CHAPTER 1

INTRODUCTION

1.1 Background of the Study

A purchase decision is an evaluation stage, in which consumer preferences towards a brand are formed. Consumers also establish the purpose of buying the most preferred brand during this stage (Setiadi, 2003). Kotler and Armstrong (2014) describe purchase decision as a buyer’s decision-making stage wherein an individual decides to actually buy the product being considered. Subsequently, Kotler and Armstrong (2014) explained that a purchase decision is the decision regarding a brand to be purchased. Similarly, Djatmiko and Pradana (2015) stated that the purchase decision-making process is the stage wherein consumers actually buy the product.

Visual media advertising is defined as “paid non – personal communication, from an identified sponsor, using visual media like television, cinema trailer, internet etc., about organization, product, service or idea, intended to persuade the audiences or spectators to purchase or take some action upon products , ideas or services”.

Television, as we know it, is broadcast to a large section of the public. As such, it is generally described and thought of a one-way, passive medium. According to Freed (2000), this very passivity was at the core of the advertising strategy of television networks.

Producers of early television programs relied on this passivity to sell advertising. They knew that once the family had tuned in a channel and settled back on the comfortable sofa, they were likely to stay watching that channel all evening. There was no remote control yet, no channel surfing. Another point worth noting is that the role of television as an information medium has not declined significantly after the acceleration of Internet use.

According to the Benton Foundation (2000): Despite the current frenzy surrounding new media, TV is still the most watched and most trusted source of information. Ninety three percent of Americans watch a network television program in the course of a week, and 69 percent of Americans say TV is the most trusted source of information.

Advertising is an important marketing communication strategy, in marketing mix. It is an external stimulus that arouses dormant needs. It results in „inner tension‟ among prospective buyers. Ultimately, It leads to different stages of decision-making process namely identification of alternatives, evaluation of alternatives, purchase behavior. Generally speaking, advertising fills “consumer information gap”. But the specific meaning attributed to advertising should be viewed from different angles.

An advertisement affects advertising effectiveness since it was found to be an important antecedent of brand attitudes. Over the years, researchers have tried to measure attitudes towards advertising among adult consumers and among student samples and these attitudes have been the focus of comparisons on a cross- cultural basis. Until the early 1960s, studies measured general advertising attitudes as an overall favorability or unfavorability factor. Bauer and Greyser suggested advertising had important economic and social effects, and developed a set of belief items related to positive and negative outcomes of advertising in these specific areas. Other researchers expanded the belief inventory to include perceptions related to other aspects sexual content and use of women, ethics, deception and falsehood.

 During 1990s, thought listings in reaction the word “ advertising “ were categorized in to areas such as function , affective response , practice , industry and user related , to measure attitudes towards adverting in general. Mihal used customized rating scales to measure attitudes specifically towards television advertising.

1.2 Statement of the Problem

In a competitive market like Nigeria, advertising has been emerging great prominence as the potent tool on the marketing of goods and services by both the industrial and non- industrialized nations. It is regarded more as an investment than expenditure in the developing nations too. It has now been acknowledged as a major business function in Nigeria. The attitude towards advertising has been ever changing at a rapid pace with diversifications and dynamism. The advertiser, the agency, the media and the consumers view advertising according to their desires, expectation and opportunities. Hence advertising is no longer viewed as a secondary business activity, but has come to be accepted as a supportive service and a contributory input for diversified growth. The goals of advertising have been changed, modified, adjusted and re-defined over the years in Nigeria.

Now a day, the economic, social, cultural, political and business environments of the country has tremendously changed and these changes have brought about a significant change in the attitude of the people towards advertising. Advertising is being used not only for economic and business gains but also for political, social, cultural, religious and governmental motives and objectives. The parameters for judging advertising have witnessed a sharp change in Nigeria and the quality and performance of advertising agencies in our country have also improved.

Gradually, advertising has been maturing itself as a profession in the country. This has influenced significantly the psychology, sociology and economics of the advertiser, the agency and the media.

