EFFECT OF ADVERTISING ON BRAND SWITCHING BEHAVIOR OF AMSTEL MALT IN ABA METROPOLIS

CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

In the competitive market place, the brand name has become a distinguished contrivance that offer the assurance of value and quality by the companies (Meenaghan, 2015). New brands are continuously penetrating the market where consumers have lot of alternative choices. Accordingly consumers are frequently switching brands and are no longer loyal which have an influence on the survival of the companies. Thus, brand switching behaviour becomes a fundamental issue and companies are striving hard to capture the attention of the consumers. Recent findings from Nielsen Global Survey (2014) cited in Maurya (2016) revealed that half of global respondents are generally willing to switch to a new brand and advertisement is the major reason behind higher switching rate. 

Scholars and marketing managers have also highlighted the advertisement components as significant factors influencing consumer’s brand switching behaviour (Cobb-Walgren et al., 2015). Both traditional and emerging advertising media, various sales promotion measures, innovative personal selling tactics and publicity campaigns are being extensively used to attract new customers towards the brand (Kotler et al., 2015). Advertising media and sales promotion measures produce intuitive differentiators to persuade the consumers. Also, budding promotional tools such as internet advertising, celebrity endorsements and word of mouth (WOM) are also being established to be a motivating and promising force that has fascinated the marketer’s attention. But the consumers willing to buy a new brand have to face certain qualms which may resist their switching behaviour (Meenaghan, 2015). Switching towards the new brands required searching and learning about new products or services and to face certain procedural formalities etc. For generating a new customer base companies have to bear precipitous prices that costs five to seven times more as much as keeping a current customer (Umoh et al., 2015). Thus, maintaining the strong and loyal customer base is a new challenge among the marketers and companies. Various research studies have highlighted brand equity as an essential valuable asset to generate re-purchase behaviour and resist brand switching behaviour (Cobb-Walgren et al, 2015). Furthermore, high brand equity provides many competitive advantages to the company by reducing the abrupt switching behavior among the consumers (Runturambi 2018).

In the contemporary retailing environment, information on products and brands are copious, and the information searching cost borne by consumers is relatively low. For firms to deliver messages to consumers and to express what the firms pursue, advertising is one of the ideal choices. Advertising is capable of shaping consumers’ attitudes towards the brands and to enhance their brand awareness. Through advertising, firms strengthen brand images and impress consumers in the competitive marketplace (Sekaran & Bougie 2019). Advertising and brands are two important aspects in strategic marketing. Meenaghan (2015) indicated that advertising was the most effective resource for generating brand identities that were symbolically attractive to the targeted customers. However, consumers with positive attitudes towards certain brands may have preferences for other brands and switch among several brands. Deighton et al. (2016) utilised a choice model to estimate the effects of advertising on brand switching and concluded that advertising attracted switchers. The relationships between brand/advertising cognition and brand-switching behaviour are more than what satisfaction or loyalty signifies hence the need for this study.

1.2 STATEMENT OF THE PROBLEM

The emerging concern among the marketers today is how to create and maintain a consumer base by delivering true innovation and value through proper marketing mix practices. Hence it is imperative to discover the true role of advertising strategies both traditional and emerging in influencing consumer behavioral intentions. Researchers have typically pondered interest on advertising through magazines, newspaper, radio and television advertising and monetary and non-monetary inducements like games, gifts, various offers, scratch cards etc (Sekaran & Bougie 2019). Less attention has been paid on the personal selling, internet advertising, celebrity endorsements and specific types of sales promotions such as buy one get one free, extra grammage and special schemes to enhance the explanatory power of brand switching phenomenon.

Additionally, evidences regarding the significant role of word of mouth and personal selling in influencing brand switching in literatures are scarce and are limited to the services sector (Till, & Busler, 2016). Consequently, it is imperative to examine its relative impact on brand switching in comparison with advertising media, sales promotions and personal selling (Aghaei et al., 2014). Furthermore, in spite of little empirical and conceptual support, researches on switching barriers are scarce and thus, should be focused. Thus this study seeks to examine the effect of advertising on brand switching behavior of Amstel Malt in Aba metropolis.

