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Coca Cola

In: Business and Management

Submitted By Mahendrakumar
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INTRODUCTION

Research Title and Brief

This research work will study on the impact of advertising campaign of Coca cola on buying behaviour of consumers in Malaysia
Problem Statement

This research aims to find out the different ways and forms of advertising and to try to assess or measure how advertising in different ways can lead to impact on customer buying behaviour.

Coca-Cola has reasonable Advertising techniques and various types of adverting, like TV adverting, radio adverting, and billboard adverting, so the target consumers can aware of the products and acquire more knowledge, this is the importance of adverting. The Advertising strategy can affect the consumers, make the consumers like their products, and then from preference to conviction about their products, all of the feelings are the foundation of consumer’s purchasing behaviour.

Geographical Location of This Study

Various shopping like GIANT, TESCO, and JUSCO etc. In around negeri simbilan –seremban

2.2Review of Literature

“Advertising is the non-personal communication of information of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through various media.”(Melewar, 2004) . “Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups.” (Hausman, 2000) Buying Behaviour is the decision processes and acts of people involved in buying and using products. Advertising therefore aims to influence the customer decision making process.

Figure2-1: Customer Decision Making Process

Source from:Tyagiand Kumar, 2004

Importance of Advertising

“Advertising creates awareness in people. When general public becomes conscious to the products, services and goods under the brands, they persuade people towards these brands and make them buy them as better brands.”(Kanso, 1992) Advertising can be used to make business more popular within the circle of potential buyers. “Advertising, in fact, is proper promotion of the products not selling of item.” (Tai,1997) “Advertising does not give a proper awareness of brands but a nice introduction of companies as well.” (Ashley, Granger and Schmalensee, 2008)
Print Advertising - Newspapers, Magazines, Brochures, Fliers

“The more an advertisement is more visible and attractive in the form of print the more it is likely to be noticed and thus compel customers to consume the advertising product.” (Kihlstrom and Riordan, 2003)

Outdoor Advertising - Billboards, Kiosks, Trade-shows and Events

The most common examples of outdoor advertising are billboards, kiosks, and also events and trade-shows organized by the company. (Link, 1988)Real and catchy advertisements attract the passer-by buying decision making process influencing with information about a product.

Broadcast Advertising - Television, Radio and the Internet

“Broadcast advertising is a very popular advertising medium that constitutes several branches like television, radio or the Internet.”(Yi, 1990)

Celebrity Advertising

“Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.”(Magnaglobal, 2011)

Advertising Strategy and Advertising Techniques

“An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services.” (Metz, 2003) “Positioning is about presenting your offer in a certain way which in turn wills customers. The most powerful advertising technique on the Internet is showing up in organic search results (ideally first page, in the first three results). The way you technically expose the market to any type of strategized advert is thus the technique.” (Duke, 2004)

Research Hypothesis

1) H0 –There is no relationship between advertising techniques and customer buying behaviour H1- There is a relationship between advertising techniques and customer buying behaviour
2) H0 –There is no relationship between advertising strategies and customer buying behaviour H1- There is a relationship between advertising strategies and customer buying behavior
Research Questions

➢ Qn1:Do advertising campaigns have any impact on consumer buying behavior? ➢ Qn2: Is there any link between the types of advertising and the buying behavior of consumers? ➢ Qn4: How do the different advertising strategies impact consumer behavior? ➢ Qn5: What are the advantages and disadvantages of advertisement campaigns on the buying behavior of consumers?

Research Objectives

1. The basic objective of this research is to assess the importance of advertising campaigns on consumer buying behavior.
2. To determine if there is a relationship between the different types of advertising and change in consumer behavior.
3. To determine the influence of advertising strategies on consumer behavior.
4. To find and recommend the areas of further improvement in advertising campaigns so as to be able to control consumer buying behavior
Methodology

Population

Population is defined as a body of people or to any other collections of items under consideration for research proposal (Collin andHussey, 2009). Targeted population is within the Malaysian market and comes from any of the customers of Coca cola or anyone who has come across a Coca-Cola advert within the country

Sample Size

A sample is a subset of the population (Sekaran, 1992). The larger the sample the greater it provides opportunity for researchers to obtain answers to reflect the actual. The targeted sample was 150 shoppers randomly chosen in different shopping malls.

