TITLE: THE EFFECT OF TELEVISION ADVERTISING ON BRAND

AWARENESS: CASE OF COCACOLA KWANZA (T) LIMITED

CHAPTER ONE
INTRODUCTION AND BACKGROUND OF THE STUDY
1.1 Introduction
This study intends to explain the contribution of coca cola television advertisement in
creating brand awareness to the customer. This chapter introduces the study and presents the
background of the problem statement of the problem, purpose and objective of the study,
research question as well as significance of the study.
1.2 Background to the Study
In today’s competitive world it is very difficult for companies to compete with each other.
The fierce competition has given rise to various ways through which organizations can
compete with each other. This rapid globalization has given a rise to a fast economic
condition, has had a very signification affect on information and technology. Information
reaches people in a split second and become aware of every company’s goods and services
and the activities that are being rendered by them in order to promote or sale products or
services. As a result the competition gets fiercer and sometimes this either creates challenges
for some companies and for some opportunities. It is here that companies decide of adopting
and sometimes introducing effective marketing strategies in order to sell its goods or services,
and those too must be able to attract the consumer to the product. (Belch & Belch, 2007).
In order to attract the consumer’s some organizations introduce new brand of products
whereas some organizations advertise in order to attract the consumers. The later is
considered to be one of the most influential ways of attracting consumers, since advertising
not only creates awareness about the product among the consumers but also entertains them.
Even though past studies have agreed that advertisement, especially TV advertisement, is the
most effective media source since it attracts consumers attention. Advertisements affect the
perceptions of the consumers and it can influence the consumer’s buying decisions.
According to past research of Chi, Yeh, & Yang, (2009), that there are three factors that make
an advertisement effective; the influence of advertisement on consumer buying behavior, the
communication process, and decision making.
Advertisement has been defined variously by a number of people. According to American
Marketing Association advertising has been defined as a “form of non-personal presentation
and promotion of ideas, goods or services by an identified sponsor.” It is a commercial
transaction which is done in order to promote goods and services, and is directed towards a
vast audience and is not for individuals only. The ultimate goal of advertisements is not to
generate sales or profits; this can only be done once people are aware of the particular
product. The overall goal of advertisement is to create the brand awareness among the
consumers which in affect influences their buying behaviors. (Chunnawala, 2016)
It is the most vital goal of advertisement to influence or persuade the consumers to purchase a
particular product over its competitors. According to Terence A. Shrimp, 2011, advertisement
transfers affect to a brand. There are a various number of arguments that how can the
effectiveness of advertisement be measured (Aaker, and Norris, (2012). Advertisements are a
source of attaining the attention of the consumer; this is done in order to increase the
publicity and hence allow the information to influence the brand awareness and as a result
influences the decision making of consumers (Rossiter and Percy 2017). Further argued by
Keller (2014) that advertisements build brand awareness, which in return strengthens the
attitudes of the consumer towards the brand and their purchasing decisions ((Aaker, and
Norris, (2012). Dahlen (2001) concluded that the increase in advertisement exposures results
in an increased brand awareness and also the attitudes of non-consumers. In this rapid
globalization consumers are well aware of what they will see in an advertisement (Friestad
and Wright 2014), this information not only persuade the particular behavior of consumer but
also promotes the buying of the product (Robertson and Rossiter 2014; Wright 2016).
Whether we realize it or not, advertising is a part of our life. The advertising industry in India
is growing at a rapid pace, and organizations as well as individuals treat advertisements as an
important tool to market their products and services. Specially, television advertisements are
an important means by which organizations “communicate” their products and services to
their customers. However, there are some organizations that are facing difficulties in
delivering the relevant message that can gain awareness, create desired perception and
persuade customers to buy their products and services. Consumer’s attraction towards
television increases with age. Consumers react to advertisement in different manners. It can
be influenced by many factors, such as grownups, intervention of parents, media literacy and
experiences. Such determinants play a key role in understanding television advertisement and
process its content. In the cognitive development children are passing through the stages
helping them to distinguish advertising from program content, recalling and awareness of
advertising, recognizing and understanding persuasive intent of advertising, liking and
skepticism or cognitive defense to advertising.
Advertisement is one of the main instruments used by businesses to communicative and
persuasive effect. It is efficient when target audiences received processes and accepted the
advertising message. Perception is this element for human beings that help them exist in
reality and has significant role of processing information received by sensory system. The
process of perception has been associated with the process of the evaluation of the advertising
messages. Consumers differs each other from the ways how they perceive the information of
particularly advertisement and brands shown in such advertisement. The differences come out
of their previous background, experiences and situations. These factors determine
information choice, its processing and the way of evaluation of the brand.
Moreover, the factors have been shaping since the early consumer and can be resulted by
perception of consumer behavior taken place in that time.
Advertisements are the major influence in the process of buying and selling of products.
Most of companies tend to use different strategies in advertising to appeal to the consumer’s
senses and influence them to buy their product or services. Many advertisements contain
rhetorical devices such as logos, slogans and pathos to persuade the average consumer that
their product is effective and efficient on promoting what people want or need (Jefkins,
2005).
Example of advertisements that have successfully achieved brand recognition by using brand
presence and introduction effectively in their television advertising campaigns include the
award winning ‘The Happiness Factory’ for Coca-Cola, and various automobile commercials
that show the brand logo of a vehicle from different angles early on and frequently
throughout the advertisement. Beverage giant Coca Cola since its foundation in 1886, it has
become a global power in the beverage industry. Pharmacist Dr. Coca-Cola, which was
produced by John S. Pemberton as a medicine and subsequently marketed as a soft drink with
a few changes, has since become the world's best known beverage brand. In 1906, for the first
time outside the United States that began bottling Coca-Cola, it began to be produced in 1964
in Turkey. As of 2017, Coca Cola's logo, the world's third largest food and Beverage
Company, is recognized by 96% of the world's population. Coca Cola, marketing strategy on
television advertising still play an influencer for the most effective brands awareness strategy
hence seems to be the most effective ways and have greater effect to the awareness of their
brands to the customer when they introduced.

