THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE: A CASE STUDY OF PROMASIDOR NIGERIA LIMITED


THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE: A CASE STUDY OF PROMASIDOR NIGERIA LIMITED

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THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE: A CASE STUDY OF PROMASIDOR NIGERIA LIMITED

ABSTRACT

This research examined the impact of advertising on customer patronage of Promasidor Nigeria Limited. The study was conducted in a bid to close the gap in the available literature in developing African countries like Nigeria compared to other developed countries. It had the broad objective of investigating the impact of advertising on customer patronage and the following specific objectives: to examine the impact of television advertising on customer patronage of Promasidor Nigeria Limited; to examine the impact of online advertising on customer patronage of Promasidor Nigeria Limited; to examine the impact of outdoor advertising on customer patronage of Promasidor Nigeria Limited and to examine the impact of mobile advertising on customer patronage of Promasidor Nigeria Limited. The research methodology adopted for the study was the survey research design. The area of the study was calabar metropolis. The major research instrument used was structured questionnaire. The instrument was confirmed for validity using the content validity and confirmed for reliability using the test-retest reliability test. Analytical techniques comprising of simple tables, percentages and simple regression in the statistical package for the social sciences (SPSS) were used to analyze and treat the collected data. The results obtained from the study showed that outdoor advertising has the most significant impact on customer patronage of Promasidor Nigeria Limited in calabar metropolis; television advertising has a significant impact on customer patronage of Promasidor Nigeria Limited in calabar metropolis; online advertising has a significant impact on customer patronage of Promasidor Nigeria Limited in Calabar metropolis; and mobile advertising has a significant impact on customer patronage of Promasidor Nigeria Limited in calabar metropolis. Based on the above findings, the following recommendations were made: Promasidor Nigeria Limited should devote more resources to outdoor advertising; television online and mobile advertising should be incorporated into an integrated advertising approach in order to increase their impact on customer patronage of Promasidor Nigeria Limited; Promasidor Nigeria Limited should commit adequate resources to advertising implementation; and Promasidor Nigeria Limited should design and maintain an effective mechanism for advertising evaluation and control.(337 words)


 

TABLE OF CONTENTS

Page

TITLE PAGE                                                                                                 i         

DEDICATION                                                                                                ii        

DECLARATION                                                                                           iii        

APPROVAL PAGE                                                                                      iv        

ACKNOWLEDGEMENT                                                                             v        

ABSTRACT                                                                                                   vi        

TABLE OF CONTENTS                                                                              vii       

LIST OF TABLES                                                                                         x         

CHAPTER ONE: INTRODUCTION

1.1         Background of the study                                                   

1.2         Statement of the problem                                                  

1.3         Objectives of the study                                                                   

1.4         Research questions                                                                       

1.5         Research hypotheses                                                                    

1.6         Significance of the study                                                              

1.7         Scope of the study                                                              

1.8         Limitations of the study                                                                  

1.9         history of the organization                                                

1.10      Operational definition of terms                                         

References                                                                                      

 

CHAPTER TWO: LITERATURE REVIEW

2.1       Theoretical framework                                                      

2.1.1 Hierarchy of effects model                                                  

2.1.2 AIDA theory of Selling                                                                                 

2.2       Conceptual framework                                                                  

2.2.1 Concept of advertising                                                                     

2.2.2 Objectives of advertising                                                      

2.2.3 Benefits of advertising                                                                     

2.2.4 Advertising media                                                                 

2.2.5Factors affecting media selection                                       

2.2.6 Contextual review of research objectives                         

2.2.7 Television advertising and customer patronage                         

2.2.8 Online advertising and customer patronage                    

2.2.9 Outdoor advertising and customer patronage                 

2.2.10 Mobile advertising and customer patronage                              

2.3   Empirical review                                 

2.4   Summary of and gap in review of related literature

References                                                                                      

           

