Abstract

Today’s successful companies have one thing in common: they are strongly customer focused
and heavily committed to marketing. These companies share a passion for understanding and
satisfying customer needs in well-defined target markets. They motivate everyone in the
organization to help build lasting customer relationships based on creating value. Customer
relationships and value are especially important today since more frugal consumers are spending
more carefully and reassessing their relationships with brands. In brand preference, advertising
plays a crucial and enduring role. Nearly everyone in the modern world is influenced to some
degree by advertising. Since so much money is being devoted to advertising, analyzing its effects
remains vital for firms, especially for those forming part of the collusive oligopolistic market of
soft beverages, where advertising helps in making difference in the market place. This research
will be focused on the analysis of advertising in terms of its specific persuasive effort in
influencing purchasing behavior. The persuasive effort is related to creation of favorable
attitudes or reinforcing existing attitudes. This process of persuasion is closely linked to the
concept of attitude and this study will explore the connection between persuasion and attitude,
identifying possible responses that the receiver can give to advertising information. This paper
wills analyses the degree of influence advertising has on consumers’ purchasing intention with
particular reference to MOHA soft drink factory advertisements. It will be describe on
descriptive research or quantitative research. In this descriptive research cross tabulation with chi
square analysis will use to understand the relationship between responses to advertising stimuli
and attitude of the respondent. Well-structured Questionnaire will develop for a sample of
consumers. The study will be find out two types of responses to advertising stimuli, cognitive
and emotional depicting that emotional responses to the advertisements are more important in
determining consumers’ attitude towards the advertisements compared to the cognitive
responses. Furthermore, the study will have find that attitude towards the ads positively affects
attitude towards the brand and attitude towards the brand positively and significantly affects
purchase intention of consumers.
 Chapter One

Introduction

Background of the Study

The fast-moving consumer goods (FMCG) sector represents one of the largest industries
worldwide. It is mainly characterized by companies that supply low-cost products that are in
constant high demand (KPMG Sector report, 2018). According to the World Bank’s Global
Consumption Database, total household expenditure on FMCG goods reached almost US$240bn
in 2015 for a sample of 39 African countries. Household FMCG expenditure was highest in
Nigeria (US$41.7bn), followed by Egypt (US$27.6bn), South Africa (US$23bn), Morocco
(US$20.1bn) and Ethiopia (US$19.2bn) (KPMG Sector report, 2018). It is critically important
for FMCG companies to ensure they are properly informed about the needs and lifestyles of
consumers in their market. This will ultimately inform decisions around products, pricing and
marketing. These days’ consumers are certainly brand and quality conscious, but affordability
remains the key consideration when purchasing decisions are made (Davina, 2012). Consumer
orientation stems from the company’s adoption and implementation of the marketing concept.
Consumer behavior is the result of interaction of the consumer’s potential influences and the
pressures exerted upon them from outside forces in the environment. Consumer has some needs
and wants and when they are not satisfied, it leads to a drive. Drive is, in effect, the reason
underlying certain behavior pattern. It is a strong stimulus that motivates individuals.

Depending on the products, signs and other stimuli relevant to the situation existing in the
environment, individuals choose some specific response in an effort to satisfy the drive. The
specific response chosen depends upon these external cues and previous experience.
Reinforcement strengthens the relationship between the environmental cues and the response,
and may lead to a similar response the next time the drive occurs. Repeated reinforcement leads
to the development of a habit there by making the decision process. Advertising is one of the
most important external cues, which reinforces the consumers’ choice (Madaan, 2015).
Advertising is used for communicating, exchanging/delivering business information to the
present and prospective customers. It usually provides information about the advertising firm, its
product qualities, place of availability of its products, etc. It is indispensable for both the sellers
and the buyers. However, it is more important for the sellers. In the modern age of large scale
production, producers cannot think of pushing sale of their products without advertising.
Advertising have therefore acquired great importance in the modern world where there is tough
competition in the market and fast changes in technology (Otieno, 2013). Any advertising
process attempts at converting the prospects into customers. Thus it is an indirect salesmanship
and essentially a persuasion technique and it does not attempt at maximizing profits by
increasing the cost but by promoting the sales so in this way it won’t lead to increase the price of
the product. Thus, it has a higher sales approach rather than the higher-cost approach (Ram,
2014).