1.3 Statement of the Problem

Creating brand awareness is one of the key steps in promoting a brand purchase. It is believed
that Coca- cola Kwanza Company benefits through the use of television advertising. It is
clear that Coca-Cola employs television advertisement as an informing strategy in order to
win customers. When coming to purchasing decision, a brand that customers could choose is
the one that they have already seen or heard about. Essentially, consumer becomes aware of a
certain brand which has meaning to them in relation to a product, service, solution or
experience. One of the major reasons for the growing importance of television advertising
over the past decade is that advertising plays a major role in the process of developing and
sustaining brand equity (Belch & Belch 2004; Shimp 2010).

Customers need information to be able to choose between alternative brands (O’Guinn, Allen
& Semenik 2009; Strydom, Jooste & Cant 2000). A brand is often a company’s most
valuable asset because it provides customers with a way of recognizing and specifying a
particular product, should the customers want to choose it again or recommend it to others. A
brand is essentially a marketer’s promise to deliver a specific set of features, benefits and
services consistently to the consumer (Kotler & Keller 2009).
Consumers are bombarded with increasing marketing messages about brands (McKay-
Nesbitt et al. 2011). Fragmentation and rising costs are also inhibiting marketing through
traditional mass media like television .Consequently; marketers are constantly faced with the
challenge to build brand awareness both economically and efficiently in the minds of
consumers. One could thus assume that the building of strong brands begins with creating
brand awareness, so that consumers are able to identify a brand through brand recognition or
recall performance. Although there are many means of creating awareness to customer
regarding brands of the products like social network and radio but still Television for Coca-
Cola seems to be the favorite media for their advertisement that bring awareness to customer.
Hence due to that the researcher attracts to conduct a study so as to investigate the effect of
television advertising on customer’s brand awareness.
1.4 Research Objectives

1.4.1 General Objective

To assess the effect of television advertising on brand awareness, case of Coca-Cola kwanza
(T) limited
1.4.2 Specific Objectives
i. To examine the relationship between brand awareness and purchase decision of
Coca- cola product.
ii. To determine the extent to which television advertisements increases brand
awareness
iii. To evaluate the effectiveness of advertising strategies used by Coca-Cola Kwanza
Company in creating brand awareness.

