CHAPTER ONE

INTRODUCTION

Overview

This chapter consist of the background of the study, statement of the problem, purpose of the

study, research objectives, research questions, scope of the study, significance of the study,

organisation of the study and operational definition of terms.

Background of the Study

Modern advertisements have become paid compelling communication. It uses non-personal

mass media to reach broad audiences. Nowadays, modern advertisement tools are used in

social media like Facebook, twitter, Instagram (Devika, 2018). The actual advertisement, the

copy, layout, and artwork were still prepared by the company wishing to advertise; in effect,

Palmer was a space broker.

According to Cohen (2014), advertising is a business activity that employs creative

techniques to design persuasive communication in mass media that promote ideas, goods, and

services in a manner consistent with the achievement of the advertiser’s objective, the

delivery of consumer satisfaction, and the development of social and economic welfare. From

Cohen’s definition, it can be found that advertising satisfies three objectives; increase of sales

for firms, guarantee many services to consumers and ensure the social and economic welfare

of society. Advertising is seen in various ways. One encounters them mostly while watching

television, reading magazines and newspapers, surfing the internet, and on the radio, or even

simply while walking down the street (Sharma and Sharma, 2016).

In this 21st century, advertisements can be parallel associated with social media because that’s

how the times have changed. Companies design brilliant advertisements and launch it on their

social media pages for everyone to have access to it. Influencers help in attracting more and

more customers and give an overall review about the product. Advertising has thus, a

stimulating influence on the purchasing behaviour of the consumers. Advertising is most

effective on products that have intrinsic qualities. These qualities are not known at the time of

purchase and it takes one to discover this upon using the product. Also, when there is a

substantial chance of differentiating a product, it best suits to advertise on that product.

Again, when there is a strong emotional purchasing motive such as to protect the health or

enhance social position, it pays to advertise on such a product. These conditions make the

demand for the product more inelastic. The more emotions consumers attach to a product, the

more they tend to be insensitive to its price. This is of importance to firms as they can earn

high sales in pricing their products (Borden, 2012). Advertising on food, clothing, durables,

and household items tends not to yield higher sales. Consumers are not affected much by the

publicity on such items as they consume such products daily. The higher the consumption of

a product, the less effective is advertising on them. Advertising thus tends to have a less

marginal effect on such items (Doyle, 2011). Advertising has a long-term dynamic effect on

consumers’ purchase and sales of producers.

Statement of the Problem

According to Ambler (2012), advertising has a major influence on the consumption volume

of consumers as well as sales volume. Advertisements may not necessarily bring about a

large volume of sales in short run but will certainly promote sales and perhaps increase

profits in the long run if done properly. Some marketers believe that accurate knowledge

about consumers, how they buy, why they buy, and where they buy is unnecessary as it is

possible to manipulate hapless buyers into parting with their money in return for a product

that they do not want (Hovland, 2013). However, models about advertising as a strong force

have survived despite various empirical studies showing that the view of advertising as a

strong persuasive force is largely unfounded. Matter of fact, advertisement ensures or does

the following; enhances sales, satisfies the consumer's need for quality, educates consumers

about how a product can be used influences consumer’s choice, etc. The role of advertising in

determining consumer behaviour has been undermined by many firms in Ghana over the
years. Some firms spend huge amounts of money advertising their products and still claim

indifference in their sales volume. This misconception seems to be based on an entirely

understandable initiative reaction; how can advertisers claim that advertising does not

increase consumption and sales and still spend so much money on it?

Advertising is essential to fulfilling the traditional desire of firms to reach the ever-increasing

population so that their products may receive optimum exposure. The role of advertisement;

to increase sales revenue and profits of the local firms and increase the demand for goods, has

been falling apart. (Sundarsan, 2011). Most increases in product sales, especially, telephony

markets have been attributed to other factors like the taste; long-term use of a product, and

users’ unwillingness to switch products. This has raised numerous questions as to why

telecommunication companies still do advertise their products. Advertising has been a

subject for debate either on one pretext or another for decades at the beginning of the 19th

century. People showed little interest but it later became a fertile topic for research at the turn

of the 19th century. (Sharma and Sharma, 2016). This study, therefore, seeks to find out the

role advertising play in the consumer buying behaviour of telephony markets with an

emphasis on its users in and around Gomoa-Buduburam. The study is conducted based on a

telephony market because the researcher believes it satisfies the conditions of commodities

on which it is effective to advertise. There are a lot of telephony markets which are

differentiated but serve the same purpose. Again, these products are believed to have intrinsic

qualities which can only be known after it has been used and lastly, some consumers attach

strong emotions to the end products of these good and use it to improve their social status.

Purpose of the Study

The purpose of the study is to examine the effect of advertisements on consumer buying

behaviour, a study on telephony market. Specific objectives of the study were developed as

stated in the research objectives.

Research Objectives

These effects of advertisement need to be investigated to understand by telephony market in

Ghana and are guided by the following objectives:

i. To identify which medium of advertisement influences purchase decision in the

telephony market.

ii. To identify the customer’s perception of advertisement within the telephony market

iii. To determine the effect of advertisement on purchasing decision in the telephony

market

Research Questions

Base on the objectives of the study, which want to ascertain whether advertisement generates

or increase sales and some other objectives, it is, therefore, necessary to use the following

research questions:

i. Which advertisement medium influence purchase decision within the telephony

market?

ii. What is customer’s perception on advertisement within telephony market?

iii. What is the effect of advertisement on purchase decision within the telephony market?

