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THE INFLUENCE OF ADVERTISEMENT ON THE SUCCESS OF OIL
RETAILING INDUSTRY IN TANZANIA:
A CASE STUDY OF MOGAS TANZANIA LIMITED
By
Irene Kilahama
A Dissertation Submitted in Partial Fulfilment of the
Requirements for Award of the Degree of Master of Business Administration-
Corporate Management (MBA-CM) of Mzumbe University
DECEMBER, 2020
i
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for
acceptance by the Mzumbe University, a research report entitled “The Influence of
Advertisement on the Success of Oil Retailing Industry in Tanzania: A Case
Study of MOGAS Tanzania Limited” in partial fulfillment of the requirement for
the award of Master’s Degree of Business Administration in Corporate Management
of Mzumbe University.
_______________
Major Supervisor
________________
Internal Examiner
________________
External Examiner
Accepted for the Board of MUDCC
________________________________________________
PRINCIPAL, DAR ES SALAAM CAMPUS COLLEGE
ii
DECLARATION
AND
COPYRIGHT
I, Irene Kilahama declare that this research report is my own original work and that
it has not been presented and will not be presented to any other university for a
similar or any other degree award.
Signature ___________________
Date: _______________________
©
This research report is a copyright material protected under the Berne Convention,
the Copyright Act 1999 and other international and national enactments, in that
behalf, on intellectual property. It cannot be reproduced by any means in full or in
part, except for short extracts in fair dealings, for research or private study, critical
scholarly review or discourse with an acknowledgement, without the written
permission of Mzumbe University, on behalf of the author
iii
ACKNOWLEDGEMENT
I am greatly thankful to those who participated in the accomplishment of this study.
It is not possible to mention by names all those who took part in the success of this
study, it is therefore suffices to express my heartfelt thanks to all, who by any means
contributed to the accomplishment of this dissertation. Nevertheless, I would like to
mention few.
First, I would like to express my gratitude and thanks to God. Second, I have great
honor to thank my supervisor Dr. Omary Swalehe for his support and guidance to the
accomplishment of this study. Last but not least, I would like to thank the Head of
Marketing department of Mogas Tanzania Limited for his cooperation during the
time of data collections.
iv
DEDICATION
This dissertation devotedly dedicated my beloved parents Mr. and Mrs. Kilahama
and my family at large for their constant love, patience, moral and material support.
v
LIST OF ABBREVIATIONS
MOGAS - Maestro Oil & Gas Solutions
SPSS - Statistical Package for Social Sciences
vi
ABSTRACT
The study was set to explore the influence of advertisement on the success of oil
retailing industry in Tanzania. The research study aimed at answering the four
specific objectives including; establishing the forms and types of advertising
promotion adopted by MOGAS Tanzania limited, examining the extent in which
advertisement relates with the sales performance at MOGAS Tanzania limited,
examining the extent in which advertisement relates with the consumer behavior at
MOGAS Tanzania limited and examining the extent in which advertisement relates
with promotion of the brand of MOGAS Tanzania limited.
The researcher used well-prepared structured questionnaires and interview data
collection methods to obtain findings of the study. Data were collected and analyzed
by descriptive analysis and correlation analysis technique while considering 80
respondents as a sample size.
The study findings revealed that the direction relationship among the identified
variables “increases the revenue, leads to more sales volume quickly, builds long
term profitability and strengthen relationship with customers” were positive
correlated in representing the relationship between advertisement and sales
performance. It was also revealed that the direction of the relationship among the
identified variables “reinforces consumers’ decisions, increase of customers
satisfaction, reinforces consumers’ attitude and enhance consumers’ awareness” were
positive correlated implying that these variables tend to effect together in
representing the magnitude of consumers’ behavior. Therefore the magnitude or
strength of the association/relationship between advertisement and consumers’
behavior was found to be absolute strong. The study findings further revealed that
there is a strong relationship between advertisement and the promotion of the brand.
The researcher suggests that the management of MOGAS Tanzania limited should
use other forms of adverting like sponsoring events and use of mobile phone
advertising. This will increase awareness about the various products offered by the
given company.
vii
TABLE OF CONTENTS
CERTIFICATION ........................................................................................................ i
DECLARATION AND COPYRIGHT ........................................................................ ii
ACKNOWLEDGEMENT .......................................................................................... iii
DEDICATION ............................................................................................................ iv
LIST OF ABBREVIATIONS ...................................................................................... v
ABSTRACT ................................................................................................................ vi
TABLE OF CONTENTS ........................................................................................... vii
LIST OF FIGURES .................................................................................................... xi
CHAPTER ONE ........................................................................................................ 1
INTRODUCTION AND BACKGROUND TO THE STUDY ............................... 1
1.1 Introduction ...................................................................................................... 1
1.2 Background of the study .................................................................................. 1
1.3 Statement of the problem ................................................................................. 4
1.4 Objective of the study ...................................................................................... 6
1.4.1 General Objective ............................................................................................. 6
1.4.2 Specific objectives ............................................................................................ 6
1.5 Research questions ........................................................................................... 6
1.6 Significance of the study .................................................................................. 7
1.7 Scope and delimitation of the study ................................................................. 7
1.8 Limitation of the study ..................................................................................... 7
1.9 Organization of the dissertation ....................................................................... 8
CHAPTER TWO ....................................................................................................... 9
LITERATURE REVIEW ......................................................................................... 9
2.1 Introduction ...................................................................................................... 9
2.1.1 Definition of key terms ................................................................................... 9
2.2 Theoretical review.......................................................................................... 10
2.2.1 Theories and models guiding the study ......................................................... 10
2.2.3 Advertisement in relation to consumer attitude and behaviors ...................... 23
viii
2.3 Empirical review ............................................................................................ 24
2.4 Conceptual framework ................................................................................... 27
2.5 Research Gap ................................................................................................. 29
CHAPTER THREE ................................................................................................. 31
RESEARCH METHODOLOGY ........................................................................... 31
3.1 Introduction .................................................................................................... 31
3.2 Area of study .................................................................................................. 31
3.2.1 Map of the study area ..................................................................................... 32
3.3 Research design ............................................................................................. 33
3.5 Population of the Study .................................................................................. 34
3.6 Sampling unit ................................................................................................. 34
3.7 Sampling frame .............................................................................................. 34
3.8 Sample size of the study ................................................................................ 34
3.9 Sampling techniques and procedures ............................................................. 35
3.9.1 Sampling Techniques ..................................................................................... 35
3.9.2 Non-probability sampling technique .............................................................. 35
3.9.2.1 Purposive sampling technique ....................................................................... 36
3.10 Sources of data ............................................................................................... 36
3.10.1 Primary data sources ...................................................................................... 36
3.11 Data collection methods ................................................................................. 36
3.11.1 Questionnaire ................................................................................................. 36
3.11.2 Interview ........................................................................................................ 37
3.12 Reliability and validity of data ....................................................................... 37
3.12.1 Reliability ....................................................................................................... 37
3.12.2 Validity .......................................................................................................... 37
3.13 Analysis and management of data ................................................................. 38
3.13.1 Data management ........................................................................................... 38
3.13.2 Data analysis .................................................................................................. 38
3.13.3 Data analysis techniques ................................................................................ 38
3.13.4 Qualitative data analysis ................................................................................ 39
3.14 Ethical considerations .................................................................................... 39
ix
CHAPTER FOUR .................................................................................................... 40
FINDINGS PRESENTATION ............................................................................... 40
4.1 Introduction .................................................................................................... 40
4.2 Demographic characteristics of respondents.................................................. 40
4.2.1 Gender status of respondents ......................................................................... 40
4.2.2 Age of respondents ........................................................................................ 41
4.2.3 Working experience of the respondents .......................................................... 42
CHAPTER FIVE ..................................................................................................... 43
5.1 Introduction .......................................................................................................... 43
5.2 Response on the forms of advertising promotion adopted by MOGAS ........ 43
5.3 The extent to which advertisement relates with the sales performance a ...... 44
5.4 The extent to which advertisement relates with consumers’ behavior ......... 49
CHAPTER SIX ........................................................................................................ 58
SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................ 58
6.1 Introduction .................................................................................................... 58
6.2 Summary of the findings based on the research questions ............................ 58
6.2.1 Summary of the findings based extent in which advertisement ................... 58
6.2.3 Summary of the findings based on the extent in which ................................ 59
6.3 Conclusion of the study ................................................................................. 59
6.4 Recommendations of the study ...................................................................... 60
6.4.1 Recommendations to the management of MOGAS Tanzania limited ........... 60
6.4.2 Recommendation for policy makers .............................................................. 61
6.4.3 Recommendations for further research .......................................................... 61
REFERENCES .......................................................................................................... 63
APPENDICES ........................................................................................................... 73
x
LIST OF TABLE
Table 4.1 Descriptive statistics .................................................................................. 45
Table 4.3 Descriptive statistics .................................................................................. 50
Table 4.5 Descriptive statistics .............................................................................. 54
Table 4.6 Correlations ............................................................................................ 55
xi
LIST OF FIGURES
Figure 2.1 Conceptual framework ................................................................................... 29
Figure 3.1 Map of the study area ..................................................................................... 32
Figure 4.1: Gender status of the respondents ................................................................... 41
Figure 4.2: Age of the respondents .................................................................................. 42
Figure 4.3 Working experiences of the respondents ........................................................ 42
Figure 4.4 Forms of advertising promotion adopted by MOGAS Tanzania limited ....... 44
1
CHAPTER ONE
INTRODUCTION AND BACKGROUND TO THE STUDY
1.1 Introduction
This chapter is the introductory part of the study, which provides the study general
background, a problem, statement, study objectives, research questions, significance
of the study, scope and delimitation of the study and organization of the research
report.
1.2 Background of the study
Kotler and Armstrong (2010) express, advertising as any paid type of non-individual
introduction and advancement of thoughts, merchandise, or administrations by a
distinguished support. Advertising is a significant segment of coordinated market
correspondence and it is viewed as the most noticeable and costly movement. It is
additionally viewed as among extraordinary customary limited time blend systems,
which have been built up by numerous organizations these days (Kim et al., 2018).
Advertisement refers to all the activities involved in presenting to a group, a non-
personal oral or visual, openly sponsored message regarding a product, service idea
or organization is disseminated through one or more media and is paid for by an
identified sponsor. Advertising consists of all the activities involved in presenting to
an audience, a non-personal, sponsor identified paid for message about a product or
organization. (Stanton, et., al., 1994). ‘Advertising is any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified sponsor
(Kotler, 2006).
Andrews and Shimp (2017) express an advertisement as an announcement to the
public of product, service or idea through a medium to which the public has access.
The medium may be print (such as newspapers, banner and hoardings), electronics
(radio, television, cable phone), or any other. An advertisement is usually paid for by
an advertiser at fixed rate or negotiated with the media. It is a form of persuasive
2
communication with the public. The communication is usually one sided, in one
direction from the advertiser and to the public.
Advertising is the most visible marketing tools, which seeks to transmit an effective
message from the marketer to a group of individuals. The marketer pays for
sponsoring the advertising, unlike salesmanship, which interacts with a buyer face to
face, is non-personal. It is directed at a mass audience; and not an individual, as in
personal selling (Neupane, 2019).
Advertisement has direct effect on the brains of the customer to expend more
prominent segment of the item and fast utilization. Advertisement additionally
expands the gainfulness of the association. Advertisement is useful in both short run
and since quite a while ago run organizations in spite of the fact that in since a long
time ago run it is generally significant; it expands the estimation of the item and
company (Zia & Shahzad, 2015).
The most disturbing task that faces business officials is making choice on sales. This
is rooted into the fact that it is almost impossible to predict clearly and with
assurance the needs of clients and these are termed as factors that cannot be
controlled since they exist outside the organization. (Ayanwale, Alimi and
Ayanbimipe, 2005). It is of paramount importance that companies participate in
events that will influence the clients to buy their items given the importance of sales
to business and the relationship between clients and sales, This is the place
advertising is pertinent. Advancement of blend which is one of the 4ps in the
marketing mix i.e. product, price, place and promotion has advertisement as its
subset.. In most cases advertising leads to awareness about products and assists in
conditioning the brain of the customer in making a choice to buy an item (Agbeja,
Adelakun, &Akinyemi, 2015).
