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THE IMPACT OF ADVERTISING ON CONSUMER PURCHASE DECISION. (A study of GIJ students) E. K. BONNEY 2014

The Impact of Advertising on Consumer Purchase Decision. a Case Study of GIJ Students

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Page 1: The Impact of Advertising on Consumer Purchase Decision. a Case Study of GIJ Students

THE IMPACT OF

ADVERTISING ON

CONSUMER PURCHASE

DECISION.

(A study of GIJ students)

E. K. BONNEY

2014

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TABLE OF CONTENT

TABLE OF CONTENT ........................................................................................................................... i

LIST OF TABLES, PLATES AND FIGURE ....................................................................................... iii

ABBREVIATIONS ............................................................................................................................... iv

ACKNOWLEDGEMENTS AND DEDICATION ................................................................................. v

ABSTRACT ........................................................................................................................................... vi

CHAPTER ONE ..................................................................................................................................... 1

1. INTRODUCTION .......................................................................................................................... 1

1.1. BACKGROUND STATEMENT ............................................................................................ 1

1.2. PROBLEM STATEMENT ..................................................................................................... 9

1.3. RESEARCH OBJECTIVES / AIMS .................................................................................... 10

1.4. SIGNIFICANCE OF STUDY .............................................................................................. 11

1.5. SCOPE OF STUDY .............................................................................................................. 11

1.6. ORGANIZATION OF THE STUDY ................................................................................... 12

CHAPTER TWO .................................................................................................................................. 13

2. LITERATURE REVIEW ............................................................................................................. 13

2.1. INTRODUCTION ..................................................................................................................... 13

2.2. THEORETICAL FRAMEWORK / CONCEPTUAL FRAMEWORK ................................ 14

2.3. REVIEW OF RELATED STUDIES .................................................................................... 21

2.4. HYPOTHESIS TO BE TESTED .......................................................................................... 28

2.5. RATIONALE FOR THE HYPOTHESIS ............................................................................. 28

2.6. OPERATIONAL DEFINITIONS OF TERMS .................................................................... 29

CHAPTER THREE .............................................................................................................................. 30

3. METHODOLOGY ....................................................................................................................... 30

3.1. INTRODUCTION ................................................................................................................ 30

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3.2. DESIGN ................................................................................................................................ 31

3.3. SUBJECTS / POPULATION AND SAMPLE ..................................................................... 32

3.4. INSTRUMENTS FOR DATA COLLECTION .................................................................... 34

CHAPTER FOUR ................................................................................................................................. 36

4. ANALYSIS AND FINDINGS ...................................................................................................... 36

4.1. INTRODUCTION ................................................................................................................ 36

4.2. ANALYSIS AND FINDINGS .............................................................................................. 36

CHAPTER FIVE .................................................................................................................................. 47

5. DISCUSSIONS AND CONCLUSIONS ...................................................................................... 47

5.1. INTRODUCTION ................................................................................................................ 47

5.2. DISCUSSIONS ..................................................................................................................... 47

5.3. CONCLUSIONS ................................................................................................................... 49

5.4. LIMITATIONS OF STUDY ................................................................................................ 49

5.5. SUGGESTIONS FOR FURTHER STUDIES ...................................................................... 50

REFERENCES / BIBLIOGRAPHY ..................................................................................................... 51

APPENDIX ........................................................................................................................................... 57

Questionnaire .................................................................................................................................... 57

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LIST OF TABLES, PLATES AND FIGURE

Table 4- (i). Medium of exposure ......................................................................................................... 39

Table 4- (ii). Time of exposure ............................................................................................................. 40

Table 4- (iii). Evaluation of advertisement ........................................................................................... 41

Table 4- (iv). Factors that influence purchasing ................................................................................... 45

Figure 1- (i). Billboard Advertising of MTN Telecommunication Company in Ghana ......................... 3

Figure 1- (ii). Billboard of Coca-Cola in Ghana ..................................................................................... 3

Figure 2- (i). AIDA model .................................................................................................................... 17

Figure 2- (ii). Hierarchy of effect model ............................................................................................... 19

Figure 2- (iii). Findings of survey by Dynamic Logic .......................................................................... 24

Figure 4- (i). Gender distribution of respondents ................................................................................. 36

Figure 4- (ii). Age range of respondents ............................................................................................... 37

Figure 4- (iii). Exposure to advertisement ............................................................................................ 38

Figure 4- (iv). Frequency of exposure .................................................................................................. 40

Figure 4- (v). Believe in advertisement ................................................................................................ 42

Figure 4- (vi). Importance of advertisement ......................................................................................... 43

Figure 4- (vii). Purchase based solely on advertisement....................................................................... 43

Figure 4- (viii). Purchasing an advertised product ................................................................................ 44

Figure 4-(ix). Satisfaction level of using advertised products .............................................................. 46

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ABBREVIATIONS

GIJ ------------------------------- Ghana Institute of Journalism

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ACKNOWLEDGEMENTS AND DEDICATION

Glory be to God for the strength, wisdom and the ability to complete this study.

I thank my parents, brothers and everyone who has in any way contributed to the completion

of this study.

I am grateful to my supervisor, Mr. Kwayie Dwumah Kuffuor for his guidelines and

corrections throughout this project.

Thank you to all lecturers of the Ghana Institute of Journalism for their tuition and support

that has brought me this far.

Finally, I am most grateful to my respondents for taking the time to answer my questionnaire.

I dedicate this research to my Parents, Mr. Peter Kwabina Bonney and Mrs. Dora Bonney.

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ABSTRACT

Advertising bridges the gap between companies and their target. It creates a platform that

provides an opportunity to introduce a new product or remind consumers about existing

products. Consumers often judge the satisfaction they derive from using the product to what

is portrayed in the advertisement. From the consumer’s point of view, the purpose of

advertising is to obtain information about goods and services that are available for sale

(Warmke et al. 1977: 66). Consumers take the careful decision to patronize products and

services based on several reasons they consider as important. This research has the ultimate

objective to examine the impact advertising has on the consumer’s decision to purchase a

product. Despite the key role of advertising on consumer buying decision, other factors such

as product packaging, quality, endorsement from previous users and sometimes product

esteem influences the consumer’s stage of taking action towards a product. It is important to

the seller for advertising to establish a trade name, slogan or product image (Warmke et al.

1977: 66). Companies employ the advertising function to convince people to develop interest

and patronize it. The major role of this function is realized in brand positioning. According to

Sabruto Senupta, a celebrated Indian author as cited by Jethwaney and Jain (2006: 86-87),

advertising involves the perception it brings about in the mind of the target consumer. This is

what can result in the consumer’s action of patronizing the product or service.

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CHAPTER ONE

1. INTRODUCTION

This chapter gives a description of the background statement, problem statement, research

objectives, significance, scope and the organization of this study.

1.1. BACKGROUND STATEMENT

A conversation with a friend raised an interesting point that motivated the researcher to do a

study on the topic “The impact of advertising on consumer purchase decisions.” In summary,

he stated emphatically that he does not purchase products that are “over advertised” or

“overhyped” (as he puts it). He backed his purchasing decision with the reason that a good

product does not necessarily need to be advertised so often to sell. Similarly, Yelbert (2010)

in her research “Effects of advertisement of hair products on student’s purchasing habits”

found out that some people think advertising is highly deceptive and influences the individual

to buy inferior products (Yelbert, 2010). Also, Naomi Klein in her book “No Logo” explains

that a brand is not created in the factory anymore, but rather created in the office. Klein

describes the brand as a non-reflection of quality but a reflection of what the marketing

department wants it to stand for. She indicates that instead of producing things, companies

are rather producing images of things (Klein, 2000). Advertising helps to create top of the

mind awareness of a brand and aims at facilitating brand recall (Ingavale, 2013). In addition,

my friend stated heartily that “If the product is good, it will sell itself.” He made the claim

that people will continue to buy it after using it for the first time. Therefore, he has the notion

that products that have inferior quality are the ones that are “overhyped” (advertised often) to

make sales. The question here is, how would people get to know about the product’s

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existence without advertising? He further added the 1Twi proverb “Awhini pa nkasa” which

literally means “good things do not talk or praise themselves” (Good products do not need

too much advertising to sell). Deceptive advertising practices appear repeatedly and therefore

consumers should know how to recognise and be on guard against them (Warmke, et al.,

1977: 75) Advertising may be defined as any paid form of non-personal presentation of ideas,

goods or services by an identified sponsor (Perreault & McCarthy, 1997: 42). Abiodum

(2011) also defines advertising as a non-personal paid form of “communication about an

organization or its product to a target audience through a mass broadcast medium by an

identified sponsor.” These definitions clearly establish that every product, service or idea

being promoted has an identifiable sponsor, brand owner or service provider. Advertising has

become an integral part of our social and economic system. In our complex society,

advertising has evolved into a vital communications system for both consumers and

businesses (Belch & Belch, 2003: 5). The encyclopedic dictionary of marketing defines

advertising appeal as “the basis or approach used in an advertising messages to attract the

attention or interest of customers and or influence their feelings toward the advertised

product, service or cause.” In real sense, it is the method used by companies for creating

awareness of their products, as well as making new products known to the new and potential

consumers. Advertising as a promotional tool also tends to remind, reassure and influence the

decisions of the consumers because an advertisement itself enlightens, and persuades

consumers on their acceptability of the product offering. For any promotional activity to be

called advertisement, it must be paid for (Abiodum, 2011: 1). These adverts try to portray a

positive sense of their brand in other to attract people to it. Advertising takes many forms.

