THE IMPACT OF ADVERTISING ON CONSUMERS BUYING BEHAVIOUR

Abstract

This study examined the impact of advertising on consumer buying behavior in Enugu State Nigeria. Most organizations in Nigeria pay lukewarm attitude in advertising their products and services through effective advertising medium, and this have adverse effect on their output in terms of sales. They do not see the need of spending part of their budget in advertisement to promote their products and services and influence consumer buying behavior. With great increase in technological advancement, effective advertising has become extremely important to be able to have competitive advantage, hence the need for this study. This study adopted a survey research design. It involves collection of data from respondents through questionnaire to test hypotheses. Multiple regression technique was used to test hypotheses. The research findings show that a significant and positive relationship lie between the independent variables emotional response, environmental response towards brand, brand awareness and sensory stimulated advertising and dependent variable consumer buying behavior. All the independent variables have statistically significant t-ratio and have positive relationship with consumer buying behavior. This result is consistent with the literature. We recommend that for effective advertising to take place, the target audience must be extensively reached to know their consumption pattern and behavior toward products and services. And that effort should be directed more on emotional related advertising, since consumers patronage are highly induced through their emotion.

Keywords: Advertising, Consumer buying behavior, Target audience, emotional response, environmental response, consumer.

Introduction

The impact of mass communication is felt all over the globe through advertising, newspaper, internet, music, films, videos, magazine, movies and billboards. Among these media, advertising is the one that has lasting impact on viewers mind, since its exposure is much broader (Katke, 2007). Advertising is the main source of communication tool between the producer and the consumer. Advertising is a subset of promotion mix and is one of the 4ps in the marketing mix which comprise product, price, place and promotion Advertising is a promotion strategy which serves as a major tool in creating product awareness in the mind of the consumer to take purchasing decision. Advertising, sales promotion and public relations are mass communications tools used by marketers. Advertising through mass media influences audience, but television has mass reach and is the strongest medium of advertising. Advertising can influence the attitude of individual behavior, life style in the long run as well as the culture of the country (Latif & Abideen, 2011). A company can enhance the brand of their product by investing in promotional activities in order to compete in a consumer market that is dominated through advertising (Hussainy, Riaz, Kazi & Herani, 2008). The primary aim of advertiser is to reach consumers and influence their awareness, attitude and buying behavior. Their major preoccupation is to keep individuals interest in their product through spending on advertising. They also need to understand what influence customers behavior. Advertising has the potential to contribute to brand choice of consumers (Latif & Abideen, 2011). It impacts on consumer behavior. Advertising impact on brands change frequently in peoples memory. Brand memories consist of those associations that are related to brand name in consumer’s mind. These brand cognition influence consideration, evaluation and final purchase (Romaniuk & Sharp,2003). Consumer behavior should be analyzed for effective advertising, to know why consumers behave in particular ways under certain circumstances. And also to know the factors that influence consumer behavior, especially the economic, social and psychological aspects (Ayanwale, Alimi & Ayabinpe, 2005). Advertising also creates advertisement which carry emotional bond with consumers. Positive emotional appeals also provide a strong brand cue and stimulate category based processing (Abideen & Latif, 2011) With successful categorization, the effect and beliefs associated with this category in memory are translated to the objective itself. Consumers try to categorize the brand association with the existing memory, when thousand of products are faced by them and might reposition memories to a brand image and perception towards new products. In this way, they can categorize latest information in particular brand and shore accordingly in their memory. Some organizations do not attach importance in advertising their products and this have adverse effect on their output in terms of sales of product. Others use different advertising media like television, internet (face book; email) newspaper, billboard, magazine etc to convey their product message to their target audience. Companies spend major part of their budget on advertising strategies to promote their products/services. These advertisement strategies influence consumer buying behavior (Abideen & Latiff, 2011)

Objectives of the study

This study attempt to determine the impact of advertising on consumer buying behaviors. In specific terms, the objective of the study are to:

1.  identify the effect of emotional response on consumers buying behavior.
2. ascertain the effect of environmental response towards brand on consumer buying behavior
3. determine the effect of Brand awareness on consumer buying behavior
4.  identify the effect of sensory stimulated advertising on consumer buying behavior.

