ENEMS MICROSYSTEMS RESEARCH SPOT: IMPACTS OF ADVERTISING ON CONSUMERS PURCHASING DECISION IN UNILEVER NIGERIA PLC

IMPACTS OF ADVERTISING ON CONSUMERS PURCHASING DECISION IN UNILEVER NIGERIA PLC

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Advertising is defined as “Any paid form of non-personal presentation & promotions of idea, goods, or services by an identified sponsor.” (Kotler, 2013) Advertising plays a vital role in shaping dreams and helping customers in taking conscious product and brand decisions. Through advertisement the impact can reach a wider audience, and the main motive of advertising is to inform/ persuade / convince / remind the customers about the product/services. Advertising among competing brands has seen to be rapidly increasing and has made consumers more knowledgeable about several products and services in the market. Advertising has evolved from the local stage to an international level. Now corporations are looking outside their own country for new customers. Most of the adverts use appealing images and persuasive words to convince individual’s perception about the product. New ideas and innovative ways attract customers to buy the product and remember the brands. Advertisements have a major role in influencing customers’ purchase intention. Advertisement with endorsements creates easy remembrance for the customer’s for the advertised product. The customer often tends to associate the brand with the celebrity and can easily register the brand in their mind.

Companies use advertising to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it (Morden, 2011). The use of advertising to influence the consumers is increasing year by year. Marketers believe that advertising creates or augments the perceived degree of differentiation among brands. This will increase brand “loyalty” which, in turn, will reduce demand elasticities, increase markups of price over marginal cost, increase barriers to entry and reduce consumer welfare (Bain, 2016; Comanor and Wilson, 2014). The specialty of advertising is that it is capable of generating the need for a product which otherwise may not be felt by the consumers.

According to a research “Impact of Promotional Activities on Consumer Buying Behavior: A Study of Cosmetic Industry” that customer behavior study is based on the consumer buying behavior. The consumer plays three roles: role of user, payer and buyer. There is a positive relationship between Relevant News and pleasure, indicating that relevant news as a strong factor in inducing positive emotional responses.

According to a research on “Consumers’ Perception on Online Shopping “(Shanthi, 2015) it’s mostly the youngsters who are attached to online shopping whereas the senior people still prefer the traditional methods of buying the product in comparison with the young adults. However, there is shift in focus where middle age people are showing interest towards online shopping as well.

The opinion on how to create impact on consumers’ purchasing decision through advertisements is not universally the same. For example, Holbrook (2013) argues that advertising must reflect consumer values because otherwise consumers will not accept the counter-cultural values presented. Pollay (2016) disagrees, arguing that advertising cannot reflect values of society’s culture as a whole. He says that advertising instead reflects only specific values or lifestyles within the broader value structure. It indicates from the review of literature that there are positive as well as negative influences on consumers from advertisements.

1.2 Statement of the Problem

Companies are focusing more on advertising in recent years to communicate the target market effectively. The fast changing competition scenario in almost all the business domains is forcing the companies to strengthen their marketing operations to establish and continue with the customer connectivity. Advertisements thus assumed greater significance particularly in consumer goods and services marketing. The marketers are leaving no stone unturned to have communication contact with customers and to influence their purchase behavior and purchase decision process.

The issues like, how advertisements impact the behavior of consumers and their purchase decision process? What are the perceptions of the consumers on quality of the advertisements from individual and societal perspective, are need to be examined by the marketers in formulating advertising strategy. An attempt is made in this paper to find answers to these issues with the support of empirical data and information.

Some advertising have been promoting indecent behavior among youths by advertising product that are inimical to the well-being of the societies.

1.3 Objectives of the Study

The main objective of the study is to assess in a comparative manner advertisement and consumer purchasing decision with a focus on Unilever Nigeria Plc.

The study would specifically attempt to achieve the following objectives:

To find out whether there is a relationship between advertising and consumer purchasing decision.
To determine the effect of advertising on consumer purchasing decision.

1.4 Research Questions

What is the relationship between advertising and consumer purchasing decision?
What is the effect of advertising on consumer purchasing decision?

1.5 Research Hypotheses

The working hypothesis for this work will be that

Hypothesis One

H_O: There is no relationship between advertising and consumer purchasing decision.

H_I: There is a relationship between advertising and consumer purchasing decision.

Hypothesis Two

H_O: Advertising has no effect on consumer purchasing decision.

H_I: Advertising has effect on consumer purchasing decision.

