CHAPTER ONE

1.1Background of the study

Today‟s world is more turbulent, chaotic and challenging than ever before (Kanter, 1995). It is
not enough for a business to have good and quality products or services sold at appealing prices.
To generate sales and profits, the benefits of products have to be communicated to consumers via
different channels. In marketing, this is commonly known as promotion. A business‟ total
marketing communication program is called the promotional mix and consists of a combination
of advertising, personal selling, sales promotion, public relation and direct marketing (Kotler,
2012).The organization has to deliver the message about the product to its consumers through
well-organized marketing strategy. Of all the marketing tools, advertisement is an effective way
to influence the mind of viewers and gives viewers‟ exposure towards a particular product or
service (Katke, 2007).

Advertising is a component of promotional mix, which is used to create awareness about

products and services for influencing purchase decisions. Marketers use these types of tools for
communication Purposes. Nowadays, advertising has become one of the crucial commercial
activities in the competitive globalized business environment.

According to Arens (2005), advertising is a form of communication intended to convince an

audience (viewers, readers or listeners) to purchase or take some action upon products,
information or services.

The American Marketing Association has defined consumer behavior as, “the dynamic
interaction of affect and cognition, behavior and the environment by which human beings
conduct the exchange aspects of their lives.” Peter (1995) expressed consumer behavior as,
“…..the actions and decision processes of people who purchase goods and services for personal
consumption. According to Morris (1998), consumer behavior has two aspects: the final
purchase activity which is visible to us and the decision process which may involve the
interaction of a number of complex variables not visible to us. As a matter of fact, purchase
behavior is the end result of a long process of consumer decision-making (Duffy, 2005).
According to Folkes (1984), the term consumer is used for both personal consumers and
organizational consumers and represents two different kinds of consuming entities.

Advertisement has become one of the most crucial commercial activities in the modern
globalized and digitalized environment. Companies allocate large part of their budget to execute
and run advertisements to communicate information about their services and products.
Companies hope that consumers will purchase their products as a result of advertisements, which
deliver messages about a certain brand and products. McDaniel (1998) stated that the best
prophet for purchase is advertising. Technologies advance rapidly day by day, contributing to the
constant renewal of and changes in broadcasting forms. Among those forms, advertising media is
widely used. Advertisements are a kind of persuasive communication that offers product
information to every consumer via institutions in charge of production or supply. In a complete
study of marketing and promotional activities, advertising usually plays the most important role
(Arens, 1996).

The country has been in building boom for some time now tall buildings, including Real Estate is
rising in many places especially in the capital city, Addis Ababa. Recently Addis Ababa was
recognized as one of the top 10 destination cities in the world that tourists are interested to visit.
Due to this reason demand for different items and the purchasing power of the citizens is
increasing. Consequently different types of firms are competing to obtain their target customers‟
attention. Accordingly, most of the firms use advertisement as an important marketing tool to
survive in this competitive environment. One of these firms is NSPF. NSPF manufactures and
markets paints. The company‟s products include paints, varnishes, and lacquer.
Paints industry is mainly categorized as decorative/ architectural paints and industrial paints
sectors. Decorative paints are used mainly for painting interior and exterior of houses, office
buildings, and factories. Industrial paints include automotive paints, marine paints, protective
paints and special purpose coatings. On the ground of rapidly increasing demand for the
decorative paints in consequence of increase in building, shelter and other governmental and

private constructions, the decorative paints industry is competitively growing today. On account
of this preferable situation, the Nifas Silk Paint Factory focuses to offer user friendly and
environmental friendly decorative paints.
The current study focuses on the characteristics of advertisement being practiced in NSPF that
has an effect on consumers buying behavior. At the end of the research, the results will suggest
the best mix of advertisement package, the basic and details of consumers buying behavior, the
ability on how the managerial employees of the organization attract and influence their
consumers. Furthermore, this study will assess the effect of advertising on consumers buying
behavior in case of NSPF.
1.2 Statement of the Problem

In today‟s competitive and volatile environment all marketers including paint manufacturing
Companies communicate with their target markets through advertising (Mittal & Pachauri,
2013).
According to Mittal and Pachauri (2013), the way of their communication and the information
Contained in the advertising is not strong enough and pertinent enough to attract the attention of
The consumers. Since the information is too weak or too irrelevant, the advertising has no
chance
Of having an effect on consumers‟ buying behavior of their products or services.
Advertising must be consistent enough so that it will be accepted and bring an effect on
Consumers‟ buying behavior when judged against information previously processed and held in
Long – term storage (Schultz & Tannenbaum, 1988).

According to Beccera and Gupta (1999), advertising is also part of the total cost of a firm,
Although it is different compare to production cost and selling cost. Nonetheless, advertising
cost
Is taken as part of the selling and distribution expenses, which implies that it increases the cost of

Production of the firm in modern business. In addition, if advertising escalates production cost
why and how are firms still engaging in this practice? These issues will be analyzed and
Investigated in this research.
Advertising is costly; often its effects are uncertain, and sometimes it takes a while before it
Makes any impact on consumers‟ buying behavior. It is for these reasons that many companies
Think it appropriate, occasionally to reduce expenditures on advertising or to entirely eliminate
it.
On the other hand, some companies sometimes consider it unnecessary to advertise when their
Brands are already enjoying great success without advertisement. Such behavior implicitly fails
to consider the fact that advertising is not just a current expense or mere exercise but an
Investment.
As companies are spending large amount of investment on the advertisement because they want
To keep their product at the top of the customer‟s mind. Advertisement has proven to be a
Successful tool for the communication but companies are still in the confusion that what kind of
Ingredients should be there and how do these advertisements will help to change the consumer
Buying behavior.
Several related studies have been conducted on this area but most of studies concentrated on
Advertisements in general. Farashah (2011) researched on the impact of advertisement in
Manufacturing company, Kumar (2003) researched on the role of advertising in consumer
Decision making, while Raju (2002) researched on the impact of advertisement on consumer
Behavior. Moreover, the above studies focused on different organizations but none got to deal
with the effect of advertisement on consumers buying behavior in case of Nifas Silk Paints
Factory. The paint Industry and market is an essential market because we all identify with it. All
Buildings we find shelter in have paint without and within them hence it is necessary to shed
Light on this market.
Hence, the proposed study is attempted to address the knowledge gap by describing advertising
Characteristics (Impressive, Simple to Understand, Attention Grabbing, Memorable, Creative
and
Honest) which have an effect on consumers buying behavior in case of Nifas Silk Paints Factory
(NSPF)

1.3 Objectives of the study

Essentially, this research aspires to study the topic through reviewing related articles and also by
Getting the perceptions of knowledgeable individuals regarding the topic through surveys. These
Individuals are the consumers/customers of products and services offered by NSPF.
The major objective of this study is to observe and determine the effect of advertising on
Consumer buying behavior.