This persuasive effort is related to creation of favorable attitudes or reinforcing existing attitudes.
This process of persuasion is closely linked to the concept of attitude. Most theories of
advertising have explored the connection between persuasion and attitude, identifying possible
responses that the receiver can give to advertising information (Nichifor, 2014). Like in most
countries, in Ethiopia, giant oligopolistic consumer good companies such as MOHA soft drink
factory is pouring large sum of money every year in advertising, for they believe it is an
unfailing if not a reliable way to promote their products, their brands, their organization. And
over the years, firms in Ethiopia have employed various advertising strategies to influence and
drive purchases, fuel new growth and create new market share. However, the marketing and
advertising efforts of firms fails to give due consideration to the consumer behavior and the
underlying mechanisms of forming or reinforcing attitude and the overall framework of "how
advertising works" which starts from how consumers perceive advertising stimuli to the very last
step of the effect of advertising on consumers’ behavior.

Therefore, this study will be seeks to assess the effect of advertising on consumer purchasing
intention in the case of MOHA soft drink factory that identifying possible responses in attitude
formation distinguishing between attitude toward the ad and attitude toward the brand and
subsequently, discussing the relationship between attitude toward the ad and attitude toward the
brand, and attitude toward the brand and purchase intention.
Statement of the Problem

Advertising is costly; often its effects are uncertain, and sometimes it takes a while before it
makes any effect on consumers’ buying behavior. It is for this reason that many companies, who
think it is indispensable, occasionally reduce expenditures on advertising or entirely eliminate it.
Such behavior implicitly fails to consider the fact that advertising is not just a current expense or
mere exercise but an investment. This study will assessing the effect of advertising on consumer
purchasing intention is therefore a critical area for analysis which provides a clear understanding
of the pitfalls and advantages existing in the market for a company manufacturing a product or
service. Furthermore, will be assessment of the effect of advertising help firms to know the
process of consumer behavior and the critical stages in it. The review of literature however
shows that studies on effect of advertising on consumer behavior are comparatively very low as
far as the Ethiopian context is concerned. Hence, it will be felt that there is a great need for the
study on effect of advertising on consumer purchasing intention in MOHA soft drink factory to
fill the research gap.

Research questions

This study will be addressing the following questions:

 What are the responses that consumers can give to MOHA Soft Drink advertisements?
 Which type of response to advertisement information is important in forming or
reinforcing attitude towards MOHA soft drink factory advertisements?
 How does consumers’ attitude towards MOHA soft drink advertisement affect attitude
towards the brand?
 How does consumers’ attitude towards the MOHA soft drink factory brand affect their
purchasing intention?

Objectives of the study

General Objective

The general objective of the study will assess the effect of advertising on consumer purchasing
intention: In the case of MOHA soft drink factory.
Specific Objectifies

The specific objective of the study will be address in the following:

 To identify responses that consumers give to advertising information.

 To draw a comparative analysis of effect of responses given to advertising stimuli on
consumers’ attitude towards advertisements.
 To examine the effect of consumers’ attitude towards advertisements on the attitude of
the advertised brand.
 To examine the effect of consumers’ attitude towards advertised brand on purchasing
intention.

Significance of the study

The study will be attempted to identify the significance and contribution of the research to
business organizations, academics and researchers. It will be need for prudent management of
financial resources in an organization is of great concern. The fact however is that organizations
are going through hard times financially. First thing that runs into the mind of the management
staff is to cut-down on advertisement and promotion budget or eliminate entirely as a step to
ameliorate their predicament.

And also the study will be designed in such a way as to aid organizational managers realize that
measurement is very important in advertising. Therefore, before decisions are taken on whether
to eliminate advertisement or cut-down budgets, efforts must be made towards ascertaining the
effect of advertisement, hence; a call for checks and balances. To academics and researchers, this
work will be providing a basis for further research works and relevant and authentic references
have been cited. A researcher in this area is an advertising practitioner; hence, embarking on this
work will increase his or her knowledge of understanding of markets with the perspective of
effective promotional planning and management.

