INFLUENCE OF ADVERTISING ON CONSUMER BUYING

BEHAVIOUR: CASE STUDY OF FOREVER LIVING

COSMETICS PRODUCTS

By
Getrude Mwakasege

A Dissertation Submitted to Mzumbe University Dar es Salaam Campus College in

Partial Fulfillment of the Requirements for the Award of the Degree of Master of
Science in Marketing Management (MSc-MKT) of Mzumbe University.
2015

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 CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for
acceptance by the Mzumbe University, a thesis entitled; Influence of Advertising on
Consumer Buying Behaviour: Case Study of Forever Living Cosmetics Products,
in partial fulfillment of the requirements for award of the degree of Master of
Science in Marketing Management (MSc-MKT) of Mzumbe University

___________________________
Major Supervisor

___________________________
Internal Examiner

Accepted for the Board of MUDCC

_______________________________________________________
CHAIRPERSON, FACULTY/DIRECTORATE BOARD

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 DECLARATION
AND
COPYRIGHT

I, Getrude Mwakasege, declare that this thesis is my own original work and that it
has not been presented and will not be presented to any other university for a similar
or any other degree award.

Signature: ___________________________

Date: _______________________________

©2015
This thesis is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactment, in that behalf, on
intellectual property. It may not be reproduced by any means in full or in part, except
for short extracts in fair dealings, for research or private study, critical scholarly
review or discourse with an acknowledgment, without the written permission of
Mzumbe University, on behalf of the author.

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 ACKNOWLEDGEMENT

My first and foremost gratitude goes to the Almighty God for giving me the strength,
courage to pursue my studies and conducting this research study. I also thank my
family for supporting me morally and spiritually during the whole period of my
studies and during the research study. Their encouragement, advice and support
enabled me to put in effort which enabled me to conclude the study successfully.

My sincere appreciation goes to my Supervisor, Madam Nora Msuyawho guided me

from proposal writing up to the preparation of this dissertation. Her criticism,
invaluable patience, intellectual guidance and support helped me not only to
accomplish this study, but also to come up with the expected standards. Sincerely,
she deserves all the credit and appreciation.

Furthermore, my appreciation also goes to all those who have contributed to this
research in one way or another, such as my fellow students and others in the
preparation of this paper. Kindly receive my gratitude. Lastly, but not least, I thank
members of staff and markers of Forever Living products for their cooperation and
support during the whole duration of the study.

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 DEDICATION

I dedicate this dissertation to my parents. Thank you for giving me a decent

education. It has opened so many doors for me.

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 LIST OF ABBREVIATION

AIDA - Attention, Interest, Desire, Action

DVD - Digital Versatile Disc
FMCG - Fast Moving Consumer Good

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 ABSTRACT

This study aimed to establish the influence of advertising on consumer buying

behaviour by focusing on Forever Living cosmetics products. Specifically, the study
aimed to identify media of advertising used to advertise Forever Living Products
determine ways in which advertisement influence purchasing behaviour and establish
how different advertisements influence consumer’s behaviour

The study was conducted in Kinondoni district in Dar es Salaam. Both, primary and
secondary data collection methods were used to collect data. Primary data were
collected with the use of questionnaires and interview guides, as well as personal
observation. Secondary data collection involved the perusal of various documents.
The study used case study research design and comprised a sample of 100
respondents.
From the findings of the study, the researcher concludes that advertising plays a very
significant role in influencing consumers buying behaviour by providing attracting
their attention, arousing their interest, creating desire to purchase the products.
Forever Living uses event, word of mouth, magazine, Facebook, DVD, trade fair, T
Shirt and Website advertising.

Advertisements used by Forever Living to promote cosmetics products influences

consumer buying behaviour by providing them with information about product
benefits, price, quality, ingredients (materials of which the product is made of),
quality, product quantity, product testimonial, product packaging, product name and
product colour. The advertisements create awareness of the products and attracts
more buyers.

The researcher recommends that the company should create advertisements in

Kiswahili language, create advertisements that reflect the local situation and ensure
that advertisements should convey direct information about the product rather than to
showing glamour and exaggeration. Also, advertisements should offer more
information about the benefits of the product.

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 TABLE OF CONTENTS

Pages
CERTIFICATION i
DECLARATIONANDCOPYRIGHT ii
ACKNOWLEDGEMENT iii
DEDICATION iv
LIST OF ABBREVIATION v
ABSTRACT vi
TABLE OF CONTENTS vii
LIST OF TABLES x
LIST OF FIGURES xii

CHAPTER ONE 1
INTRODUCTION AND BACKGROUND OF THE STUDY 1
1.0 Introduction 1
1.1 Background of the Study 5
1.2 Statement of the Problem 7
1.3 General Objective of the Study 7
1.3.1 Specific Objectives of the Study 7
1.4 Research Questions 8
1.5 Significance of the Study 8
1.6 Limitation of the Study 8
1.7 Scope of the Study 9
1.8 Organization of the Study 9

CHAPTER TWO 10
LITERATURE REVIEW 10
2.0 Introduction 10
2.1 Literature Review 10
2.1.1 Psychological Theories 10
2.1.2 Psycho-Analytic Theories 11
2.1.3 Socio Cultural Theories 11
2.1.4 Purchase Intention Theory 12
2.1.5 Theory of Reasoned Action 12
2.1.6 Fishbein Attitude Theory 12
2.1.7 Maslow’s Theory of Needs 12
2.1.8 The Concept of Advertising 13
2.1.9 Advertisings Models 14
2.1.10 Stages of the Buying Process 15
2.10 Consumers Buying Behavior 19
2.1.11 Types of Consumer Behaviour 19
2.1.12 Factors Influencing Consumer Buying Behaviour 20
2.1.13 Factors Affecting Consumer Purchase Decision 21
2.2 Empirical Literature Review 23
2.3 Research Gap 28

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 2.4 Conceptual Framework 29

CHAPTER THREE 30
RESEARCH DESIGN AND METHODOLOGY 30
3.0 Introduction 30
3.1 Research Design 30
3.2 Area of Study 30
3.3 Study Population 30
3.4 Sample and Sampling Techniques 31
3.4.1 Purposive Sampling 31
3.4.2 Random Sampling 31
3.5 Source of Data 32
3.6 Data Collection Methods 32
3.6.1 Questionnaire 32
3.6.2 Interview 32
3.6.3 Observation 33
3.7 Validity and Reliability of Instruments 33
3.8 Data Presentation and Analysis Plan 33
3.8.1.1 Editing of Data 34
3.8.1.2 The Coding of Data 34
3.8.1.3 Classification of Data 34
3.8.1.4 Data Presentation 34

CHAPTER FOUR 35
STUDY FINDINGS, ANALYSIS AND DISCUSSION 35
4.0 Introduction 35
4.2 Demographic Characteristics of Respondents 35
4.2.1 Age of the Respondents 35
4.2.2 Gender Profile of Respondents 36
4.2.3 Level of Education of Respondents 36
4.2.4 Awareness on Cosmetics Advertising Strategies 37
4.2.5 Experience of Respondents in Cosmetics Industry 37
4.3 Advertising Strategies Used by Forever Living 38
4.4 Influence of Advertising on Consumer Buying Behaviour Using AIDA
Model 40
4.4.1 Advertising Influences Consumer Buying Behaviour by Attracting
Attention 40
4.4.2 Advertising Influences Consumer Buying Behaviour by Arousing
Interest 41
4.4.3 Advertising Influences Consumer Buying Behaviour by Creating
Desire 42
4.4.4 Advertising Influences Consumer Buying Behaviour by Leading to
Action 42
4.5 Elements of Advertisement which Influence Consumer Buying
Behavior43
4.5.1 Product Benefits 44
4.5.2 Product Quality 44

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 4.5.3 Influence of Product Ingredients on Consumer Buying Behavior 44
4.5.4 Influence of Product Price on Consumer Buying Behavior 45
4.5.5 Influence of Product Quantity on Consumer Buying Behavior 45
4.5.6 Influence of Product Packaging on Consumer Buying Behavior 46
4.5.7 Influence of Models Used in Advertisement on Consumer Buying
Behavior47
4.5.8 Influence of Product Name on Consumer Buying Behavior 48
4.5.9 Influence of Product Colour on Consumer Buying Behavior 48
4.5.10 Influence of Product Testimonial on Consumer Buying Behavior 49
4.6 Ranking of Elements of Advertisement which Influence Buying
Behavior50
4.6.1 Correlation Coefficient for Product Benefits 50
4.6.2 Correlation Coefficient for Product Quality 50
4.6.3 Correlation Coefficient for Product Ingredients 51
4.6.4 Correlation Coefficient for Product Price 51
4.6.5 Correlation Coefficient for Product Quantity 52
4.6.6 Correlation Coefficient for Product Packaging 53
4.6.7 Correlation Coefficient for Product Names 53
4.6.8 Correlation Coefficient for Models Used in Advertisements 54
4.6.9 Correlation Coefficient for Product Colour 54
4.6.10 Correlation Coefficient for Product Testimonial 55
4.6.11 Ranking of Elements of Advertisement which Influence Buying
Behavior56
4.7 Conclusion 56

CHAPTER FIVE 57
CONCLUSION AND RECOMMENDATIONS 57
5.0 Introduction 57
5.1 Summary of Findings 57
5.1.1 Recomendation 58
5.1.2 Specific Recomendation 59
5.1.3 Effective Marketing Program should be employed at the
organisation……. 60
5.1.4 The Buying transactions at Forever Living Company should be Market
and Customer Centered/Driven 59
5.1.5 The Assessment of further Consumer Behaviour needs for effective
adoption of Forever Living Products Should be Identified…………...60
5.1.6 The Company should do some advertisements in Swahili Language…..…60
5.1.7 Advertisements should be created and designed in the Local Context of
Tanzania Situation………………………………………………….…60
5.2 Suggested Strategies…………………….…………………………………61
5.2.1 Products should be market Driven………....……………………………….61
5.2.2 Forever Living Business Persons Need to be Trained on Service Delivery
and Customer Care...………………………………………………….61
5.2.3 Forever Living Companies Need Strong Partners and Strategies Alliances
……………………………………………………………………..….61
5.3 Conclusion …………………………….……………………………..…….62

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 5.4 Area for Further Studies 62

REFERENCES 63

APPENDICES 70
Appendix 1: Work Plan 70
Appendix 2: Estimated Research Budget 71

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 LIST OF TABLES

Pages
Table 3.1: Sample Respondents: Sample size n=100...........................................31
Table 4.1: Age Profile of Respondents................................................................35
Table 4.2: Gender Profile of Respondents...........................................................36
Table 4.3 Level of education……………………………………………...…...36
Table 4.4: Awareness on Cosmetics Advertising Strategies................................37
Table 4.5: Experience of Respondents in Cosmetics Industry.............................38
Table 4.6: Advertising strategies used by Forever Living...................................40
Table 4.7: Advertising Attracts Attention on Forever Living Cosmetics
Products...............................................................................................41
Table 4.8: Advertising Arouses Interest on Forever Living Cosmetics Products 42
Table 4.9: Advertising Creates Desire for Forever Living Cosmetics Products. .42
Table 4.10: Advertising Leads to Purchase of Forever Living Cosmetics
Products...............................................................................................43
Table 4.11: Product Benefits Influence Consumer Buying Behavior....................43
Table 4.12: Product Quality Influences Consumer Buying Behaviour..................44
Table 4.13: Product Ingredients Influence Consumer Buying Behavior...............44
Table 4.14: Product Price Influences Consumer Buying Behavior........................45
Table 4.15: Product Quantity Influences Consumer Buying Behavior..................46
Table 4.16: Product Packaging Influences Consumer Buying Behavior...............46
Table 4.17: Models Used in Advertisement Influences Consumer Buying
Behavior..............................................................................................47
Table 4.18: Product Name Influences Consumer Buying Behavior......................47
Table 4.19: Product Colour Influence Consumer Buying Behavior......................48
Table 4.20: Product Testimonial Influences Consumer Buying Behavior.............48
Table 4.21: Correlation Coefficient for Product Benefits......................................50
Table 4.22: Correlation Coefficient for Product Quality.......................................50
Table 4.23: Correlation Coefficient for Product Ingredients.................................51
Table 4.24: Correlation Coefficient for Product Price...........................................51
Table 4.25: Correlation Coefficient for Product Quantity.....................................52

