ABSTRACT

This work reports the results of an experiment carried out among consumers of three competing brands of toothpaste in Lagos Metropolis. The study examined the effect of tele advert on the nature and pattern of consumers psychological functioning with particular reference To the role of advertisements in forming and preventing cognitive dissonance of the consumer, the relationship between advertisement and impulsive purchase decision of consumers and the impact of different television advert on consumers perception about deceptive advertisements The study was anchored on the “associationist bond concept” which is alternatively called the principle of “connectionism” developed by Thorndike. Data were collected from 600 respondent randomly selected unsuspected consumers in an experimental set up. Result reveals significant positive correlation between advertisement and impulsive purchase decision of consumers. Also, result indicated that visual cognition was higher among young adult irrespective of their gender when they are exposed to tele-adverts.

CHAPTER ONE

INTRODUCTION

BACKGROUND TO STUDY

Considering the dynamism and complexity of the world,t he business environment is becoming sophisticated day by day and as such, decision-making is becoming more and more challenging and risky. Business organizations are failing due to poor decisions. Investors are losing their money and are unhappy. They are being discouraged and this is quite unhealthy to the economy. In some other instances, organizations are springing up in great numbers; some are successful in the marketing of their products and services, while others are still akin to the barber’s chair syndrome where all is motion but no movement; struggling to reach their target audience. Consumers are also faced with the challenge of choice making due to indecisiveness, skepticism, indifference and confusion which are among the key sales killers in business world.

However, the consumer perception challenge is the first and greatest hurdle that advertisers must cross. Perception guides all activities of the consumer from the people he associates with to the product he buys. In the business world, it has always been what people say about a product or service and not what the marketer says. How a consumer perceives each of the different brands in a category, determines which brand he chooses. So many companies spend so much money on advertising, sales promotion, point of purchase displays and other marketing communications only to discover that many people don’t even remember the product or the promotion. On the other hand, whether consumers ultimately purchase the marketer’s brand also depends on whether the promotion and marketing communication variables facilitate purchasing

Advertising is an instrument of information and persuasion. As per one definition “Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media” (Bovee, 1992).The informative role of advertising consists in provision of information about products, features, functions, specifications and prices to prospective buyers. Due to ignorance of advertising, they may purchase an inferior product, pay higher prices, or worse still, may not even know the variety of products that exist. This increases the short-run propensity to consume by informing buyers of the various bargains available. Besides, it is also true that consumer spending declines when the normal advertising flow is cut-off. By advertising the goods, a manufacturer comes in direct touch with the consumers.

Banking upon this information, the manufacturer can directly sell to the customers.

The number of middlemen, whose margins increase the price for the consumers is consequently reduced.

Advertising ensures better and improved quality of goods to consumers at cheaper rates. Since advertised goods promise a certain quality which has to be maintained and further mass advertised goods are produced and distributed in large quantities, thus reducing the production cost per unit (due to economies of scale).

Goods are generally advertised with brand names. When an advertisement appears with a brand name, it imprints an image of the product in minds of the consumer. If the use of the advertised product confirms their expectations, a repeat order is expected and the product will earn a favourable image and good reputation. Thus, the manufacturer is prompted to maintain and if possible, improve the brand quality so that the confidence of consumers is maintained. Else, the brand will lose market share. Advertising creates the desire to possess better and newer items by educating the buyers about better life-style. Advertising gives a direct stimulus to consumer which in turn prompts the producer to produce more and better quality. On the other hand, advertising acts as a mirror that shows the country's way of life. It is in fact a running commentary of the way people live and behave. Advertising and selling have played an important part in expanding the economic system by stimulating consumers into buying more. Advertising makes people work harder than they otherwise would. This has had the effect of raising the aggregate level of the economy. In the long run, advertising has probably played a major part in making people favourably disposed towards high levels of consumption and in creating new products and ideas. Thus, advertising also increases the employment levels, directly and indirectly. Advertising reduces the risk of innovation. The cost of innovation can be more than recovered by the sales which advertisements may generate and encourage manufacturers to undertake research and development. The revenue through subscriptions is quite inadequate to support the publication of newspapers, magazines or TV channels. Advertising revenues, in fact, provide a greater support to viable functioning of these media.