Scope of the study

The consumer goods market is highly competitive, and consumer advertising is a prominent
influence in goods purchase decision and consumption. In a country like Ethiopia where the
population is growing at exponential rate and where there is a great demographic diversification
advertisement plays a prominent role. The scope of this thesis work will focus on the consumer
goods sector specifically on soft drinks industries from advertising practice perspective in all
media outlets, in understanding the effect advertising on consumers purchasing behavior in
MOHA soft drink factory. It have sales outlet in different regions of the country but due to time,
covering of demographic, budget and data constraints, this research paper will delimited to the
study of Addis Ababa region only.

Limitation of the study

Due to conduct this study, the researcher will may different tackle that from internal and external
constraints. The first of it will limitations in view of limited access to the personal characteristics
and inability to measure various impulses and effect of advertising on respondents and the death
of updated information. Finally, lack of data, scarcity of resources, unresponsive of respondents
and the collaboration of different organization may fail that study don’t conduct on time.

. Another major limitation wills the dearth of updated information. Lastly it will difficult to draw
up an accurate picture of effect of advertising on consumer behavior as the same being
qualitative, besides respondents who participated in the study belonging to different age group
and income class and perceiving advertisement in different ways. In spite of personal errors that
have crept into the questionnaire, utmost care is taken to evaluate the information, as accurately
and objectively as possible

Structure of the study

The research paper will be organized into five chapters: Chapter one deals with the introduction
part of the paper and the second chapter discussed the review of related literatures about the
subject matter followed by chapter three deals with research methodology used in the research.
In chapter four data analysis performed in the research will be extensively covered. Finally, in
chapter five of the document the summary, conclusions and recommendations of the research
with recommendation for future research will be included.
 Chapter 2

Literature Review

Theoretical Review

Advertising: An Overview

Advertising can be considered a variable created by convergent interest expressed in the two
major scientific areas: communication and marketing. With origins in the academic and the
practice, advertising was tackled on the one hand, as a means of communication required by
those involved in the current economic activities, on the other hand, and the solution to
communicational problems of various organizations - the media, for example. Advertising and
communication, in general, are components of contemporary economic and social system. In
today's society, advertising has evolved into a complex system of communication, important for
both organizations and the general public. The ability to deliver messages carefully prepared to
its targets gave over time to advertising a major role in marketing programs of most
organizations. Different companies, starting from the multinational firms and local firms attach
increasing importance of advertising in order to present their products and services to important
markets. In functioning market economies, consumers have learned to use the advertising
information in their purchase decisions. A coherent and functional analysis of advertising can be
done by calling a vision that incorporates two levels: the descriptive one, which considers issues
related to the need to define and differentiate advertising from other marketing tools of
communication, and the normative one, that captures the conditions that advertising must meet
so that marketing goals can be achieved. The need for strategic vision regarding advertising can
be seen as an example of covering the normative aspect of the analysis, while the advertising
features and forms can be aspects of the descriptive analysis. The following considerations are
the result of analysis made by the interpenetration of the two levels (Nichifor, 2014).

The interest regarding advertising resulted in the creation of a body of knowledge that includes
vision more or less converging on the role of advertising. The first concrete result took the form
of definitions associated with this concept; the definitions tend lately to emphasize same
fundamental characteristics: advertising is a communicational paid effort, its financial supporter
is identifiable, and the sent message is impersonal. Definitions released over the years have been
numerous, each of those who have proposed to define the concept participating with elements
that have helped shape the content of the concept. Marketing literature in Romania proposed a
number of definitions of this concept, operating as appropriate with a more or less explicit view.
Thus it is estimated that advertising is "a set of actions aimed at presenting - oral or visual -
indirect (impersonal) message about a product, service or company by any identified supporter
(payer)" (Popescu et al, 1994).

According to a more recent definition, advertising is “a communication technique that involves

running a complex persuasive process, for whose realizations are used a number of specific tools,
able to cause psychological pressure on the concerned public. The initiator of the advertising
communication actions is the sponsor, who in order to achieve communication objectives, wants
to send an impersonal message to a well-defined audience regarding the enterprise, its products
or services" (Popescu, 2004).

