Nowadays, advertising have become one of the most important communication toward consumers by company. Advertisement are part of compulsory expenses for most MNE, most of the international company are using advertising for gaining the attention of consumers and purchase decision. In another term is pursuing consumers to purchase their product (Georgia Chevere, 2010). Sometimes selling the product is not sole of advertising, there are other main reason that advertisement serve, such as increase the population of company name as a introduce to larger rage of publicity (Georgia Chevere, 2010). Advertising also serves as informing new product of company, grapping the attention of publicity. Reminding and adding value toward the company are part of advertisement purpose (Georgia Chevere, 2010). This research are to study how company using advertising to influences the consumers buying decision, the reason how company use advertising to gain the trust from their consumers and consumers will purchase their products all the time in positive. And second is how advertisement affected consumers from royalty to total decline toward the company, the negative and the risk of advertising, such as celebrity endorsement are the best example
To understand how company advertising influence the buying behaviour of consumers.
Green advertising influence consumer decision.
To determine the risk of advertising will be facing.
This research is to understand why so important advertising for international company, each advertising will brings the direct impact toward company. Whether it is positive or negative impact toward company, this research also indentified the reason of positive and negative impact of advertising. While advertising is consider high expenses for company, but most of the time the profit that company earn back are much more higher. But sometimes it will lead to total expenses for company and fail to earn back the revenue company have spent.
background of advertising
Advertising are something that we can be found every way in our life, whether form newspaper, TV shows or roadside. Advertising simply apply to catch attention of consumers toward the brand and expose the company popularity. Advertising usually are done by using media, brochures, mailing, internet, personal contact and etc (Carter McNamara, 2010). Advertising act as a informing of new product toward publicity, it also act as a reminder for consumers. The more advertisement have the more attention company can gain form public. Advertising are a symbol of product. As for example, Malaysia telecommunication company, have come out with a yellow man, which have become one the most famous advertisement at that time. Yellow man has become the symbol for Digi and the company successfully gain a lot of customer due to this symbol (Gbyeow. 2007). Attention considered most important for advertising. Gaining the t attention of publicity will be main purpose of advertising. Advertising mostly are using the tools of consumer behaviour. As the studies of consumer behaviour advertisers can understand the basic of consumer buying decision.
3.0 Literature review
3.1 Green Advertising
In current era we are in, green advertising has become the most famous advertising method for most of the company. Many company use alert of environment to gain the attention and royalty of consumers. (Leonidas C. Leonidou. 2010). Green advertising are to inform publicity that what their company have provide toward environment, simply an introduced of how their company taking action at preserving global warming.
Environment or green advertisement also can be refers toward all appeals such as environment sustainability, ecological or nature friendly messages. This is major concern of targeting the environment concern consumers and stakeholders (Zinkhan and Carlson, 1995). Green advertising will not have hundred percent guarantee of getting the consumers trust. It may happen that consumers do not care about what do the company has done but they care about the quality of the product.
The samples of success of Green advertising:
According to Leonidas C. Leonidou research result, one of the energy company named ENEL has become a very good example of success by using green advertising. In 2005, there are few basic and easy understanding pharses. “We are working to reduce CO2 emissions to zero. In the last five years we have already reduced them by 17 percent” which informing the public that their company do have the result of environment plan. There are others advertisement that have create an unclear message that create curious for consumers. Such as “we respect the environment”, “environmentally sound”, and “ecologically friendly” By all these effort that ENEL have apply, they have successfully gain better compared to before. From 52.9 percent in 1988-2004 to 73 percent in 2002-2007.
In current advertising world, more than half have strong claim of emphasis, most are related to environmental issues were highlighted as primary concern. in contrast of benefit create attributes(Manrai et al., 1997) There are few examples, for Toyota, “zero emission advertisement” in 2007 announced to the public and create a strong beliefs(Leonidas C. Leonidou. 2010). There had an observed been make and showed that weak emphasis on the remainder environmental advertisements (43.9 percent).