1.5 Research Questions

i. Does brand awareness influence people in purchasing a product?

 ii. To what extent does television advertisement increase brand awareness?
iii. How effective are the advertising strategies used by Coca Cola Kwanza Company in
influencing brand awareness?

1.6 Significance of the Study

1.6.1 To the Individual
The study will help to understand more on the effectiveness of television advertising in
deliverance of the information about the product.

1.6.2 To the Organization

The study will help the organization to enhance the efficiencies of the effect of television
advertising. Also it will help management to plan for new idea of studying what factors make
a consumer to purchase a brand

1.6.3 Academically
The research paper may be used by other students as a reference when solving similar
problem in their studies and to increase their knowledge and skills basing on advertisement
through the use of television advertisement.
1.7 Scope of the Study

1.7.1 Content Scope

The study will limit itself to the concept of contracting as a form of advertising which will
consider the aspects of types of television advertising used by Coca-Cacola Kwanza in Dar-
es-Salaam its contributions on brands awareness to the customer. Additionally it will also
consider institutional performance which will be tackled in the forms of efficiency and its
effectiveness of the television advertising on brand awareness.
1.7.2 Geographical Scope
The study will be conducted in Coca-Cola Kwanza in Dar-es-Salaam. The company is
selected on the basis of proximity to the researcher and because of time essence and
convenience.
1.7.3 Time Scope
The study will be based on the experiences of the respondents dating from November 2018 to
May 2019 to the current situation. This period is related to the current respondents and there
is consistence in management approaches.
 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter explains the search process undertaken in reviewing the literature. It includes
examination of the theoretical and empirical studies in the field of advertising. Books,
research papers, articles, reports etc. were systematically studied to develop the following
review of literature.
Conceptual Definitions
Advertising
Lavidge and Steiner (2011) have emphasized that advertising has three main functions
namely- create awareness about the product, develop positive attitude towards brand, and
result in action in form of purchase.
Moriarty, Mitchell et.al (2003) define advertising as a paid, mediated form of communication
from an identifiable source, designed to persuade the receiver to take some action now or in
the near future.
Brand
A brand is a name given to a product and/or service such that it takes on an identity by itself.
In today's marketplace teeming with thousands of products and services, all of which are
being rapidly commoditized, a brand stands out from the clutter and attracts attention.
(Dominick, J.R., 2002)
Television Advertising
Television Advertising is communication of advertising messages through the media of TV,
during and in-between programmes and also sponsored programmes in the form of audio-
visual films. (Dominick, J.R., 2002)
Communication Effect
Rossister and Percy (2008, cited by Dahlen et.al) opine that through the process of
communication, relatively enduring mental associations connected to the brand are
established in the prospective buyers’ minds. This phenomenon is called communications-
effect.
2.2 Theoretical Review
The theoretical literature was reviewed mainly for providing a basis for empirical review.
This was accomplished by reviewing the related theories and models and by developing a
conceptual framework for the study based on the theories. Several theories have been
advanced to explain the impact of Creativity in Advertising on Brand awareness-Effect and
Purchase Behaviour. The review of these different theories includes:
2.2.1 Theories of Advertising
In the literature, instead of' one proven theory, there are at least four distinct, alternative
theoretical formulations of' how advertising produces its effect. Weilbacher (2004)
summarises these four theories.
Pressure - Response Theories of advertising assume that advertising effects are a function
of the advertising dollars spent or messages received. It also assumes that stable relations
exist between advertising pressure and advertising effect. This theory tends to ignore the
quality of advertising creative work in causing advertising effects.
Active Learning Theories of advertising assume that advertising conveys information that
leads to attitude change and, in turn, to changes in market place behaviour.
Low Involvement Theories of advertising assume, at least in some advertising situations,
that the information content of advertising is not of importance to the consumer and that it
tends to be passively stored rather than actively evaluated in relation to consumer reactions to
products and companies. In this conception, advertising effects cumulatively increase brand
relevance or salience, result in changed purchase behaviour, and lead to revised attitudes only
after the brand has been purchased or used.
Dissonance Reduction Theories suggest that behaviour may lead to attitude change and that
newly formed attitudes are reinforced and stabilized by information from advertising.
This review of theories in advertising suggests that there is no consensus about how
consumers interact with advertising or how these specific interactions do not lead to
particular results in the market place. All theories, except Pressure-Response theory, involve
three elements: Learning, Attitude Change and Behaviour Change
2.2.3 Brand Awareness and Purchase Intention
Grewal, Krishnan, Baker and Borin (2008) conclude that brand awareness and perceived
quality have a positive and significant relationship in a bicycle brand study. Many researches
also maintain that the higher the brand awareness is, the higher perceived quality is (Lin,
2006). Kan (2002) further suggests that the higher the brand awareness is, the higher the
consumers’ quality evaluation is. Besides, Aaker and Keller (2010) mentioned that a brand
with high awareness and good image can promote brand loyalty to consumers, and the higher
the brand awareness is, the higher brand trust and purchase intention are to consumers. Peng
(2006) indicates that brand awareness has the greatest total effects on brand loyalty.
