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(A SURVEY OF SELECTED FIRMS IN PORT HARCOURT)
Abstract
The study examined source credibility and advertising effectiveness. The survey research design was used for the study. The population of this study consists of 491 staff of four Manufacturing firms in Port Harcourt. The Taro Yemen’s formula was used to determine the sample size of 221. Data were gathered from primary and secondary sources. A self-design questionnaire on source credibility and advertising effectiveness was used for the collection of data. The researcher visited the firm’s concerned and administered the instrument personally. In analyzing the data for this study, the Mean and Standard Deviation anlaysis was adopted, while the hypotheses were tested with Spearman Rank Order Correlation Techniques, making use of Statistical Package for Social Science (SPSS), version 22.0. Findings from the study reveals that majority of the respondents are of the opinion that Trustworthiness improve Brand Awareness, Trustworthiness improves the Brand Recognition in manufacturing firms and that there is a significant relationship between Attractiveness and Brand Awareness in selected Manufacturing Companies in Port Harcourt. Based on the finding of the study, it was recommended that management should seriously consider factor like the credibility, product-match and physical attractiveness of a celebrity before hiring him/her to endorse a product or brand. Manufacturing companies should invest in their technology if they want to gain loyalty of their customers and firms using celebrities as endorsers should always endeavor to produce quality products that will foster trust and believability to both the fans of these celebrities and their customers.
Table of Contents
Declaration iii
Certification iv
Dedication v
Acknowledgment vi
Table of Contents viii
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the study 1
1.2 Statement of the Problem 3
1.3 Purpose of the Study 4
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Significance of the study 5
1.7 Scope of the Study 5
1.8 Limitations of the Study 6
1.9 Definition of Terms 6
CHAPTER 2 7
REVIEW OF RELEVANT LITERATURE 7
2.0 Introduction 7
2.1 Conceptual Framework 7
2.1.1 Concept of Source Credibility 8
2.1.2 Dimension of Source of Credibility 11
2.1.3 Advertising Effectiveness 15
2.1.4 Measures of Advertising Effectiveness 16
2.1.5 Types of advertising 20
2.1.6 Source credibility and advertising effectiveness 21
2.2 Theoretical framework 22
2.3 Review of Related Empirical Works 23
2.4 Summary of Review of Related Literature 24
CHAPTER 25
RESEARCH METHODOLOGY 25
3.1 Research Design 25
3.2 Population of the Study 25
3.3 Sample and Sampling Procedure 26
3.4 Methods of Data Collection 43
3.5 Validation of the Instrument 43
3.6 Reliability of the Instrument 43
3.7 Administration of the Instrument 44
3.8 Data Analysis Techniques 44
CHAPTER 4 45
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 45
4.1 Data Presentation 45
4.2 Demographic Analysis of Respondents 46
4.3 Descriptive Statistics/Analysis (Univerate Data Analsysis) 49
4.4 Testing of Research Hypotheses (Bivariate Analysis) 52
4.6 Discussion of findings 58
CHAPTER 5 62
SUMMARY, CONCLUSION AND RECOMMENDATIONS 62
5.1 Summary of findings 62
5.2 Conclusion 63
5.3 Recommendations 64
5.4 Contribution to Knowledge 65
5.5 Recommendations for Future Research 66
REFERENCES 67
APPENDIX A 71
QUESTIONNAIRE 72
CHAPTER 1
INTRODUCTION
1.1 Background of the study
The past decade has witnessed the development of information and communication technologies that enable easy and rapid interaction between customer and advertiser. As a result, advertisers are increasingly relying on various modes of interactive technology to advertise and promote their products and services. Advertisements play a major role in changing the perception and consumption pattern of the society in general advertising is a form of controlled communication that uses strategies to convince to make a buying decision the audience and take advantage of certain services.
Every Advertisement aims to create awareness and arouse interest in the minds of customers. To do so advertisers employ several of marketing techniques. Source Credibility is “a term commonly used to imply a communicator’s positive characteristics that affect the receiver’s acceptance of a message. The concept of credibility has received considerable attention since the late 1990s when the internet began providing a new information interaction environment that allowed users to seek for information and communicate with others in ways never been possible. As a consequence the researchers and practitioners in diverse fields including information science, marketing, management information systems, communication studies and psychology have examined credibility from a variety of different perspectives (Danielson, 2007). Source credibility can help to increase the efficiency of advertisement since it can influence consumers” attitudes and their behavior (Forouhandeh et al., 2011). Belch & Belch (2009) observed that
trustworthy and expert sources are more persuasive than sources that are perceived as having less trustworthiness and expertise.
Credibility is the objective and subjective components of the believability of a source or message, credibility has two key components: trustworthiness and expertise, which both have objective and subjective components. Trustworthiness is based more on subjective factors, but can include objective measurements such as established reliability”. Ohanian, (2000) defines Source credibility as communicator’s constructive characteristics that affect the receiver’s acceptance of a message. (Ohanian, 2000).Credibility signifies the scope of the source, perceived of having relevant expertise and knowledge of the subject which can be trusted and who gives an honest and believable opinion on the subject or the product, Brand and Services (Ohanian, 2000).