Scope of the Study

The study focuses on the effect of advertisement on consumer buying behaviour, using

telephony (MTN) market as a focal point or case study. It should also be noted that the

findings in this study is executed using the youths in the Gomoa-Buduburam community.

Significance of the Study

This study will help telecommunication network companies to understand the importance of

advertising. The proposed research may contribute to the literature in the following ways.

Firstly, the result of this research can be a relevant source of information to decision-makers

nationwide for taking informed decisions based on advertisement and enable them to

structure their adverts and brands to make them more appealing to improve sales and lead to
better performance. Secondly, this study may contribute to the development and

understanding of advertisement. Also, this research work is expected to serve as reference

material to both students and researchers who may embark on a research project in this area

in the future. It will add to the existing stock of knowledge in the related area or subject of

interest. Finally, this study may give a clear insight into how advertisements can influence

consumer behaviour. As this study gives clear insight into how advertisement can influence

consumer behaviour, many firms will be encouraged into using adverts to market their

product. When firms start making more sales and profit as a result of advertising, the

economy of Ghana will be boosted, as more income from the tax would be accrued to the

government of Ghana. The findings and recommendations of this study will go a long way in

helping firms to adopt good advertising strategies and appealing brand designs to help get

more consumers for their products and services.

Organisation of the Study

The study is presented in five chapters. Chapter one introduces the study in relation to the

background of the study, statement of the problem, purpose of the study, research objectives,

research questions, scope of the study, significance of the study, organisation of the study and

operational definition of terms. Chapter two is based on literature review in terms of

theoretical review, empirical review and conceptual framework of the study. Chapter three

describes the research methods implemented in the study. Chapter four presents the results

and discussion of the findings. Chapter five includes the summary and conclusion as well as

recommendations based on the key findings of the study.

Operational Definition of Terms

Below is the operational definition of terms;

Advertisement: It is an appeal that contains some aesthetic information concerning a product

or service.

Consumers: They are the final users of a product or service.

Telephony Market: Is a general term for technologies, products and services that use the

internet protocol’s packet-switched connections to support voice calling, voicemail, video

calling faxing, etc.

 CHAPTER TWO

LITERATURE REVIEW

Overview

This chapter provides the theoretical literature review, empirical literature review, research

gap, and conceptual review.

Theoretical Framework

The theoretical framework is the structure that can hold or support a theory of a research

study. The theoretical framework introduces and describes the theory that explains why the

research problem under study exists.

Psychological Theory

Psychological theory also known as learning theories. The essence of this theory lies in the

fact that people learn from experience, and the results of experience will modify their actions

on future occasions. The critical brand loyalty and repeat purchase make learning theory

more relevant in the field of marketing. Among the learning, theories are stimulus-response

theories and cognitive theories.

Contributors of stimulus-response theories include Ivan Pavlov, Burrhus Frederic Skinner,

Edward Thorndike, and Philip Kotler. According to them, learning occurs as a person

responds to some stimulus and is rewarded with need satisfaction for correct response. They

proved that most frequent and recent stimuli are remembered and responded to. This

approach is the basis of reported advertisements.

According to its stimulation and want, the cognitive theory propounded by Leon Festinger

mainly to explain specific post-buying behaviour conditioned by a consumer's knowledge,

perception, beliefs, and attitudes. The theory further states that consumers undergo some

discomfort, fear, or dissonance even after a well-thought-out purchase.

This post-decision anxiety is caused by 'nice' (cognitive dissonance) arising from doubts

about the decisions. The consumers compare the merits of the products bought with
substitutes or start analysing drawbacks of the product. Such customers require some

reassurances from the seller that the decision taken is a wise one. However, the theory

explains the 'post decision' phenomenon. Gestalt theory, coined by German psychologist

Christian Von Ehrenfels viewed personality as the result of the interaction between a person

and the total environment. The two must be considered together as a patterned event.

Consumers attend to stabilize their psychological field by providing meaning to the

surrounding world. Consumers strive to reduce conflict between themselves and the

environment.

Advertising Models Theory

The Advertising Model describes the three stages through which a consumer passes through

before deciding on a product, namely the cognitive, affective, and behavioural stages, in that

order. The stages describe using four advertising models: the AIDA (Attention, Interest,

Desire, Action) model, the hierarchy of effects model, the innovation-adoption model, and

the hierarchy of needs model. This study used the AIDA (Attention, Interest, Desire, Action)

model.

According to AIDA (Attention, Interest, Desire, Action) Model developed by Schramn

(2012), the decision by a consumer to purchase a particular product begins when a product

catches his or her attention. The decision follows interest in that product and the desire for

that product to fulfil his or her needs. After that, the consumer decided to act, which is to

purchase the product.

Advertising means that a potent vehicle that includes imagination, creativity, concepts, ideas,

and innovation promotes new products and reminds about changes in the old ones.

