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Tuesday 23 August 2016

THE IMPACT OF ADVERTISING IN MOTIVATING CONSUMER BRAND PREFERENCE IN NIGERIA TELECOMMUNICATION INDUSTRY





CHAPTER 1
Introduction
BACKGROUND TO THE STUDY
Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. Advertising can be explained as a promotional strategy that serves as a very important tool that creates awareness in the mind of a potential consumer to patronize a product. To consumers, the role of advertising is to provide information efficiently and economically as possible to potential buyers. Closely related to the function of the information of the consumer is the belief that advertising promotes greater choice for the consumer.
Advertising involves a form of communication proposed to persuade an audience (viewers, readers or listeners) to buy or take some action upon products, ideas, or services. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. Commercial advertisers, as in the case of telecommunication sector, often intend to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers.
McDaniel, Lamb and Hair.Jr.  (2006) defines advertising as “any form of paid communication in which the sponsor or company is identified”. Traditional media such as Television, radio, newspapers, magazines, books, direct mail, billboards and transit cards (advertisements on buses and taxis and at bus stops) are most commonly used to transmit advertisements to consumers and almost all companies selling a good or service use some form of advertising, whether it be in the form of a multimillion-dollar campaign or a simple classified ad in a newspaper. One of the primary benefits of advertising is its ability to communicate to a large number of people at one time. Advertising reinforces positive attitudes towards brands, when consumers already have a favorable frame towards product brand, advertising often influence them positively. Also, when consumers are already loyal to a brand they tend to buy more of that brand when advertising and promotion is increased. Advertising has been defined simply as a form of communication through the media about products or ideas, a message that is paid for by an identified sponsor (Anyacho, 2007). 

Advertising is the action of calling public attention to something, especially by paid announcements. Any medium that can take a message from an organization to a potential consumer can be used for advertising. Of course, the most popular media are television, radio, the Internet and print, such as newspaper, magazines, etc. Sponsorships are agreements where a company pays an individual or organization to promote its products and services. Advertisements used in today's world are creative and innovative. Marketers have started thinking out of the box and are coming up with new ideas to create a better perception in minds of the consumers and impress them to buy their products. Nowadays there is a very special emphasis on the content of the advertisements. Advertising is content and content is advertising (Tech Dirt, 2008). There is no such thing as just 'advertising' anymore. It needs to have content that will attract the potential consumers towards it, make them contemplate upon it, change their opinions and eventually make them put forth purchase intent. The only way to capture the consumer's attention like this is to make the advertisement entertaining, interesting and relevant.
This reaearch will also focus on consumer brand preference, buying behavior in relation to advertising and telecommunication sector. Consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society". Consumer behavior is the study of when, why, how and where people do or do not buy a product. It deals with psychology, sociology and economics and attempts to understand the buyer decision making process both individually and in groups. Consumer Brand Preference is the measure of brand loyalty in which a consumer will choose a particular brand in presence of competing brands, but will accept substitutes if that brand is not available.
 According to Lane, Whitehill King and Reichart (1999) explained that Consumer behavior is need driven and this means that a purchase is the culmination of a process that begins with the recognition that some problem can be solved by a particular product or service. The problem may be Utilitarian or Hedonistic, for instance we buy a new phone to communicate to business partners, family, friends and love ones or to impress the people around us. To a large degree, our purchases have elements of both and consumers search for products that satisfy their needs and wants at both levels.
Jefkins (1994:15) “Advertising is not only about providing information, it must be in such an interesting, original and persuasive way that the consumer is urged to take action.” This means that advertising goes beyond providing details for a particular product, after receiving information on the product they should be persuaded to get the product as a result of the awareness that has been created. Advertising contributes to the launching of a new product, it increases consumer brand loyalty for existing brands and maintains the sales of mature brands. This means that advertising creates awareness of useful products so that businesses can build shareholder value by profitably moving inventory.
While writing on advertising nature and scope, Etzel et al. (1997) succinctly capture all advertising as having four features:
(i) A verbal and or visual message
(ii) A sponsor who is identified
(iii) Delivery through one or more media
(iv) Payment by the sponsor to the mediacarrying the message.
Summarizing the above, they conclude that “advertising then consist of all the activities involved in presenting to an audience a nonpersonal, sponsor-identified, paid-for message about a product or organization”.
When competition is intense and the consumers are faced with brand choice in the market, it becomes essential for the manufacturers to understand the major factors that can attract the attention of buyers to his own brand. These then form the foundation for marketing planning and action.
There is need to understand that to create brand preference advertisement is a very important factor and huge amount of money and resources are spent on advertisements from time to time. Nevertheless there are obstacles that may affect consumer brand selection. There is a great relationship between consumers’ exposure to advertising and their possibility to buy the ones advertised. In the world of today, creating a brand and making it of great value requires a long process that requires a lot of planning. Branding does not only refer to the name of a firm. It is an existing name for a new product, an advertising campaign, marketing logo. Brand are key players in developing customers life and strengthening the economical condition of companies.
Brand preference means is when you choose a specific company's product or service when you have other, equally-priced and available options. It is a reflection of customer loyalty, successful marketing tactics, and brand strengths.
According to Business Dictionary Brand Preference can be defined as Measure of brand loyalty in which a consumer will choose a particular brand in presence of competing brands, but will accept substitutes if that brand is not available.
Consumer Preference is a marketing term meaning a consumer likes one thing over another. The role of advertising in this process is to provide information as efficiently and economically as possible to potential buyers. Advertising is particularly proficient in providing information and introducing consumers to new products and services. The perception of preference has been considered in different disciplines such as economists, psychologists, sociology. However there is no commonly agreed definition of preference among these disciplines. For example, economists believe that preferences are exogenous, stable, and known with adequate precision and are revealed through choice behavior. The economic view of preference had been criticised for assuming that preferences are stable and endogenous. An individual’s preferences are not stable and can be endogenous or exogenous. In marketing literature, the word preference means the desirability or choice of an alternative.  Preferences are above all behavioural tendencies (Zajonc and Markus, 1982). Brand preference is defined variously as the consumer’s predispositions toward a brand that varies depending on the salient beliefs that are activated at a given time; the consumer biasness toward a certain brand; the extent to which a consumer favors one brand over another.