Specific objectives
1. To find out which advertisement media has more influence on consumers buying
Behavior.
2. To ascertain the direct relationship between advertising characteristics and consumers
Buying behavior: and
3. To investigate how advertising characteristics affect consumers buying behavior.
1.4 Research Questions
1.4.1. The main Research Question
Does Advertising affect consumer buying decision?
1.4.2. Sub-Research Questions
1. Which advertisement media has more influence on consumers buying behavior?
2. Do advertising characteristics have direct relationship with consumers buying behavior?
3. How do advertising characteristics affect consumers buying behavior?

1.5. Significance of the study

This research attempted to identify its significance to: The Company, Academics and the
Researcher.
This study would describe the effect of advertisement variables that influence the buying
Decision of NSPF consumers. Understanding of variables such as whether the advertisement is
Impressive, Simple to Understand, Attention Grabbing, Memorable, Creative, Honest by the
Target customers would help further understanding, how these variables affect the decision
Making of consumers. It would help NSPF marketing department to better reposition its
Advertising strategy, to capture the target market and to boost sales over times. The study is
Expected to improve the advertising and promotional strategies of the investigated organization
by providing practical information about core advertisement issues. The findings of this study
Will contribute and complement the already existing knowledge and literature on the relationship
Between advertisement and consumers buying behavior.

1.6. Scope of the study

This study considers the following advertising characteristics as a measure of Effect on
consumers buying behavior: namely advertisement being Impressive, Simple to Understand,
Attention Grabbing, Memorable, Creative and Honest.
As it is mentioned earlier there are different types of media for delivering advertisement
Advertisements. Currently, the users of NSPFs product distributed throughout the country, but
This study only targets those buyers with in Addis Ababa.
1.7 Organization of the study
The paper has been organized in chapters. Chapter one consisted of introduction, Chapter two
presented review of related literature, Chapter three included methodology, chapter four data
analysis interoperation part and chapter five contains conclusion and recommendation part of the
research paper.
 CHAPTER TWO
REVIEW OF RELATED LITERATURE

2.1 Introduction
In the early 20th century, psychologists Walter D. Scott and John B. Watson contributed Applied
Psychological theory to the field of advertising. Scott asserted that “Man has been called the
Reasoning animal but he could with greater truthfulness be called the creature of suggestion. He
is reasonable, but he is to a greater extent suggestible” (Benjamin & Baker, p. 119-120). He
Demonstrated this through his advertising technique of a direct command to the consumer. The
Former chair at Johns Hopkins University, John B. Watson was a highly recognized psychologist
In the 1920s. After leaving the field of academia he turned his attention towards advertising
Where he implemented the concepts of behaviorism into advertising. This focused on appealing
To the basic emotions of the consumer: love, hate, and fear. This type of advertising proved to be
Extremely effective as it suited the changing social context which led to heavy influence of
future
Advertising strategy and cemented the place of psychology in advertising.
In the late 19th century the advertising agency of N.W. Ayer & Son was instituted. Ayer and Son
Offered to plan, create and carry out full package of advertisement for its customers. By 1900 the
Advertising agency had become the focal point of creative planning and advertising was firmly
Established as a profession. Around the same time, in France, Charles-Louis Havas diversified
The services of his news agency, to include advertisement brokerage, making it the first French
Group to organize. At first, agencies were brokers for advertisement space in newspapers. N. W.

Ayer & Son was the first full-service agency to assume responsibility for advertising content.
N.W. Ayer opened in 1869, and was located in Philadelphia USA (Brassington, 2001).
2.2. Models of Advertisement
Though there are several models of advertisements just two models are reviewed in detail for the
purpose of this study.
2.2.1. AIDA Model
The AIDA model produces a detailed illustration about the entire procedure of how advertising
effects consumer behaviour and the purchase decisions. It is an acronym, which consists of the
factors of attention, interest, desire and action, all of them relevant to the relationship between
consumer behavior and advertising. The first element, that is attention, describes the stage in
which the brand manages to gain the attention of the consumer through the advertisement that
he/she has come into contact with. Organizations creating attention, interest, desire, and
attraction of their products in the market using appropriate channels of communication to reach
the mass market are thus stimulating demand of existing and new products in the market. They
all have three general stages in common, even though the amount or names of sub-stages might
differ: cognitive stage (what the receiver knows or perceives), affective stage (receiver's feelings
or affective level), behavioral stage (consumer's action) (Aaker and Joachimsthaler, 2000).
According to Colley (1984) one of the earliest models was AIDA: (Attention, Interest, Desire
and Action). This model is also called DAGMAR, an abbreviation for designing goals for
measured results. This model will be designed under four interrelated stages of communication:
awareness, comprehension, conviction and action. Colley said that this model describes a
learning process by which consumers‟ progress through a series of predetermined functions to
complete the purchasing process. The model assumes that a purchase will only be made when all
the steps have been completed. The authors contend that the model is dynamic where each single
step in the sequence depends upon the preceding step. The steps of hierarchy of AIDA Model are

