Impact of Advertising on Consumer Patronage
CHAPTER ONE
Objectives of the Study
The objectives of this research are:
- To determine the relationship that exists between the various advertising strategies employed by Cadbury Nigeria Plc.
- To evaluate the effectiveness of Cadbury Nigeria Plc advertising strategies.
- To examine the best advertising strategy that would build brand loyalty among consumers.
- To analyze the factors that will influence the behavior of the consumer as it relates to advertising strategies.
CHAPTER TWO
LITERATURE REVIEW
2.1 Focus of Review
The chapter reviews the following to give this research work a scholarly direction. This review is undertaken in the following areas:
- Evolution of Advertising
- Advertising: An Overview?
- Advertising and Consumer Behaviour
- Concept of Motivation and Motive
- Theoretical framework
- Empirical review of studies
Evolution of Advertising
Advertising dates back to the very beginning of recorded history. The Romans painted walls to announce gladiators fight. During the Golden Age in Greece cities, criers announced the sale of slaves, cattle and other goods, such as pottery. As the person’s reputation spread by word of mouth, buyers began to look for his special mark, just as consumers look for trademark and brand names today (Lears, 2005:2004).
Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompe and ancient Arabia. Lost and found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History tells us that out-of-home advertising and billboards are the oldest forms of advertising (Harper, 1995).
As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts for the convenience of the consumers. The turning point in the history of advertising came in the year 1450 when Johann Gutenberg invented the printing press. Advertisers no longer had to produce extra copies of a sign by hand. The first printed advert in English language appeared in 1478 (Wendel, 1982).
Advertising had its greatest growth in America primarily because of mass industrial production causing a surplus, and hence the need to persuade consumers to buy more. The invention of the radio and later the television created two more amazing media for the spread of advertising.
Much of the early history of advertising in Nigeria largely centers on the activities of the offshoots of multinationals such as Unilever and its advertising agency, LINTAS (Ozoh, 2001). A more vigorous industry emerged much later with first major impetus being provided by the Nigeria Enterprise Promotion Decree of 1972 otherwise known as Indigenization decree. The decree had provided for advertising as a whole business with exclusive ownership reserved for Nigerians. Nigerians were suddenly thrust into the position of major drivers in the industry even when they were not ready to assume such post.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
Research is the process of arriving at a dependable solution to problems through the planned and systematic collection, analysis and interpretation of data. Osuala, (1993) define research methodology as the specification of procedure for collection and analyzing the data necessary to solve the problem at hand such that the differences between the cost of obtaining various level of accuracy and the expected value of the information associated with each level of accuracy is optimized.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
This chapter deals with the presentation and analysis of the data collected for the purpose of this study. The analysis was done by using simple percentage method. The purpose is to know the responses of the respondents to each question in the questionnaire.
The responses to each question where analyzed separately in a tabular form as shown below
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary
In chapter one, an introduction to the study was given, highlighting the research question and hypothesis, purpose of the study and significance of the study. Chapter two presented a review of other relevant works that have been done on the subject of advert consumer behavior while chapter three specifies the methodology adopted in conducting this research.
This chapter presents the summary of the study and the conclusions. It also contains the recommendations on the impact of advertising on consumer patronage: a study of Cadbury Nigeria Plc.
The study evaluated the impact that advertising has on consumer patronage. Specifically the study was interested in the impact of advertising on one of the leading beverage companies in Nigeria, Cadbury Nigeria Plc.
Chapter one presented a background to the study, the purpose and significance as well as the statement of the problem. Four research questions were raised in relation to the problem presented. In chapter two, relevant literatures in advertising and consumer behaviour were reviewed. Theories relevant to the study were also discussed to provide a theoretical framework for the study.
Chapter three comprised the methodology sued in gathering and analyzing data for the study. The survey design was adopted and the major instruments were questionnaire.
Chapter four presented findings in relation to the research questions earlier raised. The data collected were analyzed in this chapter through the use of frequency and simple percentages. The study used both quantitative and qualitative data in the analysis.
This chapter is concerned with the major findings that have been stated in chapter 4 of this study, four research questions were tested, accepted and supported, on the basis of the data analysis. Subsequently, recommendations were made to help beverage companies improve their implementation of advertising influence/motives.
Summary of Findings
The analysis of data presented in chapter four revealed the following:
- The study found that consumers buy Bournvita than other types of beverages.
- It reveals that consumers have preference for particular brand.
- The study found that consumers of the brand find it difficult to change or switch brand when they are hooked to a particular brand.
- Findings of the study show that advertising is considered as a factor in brand preference by consumers.
- The study further reveals that consumers are actually aware of Bournvita beverage.
- Study equally shows that consumers’ awareness of Bournvita is based on the role played by advertising.
- It is revealed by the study that consumers look out for size and price in their choice of a brand.
- Study further shows that advertisement motivates / influence consumers to purchase Bournvita more.
- It is revealed by the study that no children make the buying decision in the purchase of beverages at home..
- Study reveals that additional income of the consumers may lead to increase in their purchase of Bournvita.
- Lastly, the study shows that advertising motivates consumers to buy more of the product.
Conclusion
Formal advertising policy that motivates/influences the buying decision of consumers must consider and adverts that appeal to them must be initiated. Also emphases must be made on the comparative advantage of the product. Price is an important factor a reduction to price must be properly communicated to the consumer adverts this will educated the consumer on the fact that the price reduction is not at the expense of quality showed be initiated. Finally, the disposable income of the household is the motor determinant of their buying patter. The more the disposable income the more a product consumer can buy.
Recommendations
Based on the findings, it is therefore recommended that:
- Prices of product can be reduced to gain market share however such price reduction must be followed to proper advertising campaign to first bring the reduction of price to the knowledge of the consumers.
- Consumers will buy more of a product with same quality at a reduced price
- There is need for companies to embark on advert campaign that appeal to children and mothers using jingles that arouse the interest of children.
- In formulating advertising policies, companies must emphasize the advantage of the product in terms of price/ size and the product quality, benefit and durability.
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