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UDOCHI, UKAEGBU VALENTINA

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  • Name: INFLUENCE OF TELEVISION ADVERTISING ON CONSUMER BUYING HABITS OF GUINNESS STOUT IN IKEJA COMMUNITY OF LAGOS STATE
  • Type: PDF and MS Word (DOC)
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  • Length: [57] Pages

 

ABSTRACT

The study was on the Influence of Television on Consumer Buying Habits of Guinness Stout in Ikeja Community of Lagos State. It started with general introduction to the research, statement of the problem and purpose of the study. This was followed by comprehensive literature review of television advertising on consumer buying habits of Guinness Stout in Ikeja community of Lagos State. The researcher made use of the survey design to gather necessary information. Simple random sampling was used to select a sample of the population. Through the research methodology involving collection of data from a sample of residents of Ikeja in Lagos State, the researcher applied self-administered questionnaire to obtain primary data which was later analyzed by simple percentage and the hypotheses were tested using the chi- square analysis method. The result showed that television was viewed as the most preferred medium of advertisement of Guinness Stout. The researcher made the recommendation based on the findings that more attention should be focused on using television medium for advertisement of Guinness Stout.

TABLE OF CONTENTS

Cover Page I
Title Page Ii
Certification Iii
Dedication Iv
Acknowledgement V
Abstract Vii
Table of Content Viii
List of Tables Xi
Chapter One: Introduction
1.1 Background of The Study 1
1.2 Statement of The Problem 5
1.3 Objective of The Study 5
1.4 Research Questions 6

1.5 Hypotheses 6
1.6 Scope of the Study 6
1.7 Significance of the Study 7
1.8 Operational Definition of Significant Terms 7
Chapter Two: Review of Literature
2.1 Introduction 8
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2.2 Review of Concepts 8
2.3 Review of Related Studies 16
2.4 Theoretical Framework 17
2.5 Summary of Literature Review 17
Chapter Three: Research Method
3.1 Introduction 18
3.2 Research Design 18
3.3 Population of Study 19
3.4 Sampling Technique 19
3.5 Description of Research Instrument 19
3.6 Validity and Reliability of Data Gathering Instrument 20
3.7 Method of Data Collection 20
3.8 Method of Data Analysis 21
Chapter Four: Data Presentation and Discussion Of Findings
4.1 Introduction 22
4.2 Data Presentation and Analysis 20
4.3 Test of Hypotheses 32
4.4 Discussion of Findings 36

Chapter Five: Summary, Conclusion and Recommendations
5.1 Introduction 39
5.2 Summary 39
5.3 Conclusion 39
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5.4 Recommendations 40
5.5 Suggestions for Further Studies 41
References
Appendix A
Appendix B

CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
One function of the mass media which is becoming increasingly important in the modern
world is the economic functions of advertising. The mass media perform this function for the
people by bringing together buyers and sellers through advertisements.
Again, the world is fast becoming a common market place of ideas. Many multinational
companies have come to realize that people have the same basic needs and desires.
Consequently, they have heeded to calls for global marketing and can promote their goods and
services using advertisements.
An advertisement is defined by the Advertising Practitioners Council of
Nigeria(APCON) as a „communication in the media paid for by an identifiable sponsor and
directed at a target audience with the aim of transferring information about a product, service,
idea or cause.‟
According to Benson Eluwa (2005, p.5), „Advertising is a form of non-personal method of
communicating information which is usually paid for by a sponsor through various media‟.
These definitions can tell one that advertising is a persuasive communication, because it tries to
persuade the reader, viewers or listeners to take to the sponsor‟s point of view and also take
some appropriate actions towards an object of advertisement.
In an industrial and free competitive market economy, where the interplay of economic
variables dictates the market, the problem of survival of business becomes a very nightmarish
one for producers and manufacturers. The singular desire of manufacturers becomes how to
create awareness and market for their goods. Advertising is then one strategy that fulfils the
desire completely. The desire to be buoyant in business and to increase profit has given
advertisement an irrevocable reputation.
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Advertising is not undertaken by management just for fun or to keep products or services. It is
principally involved in persuasion or advocacy even apparently just giving us information,
using media that are paid for it to get through to the mass audience with the identity of the
advertisers being clear. „Advertising has the mandate to sell the advertiser‟s goods and help the
consumers to shop wisely‟- Okoro (1995, p.42).
Advertising is to communicate information about a product, service or idea and thus stimulate
demand.
Evolution of Television Advertisements
A television advertisement or commercial is a form of advertisement in which goods,
services, organizations, ideas etc. are promoted through the medium of television. Most
advertisements are produced by an outside advertising agency.
Advertisers spread commercials across a number of programmes reaching many more
viewers. Networks now own different „spot‟ commercials for many products in the same show.
A spot has to stand out and be remembered and this brought about creativity in television
advertising owing to the large number of advertisements, and many products with the same
quality and cost. The unique selling point and brand awareness became ever more important.
The first television advertisement was broadcast in the United States at 14:29pm on July 1,
1941, when the Bolivia Watch Company paid $9 to New York city NBC affiliate WNBT(now
WNBC) for a 20 second spot shown before a baseball game between the Brooklyn Dodgers and
Philadelphia Phillies.
Television advertisements have heralded an unprecedented increase in economic activities. For
some, television advertisements are always one of the best things to look out for on television
because of their highly captivating, dramatic, entertaining and humorous nature. For others, this
form of advertisement is nothing but an interruption of a nice quiet evening at home, especially
when the viewer is seriously engrossed in a highly informative news programme.
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However, beyond these two extremes, the advertiser must gain access to the consumer‟s mind
in order to win his purchasing loyalty. This is why the advertiser capitalizes on the glamour and
potency of television to reach out to a wide spectrum of consumers in order to market his
wares. Ideally, television commercials are based on the same principle as the old-time medicine
show where a medicine dealer uses banjo player and magician to attract customer‟s attention to
his product and market his wares. In television commercials, the advertiser uses talents (for
dramatic spectacle) and music to put the audience in good humour, so that the sponsor
(manufacturer of the product) who corresponds to the medicine man will have a receptive
audience when he peddles his wares.
The majority of television advertisements in Nigeria recently comprise brief advertising
spots, ranging in length from a few seconds to several minutes. In the Nigerian media,
advertisement of this sort has been used to sell every product imaginable over the years from
household products to goods and services. The effect of television advertisements upon the
viewing public has been so successful and so pervasive that it is considered impossible for a
politician to wage a successful election campaign in Nigeria without the use of television
advertisement.
Lager products are without doubt among the products that have been given intensive
and wide advertisement coverage. The products were able to arouse attention using
promotional strategies.
Beer Market in Nigeria
Beer market is considered one of the fastest growing industries in Nigeria, and it is the
most popular of all alcoholic beverages consumed, constituting roughly 96 percent of all
alcoholic drinks sold. It contributes about 28 percent of Manufacturing Value Added (MVA).
The Industry is a highly concentrated quasi-duopoly by both industry size parameters of labour
and output.
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The two largest firms, Nigerian Breweries Plc, (which is 54 percent controlled by
Heineken), and Guinness Plc. (a brand of Diageo International Beer Supply, Ireland), have
consistently dominated the Industry since 1949, both in terms of their output (sales volume)
and their inputs (labour). They are also among the top 20 most capitalized companies on
the Nigerian Stock Exchange.