This can be done through public announcement in a newspaper; on a radio or television

1 Twi is a language of the Akan people in Ghana.

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station; on the internet and outlets such as the use of posters, banners, billboards, brochures

among others (Robbs, 2009). Figure 1-(i) and Figure 1–(ii), show some advertising billboards

in Ghana.

Figure 1- (i). Billboard Advertising of MTN Telecommunication Company in Ghana

(Source: www.gosafrica.com/ /modules/mod_image_show_gk4/cache/banners.image2gk-is-

83.jpg)

Figure 1- (ii). Billboard of Coca-Cola in Ghana

(Source: www.gosafrica.com/ /modules/mod_image_show_gk4/cache/banners. image7gk-1)

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People have different preferences and choices. This can be due to the diverse experiences and

backgrounds of individuals. The past experience and state of mind of the person subjected to

advertising may determine the impact that advertising has on him or her. (Abiodum, 2011).

This preference is usually referred to as consumer behaviour. The market is such that

consumer tastes are increasingly differentiated and maintenance of high service quality in the

face of rising cost of essential factors is necessary. Advertising in competing brands is seen to

be increasing very rapidly and has created a situation to make consumers more

knowledgeable about products and services in the market (Abiodum, 2011). According to an

advertising review by Robbs (2009), it is estimated that an average person in the United

States may encounter from 100 to about 500 adverts in a single day. We are exposed daily to

literally hundreds of advertising messages (Warmke, et al., 1977: 77) Advertising has

gradually evolved from the local stage to an international level. “More than ever before,

corporations are looking beyond their own country borders for new customers” (Robbs,

2009). The selection process of one brand over all other brands optimizes the consumer’s

utility. This optimization is done under uncertainty, since the buyer may not have absolute

information about the product (Bjournstad, 2003: Levin, 2006).

Consumers must always choose between making an immediate decision (to buy or not to

buy) and delaying this decision to seek additional information, and thus reduce the decision

risk. This reveals how advertising casts its shadow on consumer culture (Hackley, 2005). To

purchase a product or a brand, buyers need a certain level of information; pre-purchase

information-seeking activities depend on four factors. Two factors are purchase-situation

related, and the two other factors relate to the type of product and market (Bjournstad, 2003).

Wilkie defined consumer behaviour as “the mental, emotional, and physical activities that

people engage in when selecting, purchasing, using and disposing of products and services so

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as to satisfy needs and desires” (Wilkie, 1994). Everybody has a reason why they choose to

purchase or use a particular product.

An advertisement reaching a potential buyer while the buyer is seeking information will have

a greater impact, since the buyer is spared the time and effort needed to seek out this

information himself. He or She is less likely to turn to competing brand advertisements to

obtain the additional information. In other words, buyers are generally more responsive to

different brand advertisements while they are seeking information on these brands. This is

why they become a choice target for the advertiser, provided the advertiser can identify and

locate them. To assess the products in a consideration set, the buyer uses evaluation criteria,

objective characteristics that are important to the buyer (Pride & Ferrell, 2008: 125).

Every business organization that is determined to succeed has to adopt an effective system for

the promotion, distribution and sales of its services. In order to fully understand the situation

the problem has to be determined if advertising has any impact on the volume of sales for the

consumer preference of a particular service (Abiodum, 2011). Advertising has the ultimate

goal of expanding sales and consumption in two ways. It both reminds and teaches.

Advertising reminds consumers in order to influence their immediate brand choice and

teaches to increase brand awareness (Broadbent, 1997). This makes it easier for future

advertising to influence brand choice. Broadbent describes the mathematical manifestation of

this behavioural process as “adstock” (Broadbent, 1997).

Advertising is the key for building, creating and sustaining brands. Advertisements play a

major role in persuading, informing and reminding both potential and existing customers

towards making a purchase decision (Ingavale, 2013). Most advertising is intended to be

persuasive to win comments to a good, service or idea. The advertising objective declares

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where the advertiser wants to be with respect to consumer awareness, attitude and preference

(Buvee & Arens, 1994: 216). Advertisers creates advertisements with a variety of objectives

in mind. They may have the ultimate goal of getting people to sample a product, or

persuading them to take an action (Jones, 2002). Significantly, the media is the carrier of

advertising messages from the sender (Advertisers) to the receiver (Target Consumer)

(Hansten, 2009). The impact of such advertising is to persuade the consumer's purchasing

power (Abiodum, 2011). Majority of adverts use appealing images and persuasive words as a

code to convince individual’s perception about the product. Persuasion has been defined as

human communication that is designed to influence others by modifying beliefs, values or

attitudes (Oberholzer et al., 2008). This method of persuasion in advertising is based on

reflexive purposes of imitation and the desire to be what is in the advert (Yelbert, 2010).

Consumers are exposed daily to adverts of persuasive nature (Blake et al., 2013).

Advertising plays a vital role in shaping dreams and aspirations and helps customers take

conscious product and brand decisions. Often, advertisement with endorsements creates easy

remembrance for the customer’s for the advertised product. The customer tends to associate

the brand with the celebrity and can easily register the brand in their mind (Ingavale, 2013).

Perceptually, the role that advertising play in consumer’s culture is why it is necessary to

research on the impact of advertising on the consumer’s purchase decisions. William

Bernbach, a U.S. advertising executive states that “Advertising is not a science. It’s a

persuasion. And persuasion is an art” (Encarta Student [DVD],2009). The promotion practice

of advertising is strategically used to “induce consumers to purchase goods and services”

(Robbs 2009).

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Measuring the influence of advertisement in consumer brand preference is very essential for

every marketer. If advertisement does not create any positive change in consumers’ brand

preference, all the resources such as money, time and efforts spent on advertisement will go

in vain (Ingavale, 2013).

Consumer behaviour can be defined as the process and activities people engage in when

searching for, selecting, purchasing, using, evaluating, and disposing of products and services

so as to satisfy their needs and desires. Most advertising agencies try to understand the mood

and desires of their target market in their approach to advertising (Pope, 1983). A 1986

research, by Hill and Gardner on people and advertising shows explicitly that, consumers

consciously or unconsciously utilize the buying process to manage their moods. The basis of

this is to search for emotional stimulation which is an important motivation for individuals

when selecting products to consume (Hill and Gardner 1986). “The most common types of

appeal are based on price or value; quality; star identification; ego; fear and/or anger” (Jones,

2002). Often, advertising agencies through their adverts, seek to build a lasting relationship

with people. As a result, they find ways to turn one-time purchasers into lifelong customers

(Robbs, 2009). In the book “Contemporary Advertising”, Buvee and Arens classify

advertising based on four factors. The factors are target audience, geographical area, medium

and purpose (Buvee & Arens, 1992: 8-14).

Robbs, in His review “Advertising”, identifies two broad categories of adverts. They are;

Consumer advertising and Trade advertising (Robbs, 2009). According to Robbs, consumer

advertising is directed at the public whiles Trade advertising is directed at wholesalers or

distributors who resell to the public (Robbs, 2009). This research however, is concerned with

consumer advertising, the form of advertising that is targeted directly to the consumer.

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Increasingly, advertising has become an inevitable strategy used to promote a product,

business, or event to attract and increase public interest. Consumer promotions involve the

extensive use of techniques, such as “sampling of goods and services, to encourage the trial

of products” (Robbs, 2009). In 2012, the producers of “Schweppes malt” organized a sample

test on GIJ campus to introduce the new product to students. The main objective was to get

the attention of the students to consume the new product. British-born Canadian writer and

economist, Stephen Leacock explains this style of advertising as a tool for “arresting human

intelligence long enough to get money from it” (Encarta, 2009). This strategy is why I believe

the producers of Schweppes malt organized a sample test at GIJ.

Even though most adverts are designed to promote the sale of a particular product, some

adverts are however intended to promote a belief, idea or specifically influence behaviour.

