The effect of advertising on consumer purchasing intention case: east African bottling S.C. (Coca Cola Ethiopia)

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Date

2018-06

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Publisher

Addis Ababa University

Abstract

Today’s successful companies have one thing in common: they are strongly customer focused and heavily committed to marketing. These companies share a passion for understanding and satisfying customer needs in well-defined target markets. They motivate everyone in the organization to help build lasting customer relationships based on creating value. Customer relationships and value are especially important today since more frugal consumers are spending more carefully and reassessing their relationships with brands. In brand preference, advertising plays a crucial and enduring role. Nearly everyone in the modern world is influenced to some degree by advertising. Since so much money is being devoted to advertising, analyzing its effects remains vital for firms, especially for those forming part of the collusive oligopolistic market of soft beverages, where advertising helps in making difference in the market place. This research focused on the analysis of advertising in terms of its specific persuasive effort in influencing purchasing behavior. The persuasive effort is related to creation of favorable attitudes or reinforcing existing attitudes. This process of persuasion is closely linked to the concept of attitude and this study has explored the connection between persuasion and attitude, identifying possible responses that the receiver can give to advertising information. This paper analyses the degree of influence advertising has on consumers’ purchasing intention with particular reference to Coca- Cola advertisements. It is based on descriptive research or quantitative research. In this descriptive research cross tabulation with chi square analysis is used to understand the relationship between responses to advertising stimuli and attitude of the respondent. Well-structured Questionnaire was developed for a sample of 150 consumers. The study found out two types of responses to advertising stimuli, cognitive and emotional depicting that emotional responses to the advertisements are more important in determining consumers’ attitude towards the advertisements compared to the cognitive responses. Furthermore, the study has found that attitude towards the ads positively affects attitude towards the brand and attitude towards the brand positively and significantly affects purchase intention of consumers.

Description

A research submitted as partial fulfillment of The requirements for degree of master of Business administration

Keywords

Advertising, Attitude towards the brand, Purchase intention

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