Awareness
It is the first step of hierarchy of AIDA model, where people get awareness about products. At
this stage, advertisers introduce their products, services and information about the usage of
products. Initially, advertisers create awareness about products in their target market and its
benefits to use (Baca et al., 2005). According to Ashcroft and Hoey (2001) awareness is the
cognitive stage to attract customers and is the first step of communication process.
Interest
Advertisement of a product or service is run with the aim to create interest among target viewers
because creating interest is the priority of advertisers (Rowley, 1998; Broeckelmann, 2010).
Continues buying of a particular product shows consumers‟ interest (Ghirvu, 2013).
Pharmaceutical companies, for example, often invest to create products interest in target market
with aggressive sales force which attempts to motivate customers for further query (Baca, 2005).
Desire
It is the third step of hierarchy of AIDA model that deals with the aspiration of target customers
to buy a product or service. From advertising view point, desire is said to be the intense level of
wanting a product. Creating desire is the precedence of advertisers, where they explain the
features and benefits of their products that how much value you have here (Richardson, 2013).
At this level, advertisers try to give greater exposure of a product to the customers (Rowley,
1998).
Action
At the fourth level of hierarchy of AIDA model action on the part of a customer is taken i.e.
actually purchasing a product or service. At this stage, customers are ready to pay for the
products to fulfill their intense desire for a particular product or services. A number of incentives
offered may persuade a customer to take action (purchase). For example discounted prices often
entice customers to take action i.e. buy something (Rawal, 2013). As mentioned by Ashcroft and
Hoey (2001) action is the behavior stage involving actual purchasing. According to Hoyer and
Macinnis (2009) effective advertising creates positive feelings that lead to actual purchase of
advertised products. Awareness
It is the first step of hierarchy of AIDA model, where people get awareness about products. At
this stage, advertisers introduce their products, services and information about the usage of
products. Initially, advertisers create awareness about products in their target market and its
benefits to use (Baca et al., 2005). According to Ashcroft and Hoey (2001) awareness is the
cognitive stage to attract customers and is the first step of communication process.
Interest
Advertisement of a product or service is run with the aim to create interest among target viewers
because creating interest is the priority of advertisers (Rowley, 1998; Broeckelmann, 2010).
Continues buying of a particular product shows consumers‟ interest (Ghirvu, 2013).
Pharmaceutical companies, for example, often invest to create products interest in target market
with aggressive sales force which attempts to motivate customers for further query (Baca, 2005).
Desire
It is the third step of hierarchy of AIDA model that deals with the aspiration of target customers
to buy a product or service. From advertising view point, desire is said to be the intense level of
wanting a product. Creating desire is the precedence of advertisers, where they explain the
features and benefits of their products that how much value you have here (Richardson, 2013).
At this level, advertisers try to give greater exposure of a product to the customers (Rowley,
1998).
Action
At the fourth level of hierarchy of AIDA model action on the part of a customer is taken i.e.
actually purchasing a product or service. At this stage, customers are ready to pay for the
products to fulfill their intense desire for a particular product or services. A number of incentives
offered may persuade a customer to take action (purchase). For example discounted prices often
entice customers to take action i.e. buy something (Rawal, 2013). As mentioned by Ashcroft and
Hoey (2001) action is the behavior stage involving actual purchasing. According to Hoyer and
Macinnis (2009) effective advertising creates positive feelings that lead to actual purchase of
advertised products.

2.3. Concept of Consumers Buying Behavior

According to Zaltman (2003), marketing researchers involved in studying the buying behavior of
consumers soon appreciated the fact that though there were many similarities, consumers were
not all alike. There were those who used products currently in style while many consumers did
not like using “me too” types of products and showed a preference for highly differentiated
products that they felt met their special needs and reflected their personalities and lifestyles.
These findings led to the development of the market segmentation concept, which required
dividing the total heterogeneous but potential market into relatively smaller homogenous groups
or segments for which they could design a particular marketing mix. They also used positioning
techniques and developed promotional programs to vary the image of their products, so that they
were perceived as a better way to satisfying the specific needs of certain segments of consumers
(Bearden, 1999).

2.4. Models of Consumer Behavior

There are also various consumers‟ models which help us in the understanding of consumer
behavior. According to Berkman (1986), there are two types of consumers‟ model.
Traditional Models: Economic, Learning, Psychological and Sociological.
Contemporary Models: Howarth Sheth, Engel-Blackwell-Kollat and Nicosia. Since the
modes are very broad, few of them will be reviewed in this study based on their relevance
to the study.
2.5. Advertisement Media
Morden (1991) holds that the medias for advertisement can be classified into the following four
categories: namely print; electronic or broadcast; outdoor and others media advertising. Based on
their relevance to the study, few of them will be reviewed in this research.
2.5.1. Print Media Advertising
The print media consists of Newspapers, Magazines, Journals, Handbills and etc. No newspaper
or, journal, today, can survive without advertisement revenue. Print media advertising, even
today, is the most popular form; and revenue derived by mass media from advertising has,
therefore, been progressively increasing year after year. Print media appeals only to the sense of
sight, i.e. eyes.
2.5.2. Electronic or Broadcast Media Advertising
Electronic or Broadcast Media consists of Radio, Television, Motion Pictures, Video and
Internet. The radio is audio in nature, attracting only to the sense of sound (ears). Radio
advertising is more effective in rural areas, as compared to urban regions. Television, as an
advertising medium, is more attractive and effective because it is an audio-visual medium
appealing to both the senses of sight sound (eyes and ears). Different methods, such as, spot
announcements; sponsored programs and etc. are used for broadcasting advertising messages.
However, broadcasting media are very expensive form of advertising. Advertising is also
undertaken via movies, video and internet.