CHAPTER THREE: RESEARCH METHODOLOGY

3.1   Research design                                                                                

3.2       Area of the study                                                                             

3.3       Population of the study                                                                 

3.4       Sample size determination                                                           

3.5       Sampling technique                                                                       

3.6       Sources and methods of data collection                        

3.7       Instrumentation                                                                               

3.8       Validity and reliability of research instrument   

3.9       Data analysis techniques                                                 

References

 

                                                                                   

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1       Data presentation                                                               

4.2       Data analysis                                                                                               

4.3       Test of hypothesis                                                              

4.4       Discussion of findings                                                                   

References                                                                          

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of findings                                                                      

5.2       Conclusion                                                                                      

5.3       Recommendations                                                             

Bibliography                                                                                    

Appendices  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

CHAPTER ONE

INTRODUCTION

1.1         Background of the study

According to Akanbi and Adeyeye (2011), various writers have viewed advertising from different perspectives. Advertising is a tool of marketing for communication of ideas and information about goods and services to an identified group, which employs paid space or time in the media or uses another communication vehicle to carry its message. It openly identifies the advertiser and his relationship to the sales effort (Wanoff, 1997).

Advertising can also be identified as any paid form of non-personal communication about an organization, products service or idea by an identified sponsor (Bennet, 2006). Advertising is any paid message presented through various media, such as television, radio, magazines, newspapers, or bill boards by an identified source (Akanbi & Adeyeye, 2011).

Going by the various definitions above, Akanbi & Adeyeye (2011) maintain that advertising is an indicator of growth, betterment and perfection of business environments. They maintain that not only does advertising mirror be business environment, it also affects and is affected by our style of life.

Kumar and Raju (2013) maintain that as a potential strategy, advertising serves as a major tool in creating product awareness in the mind of a potential consumer to take eventual purchase decision. Advertising, sales promotion and public relations are mass communication tool available to marketers.

The evolution of advertising, according to Kumar & Raju (2013) dates back into ancient times. Societies used symbols and pictorial signs to act their product users. Over centuries, these elements were used for promotion of products. In the early ages, these were handmade and were produced at limited scale for promotions. Later on, this phenomenon gained strength more intensively for promotional purposes. Today’s modern environment has made advertisement one of the major sources of communication between the manufacturer and the user of the products.  In the view of Kumar & Raju (2013), a company cannot dream to be a well-known brand until they invest in their promotional activities, for which consumer markets have been dominating through advertisement. The major aim of advertising is to impact buying behavior; making consumers to make a purchase and favour any particular brand (Kumar & Raju, 2013). Advertising is an effective source of influencing the minds of viewers and giving viewers exposure about particular product or service (Katke, 2007). Advertising plays an important role in product or business presentation and is a useful strategy to attract customers and make them to purchase (Rehman, Nawaz, Khan & Hyder, 2014). However without proper investment in promotion no business can become a market leader (Kumar & Raju, 2013). Firms are spending huge amounts of money in their budget for advertising products and services. They are investing to influence the buying behaviour of customers and to build brand preference (Rehman, Nawaz, Khan & Hyder, 2014). Advertising, just like other functional tools is said to have certain impacts on consumer behaviour.  Advertising increases customer’s awareness, market acceptance, and customer’s patronage sales volume and profitability of an organization (Rehman, Nawaz, Khan & Hyder, - 2014; Akanbi & Adeyeye, 2011; Kumar & Raju, 2013; Sajuyigbe, Amusat & oluwayemi; 2013; and Rai; 2013).

Therefore, this study intends to examine how advertising impacts customer patronage of Promasidor Nigeria Ltd products in calabar.

1.2         Statement of the problem

The impact of advertising on customer patronage remains one of the most researched subjects of contemporary research investigations. This emphasis on determining the impact that advertising has on influencing customer patronage is caused by the experience of low patronage, low sales, customer switch, plummeting profits and revenue and the need to change the status quo by firms in today’s marketing environment. To accomplish this, a number of scholars have investigated the nature of relationship between advertising and customer patronage, among these are: Akanbi & Adeyeye (2011); Kumar & Raju (2013). Rehman, Nawaz, Khan & Hyder (2014); Sajuyigbe, Amusat & Oluwayemi (2013); Rai (2013), among others. This reveals the importance of advertising in today’s business environment.

