IMPACT OF ADVERTISING ON CONSUMER BUYING HABIT

IMPACT OF ADVERTISING ON CONSUMER BUYING HABIT

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

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 nation 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. Consciousness of good influences consumers purchase of that good. Other factors that influence one‘s taste and preference for a good are psychological and environmental. Taste and preference for a good change overtime. Thus, advertisements play a role in influencing taste and preference of consumers’ choice. (Sharma, 2009). 

Advertising is all about mass publicity of products. Advertising involves creating awareness of product’s uses and their benefits to consumers. By doing this, it makes a product to be available to those who want it and this satisfies the needs of the advertiser; increasing sales. According to Cohen, advertising is a business activity that employs creative techniques to design persuasive communication in mass media that promote ideas, goods, and services in a manner consistent with the achievement of the advertiser‘s objective, the delivery of consumer satisfaction and the development of social and economic welfare. (Cohen, 1988).

From Cohen’s definition, it can be found that advertising satisfies three objectives; to increase sales of the firms, to guarantee consumers a great deal of service and finally to ensure the social and economic welfare of society. Advertising can be done through various media such as; radio and television, billboards, magazines and newspapers and websites. (Cohen, 1988).

Other factors that influence ones taste and preference for a good are psychological and environmental. Taste and preference for a good change overtime. Thus, advertisements play a role in influencing taste and preference of consumers’ choice. Consumers are known to be rational with regard to their purchases, wanting to maximize their satisfaction when it comes to consumer goods (Sharma, 2009).