An advert may be used to encourage people not to “drink and drive” or engage in illegal

transactions. (Robbs, 2009). Some people will strongly argue out that advertising actually has

social and economic benefits. Contrary to this, others may also criticize advertising to be

deceptive. For this reason, most countries have bodies that regulate advertising. These bodies

“help prevent deceptive adverts and limit the visibility of certain kinds of adverts” (Robbs,

2009). Buvee & Arens also acknowledge the fact that the government, industry and consumer

groups also play a very important role in regulating adverts (Buvee & Arens, 1992: 55).

This study analyzes and attempts to identify the various reasons “why” people buy “what”

and “when”. There is an overall objective to understand whether consumers purchase

product because of messages and ideas projected in advertisements or for other reasons. The

study also has the objective to identify the reasons that motivates the companies and

organizations to engage in advertising. Researchers have identified six fundamental

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principles on which they believe advertising campaigns run. These principles are: To score

attention ; To arose interest ; To create desire ; To incite action ; To develop and sustain that

interest ; and To create good will (Shahid, 2009).

1.2. PROBLEM STATEMENT

Have you ever taken time to count the number of adverts you are exposed to daily? This

could be through radio, television, newspapers and magazines, billboards, websites and other

forms of media outlets.

There are several questions that revolve around the relationship between advertisers and their

target audience (Consumers). Why do producers of goods and services advertise their

products? How would people (consumers) find products or even make choices between

several products if there were no adverts about the products? Do these adverts really have an

impact on the consumer’s choice of whether to buy or not? Do consumers trust advertisers?

What are the perceptions of people about products that are advertised? What is the evidence

that there is a relationship between adverts and purchasing decisions of the consumer? What

are the effects of these adverts on consumers? This research basically seeks to identify the

level of impact adverts have on the consumer’s decision to buy or not. In order to stimulate

and elicit positive response from the target audience, effective market research must be

undertaken on consumer behaviour to gather vital information about them. These information

includes their preference, age, buying habits, who makes the buying decisions and others

(Tuckwell, 1992: 83)

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Research Questions

This research seeks to answer questions such as;

a) Do adverts have an impact on consumers?

b) What are the effects of advertising on consumers?

c) Do consumers purchase products because of images and celebrity endorsement in

adverts?

d) How true and effective is the information provided in the adverts?

e) Does the consumer get the satisfaction promised in the advert after they use the

product?

f) To what extent does advertising impact the purchasing decision of the consumer?

Are there other reasons why consumer’s purchase products?

1.3. RESEARCH OBJECTIVES / AIMS

The major objective of this research is to find out if adverts have an impact on the purchasing

decisions of consumers. Also, the researcher is interested in finding out the extent to which

these impacts of advertising actually works.

Specific Research objectives are:

I. To identify the extent to which consumers are affected by the messages and

strategies used in adverts.

II. To understand the power of persuasion in advertising.

III. To find out if there are other reasons why people purchase Products.

IV. To identify the advertising media that gets the attention of consumers.

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1.4. SIGNIFICANCE OF STUDY

The investigation into this subject matter is very necessary to both advertisers and consumers.

This study will;

a) Inform consumers on how advertisers try to persuade them to purchase

their products.

b) Inform producers, companies and marketing organizations and advertising

agencies if their strategies are effective. (Generates results).

c) Help consumers understand the effects of certain deceptive messages in

adverts.

d) Help advertisers to identify the advertising medium that gets the attention

of consumers.

e) Inform Advertisers about their level of impact on the buying power of the

consumer.

1.5. SCOPE OF STUDY

The scope of this study is restricted exclusively to the Ghana Institute of Journalism. The

purpose for selecting this institute is to ensure easy data collection due to financial constraints

and limited time.

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1.6. ORGANIZATION OF THE STUDY

This project will be grouped into five (5) chapters.

Chapter one deals with the introduction of the study. This chapter is composed of a

description of the background statement, problem statement, research objectives,

significance, scope and the organization of the study.

Chapter Two deals with literature review. This includes a review of existing studies;

evaluation and analysis of relevant theories and also operational definition of phrases.

Chapter three focuses on methodology. This involves the various approaches that will

be used during the research.

Chapter four brings to bare the findings. It deals with analysis and interpretation of

data collected.

Chapter five will provide a summary, conclusion and recommendation for further

study, and where there are any limitations, it shall be clearly stated.

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CHAPTER TWO

2. LITERATURE REVIEW

2.1. INTRODUCTION

This chapter is about related studies, theories and advertising communication models that

form the foundation for this research. Over the years, several theories and advertising models

have being developed to explain consumer purchasing decisions. These theories attempt to

describe the sequence of behaviour when consumers are making purchase decisions (Hoang,

2013).

Advertising communication models are conceptual ideas that relates to the organization of

sales and products and how they are marketed. Advertising must have a clear message

(printed, spoken, graphical or pictorial) which is targeted at consumers or audiences with the

aim of persuading them to purchase a product, service or adhering to the message it projects

(Rossiter & Percy 1985).

Advertising agencies operate with these models and ideas whenever they create a concept.

The first task in promoting any new product is to create awareness that the product exists.

The second is to provide enough information to enable learning about the product for the

prospective customer to make an informed decision. Finally, the marketer wants to be

persuasive enough to stimulate the customer's desire and motivation to satisfy his or her

needs or wants by purchasing and repurchasing the product. These three personal processes

of consumer behaviour; perception, learning, and motivation are extremely important to

advertisers (Arens & Bovée, 1994:133-137).

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2.2. THEORETICAL FRAMEWORK / CONCEPTUAL FRAMEWORK

Advertisers are constantly trying to define models on how advertising works. From these

models, they often try to pick meaningful communication objectives (Bovee et al., 1995).

These models show several phases of communication, progressing from initial awareness up

to the decision to make a purchase (Jones 1986). This study therefore is to investigate the

consumer purchase decision and find out if advertising is a determining factor. In order to

determine the factors that influence the preferences of the millennial generation, an

understanding of how consumer’s generally think and behave in buying situations is vital.

Understanding consumer behaviour and knowing customers have and never will be simple.

Consumers may say one thing but do another (Engel et al., 1979). These issues have led to

the development of several theories to understand the consumer purchasing decision process.

In other words, marketers can apply various stimuli and observe the conduct of consumers

but they cannot observe the consumers’ actual thought processes. This hidden information is

considered to the black box. In an attempt to obtain some understanding, marketers study

consumer behaviour (Futrell, 1999). Many researchers describe consumer behaviour as the

study of individuals or groups and the mental, emotional and physical processes they use to

select, obtain, consume and dispose of products and services, to satisfy needs and wants and

the impact that these processes have on consumer and society (Krugman, 2013).

There are numerous models trying to explain consumer behaviour. These models generally

deal with various stimuli, influential factors, the decision-making process and outcomes.

This study will be based on the AIDA model, the hierarchy of effect model, and the magic

bullet theory (hypodermic needle).

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AIDA model

This model was propounded by Elmo Lewis. This is an approach used by many advertisers to

describe the different phases of consumer engagement with an advertisement. It basically

explains the way a consumer process information they are exposed to in the media (Colley,

1984). In order for advertising communication to be successful, prospective buyers become a

target for advertising messages (Rossitor and Percy, 1985). The individual must process the

elements in an intended manner so that the advertising results in communication effects. This

communication effect must be connected to the brand which in appropriate circumstances

will produce action (Purchase of the product or service). Actions can also include a variety of

desired target behaviour on the part of distributors or consumers. This behaviour can be in the

form of sales enquiries, or visit to retail outlets. It identifies the stages which describe the

processes a consumer goes through to become a potential customer. The stages identified by

this model are; Awareness; Interest; Desire; and Action (Glowa, 2002). The model depicts

that; awareness will cause or attract the attention of the consumer to the product. This will

further arouse the interest and possibly lead to the consumer’s desire for the product.

Advertisers believe that when the consumer gets to the stage of “desire formation” for the

product; he or she is likely to take an action which the advertiser see will be purchasing the

product (Lavidge and Steiner, 1961).

Different advertisers publicize advertising information differently and try to make consumers

aware by getting their attention through modern communication methods. Advertisers use

appealing information and images to convince consumers about the benefit they’ll get from a

product and services, and how that product can help solve their problems. Therefore it is very

necessary for the information to spark the consumer’s interest with a concise, brief and

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accurate explanation of features and benefits of the products that are being promoted

(Hansen, 1972: 8-15).

The desire is created, by the use of keywords to convince the consumer that the product is

what they really need. Advertisers propagate their offers and the value of their product and

people are moved because of the action it projects (Jones, 1986).

