Noakhali Science & Technology

University

A Report On

“Impact of Advertisement on Consumer Buying Behavior”

Prepared For

Mahabubul haq
Assistant professor
Department of business administration

Prepared by

Mofasser Haider Bhuiyan

ASH 1210008M
Session 2011-2012
Department of business administration
Major: Management Studies

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Impact of Advertisement on Consumer Buying Behavior

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 Certification Letter:

May 20, 2017

I am pleased to declare that Mofasser Haider Bhuiyan ID: ASH1210008M student of BBA program was
advised to perform a research work and he choose to conduct his research work on the topic “Impact of
advertisement on consumer buying behavior”

This student has reviewed all the relevant materials and has conducted efforts practically in “Impact of
advertisement on consumer buying behavior” to achieve practical knowledge regarding consumer behavior
and their attitude towards advertisement. I have supervised his study from the very beginning as well as the
preparation of the final Report.

I also knowingly certify that the Project Report is an original one and has not been submitted elsewhere
previously for publication in any form.

He is wished all the best in his effort.

Mahbubul Haq Masum Miah

Lecturer Assistant Professor
Department of Business Administration Chairman
Noakhali Science and Technology University Department of Business Administration
Sonapur, Noakhali. Noakhali Science and Technology University
Sonapur, Noakhali.

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 Supervisor’s Approval

I hereby declare that the concerned report titled “Impact of Advertisement on Consumer Buying Behavior”- is
originated by Mofasser Haider Bhuiyan, Session: 2011-2012, student of BBA program, Noakhali Science &
Technology University, completed his project under my supervision and submitted for the degree of Bachelor
of Business Administration(BBA).

………………………

Mahabubul Haq
Assistant professor
Department of Business Administration
Noakhali Science & Technology University

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 Declaration

May 9, 2017

I am Mofasser Haider Bhuiyan, ASH1210069M, BBA final year second-semester student of Noakhali
Science and Technology University. Hereby declare that the project report under the project title “Impact of
Advertisement on Consumer Buying Behavior” is my own work and I have done this project under the
supervision of Md.Mahbubul Haq (Assistant Professor of business Administration).

I also declare that the content of this project is purely a part of this comprehensive project work and the content
has not been submitted to any other university for the award of any degree, diploma or fellowship.

Further, I assign the right to the university to use the information and contents of this project report to develop
cases, case leads, and paper for publication or for use the teaching.

Signature of student

Mofasser Haider Bhuiyan

ASH 1210008M

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 Letter of Transmittal

Date: 25-6-2017
Mahabubul Haq
Assistant Professor
Department of Business Administration
Noakhali Science and Technology University
Noakhali-3814, Bangladesh.
Subject: Submission of Project paper.

Dear Sir,

It is great pleasure to submit the project paper on, “Impact of Advertisement on Consumer Buying Behavior”
as a part of BBA program. My involvement in preparing this project paper has given me the opportunity to explore
one of the latest and unexplored areas of advertising concept in context of Bangladesh and expand my
knowledge thereby.

Within the limited time, I have tried my level best to complete the project paper and compile the pertinent
information as comprehensively as possible and if you need any further information, I will glad to assist you.

Sincerely,

……………………………….
Mofasser Haider Bhuiyan
Department of Business Administration
Major in Management Studies
B.B.A Program
Noakhali Science & Technology University

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 Acknowledgement

First of all, I would like to express my gratitude to almighty Allah to give me the opportunity to successfully
conduct this research work and my parents for all the support of the last 25 years.

I would like to express my gratitude to my worthy Project Supervisor, Mahabubul Haq for his suggestion,
support and affection throughout the last six months, and relevant suggestions towards the success of this
work.

I would like to express my gratitude also to my friends who helped me by providing very valuable information
regarding the topic. Basically, the all type of assistances made my project paper complete.

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 TABLE OF CONTENT
PAGE
CHAPTER PARTICULARS
NO.
ABSTRACT 10
INTRODUCTION
1.0 BACKGROUND OF THE STUDY 11

1.1 STATEMENT OF PROBLEMS 12

1.3 LIMITATIONS OF THE STUDY 13

1 1.4 RESEARCH QUESTION 13

1.5 DATA COLLECTION 13

1.6 THE AIM OF THE PROJECT 14

1.7 OBJECTIVE OF THE STUDY 14

2 REVIEW OF RELATED LITERATURE 15

INTRODUCTION TO ADVERTISEMENT
3.1 ORIGIN AND DEVELOPMENT OF ADVERTISING 17

3.2 DEFINITION OF ADVERTISEMENT 17

3.3 COMPRISED IN ADVERTISING 18

3.4 ADVERTISING INCLUDES THE FOLLOWING FORMS OF 18

MESSAGES

3.5 EXCLUDED FROM ADVERTISING: 19

3.6 THE ACTIVITIES EXCLUDED FROM ADVERTISING ARE 19

ADVERTISING OBJECTIVES
4.0 ADVERTISING OBJECTIVES 20

4.1 IMPORTANCE OF ADVERTISING 20

4 4.2 BASIC CONSUMER RIGHTS: 21

4.3 PSYCHOLOGY OF ADVERTISING: 21

4.4 DIFFERENT TYPES OF DECISION-MAKING 23

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 PHASE 5: OVERVIEW OF UNILEVER BANGLADESH
LIMITED
5.1 THE HISTORY 25

5.2 UNILEVER TODAY 25

5.3 MISSION 26
5
5.4 CORPORATE VISION 26

5.5UNILEVER BRANDS AND PRODUCT OFFERINGS: 26

5.6 IN BANGLADESH, UNILEVER’S STRENGTHS COME FROM: 27

5.7 CLOSE UP TOOTHPASTE 27

DATA PRESENTATION AND ANALYSIS 29

6
FINDINGS 44

7 45
REFERENCES

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 Abstract

This is a research work carried out to evaluate the impact of advertising on consumer buying behavior with
particular reference to Unilever Bangladesh Limited, makers of Close Up toothpaste. The objective of the
research work is to determine the role of advertisement in the marketing of consumer goods and to understand
consumers’ views and opinions towards advertisement of consumer products in general and Close Up
toothpaste in particular.

Data for the research were collected through primary and secondary sources. Primary data was collected
through a questionnaire which was uploaded through Google forms and spread through social media sites and
was delivered to some specific persons from different levels of society to assemble clear and more reliable
information regarding Close Up toothpaste and its advertising formula in TV and other media. Secondary data
was collected by analyzing different newspaper and website of Unilever Bangladesh Limited and used in our
research and analysis.