Advertising in Nigeria has been gaining sophistication during recent years. Besides, there has been a considerable increase in sales promotion activities of incentive merchandising schemes which have increased considerably in the last decade. Most of these were naturally for low prices mass consumer non- durables such as Soaps, toiletries, tooth pastes, herbal products, curry powders, confectionaries, cigarettes etc. Readymade garments, ready to eat items, two wheelers television sets, washing machines, mixes, fridges, fans, ovens have also become as popular in Nigeria consequent upon the emergence of T.V as a powerful media of advertising of Dufil foods. Hence, the study is determined to examine the relationship between visual media advertising and consumer purchase intention in a competitive market with reference to Dufil foods.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between visual media advertising and consumer purchase intention in a competitive market with reference to Dufil foods. The specific objectives are as follows;

1.       To examine the relationship between television advertising and consumer purchase intention of Dufil foods.

2.       To examine the relationship between cinema advertising and consumer purchase intention of Dufil foods.

3.       To examine the relationship between internet advertising and consumer purchase intention of Dufil foods.

1.4 Research Questions

1.       To what extent does television advertising associate with consumer purchase intention of Dufil foods?

2.       To what extent does between cinema advertising associate with consumer purchase intention of Dufil foods?

3.       To what extent does internet advertising associate with consumer purchase intention of Dufil foods?

1.5 Research Hypotheses

HO1: There is no significant relationship between television advertising and consumer purchase intention of Dufil foods.

HO2: There is no significant relationship between cinema advertising and consumer purchase intention of Dufil foods.

HO3: There is no significant relationship between internet advertising and consumer purchase intention of Dufil foods.

1.6 Significance of the Study

This study finds out how competitive advertising influence the choice decisions made by consumers of Dufil foods. It will be useful to marketing and other financial institutions operating within the confines of the Nigeria economy, as it will give them the knowledge on how to strategically create awareness via the utilization of advertising tools.

In the same vein, this study aims at availing Dufil foods the opportunity to determine the extent to which their advertisements motivate customers with a view to make improvements on the services provided.

The study will also go a long way to encourage and improve internet within the sector in Nigeria which will significantly affect the delivery channel on opportunity for high understanding of common problems that are prevalent in advertising practice and techniques or innovation as valuable materials for further research on the topic or relevant topics by both students and scholars.

1.7 Scope of the Study

Content Scope: This study is delimited in two perspectives; firstly it is delimited contextually to examining the relationship between visual media advertising and consumer purchase intention. The independent variable, visual media advertising has television advertising, cinema advertising and internet advertising as its dimensions while the measures of consumer purchase intention are outcome expectation, recommendation and personal association.

Geographical Scope: The study is made to concentrate on Dufil foods.

Unit of Analysis: The unit of analysis for this study is both senior and junior staff of Dufil foods, Port Harcourt at the time of the study.

1.8 Limitation of the Study

Every research study has certain limitations which fall short of the ideas which the researcher has established or recognized.

Given the critical and sensitive nature of the topic under this study, the researcher encountered a number of problems which hindered the research work.  Most importantly the time frame within which the work was expected to be completed was too short.

Besides, the researcher was not financially buoyant enough to carry out all the investigations deemed necessary to be carried out.

Furthermore, the attitude of the respondents toward the questionnaires that were administered was not favourable.

Finally, the availability of current literature for the research work also gave its own hindrance as the subject matter have been a matter of public discussion without proper literature to support the various arguments made on it.

1.9 Definition of Terms

Definition of some of the key words in this work should be briefly discussed below to enable the research to fully digest the media message in the research.

MARKETING: Is the activity, set of institutions, and processes for creating communicating, delivery, and exchanging offering that have value for customers events, partners and society at large American marketing Association.

ADVERTISING: Any paid form of non-personal communication which is directed to the consumers or target audiences through various media to prevent and promote product, services and idea.

ADVERTISING: Advertising is any paid form of non-personal communication about an organization or its product to a target audience by an identified sponsor.

ADVERT: An advertisement.

PRODUCT: An article or substance that is manufactured or refined for sale.

PROMOTION: Activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim.

VISUAL MEDIA ADVERTISING: It is “paid non personal communication, from an identified sponsor, using visual media like television, cinema trailer, internet etc., about organization, product, service or idea, intended to persuade the audiences or spectators to purchase or take some action upon products , ideas or services”.

CONSUMER PURCHASE INTENTION: It is the process of selecting an alternative out of the few/many available choices.