Advertising simply means selling, but this one needs the creativity of mind with beauty and

art. Advertising has been a subject discussed over centuries ago, mainly in the 20 th and 21st

centuries. Whether advertising increases prices or lowers, it is one of the controversial issues.
 The figure below describes various models of advertising. In this study, the researcher used

the AIDA Model as described below;

Table 1.0: AIDA Model

AIDA Hierarchy-of-Effects Innovation-Adoption Hierarchy of needs

Stages Model Model Model (Communication) model
Cognitive Awareness Exposure
Stage Attention
Awareness Reception
Knowledge
Cognitive response
Liking
Affective Interest Interest Attitude
Stage Preference

Desire Conviction Evaluation Intention

Behaviou
r Stage Trial
Action Purchase Behaviour
Adoption

Source: Schramn (2012)

Purchase Intention Theory

This study guides by the purchase-intention theory developed by Warshaw (2015). According

to the purchase model theory, culture affects the consumer's decisions whether they purchase

a product or not. This theory means consumers in a particular setting are likely to arrive at

similar purchasing decisions different from consumers in other settings. A consumer purchase

intention refers to that consumer’s attitude towards a specific purchasing behaviour and the

consumer’s degree of willingness to pay. Purchase intention is a kind of decision making that

studies the reason to buy a particular brand by consumer. Shah et al. (2012) defines purchase

intention as a situation where consumer tends to buy certain product in certain condition.
Empirical Literature Review

Ahmed and Ashfaq (2013) conducted a research study to explain the effects of advertising on

consumer's buying behaviour on purchasing telecommunication products. The research

findings showed that 41% of the respondents get effected by the quality, 39% by the

advertisement's persuasiveness. In comparison, 20% by the information provided by the

advertisement.

A study by Diaa (2017) ascertained the effect of emotional advertisement on consumer

buying intention in consumer emotion management in Pakistan. The population used for the

study was female students from different Universities in Islamabad. A sample of 307 students

drawn, the data was collected using a structured closed-ended questionnaire. Regression

analysis to determine the moderating result of consumer emotion management. The

correlation analysis showed that emotional advertisement, consumer emotion management,

and consumer buying intentions have a positive and robust relationship with respective values

of (0.633, 0.785, and 0.579). It also found that emotional advertisement significantly affects

consumer buying intentions.

Another study conducted by Olomofe (2010) on the factors which influence purchasing

decision by Nigeria women found that celebrity endorsements influenced 54%, the product

influenced 14%, 12% were influenced by the packaging of the product while 10% were

influenced by the testimonials see in the television advertisement.

In another study conducted by Kimathi (2013) on factors that affect the purchase decision by

Kenyan women when buying beauty products, about 44% of the total respondents said that

their desire to buy the product very much which they see in advertising, 36% said the

packaging of the product influenced them, the product price influenced 17% of the

respondents while 3% were influenced by the quantity.

A study was conducted by Owusu and Nyarku (2015) to assess the influence of TV and radio

adverts on the decision of tertiary students to purchase telecom products in the Cape Coast
Metropolis. Through stratified sampling techniques, a sample of 402 and 352 students

selected from a respective population of 20,000 and 1400 in both University of Cape Coast

and Cape Coast Polytechnic. Data collection was done through the administration of a

structured questionnaire. Data analysis goes through both descriptive statistical technique and

inferential statistical technique. It showed that radio adverts do not influence the purchasing

decisions of tertiary students with a T statistic and a sig value of 1.501 and 0.134,

respectively. It seemed that Television adverts significantly influence the decisions of tertiary

students to purchase Telecommunication products in the Cape Coast metropolis.

Rehman et al. (2014) in their research on how advertising affects consumers buying

behaviour in Pakistan, analysed the effect of advertisement on consumer buying behaviour.

The results in a correlation indicate that advertising aligned with buying behaviour at the

highest correlation of 0.414, or in other words, consumers' buying behaviour is affected by

advertisement.

Rehman et al. (2014) found that advertisements provide consumers with the information they

need about the advertised product, which in turn becomes the source of awareness when

consumers discuss the information with their friends of families whereby this information

tend to influence consumers on what they buy, when, where and how they buy.

Another study was conducted by Khuong and Ngoyen (2015) at Ho Chi in Vietnam on

advertisements' effects on customer's purchase intention. Questionnaires were mainly for the

data collection. The study applied the convenience sampling method and had a sample size of

299. Regressions determine the independent variables of the customer's positive moods and

purchase intention. Also, it discovered that the higher the rate of trust, suitable repetition and

meaningful advertising message of Television commercials, and necessarily built positive

moods for customers, marketers could increase customer's purchase intention. Also, the study

found out that advertising messages formed a high trust in customers, had well-penetrated

customers' interest, and appropriate length would lead to a high rate of purchase intention. In
addition, the effective length of advertisement saves money for advertisers. It creates a

chance for customers to understand the product and help customers retain the advertising

longer.

A study was conducted by Mandan et al. (2013) in Tehran to investigate the effect of

advertising on customers' behavioural intentions by targeting the Agriculture Bank. The

research population included all customers of Agriculture Bank in Tehran, estimated to be

about 100,000. From the study, a strong relationship was found between relevant news and

satisfaction, indicating that relevant news is a decisive factor in influencing positive

satisfaction. The results of data analysis revealed that the entertainment factor should be

included in a bank's advertising to maximize its effectiveness. Again, it discovered that when

a consumer empathizes with a person, objects, or activity in advertising, they imagine being a

character in the advertising and feel an emotional involvement with what is showing in the

advertisement. Also, when a customer experience familiarity when exposed to advertising,

they tend to have positive satisfaction towards the advertising, thus enhancing its

effectiveness.

Sonkusare (2013) conducted a study on the effect of television advertising on buying

behaviour of women consumers with particular reference to Fast Moving Consumer Goods

(FMCGs). The study's findings showed that most consumers depend on a Television

advertisement in making their final decision on what to buy with regards to FMCGs.

Sonkusare (2013) concluded that advertisements have a significant effect on buying

behaviour of women customers. Before purchasing any product, customers/consumers collect

information to compare alternative product options before making proper purchasing

decision-making activities; hence, advertising mainly gets information about FMCGs

products.

