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Abstract
The study was determined to examine the relationship between Advertising and consumer purchase loyalty of Chivita products. The study was designed to focus on Chivita Company, Port Harcourt, Rivers State where primary data, via questionnaire were collected. In this study, the case study research design was adopted the population of the study constitutes management and staff of Chivita Company which was unknown. The judgmental sampling technique was used for selecting the sample. The sample size of this study was judgmental sample of 23 respondents which comprise of both the senior and junior staff of Chivita Company, Port Harcourt. The statistical test used in the analysis of the data collected was the chi-square. The data collected were processed electronically using Statistical Packages of Social Sciences (SPSS). Finding reveals that there is a significant relationship between product advertising and consumer purchase loyalty of Chivita products. From the above findings, the following recommendations are made that firms should make use of the right marketing channels and tools in order to reach the right number of prospects (members of the public), that appropriate marketing strategies should be adopted by firms in order to make it easier to manipulate the mind of prospective customer and that firms should take marketing activities seriously of they are to increase their customer base and thus attain their major objective profit maximization.
Table of Contents
Title Page i
Cover Page i
Declaration ii
Certification iv
Dedication v
Acknowledgements vi
Abstract ix
Table of Contents x
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problem 2
1.3 Objective of the Study 3
1.3Research Questions 3
1.5 Research Hypothesis 4
1.6 Significance of the Study 4
1.7 Scope of the Study 5
1.8 Limitation of the Study 6
1.9 Definition of Terms 6
CHAPTER TWO 8
REVIEW OF RELATED EMPIRICAL REVIEW 8
2.1 Introduction 8
2.2 Conceptual Framework 8
2.2.1 Concept of advertising 9
2.2.2 Dimensions of Advertising 12
2.2.3 Mediums of Advertising 14
2.2.4 Functions of Advertising 16
2.2.5 Concept of Consumer Purchase Loyalty 19
2.2.8 Measures of Consumers Purchase Loyalty 21
2.2.9 The Impact of Advertising on Consumer Purchase Loyalty. 23
2.3 Theoretical Framework 24
2.3.1 Cognitive dissonance theory 24
2.4 Review of Related Empirical Studies 25
2.5 Summary of Literature Review 27
CHAPTER 3 28
RESEARCH METHODOLOGY 28
3.1 Introduction 28
3.2 Research Design 28
3.3 Population of the Study 28
3.4 Sampling Techniques Used 29
3.5 Sample Size 29
3.6 Source of Data 29
3.6.1 Primary Source (s) of Data 29
3.6.2 Secondary Source of Data 29
3.7 Research Instrument for Data Collection 29
3.8 Validity and Reliability of Instrument 30
3.9 Techniques for Data Analysis 31
CHAPTER FOUR 32
DATA PRESENTATION AND ANALYSIS 32
4.1 Introduction 32
4.2 Presentation of Question/Items in the Questionnaire and Analysis of Responses 32
4.4 Discussion of Findings 40
CHAPTER FIVE 41
SUMMARY, CONCLUSION AND RECOMMENDATION 41
5.1Introduction 41
5.2 Summary 41
5.3 Conclusion 41
5.4 Recommendation 42
References 42
Appendix I 45
Appendix II 45
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 its 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.
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 encourage 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 relationship between advertising and consumer purchase behavior of Chivita products.
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’ purchase 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.
Today, the massive introduction of other different product had made way for competition as so many customers who patronize chivita product now share their patronage among the different firm’s products. However, several studies have been conducted on the advertising (Bamba and Barnes, 2006). Raharso, et al, (2008), conducted an empirical study of the drivers of consumer behavior of mobile advertising in Nigeria. But no study has been conducted on advertising and consumer purchase behavior of Chivita products. It is based on that, the study was determined to examine the relationship between advertising and consumer purchase loyalty of Chivita products to bridge the gap.
1.3 Objective of the Study
The main objective of the study is to examine the relationship between Advertising and consumer purchase loyalty of Chivita products. The specific objectives are as follows:
- To examine the extent to which institutional advertising associate with consumer purchase loyalty of Chivita products.
- To examine the extent to which product advertising associate with consumer purchase loyalty of Chivita products.
- To examine the extent to which comparative advertising associate with consumer purchase loyalty of Chivita products.
- To examine the extent to which informative advertising associate with consumer purchase loyalty of Chivita products.
1.3 Research Questions
The following research questions were proposed to guide the study.
- To what extent does to which institutional advertising associate with consumer purchase loyalty of Chivita products?
- To what extent does product advertising associate with consumer purchase loyalty of Chivita products?
- What is the extent to which comparative advertising associate with consumer purchase loyalty of Chivita products?
- To what extent does informative advertising leads to consumer purchase loyalty of Chivita products
1.5 Research Hypothesis
The following hypotheses were formulated to guide the study:
HO1:There is no significant relationship between institutional advertising and consumer purchase loyalty of Chivita products.
HO2:There is no significant relationship between product advertising and consumer purchase loyalty of Chivita products.
HO3:There is no significant relationship between comparative advertising and consumer purchase loyalty of Chivita products.
HO4:There is no significant relationship between informative advertising and consumer purchase loyalty of Chivita products.
1.6 Significance of the Study
This research is designed to be of great benefit to both business organizations, governments and the general consuming publics.
It will remind them that advertising helps to promote their product and services to win their acceptance 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. To the government, it will help them to understand the role of advertising medium is very essential in consumer products.
Again, it will make them check advert that are not to the good of the society and inform the public on how dangerous a product can be to their health.
It will also help in regulating and checking business organization on when a low quality product is being produced and distributed into the market. To the general public, it will help them to know that they have the right to accept or reject an advertisement.
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 ascertain the relationship between advertising and consumer purchase loyalty of Chivita products. The dependent variable is consumer purchase loyalty, measured by Sales growth, 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 Chivita products.
Unit of Analysis: The unit of analysis in this research covers the distributors of Chivita Company.
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
Definition of some of the key words in this work should be briefly discussed below to enable the research to fully digest the media message in the research.
MARKETING: Is the activity, set of institutions, and processes for creating communicating, delivery, and exchanging offering that have value for customers events, partners and society at large American marketing Association.
ADVERTISING: Any paid form of non-personal communication which is directed to the consumers or target audiences through various media to prevent and promote product, services and idea.
ADVERTISING: Advertising is any paid form of non-personal communication about an organization or its product to a target audience by an identified sponsor.
ADVERT: An advertisement.
PRODUCT: An article or substance that is manufactured or refined for sale.
PROMOTION: Activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim.