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ABSTRACT
The research investigates the effect of advertising on consumer behavior (a case study of Glo) in the sense of how advertising influence consumers to buy or make purchase. The objective of this study was to examine the effect of advertising on consumers in the service industry, to identify factors that motivate consumers to make an offer, and also to find out the type of adverts that influence consumers to make a purchase. The target population of the research involved both male and female client/customers of Glo, the subscribers and some managers of the company. A sample size of 225 was chosen. Non-probability method of sampling was adopted in selecting a sample size. The main instrument used in collecting data was questionnaire. The study shows that consumers respond effectively to advertisement when it is informative, that is, when it provides useful information to supports consumers to make decision. However, advertisement makes a strong impact when it is appealing, pleasing to the eye and shows creativity in its concept. The frequency of adverts also makes customers create some likeness for the product. The adverts that mostly attract respondents were the innovative adverts. Most of the respondent sought more information on the product before making decision to buy. Advertisement also create awareness among the consumers through advertising. The words, colours, the cultural theme, the sound etc are the essential parameters that go a long way deciding the innovativeness of an advert. It is suggested that the Glo improved on the netnetwork to satisfy the interest and expectations of customers
TABLE OF CONTENTS
TITLE PAGE – – – – – – – – – i
CERTIFICATION – – – – – – – – – ii
DEDICATION – – – – – – – – – iii
ACKNOWLEDGEMENT – – – – – – – iv
ABSTRACT – – – – – – – – – v
TABLE OF CONTENTS – – – – – – – – vi
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY – – – – – 1
1.2 STATEMENT OF PROBLEM – – – – – 2
1.3 PURPOSE OF STUDY – – – – – – – 4
1.4 RESEARCH QUESTION – – – – – – 4
1.5 SIGNIFICANCE OF THE STUDY – – – – – 4
1.6 SCOPE OF THE STUDY – – – – – – 5
1.7 DELIMITATION OF THE STUDY – – – – – 5
1.8 DEFINITION OF TERMS – – – – – – 5
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 INTRODUCTION – – – – – – – 7
2.2 THEORETICAL FRAMEWORK – – – – – 9
2.3 REVIEW OF CONCEPTS – – – – – – 10
2.3.1 CONCEPT OF ADVERTISING – – – – – 10
2.3.2 OBJECTIVES OF ADVERTISING – – – – – 12
2.3.3 IMPORTANCE OF ADVERTISING – – – – – 13
2.3.4 THE NEGATIVE EFFECTS OF ADVERTISING – – – 16
2.3.5 TYPES OF ADVERTISING – – – – – – 18
2.6 CONCEPT OF CONSUMER BEHAVIOUR – – – 23
2.3.7 FACTORS THAT INFLUENCE CONSUMER BEHAVIOUR – 26
2.3.8 STAGES OF CONSUMER BUYING PROCESS – – – 30
1.3.9 GLO OVERVIEW – – – – – – – 32
2.4 SUMMARY OF LITERATURE REVIEW – – – – 32
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 THE DESIGN OF THE STUDY – – – – – 34
3.2 THE POPULATION OF THE STUDY – – – – 34
3.3 THE SAMPLING TECHNIQUES USED – – – – 35
3.4 DEVELOPMENT OF RESEARCH INSTRUMENT – – 35
3.5 VALIDATION AND RELIABILITY OF THE RESEARCH
INSTRUMENT – – – – – – – – 36
3.6 ADMINISTRATION OF THE INSTRUMENT – – – 36
3.7 DATA ANALYSIS PROCEDURE/TECHNIQUES – – 37
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS OF RESULTS
4.1 INTRODUCTION – – – – – – – 39
4.2 DATA ANALYSIS – – – – – – – 39
4.3 DISCUSSION OF FINDINGS – – – – – – 45
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS – – – – – – 47
5.2 CONCLUSION – – – – – – – – 48
5.3 RECOMMENDATIONS – – – – – – 50
BIBLIOGRAPHY – – – – – – – – – 53
APPENDIX I – – – – – – – – – 56
APPENDIX II – – – – – – – – – 57
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting billions of people’s lives worldwide. Yet, seeing as advertising clutter has increased tremendously and is more intense than ever, it is vital that companies differentiate themselves from competitors by creating even more powerful, entertaining and innovative advertising messages, as well as sponsoring different events. The end point of any production or manufacturing activities is consumption. Therefore, whatever product or service that is produced must satisfy the needs of the consumer adequately. The consumer is said to maximize his satisfaction when his money utility equals the utility of the offer he received in Exchanged for the money. Contemporary marketing calls for more than just developing a good product/service, Pricing it attractively and making it accessible to consumers. Companies must also communicate with their present and potential customers. Advertising is one of the major tools companies use to direct persuasive communications to target buyers 11 and publics. The spender includes not only business firms but museums, professionals and social organization that advertised their causes to various target public.
