(PDF) Impact of Advertising on Consumer Choice of Household Product in Ogun State

CHAPTER ONE

INTRODUCTION

Background of the study

The term “consumer” refers to someone who purchases and utilizes goods. As a consequence, customers keep the production cycle rolling and play a vital part in any country’s economic system; as a consequence, any country will suffer crisis if consumers do not have sufficient demand for items produced. Different commodities are demanded by customers depending on their preferences and tastes. Consumers’ awareness of a good affects their decision to buy it. Psychological and environmental elements can have an impact on one’s taste and liking for a thing. Over time, taste and desire for a good change. As a result, commercials have an impact on consumer preference and taste. In 2009, Sharma published a book titled “Sharma’s Guide to Success Advertising is the process of promoting a product to a large number of people. Consumers must be made aware of the uses and advantages of a product via advertising. This allows a product to be made accessible to individuals who desire it, which meets the advertiser’s requirements and increases sales. Advertising, according to Cohen, is a corporate activity that uses creative approaches to create compelling communication through mass media that promotes ideas, commodities, and services in a way that is compatible with the advertiser’s goal, customer happiness, and the growth of social and economic welfare. Cohen (1988) is a writer who is well-known for his contributions to the field of psychology. Advertising, according to Cohen’s definition, serves three purposes: increasing business sales, providing excellent service to customers, and ensuring society’s social and economic well-being. Radio, Television, billboards, and other types of print media, such as magazines and newspapers, as well as websites, are all examples of advertising. (According to Cohen, 1988) Psychological and environmental variables can impact one’s taste and preference for a home product. Over time, taste and desire for a good change have evolved. As a result, commercials have an impact on consumer taste and preferences. When it comes to consumer products, consumers are considered to be sensible in their purchases, trying to maximize their enjoyment (Sharma, 2009). Consumer behavior is described as the actions that people do while they are looking for, buying, using, assessing, and discarding products and services that they believe will meet their requirements. Consumer behavior examines how people decide how to spend their limited resources (time, money, and effort) on consumption-related things (Solomon, 1994). What they buy, why they buy it, when they buy it, where they buy it, how frequently they buy it, how frequently they use it, how to assess it after the purchase and the influence of such assessment, and how they dispose of it are all examples of consumer behavior. To put it another way, consumer behavior refers to how people buy, use, and dispose of items, services, ideas, and experiences (Loudon, 1988). Advertising has a significant motivating effect on consumer purchase behavior. Advertising is often more successful on things that have inherent features. Qualities are unknown at the time of purchase, and one must learn about them after using the goods. When there’s a good probability of distinguishing a product, it’s better to market on that product (Schiffman, 1993). As a result, a buyer will not acquire a thing whose price exceeds the extra enjoyment he obtains from it. The amount of a product required is determined by the consumer’s delight from spending more money on the product. Consumers that are rational will spend money on a nice till.their gains equal the cost they pay for the product (Schiffman, 1993). When there is a strong emotional purchasing motive such as to product health or enhance social position, it pays to advertise on such a product. These conditions make the demand for the product more inelastic. The more emotions consumer attach to a product, they more they tend to be insensitive to its price. This is of importance to firm’s product as they can earn high sales in pricing their products (Borden, 1942). In the absence of advertising, consumers may not be aware of the product and its potential to satisfy their needs and desires. According to ( Kotler and Keller ,2006) advertisings mix consists of eight modes of advertising which are; personal selling, direct marketing, advertising, sales promotion and exhibitions, public relations and publicity, events and experience, interactive marketing, and word of mouth. One form of advertising is personal selling. The Relevance of personal selling to this study lies on the role of face-to-face interactions in marketing of tourism products. This involves face-to-face interactions with prospective buyers for the purpose of selling a product or service. These days, personal selling is considered to be the most effective tool as it involves personal interaction, hence feedback is received immediately (Kotlerand Keller,2006).However, personal selling suffers from a few drawbacks i.e. it is the most expensive tool of promotion. Secondly, it requires too much dependence on sales force. If the organization is using a pull strategy to sell the product a sales force will be required to make sure that retail outlets are looked after well, that they have enough stock, are trained well so they can push the product onto the consumer (Kotler and Keller, 2006).