When businesses develop a new products or a new market, they should promote their brand
awareness in order to receive the best result because brand awareness is positively related to
brand loyalty (Peng, 2006; Wu, 2002; Chou, 2005). Chang and Wildt (2014) submit that
value can facilitate loyalty. Parasuraman and Grewal (2000) propose that the more positive
customer transaction perceptions are, the stronger customer loyalty is.
Sirdeshmukh, Sigh and Sabol (2002) also deem that value will bring a positive influence
toward customers. Wu (2007) identifies that the perception of consumers will increase or
reduce brand loyalty. Judith and Richard (2002) further indicate that perceived quality and
brand loyalty have a highly connection, they will positively influence purchase intention. Chi,
Yeh and Chiou (2009) a new view and evidence to the study of brand loyalty that customer
perceived quality will influence brand trust and brand affect, and further to influence brand
attitude and purchase behavior. Thus, perceived quality and brand loyalty are positively
correlated, and brand loyalty will increase if perceived quality increases.
Consumers will have a higher purchase intention with a familiar brand (Kamins & Marks,
2011). Likewise, if a product has higher brand awareness it will have a higher market share
and a better quality evaluation (Dodds, et al., 2011; Grewal, et al., 2008). A well known
brand will have a higher purchase intention than a less well known brand (Hsu, 2000).
Garretson and Clow (1999) suggest that perceived quality will influence consumer purchase
intention, and
Monore (1990) indicates that perceived quality will positively influence purchase intention
through perceived value. Ho (2007) also asserts that the higher the perceived quality and
perceived value of the private brand foods, the higher buying intention to consumers. In
addition, Chang (2006) and Wu (2006) conclude that perceived quality and purchase
intention are positively related. Brand loyalty is a repurchase commitment that promises
consumers will repurchase their favorable brands in the future, and they will not change their
loyalty under any circumstance (Oliver, 1999). Aaker (2011), Assael (2008), and Wang and
Kan (2002) also mention that consumers must have positive feelings to a brand, and then they
will produce purchase intention.
2.2.4 Television advertising effectiveness on Greater Brand Awareness
When measuring the effectiveness of television advertising, one should keep in mind that
processing of and responses to television advertising do not always occur immediately after
exposure to the advertisement intervention. This is referred to as the sleeper effect. Many
persuasive messages therefore do not have an initial effect, but changes in behaviour take
place after a period. In general terms, this is any delayed effect that arises as a result of some
intervention (Cardwell 2009). Results from a study by Berger and Mitchell (2010) shows that
attitudes formed on the basis of repeated advertisement exposure are more accessible from
memory, and are held with more confidence than attitudes based on a single advertisement
exposure. In addition, Romaniuk (2009) and Ouwersloot and Duncan (2008) believe that a
television advertisement is only effective when the consumers who see the advertisement
know which brand is being advertised. When measuring brand recognition, respondents are
required to recognize a stimulus, which might be a word, object or image, as something they
have previously seen (Keller 2007). O’Guinn et al. (2009) suggest that a strong brand
presence helps to reinforce the link between the message and the brand.
Higgs (2004) suggests that the longer a brand is shown in an advertisement, the more likely
respondents will be able to store that information in their memory. Results from a study by
Unnava and Burnkrant (1991) support this notion and explain that attention and encoding
variability contribute independently to brand name memory, suggesting that brand presence
assists in reinforcing the brand name in memory. Additionally, Teixeira, Wedel and Pieters
(2012) conclude that the decision to zap (fast-forward) through an advertisement depends on
how the brand is presented within the advertisement. The ability of an advertisement to
concentrate consumers’ visual attention reduces avoidance significantly, and the likelihood
that consumers will zap through an advertisement can be decreased with a ‘pulsing strategy’
in which brand images are shown more frequently for a shorter period of time within the
advertisement instead of longer at the beginning or end.
According to communication theory, a television advertising message is only effective when
consumers who see the advertisement know which brand is being advertised (Romaniuk
2009). Higgs (2004) suggests that good branding is fundamental in marketing communication
as it is a vital component in the reinforcing process and in the positive brand associations that
are formed as a result. Zigmond et al. (2009) suggest that brand recognition can be increased
by showing or mentioning the brand earlier on in a television advertisement. Higgs concurs
that the earlier the brand is brought into a television advertisement, the better the brand
recognition may be. Although brand presence and brand introduction are conceptually related
to brand recognition in the literature, the link between them has been given little
consideration in empirical research.
2.3 Conceptual Frame work
The following conceptual frame work is developed for this study. In developing the
conceptual model, the concepts were taken from various conceptual frame works developed
by different researchers. Types of advertising media is adopted from Adeolu (2005), Singh et
al.;Michael (2012), and Chandrima (2009). Source of television advertising is also adopted
from Gezachew (2012) and Yang et al. (2007). Finally, Characteristics of advertising
messages is adopted from Vivekananthan (2010), Haghirian and Madlberger (2005) and Ling
(2010) by modifying factors; communication, informative, comprehension, hedonic/pleasure,
and credibility of advertisement. The frame work shows that the independent variables such
as media, source of advertising, and characteristics of advertising messages and brand
preference as dependent variable.
Figure 2.1 Conceptual Framework
Independent Variables Dependent Variable

