THE EFFECTIVENESS OF ADVERTISING IN CHANGING CONSUMER BEHAVIOUR

CHAPTER ONE

GENERAL INTRODUCTION

BACKGROUND TO THE STUDY: The motive of being in business is to produce for sale and profit. In order to remain in business, an organization must generate enough sales from its products to cover operating cost and post reasonable profits (Ayanwale, Adeolu, Alimi and Mathew, 2005). However, taking decision on sales is the most difficult to predict, estimates, or determine with accuracy, potential customers demands as they are uncontrolled factors external to an organization. Considering the importance of sales on business survival and the connection between it and customers, it is therefore, expedient for organizations to engaged in programme that can influence customers decision to purchase its products. This is where advertising comes  into play in an organization that is into manufacturing of products. This is where advertising comes into play in an organization that is into manufacturing of products.

Advertising is planned phenomenon. It has become an essential element of the corporate world and hence companies allot a considerable amount of revenues as their advertising budget. Experts in the field make use of their knowledge of advertising techniques to promote likeness on the part of the consumers and to change their behavior towards a product at any time (Samuel, 1987). Most of the goods in the market that are been advertised are cooperative goods that wants to gain large share of the market. Hence, they used loaded language, which deliberately confuse rather than clarify experience of the goods to the consumers. Advertising is an act of calling attentions to ones product, service need etc especially by paid attention in newspaper and magazines over radio or television.

The language of advertising differs from our  normal speech because of difference in objectives, its syntactical structure has a psychological effect on consumers as it plays on their mind, creating an artificial want and making use of their ignorance and emotions. This is achieved through the presentation of persuasive images such as social status, prestigious ambition and love (Samuel, 1987). Faced with the phenomenon of competing brands of products, it is easy to see the value and impact of advertising on the consumers. Consumers have limited financial resources and consequently spend the available money on commodities they value.

Advertising is interested in helping to raise the value attributed to a product, as in the case of completing brand products. There is the usual existence of several brands of the same products (Honeywell Flour for example), all priced competitively. However, before the purchase of competing brands, choice between products must be made first. For example, choice must be made between Honeywell Flour Mills Plc products and Flours Mills of Nigeria before choosing which brand of Honeywell Flour Mills Product and of which price range. The role of advertising in determining consumer behavior has been under studies for several years. However, some of the arguments, assumptions and policy options proposed are not based on an in depth understanding of the way advertising works with consumers and its influence on markets.

This research work will look into how really advertising manipulate language to suite their purpose and possibly try to make consumers aware of this confused state, which advertisers have put them. It will also be able to look on how advertising of goods using a persuasive language affects the consumers buying behaviour of Honeywell Flour Mills Plc customers.

​​​​​​​STATEMENT OF RESEARCH PROBLEM

A great number of consumers seem not to appreciate the manner producers promote their product, especially the lack of knowledge of the products being promoted. Some consumers expect advertisers to bring in services program for all the categories of consumers. The role of advertising in determining consumer behaviour and brand preference has been undermined by many firms over the years. Some firms spend huge amount of money advertising their product and still claim about indifference in their sales volume. This misconception seems to be based on an entirely understandable initiative reaction. How can advertisers claim that advertising does not increase consumption and sales and still spend so much money on it?

According to Ambler (2000), advertising has major influences on consumption volume of consumers, as well as sales volume. Adverts may not necessarily bring about huge volume of sales in the short-run, but will certainly  increase sales and profits in the long run if done properly. Even if some marketers believe that accurate knowledge about consumers, how they buy, why they buy and where they buy – is unnecessary as it is possible to manipulate  hopeless  buyers into parting with their money in return for products that they do not want.

Successful advertisement skillfully engages to mind of the consumer and motivate him to buy the product advertised. Moreover, advertiser sell more  than  products, it sells  brand  and if you are a large manufacturer of soap, you will not spend millions of advertising money to encourage  people  to  buy  just any soap. You want  them  to  buy  your  soap  and  you  want advert that will some how convince the public that your brand of soap is more desirable than any other.

Global companies that use a large number of agencies located in different countries and serving different divisions have suffered from uncoordinated advertising and image diffusion. Some large companies now use only a few agencies or event one that can supply global advertising and the result is integrated and more effective marketing communications and a much lower total communication cost.

In the light of the above statement, this research work will look at how effective advertising works on consumers buying behaviour. It will also assess the impact of advertising towards solving the invading problems faced by companies to maintain their leadership position in the business environment.

​​​​​​​OBJECTIVES OF THE RESEARCH

The objectives of this research work are:

1. To determine the effect of advertisement on consumer  buying behavior.

2. Find out if advertising campaign carried out is persuasive to make consumers to buy their product.

3. To find out the relationship between  advertisement  and the buying behaviour of consumers.

4. To examine whether there is a correlation between advertising and enhanced sales and profit level.

SCOPE AND LIMITATIONS OF THE STUDY

The scope of this research work is limited to the effect of advertising on consumer buying behaviour with a case study of First Bank of Nigeria Plc. First Bank of Nigeria Plc was chosen as a case study because it is among the leading wheat milling industry in the country.

Some of the limitations of this research work are: firstly, time and finance constraints affected this research work in one way or the other. Secondly, is the lack of accessibility  to relevant data to be used for the research work.

Finally, the attitude of most organisations in term of secrecy was a limitation to the research work. Some employees were not at ease in discussing their views regarding their advertising methods used on consumers due to reasons best known to them.

​​​​​​​SIGNIFICANCE OF THE STUDY

Though people often focus on the negative side when they discuss the effects of advertising, it is important to note that advertising does have its positive side. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

This research work is significant to managers of organization, government and students of higher learning or researchers. It is significant to managers of organization i.e. management at strategic level because it  will  assist  them  to verify the economic implication involved with advertisement and compare the cost plus benefit on the enhanced sales and profit level.

This research work is also significant to government because the economic importance of advertisement is it contribution to the growth or expansion of most businesses. As such it contributes to the economic growth and stability to the Nigerian economy due to tax accrued to the government as revenue generated.

Finally, it will serve as a source of literature to students of higher learning or researchers that want to write or improve on it.

1.5 RESEARCH QUESTIONS

1. What is the effect of advertisement on consumer  buying behavior ?

2. Is advertising campaign carried out in persuasive to make consumers to buy their product ?

3. What is the relationship between  advertisement  and the buying behaviour of consumers ?