This demonstrates that consumers must be aware of a product’s existence, be interested

enough to pay attention to the product’s features, benefits, and develop a strong desire to

have benefits from the products offerings. Thus the fourth stage (action) would come as a

result of the individual’s movement through the three stages of awareness, interest and desire.

Bovee et al. (1995) indicates that whatever the variety, these models are based on the

assumption that people first learn something from advertising, then form feelings about the

product in question. Finally, they take action (purchasing a product). This order of stages is

often called the “learn-feel-do sequence” (Bovee et al., 1995). In reference to the AIDA

model, advertising is aimed at generating a strong desire which can stimulate or trigger an

audience to take action about a product. This clearly shows that the level of impact an advert

may have on a consumer depends on the interest and desire created in the ad. This may or

may not lead to an action (purchasing) towards the product being advertised.

Frequency of exposure can be a contributing factor to gradually generate consumer interest,

desire and lead to action that contributes to patronage. In an effort to improve messaging and

to gain the audience’s attention, advertisers create branding and moments that will resonate

with target markets and motivate the audience to purchase the advertised product or service

(Abiodum, 2011). The model is shown in Figure 2 – (i).

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Figure 2- (i). AIDA model

(Source; http://www.guerrillaonline.com/date/up-editor_1254654669976.jpg)

The Hierarchy of Effect Model

According to Barry (1987), the review of the advertising and marketing literature leads to the

conclusion that there is not one but many hierarchy of effects (Barry, 1987: 253). William J.

McGuire (1969) is one of the proponents identified with the hierarchy of effects model.

McGuire presented a paper on the topic “An information-processing Model of Advertising

Effectiveness” to symposium on Behavioural and Management Science in Marketing, at the

University of Chicago. He identifies the fact that it is necessary for an advertiser to place

their advertising in the appropriate media. This is very important to achieve message

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exposure. McGuire also believes that this will give the consumer the opportunity to process

the message effectively by using this theory (McGuire, 1969).

In the hierarchy of effect model, the consumer goes through a number of processes after

being exposed to an advert. McGuire identifies the processes to be;

Consumer attention (Awareness)

Message comprehension (Knowledge)

Message acceptance (Liking)

Selective perception (Preference)

Selective retention (Conviction)

Action (Purchase)

(McGuire, 1969).

Every advertiser is keen to consumer attention. Advertising must therefore be placed

strategically to stimulate the mental efforts of a consumer. The theory depicts that, the

physical properties of an advert is the primary requirement to get the consumer’s attention.

For broadcast-adverts, the motion and picture quality are essential. The size, columns,

visibility and brightness are keen for billboards and print advertising (Sandage and Fryburger,

1967).

The time of exposure to adverts, and the consumer’s prior product knowledge is a key factor

for consumer motivation and comprehension. Here the adverts enable the consumer to be able

to grasp the meaning of the advertising content. Usually, adverts that have catchy phrases,

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and words repeated at the end frequently become easy to store in the memory (Vaughn,

1980).

If the advertising message is easy to comprehend by the consumer, message acceptance is

likely to occur (Roland, 1986). The consumer will begin to develop a favourable attitude

towards the product. This usually occurs when the consumer believes the information

propagated in the advertisement is true and helpful to satisfying their need. There is a

cognitive and physical response towards the advert. It is presumed that the achievement of

this stage is positive and could lead to an action (purchasing) (Robertson, 1971). Ideally, a

consumer may choose to buy Milo over Bournvita due to his or her acceptance of the

products. Even though Milo and Bournvita serve the same purpose, comprehension and

message acceptance in their advertisement may influence the consumer’s choice. The stages

of this model are shown in figure 2 –(ii).

Figure 2- (ii). Hierarchy of effect model

(Source; http://www.marketingsavant.com/wp-content/upload/2009/06/think-feel-do_1-

300x207.jpg)

After getting the public’s attention, it is necessary for the consumer to understand and

interpret the advertising message as intended by the advertiser. Acceptances of Advertising

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messages tend to create consumer selective perception, at this stage, the consumer is likely to

notice certain ads over others (Robertson, 1971). Selective retention will occur for a product

design because they convince the public to pay attention to the advert. Advertisers and

Advertising agencies must consider appropriate messages that can be easily comprehended,

accepted and retained by their target audience. This will create, improve or maximize the

impact expected on viewers (consumers) of these advertisements to relate themselves to the

product being advertised.

Magic Bullet Theory (Hypodermic needle)

This theory was propounded by Harold Laswell (1948). The theory propagates the media as a

force that has direct, immediate and powerful effects on its audience. This theory depicts that

the mass media are directly responsible for controlling what people think and in many ways

how they behave (Defleur,2009). The metaphorical words “bullet” or “needle” used shows a

literary influence of how the media directly shoots or injects information into the heads of its

audience. This information are designed to trigger a desired response (Harris, 1969).

There is a powerful connection between the sender (media) and the receiver (audience).

Laswell believed that the receiver at the other end of the chain is powerless to resist the

power “impact” of messages sent from the media (Faris, 1952).

Defleur, with reference to the magic bullet theory describes the mass media as directly

responsible for controlling what people think, and how they behave. He states that the media

sway their audiences almost at will, bringing them to believe and behave in ways dictated by

those who controlled their content (Defleur, 2009).

This describes the audiences’ inability to escape from messages injected or shot at them

through the various media outlets. Immediate influence of the messages transmitted might not

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force the audience (consumer) to respond or purchase. Rather, the aim of creating awareness

of the product or service in the minds of the consumers will be achieved. This can affect the

individuals purchasing decision in the long run (Defleur & Dennis, 1991).

2.3. REVIEW OF RELATED STUDIES

Rai (2013), researched on the “impact of advertising on consumer behaviour and attitude with

reference to consumer durables” for the International Journal of Management Research and

Business Strategy (IJMRBS). Rai states specifically that in this information era and media

world, “Advertising plays a major role in changing the behaviour and attitude of consumers.”

He further explains that this change in behaviour and attitude is towards the products that are

shown in advertisements. Rai believes that when a consumer is exposed to an advert, it alters

the attitude with which they look at the product. In reference to the purchasing decision of the

consumer, Rai indicates that “Advertising has great influence in the purchasing decision of

customers for particular brands.”

The research explains how people use advertising as a guide to decide what the clothes,

beverages, fragrances and durables are “right.” Rai’s research was based on two objectives.

First, Rai wanted to examine the influence of advertising on attitude formation of consumers.

Secondly, he was interested in determining the influence of advertising on attitude formation

of consumers. In studying the attitudes of consumers, Rai observes that if a consumer notices

messages for two different firm’s products, he or she judges the message content in terms of

which one he or she perceives to be better. The consumer believes the better advertisement’s

product will definitely have more features and so be of higher value. Rai explains that all the

efforts to make an advertisement successful are centered on the sole aim of making it so

effective and persuasive in a natural way so as to serve the purpose of meeting the consumer

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psyche in a positive manner. According to Reader’s Digest surveys cited in (Rai, 2013), a

research was conducted annually since 2000 and asking respondents which brands they

trusted most for several product categories. There are several national brands that have

remained strong in the face of the power of the large multinationals. “These are national

brands that are either old or include important national values in their advertising or both”

(Rai, 2013; www.rdtrustedbrands.com)

Rai in his findings concluded that advertisement worldwide influence the behaviour and

attitude formation of consumers not only in India but also worldwide. The consumers of

durable products have their motivational sources which are advertisements and study

revealed that advertisement promotion motivates them to materialize the purchase of

durables. The consumers are induced significantly by advertisements when the target is on

quality and price. Purchase attitude and behavior is influenced by variety of advertisements

which cover product evaluation and brand recognition (Rai , 2013).

Yelbert (2010) conducted a research on the effects of advertisement of hair products on

students’ purchasing habit. She had the ultimate objective to determine whether the

information provided during advertising was adequate to fully inform students about the

effects of the product. Yelbert was also interested in whether students buy product because of

models in advertisements. She considerably looked at the effects of advertising image on

cultural perceptions of students. Yelbert’s research revealed that some people had a negative

perception about advertising. They described advertising as a way of promoting inferior

products to increase sales. Also, advertisers did not give full information about product her

research findings indicated that many students are influenced to adopt hairstyles in

advertisements. They buy a particular product due to the quality of the product portrayed in

the advertisement. Yelbert concludes that advertising has a positive and negative effect on

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consumers. She quotes Shimp, T.A (2000) “whether consumers ultimately purchase a product

depends on whether the promotion and communication variables facilitate purchasing”

(Shimp, 2000; Yelbert, 2010). Yelbert found out that even though some students were

influenced by advertising, others did not form their purchasing habits based on advertising.

They rather had the impression that advertising was a way to deceive them and make them

buy products they do not actually need (Yelbert, 2013).