The collected data were analyzed in tables and simple percentages, while the hypotheses were tested using
the chi-square technique. In the final analysis, attempts were made to bring to summary the tested research
hypotheses, which proved that:

1. Advertising has improved consumer preference for Maggi noodles to other noodles.
2. There has been a significant increase in sales of Maggi noodles as a result of advertising.
3. Nestle Bangladesh Limited has been able to overcome competitors through advertising.

Given three hypotheses as stated in chapter one, these hypotheses were tested critically to reveal the
authenticity of responses by the respondents to the research questions. From this study, I came up with the
hypothesis that almost 20% of the consumers of Bangladesh are indifference in buying consuming goods
based on the advertisement, they generally use any products based on their family members’ choice and their
past experience. 80% of the consumers generally used to be penetrated by advertisement and they expect their
product to be seen in a different medium of advertisement.

This project paper recommends that advertisement must be more consumer and information oriented rather
basing on entertainment eventually celebrity endorsement and engagement of common facts and persons make
a boom for advertisement. Advertising should be seen as an investment into the future of products.

In the final analysis, attempts were made to bring to summary the tested research hypotheses, which proved
that:

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Introduction of “The Effects of Advertising on Consumer Buying Behavior”

1.1 Background of the study

There is no concrete definition of marketing communication in literature, Fill refer marketing communication
as

“Marketing communication is a management process through which an organization engages with its various
audience. By understanding the audience’s communication environment, organizations seek to develop and
present messages for its undefined stakeholder groups, before evaluating and acting upon the responses. By
conveying messages that are of significant value, audiences are encouraged to offer attitudinal and behavioral
responses”.

Therefore, the purpose of marketing communications could be stated as to make the organization and its
offerings known for the public and to get the response in form of behaviors and attitudes from the customers.
Marketing communication process can be viewed from two perspectives – internal and external marketing, it
also includes different marketing activities performed in order to fulfil the purpose.

Internal marketing is the appliance of marketing, human resource management, with related theories and
principles to motivate, manage and cooperate employees in the organization in order to improve the way they
serve external customers and also each other. Internal marketing is also viewed as the “umbrella” for internal
activities where the starting point is that the employees are the first market for the organization. Thus, internal
marketing could be defined as a tool of promoting the organization and its products to its own employees; it
includes marketing activities within the organization.

External marketing, on the other hand, covers the traditional marketing activities of the organization. They
could be categorized into activities of product development, price setting, communication, and distribution,
which provide a connection between organization and its customers. In other words, the external marketing
contains activities outside the company, those visible to the customers. It involves traditional marketing
efforts, such as performing market research; personal selling; sales promotion; public relations; advertising,
etc.

External marketing activities of the organization are intended to satisfy the consumers’ needs. In order to
satisfy the consumer needs and demands, organizations should first understand its target group. Marketers
need to understand what makes potential customers behave the way they do - the consumer behavior. Proctor
noted that the major objective of consumer behavior analysis is to explain why consumers proceed in a specific
way under certain circumstances. Consumer behavior analysis tries to determine the factors such as economic,
social and psychological factors that affect the consumer behavior; these factors, consequently, can designate
the most favored marketing mix that should be selected. Consumer behavior analysis can also be useful in
determining the direction that consumer behavior is likely to take and to suggest possible trends in product
development, implementation and communication methods.

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Consumer behavior analysis considers consumers as additional variable in the marketing sequence, the one
which is difficult to control and that will interpret the product or service not only in terms of its physical
characteristics, but also in the context with the image in relation to the social and psychological background
of each individual consumer.

1.2 Statement of the problem

Advertising as one of the activities of external marketing

“whether it is on an international, national, local or direct basis, is important, as it can influence audiences
by informing or reminding them of the existence of the brand, or alternatively by persuading them or helping
to differentiate a product or organization from others in the market”.

Advertising, especially TV advertising, plays a very important role in organizations communication with its
customers. From consumers’ perspective, Fill says that advertising is viewed together with customers’
experience and also recollection of the brand. It means that the role of feeling that customers get from
advertising is essential for building brand awareness and brand strength. The good advertising will not leave
viewers indifferent. It will stir up feelings and inspire purchases, and will be beneficial for both producers
and consumer’s. In order to create the effective advertisement, it is important to understand target audiences
behavior during the whole decision-making process, which can be summarized in the following sequence:

Need Recognition Information

Post Purcvhase
Fucntional or search & Purchase
Use & Evaluation
emotional benefi Evaluation

Figure: Consumer decision making process

While rational customer behavior is not complicated for understanding as it is driven by logic and purpose,
the emotional component is sometimes not so easy to explain and evaluate. Recognition of the motives that
drive customers’ decisions is important for the company that seeks the ideas for the new commercials. Evans
distinguish between external and internal motivation. The internal motivation comes from the customer and
is related to his/her needs, demands, and emotions, and is often accompanied with the “physiological base”
(hunger, thirst, etc.).

The external motivation comes from the surroundings and is based on an attractiveness of products/services;
it often develops into internal motivation in form of preference for certain products/services, situations.
Advertising can be seen as an external motivator that through its attractiveness and stimulation forces is able
to influence the customers’ attitudes toward the product/service, and encourages the consumer-producer
relationships: purchase and post purchase interactions.

Consequently, advertising is said to have an impact on the consumers’ behavior and personal attitudes towards
the product/service. The interest stimulated by the commercials will determine the level of customers’
involvement in purchasing process: high or low.

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The advertisement content and appeal can be stimuli for the watchers to pay attention to the message, process
the information, compare it with what the other companies in the same marketing niche are saying, and finally
make a decision concerning the product/service. The advertisement involves customers in the learning process
and the depth of the involvement will depend on both, watchers’ personal needs as well as the effectiveness
of the advertisement.

1.3 Limitations of the study

We have limited our research to the some major FMCG goods, rather than the entire industry. Moreover, the
study is also made only based on the consumer’s feeling and reaction towards advertisement and their attitude
rather discussing and evaluating overall advertising policy of the company and expert opinion

1.4 Research question

1.4
Main Question: What are the differences and similarities between public attitudes and responses towards the
commercials and actual expectations of customer’s attitudes towards their commercials?

Sub-Questions:
How did customers perceive advertisement and responded to them?
What were company’s expectations of customer perception of the advertisement?

1.5 Data Collection

Questionnaire method is planned to use for data collection from primary consumers of different FMCG goods.
The questionnaire will allow me to gather specific information on different consumers’ perception about how
advertisement effect on their buying behavior especially on their emotional component and attitude towards
a specific product or services.

According to Ruane,

“A questionnaire is a self-contained, self-administered instrument for asking questions”.