Statement of Hypotheses

The following null hypotheses were formulated to guide this study Ho1: Emotional response does not positively affect consumer buying behavior Ho2: Environmental response towards brand does not positively affect consumer buying behavior Ho3: Brand awareness does not positively affect consumer buying behavior Ho4: Sensory stimulated advertising does not positively affect consumer buying behavior

Significance of the Study

The study would be of great benefit to the following stakeholders

• Companies/Organizations: The study would help organizations to find possible measures/strategies to advertise their products and services. It would be of great interest and valuable to marketing managers and help them to sell their products/services and make reasonable profits to the company/organization.
• Consumers: It will create brand awareness to motivate them emotionally to buy the product.

Scope of the Study

The study examined the impact of product advertising on consumer buying behaviours. The scope of this study would delimit all consumers in Enugu metropolis. The consumers are located at five popular existing markets in the metropolis (which are Ogbete market, twenty super markets including Shoprite and ten high traffic points across the metropolis. Therefore, the population of the study cut across the markets in Enugu State and environs. The study adopted a survey research design through the administration of structured questionnaire raised on a five point likert scale to the sampled respondents for the study. However, the sample size of this study was determined by Taro Yamane statistical formula.

Limitations of the study

The population of consumers are not known. Since the exact number of consumers in the metropolis cannot be estimated as there are no existing data, the purposive sampling technique was used for sampling, which cannot be used to generalize result. In this sampling design, there is no probabilistic way to estimating the representativeness of the selected samples. Statistical Modeling Another challenge facing the study was statistical modeling of the determinants of the impact of advertising on consumer buying behavior. The modeling of the variables (emotional response, environmental response, Brand awareness and sensory stimulated advertising was so tedious for the researcher. Therefore the technical nature of the study also limits the study under investigation

LITERATURE REVIEW CONCEPTUAL REVIEW

Advertising: Advertising is a subset of promotion mix which is one of the 4 piece in the marketing mix, comprising product, price, place and promotion. Advertising is a promotional strategy used in creating product awareness in the minds of consumer to take purchasing decision (Latif & Abideen, 2011). It is a communication tool used by marketers. Advertising influences individual’s attitudes, behaviour and life style. It is one of major source of communication tool between the producer and the user of product. For a company product to be a well known brand, they must invest in their promotional activities especially advertising (Hussein et al, 2008). Latif and Abideen (2011) argued that advertising have the potential to contribute to brand choice among consumers. Advertising was defined by Arens (1996) as a communication process, marketing process, economic process, social process, a public relations process or an information and persuasion process. Dunn and Barban (1987) defined advertising as a paid, non-personal communication through various media by business firms, non-profit organizations and individuals who are in some way identified in the advertising message and who hope to inform persuade member of a particular audience. Morden, 1991 (as reported in Zainul-Abideen (2012) opined that advertising message is to establish a basic awareness of the product or service in the mind of the potential consumer and to build up knowledge about it. Advertising as a promotional strategy provides a major tool in creating product awareness and condition the mind of a potential consumer to decide finally on what to buy (Ayanwale et al, 2005; Adelear, Chang, Lanchndorfer, Lee & Morimoto, 2003) Advertising is a non-personal and paid form where ideas, concepts, products or services and information are promoted through media by an identified behavior (Ayanwale et al, 2005; Bovee, Thill; Dorel & Wood, 1995). Advertising by television enable message of advertising to reach wide variety of audience or consumers and is one of the best advertising medium especially of goods and services, organizations, idea etc. Consumer Buying Behaviour Consumer buying behaviour is defined as the mental, emotional and physical activities that people engage when selecting, purchasing using and disposing of products and services in order to satisfy need and desires (Schifman & Kanuk, 2009). It includes purchasing and other consumption related acitivites of people engaging in exchange process. Solomon, Bamossy, Askegaard and Hogg defined consumer behaviour as the study of the process involved when individuals or groups select, purchase, use, dispose of product, service, ideas or experiences to satisfy needs and desire. Consumer buying behaviour is affected by economic factors such as income expenditure pattern, price of products price of complementary products, substitute goods and elasticity of demand (Abraham, 1997; Kotler; Weng, Sanders & Armstrong 2001). It is also affected by psychological perception, attitudes and learning (Kotler et al, 2001). Consumer behaviour is affected by social and cultural factors that affects individuals buying decision but determines the kind of product to buy. (Arnould & Thompson, 2005); Perault, Jerome & Mccarthy, 2005)

