior and retention. Three objectives were raised which included: To ascertain the effect of advertising on customer behavior, to ascertain the effect of advertising on customer retention and to identify the role of advertisement on building consumer perception. In line with these objectives, three research questions and research hypotheses were formulated and three null hypotheses were posited. The total population for the study is 75 staff management of clan development company, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study.
Conclusion
From the findings of the study, the researcher concludes that advertising plays a very significant role in influencing consumers buying behavior by providing attracting their attention, arousing their interest, creating desire for the product and finally make them decide to purchase the products.
Recommendation
Organizations should embrace and adopt the marketing concept that allows for being more effective than competitors in creating, delivering, and communicating superior customer value to their chosen target markets.
Organizations should also take cross functional decisions on marketing and non marketing activities in order to satisfy their customers for more effective customer retention
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