According to the Naresh K. Malthotra,

A questionnaire is a structured technique for data collection consisting of a series of questions written or
verbal, to which a respondent reply.

The questionnaire was divided into structured and unstructured questions accordingly. A structured question
may either entail multiple choices, dichotomous questions, or a scale, whereas an unstructured question is an
open-ended question, which implies that the respondents answer in their own words. The structured questions
that were asked were either dichotomous or scales. In dichotomous questions, the respondents could only
choose between two response alternatives, such as Yes or No, making it easy to code and analyse. A ratio
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scale was also used which allowed the respondents to classify or rank order the objects, i.e. 1 – 5, where 5
represents “very good” and 1 indicates “very bad”.
Finally, in combination with the structured questions, unstructured questions were asked, where the
respondents were able to clarify and express in detail their responses and opinions.

The objective of a questionnaire includes: first it must translate the information needed into a set of specific
questions that the respondents can and will answer. Second objectives of a questionnaire are to “uplift,
motivate, and encourage the respondent to become involved in the interview, to cooperate, and to complete
the interview”.

1.6 The aim of the project

The aim of this study is to describe the correspondence between the feelings and attitudes customers poses
towards the advertisements and the company’s expectations embodied in the commercial appeal and the
communicated message.

1.7 Objective of the study

This study aims to understand the relationship between advertising and consumer buying behavior. We
examine that whether it is successful by their fancy and glamorous advertisement in attracting the attention of
customers of both genders and both residences i.e. rural and urban or not?

This study will help the industry to analyze the effectiveness of their advertisements and will be able to
evaluate that how the corporate sector and advertising agencies can improve to attract the major portion of the
population. This study is unique because no one has conducted such type of research in Noakhali

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Phase 2: Literature review on Impact of advertisement on consumer buying
behavior

Promotion is one of the most effective tools of marketing. According to Stanton (1978), promotion is an
exercise in information, persuasion, and influence. Its aim is to reinforce positive behavior or change a
negative behavior towards a product. Promotional activities include; Advertising, Publicity, Personal Selling,
Public Relations, Sales Promotion, Trade fairs, and exhibitions etc.

Predominantly, in this chapter, discussions are concentrated on advertising. Here, the effort is made at
reviewing various authors’ comments in specific areas intended to be covered. Many authors in marketing
communications and individuals who have carved a niche in advertising have said many things, which are
considered useful in this study.

“Advertising presents the most persuasive selling message to the right prospects for a product or service at
the least possible cost.”
- The UK Institute of Practitioners in Advertising (adapted from Dogudje 2009).

In the words of Kaufman (1980), “advertising is not chemistry, with rules and laws that, if followed with
reasonable precision, will lead to predictable results every time. Advertising is not a panacea that can restore
a poor product or rejuvenate a declining market; it is not a substitute for sound business judgment nor is
advertising merely the words and pictures that appear in newspapers and magazines, on billboards and on
television screens. These are the means or the media that advertising uses to communicate its information
about products, services, and ideas to people: information designed to persuade them to make buying or action
decisions. Advertising is the art and business of persuasive communication”.

Nwaizugbo (2004) defines advertising as a process of presenting a product or idea to a person or group of
persons, some openly sponsored message (oral or visual) about a product or seller. This message which is
being presented is known as advertising.

Jefkins (1985) submitted that advertising is the means by which we make known what we have to sell or what
we want to buy.

In other words, the British Code of Advertising Practice defines advertising as a paid-for communication
addressed to the public or a section of it, the purpose of which is to influence the opinions or behavior of those
to whom it is addressed.

Whereas, Kotler & Armstrong (2007) see advertising as any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.

To Anyacho (2007), advertising is a form of communication through the media about products, services, ideas
paid for by an identified sponsor.

Wright, Winter & Zeigler (1983) see advertising as a powerful communication force and a vital marketing
tool, helping to sell goods, services, images and ideas (or ideals) through channels of information and
persuasion. By this definition, it’s noteworthy that advertising never sells products but helps to sell products.

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 Above all, the American Marketing Association (AMA) recommends this definition: - Advertising is any
paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor.
In this definition, the following phrases were further explained.

There is no concrete definition of marketing communication in literature, Fill says that marketing
communication “is a management process through which an organization engages with its various audience.
By understanding the audience’s communication environment, organizations seek to develop and present
messages for its undefined stakeholder groups, before evaluating and acting upon the responses. By conveying
messages that are of significant value, audiences are encouraged to offer attitudinal and behavioral
responses”. Therefore, the purpose of marketing communications could be stated as to make the organization
and its offerings known to the public and to get the response in form of behaviors and attitudes from the
customers.
Marketing communication process can be viewed from two perspectives – internal and external marketing, it
also includes different marketing activities performed in order to fulfill the purpose.
Joseph suggests that internal marketing is the appliance of marketing, human resource management, with
related theories and principles to motivate, manage and cooperate employees in the organization in order to
improve the way they serve external customers and also each other. Grönroos sees internal marketing as the
“umbrella” concept for internal activities where the starting point is that the employees are the first (internal)
market for the organization. Thus, internal marketing could be defined as a tool for promoting the organization
and its products to its own employees; it includes marketing activities within the organization.
External marketing, on the other hand, covers the traditional marketing activities of the organization. They
could be categorized into activities of product development, price setting, communication, and distribution,
which provide a connection between the organization and its customers. In other words, the external marketing
contains activities outside the company, those visible to the customers. It involves traditional marketing
efforts, such as performing market research, personal selling, sales promotion, public relations, advertising
etc. External marketing activities of the organization are intended to satisfy the consumers’ needs. (Tansuhaj
et. al., 1987)
In order to satisfy the consumer needs and demands, organizations should first understand its target group.
Marketers need to understand what makes potential customers behave the way they do - the consumer
behavior. Proctor et al. (1982) noted that the major objective of consumer behavior analysis is to explain why
consumers proceed in specific ways under certain circumstances. Consumer behavior analysis tries to
determine the factors (e.g. economic, social and psychological) that affect the consumer behavior; these
factors, consequently, can designate the most favored marketing mix that should be selected. Consumer
behavior analysis can also be useful in determining the direction that consumer behavior is likely to take and
to suggest possible trends in product development, implementation and communication methods.
Consumer behavior analysis considers consumers as an additional variable in the marketing sequence, the one
which is difficult to control and that will interpret the product/service not only in terms of its physical
characteristics but also in the context of the image in relation to the social and psychological background of
each individual consumer. (Ayanwale et al, 2005)
This study, therefore, seeks to evaluate the impact of advertisement of Maggi noodles, a product of nestle
Bangladesh Ltd. on Consumer buying behavior. The brand Maggi with its different flavors such as Masala &
Curry flavors has become a household name since the late 90s that even a child of 2years of age could
pronounce it so fluent amidst other competing brands like Knorr noodles, Mama noodles, Mr. noodles, Fu-
Wang noodles, Cocola noodles. With these range of competing products, massive advertising budget becomes
necessary for the Maggi brand, which the researcher tends to evaluate its impact on the behavior and/or
perception of the consumers.