Concentration on ad has ben rising on a daily basis with a lot of money being spent
on the promotion sector thus bringing to companies multiple merits. Furthermore, it
is a "consequence of the essential need" for any endeavor, concentrated on a business
3
accomplishment, and it is ending up being progressively exorbitant. A clear example
is Finland whereby the money spent on advertising was 1313, 1 million euro in 2012
and 1206,7 million euro in 2013 (Finnish Advertising Council, TNS Gallup, Ad
Intelligence 2014).
However, it is arguable that if mass correspondence had not been discovered,
advertising would not have been so broad as it is. The most contributing is
typography coupled with the spread of the art of typography in the mid 19th century
whereby a photograph has filled in the place of the plugged thing (Presbrey, 2009).
Kanso and Nelson (2007) however provide that in the 20th century bigger progress
was made in the promotion endeavors making the century termed as “time of
advertising” with unprecedented progress made in the advertisement field, it became
popular and with the constant increase in the strategies such as electronic radio,
multicolor printing, TV, PCs, and Internet. The onset of globalization; it has become
of interest for the researchers to look into the effect of advertising including the way
a client conducts him/herself as a result of advertising (Kanso & Nelson, 2007).
Kotler (1988) remarked that advertising assists with expanding the potential
consumers' responses towards an association and its contribution. The authors draw
emphasis on this that this is accomplished through data provision that aims at
changing wants, and motivating the clients towards a particular association’s offer.
This is regarded as some as a strategy to increase faithfulness to brand among clients
as well as acquiring clients from competitors (Agrawal, 1996). Morden (1991)
contended that advertisement is used to develop basic interest on the item in the
client’s brain and develop awareness about it. Yan (2004) came up with the findings
that 70% of the Chinese saw Coca-Cola as a huge brand due to the extensive
promotion that they had experience. On the other hand, various investigators have
pointed out that in order to retain clients, advertising is one the key strategies (Ha,
Janda, John & Muthay, 2011). Thus, it is an intention of advertising to help the buyer
make an educated choice based on awareness about the item and available data.
Advertising is therefore important in this context when it relies on the ability to
influence the clients to buy and repurchase and thus creating commitment to the
4
brand. Many companies spend a lot of assets for advertising every year. Kanso and
Nelson (2007) provide us with the data that in 1997, $40.12 billion was spent on
advertising and it further increased in 2006 to $602 billion. As However, Tai (2007)
denotes that a top to bottom research on advertising was not done by a number of
these companies before selecting advertising strategies making it a hindrance for the
organization to accomplish their advertising goals. Before embarking on advertising;
the advertiser needs to establish that pulling the clients into advertising has only one
main goal, which is to convince them to buy the goods or services. Advertising is a
tool used in overruling the buyer’s power to choose by providing a linkage between
wants/goods/services and satisfaction. Over-sensationalized advertising tends to
disturb clients as noted by (Spangenberg, Obermiller, & MacLachlan. 2005).
1.3 Statement of the problem
Customers typically start-buying process by taking care of the information passed on
by different organizations as mass correspondences, for example TV ad or open
outside notices. They by then create brand data and make a more grounded
prerequisite for the thing being alluded to. Following these strategies, when a client
feels the need for information regarding the goods or services, they normally
communicate with the organization through the sales representative to discover more
about the offer. Dahlqvist and Linde (2002) point out that this offers the organization
an opportunity to influence the client through relationship correspondence.
Advertising is broadly perceived as an incredible power for improving brand
mindfulness and forming customer inclinations (Macdonald & Sharp, 2003).
Organizations keep on spending tremendous measures of cash on publicizing each
year; the United States alone burned through 189 billion dollars in 2015 (Zhang &
Vorhies, 2017). Notwithstanding the fact is that advertisememt is a powerful
instrument, it is still very important for organizations to precisely assess and measure
its impact especially towards the success of the organization. In this way, in past
decades, the two specialists and scholastics have put forth colossal attempts to review
the effect of advertisement on different aspects but have failed to focus on the
influence of advertisement towards the success of the companies. In order to place
their items/services as the higher purpose of the client’s mind; companies keep on
5
spending huge amounts of funds on advertising. Fatima and Lodhi (2015) contend,
“With the changing preferences by customers as well as the way in which they
conduct themselves; organizations are still at cross-roads on what kind of advertising
strategy can help in turning around the conduct of consumers.”
There are numerous advertisements in Medias; television, radio, newspapers and
magazines but the important question for a marketer is “do all these advertisements
positively influence the consumers’ brand preference?” The efforts put into
advertising are considered futile when they do not lead to any positive changes in
the brand preferences among the consumers. Thus, the most important task for a
marketer is to uncover the length to which advertisement leads to a positive change
in consumer’s behavior with regard to the company’s brand (Vivekananthan,
2010). When such principles are foregone in marketing; it leads to problems that
have huge effects on the company to the extent of threatening its mere existence
(Giles, 1997).
Given the above arguments, it is of importance that an investigation is carried to look
into the influence of advertisement of the success of oil retailing industry with
MOGAS Tanzania Limited as a case study. The company under investigation i.e
MOGAS Tanzania Limited has been carrying put advertisement of its products with
an intention to boost sales performance, determine consumers’ behavior, and
promoting its brand. The means for advertising include radio, newspapers and
television. Preliminary interview carried with the marketing staff at MOGAS showed
that the company did not carry out any research into the influence of advertisement
on its success in the oil retailing business. Additionally, the advertising had no
appropriate target and did not have clear goals as to what it aimed at between
promoting brand, influencing consumers’ behavior and boosting sales performance.
This exploration exertion was equipped towards analyzing the influence of
advertisement on the success of oil retailing by MOGAS Tanzania limited while
specifically interested on establishing the forms of advertising promotion adopted by
MOGAS Tanzania limited, examining the extent in which advertisement relates with
6
sales performance of MOGAS Tanzania limited, examining the extent in which
advertisement relates with consumer behavior at MOGAS Tanzania limited, and
examining the extent in which advertisement relates with promotion of the brand of
MOGAS Tanzania limited.
1.4 Objective of the study
1.4.1 General Objective
To assess the influence of advertisement on the success of oil retailing industry in
Tanzania.
1.4.2 Specific objectives
The specific objective for this study will include:
i. To establish the forms of advertising promotion adopted by MOGAS
Tanzania limited
ii. To examine the extent to which advertisement relates with the sales
performance at MOGAS Tanzania limited
iii. To examine the extent to which advertisement relates with consumer
behavior at MOGAS Tanzania limited
iv. To examine the extent to which advertisement relates with the promotion of
the brand of MOGAS Tanzania limited
1.5 Research questions
This study will address the following research questions;
i. What are the forms and types of advertising promotion adopted by MOGAS
Tanzania limited?
ii. In what extent advertisement relates with the sales performance at MOGAS
Tanzania limited?
iii. In what extent advertisement relates with consumer behavior at MOGAS
Tanzania limited?
7
iv. In what extent advertisement relates with the promotion of the brand of
MOGAS Tanzania limited?
1.6 Significance of the study
For the most part, the criticalness of any study is either securing of information or
providing solution to a problem. The envisaged results of this study shall, among
other things add the body of knowledge to the scarce empirical literature on the
influence of advertisement on the success of oil retailing industry in Tanzania;
Provide fundamental data to the strategy producers on having a typical approach, to
be trailed by oil retailing organizations in Tanzania; The discoveries of this
examination are anticipated to open up room for a wider understanding of the
influence of advertisement on the success of oil retailing industry in Tanzania. Also
highlights of this research would help stakeholders in the industry to shape their
marketing strategies more precisely. The study is also expected to provide an
expanded research base for future studies. Since the researcher is working within the
industry, it would also sharpen the researcher’s performance skills and knowledge of
all related matters to this study.
1.7 Scope and delimitation of the study
This study is confined in assessing the influence of advertisement on the success of
oil retailing industry in Tanzania, a case of MOGAS Tanzania limited whereby
specific confinement was on establishing the forms of advertisement adopted by
MOGAS Tanzania limited, to examine the extent in which advertisement relates with
the sales performance at MOGAS Tanzania limited, to examine the extent in which
advertisement relates with consumer behavior at MOGAS Tanzania limited, to
examine the extent in which advertisement relates with the promotion of the brand of
MOGAS Tanzania limited
1.8 Limitation of the study
Every study in the world is anticipated to be disposed to some limitations. For the
case of this study, the following were limitations of this study;
8
The researcher experienced a problem on the willingness of the respondent to answer
questions. Therefore in order to avoid such limitation, the researcher ensured the
respondents who provided data of the study were informed about the significance of
the study thus the data provided was strictly used for academic purpose only.
Also this study is conducted in only one company detailing with oil retailing in
Tanzania, which is MOGAS Tanzania limited. Therefore, the data collected was
limited to only one company; hence it is impossible to generalize this data to apply in
other companies, which are in oil retailing industry in Tanzania.
1.9 Organization of the dissertation
This indicates how the study is structured. The study is divided into five chapters
namely: Background of the study, literature review, research methodology,
presentation and discussion of findings, and lastly summary and conclusion of the
study.
9
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter reviews literature on the subject matter. It further covers the review of
both the theory in the respect of advertisement and detailed empirical evidence on
previous research studies that associates with given study topic. The chapter also
represents conceptual framework and concludes by showing a research gap in the
studied literature.
2.1.1 Definition of key terms
Advertisement
Advertising is an implement of marketing for passing on thoughts and data about
goods and ventures to a notable gathering, which makes use of paid space or time in
the media or uses another correspondence means to communicate its message. It
explicitly distinguishes the advertiser and his association with the business exertion
(Wanoff, 1997).
Advertising is the strategy to convince individuals to purchase goods/services (Frank,
2005). Advertising therefore can be characterized as the conveying of data
concerning an idea, item, or administration to force an activity as the publicist’s
purpose. It therefore can be summed up as a controlled data and influence by
strategies for mass correspondence (Borden, 2007).
Retail
Pantano and Viassone (2015) define retail as the offering of products in little
amounts from one point legitimately to the consumer.
At the end of the store/supply network is the retailer who offers the products in small
amounts to the consumers in terms of their needs and conditions put forward (Vaja,
10
2005). The end consumer purchases from the retailer the products in small amounts
to fulfill the wants (Pantano &Viassone, 2015).
2.2 Theoretical review
2.2.1 Theories and models guiding the study
In this part the theories linked to the purpose of this study were examined. The
theories and models found in the literature on the subject were presented and
compared to each other. Models and theories from different authors were discussed
and different approaches on the same theories were investigated. This examination of
literature was done out of an external marketing communication view and was
focused on the advertising process.
There are theories within external marketing communication and advertising that has
been highly influential in both textbooks and in the professional advertising practice
(Hackley, 2005). These theories all derive from what can be referred to as the old
‘learning theory’, a theory that can be related to the Pavlovís dogs’ experiment.
Pavlov trained his dogs’ to associate the arrival of food with the ringing of a bell; a
sound that alone would lead to the salivation response among the dogs. Just like the
bell in Pavlovís dogs’ experiment, advertising was seen as a stimulus that would give
rise to a response, just like the dogs’ salivation response. After further developments
of the so-called ‘learning theory’ it gave rise to a new more up to date approach
toward advertising planning (Mackay, 2005).
The new approach was set with different names depending on authors at that time:
• ‘the linear information processing theories of communication and persuasion’
(Hackley, 2005),
• ‘message models’ (Smith & Taylor, 2002) and the
• ‘hierarchy of effects theory’ (Mackay, 2005),
11
This new approach generally reflects the methods and assumptions of cognitive
psychology.
