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The Influence of Advertising on Consumer Behaviour - Case Study of Nike

   

Added on  2020-01-23

53 Pages14918 Words2683 Views
Dissertation-The influence of advertising onconsumer behaviour- a casestudy of Nike, UK.

ACKNOWLEDGEMENTThe present dissertation is crucial reflection of the efforts being made by differentindividuals and thus it is my responsibility to pay humble gratitude for the time and efforts givenby my mentor in order to accomplish the research. I would also like to thank all mighty, friendsand relatives who gave me support and guidance whenever required while completing thedissertation. At last, I would like to thank my parents who supported me throughout my study sothat best results can be attained.

Abstract In the present study it assesses that at the time of marketing the product, advertising isconsidered as crucial because of high competition in market that also offers similar product orservices. However, it intends to encourage short term consumer behaviour as well as spreadingawareness of the brand and influencing consumers attitude. In order to develop a goodadvertisement, different modes of communication are used. For instance, use of differentchannels such as television, radios, internet, newspapers, billboard and banners. Such mode ofcommunication are considered as the best way of reaching mass audience to influence buyingbehaviour of clients. Thus, it is the best way of advertising the products or services used byfirms.However, it has also been evaluated that marketing team to consider different culturalfactors so that taste and preference of consumers can be identified in relation to enhance thebusiness performance. Nike should adopt effective advertising strategies in relation to influenceconsumer buying behaviour and thus enhance sales and profitability. Further, it can be identifiedthat company focuses upon building brand image and trust among consumers so that it couldenhance sales and profitability. However, firm also needs to provide quality assurance in order tomake sure that whatever goes to the advertisements coincides with the quality of the products.

Table of ContentsCHAPTER 1: INTRODUCTION....................................................................................................11.1 Title...................................................................................................................................11.2 Overview of study............................................................................................................11.3 Aims and objectives.........................................................................................................31.4 Research questions...........................................................................................................41.5 Relevance of study...........................................................................................................41.6 Framework and analysis...................................................................................................41.7 Dissertation structure........................................................................................................5CHAPTER 2: LITERATURE REVIEW.........................................................................................72.1 Introduction......................................................................................................................72.2 Key factors affecting consumer behaviour.......................................................................72.3 Determining the link between advertising and consumer behaviour.............................102.4 Recommend ways through to develop better advertisement strategies for influencingconsumer behaviour..............................................................................................................12CHAPTER 3: RESEARCH METHODOLOGY...........................................................................143.1 Introduction....................................................................................................................143.2 Research philosophy.......................................................................................................143.3 Research approach..........................................................................................................143.4 Research design..............................................................................................................153.5 Data collection................................................................................................................153.6 Sampling.........................................................................................................................163.7 Data analysis...................................................................................................................163.8 Research limitations.......................................................................................................173.9 Accessibility issues.........................................................................................................183.10 Ethical consideration....................................................................................................18CHPATER 4: DATA ANALYSIS................................................................................................194.1 Introduction ...................................................................................................................194.2 Data analysis- Questionnaire .........................................................................................19CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................33

5.1 Introduction....................................................................................................................335.2 Conclusion......................................................................................................................335.3 Recommendation............................................................................................................34REFLECTIVE................................................................................................................................36REFERENCES..............................................................................................................................37APPENDIX....................................................................................................................................40Consent form..................................................................................................................................42Participant Information Form........................................................................................................44Section A: The Research Project....................................................................................44Section B: Your Participation in the Research Project...................................................45

CHAPTER 1: INTRODUCTION1.1 Title“To determine the influence of advertising on consumer behaviour”- a case study onNike, UK. 1.2 Overview of studyIn the current era of globalisation, advertisement plays a crucial role in the growth andsuccess of firm. Advertisement is considered as the mode of promoting the product to thepotential consumers. However, it helps in describing the product's quality and expected resultsafter purchasing the products by consumers. Hence, it is therefore, considered as the big poolused buy firms to sell their products (Solomon, 2014). At the time of marketing the product,advertising is considered as crucial because of high competition in market that also offers similarproduct or services. However, it intends to encourage short term consumer behaviour as well asspreading awareness of the brand and influencing consumers attitude. In order to develop a goodadvertisement, different modes of communication are used. For instance, use of differentchannels such as television, radios, internet, newspapers, billboard and banners. Such mode ofcommunication are considered as the best way of reaching mass audience to influence buyingbehaviour of clients. Thus, it is the best way of advertising the products or services used by firms(Solomon, Russell-Bennett and Previte, 2012).Further, it is essential for businesses to implement effective advertising strategy so thatthey can survive their product for long run in market. Thus, it helps firm to establish brandloyalty among consumers and thus reach potential consumers over time. In the current era, itresults into rising of so many similar products by different firms which leads to a higher supplyof product than its demand (Smith, 2014). Therefore, in such type of situation, advertising theproduct is inevitable and failure to do so affects the firm which leads to low profits or minimumsale. Here, advertisement is considered as a pillar to enhance sales and profitability of firm inmarket. Through such way firm persuades a consumer to make crucial decisions regardingwhether to purchase the product or not. Advertisement is considered as the tool of promotion andmaintaining public relation (Gunter and Furnham, 2014). The present study aims to investigate how advertisement influences consumer behaviourtowards obtaining right product in market. Research is undertaken focusing upon Nike Company1