Theoretical Review

Emotional Response One of the effective tools of integrated marketing communication that emotionally motivate consumers to buy products is advertising (Moore, 2004). The essence of advertising is to create brand awareness, Preference and selection of products or services. Attitudes towards the advert is the most influencing theory in marketing and advertising research. The attitudes that is formed towards advert help in influencing consumer’s attitudes toward brand until the purchasing intention (Goldsmith & Lafferty, 2002). Since the goal of advertising is to form positive attitude towards advertising and the brand, then a positive emotional response to an advert may be the best indicator of effective advertising (Goldsmith & Lafferty, 2002). That is the reason why the basic aim of advertising is to encourage people to buy product and create awareness (Bymolt, Claasen, & Brus, 1998). The consumer ability to recall the brand advert is another component of effective advertisement that creates emotional response (Goldsmith & Lafferty, 2002). The extent to which consumer make products related decisions depend on the relative importance of brand recall, which can lead to the brand awareness. (Goldsmith & Lafferly, 2002) Brand awareness help in ensuring recall advert, which has the competitive advantage over those brands that are not easily recalled. Positive attitudes towards advert have more ability to recall adverts than negative attitude towards brand (Goldsmith & Lafferty, 2002). Cue has been found suitable in different buying situation for recalling the brand advert and greater chance of brand to be retrieved of any buyer, when different attributes are attached to brand, which creates brand association (Romanuik & Sharp, 2004). The most effective tool in advertising is emotional advertising because it enable consumers give emotional response to product (Brassington & Petitt, 2001). Environmental Response Environmental response provides certain types of experience for consumers, which are used for promotion and selling products and services (Adelaar et al, 2003). Business offer consumers specific types of media experiences, which are used for setting the stage that promotes selling of related products or services (Adelaar et al, 2003). Special marketing research has attempted to explain the effects of different environmental condition like atmosphere in retailing stores, and background music at the time of purchasing. (Morris & Borne, 1998). Sense modalities such as sound, sight, and touch can affect user experience. The formation rate can affect user experience. The formation rate can affect user for gaining information for advertisement (Morris & Borne, 1998). The environmental psychological model depict these. The model is applicable to music, test lyrics, image and music video, which are strongly related to each other and are shown in advertisement. (Morris & Borne, 1998). Morris and Borne (1998) posits that environmental psychology model provides better concept of emotional response rather than traditional marketing research. The environmental psychology model proposes an environmental such as retailing store that produces an emotional state in an individual that can categorize into pleasure, arousal, dominance or buying situation (Adelaar et al, 2003). This model according to Adelaar et al, (2003) defines media which provides information that is represented by the combination of sound, sight and touch sources. It covers various areas of visual and verbal media messages, through which people gets information. The verbal and visual information affects consumers perception of the environmental stimuli (Adelaar et al, 2003).