1.6 Scope and Limitation of the Study

Although a lot need to be written on this research “the impacts of advertising on consumers purchasing decision” but however, the researcher intends to limit the scope of the study to Unilever Nigeria Plc Kaduna state.

A study of this nature is by no means an easy task in the course of carrying this survey; the researchers face a number of constraints which include time, lack of relevant literature or reading material, lack of Full Corporation by the interviewees and most of all the financial constraints.

1.7 Significance of the Study

The significant of the study cannot be underestimated. It is significant because data generated from the study is sufficient to expand further fields of knowledge of this topic from many other dimensions. The study also present sufficient challenges to academics to increase their interest in the field.

The findings of the study will be beneficial in the following ways:

Advertising firm will be able to meet consumer’s demand, as its personnel service strategies has been translated into specific policies and practices.

This research will help academic continuity and strengthen the existing knowledge and also contributing to advertising on consumers purchasing decision. The research therefore will help to ascertain if there is linkage between advertising and purchasing decision.

1.8 Background of Unilever Nigeria Plc

Unilever Nigeria Plc (formerly Lever Brother Nigeria Plc RC 113) is a leading company on the industrial sector. It involved the manufacturing and marketing of non-soapy detergents, soap, skin creams, toothpaste, squash drinks, edible oil and fats tea and coffee as well as range of petroleum Jellies and other personal product.

The company first came into existence in Nigeria in (1923), when it was incorporated as a private company under the name lever Brother (W.A) Limited in 1924, the name was changed to West African Soap Company limited in 1955. When the company went public in 1973. it subsequently change its name to Lever Brother Nigeria limited and on compliance with the company and Allied Matters decree 1990, the company substituted The Word “Limited” In its names with “Plc” to become lever Brother Nigeria Plc.

In accordance with the Nigeria Enterprises promotion Act of 1972 .and 1977, 60 percent of the company’s equity is help by Nigeria citizens institution while the remaining 40 percent is held by Unilever oversea holding limited. Lipton Tea Company limited and chase brought pond’s international limited.

Lever Brother Nigeria Plc strengthened its foothold in the foods and drink business by merger with Lipton Nigeria Ltd in July 1983 and into personal products business by merging with chase brought products industries which are located in Apapa the Oldest, Aba factory, build in 1957,producing detergents, Agbara, a food factory which was commissioned in 1983 and Oregun, the latest after the merger of Unilever Nigeria limited, with lever brother Nigeria plc, and this is where the manufacture of our personal product is consolidated. The business is start up by producing bath soaps using palm oil on the Apapa factory which was commission able on 1924.Eversince expansion has taken place to includes the production of international toilet soap brands Lux, Astral and Asepsis. Agbara factory in Ogun state, which is the third factory are for the manufacturing of edible products. The factory produce blue band and planter margarines, tree top squash drink ,industrial oils and facts .(three master line range of products as well as Aroyo and covo cooking oils. this factory also refines vegetable oil for third parties in December 1989, the factory stated producing a food seasoning Royco.

The Lipton tea factory, formerly in Burma road, Apapa has been fully relocated in Agbara in order to consolidate the production of our food products in one location. The master line bakery for new product development with specific emphasis on the use of local raw material. Chase brought product division formerly at Isolo has also now been relocated to Apapa, manufacturing the popular Vaseline petroleum jelly and ponds range of skin and hair care products.

1.9 Definition of Relevant Terms

Advertisement: – Any form of non-personal communication through the mass media that is paid for by an identified sponsor.

Advertising: – A process, programmed, sales activities necessary to prepare the message and get it to the intended market or consumers.

Assessment: The act of making a judgment about something.

Buying behaviour: Purchase decision making pattern that is a complex amalgam of needs and desires, and is influenced by factors such as the consumer’s (1) societal role (parent, spouse, worker, etc.), (2) social and cultural environment and norms, and (3) aspirations and inhibitions.

Consumer: A consumer is a person or organization that uses economic services or commodities. In economic systems consumers are utilities expressed in the decision to trade or not.

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ENEMS MICROSYSTEMS RESEARCH SPOT

Saturday 18 March 2023

IMPACTS OF ADVERTISING ON CONSUMERS PURCHASING DECISION IN UNILEVER NIGERIA PLC

IMPACTS OF ADVERTISING ON CONSUMERS PURCHASING DECISION IN UNILEVER NIGERIA PLC

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