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Table 4.26: Correlation Coefficient for Product Packaging...................................53
Table 4.27: Correlation Coefficient for Product Names........................................53
Table 4.28: Correlation Coefficient for Models Used in Advertisements.............54
Table 4.29: Correlation Coefficient for Product Colour........................................54
Table 4.30: Correlation Coefficient for Product Testimonial................................55
Table 4.31: Ranking of Elements of Advertisement which Influence Buying
Behavior..............................................................................................56

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 LIST OF FIGURES

Pages
Figure 2.1: Elements in Advertising Process Model...........................................13
Figure 2.2: Advertisings Models.........................................................................15
Figure 2.3: Stages of the Buying Process............................................................18
Figure 2.4: Conceptual Framework Advertising and Consumer’s Buying
Behaviour..........................................................................................29

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 CHAPTER ONE

INTRODUCTION AND BACKGROUND OF THE STUDY

1.0 Introduction
Consumer is a person who buys and uses products. Therefore, consumers keep the
production cycle moving as well as play an important role in the economic system of
any nation, as a result, any nation will face crisis if consumers don’t have the
effective demand for goods produced. Consumers demand different commodities
based on their taste and preference for them. Consciousness of good influences
consumers purchase of that good. Other factors that influence one‘s taste and
preference for a good are psychological and environmental. Taste and preference for
a good change overtime. Thus, advertisements play a role in influencing taste and
preference of consumers’ choice. (Sharma, 2009).

Advertising is all about mass publicity of products. Advertising involves creating

awareness of product’s uses and their benefits to consumers. By doing this, it makes
a product to be available to those who want it and this satisfies the needs of the
advertiser; increasing sales. According to Cohen, advertising is a business activity
that employs creative techniques to design persuasive communication in mass media
that promote ideas, goods, and services in a manner consistent with the achievement
of the advertiser‘s objective, the delivery of consumer satisfaction and the
development of social and economic welfare. (Cohen, 1988)

From Cohen’s definition, it can be found that advertising satisfies three objectives; to
increase sales of the firms, to guarantee consumers a great deal of service and finally
to ensure the social and economic welfare of society. Advertising can be done
through various media such as; radio and television, billboards, magazines and
newspapers and websites. (Cohen, 1988)

Other factors that influence one‘s taste and preference for a good are psychological
and environmental. Taste and preference for a good change overtime. Thus,

1
advertisements play a role in influencing taste and preference of consumers’ choice.
Consumers are known to be rational with regard to their purchases, wanting to
maximize their satisfaction when it comes to consumer goods (Sharma, 2009).

The term consumer behavior is defined as the behavior that consumer display in
searching for purchasing, using, evaluating and disposing of product and services
that they expect will satisfy their needs. Consumer behavior focuses on how
individuals make decisions to spend available resources (time, money, effort) on
consumption related items (Solomon, 1994).

Consumer behavior includes what they buy, why they buy it, when they buy it, where
they buy it, how often they buy it, how often they use it, how to evaluate it after the
purchase and the impact of such evaluation fount u re, and how they dispose of it. In
other words, consumer behavior is behavior of individuals in regards to acquiring,
using, and disposing of products, services, ideas or experiences (Loudon, 1988).

Advertising has huge stimulating influence on purchasing behavior of the consumers.

Mostly, advertising are more effective on products that have intrinsic qualities.
Qualities are not known at the time of purchase and it takes one to discover the
qualities upon using the product. And, when there is a substantial chance of
differentiating a product, it best suits to advertise on that product (Schiffman, 1993).

A consumer will therefore not purchase a commodity whose price is above the
additional satisfaction that he derives from the good. How much of a good
demanded, depends on the satisfaction the consumer gains from spending extra
money on the good. Rational consumers will spend on a good 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

2
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 (Kotler and 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 can be categorized into above the line advertising and below the line
advertising. According to (Kotler and Keller,2006) there is above the line advertising
is advertising placed in TV, radio, newspapers and other advertising channels in

3
which the advertiser pays an advertising agency to place the ad. Below the line
advertising is based on advertising via direct mail, sponsorship, merchandising,
public relations, trade show and personal selling.

A variety of short-term incentives to encourage trial or purchase of a product. (Kotler

and Keller, 2009). The aim of sales promotion is to increase consumer demand,
stimulate market demand or improve product availability. The tactics used for this
include; coupons, point of sales, packaging promotion, web coupons, sweepstakes,
contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows
and trade-ins.

(Kotler and Keller, 2009) explained it as variety of programs designed to promote or

protect a company’s image or its individual product. For example, British Airways
has recently invested in changing its identity by redesigning its aircraft livery. The
change from the use of a corporate color scheme and national image on the aircraft to
a far more international image reflects the company’s global ambitions (Pender,
2009).

Company sponsored activities and programs designed to create daily or special brand
related interactions (Kotler and Keller, 2009). Sponsorship is about providing money
to an event, in turn the product or company is acknowledged for doing so.
Sponsorship helps the company improve its image and public relations within the
market and usually the company attempts to sponsor events that mirrors the image
they are trying to aim for.

Therefore the goal of this research was to find if consumer buying behavior is a
result of advertisements made on the cosmetics products. As stated previously,
advertising affect products and are believed to have an intrinsic quality that is not
known at the time of purchase .One of such product are cosmetics. It is for this
reason forever living products were chosen as a case study.

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1.1 Background of the Study
Advertising had been a subject discussed over centuries ago, but prior to the 20th
Century, this subject was not as important as it seems now. According to (Roberts, J.
1987) The reason been that, in the 19th century, economist were busy trying to
develop the theory of perfect competitive markets, this theory assumed that, there
was perfect information in the market and that, consumers had fixed preference for
their products which were homogenous in nature.

It was then thought of as a waste of resource and an increase in cost of production for
one to advertise on products because consumers were not in any way going to
respond to that. The advancement in transportation and technology, made producers
rethink their decision to improve their capacity and thus, ensure publicity of their
products (Roberts, J. 1987)

After these happenings, advertising then became an important area for economist to
research into. An early reflection was given by (Alfred Marshall 1890, 1919). In his
works, “Principles of Economics” and “Industry and Trade”. He marks out two roles
played by advertising. To him, advertising might be useful in providing information
to consumers which will help them satisfy their wants.

(Chamberlin, 1933) in his work “The Theory of Monopolistic Competition” came up

with new ways of looking at advertising. He modeled the expenditure of a firm as a
“selling cost” that expands a firm’s demand for a differentiated product. In his work,
he describes a market structure in which there are many firms producing and selling
similar but not identical products.

In this market, (Chamberlin, 1933) believes that advertising may provide consumers
with information about their wants but also adds that, it can be persuasive and alter
one’s demand for another. Advertising when informative makes consumers
responsive to price changes and thus increases the demand elasticity for the product
but a persuasive advert will create brand loyalty making the demand for a good
inelastic (Bagwell, 2011).

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(Chamberlin, 1933) then concluded that, the effects of advertising cannot be
determined by theory alone, thus where a firm’s demand curve is tangential to its U-
shaped average cost of production and selling, but by also considering the extent to
which advertising is whether informative or persuasive and also whether scale
economies exist (Bagwell, 2011).

After this insight by (Chamberlin, 1933), there came into existence three views of
advertising; persuasive, informative and complementary. The persuasive view
developed by Robinson and later advanced by (Braithwaite, 1928), and empirically
supported by (Bain, 1956) and (Comanor and Wilson 1974) hold that, advertising
affects one’s demand and it is capable of ensuring brand loyalty.

This view adds that, advertising makes demand for a product inelastic and thus
ensures increase in the price of the product and this effect might lessen as a result of
scale economies. The view also adds that, consumers are unwilling to try new
products especially those of unknown quality and this may deter entry of new
producers. These scholars agree that, this view of advertising will only work in scale
economies.

The informative view of advertising, propagated by (Ozga, 1960) holds that,

advertising serve to inform consumers about a product. They add that, advertising
increases the demand elasticity for a product and this happens because, it is believe
by these scholars that, as information of a product is given, it is assumed the product
is of high quality and this can even increase the demand for products.

There is the complementary view of advertising which is developed by (Stigler and

Becker, 1977), this view believes that, advertising influences consumers by attaching
a “complementary influence in the consumer’s utility function” (Bagwell, 2001).
These views make us understand the different phases through which advertising has
gone through.

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1.2 Statement of the Problem
Advertising has been a subject for debate either on one pretext or another for decades
at the beginning of the 19th Century. People showed little interest but it later became
a fertile topic for research at the turn of the 19th Century (Sharma, 2009).The reason
people lost interest was the fact that the role of advertisements was falling apart due
to the fact that most increase in product and sales, especially; cosmetics products had
been attributed to other factors like taste, long term use of products and users
unwillingness to switch products (Sundarsan, 2007).

The falling role raised numerous questions which became the problem of this study.
The researcher therefore intended to get answers as to how and why cosmetics
companies do advertise their products while they know the increase in product and
sales is attributed to other factors and no longer advertisements.

Cosmetics products were considered because they satisfy the conditions of

commodities on which they are effective to advertise. There are a lot of cosmetics
products which are differentiated but serve same purpose. Therefore, this study
aimed to find out the role of advertising in the consumer buying behavior of
cosmetics products specifically Forever Living cosmetic products with emphasis to
its users.

1.3 General Objective of the Study

The general objective of this study was to establish the influence of advertising on
consumer buying behavior by focusing on Forever Living cosmetics products.

1.3.1 Specific Objectives of the Study

The study was guided by the following specific objectives
(i.) To identify media of advertising used to advertise Forever Living Products
(ii.) To determine ways in which advertisement influence purchasing behavior
(iii.) To establish how different advertisements influence consumers behavior

7
1.4 Research Questions
The study was guided by the following research questions
(i.) Which media of advertisement is used to advertise Forever Living Products?
(ii.) In which ways does advertising influence consumer buying behavior?
(iii.) How elements of advertising influence consumer behavior?

1.5 Significance of the Study

The findings of the study benefitted cosmetics companies, specifically, Forever
Living Products by helping them to understand the influence of advertising on
consumer buying behavior, various media of advertisements that can be used to
advertise cosmetics products, ways in which advertisements influence consumer
buying behavior and how advertisements influence consumer buying behavior.

The findings of this study added to the existing body of knowledge on the influence
of advertising on consumer buying behavior by provide future researchers with a
source of empirical literature on the same or similar topics. Also, successful
completion of the study helped the researcher to partially fulfill the requirements for
the award of a Master’s of Science in Marketing Management offered by Mzumbe
University.

