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THE EFFECT AND INFLUENCE OF BUSINESS ADVERTISMENT ON THE CONSUMER

BRAND PREFERENCE

In Partial Fulfilment of
The Requirements for the Practical Research II
Of General Academics Strand

The Research Presented to the


Faculty of Senior High School Department
Of Bulihan Senior High Silang, Cavite

Submitted By :

Latorre, Bryan Arvin R.


Mendana, Wendy
Mirando, Marie Beth M.

Submitted To:

Aries V. Sabilla, LPT


S.Y 2017- 2018
CHAPTER I
BACKGROUND ON THE STUDY

1.1 INTRODUCTION

Advertising is a very artistic way of communicating with the customers. The main

characteristics one should have to get on their objectives are great communication skills and very

convincing power. Advertising helps informs the customer about the brand available in the market and

the variety of products useful them. It is done using various media types, with different techniques and

methods most suited. Advertising is always present, though people may not be aware of it. In today’s

world, advertising uses every possible media to get its message through. It does this via television,

print, (news paper, magazines, journals, etc) radio, press, internet, direct selling, billboards, mailer,

sponsorships, and even people or the endorser.

Advertiser’s primary mission is to reach prospective customers and influence their awareness,

attitudes and buying behaviour. They spend a lot of money to keep individuals or markets interested in

their products. To succeed, they need to understand what makes potential customers behave the way

they do. The advertisers goals is to get enough relevant market data to develop accurate profiles of

buyers to find the common group and symbols for communications this involves the study of

consumers behaviour the mental and emotional processes and the physical activities of people who

purchase and use goods and services to satisfy particular needs and wants. The essence of being in

business by any business outfits is to produce for sales and profits. However, taking decision on sales

is the most difficult tasks facing many business executives. This is because it is difficult to predict,

estimate or determine with accuracy, potential customers’ demands as they are uncontrollable factors

external to an organization. Considering, therefore, the importance of sales on business survival and
the connection between customers and sales, it is expedient for organizations to engage in programmes

that can influence consumers’ decision to purchase its products.

According to Ambler (2000), advertising has major influences on consumption volume of

consumers, as well as sales volume. Adverts may not necessarily bring about huge volume of sales in

the short-run, but will certainly increase sales and profits in the long run if done properly. Even if some

marketers believe that accurate knowledge about consumers, how they buy, why they buy, and where

they buy is unnecessary as it is possible to manipulate hapless buyers into parting with their money in

return for products that they do not want. However, models about advertising as a strong force have

survived despite various empirical studies showing that the view of advertising as a strong persuasive

force is largely unfounded.

1.3 STATEMENT OF THE PROBLEM

The purpose of this study was to determine the effect and influences of business advertisement

on the consumer brand preference. As this study gives a clear insight into how advertisement can affect

or influence the consumer brand preference. The objective of this study first, is to examine the impact

of advertising on consumer brand preference. Second, is to examine the impact of celebrity

endorsement on consumer brand preference. Third, is to determine if the consumer prefer well known

the brand when buying product. Fourth, is to examine the impact of advertising on consumer

awareness and consumer preference on buying products. And lastly to find out factors that encourages

brand loyalty amongst consumers.


RESEARCH QUESTIONS

In order to achieve the objective of this study, the following questions were used:

1. Does advertisement influence the consumer brand preference?

2. Does celebrity endorsement affect the consumer buying preference?

3. Does consumer prefer well known the brand when buying products?

4. Does advertising help the consumer brand awareness and consumer preference on buying

products?

5. What factors encourage brand loyalty among consumer?

1.4 SCOPE & DELIMITATIONS OF THE STUDY

The scope of the study is limited to the effect and influence of advertising on the brand

awareness and consumer preference and to provide information regarding the relationships between

consumers’ preference and the effectiveness of advertisement in Bulihan, Silang Cavite, using selected

consumers of various household products or brand as a focus point. This study was limited to 100

male and female respondents and the study consider the personal information such as name (optional)

age, gender. The respondents were given same survey questionnaires.