However, due to the dynamism of consumer behavior and the sophistication of the marketing environment, organizations are challenged by plummeting customer patronage, fall in sales volume, growing competition, depleting profit levels and loss of customer share. Promasidor Nig Ltd has not been spared from these challenges. The company grapples with how to influence consumer behavior in order to achieve patronage, loyalty and increase in sales volume and profitability through its advertising efforts in the face of environmental constraints.

In the light of the situation above, this study will provide empirical evidence on the impact of advertising on customer patronage of Promasidor Nig Ltd in an effort to enlighten the company on how advertising could best be used to achieve customer patronage, and to contribute to the existing literature on the subject.

1.3         Objectives of the study

This study has the broad objective of investigating the impact of advertising on customer patronage of Promasidor Nigeria Ltd., and the following specific objectives:

1.    To examine the impact of television advertising on customer patronage of Promasidor Nigeria Ltd.

2.    To examine the impact of online advertising on customer patronage of Promasidor Nigeria Ltd.

3.    To examine the impact of outdoor advertising on customer patronage of Promasidor Nigeria Ltd.

4.    To examine the impact of mobile advertising on customer patronage Promasidor Nigeria Ltd.

1.4         Research questions

The following research question guided the research: 

1.    What is the impact of television advertising on customer patronage of Promasidor Nigeria Ltd.?

2.    What is the impact of online advertising on customer patronage of Promasidor Nigeria Ltd.?

3.    What is the impact of outdoor advertising on customer patronage of Promasidor Nigeria Ltd.?

4.    What is the impact of mobile advertising on customer patronage of Promasidor Nigeria Ltd.?

 

1.5         Research hypotheses

The basic assumptions of this study are summed up into the following hypotheses stated in null form:

1.    Ho: Television advertising has no significant impact on customer patronage of Promasidor Nigeria Ltd.

2.    Ho: Online advertising has no significant impact on customer patronage of Promasidor Nigeria Ltd.

3.    Ho: Outdoor advertising has no significant impact on customer patronage of Promasidor Nigeria Ltd.

4.    Ho:  Mobile advertising has no significant impact on customer patronage of Promasidor Nigeria Ltd.

1.6         Significance of the study

This study upon its conclusion, would contribute to the academia by serving as a reference material or source of knowledge to students and a guide to future researchers on the conduct of further research on the subject.

To Promasidor Nigeria Ltd., this study would reveal the imperatives of investing in advertising as a pre-requisite for gaining customer Patronage, sales and profitability. Also, the findings and recommendations of this research would provide alternative advertising strategies that easily could be adopted by Promasidor Nigeria Ltd to gain customer patronage, sales and profitability.

1.7         Scope of the study

This study examines the impact of advertising on customer patronage of Promasidor Nigeria Ltd in calabar which is the case study. The study is therefore limited to customers of Promasidor Nigeria limited in calabar only. The study is also centered on four (4) advertising strategies: television advertising, online advertising, outdoor advertising and mobile advertising.

1.8         Limitations of the study

As is true with all research investigations, this study is not immune to limitations. Some of the constraints faced over the course of conducting this research include:

1.    Inadequate time frame for the research and other time-consuming academic activities.

2.    Inadequate financial resources which limited the scope of the study to Promasidor Nigeria Ltd.

3.    Difficulty faced in retrieving all distributed questionnaire copies.

4.    Difficulty faced in getting customer of Promasidor Nigeria Ltd to participate in the questionnaire survey.

1.9         History of the organization (Promasidor Nigeria Limited)

The Promasidor brand was founded in 1979 by Robert Rose when he noticed a lack of availability of the one highly nutritional products that developed world takes for granted – milk, in Africa. Promasidor Nigeria started operations in Nigeria in 1993 and since then, it has experienced tremendous growth and presently employs about 1015 people across the country.