According to Kitchen (1994) advertising are aiming to progress customers through
the cognitive, affective and behavioral stages before they buy the products. An
example on a model that exemplifies these stages is the Lavidge and Steiners model
(Kitchen 1994, Barry & Howard 1990).
The Lavidge and Steiners model will together with two other models that also shows
these stages be mentioned more later on in this part.
In this study the researcher will use the name for the theory offered by Mackay
(2005), which is “hierarchy of effect”.
The hierarchy of effects approach is grounded on the base that to be effective and
achieve the desired response, several steps has to be completed and passed. Any
piece of persuasive communication must carry the audience through the series of
stages that has been drawn. These stages are placed so that a customer has to climb
them and one step cannot be reached until the previous is completed (Mackay, 2005).
Due to the development within the field of psychology at this time, this approach
came to base the new theoretical models (Vakratsas & Ambler, 1999). These new
models were developed to depict the stages that a customer may pass through in the
buying process and three of these will discussed later in this part.
However, as mentioned earlier in this part, models have been created to give more
specific guidelines on how customers may respond to advertising.
These models are created to show what behavioral steps customers has to pass
through when exposed to advertising and if the communicating organization can lead
the customer through all these steps, the risk for noise in the communication process
decreases even more (Mackay, 2005).
12
To have in mind when reading about these models are that advertising professionals
still tries to find the ultimate model that can be applicable on the real market and its
customers. Right now the models and theories are hard to apply into real life (Jobber,
2004).
The existing behavioral advertising models will now be examined further and
compared to each other. Due to the high amount of models that has been published
on this area, this study will only investigate the, according to Professor Evans
(University of Lincoln, 2006) three most discussed ones.
These models are from older publications and there are several models that have
been published after these, but since this study aims to investigate the chosen models,
the newer ones will not be discussed here.
2.2.1 AIDA
AIDA was created by Strong in 1925 and is a behavioural model that has as purpose
to make sure that an advertisement raise awareness, stimulate interest, and leads the
customer to desire and eventually action (Hackley, 2005). The model is seen as a
highly persuasive and is said to often unconsciously affect customers’ way of
thinking (Butterfield, 1997).
With the AIDA model, Strong (1925) suggests that for an advertisement to be
effective it has to be one that:
1. Commands Attention
2. Leads to Interest in the product
3. And hence to Desire to own or use the product
4. Then finally leads to Action (Mackay, 2005)
13
For the advertisement to contribute to success it has to be designed so that the
customer passes through all these four phases, with all being equally important. The
model implies that advertising should inject memorable and believable messages that
will make costumers triggered to act in a certain way (Brierley, 2002).
The model may be seen by many as the strongest advertising theory, but has along
with the others been criticized by different sections of the advertising community.
They claim that there is no evidence that customers behave in this rational, linear
way. They mean that mass media advertising in general fail to stimulate desire or
action. The model ignores the role of context, environment and mediation in
influencing the effectiveness of the advertisement.
The advertising world has because of this lately turned into focus more on the two
main behavioral responses: awareness and interest. They mean that all four phases
are not equally important and to be successful the advertiser has to look further into
the behavioral phases (Brierley, 2002).
Another criticism that the model has met is that it represents only high-involvement
purchases. According to AIDA customers always goes through this rational process
when buying products, but many says that purchases more often are spontaneous
(Hackley, 2005).
In 1961 there were two new models published, the DAGMAR theory (Belch &
Belch, 1995) and Lavidge and Steinerís hierarchy of effects model (Lavidge &
Steiner, 1961).
2.2.2 DAGMAR
Russell Colley created DAGMAR when he prepared a report for the Association of
National Advertisers. This report was entitled Defining Advertising Goals for
Measured Advertising Results, shortened down to DAGMAR, and thereof the name,
(Belch & Belch, 1995) and was later in 1969 published as a book with the same title
(Mackay, 2005). DAGMAR was created to encourage measurable objectives for
14
each stage of the communication (Smith & Taylor, 2002) and does not deal purely
with the message (Mackay 2005). DAGMAR focuses on the levels of understanding
that a customer must have for the organization and on how to measure the results of
an advertising campaign (Belch & Belch, 1995).
The main conclusions on the DAGMAR theory were expressed in the following
quotation:
“All commercial communications that weigh on the ultimate objective of a sale must
carry a prospect through four levels of understanding.
1. The prospect must first be aware of the existence of a brand or organization
2. He must have a comprehension of what the product is and what it will do for him
3. He must arrive at a mental suspicion or conviction to buy the product
4. Finally he must stir himself to action.” (Mackay, 2005, p.25-26)
The communication has to be specific and measurable, and is therefore based on a
hierarchical model containing the four stages set out above in the quotation (Mackay,
2005).
The DAGMAR approach has had a huge influence on the how to set objectives in the
advertising planning process and many planners use this model as their base.
However, just as the other approaches within advertising, DAGMAR has been met
with critique. One of the major criticisms towards DAGMAR is on its reliance on the
‘hierarchy-of-effects theory’, just as with AIDA. Customers do not always pass
through the stages in a linear way.
Another criticism made towards the DAGMAR approach is that it focuses too much
on strategies. Many creative people within advertising are looking for the great
unique idea that can result in a successful campaign and feels that the DAGMAR
15
approach is too concerned with quantitative measurements on the campaign (Belch &
Belch, 1995).
2.2.3 Lavidge & Steiners Hierarchy-of-effects model
This model was published during the same period as DAGMAR. The model was
named the hierarchy-of-effects model, which is the same name as some authors used
on the foundation theory, and therefore gone under the name, Lavidge & Steiners
Hierarchy-of-effects model in this study.
According to this model customers do not switch from being completely uninterested
to become convinced to buy the product in one step. Lavidge and Steiners Hierarchy-
of-effects model is created to show the process, or steps, that an advertiser assumes
that customers pass through in the actual purchase process (Barry & Howard, 1990).
The model is based on seven steps, which as with the other models must be
completed in a linear way.
The big difference between this model and the others is not only the steps, but also
the view on how to pass them. Lavidge and Steiner (1961) write that the steps has to
be completed in a linear way, but “a potential purchaser sometimes may move up
several steps simultaneously” (Lavidge & Steiner, 1961, p. 60) which is supported by
Munoz (2002) who writes that normally ultimate customers do not switch directly
from being interested to become convinced buyers.
Lavidge and Steiner identify the seven steps in the following order:
1. Close to purchasing, but still a long way from the cash register, are those who are
merely aware of its existence.
2. Up a step are prospects who know what the product has to offer.
3. Still closer to purchasing are those who have favorable attitudes toward the
product those who like the product.
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4. Those whose favorable attitudes have developed to the point of preference over all
other possibilities are up still another step.
5. Even closer to purchasing are customers who couple preference with a desire to
buy and the conviction that the purchase would be wise.
6. Finally, of course, is the step, which translates this attitude into actual purchase.
(Lavidge & Steiner, 1961, p. 59)
Lavidge and Steiner (1961) also wrote, in their article, that they are fully aware of the
impulsive purchases that customers can make, but they mean that for higher
economical goods these steps are essential for the advertiser to include.
This model also has as a premise that advertising occurs over a period of time, and
may not lead to immediate response and purchase. It is rather a series of effects that
has to occur, with each step fulfilled on the way towards the next stage (Lavidge &
Steiner, 1961)
Behind this model is according to Belch & Belch (1998) the premises that
“advertising effects occur over time and advertising communication may not lead to
immediate behavioural response or purchase, but rather, consumers must fulfill each
step before (s) he can move to the next stage in the hierarchy” (Belch and Belch
1998, p. 146).
As with the former models discussed, this model has also been criticized. The
criticism on Lavidge & Steiners model is very similar to the one made on DAGMAR
and AIDA. There is still no evidence on the fact that awareness of a products leads to
purchase, and the steps are still unclear.
Criticism has also been made on each individual step in the model. Critics do not
think that the model explains how the customers will go from one step to another and
to point out the steps without explaining them further is not seen as enough (Palda,
1966).
17
Review over the discussed models
AIDA DAGMAR Lavidge & Steiners Hierarchy-
of effects model
Attention
Interest
Desire
Action
Focus on the different steps that
customers must pass in the
process towards buying a product
when being exposed to
advertising.
Must be passed in a linear way
with one step completed before
the moving on to the next one.
Aware
Comprehension
Conviction
Action
Focus on the different levels of
understanding that a customer
must attain for an organization in
the process of buying a product
after being exposed to
advertising. The levels of
understanding must be passed in
a linear way. The advertising
objectives must be measurable
Unaware
Aware
Liking
Preference
Conviction
Purchase
Focus on the different steps that
a customer must pass in the
process on buying a product
when being exposed to
advertising.
Should be passed in a linear way
but also recognizes the different
levels of consideration that can
take place depending on the
products.
Source: Strong (1925); Belch and Belch (1995); Lavidge and Steiner (1961).
Criticism on the ‘Hierarchy of effects theory’
The models that are based on the “hierarchy of effects” theory (Mackay, 2005) can
be very helpful but are not conclusive. There are several factors that these models do
not take in consideration.
1. Not all buyers go through all stages,
2. The stages do not necessarily occur in hierarchical sequence,
3. Impulse purchases contract the process. (Smith & Taylor, 2002, p. 97)
18
The hierarchy models help the advertiser to identify the stages that buyers generally
passes through, but cannot be used as obvious guidelines (Smith & Taylor, 2002).
As seen earlier in this chapter the criticism on the models and theories are very
similar. They have all been met with the criticism that customers do not always
follow a straight line of steps when purchasing a product. Not all customers pass
through all the steps before buying a product, some may stop at one stage, and some
may go back several steps before later on going back for the product. Something that
all of these models and theories are missing is the loop from the top to the end of the
steps. A loop like this would show that a purchase is not always the end step, rather
the beginning of an ongoing relationship with the customer (Smith & Taylor, 2002).
The design of the advertisement has a huge effect on the result of the campaign.
Advertising is a campaign that sets high demands on the creativity and to put all of
this within a frame of models would kill the creativity (Jobber, 2004).
Forms of advertising
As per Kotler and Armstrong (1999) various types of publicizing considered being
practical, powerful and updating promoting. Enlightening publicizing is utilized to
advise the consumers about another product or highlight and to create the image of
the organization (Kotler and Armstrong, 1999). Influential publicizing is one used to
assemble particular interest for a brand by convincing clients that it offers the value
for money. It is geared towards influencing the consumer to purchase instantly.
Update publicizing is one used to keep purchasers contemplating the item or
administration. It is significant for adult items or administrations. It serves as a
reminder to the consumers that in the near future they shall require such products and
thus show them where to acquire such a product. Andrews and Shimp (2017)
contend, as a business, a few types of advertising advancements would be more
appropriate to their business than others, contingent upon the crowd they are
focusing with their promotions just as what is most financially savvy for them and
will permit them to arrive at the biggest number of individuals on the double without
19
driving the organization to insolvency. The alternative ought to likewise mirror
nature in which organization's administration or item exists. For instance, if the
organization's objective market invests the majority of its energy in web based life, at
that point their advancement should run via web-based networking media.
Types of advertising promotions
There are numerous kinds of advertising promotions that an organization can use to
advance its item or service. Everything relies upon what works for the organization.
Among the types of advertising promotions can be described below as follows;
Newspaper Advertising Promotions
Picard (2008) states that newspaper-advertising promotions offer the opportunity to
contact an expansive crowd who peruses both the local and state or metropolitan
papers. An organization has two choices right now: can pick pennant advertisements,
which can be put anyplace in the paper or they can pick classifieds, which are
recorded under explicit headings in one a particular area of the paper. An
organization can promote in local papers, or in state or national papers, or in a mix of
the two (Kaser, 2012).
Magazine Advertising Promotions
Chandra and Kaiser (2014) underline that magazines have one main benefit over
papers that an organization can use for its publicizing effort: they are generally
authority and take into account a particular sort of crowd. They, along these lines,
make it simple for an organization to find a workable pace message significantly
more no problem at all.