Abideen et al. (2011) conducted a study on the effect of advertising on consumer buying

behaviour by focusing on mobile phone purchases in Pakistan. The study found that
advertising is the main factor that influences mobile phone purchases. The study further

established that advertisements that appealed to consumers' emotions were more likely to

result in purchases.

Abideen et al. (2011) also found that advertising is the main factor that influences consumer

buying behaviour, significantly if the advertisement created to make consumer excited,

stimulated, and frenzied. Such advertisements are more likely to attract the intention, arouse

interest, and create the desire to purchase the advertised product.

Abideen et al. (2011) concludes that advertisements significantly influence consumer buying

behaviour because most people buy mobile phone sets after watching television ads.

Accordingly, the consumer ads regarding Nokia and Samsung are more attractive, and as a

result, people prefer to buy them compared to other cell phones.

Gramm (2013) conducted a study on the effect of advertising on demand generation and

wanted to establish the relationship between advertising and purchase intention. The study

found that advertising positively affected demand creation and established a positive

relationship between advertising and consumption.

According to Taylor and Weiserbs (2012) examined the relationship between advertising

expenditure on aggregate consumption among consumers using the Houtakker-Taylor model.

The study found that there is a simultaneous relationship between advertising and

consumption but not a unidirectional. Therefore, advertising and consumption seem to work

on each other.

Kumar (2011) the study also found that consumers decide to purchase a particular product

after being exposed to advertisements that raise their awareness of the product, product price,

product benefits, and product quality. The study also found that some consumers use

advertisements to compare various advertised products before deciding to purchase.

Another study conducted by Ayimey et al. (2013) uncovers the influence of radio

advertisement on the sale of herbal products in Ghana. The study was conducted in Ho
municipality in the Volta Region of Ghana. The study targeted ten (10) retail shops that deal

with herbal products and forty (40) final consumers of herbal products. Primary data

collected through the self-administration of structured questionnaires and interviews. The

interviews were conducted among management of the herbal retail shops while questionnaire

administration was done with herbal products' customers. The researcher conveniently

selected the participants. Data analysis was done with the use of the Statistical Package of

Social Sciences (SPSS). The data collected were analysed using correlation and regression

analyses to establish the relationship between radio advertising expenditure and sales

concerning the herbal products of the case under study. The study revealed that radio was the

most preferred medium of advertisement among herbal retail shops. It found that a 60.7%

variance in sales is attributable to the advertisement (television and radio alike). Again, it was

discovered that radio was the preferred medium of advertisement among herbal products

company in Ho municipal. Similarly, the study showed that advertising influences them in

the buying behaviour.

Sharafutdinova (2015) conducted a study on consumer purchase decisions on mobile phones

in emerging marketing by focusing on Russian consumers as a case study. The study found

that consumer purchase decision on mobile phones is affected by price, brand association,

and brand awareness. The study found that customers are most likely to purchase a mobile

phone brand they have used in the past.

The study also found that mobile phone buyers in Russia remained influenced by the country

of origin. The study's findings showed a high inclination to mobile phones manufactured in

European countries (Sweden, Finland, and Hungary) compared to mobile phones

manufactured in America or Asia.

A study conducted by Veneeva (2014) on consumer decision-making on mobile phones in

Finland found that an individual desire and need by its culture could act as the most
fundamental factor in consumer decision-making. Other factors include; price of the product,

promotion and marketing strategies used for the product, and the influence of peers.

A study conducted by Ergin et al. (2010) on the purchase decision of telephony market found

that the decision echoed by the consumer's reference groups, advertising, and marketing. The

study further found that consumers purchase telecoms brand after being referred to by their

peers who had already bought the telecoms.

Chen (2013) conducted a study on factors that influence the purchase of telecoms products in

the USA and found five critical factors for telecoms purchasing decision: the quality of the

product, product shape and colour choice, the size and weight, price along with associated

accessories, ease of use, new technology, product design, appearance, and price.

Gabriel et al. (2016) conducted a study on the effect of psychological factors on consumers'

purchase decisions by citing examples from Tanzania. The study found that social reference

groups and price highly influence most consumers' purchase decisions in Tanzania. The study

also found that sensitivity to the product's price is exceptionally high among people of lower-

income brackets. The study also established another factor influencing consumer purchase

decision among Tanzanians to be the country-of-origin whereby products from highly

developed countries (e.g., Italy, Germany) were perceived to be of better quality while

products from developing countries (e.g., China, India) were perceived to be of lesser quality.

(Gabriel et al., 2016).

Research Gap

From the literature reviewed, we can say that indeed advertising has a positive effect on

consumers' purchase, and it positively influences the sales of companies.

We found that most work done in the subject found out the effects of advertising on

companies' sales using various econometric tools. Little be said of work done on the

consumers' side using econometric analysis.

In this study, most literatures were not within Ghanaian context; hence, there is a gap in

existing empirical literature review on the effect of advertising on consumer buying

behaviour. This study aims to fill this gap by focusing on how adverts affect consumer

buying behaviour in telephony market.

Conceptual Review

The goal of conceptual review is to categorise and describe concept relevant to the study or

topic and outline a relationship between them.

The Concept of Advertising

The advertising concept explains in five steps sender, encoding, message, decoding, and

receiver. This process explains different stages through which a message formed travels to

the audience. The advertising message is not just a message; it is a bundle of representation

of the product and the company.