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Phase 3: Introduction to advertisement

3.1 origin and development of advertising

It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the
Romans practiced advertising; but the earliest indication of its use in this country dates back to the Middle
Ages, when the use of the surname indicated a man’s occupation. The next stage in the evolution of advertising
was the use of signs as a visual expression of the tradesman’s function and a means of locating the source of
goods. This method is still in common use.

The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the
availability of his services. If there were many competitors, he relied upon his own personal magnetism to
attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the
advantages of his products. Thus, the seller was doing the complete promotion job himself.

Development of retail stores, made the traders to be more concerned about attracting business. Informing
customers of the availability of supplies was highly important. Some types of outside promotion were
necessary. Signs on stores and in prominent places around the city and notices in printed matters were
sometimes used.

When customers were finally attracted to the store and satisfied with the service at least once, they were still
subjected to competitive influences; therefore, the merchants sign and advertisements reminded customers of
the continuing availability of his services. Sometimes traders would talk to present and former customers in
the streets, or join social organizations in order to have continuing contacts with present and potential
customers.

As the markets grew larger and the number of customers increased, the importance of attracting them also
grew. Increasing reliance was placed on advertising methods of informing about the availability of the
products. These advertising methods were more economical in reaching large numbers of consumers’. While
these advertising methods were useful for informing, and reminding and reminding, they could not do the
whole promotional job. They were used only to reach each consumer personally. The merchant still used
personal persuasion once the customers were attracted to his store.

The invention of hand press increased the potentialities of advertising. By Shakespeare’s times, posters had
made their appearance, and assumed the function of fostering demand for existing products. Another important
event was the emergence of the pamphlet as an advertising medium. The early examples of these pamphlets
disclose their sponsorship by companies want to generate goodwill for their activities. The low cost of posters
and handbills encouraged a number of publishers to experiment with other methods.

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3.2 Definition of advertisement

The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning
of the term is “to give public notice or to announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media space or time in order to
promote a product or an idea.
The American Marketing Association, Chicago, has defined advertising as “any form of no personal
presentation or promotion of ideas, goods or services, by an identified sponsor.”

Advertisement is a mass communicating of information intended to persuade buyers to buy products with a
view to maximizing a company’s profits. The elements of advertising are:

1 It is a mass communication reaching a large group of consumers’.

2 It makes mass production possible.
3 It is non-personal communication, for it is not delivered by an actual person, nor is it addressed to a
specific person.
4 It is a commercial communication because it is used to help assure the advertiser of a long business life
with profitable sales.
5 Advertising can be economical, for it reaches large groups of people. This keeps the cost per message
low.
6 The communication is speedy, permitting an advertiser to speak to millions of buyers in a matter of a
few hours.
7 Advertising is identified communication. The advertiser signs his name to his advertisement for the
purpose of publicizing his identity.

3.3 Comprised in Advertising

1 The information in an advertisement should benefit the buyers. It should give them a more satisfactory
expenditure of their rupees.
2 It should suggest better solutions to their problems.

3 The content of the advertisement is within the control of the advertiser, not the medium.
4 Advertising without persuasion is ineffective. The advertisement that fails to influence anyone, either
immediately or in the future, is a waste of money.
5 The function of advertising is to increase the profitable sales volume. That is, advertising expenses
should not increase disproportionately.

3.4 Advertising includes the following forms of messages:

1 Newspapers and magazines;

2 On radio and television broadcasts;

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3 Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in
packages);
4 Dealer help materials,
5 Window display and counter – display materials and efforts;
6 Store signs, motion pictures used for advertising,
7 Novelties bearing advertising messages and Signature of the advertiser,
8 Label stags and other literature accompanying the merchandise.

3.5 Excluded from Advertising:

1 Advertising is not an exact science. An advertisers’ circumstances are never identical with those of
another; he cannot predict with accuracy what results his future advertising efforts will produce.

2 Advertising is not a game, because if advertising is done properly, both the buyer and the seller benefit
from it.

3 Advertising is not a toy. Advertiser cannot afford to play with advertising. Advertising funds come from
sales revenue and must be used to increase sales revenue.

4 Advertisements are not designed to deceive. The desire and hope for repeat sales insures a high degree
of honesty in advertising.

3.6 The activities excluded from advertising are:

1 The offering of premiums to stimulate the sale of products

2 The use of exhibitions and demonstrations at fairs, show and conventions

3 The use of samples and activities, involving news releases and the activities of personal selling forces
4 The payment of advertising allowances which are not used for advertising
5 The entertainment of customers

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Phase 4: Advertising objectives

4.0 Advertising Objectives

Each advertisement is a specific communication that must be effective, not just for one customer, but for many
target buyers. This means that specific objectives should be set for each particular advertisement campaign.
Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This
requires that the target consumers should be specifically identified and that the effect which advertising is
intended to have upon the consumer should be clearly indicated. The objectives of advertising were
traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives
that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to
condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising
objectives serve as guidelines for the planning and implementation of the entire advertising programme.

The basic objectives of an advertising programme may be listed as below:

1 To stimulate sales amongst present, former and future consumers. It involves a decision regarding the
media, e.g., TV rather than print

2 To communicate with consumers. This involves decision regarding copy

3 To retain the loyalty of present and former consumers. Advertising may be used to reassure buyers that
they have made the best purchase, thus building loyalty to the brand name or the firm.

4 To increase support. Advertising impliedly bolsters the morale of the sales force and of distributors,
wholesalers, and retailers, it thus contributes to enthusiasts and confidence attitude in the organizational.

5 To project an image. Advertising is used to promote an overall image of respect and trust for an
organization. This message is aimed not only at consumer’s, but also at the government, shareholders,
and the general public.

4.1 Importance of Advertising

Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective
customers. It can secure leads for salesmen and middlemen by convincing readers to request more information
and by identifying outlets handling the product. It can force middlemen to stock the product by building
consumer interest. It can help train dealers’ salesmen in product uses and applications. It can build dealer and
consumer confidence in the company and its products by building familiarity. Advertising is to stimulate
market demand.
While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand
for the product, it is seldom solely relied upon. Advertising is efficiently used with at least one other sales
method, such as personal selling or point-of-purchase display, to directly move customers to buying action.

