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ABSTRACT
The study has examine the significance of advertisement on consumer preference and patronage of next time Port Harcourt. In this research, the survey design was employed since the study was to ascertain significance of advertisement on consumer preference and patronage. The population of this study constitutes management and staff of all next time supermarkets which was unknown. The judgmental sampling technique which is a non-probability sampling technique was used for selecting the sample. In this study both the primary and secondary data were used. A self-designed questionnaire on the significance of advertisement on consumer preference and patronage was used and administered for the collection of data from the respondents. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS). The statistical test used in the analysis of the data collected was Chi-Square statistical tool. In this context, all the questions were considered and analyzed. Findings amongst others reveal that there is a significant relationship between comparative advertising and sales volume. Based on the findings of the study we recommended that firms should take marketing activities seriously of they are to increase their customer base and thus attain their major objective profit maximization, appropriate marketing strategies should be adopted by firms in order to make it easier to manipulate the mind of prospective customer, large firms should endorse popular and influential celebrities to advertise their brands as it is discovered that most customers like and adore certain customers and firms should make use of the right marketing channels and tools in order to reach the right number of prospects (members of the public).
TABLE OF CONTENTS
TITLE PAGE i
COVER PAGE ii
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
ABSTRACT viii
TABLE OF CONTENTS ix
CHAPTER ONE 1
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVE OF THE STUDY 4
1.4 RESEARCH QUESTIONS 5
1.5 RESEARCH HYPOTHESIS 6
1.6 SIGNIFICANT OF THE STUDY 7
1.7 SCOPE OF THE STUDY 7
1.8 LIMITATION OF THE STUDY 8
1.9 DEFINITION OF TERMS 9
CHAPTER TWO 10
REVIEW OF RELATED EMPIRICAL REVIEW 10
2.1 INTRODUCTION 10
2.2 CONCEPTUAL FRAMEWORK 10
2.2.1 CONCEPT OF ADVERTISING 11
2.2.2 DIMENSIONS OF ADVERTISING 15
2.2.3 MEDIUMS OF ADVERTISING 17
2.2.4 FUNCTIONS OF ADVERTISING 20
2.2.5 CONCEPT OF CONSUMER PREFERENCE 24
2.2.6 CONCEPT OF CUSTOMER PATRONAGE 24
2.2.7 CUSTOMER PATRONAGE DEVELOPMENT 26
2.2.8 MEASURES OF CUSTOMERS PATRONAGE 27
2.2.9 THE IMPACT OF ADVERTISING ON CONSUMER PREFERENCE AND PATRONAGE OF NEXT TIME SUPER MARKET 28
2.3 THEORETICAL FRAMEWORK 28
2.3.1 COGNITIVE DISSONANCE THEORY 28
2.4 REVIEW OF RELATED EMPERICAL STUDIES 29
2.5 SUMMARY OF LITERATURE REVIEW 31
CHAPTER THREE 32
RESEARCH METHODOLOGY 32
3.1 INTRODUCTION 32
3.2 RESEARCH DESIGN 32
3.3 POPULATION OF THE STUDY 32
3.4 SAMPLING TECHNIQUES USED 33
3.5 SAMPLE SIZE 33
3.6 SOURCE OF DATA 33
3.6.1 PRIMARY SOURCE (S) OF DATA 33
3.6.2 SECONDARY SOURCE OF DATA 34
3.7 RESEARCH INSTRUMENT FOR DATA COLLECTION 34
3.8 VALIDITY AND RELIABILITY OF INSTRUMENT 34
3.9 Techniques for Data Analysis 35
CHAPTER FOUR 36
DATA PRESENTATION AND ANALYSIS 36
4.1 INTRODUCTION 36
4.2 PRESENTATION OF QUESTION/ITEMS IN THE QUESTIONNAIRE AND ANALYSIS OF RESPONSES 36
4.3 TESTING OF HYPOTHESES 42
4.4 DISCUSSION FINDINGS 52
CHAPTER FIVE 55
SUMMARY, CONCLUSION AND RECOMMENDATION 55
5.1 INTRODUCTION 55
5.2 SUMMARY 55
5.3 CONCLUSION 56
5.4 RECOMMENDATION 56
REFERENCES 58
APPENDIX I 60
APPENDIX II 61
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Advertising is “a paid non-personal communication from an identified sponsor, using mass media to persuade or influence an audience” (Richards and Curran, 2002). The contemporary realities of marketing enunciate the fact that, it is not enough to produce a product, package it attractively, and price it right, effectively distributes and display it to adequately meet the need of the consumers. The company should also let the audience know about the existence of the product. In so doing the company must communicate the target market. This involves giving information about the product existence, features, and benefits how it can be conveniently obtained by it’s target audience. 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. According to Longman (2000) 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.
Advertiser’s primary mission is to reach prospective customers and influence their awareness, attitudes and buying behaviour. They spend a lot of money to keep individuals (markets) interested in their products. To succeed, they need to understand what makes potential customers behave the way they do.
The advertiser’s goals is to get enough relevant market data to develop accurate profiles of buyers to find the common group (and symbols) for communications this involves the study of consumers behaviour. The mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy need and wants. According to Kelvin, (2013); the essence of doing business by any business outfits is to products for sales and profit.
