Impact of advertising on consumer purchase behaviour

Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting the lives of people around the world. Yet, given the advertising clutter has increased tremendously, and stronger than ever, it is very important for businesses to differentiate themselves from competitors by setting up an even stronger, entertaining and innovative advertisement messages, as well as the support of various events. Companies spend billions of dollars on marketing strategies in order to stay key players in their industry.

Purpose: The overall objective of this paper is to gain a deeper understanding of the various international and local factors influencing the consumer preferences of the local market.

Conclusions of the international advertising and international sponsorship, or may affect the local target group in different ways, but they also affect the international brands that they have an impact on brand image and brand. In addition, depending on the person’s age, other than the interests of consumers, brands, and thus have an impact on the international brand alone, but together with the international advertising and international sponsorship. Together, these factors influence the way a brand is perceived, and consequently affect the consumer preferences.

QUOTATION

“We shall not fail or falter; we shall not weaken or tire…Give us the tools and we will finish the job”

INTRODUCTION

“Advertising can be traced back to the beginning of recorded history. Archaeologists working in the surrounding countries of the Mediterranean Sea dug up signs announcing the various events and offers. The Romans were painted on walls in […] gladiator fights during the Golden Age of Greece, the town criers announced the sale of cattle, finished products and cosmetics is.

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Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting the lives of people around the world (http://encarta.msn.com). In 2000, the international advertising expenditure exceeded 414 billion U.S. dollars (Kotler et al. 2008), as well as Zenith Optimedia (www.marketwatch.com), we believe that spending will continue to maintain the 6 percent growth pace in the coming years , are estimated at 427 billion U.S. dollars last year.

As a consequence, however, the long-term changes, such as the growth of larger and more diverse media, and the arrival of new technologies, especially the Internet, consumers are better informed than ever, and as a result, some of the traditional advertising methods no longer as effective as they used to (www.economist.com).

Instead, companies are increasingly using other marketing tools, such as corporate sponsorship of sport, arts and cultural events to name a few (Ruth et al. 2003). Sponsoring argue that the world’s fastest-growing form of marketing, and in 2009 the world was estimated to be spending up to $ 30,600,000,000th In addition, sponsorship is used in the belief that companies have access to international markets and appeal to local consumer preferences (Dolphin 2008). This is a promotional tool to be successful in reaching a large global audience, and he saw in consumer behaviour and preferences differ greatly from product to choose, it seems, why supporters performed better than other marketing methods (http: / / geoff.cox.free.fr).

Still, the effects of globalization, the cultural boundaries between advertising has increased immensely, and while one expert says that the average person exposed to 1,600 advertisements a day, another expert estimated the total number to over 5,000 days (Armstrong et al 2005.) “bumper stickers to billboards to logos on caps and T-shirt” (www.thegredecompany.com). Seeing as advertising clutter has grown large and powerful than ever, it is very important for companies to differentiate themselves from competitors by setting up an even stronger, entertaining and innovative advertisement messages.

However, this has proven to be very costly, particularly in highly competitive product markets, such as the soft drink industry, which has a higher advertising costs, remain the only competitors.

Each one of the big international companies to emerge as the dominant market leader in its market area. Such companies annually spend billions of dollars in advertising campaigns. Some of these advertising companies have celebrated around the world, and launched the first advertising theme in the early 1900’s and since then has seen many popular theme has been internationally recognized. Today, some companies heavily dependent on the “image of happiness and togetherness, tradition, and nationalism”, while others prefer the appeal of celebrities, popular music, youth, etc., in television commercials.

1.1 Problem Discussion

Not only that it is difficult to understand consumer behaviour and needs of target groups in the domestic market, but the multinational companies, this is an even greater struggle. Despite the fact that most of the world consumers are certain things in common that the values and attitudes, and behaviour often differ. As a result, it is very important for international marketers to understand these differences and adjust their marketing strategies. Failure to do so could result in disaster, the company’s international product and marketing programs. Specifically, to what extent the international consumer advertising should be adapted to the specific characteristics of the different countries of great concern to most companies (Armstrong et al. 2005). Consequently, the debate is whether to standardize or to adapt to the campaign found that dominate the area of international marketing literature for decades (Harris, et al. 2003).

Although some major international advertising campaign has been successful, most multinational companies are in difficulties, and encourages consumers to various countries through a marketing program. Moreover, given today’s economy is increasingly intertwined than ever before, all possible methods that can be used to support the building of global brands attractive. One of the main aims of the international marketers to create an image that is well known throughout the world, but also related to the specific report (Fahy et al. 2004). While advertising is still the number one communications tool for businesses, large changes, such as the technology needed to campaign strategies by other companies other than the traditional marketing communication tools. Moreover, employing a mixture of all marketing communication elements to maintain and build competitive advantage (Erdogan et al. 1998).

