The Factors Of Advertisement On Consumer Behaviour Marketing Essay

The purpose of this study is to understand the factors of advertisement on consumer behaviour. This study can guide to help companies and organizations to improve their marketing strategies by understanding issues related to consumer based on their reason, feel, think and select between two options such as brand and brand image.

A company cannot make dream to be a well known brand until they invests in their promotional activities, for which consumer market have been dominating through advertisements (Hussainy et al, 2008).

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Other than that, this study can help advertiser to understand the issues related to consumer which influenced by environment psychology such as slogan and logo. In addition, this study on consumer behaviour also can make a reference of knowledge to marketers and advertisers towards issues on consumer behaviour while they doing marketing decisions or purchasing. It also can give consumers no restrictions on processing information about decisions making and marketing outcome. Advertising typically has some positive or negative content that can trigger affective reactions (Coulter, 1998).

In addition, the reason this study was carried out because of the important of advertisement for consumer knowledge. This is because research on advertisement is difficult to study in academic literature. It also was made to describe the trends in advertisement industry to understand the consumer behaviour issue. Consumer behaviour analysis is helpful for advertiser to understand the behaviour of consumer in buying different situations. According to traditional hierarchy-of-effects models, advertising affect of advertising exposure leads to brand cognition and cognition about the ad, which then leads to the attitude towards the ad and the brand until their purchase intent (Mendelson and Bolls, 2002).

As a promotional strategy, advertisement also can be tooling for control the consumer’s mind to take final purchase decision. It can be an important tool to reach consumer behaviour thinking. As advertiser’s primary mission is to reach potential customers and influence their awareness, attitudes and buying behaviour (Ayanwale et al, 2005 and Adelaar et al, 2003).

2.2 Literature Review

This study will analyze the factors of advertisement that influence consumer behavior such as brand, brand image, slogan and logo. It can be done by review the past research conducted in order to understand the relationship between advertisement and consumer behavior.

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The relationship between advertisement and consumer behavior can be explained by how people interact to purchase products or services that influencing by advertisement. For an example, people will purchase Big Mac at Mc Donald’s because the burger looks very delicious in advertising.

2.2.1 Consumer

Consumer is the last person in the use of products or services in social systems. Term of consumer can be defined as those individual who purchase for the purpose of individual or household consumption (Fitzsimmons, 2001). Consumer also means a person who buys goods and services for personal purposes and not for sale.

2.2.2 Consumer Behaviour

With the business environment changing, consumer behaviour also changed, it is therefore important for businesses and marketers to understand consumer behaviour. (Solomon et al, 2002:5) state that consumer behaviour it is the study of the processes that’s are involved when people select, make a purchase and use products, services or experiences in order to satisfy needs and wants.

Similarly, (Kotler, 2002) illustrates consumer behaviour that, it covers all the ground that is related to the selection of a product or service, buying and then consumption of the goods or services.

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Lars Perner also agrees with the Philip Kotler and Michael R. Solomon thinking about the consumer behaviour that it is the study of the individuals or the groups of the individuals when they think about selection of the product or service. Then it is the purchase and finally consumes, in order to satisfy needs and wishes (Perner, 2001).

2.2.3 Buying Decision Process

A buying decision process explaining the processes of customer will go through when they purchase the product. Many researchers have given their definition of buying decision model. Although, the model are different but there are common similarities in the model stages.

Although the descriptions of the consumer decision process vary across these models, five similar decision process stages occur in all these models (Mitchell and Boustani, 1993).

In buying decision process there are five basic steps which is need recognition, information search, evaluation of alternatives, purchase decision, and post purchase behaviour (Kotler and Armstrong, 2004).

