IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOUR IN NIGERIA
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IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOUR IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study
Cadbury Nigeria Plc was founded in 1965; the company had only two brands: Pronto and Bournvita, but they were doing well. In fact, the decision to establish a local company by Cadbury Fry export, as the overseas company was then known, was influenced in part by the excellent results obtained from importing both products for sale in Nigeria.
Earlier in 1959, the company began to retain stockpiles locally, and by 1963, sales had increased to the point that local packaging of bulk supplies was adopted. Local manufacturer sighed before making a move that would pay out handsomely later.
Nigeria, as seen from the United Kingdom, was a fast rising market with enormous promise in several fields of industry and trade prior to and immediately following independence.
Some perceived the new nation via the merchant list’s perspective as being available for very little investment. Cadbury Nigeria Plc began operations in 1965 with the acquisition of local manufacturers Bournvita and Pronto, and by 1966 had established a new factory site on Isheri Road in Ikeja, Lagos.
Previously, an expanded production facility at the company’s take-off base in Apapa had resulted in the creation of two additional items (Goody Goody and Tomapep).
The Ikeja factory moved quickly, but it was completed before the Nigerian Civil War broke out. For a time, the war threatened the very foundation of the young company because over 50% of total turnover came from the eastern states.
Fortunately, the government imposed a ban on imported finished food and drinks, and Bournvita and Pronto, the only food drinks manufactured in Nigeria at the time, suddenly had the available market to themselves.
Sales skyrocketed, and have continued to rise in Naira value terms ever since, with the exception of a minor decline in 1984, which occurred during the terrible years of import licences.
In 1984, the company’s chairman, Mr. G.O. Onosode, explained to shareholders that profit margins were impacted by the need for high-quality raw materials from local importers, which could cost up to three times more than importing directly.
Over the past couple of years, “We have ensured a stable future in materials supplies for our company’s food, drinks and confectionery products, and put ourselves in a position where we can supply other manufacturing enterprises with some of their raw materials needs” .
The Trebor brand is now part of the Cadbury Nigeria product portfolio, a significant addition to the existing seventeen (17) goods, with more to come. The average number of people, including directors, employed by the company in 1997 was 1,227,
with only two foreigners; approximately 300 are senior staff, forming a work force whose slogan is the pursuit of excellence for themselves and the company.
Advertising, as a marketing strategy, is so convincing that it has become an essential part of most organisations’ heritage in promoting their products. To this goal, this study investigates the impact of advertising on customer behaviour.
1.2 Statement of the Research Problem
It has been noticed that consumer product makers confront one or more challenges while making advertising decisions. There are several elements to consider while making a good advertising selection.
Advertising can betray its function as a source of information by misrepresenting and omitting crucial facts. Advertisers’ pressure on publications or programmes to avoid answering issues that may be humiliating or inconvenient can also undermine the informative role of media.
The use of “brand”-related advertising might cause significant concerns. Often, there are only minor differences between similar products from different brands, and advertising may attempt to persuade people to act based on irrational motives (“brand loyalty,” status, fashion, “sex appeal,” etc.) rather than presenting differences in product quality and price as rational choices.
Advertising can be tasteful and upholding high moral standards, and sometimes even morally uplifting, yet it can also be vulgar and humiliating. It frequently targets specific motivations such as envy, prestige seeking, and lust. Today, some ads actively strive to shock and titillate by leveraging morbid, perverted, or pornographic content.
On that basis, this project aims to give ideas for how adverts might be presented to avoid erroneous or incorrect interpretation.
1.3 Aim and Objectives of the Study
The purpose of this research is concerned with the impact of advertising on consumer behaviour in Nigeria, with the following objectives:
· Determine the effectiveness of advertising in raising product awareness.
· Determine the benefits of advertising for Cadbury Nigeria Plc.
· Determine if advertising has increased brand loyalty among customers.
· Determine advertising’s effectiveness in influencing consumer behaviour.
· Determine if it has improved the company’s ability to give customers with relevant information about its items.
· Determine the effectiveness of an advertisement based on its attractiveness.
· Investigate the impact of personality in advertisements on consumer behaviour.
· Determine the influence of advertisement keywords and captions on customer purchase behaviour.
1.4 RESEARCH QUESTIONS.
In establishing the impact of advertising on consumer behaviour in Nigeria, with a focus on Cadbury Nigeria Plc, specific research questions are always presented to be tested for validity. The following research questions will be tested:
· Can advertisements influence customer behaviour?