Niazi et al. (2012) conducted a research on effective advertising and its influence on

consumer buying behaviour (information management and business review). This research

established that advertising is an effective tool to attract people and to divert their attitude

positively toward a product. The research revealed that there is a moderate relationship

between consumer purchase attention, environmental factors and emotional factors. If the

consumer is emotionally attached with the product, he or she will prefer to patronize that

product. Sometimes people change their brands just to test the other brands. Purchasing

powers of people also change with a change in factors such as income level and men mostly

prefer the advertisement than women according to Variawa (2010). Advertisement convinces

people to use the product at least once in their lives. Celebrities used in advertising also

contribute a greater positive influence on people. Mostly, people rely on advertisements

rather than other sources like family, friends and reference group opinions regarding products

(Bashir & Malik, 2009). Consequently, advertising has a vital role in modern age because it is

a mechanism to build the behaviour of society regarding products. People get access to

information and make decisions regarding product purchase (Niazi, et al., 2012: 114-119).

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A survey was conducted by Source Dynamic Logic in 2009. The focus was on consumer

behaviour to types of advertisements on television, online media outlets and magazines. The

survey revealed that advertisements have modified consumer behaviour in such a way that

they only go for brand favourability despite advertising awareness in every type of media.

The finding of the survey is shown in Figure 2-(iii).

Figure 2- (iii). Findings of survey by Dynamic Logic

(Source: Rai, 2013: ; Dynamic Logic, 2009)

In the sample of advertisements that was analyzed, only 5.5% were viewed as including

global culture symbols compared with 25.6% in the other countries. The spread of global

symbols, however, does not necessarily include homogeneity of people’s habits or values

(Featherstone, 1991). In practice, notwithstanding the worldwide reach of television and the

Internet, in many areas of people’s lives, in consumption or entertainment habits, be it music

or sports, the people of different nations continue to have different habits, tastes, and

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loyalties. Instead of causing homogenization, globalization is the reason for the revival of

local cultural identities in different parts of the world (Giddens, 2000).

The findings show that magazine advertisements provide great impact on purchasing

behaviour of consumers. People go for purchasing according to the product value shown in

advertisements in-spite of the cost of the products. As a result of this, they spend a lot more

than actual value only due to the influence of advertisement.

A recent study “The impact of point of purchase advertising on consumer buying behaviour”

by Amechi & Long (2013) reveals a connection between advertising and the point of

purchase of the consumer. The study which was conducted for the Universiti Teknologi

Malaysia (UTM), states that “Consumer buying behaviour in recent time is been driven by

point of purchase advertising.” Existing queries on marketing communications effectiveness

initiates an increase in sales volume and brand building. This study focuses on advertising

strategies, medium, message, method, timing and their implications on achieving tactical

marketing and sales objectives. The cause and effect relationship between point of purchase

advertising and consumer purchase behaviour was established through extensive review of

relevant literature. This research was aimed at providing recommendations that will aid

corporate organizations enhance their advertising and marketing strategies towards increasing

overall sales. According to the study, Quelch (2006) identifies point of purchase as the “most

suitable place and period to communicate with consumers” since it is where they make their

brand choice decisions. It is the time and place at which all elements of sale (consumer,

money, and product) come together. Fitzgerald (2006) believes that the consumer’s in-store

behaviour has been described in the following terms that highlight the importance of point of

purchase advertising; “shoppers are explorers. They are on safari, hunting for bargains, new

products and different items to add excitement to their everyday lives. Three of every four are

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open to new experiences as they browse the aisles of supermarkets and search for bargains at

drugstores and mass merchandisers”. This translates into an opportunity to make a

measurable impact just when shoppers are most receptive to new product ideas and

alternative brands. Savvy marketers realize that the in-store environment is the best chance to

make a difference.

Advertising itself is an element of promotion, which is one of the basic marketing concepts or

one of the basic elements of the marketing mix (Perreault & McCarthy, 1997 : 40). Moe

(2006) presents a broad view of the concept of advertising: He believes that we cannot fully

understand the concept of advertising without seeing it from the communication and

marketing perspectives. He says further that advertising touches on almost all aspects of

modern society and human existence, its basic functions and roles are basically

communication and marketing oriented. A critical assessment of advertising trends gives an

insight into the captures and communicates the needs and wants of the modern man. “It

expresses how humans have evolved from agrarian, basic existence/basic survival reality to a

more sophisticated or advanced status” (Rojas-Méndez, et al., 2005).

Abiodum (2011) conducted a research on the topic “impact of advertising on sales volume of

a product.” Abiodum’s main aim was to identify and demonstrate the impact of advertising

on sales and profit of a business organization taking Starcomms Plc as a case study. His work

also had the objective to identify how this sales volume can keep the company going. In

Abiodum’s work he states that “in a growing economy such as Nigeria, it is often very

difficult to have a regular and consistent increase in the sales volume of a product because of

the political and socio-economic instability in the country which directly affect the standard

of living and the purchasing power of the consumers.” He identifies the fact that good

advertising requires competent personnel including a number of specialists to enable it thrive

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in the ever dynamic and competitive business environment. Abiodum recognised the role

advertising can play and states that “a growing number of companies and establishments have

to embark on a nationwide advertising campaign.” His research revealed that in some cases,

advertising informed by depressed consumer demand thrive by persuading the consumer on

the need for consumptions. Abiodum’s work depicts and a shed light on how advertising can

really affect a consumer’s buying decisions in a growing economy like that of Nigeria. It also

shows how successful advertising can keep business going even in the midst of tough

completion (Abiodum, 2011). Abiodum in His research examined how marketing managers

determine which advertising tool will be most effective. Also he studied the advertising

program of the company and a cost benefit analysis of the advertising tools employed by the

company.

Abiodum in his findings explain that the role of advertising on the sales volume of a product

is very important because consumers’ decisions as regards what to buy is motivated by what

has been seen heard of or practically used. Advertising helps in that it carries the messages

far and wide to a scatted target audience that the advertiser or producer could not have

reached it at once so easily. Abiodum states that from the responses of respondents who filled

his questionnaire, the organization is unrelenting in its efforts to ensure effective advertising

programme for their various services and products. In the mind of the consumers, the

company was also using advertising strategies suitable for the company as well as the

markets in which it exists. More of the findings reveal that the advertising position of a

product or service is strong in the mind of the consumer on order to encourage repeated

purchase of the product, so that the competitors will not have an edge over them. This also

creates brand loyalty and product differentiation.

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It is clearly evident in all these studies that there is a relationship between advertising and

consumer purchasing behaviour. The various findings and conclusions show that advertisers

play an important role in order to change, alter or influence an individual’s choice of product

and service. In Yelbert’s (2010) research, she concluded that some people perceived

advertising in a negative way and therefore were not influenced by it to make their purchases.

This creates the conception that advertising may have a significant impact on consumers but

the concept might not absolute. The related works also show that even if advertising does not

succeed in getting people to buy the product, it achieves a stage of creating awareness and

attention to the product or service. Abiodum in his conclusion states that advertising has

taken Starcomms Plc far in their industry and built up a strong image for the company but

due to recent relent in their advertising effort, some little problems have been identified there

(Abiodum, 2011).

2.4. HYPOTHESIS TO BE TESTED

Advertising has a significant impact on the purchasing decision of consumers.

2.5. RATIONALE FOR THE HYPOTHESIS

The hypothesis to be tested forms the basis for the investigation of the topic “The Impact of

advertising on consumer purchase decisions.” In this topic, there are two variables.

Advertising and Consumer purchase decisions. “Advertising” is the independent variable and

“consumer purchase decision” is the dependent variable. This research seeks to identify the

link between the two, and how much influence advertising has on the consumer’s decision to

purchase.

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2.6. OPERATIONAL DEFINITIONS OF TERMS

Advertising: The promotion of a product (goods and services) through media outlets

(Television, radio, websites, newspapers, billboards).

Communication theories / model: A body of rules and principles that applies to or

guides the communication process.

Consumer: Someone who buys and or consumes something.

Dependent variable: A component that changes based on the value of other

components.

Effect: A change or changed state occurring as a direct result of action by somebody

or something else.

Hypothesis: Educated guesses about the relationship between things.

Independent variable: A component whose specified value determines the value of

another variable.

Marketing mix: The controllable variables that a company puts together to satisfy a

target group.

Needs: The basic wants that motivates a person to use or do something.

Purchase: The action of buying a product.

Perception: How we gather and interpret information from the world around us.

Target audience: A group of consumers to whom a company wishes to appeal to.

