Abstract

This study investigates The Impact of Advertisement on Consumer Buying Behaviour in European Driving School of the South West Region of Cameroon. The main problem faced by European Driving School is stiff competition. The research was carried out with four specific objectives: To establish the relationship between advertisement expenditure and sales, to examine the impact of advertisement on consumer preference, to determine the relationship between advertisement channels and consumer buying behaviour and to propose ways on how to minimize poor advertising policies so as to enhance sales. To achieve this, primary data was gotten from a sample of former and current students’ while secondary data on expenditure and student enrolment was extracted from daily ledgers of the three branches of European Driving School found in the South West Regional towns of Mutengene, Limbe and Buea. The survey design method was employed to extract and analyze primary data. A total of 130 questionnaires were served and 113 respondents completed and returned the questionnaires giving a percentage of 86.9%. Both descriptive and inferential statistics were used to analyze the data. The results reveal that the Buea branch responded to adverts more than the Mutengene and Limbe branches and their responses correlated significantly with the input on advertisement. With respect to the relationship between advertisement and consumer buying behaviour, findings reveal that advertisement to a large extent impacts on consumer buying behaviour. Furthermore, advertisement channels impact on consumer buying behaviour differently and the face-to-face channel by marketers proved to be the best medium to advertise European Driving School products. Based on the findings, the following recommendations were made: first, the management of European Driving School should allocate more funds to advertisement especially in Buea. Second, enterprises should shift from building brand through advertisement to building brand through performance and integrated communication.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The essence of any business entity is to produce goods or services for sale in order to make profit. To remain in business, an organization must generate enough sales from its products to cover operating costs and make reasonable profits. The marketing strategies also known as the Marketing Mix are made up of the traditional 4Ps (Product, Price, Place and Promotion). The emergence of service businesses has led to the introduction of three other strategies:  Personnel, Physical Evidence and Process Management. It is therefore important for businesses to create a marketing strategy that inculcates a combination of tactics in order to realize sales, profits and business growth.

Advertisement is a means of communicating to convince an audience in taking purchase decision about a product or service and delivering information to viewers. Among all the marketing weapons, advertising has a leading impact on viewers’ minds (Katke, 2007).  It is a component of the Promotional Mix used to create awareness about products in European Driving School Cameroon and South West Region in particular. Marketers thus, use advertisement for communication purposes.  Advertisement dates back to the ancient times. During this period, different societies used diverse types of methods for the promotion of their products and services. However, these advertisements were limited to particular areas. In modern times, advertisement has become an important way to promote products and services. No company can become a market leader unless they invest in promotion (Hussainy et al, 2008).

According to Jetkins (2000), advertising is a practical affair which differs from marketing; marketing drives products and services to the customers while advertising drives customers to the product or services. Patley (2004) states, ‘advertising is promotion of goods or services and its goal is drawing attention of people and showing favourable light to them.’

The selection of an advertisement strategy is challenging due to the existence of various types of products in the market. The target market varies with regards to age, levels of education of consumers and income. Thus, it is necessary for marketers to select advertisement strategies taking into considerations the target market. This involves analysis of consumer behaviour according to ages, level of education and income for the successful implementation of a strategy. Consumer Behaviour is a social science, which seeks to understand, predict and explain the behaviour of a buyer (Tyagi, 2004:5).

The major aim of advertising is to influence the buying behaviour of consumers. Opinions about a brand can change or be strengthened frequently by consumers’ memories. Memories about a brand consist of elements which are related to the brand name in the consumers’ mind. Brand recognition influences consideration, evaluation and finally purchases (Romaniuk &Sharp, 2004). Most companies do analysis of consumer behaviour to understanding how they make different purchase decisions. Advertising leads to brand cognition and cognition about the ad, which then leads to attitudes towards the ad and the brand (Mendelson & Bolls, 2002).

Given that the market offers several products, most companies make similar functional claims.  So it has become extremely difficult for them to differentiate their products based on functional attributes. Differentiations based on functional attributes shown in advertisements are never long lasting as competitors end up copying (Hussainy et al, 2008). Therefore, the marketers give the concept of brand image. By introducing the character of a “caring mother” in ads through these marketers, for example, emotions in the minds of consumers are created (Jalees, 2006). This way, consumers are more likely to associate with ads of these brands, which have emotional values and messages.

In order to analyze the effect of advertisement on consumer buying behaviour, the researcher has selected Fako Division of the South West Region of Cameroon to conduct the study.

1.2 Statement of the Problem

Advertisement is one of the highest components of marketing expenditure for European Driving School. The major problem faced by European Driving School is stiff competition in South West Region of Cameroon. In order to respond to this stiff competition the marketing department of European Driving School is expected to draw up an appropriate budget for advertisement and media which give expected results which is equally problematic.  It is also vital to know the art of advertisement, how advertisement influences the perception of consumers and changes their point of view. There are a number of types of adverts media which consumers and potential consumers of European Driving School are exposed to daily which include the radio, television, newspapers and magazines, billboards, websites, etc. The extent to which these different medium influenced consumer buying behaviour is not known by the management of European Driving School. This research basically seeks to identify the level of impact of adverts on the consumer’s decision to buy or not. In order to stimulate and elicit positive response from the target audience, effective market research was carried out on consumer buying behaviour to gather vital information concerning the issue.

The study examines how advertisement affects the behaviour of consumers and how consumers can be attracted through advertisement. It further considers the impact of advertisement on the brand, how and when organizations should implement the strategy to uplift the brand, whether advertisements play any role in developing and sustaining the brand effect on consumer behaviour in European Driving School. It is against this background that this research is of importance and is therefore designed to provide answers to the following research questions.

1.3 Research Questions

1. What is the relationship between advertisement expenditure and consumer buying behaviour?
2. To what extent does advertisement influence brand preference of consumers?
3. To what extent does an advertisement channels influence consumer buying behaviour?

1.4 Objectives of the Study

1.4.1 Main Objective

The main objective of this study is to assess the impact of advertisement on consumer perception and brand choice.

1.4.2 Specific Objectives

1. To establish the relationship between advertisement expenditure and sales in European Driving School. (Students enrolment is use as a proxy to capture sales in European Driving School).
2. To examine the impact of advertisement on consumer preference in European Driving School South West Region.
3. To determine the relationship between advertisement channels and consumer buying behaviour in European Driving School, South West Region.
4. To provide recommendations on the way forward to reduce the negative effect of poor advertising policies in European Driving School.