· Do effective marketing methods increase product awareness?
· Do you prefer advertising or in-person marketing?
· Does the advertisement affect your demand for Cadbury products?
· What factors influence customer purchasing decisions and behaviours?
· What is the main objective of advertising?
· Who are the well-known advertising personalities inside the organisation and among consumers?
1.5 Significance of the Study
Advertisement is ubiquitous in our lives; television, radio, newspapers, and billboards are common mediums through which advertisements reach us.
Advertisers and marketers are more interested with understanding the consumer’s motivations and purchasing patterns in order to apply various techniques to influence consumer behaviour.
Because of the demand for individuality and variety among consumers, product marketers must focus primarily on how to discern consumers’ psyches; what they enjoy, why they like it, and what they would appreciate about Cadbury products.
The corporation should be concerned with variety, product upgrades, and savings programmes to make it more influencing and effective for the consumer’s psyche, therefore it is critical to identify the aspects of good commercials since customers are susceptible to marketing effectiveness.
1.6 Research Hypothesis
The following tentative hypotheses will be tested:
(1) Hypothesis: Advertising does not promote product
Awareness among customers
Hl: That advertising raises product awareness.
consumers
(2) H0: Advertising does not benefit the company in
Influencing consumer behaviour and increasing market share.
H1: That advertising helps the company to influence
Consumer behaviour and increasing market share
1.7 Scope of the Study
Because advertising has diverse meanings to different groups of people, particularly based on its origin, this exercise is exclusively limited to advertising because it influences consumer behaviour.
Advertising is now widely used to promote services such as banking, insurance, and airlines, among others. The scope of this study will be limited to regions where its impact on consumer behaviour may be fully appreciated. There is no other place in the country that can provide a high-quality avenue for testing advertising efficacy than Lagos State.
1.8 Limitations of the Study
The following are predicted to impede the effective conduct of this research work.
· Identifying current and future users of the company’s product.
· Inadequate and inaccessible data from respondents during questionnaire administration.
· Time constraint for completing the study.
· Financial constraints.
1.9 Definition of Terms
Advertising is any paid type of non-personal presentation and promotion of ideas, goods, and services by identifiable sponsors.
The American Marketing Association defines an advertising agency as “an independent business organisation composed of creative and business people, who develop, prepare, and place advertising media for sellers seeking to find customers for their goods and services”
Brand Loyalty: It describes the degree of loyalty that users have to a specific product; the level of loyalty can range from zero to absolute.
Consumer products are goods that are intended for use (without further processing by the final consumer). It is divided into three main categories:Consumer goods, shipping goods, and especially goods
Casual Research: these are things that teach us about the elements that contribute to the ineffectiveness of a current scenario. The
Causes and effects are known using the casual approach of study.
Exploratory research is research that has already been conducted but seeks to learn about various topics. It is also known as a secondary source of information.
Descriptive Research: This form of research is intended to lay the groundwork for anticipated solutions (for the goal of testing hypotheses or answering questions linked to the subject area or problem for which we are seeking solutions).
Advertisement Appeal: The slogan or stanza that creates a need in an advertisement. Attractive personality, commercial keyword/caption, and some knowledge-enhancing information all contribute to the appeal of a given brand advertisement. They encourage the consumer to focus his or her attention on a specific brand of goods (Wells et al., 1995).
Acceptance of Advertisement: Acceptance refers to how much a consumer depends on the advertisement’s information and acts in response to the appeal, keyword / caption, stanza, slogan, and model personality (Wells et al., 1995).
Consumer behaviour refers to the decision-making and physical action that people participate in when evaluating, purchasing, utilising, or disposing of goods and services (Loudon and Bitta, 1994).
1.10 PLAN OF STUDY
The study will be broken into five chapters.
The first chapter, which is the introduction, will examine the numerous objectives that will be reached by carrying out this research effort. In addition, the research hypothesis, scope, and limitations of the study will be stated, among other things.
The second chapter, a literature review, examines the existing literature on advertisement, including its genesis, kinds, impacts on organisations, and how it affects consumer behaviour.
Chapter three, which covers the study’s structural composition, will explore the impact of advertising on consumer behaviour, as well as the methodology used in this research.
The fourth chapter involves data analysis. The data to be analysed will be gathered through a structured questionnaire distributed to the workforce of Cadbury Nigeria Plc.’s Lagos branch. These data will be analysed using Chi-Square analysis.
The summary, conclusions, and recommendations will be presented in Chapter 5.
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