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Advertising has become increasingly important to business enterprises – both large and small. Outlay on
advertising certainly is the voucher. Non-business enterprises have also recognized the importance of
advertising. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the
advantages of a military career. The health department popularizes family planning through advertising Labor
organizations have also used advertising to make their viewpoints known to the public at large. Advertising
assumes real economic importance too.
Advertising strategies that increase the number of units sold stimulate economies in the production process.
The production cost per unit of output is lowered. It in turn leads to lower prices. Lower consumer prices then
allow these products to become available to more people. Similarly, the price of newspapers, professional
sports, radio and TV programs, and the like might be prohibitive without advertising. In short, advertising
pays for many of the enjoyable entertainment and educational aspects of contemporary life.
Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives such
as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse.

4.2 Basic consumer rights:

Right to Safety

The assertion of this right is aimed at the defense of consumers against injuries caused by products other than
automobile vehicles, and implies that products should cause no harm to their users if such use is executed as
prescribed. The Consumer Product Safety Commission (CPSC) has jurisdiction over thousands of commercial
products, and powers that allow it to establish performance standards, require product testing and warning
labels, demand immediate notification of defective products, and, when necessary, force product recall.

Right to Be Informed

This right states that businesses should always provide consumers with enough appropriate information to
make intelligent and informed product choices. Product information provided by a business should always be
complete and truthful. This right aims to achieve protection against misleading information in the areas of
financing, advertising, labelling, and packaging. Right to Choose

The right to free choice among product offerings states that consumers should have a variety of options
provided by different companies from which to choose. The federal government has taken many steps to
ensure the availability of a healthy environment open to competition through legislation, including limits on
concept ownership through Patent Law, prevention of monopolistic business practices through Anti-Trust
Legislation, and the outlaw of price cutting and gouging.

Right to Be Heard

This right asserts the ability of consumers to voice complaints and concerns about a product in order to have
the issue handled efficiently and responsively. While no federal agency is tasked with the specific duty of
providing a forum for this interaction between consumer and producer, certain outlets exist to aid consumers
if difficulty occurs in communication with an aggrieving party. State and federal attorney generals are
equipped to aid their constituents in dealing with parties who have provided a product or service in a manner
unsatisfactory to the consumer in violation of an applicable law.

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4.4 Psychology of advertising:

The vast majority of marketers are not psychologists. But many successful marketers regularly employ
psychology in appealing to consumers. Smart, skillful, honest marketers use psychology legally, ethically, and
respectfully to attract and engage consumers, and compel them to buy. Here are a few tips and tricks for using
psychology to your own marketing campaign's advantage:

1. Run emotional ideas:

Studies have shown emotional and psychological appeals resonate more with consumer’s than feature and
function appeals. In advertising copy, benefits—which often have a psychological component—generally
outsell features. Demonstrating how that new computer will improve a potential customer’s life tends to
have more influence rather than explaining how it works.

Salespeople have long understood the power of emotional appeals. In the 18th century, when the contents of
the Anchor Brewery were being auctioned off, the auctioneer said: "We are not here to sell boilers and vats,
but the potentiality of growing rich beyond the dreams of avarice."

2. Highlight your flaws:

It’s no secret that consumers tend to doubt marketing claims—for good reasons. Many simply aren’t credible.
One way to raise credibility is to point out your product’s shortcomings.

Among the most famous examples was an ad for Volkswagen, which contained a one-word headline:
"Lemon." Opening body copy below a VW photo read: "This Volkswagen missed the boat. The chrome strip
on the glove compartment is blemished and must be replaced. Chances are you wouldn’t have noticed it;
Inspector Kurt Kroner did." The ad went on to discuss a "preoccupation with detail." The Lemon ad became
a textbook example of how to optimize credibility.

3. Reposition your competition:

In Positioning: The Battle for Your Mind, Al Ries and Jack Trout delve into the limited slots consumers have
in their brain for products and services, and the importance of positioning one’s business in the ideal slot.
They also write about repositioning—changing the position a business occupies in consumer’s’ minds. A
prominent example of repositioning the competition is when the Jif brand launched the "Choosy moms choose
Jif" campaign, competitors were suddenly repositioned as products for mothers who didn’t give a damn about
the food their kids consumed. What mother didn’t want to think of herself as a choosy mom?
4. promote exclusivity

Near the top of Maslow’s hierarchy of needs pyramid sits self-esteem. People want to feel important; like
they’re part of an exclusive group.
That’s why advertising copy sometimes says: "We’re not for everyone."
The U.S. Marines ran a very successful campaign for years with the tagline: "The Few. The Proud." Perhaps
the most famous modern example of exclusivity in advertising is the American Express tagline: "Membership

22 | P a g e
has its privileges." But to make an exclusivity appeal work in the long run, marketers must mean what they
say. Empty claims tend to be counterproductive.

5. Introduce fear, uncertainty and doubt:

Fear, uncertainty, and doubt, or FUD, is often used legitimately by businesses and organizations to make
consumers stop, think, and change their behavior. FUD is so powerful that it is capable of nuking the
competition.

In at least one case it did just that. When Lyndon Johnson ran against Barry Goldwater in 1964, he wanted to
stoke public fear that a President Goldwater would raise the risk of nuclear war. The "Daisy" ad, which ran
only once, showed a little girl, followed by a nuclear explosion with a voiceover of LBJ ominously stating,
"These are the stakes. To make a world in which all of God's children can live, or to go into the dark." Johnson
carried 44 states, and took 61% of the vote in a landslide win.

4.5 Different types of decision-making

All consumer-buying decisions are not alike and amount of effort put into the decision-making process
differs. When the decision-making process is almost automatic, snap judgment can be made with little
information search. This kind of routinely made buying decision involves little risk and low involvement.
Other times the decision-making process requires a lot of time and information search. The products that are
bought rarely involve high risk and extensive problem solving. Figure bellow shows four types of decision
making based on the degree of consumer involvement.

High involvement Low involvement

Significant different between

brands Complex buying behavior Variety-seeking buying behavior

Few different between brands

Dissonance-reducing buying Habitual buying behavior
behavior

Complex buying behavior can be initiated by a motive that is central to an individual’s self-concept. The
products that are bought seldom like a house or a car require considerable amount of consideration before the
purchase decision. The consumer is highly involved because the product is expensive, risky and reflects the

23 | P a g e
consumer itself. Many brands can be evaluated separately to see which brand responds best to the set of
desired characteristics.

During dissonance-reducing buying behavior consumers are highly involved, because the product can be
expensive, self-expressive and bought infrequently. However, consumers see little or no difference among
the brands. It is a straightforward and simple activity to choose a product among alternatives even if the
consumer may shop around.