One such promotion strategy, that sponsorship, which to some extent share the same advertising purposes, such as maintenance and building corporate awareness. Although all advertising and sponsorship messages delivered to large audiences, the future of the environment directly and indirectly, to convince many. Moreover, Erdogan et al. (1998, p. 372) argues that the “messages sent by companies, controlled, to a greater extent in the case of advertising, as the case of sponsorship, even if sponsorships are designed to provide a more accurate, less crowded way to marketers, to promote products and services through the sample, presentations, competitions and a number of interactive, educational, and family activities. ” Although many people believe that the support is a possibility that a marketing communication tool for the 21st century, the research remains without a theoretical base, and there is no clear definition of sponsorship (Dolphin, 2003).

The majority of advertising research only suggests that there is an ad in the midst of their best, are valued, and despite the fact that an advertisement can be even more memorable, or cause more attention than others, this does not mean that there is no a clear link between consumer preferences and marketing success (Hartley, 2001). The majority of the sponsorship of research focused on “consumer awareness of sponsors, says the sponsor’s image” (Carrillo, et al. 2005, p. 51), and accordingly there is little evidence of impact on the company’s sponsorship activities of the consumers’ attitudes and purchasing behaviour. Although demographic segmentation is still an influential role in economic theory, most research focused on how demographic variables affect the marketing and communications, in particular the gender and the media. Only a handful of research can be found in other demographic variables, including age segmentation theory is relatively limited (FitzGerald et al. 1996). As a result, some knowledge of the factors affecting consumer purchase behaviour is required. Thus, we propose the following question: to what extent is not advertising, sponsorship, brand, and age affect consumer preferences?

1.2 Purpose

The overall aim of this paper is to gain a deeper understanding of the various international and local factors influencing the consumer preferences of the local market. Specifically, we want to examine the effects of the international well-known advertising campaigns in the consumer buying process. We also want to learn whether or not there is a link to the above-mentioned factors’ influence on the choice of homogenous products.

THEORETICAL FRAMEWORK

2.1 Consumer Preferences

The consumer market is the sum total of 6.3 billion people, and thus there is no strong demand from a large variety of goods and services, in particular, consumers differ in that age, gender, income, education level, and the taste. In addition, the relationships of the different consumers, and they interact with other elements of the world’s environment, influences the choice of products, services and businesses (Kotler et al. 2005).

The reason why consumers buy what they do are often deeply rooted in their minds, so that consumers do not really know what influences purchases, such as “Ninety-five percent of the thought, emotion, and learning [drive, what purchases] to occur the unconscious mind, it is not our consciousness “(Armstrong et al. 2005, p. 143).

The consumer buying process is influenced by many different factors, some of which marketers cannot control, such as cultural, social, personal and psychological factors. However, these factors should be taken into account in order to effectively reach target audiences (see Figure 1) (Kotler et al. 2005).

Figure 1

FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural

Social

Personal

Psychological

– Culture

– Subculture

– Social class

– Reference

groups

– Family

– Roles & status

– Age & lifecycle stage

– Occupation

– Economic situation

– Lifestyle

– Personality & self

concept

– Motivation

– Perception

– Learning

– Beliefs &

attitudes

Buyer

The cultural factors

Culture “is the basic values, perceptions, wants and behaviours taught by a member of the society, the family and other important institutions”, and is the primary reason a person wants and behaviour. Although from different social groups of its own culture, which influences consumer purchasing behaviour, influence the extent to which behaviour is changing from country to country. Each cultural group can be divided into groups of common people’s life experiences and situations, otherwise known as subcultures (Kotler et al. 2005), such as ethnic, racial, religious, and geographic areas. The third factor is the culture of social class, which means, inter alia variables: occupation, income, education, and wealth.

The social factors

The second classification of factors influencing consumer behaviour in the social group in which members of small groups, social roles and status, and family of any individual to a certain extent. Some of these groups are directly affected by one person, that is, membership groups, groups that person belongs, and the reference groups, “which serve as direct (face-to-face) or indirect points of comparison or reference to the person forming attitudes or beliefs. However, some people affected by groups that do not belong to these groups are inspiring reference groups, groups that the person wants to belong to, and admiration of a fan of an idol, etc.

Finally, the wife, husband or child is a strong impact on the consumer, and so the family is the most basic consumer buying organization in society.

