The Effect of Advertisement on Consumer Brand Preference

(A case study of Cadbury Nigeria Plc)

By

Elijah Chukwuka Obuezzar

Matric no: p/nd/17/3650069

Being a research project submitted to the Department of Marketing

(SMBS)

Faculty of School of Management and Business Studies

Yaba College of Technology

Lagos

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 Approval Page

This research work has been carefully read and approved as meeting the requirements of the

Department of Marketing, Yaba College of Technology Polytechnic Lagos.

_____________________________________ _____________________________________
Mr. Kelechi Ezebuiro Date
Project Supervisor

_____________________________________ _____________________________________
Mr. Oduwole W. K Date
Head of Department

_____________________________________ _____________________________________
Mr. Busari O. S Date
Department Programme Coordinator

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 Dedication

This research work is dedicated to God Almighty and to the school management of Yaba College

of Technology

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 Acknowledgments

All praises be to Almighty God who gave me the gift of life and good health to enroll for this

programme. I am indebted to individuals that directly and indirectly contributed to the

accomplishment of this research work.

My special appreciation goes to my HOD Mr. Oduwole W. K, and my Project Supervisor Mr.

Kelechi Ezebuiro which in spite of his engagements was able to find time to supervise and offer

suggestions to enable me learn and accomplish this research work. His constructive critiques and

unavoidable advice have yielded me a good result in the course of making this study a reality. He

gave me enough of his valuable time to prepare this research report. He guided me with all the

details in every step of the study with immense patience. As a novice, I was not aware of many

aspects of undertaking a research and preparing a research report. He made me learn and

understand everything I needed. My sincere gratitude goes to my siblings and well-wishers for

their guidance and support.

Finally, I appreciate all that you have done and to say may God Almighty Bless You All.

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 Abstract

The proliferation of assorted brands of food drinks in Nigeria has led to cut-throat competition

for increased market share among the operators in the food drink industry. When competition is

keen and consumers are faced with brand choice in the market, it becomes imperative for

manufacturers to understand the major factors that can attract the attention of buyers to his own

brand. These then form the basis for marketing planning and action. A study by Ayanwale, Alimi,

& Ayanbimipe (2005), based on a survey of 315 randomly selected consumers of food and

drinks in Lagos, Ibadan and Ile-Ife, cities in Southwestern Nigeria, examined the role played by

advertising in influencing consumers preference for Bournvita, which is one of the leading

brands in the food and beverage industry in Nigeria. Results revealed that both male and female

and different age groups were equally influenced by advertising in their preference for the brand.

38.73% of the consumers showed preference for Bournvita out of the various brands of the food

and drink studied. The major reasons advanced for the preference are its captivating advertising

(42.62%) and rich quality (40.16%). TV advertising was most preferred by 71.43% of the

respondents of all the media used in advertising Bournvita. The need for high preference to

advertising is therefore highlighted for companies that want to not only retain their market but

take positive steps to increase their market share.

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 Table of Contents

Serial Number Description Page Number

1. Title page 1

2. Approval page 2

3. Dedication 3

4. Acknowledgement 4

5. Abstract 5

6. Table of Contents 6-8

7. Chapter One: General Introduction 9-17

1.1 Background of the Study 9-13

1.2 Statement of the Problem 13-14

1.3 Objectives of the Study 14

1.4 Research Question 14

1.5 Research Hypotheses 14-15

1.6 Significance of the Study 15

1.7 Scope of the Study 15

1.8 Definition of Terms 15-16

References 17

8. Chapter Two: Literature Review 18-37

2.1 Introduction 18-22

2.2 Conceptual Framework 22-30

2.2.1 Direct Advertising 22

2.2.2 Indirect Advertising 23

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 2.2.3 Competitive Advertising 23

2.2.4 Informative Advertising 23

2.2.5 Mass Advertising 23

2.2.6 Role of Advertising 23-24

2.2.7 Advertising Industry 24-26

2.2.8 Advertising Media 26-30

2.2.8.1 Print Advertising. 26-27

2.2.8.2 Outdoor Advertising. 27

2.2.8.3 Broadcast Advertising. 27-28

2.2.8.4 Covert Advertising. 28

2.2.8.5 Surrogate Advertising. 28

2.2.8.6 Public Service Advertising. 28-29

2.2.8.7 Celebrity Advertising. 29-30

2.3 Theoretical Framework 30-32

2.3.1 Rational Actors Theory 30-31

2.3.2 New Institutional Economics 31

2.3.3 Process Theory 31

2.3.4 The Bullwhip Effect 32

2.4 Empirical Framework 32-35

2.4.1 Advertising as Strong Persuasive Force 32-33

2.4.2 Advertising as a Tool of Competition 33

2.4.3 Effects of Advertisement on Consumer Behaviour 34-35

2.5 Historical Background of the Company 35-36

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 References 36-37

9. Chapter Three: Findings / Summary, Conclusion and 38-47

Recommendation

3.1 Summary 39-41

3.2 Findings and Conclusion 41-42

3.3 Recommendation 42

3.4 Contribution to Knowledge 42-43

3.5 Suggestions for Further Studies 43-44

References 45

10. Bibliography 46-50

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 Chapter One

General Introduction

1.1 Background of the Study

The motive of being in business is to produce goods and services for sale and profit. In

order to remain in business, “an organization must generate enough sales from its products to

cover operating costs and post reasonable profits” (Ayanwale, Alimi and Ayanbimpe, 2005).

However, “taking decision on sales is the most difficult to predict, estimate, or determine with

accuracy, potential customers’ demands as they are uncontrolled factors external to an

organization” (Ayanwale, et al., 2005,). Considering the importance of sales on a business’s

survival and the connection between it and customers, it is therefore, expedient for organizations

to “engage in programmes that can influence the customer’s decision to purchase its products.

This is where advertising comes into play in an organization that is into manufacturing of

products (Ayanwale, et al., 2005).

The term advertising originates from the Latin word advertere that means to turn the

attention. Advertising is a planned phenomenon. It has become an essential element of the

corporate world and hence companies allot a considerable amount of revenues as their

advertising budget. Experts in the field make use of their knowledge of advertising techniques to

promote a positive impression of the company’s products to consumers, thus attempting to

change their behavior as a result. Most of the goods in the market that are been advertised are

cooperative goods that wants to gain large share of the market. Hence, they use loaded language,

which deliberately confuses rather than clarifies the experience of the goods to the consumers.

