THE IMPACT OF ADVERT ON CONSUMERS’ PREFERENCES OF PRODUCTS

CHAPTER ONE

1.1        INTRODUCTION

Before I could effectively write on the effects of advertising on consumers preference and acceptability of product, I will first of all know what advertising is all about.

No generally accepted definition of advertising has been worked out because, as an academic discipline, the study of advertising is fairly new.  However, advertising can be defined as a group of activities aimed at and including dissemination of information in any paid non-personal form concerning an idea, product or service, to compel action in accordance with the intent of an identifiable sponsor.  This definition includes many tasks of advertising.  Advertising aims at influencing the consumer through communication in the form of dissemination of information regarding an idea, product or service.  Pitman: Principles of Advertising.

The question is, why should one wish to influence the consumer, industrial user, or the public in general.  In order to compel buying action of a product, service or the acceptance of an idea, it is meant to be in accordance with interest of a person who pays for the advertisement and have an interest in the product, service or idea sponsored.

Whenever I talk about advertising, I think about the advertiser – one that spends money for advertising.  The advertising agencies – on an independent business, organization, composed of creative and business people who develop, prepare and place advertising in the media for sellers seeking to find customers for their goods and services.

Advertising medial also comes in mind whenever, advertising is being mentioned.  They are institutions such as Newspapers, Magazines, Radio, Television, Direct Mail and Posters that are used to carry the advertisers’ message to the desired audiences.

Advertising is part of the flow of communication and information process, which exposes the consumer to variety of stimulus.  It is credited with raising our standard of living, lowering unit costs of mass produced goods providing information and helping new forms enter the market place.

It is monitored by the industry of mass media consumer groups and government agencies in an effort to eliminate deceptive and unfair advertisement and commercials.  Advertising has become a workhouse that serves many communication needs of society.

Research in advertising is categorized into three namely: Consumer Research, Product Analysis and Market Analysis.  In consumer research, the advertiser realizes that in order to effectively sell his product he must satisfy the needs and wants of the consumer.  This he could achieve by understanding the nature of those needs and wants and by providing the products, which will satisfy them.  He must remain abreast of shifts in the location of his potential markets.  This research is concerned with the discovery of the reason behind consumer behaviour (their buying motives and attitudes).  An analysis of both internal and external conditions of the market are elements of consumer researcher.  It also analyses the forces that influence buying, such as motives, attitudes, beliefs, habits and customs.

Under product analysis, we talk of product concept testing, positioning of products, life circle of products, products uses, packaging of products, prices of products, unit of sales and use of brand.  The manufacturer should make a thorough analysis of the product before marketing it, to determine those of its properties which can be interpreted appealingly as being able to satisfy the desires of the consumers.

1.2        BACKGROUND

The purpose of analysis is to determine which market may be cultivated most profitably and to what extent sales potential is greater in one area than in another.  This branch of research attempts to answer for the advertisers problems, such as how important is market ‘A’ as a location for expensive effort in the distribution of a particular line of production.  How does market ‘A’ compare with market ‘B’ in terms of potential sales?  What kinds of data would be most helpful in portraying the character of markets in selecting the most fruitful advertising approach, etc.

The emergence of advertising is closely associated with a philosophic and economic climate that relies on the market system as a means of resources allocation.  Consumer express their preferences through preferential purchases of the advertised products in the market place.

Advertising forms the basic source of revenue for the media and sometimes, it is being wasteful.  This is found where demand has stabilized and the resulting high competition give rise to an exchange of expensive “broadsides” among the competitors.  It may also be found where advertising has been directed at the wrong audience, at the wrong time and in the wrong place.

Advertising has an effect not only on consumers but also on competition on the business cycle.  This is also an effect on the value of products and prices of products.

Some classifications of advertising are National Retail, local and co-operative Advertising.  National Advertising can be defined, as any advertising done by the coco-cola manufacturer or producer in contrast to the one done be a retailer.  The advertisers’ intention is to stimulate demand.  Local advertising also employs the same strategy with national advertising.  Example of such institutions is depot.  Retailers also use retails advertising to persuade consumers to buy at a particular location.

1.3        STATEMENT OF RESEARCH PROBLEM

The study attempt to examine the influence of advertising on consumer preferences and acceptability of coco-cola soft drink.