Personal factors

The consumers ‘personal characteristics such as age and life-cycle stage, occupation, economic status, lifestyle, personality and self-image and influence consumers’ purchasing behaviour. In addition, depending on a person’s occupation and financial situation and the stage of life a person is, their needs shift product. A person may form his own life world and the way he chooses to act, so a person activities, interests and opinions they form a way of life, and influences the choice of products. In addition, every person unique, so different from an individual’s personality characteristics that are often portrayed in the properties, such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness.

Psychological factors

Four items make up the group of factors, namely motivation, perception, learning, and beliefs and attitudes. When a person is motivated, he acts accordingly, and actions by the person’s perception of the situation. Detection of individual selection, organization and interpretation of the information that flows through people’s common sense and, consequently, a significant picture of the world was formed. When people experience new things, changes take place in the behaviour, ie, new things to learn when to take action.

As a result, beliefs and attitudes, purchasing, and thus influence shopping behaviour.

2.2 Target group

Today, companies recognize that they can not be called on to consumers in the market, because consumers are too many, too widely scattered and too diverse needs and buying practices. Therefore, companies must identify those parts of the market that they can best serve, and thus build a proper relationship with customers. This is also known as target marketing, and the process of evaluating each market segment attractiveness and selecting one or more segments into. One such segmentation demographic segmentation, when the market is divided into groups based on demographic variables such as age, sex, family size, religion, race, etc. In addition, the proportion of buyers in this segment, the same needs and characteristics, however, that the company is chooses to serve. The paper focuses specifically demographic segmentation, particularly age.

2.2.1 Age

Seeing the needs and interests of consumers of products depends on their age, the age of the firms employ segmentation, offering different products, or other economic approaches to different age groups are divided in different age groups are: children, teenagers, young adults and the baby boom, so this book will focus on teenagers, young adults and baby boomers.

Teenagers

This group of consumers of different needs, such as are required, the independence of the approval, and responsibility, in addition to the need for experimentation. Teenagers are increasingly the task of buying products for the family, as not only more free time, but for the purchase of more than their parents do not. As a result, marketers are targeting the ads are primarily for teens. In order to gain the attention of teenagers more effective, advertising must be honest, clear messages, and use of humor. In addition, young people are generally unreliable, and the preference for brand switching is faster than any other age group, since they need to accept your friends. Finally, the teenagers of the “easy targets, because an adult in a culture of pure consumption. Therefore, they are more tuned to media because the media is much more tuned.

Young adults

18-34 year olds belong to a group of young adults. This group is to themselves, being too young to worry about “grown up” issues, and to live their lives in the “moment” instead of “tomorrow”. Seeing as this age group is involved in most of the family, shopping, marketers have found to evaluate the advertising and the products are very sophisticated way. Furthermore, because they are an adult at the age of media and technology, “they see a kind of advertising is fun, but it is off the excessive trading.”

Baby boom

Baby boomers on a large cohort of people born after World War II. They have created a permanent propensity to consume, given the fact that the delay getting married and children, in order to focus on careers, and thus the financial platform. Baby boomers buy more and save less than in previous generations and, therefore, marketers aim to satisfy wants. Finally, an ad, that the information is more likely to receive intensive issued by this group, such as an image-oriented advertising.

2.3 Brand

The brand can be defined as a name, phrase, symbol or design, or a combination thereof, which is intended to mean a seller of goods or services, or group of sellers and to differentiate them from those of competitors “(Keller, 1993 , p. 2). Brand image will be applied when brand associations held in the mind of consumers carried out in connection with the consumer’s perception of the brand. These organizations have direct experience of the developed product, the information provided by the company and that of the associations held about the company and the origin, etc.

2.3.1 Brand Equity

Brand is a set of tools and resources will complement the brand name and symbol, or subtracts the value that a product or service to a firm and / or the company’s customers. These assets and liabilities are classified into four categories: brand loyalty, brand awareness, perceived quality and brand associations.

Brand Loyalty

Sort of brand loyalty repeat purchasing behaviour reflects a conscious decision to continue buying the same brand. In addition, to ensure that brand loyalty is taken, the customer must be a positive attitude towards the brand, and to take part in repeat purchases. If fact, a brand advertised a lot and have a good time, it creates an emotional attachment to either integrate the customer’s own image or linked to past experience.

Brand awareness

Brand awareness means that the recognition given him a brand that allows consumers to identify the brand product, and thus a permanent competitive advantage for companies. The low involvement products “are often purchased for a minimum of thought and effort”, the consciousness of the consumer’s purchase decision is influenced by a kind of familiarity, while the high-involvement products, brand awareness to consumers in the sense of presence and assurance.