To remain in business, an organization must generate enough sales from its product to cover operating costs and post reasonable profits. For many organization, sales estimate planning. It is so because it must be determined, in most cases, before production, units could be arrived at while production, units will in turn affect material purchases.
However, taking decision on sales is the most difficult tasks facing many business executives. This is because it is difficult to product, estimate or determine with accuracy potential customers demands as they are incontrollable factors external to an organization. Considering, therefore, the importance of sales on business survival and the connection between customers and sales, it is expedient for organizations to engage in programmes that can influence consumers decision to purchase its products.
In fact, the first American advertising to use a sexual sell was created by women for a soap product. Although tame by today’s standards, the advertisement features a couple with the message “the skin you love to touch”.
Winston, (1975) in his own view report that industries, which advertise heavily, tend to have higher profits rate than low advertiser.
Advertising in short holds out the promises of greater and speeds up return that wouldn’t occur without it. Advertising stimulates economic growth by acquainting the consumers with value of products widen the market for these products, pushes forward their acceptance by the consumer and encourages the investment and entrepreneurship necessary for innovation.
So, advertising has a long-term effect on consumer because of the informational aspect of the message and the persuasive, aspect as well, which will now serve as a reference point for the consumer when they want to act through buying of the product being advertised. It is most effective as a reinforcing of favorable attitudes, values and disposition already held by consumer. From the foregoing therefore, the study seeks to examine the significance of advertisement on consumer preference and patronage of next time supermarket.
1.2 STATEMENT OF THE PROBLEM
The role of advertisement in determining consumer preference and patronage 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 in difference in their sales volume. This misconception seems to be based on an entirely understandable initiative reaction. How can advertisers claim that advertisement does not increase consumer preference and patronage and still spend so much money on it;
According to Ambler (2000), advertisement has major influences on consumer preference and behaviour. Advertise may not necessarily bring about huge patronage in the short run but will certainly increase patronage in the long run if done properly.
Even if some marketers believe that accurate knowledge about consumers, what they buy, why they buy, and where they buy is unnecessary as it is possible to manipulate buyers into parting with their money in return for products that they do not want. However, models about advertising as a strong forces have survived despite various empirical studies showing that the view of advertising as a strong persuasive force is largely found. Hence, the study is determined to examine the evolving significance of advertising on consumer preference and patronage of next time supermarket in Rivers State.
1.3 OBJECTIVE OF THE STUDY
The main objective of the study is to examine the significance of advertisement on consumer preference and patronage of next time Port Harcourt. The specific objectives are as follows:
- To examine the examine the extent to which institutional advertising associate with sales volume.
- To examine the extent to which product advertising associate with profit margin.
- To examine the extent to which comparative advertising associate with customer retention.
- To examine the extent to which institutional advertising associate with customer retention.
- To examine the extent to which product advertising associate with sales volume.
- To examine the extent to which comparative advertising associate with profit margin.
- To examine the extent to which institutional advertising associate with profit margin
- To examine the extent to which product advertising associate with customer retention.
- To examine the extent to which comparative advertising associate with sales volume.
1.4 RESEARCH QUESTIONS
The following research questions were proposed to guide the study.
- To what extent does to which institutional advertising associate with sales volume?
- To what extent does product advertising associate with profit margin?
- What is the extent to which comparative advertising associate with customer retention?
- To what extent does institutional advertising leads to customer retention?
- To what extent does product advertising associate with sales volume?
- To what extent does comparative advertising associate with profit margin?
- What is the extent to which institutional advertising associate with profit margin?
- What is the extent to which product advertising leads to customer retention?
- To what extent does comparative advertising associate with sales volume?
1.5 RESEARCH HYPOTHESIS
The following hypotheses were formulated to guide the study:
HO1:There is no significant relationship between institutional advertising and sales volume.
HO2:There is no significant relationship between product advertising and profit margin.
HO3:There is no significant relationship between comparative advertising and customer retention.
HO4:There is no significant relationship between institutional advertising and customer retention.
HO5:There is no significant relationship between product advertising and sales volume.
HO6:There is no significant relationship between comparative advertising and profit margin.
HO7:There is no significant relationship between institutional advertising and profit margin
HO8:There is no significant relationship between product advertising and customer retention.
HO9:There is no significant relationship between comparative advertising and sales volume.
1.6 SIGNIFICANT OF THE STUDY
The study will help firms understand the importance of advertisement. 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 preference and patronage, many firms will be encouraged into using adverts to market their products. When firms start marketing more sales and profits because of advertisement, 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 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 delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to examine the significance of advertisement on consumer preference and patronage of next time Port Harcourt. The dependent variable is customer patronage, measured by sales volume, profit margin and customer retention. While independent variable is Advertising measure by institutional advertising product advertising, comparative advertising, informative advertising.
Geographical Scope: This study is delimited in Port Harcourt Rivers State with references to Next time supermarket Abacha Road Port Harcourt.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staffs of Next time supermarket Abacha Road Port Harcourt at the time of carrying out the study.
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 was difficult and this 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
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.
Preference: The evolving significance somebody or sourcing has on somebody or something.
Consumers: Persons who buy goods and use it for services.
Consumer behaviour: The behaviour at which the consumer will display it searching for purchasing.
Significance: The quality of being worthy of attention importance.
Evolve: To develop or achieve gradually.