THE IMPACT OF ADVERTISING ON CONSUMER PATRONAGE,

(A CASE STUDY OF UNION BANK IN KANO ).

BY

CHARLES IFEANYI OKEKE

FMS/BUS/18/1012

A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF BUSINESS

ADMINISTRATION, FACULTY OF MANAGEMENT SCIENCES, FEDERAL
UNIVERSITY DUTSE, IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF BACHELOR OF SCIENCE, (B.Sc.) BUSINESS
ADMINISTRATION

SUPERVISED BY:
DR. KABIR

SEPTEMBER, 2023
1.1 BACKGROUND OF THE STUDY
Advertising is one of the major mediums in which sellers/suppliers use in order to stimulate
demand for goods and services; therefore, it is a communication function that links customers
with the producer. Kotler (1990:450).
There's quite a bit of research that suggests that good customer service can lead to higher levels
of customer satisfaction and loyalty. Some studies have even found that customers who are
satisfied with a company's customer service are more likely to recommend the company to
others.
One major issue is the bank's exposure to the energy sector. In particular, the bank has significant
exposure to the oil and gas industry. This exposure has become a problem as oil and gas prices
have declined in recent years. This has resulted in defaults on loans and decreased earnings for
the bank. Additionally, the bank has faced scrutiny from regulators over its compliance with anti-
money laundering and other regulations.
Union Bank has taken a number of steps. One is to reduce its exposure to the energy sector. The
bank has been selling off assets related to oil and gas, and has been focusing on other sectors
such as technology and healthcare. In addition, the bank has been investing in systems and
processes to improve its compliance with regulations. Finally, the bank has been working to
improve its risk management practices.

1.2 STATEMENT OF THE PROBLEM

The survival of the banks depend on the number of customers, the banks are able to satisfy. The
ment of problems are cost of bank service is high, interest rates on loans and deposit are high,
time spent in transacting business in the bank is long and there are also long queue and huge
crowd in the banking hall that tends to put one off. What is more the quality of bank services is
questionable with the increasing level of fraud, forgeries and sometimes diversion of customer
funds.

1.3 RESEARCH OBJECTIVES

 To determine the impact of online advertising on consumer patronage in union bank
 To examine the impact of television advertising on consumer patronage in union bank
 To examine the impact of mobile advertising on consumer patronage in union bank

1.4 RESEARCH QUESTONS

1. To what extent does online advertisement affect consumer patronage
2. To what extent does television advertisement affect consumer patronage
3. To what extent does mobile advertisement affect consumer patronage

1.5 RESEARCH HYPOTHESIS

1. Ho1: Online advertising has no significant impact on consumer patronage.
2. HA1: Online advertising has significant impact on consumer patronage.
3. Ho2: Television advertising has no significant impact on consumer patronage.
4. HA2: Television advertising has significant impact on consumer patronage.
5. Ho3: Mobile advertising has no significant impact on consumer patronage.
6. HA3: Mobile advertising has significant impact on consumer patronage.

1.6 SIGNIFICANCE OF THE STUDY

This study, would contribute to the academia by serving as a reference material or source of
knowledge to students and a guide to future researchers on the conduct of further research on the
subject. This is one of the important aspects of the writer up to the researcher because he tries to
clearly the importance and benefits that is derived from advertising on service industry.
The study will be significant because customer would acquire more knowledge and awareness on
the impact of advertising on the service industry and at the same time, service industries would
know the situation of the customers.
To the researcher, it serves as a pre-requisite for the award of BSC in business administration at
Federal University Dutse.

1.7 SCOPE OF THE STUDY

The researcher would have wanted to carry out his research in all service industry but for more
data collection, he has restricted himself to information obtainable in Union Bank, and the
customers of their services within Union Bank only. This research work is undertaken to cover
the impact of advertising on customer patronage in Union Bank. The study is also centered on
four (3) advertising strategies: television advertising, online advertising and mobile advertising.

1.8 DEFINITION OF TERMS

Advertisement: The non-personal and paid for presentation and promotion of products through
the media: television, online, outdoor and mobile, by an identified sponsor (Union Bank).
Customer/Consumer: A group of actual or potential buyers of products in Union Bank.
Customer patronage: The act of buying products.
Television advertising: The presentation and promotion of products through television to create
awareness and induce sales.
Online advertising: The use of website, and online social media to promote product to
customers.
Mobile advertising: The use of telephone-related media like phone calls and text messages to
present and promote products.

2.0 LITERATURE REVIEW

2.1 CONCEPTUAL FRAMEWORK
2.1.1 CONCEPT OF ADVERTISING
Advertising is one of the major sources of communication between the producers and the user of
products. A company’s product no matter the quality and performance will not generate the
expected revenue until they invest in promotional activities that are capable of informing,
educating and persuading the consumer about the product. One of the tools used in achieving this
is advertising (Ijewere, 2009). According to Kotler and Keller (2013) advertising is any paid
form of non-personal presentation and promotion of ideas, goods or services by an identified
sponsor through a mass media. Borden (2009) also d that advertising is a controlled identifiable
information and persuasion by means of mass media. However, Molokwu (2000) defined
advertising in terms of characteristics of what it does which include; attracting attention to a
product, getting the target audience to actually accept the product, getting the target audience to
actually acquire the product, sustaining the positive dispositions and constant acquisition of the
product, evaluating and reviewing the advertising activities so as to remain abreast with
performance. In the light of the above definitions, Agbonifoh et al (2007) d that the general goals
of advertising are to inform, educate and persuade a consumer about company’s products or
image.

2.2 THEORETICAL FRAMEWORK

This study is anchored on the Social Responsibility Theoretical frame. Asemah (2011, p. 146)
observes that this theory has a wide range of applications since it covers several kinds of private
print and public corporations of broadcasting, which are answerable through various kinds of
democratic procedures to the society. According to Okenwa (2002). the theory focuses on the
consequences of the media and the attendant activities on the society, and places demands of
responsibility on the operators without undermining the importance of freedom. In the same
vein, Okon (2013).
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
In this study, the researcher will employ the survey research design this include Survey research
which will be used as quantitative research strategies (e.g., using questionnaires with numerically
rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies
(i.e., mixed methods). According to Singleton & Straits, (2009).

3.2 POPULATION OF THE STUDY

This study will be carried out to examine the impact of advertising on customer patronage, using
Union Bank as a case study.

3.3 SAMPLE SIZE DETERMINATION

In this study, the researcher will adopt the convenient sampling method to determine the sample
size.

3.4 SAMPLE SIZE SELECTION TECHNIQUE AND PROCEDURE

In this study, the researcher will adopt the convenient sampling method to determine the sample
size. Out of all the entire population of Union Bank, the researcher conveniently selected of
overall population as the sample size for this study.

3.5 RESEARCH INSTRUMENT AND ADMINISTRATION

The research instrument that will be used in this study is the questionnaire. A survey containing
series of questions will be administered to the enrolled participants. The questionnaire will be
divided into two sections, the first section enquires about the response’s demographic or personal
data while the second sections will be in line with the study objectives, aimed at providing
answers to the research questions. Participants will be required to respond by placing a tick at the
appropriate column. The questionnaire will be personally administered by the researcher.

3.6 METHOD OF DATA COLLECTION

Two methods of data collection which are primary source and secondary source will be used to
collect data. The primary sources will be the use of questionnaires, while the secondary sources
will include textbooks, internet, journals, published and unpublished articles and government
publications.

3.7 METHOD OF DATA ANALYSIS

The responses will be analyzed using the simple percentage, mean and standard mediation tables,
which will provide answers to the research questions.
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