Habitual decision-making choices are usually made routinely with little or no conscious effort. This is almost
opposite to extended decision-making where information is searched. Many decisions are made so routinely
that the consumer does not even realize them before seeing products in the shopping cart. It is almost like
consumer works automatically without conscious control. This kind of activity can be seen dangerous or
stupid, but at the same time efficient. The consumer can minimize the time used selecting products and energy
spends on decisions. This habit becomes a problem for marketers when they want to change the consumers’
old habits by introducing a new product. The products that are purchased frequently, like coffee in this case,
can be categorized to the habitual decision-making mode. Selecting a coffee brand does not need high
consideration or information search; it can be just picked up from the shelf and bought. The involvement
level is low in this case and consumers are likely to stay with one brand for a long time.

The last type of decision-making is variety seeking buying behavior. As the name already reveals, consumers
are interested to change the brand for the sake of variety rather than dissatisfaction. Consumers can make
buying decisions without evaluation and evaluate the brand during consumption. However, next time the
consumer might pick up a different brand simply to try another brand. These kinds of decisions are usually
made with the products that are bought everyday like cookies or coffee. Marketers can encourage consumers
to variety seeking by offering low prices, free samples, or special deals.

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Phase 5: Overview of Unilever Bangladesh Limited

5.0 Unilever Bangladesh limited

5.1 The history

Unilever Bangladesh Ltd. is one of the world’s most successful fast moving consumer goods manufacturing
companies with local manufacturing facilities, reporting to regional business groups for innovation and
business results.

Lever Brothers Bangladesh Ltd. as a subsidiary of Unilever is leading the home care, personal care and food
product market of Bangladesh. On 25th February 1964, the eastern plant of Lever Brothers Pakistan Ltd. was
inaugurated at Kalurghat, Chittagong with a soap production capacity of approximately 485 metric tons. It
was a private limited company with 55% share held by Unilever and the rest by the Government of Pakistan.
After independence, the eastern plant was declared abandoned. But on 5th July 1973 it was registered under
the name of Lever Brothers Bangladesh Ltd. as a joint venture company of Unilever PLC and the Govt. of
Bangladesh with a share arrangement of 60.75% to Unilever and 39.25% to the Bangladesh Govt.

5.2 Unilever today

Unilever brands are trusted everywhere and, by listening to the people who buy them, they've grown into one
of the world's most successful consumer goods companies. In fact, 150 million times a day, someone
somewhere chooses a Unilever product. UBL is the market leader in 7 of the 8 categories it operates in, with
20 brands spanning across Home Care, Personal Care and Foods.

UBL have a portfolio of brands that are popular across the globe - as well as regional products and local
varieties of famous-name goods. This diversity comes from two of their key strengths:

1.Strong roots in local markets and first-hand knowledge of the local culture.
2.World class business expertise applied internationally to serve consumers everywhere.

Unilever Bangladesh Limited at a glance

Type of business: Fast Moving Consumer Goods Company with local manufacturing facilities, reporting to
regional business groups for innovation and business results.

Operations: Home and Personal Care, Foods, Water Purifier.

Constitution: Unilever - 60.75% shares, Government of Bangladesh - 39.25%

Product Categories: Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care,
Personal Grooming, Tea based Beverages.

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Brands: Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Taaza, Pepsodent, Clear, Vim,
Surf Excel, Rexona, Dove, Vaseline, TRESemme, Knorr.

Manufacturing Facilities: The Company has a Soap Manufacturing factory and a Personal Products Factory
located in Chittagong. Besides these, there is a tea packaging operation in Chittagong and three manufacturing
units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh.

Employees: Unilever Operations in Bangladesh provide employment to over 10,000 people directly and
through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and
they have equal number of Bangladeshis working abroad in other Unilever companies as they expatriate.

The employees are recognized there by staying connected and growing while the company is growing at the
same time.

5.3 Mission

Unilever's mission is to add Vitality to life; to meet every day needs for nutrition; hygiene and personal care
with brands that help people feel good, look good and get more out of life.

Unilever recognizes growing consumer needs for-

1. A healthy lifestyle,
2. More variety, quality, taste and enjoyment,
3. Time, as an increasingly precious commodity,
4. Helping people to feel good, look good and get more out of life will enable us to meet these
needs and expand our business.

5.4 Corporate vision

To make cleanliness a commonplace; to lessen work for women; to foster health and contribute to personal
attractiveness, in order that life may be more enjoyable and rewarding for the people who use the products.

• Sustainable Living: One of the key aspects of UBL’s vision is to make sustainable living a
commonplace. They are developing new business practices that grow both the company and the
communities. They are meeting people’s ever-increasing desire for more sustainable products and
creating a brighter future for everyone. The Unilever Sustainable Living Plan will help the company
to double the size of the business while reducing the environmental footprint and increasing the
positive social impact. And the company is working in partnerships where they can help change
things on a global scale: deforestation and climate change; water, sanitation and hygiene; and
sustainable agriculture and smallholder farmers.

5.5Unilever brands and product offerings:

Unilever has a portfolio of about 400 brands globally. Worldwide, the products can be categorized into four
sectors:

1. Food and Drink,

2. Home Care,
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 3. Personal Care,
4. Water Purifier.

However, many of these are local that can only be found in certain countries, e.g. Fair & Lovely. In
Bangladesh, the number of UBL’s existing brands is 22, which are categorized in different
sections.

Category Product

• Wheel Laundry Soap

Fabric Wash • Wheel Washing Powder
• Wheel Power White
• Surf Excel

• Vim Powder
Household Care • Vim Bar
• Vim Liquid

• International Lux
• Lifebuoy Total
• Dove bar
Personal Care
• Lifebuoy Liquid soap

Water Purifier • Pureit

• Fair & Lovely Multivitamins

• Fair & Lovely Body Fairness Milk
• Fair & Lovely Ayurvedic
• Fair & Lovely Menz Active
• Pond’s Age Miracle range
• Pond’s Daily Face Wash range
• Pond’s Cold Cream
• Pond’s Perfect Result Cream
• Ponds Dream Flower Talc
Skin Care • Pond’s flawless white range
• Pond’s White Beauty Range
• Pond’s Body Lotion
• Lakme skin care products
• Dove skin care products
• Vaseline skin care products

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 • Sun Silk Shampoo
• All Clear Shampoo
• Lifebuoy Shampoo
Hair Care
• Dove shampoo
• All Clear Hair Oil
• TRESemme Shampoo

Oral Care • Close-up Toothpaste

• Pepsodent Toothpaste
• Pepsodent Toothpowder
• Pepsodent Tooth brush

Deodorant • Rexona
• Axe

• Lipton Taaza Danadar and

Foods Strong,
• Knorr Noodles and Knorr Soup.