As the literature in Romania, the foreign definitions of advertising are numerous. Thus,
advertising is defined as "the paid and media intermediated attempt to convince" (O'Guinn et al,
2003) or, according to other authors as "a form of structured and impersonal communication,
composed from information, usually persuasive in nature, regarding the products, in the broad
sense, paid by an identifiable sponsor and transmitted through various media" (Arens, 2002).
Starting from descriptive analysis of advertising, we can highlight a number of its features:

A. Primarily, advertising is a form of impersonal communication, the associated messaging

being transmitted by means of extremely large addressable media (the mass media).
Impersonal nature of it is given in the opinion of the some authors by the lack of
immediate feedback from the receivers (Belch and Belch, 2002).
B. Advertising is persuasive in nature. The goal of those using advertising is to persuade the
public to adopt a product, service, idea, etc.
C. Advertising is paid by a sponsor. In the opinion of some authors this feature is even a
condition which clearly distinguishes advertising from other forms of marketing
communication. Publicity, for example, does not fall under the definitions above
(O'Guinn et al, 2003).
D. The subject of this form of marketing communication consists of both tangible and
intangible products (services, ideas). These are not all of the advertising features, but
 they give only outline that is necessary in delimitation from other elements of marketing
communication. In this respect, the above definitions add a possible point at which
advertising discussions should start.

Advertising communication process

Advertising seen as a process is based on the general scheme of the marketing communication
process, with a number of specific features related to its content. Thus, from the above lines we
could see that one of the characteristics is that advertising uses impersonal communication media
(television, radio, press, magazine, etc.). Joining these characteristics with other leads to a
specific pattern in which the advertisement is created, sent and received by the target audience.
The model shown in Figure 1 captures the content of marketing communication mediated by the
media. This model explains that advertising is a finality of a process that involves both
institutions and individuals.

The process includes two components: production and reception, between them intervening
mediation process function, which consists, on the one hand, in the accommodation, which
concerns how the communication objectives of sponsor and, needs, expectations and attitudes of
consumers interact and negotiation, on the other hand, which reflects the manner in which the
receptor understands advertising.

Barbara Stern from Rutgers University proposes another model of advertising communication,
considering that it is a structured form of the literary text, something that clearly distinguishes
from spontaneous interpersonal communication (Arens, 2002). The elements of advertising
communication process are those above, except the fact that these elements are
multidimensional. Thus, through these dimensions, communication process elements are found
either in the surrounding reality or in virtual reality.

Beyond these common elements specific to most definitions associated with advertising, there
are a number of elements with which this concept and practical approach is differentiated from
other forms of communication and marketing specific instruments. In the first position are found
structural elements of all forms of communication - source, message, medium, receiver, feed-
back and noise, but also others related, on the one hand, to the external realities of
communication consumer attitudes and competitive environment, and on the other hand, the need
for effective communication repetition and the need to coordinate communication (Nan and
Faber, 2004).

It is therefore important to analyze these elements in order to emphasize the theoretical

characteristics individualizing advertising. Variables related to the source of communication in
advertising refer to its characteristics and their potential impact on attitudes. Over time, a number
of features of the source of communication have won the attention of specialists: credibility,
attractiveness and power. They aim particularly one that effectively communicates the message
and less the one who creates or produces the message. Credibility as a source of communication
feature can be approached from two perspectives: the expertise and confidence (Petty et al,
1983).

Expertise is the degree of experience and knowledge of the source in relation to a particular
issue, while trust refers to the probability that the source to issue information in a sincere
manner. Attractiveness can be addressed in turn in terms of three dimensions: pleasure, similarity
and physical attractiveness. The third characteristic of the source, i.e. power, keep the position of
the source as a potential generator of rewards or penalties for the receiver communication. All
these features of the source appear to be more or less important to different types of
communication. Thus, in the case of interpersonal communication the power seems to be the
characteristic that exercises a high influence on the communicative purpose, in turn, in
advertising, credibility and trust appear to be more important. Variables related to the message
are equally important in trying to identify the features of advertising communication.