TELECOMMUNICATION INDUSTRY IN NIGERIA
Telecommunication is the transmission of signs, signals, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems, as defined by the International Telecommunication Union (ITU).
Telecommunication occurs when the exchange of information between communication participants includes the use of technology. It is transmitted either electrically over physical media, such as cables, or via electromagnetic radiation.  Such transmission paths are often divided into communication channels which afford the advantages of multiplexing. The term is often used in its plural form, telecommunications, because it involves many different technologies.
Deregulation of the mobile phone market has led to the introduction of Global System for Mobile Communication (GSM) network providers operating on the 900/1800 MHz spectrum, MTN Nigeria, Airtel, Globacom, and Etisalat. Use of cell-phones has soared, and has mostly replaced the unreliable fixed line services of Nigerian Telecommunications Limited (NITEL). With the expiration of the exclusivity period of the main GSM network providers, Nigeria's telecom regulator, the Nigerian Communications Commission (NCC), introduced the Unified Licensing Regime. It is hoped that telcos with unified licences will be able to provide fixed and mobile telephony and Internet access as well as any other communications service they choose to offer. In March 2011 the NCC started registering SIM cards. An October 2011 estimate placed the number of mobile phones at about 88 million, with most people having more than one cellphone.
The introduction of mobile telecommunication in Nigeria in 2001 represents an era in the evolution of the telecommunication industry in the country. Telecommunication makes it possible to carry out multiple tasks that was not possible with the use of analogue phones.
Akpabio (2003:132-137) analyse the mobile phone from the point of the capacity for ownership by even poor people. In his perspective, during the pre-GSM regime of analogue landline telephones, Nigeria perhaps ranked lowest in telephone ownership. He submits that overwhelming majority of citizens resorted to business centers or phone booths which were few and far between. These, he said, were also marred by long queues, general disorderliness and frustration. This can be reconciled with the observation of cost-effectiveness over which Shoki and Ufuophu-Biri (2007:182) again favour the smart mobile phone piece.

OBJECTIVE OF STUDY
The following are the objectives for the this study
                                i.            To find out the extent at which Etisalat adverts can motivate consumer brand preference.
                              ii.            To determine if Etisalat adverts influence their choice of network.
                            iii.            To examine the impact Etisalat adverts have on existing and prospective customers.




RESEARCH QUESTIONS
                                i.            To what extent can Etisalat adverts motivate consumer brand preference?
                              ii.            What is the influence of Etisalat adverts on choice of network?
                            iii.            What impacts does Etisalat adverts have on existing and prospective customers?
RESEARCH HYPOTHESIS
The hypothesis formulated to aid the study are given as follows
H1: Etisalat adverts does not motivate consumer brand preference.
H2: Etisalat adverts does not influence choice of network.
H3: Etisalt adverts does not have impact on existing and prospective customers
SIGNIFICANCE OF THE STUDY
This study will provide statistical information to the impact advertising plays in motivating brand preference for Etisalat network; It will make companies and manufacturers know the role advertising plays in making consumers to prefer their brand to other brand in the market, It  will help consumers know the level at which adverts can create awareness and influence consumers in patronizing their products or services, It will help companies and manufacturers know how consumers view their products and how consumers recall Etisalat adverts.
To the media professionals and advertising practitioners, it will help them know the areas they need to improve and focus on when advertising for a product or service. It will help them know or consider the target market to be reached as well as the socio economic and demographic characteristics of consumers.
It will help companies and organizations analyze their approaches when they want to advertise a product so as to make sure that the adverts has a very strong effect that can motivate people to chose and keep patronizing a particular brand.
To media scholars, this study will provide or add adequate literature that dwells on the significant roles that advertising plays in making people know about a product and also patronize these products. Also the huge impact advertising has in motivating brand preference. This study will also provide alphabetical meaning to the issues that surround Etisalat network.

SCOPE OF STUDY
This study critically examines the impact advertising have in motivating consumer brand preference of Etisalat Network. Other telecommunication network will be excluded such as MTN, Airtel and Glo Mobile. This study centers on the view of the Undergraduates students of University of Ilorin.

OPERATIONAL DEFINITIONS
1.      Impact
A significant or strong influence, a strog effect of impression
2.      Advertising
 It can be defined as a paid non personal communication of information about products or  ideas by an identified sponsor through the mass media in an effort to persuade or influence behavior.
3.      Motivating
To be the motive of something or someone, to cause or stimulate to act, to be the underlying cause of an action of a certain kind.
4.      Consumer
A consumer can be defined as an  individual who buys products or services for personal use and not for manufacture or resale. A consumer is also someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. In this study is either someone using Etisalat network or a potential consumer.
5.      Brand
A unique design, sign, symbol, words or a combination of these employed in creating an image that identifies a product and differentiates it from its competitors. It can also be defined as a product or service that is publicly distinguished from other products, services or concepts so that it can be easily communicated and usually marketed.
6.      Preference
A liking for one alternative over another or others. It can also mean the selecting of something over another or others.
7.      Network(s)
This refers to the various telecommunication companies operating GSM services in Nigeria which are Globacom, MTN, Airtel etc.
8.      Telecommunication
The exchange of information over significant distances by electronic means.

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