Clow (2004) contends that, on the off chance that the organization needs to show its
items in shading, at that point it is a smart thought to get a vivid, gleaming notice
showed in a magazine to draw out the various parts of its magazine all the more
unmistakably. Along these lines, notwithstanding, an organization should pay more
for a magazine advertisement than for a paper promotion.
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Avery, Eisenberg and Simon (2012) provide that, magazines likewise serve more
noteworthy geographic territories than papers, since they are not confined to explicit
towns or states. The scientists further contend that, on the off chance that the
organization needs a more extensive crowd; at that point a magazine is a smart
thought. Be that as it may, on the off chance that an organization needs to focus on a
particular area, at that point a paper may be a superior speculation.
Radio Advertising Promotions
Kelley, Sheehan and Jugenheimer (2015) postulate that, promoting on the radio is
one of the more viable approaches to arrive at your intended interest group, if the
organization's crowd is all around characterized. On the off chance that the
organization realizes which station its intended interest group is probably going to
tune in to, at that point the organization can routinely publicize on that station to pull
in more up to date clients.
Harb (2012) challenges that, albeit radio is a ground-breaking approach to publicize
to organization's intended interest group, there are sure downsides to the mode of
sound that the organization ought to consider, before it utilizes this medium. One of
these downsides has to do with the memory of the audience members. Sooner or
later, a great many people scarcely even recollect what they heard on the radio. Thus,
while an organization's ad may have a remarkable effect at the time, its
advertisement may lose its impact later on.
Fransen, Verlegh, Kirmani, and Smit (2015) underline that; the most ideal approach
to have the effect of the organization's promoting endure on radio is to continue
playing it again and again. That is acceptable in that it guarantees audience members
stay with hearing's message thus it gets bored into their brains. In any case, it is
likewise terrible in that playing its message again and again can be very cruel on its
pockets. On the off chance that the organization can't bear to play its publicizing
advancement regularly on the station, at that point it won't get results in the same
class as it would need.
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Television Advertising Promotions
TV is an amazingly incredible mechanism for publicizing, in that it can give reach to
a differing scope of individuals, and it can target very well for specific
socioeconomics or interests. TV publicizing advancements are not just about the
medium. Rather, TV advertising covers a wide range of media without a moment's
delay. You have sound, video, shading, content, and essentially everything else. In
this way, TV advertising has a more noteworthy limit than radio, paper, and
magazine, to convince your crowd to purchase your item and to buy in to your
administration. They are useful thus they are a smart thought in the event that you
have to make a show of how your item functions in your commercial.
Advertising Promotions in Directories
Barry et al., (2010) signify that, indexes, for example, the Yellow Pages, will list
organizations by their name and classification. Clients, who use directories, normally
have their attentions made up that they need to purchase something; they simply do
not have idea who they are going to get it from.
At the point when an organization goes for online directories, instead of a physical
one, it can stay up with the latest quickly. With a physical registry, an organization
must anticipate for the following version. With online directories, an organization
can alter the items and service that it offers. When the organization intends to utilize
directories, regardless of whether on the web or physical, at that point it ought to
publicize in both (Durand & Cenciarelli, 2005).
Online Advertising Promotions
Zeff and Aronson (1999) emphasize that, the web has demonstrated to be help for
organizations, as it is an incredible, yet financially savvy approach to promote. An
organization can pull in new clients, contact its current clients, and in general,
organization would have the option to interface and connect with a tremendous
crowd from everywhere throughout the world. Numerous clients will look into a
business online before they settle on the choice to purchase any of its items or
service.
22
At the point when an organization plans its site expertly, it will tempt its clients to
have a need to visit its site and to purchase its items. An organization can likewise
advance its site and its business through paid publicizing advancements on different
sites or on web indexes (Ransom & Chuard, 2012).
Relationship between Advertising and Sales Performance
The main intent to advertise is to improve the way that deals are executed in an
organization. Advertising is a picture consisting of processes that are geared towards
relaying information to people about items that are for them (Bird, 2004; and David
et al, 1998). The significance of advertising is to relay data to potential customers
that a certain brand has qualities and advantages that they need (Aaker, Kumar, Day,
2008). Advertising provides clients with information about product that can be
attained by them. This assists the clients in selecting and, making a choice between
different products thus fuelling competition. Competition and rivalry makes the
organizations focus on affordability and quality of their products in order to retain
their customers (Kumar and Gupta, 2016).
Percy (2016) emphasizes that when a company makes a choice to advertise; then the
company has chosen to compete in the market forcefully. This shows the non-
dependence of the supplier on a single sales representative rather the preparedness to
communicate with customers abroad. In this sense, the act of advertising leads to
development and extension of the market as well as an increase in customer
awareness about the product (Shareef et al., 2017).
Andrews and Shimp (2017) view that the market needs and conditions are changing;
along these lines there is requirement for invention in selling. Inventiveness will help
the organization to establish what it intends to deliver to the customers in order to
fulfil the wants/needs of the former. When the organization embarks on producing a
product that arises from the aforementioned process, then there is high response in
consumption of the good compared to when the process is not followed. Peitz and
Valletti (2008) discovered that when a portion of the population is in possession of at
least one of the mass mediums (radios/TV) then advertising leads to attention
23
building in the industry. This tactic helps the organization to acquaint itself with
various individuals. The volume of deals shall increase only when the advertisement
s fulfilling. For advertising to have a straight relationship with sales revenue, the
entire market mix must be perceived by the customer as the right one (Belch &
Belch, 2003). Bagwell (2007) states that organizations advertise so as to compete in
another and forceful manner with in the market, to build their piece of the overall
industry through expanded client base while making use of little effort the minimal
effort method for instructing clients to make choices to buy items
Muhanji and Ngari (2015) have expressed that in a serious society there isn't just
challenge between rival advertisers yet decision between their adversary items and
service. Likewise individuals overlook effectively and subsequently the greatest
advertiser on the planet will get bankrupt effectively in the event that it quits
advertising. Organizations advertise to make nature with or of an item, which assists
with making trust in it. When an item is essentially made accessible, it is critical to
educate individuals regarding its reality.
2.2.3 Advertisement in relation to consumer attitude and behaviors
Client buying behaviour is genuinely constructed from the buyer manner and its way
of thinking. Numerous things consolidate to develop the conduct of any person.
Various issues come together to develop the way of thinking/conduct of any
individual. The main issue that affects the way a person thinks is the lifestyle. A
person’s lifestyle/culture produce the solid impression of the products in the clients’
brains (Hye-Shin Kim, 2008).
Rai (2013) points that a few national and universal brands are thought of and have
solid impressions in the clients’ brains. The way that the individuals see the brands is
rooted in their lifestyle as well as the context/environment in which they live.
Advertising has been shown to have a great impact on the way the clients think of
items. Advertising compels the clients to purchase certain products/services. Buying
behaviour can likewise be developed by item assessment and brand acknowledgment
(Rai, 2013).
24
Worldwide, clients are attracted by band and items that identify with their daily
practises. Enthusiastic advertising has been in various researches found to influence
the way of thinking of the clients who in turn partner with the brand. The way that
advertising is used to bring in customers is when it is centred on the mental
perceptions of the customers (Sandra, 2008).
2.3 Empirical review
Adamu (2017) conducted a study on assessment of the effect of advertisement on
sales performance using St. Gorge Brewery in Ethiopia as a case study. The
investigator contended that each firm has its own targets when advertising. These
objectives include: increase market share and sales, and build solid customer
relations. The aim of the study was to decide the impact of promoting on
authoritative execution of quick moving shopper products in the bottling works
industry on account of St. Gorge brewery. The study design employed in this
research was cross sectional with the respondents being the staff of St. George
Brewery from the following branches; advertising, wholesalers, and deals. The
research employed essential information, which was gathered utilizing self-
managed surveys.
The information gathered was investigated utilizing factual bundle for sociologies
and presented in tables. The study arrived at the conclusion that advertisement
helps the organization to impart knowledge to the clients about their items as well
as conveying its brand to the market. The study further discovered that
advertisement of works through the St. George Brewery account has helped the
organization to provide and convey a great picture to the market as well as putting
emphasis upon the purchase of its items improving a bigger picture in the industry,
keep up prevalent sub the business, build up great connection with potential clients
and diminish purchaser discord. The research further showed that promotion assists
St. George Brewery in the formation of benchmarks through identification of
challenges, limit blocks between the organization and customers.
25
Kibona(2015) directed an investigation entitled, the impact of elements of
advertisement on the consumer buying behavior in urban areas: the case from Coca-
cola shoppers in Dar Es Salaam Tanzania. The reason for this examination is to
inspect the connection between board’s promotion, media correspondence ad and
POS materials commercial on one side and Consumer purchasing conduct on the
opposite side and decide the effect of bulletins notice, media correspondence notice
and POS materials ad on Consumer purchasing conduct. For the needy variable,
purchaser changing to Coca-Cola utilization is utilized as a proportion of progress in
customer purchasing conduct and the connection between announcements notice,
media correspondence commercial and POS materials promotion to the buyer
purchasing conduct is explored for an example of 200 Coca-Cola shoppers in Dar-es-
Salaam Tanzania, who needed to tell the notice component that impacted them to
begin utilizing Coca-Cola items, the information were gathered in mid 2014. This
investigation utilized Regression examination to decide the effect of boards ad,
media correspondence notice and POS materials ad on customer changing to Coca-
Cola utilization, taking deals advancement, individual selling and exposure as control
factors.
The outcomes demonstrate that there is a huge positive connection between media
correspondence ad and change in customer purchasing conduct. There is sure
connection between bulletins promotion and change in purchaser purchasing
conduct. There is likewise positive connection between POS materials promotion and
change in buyer conduct. The connection between three control factors deals
advancement, Personal selling and Publicity and change in buyer purchasing conduct
show the normal constructive relationship.
Fatima and Lodhi (2015) led an investigation entitled the “effect of promotion on
purchasing practices of the Consumers.” Researchers show that advancements have
been utilized for quite a while to affect the conduct of the clients. Advertising of
the products is significant in among the customers of helpful things. The elements
aforementioned are a perfect way to influence the conduct of the customers with
regard to purchases of items. This study was conducted among 200 young people
26
of both genders. The study aimed at checking the impact of promotions on their
purchasing behavior Association and backslide examination were used to establish
the association between these components. The findings provided that promotions
are astonishingly a way to provide care to the customers but did not progress into
strong images in the buyers’ brains. Since there is a positive association between
customer care and customer perceptions, hen the two elements may lead the client
to acquire a certain item.
Ayanwale, Alimi and Ayanbimipe (2005) led an examination entitled “the impact
of publicizing on purchaser brand inclination.” The specialists indicated that the
multiplication of arranged brands of nourishment drinks in the nation has led to
increased competition for the expanded industry among the administrators in the
nourishment drink industry.. At the point when competition is high making the
customers find themselves with decisions to make regarding the brands in the
market, the producers are forced to rethink and put in their minds the perceptions of
the clients on their own minds. The images that are obtained are then used in
promotion. The study made use of review of 315 nourishment drinks customers
who were randomly chosen in Lagos, Ile-Ife, Ibadan, which are Southwestern
Nigeria urban communities. The findings showed that the findings showed that
females and males were affected by advertising in their brand preferences. 38.73%
of the purchasers preferred Bournvita among other brands. The main reasons for
the inclination that were uncovered were attractive advertisements, which
accounted for 42.62% and rich quality accounting for 40.16%, a large percentage of
the respondents preferred television advertising.
Onyango, Bwisa and Odhiambo (2017) conducted a study entitled, “advertising and
consumer brand preference for mobile phone services in Kenya.” The researcher
informed that Kenya’s mobile telephony industry has been characterized by cut-
throat competition among the industry players in the last one decade with the
resultant closure or complete sell off of the businesses of some of the mobile phone
service providers to competitors. It is against this background that measuring a
consumer’s brand preference is an important step towards understanding the choice
27
behavior of a consumer. The study’s objective was to establish the influence of
advertising on consumer brand preference for mobile phone services in Kenya.
