THE EFFECT OF ADVERTISEMENT ON CONSUMER PREFERENCE AND BRANDS: A CASE OF HERBALIFE PRODUCTS

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ABSTRACT

Most organizations primary mission of advertising is to reach prospective customers and influence their awareness, attitudes and buying behavior. Advertising has become the gateway to survival and the acquisition of market share for most organizations with herblife products not been an exception The research used a cross sectional survey and quantitative approach in collecting the opinion of Fifty-one (51) questionnaires, distributed to collate information to meet the specific study objectives. The findings was based on the various medium used for advertisement of herbalife products, the various types of advertisements of herbalife products, the factors that are most effective for influencing consumer buying behavior with herbalife brand and the extent to which advertising has influenced consumer brand preference of herbalife products.

The study had a fair representation of male and females respondents with the number of female participation out number male respondents based on purposive and convenient sampling method used in administering the questionnaires to retailers and consumers of herbalife products. Key findings of respondents reveal both retailers and customers who patronize herbalife products are the elderly, with all survey respondents possessing satisfactory level of education.

The study concludes majority of respondents do agree broadcast and celebrity advertising broadcast advertising is the most widely used medium for herbalife products.Based on results and its analysis it is recommended management of Herbalife must ensure selection of medium and type of advertisement returns maximum benefit to the organization at minimum costs, while engage in aggressive advertising to instill interest in the minds of the consumers towards their produc

CHAPTER ONE INTRODUCTION

     Background of Study

Today’s organizations aim to survive or win the competition by engaging variety of audiences in this turbulent business environment with implementation of effective advertisement on consumer preference and behavior. The use of advertisements has significantly increased in the 21st century since the role of advertising in helping organizations inform as well as influence the general public to buy a product or services cannot be underestimated. Several Advertising definitions proliferate in today’s world. According to Kotler et al. (2014), advertising delineates to be “any paid form of non-personal presentation and promotion of ideas, goods and/ or services by an identified sponsor”. The purpose of advertising by organizations seeks to create awareness in the minds of potential buyers through various advertising mediums in order to impact on buying behavior.

Most organizations primary mission of advertising is to reach prospective customers and influence their awareness, attitudes and buying behaviour. Common advertising objectives are identified as, behavioral constructs that generate trial purchases, attitude changes and measurements, position, brand building and creating brand awareness (Sawanth, 2012, p.56). Green (2012) defines advertising as a “paid form of communication by individuals or companies, with an aim of influencing people to think or act in a particular way providing information”.

Further, Yeshin (2006) sees advertising as a paid, /non personnel method that used to communicate and manipulate consumer behavior.

Ntiamoah, Egyiri, and Kwamega, (2014), suggested that, hitherto, the driving force of advertising is to create brand awareness inducing potential consumers to consider as well as to remind existing consumers of an existing brand (leading to create a positive effect on brand preference over competitive brands influencing the brand choice purpose (Barker, 1999). In contrast, Ewen (2008) is of the belief that the basic purpose of advertising is to provide efficient and massive distribution of products whereas the functional goal is creating consumers’ desires or habits.

Further, Tahtinen, (2006) in his study, indicates advertising as a paid, mediated form of communication which premeditated in persuading enabling the receiver to make an action. This is further illustrated by Tom and Eves’s (1999) perception of the principle of advertisements that is to inform as well as to persuade. Furthermore, Hussain et. al., (2008) state advertising involves in delivering allied information of product or service to potential consumers affecting their purchase intention. Several studies suggest advertising facilitate the effectiveness of advertisements in terms of brand recall, persuasion or brand preference (Keller, Macdonald & Sharp, 2000).

Consumer is a person who buys and uses products. Therefore, consumers keep the production cycle moving as well as play an important role in the economic system of any nation, as a result, any company will face crisis if consumers don’t have the effective demand for goods produced. Consumers demand different commodities based on their taste and preference for them.