Advertising is an act of calling attention to one’s product, service need etc. especially by paid

attention in newspaper and magazines over radio or television.

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 The language of advertising differs from our normal speech because of the difference in

objectives; its syntactical structure has a psychological effect on consumers as it plays on their

mind, creating an artificial want and making use of their ignorance and emotions. This is

achieved through the presentation of persuasive images suggesting social status, prestige,

ambition, and love. Faced with market competition from other brands of products, it is easy to

see the value and impact of advertising on consumers.

Consumers have limited financial resources and consequently spend their available

money on commodities they value. Many advertisers and agencies believe that advertising can

create “magic in the marketplace,” and many businesses consider advertisement as an effective

media because it can attract consumers’ attention.

The effect of advertisement on consumer brand preference gives us an insight on how to

relate with our consumers in other to satisfy their wants and needs. The effect of advertisement

aids to promote or create awareness of product that a consumer can identify before and after

purchase.

There is a strong relation between advertisement and consumer behavior which has been

a topic of many studies and debates over the years. Questions such as, "How does advertisement

affect consumer behavior,” “What about the advertisement matters most in affecting consumer

behavior,” or the simplest of them all, “How important is advertisement?” have been volleyed

across marketer to marketer in attempt to reach the best way to get to a consumer’s head. And

what exactly is it that they (the marketers) want out of the consumers? Well, to buy their

products of course.

This paper is not only a research upon consumer behavior but also on the role

advertisement content plays in shaping it. To narrow things down, in order to give a better and

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more familiar demonstration, it focuses on advertisements and determines exactly what part of

those advertisements have what kind of effect on the consumers’ brand preference. There are a

number of factors present in an advert that influence consumers’ perception about a brand and

eventually change their brand preference. This research, however, focuses on five major factors

that are: interest factor, psychological relevance, economic relevance, logos and mascots and

celebrity endorsement and their impact on changing consumers’ choice for products. Advertising

is a form of communication proposed to persuade an audience (viewers, readers or listeners) to

buy or take some action upon products, ideas, or services. It usually includes the name of a

product or service and how that product or service could benefit the consumer, to persuade a

target market to purchase or to consume that particular brand. Commercial advertisers often

intend to generate increased consumption of their products or services through branding, which

involves the repetition of an image or product name in an effort to associate related qualities with

the brand in the minds of consumers.

Historically, out-of-home advertising and billboards are the oldest forms of advertising.

However, with the passage of time, as education became more widespread and people learned to

read and write, marketers used print ads to reach out to audiences at a low cost. Originally used

in the creation of shop signs, advertisement took a revolutionary at the onset of the 21st century,

an age bursting with new technologies. With mediums such as the radio, television and internet

to be projected from, the products were no longer differentiated only by their attributes but also

by the benefits that they would give to the consumers. These benefits were publicized using

advertisements.

Advertisements used in today’s world are creative and innovative. Marketers have started

thinking out of the box and are coming up with new ideas to create a better perception in the

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minds of the consumers and impress them to buy their products. Nowadays there is a very

special emphasis on the content of the advertisements. Advertising is content and content is

advertising (Masnick, 2008). There “is no such thing as just ‘advertising’ anymore” (Masnick,

2008). It needs to have content that will attract the potential consumers towards it, make them

contemplate upon it, change their opinions and eventually make them put forth a purchase intent.

The only way to capture the consumer’s attention like this is to make the advertisement

entertaining, interesting and relevant.

The second part of the research focuses on consumers’ buying behavior and their brand

preferences. Consumer behavior is “the study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services, experiences, or ideas

to satisfy needs and the impacts that these processes have on the consumer and society”

(Sarangapni, 2009). Consumer behavior is the study of when, why, how and where people do or

do not buy a product. It deals with psychology, sociology and economics and attempts to

understand the buyer decision making process both individually and in groups. Consumer brand

preference is the measure of brand loyalty in which a consumer will choose a particular brand in

presence of competing brands, but will accept substitutes if that brand is not available.

1.2 Statement of the Problem

The research has been undertaken with the major aim to understand the effect of

advertisement on consumer brand preference. Due to large competition amongst organizations,

there is a rising need to spend on factors that benefit the profitability of the organization.

However, without saying much we can see that organizations are pumping billions of naira into

advertising. Critics and a lot of marketers are therefore having doubts if this spending on

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advertisement has an effect on consumer brand preference especially where all the major

companies are well known and have established market share. Therefore, answering this problem

also further helps us identify the impact of some advertising methods like the use of celebrities in

advertising on consumer brand preference. Lastly, the research determines if advertisement can

alter already perceived quality of the product which hence affect consumer brand loyalty.

1.3 Objectives of the Study

The major objective of the study is to identify the effect of advertisement on consumer brand

preference. The objectives in numerical listing are.

i. To seek out the effects of advertisement on consumer brand preference.

ii. To identify the impact of celebrities in adverts on consumer brand preference

iii. To identify the influence of advertisement on established or perceived quality this can

change brand preference.

1.4 Research Question

The following questions were developed to guide the study.

i. Does advertisement have an effect on consumer brand preference?

ii. Does the use of celebrities have an impact on consumer brand preference and buying

decisions?

iii. Can advertisement alter perceived / established quality of product among consumers?

1.5 Research Hypotheses

The following hypotheses will be tested in this research:

1. H¹: There is a relationship between advertisement and consumer buying behaviour.

2. H2: There is a correlation between advertising and enhanced sales and profit level of the

company.

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1.6 Significance of the Study
Though people often focus on the negative side when they discuss the effects of

advertising, it is important to note that advertising does have its positive side. Advertising is any

paid form of non-personal presentation and promotion of ideas, goods or services by an

identified sponsor (Dunn et al, 1978). This research work is significant to managers of

organizations, governments and students of higher learning or researchers. It is significant to

managers of organizations i.e. management at strategic level because it will assist them to verify

the economic implication involved with advertisement and compare the cost-plus benefit on the

enhanced sales and profit level. This research work is also significant to government because the

economic importance of advertisement is it contribution to the growth or expansion of most

businesses. As such, it contributes to the economic growth and stability to the Nigerian economy

due to tax accrued to the government as revenue generated. Finally, it will serve as a source of

literature to students of higher learning or researchers that want to write or improve on it.

