Project Materials

FEEL GOOD ADVERTISING AND ITS EFFECT ON CONSUMER REPEAT PURCHASE BEHAVIOUR

A study of De-united Industries Ltd makers of Indomie noodles

Abstract

This study the titled feel good advertising and its effect on consumer repeat purchase behavior is important to the Business organizations, Academics and the Researcher.

A questionnaire was used to gather data and the results of the analysis shows that, the relationship between Feel good advertisement and consumer purchase behavior is positive and Feel good advertising has a significant effect on consumer repeat purchasing behavior.

1.1 BACKGROUND

Advertising is the means of informing as well as influencing the general public to buy a product or services through visual or oral messages. A product or service is advertised to create awareness in the minds of potential buyers through various advertising mediums such as Newspaper, Magazines, Television, Radio, Posters, Hoardings, Billboard and in recent time internet and web advertising.

It is a promotional activity for marketing a commodity. In the present day world of mass production and distribution, advertising serves as a powerful tool in the marketing process. Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability etc.

Advertising is the integral part of our daily life. It is a pervasive method of marketing in society which encourages people to purchase goods and services. Advertising contributes to bring about all round development of the economy by increasing demand and by encouraging economic activities which in turn improves the income.

It motivated people to consume more material and thereby improves their standard of living. Effective advertising generates demand for goods and services and calls for more production which requires more physical and human resources, thus creating employment opportunities.

In the modern age of large scale production, producers cannot think of pushing the sale of the product without advertising. Advertising has acquired great importance in the modern world where tough competition in the market and fast changes in technology, altered our lifestyle.

The term ‘advertising’ is derived from the Latin word ‘advertere’ which means ‘to turn’ the attention. Every piece of advertising attempts to turn the attention of the readers or the listeners or the viewers towards a product. The most widely accepted definition of advertising is the one which is given by the American Marketing Association, according to which advertising is “any paid form of non-personal presentation and promotion of goods, services and ideas by an identified sponsors” ( Kazmi and Batra, 2008).

But the definition has some limitations because it does not talk about the persuasion aspect of advertising, without which it is very difficult to achieve advertising objectives. A survey of recent advertising and marketing textbooks makes it obvious that there is no universally accepted definition of advertising;

however certain recurring elements such as paid, non personal, identified sponsors, mass media, act of persuasion makes advertising to be controlled means of mass communication, may take any form-visual, oral or written to promote a product through persuasive communication to achieve a pre determined objectives, changing and reinforcing the desired attitude of the consumers at the point of purchase.

The advertising message is considered as an important component in advertising communication process. It is the thought, idea, attitude, image, or other information that the advertiser wish to convey to the target audience. How an advertising message is presented is critically important in determining its effectiveness.

An ideal advertising message should command and draw attention, hold the interest, arouse desire for possession of the product, and elicit action (Gupta,2012). The effectiveness of an advertising message depends to a large extent on its visual contents.

The advertiser must locate an appeal, theme, idea or an unique selling proposition. An advertising appeal refers to the approach used by an advertiser to attract the attention or interest of the consumer and influence their feelings towards the product, service or idea.

Through the use of different kinds of appeals, advertising attempts to persuade and influence. The visual and non-verbal elements in advertising play a dominant role in attracting the consumers. A good number of advertisements uses very little written information and mainly focus on the visual elements to convey the message.

The visual elements used in the advertisements not only convey the information, but also reinforce the advertising claims. Audiences often develop impressions or image based on certain

illustrations and pictorial representation depicted in advertisements which increases immediate recall value. The study focuses on feel good advertising and its effect on consumer repeat purchase behavior.

1.2 STATEMENT OF THE PROBLEM

Companies are spending large amount of investment on advertisement because they want to keep their product at the top of the customer’s mind.

In today’s market customer is king, and the way companies portray the feelings of satisfaction a consumer can get from the consumption of a particular goods or services can have an influence on the consumer repeat purchase.

However, given the fact that many elements contribute to the buying decision of the consumers we want to examine if the feel good advertising has effects on the consumer repeat purchase behavior.

