Analyzing the Impact of Advertisement on Brand Awareness: A Report

This report examines the impact of advertising on brand awareness, brand loyalty, perceived quality, and purchase intention, using Bread Talk, a Singapore-based food and beverage company, as a case study. The study explores the relationship between advertising and customer behavior, brand equity, and competitive advantage. It reviews relevant literature on advertising's role in shaping consumer choices and brand preferences. The methodology includes research philosophy, approach, design, data collection methods, and sampling techniques. The report aims to identify factors influencing brand loyalty, determine advertising's impact on brand awareness, and assess how brand awareness contributes to competitive advantage. The findings and discussion analyze the effectiveness of advertising strategies and their implications for businesses seeking to enhance sales and maintain a competitive edge. The research utilizes a survey method for data analysis and interpretation.

Running head: IMPACT OF ADVERTISEMENT ON BRAND AWARENESS
IMPACT OF ADVERTISEMENT ON BRAND AWARENESS
Bread Talk (Singapore Based Food & Beverages Company)

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IMPACT OF ADVERTISEMENT ON BRAND AWARENESS
Table of Contents
Introduction....................................................................................................................................2
Advertising...................................................................................................................................3
Advertising and Customer Behavior............................................................................................3
Advertising and Brand Awareness/Preference............................................................................4
Research Aim...............................................................................................................................5
Research Objective......................................................................................................................6
Research Question........................................................................................................................6
Literature Review..........................................................................................................................6
Methodology.................................................................................................................................14
Research Philosophy..................................................................................................................14
Research Approach....................................................................................................................15
Research Design/Strategy..........................................................................................................15
Data Collection Method.............................................................................................................17
Sampling method.......................................................................................................................18
Accessibility Issues....................................................................................................................19
Data Analysis and Interpretation...............................................................................................20
Survey Method...........................................................................................................................20
Findings........................................................................................................................................33
Discussion.....................................................................................................................................35
Conclusion....................................................................................................................................37
References.....................................................................................................................................39
Appendix.......................................................................................................................................43

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Introduction
In recent years, the increasing customer consciousness is making the customers to buy their
favorable and familiar brands. Thus, if the business desires to defeat the competitors, they must
make their consumers forced to purchase their brands and products (Shapiro, 1999). Sharp ad
Macdonald (2000) states that though customers are willing and familiarize to buy the product,
the awareness for the brand is considered as a significant factor for influencing the decision to
purchase. When the customers desire to purchase a product and any brand name clicks in their
mind, it shows that the product has great brad awareness (Valette-Florence et al., 2011). The
consumers’ decision to purchase a product is influenced with a higher awareness for brand which
explains the reason for product with high brand awareness to have a high share in the market and
a better evaluation of the quality (Allen, et al., 1989). This perceived quality may aid the
customer to own a subjective opinion over the aggregate quality of product which makes the
product to hold differentiation as well as become a chosen brand in the mind of customers.
Besides, the business must develop a brand loyalty. Few research states that the expenses for
attracting a new customer is five times more than maintaining the customer loyalty (Allen, et al.,
1989).In this research paper, the company chosen was Bread talk Group which is Singapore
based Multinational beverage and food corporate whose headquarter is in Singapore. Thus, the
main purpose of this research involves:
 To discover the impact of brand loyalty, perceived quality and brand awareness over the
effect of purchase intention.
 The impact of perceived quality over the brand loyalty
 Whether the perceived quality as well as brand loyalty intercedes the relation between
purchase intention and brand awareness

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Advertising
Advertising is defined as a tool for mass communication for the purpose of marketing.
According to Ayanwale et al (2005), the tool for mass communication gives an opportunity for
communicating similar message to a huge customer at minimal cost instead of personal mode of
selling. As per Richards (2002), the advertising is persuasion process, socio-economic,
marketing process and communication process at same time. The view so Philip Kotler says that
advertising is a non-personal promotion and presentation of products and services of paid
Formby any known sponsor. The AMA (American Marketing Association) is having the same
views.
Brand Equity and Brand Awareness
Bendixen et al. (2004) states that all business aspires to get high level of loyalty from their
customers as keeping and retaining the present customers is considered to be highly valuable for
the organizations and is cheap comparative to the recruiting and attracting of new customers. The
buyers usually rely over their prior experience which they had with the product while choosing it
instead of buying any substitute of that (Avanwale, et al., 2005). For instance, many people
prefer to buy Nike shoes as compared to all other brands if any new range of their products are
available. In this scenario, the Nike establishes the preference of brand in the mind of the
customers (Kurtz et al., 2009). Vallette Florence et al (2011) cited another author Marc Globe
(2001) in their book showing that all good brands emotionally connect with their customers by
making engaged the customers through multifaceted sensory attitude and deep emotional
experience.