The Source can be the Celebrity Endorsers Credibility, Company’s credibility, and advertisings credibility. Perceived expertise and trustworthiness of the endorser is an important bases of credibility, and effectiveness of celebrity and other endorsements derives from the credibility of a product’s endorser (Hovland, Janis, and Kelly 2003; Ohanian 2001). Endorsers are also used as sign in low involvement situations, whereby a consumer’s reaction to the endorser is directly passed on the brand (Petty, Cacioppo, and Schumann 2003).
Organizations and Groups also act as endorsers by providing either their expertise or trustworthiness (Kertz and Ohanian 2002). They can enhance the credibility of an advertisement. Advertisement effectiveness helps ordinary consumers save their precious time by providing their expertise and personal charisma. In other words, by using an endorsement, the advertiser is asking the consumer to rely on the endorser’s judgment about the service or product in making a purchase decision. Here comes the concept of reliance. This proposed reliance on the endorser is what the advertiser hopes will occur in using the endorsement and the company thinks of cashing on. However, reliance is one of the most vital base for the endorser’s legal liability when claims about the product are false or deceptive (Kertz and Ohanian 1992). Source credibility and Advertisement effectiveness analyze the factors which make advertising effective and credible. There are legal implications if consumer rights are not protected from the misleading advertising and other media sources.
1.2 Statement of the Problem
The credibility of an advertisement refers to a person’s perception of the truth presented in the content. It can be discussed in other forms, including corporate credibility (the perceived truthfulness of the perceived sponsor) and ad credibility (message content and endorsers’ credibility. Effectiveness of advertising is one of the very important issues in the realm of advertising.
Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Most business establishments generally cherish competition especially when it is healthy and worthwhile. Competition also thrives well in a mixed economy such as Nigeria where the tents of capitalism provides for free enterprise activities.
The problem of competition arising from other companies in the same product line and also cost of operation, in today’s business environment, as well as lack of agility can hinder an organization’s ability to be competitive. With high capital costs and ever-increasing energy expenditures, an organization can become locked into patterns where it is implementing shortsighted, cost-cutting measures that can adversely affect operational productivity— decreasing overall market responsiveness. It is generally known that advertisement is the creation of awareness for goods and services directed at promoting sales of such goods and services. It is in this light that this research set out to critically study the impact of Source Credibility and Advertising Effectiveness of firms in Port Harcourt Metropolis.
1.3 Purpose of the Study
The general purpose is to examine Source credibility and advertising effectiveness of firms in Port Harcourt Metropolis while the specific objectives are:
1 To examine the relationship between Trustworthiness and Advertising effectiveness of firms in Port Harcourt Metropolis.
2 To examine the relationship between Expertise and advertising effectiveness of firms in Port Harcourt Metropolis.
3 To examine the relationship between Attractiveness and Advertising effectiveness of firms in Port Harcourt Metropolis.
1.4 Research Questions
1 To what extent does Trustworthiness enhances Advertising effectiveness of firms in Port Harcourt Metropolis?
2 To what extent does Expertise enhances Advertising effectiveness of firms in Port Harcourt Metropolis?
3 To what extent does Attractiveness enhances Advertising effectiveness of firms in Port Harcourt Metropolis?
1.5 Research Hypotheses
The following null hypotheses are formulated from the above specific objectives:
Ho1: There is no significant relationship between Trustworthiness and Advertising effectiveness of firms in Port Harcourt Metropolis.
H02: There is no significant relationship between Expertise and Advertising effectiveness of firms in Port Harcourt Metropolis.
H03: There is no significant relationship between Attractiveness and Advertising effectiveness of firms in Port Harcourt Metropolis.
1.6 Significance of the study
The study will be a source of secondary data to other researchers who wish to conduct studies on related issues. It will again act as mainstream for generating, keeping and maintaining customers.
The study will allow the organizations to structure suitable and effective communication for their social campaigns when pursuing collaboration efforts or working independently.
1.7 Scope of the Study
This study is confined by scope to three main areas namely: Content scope; geographical scope and unit scope:
Content scope: This study address theoretical content bordering on Source credibility and Advertising Effectiveness.
Geographical scope: This study focus on four (4) selected firms situated in the Port Harcourt metropolis of River State, Nigeria. These Firms are: Expand Global Industrial Ltd, Procter and Gamble Nig. Ltd, Dangote Noodles and Natural Prime Resources Nig. Ltd.
Unit scope: The unit scope of the analysis covers the individual elements and members of the selected firms; hence analysis shall examine all the workers of the target firms as units of measurement for the study analysis.
1.8 Limitations of the Study
The study was limited to Port Harcourt Metropolis due to the financial constrained and geographical distance.
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 Definition of Terms
Source credibility: is “a term commonly used to imply a communicator’s positive characteristics that affect the receiver’s acceptance of a message
Advertising effectiveness: Advertising effectiveness can be defined as the extent to which advertising generates a certain desired effect Trustworthiness: able to be relied on to do or provide what is needed or right: deserving of trust
Expertise: as “the extent to which a communicator is perceived to be a source of valid assertions” and trustworthiness as “the degree of communicator’s intent to communicate the assertions he considers most valid”.
Awareness: Extent to which the intended audience or targeted customers are aware of an advertising message.
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