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CHAPTER-1

INTRODUCTION

1
1.1 INTRODUCTION

In a consumer economy, the world arises where the customer faces similar and identical goods
performing the same roles and needs. That is why consumer satisfaction and the analysis of
its actions are at the core of the marketing strategy and the needs of all companies who want
to ensure their market survival.

Consumers are the main market component. Their behaviour is based on individual needs.
That is why, most of the times, they find themselves stuck in the option between different
goods as provided by corporation.

The principal goal of the customers is to fulfil their needs as much as possible by the act of
buying the commodity they select. However, before arriving at the decision point, consumers
experience the influence of a multitude of variables which are the other similar products that
cause either their motives to buy or brakes to give up on the product.

Over the years, the way businesses or organizations communicate with customers through ads
has changed and this is due to several factors including printing press, radio, tv, and social
media. As a result of this advancement of means of communication, businesses do not hesitate
to invest in ads through this means to achieve their goals.

2
1.2 ADVERTISING

Advertisement (ad) is an efficient and effective technique to promote goods, services, and
ideas. It is a paid form of non-personal communication wherein business information is made
available for potential customers.

The advertisements that we see in the newspapers, magazines, and roadside hoardings or
watch on television or on the internet involves a lot of work. An advertisement goes through
different stages from its initial planning stage to its execution. In addition, it also involves
groups of people specialized in different fields. For example, experts of management,
copyediting, creative writing, photography, videography, acting, etc.

Advertising is one of the marketing strategies that focuses on attempting to influence a


particular group of individuals by interacting with specific messages that impact their
behaviour in order to convince them to make a specific decision, such as deciding to
purchase a new product.

Therefore, advertising is any way that is communicated with any individuals in order to
persuade them of a particular matter, until they make the decision that the advertiser needs
for a return or a benefit to be achieved. Other than this, lifestyle is one of the things ads can
sell. In fact, ads not only offer goods and services but also offers images and the lifestyle. at
advertises on TV, on the radio, on the street and on Facebook, and all of this is in order to
connect with you in more than one way until you're fully persuaded to make the decision
that this company want and that'll brings it a profit.

3
1.3 Importance of advertising

work environment, advertisement is of great importance, since it is one of the key media
strategies used by different businesses to engage with the target audience and clients of their
company. Advertisements for a product or a service are operated with the intention of
generating awareness among target audiences, as this is the focus of marketers.

Advertisement plays a major role in the launch and development of a product or service. Like
it or not, it has now become a necessity for everyone in daily life, be it the manufacturer, the
trader or the consumer. How to sell, without ads, an interesting product that can fix problems?

Importance for the client: advertising plays a very significant role in consumers' lives so
people must realize that a new product exists on the market. Customers will find the right
products and whatever they need through ads. When they know the range of the product,
people are able to compare and then purchase the goods that meet their needs the best.
Importance for sellers and businesses manufacturing products: it contributes to increasing
sales. It also helps producers or enterprises to identify and monitor their competitors' progress.

In addition, whether a business decides to introduce or launch a new product on the market,
advertising can improve its exposure and encourage consumers to come and try it.
Furthermore, advertising is also considered a means of customer loyalty, and tends to improve
credibility indirectly.

4
1.4 Types of advertising

1. Paid search advertising

Paid search or also known as, pay per click is a digital marketing technique in which
advertisers put advertisements on search engine results pages (SERPs) and pay for the
commitment that those advertisements obtain. Paid search marketing takes this model
through practice by authorizing marketers to promote on these Search Engine Results Pages
(SERPs) by pay-per-click or pay-per-view means.

2. Social media advertising

Social media advertising is a digital marketing channel for paid ad campaigns to meet the
target audience. Marketers and advertisers can promote their brands and boost sales via these
often-used platforms. The goal of this type of advertising is usually to achieve brand
awareness, increase the number of social media followers, increased sales of a specific
product over a certain period, increase visits to the website, and increase the number of
online store visits.

3. Native advertising

A native advertising is an advertising message designed to fit with a media platform's daily
content. These advertisements simulate the template with the idea that the explicit
advertising content could be avoided by the recipient. The aim of this type of advertisements
may be to raise awareness of the product or service or raise the demand for them. It does not
require the customer to take direct action and may not include a link with the company that
pays for the advertisement.

5
4. Display advertising
Long time ago, when we look at many monuments and graves, we find signs that are either
incantation or identification signs above them that indicate the name of that relic or the
owners of the grave, or the purpose of constructing that building for them or preparing that
room or shrine for them. We can say then that these informational and advertising banners
have been known since those ancient times.

5. Print advertising
Print advertisements are a marketing message spread across print media. Print advertising is
also a secure and efficient way of getting people to talk. Posters as an example can be used
in a variety of media and be seen everywhere from bus shelters, town or roadside signs,
stations and other public transportation locations, etc. Aside from posters, we can also cite
flyers, brochures, leaflets, business cards, catalogues, placemats, and so on. Street marketing
is the art of bringing advertising directly into people's lives, in the middle of the street by
positioning advertisements in places that people would never guess that they would see them.

1.5 Objectives of advertising

The purpose of all ads is to educate, convince or remind customers of the existence of the
product. As a result, the consumer will have some kind of daily awareness of the product, its
importance and what is must know about it. The fundamental idea behind advertisement is to
increase the business by selling goods/services. Besides, there are many other objectives of
advertisement, significant of them are −

• To promote newly launched products among the potential customers.

• To promote personal selling program.

• To create awareness among maximum people about your business in a short period of time.
• To enter national or even international market and motivate new group of customers.
• To enhance the goodwill and build credibility among the customers by promising to provide
better quality of products and services.

6
1.6 INTRODUCTION OF McDonald’s

McDonald's fast-food restaurant is one of the largest franchises in the United States as well as
aboard. Their top menu items include: hamburgers, cheeseburgers, McNuggets, and French
fries. They are also known for one of their popular desserts: the apple pie and their breakfast
sandwich: the Egg McMuffin.

There are more than 32,000 McDonald's restaurants serving in 117 countries. More than 75%
of McDonald's restaurants worldwide are owned and operated by independent owners.

McDonald's has several ethical and social responsibility policies in place throughout their
solely owned and franchised companies. These policies include placing the customer
experience at the core of what they do, committing to their employees by nurturing their talent
and rewarding their achievements, maintaining high standards regarding the conduct for
business, and giving back to the communities in which they are established. All of these values
are infiltrated through all levels of the company, which keeps McDonald's thriving as a
successful fast food chain restaurant.

Risk management is imperative to McDonald's. They have a risk assessment tool that they use
to determine the country risk: which pertains to the specific country/region they are located in;
industry risk: pertains to supplies produce; and facility risk: which is a combination of both
country and risk groundwork. These factors are all part of the risk assessment tool that is used
in each of their companies to help them with risk management.

Security features in McDonald's includes their security camera systems within the facilities to
continuously monitor all activity in and around the restaurants to ensure the safety for the
workers as well as customers. McDonald's use these security cameras also in regards to workers
compensation claims or liability lawsuit claims from consumers. McDonald's also monitors
their computer software systems with an ACS system that monitors the technological factors
of their business.

7
Analysis of McDonalds'

The strategies used by McDonald’s to interact with consumers are characterized by the
aspect of marketing communication of the marketing mix. These variable focuses, among
the 4Ps, on marketing communication with targeted consumers. For instance, to convince
customers to buy new products, the company offers new info. In its advertising mix,
McDonald's employs the following strategies listed and organized in order of importance
in business: Advertising/ media attention (most significant), sales promos, relations with
the public, and Direct marketing.

8
Strengths

Knowledge of the Brand: McDonald's maintains a very high level of brand recognition
across the globe as a fast-food brand. Its global presence is an important factor in promoting
its high brand awareness. Focusing on marketing and customer service, however, has also
driven McDonald's brand recognition higher. In order to grow brand awareness in leading
markets, the business has used a combination of digital initiatives. McDonald’s is also
known for tasty food made in few minutes only. That is all thanks to the successful
promotional tactic, which reinforces McDonald's idea of having excellent quality but
affordable and rapid food.

Weaknesses

Over-dependence in Western Markets: The company is over-dependent on the Western


markets as the largest and leading fast-food brand. The United States, the United Kingdom,
Canada, France, etc. are one of the leading markets of McDonald's and account for the
majority of its profits. In addition, over 35% of the brand's revenue in 2018 was accounted
for by the United States solely. The brand's earnings coming from Asian markets such as
China, Malaysia, India and Singapore are still low, indicating low market penetration. The
brand depends for a large proportion of its revenues on the Western markets. However, the
decline in the economy activity in these markets and especially the United States will
certainly end up hurting McDonald’s bottom line.

