The Influence of Advertisement on Consumer Buying Behaviour,the case of Biopharma Cosmetic product in Douala

Project Details

Department
Management
Project ID
MGT05
Price
5000XAF
International: $20
No of pages
60
Instruments/method
Quantitative method
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 BIOPHARMA cosmetics products. Specifically, the study aimed to identify media of advertising used to advertise BIOPHARMA Products determine ways in which advertisement influence purchasing behaviour and establish how different advertisements influence consumer’s behaviour.

The study was conducted Douala. Both, primary and secondary data collection methods were used to collect data. Primary data were collected with the use of questionnaires and interview guides, as well as personal observation. Secondary data collection involved the perusal of various documents. The study used case study research design and comprised a sample of 100 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 desire to purchase the products. BIOPHARMA uses event, word of mouth, magazine, Facebook, DVD, trade fair, T Shirt and Website advertising. Advertisements used by BIOPHARMA to promote cosmetics products influences consumer buying behaviour by providing them with information about product benefits, price, quality, ingredients (materials of which the product is made of), quality, product quantity, product testimonial, product packaging, product name and product colour. The advertisements create awareness of the products and attracts more buyers. The researcher recommends that the company should create advertisements in Cameroon and Douala language, create advertisements that reflect the local situation and ensure that advertisements should convey direct information about the product rather than to showing glamour and exaggeration. Also, advertisements should offer more information about the benefits of the product.               

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study          

The use of advertisements has significantly increased in the 20th Century as industrialization expanded the supply of manufactured products. However, not many businesses practiced advertising at the time. During the late 80s advertisements were fairly limited to television, radio, billboards and newspapers. In the modern times, businesses are leaning towards Digital Advertising. Companies are so focused in social media and mobile advertisements that they may take over Television advertisement very soon (Sharma, 2009).

 

Advertising is all about mass publicity of products. Advertising involves creating awareness of product’s uses and their benefits to consumers. By doing this, it makes a product to be available to those who want it and this satisfies the needs of the advertiser; increasing sales. According to Cohen, advertising is a business activity that employs creative techniques to design persuasive communication in mass media that promote ideas, goods, and services in a manner consistent with the achievement of the advertiser‘s objective, the delivery of consumer satisfaction and the development of social and economic welfare. (Cohen, 1988)

 

From Cohen’s definition, it can be found that advertising satisfies three objectives; to increase sales of the firms, to guarantee consumers a great deal of service and finally to ensure the social and economic welfare of society. Advertising can be done through various media such as; radio and television, billboards, magazines and newspapers and websites (Cohen, 1988). Other factors that influence one‘s taste and preference for a good are psychological and environmental. Taste and preference for a good change overtime. Thus, advertisements play a role in influencing taste and preference of consumers’ choice. Consumers are known to be rational with regard to their purchases, wanting to maximize their satisfaction when it comes to consumer goods (Sharma, 2009).

 

The term consumer behavior is defined as the behavior that consumer display in searching for purchasing, using, evaluating and disposing of product and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend available resources (time, money, effort) on consumption related items (Solomon, 1994). Consumer behavior includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how to evaluate it after the purchase and the impact of such evaluation fount u re, and how they dispose of it. In other words, consumer behavior is behavior of individuals in regards to acquiring, using, and disposing of products, services, ideas or experiences (Loudon, 1988).

 

Advertising has huge stimulating influence on purchasing behavior of the consumers. Mostly, advertising are more effective on products that have intrinsic qualities. Qualities are not known at the time of purchase and it takes one to discover the qualities upon using the product. And, when there is a substantial chance of differentiating a product, it best suits to advertise on that product (Schiffman, 1993). A consumer will therefore not purchase a commodity whose price is above the additional satisfaction that he derives from the good. How much of a good demanded, depends on the satisfaction the consumer gains from spending extra money on the good. Rational consumers will spend on a good till their gains equal the cost they pay for the product (Schiffman, 1993).

 

When there is a strong emotional purchasing motive such as to product health or enhance social position, it pays to advertise on such a product. These conditions make the demand for the product more inelastic. The more emotions consumer attach to a product, they more they tend to be insensitive to its price. This is of importance to firm’s product as they can earn high sales in pricing their products (Borden, 1942). In the absence of advertising, consumers may not be aware of the product and its potential to satisfy their needs and desires. According to ( Kotler and Keller ,2006) advertisings mix consists of eight modes of advertising which are; personal selling, direct marketing, advertising, sales promotion and exhibitions, public relations and publicity, events and experience, interactive marketing, and word of mouth.