UK. It is one of the major sports brands in the world. Business aims to influence consumerbehaviour by offering them quality products or services. Nike is a renowned brand for designing,development, manufacturing and marketing of footwear, apparel and other sport products. Nikeadvertises their products on television, newspapers and internet influencing buyers to makepurchase decision (Schiffman and et. al., 2013). Firm also maximizes upon any opportunitiesarise as well as other sources regarding launch of new products in market. Furthermore, companyhas greatly contributed towards their consumer proposition and helps in winning over differentmarket players. Research also aims at identifying the major elements influencing buyingbehaviour of consumers. It involves different elements based upon personal attitudes i.e. age,family, personality, social status, cultural belief, motivation etc. Further, study also aims todetermine the connection between advertising and consumer behaviour of Nike. However,advertising using visual images provides consumers a sense of need for given product and thusinfluences buyers to make purchase decision (Foxall, 2014). At the end, study aims torecommend the strategies that Nike could employ to improve the mode of advertising thatinfluences consumer behaviour.Inthemoderndays,advertisementplaysamajor rolein thegrowth ofthecompany.Itisamodeofpromoting aproductto thepotentialconsumers. Itdescribesaproduct'squalityandthe expectedoutcomesafter buyingitto consumers.Itis,therefore, abigtoolused bycompanies toselltheir commodities.Inmarketing aproduct,advertisingiscrucialdueto highcompetition with other similaritems, which offer thesametasteand service.Itintendstomotivateshort-term consumer behaviour as wellas spreading awarenessofabrand andinfluencingconsumer’s attitude.Inachieving agood advertisement,variousmodesofcommunicationareused. For example, useofmassmedia television and radios,internet,newspapers, billboard, and banners. Thesemodesofcommunication arepreferredfor reachingthemassaudience atthesametime. They have,on theotherhand, becomethemosteffectivewaysofadvertising productsused by mostof thecompanies.Survivalofproductin themarketrequiresaproper advertising strategybyacompany.A firmshould establish itsconsumers;thus, coming upwith appropriatemethodstoreach outto those clients.Ithasresultedfrom therisingofsomanysimilar productsbydifferentcompanies leadingtoahigher supply ofaproduct thanademand (Shimp andAndrews, 2013). Insucha situation,advertising aproductisinevitableandfailuretowhich2

a company may have minimal saleleading to lowprofitsor evenmaking agreatloss.Advertisingisthusapillar togood sales (Kulbaev and et al. 2014, p438).Itisonewaythatacompanypersuadesaconsumertomake decisionsaboutwhether tobuy aproductornot.Itthusa toolusedfor promotion andinpublic relation throughmedia(Ayanwale, Alimi andAyanbimipe,2005).It,therefore,enlightensa consumer moreaboutaproductfromcompany; thus, bringingoutthe aspectofproducts comparison.Theresearchwillbe aiming atinvestigatinghowadvertisementinfluencesconsumerstowardsacquiringaproducton the market. Theresearchwillbelooking attheNikeCompany in theUnited Kingdom asthecasestudy. NikeCompany isone themajor brandsin theworld. They influenced aconsumer’s behaviourthroughouttheworld.Thebrandisrenowned for designing, development, manufacturing, and marketingfootwears, apparel,andother sporting gears. Nike Company hascontracted effectiveadvertisementstrategiesandhasastrong brandimage.Nike Companyadvertisestheir apparelontelevision,internet,andnewspapers. They alsomaximize onany opportunities whenthey arise as well asonother sourcesregarding thelaunch of new products. Theyembark onmodification ofexisting products whichcomesalong withsomenew offersand discounts.Ontheotherhand,thecompany hascontributed greatlytoward their customerproposition;thus, winningover themarketplayers. Firstly, theresearchwillbeaimingatidentifying themajorelementsaffectingthe behaviouroftheconsumers. Theelementswillinclude thepersonal attitudebasedonage, personality,family, socialstatus, culturalbeliefs,motivation, perception, roles, and referencegroups. Theresearch,on theotherhand, willbetrying todeterminelinksbetweenadvertisingand consumers behaviourofNike.Advertisingin visualimagesgivestheconsumersasenseof needfor agivenproduct.Itbringsout thelink betweenadvertsand consumersdecisionstoacquireaproduct.Attheendoftheresearch,itwill beinaposition torecommend thestrategies Nike canemployto enhanceitsmode advertising thatwouldinfluencetheconsumers behaviours.1.3 Aims and objectivesAim of the research is “To determine the impact of advertising on consumer behaviour”-a case study on Nike, UK. Following are the objectives that will be developed-To identify the key factors affecting consumer behaviour.To determine the link between advertising and consumer behaviour of Nike.3

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