9
Opportunities

Digital marketing: Digital marketing has helped build the market share and boost the sales
for many leading brands across the world. Through investing in digitalization, McDonald's
can also improve its competitive advantage. It already uses the leading platforms of digital
marketing for marketing. There are however, other outlets, aside from social media,
including the company's own website and blogs, which could be used for the marketing
and the customer interaction. Digital marketing can help the company expand its reach and
as a result affect both.

Threats

Competitive threats: Fast-food rivalry has quickly risen, resulting in higher pressure on
McDonald's. Besides leading players including Subway, Burger King and Wendy's,
competition from local brands is also increasing in many markets, which has led to greater
operating expenses and investments in marketing as well as product quality. McDonald's
would need to boost its investment in marketing as well as menu and innovation processes
to retain its leadership position. Moreover, with rising competition, the market share of
McDonald's is at risk as well. The business would need to concentrate on being more
customer-centred, as well as investing in marketing and product research in order to
minimise these risks.

10
McDonalds objectives

• Market share objectives – Market share can be achieved within a specified period of
time if objectives are set accurately
• Increasing profits – objective is to increase profits or percentage of sales for a certain
period of time.
• Survive – Current/present hard times the business is in.

• Growth – Business objectives may state growth by 15% year on year for the next 5
years ahead.
• Increasing brand awareness over a certain period of time.

McDonalds – Aims and Objectives

• Having great concerns about the organization’s customers.

• Being socially responsible for the company’s welfare.

• Serving high standard and quality food with quick and outstanding service all along
with great value for money.
• Maintain a good and friendly environment.

Core Objectives of McDonalds

The core objective and mission of McDonalds is to be the world’s premier consumer
product organization mainly focusing on convenient fast foods. They practice producing
financial rewards to their investors hence providing opportunities for growth and
enrichment for their employees, business partners and for the communities in which they
operate. They strive for Honesty, Fairness and integrity in everything they do.

11
1.7 History of McDonald’s

In 1954 Ray Kroc, a Multimixer salesman, visits McDonald's and learns that the McDonald's
brothers are looking to go nationwide. Kroc then pursues his interest in the hamburger business
and signs a franchise agreement with Dick and Mac McDonald opening his first McDonald's
in Des Plaines, Illinois on April 15, 1955. (http://www.mcdonalds.com/) From that moment on
McDonald's has continued to grow and thrive as the well-known successful fast-food restaurant
that we know today.

The CEO:

McDonald's current Chief Executive Officer is James Skinner. Skinner started his career in
McDonald's as a restaurant manager trainee in 1971 located in Carpenterville, Illinois. He
continued 'climbing the ladder' within the company and held several other management and
leadership positions.

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1.8 McDonald’s new growth strategy

McDonald's Corporation announces a new growth strategy, Accelerating the Arches, which
encompasses all aspects of McDonald's business as the leading global omni-channel restaurant
brand. The strategy includes a refreshed purpose to feed and foster the communities
McDonald's and its franchisees serve around the world, updated values that guide actions and
behaviours, and growth pillars that build on McDonald's competitive advantages.

The growth pillars, which are rooted in the Company's identity, MCD, build on historic
strengths and articulate areas of further opportunity. Specifically, the Company will animate
the MCD in the following ways:

• Maximize our Marketing by investing in new, culturally relevant approaches to


effectively communicate the story of brand, food and purpose.
• Commit to the Core by tapping into customer demand for the familiar and focusing on
serving delicious burgers, chicken and coffee.
• Double Down on the 3 D's (Digital, Delivery and Drive Thru) by leveraging
competitive strengths and building a powerful digital experience growth engine that
provides a fast, easy experience for our customers.

"In countries around the world, we have seen customer behaviors change at an
unprecedented pace over the last several months. We believe this presents an
opportunity to do something special as we write the next great chapter of McDonald's,"
said McDonald's President and Chief Executive Officer Chris Kempczinski. "By
embracing a bigger, more holistic vision for the future, Accelerating the Arches defines
how McDonald's will deliver value to all stakeholders by providing a clear roadmap of
what we can do for the millions of customers, in the thousands of communities, we
serve each and every day. With our new growth strategy, we will build on our inherent
strengths by harnessing our competitive advantages and investing in innovations that
enable us to continue to offer fast, easy moments for our customers."