Importance of the study with respect to the world

Like mentioned earlier, advertising content has a significant effect on consumer behavior.

Advertising content includes components varying from the logo or jingle to the perceived

credibility of the corporation or celebrity endorser. There are many other variables that fall in

between, effecting consumer behavior aspects such as consumer judgment, perceptual mapping,

product evaluation and purchase intent.

Although technology has helped marketers a lot in making the most innovative of advert

it brought with it some external problems. This gives marketers even more reason to closely

determine the perfect blend of advertising content to get the attention of their appropriate

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consumers as failure to do so could result in the loss of potential consumers and huge amounts of

money spent in advertisements that proved unsuccessful.

The managerial concerns for such a research are that it will help marketers determine

what part of advertisement content appeals most to their target audience. This is extremely

important in addressing questions such as: Should we use humor or curiosity in an advertisement

aimed at teenagers? What type of celebrity should we have endorsing our product? Would a

mascot be effective in getting to our consumers or a catchy jingle? How frequently should we

have our advert running to assure maximum viewership?

The academic concerns of such a research are that it may open room for further refined

researches for the purpose of determining how much advert content matters and what effect will

have it on consumer behavior. It will prove to be helpful in the field of advertising and as well as

in the field of consumer behavior.

1.7 Scope of the Study

The scope of study for this research covers the effect of advertisement on consumer

preference by Cadbury Company Plc in Nigeria.

1.8 Definition of Terms

Dunn et al. (1978) viewed advertising from its functional perspectives, hence they define

it as a paid, non-personal communication through various media by business firms, non-profit

organization, and individuals who are in some way identified in the advertising message and who

hope to inform or persuade members of a particular audience.

Further terms include:

Consumers are people who buy, use, or dispose of an organization’s products to satisfy

their wants and needs.

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Consumer Brand Preference is the measure of brand loyalty in which a consumer will

choose a particular brand in presence of competing brands, but will accept substitutes if

that brand is not available.

Brands are symbols, logos, names by which an organization use to differentiate their

product from other competitors in the marketplace.

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 References
Ayanwale, A.B., Alimi, T. & Ayanbimpe, M.A. (2005). The influence of advertising on

consumer brand preference. Journal of Social Science, 10(1), 9-16.

Dunn, S. W., Barban, A. M. (1978). Advertising: Its role in modern marketing. United States:

Dryden Press.

Masnick, M. (2008). Advertising is content and content is advertising. Tech Dirt.

https://www.techdirt.com/articles/20080318/004136567/advertising-is-content-content-

is-advertising.shtml.

Sarangapani, A. (2009). A textbook on rural consumer behavior in India: A study of FMCGs.

University Science Press.

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 Chapter Two

Literature Review

2.1 Introduction
Advertising, sales promotion and public relations are “mass-communication tools

available to marketers” (Ayanwale, et al., 2005). As suggested by its name, “mass

communication uses the same message for everyone in an audience” (Ayanwale, et al., 2005).

Mass communication tools offer the advantage of personal selling alongside the opportunity to

tailor a message to each prospect, which results in their message reaching many people at a

lower cost per person (Etzel, et al., 1997).

Today, “definitions of advertising abound. We might define it as communication process,

a marketing process, an economic and social process, a public relations process or an information

and persuasion process (Arens, 1996)” (Ayanwale, et al., 2005).

Morden (1991) writes that “advertising is used to establish a basic awareness of the

product or service in the mind of the potential customer and to build up knowledge about it”

(Ayanwale, et al., 2005). Meanwhile, “Kotler (1988) sees advertising as one of the four major

tools companies use to direct persuasive communications to target buyers and public noting that

‘it consists of non-personal forms of communication conducted through paid media under clear

sponsorship’” (Ayanwale, et al., 2005). According to Kotler, “the purpose of advertising is to

enhance potential buyers’ responses to the organization and its offering, emphasizing that ‘it

seeks to do this providing information, by channeling desire, and by supplying reasons for

preferring a particular organization’s offer’” (Ayanwale, et al., 2005). Etzel, et al. (1997)

characterizes advertising as having four features:

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 (i) A verbal and or visual message

(ii) A sponsor who is identified

(iii) Delivery through one or more media

(iv) Payment by the sponsor to the media carrying the message.

To sum up advertising as defined by Etzel et al. (1997): “advertising then consists of all

the activities involved in presenting to an audience a non-personal, sponsor-identified, paid-for

message about a product or organization” (Ayanwale, et al., 2005).

The views of Etzel et al. (1997) “coincide with the simple but all-embracing definitions

of Davies (1998) and Arens (1996). For instance, while Davies states that ‘advertising is any

paid form of non-personal media presentation promoting ideas/concepts, goods or services by an

identified sponsor.’ Arens, expressing almost the same view, describes advertising as ‘the

personal communication of information usually paid for and usually persuasive in nature about

products (goods and services) or ideas by identified sponsors through various media’”

(Ayanwale, et al., 2005).

From these definitions, it “could be concluded that the purpose of advertising is to create

awareness of the advertised product and provide information that will assist the consumer to

make purchase decision, the relevance of advertising as a promotional strategy, therefore,

depends on its ability to influence consumer not only to purchase but to continue to repurchase

and eventually develop-brand loyalty. Consequently, many organizations expend a huge amount

of money on advertising and brand management” (Ayanwale, et al., 2005).

A brand is “a name given by a manufacturer to one (or a number) of its products or

services” Ayanwale, et al., 2005). Brands “are used to differentiate products from their

competitors. They facilitate recognition and where customers have built up favorable attitude

19
towards the product, may speed the individual buyers through the purchase decision process”

(Ayanwale, et al., 2005).

One significant effect of advertising is that “individual purchasers will filter out

unfavourable or unknown brands and the continued purchase of the branded product will

reinforce the brand loyal behaviour. Without brands, consumers couldn’t tell one product from

another and advertising then would be nearly impossible” (Ayanwale, et al., 2005).

Advertising and Consumer Behaviour

An advertiser’s primary mission is to reach prospective customers and influence their

awareness, attitudes and buying behaviour. They spend a lot of money to keep individuals

(markets) interested in their products. To succeed, they need to understand what makes potential

customers behave the way they do. The advertiser’s goal is to get enough relevant market data to

develop accurate profiles of buyers-to-find the common group (and symbols) for

communications this involves the study of consumers behaviour: the mental and emotional

processes and the physical activities of people who purchase and use goods and services to

satisfy particular needs and wants (Arens, 1996).