Organizations obtain their advertising in different ways. In small companies advertising Agencies are used. A large companies set up their own advertising department, who develop advertising strategy, approved advertising agency, advert and campaign and handle direct mail advertising, dealer display and other forms of advertising not ordinarily performed by the agency most companies use an outside advertising and to select and purchase media. Advertising objective is a specific communication and achievement level to be accomplished with a specific audience in a specific period of time. If, the desired results are to be achieved, the product must be good and acceptable to the consumer; advertising must be carefully planned in advanced; right appeals/claims must be adopted; the right type of media must be used; the cost must not be excessive; reasonable frequency must be provided; right distribution channel must be selected; and the price of the commodity must be right i.e. acceptable to the consumer (Anthony, 2009).
1.2 STATEMENT OF PROBLEM
For a couple of years since its operation started, GLONigeria has managed to capture a large percentage of market shares (53%) in the Telecommunication industry by creating a brand image. Surprisingly, Nigerians have been made to love GLO as they see it as the funky network that everybody is on. Segmentation analysis across GLO markets has been undertaken. This has facilitated improved product offering. GLO phone communication is meant to ease life and add flavour to it. However, it has turned out to be a nuisance to Nigerians in the past few months, fed-up subscribers of GLONigeria have continuously and publicly complained of bad network and unsolicited marketing advertising messages from the company (Wafula, 2009). O. Annabel, a subscriber on the network, published her complaint in one of the daily newspaper of August 27, 2008. She said “I am really growing weary of all the unsolicited text adverts messages of all kinds.” Despites the intermittent interruption in the network, GLO still keeps intensify their advertisement and campaign to increase market share. GLONigeria observed that promotional messages have grown in popularity globally and the trend is expected to continue with associated unforeseen problems. It is doubtful, GLO with its bad network still increase its market share and whether any form of advertising, promotional is solely capable of influencing GLO subscribers choice. A number of other factors may influence consumers‟ decision to buy GLO product. This includes other marketing communication stimuli such as product quality, packaging, price, brand image and so on. The problem is, how much of GLO adverts, (in terms of frequency) can be used to generate the desire level of favourable responses? Due to the afore-mentioned problems, it has therefore become prudent for this study to be conducted to find out the effect of advertising on consumers behaviour.
1.3 PURPOSE OF STUDY
The study sought to examine the effect of advertising on consumer’s behaviour. Specifically, the study intends to achieve these objectives:
1. To identify the factors that motivates consumers to respond to advertising.
2. To find out specifically the type of advertising that motivates consumers to respond to an offering.
3. To determine the effect of advertising on consumer behavior in the service industry in Nigeria.
1.4 RESEARCH QUESTION
This study has these research questions.
1. What are the factors that motivate Nigerian consumers to respond to advertising?
2. What type of advertising motivates Nigerian consumers to respond to offering?
3. How does the advertising affect consumer behaviour of the service industry in Nigeria?
1.5 SIGNIFICANCE OF THE STUDY
The implications of this study will help GLO to take advertising more seriously and so as to give them a better exposure in the fast growing competitive markets. Again, would also serve as a reference material for students and marketing practioners. Furthermore, would help to capture customer’s feedback and will served as a guide in drawing up service improvement strategies to meets the subscribers demand.
1.6 SCOPE OF THE STUDY
This study was limited to one service firm, GLO in Nigeria due to time constrain. Only effects of advertising on consumer behaviour are researched in this study since all other components of advertising and consumer behaviour could not be researched due to lack of documented information on those components of advertising that also affect consumer behaviour.
1.7 DELIMITATION OF THE STUDY
The limitation of the study was that survey items and independent variables were based on the information given by managers. Another limitation was time dimension.
The period within which this research must be completed for submission was less than one academic year.
1.8 DEFINITION OF TERMS
Advertising: Is an audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea by an identified sponsor.
Consumer: A person who purchases goods and services for personal use.
Behavior: The way in which one acts or conducts oneself, especially towards others.
Campaign: A series of military operations intended to achieve a goal, confined to a particular area, or involving a specified type of fighting.
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