STATEMENT OF PROBLEM

Exposure of various types of advertisement creates certain beliefs which may or may not mould the attitude and may result in change of intentions and ultimately the behaviour. The cognitive response model is based upon the assumption that some kind of learning plays a role in determining attitude change. The cognitive response model follows the belief that people actively relate information contained in persuasive messages to their existing feelings and beliefs about the message topic (Dorack, 1963).

A cognitive response is the attitude a consumer depicts after seeing an advertisement. The consumer will either agree or disagree with the message and may transmit the message to previous beliefs about the particular product.

Smai (2009) analysed the behavioural pattern of consumer when exposed to a tele advertisement, he found out that,  member of the audience is assumed to react with at least two distinct responses: He thinks of his own opinion and also of the opinion suggested by the advertiser. Merely thinking about the new opinion along with the old may not, in itself lead to an opinion change. This study uses the findings of Smai (2009) to establish the psychological functioning of consumers in Nigerian as they respond to advertisement.

OBJECTIVE OF THE STUDY

 The broad objective of the study is to examine the effect of tele advert on the nature and pattern of consumers psychological functioning. Specifically the study seeks to :

1.                 To study the role of advertisements in forming and preventing cognitive dissonance of the consumer.

2.                 To examine the relationship between advertisement and impulsive purchase decision of consumers.

3.                 To examine the impact of different television advert on consumers perception about deceptive advertisements

4.                 To examine the customers perception about price and quality of the product as shown in advertisements

RESEARCH QUESTIONS

The research question for this study is thus:

1.                 What is the  role of advertisements in forming and preventing cognitive dissonance of the consumer.

2.                 What is the  relationship between advertisement and impulsive purchase decision of consumers.

3.                 What is the impact of different television advert on consumers perception about deceptive advertisements

4.                 What are the customers perception about price and quality of the product as shown in advertisements

RESEARCH HYPOTHESIS

H1: The purchase behaviour of consumers is NOT influenced by different types of media.

H2: The tele advertisement of different media DOESNOT results in preventing of cognitive dissonance if sample mean is greater than 3.

H3: Customer DONOT perceives Price and quality of the product separately as shown in advertisements.

SIGNIFICANCE OF THE STUDY

The study may prove significant in formulating a uniform approach to cognitive effect of the advertisements of non-durables as there are diverse approaches to the concept.

The understanding, how consumers select and organise information, can be used to create marketing communications that have a better chance of being attended to and processed. Cognition is an important subject to an advertiser and marketer dealing in non-durable products because the process is highly complex. Advertiser, therefore, needs to know in advance how consumers are likely to process and interpret a message. The differences in attitude and level of involvement for a particular product may raise so many problems with the individual characteristics that influence consumer‟s decision making as to non-durable goods. An advertiser generally does not have the information about the motivation, perceptual characteristics, learning patterns or attitudes of the consumers. If the advertiser has this knowledge he can formulate better marketing strategies. Also, the extent and type of message processing depends on the interaction between product, advertisement, and programme involvement. Hence, advertisers should understand the nature of such interactions and make appropriate adjustments to their communication strategy. Such information potentially has important implications for both consumer policy makers and marketing practitioners.

It is true that the advertiser needs to follow such approach that draws the attention of the prospective consumers. But at the same time, he must devise such policies which are able to lessen the cognitive dissonance of the buyer, who is already using the product, especially in the case of non-durable products where so many alternatives are available. So it is important that the switching over among different brands is avoided. The study can be helpful in finding such ways.

The findings may help in forming effective strategies by which consumers may be informed of the nature of misleading and deceptive practices which are prevalent.

This will ultimately make them aware of their rights to fight against dishonest advertising and not to be swayed away by eye catching statements, which at times result in impulsive purchase decisions. If the advertiser is aware of the cognitive effects of the advertisement on different social and demographic groups he can deal with the particular target group more efficiently.

SCOPE OF STUDY

The study covers the Effect Of Tele Advert On The Nature And Pattern Of Consumers Psychological Functioning In Lagos Metropolis Taking Into Consideration The Behavioural Display Of Individuals As Response To Adverts.

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