Consumer behaviour analysis attempts to explain why consumers act in particular ways

under certain circumstances. It 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 consumer behaviour is likely to make and to give preferred trends in product

development, attributes of the alternative communication method etc. consumer behaviour

analysis views the consumer as another variable in the marketing sequence, a variable that

cannot be controlled and that will interpret the product or service not only in terms of the

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physical characteristics, but in the context of this image according to the social and

psychological make-up of that individual consumer (or group of consumers).

Economic theory has sought to establish relationships between selling prices, sales

achieved and consumers’ income, similarly, advertising expenditure is frequently compared with

sales. On other occasions financial accounting principles maybe applied to analyse profit and

losses. Management ratios, net profit before tax, liquidity and solvency ratios can all be

investigated. Under the situations the importance of the consumer’s motivations, perceptions,

attitudes and beliefs are largely ignored. The consumer is assumed to be rational; that is, to react

in the direction that would be suggested by economic theory and financial principles. However, it

is often apparent that consumer behaviours does not fall neatly into these expected patterns. It is

for these reason that consumer behaviour analysis is conducted as yet another tool to assess the

complexities of marketing operations.

The proliferation of assorted brands of food drinks in the country has led to the cutthroat

competition for increased market share being witnessed currently among the operations in the

food drink industry. Today, in Nigeria, there exists more than twenty brands of food drink both

local and foreign, out of which two, namely Cadbury Nigeria Plc’s Bournvita and Nestle Nigeria

Plc’s Milo keenly compete for market leadership. There are quite a host of up-coming and low-

price localized brands in small sachets with “Vita” suffixes springing up in every nook and

cranny of the country. Existing and popular brands, therefore, face intense competition with the

affordable localized “Vitas” with high sugar content targeted at the low-income groups. It is,

therefore, imperative for the more established brands like Bournvita to employ brilliant

advertising and branding strategies to influence consumers’ behaviours in order to continue to

enjoy and maintain market leadership. Given the competitive environment in the food and

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beverages sub sector of the economy and the high potential of advertising in helping companies

realise and retain their position, this paper examines the influence of advertising on a leading

company in the food and beverages sub sector as a case study.

Concepts of Advertising

Advertising as a promotional or communicational tool is an aid to trade for driving sales

of the company’s products and services and also to build a brand identity and communicate

changes or new products/services to the customers. It is a subset of promotional mix which is

one of the four p’s in the marketing mix. As a promotional strategy, advertising serves as a major

tool in creating product awareness and condition the mind of a potential consumer to take

eventual purchase decision.

2.2 Conceptual Framework

2.2.1 Direct Advertising

This is concerned with advertising of product to those who really need them. Some type

of goods appeal to a certain category of people. When such goods are to be advertised, it would

be more economical and convenient to identify the target audience and advertise directly to them.

For example, if a new drug is brought to the market, it would be preferable to advertise it on

medical journals, and the medical practitioners in turn recommend or prescribe the drug to

patient. It is advisable to advertise directly to the likely consumers.

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2.2.2 Indirect Advertising

Goods that are advertised under indirect advertising are goods that are needed and used

by everybody, no matter the group or category. An example of such is toothpaste and whichever

way this type of product is advertised, it still captures the attention of consumers.

2.2.3 Competitive Advertising

This type of advertisement is used in advertising competitive products. As the name

implies, it is used to win more consumers at the expense of their competitors. To achieve this,

attractive pictures, bright colours and beautiful scenarios are used to present the commodity in

desirable form that will attract the consumers. In competitive advertising, care is taken in

selecting words to be used in order not to destroy the image of the other competitors’ products.

2.2.4 Informative Advertising

This is the type of advertising that informs consumers about a brand. This type of

advertising usually creates awareness about a product in the market and its benefit.

2.2.5 Mass Advertising

Mass advertising is carried out to eliminate waste. It occurs when there is co-operation

among producers of such products to be advertised. In this case the produce is advertised as one

rather than each company advertising its own brand of the product

2.2.6 Role of Advertising

According to Wilkie (1994), advertising fulfils a number of tasks usually in the context of

brands. Some of these roles are as follows:

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 i. Increasing the sales of the product or service

ii. Creating and maintaining brand identity or brand image

iii. Communicating a change in the existing product line

iv. Informing about new product availability, feature and price.

v. Creating a reputation for services reliability of research strength.

vi. Increasing the buzz-value of the brand or the company.

vii. Increasing the number or quality of retail outlet.

Before any advertisement can be carried out effectively, these objectives must be put into

consideration.

2.2.7 Advertising Industry

The advertising industry is a very important aspect of marketing. It is necessary to

critically view what the advertising industry is composed of, i.e. the elements which are

significant in the industry.

According to Wilkie (1994), the advertising industry is composed of the following:

i. Sponsor

ii. Agency

iii. Media

i) Sponsor

In advertising industry, the sponsor or the advertiser is the initiator of the advertisement

idea. He is the owner of the product to be advertised. Bearing in mind the objectives of the

advertisement, the advertiser organizes the message to the target audience (i.e. customers)

through a selected medium. The sponsor pays for the advertisement and provides all the

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information needed for the advert. A sponsor can be an individual, organization or government.

The most important thing is that the sponsor and owner of the product being advertised pays for

the cost, unless otherwise as agreed by the advertisement agency.

A sponsor of an advertisement has some objectives he wants to achieve; in order to

achieve these objectives, the target market and market positioning must be considered. The

sponsor would also want an effective advertisement with less cost, bearing in mind the budget

for the advert.

ii) Agency

Advertising is a skilled profession, often engaged in by professionals employed at

advertising agencies, whose trained personnel deal with designs and programming. Advertising

agencies employ teams of experts who use advertising techniques to perpetuate or promote

behavior by consumers. Advertising agencies link a sponsor or advertiser with the consumer

through the advertising media, to bring the advertisement to the target audience.

The agent is responsible for the space and time booking for the advertisement, on behalf

of the sponsor. He earns his income from the commission he receives. For an agent to carry out a

successful advert, all necessary information about the product must be provided by the sponsor,

as well as his support and confidence. In some large commercial companies, there is usually an

advertising unit or department responsible for the advertising campaign of the company. This is

however, cheaper for the organization.

iii) Media

This is the third element in the advertising industry. Media is the means of

communicating information to a target population (Bovee and Arens, 1992). It is a channel

25
through which the message given to the agent by the sponsor is delivered to the target audience

(consumers).