2.6. The Influence of Ad. Media on Consumers Buying Behavior

Muhammad (2014) conducted a study on the impact of consumer perception and advertisement
on consumer buying behavior. The study was conducted in Pakistan. 150 questionnaires were
distributed to randomly sampled respondents. The study found out that advertisement had strong
positive impact on consumer buying behavior. It was also found that quality advertisement and
positive perception can really play virtual role in improving consumer buying behavior.
Niazi (2011) studied on the effective of advertising and its influence on consumer buying
behavior. The study was conducted in Pakistan. The methodology used was quantitative
technique. 200 questionnaires were distributed and probability sampling was used in a sample for
data collection. The findings of the study revealed that there is huge relationship between
advertisement and consumer buying behavior. It also established the relationship between
environmental response and consumer buying behaviors. According to the study, consumers are
buying products which they see in advertisement more than emotionally.
2.6.1. Influence of Television AD on Consumers Buying Behavior
Katke (2007) conducted a case study to find the impact of television advertising on child health
and family spending. A result shows that advertisements change the direct habit and lead to
violent behavior of children. It creates a stress on the parents and hits the family budget. The
study has revealed the positive co-relationship between time spent with television but the adverse
effect on children and family.
Bishnoil and Sharma (2009) in their study aimed to find the background of the consumer and TV
advertising influences the buying behavior. Teenagers from both the genders from on urban and
rural were used for study. Taking gender, age, education, annual income as determinants,
ANOVA, percentage analysis, means counts were analyzed to conclude that rural teenagers
prefer advertisements than their urban people. The urban teenagers watch the advertisements of
the products they believe are useful and good. Advertisements influence on male purchase
behavior than female consumers.

Yousaf and Shehzad (2013) studied the effect and influence of TV commercials over illiterate
and literate people of Pakistan. Findings shows that illiterate spend more than 2hrs per day of TV
commercials and literate watch less than 2hrs per day. With regard to content watching 70% of
literates prefer content in TV commercials and 68% of illiterates likes content. It is found that
illiterates are behaviorally influenced whereas literates are psychologically influenced. Not all
the literates believe in the message conveyed in the advertisements are true so they don‟t try all
products listed in TV. But illiterates believe in the content and try to buy those products.
Television advertising is most effective means of communication. This is because it has an
audio-visual impact (Stone, 1982). With catchy slogans, song and dance sequences, famous
personalities exhibiting products, TV advertising has a lasting impact. With the varieties of
channels and programmers, advertisers have a lot of choice to select the channel and time to
advertise. With regional channels coming up, any person even illiterates can watch the
advertisements and understand them by seeing and hearing. Arshad (2014) studied on the impact
of effective advertising on consumer behavior. The study was conducted in seven cities in
Pakistan. It used probability sampling of 300 respondents. The study found that TV advertising is
more persuasive than other advert to convince customer to buy product because it shows and
makes perception to consumer.
2.6.2. Influence of Newspaper AD on Consumers Buying Behavior.
Bansal and Gupta (2014) studied on the impact of newspaper advertisement on consumer
behavior. The study selected a sample 1017 advertisements from different English newspapers
which appeared recently in 6 weeks. The study found that many advertising in newspapers were
informational and they were perfect in convincing consumer to buy store products.
Print media is a very commonly used medium of advertising by businessman. It includes
advertising through newspaper, magazines, journals and the like and it is also called press
advertising. Newspapers are included in paper print out which are published in English or
Kiswahili. These are the sources of news, opinions and current events (Mc Quails, 2005). In
addition, Newspapers are also a very common medium of advertising.

The advertiser communicates his or her message through newspaper which reaches to millions of
people. According to Stone (1982), the advantages of newspaper stem from having wide
circulation and a single advertisement in the newspaper can quickly reach to a large number of
people. The cost of advertising is relatively low because of wide publication. Generally,
newspapers are published daily. Thus, the same advertisement can be repeated frequently and
remind a reader every day. The matter of advertisement can be given to newspaper at a very
short notice.

2.6.3. Influence of Radio AD on Consumers Buying Behavior

The creative strategies used in radio commercials are different and advertising firms adjust their
communication strategies in response to the specific needs of different consumers. The Central
Place theory advocates that products with higher price and lower buying frequency influence
positively the perception of consumer on the promotional communication of stores delivered
through the radio programs and outdoor advertising (Hubbard, 1978; Yadav, 1994). The
perception of radio as an intimate medium of communication during the non-availability of
visual media profoundly affects the way people consider listening to radio programs including
commercials, perform information analysis, and make applied decisions. The localized
commercials on radio keep consumers also aware about the market movements (Sauls and Greer,
2007). Radio advertisements influence listeners on all days of the week and at the time of work.
The positioning of advertisements on radio is precise and well-targeted to consumer segments
which drive higher response among listeners (Verhoef, 2000). Advertisements on radio target
audiences along age, gender and ethnic lines and mobilize excitement and gender sensitivity as
persuasive techniques to promote products and services during working hours with the view that
access to commercial information is a “new cool-tier" of the entertainment industry (Van Guijel,
2008).
Consumer products companies use radio for campaigns more than television, as precision and
effectiveness of message is possible by more meticulously targeted radio advertisements than
broadcast over the visual media (Overby and Barth, 2006). In developing countries the radio
advertisements enhance the pleasure of entertainment as well as serve as source of current

market information. It is observed that short-term effect of radio advertisement towards

storelevel
promotions and store choice is significant, though choice is mainly driven by loyalty.