These five stages-Problem/Need Recognition, Information Search, Alternative Evaluation, Purchase, and Post-Purchase/Outcomes- were first introduced by John Dewey in the early last century (John Dewey, 1910)

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Buying decision process is important to marketers because they must have the knowledge how the customers make their buying decision. Buying decision process involves:

i. Need/Problem Recognition – Marketers identifies customer problem or needs. This is because marketers must know the needs of the consumer and how these needs can be satisfied. For an example, if a person is thirst then water is desirable compare to food.

ii. Information Search – In this stage, consumer searches the information of product in order to find out what they feel is the best solution. The information can be come from family, neighborhood, friends, advertisement or trying the product.

iii. Alternative Evaluation – Consumers evaluate different products to meet their consumer’s needs. Basically, price, brand name and country of origin are the most criteria that consumers use to evaluate different products in marketplace. These three criteria often differ in their influence on consumer’s product selections and some dimensions will have a greater impact than others, which is defined as “salience” (Engel, Blackwell, and Miniard, 1991).

iv. Purchase Decision – In this stage, consumers will make decision to purchase the product. The final purchase decision can be disrupted by two factors: negative feedback from others costumers and level of motivation to comply or accept the feedback (Philip Kotler, Keller, Koshy and Jha, 2009).

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v. Post Purchase Behaviour – Stage whether the consumers satisfaction or dissatisfaction with the purchase will influence the consumer’s decision process for their similar purchase especially at the stages of need recognition and information search. If the consumer is not satisfied, he/she will be disappointed and it will bring negative impact on the product or services that they bought. Meanwhile, if consumer is satisfied, it will bring the positive impact on the products or services.

2.3 Evaluation of key studies

In this study, there are 4 important key studies to understand the factors of advertisement towards consumer behaviour such as brand, brand image, slogan and logo. These factors can be important aspect in order consumer to purchase products or services.

2.3.1 Brand

Brand is a something that represents a company or an image to the goods or services. It has a greater meaning even though many people had given an opinion that a brand is a logo, slogan and brand image. Basically, a brand is a symbol of specific company and important matter to differentiate products or services of a company.

Kotler and Amstrong (1999:260) provide the following definition of a brand as “A brand is a name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”.

The relationship between brand and customer is very important. This is because of it is not logo or brand name itself that differentiates a product or service but brand and customer often important for each others. A brand has to be thought of as a relationship with customer (Khermouch, 2001).

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A brand is a mechanism for achieving core competencies for firms, through differentiation motive. The attributes that differentiate a brand provide the customer with satisfaction and benefits for which they are willing to pay mechanism (Wood, 2000:666).

The brand name of the product is very important matter. This is because brand name can differentiate to others brand that represent others product or company. Brands have both functional and symbolic dimension (Del Rio, Vasquez and Iglesiaz, 2001).

Meanwhile, a big brand in advertisement industry can give a better image and product to the consumers. Big brand means a better image and better product (Del Rio, Vasquez and Iglesiaz, 2001).

2.3.2 Brand Image

There has been much debate on the relationship between brand and image (Tasci and Kozak, 2006), however one way in which to classify brand image is, being a form of consumer-based equity (Pike, 2004). In this sense, brand image can be defined as being “The perception of a brand in the minds of persons. The brand image is a mirror reflection (though perhaps inaccurate) of the brand personality or product being. It is what people believe about a brand- their thoughts, feelings, expectations” (American Marketing Association, 2008). These beliefs, or perceptions, are developed from the associations or attributes that come a consumer’s mind when contemplating a particular brand (Shrimp, 2007).

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A brand image is a set of associations, usually organized in some meaningful way. An association and an image both represent perceptions which may or may not reflect objective reality. A brand association is considered as anything that can be linked in memory (recall) to a brand. The association of a brand not only exists as such but has a level of strength. A link to a brand will be stronger when it is based on many experiences or exposures to communications (Aaker, 1991). Brand image is one of the first consumer brand perceptions that were identified in the marketing literature (Gardener and Levy, 1955).

Brand image can be conceptualized as a set of associations perceived by an individual. The associations perceived by an individual can functional attributes, events or with people. Although it is unlikely two people will have accurate same brand image, the image they may have same characteristics. Such features are said to constitute the image of a brand (De Chernatony, 2001).