2.2.8 Advertising Media

There exist various media which can be effectively used for advertising, such as:

i. Print advertising

ii. Outdoor advertising

iii. Broadcast advertising

iv. Covert advertising

v. Surrogate advertising

vi. Public service advertising

vii. Celebrity advertising

2.2.8.1 Print Advertising. The print media are frequently used in advertising, and are

often employed via newspapers or magazines. In addition to this, the print media also offers

options like promotional brochures and fliers for advertising purposes. Often the newspapers and

the magazines sell the advertising space according to the area occupied by the advertisement, the

position of the advertisement (front page/middle page) as well as the readership of the

publications. For instance, an advertisement in a relatively new and less popular newspaper

would cost far less than placing an advertisement in a popular newspaper with a high readership.

The price of print adverts also depends on the supplement in which they appear, for example an

advertisement in the glossy supplement costs way higher than that in the newspaper supplement

which uses a mediocre quality paper. Print advertising media include: newspaper, magazines,

fliers, brochures. etc.

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 2.2.8.2 Outdoor Advertising. Outdoor advertising is also a very popular form of

advertising, which makes use of several tools and techniques to attract the customers outdoors.

The most common examples of outdoor advertising are billboards, kiosks, and also several

events and tradeshows organized by the company. The billboard advertising is very popular,

however has to be really terse and catchy in order to grab the attention of the passerby. The kiosk

not only provides an easy outlet for the company products but also make for an effective

advertising tool to promote the company’s product. Organizing several events or sponsoring

those events makes for an excellent advertising opportunity. The company can organize trade

fairs, or even exhibitions for advertising their products. If not this, the company can organize

several events that are closely associated with their field. For instance, a company that

manufactures sports utilities can sponsor a sports tournament to advertise its products. Examples

of outdoor advertising includes: billboards, tradeshows or events, kiosks, etc.

2.2.8.3 Broadcast Advertising. Broadcast advertising is a very popular advertising

medium that constitutes of several branches like television, radio or the internet. Television

advertisements have been very popular ever since they have been introduced. The cost of

television advertising often depends on the duration of the advertisement, the time of broadcast

(prime time/peak time) and of course the popularity of the television channel on which the

advertisement is going to be broadcasted. The radio might have lost its charm owning to the new

age media; however, the radio remains to be the choice of small-scale advertisers. The radio

jingles have been very popular advertising media and have a large impact on the audience, which

is evident in the fact that many people still remember and enjoy the popular radio jingles.

Radio is one medium so widespread, it seems to be everywhere, giving it the advantage

27
of being able to carry information about goods to both urban and rural areas, where there might

not be electricity supply.

2.2.8.4 Covert Advertising. Covert advertising is a unique kind of advertising in which

a product or a particular brand is incorporated in some entertainment and media channels like

movies, television shows or even sports and cinema. There is no commercial in the entertainment

but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment

show.

2.2.8.5 Surrogate Advertising. Surrogate advertising is prominently seen in cases

where advertising a particular product is banned by law. Advertisements for products like

cigarettes or alcohol which are injurious to health are prohibited by law in several countries, so

companies have to come up with several other products that might have the same brand name

and indirectly remind people of the cigarettes or beer bottles of the same brand.

2.2.8.6 Public Service Advertising. Public service advertising is a technique that makes

use of advertising as an effective communication medium to convey socially relevant message

about important matters and social welfare causes like AIDS, energy conservation, political

integrity, deforestation, illiteracy, poverty and so on. David Ogilvy, considered to be one of the

pioneers of advertising and marketing concepts, reportedly encouraged the use of advertising

filed for a social cause. Ogilvy once quoted his mentor Howard Gossage, who said, “Advertising

justifies its existence when used in the public interest’ it is much so powerful a tool to use solely

for commercial purposes” (The Uncommon Designs, 2016). Today public service advertising has

been increasingly used in several countries across the world in order to promote various social

causes.

28
 2.2.8.7 Celebrity Advertising. Although audiences are getting smarter and the modern-

day consumer getting immune to the exaggerated claims made in a majority of advertisements,

there exists a section of advertisers that still bank upon celebrities and their popularity for

advertising their products. Using celebrities for advertising involves signing up celebrities for

advertising campaigns, which consists of all sorts of advertising including television

advertisements or even print advertisement.

Concept on Consumer Behaviour. Consumer behavior is one of the heavily studied

topics by researchers and marketers. Researchers offer different explanations as to why

consumer behavior has been the topic of many academics and researchers.

One reason that consumer behavior has become a factor is that it has a direct impact on

the overall performance of businesses (Kotler and Keller, 2012). Understanding consumer

behavior is crucial in light of fierce global competition within industries. Consumer buying

behavior is studied in the field of marketing and its main objective is to learn the way how

individuals, groups or organizations choose, buy, use and dispose the goods and the factors such

as their previous experience, taste, price and branding on which the consumers base their

purchasing decisions (Kotler and Keller, 2012).

One of such studies of consumer buying behavior has been conducted by Acebrón et al

(2001). The aim of the study was to analyze the impact of previous experience on buying

behavior of fresh foods. In their studies, the authors used a structural equation model in order to

identify the relationship between the habits and previous experience on the consumer buying

decision. Their findings show that personal habits and previous experience of the consumers

have a direct impact on the consumer’s purchase decision in the example of fresh food. They

also found the image of the product has a crucial impact on the purchasing decision of the

29
consumer and further recommended that the product image should continuously be improved in

order to encourage the consumers towards purchasing.

2.3 Theoretical Framework

“Buying behavior” “refers to all the decisions people and businesses make when they buy

products or services” (Thompson, n.d.). While “several different theories have been proposed to

explain and predict the buying behavior of both companies and individuals so that business

owners can make the best strategic decisions and address customer wants and needs,” Thompson

(n.d.) identifies four theories of consumer behavior, namely: Rational Actor Theory, New

Institutional Economics, Process Theory and The Bullwhip Effect.