A descriptive survey design was used, with data collected using a structured and
semi-structured questionnaire. The sampling method used was stratified random
sampling method. The data was collected from mobile phone service subscribers
residing in Nairobi County. Of the 500 questionnaires administered, 387
subscribers responded, giving a response rate of 77.4%. Correlation analysis was
used to establish if there was a relationship between the variables. Regression
analysis was used to test the study’s hypotheses using F and T-tests. The study
showed that there is a significant and positive relationship between advertising and
consumer brand preference for mobile phone services in Kenya. The study
concluded that advertising is a significant factor in influencing consumer brand
preference for a mobile phone service. Marketers in the mobile telecommunication
services industry need to effectively utilize advertising with the aim of creating
awareness and influencing consumers to form positive attitudes towards their
brands.
Olayinka et al., (2015) led an examination on “the effect of promoting on deals
execution.” The major objective of the study was to show evidence of the effect of
publicizing on the deals and benefit of a business association with Nigerian
Breweries Plc as a case. Researchers focused on that, publicizing is any close to
home paid type of non-individual data, which is matched to the purchasers or target
population through different media so as to introduce and advance an item,
administrations and deliberation. Great publicizing requires equipped work force
including various masters to empower it flourish in the ever Changing business
environment.
2.4 Conceptual framework
A conceptual framework is described as the abstract, logical structural of meaning
that guides the development of the study (Imenda, 2014). The framework covers the
28
conceptualized association between variables, under the influence of advertisement
on the success of oil retailing industry as presented in the figure 2.1.
2.4.1 Independent variable
Hayes and Preacher, (2014) define these as variables that do not change but a are
capable of influencing other variables. The independent variables in this conceptual
framework consist of advertisement and its forms.
2.4.2 Dependent variable
Variables that change when influenced by the independent variables are termed as
dependent variables (Henwood, 2014). In this study, the dependent variable is
success of retail in terms sale performance, consumer behavior and brand promotion.
The interrelation between the independent and dependent variables can be clearly
demonstrated on the figure 2.1, whereby advertisement influence the success of retail
by affecting sales performance, consumer behavior and brand promotion. The
researcher will use different type of Likert scales to measure the research variable
whereby the respondents will indicate their response according to the given research
question presented in the research instruments.
29
Figure 2.1Conceptual framework
Independent variables Dependent variable
Source: Researcher design (2020)
2.5 Research Gap
Most of the studies so far conducted in Tanzania and abroad have analyzed the
concept of advertisement in difference context and yet focusing in different
industries such as manufacturing, breweries, and mobile services while none of the
studies have attempted to examine the influence of advertisement while associating
with the oil retailing industry. However there are no empirical studies that have
addressed issues regarding the influence of advertisement on the success of retailing
Advertisement
Success on oil retailing
industry
Sales performance
• Increases the revenue, • Leads to more sales
volume quickly, • Builds long term
profitability • Strengthen relationship
with customers
Consumer behavior
• Consumers’ awareness
• Consumers’ attitude
• Consumers’ decisions
• Consumers’ brand
preference
Brand promotion
• Brand recognition
• Brand awareness
• Brand royalty
• Brand reputation
Forms of advertising promotions
• Newspaper Advertising
Promotions
• Magazine Advertising
Promotions
• Radio Advertising Promotions
• Television Advertising
Promotions
• Advertising Promotions in
Directories
• Online Advertising Promotions
30
while taking a case of oil retailing industry in Tanzania. This reveals that despite the
extensive studies that have been conducted regarding advertisement, yet there is no
evidence on the study that have been conducted in Tanzania, which focused on
addressing the influence of advertisement on the success of oil retailing industry in
Tanzania. Remarkably, there is no research that has systematically explored how
advertisement influence the success of oil retail business in Tanzania by considering
the sales performance, consumer behavior and brand promotion of the specific
company dealing with oil retailing in Tanzania. Therefore, the findings from this
study would fill the research gap in knowledge that exists regarding the influence of
advertisement on the success of oil retailing industry in Tanzania.
31
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The methodological part of the study is comprised of all methodologies, which in
one way or another had influence on achievement of the study. The methodologies
provided in this chapter include the area of the study, the research design adopted,
the population of the study, sampling techniques, sample size, data collection
methods, validity and reliability as well as data analysis.
3.2 Area of study
Babbie (2013) defines the term as the place where the investigation was carried out.
Data is collected from this location by the researcher. The study was conducted at
MOGAS Tanzania limited in Dar es Salaam. The researcher proposes this study area
because MOGAS Tanzania limited has retail service stations in Tanzania, which
provides top range quality refined oil based commodities, which incorporate
unleaded premium engine soul (Petrol) and diesel car gas oil. As it was also
recommended by Charmers et al. (2014) that the researcher needs to avoid places
that hinder the possibility of acquiring the needed data.
33
3.3 Research design
Creswell and Creswell (2017) define these terms as the course of action of conditions
for assortment and investigation of information in a way that means to join
significance to the exploration reason with economy in strategy. . Research
configuration is typically dictated by the idea of the examination issue to set the
general methodology of coordinating various parts in a coherent manner in this
manner guaranteeing that the exploration issue is all around tended to (Bryman and
Bell, 2015).
The study at hand made use of case study design with an intent to look into a
particular problem in depth by examining variables (Krutchwill, 2015). This study
made use of a case study research design due to the following reasons: first, the need
for the researcher to conduct an in-depth look into the topic under study using
MOGAS Tanzania Limited as the case. Second, the researcher intended to control an
extreme broad field of research into one easily researchable case. The researcher
selected this research design because it is convenient for testing whether certain
theories or models were applied to a particular research problem or phenomena.
3.4 Research approach/ strategy
There are two type research strategies that are available to researchers, qualitative
(inductive) and quantitative (deductive). In order to accomplish the intents of the
study, the researcher employed a deductive approach, which involves the testing of
research questions assumed from the adopted theory. The basis for selecting this
research strategy is that the quantitative methodology is proper when gathering
information identified with the recurrence of event of a variable and it gives the
analyst a chance to "clarify connections between variables. However, the researcher
did not opt for inductive research approach since it is subjective in nature and thus
makes it hard to sum up results to a bigger populace where discoveries are frequently
abstract since they depend on the judgment and translation of the specialist.
34
3.5 Population of the Study
It is the whole cluster of people, events, or things that the investigator intends to
investigate (Kraemer & Blasey, 2015). Population can either be a collection of
people or events or, institutions. Therefore the population of this study consists of
100 staff of MOGAS Tanzania limited.
3.6 Sampling unit
Sekaran and Bougie (2016) define a sampling unit as “geographical area such as a
village and at times it may be a social group. The researcher made the decision to
consider MOGAS Tanzania Limited specifically as a sampling unit in this study
before selecting the sample.
3.7 Sampling frame
A sampling frame of this study consists a list of staff of MOGAS Tanzania limited.
The researcher drew its sample of staff by considering their respective working
departments.
3.8 Sample size of the study
The sample size is the number of participants in the research study (Hair et al.,
2015). In order to draw a general snap of the whole population from the findings, the
sample drawn must be of significant size thus the researcher went for using a formula
to calculate the sample size. The sample was drawn based on the argument by
Davies and Hughees (2014) that the sample should be above 30% for the study to be
valid.
Yamane (1967) developed the formula for determining sample size. The study
sample size will be determined by the use of Yameni’s formula whereby the
researcher employs such formula to arrive at a sample size of 80staff. The estimate
procedure is as follows:
35
n = N .
1+N (e) 2
Where: n= sample size to be determined, N = the entire population of interest,
e = the acceptable sampling (0.05), 1 = constant.
Sample size for the staff of MOGAS Tanzania limited
n=?, N = 100, e = 0.05, 1 = constant.
Substituting in the formula we have:
n = 100 .
1+100 (0.05) 2
n = 80 staff
The expected sample to be drawn from the target population is 80 staff.
3.9 Sampling techniques and procedures
3.9.1 Sampling Techniques
Sampling technique is defined as a method adopted for selection of subset of
elements from a larger group of objects (Uprichard, 2013). In this study, the
researcher employed non-probability sampling technique that is described as follows;
3.9.2 Non-probability sampling technique
Msabila and Nalaila (2013) define non-probability sampling technique as
sampling techniques as those which do not give individuals in the population equal
opportunity to be selected in the sample. The methods do not allow random choices
of individuals; they are rather based on selecting individuals based on accessibility or
purposive judgment of the investigator.
36
3.9.2.1 Purposive sampling technique
Etikan, Musa and Alkassim (2016) define purpose-sampling technique as the
sampling technique involving selecting sample respondents by considering their
experience, profession or position. This technique chooses respondents for the study
by not delivering equivalent chance of choice to every respondent in the target
population (Singh & Masuku, 2014). Researcher employed purposive sampling
technique in selecting the sample size of staff of MOGAS Tanzania limited. The
respondents were chosen considering different positions they hold at MOGAS
Tanzania limited.
3.10 Sources of data
The researcher used primary data source.
3.10.1 Primary data sources
These are initial information gathered directly from respondents (Palinkas et al.,
2015). Primary data are obtained directly from the respondents during interview
session, including those data which the researcher collects herself using different
data collection methods including questionnaires.
3.11 Data collection methods
Data collection methods refer to gathering specific information aimed at providing or
refuting some facts (Merriam, & Tisdell, 2015). The researcher used suitable
methods for data collection in accordance to the nature and type needed. The
following methods of data collection were used to gather primary data.
3.11.1 Questionnaire
This is a set of questions printed/typed in a definite order on a form/set of forms is
termed as a questionnaire (Moser & Kalton, 2017). A list of questions was designed
by the researcher in order to obtain more data. The researcher used this method to
complement the weakness of the rest of data collection instruments including
observation and interviews. By using questionnaires more data to be collected can be
from approximately a large sample. The questionnaires were distributed directly to
37
the staff of MOGAS Tanzania limited selected as a study sample. This method helps
to avoid bias and ensure the collection of valid and accurate data.
3.11.2 Interview
The researcher used an interview guide to collect primary data from senior staff of
MOGAS Tanzania limited where the guide was composed of several questions
aiming at digging in detail the relevant information. The researcher opted for this
method, which was composed of literate respondents from the given population.
3.12 Reliability and validity of data
3.12.1 Reliability
The researcher focused on the right source of information to ensure reliability of
data. Through this the methodology produced results, which was consistent.
Reliability is about if the outcome from an examination can be the equivalent if the
exploration was to be directed once more, most definitely. The aim of the analysis
was to guarantee that if a last analyst was to follow the very same methodology as
portrayed by a past specialist and led a similar overview study, once more, the last
analyst needs to obtain comparative results (Yin, 2017).
3.12.2 Validity
Validity decides if the analyst really quantifies what was proposed to quantify or how
honest the examination results were (Darawsheh, 2014; Crawford, 2014). Due to the
importance of data validity the researcher ensured that the data were collected using
a well-designed data-collecting instrument. To the best of his knowledge the
researcher prepared a well-structured questionnaire, which enabled to capture
important and relevant information to be subjected to analysis at a later stage.
The instrument used enabled the researcher to perform her study as planned and
come up with valid results.
38
3.13 Analysis and management of data
Before data analysis the researcher systematically reviewed, filtered, and removed
the collected data which, if left as they were they might mislead the entire results or
make them meaningless. This activity was done during the process of collecting data
and after data collection.
Data processing involved a set of activities such as data sorting and cleaning,
categorizing, data coding and transferring coded data to tabulations. The analysis of
data was conducted through the use of both quantitative and qualitative data analysis
techniques.
3.13.1 Data management
The researcher prepared a codebook describing the specific details from the
questionnaires in order to make the process accurate. Data management was done
during the process of data analysis in order guarantee the researcher that a significant
percentage of the collected information from respondents is useful. Also it was done
after collecting data so as to thoroughly check the unsubtle data, which were
accidentally collected, and the researcher did not notice during the process. The
whole process ensured that the remaining data guaranteed meaningful, accurate and
reliable results.
