The effects of advertising on consumers brand preference

Project Details

Department
Marketing
Project ID
MKG04
Price
5000XAF
International: $20
No of pages
55
Instruments/method
Quantitative
Reference
yes
Analytical tool
Descriptive statistics
Format
 MS Word & PDF
Chapters
1-5

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ABSTRACT

This study aimed to establish the influence of advertising on consumer buying behaviour by focusing on King Chris Graphics products. Specifically, the study aimed to identify media of advertising used to advertise King Chris Graphics products, determine ways in which advertisement influences purchasing behaviour and establish how different advertisements influence consumer’s behaviour.

The study was conducted in Buea and primary data were collected with the use of questionnaires. The study used a case study research design and comprised a sample of 30 respondents.

From the findings of the study, the researcher concludes that advertising plays a very significant role in influencing consumers buying behaviour by providing attracting their attention, arousing their interest, creating a desire to purchase the products.

King Chris Graphics uses an event, word of mouth, Facebook, T-Shirts and other social media advertising. It was recommended that King Chris Graphics should focus more on advertising its products through the means currently used so as to continue increasing consumer buying behaviour.

Keywords: Advertisement, Consumer buying behaviour.

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Advertising had been a subject discussed over centuries ago, but prior to the 20th Century, this subject was not as important as it seems now. According to Roberts J. (1987)

The reason being that, in the 19th century, economist were busy trying to develop the theory of perfectly competitive markets, this theory assumed that, there was perfect information in the market and that, consumers had fixed preference for their products which were homogenous in nature.

It was then thought of as a waste of resource and an increase in the cost of production for one to advertise on products because consumers were not in any way going to respond to that. The advancement in transportation and technology, made producers rethink their decision to improve their capacity and thus, ensure publicity of their products (Roberts, J. 1987)

After these happenings, advertising then became an important area for an economist to research into. An early reflection was given by (Alfred Marshall 1890, 1919). In his works, “Principles of Economics” and “Industry and Trade”. He marks out two roles played by advertising.

To him, advertising might be useful in providing information to consumers which will help them satisfy their wants. Chamberlin (1933) in his work “The Theory of Monopolistic Competition” came up with new ways of looking at advertising.

He modelled the expenditure of a firm as a “selling cost” that expands a firm’s demand for a differentiated product. In his work, he describes a market structure in which there are many firms producing and selling similar but not identical products.

In this market, (Chamberlin, 1933) believes that advertising may provide consumers with information about their wants but also adds that, it can be persuasive and alter one’s demand for another.

Advertising when informative makes consumers responsive to price changes and thus increases the demand elasticity for the product but a persuasive advert will create brand loyalty making the demand for a good inelastic (Bagwell, 2011).

Chamberlin (1933) then concluded that the effects of advertising cannot be determined by theory alone, thus where a firm’s demand curve is tangential to its U-shaped average cost of production and selling, but by also considering the extent to which advertising is whether informative or persuasive and also whether scale economies exist (Bagwell, 2011).

After this insight by Chamberlin (1933), there came into existence three views of advertising; persuasive, informative and complementary.

The persuasive view developed by Robinson and later advanced by (Braithwaite, 1928), and empirically supported by Bain (1956) and Comanor and Wilson (1974) hold that, advertising affects one’s demand and it is capable of ensuring brand loyalty.

This view adds that advertising makes the demand for a product inelastic and thus ensures an increase in the price of the product and this effect might lessen as a result of scale economies. The view also adds that consumers are unwilling to try new products especially those of unknown quality and this may deter the entry of new producers.

These scholars agree that this view of advertising will only work in scale economies.

The informative view of advertising, propagated by Ozga (1960) holds that advertising serves to inform consumers about a product.

They add that advertising increases the demand elasticity for a product and this happens because, it is believed by these scholars that, as information of a product is given, it is assumed the product is of high quality and this can even increase the demand for products.

There is the complementary view of advertising which is developed by Stigler and Becker, (1977), this view believes that advertising influences consumers by attaching a complementary influence in the consumer’s utility function (Bagwell, 2001). These views make us understand the different phases through which advertising has gone through.

1.2 Statement of the Problem

Advertising has been a subject for debate either on one pretext or another for decades at the beginning of the 19th Century. People showed little interest but it later became a fertile topic for research at the turn of the 19th Century (Sharma, 2009).

The reason people lost interest was the fact that the role of advertisements was falling apart due to the fact that most increases in production and sales, especially; cosmetics products had been attributed to other factors like taste, long term use of products and users unwillingness to switch products (Sundarsan, 2007).

The falling role raised numerous questions which became the problem of this study.

The researcher, therefore, intended to get answers as to how and why graphic design companies do advertise their products while they know the increase in product and sales is attributed to other factors and no longer advertisements. King Chris Graphics products were considered because they satisfy the conditions of commodities on which they are effective to advertise.

There are a lot of cosmetics products that are differentiated but serve the same purpose. Therefore, this study aimed to find out the role of advertising in the consumer buying behaviour of graphic design products specifically King Chris Graphics products with an emphasis on its users.

1.3     Research Questions

The study was guided by the following research questions

  • Which media of advertisement is used to advertise Products of King Chris Graphics?
  • In which ways does advertising influence consumer buying behaviour?
  • How do elements of advertising influence consumer behaviour?

1.4     General Objective of the Study

The general objective of this study was to establish the influence of advertising on consumer buying behaviour by focusing on King Chris Graphics.

1.4.1  Specific Objectives of the Study

The study was guided by the following specific objectives

  • To identify media of advertising used to advertise King Chris Graphics Products
  • To determine ways in which advertisement influence purchasing behaviour
  • To establish how different advertisements influence consumers behaviour
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