Another form of advertising is direct advertising. According to (Kotler and Keller, 2006) direct advertising is advertising which communicates directly with customers and prospects. The merits of direct marketing is that it reaches a larger number of people, the message can be repeated, its cost is not high, and with the development of art and graphics, statements can be transformed into forceful messages. Advertising Advertising may be divided into two types: above the line and below the line. According to (Kotler and Keller,2006), above-the-line advertising is advertising that is displayed on television, radio, newspapers, and other forms of media that the advertiser pays an advertising agency to put. Direct mail, sponsorship, merchandise, public relations, trade shows, and personal selling are all examples of below-the-line advertising. A wide range of short-term incentives to stimulate product trial or purchase. (Kotler and Keller, 2009; Kotler and Keller, 2009). Sales promotions are used to boost customer demand, generate market demand, or enhance product availability. Coupons, point of sale, package promotion, online coupons, sweepstakes, competitions, product samples, rebates, tie-ins, self-liquidating premiums, trade fairs, and trade-ins are some of the strategies employed. (Kotler and Keller, 2009) (Kotler and Keller, 2009) (Kotler and Keller, described it as a collection of initiatives aimed at promoting or protecting a company’s image or a specific product. British Airways, for example, has lately spent in rebranding itself by altering its aircraft livery. The company’s worldwide goals are reflected in the move from a corporate color scheme and national image on the aircraft to a significantly more international look (Pender, 2009). Activities and initiatives supported by the company that aim to establish everyday or extraordinary brand encounters (Kotler and Keller, 2009). Sponsorship is when a corporation or a product contributes money to an event in exchange for recognition. Sponsorship aids in the improvement of a company’s image and public relations in the market, and most companies strive to sponsor events that reflect the image they are attempting to achieve.

Statement of research problem

For decades at the turn of the nineteenth century, advertising was a source of controversy under many pretexts. People were uninterested at first, but it became a rich study area at the turn of the century. People lost interest since commercials were losing their effectiveness since most increases in product and sales, particularly for household items, were linked to other reasons such as flavor, long-term use of items, and customers’ refusal to switch goods. The declining role created a slew of issues, which became the study’s difficulty. The goal of the study was to find out how and why household product firms continue to market their goods while knowing that the rise in product and sales is due to other causes rather than marketing. Household items were examined because they meet the criteria for commodities that can be advertised effectively. There are many distinct types of home items that all serve the same goal. As a result, the goal of this research was to determine the influence of advertising on customer purchasing behavior for home goods.

Objectives of the study

The primary objective for this study is as follows:

Research questions

the following questions have been formulated for this study:

1. what are the medium of advertising household product?

2. What are the ways advertisement can influence consumer choice of household product?

3. What are the ways to improve customer choice of household product?

Significance of the study

The significance of this study cannot be underestimated as:

l This study will examine the impact of advertising on consumer choice of household product

l The findings of this research work will undoubtedly provide the much needed information to government organizations, NAFDAC, advertising agencies and academia.

Scope of the study

This study intends to examine the impact of advertising on consumer choice of household product in ogun state. Hence, ogun state will be used as a case study as a case study.

Limitations of the study

This study was constrained by a number of factors which are as follows:

just like any other research, ranging from unavailability of needed accurate materials on the topic under study, inability to get data

Financial constraint , was faced by the researcher ,in getting relevant materials and in printing and collation of questionnaires

Time factor: time factor pose another constraint since having to shuttle between writing of the research and also engaging in other academic work making it uneasy for the researcher

Operational definition of terms

Impact: the action of one object coming forcibly into contact with another.

Advertising: the activity or profession of producing advertisements for commercial products or services.

Consumer choice: refers to the decisions that consumers make with regard to products and services.

Household product: means any product other than food typically purchased by consumers for consumption in the household in the short term.