They refer to the type of used message, as well as to aspects of form or style. Regarding the type
of used message, exactly the type of call that is put on the receiver there are three broad
categories into which they fall: ethos call type, pathos call type and logos call type (Nan and
Faber, 2004). Ethos type calls occur when the receiver focuses more on communication and less
on the message source. This is especially the case of interpersonal communication where
participant’s direct link favors this process. Pathos type calls involves that the source to invoke
rational or emotional arguments in the message in order to have an effect on the receiver.
Advertising is a type of communicationthat often involves such a speech, well known being this
approach attempts to influence the various structural elements of consumer attitudes. Logos call
type is invoking arguments drawn from general recognized principles, being first specific to
public information. In terms of form and style of the message, one can discuss items such as: the
order of the arguments, the type of conclusion, argument repetition (Severin and Tankard, 1997).
Of these, the repetition is what confers advertising its distinctiveness from interpersonal
communication. Thus, it tends to use the repeated exposure to the same message in order to
influence the audience. Variables related to media can also provide a criterion to differentiate
advertising from other forms of communication. Studies in this direction have insisted on
distinguishing characteristics of the different channels used for personal or impersonal
communication.

Whatever media one chooses, the originator of the communication intends to send a message to
be perceived and understood by the audience. As with the interpersonal or public
communication, particular message to be transmitted by advertising will be adapted to the
characteristics of the media. What differentiates advertising from other forms of communication
is the overriding interest in ensuring the coordination and control of messages sent through
various media. This is especially true in the current context in which the need for coordination is
closely linked to communication effectiveness and impact (Thorson and Moore, 1996).
Variables that define the receptor and its response differentiate advertising from certain forms of
communication. Thus, as in the case of public or interpersonal communication, the impact of
advertising is largely influenced by a number of features of the receptor, such as: gender, age,
income, personality, attitude, lifestyle, etc. The answer or feed-back it is the differences that can
operate on different forms of communication.

Direct and repeated feedback is a characteristic of interpersonal communication, while the

impersonal, indirect and less immediate feedback is a characteristic of advertising and public
communication. Another structural element of communication is the noise. It can be defined as
any issue that interferes with the message. Marketing communication in general is considered a
form of communication where the noise is very present. It is due to factors related, on the one
hand, to the receiver: psychological barriers, and on the other hand, to the context in which the
communication take place: cultural, physical environment, competitive factors etc. (Epuran,
2002).

Unlike interpersonal or public communication, in advertising the most intense noise is due to
competitive messages. In today's highly competitive markets, the these, which frequently show
new versions of familiar themes, are generally aimed at reminding consumers about the brand’s
values and persuading them to keep buying the goods (Sean Brierley, 2005). 3. Persuading:
Effective advertising persuades customers to try advertised products or services. Often times, the
persuasion may take the form of influencing primary demand i.e. creating demand for an entire
product category. A related second reason is to improve the firm’s “corporate image”: to
persuade people that the company is benevolent and trustworthy. Most image advertising is
designed not to challenge bad images but to change people’s perceptions of the company. The
company adds value to it, and it also adds value to their products. Advertisers focus on certain
aspects of the company to shift the agenda away from those elements they do not want
publicizing. Corporate advertisers use image advertising either to change attitudes to the
company which are believed to affect long-term buying decisions, or to reposition the company
to different sets of consumers (Sean Brierley, 2005).

Adding value: Given that there are three major ways a company can add value to its offerings,
i.e. Innovation, quality improvement and alteration of consumer perceptions; advertising adds
value to brands by influencing consumers’ perceptions. Effective advertising causes brand to be
viewed as more elegant, more stylish, more prestigious and probably superior to competitors’
offerings. Campaigns can be launched to reassure consumers. Advertisers believe that
advertising often provides consumers with false expectations of what the brand can do for them,
causing cognitive dissonance. Some advertisers believe that consumers decide to buy goods for
irrational reasons and then need to justify the decisions rationally. Advertising is meant to
reassure these consumers that they have made the right decision. This can be done through the
use of guarantees, after-sales service and warranties that the product is not faulty or unreliable
(Sean Brierley, 2005).

It is important for advertisers to understand the advertising communication process so as to

establish the advertising objectives in line with the receiver’s response. In addition, advertisers
should carefully select the most appropriate media mix to deliver the message to the target
audience. Indeed, if consumers view communication in a specific medium as disturbing, it may
negatively change the attention to and the perception of the message (Heinonen and Strandvik,
2005). Furthermore, in advertising, the element of feedback is important to ensure that the target
audience has received the message accurately.
Types of Advertising

Advertising can be grouped into two major divisions according to Anyacho (2007:9) which
include: Print advertising: Includes all forms of copy works such as newspapers, magazines,
posters, calendars etc. This form of advertising can further be grouped into:

 Display Advertisement: This is the larger and dominant type of advertising having
illustrations blended with copy to create attraction.
 Classified Advertisement: These are small advertisements usually grouped according to
their contents. They are mainly personal announcements paid for by individuals.
Examples are change of names, individual-based offers and bids.
 Audio-Visual (Broadcast) advertising: This refers to advertising through radio and
television, as well as the emerging media internet. This form of advertising appeals to the
sense of hearing and sight. The radio is audio in nature, appealing only to the sense of
sound (ears). Radio advertising is more effective in rural areas, as compared to urban
regions. Television, as an advertising medium, is more attractive and effective because it
is an audio-visual medium appealing to both the senses of sight sound (eyes and ears).
Different methods, such as spot announcements, sponsored programs etc. are used for
broadcasting advertising messages.

Overview of Advertising Media

The media which is the plural of medium, generally, refers to vehicles used to convey
information, entertainment, news and advertising messages to an audience. Advertising Media,
according to Wright [Link] (1982:127) is the means by which advertisers reach their prospective
customers with advertising messages. The media mix the choice of media for advertising poses a
problem in deciding which medium or media mix will reach the client’s prospective customers.
The media mix variables can be categorized into;

1. Electronic media: The broadcast media such as radio and television are frequently
referred to as electronic media. As channels of communication, television and radio are
fundamentally different. While television has the features of sight, sound and motion, the
radio depends on sound alone. The two forms of media nevertheless have something in
common; both transmit messages through the airwave and are received instantaneously.
 However, the signals transmitted by the two media are transient in nature, i.e. the
messages are lost if not received as the broadcast is being made.
 Television: This, perhaps, is the most popular medium of mass communication.
Its strength lies in the ability to transmit video and audio signals simultaneously,
thereby appealing to the senses of sight and sound of its audience. The guiding
factor in the use of electronic advertising is the determination of the reach and
frequency. Frequency is the average number of exposures to the advertisement by
each viewer. It implies to the number of times the advertisement is seen or heard,
which invariably determines the factor needed to establish a message in the
minds of the audience. Reach is the population of different individuals exposed
to the television advertisement within a given period of time.
 Radio: The radio is an audio medium of advertising, which appeals to the
audience’s sense of sound. It is ubiquitous and the most widely available medium
to mass audience. Radio broadcasting can be offered on short wave, medium
wave or frequency modulation bands, and the possibilities offered by these bands
make radio signals available to a vast audience. 2. Print media: The print media
majorly comprises newspapers, magazines, and flyers. They are efficient in
delivering messages one topic at a time and one thought at a time. Their strength
lies in the continuity of the advertisement messages as long as the copy remains
readable.
2. Out-of-home/outdoor media: According to Jefkins (1976:211), outdoor advertising
implies to any word, letter, model, sign, placard, board notice, device or representation,
whether illuminated or not, placed out of home and used for the purpose of
advertisement, announcement or direction. Billboards and posters are among the most
used outdoor advertisings which are pasted on standard size wooden or metal boards
mounted at conspicuous locations on the street of cities, towns and on highways.
3. The new media: The new medium of advertising is the internet. According to Terrence
(2000:396), Internet is a huge worldwide network of interconnected computers that
permits the electronic transfer of information. This new medium differs from other media
in that it enables consumers to interact with the advertisement. Consumers can click on
the advertisement for more information or take the next step to purchase the product in
 the same online platform. The beauty of this medium of advertising is that it gives
advertisers the opportunity to a precise target audience, enabling them to deliver
advertisements that are customized to each user’s particular interest and taste. However,
Internet advertising has a weakness in its failure to enable consumers differentiate
advertisements from editorials.

Understanding Consumer Behavior: An Overview

A consumer is the end user of a product. It consists of all individuals, groups or households
buying products for personal consumption (Nwaizugbo, 2004). Kotler & Armstrong (2008:130)
defines consumer market as a combination of all individuals and households who buy or acquire
goods and services for personal consumption. The term consumer behavior is defined as the
behavior that consumers display in searching, purchasing, evaluating and dispensing of products
and services that they expect will satisfy their needs. The modern day marketing discussion
centers around the need for modern marketing to be consumer oriented and to be concerned with
the needs and wishes of the consumer and thus, studying consumer behavior is crucial, for
companies, in getting success of their products in the market. Gone are the days when
manufacturers could have sold anything to the consumers.