13
1.9 UNDERSTANDING THE CONSUMER’S BEHAVIOR

According to behavioural psychology, understanding customers' new beliefs, patterns, and


"peak points" is key to support behavioural change. Focusing on peak moments, which are
particular aspects of the customer decision process that have considerable influence and that
customers appear to remember best, is an efficient way of reinforcing a new belief. Peak
moments are frequently first-time interactions with a good or service, touchpoints at the end of
a customer journey, as well as other intense consumer reactions.

We have all experienced the moment when we walk into a store and see something that we just
have to have. Retailers spend billions of dollars every year trying to generate that feeling in
their customers. Web campaigns, video and print ads, social media campaigns, and branding
seem to converge as the consumer finally feels a connection to a product and makes a purchase.
So, what drives that behavior? And how do you capture and then replicate that lightning-in-
abottle moment when a potential customer turns into a buyer? This blog will dive into what
consumer buying behavior is, what influences it, and what the different types of buyers.

Consumer Buying Behavior refers to the actions taken (both on and offline) by consumers
before buying a product or service. This process may include consulting search engines,
engaging with social media posts, or a variety of other actions. It is valuable for businesses to
understand this process because it helps them better tailor their marketing initiatives to the
marketing efforts that have successfully influenced consumers to buy in the past.

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1.10 INFLUENCE OF ADVERTISING ON THE CONSUMER'S
BUYNG BEHAVIOR

Marketers invest in a variety of media outlets in order to manipulate customer behaviour. Every
media platform's advertisement has a distinctive and unique pattern that engages customers in
a special way. Consumer media preferences have changed as a result of digitalization. As a
result, a better understanding of advertising on various media outlets and their implications for
the consumer behaviour must be identified.

Let’s take a closer look at each of these factors.

• Cultural Factors - Culture is not always defined by a person's nationality. It can also be
defined by their associations, their religious beliefs or even their location.

• Social Factors - Elements in a person's environment that impact the way they see
products.

• Personal Factors - These may include someone's age, marital status, budget, personal
beliefs, values, and morals.

• Psychological Factors - A person's state of mind when they are approached with a
product will often determine how they feel not only about the item itself but the brand
as a whole.

15
CHAPTER- 2

REVIEW OF LITERATURE

16
LITERATURE REVIEW

2.1 Advertisement

According to Jhangiani & Tarry (2014), advertising, which is one of the components of the
interaction, has the main objective of catching customers’ interest and attempting to persuade
them to buy a certain product by changing or improving its attitudes either on the cognitive,
emotional or behavioural level. Those who persuade should also grasp how the information
they provide refers to the receiver motivation, needs and objectives.

The effect of the digital revolution on the advertising industry has dramatically changed the
reach and accessibility to wider audiences drawn to contents from social media (Nekatibeb
2012).

Entertainment owes it all. In fact, entertainment according to Haider & Shakib (2017)
[Madden & Weinberger (1982)] has been identified as a major promotional strategy for
increasing advertising efficacy and persuading consumers to make a purchase.

According to Herhold (2017), we live in an information-obsessed environment. Thus, the odds


of a company surviving if it does not advertise are very low. We can say that nowadays, social
media has practically become a weapon and is playing a major role in advertising. The way
businesses operate, and particularly the methods they use to raise public awareness of their
goods and services, have been radically changed by the Internet and social media.

Therefore, advertisers are continually trying to find new ways to improve the intensity and
efficiency of their ads in today's cluttered media environment (Muda, Musa & Putit 2010).

The consumer expectations of information from various media such as TV, radio, newspapers,
magazines and the Internet are entirely different. The characteristics of different media and its
immediate and long-term effects on consumers are also varied (Doyle & Saunders, 1990). For
instance, TV allows high-quality audio–visual content that is more suitable for product
categories, which require physical demonstration. Radio offers audio content and is most
suitable for businesses catering to the local markets (Petersen, 2018).

Berkowitz, Allaway, and D’Souza (2001) posited that over a period of time, the effect of
different media platforms on consumers’ memory varies. For instance, initially TV

17
advertisements have a substantial impact on consumers’ memory, but in the long term, it fades
away. In contrast, a magazine initially has a low but persistent impact on consumers’ memory
because the readers can read a magazine at their own pace.