3.13.2 Data analysis
Examining, making deductions and inferences from the data collected through
surveys is termed as data analysis (Ott & Longnecker, 2015). The analysis varies
with the purpose of research, complexity of research design and the extent to which
conclusions can be reached easily (Neuendorf, 2016). In this study data collected was
analyzed both qualitatively and quantitatively.
3.13.3 Data analysis techniques
Statistical Package for Social Scientist (SPSS) Software Version 19 was employed to
analyze the data whereby correlation analysis technique was used. The researchers
39
employed correlation analysis technique since it measures the strength of association
between two variables and the direction of the relationship.
3.13.4 Qualitative data analysis
Qualitative data analysis was employed in this study, whereby the researcher
employed a subjective information investigation, which includes the distinguishing
proof, assessment, and understanding of examples and topics in printed information
and decides how these examples and topics help answer the exploration inquiries
within reach. The researcher employed interview method as a qualitative data
collection method, which involved asking questions to respondents, listening to and
recording answers from an individual on a structured format and in an in depth
manner.
3.14 Ethical considerations
In consideration the value of being ethical, the researcher received research
clearance from Mzumbe University, whereby the introduction letter from the
researcher, which clarified the intent, was given prior to field visit.
The researcher obtained an introductory letter from the University explaining in a
clear language the intent of the study to be academic and not otherwise.
40
CHAPTER FOUR
FINDINGS PRESENTATION
4.1 Introduction
This chapter extrapolates data collected during the study in relation to research
questions and objectives. The study focused on exploring the influence of
advertisement on the success of oil retailing industry in Tanzania. It is separated into
two main sections, Section one concentrate on the introduction. Section two centered
on demographic and background characteristics of the respondents.
A total of 80 questionnaires were administered to respondents belonging from
different departments, and 4 responses of interview guide questions from the head of
departments were obtained.
4.2 Demographic characteristics of respondents
The data obtained on this part serve to show the nature of the respondents in the
study. The nature of the respondents is presented in terms of respondents, age of the
respondents and the working experience of the respondents.
4.2.1 Gender status of respondents
Total of (80) respondents filled the questionnaires, where as 44 respondents were
males and 36 respondents were females. This indicates that 55% of the respondents
were males while the rest 45% of the respondents were females. The result of the
study suggests that gender of respondents also as helped to provide variety of
thoughts. This is graphically represented in the Figure 4.1 as follows;
41
Source: Field data (2020)
Figure 4.1: Gender status of the respondents
4.2.2 Age of respondents
Based on the returned questionnaires, the study indicated that 18 respondents that
represent 22% of the total number of the respondents were aged between 25 to 35
years, while 47 respondents that represent 59% of the total number of the respondent
were aged between 36 to 45 years whereas 15 respondents that represent 19% of the
total respondents were aged between 46 and above. This is graphically represented in
the Figure 4.2 as follows;
42
Source: Field data (2020)
Figure 4.2: Age of the respondents
4.2.3 Working experience of the respondents
Based on the returned questionnaires, the study indicates that 32 respondents that
represent 40% of the total number of the respondents had a working experience of
below 5 years, while 22 respondents that represent 27% of the total number of the
respondents had a working experience of between 6 to 10 years, whereas 18
respondents that represent 23% of the total number of the respondents had a working
experience of between 11 to 15 years and 8 respondents that represent 10% of the
total number of the respondents had a working experience of between 16 years and
above 10. This is graphically represented in the Figure 4.3 as follows;
Source: Field data (2020)
Figure 4.3 Working experiences of the respondents
43
CHAPTER FIVE
FINDINGS DISCUSSION
5.1 Introduction
This chapter discusses on the influence of advertisement on the success of oil
retailing industry in Tanzania. It is separated into five main sections, which focus on
addressing the general and specific research objectives. Section one concentrate on
the introduction. Section two intends to examine on the response on the forms of
advertising promotion adopted by MOGAS Tanzania limited, Section three intends
to examine the extent in which advertisement relates with the sales performance at
MOGAS Tanzania limited, whereas section four intends to examine the extent in
which advertisement relates with the consumer behavior at MOGAS Tanzania
limited, while section five intends to examine the extent in which advertisement
relates with promotion of the brand of MOGAS Tanzania limited.
5.2 Response on the forms of advertising promotion adopted by MOGAS
Tanzania limited
The researcher sought to examine the forms of advertising promotion adopted by
MOGAS Tanzania limited more frequently. Among the forms of advertising
promotion identified include Newspaper Advertising Promotions, Magazine
Advertising Promotions, Radio Advertising Promotions, Television Advertising
Promotions, Advertising Promotions in Directories and Online Advertising
Promotions. The findings of the study indicates that 8 respondents that represent 10%
of the total number of the respondents confirmed that Newspaper advertising
promotion was adopted by Mogas Tanzania Limited, 6 respondents that represent 7%
of the total number of the respondents confirmed that Magazine advertising
promotion was adopted by Mogas Tanzania Limited, 20 respondents that represent
25% of the total number of the respondents confirmed that Radio advertising
promotion was adopted by Mogas Tanzania Limited, 12 respondents that represent
15% of the total number of the respondents confirmed that Television advertising
promotion was adopted by Mogas Tanzania Limited, whereas 2 respondents that
represent 3% of the total number of the respondents confirmed that Advertising
44
Promotions in Directories was adopted by Mogas Tanzania Limited, while 32
respondents that represent 40% of the total number of the respondents confirmed that
Online Advertising Promotions was adopted by Mogas Tanzania Limited. These
results are being graphically represented in the Figure 4.4 as follows;
Source: Field data (2020)
Figure 4.4 Forms of advertising promotion adopted by MOGAS Tanzania
limited
5.3 The extent to which advertisement relates with the sales performance at
MOGAS Tanzania limited
The study intended to look into association between advertisement and sales
performance at MOGAS Tanzania limited. The descriptive analysis were conducted
whereby the descriptive statistic results as indicated in the Table 4.1 were obtained
while showing the list of variables including “increases the revenue, leads to more
sales volume quickly, builds long term profitability and strengthen relationship with
customers” as variables showing the existing association between advertisement and
sales performance at MOGAS Tanzania limited.
45
Table 4.1 Descriptive statistics
N Sum Mean Std. Deviation
Statistic Statistic Statistic Std. Error Statistic
Increases the revenue 80 377.00 4.7125 .06702 .59945
Leads to more sales
volume quickly 80 383.00 4.7875 .05817 .52032
Builds long term
profitability 80 377.00 4.7125 .06462 .57794
Strengthen relationship
with customers 80 370.00 4.6250 .07415 .66323
Valid N (listwise) 80
Source: Field data (2020)
The descriptive results in the table 4.1 indicate the description/comparison of means
and whereby variable indicates “leads to more sales volume quickly” was little over
greater on average than the indicates “increases the revenue, builds long term
profitability and strengthen relationship with customers”. The variable indicates
“leads to more sales volume quickly” was having an average of 4.7875, the variable
indicates “Increases the revenue” variable was having an average of 4.7125, the
variable indicates “Builds long term profitability” was having an average of 4.7125,
while the variable indicates “Strengthens relationship with customers was having an
average 4.6250.
While in the description/comparison of standard deviation the results indicate the
variable marks “Strengthen relationship with customers” had a standard deviation of
0.66323, the variable marks “increase the revenue” had a standard deviation of
0.59945, the variable marks “Builds long term profitability” had a standard deviation
of 0.52032 while the variable marks “Leads to more sales volume quickly” had a
standard deviation of 0.57794. Therefore the variable marks “Strengthen relationship
with customers” indicates that is having a higher standard deviation compared to the
rest of variables, these results entail that the variable marks “Strengthen relationship
with customers” is more spread out or dispersed than the variable marks “increases
the revenue, leads to more sales volume quickly, and builds long term profitability.
46
Correlation analysis
In the line of the result obtained by the descriptive analysis, the researcher also aimed
to scrutinize the association between advertisement and sales performance at
MOGAS Tanzania limited through the application correlation analysis technique.
The correlation analysis was conducted whereby the results as indicated in the Table
4.2 were obtained while showing how each variable correlate with the advertisement
while checking whether such relationship is either positive correlation, negative
correlation or no correlation between variables representing sales performance at
MOGAS Tanzania limited such as “increases the revenue, leads to more sales
volume quickly, builds long term profitability and strengthen relationship with
customers”.
Table 4.2 Correlations
Increases
the
revenue
Leads to more
sales volume
quickly
Builds long
term
profitability
Strengthen
relationship with
customers
Increases the revenue
Pearson
Correlation
1
.897**
.928**
.872**
Sig. (1-tailed) .000 .000 .000
N 80 80 80 80
Leads to more sales
volume quickly
Pearson
Correlation
.897**
1
.889**
.830**
Sig. (1-tailed) .000 .000 .000
N 80 80 80 80
Builds long term
profitability
Pearson
Correlation
.928** .889** 1 .904**
Sig. (1-tailed) .000 .000 .000
N 80 80 80 80
Strengthen
relationship with
customers
Pearson
Correlation
.872** .830** .904** 1
Sig. (1-tailed) .000 .000 .000
N 80 80 80 80
N 80 80 80 80
47
**. Correlation is significant at the 0.01 level (2-tailed).
The results were presented in a matrix such that, the correlations were replicated to
determine the Pearson correlation coefficient, its significance value and the sample
size that the calculation was based on. This result revealed that the Pearson
correlation coefficient, r =0.897, r=0.928 and r=0.872, and that is statistically
significant (p=0.000).
Discussion of the Pearson correlation results
A Pearson correlation was run to determine the relationship among the variable
denotes “leads to more sales volume quickly, builds long term profitability and
strengthen relationship with customers” were statistically significant (r =0.897,
r=0.928 and r=0.872, p=0.000). Therefore based on the findings obtained it can
concluded that the variable “increases the revenue, leads to more sales volume
quickly, builds long term profitability and strengthen relationship with customers”
were having statistically significant linear relationship (p=0.000). It can also be
concluded that the direction of the relationship among the identified variables
“increases the revenue, leads to more sales volume quickly, builds long term
profitability and strengthen relationship with customers” implying that these
variables tend to result together when advertisement influences the sales performance
of MOGAS Tanzania limited.
Therefore the magnitude or strength of the association/relationship is absolute strong.
In the line of the findings of study obtained, consistent result was obtained by
Aduloju, Odugbesan, and Oke (2009) stress that promotion in often cases leads to the
creation for the need for products/services thus leading to an increase in sales. To
establish a linear association between advertising and sales/revenue the buyer must
perceive the market mix as the right one Alongside the given result, Lewis and
Reiley (2008) observe that there is an association between advertising and sales since
the former helps in creating new markets and creating awareness and acceptance
about an item in the mind of the buyer.. The coefficient of the above correlation
analysis, which is (r =0.897) shows that there is positive correlation between
48
advertisement and sales performance at MOGAS Tanzania limited in terms of leads
to more sales volume quickly. This means that changes in advertisement will
correlate with changes on the sales performance of MOGAS Tanzania limited in
terms of Leads to more sales volume quickly, whereas the coefficient r=0.928 shows
that there is positive correlation between advertisement and the sales performance of
MOGAS Tanzania limited in terms of building long term profitability. This means
that changes in advertisement will correlate with changes on the sales performance of
MOGAS Tanzania limited in terms of building long term profitability, while the
coefficient r=0.872 shows that there is positive correlation between advertisement
and sales performance of MOGAS Tanzania limited in terms of Strengthen
relationship with customers. This means that changes in advertisement will correlate
with changes on the sales performance of MOGAS Tanzania limited in terms of
Strengthen relationship with customers.
Therefore it can be concluded that advertisement and sales performance of MOGAS
Tanzania limited are strongly correlated in terms of increases the revenue, leads to
more sales volume quickly, builds long term profitability and strengthens
relationship with customers. In addition, with regards to Sig (2-Tailed), conclusion
can be drawn that there is statistically significant correlation between advertisement
and sales performance of MOGAS Tanzania limited. In the line of the obtaining
study findings, the researcher sought to determine the extent in which advertisement
has enhanced sales of oil products at MOGAS Tanzania limited, whereby the
question was asked by way of interview method. This question was addressed by the
marketing manager of MOGAS Tanzania limited as indicated in the Box 1 below;
Box 1
Response: “From my working experience, I have observed that advertisement
influences the sales performance as it leads to the customers buying our products and
thus increasing the volume of sales and consequently profit is increased.”
customers.”