Empirical Review

Kumar (2011) conducted a study on the impact of advertising on consumer buying behaviour with special reference to Nestle Limited in India. He found that advertising and sales promotion together with the image of the company influence the consumer buying decision. He also found that the quality and price of product also influence consumer purchase of a good Taylor and Weiserbs (1972) conducted a study on the relationship between advertising and expenditure and aggregate consumption in America. They found that there is a simultaneous relationship between advertising and consumption but not in a unidirectional. They concluded that advertising and consumption seem to work on each other. Sharma and Sharma (2009) conducted a study on the impact of advertising on consumer behaviour in India. They studied 134 companies using fixed effect model of panel data analysis. They found that besides advertising, factors like company’s brand, quality of the product and company’s reputation affect sales of a company. Ayanwale et al (2005) conducted a study on the impact of advertisement of Bournvita on consumer buying behaviour in Nigeria. They found that advertising has major influence on consumers likeliness for Bounvita food drink. Adelaar et al (2003) conducted a study on online compact discs shopping behaviour of consumers through emotional advertising in Asia. He found that impulse behaviour is preceded by consumer’s intention to buy impulsively the products. Associated chambers of commerce and Industry (2013) in India, conducted a study on the impact of advertising on consumer buying behaviours. They found that high increase in consumption of cosmetics goods as a result of advertising. They also found that men on average spend more on cosmetic products than their female counterparts and attributed this increase to awareness created by the product/ Ghulan, Javana, Burham and Ahmed (2012) conducted a study on the impact of advertrising on consumer buying behaviour in Pakistan. They examined the relationship between environmental response and consumer buying behaviour. They used 200 people in twin cities of Pakistan as their sample. They found that moderate relationship exists between the independent variables and the dependent variable. The result showed that consumers buy those brands from which they are emotionally attached. Nawazish and Ahmed (2015) conducted a study on the impact of advertising on consumer buying behaviour in Pakistan. They examined how emotional responses are generated, after watching effective advertisement they persuaded consumers purchasing behaviour. They used 300 sample subjects for this study. They found that the environmental response and sensory stimulated activities represented in the advertisement has influence and can even change the buying behaviour of consumers. They found that emotional and environmental responses have significant impact on consumer buying behaviours.

Theoretical Frame Work Traditional Attitude Theory

Consumer behavior is predictable from consumers attitude, when they want to purchase a brand of product. Attitude according to Smith and Swinyard (1983) as cited in Ghulan, Javana Burhan, Ahmed (2017) is acquired behavior disposition. Adelaar et al (2003) suggested that behavior is a result of emotional response, which is affected by three independent factors namely, pleasure arousal and dominance. Goldsmith and Lafferty (2002) argued that these appear when consumers watches an advertisement about the brand and then eventually willing to purchase it.

Methodology

A survey research design was used in this study to gather information or data from consumers in Enugu metropolis through questionnaire instrument. The population of the study comprised all consumers in Enugu metropolis. A non probability purposive sampling technique was used in this study due to various limitations. The consumers in Enugu metropolis is difficult to determine due to non availability of data. So the sample was based on non-probability data. 380 consumers in Enugu metropolis who came to markets and shops to buy products were sampled The markets visited and sampled were Ogbete market, Artisan Market, New Market, Abakpa Market, Uwani Market and Garki Market. The shopping centres visited and sampled were Shoprite, Roban Stores and other strategic points and traffic light points. The questionnaires were collected immediately it was filled by respondents to avoid loss of questionnaires. Properly filled questionnaires by respondents of secondary school level and above were used for analysis and they were 320. The questionnaire was made up of five point likert scale ranging from 1 (strongly disagree with the statement) to 5 (strongly agree with the statement). Each variable had four items/elements. The questionnaire was self development of items. Demographic data was part of the questionnaire. The validity and reliability of the questionnaire was measured using Cronbach’s Alpha. The reliability Coefficient was .79. The value of 0.79 was above 0.7 which is within the acceptable limit. This means that the data collected were valid and reliable for analysis. There are five variables in total in the model, where there are four independent variables and one dependent variable. As the data consists of single dependent variable and multiple independent variables, multiple regression analysis was deployed and SPSS 16.0 was used to generate results. Multiple regression technique was used to test the hypothesis, while descriptive statistics was used to calculate percentages and frequency table.

Validity and Reliability of Instrument Pilot Test

A pilot test was carried on 50 respondents before questionnaire distribution in other to collect their comments, ensure simplicity and understanding of the questionnaire, which helped in developing the questionnaire more efficiently. A favourable comment was obtained from the 50 respondents and the results of the pilot test ensured that the survey was understandable by the 50 respondents. The reliability analysis was conducted on Emotional response, Environmental response, Brand awareness and Sensory stimulated advertising. Table 3.1 showed the reliability analysis of the questionnaire, and the result showed that the reliability coefficient of the consumer ranged from 0.712 – 0.873. The reliability coefficient of the questionnaire was 0.787 . This means that the data collected were valid and reliable enough to be used for analysis. Walonick (1983) stated that the values above 0.7 are considered acceptable, and the value above 0.8 are preferable or good.