2.6.3. Influence of Radio AD on Consumers Buying Behavior

The creative strategies used in radio commercials are different and advertising firms adjust their
Communication strategies in response to the specific needs of different consumers. The Central
Place theory advocates that products with higher price and lower buying frequency influence
Positively the perception of consumer on the promotional communication of stores delivered
Through the radio programs and outdoor advertising (Hubbard, 1978; Yadav, 1994). The
Perception of radio as an intimate medium of communication during the non-availability of
Visual media profoundly affects the way people consider listening to radio programs including
Commercials, perform information analysis, and make applied decisions. The localized
Commercials on radio keep consumers also aware about the market movements (Sauls and
Greer,
2007). Radio advertisements influence listeners on all days of the week and at the time of work.
The positioning of advertisements on radio is precise and well-targeted to consumer segments
Which drive higher response among listeners (Verhoef, 2000). Advertisements on radio target
Audiences along age, gender and ethnic lines and mobilize excitement and gender sensitivity as
Persuasive techniques to promote products and services during working hours with the view that
Access to commercial information is a “new cool-tier" of the entertainment industry (Van Guijel,
2008).
Consumer products companies use radio for campaigns more than television, as precision and
Effectiveness of message is possible by more meticulously targeted radio advertisements than
Broadcast over the visual media (Overby and Barth, 2006). In developing countries the radio
advertisements enhance the pleasure of entertainment as well as serve as source of current
market information. It is observed that short-term effect of radio advertisement towards
storelevel
promotions and store choice is significant, though choice is mainly driven by loyalty.
2.7. AD Characteristics and Consumers Buying Behavior
In this sub section the researcher will review the relationship between advertisement and
consumers buying behavior. As per the above sections of literature, one can understand the
strong relationship between advertisement and consumers buying behavior. The advertising has a
foremost and vital effect on purchasing behavior of consumers. If an advert is effective enough
to impress, the viewer will be more willing to pay attention to it and is less likely to avoid the
advert the next time it is shown (Biel, 1990); therefore it will get more exposure, because of the
positive first impression.
2.7.1. Relationship between Impressive AD and Consumers Buying Behavior
According to Prabakaran (2012), buying begins in the mind. If you don‟t impress the buyer‟s
mind, you won‟t capture his or her money. He concluded that the primary task of advertisement
is to distinguish the product advertised, attract the customer‟s attention and impress them to buy
the product. Impressive advertisement creates demand. It makes customer aware of the price and
attributes of the product leading to greater sales. Such kind of advertisement brings customers
and sellers together. Moreover, it also persuades and informs the masses. This information can
be about the product features, style, value, price and availability. In addition to this, impressive
advertising bring attitudinal changes in the minds of the consumer. His or her emotions are
torched and played with the feelings of likes and dislikes towards the object and this leads to
action (i.e. purchase).
Clave (2014) associated the satisfaction levels of those newspapers readers who said they give
attention to print news content and print advertising with several active purchase decisions taken
by them. A discriminate analysis executed with the data collected allows for the conclusion that
people who were inspired to purchase after reading local newspapers and paying attention to
print ads were motivated mainly by the impressiveness and attractiveness of the deal offered in
the ad, the level of influence exerted by the newspaper where the ad is run, and the level of the
quality of information provided by the news outlet. Therefore, this study will provide robust

evidence of the strong relationship between impressive and attractive advertisement and its
commercial role towards influencing consumers purchase intent.
2.7.2. Relationship between Understandable AD and Consumers Buying Behavior
Advertisement should not be complex. The more complex the advertisement is, the more
difficult will be the advertisement to understand and remind & vice versa. Adeolu (2005)
recommend firms should develop more effective advertising campaign that attracts consumer‟s
attention and capture their interest. At this stage the company‟s advertising messages should be
simple to understand and interpret. The simplicity of the advertisement leads to impart the
information to the consumers so that they are well informed and can make a good choice. The
advertisement should be conveyed in such a way that, knowledge about product specification,
features, quality and function should comprise briefly. For this study the researcher followed and
analyzed different kinds of advertisement on Medias. For example, the advertisement of Coca -
Cola was very creative as well as simple to understand. I hope the readers of this paper could
agree with this.
Wang (2002) brought some implications to various stakeholders in Malaysia. The implications
can be divided into two categories: theoretical and managerial implications. In terms of
theoretical implication, the research re-affirms the notion that the determinants of consumers‟
attitude towards advertising can be applied in a highly regulated media environment. In terms of
managerial implication, the findings do provide some insights and feedback for administrators of
media industry in drafting various advertising strategies on how to increase the favorable
consumers‟ attitude towards advertising. As part of the efforts to create favorable consumers‟
attitude, some strategies proposed which includes: First of all checking the sources of
advertisement are credible, trustworthy and believable; Second keeping the advertising message
informative, customer oriented, simple to understand and up to date; Third integrating the
elements of fun, excitement, surprises, creativity and pleasure in the advertisement messages and
lastly emphasizing the concept of „made in Malaysia‟ to evoke the feeling of partnership in

helping the nation grow economically building positive image. In my opinion the last strategy
should be scale up in our country especially to those import and export business firms. Since our
attitude to “Made in Ethiopia” is very poor.
Therefore, the following alternative (a) hypotheses will pertain to this study:
There is a positive and statistically significant relationship between understandable
advertisement and consumers buying behavior.
2.7.3. Relationship between A. Grabbing AD and Consumers Buying Behavior
According to Gary (1999) “humans are visual animals.” He also further stated that our vision is
the sense we rely on most. This kind of biological scenario is not accident, rather it has
developed over tens of thousands of generations. Our eyes are attracted to pictures far more than
to words.
Prabakaran (2012) sated that people like advertisement of the products and believe that the
quality of the product is as good as expected from the advertisement. This study suggests that the
promotional strategy through television advertisement is made a significant and positive impact
on consumers buying behavior. TV advertisement has enhanced their involvement in purchase
and experiment with different or new products.
According Adeolu (2005), many consumers did not buy whatever is available or affordable. If a
product is good value for its price, it will command brand loyalty. However, advertising helps in
projecting product quality, affordability and value before the consumers. Moreover, the authors
recommend the following important points. First, research continuously into quality
improvement that will make consumers enjoy good value for money paid to purchase the brand.
Second, develop more effective advertising campaign that attracts consumer‟s attention and
capture their interest. At this stage the company‟s advertising messages should be simple to
understand and memorable. The messages must be strong and creative enough to attract and
build brand preferences, encourage switching to the company‟s brand by changing the
perception of the consumers of rival brands the product.
Therefore, the following alternative (a) hypotheses will pertain to this study:

There is a positive and statistically significant relationship between attention grabbing

advertisement and consumers buying behavior.
2.7.4. Relationship between Memorable AD and Consumers Buying Behavior
Dholakia (2001) suggested that, in order to be effective, an advertisement has to be memorable
for the viewer. If the viewer does not remember the ad after viewing it, the company sponsoring
the ad is simply wasting time and money. With an effective advertisement, the viewer should be
able to clearly recall what happened during the course of the ad, and more importantly, which
product is being advertised. That recall is the trademark of an effective advertisement.
Advertisements need to stick in the brains of customers. Brassington and Pettitt (2001)
recommend to firms about how ad should be memorable: “you want customers to remember your
ads so they remember your business. Strive to create extraordinary pieces for your marketing so
you stand out from other, similar companies”.
Memory phenomena have long occupied a central place in thinking about the process and effects
of advertising. The various hierarchies of effects models that have been proposed to represent the
mental stages consumers pass through in response to advertising all acknowledge the role of
memory (Ray, 1973).
According to R. Kahn (2011), when the sales volume of any product increases, it is because the
consumer is aware and believes about the product's value and this point is accomplished through
efficient advertisement about product. Metha (2000) also indicated when a company participates
in generic advertising programs; it has a significant impact on firm‟s market performance.
Therefore, the following alternative (a) hypotheses will pertain to this study:
There is a positive and statistically significant relationship between memorable
advertisement and consumers buying behavior.

2.7.5. Relationship between Creative AD and Consumers Buying Behavior

According to Poona Sharma (2012), there should be an element of creativity in an advertisement.
This creativity is to create something new, unique, extremely attractive and appealing to the
consumers. In fact, advertising itself is a creative process. Creative advertisement leads to
innovation. It encourages innovation and new product development and reduces the risk of the
product becoming obsolete. With more innovation there are more sales which offset the cost of
innovation. Innovation leads to more sales and business expands. More employment is generated
and the people become more prosperous and their standards of living improve. An effective ad
will inform the consumer about the product or service you have to offer, but that advertisement
also need to be creative so that it can capture attention. Capturing the attention of the consumer is
essential for an effective ad, and the more creative you can make that ad the more effective it can
be.
Therefore, the following alternative (a) hypotheses will pertain to this study:
Ha5: There is a positive and statistically significant relationship between creative advertisement
and consumers buying behavior.
2.7.6. Relationship between Honest AD and Consumers Buying Behavior
According to Schulz (1990), trust is a state of certainty, “a middle state between knowing and
not-knowing”. M. Bansal and S. Gupta (2014) on their Global Journal of Finance and
Management focused on the impact of informational content within the newspaper on consumer
behavior. The impact of newspaper advertisement assessed from the fact that advertisements
with more trusted (honest) content were found to influence more customers than advertisements
with biased informational content. The impact of logical informational content and its probability
of being liked by a consumer were greatest especially for electronics and durable goods. The
amount of information present was found to be independent of the size of the advertisement.
Thus, it can be understood that commercials of different products employ different advertisement
strategy to motivate their customers and such a data can be helpful in obtaining its impact on the
customers not only for newspaper advertisement but for all other forms of advertisements.

Therefore, the following alternative (a) hypotheses will pertain to this study:
Ha6: There is a positive and statistically significant relationship between honest advertisement
and consumers buying behavior. Therefore, the following alternative (a) hypotheses will pertain
to this study:
Ha6: There is a positive and statistically significant relationship between honest advertisement
and consumers buying behavior.
2.8. Research Gap
After observing such relevant studies, it can be concluded that many researchers examined and
studied different aspects of advertising and its effect on consumer‟s buying behavior. However,
there are some considerable contradiction among the previous works and theories of science.
Many researchers have studied their work in their own contextual scenarios. This study
emphasizes on the consumer‟s behavior of growing cities like Addis Ababa by considering
NSPF.
Most of the previous works agree advertisement is a must and should be a continuous activity. It
boost market share in addition to the profit maximization. Some of the scholars indicate the
effect of advertisement on its implications to managerial activities and they tried also to propose
strategies that create favorable consumers attitude.
Now based on the above literature review, the following research gap is observed. Based on the
category of consumers, there are two types of consumers, namely individual and organizational
consumers. But most of the studies consider only individual consumers. As it is mentioned
earlier there are different types of media for delivering advertisement messages, however, they
failed to mention the main features of advertisement that have more effect on consumers buying
behavior.
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1. Research Approach

The study chose quantitative research to describe the effect of advertising on consumers buying
behavior by collecting quantitative data from consumers of the NSPs

3.2. Research Design

This study collects data on the effect of advertisement on consumers buying behavior. So the
researcher used descriptive research for his purpose.

3.3. Data types and Data sources

The main source for this study will be primary data source. Primary data will be sourced through
customer survey. As the researcher intends to investigate the effect of advertisement on
consumers buying behavior, the primary data will be collected from primary sources via
questionnaires.

3.4. Population of the study

A study population can be defined as the entire collection of cases or units about which the
researcher wishes to draw conclusions. One of the major steps in formulating a research design is
to define the population according to the objectives of the study. The population of interest for
this research is all consumers of Nifas Silk Paint Factory‟s products in Addis Ababa. The
number of population is infinite. Therefore, the study will use non-probability sampling approach
particularly purposive and convenient sampling techniques because non –probability sampling
approach enables the researcher to get some idea of the population and characteristics of the
problem using well informed member in a short time.
3.5. Sampling procedure

Sampling design applied for the research is two level sampling. Initially Purposive sampling is
used to select sales outlets of Nifas Silk Paint Factory based on the size of the sales outlets and
their level of business activities. The reason behind such sampling design is to get higher number
of consumers in a single place within short period of time, since the type of consumers across all
sales outlets are assumed to be homogenous (no segmentation geographically or at sales outlet
level).

Accordingly: Merkato, CMC, Saris, Mexico, Summit, Gojam Berenda, Akaki, Jemo, sales
outlets are selected using purposive sampling. Then convenience sampling is used to select
sample respondents from selected sales outlets by way of approaching consumers by visiting the
sales outlets with the help of salesperson.

3.7. Data Collection Procedure

The study employs questionnaires as a tool for data collection. The questionnaires were delivered
to the consumers of the Nifas Silk Paints.

