The Effect Of Advertising On Consumer Decision Making Marketing Essay

2866 words (11 pages) Essay in Marketing

5/12/16 Marketing Reference this

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1.0 Introduction

Any real business being is the production of clothing sales and profits.

Organizations to continue to operate from its products must generate enough sales, including operating costs and post a reasonable profit. For many companies, sales are estimated at the beginning point in the budget or profit plan. This is because it must be determined in most cases; the production units to production units upon arrival will in turn affect the major purchase. However, the decision to consider selling the most business executives is faced with many daunting task. This is because it is difficult to forecast, estimate or determine the accuracy and potential customers. Demand because they are external factors beyond the control of an organization. Consider, therefore, the importance of sales, business survival and the connection between customers and sales, it is appropriate for the organization in the process, can influence consumer decisions to buy their products. This is the advertising and brand management is related. Advertising is a subset of the promotional mix which is 4ps marketing mix that includes product, price, place and promotion. As a promotional strategy, advertising is the main tool to create product awareness and spiritual conditions of the potential consumers to take the final decision to buy.

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Problem statement

Generally, advertising is a relatively low-cost method of conveying selling messages to numerous prospective customers. Advertising is to stimulate market demand. While sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even demand for the product, it is seldom solely relied upon. It is very common that almost every company or any business want to promote their product by advertisement. It will also lead big changes in a company financial performance and sales. But there are also some of the companies not focusing on this type of promotion, because will lead to a big loss if the company is not earning. Advertising is efficiently used with at least one other sales method, such as personal selling or point of purchase display, to directly move customers to buying action.

2.0 Research Objectives

To understand the role of advertising within the organization and as part of the marketing

To determine the influence that the advertisements can create to manipulate or influence the buying behaviors of the consumers

To set other functions of advertisement aside from meeting the trust and loyalty of the consumers.

2.1 Research Questions

To critically analyze what are the role of advertising within the organization and as part of the marketing?

What are the influences of advertising that influence the buying behaviours of the consumers?

What are the function of advertisement aside from meeting the trust and loyalty of the consumers?

3.0 Literature review

3.1 Background of Advertising

Advertising actually is a form of communication that created to convince the audience, which is viewers, readers, and listeners to buy or try of the products, ideas or some services. This process is including a products or services that could maybe give benefit to consumers that to buy a particular brand. The messages in the advertisement that view through the media to watch are usually paid by the sponsors. Sometimes, an advertisement is also attempt to use as a message that can communicate with certain people to convince them to make a decision or some changes or action. Besides that, advertising can also be defined as a communication process, an economic and social process, a public relations process that viewed advertising from its functional perspective. This is why advertising can also be called as a paid, non-personal commercial agency, non-profit organizations and individuals who identified a way of advertising messages to communicate some of the media are many who want it to inform or persuade specific audience.

How Advertising Works

Advertising is a type of communication and it has many different effects that are normally related to other form of communication. No matter how powerful and persuasive is also useless if the consumer does not see the advertisement or get people attention.  A useful framework to understand the multiple effects and interrelationships are called hierarchy of effects model. The different stage of the communication process is show in the hierarchy of effects.

Getting Attention

Advertisers should be aware of where it should be a communication to reach specific types of consumers to increase the possibility that the media’s decision. Advertisement is often based on characteristic that create by advertiser to get attention, but the creative clutter scattered information as the main audience. Consumers are unlikely to participate in the advertising they have seen, more often appeared in advertisements for personal consumption. They used to be less likely to pay attention to it once again exposed. This phenomenon is known as ad wearing. 

3.2 Impact of advertisement

3.2.1 Positive impact of advertising on celebrity endorsement

There is few positive impact of advertising and the two that are more important is building awareness and connects emotionally. Giving an example for building awareness, a new brand can really benefit a lot if a celebrity endorses on it. And it can attract the customers’ attention and inquisitiveness to see what product is being endorsed. Besides that, research has shown that consumers can get a higher level of message recall if the brand or products is endorsed by celebrities. Next, will be connects emotionally. Some famous celebrities like David Beckham, Dato. Lee Chong Wei, and Michael Shumacher, command great adoration among people. This type of celebrities can strongly and positively influence the view of their fans. Their fans will willing to purchase or tend to do because of their stars are enduring on it.