(Microsoft Encarta Student Dictionary; Perreault & McCarthy, 1997 :G1-G11)

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CHAPTER THREE

3. METHODOLOGY

3.1. INTRODUCTION

Research is a structured enquiry that utilizes acceptable scientific methodology to solve

problems and create new knowledge that is generally applicable (Dawson, 2002). Scientific

methods consist of systematic observation, classification and interpretation of data (Kothari,

1985).This chapter deals with methods the researcher used in gathering and analyzing data

collected. As to achieve a good result of this research work, the data collected must be

reliable, credible and relevant. Therefore, techniques and methods which will be convenient

to use are employed under specific situations to give an accurate, valid and satisfactory

analysis of data. It includes the research design, the population, the sampling technique, and

the sample size. With regards to data collection procedure, the researcher relied on both

primary and secondary data.

Primary data were collected by the researcher himself and for his own project. In situations

where secondary data are not available and cannot answer the research questions, one has to

acquire data that is directly relevant to the problem (Hoang, 2013). Despite the fact that

collecting primary data consumes a lot of time and depends significantly to willingness,

capability and honesty of respondents, it provides prosperous information for the researcher.

The findings to research questions with reference to the topic “Impact of advertising on

consumer purchase decisions” is obtained mostly from primary data. This data was collected

from empirical research results.

Secondary data are existing and available data collected by others. These data have already

been collected for some other purpose (Aaker et al., 2003). Researchers are advised to start

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with examining secondary sources of information (Proctor, 2003). Secondary data are useful

not only for solving the research problem but also to better understand and explain the

research problems (Hoang 2013). In this study, the researcher initially gathered information,

studies related to emotions as messages appeals, consumer behaviour, and marketing

communication. Secondary data was obtained from various sources such as books, journal

articles and several online data sources.

3.2. DESIGN

Research design refers to the way information is gathered from subjects and, in the case of

experimental research, the nature of the treatments that are controlled by the investigator.

This study adopts the quantitative approach of data gathering. This approach is concerned

with the acquisition and interpretation of data that is presented in the form of discrete units.

The data can be compared with other units by using statistical techniques (Gall et al., 1996).

Quantitative research approach attempts to discover something about a large group of

individuals by studying such smaller group. Unlike qualitative research, quantitative methods

are those which emphasize on facts, numbers and frequencies. The respondents can represent

the opinions of the whole population (Hoang, 2013). The larger group is the population and

the smaller group is referred to as the sample (Gall et al., 1996). Quantitative research is

based on the quantitative measurements of some characteristics. It is applicable to

phenomena that can be expressed in terms of quantities. It can also be explained as fields of

study that can adopt the positivist philosophy of knowing that emphasizes objectivity and

quantification of phenomenon (Kumar, 2005). This maximizes objectivity through the use of

numbers, statistics, structure, and experimental control. The researcher did a pretest of the

questionnaires by getting subject’s insight about the relationship between advertising and the

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decision to purchase. This process also helped to refine the questionnaire, enhance its

readability and minimize the chances of data being misinterpreted.

In this study, self-administered questionnaire is chosen to collect data about consumer’s

purchasing behaviour with relation to advertising. The questionnaire is designed to find out

consumer’s pattern in making decisions of whether to buy a product or not. The questions

collect demographic information and type of purchase decision from the respondents.

3.3. SUBJECTS / POPULATION AND SAMPLE

To achieve good population validity, Quantitative researchers must select the sample

randomly from the defined population to which they wish to generalize their results (Gall et

al., 1996). The defined target population for the study was the students of the Ghana Institute

of Journalism from the ages of eighteen (18) years and above. The total population (target

population) of students of the Ghana Institute of Journalism was one thousand eight hundred

and thirty one (1,831). The population represents the larger group which the researcher

intends to generalize the results of the research. However, due to the large size of the

population, the researcher cannot test every individual in the population. This limitation is

due to cost and limited time, accessible population was therefore used for this research. The

researcher selected an accessible population from the target population and from this

accessible population, the researcher drew his sample. The accessible population used was

one hundred and six (106) degree regular final year (Level 400) students out of the overall

target population of one thousand eight hundred and thirty one (1,831). The researcher relies

on the sampling technique to select respondents.

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Sampling refers to the process of selecting a group (sample) from a defined population with

the intent that the sample will accurately represent that population (Gall et al., 1996 : 220).

The advantage of selecting a small sample from a larger target population is that it saves the

researcher time and high expenses of studying the entire population. The cost of sampling

subjects or respondents over a wide geographic area is lower and the time required to collect

the data typically is much less (Kumar, 2005).

Random sampling means that every individual in the population has an equal chance of being

selected as a member of the sample. The independent and equal chance indicates that the

selection of one individual has no effect on the selection of any other individual. The simple

random sampling method has the advantage of yielding research data that can be generalized

to a larger population within margins of error. This can be determined by statistical formulas.

Simple random sampling is also preferred because it satisfies the logical by which a null

hypothesis is tested using inferential statistics (Gall et al., 1996: 221-223).

The sample selected usually represents the larger group from which they were selected. In

this case, the researcher randomly selects subjects that are considered to be representative of

the target population. The study used a sample of approximately sixty two percent (62%) out

of one hundred and six (106) degree regular final year (Level 400) students (accessible

population). The sample was sixty five (65) out of the one hundred and six (106) degree

regular final year (Level 400) students of the Ghana Institute of Journalism.

Characteristics of Sample:

i. Must be a student of the Ghana Institute of Journalism.

ii. Must be a degree regular final year (Level 400) student.

iii. Must use at least one source of media.

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iv. Must be 18 years and above.

3.4. INSTRUMENTS FOR DATA COLLECTION

Questionnaire is the main instrument used in this study. According to the oxford leaner’s

dictionary (seventh edition), “a questionnaire is a written list of questions that are answered

by a number of people so that information can be collected from the answers.” This is a

document that asks same questions of individuals in a sample. Thus a questionnaire is a

technique of data collected where different people are asked to respond to the same set of

questions in a predetermined order. It includes structured interviews and telephone questions

as well as those in which the questions are answered without an interviewer present. Subjects

usually record a written response to each questionnaire item Subjects can fill out the

questionnaire at their convenience and answer the items in any order. They may skip

questions as well as give unique responses. Questionnaires are used extensively in

educational research to collect information that is not directly observable. These data

collection method typically inquires about the feelings, motivations, attitudes,

accomplishments and experiences of individuals. A wide range of issues can be investigated

with questionnaires. Questionnaire is commonly used in quantitative research because it is a

standardized highly structured and is compatible with the approach. A questionnaire often

solicits respondent’s opinion about a particular topic or issue (Gall et al., 1996: 288 - 289).

The questionnaire used is very flexible. There are three basic types of questionnaire. The

close-ended, open ended and a combination of both (Kumar, 2005). The questionnaire

contains both close ended and open ended questions. This makes it possible to find out how

many people use a product or service and what they think of it in the same form (Kumar,

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2005). The close – ended questions include all possible answers or prewritten response

categories. Respondents are asked to choose their answer among the options. This type of

question is used to generate statistics in quantitative research. Also because these follow a set

of format, most responses can be entered easily into a computer for easy analysis (Dawson,

2002). The open – ended questions allow respondents to answer in their own words. This

kind of questions does not contain boxes to tick but instead leaves a blank section for

respondents to write in an answer. Due to the fact that there are no standard answers to these

questions, data analysis is more complex. This is because opinions are sought rather than

numbers. Fewer open-ended questions were included. Whereas closed-ended questionnaires

might be used to find out how many people use a product or service, open-ended

questionnaires might be used to find out what people think about a service (Kothari, 1985).

The research questionnaire seeks to answer questions about;

1. Consumer perception of advertising.

2. Personal experience with advertised products.

3. Satisfaction level after purchasing and using advertised products.

4. Impact of advertisement on the consumer’s buying decision.

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CHAPTER FOUR

4. ANALYSIS AND FINDINGS

4.1. INTRODUCTION

In this chapter, findings and analysis of data collected with questionnaires will be presented

with the aid of tables, pie charts and graphs. Microsoft Excel and SPSS were the data entry

software used to assist the researcher to reach reliable and appropriate results from the

responses of the questionnaire administered.

4.2. ANALYSIS AND FINDINGS

4A; Sixty five (65) questionnaires were distributed randomly to sixty-five (65) final year

students (Level 400) of the Ghana Institute of Journalism. All sixty five questionnaires were

collected and there was no disqualified questionnaire. Majority of the respondents were

females. There were forty-one (41) females out of the total number of sixty five (65)

respondents representing sixty-three percent (63%) of the total percentage of respondents.

The male respondents were twenty-four (24) out of the sixty-five respondents representing

thirty-seven percent (37%) of the total number of respondents. The chart below shows the

gender distribution of respondents in figure 4 – (i).