. This study is focuses only to the parents who buy a best product for their families because

they has obligation to buy their needs in their household and they want to ensure the safety of the

products. And they has knowledge about the uses of various household products like detergent, dish

washing, air sanitizer, food sanitizer, personal hygiene and etc.


1.5 SIGNIFICANCE OF THE STUDY

The study will help firms to understand the importance of advertising and also helps to

understand the effect and influence of business advertisement on the consumer brand preference. The

advertisement is a public notices designed to inform and motivate the consumer. Their objective is to

change the thinking pattern or buying behaviour of the consumer, so that he or she is persuaded to take

the action to buy the products. Advertising is importance for the consumer because it will help the

people or the consumer to find the best product for themselves, their kids, and their family. Consumers

are the people who buy the product only after they are aware of the products are available in the market.

If the product is not advertised, no one customer will come to know what products is available and will

not buy the product even if the product was for their benefit. When they come to know about the range

of products, they are able to compare the products and buy so that they get what they desire after

spending their money. As this study gives a clear insight into how advertisement can influence

consumer preference, many firms will be encouraged into using adverts the products. This study will

be beneficial for all consumers. Thus, advertising is important for the consumer. And advertising is

important for the seller producing the products because advertising helps increasing sales, If any

company or business wants to introduce or launch as new product in the market, advertising will make

a ground for the product and helps making people aware of the product so that the consumer come and

try the new product.


1.6 THEORETICAL FRAMEWORK

Market response theory is based on the assumption of a direct relationship between advertising

and buying behaviour, measured by sales, market share and brand choice. This excludes the presence

of intermediate effects that may occur at the consumer level, for example expressing brand loyalty by

number of repeated acquisitions and not through a psychological predisposition of the individual. The

theory has two dimensions: aggregate and individual. Aggregate dimension of the theory is based on

the relationship between market data regarding advertising spending or the audience, on the one hand,

and brand sales or market share, on the other hand. Individual dimension points toward the choice of

individually brand or number of exposures necessary to generate individual or household purchasing

behaviour.

Cognitive response theory assumes that advertising has the ability to influence the relative

importance that individuals attach to various attributes of the product, purchase decision being purely

rational (Thorson and Moore, 1996). The primary role of advertising is to provide utilities related to

information or search costs. The model considers that on the market there are two major categories of

goods: those involving consumer experience and those related to the search process. The goods in the

first category are characterized by the fact that they involve the need for repeated use so that the

consumer can assess their quality. The second category can be easily evaluated on the basis of

objective criteria such as price, prior use not being necessary. This classification, however, is

problematic because numerous goods involve both consumer experience and search.

Affective response theory is a different approach from that previously shown by the fact that it

focuses on the emotional response that advertisement can generate (Holbrook and O`Shaughnessy,

1984). According to this theory, consumers form their preferences based on pleasure, feelings or

emotions arising from exposure to the message, the objective characteristics of the product playing a
less important role in this direction (Gardner, 1985). It is also required repeated exposure to the

advertisement to determine the desired effects, but this repeated exposure can lose effectiveness when

the frequency exceeds a certain level (wear in - wear out effect). This affective response takes into

account, on the one hand, the promoted brand and, on the other hand, the advertisement itself. The

creative concept may be largely based on melody, whose emotional effects are recognized. The

problem with this theory is the impossibility of separating the affective effect from the cognitive ones.

Although it is undeniable that advertising induces affective effects, they cannot however be detached

by the cognitive ones. Minimal involvement theory is an alternative response to the model promoted by

hierarchy theory persuasive. According to this theory, the consumer response to advertising involves

the following stages: cognitive response, behavioural response and affective response. The experience

is one that has the greatest importance in the formation of preferences and the role of advertising is to

reinforce consumer habits and experience.

1. 7 RESEARCH HYPOTHESIS

1. H1: Advertisement does not influence consumers’ preference for a brand.

H2: Advertisement influences consumers’ preference for a brand.

2. H1: There is no significant relationship between consumer preference and effectiveness of

advertisement.

H2: There is a significant relationship between consumer preference and effectiveness of

advertisement.

3. H1: Celebrity endorsement does not influence the consumers’ brand preference.

H2: Celebrity endorsement influences the consumers’ brand preference.