1.6 Limitation of the Study

The researcher faced time constraints since this is an academic paper and needed to
be completed according to the academic almanac of the university, hence it was a
short period of time for conducting the study. To address this constrain the researcher
had to manage time used for data collection by using interview and questionnaire
methods which helped to collect data in short period of time. The researcher was
willing to cover more respondents; however it was possible due to financial
constraints due to the fact that the amount available for conducting the study is not
sufficient. To solve financial constrain the researcher had to hire people who helped
to distribute and collect questionnaires while the researcher interviewed other
respondents.

8
1.7 Scope of the Study
The study focused on how advertising influences consumer buying behavior for
cosmetic products promoted by Forever Living Products. The study was conducted
in Kinondoni District in Dar es Salaam and involved 100 members of staff working
for Forever Living Products Company and consumers of various brands of Forever
Living cosmetics products

1.8 Organization of the Study

The study consists of five chapters. Chapter one offers introduction, research
problem, research objectives and research questions. The second chapter offers
literature review while the third chapter consists of methodologies that were used in
the study. The fourth chapter offers findings and subsequent justifications in analysis
while the fifth and last chapter offers conclusion, recommendations and suggested
areas of further study.

9
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
This chapter provides the theoretical literature review, empirical literature review,
research gap and conceptual framework

2.1 Literature Review

In conducting this study, the researcher was guided by the following theories;

2.1.1 Psychological Theories

The essence of psychological theories (learning theories) lies in the fact that people
learn from experience and the results of experience will modify their actions on
future occasions. The importance of brand loyalty and repeat purchase makes
learning theory more relevant in the field of marketing. Among the learning theories
come stimulus response theories and cognitive theories.

Contributors of stimulus response theories include Purlon, Skinner Thorindike and

Kotlew. According to them learning occurs as a person responds to some stimulus
and is rewarded with need satisfaction for a correct response. They proved that most
frequent and recent stimuli are remembered and responded. This approach is the
basis of reported advertisements.

The cognitive theory was propounded by Festinger mainly to explain certain post
buying behavior According to it stimulation and want are conditioned by a
consumer’s knowledge, his perception, beliefs and attitudes. The theory further states
that even after a well thought out purchase the consumers undergo some sort of
discomfort, fear or dissonance.

10
This post decision anxiety is caused by ‘nice’ (cognitive dissonance) arising from
doubts on the decisions taken. The consumers compare on the merits of the products
bought with substitutes or start analyzing drawbacks of the product. Such customers
require some reassurances from the seller stressing that the decision taken is wise
one. Though the theory was developed to explain a ‘post decision’ phenomenon.

Gestalt theory, coined by German Psychologist Christian Von Ehrenfels10 viewed

personality as the result of the interaction between the person and the total
environment and the two must be considered together as a patterned event.
Consumers attempt to stabilize their psychological field by providing meaning to the
surrounding world. Consumers strive to reduce conflict between themselves and their
environments.

2.1.2 Psycho-Analytic Theories

This theory developed from the thoughts of Sigmund Freud11. He postulates that
personality has three basic dimensions, the id, the ego and the super ego. Here the id
urges an enjoyable act, the super ego presents the moral issues involved and the ego
acts as the arbitration in determining whether to proceed or not. This is useful in
analyzing buyer’s behavior.

2.1.3 Socio Cultural Theories

The credit of formulation of this theory goes to (Veblen, 1899) and is known as
Veblenian Model. Using his theory, Veblenia asserted that a man is primarily a
social animal and his wants and behaviour are largely influenced by the group of
which he is a member. He argued that people have a tendency to fit in a society in
spite of their personal likes and dislikes.

Veblem’s Model explains culture in terms of social classes’ reference groups

whereby families are the different factor groups that influence buyer behaviour. All
the above theories give guidelines to the marketing managers on how a consumer
behave in a particular situation and what are the factors which influence their
decision making process.

11
2.1.4 Purchase Intention Theory
The study was guided by the Purchase Intention Theory developed by (Warshaw,
2000). According to the purchase intention model theory, culture affects decisions of
consumer on whether or not and what products to purchase. This means, consumers
in a particular setting are likely to arrive at similar purchasing decisions which are
different from consumers in other settings.

2.1.5 Theory of Reasoned Action

The Theory of Reasoned Action proposes a brand image–purchase decision
relationship linking brand image of a product with the purchase decision or intention.
Attitude of a consumer toward a particular brand is more likely to influence his or
her decision or intention to purchase the product. In general, people are likely to
purchase a product whose brand influences them the most (Castells, 2004).

2.1.6 Fishbein Attitude Theory

Fishbein Attitude Theory proposes that attitude toward an object (such as a product)
is based on the summed set of beliefs about the object’s attributes weighted by the
evaluation of attributes (Blackwell et al, 2011). A products attributes, characteristics
and the way it is perceived by consumers is also known as the brand image or
personality of the product.

2.1.7 Maslow’s Theory of Needs

Maslow’s Theory of Needs explains why people are driven by a particular need at a
particular time. According to the theory, human needs are arranged in hierarchy,
from the most pressing to the least pressing, in order of importance. When a person
succeeds in satisfying an important need, he/she will try to satisfy the next important
need. This theory explains how purchase decision is influenced by individual needs
(Maslow, 1954).

2.1.8 The Concept of Advertising

The concept of advertising can be explained in five steps sender, encoding, message,
decoding and receiver. This process explains the different stages through which

12
Message is formed and traveled to the audience. Advertising message is not just a
message; it is a bundle of representation of the product and the company. The
advertising process starts from sender and end up to receiver (Schramn, 1995).

Figure 2.1: Elements in Advertising Process Model

Media
Media
Sender Encodin Message Decoding Receiver
g

Sender
(Czinkota and Ronkainen ,2008) explains as the individual or firm who feels the
need to deliver the message and selects the combination of symbols, pictures, music
or words as a message to be transmitted. All the responsibility of the whole process
is on the shoulders of the sender. It is up to the sender how he designs the message
and which information he is using for audience.

Encoding
(Czinkota and Ronkainen, 2008) depicts that encoding is the design of the symbolic
arrangements which should be understandable by the receiver. It is in fact a crucial
stage to develop the basis of the message. Encoding is the functional stage where
sender of advertising message sees the functionality of the codes towards the receiver
of that particular advertising message.

Message
The message is actually the complete form of encoding. (Bovee and Thill, 2002)
define the message as the idea which is capable of being transmitted. When the
complete message is encoded, it is now ready to transmit to the audience. From here
the message is diffused to the audience through the prescribed media or combination
of media by the source.

13
Decoding
Decoding is the understanding of the delivered message. It is the process to translate
the message into an idea (Bovee and Thill, 2002). It is also the crucial stage of
Advertising that indicates how the receiver of the message perceives the delivered
message. If it was designed rightly according to the knowledge and understanding
level of the receiver then the feedback can be positive.

(Schramn, 1995) explains the advertising process in seven sequential stages in which,
individual or organization is defined as source, symbolic style as encoding,
transmission as signal, comprehension of symbolic style as decoding, individual or
organization who receive the message as receiver, their reaction back to source as
feedback and the distortion in the process as noise.

(Kotler and Keller, 2006) describes that the sender should know the audience very
well before designing the message. The audience can be varied preferences or
homogeneous which should carefully be studied. The suitability of all of the
elements is important. The intensity of the noise can be increased if the message will
not be suitable which can lead to the failure of advertising.

2.1.9 Advertisings Models

The figure above describes the three stages through which a consumer passes
through before making the decision to purchase a product namely cognitive,
affective, and behavioral stage, in that order. The stages are described by using four
models of advertising namely; AIDA model, Hierarchy of effects model, innovation-
adoption model and Hierarchy of needs model. This study used the AIDA Model.

According to the AIDA (Attention-Interest-Desire-Action) Model developed by

(Schramn, 1995), the decision by a consumer to purchase a particular product begins
when the product catches his or her attention. This is followed by developing an
interest for that product which is followed by the desire for that product to fulfill his
or her needs. Thereafter, the consumer decided to take action, which is to purchase
the product

14
Advertising means that, is a potent vehicle which includes imagination, creativity,
concepts, ideas and innovation to promote new products and remind about changes in
the old one. Advertising simply means selling but for this one need a creativity of
mind with the work of beauty and art. Advertising has been a subject discussed over
centuries ago, mostly in the 20th and 21st centuries whether advertising increases
prices or lower prices one of the most controversial issues.

Figure 2.2: Advertisings Models

The figure below describes various models of advertising. In this study the researcher
used the AIDA Model as described below;
Models
Stage AIDA Hierarchy of effects Innovation- Hierarchy or needs
Model Model Adoption Model Model
Awareness Exposure
Attention Reception
Cognitive Awareness
Stage Knowledge Cognitive response
Interest Liking Interest Attitude

Desire Preference
Affective Evaluation Intention
stage Conviction
Trial
Behavior
stage Action Purchase Adoption Behavior
Source: (Schramn, 1995)

2.1.10 Stages of the Buying Process

Consumers go through seven steps before reaching their final decisions. These seven
steps include; need recognition, search for information, pre-purchase, evaluation,
purchase, consumption, post-consumption evaluation and divestment (Blackwell et
al., 2011). Most buying decisions by consumers are primarily based on these seven
stages of consumers’ buying decisions.

15
Need recognition
The buying process is initiated when people recognize their unsatisfied need. There
are two kinds of needs, namely functional needs and psychological needs. Functional
needs are related to the performance of the product whereas psychological needs are
intrinsically obtained when customers feel contented with shopping or owning a
product which they long for (Blackwell et al., 2011).

Although there are many different ways to characterize needs, the most widely
known is Maslow’s hierarchy which specifies five need categories arranged in a
sequence from basic lower-level needs to higher-level needs. Five needs are
identified: physiological, safety and security, social, ego, and self-actualization.
Products can fill all these needs, and they become increasingly important (Zeithaml
and Bitner, 2000).

Information search
Information search begins when a consumer perceives a need that might be satisfied
by the purchase and consumption of a product. The recollection of past experiences
might provide the consumer with adequate information to make the present choice.
On the other hand, when the consumer has had no prior experience, he or she may
have to engage in a search for information (Schiffman and Kanuk, 2007).

A customer can obtain information from several sources such as; personal sources
(family, friends, neighbors etc), commercial sources (advertising, salespeople,
retailers, dealers, packaging, point-of-sale displays), public sources (newspapers,
radio, television, consumer organizations; specialist magazines) and experiential
sources (handling, examining, using the product) (Tudor, 2008).

Evaluation of alternatives
Stage three comes to the pre-purchase evaluation that consumers compare between
different products and brands to make a purchasing decision. In this stage, consumers
pay particular attention to the attributes which are most relevant to their needs.

16
Attributes like quantity, size, quality and price are commonly used to judge a brand
by customers (Blackwell et al., 2011).
When evaluating potential alternatives, consumers tend to use two types of
information; a list of brands from which they plan to make their selection and the
criteria they will use to evaluate each brand. Making a selection from a sample of all
possible brands is a human characteristic that helps simplify the decision-making
process (Schiffman and Kanuk, 2007).

Evoked set is the handful of choices that come into your mind at the time of making
a specific buying decision. To purchase services, the consumer visits establishment
that almost always offers only a single “brand” for sale. The criteria consumers use
to evaluate alternative products that constitute their evoked sets usually are expressed
in terms of important product attributes (Schiffman and Kanuk, 2007).

Purchase decision
Stage four refers to the purchase decisions made by the consumers after evaluating
the offers from different retailers. This is made by judging which retailers to buy
after investigating the attributes from the previous stage whereas in-store selection is
affected by the selling skills of salesperson, visual displays inside the shops, as well
as point-of-purchase advertising (Blackwell et al., 2011).