The questionnaires are composed of four sections. The first section contains questionnaire items
used to collect personal profile of respondents, the second section contains questionnaire items
used to collect the data related to general knowledge of respondents and the third and fourth
section on five point Likert scale to assess the effect of advertisement on consumers buying
behavior.
 CHAPTER FOUR

Data analysis and presentation

4.1. Response Rate

Even though the sample size of the study is 132 questionnaires were distributed but only 107
questionnaires were returned. Out of 107 questionnaires 7 questionnaires were rejected. 6 out of
the 7 questionnaires were rejected due to missing data and the rest one questionnaire was
returned unfilled. Therefore, 100 questionnaires served as data for analysis to present the
findings and draw a conclusion.

4.2. Characteristics of the respondents

Since the general characteristics of the respondents are vital to get insights to the overall study
we shall start by seeing the demographic nature of the respondents.

NO Description Respondents

NO %

1. Gender

Male 73 73%

Female 27 27%

Total 100 100%

2. Age

23-24 25 25

25-27 26 26

28 8 8

29 35 35

45-above 6 6

Total. 100 100%

3. Educational background
 12 and below 4 4%
Diploma 31 31%
Degree 56 56%

Master 8 8%

Total. 100 100%

Table 1(source own survey 2021) total respondents,25(25%) of them are aged between 23-
24,while 26(26%) of them are aged between 25-27, 6(6%) of respondents are at the age of 28,
35(35%) of them are at the age of 29 and 6 (6%) respondents are at the age of above 45 This
implies that the 94 % of the customers are below the age of 29

As shown in the above table the educational level of the respondents 4(4%) are grade 12and below
31(31%) of them have diploma, 56(56%) of them have degree and 8(8%) of them have master

4.3 Analysis of questionnaire

Ite Description Alternative NO of Percentage%

m respondents
1. By which mode of advertisement are internet 3 3
you getting attached? TV 56 56%
Radio 29 29%
News paper 12 12%
Total 100 100
2. How often you recommend Nifas Silk Rarely 34 34%
Paints Factory after watching
Frequently 45 45%
advertisement?
Very 12 12%
frequently
Never 9 9
Total 100 100
3. The advertisement message is creative Agree 35 35%
as a result it influences me to
decide to buy the product. Dis agree 33 33%
Strongly 15 15%
agree
Strongly dis 17 17%
 agree
Total 100 100

4. Agree 30 30%

Dis agree 40 40%

Strongly dis 30 30%
The advertisement message is agree
memorable as a result it influences me
Total 100 100%
to decide to buy the product.
5. Agree 55 55%
Dis agree 25 25%
Strongly 25 25%
Regular ads of Nifas silk Paints agree
Factory enables it in winning the
Total 100 100%
Market competition.
6. The advertisement message is Strongly 24 24%
impressive as a result it helps me to Agree
decide to buy the product Agree 29 29%
Disagree 25 25%
Strongly 22 22%
disagree
Total 100 100%
7. New impressive ad motivate the Strongly 35 16%
consumer for purchasing products agree
Agree 40 28%
Disagree 20 52%
Strongly 15 4%
disagree
Total 100 100%
8. I believe there is always real Strongly 10 10%
information behind impressive agree
advertisement Agree 20 20%
Disagree 46 46%
 Strongly 24 24%
disagree
Total 100 100%
9. The ad message is simple to understand Strongly 40 40%
as a result it helps me to decide to buy agree
the products Agree 46 46%
Disagree 10 10%
Strongly 4 4%
disagree
Total 100 100%

10. The advertisement message is attention Strongly 24 24%

grabbing as a result it influence me to agree
decide to buy the product Agree 40 40%
Disagree 24 24%
Strongly 12 12%
disagree
Total 100 100%
11. Since the ads are strong they do stick in Strongly 15 15%
my brain for a long time agree
Agree 24 24%
Disagree 42 42%
Strongly 9 9%
disagree
Total 100 100%
12. The adv. of NSPF have new features Strongly 26 26%
agree
Agree 40 40%
Disagree 20 20%
Strongly 14 14%
disagree
Total 100 100%
13. The ad creates relevant picture of the Strongly 16 16%
product that is in reality agree
Agree 36 36%
Disagree 36 36%
Strongly 12 12%
disagree
Total 100 100%
14. Since ads are always realistic Strongly 18 18%
i can consider them as honest agree
information source Agree 40 40%
Disagree 28 28%
Strongly 14 14%
disagree
Total 100 100%
15. I am happy being the consumer Agree 56 56%
of Nifas Silk Paints Factory Disagree 6 6%
Strongly 38 38%
agree
Total 100 100%
16. Have You try to buy product Yes 44 44%
recently after coming across No 56 56%
any advertisement? Total 100 100%

4.3.1. Media of Advertisement, which influence Consumers Buying Behavio r

Figure 4.3.1.1: Media of Advertisement, which influence NSP‟s Consumers Buying Behavior
Media of Advertisement, which influence NSP‟s Consumers Buying Behavior

Source: Calculated From the Researcher Survey Data

From Figure 4, it is clear that 56.73% of the respondents got NSP products information from
Television advertisement. The remaining, 29.24% & 14.04%of the respondents got information
from radio & newspaper advertisement respectively.

4.3.1.2. Trend of Consumers purchasing after Advertisement

Trend of Consumers purchasing after Advertisement Source: Calculated From
the Researcher Survey Data
.

, it is clear that 56.43% of the respondents‟ didn’t try to buy products after
coming across any NSPF advertisement. However, the remaining 43.57% of the
respondents did try to buy products after coming across advertisement.