The perceived quality

Perceived quality is defined as “the customer’s perception of the overall quality or superiority of a product or service compared to alternatives for its intended purpose.” Initially perceived quality of consumers’ perception of a product, and thus a tangible overall opinion about the brand. However, this feeling is usually based on the fundamental dimensions such as product characteristics and performance.

Furthermore, the perceived quality is often distinguished from the actual quality, and from past experience on previous products or services.

Brand Association

Brand association can not be directly or indirectly to the client’s thinking about the brand. Associations, which are based on the importance of the purest product attributes, such as the physical and moral characteristics, product characteristics and customer benefits – “the desirable consequences of consumers look for when buying and products and brands that customers buy the motive the product, as a result of brand loyalty.

2.3.2 Brand Positioning

Positioning refers to the “consumers ‘perception of the brand compared to competitors’ brands, that is, the mental image that a brand or company as a whole, recalls.” Furthermore, the researchers argue that tracking can provide benefits to consumers in many various properties of the product. Thus, the position of the companies brands / products are clearly in his mind the target audience. This can be done to position the product properties, however, companies should take into account that these properties can be easily copied by competitors. More specifically, consumers often do not care attributes as such, but rather to what the attributes actually make them. Another way in which marketers can position brands by associating a brand name which includes a pleasant and desired benefits. However, strong brand positioning in favour of or in addition to attribute and instead of placing a strong faith and values.

2.4 Advertising

Advertising informs consumers of the existence and benefits of products and services, and tries to persuade consumers to buy them, claim that advertising is designed to reach target consumers did not think or respond to product or brand. As the method of achieving targets advertising, ads, and their contents play an important role in the process of commercial communication. Specifically, it is the advertised product and brand and the content of the advertisement, which determine a greater or lesser memory retention among the consumers.

The targets of advertising campaigns are summarized in the figure below:

Figure 2

POSSIBLE ADVERTISING OBJECTIVES

To inform

• Telling the market about a new product. • Describing available services.

• Suggesting new uses for a product. • Correcting false impressions.

• Informing the market of a price change. • Reducing buyers’ fears.

• Explaining how the products work. • Building a company image

To persuade

• Building brand preference. • Persuading buyers to purchase now.

• Encouraging switching to your brand. • Persuading buyers to receive a sales call.

• Changing buyer perceptions of product attributes.

To remind

• Reminding buyers that the product may be needed in the near future.

• Keeping the product in buyers’ minds during off seasons.

• Reminding buyers where to buy the products.

• Maintaining top-of-mind product awareness.

As shown in the second figure, there are different advertising goals, and assign its goal, which is to inform, persuade or remind. Introducing a new product category, informative advertising heavily used, if the goal is to build a general need, but the competition increases, persuasive advertising is becoming increasingly important. Here, the company’s objective is to build selective demand for the brand to persuade consumers to provide the best quality for their money. Reminder advertising, on the other hand, the employee keeps the mature products, the customers think the product.

2.4.1 Standardization vs. Adaptation

International marketers and advertisers can reach the market in different ways when advertising a product or service around the world. Or can be a standardized approach, adapted to approach or mixture of the two approaches. While the international campaign advertisising standard used across all markets, the adjusted view of the various advertising campaigns and adapt to different markets, the local conditions.

However, there are many different opinions about the best way to achieve success in the advertising campaigns, and although research has shown that advertisements for certain products be standardized throughout the world, both approaches provide their own unique strengths and weaknesses.

The primary motivation for companies to standardize on advertising is the desire to create a more homogenous picture of the company and the brand on the market for more than a uniform brand image across markets can lead to enhanced global brand. Other benefits include the standardization of the economic benefits associated with cost savings, the ability to implement a coordinated strategy and the appeal of cross-market segment. Moreover, if a well-known international brands, are more likely to be successful, the standardized approach, as these ads make the brand, to remind, and reinforce, such as communicating the product benefits. However, many scientists point out a uniform approach to problems, and therefore supports the market customization and adaptation to fit the “special sizes” in different international markets. Indeed, it was claimed that the various countries and regions other than where the factors such as culture, consumer tastes, racial, disposable income, law, nationalism, technology, society, and the professions. As a result, support for adaptation approach insist that the multinational companies to learn how to adjust to these factors, according to the advertisement. However, both strategies are rejected by different researchers emphasize that the practical difficulty of applying them (Vrontis, 2005). Instead, a mixed approach, also known as the contingency approach may be used as an opportunity to the variance, depending on the situation.