Sample of green advertising do not have strong influences
These have presented that environment friendliness as an extra minor attribute influencing the product. As example, Volvo revealed the benefits of their product (760 series) which have greater in term of safety, comfort and better in technology, and last but not least offered environmental friendliness. Interm of claim emphasis, the observed result have show that advertisements publish in the beginning period have weak claim emphasis. (Leonidas C. Leonidou. 2010)
The Sponsors of green advertisement
As the research been done, the result have stated a total of 195 firms were the sponsors behind the 473 green advertisement, which have the ranked of top ten are Shell, ABB, BP, Bayer, TOTAL, Degussa, BASF, General Electric, Chevron, and Opel. There top 10 company have occupy 38.3 percent of the overall percentage (Leonidas C. Leonidou. 2010). These have showed that the concern of the majority company toward the environment. By the time goes by, most of these companies keep increasing the sponsors toward green advertising. The reason is because by this action company gain more population and trust from consumers, the total profit has increase compared to previous time (Leonidas C. Leonidou. 2010). The table below showed the percentage of top companies that increase the total advertisement.
(www.emeraldinsight.com/0265-1335.htm) access 10th April 2011
The basic of green advertising method
Green Advertising are using various type of method to gain the attention of consumers, according to Leonidas C. Leonidou, natural environment are the most famous among all green advertising, usually these advertisement will include these basic illustrations, a green forest, a tree in a field, a blue sea, blue sky, and flowers or birds. While natural environment advertising usage has decrease in 2002-2007. there are still others method other than natural environment, such as still life, Imaginary/artificial environment, green lifestyle and others. All these are sample of green advertising that create awareness from consumers. (Leonidas C. Leonidou. 2010)
According to Leonidas C. Leonidou, There is sample of artificial environment advertising by Vattenfall’s, which shows a lion hunting penguins in a dried-up, tropical region, were also employed in about the same proportion. (Leonidas C. Leonidou. 2010)
(Legal environmental logos, indicating that the product met minimum required industrystandards, appeared in just 2.3 percent of the advertisements. These advertisements were mainly sponsored by automobile firms, which have recently been obliged to provide more information about their cars’ CO2 emissions. Environmental certification appeared in 2.1 percent of the advertisements, the most commonly cited being ISO 9002, Energy Star, and Energy Efficiency Scheme (later renamed Carbon Trust Standard). Finally, the use of green trademarks)
3.2 The using of celebrity endorsement, positive and negative impact.
Advertising by using celebrity are not a new things in current advertising world. Many company are using celebrity as their ambassador, many company have invest millions of dollars in the reason of using celebrity as their brand ambassador. The main target is to win consumers preference (Daniel J Boorstin, 2010). Celebrities advertising are to recall the brand awareness, recall, refresh the brand image, and new dimension of image (Daniel J Boorstin, 2010).
For a successful endorser, company are using their public recognition to increase the percentage of consumers purchase the product (Liu, Huang, and Jiang, 2007). Endorser with strong credibility source of factors, such as attractiveness, and expertise, the advantage can affect consumers buying decision (Ohanian, 1991). Endorser can deliver the message and promote in a faster way compare to a normal advertisement, main reason are due to the endorser popularity (Matthew Tingchi Liu, 2010).
3.2.1 Advantage of using Celebrity endorsement
There are many examples of success companies that use celebrity endorsement that have created a huge income and reputation from their endorsers. The best examples are sports companies, such as Nike, Adidas and etc. Their mainly endorser are currently sports world best players, as for football, Kaka, Christiano Ronaldo, Messi, are current best player in football. Nike introduce the Boots for football, which are the same design as Christiano Ronaldo. Nike has gain a lot of sales just due to the particular product, the reason are those consumers that admire toward him will buy the product (Matthew Tingchi Liu, 2010).
