IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOUR IN NIGERIA

(A CASE STUDY OF CADBURY NIGERIA PLC.)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Cadbury Nigeria Plc was incorporated in 1965, the company had only brand to its name: Pronto and Bournvita, but those were doing well indeed, infact the decision to incorporated a local Company by Cadbury Fry export, as the oversea company was then called, was informed partly by excellent result obtained from importing both products for sales within Nigeria.

Earlier in 1959, the company had begun to hold stocks locally and by 1963 sales had reached a level where the local packaging of bulk supplies where introduced. Local manufacturer before sighed decision that was pay off handsomely later. Viewed-from UK, Nigeria has before and immediately after independence was a rapidly expanding market with great potential in various filed of industry and commerce.

Some also saw the new nation through the merchant list's viewpoint as available for very little investment. Cadbury Nig. Plc took off with local manufacturer of Bournvita and Pronto in 1965 and by 1966 a new factory site was situated at Isheri Road, Ikeja­Lagos. Before then, expanded production facility at the company's take-off base at Apapa had brought two other products (Goody Goody and Tomapep) out of the production line.

The Ikeja factory was fast-paced, but it was finished before the Nigeria Civil War brook out. For a while, the war itself threatened the very foundation of the young company since over 50% of the total turn over then came from the eastern states, fortunately, however, Government was place a band on imported finished food, drinks and suddenly Bournvita and Pronto, the only food drinks then manufactured in Nigeria, had the available market tothemselves.

Sales went through the roof and at least in Naira value terms have not stopped rising since then except for 'a marginal drop in 1984, that was during the notorious years of import licenses. Speaking to shareholders on the company's 1984 operations the chairman Mr. G.O. Onosode had said then, that the pressure on profit margin "came from the need to substantial qualities from basic raw materials................. From local importers in many cases at prices up to three times those that would have applies, had we been in possession of adequate licenses and in a position to import direct".

In recent time, "We have ensured a stable future in materials supplies for our company's food, drinks and confectionery products, and put ourselves in a position where we can supply other manufacturing enterprises with some of their raw materials needs".

The trebor brand now belongs to the Cadbury Nigeria portfolio of products, a strong addition to the existing seventeen (17) products with more on the way. The average number to the person including directors employed by the company during the year 1997 was 1,227 of whom only two are foreigners; while about 300 are senior staff, make up a work force whose watchword is the pursuit of excellence for them and for the company.

Advertising being one of the marketing tools, it is so persuasive now that it has become a very vital part of most organizations heritage in promoting their products. To this end, this study advertisement on consumer behavior.

1.2   STATEMENT OF THE RESEARCH PROBLEM

It has been observed that manufacturers of consumer products are faced with one problem or the other when making their advertising decisions. There are some factors that are to be considered in realiazing a good advertising decision.

Advertising can betray its role as a source of information by misrepresentation and by withholding relevant facts. Sometimes, too, the information function of media can be subverted by advertisers' pressure upon publications or programs not to treat of questions that might prove embarrassing or inconvenient.

The practice of "brand"-related advertising can raise serious problems. Often there are only negligible differences among similar products of different brands, and advertising may attempt to move people to act on the basis of irrational motives ("brand loyalty," status, fashion, "sex appeal," etc.) instead of presenting differences in product quality and price as bases for rational choice.

Advertising can be tasteful and in conformity with high moral standards, and occasionally even morally uplifting, but it also can be vulgar and morally degrading. Frequently it deliberately appeals to such motives as envy, status seeking and lust. Today, too, some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature.

On this note, this project tends to provide solutions to how advertisements could be presented to avoid false / bad interpretation.

1.3   AIM AND OBJECTIVES OF THE STUDY

The aim of this research is concerned with the impact of advertising on consumer behavior in Nigeria with the following objectives:

·        To determine the extent to which advertising has created product awareness

·        To determine the benefits of advertising to Cadbury Nigeria Plc.

·        To know whether advertising has encouraged brand loyalty among consumers

·        To find out whether advertising has being able to influence the consumers.

·        To find out whether it has helped the company to provide customers with useful information as their products.

·        To find out the receptivity of advertisement due to appeal used in it.

·        To explore the impact of personality used in advertisements on consumer behavior.

·        To determine the impact of keyword/caption of advertisement on purchasing behavior of consumer.

1.4   RESEARCH QUESTIONS

In determining the impact of advertising on consumer behavior in Nigeria with particular reference to Cadbury Nigeria Plc, certain research question are always put forth to be tested for its validity. The following are the research question to be tested:

·        Does advertisement influence consumer behavior?

·        Do adequate marketing strategies improve product awareness?