Broadcast media such as TV and radio are among the popular media in India because of its
mass reach (Farooq & Latif, 2011; Fill, 2009). In India, newspapers play an important role as
an effective medium of communication. This is due to its reach in almost every part of the
country. India has the largest newspaper market in the world with over 330 million daily
newspaper circulations (Jayaraj, 2011). Advertisers still prefer traditional mediums such as
TV and print for advertisements (Statista, 2016). Of the total advertisement spend, TV
advertisement spend in India was 44.7 per cent and print advertisement spend was 29.8 per
cent. The digital advertisement spend was the third largest with a growth rate of 15.5 per cent
(Pahwa, 2017). This is because of the increasing number of Internet users after the entry of
Reliance JIO in the Indian telecommunication market.

2.2 Consumer behaviour

Consumer buying behaviour refers to the methods involved when individuals or groups choose,
buy, utilize or dispose of products, services, concepts or experiences to suit their needs and
desires (Solomon, 1995). A behaviour that consumers display in searching for, paying for,
using, evaluating and disposing of products and services that they think will satisfy their needs
(Schiffman & Kanuk, 2007). It is a convergence of three fields of social science, they are,
individual psychology, societal psychology and cultural anthropology (Ramachander, 1988).
A theory that answers what, why, how, when and where an individual makes purchase (Green,
1992); it is particularly important to study the subject of consumer buying behaviour as it
facilitates firms to plan and execute superior business strategies (Khaniwale, 2015).

In this research we will attempt to find what factors effect consumer buying behaviour. In
previous studies certain variables were found to have an impact in consumers. This is briefly
discussed below:

Nowadays, people have access to the endless supply of advertisements. However, they fancy
something new, entertaining and something that can grab their attention. Boring advertising

18
will not sustain in consumers’ minds long enough. Therefore, entertainment has been termed
as a significant advertising strategy for increasing advertising effectiveness and imploring them
to make a purchase (Madden & Weinberger, 1982).

Familiarity created by advertisement for a certain brand is also an important factor that affects
consumer buying behaviour. Macinnis and Park (1991) carried out a study with consumers to
investigate the effects of familiar songs in advertising and consumer behaviour. In their
research, consumers depicted satisfaction for products with familiar songs and a significant
relationship was confirmed between the level of familiarity of the songs in the advertising and
its amiability.

2.3 McDonald

In order to grow brand awareness in leading markets, the business has used a combination of
digital initiatives. In fact, in all its markets, the McDonald's logo is quickly recognisable.
Therefore, via the logo, clients can easily recognise McDonald's restaurants in key areas.
(Pratap 2019.) McDonald’s is also known for tasty food made in few minutes only. That is all
thanks to the successful promotional tactic, which reinforces McDonald's idea of having
excellent quality but affordable and rapid food. (Learn marketing 2020.)

The brand depends for a large proportion of its revenues on the Western markets. However, the
decline in the economy activity in these markets and especially the United States will certainly
end up hurting McDonald’s bottom line. (Pratap 2019.)

McDonald's can also improve its competitive advantage. It already uses the leading platforms
of digital marketing for marketing. There are however, other outlets, aside from social media,
including the company's own website and blogs, which could be used for the marketing and
the customer interaction. Digital marketing can help the company expand its reach and as a
result affect both. However, for customer and employee engagement, as well as supplier
management and managing of its franchisees, it could use new technologies. (Pratap 2019.)

McDonald's would need to boost its investment in marketing as well as menu and innovation
processes to retain its leadership position. Moreover, with rising competition, the market share

19
of McDonald's is at risk as well. The business would need to concentrate on being more
customer-centered, as well as investing in marketing and product research in order to minimize
these risks. (Pratap 2019.) We can also discuss cultural threats when dealing with different
countries. As a multinational fast-food corporation, McDonald's has frequently encountered
diverse cultural challenges in various regions of the world, which caused harm to the brand's
reputation. (Gupta 2019.)

20
CHAPTER-3

RESEARCH METHODOLOGY

21
RESEARCH METHEDOLOGY

3.1 OBJECTIVE OF THE STUDY

• Marketers must, at the beginning of any project, allocate part of their expenses in favour
of creating their own advertisement in order to inform people of the existence of the
target product, and expand the circle of consumers.

• Without advertising, the number of those familiar with this product will be limited to
the circle of family, friends, and those people who will know about it only by chance.