Consumers make three types of purchases: trial purchases, repeat purchases and long
term commitment purchases. When a consumer purchase a product for the first time
and buys a smaller quantity than usual, this purchase would be considered a trial.
Thus, a trial is the exploratory phase of purchase behavior in which consumers
attempt to evaluate a product through direct use.

Consumers can also be encouraged to try a new product through such promotional
tactics as free samples coupons and sale prices. Repeat purchase behavior is closely
related to the concept of brand loyalty, which most firms try to encourage because it
contributes to greater stability in the marketplace. A repeat purchase signifies that the
product meets with the consumer’s needs.

17
Post-purchase evaluation
The final stage is the post-purchase evaluation of the decision. It is common for
customers to experience concerns after making a purchase decision. This arises from
a concept that is known as “cognitive dissonance”. The customer, having bought a
product, may feel that an alternative would have been preferable. In these
circumstances that customer will not repurchase immediately (Tudor, 2008).

Figure 2.3: Stages of the Buying Process

The figure below provides a description of the five stages of the buying process that
each buyer has to go through.

For clarity, each level is depicted as mutually exclusive. However, there is some
overlap between each level, as no need is ever completely satisfied. For this reason,
although all levels of need below the level that is currently dominant continue to
motivate behavior to some extent, the prime motivator, the major driving force
within the individual is the lower level of need that remains largely unsatisfied
(Schiff man et al 2001).

18
2.10 Consumers Buying Behavior
Consumers buying behavior is focusing on how individuals make decisions to spend
valuable resources (time, money and effort) on consumption related items. This
includes what they buy, why they buy it, when they buy it, where they buy it, how
often they buy it, how often they use it, how to evaluate it after the purchase and the
impact of such evaluation in future and how they dispose of it.

According to (Proctor et al, 2002), the principle aim of consumer buying behavior
analysis is to explain why consumers act in a particular way under certain
circumstances. Other author argues that, it’s important to marketers to recognize why
and how individuals make their purchase decision. With this information, marketers
are able to determine better strategic marketing decisions.

They will be able to predict how consumers are likely to react to various
informational and environment cues and to shape their marketing strategies
accordingly once they have understood consumers behavior on purchasing. With no
doubt, marketers who understand consumer behavior have great competitive
advantages in the market place (Schiff man et al 2001).

The two authors (Schiff man et al 2001), in their book, mention two factors which
are influencing the consumers for decision making; risk aversion and innovativeness.
Risk aversion is a measure of how much consumers need to be certain and sure of
what they are purchasing. Highly risk adverse consumers need to be very certain
about what they are buying.

2.1.11 Types of Consumer Behaviour

There are five types of consumer behaviour namely; dissonance reducing, habitual,
variety seeking and complex buying behaviour as described below;

Dissonance reducing buying behavior

Dissonance reducing buying behavior occurs when the customer finds it difficult to
differentiate among the brands. As a result, consumers may respond primarily to a

19
relatively better price. After the purchase consumer might experience post purchase
dissonance (after sales discomfort). This is the consumer behaviour displayed mostly
by uninformed consumers (Kotler and Keller, 2006).

Habitual Buying Behavior

Habitual buying behavior is a consumer purchase decision where by the consumers’
level of involvement is low. This means that consumers don’t search much
information among the available brands and they don’t find significant differences
among the brands and buy the product without a high level of involvement. If the
consumers keep buying the same brand over and over again, it becomes their habit
(Kotler and Keller, 2006).

Variety Seeking Buying Behavior

In case of variety seeking buying behavior the level of consumer involvement is low,
but consumers perceive significant differences among the brands. In variety seeking
buying behavior, consumers very often switch from one brand to another (Kotler and
Keller, 2006). This purchase decision is common among consumers who want to stay
ahead of the latest fashion trends.

Complex Buying Behavior

Complex buying behavior can be defined when consumers are highly involved for
making a purchase decision. Complex buying behavior calls for high level of
involvement on the part of the consumer. In case of high involvement, consumers
distinguish salient differences among the competing brands. Consumers’ are highly
involved in case of expensive and highly self-expressive products (Kotler and Keller,
2009).

2.1.12 Factors Influencing Consumer Buying Behaviour

The following are the factors influencing consumer buying behavior.
Buyer’s readiness
Communication tools vary in cost-effectiveness at different stages of buyer
readiness. Advertising and publicity play the most important roles in the awareness

20
building stage. Customer comprehension is primarily affected by advertising and
personal selling. Customer conviction is influenced mostly by personal selling.
Closing the sale is influenced mostly by personal selling and sales promotion (Kotler
and Keller, 2009).

Type of product market

Communication mix allocations vary between consumer and business markets.
Consumer marketers tend to spend comparatively more on sales promotion and
advertising; business marketers tend to spend comparatively more on personal
selling. In general, personal selling is used more with complex, expensive, risky
goody and in markets with fewer and larger sellers (Kotler and Keller, 2009).

Product life cycle stage

Communication tools also vary in cost effectiveness at different stages of the product
lifecycle. In the introduction stage, advertising, events and experience, publicity have
the highest cost effectiveness, followed by personal selling to gain distribution
coverage and sales promotion and direct marketing to induce trial. In the growth
stage, demand has its own momentum though word of mouth.

2.1.13 Factors Affecting Consumer Purchase Decision

There are three categories of factors which affect consumer behaviour namely;
cultural factors, social factors and personal factors.

Cultural Factors
Cultural factors exert a broad and deep influence on consumer behavior which
including the roles of buyers’ culture, subculture and social class. Each culture
contains smaller subcultures, or groups of people with shared value systems based on
common life experiences and situations. Subcultures include nationalities, religions,
racial groups, and geographic regions (Kotler and Armstrong 2008).
Social Factors
A consumer’s behavior also is influenced by social factors, such as the consumer’s
small groups, family, and social roles and status. Social class is an invisible

21
stratification of the inhabitants of the society into different groups based on some
traits of the people. Inhabitants in a society can be divided into different social
classes according to their income level, occupation, education and so forth (Kotler
and Armstrong 2008).

A person’s social class can be defined by what he or she does with money. The
consumption choice of a person also determines the person’s position in society.
Every social class varies from each other because of having its own traits that set it
apart from other class. Social classes vary in costumes, language patterns and many
other activities and preferences (Kotler and Armstrong, 2008).

Personal factors
A buyer’s decisions also are influenced by personal characteristics such as the
buyers’ age and life-cycle stage, occupation, economic situation, lifestyle, and
personality and self-concept. People change the goods and services they buy over
their lifetimes. A person’s occupation affects the goods and services bought.
Similarly, a person’s economic situation affects product choice (Kotler and
Armstrong, 2008).

Psychological factors
A person’s buying choices are further influenced by four major psychological
factors: motivation, perception and attitudes. Motivation is the driving force within
individuals that impels them to action. Perception is the process by which people
select, organize, and interpret information to form a meaningful picture of the world
(Kotler and Armstrong, 2008).

Attitude describes a person’s relatively consistent evaluations, feelings, and

tendencies toward an object or idea. Attitudes put people into a frame of mind of
liking or disliking things, of moving toward or away from them. Attitudes are of
considerable importance in understanding the role of attitudes in consumer behavior
is an appreciation of the structure and composition of an attitude.

22
2.2 Empirical Literature Review
(Ahmed and Ashfaq, 2013) conducted a study to explain the impact of advertising on
consumers’ buying behaviour on purchasing cosmetics products. The findings of the
study showed that 41% of respondents were influenced by product quality, 39% were
influenced by to persuasiveness of the advertisement while 20% were influenced by
the information provided by the advertisement.

Another study conducted by ( Olomofe ,2010) on the factors which influence

purchasing decision by Nigerian women with regard to cosmetics found that 54%
were influenced by celebrity endorsements, 14% were influenced by the price of the
product, 12% were influenced by the packaging of the product while 10% were
influenced by the testimonials see in Television advertisements.

Another study conducted by (Kimathi, 2013) on factors that influence the purchase
decision by Kenyan women when buying cosmetics and beauty products, about 44%
of the total respondents said that their desire to buy product very much which they
see in advertising, 36 % said they were influenced by the packaging of the product,
17% of respondents were influenced by product price while 3%were influenced by
quantity.

( Rehman et al (2014) in in his research on how advertising affects the buying

behavior of consumers in Pakistan analyzed impact of advertisement on consumer
buying behavior, and the results of correlation indicated that advertising is positively
correlated with buying behavior at highest correlation of 0.414 or in other words
consumer buying behavior is impacted by advertisement .

(Rehman et al, 2014) found that advertisements provide consumers with the
information they need about the advertised product which in turn becomes source of
awareness when consumers discuss the information with their friends of families
whereby these information tend to influence consumers on what they buy, how they
buy, when they buy, where they buy and how they buy.

23
( Sonkusare ,2013) conducted a study on the impact of television advertising on
buying behavior of women consumers with special reference to Fast Moving
Consumer Goods (FMGCs). The findings of the study showed that majority of
consumers depend on Television advertisements in making their final decision what
to buy with regard to FMCGs.

(Sonkusare, 2013) concluded that advertisements have great impact on buying

behavior of women customers. Before purchasing any product customers/consumers
collects information for their comparing alternative product options before making
proper purchasing decision making activities hence advertising is mostly adopted to
get information about FMCG products.

(Abideen1 et all, 2011) conducted a study on the impact of advertising on consumer

buying behavior by focusing on mobile phone purchases in Pakistan. The study
found that advertising is the main factor which influences mobile phone purchases.
The study further established that advertisements which appealed to the emotions of
consumers were more likely to result in purchases.

(Abideen1 et all, 2011) also found that advertising is the main factor which
influences consumer buying behaviour especially if the advertisements are created I
such a way that they make the consumer excited, stimulated and frenzied. This is
because such advertisements are more likely to attract the attention, arouse interest
and create desire to purchase the advertised product.
(Abideen1 et all, 2011) concluded that responses in advertisements have great
influence on consumer buying behavior because majority of people buy mobile
phone sets after watching television ads. Accordingly, consumers consider that ads
regarding Nokia and Samsung are more attractive, and as a result people prefer to
buy them as compared to other cell phone.

(Gramm, 1969) conducted a study on the impact of advertising on demand

generation and wanted to establish the relationship between advertising and purchase
intention. The study found that advertising has a positive impact on demand creation

24
and also established that there is a positive relationship between advertising and
consumption.

In his study, Taylor and (Weiserbs, 2002) examined the relationship between
advertising expenditure on the aggregate consumption among consumers using
Houtakker-Taylor model. The study found that there is a simultaneous relationship
between advertising and consumption but not a unidirectional. Therefore, advertising
and consumption seem to work on each other.

( Kumar A, 2011) conducted a study to determine factors which influence consumer

buying behaviour among consumers of electronic products impact of advertising on
consumer buying behaviour. The study found that consumer behaviour is determined
by the effectiveness of marketing and advertising efforts of the company which
influence the perception of customers on product quality.

( Kumar A, 2011) study also found that a consumers make the decision to purchase a
particular product after being exposed to advertisements which raise their level of
awareness on the product, product price, product benefits and product quality. The
study also found that some consumers use advertisements to compare various
advertised products before making the decision to purchase.

In his study, (Proctor et al., 2002) noted that the principal aim of consumer behaviour
analysis is to explain why consumers act in particular way under certain
circumstances. The study tries to determine the factors that influence consumer
behaviour, especially the economic, social and psychological aspects which can
indicate the most favored marketing mix that management should select.

Consumer behaviour analysis helps to determine the direction that a consumer’s

behaviour is likely to take and to give preferred trends in product development,
attributes of the alternative communication method etc. Consumer behaviour analysis
views the consumer as another factor of production, a factor that producers cannot
control.