5.6 In Bangladesh, Unilever’s strengths come from:

• Its presence in several product categories

• Various brands
• Numerous variants and pack size
• Wide ranging options to fulfill diverse aspirations and taste
• Tailoring products to satisfy consumers with different needs and means
• Covering the country by hundreds of thousands of outlets
• This wide range of products and brands offered by UBL shows the realization of the simple
universal fact – “different individuals have different needs”.
5.7. Close Up Toothpaste
Close-up is a cinnamon flavored brand of toothpaste which is marketed by Unilever. It is one of the top
brands in terms of sale in Bangladesh.
Launched in 1967, it is the first gel toothpaste in the world In 2003, Unilever sold the exclusive licensing
rights of Close-Up in United States and Canada to . This sale did not affect the brand in other countries,
like India where Unilever and its subsidiaries continue marketing Close-Up. The brand is positioned to
target the youth segment with a lifestyle appeal in its advertising campaigns. According to an August 2016
report in The Economic Times, Close Up was in the second spot in market share of toothpaste in India and
so as in Bangladesh during January-June 2015 as well as January-June 2016.

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6. Data Presentation and analysis

1. (Table 6.1) Respondents answer on “did you seen/heard the advert of close up
toothpaste?

Categories Responses Percentage

Yes 100 100
No 0 0
Total 100 100%

Source: Online survey 2017.

From table above, 100% of the respondents’ answers that they have seen or heard the advertisement of Close
Up toothpaste.

Seen/Heard advertisement of Close Up

No
0%

Yes Other
100% 0%

Yes No

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 2. (Table 6.2) Respondents’ answers on Which medium of Advertisement affects your
consumer preference for Close Up mostly?”

Category Distribution Percentage

T. V 75 75
Radio 2 2
Newspaper 6 6
Billboard 15 15
Others 2 2
Total 100 100%

Source: Online survey, 2017

From the above responses, 75% of the respondents saw Close-up advert through television, 2% heard it on
radio, 6% read it on newspapers, 15% spotted it on billboards, while 2% through other media.

Medium

2%
15%
6%

15%

77%

TV Radio Newspaper Billboard Others

3. (Table 6.3) Respondents’ answers on whether advertising has improved their

consumption preference for close up?

CATEGORY DISTRIBUTION PERCENTAGE

Yes 85 85
No 15 15
Total 100 100%

Source: Online survey, 2017

Based on the information above, 85 of the respondents representing 85% were of the opinion that
advertisement has improved their preference for Close up consumption while 15 (15%) of the respondents
hold contrary view.

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 Improvement of consumer preference

15%

85% 15%

Yes No

4. (Table 6.4) Respondents’ answers as to whether they believe that advertising has
helped to differentiate close up toothpaste from other toothpaste in the market.

CATEGORY DISTRIBUTION PERCENTAGE

Yes 75 75
No 25 25
Total 100 100%
Source: Online survey, 2017

From the above data, 75 (75%) of the respondents believed that advertising of Close Up has differentiated it
from other brands of toothpaste in the market while 25 representing 25% responded on the contrary.

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 Advertisement differentiated Close Up from
others

No
25%

Yes Other
75% 25%

Yes No

5. (Table 6.5) Responses on whether the continued close up advert facilitates their
continued patronage of the product.

CATEGORY DISTRIBUTION PERCENTAGE

Yes 60 60
No 40 40
Total 100 100%

Source: Online survey, 2017

From the above data, 60 (60%) of the respondents were of the opinion that the continued advertisement of
Close Up facilitates their patronage of the product, while 40 (40%) declined.

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 Advertisment patronage the consumption of
product

40%

60% 40%

Yes No

6. (Table 6.6) Respondents’ answers on whether the producer of close up has been able
to overcome its competitors through advertising.

CATEGORY DISTRIBUTION PERCENTAGE

Yes 65 65
No 25 25
No idea 10 10
Total 100 100
Source: Online survey, 2017

From the above information, 65% of the respondents were of the view that Close Up has been able to overcome
its competitors through advert, 25% of the respondents maintained that the
company has not overcome competitors through advertising, while 10% of the respondents had no idea.

Overcame competetors by advertisement

2%

27%

71%

Yes No No idea

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 7. (Table 6.7) Respondents’ answers on their opinion that the increase in sales enjoyed
by close up was as a result of advertising.

CATEGORY DISTRIBUTION PERCENTAGE

Yes 92 92
No 8 8
Tota 100 100%
Source: Online survey, 2017

The table above reveals that 92% of the respondents were of the opinion that increase in sales enjoyed by
Close Up was as a result of advertising while 8% had a different view.

Increase in sales for advertisement

8%

92%

Yes No

8. (Table 6.8) Respondents’ answer on “Does the advertisement of Close Up make the
purchase easier for you?

CATEGORY DISTRIBUTION PERCENTAGE

Yes 75 75
No 25 25
Total 100 100%
Source: Online survey, 2017

From the above information 75% of the respondents believes that advertisement makes the purchase easier
for them and 25% are not agree with that.

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 Made purchase easier

25%

75%

Yes No

9. (Table 6.9) Respondents’ answers on “Do you purchase any new product only for its
advertisement?”

VARIABLE DISTRIBUTION PERCENTAGE

Yes 35 35
No 65 65
Total 100 100
Source: Online survey, 2017
From the above information 40% of the respondents thinks that they purchase any new product only for its
advertisement while rest of the percentage don’t think so.

Purchase New product for advertisement

35%

65%

Yes No

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 10.(Table 6.10) Responses on “Has advertising improved your consumption preference
for Close Up Toothpaste?”

VARIABLE DISTRIBUTION PERCENTAGE

Yes 60 60
No 40 40
Total 100 100%
Source: Online survey, 2017
From the above information, 60(60%) of the respondents believed that advertisement improved their
consumption preference and 40(40%) answers as No.

Improvement of consumption preference

40%

60%

Yes No

11.(Table 6.11) Responses on Does advertisement change your demand for a product?

VARIABLE DISTRIBUTION PERCENTAGE

Yes 67 67
No 22 22
Indifferent 11 11
Total 100 100%
Source: Online survey, 2017
From the above data, 67% of the respondents were of the opinion that advertising influences their demand for
a product, 22% were of the opinion that advertising does not affect their demand while 11% were indifferent
on the matter.

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 Changing of demand for adcertisement

22%
11%

11%

67%

Yes No Indifferent

12.(Table 6.12) Responses on “Do you feel good when you see the advertisement of a
product that you are using?”