Figure 4- (i). Gender distribution of respondents

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4B; The questionnaire provided an age range specification of eighteen to twenty-one years

(18-21), twenty-two to twenty-five years (22-25), and twenty-six years and above (26 and

above). Most of the respondents who were randomly selected fall between the age range of

twenty-two to twenty-five years (22-25) representing sixty-nine percent (69%) of the total

number. Respondents between the ages of eighteen to twenty-one years (18-21) and twenty-

six years and above (26 and above) both represented fifteen percent of the total number

(15%). The age distribution of respondents s represented in figure 4 – (ii).

Figure 4- (ii). Age range of respondents

4C; Figure 4 – (iii) shows the response to question three (3) on the questionnaire distributed.

The question was “Have you ever been exposed to advertisement of any kind?” All the

respondents answered “Yes” to this question. This is a clear indication that everyone is one

way or the other exposed to advertisement.

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Figure 4- (iii). Exposure to advertisement

4D; The advertising media is the “means by which the message is communicated to the target

audience” (Berkowitz et al. 1992). The fourth question was to identify which advertising

medium people are usually exposed to. This was a multiple response question and therefore

respondents were at liberty to choose more than one of the options provided. A total number

of one-hundred and sixty four (164) were given representing two hundred and twenty four

point six percent of cases (224.6%). Fifty one (51) respondents selected television

representing seventy eight point five percent of cases (78.5%). Thirty four (34) respondents

selected radio representing fifty two point three percent of cases (52.3%). Internet was

selected twelve (12) times representing eighteen point five percent of cases (18.5%). Twelve

responses were also given to newspapers representing eighteen point five percent of cases

(18.5%). Billboard was selected thirty seven times representing fifty six point nine percent of

cases (56.9%). This responses show that even though people may be exposed to

advertisement on several media platforms, the frequency of exposure varies. The responses

given indicated that most of the respondents were exposed more to advertisements on

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39

television. According to Berkowitz et al. (1992), Television is considered to be a valuable

medium because “it communicates with both sight and sound” (Berkowitz, et al., 1992 : 504).

The information is illustrated in table 4 – (i).

Which advertising

media gets your

attention?

Responses Percent

of Cases N Percent

Television

Radio

51

34

34.9%

23.3%

78.5%

52.3%

Internet 12 8.2% 18.5%

Newspapers 12 8.2% 18.5%

Billboards 37 25.3% 56.9%

Total 164 100.0% 224.6%

Table 4- (i). Medium of exposure

4E; According to responses given to the question “which times of the day are you often

exposed to advertisements?” most people are usually exposed to advertisement in the

evening. This question was a multiple choice question. One hundred and sixteen (116)

responses were generated from this question amounting to one hundred and seventy-eight

percent (178%) of cases. Out of this total number of responses, evening was the highest with

fifty (50) representing seventy six point nine percent (76.9%) of cases. Exposure to

advertisement in the afternoon was second with thirty two (32) responses representing forty

nine point two percent (49.2%) of cases. Morning was next with twenty eight (28) responses

representing forty three point one percent (43.1%) of cases. Exposure to advertisement at late

night was the least with six (6) responses representing nine point two (9.2%) of cases. This

information is shown in Table 4 -(ii).

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Which times of the day are

you often exposed to

advertisements?

Responses

Percent

of Cases N Percent

morning 28 24.1% 43.1%

afternoon 32 27.6% 49.2%

evening 50 43.1% 76.9%

late night 6 5.2% 9.2%

Total 116 100.0% 178.5%

Table 4- (ii). Time of exposure

4F; Question six (6) was to indicate how often people were exposed to these advertisements.

The options to indicate the frequency range were “never”, “every day”, “2-3 times per week”,

and “once in two weeks”. Every day was dominant with forty-nine (49) responses out of the

total number of sixty-five (65) representing seventy-five percent (75%). Two to three times

(2-3) per week was next with fifteen (15) responses representing twenty-three percent (23%).

Once in two weeks was least with only one (1) response representing two percent (2%). This

information is shown in figure 4 – (iv).

75%

23%2%

how often are you exposed to these advertisement?

everyday

2 - 3 times per week

once in two weeks

Figure 4- (iv). Frequency of exposure

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4G; Responses given to the question “Please indicate your evaluation of the advertisements

you have been exposed to?” was one-hundred and ninety two (192). This was a multiple

choice question giving respondents the chance to select more than one option. Majority of the

respondents indicated that the advertisements they were exposed to were Attractive with

forty-seven (47) responses representing seventy two point three percent of cases (72.3%).

Responses for informative was forty-five (45) representing sixty nine point one percent of

cases (69.2%). Choice for interesting was forty-one (41) representing sixty three point one

percent of cases (63.1%). Response for entertaining was thirty-six (36) representing fifty five

point four (55.4%) percent of cases. Professional had sixteen (16) responses representing

twenty four point six (24.6%) percent of cases and effective was seven (7) representing ten

point eight (10.8) percent of cases. This represents a total of two-hundred and ninety-five

point four percent of cases (295.4%). This information is shown in table 4 – (iii) below.

Please indicate your evaluation

of the advertisements you have

been exposed to.

Responses

Percent of

Cases N Percent

Attractive 47 24.5% 72.3%

Interesting 41 21.4% 63.1%

Informative 45 23.4% 69.2%

Professional 16 8.3% 24.6%

Entertaining 36 18.8% 55.4%

Effective 7 3.6% 10.8%

Total 192 100.0% 295.4%

Table 4- (iii). Evaluation of advertisement

4H; The question “do you believe in advertising messages” has the objective of finding out

the level of trust people have in advertising messages. Out of the sixty-five (65) respondents,

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forty-two (42) answered “yes” representing sixty five (65%) of the total number. Twenty-

three (23) people answered “no” representing thirty-five percent (35%) of the total number.

This information is shown in figure 4 – (v).

Figure 4- (v). Believe in advertisement

4I; Majority of the respondents including those who do not believe advertising messages

consider advertising to be important. Out of the total sixty-five (65) respondents, sixty-four

(64) representing ninety-eight percent (98%) answered “yes” and one (1) representing two

percent (2%) answered “no” to the question “do you think advertising is important?” the data

is represented in figure 4 – (vi).

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2%

98%

Do you think adverting is important?

no

yes

Figure 4- (vi). Importance of advertisement

4J; The respondents were asked if they buy products solely based on advertising. Thirty-five

(35) people answered “sometimes” representing fifty-three point eight percent (53.8%) of the

total number. Twenty-five (25) people answered “no” representing thirty-eight point five

percent (38.5%) of the total number. Four (4) people answered “most times” representing six

point two percent (6.2%) of the total number. One (1) person answered “yes” representing

one point five (1.5%) of the total number of respondents. This information is shown in figure

4 – (vii).

0.0

20.0

40.0

60.0

yes no sometimes most times

1.5

38.5

53.8

6.2

per

cen

tage

of

resp

on

den

ts

Response

DO YOU BUY PRODUCTS BASED SOLEY ON ADVERTISING?

Figure 4- (vii). Purchase based solely on advertisement

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4K; The questionnaire asked people if they have purchased any product recently after coming

across the advertisement. Twenty-eight (28) respondents answered “yes” representing forty-

three percent (43%) of the total number of responses. Thirty-seven (37) respondents

answered “no” representing fifty-seven percent (57) of the total number of responses given.

The data for this question is shown in figure 4 – (viii).

NO - 57%

YES - 43%

HAVE YOU PURCHASED ANY PRODUCTS RECENTLY AFTER COMING ACROSS THE ADVERTISEMENT?

Figure 4- (viii). Purchasing an advertised product

4L; To enable the evaluation of the several reasons that inform a consumer’s choice to buy,

respondents were asked about factors that influence their purchasing decision. This was a

multiple choice question to give respondents the chance to select any number of answers as

well as provide answers in their own words in a space provided for other specifications. The

responses to this question are shown in table 4 – (iv).

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Which of these factors influence your

purchasing of a product?

Responses Percent

of

Cases N Percent

the advertisement was interesting 26 26.8% 41.3%

I was curious about the product 23 23.7% 36.5%

it was a familiar products or brand 26 26.8% 41.3%

I was already planning to buy that

particular product

17

17.5%

27.0%

Other 5 5.2% 7.9%

Total 97 100.0% 154.0%

Table 4- (iv). Factors that influence purchasing

In table 4 – (iv), the total number of responses for this question is ninety seven (97). Twenty

six respondents selected interesting and purchasing familiar products or brands. These

options both represent forty one point three (41.3%) percent of cases. Twenty three people

responded to purchase products they were curious about representing thirty six point five

(36.5%) percent of cases. Seventeen respondents were already planning to buy that particular

product representing twenty seven (27.0%) percent of cases. Five (5) people selected other

representing seven point nine (7.9%) percent of cases. The total percentage of cases is one

hundred and four (154.0%). It can be seen that most people were influenced by

advertisements they considered to be interesting. Also, majority of the respondents also

indicated that their purchasing decision is influenced by products or brands they consider

familiar. Respondents who specified other reasons stated factors such as recommendation

from friends, packaging, the need for the product and quality of the product.