Communication Process

The communication process starts from the sender and ends up to the receiver (Schramn,

2012). All the advertising techniques are based on communication. It has four basic

components; Sender, encoder, message and decoder

1. Sender
According to Czimkota and Ronkainen (2015), a sender is an individual or firm who feels the

need to deliver the message and select the combination of symbols, pictures, music, or words

as a message to be transmitted. All the responsibility of the whole process is on the shoulders

of the sender. It is up to the sender how he designs the message and which information he

uses for the audience.

2. Encoding

According to Czimkota and Ronkainen (2019), encoding is the design of the symbolic

arrangements, which should be understandable by the receiver. Encoding is the functional

stage where the sender of the advertising message sees the functionality of the codes towards

the receiver of that particular advertising message.

3. Message

The message is complete encoding. Bovee and Thill (2011) define the message as the idea

which is capable of being transmitted. When the complete message is encoded, it is now

ready to transmit to the audience. The message is diffused to the audience through the

prescribed media or media by the source.

4. Decoding

Decoding is the understanding of the delivered message. It is the process of translating the

message into an idea (Bovee and Thill, 2013). It is also the crucial stage of advertising that

indicates how recipients perceive the delivered message. If it was designed rightly according

to the receiver's knowledge and understanding level, the feedback could be positive.

Schramm (2012) explains the advertising process in sequential stages. These stages define the

source, the symbolic style as encoding, transmission as the signal, and the comprehension of

symbolic style as decoding. Individuals or organisations who receive the message as the

receiver reacts to the source as feedback and the distortion in the process as noise.

According to Kotler and Keller (2016), a sender should know the audience very well before

designing the message. The audience can be varied preferences or homogeneous, which

should carefully be studied. The suitability of all of the elements is essential. The intensity of

the noise can increase if the message will not be suitable, leading to advertising failure.

Stages of the Consumer Decision-making Process

Consumers go through five stages before reaching their final decisions. These five stages

include; need recognition, information searching and processing, identification and

evaluation of alternatives, purchase decision, post-purchase behaviour. Most buying decisions

of consumers are based on these five stages of consumers' buying decisions.

Stage 1: Need Recognition

The buying process initiates when people recognize their unsatisfied needs. There are two

kinds of needs, namely functional needs, and psychological needs. Functional needs are

related to the product's performance, whereas psychological needs satisfy when customers

feel content with shopping or owning a product they long for (Blackwell et al., 2011).

Although there are many different ways to characterize needs, the most widely known is

Maslow's hierarchy which specifies five need categories arranged in a sequence from basic

lower-level needs to higher-level needs. Five needs identified: physiological, safety and

security, social, ego, and self-actualization.

Products can fill all these needs, becoming increasingly important (Zeithaml and Bitner,

2010).

Stage 2: Information Searching and Processing

Information search begins when a consumer perceives a need that might be satisfied by

purchasing and consuming a product. The recollection of past experiences might provide the

consumer with adequate information to make the current choice. On the other hand, when the

consumer has had no prior experience, he or she may have to engage in a search for

information (Schiffman and Kanuk, 2017).

A customer can obtain information from several sources such as; private sources (family,

friends, neighbours, etc.), commercial sources (advertising, salespeople, retailers, dealers,

packaging, point-of-sale displays), public sources (newspapers, radio, television, consumer

organizations; specialist magazines) and experiential sources (handling, examining, using the

product) (Tudor, 2017).

Stage 3: Identification and Evaluation of Alternatives

Stage three comes to the pre-purchase evaluation that consumers compare between different

products and brands to make a purchasing decision. In this stage, consumers pay particular

attention to the attributes which are most relevant to their needs.

Attributes like quantity, size, quality, and price help judge a brand by customers (Blackwell

et al., 2011).

When evaluating potential alternatives, consumers tend to use two types of information; a list

of brands they plan to make their selection and the criteria they will use to evaluate each

brand. Selecting from a sample of all possible brands is a human characteristic that helps

simplify the decision-making process (Schiffman and Kanuk, 2017). Evoked set is the

handful of choices that come into mind when making a specific buying decision. The

consumer visits establishment almost always offers only a single "brand" for sale to purchase

services. The criteria consumers use to evaluate alternative products that constitute their

evoked sets usually are expressed in terms of essential product attributes (Schiffman and

Kanuk, 2017).

Stage 4: Purchase Decision

Stage four refers to the purchase decisions made by the consumers after evaluating the offers

from different retailers. The decision is made by judging which retailers to buy after

investigating the attributes from the previous stage. In contrast, the in-store selection is

affected by the selling skills of the salesperson, visual displays inside the shops, and point-of-

purchase advertising (Blackwell et al., 2011).

Consumers make three types of purchases: trial purchases, repeat purchases, and long-term

commitment purchases. When a consumer purchases a product for the first time and buys a

smaller quantity than usual, this purchase would be considered a trial. Thus, a trial is the

exploratory phase of purchase behaviour in which consumers attempt to evaluate a product

through direct use.

Consumers can also be encouraged to try a new product through such promotional tactics as

free samples, coupons, and sale prices (Tanner, J. F. Jr. et al., 2009). Repeat purchase

behaviour is closely related to the concept of brand loyalty, which most firms try to
encourage because it contributes to more excellent stability in the marketplace (Schiffman

and Kanuk, 2022). A repeat purchase signifies that the product meets the consumer’s needs.

Stage 5: Post-purchase Behaviour

The final stage is the post-purchase evaluation of the decision. It is common for customers to

experience concerns after making a purchase decision. This idea arises from a concept that is

known as "cognitive dissonance." Having bought a product, the customer may feel that an

alternative would have been preferable in these circumstances that customers will not

repurchase immediately (Tudor, 2017).