Media

Television Source Brand Awareness

Advertising
of Media

Characteristics of
TV Advertising

Source: Researcher, 2018

2.4 Review of Empirical Literature

Michael (2012) had conducted a study on the Impact of Media on Consumers’ Brand
Preference” A Study on Carbonated Beverage Market with Reference to Coca-Cola. The
finding shows that brand preference exists in the carbonated beverage Market and the media
efforts affect consumer preferences and their brand choice. The research conducted by taking
three main variables, namely Information, communication, and comprehension. This research
revealed that the variable information has high influence in advertisement in consumers brand
preference. Here the variable information is measured by three dimensions; they are
attractiveness, attention, and awareness. These three dimensions account for about 56% of
respondents that are highly influenced by information in advertisement (Vivekananthan,
2010).

Adeole et al. (2005) examined that the impact of advertisement on consumers brand
preference in different areas, the results showed that from five different media used in
advertising Bournivita and how consumers viewed them in order of preference, for most
consumers their preference is television advertising while newspaper and magazine shared
4.44% each and similarly Gezachew (2012) conducted with same topic with reference to
electronics product and found that from advertising media perspective television advertising
is the most preferred by consumers to have awareness. To convey advertising message
experts, celebrities, and common man were preferred by consumers to get reliable
information of the brand. Chandrima (2009) had conducted the research on “The impact of
electronic and print media on consumers brand preference.”

Customers prefer television in comparison to other media since they get both the audio and
visual effects .This also proved that customer’s rely on advertisements shown in media.
Tendon (2011) assessed that the “Impact of advertising on the brand preference of tea.”
variables of the study are advertising, sales promotion, they are source of awareness and
income, age, gender, and education are also independent variables. The study revealed with
the perspective of source of awareness of tea brand, advertising accounts for 72.4%of the
respondents while 2.2% respondents feel that sales promotion schemes create awareness of
the brands. In the side of parameters for the parameters of tea brand, 63.8% of respondents
considered quality of the product (tea) as the most important parameter and only 12.9% of
respondents considered advertising as the most important reason for the preference of tea.
Again the study revealed that age, income, and education have great impact on the brand
preference of tea whereas gender has no impact on the brand preference of consumers.

