COMPARATIVE ANALYSIS OF CONSUMER PERCEPTION OF ADVERTISED AND NON-ADVERTISED BRANDS IN ABIA STATE, NIGERIA

ABSTRACT

The study was carried out to examine the comparative analysis of consumer perception of advertised and non-advertised brands in Abia State, Nigeria. The objectives of the study were to examine the socio-economic characteristics of the respondents, compare respondent’s perception between advertised and non-advertised brands in the target market, determine the effects of socio-economic characteristics of respondents on the patronage of advertised and non-advertised brands in the target market; and make recommendation based on findings. The respondents were selected with a random technique from three senatorial zones of Abia State according to the different local government that represents them. Therefore 45 were selected from Umuahia to represent Abia Central, 45 respondents were selected from Isikwuato to represent Abia North and 45 respondents were selected from Aba to represent Abia South. Hence 135 respondents were selected in the research process. Primary source of data was employed in this study in which a structured questionnaire was distributed to respondents in order to solicit information for the study. The data were analyzed using descriptive statistics, such as frequencies, means, percentages and binary logit model. The mean age of the respondents was 14years. The minimum 35years, 7 months while the maximum is 60 years. They have spent a mean of 161/2 years in school, minimum of 6 years and maximum of 22years in school. The average household size was one person, with a minimum of 4 persons and a maximum of 9 persons. On the basis of their income, the mean income was N10, 000.00 monthly, while their minimum and maximum income was N102, 140.00 and N250, 000.00 respectively. The result also showed that gender, age, monthly income and household size were significant at 99 percent confidence level and was positively significant in influencing advertising. In comparing the consumers’ perception of advertised and non-advertised brands, the amount spent on each of these was used as proxies for the perception. This was borne out of the fact that consumers can only patronize what they perceive is of high quality and what they can afford to buy. With the finding of this study in mind, the following recommendations are given with the hope that it will help to improve advertising efficiency in the consumer perception of advertised and non-advertised brand. It is recommended that: Only quality brands should be advertised, this is because the respondents assume that advertised brands are of high quality and patronize them more. This will also influence consumers to be brand loyal customers. The purpose of advertising in creating awareness and influencing purchase decisions can be achieved through effective campaign aimed at a well selected target irrespective of the age group in a chosen market segment. Income of consumers should be enhanced because it has been known that increase in income could lead to increase in family expenditures on health, education etc. so if income of consumers is not enhanced there may not be any money/income readily available for the purchase of these advertised items.

TABLE OF CONTENT

Title page ﾿ i

Declaration ﾿

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of contents ﾿ vi

List of tables ﾿ vii

Abstract ﾿ ix

CHAPTER ONE

1.0       INTRODUCTION ﾿ 1

1.1 ﾿ Background of the Study ﾿ 1

1.2 ﾿ Statement of the Problem ﾿ 3

1.3 ﾿ Research Questions ﾿ 6

1.4 ﾿ Objectives of the Study ﾿ 7

1.5 ﾿ Research Hypothesis ﾿ 7

1.6 ﾿ Significance of the Study ﾿ 8

CHAPTER TWO

2.0     REVIEW OF RELATED LITERATURE ﾿ 9

2.1 ﾿ Meaning and Concepts of Advertising ﾿ 9

2.2 ﾿ Objective of Advertising ﾿ 12

2.3 ﾿ The Role of Advertising ﾿ 16

2.4 ﾿ Advertising Budgets and Appropriations ﾿ 16

2.5 ﾿ Evaluating Advertising Effectiveness ﾿ 22

CHAPTER THREE

3.0     RESEARCH METHODOLOGY ﾿ 25

3.1 ﾿ Area of Study ﾿ 25

3.2 ﾿ Sample and Sampling Technique ﾿ 26

3.3 ﾿ Sources of Data Collection ﾿ 26

3.4 ﾿ Method of Data Analysis ﾿ 26

3.5 ﾿ Model Specification ﾿ 26

CHAPTER FOUR

4.0       RESULT AND DISCUSSIONS ﾿ 29 ﾿

4.1 ﾿ Socio-economic characteristics of the respondents ﾿ 29

4.3 ﾿ Comparison between consumers’ perception between advertised and ﾿

non advertised brands in the study area. ﾿ 30

4.4 ﾿ Effect of socio-economic characteristics on the patronage of 

advertised brands in the study area ﾿ 31

CHAPTER FIVE

5.0      SUMMARY, CONCLUSION AND RECOMMENDATIONS ﾿ 35

5.1 ﾿ Summary ﾿ 35

5.2   Conclusion and Recommendations ﾿ 36

REFERENCES

LIST OF TABLES

Table 4.1: ﾿ The socio-economic profile of the respondents

Table 4.2: ﾿ The paired –Z differences of the perception (amount spent on the purchase) of advertised brands and non advertised brands Paired differences

.

 Table 4.3: ﾿ The maximum likelihood estimate of the effect of the socio-

economic characteristics on the patronage of advertised brands in the study area