For clarity, each level depicts as mutually exclusive. However, there is some overlap between

each level, as no need is ever completely satisfied. For this reason, although all levels of need

below the level that is currently dominant continue to motivate behaviour to some extent, the

prime motivator, the primary driving force within the individual, is the lower level of need

that remains unsatisfied mainly (Schiffman et al., 2016).

Consumer Buying Behaviour

Consumer buying behaviour focuses on how individuals make decisions to spend valuable

resources (time, money, and effort) on consumption-related items. This behaviour involves a

holistic approach to buying, and evaluating the product.

According to Proctor et al. (2014), the principal aim of consumer buying behaviour analysis

is to explain why consumers act in a particular way under certain circumstances. Another

author argues that marketers must recognize why and how individuals make their purchase

decision. With this information, marketers can determine better strategic marketing decisions.

They will predict how consumers are likely to react to various informational and

environmental cues and shape their marketing strategies accordingly once they understand

consumer's purchasing behaviour. Without a doubt, marketers who understand consumer

behaviour have significant competitive advantages in the marketplace (Schiffman et al.,

2016).
The two authors Schiffman et al. (2016), in their book, mention two factors that are

influencing the consumers for decision making; risk aversion and innovativeness.

Risk aversion is a measure of how much consumers need to be confident and sure of what

they are purchasing. Highly risk-averse consumers need to be very particular about what

they are buying.

Types of Consumer Buying Behaviour

There are four types of consumer behaviour, namely; complex buying behaviour, dissonance-

reducing buying behaviour, habitual buying behaviour, and variety-seeking buying

behaviour. These are described below;

1. Complex Buying Behaviour

Complex buying behaviour can be defined when consumers are highly involved in making a

purchase decision. Complex buying behaviour calls for a high level of involvement on the

part of the consumer. In the case of high involvement, consumers distinguish salient

differences among competing brands. Consumers are highly involved inexpensive and highly

self-expensive products (Kotler and Keller, 2018).

2. Dissonance-reducing buying behaviour

Dissonance-reducing buying behaviour occurs when the customer finds it challenging to

differentiate among the brands. As a result, consumers may respond primarily to a relatively

better price after the purchasing consumer might experience post-purchase dissonance (after-

sales discomfort). This displeasure is the consumer behaviour displayed mostly by

uninformed consumers (Kotler and Keller, 2016).

3. Habitual Buying Behaviour

Habitual buying behaviour is a consumer purchase decision whereby the consumers' level of

involvement is low. This behaviour means that consumers do not search for such information

among the available brands. They do not find significant differences among the brands and
buy the product without a high level of involvement. If the consumers keep buying the same

brand repeatedly, it becomes their habit (Kotler and Keller, 2016).

4. Variety-seeking Buying Behaviour

Consumer involvement is low in the case of variety-seeking buying behaviour, but consumers

perceive significant differences among the brands. Consumers often switch from one brand to

another (Kotler and Keller, 2016). This purchase decision is joint among consumers who stay

ahead of the latest fashion trends.

Factors influencing Consumer Buying Behaviour

The following are factors influencing consumer buying behaviour.

1. Buyer's readiness

Communication tools vary in cost-effectiveness at different stages of buyer readiness.

Advertising and publicity play the most critical role in the awareness-building stage.

Customer comprehension is primarily affected by advertising and personal selling. Customer

conviction is influenced chiefly by personal selling. Closing the sales is influenced mainly by

personal selling and sales promotion (Kotler and Keller, 2018).

2. Type of market

Communication mix allocations vary between consumers and business markets. Consumer

marketers tend to spend comparatively more on sales promotion and advertising, and

business marketers tend to spend comparatively more on personal selling. Personal selling is

used more with complex, expensive, risky goods and in markets with fewer and larger sellers

(Kotler and Keller, 2018).

3. Product life cycle stage

Communication tools also vary in cost-effectiveness at different stages of the product

lifecycle. In the introduction stage, advertising, events, and experience, publicity have the

highest cost-effectiveness, follow by personal selling to gain distribution coverage and sales
promotion and direct marketing to induce trial. In the growth stage, demand has its

momentum through word of mouth.

Factors affecting Consumer Purchase Decision

There are three categories of factors that affect consumer behaviour: cultural factors, social

factors, and personal factors.

1. Cultural factors

Cultural factors, including the buyer's culture, the subculture, and social class, exert a broader

and profound influence on purchase. Each culture may contain smaller subcultures or groups

of people with a standard value system, life experiences, and situations. Subcultures include

nationalities, religions, racial groups, and geographic regions according to (Kotler and

Armstrong, 2017).

2. Social factors

A consumer's behaviour is also influence by social factors, such as the consumer's small

group, family, and social roles and status. Social class is an invisible stratification of the

inhabitants of the society into different groups based on some traits of the people. Inhabitants

in society get divided into different social classes according to their income level, occupation,

education, and others (Kotler and Armstrong, 2017).

A person's social class can be defined by what he or she does with the money. The

consumption choice of a person also determines the person's position in society. Every social

class varies because of having the traits that set it apart from other classes. Social classes vary

in costumes, language patterns, and many other activities and preferences (Kotler and

Armstrong, 2017).

3. Psychological factors

A person's buying choices are by three major psychological factors: motivation, perception,

and attitudes. Motivation is the driving force within individuals that impels them to action.
Perception is the process by which people select, organize and interpret information to form a

meaningful picture of the world (Kotler and Armstrong 2017).