The Sector faces a tough future as high energy bills may force consumers to cut back on
alcohol consumption. Nonetheless, the industry’s performance will still be driven by increasing
number of brewpubs in the country as well as the numerous fiestas and celebrations. The
industry is subjected to extensive government regulations at both the federal and state levels
concerning distribution, labeling, advertising, container characteristics and alcoholic content.
The ability of regulatory and excise authorities to impact on price and distribution of products
is key in an analytical consideration for risk in the industry.
However, there is also a good potential in the Nigerian market such as the entry of
young drinkers as well as the growing number of middle class citizens as a healthier alternative
to consuming less alcohol. Overall, the beer industry will continue to grow If companies strive
to broaden their markets locally and internationally by building attractive brand campaigns and
developing new products. Landscape and Prospects
About Guinness Nigeria Plc.
Guinness Nigeria is a subsidiary of Diageo Plc. of the United Kingdom, and was incorporated
in 1962 with the building of a brewery in Ikeja, the heart of Lagos. The brewery was the first
outside of England and Great Britain. Other breweries have been opened over time; Benin City
Brewery in 1974 and Ogba Brewery in 1982.
Guinness Nigeria produces the following brands – Foreign Extra Stout (1962), Guinness Extra
smooth (2005), Malta Guinness (1990), Harp Lager Beer (1974), Gordon‟s Spark (2001),
Smirnoff Ice (2006) and Satzenbrau (2006)
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In 1965, Guinness Nigeria was quoted on the Nigerian Stock Exchange with 1200 investors;
while in 2007 Guinness Nigeria became the first brewing company in West Africa to be ISO
14000:2004 certified – The highest certification for a clean environmental standard globally.
1.2 Statement of the Problem
It is a known fact that television advertisements use persuasive techniques to appeal to
consumers‟ sense of buying. It is also inevitable that television advertisements have a lot of
influence on human behaviour. This influence may be either positive or negative. The kind of
influence depends on the kind of advertisement.
Many a time, consumers have turned down the content of advertisements due to various
reasons. Some consumers maintain that the information content of the advert is not enough,
while some say that the information content of the advert does not reveal the contents of the
product.
What are the attitudes of consumers towards the Guinness Stout television advertisements? If
the above submission is upheld, perception should explain or account for why a consumer
should prefer Guinness Stout in a vast array of lager brands in the Nigerian market.
In the light of the above exposition, this study focuses on how Guinness Stout television
advertisements influence consumer buying behaviour.
1.3 Objectives of the Study:
This study is aimed at finding out the impact of Guinness advertisements on the buying habits
of its consumers in Ikeja community of Lagos. This will help in the formulation of a
comprehensive marketing and promotional strategy for Guinness Stout. The short term
objectives of this study are:
1. To discover to what extent people watch advertisements on television.
2. To assess what appeals to consumers of Guinness Stout in television advertisements of
the product.
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3. To determine the performance of Guinness Stout alongside other competing brands.
4. To evaluate how Guinness Stout advertisements influences consumer buying behaviour
of the product.
1.4 Research Questions:
The following research questions are formulated to act as a guide in this research:
1. To what extent do people watch advertisements on television?
2. What appeals to consumers in Guinness Stout television advertisements?
3. What is the performance of Guinness Stout in comparison with other competing
brands?
4. What level of influence does Guinness Stout advertisement have on consumer
buying behaviour of the product?
1.5 Hypotheses:
1) H0 = Consumer choice of Guinness Stout is not related to exposure to advertisements of the
product.
2) H0 = Loyalty to Guinness Stout does not depend on the volume of advertising.
1.6 Scope of the Study:
The study is limited to the residents of Ikeja in Lagos State. The researcher will only
focus on the attitude of the residents of the Ikeja community in Lagos State towards Guinness
Stout, more specifically on television advertisements of the product in comparison with those
of similar products.
1.7 Significance of the Study:
The result of the study will be of immense benefit to advertisers of Guinness Stout as it will
provide a guide on planning, production and placement of television advertisements for the
product.
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Essentially, this study makes a significant contribution to the existing literature on the attitude
of consumers towards lager products. The study will also be of great use to mass
communication and marketing students who intend to take up similar studies.
It is also envisaged that findings from this study would assist the management of
Guinness Nigeria Plc.to effectively promote their products in the highly competitive
environment of the brewery industry in Nigerian.

1.8 Operational Definition of Significant Terms:
In this research work, the terms defined reflect how the researcher wants them to be
understood in the context of this work.
1) Advertising: A method used to attract the attention of the consumers or audience to a
product. It is a means of persuading them to buy your view, opinion, ideas and products
which are usually done by a sponsor.
2) Consumer: someone who buys goods for consumption
3) Television: A piece of electrical equipment with a screen on which you can watch
programmes with moving pictures and sounds.
4) Buying habit: The decision process and actions of people involved in buying and
using products.
5) Impact: The powerful, immediate or dramatic effect that something or somebody has
over another thing or person.

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