“The brand image and brand positioning must be clear, focused and etched into the minds of the target prospects and consumers. (Shimp, 2003) states that the more indelible that brand, the more loyal your consumers will be. The companies are trying to create a strong image of their brand in the mind of the consumer so that they can gain an important place in the market. This can be done with the use of advertising through the media communicating to their target consumers.

In today’s increasing competitive marketplace, consumers often have to make a choice among a range of products or brands in the market that differ very little in its price or function. In such circumstances, their final decision depends on the image they associate with different brands. A brand image can be characterized in various ways by the consumers, such as being modern or old-fashioned, lively or dull, conventional or exotic. Brand image is one of the closest relationships with the brand. It is a major influence on purchasing decision through brand recognition and brand identity. The consumers must be able to identify a brand in order to purchase it. There are two types of brand awareness: recognition and recall. Recognition occurs at the point of purchase when the consumers recognize the brand on the shelf. Whereas recall, the consumers must imagine the brand on their own prior to purchase.

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Joseph Plummer (1985) indicated that there are three components to a brand image: product attributes, consumer benefits and brand personality. The dimensions of a brand personality are largely perceptual. They relate to images that have been created over time by the various aspects of marketing communications. It is possible to change the underlying perception of a brand with some advertising effort, but till the desired change is achieved, the brands should deliver to the expectations of the actual consumers (Yeshin, 1999).

2.3.3 Slogan

“Just Do It”: Nike’s rallying call to athletes everywhere is as familiar as the brand name itself. This example illustrates perfectly the vast power and might that can be wielded by the device known as the slogan. Together with brand name and logo, the slogan represents one of the three key elements of brand identity; that is, the elements by which the brand communicates with the world around it (Kohli, Suri, and Thakor,2002).

Slogan is a very important element to products or services. That is because, it makes users more easily drawn to what is in product or a service. It’s a statement about advertising of products or services for a specific company. Some slogans have a different meaning like Airasia’s Everyone Can Fly and Adidas’s Impossible is Nothing. There are many misleading slogans in nowadays. That is because, to be an effective slogan, marketers should establish simple and concise slogan for consumers.

Slogans are an important element in the brand’s identity and brand’s equity. In a market competition nowadays, almost all brands use slogans. This is because slogans can bridge the gap between consumers and marketers and can say something about the image of the product, thereby making it possible to communicate what the brand is about. In this manner, slogans provide a unique and significant contribution to a brand’s identity. This identity, in turn, enhances brand awareness and brand image through recognition, recall, and favourable associations for the brand. Thus, slogans can serve as “hooks” or “handles” in capturing the meaning of a brand and in relaying what makes the brand special (Dahlén and Rosengren, 2005, Keller, 1998). This research should be of use to business practitioners because slogan is one of factors in advertisement that influence consumer behaviour.

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2.3.4 Logo

A logo is a symbol and design that reflects a company, business organization, company and etc. It is a differentiate sign between company and organization. However, the logo predominantly used by commercial companies. It is suitable for any organization, company and business organization in order to serves as the symbol of the organization identity based on attractive and unique type of logo. Logo also can remind the consumer of their products or services. Other than that, logo is the identity of a business and differentiates business organizations with others.

A company should establish the brand before making a logo. This is because a logo can’t create a brand meanwhile a brand can create a logo. In addition, a logo is a representation for product or brand of a company. Branding would influence the market that perceives a company by create image and reputation. A logo is a way of tackle the market’s perception in order to show to consumers of what kind of a business that you are enter.

I believe that the logo is the cornerstone of the corporate image. That it builds a visual bridge between a company, its products and its service. If the design is unique and memorable it forms a concrete image in the consumers mind, setting the company apart from its competitors, yielding a separate and unique corporate identity (Rolf Ruiz, 1991).

2.4 Theoretical Framework

Independent Variables Dependent Variables

-Brand -Consumer behaviour

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-Brand image

-Slogan

-Logo