Sampling Techniques

Sampling methods are classified as either probability or non-probability. “In probability samples, each member of the population has a known non-zero probability of being selected.” (Ardillyand Tillé, 2006). In non-probability sampling, members are selected from the population in some non-random manner and the degree to which a sample might differ from the population (sampling error) can be calculated.The Researcher will randomly select respondents within Malaysia basically targeting shoppers in shopping malls.
Data Collection and Source

Primary Data

In primary data collection, personally monitored questionnaires have been used in this research because the researcher can gather information within a short space of time and it relatively cheap and less time consuming. To conduct primary data questionnaires were randomly passed randomly chosen shoppers who took their time to comply

Secondary Data

Secondary data mostly involves the use of the information collected from articles, books, journals, newspapers and business internal record. Secondary data is used mostly for literature review; there are many reliable sources that give old and recent information that is be helpful to conduct the research.

Statistical Tools

The data was collected in the period of 7 days and then response statistics was fed into the Statistical Package for Social Sciences (SPSS) version 17.0 for analysis and evaluation. Tests such as reliability, regression and correlation where use to analyse the data. These test helped to measure the relationship between variables and to show the strength of relationship between variables used in the questionnaires.

Limitation

The researcher came up against some limiting issues during the data collection.

1. Language

2. Impatience

3. Spoiled papers

4. Time Limitation

5. Economic and Manpower Limitation

ANALYSIS AND INTERPRETATION

Frequency Analysis

Gender

| | |
|˂ 6 |Poor |
|0.6 to < 0.7 |Moderate |
|0.7 to < 0.8 |Good |
|0.8 to < 0.9 |Very good |
|0.9 |Excellent |

Source from: Kirkpatrick and Feeney, 2010

Advertising Techniques

|Reliability Statistics |
|Cronbach's Alpha |N of Items |
|0.79 |6 |

Cronbach’s alpha 0.79 is for the variables advertising strategy and from the rules above it shows that the strength of association is moderate because it is between 0.7 and 0.8, (Kirkpatrick and Feeney, 2010).

Correlations
The researcher will use correlation coefficient to test hypothesis. Pearson correlation is better when testing for correlation because it is accurate, (Pallant, 2011). The level of significant must be 0.01 and should be two tailed test.

Correlation of Hypothesise 1

H0: There is no relationship between advertising techniques and customer buyingbehaviour

H1: There is a relationship between advertising techniques and customer buying behaviour

Descriptive Statistics

| |Mean |Std. Deviation |N |
|AdvertisingTechniques |2.5845 |1.24481 |142 |
|Consumerbuyingbehaviour |1.7817 |.95365 |142 |

|Correlations |
| | |AdvertisingTechniques|Consumerbuyingbehaviour |
|AdvertisingTechniques |Pearson Correlation |1 |0.674 |
| |Sig. (2-tailed) | |0.578 |
| |N |142 |142 |
|Consumerbuyingbehaviour |Pearson Correlation |0.674 |1 |
| |Sig. (2-tailed) |0.578 | |
| |N |142 |142 |

**. Correlation is significant at the 0.01level (2-tailed).

The table above shows that there is a moderate relationship between advertising techniques used and the consumer buying behaviour because it is 0.674. According to Burns and Bush (2000) the relationship is positive between advertising technique and consumer buying behaviour. Therefore, H1 is accepted and H0 is rejected.

Correlation of Hypothesise 2
H0:There is no relationship between advertising strategies and customer buying behaviour

H1:There is a relationship between advertising strategies and customer buying behaviour

Descriptive Statistics

| |Mean |Std. Deviation |N |
|Advertising Strategy |2.4155 |.91669 |142 |
|Consumer buying behaviour |1.7817 |.95365 |142 |

|Correlations |
| | |Advertising Strategy |Consumer buying behaviour |
|Advertising Strategy |Pearson Correlation |1 |0.218** |
| |Sig. (2-tailed) | |0.009 |
| |Sum of Squares and Cross-products |118.486 |26.880 |
| |Covariance |0.840 |0.191 |
| |N |142 |142 |
|Consumer buying behaviour |Pearson Correlation |0.218** |1 |
| |Sig. (2-tailed) |0.009 | |
| |Sum of Squares and Cross-products |26.880 |128.232 |
| |Covariance |0.191 |0.909 |
| |N |142 |142 |
|**. Correlation is significant at the 0.01 level (2-tailed). |