2.3.1 Rational Actors Theory

Thompson (n.d.) writes that, “according to classical economic theory, people make their

buying decisions based on a rational analysis of their own self-interest in the situation.” As a

result, “the buying behaviour of an individual can be predicted by analyzing what cause of action

would most benefit that individual” (Thompson, n.d.). Therefore, “in theory, the same principle

applies to the buying decisions of groups of individuals such as businesses” (Thompson, n.d.). A

factor worth mentioning about this theory is that “the idea that people are rational actors in the

first place has been questioned by more recent economic theories” (Thompson, n.d.).

2.3.2 New Institutional Economics

Thompson (n.d.) explains that “according to an economic theory called new institutional

economics, the rationality of any buying decisions is limited by different forms of uncertainty.”

For instance, “a person buying a ticket to an outdoor game cannot know whether it will rain or

not, so he cannot know whether he will receive any benefit from his purchase” (Thompson, n.d.).

Thompson (n.d.) continues, “the decision to buy or not to buy cannot be strictly rational under

30
these circumstances” and adds that “in many buying decisions, the potential buyer doesn’t have

access to as much information as the seller.”

2.3.3 Process Theory

Process theory is “another economic theory that seeks to explain the difference between

what people would theoretically do if they were rational economic actors and what they actually

do in practice” (Thompson, n.d.).

Thompson (n.d.) writes that “according to process theory, some buying decisions are

made from a self-defensive perspective and others from an opportunistic perspective, depending

on the buyer’s perception of possible gains and losses,” and explains, “for instance, a good bulk

price on a particular item can convince a consumer to opportunistically buy more than he

normally would and sometimes more than he can possibly use.” He adds that “on the other hand,

a business owner might pass up a favourable investment simply because he doesn’t trust the

people trying to sell it to him” (Thompson, n.d.).

2.3.4 The Bullwhip Effect

To explain the bullwhip effect, Thompson (n.d.) writes that “consumer buying behaviour

can have a disproportionate effect on the buying behaviour of business.” He continues, “for

instance, if consumers demand for a particular product drops by 10%, the company that makes

the product may switch to a less expensive supplier for one of the component parts to make up

the loss” (Thompson, n.d.). In this case, “the original supplier suffers a 100% loss of orders from

the company because of a 10% drop in consumer purchases” (Thompson, n.d.). This example

illustrates the bullwhip effect by showing how a small change at one end has dramatic effects on

the other end. This effect is not limited to sales of goods or products: “some businesses that don’t

31
sell any products directly to the public still advertise to consumers in an attempt to influence this

bullwhip effect” (Thompson, n.d.).

2.4 Empirical Framework

A study of the Nigerian food industry by Ayanwale et al. (2005) examined the effects of

advertisement on consumer brand preference for Bournvita (which is a leading food drink in the

food and beverage industry). Their results showed that both male and female consumers from

different age groups and regions were influenced by advertising done by the brand. The most

common reason for the adoption of the brand by consumers was due to its very informative and

lively advertisement (42%) and its rich quality in taste (40%) (Ayanwale, et al., 2005).

2.4.1 Advertising as Strong Persuasive Force

This “is the intuitive view, ingrained in the collective mind, despite being criticized for

the last three decades by other eminent academics” (Saini, 2004, p. 1). Proponents of this view

“are invariably critical of advertising” and “contend that accurate knowledge about consumers

‘how they buy, why they buy, where they buy and what they buy is unnecessary since it is

possible to manipulate hapless buyers into parting with their money in return for products they

do not want’” (Saini, 2004, p. 1). These types of model “have survived despite various empirical

studies showing the view of advertising as a strong persuasive force is largely founded,” and “an

alternative view of advertising was later proposed by scholars, suggesting a much weaker and

less predictable and uneven impact on consumers” (Saini, 2004, p. 1).

2.4.2 Advertising as a Tool of Competition

For over thirty years, a considerable number of academics have asserted that the strong

force theory does not apply in all market sectors. These scholars suggest that when it comes to

32
marketing of frequently purchased goods (such as food or drink in mature markets), volumes of

advertising merely reflect an attempt to maintain a market share in competitive, but fragmented

markets.

The simple yet highly complex reality is that advertising works in different ways and to

different effects, depending on many intrinsic and extrinsic variables. Advertising takes

advantage of the subconscious, mind as it creates its messages. By appealing to elements of the

subconscious which is beyond the average person’s control, advertising can influence the

conscious mind. The effect that advertising is trying to achieve is to influence a person’s

conscious decision making by appealing to the subconscious. It is trying to get that person to

decide to buy (Bovee and Arens, 1992).

2.4.3 Effects of Advertisement on Consumer Behaviour

A business irrespective of the size needs to advertise and promote to attract customers.

However, that doesn’t mean you can just put out your messages and start counting the new

customer. According to the International Journal of Management Research and Business Strategy

(2013), advertising affects consumers in the following ways:

i. Increase Awareness: Advertising offer a new function to consumer viewers of adverts

so as to learn about new products and services available to them. It provides facts about

approval or disapproval of a product and consumer behaviour at this stage encompasses

expression of curiosity.

ii. Analysis of Features: Consumers have a rational response to advertising when they look

at the features of a product or service. This response focuses on a logical listing of all the

fractional aspects of the offering. This exhibits an intellectual response, rather than an

emotional one.

33
 iii. Evaluation of Benefits: Advertising make consumers to emotionally involved in

weighing of benefits. When consumers identify the product or service it can make them

happier. It improves their lives or gives them pleasure. This part of customers’ responses

is irrational and can lead to impulse buying and competition to obtain product.

iv. Reminders: Repeated advertising messages affect consumer behaviour. This repetition

serves as a reminder to the consumer that stems from reminders. It includes suddenly

thinking a product while shopping and making decision to buy it.

v. Promotion of Loyalty or Alienation: Consumer behaviour splits between loyalty and

alienation depending on how well the product lives up to its advertised benefits.

Corporate behaviour such as scandals or charity work can also affect alienation and

loyalty response.

2.5 Historical Background of the Company

Cadbury Nigeria Plc, the subject of this study, is the leading company in Nigeria in

confectionary, food drinks, and foods whose quality brands and products are available and

enjoyed in all 36 states of the nation and Federal Capital Territory as well as in export market

around the world.