Attitude describes a person's relatively consistent evaluations, feelings, and tendencies

toward an object or idea. Attitude puts people into the frame of mind of liking or disliking

moving towards or away from them. Attitudes are of considerable importance in

understanding the role of attitudes in consumer behaviour is an appreciation of the structure

and composition of an attitude.

Conceptual Framework

The conceptual framework describes the relationships between the concepts being used.

According to Fisher and Krutilla (2016), the concept and creating a conceptual framework

means to simplify the research task and clear away issues that are not related to the topic and

research question. This study has identified two variables, the independent variable

(advertisement) and the dependent variable (purchasing decision) as expected outcomes. For

this study, the independent variable has been explored into three areas, namely: print media,

broadcasting, social media.

Below is the adopted diagrammatic illustration of the relationship between the two variables,

elaborated by the interconnection between the blocks.

Independent
Print media Broadcasting Social media Variables

Purchasing decision Dependent Variable

Figure 1.0: Conceptual Framework

 CHAPTER THREE

METHODOLOGY

Overview

This chapter deals with all the procedures and techniques used in conducting the study. It describes

the sampling procedures as well as criteria for selecting the study area. It also covers the

instruments of the data collection, data processing, analysis, and presentation. These include the

research design, research approach, setting, population, sample size and sampling techniques,

source of data, validity and reliability of instruments, data presentation and analysis plan, and ethical

consideration.

Research Design

According to George (2022), a research design refers to the overall strategy utilize to carry

out research that defines a succinct and logical plan to tackle established research question

through the collection, interpretation, analysis and discussion of data.

A research design consists of three major types or forms comprising exploratory design

(qualitative study), explanatory design (quantitative study) and descriptive design

(Creswell, 2014). Descriptive research is used to describe characteristics of the population

or the phenomenon being studied. It addresses question ‘what’ (what are the characteristics
of a population or situation under study?). The main design used by the researcher was

descriptive research design. However, Frequencies, averages and other statistical elements

were also used in the study.

Research Approach

Research cannot be adopted in a study without a given research approach. Thus, research

approach plays vital role in any scientific research. A research approach is a plan or

procedure for a study. There are three basic research methods – quantitative, qualitative

and mixed method, in collecting data for the purpose of obtaining information from them,

to solve or answer a particular research problem or question (Ghauri & Grønhaug, 2015).

Quantitative data is any data collection technique or data analysis procedure that generates

or uses numerical data (Saunders et al., 2009). On the other hand, qualitative data is in

form of descriptive accounts of observations or analysis which is conducted through the

use of conceptualization (Ghauri & Grønhaug, 2015). Mixed Method is therefore the

combination of both quantitative and qualitative approach in data collection.

For the purpose of this research, quantitative data was employed. With the strategy of

survey, it allows the collection of a large amount of data from a sizeable population in a

highly economical way (Saunders et al., 2019). It is also a logical and critical approach

which allows the researcher to control measurement and outcome. Since the scope of the

research focuses on a geographical area; thus, the aim of the research method is to reach

individuals ranging in different age and gender groups within Gomoa-Buduburam, and the

more responses are collected the higher the credibility of the findings are. The survey was

created merely for the collection of only quantitative data.

Setting

The study is executed using the youths of Gomoa-Buduburam and the telephony market

(MTN). The researcher conducted the study in Gomoa-Buduburam. This is because it

comprises of several and different people who engage with the telephony market. Again, it
was easier for the researcher to collect data from respondents who are youths and are

consumers of telephony product and services.

Population

Accoding to Kothari (2016), study population is defined as the total of individuals from

which the researcher selects a sample of the study. Population is the entire group of subjects

the researcher wants information on (Stockemer, 2019). The population for this research were

the youths of Gomoa-Buduburam which amounted to 784 youths. The research made use of

about seventy-five percent (75%) of the area size of the entire community, hence making it

easier to make a generalization of the entire community.

Sample size and Sampling Techniques

Sampling is less costly and less time consuming (Saunders & Lewis, 2012). Sampling is that

part of statistical practice concerned with the selection of an unbiased or random subset of

individual observation whiles Sampling Technique is the method used in drawing samples

from a population usually in such a manner that the sample will facilitate determination of

some hypothesis concerning the population (Steeter, 2000). Ideally, it is preferable to include

whole population to investigate an issue; however, “practically, it is always not possible to

study the entire population” (Acharya, 2013, p. 330). The size of the population under

consideration is typically taken into account when determining an acceptable sample size.

Therefore, we attempt to select a ‘sample’ that represents the population under study.

Researchers will use sampling as a technique (procedure or device) to systematically choose

a smaller group of representative objects or people (a subset) from a pre-defined population

to act as subjects (data sources) for observation or experimentation in accordance with the

goals of their study (Sharma, 2017). It is significantly important for the researcher to make

sure that the selected sample is neither too big nor too small. Contrary to popular belief,

samples should not be too small or too large in the ideal scenario (Faber & Fonseca, 2014).
Based on these, the sampling techniques used were Taro Yamane method for sampling, and

simple random sampling.

Taro Yamane Method for Sampling

The Taro Yamane method is a statistical sampling technique that is used to determine sample

sizes in research methodology. It helps to improve the accuracy level in determining the

chunk of a population to sample at a reasonable margin of error. ([Link], 2023).

Yamane (1967) provides a simplified formula to calculate sample sizes. This formula was

used to select the sample size from the target population of 784.

This study sample included 265 respondents in total, and this was enough size to represent

the entire population and enabled the attainment of the purpose of measuring some elements

of the population and drawing conclusions regarding the entire population using the y mean

formula.

