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ABSTRACT
This research study is generally intended to apprise the effect of advertising on customers patronage in the fast food industry.
Based
on the above purpose, some literatures relating to this research were
reviewed. However, more concise and comprehensive information were
gathered through primary and secondary data, which help to elaborate
more on this project topic.
The population of the study comprises of
the top management staff of the four branches of Mr. Bigg’s in Owerri.
The unit of analysis was minimal and as such, the whole population was
adopted.
Following the hypothesis tested, the findings were that
advertising has a significant effect on the customers patronage of a
product. The findings also revealed that there is significant
relationship between advertising carried out and the degree of customers
patronage.
Conclusively, based on the findings, the following
recommendations were made, that advertisers should know when best to
advertise in order to reach out to the particular group of customers
that will need the message. Again that advertising should be left in the
hands of better and qualified agencies that are in a good position to
produce better and quality advertising. Furthermore, a proper analysis
of the target market should be considered for effective advertising. All
these will make advertisement indispensable.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Advertising
is one particular promotional tool that attracts the greatest
controversy as to its role and contributions in social, economical and
ethical spheres. It is not the only communication tool which
organization utilize in trying to communicate the existence and quality
of their products to the potential and prospective buyers but it is the
most commonly used an also the most noticed of all the promo tools. It
is the only one that gets to the greatest number of the firm’s target
audience at the same time. It is not done by profit-oriented
organizations alone but politicians, government and even non-profitable
organization do advertise.
Advertising therefore can be defined as
anuy paid form of non-personal presentation and promotion of ideas,
goods and services by an identified sponsor. The words “any paid from”
distinguishes advertising from publicity because every organization that
wants to advertise will purchase space or time in the chosen medium to
tell the story about a product or service. “Non-personal” distinguishes
advertising from personal selling because advertising reaches large
number of audience through mass media, which are non-personal and do not
have the chances of immediate feedback as personal selling does.
“ideas, goods and services” establish that advertising is not restricted
to tangible products but also intangible advertising is used by profit
and non-profit making organizations to promote their products e.g. banks
churches, charitable homes etc”. An identified sponsor” indicates that
the sources of every advertisement message is always made public and
this differentiates advertising from propaganda and rumour (Adrika, Ebua
and Nnolim, 1996).
Advertising reaches the mass publics through the
print media (Newspapers, magazines) broadcast or electronic media
(Radio, Television and cable), and display media (Bill boards, signs and
posters) etc. The choice of the media vehicle, depends among others on
the strength and weakness of each vehicle, available resources and media
selection of the target market to reach competitive parity and company
policy on promotion.
Two or more media vehicle may be used
simultaneously to realize the promotion objectives. For instance Mr.
Biggs uses radio, television, billboard and magazine at the same time
because of the competitive nature of the fast food industry.
Perly
and Rossite (1978) said that advertising is a process of relatively
indirect persuasion based on information about product benefit which is
designed to create favourable mental impression that turns the mind
towards purchase. Advertising can be used to generate awareness,
establish or change attitudes and stimulate purchase intentions. It
build’s customer franchise or a relatively preference for a brand. It
also acts as a necessary injunction to propel the marketing action.
In
this project, the researchers contraction is on the effort of
advertising on customers’ patronage in the fast food industry. The
researcher also briefly looked at them and tried to measure the effect
advertising has on customer’s patronage towards their products. Once a
new product has been manufactured, the next thing to do is to bring it
to the notice of customers and this is done through advertising.
Most
of the products that are not given good advertisement usually end up
not being sold. It is through the patronage of the customers towards
that product that the company gets to know if the advertisement has any
impact and effect on the customers.
In the course of carrying out
this research, Mr. Bigg’s retail food business was used as study to
determine the effectr of advertising on customers patronage in the fast
food industry. Mr. Bigg’s retail food business is one of the
departmental stores of United African Company Nigeria Plc (UACN). The
firm is the largest retail food business in Nigeria with over 250
restaurants in the major cities of the country.
Mr. Bigg’s media
selection are billboards, electronic media which include television,
radio and print media which include newspapers, magazines as well as
Journals. All these are used to attract customers patronage and to
increase sales.
1.2 STATEMENT OF THE PROBLEM
Firms
generally embark on advertising and Mr. Bigg’s in particular also
embarks on advertising. When advertising in is carried out, it is
supposed to arouse the interest of the target market. Also when
advertising is carried out, it is expected to increase the sales of the
company product and as well generate profit for the organization. lastly
when advertising is carried out at any point in time, it is supposed to
increase the market share which that firm is occuping in the industry.