According to research by Matthew Tingchi Liu. Particular in china, China are more mainly believe that using women endorser can brings more effect compare toward men, in history, there are hero such as Hua Mulan and the Idealized Rosie-theRiveter-Type communist Popaganda Heroines. This has represent and create a new space for women were elevated loyal or gave service to the nation (Brownell and Wasserstrom, 2002). Women endorsers are commonly represent as a heroes or idols in China. As compare to other countries, China women have much respect compare to male, there are few reason that Women Endorsers have much respect compare to males, in international sports events, females in China have better performance compare to males. For example, 1998 Seoul Olympic Games, Females athletes have won more gold medals than male athletes five times in row. Due to lots of examples of women has better performance, women endorser has really strong impact toward the company, china citizen believe, admire and trust them. Consumers in China will purchase the product that from women endorser. (Matthew Tingchi Liu, 2010)
By the research done by Matthew Tingchi Liu, Attractiveness has a different impact on Chinese market. Dion, Pak, and Dion (1990) has claim that physical attractiveness is weaker among people from collectivist societies. But according to Chen, Shaffer, and Wu (1997) believe that attractiveness stereotyping is very strong phenomenon, which the content across cultures. (Matthew Tingchi Liu, 2010)
3.2.2 Disadvantage of Celebrity endorsement
While celebrity endorsement all very good in term of increasing brand royalty, but there are disadvantage of using celebrity endorsement. If the particular ambassador have quit from their job such as sport, company have to find a new celebrity as replacement, which will cause lots of money (Daniel J Boorstin, 2010).
Reputation of celebrities will have direct impact toward brand loyalty and trust
As examples, Pepsi Cola had suffered due to three endorsement, Michael Jackson, Madonna and Mike Tyson. Due to celebrities reflect the behaviour of brand, consumers may have the thought of stop consuming the brand. Celebrities may at times become company liabilities (Daniel J Boorstin, 2010).
The Vampire Effect
the vampire effect can be define that celebrity has overshadowing the brand, it will happen that consumers only remembers the celebrities but not the brand. This may lead to serious loss for the brand itself, consumers do not remember the product, but just remember the celebrity in advertisement. Company have to pay for celebrity as well for the advertising fees, but turn up did not achieve the purpose (Daniel J Boorstin, 2010).
Multi brand endorsements by the same celebrity would lead to overexposure
There are many celebrities endorse more than one brand, example such as David Beckham, which are footballer, but the total brand he endorse are a lot, which many product do not really have real connection toward him, such as perfume. David Beckham are major in football, but turn up as a endorser for perfume, which does not make real sense. Which lead to overexposure, which consumers start to doubt the brand and not purchasing the brand (Daniel J Boorstin, 2010).
Celebrities are not using the brand they endorsing
Sometimes it will happen that celebrities are not using the brand that they are endorsing. As examples, Sainbury’s encountered problem with their endorsement, Catherina Zeta Jones, who Sainsbury’s use for their advertisement, when she been caught buying product in Tesco. Another similar case happen to Britney Spears who endorse one cola brand but was caught that she actually consuming another brand of cola. this will lead to company lost of consumers trust toward the company, consumers may change their buying decision that never consume any product from the company(Daniel J Boorstin, 2010).
3.3 The Connection between Advertising towards brands royalty
Brand royalty are consumers have strong trust and believe toward brand, in current world, Brand royalty has been conceptualized as a determination on behavioural and psychological perception, this are the brand royalty have been construct (Hong-Youl Ha, Joby John. 2008). Advertising also act as a strong related to consumer perceptions of product or service quality and linked with brand loyalty (Hong-Youl Ha, Joby John. 2008). According to Yoo Et Al (2000) has examined that the impact of marketing mix on brand royalty. Advertising are spending on expectation of product or service quality (Hong-Youl Ha, Joby John. 2008). Brand loyalty also defined by Oliver, 1999, a deeply held commitment to Repurchase a preferred product or service continue in the future, “thereby causing Repeat purchasing same-brand, despite situational influences and marketing efforts having the potential to cause switching behavior” (Hong-Youl Ha, Joby John. 2008)
According to Agrawal(1996), he had suggest that advertising can be seen as a “defensive strategy use by company to build brand loyalty. which in help of retaining all the royal consumers. As for price promotion true advertising are act as “offensive” strategy to attract royal consumers stay toward the brand, which gain better advantage from rival brand. By investing more toward advertising, the more chance they gain consumers loyalty. More advertising will have more exposure for consumers (Swinder Janda, Siva Muthaly. 2008). Advertising investing will be necessary for protecting company loyal consumers from the rivals.