25
Finding the relationship between advertising and buying behaviour empirically,
(Gramm, 1969) conducted a study which aimed at studying “A Reconsideration of
Advertising Expenditures, Aggregate Demand and Stabilization”. Based on the
findings of the study, the author concluded that, there is no positive relationship
between advertising and aggregate consumption.

Another study conducted by (Taylor and Weiserbs ,1972 ) aimed to examine the
studying the relationship between advertising expenditure and aggregate
consumption using Houtakker-Taylor model revealed that, there is a simultaneous
relationship between advertising and consumption but not a unidirectional. Thus,
advertising and consumption seem to work on each other.

These findings are similar to the findings of a study conducted by ( Philip ,2007)
who aimed to establish “The Relationship between Advertising and Consumption in
India: An Analysis of Causality” made use of unit root test, cointegration and error
correction model and found out that, fluctuations in advertising expenditure
positively impacts consumption expenditure.

(Sharma, 2009) conducted a study to examine the effects of advertising on consumer

buying behaviour. The researcher used the Fixed Effect Model of Panel Data
Analysis for 134 companies; found in their study that, besides advertising, factors
like company’s brand, quality of the product and company’s reputation affect the
sales of a company.

( Kumar A, 2011) conducted a study of advertising and consumer buying behaviour

with special reference to Nestle Limited, India found that, advertising and sales
promotion together with the image of a company influence the consumer buying
decision. They added that, the quality and price of a product also influences a
consumer’s purchase of a good.

26
Another study conducted by (Bin Junaid A. et al, 2013) found in their study of
female buying behaviour of cosmetic products in New Delhi and NCR that, as
income of females increase, their purchase of cosmetic products also increase. They
also, added that, this increase in expenses on cosmetic product is made possible by
the advertisement made on them.

(Monthathip et all, 2009) conducted a study on the impact of culture on purchasing

by comparing between Thai and British Consumers. The findings of the study
showed that cultural difference impacts consumers’ decision on purchasing mobile
phone. The study further found that consumer purchase decisions in the two
countries were totally different due to different cultural background and social
influences.

( Sharafutdinova ,2008) conducted a study on consumer purchase decision on mobile

phones in emerging marketing by focusing on Russian consumers as a case study.
The study found that consumer purchase decision on mobile phones is affected by
price, brand association and brand awareness. The study found that customer is most
likely to purchase a mobile phone brand which they have used in the past.

The study also found that mobile phone buyers in Russia are highly influenced by the
country of origin from which the mobile phones were made. The findings of the
study showed a high inclination to mobile phones manufactured in European
countries (Sweden, Finland and Hungary) compared to mobile phones manufactured
in America or Asia.

A study conducted by (Veneeva, 2006) on consumer’s decision making on mobile

phones in Finland found that an individual desire and need are determined by culture
which could act as the most fundamental factor in consumer decision making. Other
factors include; price of the product, promotion and marketing strategies used for the
product and the influence of peers.

27
A study conducted by (Ergin et all, 2010) on purchase decision of cosmetics found
that the decision is strongly influenced by the consumer’s reference groups,
advertising and marketing. The study further found that consumers were most likely
to purchase a particular brand of cosmetics after having been referred to by their
peers who had already bought the cosmetics.

(Chen ,2003) conducted a study on factors that influence purchase of cosmetics in

the USA and found five important factors for cosmetics purchasing decision: the
quality of the product, product shape and colour choice, the size and weight, price
along with associated accessories, ease of use, new technology, product design,
appearance and price.

(Gabriel Byabato Bakilana, 2009) conducted a study on the impact of psychological

factors on consumers’ purchase decision by citing examples from Tanzania. The
study found that majority of the purchase decision of consumers in Tanzania is
highly influenced by social reference groups and price. The study also found that
sensitivity to price of the product is especially high among people of lower income
brackets.

The study also established another factor influencing consumer purchase decision
among Tanzanians to be the country-of-origin whereby products from highly
developed countries (e.g. Italy, Germany) were perceived to be of better quality
while products from developing countries (e.g. China, India) were perceived to be of
lesser quality (Gabriel Byabato Bakilana, 2009)

2.3 Research Gap

From literatures reviewed, we can say that, indeed advertising has a positive effect
on the purchase of consumers and it positively influences the sales of companies.
We found that most work done in the subject, found out the effects of advertising on
companies’ sales using various econometric tools. Little can be said of work done on
the consumers’ side using econometric analysis.

28
In this study most literature were from abroad, hence, there is a gap on local
empirical literature review on the influence of advertising on consumer buying
behavior of cosmetics products. This study aimed to fill this gap by focusing on
Forever Living cosmetics products in Tanzania as a case study.

2.4 Conceptual Framework

Figure 2.4: Conceptual Framework Advertising and Consumer’s Buying

Behavior
Types of Advertising
 Persuasive
 Informative
 Reminder

Intervening variables
Media of Advertising
 Television
 Radio
 Internet

Dependent variables
Buying Behavior
 What they buy
 Where they buy
 When they
 Why they buy

The conceptual framework provides a description of the relationships between the

concepts being used (Fisher and Krutilla, 2009). Defining the concepts and creating a
conceptual framework are means to simplify the research task and to clear away
issues that are not related to the topic and research question.

29
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.0 Introduction
This chapter presents the description of the study area and techniques which were
employed during data collection. These include sampling procedures as well as
criteria for selecting the study area. It also covers the instruments of data collection,
data processing, analysis, and presentation.

3.1 Research Design

The study employed both qualitative and quantitative research methods.
Amalgamation of different qualitative and quantitative techniques were ensured. This
enabled the maximization of the quality of data. Amalgamation of both qualitative
and quantitative research methods is opted because it helps the research to become
more comprehensive due to the statistical analysis together with observation,
interpretation and interviews.

3.2 Area of Study

The study was conducted in Kinondoni district, Dar es Salaam. The researcher
decided to conduct the study in Kinondoni district because it is where the Head
Office of Forever Living Products Company are located, thus it was easier for the
researcher to collect data from respondents who included members of staff of
Forever Living Products Company as well as consumers of Forever Living cosmetics
products.

3.3 Study Population

Kothari (2006) defines population of the study as the sum total of individuals from
which the researcher selects a sample of the study. The population of study include
members of staff of Forever Living Products Company and consumers of Forever

30
Living cosmetics products. The population was selected so as to enable the
researcher to get answers to research questions.
3.4 Sample and Sampling Techniques
This study sample included 100 respondents in total, this was enough size to
represent the entire population and enabled attainment of the purpose of measuring
some elements of the population and drawing conclusions regarding the entire
population. Purposive sampling and random sampling were used to select
respondents from among the population of the study.

Table 3.1: Sample Respondents: Sample size n=100

Category Number of respondents % of the total sample size
Consumers 50 50
Accountants 10 10
Cashiers 10 10
Sales officers 10 10
Marketing Managers 20 20
TOTAL 100 100
Source: Researcher 2015.

3.4.1 Purposive Sampling

Through this technique respondents were chosen based on the roles they play in the
company. Purposeful sampling technique was used to obtain data from key
informants such as company managers, sales managers, and marketing managers
because they play a significant role in advertisement in influencing consumer buying
behaviour with regard to Forever Living cosmetics products.

3.4.2 Random Sampling

Random sampling was used to select respondents among consumers of Forever
Living cosmetics products. Random sampling helped the researcher to select
respondents on equal chances in order to form the study sample and to reduce
researcher’s biasness in the sampling process. To ensure this for the customers, a
random pick was done among consumers who visited offices of the company to
purchase products.

31
3.5 Source of Data
The main sources of data was primary data which was collected directly from the
respondents through questionnaires, and secondary data which involves data already
collected by other others authors hence stored in articles, newspapers, books, and
research reports as examples, and these data was used based on the subject matter to
find out what they say about the impact of advertising on consumers buying
behavior.

3.6 Data Collection Methods

In this study, both, primary and secondary data collection methods were used.
Primary data collection methods that were used are; questionnaire, interview and
observation.

3.6.1 Questionnaire
Questionnaire being a piece of information elicited from respondents, therefore they
are forms containing questions to be filled in by respondents from which information
can be collected from the answers given, as for this research the questionnaire
contained structured and unstructured questions with the main aim of eliciting
information on the impacts of advertising on consumers buying behavior.

The questionnaires were administered to respondents with assurance of

confidentiality, anonymity and convenience. The method was because it enabled the
researcher to collect a large amount of information can be collected from a large
number of people in a short period of time and in a relatively cost effective way and
that its results can be easily quantified and analyzed more scientifically.

3.6.2 Interview
This method is that which information is to be obtained through inquiry and recorded
by a researcher. As for this research, structured interviews were used to collect
information from employees of Forever Living Products Company such as; Sales
Managers. A comprehensive interview guide was prepared and administered to

32
Respondents to enable the researcher to establish the influence of advertising on
consumer buying behaviour.

3.6.3 Observation
Respondents were observed as they purchase basing on factors they consider in
relation to advertisements they come across with and information from what was
observed was recorded by a researcher. The reason why this method was used is
because it is best method of studying human behavior and it is accurate and reliable
and that in its overall ability it helps to make an in-depth analysis of the problem.

3.7 Validity and Reliability of Instruments

According to Frankael and Wallen, (2000), validity refers to the degree to which any
inferences a researcher makes, based on the data he or she collects using a particular
instrument, is supported by evidence. Therefore, the coverage and relevance of the
instruments to the problem under study are subject to content validity. This entails
the extent to which questions in the instruments cover the ground to be explored.

In order to realize the validity and reliability of the instruments, the study was
conducted involving 100 consumers. The aim of the pilot study was to check the
effectiveness of the instruments in tapping the required information for this study. It
is expected that the findings from the pilot study would reveal the necessity for the
researcher to alter some items, for instance, simplifying some of the terms.

3.8 Data Presentation and Analysis Plan

Data analysis is a process that involves editing, coding, classifying and tabulating the
collected data (Kothari, 2004). In this study the researcher employed both qualitative
and quantitative data analysis techniques.

Qualitative data was analyzed using content analysis technique and frequencies,
percentage and tests of associations were calculated and presented in tables and
correlation coefficient was calculated in order to determine the relationships between

33
advertising and the company performances. Statistical Packages for Social Scientists
(SPSS) was employed in the process of data analysis.

3.8.1.1 Editing of Data

The editing of data was done at two stages: during the field and post-field editing.
The field editing was a review of reporting by the researcher for completing what has
been written in an abbreviated form during interviewing the respondents. The post-
field editing was carried out when field survey is completed and all the forms of
schedule have been collected together.

3.8.1.2 The Coding of Data

Data was assigned some alphabetical or numerical symbols or both to the answers.
The alternatives was mutually exclusive that is defined in one concept or term only.
To keep the response, descriptive statistics of the data was presented in graphs. The
researcher cross-tabulated some variables like age and sex, advertising effect and
purchase of products.

3.8.1.3 Classification of Data

Data was classified into groups and classes on bases of descriptive characteristics,
like age, sex, occupation, income level etc.

3.8.1.4 Data Presentation

The data collected was presented statistically for precise explanations. The data was
presented in the form of tables and charts by using words, numbers and percentages.
Therefore measures which were used here were mean, median and mode. Also
graphical presentation of data were used to compare the variables which are
advertisement and consumer buying behavior.

