IMPACT OF ADVERTISING ON CONSUMER PURCHASE DECISION (A Case Study of Nestle Milo Nig Plc)

TABLE OF CONTENT

Title Page                                                                                          i

Certification                                                                                     ii

Acknowledgement                                                                 iii

Table of Content                                                                     iv

Abstract                                                                                           v

CHAPTER ONE:

1.0    Introduction                                                                           1

1. Background of the Study                                                      1      
2. Statement of the Problem                                                      3      
3. Research Objective                                                                4
4. Research Hypothesis                                                             4
5. Scope of the Study                                                                 5
6. Significance of the Study                                                       5
7. Definition of Essential Terms                                                 6

CHAPTER TWO:

2.0    Literature Review                                                                   10

2.1    Advertising                                                                             10

2.2    Objective and Functions of Advertising                                11   

2.3    Technical of Advertising                                                        14

2.4    Type of Advertising                                                                18

2.5    Advertising Media                                                                  25

2.6    The Impact of Advertising                                                      29

2.7    Measurement of advertising Effective                                   40

2.8    A Brief History of Advertising Effective                                 40

2.9    Summary of the Chapter                                                      41

CHAPTER THREE:

3.0    Research Methodology                                                           45

3.1    Research Design                                                                     45

3.2    population of the study                                                          45

3.3    Sampling techniques                                                             46    

3.4    Data Collection Procedure                                                     46

3.5    Validity of Instrument                                                  46

3.6    Method of Data Analysis                                                       47    

3.7    Decision of Rule                                                                     47

3.8    Cut of Point                                                                            47

CHAPTER FOUR:

4.0    Date Presentation and Analysis                                            48    

4.1    Data Presentation                                                                  48

4.2    Hypothesis Testing/Analysis of data Questionnaire Obtained     from Customers                                                                     50

4.3    Testing of Hypothesis                                                             60    

4.4    Decision of Finding                                                                65

CHAPTER FIVE

5.0   Summary of findings, conclusion and recommendation 

5.1   Summary of Findings                                              67

5.2   Conclusion                                                              67

5.3   Recommendation                                                     68

5.4   Area of Further Research                                         70

        Appendix

Questionnaire

ABSTRACT

The aim of this project is to examine “Impact of Advertising on Consumer Purchases Decision” using Nestle Nigeria plc (Milo) as a case study, so that the relationship that exist between advertising and Milo will be analyzed. Advertising is perhaps the most conspicuous of all marketing activities this very fact has led to a widespread misunderstanding of its real scope and nature. The main objective of this study was to evaluate the impact of advertising on the consumption of “Nestle Milo” and also to find out the extend of which advertisement have succeeded in      influencing the buying and consumption of Nestle  Milo. Survey method was used in collecting data and this method permits the researcher to survey the respondent at their own convenience in order to find solution to problems, three (3) hypothesis were formulated and data were collected through the use of questionnaires administered. Furthermore, result obtained from the test of hypothesis show that advertising has an impact on consumer purchase decision with an impact on consumer purchase decision with a particular reference to Nestle Milo. Based on findings, it was recommended that Nestle milo Plc should improve on its advertising media, in order to have a large market share in the market of milo 

CHPATER ONE

INTRODUCTION

BACKGOUND TO THE STUDY

        A typical market is made up of people who have various need, some are buyer in the market while other are sellers, each participant in the exchange process is often confronted with the problems of searching. Every attempt to satisfy consumers needs and desires, is usually and most often the duty of the seller to package their product or service information for dissemination to the consumers by employing such relevant vehicle as promotional activities which is conveyed and executed through advertising. Effort is made to persuade buyers in order to act when they receive this information.

        Advertising is a basic tools of marketing most of the message In our media advertisement are through the magazines, radio, bill board, news paper, television are not merely for the sales of the advertised product, but equally to entertain, educate beside the provision of media useful and relevant information to such media and audience.

        In a developing country like Nigeria, the distribution of available goods and services depend on customers tearing habit. Advertising do often persuade people against their wish, unless they are gullible and unsophisticated.

        To some people advertising is regarded as an art, while others sees it as a science to this background, advertising unique combination of both variable. Advertising comprises the effective blending of the behavioural science such as anthropology sociology, psychology, etc then for communication arts, such as writing editing, drama, graphic, animation and photograph etc.

        Nevertheless, for a successful promotional activities advertising skill must be employed using words, pictures, slogans, jingles, colours, size and movement etc to entice the reader viewers, listeners or passer by to stop, look listen read develop interest be convinced and the taken action.