1.3 OBJECTIVES OF THE STUDY

Our aim is to study the feel good advertisement and its effect on consumer repeat purchase behavior. With the following objectives;

1. To have an overview of advertisement and consumer purchase behavior.
2. To determine the relationship between Feel good advertisement and consumer purchase behavior.
3. To find out if feel good advertising has any effects on consumer repeat purchasing behavior.

1.4 RESEARCH HYPOTHESIS

Hypothesis one

Ho: The relationship between Feel good advertisement and consumer purchase behavior is positive.

Hi: The relationship between Feel good advertisement and consumer purchase behavior is negative.

Hypothesis Two

Ho: Feel good advertising has a significant effect on consumer repeat purchasing behavior.

Hi: Feel good advertising has no effect on consumer repeat purchasing behavior.

1.5 SIGNIFICANCE OF THE STUDY

In this work, attempt has been made to identify its significance to: Business organizations, Academics and the Researcher.

Business Organizations:

The need for prudent management of financial resources in an organization is of great concern. It’s amazing however; that at anytime an organization is going through some hard times financially, first thing that runs into the mind of the management staff is a cut-down on advertisement and promotion budget or eliminate them entirely as a step to ameliorate their predicament.

This study therefore, has been designed in such a way as to aid organizational managers realize that measurement is very important in advertising.

Therefore, before decisions are taken on whether to eliminate advertisement or cut-down the budgets, efforts must be made towards ascertaining the impact of such advertisement, hence; a call for checks and balances.

To Academics:

This work is on Feel good advertising therefore, this work will provide a basis for further research works. To further achieve this, relevant and authentic references have been cited.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

This study was carried out only in Lagos State and the markets within the state apart from few visits made to the company in Ogun State. The study is limited to De-united Industries Ltd and its products indomie noodles.

However, efforts were made to identify other competing brands of noodles such as Mimi noodles, Chikki noodles, O’ noodles and the golden penny noodles and at the end, conclusive reports were drawn for the success of this work. The researcher’s efforts to obtain intensive and conclusive information necessary for a comprehensive work on this study were restrained by the following;

Attitude of Respondents: Most of the responsible officials of De-United were reluctant to divulge some vital information which they claimed might be used in favor of their competitors. The high level of illiteracy amongst the

market woman who sell indomie noodles poised another threat, in that some of these woman felt being disturbed in their businesses and were not ready to waste their time in answering questions that would not profit them. On the other hand, other individuals who sell both indomie noodles and other noodles were just indecisive.

Cost: Efforts to obtain expensive but very relevant materials were not met due to lack of sufficient fund. This factor also restricted the researcher’s study in only Lagos State, apart from few visits to the company in Ogun State, as he could not afford the high transportation cost of visiting other areas. Most of the visits in some areas were made on motorcycle with its attendant risks.

Time: It was also very difficult for the researcher to combine this work with his official duties in the place of work. Sometimes, the few hours permission he got from his superior officer in the office were not enough to carry out a comprehensive study for this topic.

Another time constraint was in the area of some respondents giving attention at their convenience and as a result, the researcher was often asked to come back next time for attention.

1.7 DEFINITION OF TERMS

Advertising: According to Arens (2004:7), advertising is the structured and composed non personal communication of information, usually paid for and usually persuasive in nature, about products (goods, services or ideas) by identified sponsors through various media.

Consumers: are people who purchase and use goods or services to satisfy particular needs and wants.

Consumer behavior: are those acts of individuals directly involved in obtaining and using economic goods and services. (Nwaizugbo 2004:66)

Perception: this refers to the personalized way people sense, interpret and comprehend various stimuli.

Impact: The Oxford Advanced Learners Dictionary defines impact as the powerful effect that something has on something or somebody.

Market: the set of all actual and potential buyers of a product or service. Kotler and Armstrong (2007:7).

Brand: This is a name, term, symbol, design, mark or a combination of these that identifies the product of a manufacturer or differentiates it from those of competitors.

Brand Equity: this refers to the added value endowed to products and services.

Brand promise: Is the marketer’s vision of what the brand must be and do for consumers.

Brand Interest: An individual’s openness or curiosity about a brand

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.

Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study.

Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.