Model Specification

In order to identify the determinants of consumer buying behavior, a multiple regression model is used. The regression model used is specified as follows:
CBB =β0 + β₁ ER + β₂ ERTβ + β₃ BA + β₄ SSA + µ
Where
CBB = Consumer Buying Behaviour
Β₁ ER = Emotional Response
Β₂ ERTB = Environmental Response Towards Brands
Β₃ BA = Brand Awareness
Β₄ SSA = Sensory Stimulated Advertising
βo = Y-intercept of the line
βi = (i = 1,2,3,4) are estimates of the coefficient
µ = An error term measuring variation in consumer buying behavior unaccounted for the independent variables.

DATA PRESENTATION AND ANALYSIS FOR SAMPLE BACKGROUND VARIABLES

A total of three hundred and eighty (380) questionnaires were given out to respondents and three hundred and twenty were useable, and subsequently analyzed. In order to avoid loss of questionnaire after consent was got from respondents the questionnaire was administered and collected at the spot.

Table 4.1 The above table shows that the sex of the sampled respondents were 126 (39.4%) males and 194 (60.6%) females. This implies that the majority of the consumers were females. The age distribution of the sampled respondents showed that 78 (24.4%) were aged 30 years below, 92 (28.7%) of them were aged 30-35 years, 94 (29.4%) were aged 36-40 years and 56 (17.5%) were aged 40 years and above. This show that majority of the respondents were aged 36 – 40 years. On the educational level of the respondents who returned valid copies of distributed questionnaires of whom 86 (20.90%) of them attended secondary school, 161 (50.3%) attended post secondary school and 73 (22.8%) attended University. This means that the majority of sampled respondents attended post secondary school. On the issue of marital status of the sampled respondents, 212 (66.30%) were married and 108 (33.7%) of them were single. This shows that the majority of the respondents were married. On the occupation of respondents 80 (25%) of them were traders, 40 (12.5%) were artisans, 112 (35%) were civil servants, 58 (18.1%) were students, while 30 (9.4%) were other people.

Presentation of data collected and used for Regression Analysis

Where
ER = Emotional Response
ERTB = Environmental Response Towards Brand
BA = Brand Awareness
SSA = Sensory Stimulated Advertising
Figures that are not in bracket show the number of responses
Figures that are in bracket show the percentage of response

CBB = Consumer Buying Behaviour
Figures that are not in bracket show the number of responses
Figures that are in bracket show the percentage of response

Multiple Regression Technique

The study employed multiple regression technique to test the formulated hypotheses given the individual significance of the variables and the results were presented in table 4 below

R² 0.669
R² Adjusted 0.658
Standard Error 0.412
F-Statistics 31.895{o.
Statistical package for social science (SPSS) version 16

Interpretation of Result Test of hypothesis

Hypothesis 1: Emotional response does not positively affect consumer buying behavior. The beta value shows that 1 unit increase in the value of emotional response (ER) would result in 0.459 (45.59%) increase in consumer buying behavior, other variables being held constant. This in essence entails that emotional response is a function of consumer buying behavior. Emotional response shows statistically significant unique contribution in explaining consumer buying behaviour (P<.01), while the t-statistics of emotional response also accounted for significant positive variation in dependent variable that is consumer buying behavior (t=6.441, p<.01). Resultantly null hypothesis is rejected and alternate hypothesis is accepted, meaning that emotional response exerts significant effect on consumer buying behavior and have positive relationship with consumer buying behavior. This result aligns with the theory which states that advertising emotionally motivates consumers to buy the products. The attitude that is developed towards the advertisement help in influencing consumer’s attitudes toward the brand until their purchase intention. Emotional response to advertisement is an indicator of effective advertising

Hypothesis 2. Environmental response towards brand does not positively affect consumer buying behavior. The beta value shows that 1 unit increase in the value of environmental response towards brand (ERTB) would result in 0.412 unit (41.2%) increase in consumer buying behavior, other variables being held constant. This in essence entails that environmental response towards brand is a function of consumer buying behavior. Environmental response towards brand shows statistically significant unique contribution in explaining consumer buying behavior (p<.01), while t-statistics of environmental response towards brand also accounted for significant positive variation in dependent variable that is consumer buying behavior (t = 6.124, P<.01). Resultantly null hypothesis is rejected and alternate hypothesis is accepted, meaning that environmental response towards brand exert significant effect on consumer buying behavior and have positive relationship with consumer buying behavior. This result accords with the theory which stated that attitudes that is developed towards advert help to influence consumer’s attitude towards brand until their purchasing intention.