4.3.1.3. Trend of recommending NSP Products by Consumers

Figure 6: Trend of recommending NSP Products by Consumers Source: Calculated from the
Researcher Survey Data

From Figure 6, it is clear that 44.44% of the respondents did recommend NSPF after purchasing
and consuming the products. The remaining, 12.28% and 9.06% and 34.21% of the respondents
did recommend NSPF very frequently, never and rarely
From the above table we can see that 35 of the respondants agree 52 of
them diagree about the creativeness of the ad to infulence them to buy
the producy
The above table show 53 of the respondants agree and 47 of them
disagree in the impressiveness of the ad message to decide to buy the
product
As the above table we can see that 86 of the respondants agree and 14 of
them disagree abuot the simplicity of the ad to decide to buy the product
As the above table shows 94 of respondants are happpy and 6 of them
are not happy for being the custmer of NSPF
From the above table shows 52 of the respondants agree and 48 of them
disagree in the creativenss of the ad
From the above table we can see that 66 of the repondant agree and 34 of
them disagree in the ad features of NSPF
As the above table shows 64 of the respondants agree and 36 of them dis
agree how the ad message being attention grabbing to decide to buy the
product
 n
CHAPTER FIVE
Summary, CONCLUSIONS and RECOMMENDATIONS

5.1 Summary

From the analysis point of view 50 of the respondant agree the creativeness of
the ad

Large number of respondants replied that the ad of NSPF enables it in winning

the market competion

Majority of the respondants replied that the ad motivate them to buy the
product

Large number of respondants replid that the ad message is simple to undrstand

Majority of the respondants belive that the ad do not sticky for a long time

Large number of repondants are happy with the new features of ad

A large number of respondants are happy being the customet of NSPF

5.2. Conclusions
The purpose of this study was to investigate the effect of advertising on consumers buying
behavior. To achieve the purpose of the study three basic research questions were proposed to
investigate the effect of advertising on consumers buying behavior and to answer the stated basic
questions.

From the findings of the study it can be concluded that:

 The entire research objective for this study was attained; the general objective of
this study was to examine the effect of advertising on consumers buying behavior: The
case of Nifas Silk Paints Factory. All selected AD characteristics except attention
grabbing have significant effect on consumers buying behavior.

 The quantitative result shows that most of consumers are influenced by television
advertisements. This indicates that Television advertisement was the first choice by most
of the respondents.

5.3. Recommendations

Based on the finding and conclusion of the study the following recommendations are forwarded.
  Television has more power to influence than other media. Advert which is
displayed in television can be remembered easily and fast because people see and hear
the advert. The study recommends that advertisers should use television adverts well and
the message should be supported well by visual so as to gain new customers, create brand
loyalty and persuade well.

 As per the results of the study, most of the consumers got attached by television
advertisement. Radio and newspaper advertisements of NSPF didn‟t get enough attention
by consumers. This may be a result of lack of enough information and ineffectiveness of
the advertisements messages through these Medias regarding the products. Advertisement
effectiveness is the joint responsibility of the advertiser and the advertising agency.
Regular and consistent up-to-date training on the product information should be given to
the advertising agencies, which work with NSPF, so that they will have the current
knowledge and skills to handle the adverts and to make the adverts more attention
grabbing, impressive, honest, memorable and creative.

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Part I: Respondents Profile

Please put a ‟ √ ‟mark in the appropriate space to indicate your answer.

1. Age (Years) ____________

2. Gender

1. Male 2. Female

3. Educational Qualification

1. Twelve and below 2. Diploma

3. Bachelor 4. Masters

PhD and above

4. Income ______

5. Marital status

1. Single
2. Married 3. Divorced

Part II: General Knowledge of Consumers

1. By which mode of advertisement are you getting attached?

1. Television Advertisement
 2. Radio Advertisement

3. Newspaper Advertisement

2. Have you try to buy products recently after coming across any advertisement?

1. Yes 2. No
3. How often you recommend Nifas Silk Paints Factory after watching its advertisement?

1. Rarely 2. Frequently

3. Very Frequently 4. Never

Part III: Advertisement Impact Assessment

Please circle one number representing your rating for a particular factor by using the following
scale:

Strongly Disagree (1), Disagree (2), neither Disagree nor Agree, (3), Agree (4) and Strongly Agree
(5).

No. Statements 1 2 3 4 5

IAD1 The advertisement message is impressive as a result it helps me to

decide to buy the product.

IAD2 An impressive ad motivates the consumer for purchasing products.

IAD3 New impressive advertisement of a product is a signal of new offers.

IAD4 I believe there is always real information behind impressive

advertisement.
SUA1 The advertisement message is simple to understand as a result it helps

me to decide to buy the product.

SUA2 The advertisement message is easy to understand.

SUA3 The facts in the ad convince me to different features of the products.

SUA4 Since the ad is very clear, I can understand what the ad is all about.

AGA1 The advertisement message is attention grabbing as a result it

influences me to decide to buy the product.

AGA2 This ad is better than other ads that have the same message.

AGA3 I believe the ad has a high degree of visual magnetism.

AGA4 Every time I look this ad it makes me comfort.

The advertisement message is memorable as a result it influences me

MAD1 to

decide to buy the product.

MAD2 The ad always reminds me how to have better life style.

MAD3 Since the ads are so strong, they do sticks in my brain for long time.

MAD4 Mostly I discuss the ad message with my friends after viewing it.

CAD1 The advertisement message is creative as a result it influences me to

decide to buy the product.

CAD2 Creative advertisement is the only tool in increasing consumers buying

appetite.

CAD3 Great advertisement is the creative expression of understanding the

market needs.

CAD4 The ads of NSPF have new features.

HAD1 The advertisement message is honest as a result it influences me to

decide to buy the product.

HAD2 The ad creates relevant picture of the product that it is in reality.

HAD3 Reliable ad does give room for market comparison.

HAD4 Since ads are always realistic, I can consider them as honest

information source.

Section IV: Consumer Buying Behavior Assessment

CBB1 I am happy being the consumer of Nifas Silk Paints Factory

CBB2 I believe in advertisement because it helps to get facts.

CBB3 The ads of Nifas silk Paints Factory played a key role on the buying of

quality paint products.

CBB4 Regular ads of Nifas silk Paints Factory enables it in winning the

market competition.

CBB5 New ad of a service is a signal of new offers.

CBB6 There is positive relationship between advertising and consumers

buying behavior.
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