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Advertising and Customer Behavior
According to Ayanwale et al. (2005), advertisers make a lot of investment to advertise their
products and make their access to all potential buyers as well as influence their level of behavior,
attitudes and awareness of buying along with maintain their interest in the products (Baker,
1999). They also cited another author’s views in the same document that all advertisers must
collect the market data as well as study the behavior of customers to satisfy wants and needs of
the people who buy their products.
Advertising and Brand Awareness/Preference
The awareness and preference for brand can be observed as an attachment level which the buyer
has for a particular brand along with creation of loyalty for the brand that makes the customers
buy the goods repeatedly. In a research conducted by Malik et al (2013), he expressed that
advertisements are used for retaining the present consumers instead of acquiring new ones. Also
they think that present consumers are well inclined towards their brands and repeated
advertisements helps only to make stronger their preference and increase their awareness towards
them. Also, it reinforce their loyalty and attachment towards brand by portraying positive
experience, pride, strong imagery and satisfaction. According to Pand (2016), if the product
already has a preference for brand in the customer’s mind, it needs a simple reminder or
awareness through advertisements. However, if there is no preference for that brand in
customers’ mind, then advertisement may help in developing the awareness of brand among
them. The main mission of an advertiser is to reach out to the potential customer and impact their
level of buying behavior, attitudes and awareness (Bendixen et al., 2004). They incur a lot of
expense to keep the markets engaged and interested in their products. In order to get success in
their working, they must understand the factors that influence the behavior of customers

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(Bendixen, et al., 2004). The objectives of the advertisers are to collect enough information from
market data for creating accurate buyers profiles to identify the common symbols and group for
the communications. Estimation of sales is the initial point for profit planning or budgeting for
most of the organizations. Today, achieving and establishing of a powerful and strong brand is
considered as the priority for all organizations as it follows many advantages (Boone and Kurtz,
2009). A strong brand name provides opportunities for the company to set themselves in market.
It also helps in avoiding the organization from any kind of danger through competitive actions.
In this paper we will discuss how advertising impact in development of brand awareness which
leads to competitive advantage.
Research Aim
The aim of this study is to help the companies understand and learn the significance of
advertising. Also, it will help them to structure their brand and adverts to appeal the customers
for improved sales and maintain the competitive advantage. As this study will provide a clear
insight in how the advertisement may impact the brand awareness, many organizations will be
motivated to use the adverts for marketing their goods. When the companies will start taking the
advertorial mode to publicize their products, the Singapore Economy will be enhanced as more
revenue from the tax may get accrued to the government of Singapore (Pand and Gui, 2016).

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Research Objective
 The following are the main objectives of tis research:
 To identify the factors which motivate the brand loyalty in customers
 To identify the impact of advertising on Brand awareness
 To determine the impact of brand awareness on competitive advantage
Research Question
The following questions for research were formulated to attain the objectives associated with the
study:
 How advertisement helps in influencing the brand equity and brand awareness
 How brand awareness among customers helps in leading to the competitive advantage
 How it helps in the growth of company as well as brand
Literature Review
Brand commitment and advertisement is the significant form of communication which is
instantly required in the market that induces the customers to continue some process that makes
use of the electronic media or print. It is generally paid the form of the communication. (East,
2013). Evidently, it has been found that advertisement, especially which includes media that is
aligning to the mass which plays a crucial role for the companies to meet their long-term
objectives (Poh& Adam, 2007). According to the studies which were conducted by the Teixeira
in 2014 reveals that there are three components that are rapidly required for preparing the
advertisement that are persuasion, Ad and content attractiveness. There are so many mediums
that could be used intensively for advertisement. Generally, TV is the fastest means of
telecommunication medium that is being worn across the various boundaries. According to the
statistics that are being evaluated by the (Sonkusare, 2013) Social media is one of the active or