• Although awareness of the existence of the product has a neutral effect on the consumer,
it mainly works to transfer people from the stage of lack of knowledge of the product
to the stage of discovery, and knowledge of it.
• The other objective is to show that advertisement must contain sufficient information
about the product in order to be an effective advertisement. In fact, this leaves the
customer curious to learn more.
• In most sectors, it is known that there is intense rivalry between service providers and
goods, which is what separates each product from others by its ability to satisfy the
consumer's needs in a unique and distinct way.
• Businesses can reach this uniqueness by promoting this difference in a correct way. As
the consumers evaluate the product compared with other products, and get in conclusion
that a particular product helps them satisfy their needs the most, this helps them make
the purchase decision

Introduction

This chapter presents the description of the study area and techniques which were employed
during data collection. These include sampling procedures as well as criteria for selecting the
study area. It also covers the instruments of data collection, data processing, analysis, and
presentation.

22
3.2 Research Design

The study employed both qualitative and quantitative research methods. Amalgamation of
different qualitative and quantitative techniques were ensured. This enabled the maximization
of the quality of data. Amalgamation of both qualitative and quantitative research methods is
opted because it helps the research to become more comprehensive due to the statistical
analysis together with observation.

3.3 Area of Study

The study was conducted in Bhopal district. The researcher decided to conduct the study in this
district because there are many McDonald’s Products outlets are located, thus it was easier for
the researcher to collect data from respondents who included customers of McDonald’s
Products.

3.4 Source of Data

The main sources of data were primary data which was collected directly from the respondents
through questionnaires, and secondary data which involves data already collected by other
others authors hence stored in articles, newspapers, books, and research reports as examples,
and these data was used based on the subject matter to find out what they say about the impact
of advertising on consumers buying behaviour towards McDonald’s.

3.5 Data Collection Methods

In this study, both, primary and secondary data collection methods were used. Primary data
collection methods that were used are; questionnaire, interview and observation.

3.5.1 Questionnaire

Questionnaire being a piece of information elicited from respondents, therefore they are forms
containing questions to be filled in by respondents from which information can be collected
from the answers given, as for this research the questionnaire contained structured and

23
unstructured questions with the main aim of eliciting information on the impacts of advertising
on consumers buying behaviour towards McDonalds.

The questionnaires were administered to respondents with assurance of confidentiality,


anonymity and convenience. The method was because it enabled the researcher to collect a
large amount of information can be collected from a large number of people in a short period
of time and in a relatively cost-effective way and that its results can be easily quantified and
analysed more scientifically.

For this practical part, I decided to go with a questionnaire that consists of a set of questions
related to the advertising for my study case: McDonald’s. This questionnaire was sent to
different people including my family members, my friends from as well as other people from
some social media groups.

3.5.2 Observation

Respondents were observed as they purchase basing on factors, they consider in relation to
advertisements they come across with and information from what was observed was recorded
by a researcher. The reason why this method was used is because it is best method of studying
human behaviour and it is accurate and reliable and that in its overall ability it helps to make
an in-depth analysis of the problem.

3.6 Validity and Reliability of Instruments

According to Frankael and Wallen, (2000), validity refers to the degree to which any inferences
a researcher makes, based on the data he or she collects using a particular instrument, is
supported by evidence. Therefore, the coverage and relevance of the instruments to the problem
under study are subject to content validity. This entails the extent to which questions in the
instruments cover the ground to be explored.

In order to realize the validity and reliability of the instruments, the study was conducted
involving 100 consumers. The aim of the pilot study was to check the effectiveness of the
instruments in tapping the required information for this study. It is expected that the findings

24
from the pilot study would reveal the necessity for the researcher to alter some items, for
instance, simplifying some of the terms.

3.7 Data Presentation and Analysis Plan

Data analysis is a process that involves editing, coding, classifying and tabulating the collected
data (Kothari, 2004). In this study the researcher employed both qualitative and quantitative
data analysis techniques.

Qualitative data was analysed using content analysis technique and frequencies, percentage and
tests of associations were calculated and presented in tables and correlation coefficient was
calculated in order to determine the relationships between advertising and the company
performances. Statistical Packages for Social Scientists (SPSS) was employed in the process
of data analysis.

25
CHAPTER 4

DATA ANALYSIS
AND
INTERPRETATION

26
DATA ANALYSIS AND INTERPRETATION:-

The 1st question was about the gender; 30.8% of them were female and 69.2% were
male.

GENDER
Gender

70

60

50

40

30

20

10

0
Male Female

27
The 2nd question of the questionnaire was about the age; 76.9% of them were between 18
and 25 years old, 7.7% were between 26 and 35 years old, 7.7% were under 18 years old,
7.7% were between 36 and 45 and more than 45 years old.