49
In connection to the response obtaining in the Box 1, the researcher sought to
determine the reasons as to why does MOGAS Tanzania limited needs to advertise
its products, whereby the question was asked by way of interview method. This
question was addressed by the marketing manager as indicated in the Box 2 below;
5.4 The extent to which advertisement relates with consumers’ behavior at
MOGAS Tanzania limited
The researcher sought to examine the extent in which advertisement relates with
consumers’ behavior at MOGAS Tanzania limited. The descriptive analysis were
conducted whereby the descriptive statistic results as indicated in the Table 4.3 were
obtained while showing the list of variables including “reinforces consumers’
decisions, increase of customers satisfaction, reinforces consumers’ attitude and
enhance consumers’ awareness” as variables showing the existing association
between advertisement and consumer behavior at MOGAS Tanzania limited.
Box 2
Response: “The reasons why our company needs to advertise its product is due
to the fact that, advertising enables to create awareness of the product or
services such as brand name and priceGiven the current business environment,
we strive to make sure the customers remain with our image at te top of their
minds.”
50
Table 4.3 Descriptive statistics
Source: Field data (2020)
The descriptive results in the table 4.3 indicate the description/comparison of means
and whereby the variable denotes “Reinforces consumers’ decisions” was little over
greater on average than Increase of customers satisfaction, enhance consumers’
awareness and reinforces consumers’ attitude. The variable denotes “Enhance
consumers’ awareness” was having an average of 4.8875, the variable denotes
“Reinforces consumers’ decisions” was having an average of 4.8250, the variable
denotes Reinforces consumers’ attitude was having an average of 4.7875, and while
the variable denotes “Increase of customers satisfaction” was having an average
4.5750.
While in the description/comparison of standard deviation the results indicate that
“Increase of customers satisfaction variable' had a standard deviation of 0.61160,
market penetration as a variable had a standard deviation of 0.41166 whereas
‘reinforces consumers’ decisions’ as a variable had a standard deviation of 0.38236
while ‘enhance consumers’ awareness variable had a standard deviation of 0.31797.
Therefore the variable denotes “Increase of customers satisfaction variable data is
having a higher standard deviation compared to the rest of variables, these results
entail that the “Increase of customers satisfaction” variable data is more spread out or
N Sum Mean Std. Deviation
Statistic Statistic Statistic Std. Error Statistic
Reinforces consumers’
decisions 80 386.00 4.8250 .04275 .38236
Increase of customers
satisfaction 80 366.00 4.5750 .06838 .61160
Reinforces consumers’
attitude 80 383.00 4.7875 .04602 .41166
Enhance consumers’
awareness 80 391.00 4.8875 .03555 .31797
Valid N (listwise) 80
51
dispersed than “reinforces consumers’ decisions, reinforces consumers’ attitude and
enhance consumers’ awareness”.
Correlation analysis
In the line of the result obtained by the descriptive analysis, the researcher also
sought to examine the relationship between advertisement and consumers’ behavior
at MOGAS Tanzania limited through the application correlation analysis technique.
The correlation analysis was conducted whereby the results as indicated in the Table
4.4 were obtained while showing how each variable correlate with the advertisement
while checking whether such relationship is either positive correlation, negative
correlation or no correlation between variables representing consumers’ behavior at
MOGAS Tanzania limited such as “reinforces consumers’ decisions, increase of
customers satisfaction, reinforces consumers’ attitude and enhance consumers’
awareness”.
The results were presented in a matrix such that, the correlations were replicated to
determine the Pearson correlation coefficient, its significance value and the sample
size that the calculation was based on. This result revealed that the Pearson
correlation coefficient, r =0.706, r=0.887 and r=0.773, and that is statistically
significant (p=0.000).
Discussion of the Pearson correlation results
A Pearson correlation was run to determine the relationship among “reinforces
consumers’ decisions, increase of customers satisfaction, reinforces consumers’
attitude and enhance consumers’ awareness” were statistically significant (r =0.706,
r=0.887 and r=0.773, p=0.000). Therefore based on the results obtained it can
concluded that “reinforces consumers’ decisions, increase of customers satisfaction,
reinforces consumers’ attitude and enhance consumers’ awareness” had statistically
significant linear relationship (p=0.000). It can also be concluded that the direction of
the relationship among the identified variables “reinforces consumers’ decisions,
increase of customers satisfaction, reinforces consumers’ attitude and enhance
consumers’ awareness” implying that these variables tend to result together when
52
advertisement influences consumer behavior at MOGAS Tanzania limited. Therefore
the magnitude or strength of the association/relationship is absolute strong.
In the line the findings obtained, consistent result was obtained in the study Nartey
(2010) further revealed that advertisement plays an important role in modern era as it
shapes the attitudes and perceptions of individuals and society, which strikingly
influences the customer buying behavior.
The coefficient of the above correlation analysis, which is (r =0.706) shows that there
is positive correlation between advertisement and consumers’ behavior at MOGAS
Tanzania limited in terms of the increase of customers’ satisfaction.
This means that changes in advertisement will correlate with changes of consumers’
behavior at MOGAS Tanzania limited in terms of increase of customers’ satisfaction,
whereas the coefficient r=0.887 shows that there is positive correlation between
advertisement and consumers’ behavior in terms of reinforces consumers’ attitude.
This means that changes in advertisement will correlate with changes on the
consumers’ behavior at MOGAS Tanzania limited in terms of Reinforces consumers’
attitude, while the coefficient r=0.773 shows that there is positive correlation
between advertisement and consumers’ behavior at MOGAS Tanzania limited in
terms of customer satisfaction. This means that changes in advertisement will
correlate with changes on the changes of consumers’ behavior at MOGAS Tanzania
limited in terms of customer satisfaction.
Therefore it can be concluded that advertisement and consumers’ behavior at
MOGAS Tanzania limited are strongly correlated in term of reinforces consumers’
decisions, increase of customers satisfaction, reinforces consumers’ attitude and
enhance consumers’ awareness. In addition, with regards to Sig (2-Tailed),
conclusion can be drawn that there is statistically significant correlation between
advertisement and consumers’ behavior at MOGAS Tanzania limited.
53
In the line of the obtaining study findings, the researcher also sought to determine
how efficient does advertisement affect the consumer’s behavior whereby the
question was asked by way of interview method. This question was addressed by the
marketing senior officer of MOGAS as indicated in the Box 3 below;
5.5 The extent to which advertisement relates with the promotion of the
brand of MOGAS Tanzania limited
The researcher sought to examine the extent in which advertisement relates with the
promotion of the brand of MOGAS Tanzania limited. The descriptive analysis were
conducted whereby the descriptive statistic results as indicated in the Table 4.5 were
obtained while showing the list of variables including “Builds brand recognition,
Enhance brand awareness, Advance brand loyalty and Develop brand reputation” as
variables showing the existing association between advertisement and promotion of
the brand of MOGAS Tanzania limited.
Box 3
Response: “Nowadays, advertisement is considered as one of the most message
medium to influence buying habit of the consumer, Alongside, I consider that an
efficiently advertisement can help any business to get on the road of success when it
attracts and retains the consumers with profit and this goal is achieved when company
builds a strong consumer perception for its product or service.”
54
Table 4.5 Descriptive statistics
N Sum Mean Std. Deviation
Statistic Statistic Statistic Std. Error Statistic
Builds brand recognition 80 366.00 4.5750 .09869 .88267
Enhance brand awareness 80 367.00 4.5875 .08092 .72380
Advance brand loyalty 80 376.00 4.7000 .06264 .56029
Develop brand reputation 80 370.00 4.6250 .06975 .62389
Valid N (listwise) 80
Source: Field data (2020)
The descriptive results in the table 4.5 indicate the description/comparison of means
and whereby “Advance brand loyalty” as a variable was little over greater on average
than “Builds brand recognition, Enhance brand awareness and Develop brand
reputation”. Advance brand loyalty as a variable was having an average of 4.7000,
“Develop brand reputation” as a variable was having an average of 4.6250, “Enhance
brand awareness” was having an average of 4.5875, and while “Builds brand
recognition” variable was having an average 4.5750.
While in the description/comparison of standard deviation the results indicate that
‘Builds brand recognition’ had a standard deviation of 0.88267, ‘Enhance brand
awareness’ as a variable had a standard deviation of 0.72380 whereas ‘Advance
brand loyalty’ as a variable had a standard deviation of 0.56029 while ‘Develop
brand reputation’ variable had a standard deviation of 0.62389. Therefore ‘Builds
brand recognition’ as variable data having a higher standard deviation compared to
the rest of variables, these results entail that the ‘Builds brand recognition’ variable
data is more spread out or dispersed than “Enhance brand awareness, Advance brand
loyalty and Develop brand reputation”.
Correlation analysis
In the line of the result obtained by the descriptive analysis, the researcher also
sought to examine the extent in which advertisement relates with the promotion of
the brand of MOGAS Tanzania limited through the application of correlation
55
analysis technique. The correlation analysis was conducted whereby the results as
indicated in the Table 4.6 were obtained while showing how each variable correlate
with the advertisement while checking whether such relationship is either positive
correlation, negative correlation or no correlation between variables representing the
promotion of the brand of MOGAS Tanzania limited such as Builds brand
recognition, Enhance brand awareness, Advance brand loyalty and Develop brand
reputation.
Table 4.6 Correlations
Builds brand
recognition
Enhance brand
awareness
Advance brand
loyalty
Develop brand
reputation
Builds brand recognition
Pearson
Correlation 1 .911** .916** .856**
Sig. (2-tailed) .000 .000 .000
Enhance brand awareness
Pearson
Correlation .911** 1 .908** .915**
Sig. (2-tailed) .000 .000 .000
Advance brand loyalty
Pearson
Correlation
.916** .908** 1 .905**
Sig. (2-tailed) .000 .000 .000
Develop brand reputation
Pearson
Correlation .856** .915** .905** 1
Sig. (2-tailed) .000 .000 .000
**. Correlation is significant at the 0.01 level (2-tailed).
The results were presented in a matrix such that, the correlations were replicated to
determine the Pearson correlation coefficient, its significance value and the sample
size that the calculation was based on. This result revealed that the Pearson
correlation coefficient, r =0.911, r=0.916 and r=0.856, and that is statistically
significant (p=0.000).
Discussion of the Pearson correlation results
56
A Pearson correlation was run to determine the relationship among “Builds brand
recognition, Enhance brand awareness, Advance brand loyalty and Develop brand
reputation” were statistically significant (r =0.911, r=0.916 and r=0.856,p=0.000).
Therefore based on the results obtained it can concluded that “Builds brand
recognition, Enhance brand awareness, Advance brand loyalty and Develop brand
reputation” are statistically significant linear relationship (p=0.000). It can also be
concluded that the direction of the relationship among the identified variables (Builds
brand recognition, Enhance brand awareness, Advance brand loyalty and Develop
brand reputation) implying that these variables tend to result together when
advertisement relates with the promotion of the brand of MOGAS Tanzania limited.
Therefore the magnitude or strength of the association/relationship is absolute strong.
In the line of the given findings, the consistent findings were obtained in the study by
Muthaly (2011) who found that brand commitment is built through advertising.
Commitment to brand leads to repetitive purchase of items by the current buyers. It
was further emphasized by Maity and Gupta (2016) that a number of factors such as
promotions, efficient individual selling, and direct marketing help to build brand
commitment. However, inconsistent results was obtain in the study by Fatima and
Lodhi (2015) by confirming that despite the fact that advertising leads to creation of
consciousness among the customers, it has failed to build strong views in the brains
of the buyers.