In
carring out this study, the researcher is in doubt if advertising has
any significant effect on the customers patronage towards the company’s
product sinc tit is usually hard to predict possible actions of any
customer at any point I ntime within an environment. This is because
individual customer possesses different characteristics from other and
their attitudes towards a product change from time to time.
The
researcher has the problem of knowing if the company advertises her
products well, by knowing if the type of media used in advertising their
products help in the patronage of the customers towards their products.
The
researcher also tried to know if government laws and regulations
towards advertisement affect the customers patronage towards the
company’s products.
All these led the researcher to study the effect of advertising on customers patronage in the fast food industry.
1.3 OBJECTIVES OF THE STUDY
The objectives of this study are the following:
i. To determine whether advertising influences the way customers patronize a particular product.
ii. To find out what quality of advertising affects customer patronage.
iii.
To determine the effect of advertising on individual psychological
variables, social and cultural behaviour including their buying
decision.
iv. To determine whether advertising helps customers to
make better and reasonable purchase decision with the relevant
information published by advertising.
v. To ascertain the effectiveness of advertising that lead to the patronage of a product by customers.
vi. To determine whether Mr. Bigg’s advertisement really affect the patronage of the customers towards their products.
1.4 RESEARCH QUESTIONS
1. Does advertising influence the way customers patronize a particular product?
2. What quality of advertising affects customer’s patronage?
3.
Does advertising have any effect or individual psychological variable,
social and cultural behavior including their buying decision?
4. Does
advertising help customers to make better reasonable purchase decision
with the relevant information published by advertising?
5. What effectiveness of advertising lead to the patronage of a predict by customer
6. Does Mr. Biggs advertisement really affect the patronage of the customers towards their product.
7. Does the cost of advertising have any significant effect on the sales volume of a product?
1.5 STATEMENT OF HYPOTHESIS
Oxford
advanced learners dictionary defines hypothesis as an idea or a
suggestion that is based on known facts and is used as a basis for
reasoning or further investigation.
According to Uzoechi (1998: pg
87) there are two types of hypothesis, the Null (Ho) and the Alternative
(Hi) hypothesis. The null hypothesis (Ho) is the one that says where
there is no significant difference between the objects of contention
while the alternative (Hi) hypothesis is the one that says there is
significant different between the object of contention.
For the purpose of this study, we shall put the following hypothesis to test:
1A Ho: Advertising has no significant on the customer’s patronage of a product.
1A HA: Advertising has a significant effect on the customers patronage of a product.
2A Ho: There is no significant relationship between advertising carried out and the degree of customer’s patronage.
2B HA: There is significant relationship between advertising carried out and the degree of customers’ patronage
1.6 SIGNIFICANCE OF THE STUDY
This
research will be of help to my organization that wants to carryout
advertisement so as to attract customers, which will lead them to
patronize their products thereby helping the organization to maximize
their profit.
This study will also be of academic value to both
students and other refreshers that would wish to further an
investigation towards this area of study in the future.
1.7 SCOPE OF THE STUDY
It is the
intention of the researcher to make an extensive overview of the effect
of advertising as a detriment of customers’ patronage to all the
organizations but due to obvious limitation this study was restricted to
only fast food industry and Mr. Biggs in particular.
1.8 LIMITATIONS OF THE STUDY
During the course of carrying out this study, the researcher was constrained by the inability of the respondents to co-operate.
Huge
sum of money was involved conducting this research and there was also
problems of distribution and collection of questionnaires.
Finally,
the risk involved in traveling from time to time to gather the
information needed and time constraints was a protection in all these,
the information needed to enable the researcher develop the importance
of his research work was gathered.
1.9 DEFINITION OF TERMS
ADVERTISER: This is a person or a company that wants to convey a message to the audience with a promotional message.
ADVERTISING MEDIUM: This
is a channel through which the advertising message is delivered to the
target audience e.g. Newspaper, radio, television etc.
PRIMARY DATA: This has to do with the information that are originally collected on the specific purpose at hand.
SECONDARY DATA: This has to do with information that already exists and is being collected for another purpose.
PRODUCT: I anything that can be offered to the market for attention, acquisition or consumption that might satisfy a need.
CUSTOMER: Is a person who gives his attention to a product.
ADVERTISING MANAGER: This is the person who takes care of advertising in any company.
ADVERTISING COPY: This
refers to the words and pictures that make up the advertisement as well
as the way they are laid down to create a total impression.
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