3.3.1 Affecting consumers
Advertising will help brand to store an image for consumers, Perception will be form over time (Bloemer, 1998). And, perception and beliefs are involves with the particular store. Ruyter, 1998, has defined that the construct as “consumers” perception has different attributes associated the advertising.
Consumers will learned from current and previous exposure to stimuli from both independent and interdependent in consumers memory (Bloemer and Ruyter, 1998).
3.3.2 Customers satisfaction and brand royalty
Customer satisfaction has strong impact toward brand loyalty. According to Giese and Cote(2000) satisfaction is best to defined as “a summary affective response of varying intensity with a time-specific point of determination and limited duration directed toward focal points of product acquisition and/consumption.”(Giese and Cote, 2000) “We conceptualize satisfaction as a customer’s overall evaluation of a product or service in terms of whether that product or service has met their needs and expectations”
Loyalty common are most linked toward consumers behavioural measures rather than attitudinal measures (Olsen, 2002). Based on this explanation, brand loyalty consider as a behavioural response that expressed by composite measures (Swinder Janda, Siva Muthaly. 2008).
The reason of choosing secondary data is mainly because it is save time and the cost saving (Hair, Money, Samouel, and Page, 2007). Cost and time are the major concern of all. The large quantities of data and the sophisticated statistical technique used make it far more cost effective for users to buy the data than try to undertake the research themselves (Hair, Money, Samouel, and Page, 2007). According to Saunders et al (2007), primary data is too expensive as compare to secondary data. In addition, Hair et al (2007) also emphasized the used of secondary data as data are often free of charge or either can be purchase in a cheaper price as compare to primary data. Secondary data reliable and acceptable due to the improve technology for current world (Saunders, 2007).
Data Collection Procedures
By completing a good proposal, the process of collecting data are very important in order to achieve a good proposal, the source of this proposal are major come from textbook, internet and journals. Text book mainly obtain from KBU international College library, which provide reference for this proposal. As technology improvement, the student will able to access to internet to get information, such as emerald website to obtain the journals, the more convenience are search engine such as Google and yahoo search engine, search engine will save student lots of time. Most of the journals are trough emerald insight, which using KBU international College account, Text book are less use due to information from text book are not much suitable for this proposal.
Limitation of Resources
This proposal major is using internet resources to complete, due to library text book limited resources, most of the reference are using internet. All journals are from Emerald Insight, while not all the journals are able to access some may still need to pay. All research is using secondary data in this proposal, most opinion is from author’s themselves and there will happen different definition from different author’s. Secondary data will be out of date, that’s may lead to less accuracy of this proposal.
The research major highlight how advertisement able to influenced the consumer perception, to understand how effective advertising able to gain sales from consumer and created publicity. Such as green advertising to create a new image for company itself, which gain consumers attention and changing consumer perception, but there must have no mistake when creating a new advertisement, it might lead to different perception, such as celebrity endorsement, celebrity might over take the main objective of the advertisement. Consumers might remember the celebrity but failed to remember the product and brand, it will cause huge loss for a company.
Draft literature review
Read methodology literature
Devise research approach
Draft research strategy and method
Enter data into computer
Draft findings chapter
Update literature read
Complete remaining chapters
Submit to tutor and await feedback
Revise draft, format for submission
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