(A CASE STUDY OFDE-UNITED INDUSTRY LIMITED MAKERS OF INDOMIE NODDLES)
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ABSTRACT
The study is determined to examine the impact of advertising on consumer behaviour. The case study approach of data collection to empirically examine the impact of advertising on consumer behaviour. The population of the study is made of all of De-United Industry Limited producers of Indomie Noodles in Port Harcourt Metropolis, Rivers State, which was unknown.The sample size of this study is judgmental sample of 100 respondents which comprise of senior and junior staff of De-United Industry Limited. A self designed questionnaire was used to collect data from respondents. The simple percentage was used to analyse the response. The Chi-Square statistical techniques was used to test the hypothesis. Findings revealed that there is a significant relationship between advertising and consumer behaviour. Based on the findings of the study summary, conclusion and recommendations were made that Advertising strategy or tool cannot be overlooked in the business organization despite the fact that advertising spending is reducing when compared with promotional spending, there is need to do cost-benefit analysis of every advertising programme, i.e. there is need to evaluate every programme of advertising to know its contributions to the fulfillment of the firm’s objectives, there is need for business organizations to set advertising objectives. This will be the basis from which the success and failure of an advertising programme can be measured, there is need to determine advertising spending through the preparation of advertising budget. This can be based on advertising objectives which include increasing sales volume, informing customers of a new product or creating awareness of an old or new product in the mind of the consumers and customers and advertising should not focused on consumers alone but all who are concerned about the success of the firm’s new and as well as old products in the market place.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Consumer behavior is relatively a new topic which evolved after the World War II (Fullerton, 2013). Since the early 1950s, the sellers market had disappeared and the buyers market had come up (Bedoya, 2003). This may refer to be a paradigm-shift which diverted the manufacturer’s attention from product to consumer and specially focused on the consumer behavior (Priest, Carter and Statt, 2013). The shift of marketing concept from simple selling to consumer-focused trade has become an independent field of study. The development of consumerism and consumer legislation emphasizes the significance which is given to the consumers and their behavior (Al- Jeralsy, 2008; Bedoya, 2003).
Consumer behavior signifies how individuals make decisions to utilize their valuable resources such as time, money and effort or consumption-related matters such as what they buy, when they buy and how they buy (Priest, Carter and Statt, 2013).
Effective communication is a part of a company’s promotional activities, and may also be referred to as co-ordinated seller’s initiated effort to establish channels of information and persuasion to fasten sales of goods and services, or the acceptance of ideas or point of view (Akirika 1996).The marketing communication mix consist of a promotional tool which include various forms of advertising, sales promotion, personal selling, publicity program and public relations. Here, we will be examining the impact of advertising on consumer buying behaviour.
Advertising is a non-personal paid form of presentation of ideas, goods and services or message to educate the target audience by an identified sponsor (Longman 2000). Advertising is of three general means in terms of communication. We read it or watch it, and there are almost countless means of delivery with sales message. The heart of any business success lies in its advertisement. Most aspect of your businesses depend on successful advertisement. Without advertisement the business may offer the best product services in the industry but none of the potential customers would know about it. (Kristie Lorette 2006).
Winston (2005) in his own view report that industries which advertise heavily, tend to have higher profit rate than low advertiser so that study will also show how sales is affected by advertising because of the long term effect it has on sales.This study however, centers on the impact of advertising on consumer behaviour. This work sheds light on how advertising can really affect a consumer’s buying behaviourtoward Indomies instant noodles.
1.2 STATEMENT OF PROBLEM
Advertising is costly; often its effects are uncertain, and sometimes it takes a while before it makes any impact on consumers’ buying behavior. It is for these reasons that many companies think it appropriate, occasionally to reduce expenditures on advertising or to eliminate it. On the other hand, some companies sometimes consider it unnecessary to advertise when their brands are already enjoying great success without advertisement. Such behavior implicitly fails to consider the fact that advertising is not just a current expense or mere exercise but an investment.
Competition poses another problem area of this study. Prior to year 2004, indomie was the only noodles in the market, which means, absence of competition. Given this situation, the product recorded high sales within the afore-mentioned period. Today, the massive introduction of other noodles had made way for competition as so many women who used to sell only indomie noodles now share their resources among the different brands in order to maximize profit. Also, identified are the children who are seen as the chief consumers of indomie noodles. Before now, the indomie jingles (indomie, indomie,indomie noodles, delicious and tasty) was sang often among them. Today, it’s amazing how these children now sing the mimi noodles jingles more than the popular indomie jingles. This means that perhaps, these children hear more of the mimi jingles than that of indomie, and as a result, a good percentage of them would no doubt change from consumption of indomie to mimi. All these, have resulted in low sales of indomie noodles. It is as a result of this that the researcher seeks to evaluate the impact of advertising on consumer behaviour with special reference to De-United Industry Limited: Makers of Indomie Noodles.
1.3 OBJECTIVE OF THE STUDY
The main objective of the study is to examine the impact of advertisingon consumer behaviour. The specific objectives are as follows:
- To examine the relationship between electronic advertising andconsumer behaviour.
- To examine the influence of print media on consumer behaviour.
iii. To find out the relationship between direct mailing and consumer behaviour.
- To examine the influence of out-door advertising on consumer behaviour.
1.4 RESEARCH QUESTIONS
- Does electronic advertising relate with consumer behaviour?
- Does print mediarelate with consumer behaviour?
iii. Does direct mailing relate with consumer behaviour?
- Does out-door advertising relate with consumer behaviour?
1.5 HYPOTHESES
Based on the objective of the study the hypotheses are stated as follows:
HO:There is no significant relationship between advertising and consumer behaviour.
HI:There is a significant relationship between advertising and consumer behaviour.
1.6 SIGNIFICANCE OF THE STUDY
This research is designed to be of great benefit to both business organizations, governments and the general consuming public.
It will remind them that advertising helps to promote their product and services in order to win consumer patronage and help gain competitive edge. It will equally be of use to organizations, as it will enable them to know where, when and how consumers appreciate.
1.7 SCOPE OF STUDY
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
- Content Scope: The content scope of this study involves an evaluation of the impact of advertising on consumer behaviour. The dependent variable is consumer behaviour, measured by demographic factors, cultural factors and social factors. While independent variable is advertising measured by electronic media, print media, direct mailing and out-door advertising.
- Geographical Scope:This study is delimited in Port Harcourt Metropolis with special reference to De-United Industry Limited producers of Indomie Noodles.
- Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of De-United Industry. The scope of this study is to ascertain the relationship between advertising and consumer behaviour.
1.8 LIMITATION OF THE STUDY
The study was limited by the following:
The level of frankness in response to questions by the respondents is quite doubtful.
Finance: Accessing fund for the research work as difficult and this to a great extent limited the quality of research activity.
Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.
Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.
1.9 DEFINITION OF TERMS
Advertising:it 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.
Perception: this refers to the personalized way people sense, interpret and comprehend various stimuli.
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