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APPRAISAL OF THE EFFECT OF ADVERTISING ON CUSTOMERS PATRONAGE IN THE FAST FOOD INDUSTRY

ABSTRACT

This research study is generally intended to apprise the effect of advertising on customers patronage in the fast food industry. Based on the above purpose, some literatures relating to this research were reviewed. However, more concise and comprehensive information were gathered through primary and secondary data, which help to elaborate more on this project topic. The population of the study comprises of the top management staff of the four branches of Mr. Bigg’s in Owerri. The unit of analysis was minimal and as such, the whole population was adopted. Following the hypothesis tested, the findings were that advertising has a significant effect on the customers patronage of a product. The findings also revealed that there is significant relationship between advertising carried out and the degree of customers patronage. Conclusively, based on the findings, the following recommendations were made, that advertisers should know when best to advertise in order to reach out to the particular group of customers that will need the message. Again that advertising should be left in the hands of better and qualified agencies that are in a good position to produce better and quality advertising. Furthermore, a proper analysis of the target market should be considered for effective advertising. All these will make advertisement indispensable.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Advertising is one particular promotional tool that attracts the greatest controversy as to its role and contributions in social, economical and ethical spheres. It is not the only communication tool which organization utilize in trying to communicate the existence and quality of their products to the potential and prospective buyers but it is the most commonly used an also the most noticed of all the promo tools. It is the only one that gets to the greatest number of the firm’s target audience at the same time. It is not done by profit-oriented organizations alone but politicians, government and even non-profitable organization do advertise.

Advertising therefore can be defined as anuy paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. The words “any paid from” distinguishes advertising from publicity because every organization that wants to advertise will purchase space or time in the chosen medium to tell the story about a product or service. “Non-personal” distinguishes advertising from personal selling because advertising reaches large number of audience through mass media, which are non-personal and do not have the chances of immediate feedback as personal selling does. “ideas, goods and services” establish that advertising is not restricted to tangible products but also intangible advertising is used by profit and non-profit making organizations to promote their products e.g. banks churches, charitable homes etc”. An identified sponsor” indicates that the sources of every advertisement message is always made public and this differentiates advertising from propaganda and rumour (Adrika, Ebua and Nnolim, 1996).

Advertising reaches the mass publics through the print media (Newspapers, magazines) broadcast or electronic media (Radio, Television and cable), and display media (Bill boards, signs and posters) etc. The choice of the media vehicle, depends among others on the strength and weakness of each vehicle, available resources and media selection of the target market to reach competitive parity and company policy on promotion. Two or more media vehicle may be used simultaneously to realize the promotion objectives. For instance Mr. Biggs uses radio, television, billboard and magazine at the same time because of the competitive nature of the fast food industry.

Perly and Rossite (1978) said that advertising is a process of relatively indirect persuasion based on information about product benefit which is designed to create favourable mental impression that turns the mind towards purchase. Advertising can be used to generate awareness, establish or change attitudes and stimulate purchase intentions. It build’s customer franchise or a relatively preference for a brand. It also acts as a necessary injunction to propel the marketing action.

In this project, the researchers contraction is on the effort of advertising on customers’ patronage in the fast food industry. The researcher also briefly looked at them and tried to measure the effect advertising has on customer’s patronage towards their products. Once a new product has been manufactured, the next thing to do is to bring it to the notice of customers and this is done through advertising. Most of the products that are not given good advertisement usually end up not being sold. It is through the patronage of the customers towards that product that the company gets to know if the advertisement has any impact and effect on the customers.

In the course of carrying out this research, Mr. Bigg’s retail food business was used as study to determine the effectr of advertising on customers patronage in the fast food industry. Mr. Bigg’s retail food business is one of the departmental stores of United African Company Nigeria Plc (UACN). The firm is the largest retail food business in Nigeria with over 250 restaurants in the major cities of the country.

Mr. Bigg’s media selection are billboards, electronic media which include television, radio and print media which include newspapers, magazines as well as Journals. All these are used to attract customers patronage and to increase sales.

1.2 STATEMENT OF THE PROBLEM

Firms generally embark on advertising and Mr. Bigg’s in particular also embarks on advertising. When advertising in is carried out, it is supposed to arouse the interest of the target market. Also when advertising is carried out, it is expected to increase the sales of the company product and as well generate profit for the organization. lastly when advertising is carried out at any point in time, it is supposed to increase the market share which that firm is occuping in the industry.