The table above shows that there is a relationship between advertising strategies and the consumer buying behaviour but it is very weak because it is 0.218. According to Burns and Bush (2000) the relationship is very weak between advertising strategies and consumer buying behaviour. Therefore, H1 is accepted and H0 is rejected

CONCLUSION

Summary of the Findings of Hypothesis

|Study hypothesis |Findings |
|There is a relationship between advertising strategies and consumer |Accepted |
|buying behaviour. | |
|There is no relationship between advertising strategies and consumer|Rejected |
|buying behaviour. | |
|There is a relationship between advertising technique and consumer |Accepted |
|buying behaviour. | |
|There is no relationship between advertising technique and consumer |Rejected |
|buying behaviour. | |

Conclusion

In conclusion, the advertising strategies that lead to an impact or influences consumer buying behaviour on Coca-Cola products have been identified. These factors are ideal kids or families, family fun and heart string and sound good, scale and repetition of the advertisements. It has noted that there is a significant relationship between advertising strategies and consumer buying behaviour through the test on hypothesis The H1 on hypothesis were accepted. The identification of the steps need to taken by the management to enhance consumer buying behaviour is found. The researcher encountered few constraints and limitations during the research and these are limited time, and some of the respondents did not want to answer the questionnaire. The collection of data was done using the primary research method.

References

- Ashley, R, Granger, C. W. J and Schmalensee, R. (2008) “Advertising and Aggregate Consumption: An Analysis of Causality,” Journal of Political Economy, Vol. 48, No. 5, pp. 1149-1167. - Burns, A.C and Bush, R.F. (2000) Marketing research, Volume 1, New Jersey: Prentice Hall. - Bauer, H.H and Martin, I. (2008) “Exploring the Power of Adaptive Selling Techniques on Consumers’ Buying Behaviour,” Journal of European Retail Research, Vol. 22, pp. 51-68. Bergemann, D and Bonatti, A. (2011) “Targeting in advertising markets: implications for offline versus online media,” RAND Journal of Economics, Vol. 42, No. 3, pp. 417–443. - East, R, Wright, M, and Vanhuele, M. (2008) Consumer Behaviour: Applications in Marketing, Thousand Oaks: SAGE Publications. - Harris, G. and Attour, S. (2003) “The international advertising practices of multinational companies: a content analysis study,” European Journal of Marketing, Vol. 37 No.1/2, p. 154-68. - Hansen, T. (2005) “Perspective on consumer decision-making: An integrated approach,” Journal of Consumer Behaviour, Vol. 4, No. 6, pp. 420-437. - Kanso, A. (1992) “International advertising strategies: global commitment to local vision,” Journal of Advertising Research, Vol. 32 No. 1, pp. 10-14. - Melewar, T.C. (2004) “International advertising strategy A review, reassessment and recommendation,” Journal of Management Decision, Vol. 42 No. 7, pp. 863-88. - Solberg, C.A. (2002), “The perennial issue of adaptation or standardization of international marketing communication: organizational contingencies and performance”, Journal of International Marketing, Vol. 10 No. 3, pp. 1-21.
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Problem recognition

Information search

Alternative evaluation

Purchase decision

Post-purchase behaviour…...

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Coca Cola

...The History of Coca-Cola A local pharmacist by the name of Dr. John Stith Pemberton invented the Syrup for Coca-Cola on May 8, 1886 in Atlanta, GA. This syrup was first put on the market when he carried the product to Jacobs pharmacy located down the street where it was pronounced “excellent”. It was then placed on sale as a soda fountain drink for five cents a glass. Later adding carbonated water with the syrup it was then that the drink became known as “Delicious and Refreshing”. A slogan that continues to live on today. The first advertisement was posted in the Atlanta Journal inviting citizens to try “the new and popular soda fountain drink”. Never realizing the potential of the new beverage, Dr. Pemberton gradually sold portions of his business to various partners. Prior to his death, in 1888, he sold the remaining portions of Coca-Cola to Asa G. Candler. Candler, a native of Atlanta with a great business acumen, continued to buy additional rights and acquire complete control. Proclaiming his control in the Atlanta Journal on May 1, 1889. by 1892 Candler formed a Georgia Corporation known as The Coca- Cola Company, which had an initial capitalization of about $100,000. On January 31, 1893 the “Coca-Cola” trademark was registered in the United States Patent Office. Coca-Cola has been a very successful business since its invention as we have found. It has now become a symbol of friendship and a Global Business. This product can be found in just about every...

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