34
 CHAPTER FOUR

STUDY FINDINGS, ANALYSIS AND DISCUSSION

4.0 Introduction
This chapter presents presentation of research findings, data analysis and the
discussion. This chapter contains demographic information about respondents such
as age, gender and level of education, type of media of advertising used to advertise
Forever Living Products, ways in which advertisement influence purchasing
behaviour and how different advertisements influence consumer’s behaviour.

4.1 Demographic Characteristics of Respondents

This section presents demographic characteristics of respondents of the study.
4.1 Age of the Respondents
Table 4.1: Age Profile of Respondents
Males Females
25-30 years 8 8
31-35 years 48 48
36-40 years 32 32
41-50 years 12 12
Total 100 100
Source: Researcher’s Analysis (2015)

The researcher analyzed the age profile of respondents in order to establish whether
the influence of influence of advertising on purchasing behaviour is determined by
age of the recipient of the advertisement. From Table 4.1, it is apparent that majority
of respondents were aged 31 to 35 years (48%). The next largest of respondents were
aged between 36-40 years (32%), (12%) were aged 41-50 years old and only (8%) of
respondents were aged 25-30 years. The researcher has determined that buying
behavior of forever living products has relationship with the age of the respondents,
that the most of the consumers are the middle have middle aged from age of 30 to 40.

4.1.2 Gender Profile of Respondents

35
Gender was among the descriptive demographic parameters asked to the respondents.
The researcher analyzed the gender of respondents in order to establish whether the
involvement of respondents in the Forever cosmetics business is influenced by their
gender. The feedback from respondents was documented as shown in the table
below.

Table 4.2: Gender Profile of Respondents

Males Females
No. of respondents 40 40
Percentage (%) 40 60
Source: Researcher’s Analysis (2015)

As indicated in Table 4.2, males were 40 (40%) of respondents while women were
60 (60%) of respondents. This shows that the females are more involved in the
Forever cosmetics business than males. With respect to advertisements and how they
influence consumer buying behaviour, those who make advertisements of Forever
Living products are focused on women.

4.1.3 Level of Education of Respondents

The researcher analyzed the level of education of respondents in order to establish
whether the involvement of respondents in the Forever cosmetics business is
influenced by their level of education. The feedback from respondents was
documented as shown in the table below;

Table 4.3: Level of education of respondents

No. of respondents Percentage (%)
Diploma 16 16
Degree 60 60
Post Graduate 14 14
Masters 10 10
Total 100 100
Source: Researcher’s Analysis (2015)
The findings above show that 30% of respondents have degrees, 16% have
Diplomas, 14% have Post Graduate Diplomas, and 10% have Masters Degrees.
These findings show that majority of respondents are adequately qualified and that

36
those involved in the Forever Livings cosmetics business are well educated
individuals. These findings show that the target forever living products should
prepare advertisements that are smart and more likely to attract educated customers.

4.1.4 Awareness on Cosmetics Advertising Strategies

When probed about their awareness on cosmetics advertising strategies, majority of
the respondents indicated to be aware.

Table 4.4: Awareness on Cosmetics Advertising Strategies

No. of respondents Percentage (%)
Totally aware 58 58
Partially aware 32 32
Not aware 10 10
Total 100 100
Source: Researcher’s Analysis (2015)

The findings above in table 4.4 show that 58% of respondents reported to be totally
aware of cosmetics advertising strategies, 32% were partially aware, while only 10%
of respondents were not aware of cosmetics advertising strategies. These findings
show that majority of respondents are aware of advertising strategies used in
advertising Forever Living products. With this regard, the Forever Living customers
are well aware of the various products and services they are buying and they make
informed decisions before purchasing.

4.1.5 Experience of Respondents in Cosmetics Industry

Respondents were asked to indicate their level of experience in cosmetics industry
(specifically the Forever Living cosmetics business).The objective was to find out
whether the influence of advertising on consumer buying behaviour is determined by
the experience of customers with the products. The findings of the analysis are
presented in Table 4.5 below.

Table 4.5: Experience of Respondents in Cosmetics Industry

7 years or more 5-6 years 3-4 years 0-2 years
No. of respondents 78 12 6 4

37
 Percentage (%) 78 12 6 4
Source: Researcher’s Analysis (2015)

The findings above show that 78% of respondents had experience of 7 years or more
in the cosmetics industry, while 12% of respondents had experience of 5-6 years, 6%
of respondents had experience of 3-4 years and 4% of respondents had experience of
0-2 years. These findings show that majority of respondents have vast experience in
the cosmetics industry and this enhances their ability to perform well in their Forever
Living cosmetics business. This means, the more experienced customers are with
using Forever Living consumer products, the more likely they are to be influenced by
advertisements when making their purchasing decisions.

4.2 Advertising Strategies Used by Forever Living

The researcher analyzed the feedback from respondents on various types of
advertising strategies used by Forever Living to promote cosmetics products.
Respondents were asked to choose among 10 various types of advertising strategies
used by Forever Living to influence customers to buy cosmetics products. The
objective was to establish which advertising strategy is most used. The findings of
the analysis were documented as shown in the table below;

Table 4.6: Advertising strategies used by Forever Living

No. of respondents Percentage (%)
Event advertising 72 72
Word of mouth advertising 72 72
Magazine advertising 69 69
Facebook advertising 54 54
Display advertisements 8 8
DVD advertising 46 46
T-Shirt advertising 14 14
Trade fairs advertising 24 24
Website advertising 14 14
Television advertising 18 18
Source: Researcher’s Analysis (2015)

The findings above show that the main types of advertising used by Forever Living
are; event and word of mouth advertising (both 72%), magazine advertising (69%),

38
Facebook advertising (54%), DVD advertising (46%), trade fair advertising (24%),
event advertising (18%), T Shirt and Website advertising (both 14%) as well as
display advertising. These findings show that among the various types of advertising
used for promoting Forever Living cosmetics products, word of mouth and events are
the most preferred.

The researcher observed that Forever Living uses various advertising strategies
which include the use of DVDs which show how the cosmetics products are made
from the farm, to the factory until it reaches the final consumer. After seeing such
advertisements, the consumers become confident about purchasing the product
because they are sure of the ingredients, quality and benefits of using the products.

The researcher also observed that forever living products uses online advertising
platforms to advertise cosmetics products. All products offered by the company are
displayed in the company’s website and Facebook page with all the necessary
information such as price of the , ingredients of the products, benefits of using the
products as well as testimonials from people who have used the product previously.
Another advertising strategy used by Forever Living is event advertising. The
company organizes frequent events in which hundreds of people attend and receive
information about various products. The events are also used to offer testimonials
from other people who have used the products and attendees also get the chance to
ask various questions and get answers from Forever Living product experts.

Another advertising strategy used by Forever Living to promote cosmetics products

include the use of display advertising including fliers, brochures, billboards and
product catalogues. Normally, once a consumer becomes a member of Forever
Living Company, he or she is provided with a catalogue which displays all products
offered by the company with all information such as price, quantity, ingredients and
benefits.

Last but not least, Forever Living Company participates in various trade fairs and
exhibitions and uses the opportunity to display products, distribute product

39
catalogues, fliers and brochures, showcase product DVDs and interact with
consumers face to face. The company also offers free T-shirts to consumers which
also serve as advertising platform.

4.3 Influence of Advertising on Consumer Buying Behaviour Using AIDA

Model
Based on the second objective of the study, this sections explains how advertising
influences consumer buying behaviour using the AIDA Model

4.3.1 Advertising Influences Consumer Buying Behaviour by Attracting

Attention
The researcher analyzed the feedback from respondents on whether advertising
strategies used by Forever Living influence consumer buying behaviour by attracting
attention to cosmetics products. The feedback from respondents was documented as
shown in the table 4.7 below.

Table 4.7: Advertising Attracts Attention on Forever Living Cosmetics

Products
Strongly agree Agree Disagree Strongly disagree
No. of respondents 38 36 18 8
Percentage 38% 36% 18% 8%
Source: Researcher’s Analysis (2015)

The findings above show that 38% of respondents strongly agree that advertising
influences consumer buying behaviour by attracting attention to Forever Living
cosmetic products while 36% agree, 18% disagree and 8% of respondents strongly
disagree. The respondents were of the opinion that advertising enables consumers to
find out various information about the cosmetics products including where the
product was made, ingredients of the products, quality of the products and the
benefits of using the product.

4.3.2 Advertising Influences Consumer Buying Behaviour by Arousing

Interest

40
The researcher analyzed the feedback from respondents on whether advertising
strategies used by Forever Living influence consumer buying behaviour by arousing
interest on Forever Living cosmetics products. The feedback from respondents was
documented as shown in the table 4.8 below.

Table 4.8: Advertising Arouses Interest on Forever Living Cosmetics

Products
Strongly agree Agree Disagree Strongly disagree
No. of respondents 26 42 24 8
Percentage 26% 42% 24% 8%
Source: Researcher’s Analysis (2015)

The findings above show that 26% of respondents strongly agree that advertising
influences consumer buying behaviour by arousing interest on Forever Living
cosmetic products while 42% of respondents agree, 24% of respondents disagree and
8% of respondents strongly disagree. From the interviews conducted with
respondents, the researcher also found that advertising plays a significant role in
influencing the purchasing decision with regard to cosmetic product because it helps
to differentiate Forever Living cosmetics products from other cosmetics products.
Thus, advertising influences consumers to purchase Forever Living cosmetics
products instead of their competitions.

4.3.3 Advertising Influences Consumer Buying Behaviour by Creating Desire

The researcher analyzed the feedback from respondents on whether advertising
strategies used by Forever Living influence consumer buying behaviour by creating
desire for Forever Living cosmetics products. The feedback from respondents was
documented as shown in the table 4.9.

Table 4.9: Advertising Creates Desire for Forever Living Cosmetics

Products
Strongly agree Agree Disagree Strongly disagree
No. of respondents 58 26 8 8
Percentage 58% 26% 8% 8%
Source: Researcher’s Analysis (2015)

41
The findings above show that 58% of respondents strongly agree that advertising
influences consumer buying behaviour by creating desire for Forever Living
cosmetic products while 26% of respondents agree, 8% of respondents disagree and
8% of respondents strongly disagree. These findings suggest that advertising helps to
influence consumer buying behaviour by making the consumer want to use Forever
Living cosmetics products instead of other cosmetics products. Fist time users of
Forever Living cosmetics products are more likely to be influenced by to start using
Forever Living products after seeing advertisements.

4.3.4 Advertising Influences Consumer Buying Behaviour by Leading to

Action
The researcher analyzed the feedback from respondents on whether advertising
strategies used by Forever Living influence consumer buying behaviour by leading to
action to the action of purchasing Forever Living cosmetics products. The objective
was to find out whether the information provides through advertising influences
consumer buying behaviour. The feedback from respondents was documented as
shown in the table 4.10.

Table 4.10: Advertising Leads to Purchase of Forever Living Cosmetics

Products
Strongly agree Agree Disagree Strongly disagree
No. of respondents 72 25 3 0
Percentage 72% 25% 3% 0%
Source: Researcher’s Analysis (2015)
The findings above show that 72% of respondents strongly agree that advertising
influences consumer buying behaviour by leading to the act of purchasing Forever
Living cosmetic products, 25% of respondents agree, 3% of respondents disagree and
8% of respondents strongly disagree and there were no respondents who strongly
disagreed.

These findings show that advertising influences consumer buying behaviour by

providing the consumers with information about the products and the consumers use

42
that information to make the decision whether to purchase the products or not.
Information such as products benefits, price, quantity and quality help to influence
consumers to purchase Forever Living cosmetics products.

4.4 Elements of Advertisement which Influence Consumer Buying Behavior

Based on the third objective of the study, this sections explains how different
elements of advertising influence consumer buying behaviour.