 

One form of advertising is personal selling. The Relevance of personal selling to this study lies on the role of face-to-face interactions in marketing of tourism products. This involves face-to-face interactions with prospective buyers for the purpose of selling a product or service. These days, personal selling is considered to be the most effective tool as it involves personal interaction, hence feedback is received immediately  (Kotler and Keller,2006). However, personal selling suffers from a few drawbacks i.e. it is the most expensive tool of promotion. Secondly, it requires too much dependence on sales force. If the organization is using a pull strategy to sell the product a sales force will be required to make sure that retail outlets are looked after well, that they have enough stock, are trained well so they can push the product onto the consumer (Kotler and Keller, 2006).

 

Another form of advertising is direct advertising. According to (Kotler and Keller, 2006) direct advertising is advertising which communicates directly with customers and prospects. The merits of direct marketing is that it reaches a larger number of people, the message can be repeated, its cost is not high, and with the development of art and graphics, statements can be transformed into forceful messages.

 

Advertising can be categorized into above the line advertising and below the line advertising. According to (Kotler and Keller,2006) there is above the line advertising is advertising placed in TV, radio, newspapers and other advertising channels in which the advertiser pays an advertising agency to place the ad. Below the line advertising is based on advertising via direct mail, sponsorship, merchandising, public relations, trade show and personal selling. A variety of short-term incentives to encourage trial or purchase of a product. (Kotler and Keller, 2009). The aim of sales promotion is to increase consumer demand, stimulate market demand or improve product availability. The tactics used for this include; coupons, point of sales, packaging promotion, web coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows and trade-ins.

 

(Kotler and Keller, 2009) explained it as variety of programs designed to promote or protect a company’s image or its individual product. For example, British Airways has recently invested in changing its identity by redesigning its aircraft livery. The change from the use of a corporate color scheme and national image on the aircraft to a far more international image reflects the company’s global ambitions (Pender, 2009). Company sponsored activities and programs designed to create daily or special brand related interactions (Kotler and Keller, 2009). Sponsorship is about providing money to an event, in turn the product or company is acknowledged for doing so. Sponsorship helps the company improve its image and public relations within the market and usually the company attempts to sponsor events that mirrors the image they are trying to aim for.

 

Therefore the goal of this research was to find if consumer buying behavior is a result of advertisements made on the cosmetics products. As stated previously, advertising affect products and are believed to have an intrinsic quality that is not known at the time of purchase .One of such product are cosmetics. 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 increase in product 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 cosmetics companies do advertise their products while they know the increase in product and sales is attributed to other factors and no longer advertisements.

 

Cosmetics 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 same purposes. Therefore, this study aimed to find out the role of advertising in the consumer buying behaviour of cosmetics products specifically Biopharma cosmetic products.

 

1.3 Objective of the Study

The main objective of this study was to establish the influence of advertising on consumer buying behaviour of Biopharma cosmetics products in Douala. The study was guided by the following specific objectives

  • To determine ways in which advertisement influence purchasing behaviour

  • To establish how different advertisements influence consumers behaviour

  • To identify media of advertising used to advertise Biopharma Products

 

1.4 Research Questions

The main research question for this study is what the influence of advertising on consumer buying behaviour is. Specific research questions include:

  • In which ways does advertising influence consumer buying behaviour?

  • Which elements of advertising influences consumer behaviour?

  • Which media of advertisement is used to advertise Biopharma Products?

 

1.5 Hypothesis of the Study

H0: Advertising has no significant influence on consumer buying behaviour of Biopharma cosmetics products in Douala

H1: Advertising has a significant influence on consumer buying behaviour of Biopharma cosmetics products in Douala

1.6 Significance of the Study

The findings of the study benefitted cosmetics companies, specifically, Biopharma company by helping them to understand the influence of advertising on consumer buying behaviour. This will facilitate their decision making process.

 

The study is also important most related businesses to sort out the various media of advertisements that can be used to advertise cosmetics products, ways in which advertisements influence consumer buying behavior and how advertisements influence consumer buying behavior.

To researchers, the findings of this study will aid them will evidence of literature review ans also to identify the gap in the literature and their value added to knowledge. It can be used as a point of reference for further analysis.

1.7 Scope of the Study

The study focused on how advertising influences consumer buying behaviour for cosmetic products offered by Biopharma Products. The study was conducted in Douala and involved 100 consumers of the Biopharma products and employees for the different branches.

1.8 Organization of the Study

The study consists of five chapters. Chapter one offers introduction, research problem, research objectives, research questions, hypothesis, scope of the study and organisation of the study. The second chapter offers literature review while the third chapter consists of methodologies that were used in the study.  The fourth chapter offers findings and subsequent justifications in analysis while the fifth and last chapter offers conclusion, recommendations and suggested areas of further study.

 

 

                                               

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