The coefficient of the above correlation analysis, which is (r =0.911) shows that there
is positive correlation between advertisement and the promotion of the brand of
MOGAS Tanzania limited in terms of ‘Enhance brand awareness’. This means that
changes in advertisement will correlate with changes on the promotion of the brand
of MOGAS Tanzania limited in terms of ‘Enhance brand awareness’, whereas the
coefficient r=0.916 shows that there is positive correlation between advertisement
and the promotion of the brand of MOGAS Tanzania limited in terms of ‘Advance
brand loyalty’. This means that changes in advertisement will correlate with changes
on the promotion of the brand of MOGAS Tanzania limited in terms of ‘Advance
brand loyalty’, while the coefficient r=0.856 shows that there is positive correlation
57
between advertisement and the promotion of the brand of MOGAS Tanzania limited
in terms of ‘Develop brand reputation’. This means that changes in advertisement
will correlate with changes on the promotion of the brand of MOGAS Tanzania
limited in terms of ‘Develop brand reputation’.
Therefore it can be concluded that advertisement and the promotion of the brand of
MOGAS Tanzania limited are strongly correlated in term of Builds brand
recognition, Enhance brand awareness, Advance brand loyalty and Develop brand
reputation. In addition, with regards to Sig (2-Tailed), conclusion can be drawn that
there is statistically significant correlation between advertisement and the promotion
of the brand of MOGAS Tanzania limited.
In the line of the obtaining study findings, the researcher also sought to determine
how advertisement contributes significantly in promoting the brand of MOGAS
Tanzania limited, whereby the question was asked by way of interview method. This
question was addressed by the marketing manager as indicated in the Box 4 below;
Box 4
Response: “With my professional experience in oil industry, advertising helps to
develop brand loyalty. Brand loyalty results in repeat purchases and favorable
recommendations to others by existing customers. On the other hand advertisement
contributes significantly in developing a good image our brand in the minds of target
audience.”
58
CHAPTER SIX
SUMMARY, CONCLUSION AND RECOMMENDATIONS
6.1 Introduction
This section presents a summary, conclusion and recommendations on the influence
of advertisement on the success of oil retailing industry in Tanzania taking MOGAS
Tanzania limited as a case study while based on the findings discussed in the
previous chapter.
6.2 Summary of the findings based on the research questions
6.2.1 Summary of the findings based extent in which advertisement relates
with the sales performance at MOGAS Tanzania limited
Based on the findings of the study, it can be summarized that the direction of the
relationship among the identified variables (increases the revenue, leads to more
sales volume quickly, builds long term profitability and strengthen relationship with
customers) implying that these variables tend to result together in representing the
magnitude of sales performance at MOGAS Tanzania limited. Therefore the
magnitude or strength of the association/relationship between advertisement and
sales performance at MOGAS Tanzania limited is absolute strong.
6.2.2 Summary of the findings based on the extent in which advertisement
relates with consumers’ behavior at MOGAS Tanzania limited
Based on the findings of the study as analyzed by descriptive analysis and correlation
analysis, it can be summarized that the direction of the relationship among the
identified variables “reinforces consumers’ decisions, increase of customers
satisfaction, reinforces consumers’ attitude and enhance consumers’ awareness” are
positive correlated implying that these variables tend to result together in
representing the magnitude of consumers’ behavior at MOGAS Tanzania limited.
Therefore the magnitude or strength of the association/relationship between
advertisement and consumers’ behavior at MOGAS Tanzania limited is absolute
strong.
59
6.2.3 Summary of the findings based on the extent in which advertisement
relates with the promotion of the brand of MOGAS Tanzania limited
Based on the findings of the study as analyzed by descriptive analysis and correlation
analysis, it can be summarized that the direction of the relationship among the
identified variables “Builds brand recognition, Enhance brand awareness, Advance
brand loyalty and Develop brand reputation” are positive correlated, implying that
these variables tend to result together in representing the magnitude of the promotion
of the brand of MOGAS Tanzania limited.Therefore the magnitude or strength of the
association/relationship between advertisement and the promotion of the brand of
MOGAS Tanzania limited is absolute strong.
6.3 Conclusion of the study
This section has condensed the study findings summarized and discussed from the
previous chapter respectively. The findings of the study were generally compared to
the earlier studies whereby consistency and inconsistency were acknowledged.
Future research opportunities and suggestions were discovered and argued with
respect to the findings of the study.
The study concluded that the direction relationship among the identified variables
“increases the revenue, leads to more sales volume quickly, builds long term
profitability and strengthen relationship with customers” are positive correlated in
representing the relationship between advertisement and sales performance at
MOGAS Tanzania limited. These results imply that there is a strong relationship
between advertisement and sales performance at MOGAS Tanzania limited.
The study concluded that the direction of the relationship among the identified
variables “reinforces consumers’ decisions, increase of customers satisfaction,
reinforces consumers’ attitude and enhance consumers’ awareness” are positive
correlated implying that these variables tend to result together in representing the
magnitude of consumers’ behavior at MOGAS Tanzania limited. Therefore the
magnitude or strength of the association/relationship between advertisement and
consumers’ behavior at MOGAS Tanzania limited is absolute strong.
60
The study concluded that the direction of the relationship among the identified
variables “Builds brand recognition, Enhance brand awareness, Advance brand
loyalty and Develop brand reputation” are positive correlated, implying that these
variables tend to result together in representing the magnitude of the promotion of
the brand of MOGAS Tanzania limited. Therefore the magnitude or strength of the
association/relationship between advertisement and the promotion of the brand of
MOGAS Tanzania limited is absolute strong.
6.4 Recommendations of the study
In the light of the summary of the findings of this study and the conclusion above,
the following are the recommendations drained from the study, which are put
forward with the view of the influence of advertisement on the success of oil
retailing industry in Tanzania taking MOGAS Tanzania limited. Among the efforts
that MOGAS Tanzania limited needs to consider in recognizing the influence of
advertisement on its business success in oil retailing industry in Tanzania include the
following;
6.4.1 Recommendations to the management of MOGAS Tanzania limited
By considering the findings of the study, it is recommended to the management of
MOGAS Tanzania limited that since there is significant relationship between
advertisement and sales performance, consumers’ behavior and with the promotion
of brand for MOGAS Tanzania limited then management of MOGAS Tanzania
limited needs to ensure that the influence of advertisement on the success of oil
retailing industry in Tanzania is being acknowledged.
MOGAS Tanzania limited should use other forms of adverting like sponsoring
events and use of mobile phone advertising. This will increase awareness about the
various products offered by the given company.
MOGAS Tanzania limited should choose the most effective media for advertising. A
media that is affordable by many people for example radios. MOGAS Tanzania
limited should use different common local languages used in the country so that
every individual can get the messages from the adverts.
61
E-marketing should also be used to reach most the people who spend time on the
internet and have no timer to listen to radios or watch televisions.
In view of the relationship existing between advertisement and sales performance of
MOGAS Tanzania limited, the study recommends to the MOGAS Tanzania limited
to understand that a well-advertised product is easier to be sold by the salesman in
the market. If a brand is popular and well-known, people respond favorably to the
salesman’s efforts. It provides a support to salesmanship, as the audience understands
the product and its uses more clearly through the advertisement and the salesman’s
effort is reduced to convince the buyers.
6.4.2 Recommendation for policy makers
Since the findings of this study would enlighten the policy makers in the oil industry
on regarding the influence of advertisement on the success of oil retail business;
therefore the policy maker needs to consider the results for this study in designing
appropriate policy for the adoption of advertisement by the companies dealing with
oil products business in Tanzania.
6.4.3 Recommendations for further research
This research study provides an opportunity for further research as they have been
identified from the presented and discussed research findings. However the
limitations of this study create a number of opportunities for further research
whereby the following areas for further research were discovered;
The researcher recommends that, since the study is the case study considering the
nature of scope and limited to only one company in oil industry in Tanzania, thus
MOGAS Tanzania limited, however the findings of the study will not be necessarily
applicable to the rest of the oil companies in Tanzania. Therefore more studies
should be conducted on the subject matter while taking a case of different oil
companies in order to compare/contrast if the findings obtained pertaining the same
study topic will be either consistent or inconsistent.
62
In addition to the given areas for further research, the researcher also suggests that
another study need to be conducted while focusing on exploring the effect of
advertisement on the consumer’s preference.
63
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APPENDICES
Appendix (i) Research questionnaire
Research questionnaires for the staff of MOGAS Tanzania limited
Dear respondent,
My name is Irene Kilahama a masters student with from Mzumbe University (Dar
es Salaam Campus) conducting an academic research on the “The Influence Of
Advertisement on the Success of Oil Retailing Industry in Tanzania: A Case
Study Of MOGAS Tanzania Limited”. This research is done in partial fulfillment
for the award of a Master of Business Administration in Corporate Management
(MBA-CM).
PLEASE NOTE: Your name should not appear anywhere in this document
Instructions on how to complete this form:
Where there is box in any question below, please choose the correct answer. Where
there are blanks, please fill in the blanks.
PART A: DEMOGRAPHIC INFORMATION
1. Your Gender;
a) Male.
b) Female.
2. Your Age;
a) 25-35.
b) 36-45.
c) 46 and above.
74
3. How long have you been working at Mogas Tanzania Limited?
a) Below 5 years.
b) 6- 10 years.
c) 11 -15 years.
d) 16 years and above.
PART B: Forms and types of advertising promotion adopted by MOGAS
Tanzania limited
4. Among the forms of advertising promotion indicated in the table below, which
form of advertising promotion is mostly used by MOGAS Tanzania Limited?
No. Forms of advertising promotions Tick ( )
1. Newspaper Advertising Promotions
2. Magazine Advertising Promotions
3. Radio Advertising Promotions
4. Television Advertising Promotions
5. Advertising Promotions in Directories
6. Online Advertising Promotions
75
PART C: The extent advertisement affects the sales performance at MOGAS
Tanzania limited
5. In what extent advertisement affects the sales performance at MOGAS Tanzania
limited
PART D: The extent in which advertisement relates with consumer behavior at
MOGAS Tanzania limited
6. Please show to what extent in which advertisement relates with consumer behavior
at MOGAS Tanzania limited
S/N Very
Large
Extent (5)
Large
Extent
(4)
Small
Extent
(3)
Very
Small
Extent (2)
No Extent
(1)
1. Leads to more sales volume
quickly
2. I Increases the revenue
3. Builds long term profitability
4. Strengthen relationship with
customers
S/N Very
Large
Extent (5)
Large
Extent
(4)
Small
Extent (3)
Very Small
Extent (2)
No
Extent
(1)
1. Increase of customers
satisfaction
2. Enhance consumers’
awareness
3. Reinforces consumers’
attitude
4. Reinforces consumers’
decisions
76
PART E: The extent in which the extent in which advertisement relates with
the promotion of the brand of MOGAS Tanzania limited
7. Please show to what extent in which advertisement relates with promotion of the
brand of MOGAS Tanzania limited
Please respond to all the items given below by putting a tick in the appropriate space
by using the scale range from 1 to 5, whereby 5 = Very Large Extent, 4 = Large
Extent, 3 = Small Extent, 2 = Very Small Extent and 1 = No Extent
Thank you very much for your cooperation and assistance in answering these
questions
S/N Very
Large
Extent (5)
Large
Extent (4)
Small
Extent (3)
Very
Small
Extent (4)
No
Extent (1)
1. Builds brand recognition
2. Enhance brand awareness
3. Advance brand loyalty
4. Develop brand reputation
77
Appendix (ii) – Interview guides
Interview guide for senior officers of MOGAS Tanzania Limited
Introduction
The purpose of the interview is to gather different views from heads of department
and senior officers at MOGAS Tanzania Limited regarding the Influence of
Advertisement on the Success of Oil Retailing Industry in Tanzania.
1. In what extent advertisement has enhanced sales performance in your company?
2. Why does your company needs advertise its products?
3. How efficient does advertisement affect the consumer’s behavior?
4. How does advertisement contributes significantly on the promotion of your
brand?