AGE
Below 18 yrs 18-25 yrs 25-35 yrs 35 yrs Above

80

70

60

50

40

30

20

10

0
Below 18 yrs 18-25 yrs 25-35 yrs 35 yrs Above

28
The 3rd question was about the subject of our study case, which is if people like fast food
or not. 84.6% said they like it while the rest (15.4%) do not.

DO YOU LIKE FAST FOOD


YES NO Maybe

90
80
70
60
50
40
30
20
10
0
YES NO Maybe

29
In this 4th question, I started to focus more on McDonalds’ by asking if they consume
latest’s products or not; 76.9% replied by “Yes” while 23.1% replied by “No”.

DO YOU CONSUME MCDONALDS


PRODUCTS
YES NO

80
70
60
50
40
30
20
10
0
YES NO

30
5th question was about how often they go eat in McDonald’s. 7.7% answered
“Frequently (1 to 2 times a month)”, 15.4% selected “Regularly (once or twice a week)”,
and the rest, 69.2% selected “Occasionally (once or twice a year)”.

WHAT MOTIWATES YOU TO CONSUME


MCDONALDS PRODUCT
70

60

50

40

30

20

10

0
Everyday Frequently Regularly Occasionaly Never

31
6th question was about their satisfaction concerning McDonalds’ services. While 69.2%
state that they were satisfied, 30.8% said that they weren’t.

ARE YOU SATISFIED WITH


MACDONALDS PRODUCTS
Are you satisfied with Mcdonald's services

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
YES NO

32
7th question was whether McDonalds’ product line is complete or not, 53.8% were
eating the products, 15.4% are having a coffee or a dessert, 23.1% were don’t consume,
7.7% were others.

IN YOUR OPINION, IS MCDONALD'S


PRODUCT LINE COMPLETE?
product line

60

50

40

30

20

10

0
eating having a coffee or your childerns other options I don’t cosume
a dessert entertainment McDonald's

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8th question was about what time they prefer to eat at McDonalds’. The persons
answering could select more than one option. (23.1%) went for the option “During
Dinner”, (38.5%) went for “Lunch”, (15.4%) went for “Breakfast” and the rest 23.1%
“I don’t consume”.

YOU GO TO MCDONALD'S FOR


40

35

30

25

20

15

10

0
During breakfast During lunch During dinner I don’t consume

34
In the 9th question, I asked about the problems they might have encountered at
McDonalds. 23.1% said that there were “None”, 38.5% chose the option “The quality
of the products”, 23.1% was for option “The service” and lastly 15.4% “Hygiene”.

WHY DO YOU PREFER TO EAT


MCDONALD'S PRODUCTS
40

35

30

25

20

15

10

0
Quality of services Quality of products Hygiene none

35
In the 10th question, I asked about how much time they spend in McDonalds. The
majority which is 23.1% selected “About an hour”, then 61.5% “30 mins”, after that
7.7% chose “More than an hour” and the rest 7.7% “other answer” which are the
same people who do not consume.

WHAT DO YOU LOOK PREFER TO EAT


AT MCDONALD'S
70

60

50

40

30

20

10

0
In 30 mins. In an hour More than an hour I don’t eat McDonald's

36
The 11th question was about whether these people think that McDonalds has the biggest
share of fast-food market in their own country. As a result, 53.8% responded by “Yes”
while the rest 15.4% responded by “No” and the rest 30.8% were may be.

DO YOU THINK MCDONALD'S HAS THE


BIGGEST SHARE OF FAST FOOD
MARKET IN YOUR COUNTRY
60

50

40

30

20

10

0
YES NO MAYBE

37
In the 12th question, I asked about the places where they frequently see McDonald’s
advertisement. The respondent could choose more than 1 option. 30.8% were select tv,
30.8 %were select social media, 38.5% were malls.

WHERE DO YOU FREQUENTLY SEE


MCDONALD'S ADVERTISEMENT
40

35

30

25

20

15

10

0
TV MALLS Social Media Posters

38
I asked in the 13th question whether they agree or not with 6 statements. For the 1st
statement “I like the McDonalds’ ad” most of the votes went for “Agree”. For the
second statement “Advertising is easy to understand”, the most votes went for
“Totally agree”. For the 3rd statement “McDonald’s advertising is funny” the votes
were somewhat close between options “Agree” and “Somewhat Agree”. For the last
statement about whether “McDonald’s ad is humorous”; most votes went for both
“Agree” and “Neither agree nor disagree”.

