EFFECT OF ADVERTISING ON CONSUMER BRAND PREFERENCE: A CASE STUDY OF COCA-COLA COMPANY BENIN CITY TABLE OF CONTENT CHAPTER ONE: INTRODUCTION 1.1 Background Of The Study - - - - 1.2 Statement Of The Problem- - - - 1.3 Research Objectives- - - - - - 1.4 Research Questions- - - - - 1.5 Research Hypotheses- - - - - 1.6 Significance Of The Study- - - - - 1.7 Scope Of The Study- - - - - - - 1.8 Limitation Of The Study- - - - - - 1.9 Definition Of Terms- - - - - - CHAPTER TWO: LITERATURE REVIEW 2.0 Introduction-- - - - 2.1 Advertising- - - - - - 2.2 Theoretical Framework- - - - - 2.2.1 Hierarchy Of Effect Theory- - - - - 2.2.2 Means-End Theory- - - - - 2.3 Types Of Advertising- - - - - - 2.4 The Role Of Advertising - - - - - - 2.5 Methods Of Advertising- - - - - - 2.6 Advertising, Brand Awareness And Consumer Behaviour - 2.6 Best Brand Awareness And Management Techniques - 2.7 The Features And Objectives Of Advertising- - 2.7.1 Features Of Advertising- - - - - 2.7.2 Objectives Of Advertising- - - - - 2.8 Influence Of Advertising On Consumer Preference - - 2.8.1 sherman and deighton research - - - 2.8.2 deighton and raj research- - - - 2.8.3 VakratsasAnd Ambler Research- - - 2.8.4 Tran And Song Research- - - - - 2.8.5 Chakravarti, JaniszewskiAndUlkumen Research- - - 2.8.6 Andrews AndSrinivasan Research- - - - - CHAPTER THREE: RESEARCH METHODOLOGY 3.0 Introduction- - - - 3.1 Research Design - - - - - 3.2 Area Of The Study- - - - - - - 3.3 Population Of The Study- - - - - - 3.4 Sample Of The Study- - - - - - - 3.5 Instrument For Data Collection- - - - - 3.6 Reliability And Validity Of Instrument- - - - 3.7 Techniques Of Data Analysis - - - - CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION 4.0 Introduction- - - - - - - 4.1 Age Profile - - - - - 4.2 Test Of Hypothesis- - - - - - - 4.2.1 Hypothesis One- - - - - - - - 4.2.2 Hypothesis Two- - - - - - - 4.2.3 Hypothesis Three- - - - - - - CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.0 Introduction - - - - - - - 5.1 Summary - - - - - - - - - 5.2 Conclusion - - - - - - - - 5.3 Recommendation - - - - - - - REFERENCES - - - - - - - - APPENDIX - - - - - - - - - ABSTRACT The aptitude of this study is to determine the effect of advertising on consumer brand preference. . The main objective is to determine the type of advert media that is more effective for influencing consumer buying behavior. 50 copies of the questionnaire were administered to active consumers of coca-cola brands. The findings from the data collected revealed majority of the respondents are of the opinion that television is the best form of advertising tools Also, the study revealed that celebrity endorsement also motivates consumers into choosing a particular brand thereby increasing company’s sales volume and changing the perception of the consumers regarding their brand, which positively impacts on their buying behavior. On the basis of the above findings, some of the conclusions drawn included; advertising induces consumers behavior to purchase and apply for company goods, advertising is the best tool for promoting because it always contains all the necessary information needed about a given goods and services and finally, advertising increases sales volume of company’s product thereby increase market share.. As such, the author recommended that a company should continue advertising their products since it was found out that advertising increases sales revenue, this is not to say that the company shouldn’t embark on the promotion but emphasis be the most place of advertising. CHAPTER ONE INTRODUCTION 1.1BACKGROUND OF THE STUDY Advertiser’s primary objective is to reach prospective customers and influence their awareness, attitudes and buying behaviour. In the year June 1836, a French newspaper La Presse was the first to include paid advertising in its pages, allowing it to lower its price, extend its readership and increase its profitability and the formula was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the modern day advertising agency in Philadelphia. In 1842 Palmer bought large amounts of space in various newspapers at a discounted rate then resold the space at higher rates to advertisers. The actual ad - the copy, layout, and artwork - was still prepared by the company wishing to advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan, create, and execute complete advertising campaigns for its customers. By 1900 the advertising agency had become the focal point of creative planning, and advertising was firmly established as a profession. Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas to include advertisement brokerage, making it the first French group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in Philadelphia. In the early 1920s, the first radio stations were established by radio equipment manufacturers and retailers who offered some programs in order to sell more radios to consumers. As time passed, many non-profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and civic groups. When the practice of sponsoring programs was popularised, each individual radio program was usually sponsored by a single business in exchange for a brief mention of the business' name at the beginning and end of the sponsored shows. However, radio station owners soon realised they could earn more money by selling sponsorship rights in small time allocations to multiple businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single businesses per show. 1.2STATEMENT OF THE PROBLEM The role of advertising in determining consumer behaviour and brand preference has been undermined by many firms in Nigeria over the years. Some firms spend huge amounts of money advertising their products 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 hapless buyers into parting with their money in return for products that they do not want. However, models about advertising as a strong force have survived despite various empirical studies showing that the view of advertising as a strong persuasive force is largely unfounded. 1.3RESEARCH OBJECTIVES The following are the research objectives of this study: To examine the impact of advertising on consumer brand preference. To determine advertisement channels that are most effective for influencing consumer buying behaviour. To examine the impact of celebrity endorsement on consumer brand preference. To find out factors that encourages brand loyalty amongst consumers. 1.4 RESEARCH QUESTIONS In-order to achieve the objectives of this study, the following research questions were used: Does advertisement influence consumer brand preference? Which advertisement channel is most effective for influencing consumer buying behaviour? Does celebrity endorsement affect consumers buying preference? What factors encourage brand loyalty among consumers? 1.5 RESEARCH HYPOTHESES 1. Ho; advertisement does not influence consumer’s preference for a brand. Hi; advertisement influences consumer’s preference for a brand. 2. Ho: Advertisement does not influence consumer’sbehaviour. Hi: Advertisement influences consumers’ behaviour. 3. Ho: There is no significant relationship between type of advert media and effectiveness of advertisement. Hi: There is a significant relationship between type of advert media and effectiveness of advertisement. 1.6 SIGNIFICANCE OF THE STUDY This study will help firms understand the importance of advertising. It will also enable them structure their adverts and brands to make them more appealing in order to improve sales and lead to better performance. As this study gives a clear insight into how advertisement can influence consumer behaviour, many firms will be encouraged into using adverts to market their products. When firms start making more sales and profits as a result of advertising, the economy of Nigeria will be boosted, as more income from tax will be accrued to the government of Nigeria. The findings and recommendations of this study will go a long way in helping firms to adopt good advertising strategies, and appealing brand designs to help get more consumers for their products and services. 1.7 SCOPE OF THE STUDY The study is limited to the influence of advertising on brand awareness and consumer preference in university of Benin, using selectedconsumers of various coca-colabrands as a focus point. 1.8 LIMITATION OF THE STUDY The only limitation faced in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedule in school. I found it difficult to collect responses from the various respondents and this almost hampered the success of this study. 1.9DEFINITION OF TERMS Advertisement: Any form of non-personal communication through mass media that is paid for by an identified sponsor(s). Advertising: A process activity or program necessarily to prepare message get it to the intended market. Influence: The effect somebody or something has on somebody or something. Media: The main ways that large number of people generates information or get entertained. Consumers: Persons who buy goods and use it for services. Product: Anything that can be offered to the market for attention, acquisition, and consumption or use that might satisfy a need or want. Services: Any act of performance that can be offered to another that is essentially tangible and does not result in the ownership of anything. Consumer Behaviour: The behaviour at which the consumer will display if searching for purchasing.
EFFECT OF ADVERTISING ON CONSUMER BRAND PREFERENCE: A CASE STUDY OF COCA-COLA COMPANY BENIN CITY
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