Cadbury Nigeria Plc was incorporated on 9th January, 1965 and it has since grown to

become a leading manufacturing concern in the Food and Beverage sector maintaining its leader-

ship role in the business community and the society at large. In 1976, the company went public

and this has significantly increased its scope of operations. Listed in the elite First tier securities

of the Nigerian Stock Exchange (NSE), Cadbury Nigeria Plc’s shares are actively traded in the

stock market and it is one of the fast-moving stocks and price gainers in the Food/Beverages and

Tobacco sector in particular and in the equities market of the NSE in general.

34
 Cadbury Nigeria Plc engages in the food processing business, its major product lines

consist of food drinks, sugar confectionery chocolate and seasoning cubes. The company is

presently partly owned by the Nigeria Public and the foreign technical partner the Cadbury

Schweppes Group of United Kingdom, which provides the company with technical services

under a Technical Services Agreement approved by National Office for Technology Acquisition

and Promotion (NOTAP), and holds 40% of the issued share capital while the balance is held by

the Nigeria Public (Cadbury Nigeria Plc Annual Report, 1999). Apart from Bournvita, brands

such as Pronto, Richoco, among others, are also found in the company’s product Portfolio (Fact

File, 1998/99).

However, Cadbury’s flagship brand, Bournvita is, no doubt, in a competitive

environment with other brands such as Milo, Vitalo, Ovaltine, Nescafe, Toptea, Lipton and other

cheaper local brands all of them striving to increase their market share through varying

marketing strategies such as sales promotion, personal selling and provision of point-of-sale

materials such as t-shirts, cups, posters, shelf strips etc. to stir, attract and retain more consumers

of their products. (Oladosu, 1993). In view of this, effective communication between the firm

and the market place through advertising stressing product benefits and brilliant brand

management are sure ways of increasing market share, maintaining market leadership and

creating brand-loyal behaviour in their consumers.

35
 References

Acebrón, L. B., Mangin, J. P. L., & Dopico, D. C. (2001). A proposal of the buying model for

fresh food products: The case of fresh mussels. Journal of International Food &

Agribusiness Marketing, 11(3), 75-96.

Arens, W.F. (1996). Advertising as communication process, or an information and persuasion

process. Journal of Advertising Research, 47(3), 222-236.

Arens, W.F. (1996). Advertising and consumer behavior. Journal of Operations Management,

23, 618-641.

Ayanwale, A.B., Alimi, T., & Ayanbimipe. (2005). The influence of advertising on consumer

brand preference. Journal of Social Science, 10(1), 9-16.

Bovee, C. & Arens. (1992). Advertising as a tool for competition. Journal of Advertising

Research, 40(5), 17-21.

Etzel, M.J., Walker, B.J. & Stanton, W.J. (1997). Marketing. USA: Irwin/Mc-Graw Hill.

Kotler, P. & Keller, K.L. (2012). Marketing management (14th ed.). Pearson Prentice Hall

Publishers, Boston.

Morden, A.R. (1991). Elements of marketing. London: D.P. Publication Ltd.

Saini, V. (2004). Advertising and consumer behavior. ISBA Briefing Paper. Retrieved from

https://www.scribd.com/doc/52189481/Advertising-and-consumer-behaviour

The Uncommons Design. (2016, May 2). Advertising and the world around us: The social

equation! https://theuncommons.in/blog/advertising-the-world-around-us-the-social-

equation/

Thompson, S. (n.d.). Business theories of buying behavior. AZCentral,

https://yourbusiness.azcentral.com/business-theories-buying-behavior-28070.html

36
Wilkie, W. (1994). Consumer behavior (3rd ed.). New York: Wiley.

37
 Chapter Three

Findings / Summary, Conclusion and Recommendation

3.1 Summary

This research work is on the effect of advertisement on consumer brand preference.

Chapter one introduces the background information about the research work and the statement of

research problem gives the various problems that necessitated the research work. The objectives

of the study were enumerated showing the objectives to be achieved at the end of the study. In

the significance of the study, we would know how important the study will be to management of

companies, government and students of higher learning or any interested persons or agencies.

The horizon of the study was explained in the scope and limitations of the study, while

the research hypotheses consist of two (2) hypotheses formulated for the study. Finally, under

chapter scheme, all the chapters were summarized in a nutshell for easy understanding.

Chapter two is on literature review and it deals with the existing literature on the effects of

advertisement on consumer buying behaviour. It includes the definition of advertisement where

advertising is defined as any paid form of non-personal presentation and promotion of ideas,

goods and services by an identified sponsor.

Nwokoye (2000) explained that advertising has become a major form of selling, if not

only supports form of selling but also serve as the only selling tool used to inform target

audience about producer product. He said in the ancient times, the most common form of

advertisement was by the word of mouth, however commercial messages were found in the runs

of Pompeii. In setting advertising objectives, it should be based on past decisions about the target

market, positioning and marketing mix. The following are the classification of advertising

38
objectives namely: informative, persuasive, reminder and reinforcement advertising. When

setting advertising budget Nwokoye (2000) gave five (5) specific factors to be considered i.e.

stage in the product life cycle, market share and consumer base, competition and clutter,

advertising frequency and product substitutability.

Gary (1992) observed that when developing advertising strategies four (4) steps are

followed to develop a creative strategy: message generation, message evaluation and selection,

message execution and social responsibility review. According to Irving et al. (1997), the major

steps in media selection are: decoding on reach, frequency and impact, choosing among major

media types, selecting specific media vehicles and deciding on media timing. Kotler (2004) said

the advertising programme should evaluate both the communication effects and the sales effects

of advertising regularly. The sales effects of advertising are often harder to measure than

communication effects and sales are affected by many factors besides advertising such as

products features, price and availability.

Kotler and Keller (2012) said one of the common views in understanding consumer

behaviour is it has become a factor that has a direct impact on the overall performance of

businesses. Thompson (n.d.) identified four (4) theories of consumer behaviour namely: rational

actors theory, new institutional economics, process theory and the bullwhip effect.

Five stages model of consumer decision making has been studied by a number of other

researchers, but Blackwell (2006) identified the five (5) stages of consumer decision making

process as: problem/need recognition, information search, evaluation of alternatives, purchase

decision made and post purchase evaluation. Furthermore, a number of researchers have been

carried out by scholars on the factors affecting the consumer buying behaviour. Wiedmann (2007)

39
classified them into internal and external factors, while Winer (2009) divided them into social,

personal and psychological factors.