Now a days it is the consumer whose buying preferences decide what should be manufactured, in
what quantity and what should be the quality of the product which more or less depends on the
four P’s of marketing mix. Thus a marketer has to take into account various factors while
deciding on marketing a product as consumers have different preferences and sometimes totally
diverse preferences. Therefore the tasks of manufacturer and marketer have become onerous and
it is very important to understand the consumer behavior. Often, consumers themselves don’t
know exactly what influences their purchases. “The human mind doesn’t work in a linear way,”
says one marketing expert. “The idea that the mind is a computer with storage compartments
where brands or logos or recognizable packages are stored in clearly marked folders that can be
accessed by cleverly written ads or commercials simply doesn’t exist. Instead, the mind is a
whirling, swirling, jumbled mass of neurons bouncing around, colliding and continuously
creating new concepts and thoughts and relationships inside every single person’s brain all over
the world” (Kotler and Armstrong, 2012).

The consumer decision process

Consumer behavior is all about the study of when, why, how, where and what people do or do
not in the process of buying a product. However, certain factors influence the consumer’s
decision to buy or not buy a product. These factors and the various steps undertaken by the
consumer in buying a product are summarized in the figure 2 below.

Factors influencing consumer behavior

The factors influencing consumer behavior are stated below;  Cultural Factors: Culture is
the fundamental determinant of a person’s want and behavior. Companies often design
specialized marketing programs to serve each subculture. This program is called diversity
marketing. The effect of culture upon a consumer’s behavior is considerable, and culture is a
factor which has the greatest influence (Kotler, 2003).

Culture creates the foundation of the individual’s values, opinions and behavior, and is
learnt from the other members of society or from school and institutions that play a significant
part of one’s environment and these traits constitute what the consumer values, wants are and
therefore do affect the way consumer acts. Culture also consists of different subcultures that
group people by their nationality, ethnicity, geographic location, religious views or by their set of
shared values. By targeting members of a specific culture or subculture, businesses can tailor
their marketing mix to match the needs and values of that segment. Consumers are more prone to
accept products that are in line with the values, preferences, customs and norms of their culture.
Nonetheless, a culture is constantly evolving and the values, social structures, worldviews and
other cornerstones of the culture change through time.

Society is divided in to social classes which group members of society that have a similar
social status and a comparable behavior come together and these social classes display the
hierarchy of society, and are characterized by a set of factors (Solomon [Link]. 2006). A common
way to determine a consumer’s social class is through income, occupation and education but
these are only factors that influence how the person is ranked in society. To determine the
accurate social class is not always easy or obvious as the social classes can also change through
time when people climb up to a higher rank or even change to an occupation of a lower rank.
Also, new family relationships can have a rapid change on someone’s status and social class.