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concerned media where the marketers are playing the game of targeting their customers in order
to augment their profit. By targeting the customers they expect that their customers will directly
or indirectly ask their friend or families on social media by posting the links (Corcoran,
2009).The other effective tool for advertisement is the magazine and magazine impact the
decision making a power of the customers? Magazine assists in establishing a relationship
between the buyer and seller. The magazine bridges the gap between the sellers and the buyers
(Consterdine, 2009). Additionally, an outdoor advertisement is one of the intensive methods that
target the whole population of the country by designing the attractive poster or banners.
Basically, it is the written form of communication or the aesthetic picture that generally reveal
the whole story to the customers. The story explores that whether the product or service is
economically viable or not. It also reveals if the customers start using the particular product then
they can't switch to another one (Lichtenthal et al., 2006). Although, brand commitment is that
technique through which customer's valued their relationship with the brand. The advertisement
is the mass media that disseminates the information to the customers (Lacy, 2007). According to
the statistics that have been conducted by Moorman in 1992 reveals that it takes meticulous care
of its customers so that their interest of the customers are not harmed. Researchers have defined
that commitment is bifurcated into several categories that are effective commitment and
Continuance commitment (Bansal et al. 2004). The study of the Morgan & Hunt, 2014 revolves
around the deep analysis of affective commitment. Affective commitment consists of the desire
of the customers so as to maintain the anticipation of the value of any brand that is associated
with the product. The continuous commitment is derived from the calculation that is generally
cost based and the results come in commitment when the cost of switching is too high (Allen &
Meyer, 1990). Liking or disliking the advertisement somewhere adversely impact the consumer

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choice for the particular brand (Smith et al, 2002).The behavior of the customers towards the
brand is only influenced by the advertisement (Gorn, 1982).Some researchers such as Philips in
1997 critics that advertisement leaves the negative or futile effects on the customers or the
society. However, any advertisement that is created for any product becomes the crucial reason
for the customers to buy the product (Smit et al, 2006).The above-mentioned references show
that the advertisement has the bad as well as good effects on the brand image. The advertisement
is that tool which grabbers the attention of the customers towards the brand and also it’s conveys
the actual message about the quality of the product.
William Baker, J. Wesley Hutchinson, Danny Moore, and Prakash Nedungadi
(1986) ,"Brand Familiarity and Advertising: Effects on the Evoked Set and Brand
Preference", in NA - Advances in Consumer Research Volume 13, eds. Richard J. Lutz,
Provo, UT : Association for Consumer Research, Pages: 637-642.
As per the very known fact that brand choices, brand awareness and familiarity are interrelated.
The inter-relation of this fact doubtless to say reflects that awareness is increased with choice.
Needless to say that brand awareness plays casual role in the process of making choice. As per
Lavidge and Steiner, this choice process is implied by the authorative hierarchy of effective
advertising. The mentioned research has traversed upon the empirical and theoretical bases
regarding the proposition. Moving ahead in the paper, the researchers have brought in light
regarding the working definition of brand familiarity and has examined its validity. Further this
research paper has thrown insight into the concept of Brand familiarity and the evolution of the
same by defining the concept as ‘most rudimentary form of consumer knowledge’. In addition to
this, the research has also pointed out the notion of Brand Recall, the preference followed by
brand familiarity thereby exploring the two main processes by which the familiarity of any brand