·        Do you embrace advertising to face to face marketing system?

·        Does the advert influence your desire for Cadbury Products?

·        What are the factors that usually contributes to the buying perception and behavior of the consumers?

·        What is the common goal of advertising?

·        What are the recognized faces of advertising within the organization and to the consumers?

1.5   SIGNIFICANCE OF STUDY

Advertisement is everywhere in our life like on television, radio, newspaper and billboards are common medium’s through which advertisement reach to us. Advertiser and marketers are more concerned to know what are the consumer’s motives and their purchasing pattern in order to use different strategies to influence their consumer behavior.

Due to consumers demand in uniqueness and varieties promoters of products have to focus heavily on how to judge psyche of consumers; what they like, why they like and what will be appreciable in Cadbury products. The company should be concern about variety, upgrading of products, saving schemes to make it more influencing and effective for consumer’s psyche, so it is important to find out the elements of good advertisements as if the consumers are prone to the advertisement effectiveness.

1.6   RESEARCH HYPOTHESES

The following tentative hypotheses are to be tested:

(1)        H0:   That advertising does not increase product

awareness in consumers

Hl:    That advertising increases product awareness in

consumers

(2)        H0:   That advertising does not help the company in                                           

influencing consumer behavior and gaining more market share.

H1:   That advertising helps the company in influencing

consumer behavior and gaining more market share

1.7   SCOPE OF THE STUDY

As advertising has variety of meaning to different group of people especially traced to its origin, this exercise is strictly restricted to advertising as it affects the consumer behavior.

Nowadays, advertising is largely employed to promote service like banking, insurance Airlines and other service irrespective of those mentioned above. The scope of this study will be limited only to areas where its importance on consumer behavior could be fully tapped. There is no other area in the country that can give a high and good avenue for measuring effectiveness of advertising than LagosState.

1.8   LIMITATIONS OF THE STUDY

In the course of conducting this research work it is expected that the following will constitute impediments to the effective conduct of the study.

·        Locating the actual and potential users of the Company's product.

·        Inaccessible and inadequate data from respondents during the course of administering the questionnaire.

·        Time constraint within which the study must be completed.

·        Financial constraint

1.9   DEFINITION OF TERMS

Advertising:    Any paid form of non-personal presentation and promotion of ideas, goods and services by identified sponsors.

Advertising Agency: It is defined by the American marketing Association as "An independent business organization composed of creative and business people, who develop, prepare and place advertising media for sellers seeking to find customers to their goods and services"

Brand Loyalty: It describe the amount of Loyalty that users have to particular product, the amount of loyalty can range zero to absolute.

Consumer Goods: these are goods that are destined for use (without further processing by ultimate consumer). It is classified into three major categories:Consumer Goods, Shipping Goods, specially goods

Casual Research: these are goods that tell us the factors responsible for the ineffectiveness of a prevailing situation. The

causes and the effect is known through the casual method of research.

Exploratory Research: this is a research that has already been carried out by someone but explore information of all sort. itis also referred to as secondary source of information.

Descriptive Research: this type of research is meant to rest the hypothesis foe foreseeable solution (for the purpose of testing hypothesis or answering questions that are related or concern with the subject matter or a problem which we are finding solution for.

Appeal of Advertisement: Appeal is the slogan or need-creating stanza used in advertisement. Attractive personality, commercial’s keyword/caption and some information adding to knowledge come under the appeal of the advertisement of a specific brand. They motivate the consumer to center his/her attention to the specific brand of product (Wells et al., 1995).

Acceptance of Advertisement: Acceptance is the extent to which, a consumer relies on the advertisement’s information and act accordingly to the appeal, keyword / caption, stanza, slogan and model personality (Wells et al., 1995).

Consumer Behavior: The decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods and services (Loudon & Bitta, 1994).

1.10 PLAN OF THE STUDY

This study will be divided into five chapters.

Chapter one, which is the introduction, various objectives intended to be achieved in carrying out this research work will be looked at. In addition, the research hypothesis as well as the scope and limitation of the study will be stated among other things.

Chapter two, which is the literature review examine the existing literatures on Advertisement, its genesis, types, impacts to oraganisations and how it affects consumer behavior.

Chapter three, which is the structural composition of the study, impact of advertisement on consumer behavior will be discussed and the methods for this research work will also be explained in detail.

Chapter four contains data analysis. The data to be analyzed will be obtained from a structured questionnaire that will be administered to the staff of Cadbury Nigeria Plc., Lagos branch. These data will be analyzed through the use of Chi-Square analysis.

The summary, conclusions and recommendations will be presented in chapter five.

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