1.3 OBJECTIVES OF THE STUDY

The primary objective of the study is to examine the effect of advertising on brand switching behavior of Amstel Malt in Aba metropolis. Specific objectives of this study are:

To determine the extent consumers patronise Amstel Malt in Aba metropolis.

To determine whether advertisement is an important strategy to maximize the sales performance of of Amstel Malt in Aba metropolis.

To determine whether advertisement has an effect on brand switching behavior of Amstel Malt consumption in Aba metropolis.

To ascertain the various benefits of advertising to brand switching behavior of Amstel Malt consumption in Aba metropolis.

To find out the various challenges of advertising to Amstel Malt consumption in Aba metropolis.

1.4 RESEARCH QUESTIONS

The following research questions which are in line with the objectives will guide this study:

To what extent do consumers patronise Amstel Malt in Aba metropolis?

Is advertisement an important strategy to maximize the sales performance of of Amstel Malt in Aba metropolis?

Does advertisement have an effect on brand switching behavior of Amstel Malt consumption in Aba metropolis?

What are the various benefits of advertising to brand switching behavior of Amstel Malt consumption in Aba metropolis?

What are the various challenges of advertising to brand switching behavior of Amstel Malt consumption in Aba metropolis?

1.5 RESEARCH HYPOTHESES

To determine the effectiveness of this study, the following research null hypotheses will be formulated to guide the study and it will be tested at 0.05% levels of significance.:

H01: The extent consumers patronise Amstel Malt in Aba metropolis is low.

H02: Advertisement is not an important strategy to maximize the sales performance of of Amstel Malt in Aba metropolis.

1.6 SIGNIFICANCE OF THE STUDY

The study will help firms understand the importance of advertising. It will also enable them structure their adverts and brands to make them more appealing in order to improve sales and lead to better performance. As this study gives a clear insight into how advertisement can brand switching behaviour, many firms will be encouraged into using adverts to market their products. When firms start making more sales and profits as a result of advertising, the economy of Nigeria will be boosted, as more income from tax will be accrued to the government of Nigeria. The findings and recommendations of this study will go a long way in helping firms to adopt good advertising strategies, and appealing brand designs to help get more consumers for their products and services.

Additionally, this study may be significant in adding on the existing literature on effects of advertising on consumer brand switching behaviour hence providing reference for future studies carried out on the same problem.

1.7 SCOPE OF THE STUDY

Broadly, this study focuses on determining the extent consumers patronise Amstel Malt in Aba metropolis, determining whether advertisement is an important strategy to maximize the sales performance of of Amstel Malt in Aba metropolis and determining whether advertisement has an effect on brand switching behavior of Amstel Malt consumption in Aba metropolis.

This study also focuses on ascertaining the various benefits of advertising to brand switching behavior of Amstel Malt consumption in Aba metropolis and finding out the various challenges of advertising to Amstel Malt consumption in Aba metropolis.

Selected residents of Aba metropolis will serve as the enrolled participants of this survey.

1.8 LIMITATIONS OF THE STUDY

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the absence of  literature on brand switching behaviour of consumers. Thus much time and organization was required in sourcing for the relevant materials, literature, or information and in the process of data collection. Also the study is limited in sample size and geography covering only Aba metropolis. Therefore findings of this study cannot be used for generalization thus creating a gap for further studies. 

Also encountered was time constraint as the researcher had to carry out this research in addition to attending lectures and other educational activities required of him.

1.9 DEFINITION OF TERMS

Advertisement: - it is the message expressing the qualities of a particular product to the target audience. It can also be defined as Aay form of non-personal communication through mass media that is paid for by an identified sponsor(s).

Product: 

This can represent anything a consumer acquires or might acquire to meet a perceived need. The need not necessarily need to be satisfactory. Some product might not satisfy their needs. 

Advertising: A process activity or program necessarily to prepare message get it to the intended market.

Consumers: Persons who buy goods and use it for services.

Brand Switching: Kumar & Chaarlas (2017) identified that Brand switching is the process in which consumer switches from the usage of one product to another product but of same category.