Hypothesis 3: Brand awareness does not positively affect consumer buying behavior The beta value shows that 1 unit increase in the value of brand awareness (BA) would result in 0.605 unit (60.5%) increase in consumer buying behavior, other variables being held constant. This in essence entails that brand awareness is a function of consumer buying behavior. Brand awareness shows statistically significant unique contribution in explaining consumer buying behavior (P<.01), While the t-statistics of brand awareness also accounted for significant positive variation in dependent variables that is consumer buying behavior (t=6.686,<.01). Resultantly null hypothesis is rejected and alternate hypothesis accepted, meaning that brand awareness exert significant effect on consumer buying behavior and have positive relationship with consumer buying behavior. This result align with the theory which states that consumer watches on advertisement about the brand and develops likeness for the brand and then eventually willing to purchase it. This is why the basic aim of advertising is to encourage people to buy things and create awareness.

Hypothesis 4: Sensory stimulated advertising does not positively affect consumer buying behavior. The beta value shows that 1 unit increase in the value of sensory stimulated advertising (SSA) would result in 0.518 unit (51.8%) increase in consumer buying behavior, other variables being held constant. This in essence entails that sensory stimulated advertising is a function of consumer buying behavior. Sensory stimulated advertising shows statistically significant unique contribution in explaining consumer buying behavior (P<.01) while the t-statistics of sensory stimulated advertising also accounted for significant positive variation in dependent variable, that is consumer buying behavior (t=6.381,<.01). Resultantly null hypothesis is accepted meaning that sensory stimulated advertising exerts significant effect on consumer buying behavior and have positive relationship with consumer buying behavior. This result agrees with the theory which stated that sense modalities and information rates make the environmental psychology model. Sense modalities are sound, sight and touch that can affect user experience. The information rate can influence user in gaining information about advertisement. Thus this model is applicable to music test lyrics, image and music video, which strongly related with each other and are shown in advertisement.

DISCUSSION OF FINDINGS:

Considering the result obtained in table 4, the individual β in case of each and every variable indicates positive result over all Positive relationship lie between the independent variable emotional response and the dependent variable consumer buying behavior. This is consistent with researches of Goldsmith and Lafferty (2002); Romanuik & Sharp (2004); Ayanwale et al, (2005); Nawazish & Ahmed (2015) Positive relationship also exists between the independent variable environmental response towards brand and the dependent variable consumer buying behavior. This is consistent with the researches of Greenley and Foxall (1977); Nawazish & Ahmed (2015); Gulam et al (2012). There is a positive relationship between the independent variable brand awareness and the dependent variable consumer buying behavior. This is consistent with the researches of Bijmolt et al (1998); Goldsmith and Lafferty (2002). A positive relationship exist between the independent variable sensory stimulated advertising and the dependent variable consumer buying behavior. This is consistent with the researches of Adelaar et al (2003); Ghulan et al (2012) The whole analysis show that the independent variables emotional response, environmental response towards brands, brands awareness and sensory stimulated advertising regressed the dependent variable consumer buying behavior and provided a considerable outcome where significant value (p) is less than 0.01, F value is equal 31.895, shows that the model has overall significance at 1% level. R2 .669 suggest that the model has a good fit. This indicates that 66.9% of variation in consumer buying behavior is accounted for by variation in explanatory variables, suggesting that the model has a good explanatory power on the changes in consumer buying behavior among variables.

Conclusion

It is concluded that he predictor variables, emotional response, environmental response towards brands, brand awareness and sensory stimulated advertising have positive relationship with consumer buying behavior. All the variables have statistical significant t-ratio. The results are consistent with the literature.

Recommendation Based on Research Findings:

We recommend that for an effective advertisement to be ensure, target audience must be extensively studied to know their consumption pattern and buying behavior We recommend that effort should be directed more on emotion related advertising since consumers patronage are highly induced through their emotion. We recommend usage of sensory stimulated advertising to influence consumer buying behavior, since sense modalities can affect users experience and enable them to gain information from advertisements.

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