Promasidor holds a leading position in the Nigerian powdered milk market with its COWBELL MILK brand, which has found its way into the hearts and homes of thousands of Nigerian consumers.

            Based on the extensive knowledge and expertise gained in manufacturing, packaging and distributing products across Africa, the group has expanded the range of Promasidor products. The products are now purchased daily in their millions and have developed into strong brands across the African continent, with highly noticeable brand identities.

            Promasidor achieved consistent quality, value and satisfaction by focusing on core brands. Today, therefore, Promasidor’s energies are focused on three fast-moving consumer goods, namely: Dairy, Beverage and Food Enhancement.Promasidor products include Cowbell milk, Miksi, Onga seasoning, Cowbell choco, Amila, Top Tea, Loya milk, etc.

The head office is located at plot 3A, and B, Cowbell way Isolo industrial Estate, Oshodi-Isolo, Lagos, with Depots scattered across Nigeria through which it distributes its products (Project Lightup Nigeria, 2012)

1.10       Operational definition of terms 

Advertising: The non-personal and paid for presentation and promotion of Promasidor products through the media: television, online, outdoor and mobile, by an identified sponsor (Promasidor Nigeria Ltd).

Customer: A group of actual or potential buyers of Promasidor Nigeria Ltd Products in Calabar.

Customer patronage: The act of buying Promasidor Nigeria Ltd products.

Television advertising: The presentation and promotion of Promasidor Ltd products through television to create awareness and induce sales.

Online advertising: The use of websites, and online social media to promote Promasidor Nigeria Ltd product to customers.

Outdoor advertisement: The use of out-of-home media like the billboard and sign board to promote Promasidor Nigeria Ltd Products.

Mobile advertising: The use of telephone-related media like phone calls and text messages to present and promote Promasidor Ltd products.

References

Akanbi, P. A & Adeyeye, T. C. (2011), The Association between advertising and sales volume: A case study of Nigerian Bottling Company Plc. Journal of Emerging Trends in Economics and Management Sciences, 2(2): 117-123.

Benenet, B. (2006), promotion management: A strategic Approach. Yankee chipper Books, Winder, CT, USA.

Katke, K. (2007). The impact of Television Advertising on Child Health and Family spending.International Marketing Conference on Marketing and Society.Retrieved on 6th June, 2016.

Kumar, D. P. &Raju, K. V. (2013), The role of advertising in consumer decision making. IOSR Journal of Business and Management, 14 (4): 37-45

Rai, N. (2013), Impact of advertising on consumer behavior and attitude with reference to consumer durables. International Journal of Marketing Science, 3(10): 11-13.

Rehman, F., Nawaz, T., Khan, A. &Hyder, S. (2014), How advertising affects buying behaviour of consumers in rural areas: A case of Pakistan, 5(4).

Sajuyigbe, A. S, Amusat, W. A. &Oluwayemi, O. (2013) Impact of advertising on organizational sales turn over: Nigerian Breweries Plc. Experience, 5 (4).

Wanoff, S. M. (1997), An introduction to persuasive advertising. Bailey Brothers Swiffen, Folk stone 

THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE: A CASE STUDY OF PROMASIDOR NIGERIA LIMITED

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According to Akanbi and Adeyeye (2011), various writers have viewed advertising from different perspectives. Advertising is a tool of marketing for communication of ideas and information about goods and services to an identified group, which employs paid space or time in the media or uses another communication vehicle to carry its message. It openly identifies the advertiser and his relationship to the sales effort (Wanoff, 1997). Advertising can also be identified as any paid form of non-personal communication about an organization, products service or idea by an identified sponsor (Bennet, 2006). Advertising is any paid message presented through various media, such as television, radio, magazines, newspapers, or bill boards by an identified source (Akanbi & Adeyeye, 2011)... marketing project topics

THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE: A CASE STUDY OF PROMASIDOR NIGERIA LIMITED

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