4.4.1 Product Benefits

The researcher analyzed the feedback from respondents on whether product benefits
influences consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.11 below.

Table 4.11: Product Benefits Influence Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 78 12 6 4
Percentage 78% 12% 6% 4%
Source: Researcher’s Analysis (2015)
The findings above show that 78% of respondents strongly agree that product
benefits influences consumer buying behaviour, 12% of respondents agree, 6% of
respondents disagree and 4% of respondents strongly disagree. These findings show
that product benefits influence consumer buying behaviour. Consumers are more
likely to purchase products after they become aware of the benefits of using that
product through ads.

4.4.2 Product Quality

The researcher analyzed the feedback from respondents on whether product quality
influences consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.12

Table 4.12: Product Quality Influences Consumer Buying Behaviour

Strongly agree Agree Disagree Strongly disagree
No. of respondents 84 10 4 2
Percentage 84% 10% 4% 2%

43
Source: Researcher’s Analysis (2015)

The findings shown above show that 84% of respondents strongly agree that product
quality influences consumer buying behaviour while 10% of respondents agree, 4%
of respondents disagree and 2% of respondents strongly disagree.
These findings show that product benefits influence consumer buying behaviour.
Consumers are more likely to start using a product after becoming aware of the
quality of the products through advertisements.

4.4.3 Influence of Product Ingredients on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether word of product
ingredients influence consumer buying behavior. The feedback from respondents
was documented as shown in the table 4.13 below.

Table 4.13: Product Ingredients Influence Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 92 4 2 2
Percentage 92% 4% 2% 2%
Source: Researcher’s Analysis (2015)

The findings above show that 92% of respondents strongly agree that product
ingredients influence consumer buying behaviour while 4% of respondents agree, 2%
of respondents disagree and 2% of respondents strongly disagree. These findings
show that product ingredients influence consumer buying behaviour. This shows that
customers are more likely to start using a product after becoming aware of the
ingredients of the products through advertisements.

4.4.5 Influence of Product Price on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether product price
influences consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.14 below.

44
Table 4.14: Product Price Influences Consumer Buying Behavior
Strongly agree Agree Disagree Strongly disagree
No. of respondents 66 14 16 4
Percentage 66% 14% 16% 4%
Source: Researcher’s Analysis (2015)

The findings above show that 66% of respondents strongly agree that product price
influences consumer buying behaviour while 14% of respondents agree, 16% of
respondents disagree and 4% of respondents strongly disagree. These findings show
that product price influence consumer buying behaviour. These findings show that
consumers are more likely to make the decision to purchase a product after becoming
aware of the price of the product through advertising.

4.4.6 Influence of Product Quantity on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether product quantity
influences consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.15 below.

Table 4.15: Product Quantity Influences Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 86 8 4 2
Percentage 86% 8% 4% 2%
Source: Researcher’s Analysis (2015)

The findings above show that 86% of respondents strongly agree that product
quantity influences consumer buying behaviour while 8% of respondents agree, 4%
of respondents disagree and 2% of respondents strongly disagree. These findings
show that product quantity influence consumer buying behaviour. These findings
show that consumers are more likely to be influenced to purchase a product after
becoming aware of quantity of the product through advertisements.

4.4.7 Influence of Product Packaging on Consumer Buying Behavior

45
The researcher analyzed the feedback from respondents on whether product
packaging influences consumer buying behavior. The feedback from respondents
was documented as shown in the table 4.16.

Table 4.16: Product Packaging Influences Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 16 58 24 2
Percentage 16% 58% 24% 2%
Source: Researcher’s Analysis (2015)

The findings above show that 16% of respondents strongly agree that product
packaging influences consumer buying behaviour while, 58% of respondents agree,
24% disagree and 2% strongly disagree. These findings show that consumers are
more likely to be influenced to purchase a product after seeing how the product is
packaged through advertisements.

4.4.8 Influence of Models Used in Advertisement on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether models used in
the advertisement influence consumer buying behavior. The feedback from
respondents was documented as shown in the table 4.5.7 below.

Table 4.17: Models Used in Advertisement Influences Consumer Buying

Behavior
Strongly agree Agree Disagree Strongly disagree
No. of respondents 24 30 34 12
Percentage 24% 30% 34% 12%
Source: Researcher’s Analysis (2015)

The findings above show that 24% of respondents strongly agree that models used in
advertisement influence consumer buying behaviour while 30% of respondents
agree, 34% of respondents disagree and 12% of respondents strongly disagree. These
findings show that models used in advertisement influence consumer buying
behaviour and that consumers are more likely to buy a product after being influenced
by the model used in the advertisements.

46
4.4.9 Influence of Product Name on Consumer Buying Behavior
The researcher analyzed the feedback from respondents on whether product name
influences consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.18 below.

Table 4.18: Product Name Influences Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 46 22 18 14
Percentage 46% 22% 18% 14%
Source: Researcher’s Analysis (2015)
The findings above show that 46% of respondents strongly agree that product name
influences consumer buying behaviour while 22% of respondents, 18% of
respondents disagree and 14% of respondents strongly disagree. These findings show
that product name influence consumer buying behaviour. This means consumers are
more likely to make the decision to buy a product based on the name of the product
as seen in advertisements.

4.4.10 Influence of Product Colour on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether product colour
influence consumer buying behavior. The feedback from respondents was
documented as shown in the table 4.19 below.

Table 4.19: Product Colour Influence Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 22 66 10 2
Percentage 22% 66% 10% 2%
Source: Researcher’s Analysis (2015)

The findings above show that 66% of respondents strongly agree that product colour
used influence consumer buying behaviour while 22% of respondents strongly agree,
10% of respondents disagree and 2% of respondents strongly disagree. These
findings show that product colour influence consumer buying behaviour. This means

47
that some consumers re likely to be influenced to purchase a particular product due
to their colour preferences or affiliation with a particular colour.

4.4.11 Influence of Product Testimonial on Consumer Buying Behavior

The researcher analyzed the feedback from respondents on whether product
testimonial influences consumer buying behavior. The objective was to find out
whether consumers make buying decisions based on testimonials of other consumers.
The feedback from respondents was documented as shown in the table 4.20 below.

Table 4.20: Product Testimonial Influences Consumer Buying Behavior

Strongly agree Agree Disagree Strongly disagree
No. of respondents 38 42 14 6
Percentage 38% 42% 14% 6%
Source: Researcher’s Analysis (2015)

The findings above show that 42% of respondents strongly agree that product
testimonial influences consumer buying behaviour while 38% of respondents
strongly agree, 14% of respondents disagree and 6% of respondents strongly
disagree. These findings show that product testimonial influence consumer buying
behaviour. This means consumers are more likely to make the decision to buy a
particular product after listening to testimonials from other consumers who has
purchased the product before.

4.5 Ranking of Elements of Advertisement which Influence Buying Behavior

To establish which among elements of advertising which influence consumer
behaviour with regard to Forever Living cosmetics products, the researcher used
correlation analysis to rank the elements of advertisements which influence
consumer buying behaviour. Based on the correlation analysis, the elements of
advertising with higher correlation coefficient have a higher likelihood of influencing
consumer behaviour, and vice versa. The results of the correlation analysis are as
follows.

48
4.6.1 Correlation Coefficient for Product Benefits

Table4. 21: Correlation Coefficient for Product Benefits

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 1.000**
Sig. (2-tailed) .000
N 4 4
VAR00002 Pearson Correlation 1.000** 1
Sig. (2-tailed) .000
N 4 4
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.1 above indicates that product benefit and buying behaviour have
positive magnitude of (correlation coefficient) of 1.000.Positive correlation suggests
that product benefits and buying behaviour move in the same direction. This results
tell us that products benefits and buying behavior are correlated.

4.6.2 Correlation Coefficient for Product Quality

Table 4.22: Correlation Coefficient for Product Quality

49
Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .996**
Sig. (2-tailed) .004
N 4 4
VAR00002 Pearson Correlation .996** 1
Sig. (2-tailed) .004
N 4 4
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.2 above indicates that product quality and buying behaviour have
positive magnitude of(correlation coefficient) of 0.996.Positive correlation suggests
that product quality and buying behavior move in the same direction. This results tell
us that products quality and buying behavior are correlated.

4.6.3 Correlation Coefficient for Product Ingredients

Table 4.23: Correlation Coefficient for Product Ingredients

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 1.000**
Sig. (2-tailed) .000
N 4 4
VAR00002 Pearson Correlation 1.000** 1
Sig. (2-tailed) .000
N 4 4
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.3 above indicates that product ingredients and buying behavior have
positive magnitude of (correlation coefficient) of 1.000.Positive correlation suggests
that product ingredients and buying behavior move in the same direction. This results
tell us that product ingredients and buying behavior are correlated.

4.6.4 Correlation Coefficient for Product Price

50
Table 4.24: Correlation Coefficient for Product Price
Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 1.000**
Sig. (2-tailed) .000
N 4 4
VAR00002 Pearson Correlation 1.000** 1
Sig. (2-tailed) .000
N 4 4
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.4 above indicates that product price and buying behavior have positive
magnitude of (correlation coefficient) of 1.000.Positive correlation suggests that
product price and buying behavior move in the same direction. This results tell us
that products price and buying behavior are correlated.

4.6.5 Correlation Coefficient for Product Quantity

Table 4.25: Correlation Coefficient for Product Quantity

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .995**
Sig. (2-tailed) .005
N 4 4
VAR00002 Pearson Correlation .995** 1
Sig. (2-tailed) .005
N 4 4
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.5 above indicates that product quantity and buying behavior have
positive magnitude of (correlation coefficient) of 0.995.Positive correlation suggests
that product quantity and buying behavior move in the same direction. These results
tell us that products quantity and buying behavior are correlated.

51
4.6.6 Correlation Coefficient for Product Packaging

Table 4.26: Correlation Coefficient for Product Packaging

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .252
Sig. (2-tailed) .748
N 4 4
VAR00002 Pearson Correlation .252 1
Sig. (2-tailed) .748
N 4 4
Source: Researcher’s Analysis (2015)
The table 4.6.6 above indicates that product packaging and buying behavior have
positive magnitude of (correlation coefficient) of 0.252.Positive correlation suggests
that product packaging and buying behavior move in the same direction. These
results tell us that product packaging and buying behavior are correlated.

4.6.7 Correlation Coefficient for Product Names

Table 4.27: Correlation Coefficient for Product Names

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .070
Sig. (2-tailed) .930
N 4 4
VAR00002 Pearson Correlation .070 1
Sig. (2-tailed) .930
N 4 4
Source: Researcher’s Analysis (2015)
The table 4.6.7 above indicates that Product Name and buying behavior have positive
magnitude of (correlation coefficient) of 0.70.Positive correlation suggests that

52
Product Name and buying behavior move in the same direction. These results tell us
that Product Name and buying behavior are correlated.

4.6.8 Correlation Coefficient for Models Used in Advertisements

Table 4.28: Correlation Coefficient for Models Used in Advertisements

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .974*
Sig. (2-tailed) .026
N 4 4
VAR00002 Pearson Correlation .974* 1
Sig. (2-tailed) .026
N 4 4
*. Correlation is significant at the 0.05 level (2-tailed).
Source: Researcher’s Analysis (2015)
The table 4.6.8 above indicates that Models used in advertising and buying behavior
have positive magnitude of (correlation coefficient) of 0.974.Positive correlation
suggests that models used in advertising and buying behavior move in the same
direction. These results tell us that models used in advertising and buying behavior
are correlated.