Products advertised are usually misunderstood by the potential buyers, i.e. the consumers, the product parochial ideas and conception about the product advertised.  In most cases, they are perceived as money marketers or exploiters who usually say one thing and mean another thing.  Consumers fail to accept the ideas of coca-cola being the only soft drink that can give them the desired satisfaction.

Coco-cola does not make as much gain as supposed due to the amount of advertising received by the potential buyers per day.

Also the influence of advertisement on consumers’ preference of coca-cola is unsatisfactory.  It also imposes the problem of choice making among soft drink.

1.4        OBJECTIVE OF THE STUDY

The main objective of the study was to find out the impact of advertising on consumers’ preferences and acceptability of a product..

There is also the need to find out whether advertising is responsible for brand loyalty in consumers.  The study will enable us find out whether consumers choice of a product, or whether it has a neutral effect on them.

1.5        SIGNIFICANCE OF THE STUDY

There seems to be a serious competition in the soft drink market today.  This is because many companies that manufacture this type of drink are springing up every day with different brands.  The producers are all frying hard to see that there is favourable market for their own brand.

More so, the consumers seems to be confused as to which brand of drink is the best and which has the best quality.  No wonder there is this increase in commercial in our various media today.  It therefore necessary to carryout the study to find out whether advertising on coca-cola drink has effect on the consumers of this brand of drink as well as other producers of other brands of drink, and the entire public, to know the impact of this commercial to know whether their commercial is achieving the aim for which it was put up.  This will enable them make some amendment where necessary.

1.6        RESEARCH QUESTION

1.            Does Advertising have any significant change in consumers buying behaviour?

2.            Does it have any effect or impact on manufacturers turnover?

3.            Does price of soft drink have any effect on consumer’s choice of soft drink?

1.7        RESEARCH HYPOTHESES

H1:    Advertising campaign of coca-cola positively affects the buying habit of their target audience

H0:    Advertising campaign of coca-cola does not positively affect the buying habit of their target audience.

H2:    Advertising campaign of coca-cola product increases sales turnover for the manufacturer.

H0:    Advertising campaign of coca-cola does not have any impact on the sales turn over.

H3:    Consumers choice of soft drink is related to the price of soft drinks.

H0:    Consumers choice of soft drinks is not related to the price of soft drink.

1.8        CONCEPTUAL AND OPERATIONAL DEFINITION

1.       IMPACT:

Conceptual Definition: Impact means a dramatic or forceful effect.

Operational Definition: Impact is the degree of advertising effect on coca-cola consumers.

2.            PREFERENCES:

Conceptual: Preference is the attitude or act of liking a product better than another.

Operational Definition: Preference is the ability to choose or select coca-cola rather than other soft drinks.

3.            ADVERTISING CAMPAIGN:

Conceptual: Advertising campaign is showing the product to people and telling them to buy.

Operational Definition: Advertising campaign are messages directed to the audience that arose their psychological consumption on coca-cola.

4.            SALES TURNOVER:

Conceptual Definition: Sales turnover is rapid purchase of product

Operational Definition: Sales turnover is the total number of coca-cola soft drink sold by the company in a year.

5.            BUYING HABIT:

Conceptual Definition: Buying habit is readiness or ways by which people buy a product.

6.            PRICE:

Conceptual Definition: This can be defined as means of assessment of the money, which has to be paid to purchase something.

7.            CONSUMER CHOICE:

Conceptual Definition: This can be defined as the ability of a consumer to decide between alternatives.

Operational Definition: Consumer choice is the ability of the consumer of coca-cola to choose coca-cola from other soft drinks available to them.

1.9        ASSUMPTION

This is based on the following assumptions, which were important in the formation of the hypothesis.

(1)         It is assumed that the consumer perception of advertising does not influence their acceptability of a product.

(2)         It is also assumed that consumers consider the advertising messages of coca-cola while buying the drink.

(3)         Another assumption is that consumers’ preferences of coca-cola is related to the price of the product..

(4)         It is assumed that advertising cannot affect a consumer’s behaviour.

(5)         Also assumed is that increase in consumption rate of coca-cola is not related to advertising.

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