3.2.2 Negative impact of advertising on celebrity endorsement

The negative impact which would like to talk about celebrity overshadows the brand and necessary evil. In celebrity overshadows the brand,

a) Celebrity overshadows the brand: In certain cases where the celebrity values category benefit and brand values are not closely linked. There are chances that the celebrity is remembered more than a brand. Cyber media research study reveals that 80% of the respondents approached for research remembered the celebrity but could not recall the brand being endorsed.

b) Necessary Evil: Marketing have felt that once the brand rides the back of celebrity it becomes difficult to promote it without the star as it becomes difficult to separate the role of message and the role of the celebrity in selling the brand. The celebrity activity becomes an addiction and the task to find substitute becomes more and more difficult.

Consumer buying decision process

Consumer buying decision process is basically known as a cognitive process. Consumer is aware of a need or wants and search for possible ways to satisfy it. Awareness of consumer is not an automatic process but it is actually selective external procedure. Example, consumers are expose to thousands of messages that persuades them from advertising, political organization, religious groups , food products and many more other resources. This mass information that seeks out consumer attention is then filtered out by individual in order to make the decision in buying a product.

There are five stages of consumer decision making process which is problem recognition, information search, information evaluation, purchase decision, and evaluation after purchase.

First, is the problem recognition, which is consumers recognizing a problem as a need or want. For example, when the gas tank is getting empty or you rushing to lunch for your sandwiches, or when your car is time to go for maintenance.  Problem recognition will also occur when a consumer receives new information about a good, service, or business For example, we can say that when people feeling thirsty, they will straight way think of taking some cold drinks, because it can allows them to quench thirst.

The second is the Information search, which consumers is searching for information that is helpful in making a purchasing decision.  With this, the consumers can get the information in one or many ways. Besides that, consumer information sources also have four groups which are below: 

Personal sources

Commercial sources

Public sources

Experience sources

Most of the information that consumer receives is from commercial sources. This means most of the information that normally seen is come from advertisements, salespeople, catalogs, newspapers, and e-mail. However, the most effective influence mostly are comes from such personal sources as family members and friends like when they having conversation. Effective marketers will try to identify the information sources and customers will influence by their relative. Which means can asking customers how well they know about the product is and what will be influences each source of information had on their purchase decision.  This consumer information could helps marketers to plan advertisements and right information only can be given to customers to meet consumer needs.

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The third is the information evaluation. During this stage consumers mostly will compare products with their features and benefits.  They might compare the product brands, styles, sizes, colors, prices, and related services of that product. For an example, some consumers may want to buy Starbucks coffee, while others are buying less expensive drinks like old town white coffee, Paparich and etc.  

Next is the purchase decisions, at these stage consumers have to recognize a need. Consumer has to do some research on the product and evaluated available alternatives.  Example, customers are now ready to make a purchase decision to buy Starbucks coffee, but some factors will influence their purchase decision. They will compare how much money to spend whether they can afford the product from Starbucks. But sometimes, some customers may wish to try new flavour of product before them making a big purchase. 

The last stage is evaluation after purchase which occurs when after customers making their decisions. Post-purchase evaluation will occurs to let a customer find reasons to support their purchase decision. This is because a satisfied customer represents a good advertisement board for the company and its products. Giving an example, customers will repeat purchase Starbucks coffee is because of word of mouth advertising to make them to repeat business.

Advertisements influence the buying behaviors of the consumers

According to Warlop and Wedel(2002), advertisement able to influence the consumer behaviour because advertisement able to attract attention from the public. While attention increases towards a product, they will have a certain perception and will build belief on their particular product. If the belief and the perception were positive, the consumer will likely get more information and adopt the product. If the perception and belief is negative, the potential customer will declare any information about the product and will not adopt the product.