In carring out this study, the researcher is in doubt if advertising has any significant effect on the customers patronage towards the company’s product sinc tit is usually hard to predict possible actions of any customer at any point I ntime within an environment. This is because individual customer possesses different characteristics from other and their attitudes towards a product change from time to time.

The researcher has the problem of knowing if the company advertises her products well, by knowing if the type of media used in advertising their products help in the patronage of the customers towards their products. The researcher also tried to know if government laws and regulations towards advertisement affect the customers patronage towards the company’s products. All these led the researcher to study the effect of advertising on customers patronage in the fast food industry.

1.3 OBJECTIVES OF THE STUDY

The objectives of this study are the following:

i. To determine whether advertising influences the way customers patronize a particular product.

ii. To find out what quality of advertising affects customer patronage.

iii. To determine the effect of advertising on individual psychological variables, social and cultural behaviour including their buying decision.

iv. To determine whether advertising helps customers to make better and reasonable purchase decision with the relevant information published by advertising.

v. To ascertain the effectiveness of advertising that lead to the patronage of a product by customers.

vi. To determine whether Mr. Bigg’s advertisement really affect the patronage of the customers towards their products.

1.4 RESEARCH QUESTIONS

1. Does advertising influence the way customers patronize a particular product?

2. What quality of advertising affects customer’s patronage?

3. Does advertising have any effect or individual psychological variable, social and cultural behavior including their buying decision?

4. Does advertising help customers to make better reasonable purchase decision with the relevant information published by advertising?

5. What effectiveness of advertising lead to the patronage of a predict by customer?

6. Does Mr. Biggs advertisement really affect the patronage of the customers towards their product?

7. Does the cost of advertising have any significant effect on the sales volume of a product?

1.5 STATEMENT OF HYPOTHESIS 

Oxford advanced learners dictionary defines hypothesis as an idea or a suggestion that is based on known facts and is used as a basis for reasoning or further investigation. According to Uzoechi (1998: pg 87) there are two types of hypothesis, the Null (Ho) and the Alternative (Hi) hypothesis. The null hypothesis (Ho) is the one that says where there is no significant difference between the objects of contention while the alternative (Hi) hypothesis is the one that says there is significant different between the object of contention.

For the purpose of this study, we shall put the following hypothesis to test:

1A Ho: Advertising has no significant on the customer’s patronage of a product.

1A HA: Advertising has a significant effect on the customers patronage of a product.

2A Ho: There is no significant relationship between advertising carried out and the degree of customer’s patronage.

2B HA: There is significant relationship between advertising carried out and the degree of customers’ patronage

1.6 SIGNIFICANCE OF THE STUDY

This research will be of help to my organization that wants to carryout advertisement so as to attract customers, which will lead them to patronize their products thereby helping the organization to maximize their profit. This study will also be of academic value to both students and other refreshers that would wish to further an investigation towards this area of study in the future.

1.7 SCOPE OF THE STUDY

It is the intention of the researcher to make an extensive overview of the effect of advertising as a detriment of customers’ patronage to all the organizations but due to obvious limitation this study was restricted to only fast food industry and Mr. Biggs in particular.

1.8 LIMITATIONS OF THE STUDY

During the course of carrying out this study, the researcher was constrained by the inability of the respondents to co-operate. Huge sum of money was involved conducting this research and there was also problems of distribution and collection of questionnaires. Finally, the risk involved in traveling from time to time to gather the information needed and time constraints was a protection in all these, the information needed to enable the researcher develop the importance of his research work was gathered.

1.9 DEFINITION OF TERMS

ADVERTISER: This is a person or a company that wants to convey a message to the audience with a promotional message.

ADVERTISING MEDIUM: This is a channel through which the advertising message is delivered to the target audience e.g. Newspaper, radio, television etc.

PRIMARY DATA: This has to do with the information that are originally collected on the specific purpose at hand.

SECONDARY DATA: This has to do with information that already exists and is being collected for another purpose.

PRODUCT: I anything that can be offered to the market for attention, acquisition or consumption that might satisfy a need.

CUSTOMER: Is a person who gives his attention to a product.

ADVERTISING MANAGER: This is the person who takes care of advertising in any company.

ADVERTISING COPY: This refers to the words and pictures that make up the advertisement as well as the way they are laid down to create a total impression.

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