2.4.2 The Language Used in Advertising Campaigns

When the cross-border advertising, advertisers will be to decide not to use the mother tongue of the campaign. There are several reasons that drive companies to use foreign languages in advertising, such as financial and image reasons.

Advertising costs are reduced when the existing foreign-language television ads, instead of new ads available for your native language. Furthermore, in some cases, the benefits of the product image to use the language because it is more effective. The non-English speaking countries, English is the most commonly used foreign language ads. The global company can install an English-language advertising in many countries around the world to see, as most of the country, the first English language. In addition, as the translation of the English language in the local language may not be necessary to use the saved money in the event of a global British campaign.

2.5 Sponsorship

Previous studies have shown that although the various definitions of sponsorship are they all confirm that the sponsorship is primarily a commercial activity, if the sponsoring company to reach the right to promote the objects of the association sponsored a benefit in return. Specifically, “the underwriting sponsorship of special events to support corporate goals by increasing the corporate image, increase brand awareness and promote direct sales of products and services.”

Sponsorship activities are used for many reasons, but the three most common objectives, to understand the overall corporate communication, which includes building and strengthening brand awareness, brand image and corporate image.

Specifically, strategies aimed at increasing brand awareness, advertising is typically employed using a wide range of tools designed to support the brand is the most potential customers possible. However, certain factors, such as the sponsor of industry and company size affect the choice of a sponsorship activity, and thus the targets vary between companies. For example, producers often look for opportunities for general public and the media, as sponsors of the service is more motivated to increase their employees’ morale.

2.5.1 Event Sponsorship

As a result, the amount of leisure in today’s society, sponsors the event has become extremely popular. Connected to the brand’s sponsorship of an event will help companies gain a better consumer awareness and interest in associating an event that is important for consumers. Specifically, if the image is transferred through an association to promote the product is created, a number of external and internal factors.

Event Type

There are various events, such as sports, music and the related festival, event, image and influence in many ways. An event of the image is strongly influenced by one’s attitude in the event of the past, through sponsorship or other types of exposure. Event image influences the evaluation of non-understanding of the case are formed associations held in consumer memory.

Event Description

Many characteristics of a specific type of event than the event occurrence. Events such as the size can be considered along a number of dimensions, such as the length of the event and the level of the media. Indeed, he believed that the professional status of artists, the event’s venue, such as temperature and comfort, the beneficiaries will be affected by an overall evaluation of the event’s image.

Individual factors

An event may have different images for different people as a result of various factors affecting the incident image, and the manner in which the recipients can read the factors. Examples of such events, they are regarded as the number of images, and thus more difficult to associate such an event, an identity. In addition, a person in the history of a particular event can affect one’s perception of an event picture, like a long history of deep-seated and usually causes a continuous picture.

Moderating variables

Sponsor-event similarity means that the product in question is actually supporting the use of the participants during the event, or if the event is directly linked to the image of the brand’s image. An event or a sponsor, or several hundred supporters at various levels.

Sponsors a number of events, however, reduces the likelihood that a particular brand only associated with the event because of the extra stimulus to all consumers should investigate and address. Frequency can affect the image transfer process, an event that can occur in either single or repeated basis.

2.5.2 Sports Sponsorship

Sponsorship of sports sponsorship, the most common activity, since the flows are very strong images through television as a wide-ranging press coverage, and that appealing to all classes in society and, consequently, the mass international audience. Indeed, language can be overcome, so that national boundaries, as this number is non-verbal elements, such as the general message of hope, pain, or to win. As a result, many international marketers looking to create icons on specific meaning, which is universally recognized. Growing amount of money spent on sporting events, such as the Olympic Games and the increase in the number of sports-oriented radio talk shows and television networks, such as the Sports Programming Network, illustrate the growing importance of sport in contemporary society. Not only in sports sponsorship to continue popular and growing form of marketing, but according to Gwinner et al. (2003, p. 275), “fanship sport generates that much more intense, more troublesome and a longer term than other fun social activities that do not directly participate in the spectators’ events “.

2.5.3 Celebrity Endorsements

Celebrity Clause has evolved tremendously over the past decades and has been acknowledged as “the ubiquitous feature of modern marketing ‘. According to McCracken (1989, p. 20), the famous scenario is “any individual who uses his public recognition on behalf of a consumer good in her ad.” Based on the notion that a successful celebrity spokespersons for the company’s brand or product, to deliver the company’s advertising message and to persuade consumers to purchase the