Due to the previous case that based on the consumer behaviour, there are there elements that will affect the consumer buying decision when they purchase. And an external influence, internal influences and also the marketing influences is found according to advertising, product promotion and pricing technique. And due to the research, the marketing activity like advertisement which is definitely affects both internal and external behaviour of the consumer. Normally, consumer’s perception will influence by the colourful or exposure things such as looking at an advertisement that is attract them. And this shows that the consumers will recognize the advertisement that attracts them. Awareness will be create if the advertisement involves sense of humor, and what will keeps or stay in the consumers mind is retention (Chen and Lee 2005). Besides that, advertisement will also affect the knowledge through giving information, personality, and attitude, lifestyle of the consumers and also the culture of the consumer. The concept of the advertising is totally can let the consumers involves, and which also greatly affect the decision of buying of the consumers.

Function of advertisement aside from meeting the trust and loyalty of the consumers

Advertising affect on children

Advertising is a wide-ranging implication for children and young people. Research had show that basically in every year, young people are view over 400,000 of ads alone on television, and are increasingly being exposed to advertising on the Internet, magazines, and in schools. Such contacts can contribute significantly to obesity in children and adolescents, malnutrition, cigarette and alcohol use. Media education has been shown to reduce the advertising of the negative impact of children and young people some effective.

Research shows that children that younger than 8 years old, cognitively and psychologically defenseless against advertising. While 6-9years old, they cannot understand. In fact, the late 70s in the 20th century, the concept of intent to sell, and often accept advertising claims Face value, The Federal Trade Commission (FTC) held a hearing to review the existing research and concluded that it is unfair and deceptive promotion of children under the age of 6 years. What makes from the U.S. Trade Commission to ban such ads, it was considered unrealistic to achieve such a ban.11 However, some Western countries like Sweden and Norway, banned the ads after 10 pm for children younger than 12 years Ads, Greece bans toy advertising, and Denmark and Belgium severely restrict advertising aimed at children.

Theoretical framework

Independent variable Dependant variable

Advertisement

Attention

Perception

Belief

Consumer decision making

Conceptual framework analysis

Based on the analysis above, the independent variables for advertisement would be attention, perception, and belief. The dependent variable would be consumer decision making. The purpose of the whole project proposal is to find out the influence of advertisement influencing the decision of consumer when purchasing the product or usage of services.

3.0 Methodology

In this section, we will talk about how the data is collected and being analysis for the above study. This is to find out the effect of how advertisement affects the consumer decision making through all the study that had been proved by other people.

3.1 Data

3.1.1 Data Resource

Primary data is Information that researchers gather in first hand. And secondary data which is Information from secondary sources, but not directly compiled by the analyst. And it may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. And in this research, secondary data is chosen. According to (Romano 2004), this is because the cost is less if compare to primary data. Besides that, the data is much easier to get and the answer that they provide can answering our question due to the sources like internet, journal, and also articles.

3.1.2 Data Analysis Procedure

The resources and information that had been found to process this study and to be analysis will be the journals, articles, and books. Information that found through internet, “Google” which is International search engine, and also books from KBU International College, and some information is from the online library which is “Emerald”.

3.2 Hypothesis

Research Question

Null Hypothesis

Alternative Hypothesis

1

Advertising does not play a role within the organizations part of the marketing

Advertising did play a role within the organizations part of the marketing

2

Advertising does not influence the buying behaviour of the consumers

Advertising is influence the buying behaviour of the consumers

3

Advertisement don’t have side function beside trust and loyalty of the consumers

Advertisement have side function beside trust and loyalty of the consumers

3.3 Limitation

Based on the theoretical framework that complete with resources that already been analyze and explain about the main points that affect consumer decision making with advertisement. And because of the limited resources and information that provided in KBU International College, Google, and also Emerald online library, the above study is not consider correct and accurate. This is because of we are still a student and our cost is limited and we don’t have money to purchase any the report that proved and done by research company.

4.0 Ethical Consideration

This study will not show out any detail related to anybody or person that provide information, sources and idea. This is because to protect the human rights and also to prevent from any misunderstanding or problem occurs. There is ethical action that should be taken. Respondents that take place will not be force to become subject in research, and respondents will be given the right to withdraw from participating in this research. The personal information about people that are involved in the survey is confidential and will not be used for other purpose. All information will be discarded once research is done, and the identify of respondents will be destroy and not reveal in the future.

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