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4M; The researcher was also interested in the satisfaction level of respondents after

purchasing an advertised product. The question provided answers ranging from “very

satisfied”, “satisfied”, “neutral”, to “unsatisfied”, and “very unsatisfied”. Three (3) people

answered very satisfied representing four point six percent (4.6%) of the total percentage.

Thirty-one (31) people answered satisfied representing forty-seven point seven percent

(47.7%) of the total percentage. Twenty-six (26) people answered neutral representing forty

percent (40%) of the total percentage. Two (2) people answered unsatisfied representing three

point one percent (3.1%) of the total percentage. Three (3) people answered very unsatisfied

representing four point six percent (4.6%) of the total percentage of respondents. This

information is shown in figure 4- (ix).

0.05.0

10.015.020.025.030.035.040.045.050.0

4.6

47.7 40.0

3.1 4.6

per

cen

tage

of

resp

on

den

ts

Response

W H AT I S Y O U R L E V E L O F SAT I SFAC T I O N AFT E R PU RC H ASI NG AN AD V E RT I SE D PRO D U C T S?

Figure 4-(ix). Satisfaction level of using advertised products

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CHAPTER FIVE

5. DISCUSSIONS AND CONCLUSIONS

5.1. INTRODUCTION

This chapter discusses the findings and data analysis of responses generated with the

questionnaire. The researcher reaches a conclusion that explains the impact of advertising on

the consumer’s decision to patronize a product or service.

5.2. DISCUSSIONS

Majority of the respondents described advertisements they were exposed to as attractive,

interesting and informative. This forms the awareness stage and grabs the attention of the

consumer. Most people are likely to choose a particular product over others if they find the

advertisement exciting and informative enough. In the theoretical framework, the steps

indicated by the AIDA model identifies that when a person is attracted and aware of a

product’s features, it can create interest leading to desire and action (Purchasing of the

product). Some people believe that as long as they have been exposed to the advertisement of

a product, it is authentic and better than its competitors.

Apart from advertising been a factor for purchasing a product, people care a lot about

packaging and endorsement of a product by friends and families who have attained some

substantial level of satisfaction from the product. Even though people may sometimes buy a

product based solely on advertising, they still care about product quality and satisfaction.

Most people are disappointed when the products do not serve the purpose for which they

were portrayed in advertisements to be and seek that satisfaction from other similar products.

From the data collected majority of the total respondents believe advertising messages.

However, they do not always buy a product solely based on advertisements. This can be

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48

linked to the argument made by my friend that, he does not buy products because of its

advertisements but rather other convincing factors from friends and satisfaction level. The

2Twi proverb “Awhini pa nkasa3” used gives the impression that consumers will become

customers if they are satisfied with a product without being frequently exposed to its

advertisement. This gives a perception of quality control in Ghana in the local context.

Others also indicated that advertising can sometimes be deceptive and misleading. People do

not only want to understand the motives, methods and practices of advertisers but also try to

identify how to use advertising wisely in order to satisfy specific needs. The stages a buyer

goes through in making choices about which product and services to patronise is the purchase

decision process. This begins from problem recognition, information search, alternative

evaluation, purchase decision to post purchase decision (Berkowitz, et al., 1992 : 112).

Also, the most prominent advertising medium as examined by this study is television. It is

therefore very imortant that advertisers select and frequently repeat advertisements through

the right medium to send the messages across. The media selection decision must be related

to target audience, type of product, nature of message, campaign objectives and altenate

media. The signal strength and reach of a radio or teleision station is a factor in judging how

many target audience may be exposed to the advertisement. The potential audience of

outdoor advertising such as billboards is composed of those people physically in a position to

see a sign (Wray, 1990: 77).

Most people according to the findings are satisfied at the stage of post purchasing after

buying an advertised product. For this reason they have become potential customers choosing

2 Twi is a language of the Akan people in Ghana.

3 Good things will sell themselves (literally - without talking)

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that particular product over its competitors. Those who are disappointed after using a product

cease to be customers and further discourage others from buying the product. According to

Hansen (1972), consumers consider basic motivation to be very strong and therefore, must be

satisfied (Hansen, 1972: 23).

5.3. CONCLUSIONS

According to Cappo (2003), Advertising is not enough to capture and keep clients (p. 43).

This is reflected in the findings of this research. The responses and results indicate clearly

that advertising has a significant level of influence in the consumer’s decision to purchase.

However, this is not absolute. Advertising may serve as a platform to inform or remind

consumers of the existence of a product but the purchase decision needs more than that. After

purchase, the buyer begins evaluating the product to ascertain if its actual performance meets

expected levels (Pride & Ferrell, 2008: 126).The consumer must be satisfied and convinced

with all other factors such as packaging, product quality, and endorsement among others to

take an action towards the product. Companies must improve on their services and be more

concerned with giving adequate information in advertisements to be able to meet the

expectations of potential customers.

5.4. LIMITATIONS OF STUDY

The research seeks to go as far as to identify the extent to which advertising influences the

consumer. However, it was limited by factors such as;

a) Inadequate time.

The project submission deadline hindered the researcher’s ability to gather enough

information from all relevant sources. Also, during the time of conducting this study,

the researcher was engaged in other academic activities.

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b) Lack of enough funds and resources.

This research used only sixty-five (65) respondents out of the accessible population of

one hundred and six (106). This was due to the limited budget available to the

researcher.

c) The possibility of some respondents giving false answers.

The data collected with questionnaires is what the researcher used to analyze and

reach his conclusions. The disadvantage of some respondents giving untrue answers

may hinder the total validation of discussions and conclusions.

5.5. SUGGESTIONS FOR FURTHER STUDIES

An aspect of the findings of this research based on responses given shows that people also

care about purchasing products with a peculiar branded image. The researcher therefore

suggests a study on “the impact of product brand image on buying behaviour.” This will help

further studies to examine how people perceive branded products and if that actually affects

their purchasing behaviour.

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APPENDIX

Questionnaire

Hello. I am a level 400 student of the Ghana Institute of Journalism, conducting a study on

the topic “The impact of advertising on consumer purchase decision” as part of the

requirement for a B.A in Communication Studies. I’ll be very grateful if you can take time to

respond to this questionnaire. Your response is very necessary to help examine and

understand the relationship between advertising and purchasing decisions. Be assured that

responses given will be treated with absolute confidentiality. Thank You.

Please tick the boxes next to the options to indicate your response.

Demographics

1. What is your gender?

Male Female

2. Please specify your age range.

18 - 21 22 - 25 26 and above

Advertising Exposure

3. Have you ever been exposed to advertisement of any kind?

Yes No

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4. Which advertising media gets your attention? (You can choose multiple answers).

T.V Radio Internet Newspapers Billboards

Other (Please specify below)

…………………………………………………………………………………………

……………………………………………………………………………………

5. Which times of the day are you often exposed to advertisements? (You can choose

multiple answers).

Morning Afternoon Evening Late night

6. How often are you exposed to these advertisements?

Never Everyday 2-3 times per week once in two weeks

7. Please indicate your evaluation of the advertisements you have been exposed to.

(You can choose multiple answers).

Attractive Interesting Informative Professional Entertaining Effective

Perception on advertising

8. Do you believe advertising messages?

Yes No

If yes why?

..........................................................................................................................................

..................................................................................................................................

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If no why?

..........................................................................................................................................

..................................................................................................................................

9. Do you think advertising is important?

Yes No

10. Do you buy products based solely on advertising?

Yes No Sometimes Most times

11. What other factor/s may influence your purchase decision aside advertising?

…………………………………………………………………………………………

……………………………………………………………………………………

Personal Experience

12. Have you purchased any product recently after coming across the advertisement?

Yes No

13. What is the reason for your answer in Question 12?

…………………………………………………………………………………………

……………………………………………………………………………………

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14. Which of these factors influence your purchasing of a product? (You can choose

multiple answers).

The advertisement was interesting

I was curious about the product

I wanted to imitate the actors in the advertisement

It was a familiar product or brand

I was already planning to buy that particular product

Other (Please specify below)

…………………………………………………………………………………………

……………………………………………………………………………………

15. What is your level of satisfaction after purchasing an advertised product?

Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied

End of questionnaire. Thanks for your cooperation.