Using Yamane’s formula to determine the sample size of 265 youths selected from the target

population 784: Sampling size formula:

N
n= 2
1+ N (e)

Where n is the sample size, Nis the population size, and e is the level of precision.

784
Sampling ¿ n= 2
=265 youths
1+784 (0.05)

Simple Random Sampling

Simple random sampling is an extensively used sampling method in scientific research.

Simple random sampling is selected for populations which are highly homogenous where the

members of the research are randomly selected to participate in the research (Bhardwaj,

2019). Simple Random Sampling is the simplest and most common method of selecting a

sample, in which the sample is selected unit by unit, with equal probability of selection for

each unit at each draw (Singh, 2003, p. 71). According to Acharya (2013,), In this method,
every individual has an equal chance of being selected in the sample from the population.

Simple random sampling makes sure that every person in a population has an equal

probability of being chosen as a response (Thomas, 2020). Moreover, in this method,

researcher develops a numeric list of all sample size and by using computer program generate

random numbers when they deal with large sample size which will provide them a list of

population for the intended research project (Omair, 2014; Rahi, 2017). Due to likelihood and

chance, the sample should include individuals who share traits with the general population,

including some who are elderly, some who are young, tall, some who are short, fit, some who

are unfit, wealthy, and some who are poor (Cohen et al., 2018). Thus, in simple random

sampling, the researcher needs to specify the general common characteristics of the

individuals that can participate in the study.

Random sampling enabled the selection of respondents among consumers of telephony

products in the Gomoa-Buduburam community. This sampling helped the researcher select

respondents on equal chances to form the study sample and reduce the researcher's biases in

the sampling process. Based on the sample frame these customers were randomly picked

among consumers who used telephony product in the Gomoa-Buduburam community.

Source of Data

The data were primary collected directly from the respondents through questionnaires and

secondary data, which involves data already collected by other authors hence stored in

articles, newspapers, books, and research reports as examples, and these data were used based

on the subject matter to find out what they say about the effect of advertising on consumers

buying behaviour.

To successfully achieve the objectives of this study, the researchers collected data in order to

obtain the necessary information required. According to Saunders (2012), there are two types

of data collection methods namely; primary and secondary source of data. Primary data is the

data collected specifically for the research project being undertaken (Thornhill & Saunders,
2013). Jankowicz, (2015) further indicates that when a primary data collection method is

used to obtain data, it is more relevant and consistent with the set of objectives to the study.

The study used a primary data collection method as the data was obtained directly from the

youths. There are various instruments used to collect primary data, some of these include

observation, survey, questionnaire, focus groups and interviews.

The data collection instrument used for this study was questionnaire. Kumar (2011) explains

that a questionnaire is the basic research tool made up of a formalized set of questions which

are drawn in relation to the research problem and is used to obtain information from the

respondents which is in tend used to find solutions to the identified research problems.

Validity and Reliability of Instruments

According to Fraenkel, J. R., and Wallen, N. E. (2010) validity refers to the degree to which

any researcher's inferences make, 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 validity entails

the extent to which questions in the instruments cover the ground to explore.

Kothari (2006) and Saunders et al. (2012) defined reliability as the eminence of consistency

or trustworthiness of a study or measurement. Measuring instrument is trustworthy if it

provides unswerving results. That means if the same or a different researcher repeats the

study it should bring into being more or less the same results. Reliability of the questionnaire

was evaluated using the Cronbach’s alpha, which measures the internal consistency. The

value of the alpha coefficient ranges from zero to one (0-1) and may be used to describe the

reliability of factors extracted from dichotomous and or multi-point formatted questionnaires

or scales. A higher value shows a more reliable generated scale (Cronbach, L. J. (1951).

Cooper & Schindler (2008) has indicated 0.7 to be an acceptable reliability coefficient.
Data Presentation and Analysis Plan

Data analysis is a process that involves editing, coding, classifying, and tabulating the

collected data (Kothari, 2014). In this study, the researcher employed both qualitative and

quantitative data analysis techniques.

The descriptive statistics will be used to give detail accounts of the background of the

respondent, whiles the regression analysis will aid in establishing the effect of advertisement

on purchasing decision in the telephony market. A statistical Packages for Social Scientists

(SPSS version 20.0) was used in the process of data analysis. The data collected presented

statistics for precise explanations. The data were also presented in tables and charts using

words, numbers, and percentages; further, the following measures, mean, median, and mode,

were used. Also, a graphical presentation of data to compare the variables of advertisement

and consumer buying behaviour.

Two stages were used in editing the data; thus, during the field and post-field editing. The

researcher's field editing reviewed reports for completing the abbreviated forms while

interviewing the respondents. The survey completed after the post-field editing, and all the

scheduled forms (questionnaires) were collected together.

Data was assigned with some alphabetical or numerical symbols or both to the answers. The

alternatives were mutually exclusive that is defined in one concept or term only. As a way of

keeping response, a descriptive statistic of the data is present in graphs. The researcher cross-

tabulated some variables like age, gender (sex), advertising effect, and purchase of products.

Data were classified based on descriptive characteristics like age, gender (sex), occupation,

level of experience, etc.

Ethical Consideration

The intention for conducting this research is not to harm the participant of this research study

in anyway. The researcher obtained full consent of the participant prior to the study and

assured the research participant of privacy protection. Therefore, by way of prioritizing the
dignity of the research participant, this research study will keep the identity of the

participants anonymous and provides adequate level of confidentiality of the research data.