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may with direct reference mediate choice behavior by way of brand preference formation. The
primary of the process mentioned is the exposure effect which being directly related to Zajonc’s
exposure hypothesis and second is the frequency effect proposed by Hasher and Zacks which is
derived directly from automatic frequency counting mechanism. The paper leads to the
conclusion that brand familiarity is albeit limited, viable and marketing tool for influencing
consumer decisions. Brand familiarity effects are highly context dependent is the fundamental
admonition to the conclusions. Lastly and dubious to say that brand familiarity to exert a robust
effect on the brand attitude of the consumer.
Alhaddad, A. A. (2015). The effect of advertising awareness on brand equity in social
media. International Journal of e-Education, e-Business, e-Management and e-
Learning, 5(2), 73.
A lot of attention of individuals as well as the companies which are interacting on the network
landscape has been drawn by social media. Consumers have been able to make a positive as well
as negative influence on brand equity when the social media has transformed the traditional
communication between those consumers and the brands. Hence, it is of paramount importance
for any company to atleast know as how to go about with the management of the company with
regards to social media seeking to build brand equity by constructing the positive image for any
brand and creating the awareness with respect to that brand. The current paper focuses on as how
a company could seize the time of using social media in order to create the brand equity thereby
exploring the challenges by attracting the those organizations venturing into social media and
thereby increasing the brand image and awareness. The main idea behind the research is to throw
light on advertising awareness on brand equity and its dimensions. The result of the research has
been that awareness of the advertisements has undoubtedly positive effects on brand image,

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equity and awareness. The brand image as well as the brand awareness without a pinch of doubt
has positive effect on brand equity. As also the awareness of the brand as well the brand image is
enhanced and created. Further, the results indicate awareness of advertisements. Therefore one
can consider advertising awareness as important and integral to a brand’s equity as any other
dimensions.
Nielsen, J. H., & Huber, J.The Effect of Brand Awareness on Intrusive Advertising.
One usually expects that any brand activity will in a way can frustrate a consumer. In a way the
concept of intrusive advertising causes some disruption to the brand and later the consumer
recognizes the brand. In the process when the customer identifies the brand which is offending,
or the consistent process the brand has to suffer. If brand awareness is not present, then the
exposure effects may dominate as well as there would be highly intrusive advertisement with
positive changes in evaluation. This research has two basic distinct sources of mere exposure,
affect and evaluation along with repeated ad exposures and they have a joint influence
altogether. The impact on all the advertising brands is revealed with the help of designing
experiments that took advantage of all boundary conditions. The results of the research would be
consistent in order to evaluate the conditions targeting the awareness. Finally, with regards the
theory of marketing evidence is provided for mere exposure as well as evaluative conditioning.
The advertisement can also create and awareness about the various attributes of the product that
will assist in creating the ability for liking or disliking the product. This ability therefore
generates the purchasing power or avoiding the brand. So far, the hypothesis that can be
concluded through the research is that: H1: Brand Commitment has the positive as well as vital
relationship with the advertisement. The statistics as well as the studies conduct that awareness

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of the brand act as the arbitrator for the customers. The customers can’t buy a product until and
unless the brand awareness is not created (Percy & Rossiter, 1987). All the studies which are
being analyzed suggest that without the Brand Awareness every advertisement is futile.
Eventually, it has been found that if there is proper advertisement of the brand then the desirable
or favorable outcomes can be gained from the product. The studies that have been done over the
couple of years evaluate that how capable a customers is in identifying the brand that falls under
various different conditions. According to Keller, 1993 also suggest that how much the customer
have the liking for the particular product and how easy the product name hit the minds of the
customers. These factors are considered effective as well as crucial for the advertisement.
Brand awareness is directly proportionate to the customer attitude for change in the brand of the
goods or services (Shabbir et al., 2010). Generally, brand awareness is the tool that determines
the customers’ ability to remember or recall the information about the product (Irshad&
Waseem, 2012).It supports the customers in making the purchase high where the competitive
market that exist (Radder&Haung, 2008).In order to make the advance usage of brand awareness
the company must incorporate various strategies that are mandatory to create the awareness of
the brand among various users and customers Esch et al.,, 2006). Awareness of the brand is
considered to be totally dependent onto the recall ability of the customers that are linked with the
brand. Brand awareness is broadly classified into two segments that is width and the depth, width
extensively express the outcomes when the customers are done with intension of the purchase.
This intension of the purchase is only completed when the brand name immediately hit the
customer’s mind and the depth talks about how the customers will recall or remember the brand
(Hoeffler& Keller, 2002). If the product has depth and width is well structured then at the same
time the brand have created the huge awareness among the customers or users. This will make