VARIABLE DISTRIBUTION PERCENTAGE

Yes 90 90
No 5 5
Indifferent 5 5
Total 100 100%
Source: Online survey, 2017

From the information above, 90 (90%) of the respondents feels good when they see the advertisement of their
product, 5 (5%) of the responded answers as negative and 5(5%) responses as indifferent.

Want product seen

5% 2%

93%

Yes No Indifferent

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 13.(Table 6.13) Responses on Did you purchase any product for advertisement though
you don’t need it?

VARIABLE DISTRIBUTION PERCENTAGE

Yes 5 5
No 46 46
Indifferent 49 49
Total 100 100%
Source: Online survey, 2017
From the information above, 46 (46%) of the respondents respond that they used to buy a product only for
advertisement though they don’t need it, 49 (49%) disagree with the notion and 49(49%) were indifference
about the question.

Prchasing new product without need

5%

49%
46%

Yes No Indifferent

14.(Table 6.14) Responses on Do your family members influence you to purchase Close
up toothpaste?

VARIABLE DISTRIBUTION PERCENTAGE

Yes 83 83
No 12 12
Indifferent 5 5
Total 100 100%
Source: Field survey, 2017
From the information above, 83(83%) of the consumers get influenced by the family members and 12 percent
answers as No while 5(5%) were indifference.

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 Influence of family members
5%

12%

83%

Yes No Indifferent

15.(Table 6.15) Responses on Do you think that the best product displays the best
advertisement?

VARIABLE DISTRIBUTION PERCENTAGE

Yes 90 90
No 7 7
Indifferent 3 3
Total 100 100%
Source: Online survey, 2017

From the information above, 90% of the respondents believes that the best product shows the best
advertisement and 7(7%) were not agreed with that.

Best Product Displays Best Advertisement

7% 1%

92%

Yes No Indifferent

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Test of hypotheses
Predominantly, before testing these hypotheses, it’s very important to note that:

a) The greater the value of the calculated chi-square, the lower the chance of its occurrence.
b) The probability of chi-square of any given figure depends upon the number of degrees of
freedom.

In consideration of the above, the chi-square computation method is thus shown below.

Expected frequency (E) = RXC

G
Where:
R = Total on each row
C = Total on each column
G = Grand total

In other words,
Expected value = Row total x Column total

Grand total
While, Xc2 = ∑ (0 – E)2

Degree of freedom (d.f) = (m-1) (n-1) Where,

m = number of columns n = number
of rows

Decision Rule
If Xc2 > Xt2, reject Ho and accept H1 If
Xc2 < Xt2, accept Ho and reject H1
Where,
Xc2 => Chi-square calculated

Xt2 => Critical value or Chi-square tabulated

TEST OF HYPOTHESIS ONE

HO1: Advertising has not improved consumer preference for Close Up to other brands.
 H1: Advertisement has improved consumer preference for Close Up to other brands.

Table 8.16: Observed frequency table

VARIABLE DISTRIBUTION PERCENTAGE

Yes 85 85

No 15 15

Total 75 100
Source: Extracted from table 6.3

Table 8.17: Contingency table

Variable Oi Ei Oi – Ei (Oi – Ei)2 (Oi – Ei)2

Ei
Yes 85 50 35 1225 24.5

No 15 50 -35 1225 24.5

Total = 2 100 49

Xc2 = 49, while Critical value = 3.841

Decision:
From the chi-square computed above, it is observed that the computed value of X2 is greater than the
critical or table value at d.f = 1, thus, we accept the alternative hypothesis, which says that
advertisement has improved consumer preference for Close Up Toothpaste.

TEST OF HYPOTHESIS TWO

HO2: There has not been significant increase in sales of Close Up as a result of advertising.

H1: There has been significant increase in sales of Close Up as a result of advertising.

Table 8.18 Observed Frequency

VARIABLE DISTRIBUTION PERCENTAGE

Yes 75 75

No 25 25

Total 100 100

Source: Extracted from, 6.4
Table 8.19: Contingency table
Variable Oi Ei Oi – Ei (Oi – Ei)2 (Oi – Ei)2

Ei
Yes 75 50 25 625 12.5

No 25 50 -25 625 12.5

Total = 2 75 25

Xt2 = 3.841

Decision
Based on the computed value of Xc2 = 25 and the table value of 3.841 at d.f = 1, we reject the null
hypothesis and accept the alternative hypothesis and therefore conclude that significant increase in
sales of Close Up was as a result of advertising.

TEST OF HYPOTHESIS 3
Ho3: Close Up has not been able to overcome its competitors through advertising.

H1: Close Up has been able to overcome its competitors as a result of advertising.

Table 8.20: Observed frequency

VARIABLE DISTRIBUTION PERCENTAGE

Yes 92 92

No 8 8

Total 100 100

Source: Extracted from Table 6.7

Table 8.21: Contingency table

Variable Oi Ei Oi – Ei (Oi – Ei)2 (Oi – Ei)2

Ei
Yes 67 33.33 33.67 1133.66 34.01

No 22 33.33 -11.33 128.36 3.85

No idea 11 33.33 -22.33 498.62 14.96

Total = 3 100 52.82

Decision
At d.f = 2, the tabulated chi-square = 5.991 with a computed value of 52.82. Given the decision rule
we reject the null hypothesis and accept the alternative, and conclude that De-united has been able to
overcome its competitors through advertising.
Phase 7: Findings

The following are some of the recommendations from this study.

1. Advertising should be seen as an investment into the future of products and not to be
evaluated by its immediate returns.

2. Firms should not stop their advertisement on their recession time or having no positive
response for a period of time rather they should carry on their advertisement as per
their previous plan, it will work in a long run.

3. Continuing advertisement is not negotiable, firms should employ expert teams in this
filed to prepare long term and perfect planning for advertisement.

4. It’s also advisable to identify a target market before advertising, so as to know the
particular medium that will be more useful and cost effective in reaching them. For
instance, advertising an expensive car on a billboard will not make much impact as
80% of the target market read newspapers and view cable network.
5. Before advertising, some environmental planning is necessary for the firms, such as
but not limited to:
• Physical attributes of various media options
• Strengths and weaknesses of various media options
• Audience reach capability and
• Cost effectiveness.

6. Consumer analysis and feedback is important to know how actually the planning are
working in the field
7. As the perception of the new generation are changing advertisement should be created
with sound information, graphical richness and good sound quality.
8. Recommending to form a new organization or committee who will observe how the
advertisement of different firms are reaching to the direct consumers, how they feel
and react to the advertisement, the organization or monitoring body should be in
direct communication with the general people to the top levels of the firms.

Above all, the researcher recommends this topic for further research
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