        The essential of this study is to evaluate the effect of advertising on consumer purchase decision of “Nestle Milo” hence this research work is to find out the extend to which those advertisement of Nestle Milo have succeeded in influence its consumer when making their buying decision   

STATEMENT OF THE PROBLEM

        In the country today, there are many food drinks, this means that the competition being witnessed in the market for beverage is very stiff just like in other market. Consequently, companies producing beverages and other products employ promotional tools in a bid to outdo their competitors. One of such tolls that could be used for this purpose is advertising.

        After taking a proper view of the beverage market, the researcher discovered that consumers preferred Nestle  Milo to any of its close substitutes. The researcher became curious and decided to know what is responsible for this.

        In a situation like this when the information needed about a things is lacking a study of this nature becomes imperative, hence the stud.  

        Therefore, the problem, of this research work put in the question is what is responsible for the consumers performance for Nestle Milo drink in the Nigerian beverage market.

RESEARCH OBJECTIVE

        The purpose of this study is to evaluate the impact of advertising on the consumption of “Nestle Milo” others are as follows:

1. To establish the extent to which advertisement have succeeded in influencing the buying and consumption of “Nestle  Milo”
2. To identify those other factors which influences consumer in making their buying decision apart from the various advertisement of Nestle Milo
3. To find out if the media advertisement of nestle Milo actually have the potentials for creating brand loyalty.

RESEARCH HYPOTHESIS

The following hypothesis were formulated

Ho: Media advertisement of Nestle food drink do not generate brand loyalty for the Milo amongst its diversified consumers

Hi:    media advertisement of nestle Milo feed drink generate brand loyalty for the Milo amongst diversified consumers

Ho:   media advertisement of nestle Milo food drink do not influence the buying and consumption habit of Nestle Milo consumers

Hi: media advertisement of nestle Milo influence the buying and consumption habit of nestle Milo consumers 

SCOPE OF THE STUDY

        The research work is limited to assessing and examine in details the impact of advertising on the consumer buying decision especially on nestle Milo, with particular reference to nestle Milo group of company’s.

        The scope of the study is limited to the consumer buying habit to enable the buying decisions of consumers of Nestle Milo in the process of making their choices amongst other brand. It  is limited to consumers in Auchi Edo State.

SIGNIFICANCE OF THE STUDY

        the research work is useful in the view of the researcher based on the exposure and also the management of nestle group of company’s the professions of advertising the field of mass communication on the interested members of the public and course, posterity, and to benefit from this study.

        In view of the massive competition amongst the various Milo industries from keen awareness and attention beside the huge amount of money being annually budgeting on advertising by Nestle group of company, this study would tremendously help to research in deciphering whether this heavy sum of money invested on advertising by nestle group of company’s Nigeria Plc, is worth while.

        In considering this research work form a scientific and empirical point of view it would aid those in the field of mass communication in knowing that most critics of advertising are them selves advertisers and indeed purchases of advertised goods and services.

DEFINITION OF ESSENTIAL TERMS

        In order to aid our understanding of the whole work, it is important that some terms used in this work should be defined such terms are defined below:

Product: Is a thing or substance produced to use or for consumption and that might satisfy want or need.

        Product can also be defined as anything they can be offered to a market to satisfy a want or need.

        Product can be physical goods, services, experience, events, persons, place or ideas.

Advertising: Is defined as any paid form of promoting publicly to increase sales.

        Advertising is a non personal communication through various media by business firms, non profit organization and individuals who are in some ways identified in the advertising message and who hope to communicate the members of a particular audience.

        Advertising can be define as a sponsor identified message regarding a product or organization that can be verbal or visual and is disseminated through one or more media

Message: can be defined as the symbol that advertises transmits to have audience to address for benefits purpose motivation, reason or for identification.

Appeal: can be defined as the motive use to create interest on a product or services and to stimulate a purchase.

Copy: this can be defined as a written documents prepared by an expert copy writer it is written or spoken materials of advertising communication and include the headlines, name and address of the advertiser as well as the main text of the message.

Advertising Medium: Can be defined as any means by which sales messages can be seen as a routs of channels through which the message are delivered to the target audience or consumers.

Brand Loyalty: It can be defined as a knowledge of the attributes of a particular product.

Consumer Behaviour: it can be defined as the behaviour that consumer display in searching for purchases, using evaluating and disposing of products, services and ideas which they expect will satisfy their need.

Purchases Decision: It can be defined as the process by which organization define their product/needs, for goods and services, identify and compare the supplier available to them negotiated and source of supply on some other ways arrived as agreed terms of trading, make contracts and place order and finally received the goods and services and play .

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