ABSTRACT
Advertising is the use of paid-for space in a publication, for instance, or time on television, radio or cinema, usually as a means of persuading people to take a particular course of action, or to reach a point of view. It may also be taken to include posters and other outdoor advertising. This study is undertaken to investigate the Effect of Media Advertising on Consumer acceptability of new product. This study has used both descriptive and explanatory designs using quantitative data from primary sources that were collected through questionnaire. The target populations for the study are consumers of the Hero Lager beer which are found in Onitsha, sample size for this study was 384 individuals. The researcher has used non-probability sampling approach, specifically convenient sampling technique. After the data are collected both descriptive and inferential statistical techniques were employed to analyse the data. An inferential analysis is conducted by using correlation and multivariate regression to show the relationship and the significance between dependent and independent variables. The correlation analysis was computed by using Pearson correlation method and regression analysis was estimated by using the Ordinary Least Square (OLS) methods. From the finding it is concluded that there is positive relationship between media advertisement and customers product choice, there is also strong relationship between Advertisements on quality of products with customers’ product choice, there is a statistically significant and moderate relationship between Customers’ perception of media advertisement and Customers product choice. From the Econometric results, the finding shows from the total explanatory variables identified, easy to remember advertisement possess the highest effect on customers acceptability of new product followed by Eye catching advertisement. One variable which is simple advertisement is found to be not statically significant to influence the dependent variable. From the finding it is recommended that, the marketing department of the company is recommended to establish a better way of advertisement that can grant the quality of the product the company is serving to establish a loyal and long-lasting customers
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nearly everyone in the modern world is influenced to some degree by advertising and other forms of promotion. Advertising as one of the key promo tools plays a very important and crucial role in ensuring new product acceptance in the prospective target market. Advertising has been defined as any paid form of non-personal presentation of ideas, goods or services by an identified sponsor Kotler and Keller, (2008).
A more recent definition which captured the modern practice of advertising was advanced by Moriarty et al (2009) which sees advertising as a paid form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience) and provide information about products (goods, services and ideas).
Nigerian consumers are increasingly in the area of exposure to advertising messages. This is largely due to their expectation of good value for the money spent. Pike (2008) asserts that marketers are now faced with escalating media costs, often in tandem with declining advertising budget, thus leading them to increased interest in below the line promotional opportunities. According to Kotler (2009), marketing is totally about customers hence the core mission of marketers is to provide the solution to customers needs and wants by indentifying and meeting them. There are four mean factors on which marketing have been built up: these are four elements of the marketing mix place, product price and promotion. Advertising as a component of the promotional mix further enhance creation of customers awareness toward organizational products and then the need to accept such products if it meets, expectation and satisfaction of the consumers Belch and Belch, (2003).
Advertising and other types of promotional messages are used to sell products and services as well as promote cause, market political candidates and deal with societal problems such as HIV/AIDS campaigns. Not only do advertisements sell goods and services, they are commodities themselves.
Organizations in both the private and public sector have learned that the ability to communicate effectively and efficiently with their target audience is critical to their success. Advertising has important consequences for the advertisers who use it and for individuals who are exposed to it. It attempts to persuade prospective buyers to buy a product/service and equally contributes to economic growth by helping to expand the market; helping to develop new market segments.
Various strategies, including advertising are employed to make potential buyers aware of new products. Advertising can be used to promote new products and to call attention to changes in old products. In its usage to promote new products advertising impacts can be felt in consumer acceptance of Hero lager beer, a new brand of lager beer that has won some chunk of the beer market especially in Anambra State.
1.2 STATEMENT OF PROBLEM
When a new product is introduced into the market, the product either fails or succeed. Estimates as to the proportion of new products success range from 2 to 20 percent (Agbonifoh et al, 2007). Various reason have been adduced as to why so many new product fail. The failure of a new product pose a very serious problem to the firm introducing the product.
New products are important to a firm because of their implication for its continued survival, growth and profitability and because of the exergencies of competition. These new product face success/survival problem when not properly managed or promoted advertising is perhaps the most conspicuous of all marketing activities.
1.3 OBJECTIVES OF THE STUDY
The general objectives of this research is centered on the effect of advertising on consumer acceptance of new product. However, other specific objectives are to;
To ascertain the advertising types that can improve product acceptance in the industry.
To determine the extent that advertising can influence consumer’s purchase behavior
To determine the various advertising campaigns and/or communication used on Hero Lager beer
1.4 RESEARCH QUESTION
This research “Effect of advertising on consumer acceptance of new product” would attempt to answer the following questions;
Would the advertising types enhance product acceptance in the industry?
To what extent can advertising influence consumer purchases behavior?
What are the various advertising campaigns/communications that can be used on Hero Lager beer?
1.5 RESEARCH HYPOTHESIS
In the course of conducting this research, the following hypothesis would be formulated’
Ho1: There is no significant relationships between advertising types and product acceptance.
Ho2: Advertising has no significant relationship with consumer purchase behavior.
1.6 SCOPE OF THE STUDY
The scope of this study, i.e effects of advertising on consumers acceptance of new product. (A case study of Hero Lager beer) aims at evaluating the role advertising played in the mass acceptance of Hero Lager beer specifically in Onitsha, Anambra State / market.
The study would therefore be limited to Anambra state as the state seems to have a large segment of its market accepting and patronizing the beer.
1.7 SIGNIFICANCE OF THE STUDY
The findings of the study will benefit the Beverage industries, specifically, Hero Lager beer by helping the company to understand the influence of media advertising on consumer acceptability of their product, various types of media advertisements that can be used to advertise beverage products, ways in which media advertisements influence consumer acceptability of new product. In general, by identifying the effectiveness of media advertisement on customers’ acceptability of new product, companies can see their relationship and fill the gaps accordingly. This study can also be used as source for further studies in this area.
1.8 ORGANIZATION OF THE PAPER
The paper is organized as follows: the first part includes; Introduction (background of the study, statement of the problem, research questions, objectives, scope and significance of the study). The second part is about related literature review that includes theoretical review of literatures, empirical review and conceptual framework. The third part includes Research methodology, the fourth part is Data Discussions and Analyses, and finally Conclusions and Recommendations.