Chapter Three is on summary, findings and conclusions and recommendations of the

whole research work. For the summary, all the chapters were summarized chapter by chapter,

while the findings and conclusions consist of the findings observed by the researcher during the

study. The recommendations were based on the findings observed before useful suggestions will

be given as recommendations to management of blue chips companies, government and students

of higher learning or any interested persons.

3.2 Findings and Conclusion

From the research work, the following findings were observed:

i. It was discovered that the management of the company gives advertising the importance

it deserves as a promotional mix in the marketing of its product.

ii. Advertising as a promotional mix is a huge task because of the characteristic involved;

the researcher found out that though the company promotes its products using

advertisement, most consumers in the rural areas are not usually targeted.

iii. The researcher was able to find out that there exists a high dissatisfaction among their

customers in the rural areas because products are usually not available.

iv. During the research work, it was discovered that the company takes advertisement with

much importance because it helps to communicate their products to the targeted

consumers.

v. By conducting market research regularly to gather information about sales and profit

level, it will help them to develop new ways to meet their annual projected sales.

40
 vi. The researcher discovered that there is no constant meeting between management and her

customers so as to answer some of the customers complains on their products.

vii. The sales and marketing department should put much emphasis in employing competent

personnel and giving them the required training needed so as to excel.

viii. Finally, though the company gives good packages to her staff as motivation, it was

discovered that total emoluments given is not satisfactorily to the staff. Generally,

businesses say that advertising provides a public service because it gives them

information about their products and in its broadest sense; it is the vital conduct for

information between producers and consumers. Of course, we all know that advertising

does more than merely inform, its job is to sell. It is not objective or neutral and

successful adverts skillfully engage the mind of the consumer and motivate them to buy

the product advertised.

Furthermore, communication does not only enhance mutual understanding and social

integration of communities. It fosters harmonious relationship that contributes immensely to the

overall-social economic, political and well as the cultural development of the human society.

Finally, advertisement campaign worldwide influences the behaviours and attitude

formation of consumers not only in Nigeria but also worldwide. The consumers of products have

their motivational sources which are advertisement and its motivating them to materialize the

purchase of durables. The consumers are induced significantly by advertisements when the target

is on quality and price. Purchase attitude and behaviour is influenced by variety of

advertisements which cover product evaluation and brand recognition.

3.3 Recommendation

Based on the findings and conclusion, the following recommendations are made:

41
 i. The management of the organisation should evolve a strategy that would fully embrace

advertisement as a promotional mix in the marketing of their products.

ii. The efficiency in carryout advertisement in the company depends on the experience and

mental alertness of the personnel involved in the advertising campaign for the

organisation.

iii. The organisation should intensively monitor customers satisfaction through client

complaints and suggestions, because their customers are very vital to the growth and

survival of the company.

iv. The company should conduct quarterly marketing research, so as to gather information as

regard the ways to meet projected sales and profit level set by them.

v. There is need for a constant meeting between the management and its customers, so as to

establish a good relationship in order to find answers to most of the customers complains.

vi. The management of the organisation should try its possible best to use the promotional

mix i.e. advertising, sales promotion, personal selling to pursue its objectives in the target

market.

vii. The staff employed in the sales and marketing department should be given adequate

training on consumer behaviour, which will help to boost their effectiveness when

dealing with customers.

viii. Finally, good improved package should be given to their employees as motivation so as

not to be carried away by other organisations with good salary package.

3.4 Contribution to Knowledge

This research project reveals the basic knowledge on how to maintain consumers in the

market place and how satisfy their wants and needs.

42
 Proctor et al. (1982) noted that the principal aim of consumer behaviour analysis is to

explain why consumers act in particular ways under certain circumstances.

On the other hand, building good customer's relationship with organizations helps

promote the company's products and services with the aid of better advertisements. Due to that

awareness, when consumers have certain problems, they recall an advert they have come in

contact with. For example, when a consumer requires shaving his hair, he recalls an advert on

gullet razors he watched or saw on newspaper. Furthermore, advertisement helps in retaining

customers to brand as it reminds them of the brands continuous presence in the market. These

induce brand loyalty in them and keep them from moving on to other brands. Lastly but not the

least advertisement helps in competition with other brands in the industry. When a company’s

advert is able to convince consumers that its product or services function better than those of

competitors. It helps the company maintain a competitive advantage in the market. Lots of

scholarly work and research has been conducted by individuals to measure the effects of

advertisement on consumer brand preference. Brand preference is when a consumer chooses a

particular brand in the presence of other competing brands. This is largely influenced by the

success of marketing strategies and tactics employed by the company (Kotler, 2017). This

marketing strategies and tactics involve the ability of organizations to study and influence

consumer behavior using advertisement as a means.

3.5 Suggestions for Further Studies

Advertisement is a form of communication with different customers to sell the products

and services. It is usually conveying the message of name of products and services and benefits

of these products and services. However, advertisement is trying to persuade the customers to

purchase or to consume more of a particular brand of product or service.

43
 Basically, products or services are advertised to create brand awareness in the mind of the

customers. Some advertisement industry uses different types mode of communication for

advertisement are TV, radio, magazine, websites, newspapers, magazines, bill boards, hoarding

etc. Advertisement is an important aspect of communication and creating brand image in the

mind of customers. They attract the potential customers to purchase the products or services of

the particular brand. Advertisement play important role in the current competitive world. A

career in the advertisement is quite excellent and meets new challenges with different agencies of

advertisement. Every type of company, whether it’s religious, sports, manufacturing, producing

or brands, uses different mode of advertisement to promote its products or services. All of the

companies target the particular customers or areas to promote their products or services. The

salary in advertisement business is quite high and if you have the knack for it one can reach the

top. It is a standard profession for a creativity and innovation individual who can handle work-

pressure. Today, new areas are appearing within advertising like the event management, the

image management, the internet marketing etc. The event management where events are

marketed through advertisement, image management where in as particular profile of an

individual or an organization is projected. Internet marketing has changes lots of things in

advertisement as Internet means that one is provide to a select group of audience rather than a

mass audience. Today celebrity endorsement is most popular in advertisements. Almost every

company does advertisement with celebrity to target the mind of potential customers. Celebrity

endorsements create brand building process in the mind of customer and that’s attracting them to

purchase their brand.

Future studies will investigate promotional challenges experienced to maintain

consumers’ decision on their brand preference.

44
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