Sandage and Fruburger (2015) have observed that on measuring communication effects a
marketer can understand what goes in the mind of the receiver of advertised message. Shimp
(2011) has opined that advertising effectiveness has been measured using two primary
constructs, attitude toward the advertisement and attitude toward the brand. These constructs
have been studied in advertising research since the late 70s, focusing primarily on brand
choice and behaviour prediction, and serve as direct antecedents of behavioural intent.
Rossiter and Percy (2015) have opined that the main communication effects of advertising
consist of: category need, brand awareness, favorable brand attitude and intention to buy the
product. They agree that communication objectives may differ from one campaign to another.
However, they have identified two universal communication objectives of advertisements –
brand awareness and brand attitude.

Woodside and Wilson (cited by Sagar et al, 2009) in their longitudinal survey have observed
brand awareness in great detail in light of competing brands, and their purchase behaviour.
Their study has found support to prior models, which have established positive relationship
between top of the mind recall and purchase intention. Frandin et al and Moriarty (as cited by
Marshall and Robert 2008) have observed that effectiveness measures are often dependent on
the goals of a communication campaign and they differ across campaigns. However, it is also
true that marketers Jacoby et.al (2007) has indicated the significance of brand awareness, by
stating consumers respond more strongly and decide to buy known and established brands.
Hoyer and Brown (2010) conducted a controlled experiment on the role played by brand
awareness in the customer choice. They have observed that brand awareness is a dominating
variable in the choice decision. They opine that in a purchase of product which has low
involvement, basic brand awareness is also enough to affect the product choice. Even if the
attitude towards brand is not well developed the brand awareness would be enough to
influence the buyer.

Aaker (2011) has stated brand awareness creates value in at least four ways. Unless the brand
name is established, the rest of the communication cannot take place. Thus, all the other
associations of the brand are anchored to brand awareness. It also provides a sense of
familiarity to the brand. In low involvement products, there is a possibility that even in
absence of evaluation; awareness alone would result in brand choice. Name awareness can be
a measure of presence and commitment. Brand awareness helps brand enter into the
consideration set. Keller (2001) in a laboratory experiment has studied how the competitive
advertising and its recall affects the brand evaluations.

It was seen that the advertisement recall leads to improved evaluation, even in absence of
competing advertisements. He has also noted that brand awareness comprises of brand
recognition, which confirms prior exposure and recall, which in turn confirms whether brand
name can be retrieved from the memory when given the product category cue. Brand
awareness affects consumer decision making by influencing the formation of brand image.
The brand name is like a file which is made in the minds of the customer. All the facts,
feelings related to the brand are stored in the file. When such file is not readily accessible, the
facts and feelings of the brand are misfiled. Thus, he emphasizes the importance of brand
awareness, as all other information and feelings would be linked to that specific file created.
2.5 Research Gap
The extensive literature review on the subject of TV advertisement effectiveness revealed
some gaps, which provided a good opportunity to conduct this type of research. Firstly, from
the literature review a strong need to study TV advertisement effectiveness of products of a
chosen category in the Tanzanian context was found. It was also observed that most studies
were based on popular brands. The problem of such research is that when popular and old
products are selected for study, it may downplay the effect of advertising. In such cases
people may be using products since childhood and their purchase behaviour would be
attributed to their liking of TV advertisement. Thus, to overcome this gap this study chose to
include recently launched products.
There is a dearth of research which talks about an entire product category as a whole. The
study addresses this gap by focusing on, the most advertised product category on TV. The
other gap seen in most of the studies was that, their selection of brands ignored the level of
advertisement spends. Mostly effectiveness studies gain importance when advertisement
spends is higher, thereby increasing the stake of the brand. This study tries to bridge this gap
by taking into consideration not just advertisement spends, but also including the three
highest advertisement spenders on TV. The empirical research on this topic in Tanzanian
context was not much; therefore a need was felt for this type of research in Tanzanian
context. Thus, this study aims to overcome the above mentioned gaps found during the
review of literature.
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