4.6.9 Correlation Coefficient for Product Colour

Table 4.29: Correlation Coefficient for Product Colour

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .070
Sig. (2-tailed) .930
N 4 4
VAR00002 Pearson Correlation .070 1
Sig. (2-tailed) .930
N 4 4
Source: Researcher’s Analysis (2015)

53
The table 4.6.9 above indicates that Product Colour and buying behavior have
positive magnitude of (correlation coefficient) of 0.70.Positive correlation suggests
that Product Colour and buying behavior move in the same direction. These results
tell us that Product Colour and buying behavior are correlated.

4.6.10 Correlation Coefficient for Product Testimonial

Table 4.30: Correlation Coefficient for Product Testimonial

Correlations
VAR00001 VAR00002
VAR00001 Pearson Correlation 1 .490
Sig. (2-tailed) .510
N 4 4
VAR00002 Pearson Correlation .490 1
Sig. (2-tailed) .510
N 4 4
Source: Researcher’s Analysis (2015)
The table 4.6.10 above indicates that Product Testimonials and buying behavior have
positive magnitude of(correlation coefficient) of 0.490.Positive correlation suggests
that Product Testimonials and buying behavior move in the same direction. This
results tell us that Product Testimonials and buying behavior are correlated.

4.6 Ranking of Elements of Advertisement which Influence Buying Behavior

Table 4.31: Ranking of Elements of Advertisement which Influence Buying

Behavior
S/N Correlation coefficient
1 Product benefits 1.000
2 Product ingredients 1.000

54
 3 Product quantity 0.998
4 Product quality 0.996
5 Product price 0.995
6 Models used in advertisements 0.974
7 Product testimonial 0.490
8 Product packaging 0.254
9 Product names 0.070
10 Product colour 0.070
Source: Researcher’s Analysis (2015)

4.7 Conclusion
As shown in the table above, the findings from the study show that the most
influential element of advertising with regard to consumer buying behavior is
product benefit which represents the benefits that the consumer is getting by using
the product. Other elements of advertising which influence consumer buying
behavior include (by order of significance); products ingredients (materials of which
the product is made of), product quality, product quantity, product price, models used
in the advertisements, product testimonial (testimonials given by other consumers
who have previously used the product), product packaging (the materials, texture,
design and shape of the package of the product), product name and product colour.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction
This chapter presents the summary of the study based on the research results
/findings, objectives, conclusion made by the study, recommendations made by the
researcher and areas for further studies. The general objective of this study is to
establish the influence of advertising on consumer buying behavior by focusing on

55
Forever Living cosmetics products. Specifically, the study aimed to identify media of
advertising used to advertise Forever Living Products, determine ways in which
advertisement influence purchasing behavior and establish how different
advertisements influence consumer’s behavior

5.1 Summary of the Research Findings

Advertising had been a subject discussed over centuries ago, but prior to the 20th
Century, this subject was not as important as it seems now. According to (Roberts, J.
1987) The reason been that, in the 19th century, economist were busy trying to
develop the theory of perfect competitive markets, this theory assumed that, there
was perfect information in the market and that, consumers had fixed preference for
their products which were homogenous in nature.

The general objective of the study was to establish the influence of advertising on
consumer buying behavior by focusing on forever living cosmetics products. The
specific objectives were: to identify the media of advertising used to advertise
Forever Living Products, to determine ways in which advertisement influence
purchasing behavior, to establish how different advertisements influence consumer
behavior.

The following are among the key findings of this study:

Most of the forever living products consumers have middle aged from 30 to 40 years
old

Women engage more of forever living products business

The majority of business persons involved on forever living products posses degree
level of education

Advertising of Forever living products has been outlined as the most significant
factors by respondents. Integrated marketing communication mix(promotional mix)
elements played a key in consumers adoption and products knowledge, this includes
special events and word of mouth which carried majority percentages on its

56
 effectiveness on consumers production knowledge and adoption, followed by
magazine advertising, use of social media such as facebook,DVD advertising, web
based and T-shirts print outs advertising.

Consumers purchasing decisions on buying forever living products is determined by

Marketing Communication model such as AIDA model, whereby advertisement
creates attention, arouse interests, creates desire and draws attention to the
consumers.

The findings showed that advertising influence consumers buying behavior by

providing consumers with information about the products and the consumers use that
information in purchasing decisions. Information analyzed and have showed direct
relationships were products benefits, price, quantity, quality, ingredients, packaging,
product name, color and product consumption testimonials

5.1.1 Recommendations
The country is experiencing much possession of various cosmetics products users
and this brings stiff competition under this circumstance, it is essential to investigate
what motivates consumers to buy forever living products. This research has shown
that advertisement as part of the promotional mix should be given the highest priority
by the Organization preceding pricing and distribution of forever living products

5.1.2 Specific Recommendations

The following are the specific recommendations obtained from this study;

5.1.3 Effective marketing programs should be implemented at the Organization

Marketing programs should be well formulated and implemented at the Organization,

for effective adoption of cosmetic products at the organization. Since every adoption of
products can be effective only after the organizations has done enough situation analysis
and hence designed effective marketing programs by utilizing and managing effectively

57
the components of the marketing mix elements as the study has shown. Therefore,
marketing mix components need to be effectively managed by the organization. This
could enhance increase in customer’s adoption and acceptance on using the forever
living cosmetics products (Kotler, 2012). Since marketing mix elements determine the
success or failure of every business program in the Organization, management needs to
enhance effective marketing programs that can be managed by the organization so that
the organization can increase the adoption of forever living products.

5.1.4 The business transactions at forever living Company should be market and
customer centered/ driven

Customer relationship management is the system of managing the Organization by

interacting the sales, marketing and other department with the major goal of satisfying
the customer. This can be assisted by the use of technology in the interaction process
(Kotler, 2007).With the increase competition in the cosmetics industry in Tanzania and
breakthroughs in technology advancement in Tanzania and East Africa, innovation, best
employees and effective Customer Relations Management are of utmost importance.

It has been found age and the level of education determines the consumers buying
behavior of forever living products This called on the need for more promotions, by
first analyzing the needs of customers (target market) by assessing which products of
the Organization need to design satisfy the target market and increase the market share
of forever living products. This being the part of an effective Marketing Research at
Forever Living Company should adhere the marketing philosophy termed as the
customer is the King or Queen (Kotler, 2012).

5.1.5 The assessment on further consumer behaviors needs for effective adoption
of forever living products should be identified

Since this study has indicated that product benefits, ingredients, quantity, quality,
product price, models used in advertisements, product testimonials, product packaging,
product names and product color are significant factors in consumer buying behavior of
forever living products especially cosmetic products, it is essential for the Organizations

58
to investigate further what motivates people to purchase cosmetic products by looking
on other factors such as, past internet experience, income, culture of the society etc.
There is a need to reinforce forever living Company to be the learning organization
which can learn from the developed countries their performances on the relationship
between effective advertising strategies and consumer buying behavior. This can be
attained by having a long term plan of training for employees on business process
development techniques.

5.1.6 The Company should design some advertisement on Swahili language

To enhance the influence of advertising on consumer behavior on Forever Living
cosmetics products, the researcher recommends that the company should create
advertisements in Kiswahili language since all current advertisements are in English
language. This will enable the advertisements to reach more people.

5.1.7 Advertisement should be created and designed in the Local context of

Tanzania Situation
The researcher also recommends that the company should create advertisements that
reflect the local situation. Currently, all advertisements use white people and the
images are from European countries. The company should use images of local people
to advertise the products so as to influence consumers to buy Forever Living
cosmetics products.

5.2 Suggested Strategies

Findings from the study suggested the following strategies to be implemented:

5.2.1 Products should be market driven

Forever Living Company needs to respond to market demands in business and in

developing of its products. This should be in line with the management of the
marketing mix elements on in carrying out the Organizational marketing programs and
tactics. The market structure of cosmetic products in Tanzania is also competitive in

59
 nature as there other cosmetic companies, so there is a need of carrying out more
extensive and intensive marketing research so as to innovate better and draw new
competitive cosmetic products to entice many needs on consumer’s adoption. Since in
the modern business, there is no way that customers can come and take your offers or
services without thoroughly understanding whether their needs and wants are met.
This is a precondition for being part of stimulated demand.

5.2.2 Forever Living Business Persons need to be trained on service delivery and
customer care

In order for Forever living Company to be effective on its products adoption, Customer
understanding of their needs and wants are of utmost importance, and the first
customers are the its intermediaries(middlemen). Middlemen shall be very motivated to
work, after having enough training on customer care and customer relations skills. They
will serve well the members and attract non-members to join the business networks as
well as having effective consumers’ adoption and purchase of its products.

5.2.3 Forever Living Company needs strong partnership and strategic alliance

Effective Current business undertakings and performances are done though

partnerships. This partnership in business might increase the synergy and enable fast
and efficient reach of Products well as reduce the transactions cost to the Organization.
Such complementarity with the assistance of technology can develop partnering on part
of the business process with other firms. Therefore there is a need of more than ever
partnership with other firms through vertical integrations, as this may assist the
penetration rate, the awareness of the products of Forever Living Company and
ultimately competitive growth of the firm.

5.3 Conclusion
From the findings of the study, the researcher concludes that advertising plays a very
significant role in influencing consumers buying behavior by providing attracting
their attention, arousing their interest, creating desire for the product and finally

60
make them decide to purchase the products. These findings are compatible to the
AIDA advertising model which was used in the study.

During the study, the researcher found that Forever Living uses various advertising
strategies namely; event and word of mouth advertising, magazine advertising,
Facebook advertising, DVD advertising, trade fair advertising, event advertising, T
Shirt and Website advertising. Through these advertising strategies, the company has
been able to attract more buyers.

Advertisements used by Forever Living to promote cosmetics products influences

consumer buying behavior by; providing them with information about product
benefits, price, quality, ingredients, quality, product quantity, product testimonial,
product packaging, product name and product colour. The advertisement creates
awareness of the products and attracts more buyers.

5.4 Area for Further Studies

The researcher recommends that, further studies should be conducted on the
influence of advertising on consumer buying behavior of other cosmetics products of
different companies other than forever living Limited like Oriflame so that to widen
the scope of knowledge in the field and increase the number of local empirical
studies in Tanzania context. 67
The researcher recommends that, further studies should be conducted on factors
which determine the choice of media used by advertisers to advertise the products in
order to maximize consumer interest on their products.
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APPENDICES

Appendix 1: Work Plan

Activity Week1 Week2 Week3 Week4 Week5 Week6 Week7
Literature review
Research problem
definition
Research questions’
development
Research objectives
hypothesis
development
Research

68
methodology set-up
Presentation of initial
research proposal
Review and re-
writing research
proposal
Submission of final
research proposal
Data collection
Data analysis and
interpretation
Research report
writing – first draft
Research report
submission first draft
Review and re-
writing research
report
Research report
submission to
External Examiner
Research report re-
writing final
Submission of final
research

Appendix 2: Estimated Research Budget

Items Amount TZS
Stationary and Printing
a) 4 reams of photocopy and printing papers 32,000
@ TZS 8,000/-
b) Writing, printing, photocopy and binding 500,000 532,000
1000 pages @ TZS 50
Internet Services
a) Browsing for downloads 10 times x 4
months @ TZS 1200 48,000
b) Printing the downloads – est. at TZS

69
 50,000 98,000
Data analysis and reporting costs:
a) Data processing and analysis 350,000
b) Secretarial services 440,000
c) Report production & editing 450,000 1,240,000
Total 2,000,000
Contingency: 10% of total 300,000
GRAND TOTAL 2,300,000

70