DO YOU THINK THE NEXT TIME YOU


WANT TO GRAB A QUICK BITE TO EAT
AT A RESTAURANT, YOU'LL GO TO
MCDONALD'S
70
60
50
40
30
20
10
0
Not Agree at Disagree Rather Nither Agree Agree Totally Agree
all Disagree nor Disagree

39
CHAPTER 5

FINDINGS & CONCLUSION

40
SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction

This chapter presents the summary of the study based on the research results /findings,
objectives, conclusion made by the study, recommendations made by the researcher and areas
for further studies. The general objective of this study is to establish the influence of
advertising on consumer buying behaviour towards McDonald’s products. Specifically, the
study aimed to identify media of advertising used to advertise McDonald’s Products, determine
ways in which advertisement influence purchasing behaviour and establish how different
advertisements influence consumer’s behaviour.

6.2 Summary of the Research Findings

Advertising had been a subject discussed over centuries ago, but prior to the 20th Century, this
subject was not as important as it seems now. According to (Roberts, J. 1987) The reason been
that, in the 19th century, economist was busy trying to develop the theory of perfect competitive
markets, this theory assumed that, there was perfect information in the market and that,
consumers had fixed preference for their products which were homogenous in nature.

The general objective of the study was to establish the influence of advertising on consumer
buying behaviour by focusing on McDonald’s products. The specific objectives were: to
identify the media of advertising used to advertise McDonald’s Products, to determine ways in
which advertisement influence purchasing behaviour, to establish how different advertisements
influence consumer behaviour.

41
6.3 The following are among the key findings of this study:

Most of the McDonald’s products consumers have middle aged from 18-25 years old

Adults engage more of McDonald’s products.

The majority of business persons involved on McDonald’s products possess degree level of
education

Advertising of McDonald’s products has been outlined as the most significant factors by
respondents. Integrated marketing communication mix (promotional mix) elements played a
key in consumers adoption and products knowledge, this includes special events and word of
mouth which carried majority percentages on its effectiveness on consumers production
knowledge and adoption, followed by magazine advertising, use of social media such as
Facebook, DVD advertising, web based and T-shirts print outs advertising.

Consumers purchasing decisions on buying McDonald’s products is determined by Marketing


Communication model such as AIDA model, whereby advertisement creates attention, arouse
interests, creates desire and draws attention to the consumers.

The findings showed that advertising influence consumers buying behaviours by providing
consumers with information about the products and the consumers use that information in
purchasing decisions. Information analysed and have showed direct relationships were
products benefits, price, quantity, quality, ingredients, packaging, product name, colour and
product consumption testimonials.

6.4 Recommendations

The country is experiencing much possession of various fast-food products users and this brings
stiff competition under this circumstance, it is essential to investigate what motivates
consumers to buy McDonald’s products. This research has shown that advertisement as part of
the promotional mix should be given the highest priority by the Organization preceding pricing
and distribution of McDonald’s products.

42
6.5 Effective marketing programs should be implemented at the

Organization

Marketing programs should be well formulated and implemented at the Organization, for
effective adoption of fast-food products at the organization. Since every adoption of products can
be effective only after the organizations has done enough situation analysis and hence designed
effective marketing programs by utilizing and managing effectively the components of the
marketing mix elements as the study has shown. Therefore, marketing mix components need to
be effectively managed by the organization. This could enhance increase in customer’s adoption
and acceptance on using the McDonald’s products (Kotler, 2012). Since marketing mix elements
determine the success or failure of every business program in the Organization, management
needs to enhance effective marketing programs that can be managed by the organization so that
the organization can increase the adoption of McDonald’s products.

6.7 Conclusion

From the findings of the study, the researcher concludes that advertising plays a very significant
role in influencing consumers buying behaviour by providing attracting their attention,
arousing their interest, creating desire for the product and finally make them decide to purchase
the products. These findings are compatible to the AIDA advertising model which was used in
the study.

During the study, the researcher found that McDonald’s uses various advertising strategies
namely; event and word of mouth advertising, magazine advertising, Facebook advertising,
DVD advertising, trade fair advertising, event advertising, T Shirt and Website advertising.
Through these advertising strategies, the company has been able to attract more buyers.

Advertisements used by McDonald’s to promote fast food products influences consumer


buying behaviour by; providing them with information about product taste, price, quality,
ingredients, quality, product quantity, The advertisement creates awareness of the products and
attracts more buyers.

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