EFFECT OF ADVERTISEMENT ON CONSUMER BRAND PREFERENCE
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EFFECT OF ADVERTISEMENT ON CONSUMER BRAND PREFERENCE
Chapter I.
INTRODUCTION
The basic purpose of an advertiser is to reach out to potential customers and influence their knowledge, attitudes, and purchasing decisions. They invest a significant amount of money to keep individuals (markets) engaged in their products. To succeed, they must understand why potential consumers behave the way they do.
The advertisers’ goals are to collect enough relevant market data to construct accurate profiles of buyers–to locate the common group (and symbols) for communicating.
This entails studying consumer behaviour, including the mental and emotional processes as well as the physical activities of people who buy and use goods and services to meet certain needs and desires.
The essence of being in business for every commercial entity is to generate for sales and profits. To remain in business, an organisation must produce enough revenues from its products to cover operational costs and make a reasonable profit. For many businesses, the sales projection is the beginning point for budgeting or profit planning.
It is thus because, in most circumstances, it must be identified before production units can be established, and production units influence material procurement. However, many business leaders find it challenging to make sales decisions.
This is because future client demands are uncontrollable external elements that make it impossible to foresee, estimate, or accurately determine. Given the importance of sales to business survival and the relationship between customers and sales,
it is prudent for organisations to invest in programmes that can influence consumers’ decisions to purchase their products.
1.1 Background of the Study
In June 1836, the French newspaper La Presse became the first to integrate paid advertising in its columns, allowing it to cut its price, expand its audience, and boost its profitability; the formula was quickly imitated by all titles. Volney B. Palmer built the foundations of today’s advertising agencies in Philadelphia around 1840.
Palmer purchased significant amounts of space in numerous newspapers at a bargain in 1842 and resold it to advertisers at a higher price. The actual ad, including the wording, layout, and artwork, was still created by the company that wanted to promote; Palmer was essentially a space broker.
The situation altered in the late nineteenth century, when the advertising agency N.W. Ayer & Son was established. Ayer and Son provided to develop, produce, and carry out comprehensive advertising campaigns for its clients.
By 1900, the advertising agency had become the main point of creative planning, and advertising was well-established as a profession. Around the same time, in France, Charles-Louis Havas expanded the services of his news agency, Havas, to include advertising brokerage, becoming the first French group to organise.
Initially, agencies served as traders for advertising space in newspapers. N. W. Ayer & Son was the first full-service agency to take on responsibility for advertising material. N.W. Ayer was founded in 1869 and was based in Philadelphia.
An advertisement for a live radio broadcast sponsored by a milk manufacturer was published in the Los Angeles Times on May 6, 1930. At the beginning of the century, there were few job options for women in business; advertising was one of them.
Because women were responsible for the majority of household purchases, advertisers and agencies valued women’s perspectives during the creative process. In fact, the first sexually suggestive advertisement in America was made by a woman for a soap product.
Although understated by today’s standards, the advertising depicted a pair with the phrase “The skin you love to touch”.
The earliest radio stations were formed in the early 1920s by radio equipment makers and retailers who presented programmes to encourage people to purchase more radios. As time progressed, more non-profit organisations, such as schools, clubs, and civic groups, began to establish their own radio stations.
When the practice of sponsoring programmes became popular, each individual radio programme was often sponsored by a single business in exchange for a brief mention of the business’ name at the opening and end of the sponsored episodes.
However, radio station owners quickly recognised they could make more money by selling sponsorship rights in tiny time blocks to several businesses during their radio station’s broadcasts, rather than selling sponsorship rights to single firms each show.
1.2 Elements of the Problem
Many Nigerian enterprises have over the years undercut the significance of advertising in driving customer behaviour and brand preference. Some companies spend a lot of money advertising their products and then say that their sales volume is irrelevant.
This misperception appears to be founded on a perfectly understandable initial reaction: how can advertisers claim that advertising does not promote consumption or sales while spending so much money on it?
According to Ambler (2000), advertising has a significant impact on consumer consumption and sales volume. Adverts may not generate a large amount of sales in the short term, but they will undoubtedly enhance sales and earnings in the long run if done correctly.
Even if some marketers believe that accurate understanding of consumers–how they purchase, why they buy, and where they buy–is unnecessary, it is feasible to dupe unsuspecting shoppers into parting with their money in exchange for things they do not desire.
However, conceptions of advertising as a powerful force have persisted despite several empirical research demonstrating that the perception of advertising as a powerful persuasive force is mostly false.
1.4 Research Objectives
The research aims of this study are as follows:
1. To investigate the effect of advertising on consumer brand preferences.
2. Determine the most efficient advertisement channels for influencing customer purchasing behaviour.
3. To investigate the effect of celebrity endorsement on consumer brand preferences.
4. To identify variables that promote brand loyalty among consumers.
1.5 RESEARCH QUESTIONS.
To meet the study’s objectives, the following research questions were used:
1. Do advertisements influence customer brand preferences?
2. Which advertising medium is most effective in influencing consumer purchasing decisions?
3. Does celebrity endorsement influence customer purchasing preferences?
4. What aspects boost consumers’ brand loyalty?
1.6 Research Hypothesis
1. Ho: Advertisements do not impact customer behaviour or brand choice.
Hi: Advertisements influence customer behaviour and brand preferences.
2. Ho: There is no statistically significant association between media channel and advertising efficacy.
Hi: There is a considerable relationship between the media channel and the effectiveness of advertising.
1.7 Significance of the Study
The study will assist businesses understand the value of advertising. It will also allow businesses to organise their advertisements and brands to be more enticing, resulting in increased sales and greater performance.
Because this study provides a clear understanding of how advertising might impact consumer behaviour, many businesses will be motivated to use advertisements to market their products.
When enterprises begin to increase their sales and profits as a result of advertising, the Nigerian economy would benefit since the government will receive more tax revenue.
The study’s results and recommendations can assist businesses develop effective advertising methods and appealing brand designs to attract more customers for their products and services.
1.8 SCOPE OF THE STUDY.
The study focuses on the impact of advertising on brand awareness and consumer preference in Uyo, with selected customers of various beverage brands serving as a focus group.
1.9 Limitations of the Study
The sole drawback encountered by the researcher over the course of conducting this study was the delay in gathering data from various respondents.
Because of their hectic schedules and the nature of their jobs, the majority of respondents were hesitant to fill out questionnaires. The researcher struggled to obtain responses from the various respondents, which nearly jeopardised the study’s success.
1.10 Definition of Terms
Advertisement: Any non-personal communication via mass media that is paid for by a specific sponsor(s).
Advertising is a process activity or programme that must be used to develop a message and deliver it to its intended audience.
Influence is defined as the effect of someone or anything on another person or thing.
Media: The primary means by which a significant number of people obtain information or entertainment.
Consumers are those who buy things and use them for services.
Product: Anything that can be provided to the market for attention, acquisition, consumption, or use that may meet a need or desire.
Services are any act of performance that can be delivered to another that is essentially palpable and does not result in the acquisition of something.
Consumer Behaviour: The behaviour that the consumer will demonstrate when seeking for purchase.
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