1. Social Factors: A consumers buying behavior is also affected by the people around.
Family is a strong entity that has an influence on buying behavior. This includes both the
parents, as well as the spouse/husband and kids with whom the consumer might regularly
spend his/her time. The initiator is the one who comes up with the idea of buying a
certain product or service, whereas the influencer is the one who’s opinion matter and is
taken into consideration when making a purchasing decision. The final decision about
whether or not to buy, and how, when and what to buy is made by the decider (Kotler et
al, 2005). The social factors which influence consumer behavior are;
 Reference group: A reference group consists of all the groups that have a direct
(face to face) or indirect influence on the person's attitudes or behavior. Now
these reference groups have an opinion leader and they are the people who offer
advice or information about a specific product or product category and suggest
which brand is best. A marketer should know how to reach and influence these
opinion leaders in order to influence consumer purchase behavior.
 Family: Family members can strongly influence purchasing behavior. The family
is the most important consumer buying organization in society, and it has been
researched extensively. Marketers are interested in the roles and influence of the
husband, wife, and children on the purchase of different products and services.
 Social status and role: The person’s position is defined in terms of role and
status. People choose products that communicate their role and status. A role
consists of the activities people are expected to perform according to the people
around them. Each role carries a status reflecting the general esteem given to it by
society. People usually choose products appropriate to their roles and status.
Consider the various roles a working mother plays. In her company, she plays the
role of a brand manager; in her family, she plays the role of wife and mother; at
her favorite sporting events, she plays the role of avid fan. As a brand manager,
she will buy the kind of clothing that reflects her role and status in her company.
2. Personal Factors: Consumers can furthermore be segmented according to their
personal characteristics and personality type that shape their consumer behavior.
Research can bring out personality traits that are common for users of certain products,
and thus describe and group consumers that hold specific characteristics. Consumers can
for instance be grouped depending on if they are social, confident, aggressive or
adaptable because they may portrait similarities in behavior due to these characteristic.
Not only are personality and personal traits affecting the consumer’s behavior but also
the consumer’s self-concept. The self-concept stands for the way the consumer does see
himself and the way he evaluates his own attributes. The self-concept is related to the
buying behavior seeing that an individual’s belongings often demonstrate what the person
is like or how the person is. Nevertheless, there are three types of self-concepts to take
into account when drafting a marketing strategy or seeking to understand consumer
behavior. The actual self-concept does display how a person sees himself. In addition the
person has an ideal self-concept which reflects how he would ideally like to see himself.
Additionally there is the self-concept of others which shows how the person thinks that
other people see him. Thus the consumers’ behavior can be influenced by any of these
three self-concepts and the consumer can either act according to what he thinks he is,
what he wants to be or according to what he believes that others think he is (Kotler [Link]
2005). Depending on how positive a consumer’s actual self-concept is the better is his
self-esteem. Advertisement can have great influence and shape the consumer’s self-
concept and self-esteem as consumers compare them to what they see in advertisements.
Consumers can create a link between the advertised product and the person displayed in
the advertisement, and form their personal image of the product brand accordingly. This
brand image can then influence the decisions, the consumer makes when choosing
between available products (Solomon [Link] 2006). The various personal factors which
influence consumer behavior are;
 Age and stage in the life cycle: People change the goods and services they buy
over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age
related. Buying is also shaped by the stage of the family life cycle - the stages
through which families might pass as they mature over time. Life stage changes
usually result from demographics and life-changing events like marriage, having
 children, purchasing a home, divorce, children going to college, changes in
personal income, moving out of the house, retirement and others. Marketers often
define their target markets in terms of life-cycle stage and develop appropriate
products and marketing plans for each stage.  Occupation and economic
circumstances: A person’s occupation affects the goods and services bought.
Blue-collar workers tend to buy more rugged work clothes, whereas executives
buy more business suits. Marketers try to identify the occupational groups that
have an above average interest in their products and services. A company can
even specialize in making products needed by a given occupational group.
 Life Style: People coming from the same subculture, social class, and occupation
may have quite different lifestyles. Lifestyle is a person’s pattern of living as
expressed in his or her psychographics. It involves measuring consumers’ major
AIO dimensions/activities (work, hobbies, shopping, sports, social events),
interests (food, fashion, family, recreation), and opinions (about themselves,
social issues, business, products). Lifestyle captures something more than the
person’s social class or personality. It profiles a person’s whole pattern of acting
and interacting in the world.
 Personality and self-concept: Personality is the individual’s character that
makes the person unique as well as consistent in adjustments to the changing
environment. It is an integrated system that holds attitude, motivation and
perception together.
3. Psychological Factors: Motivation can be used to describe one’s behavior and it can be
seen as the reason behind one’s actions. Motivation is what drives individuals to attain a
certain goal. When the consumer feels a need, there is a tension that the consumer wants
to eliminate by satisfying that particular need. If the drive to reach that goal is strong
enough, the consumer will possess a motivation that drives and pushes him towards its
realization. In accordance to a theory outlined by Sigmund Freud, consumers are not fully
aware of their true motivations and are not always able to explain them. Freud’s theory
points out that unconscious motive which have their roots in the individual’s childhood
affect the consumer’s choices. The theory also acclaims that consumers may base their
product choice on a product’s symbolic meaning, in order to be able to satisfy a desire
that is not acceptable but which the consumer can find symbolized in an acceptable
product (Solomon [Link]., 1999). Abraham Maslow on the other hand, explains motivation
through his hierarchic pyramid where consumers are motivated by needs that have a
different classification and that are part of a hierarchy (Kotler et al, 2005). With the help
of the five senses; taste, smell, sight, touch and hearing, consumers interpret their
surroundings. With the process of choosing, organizing and interpreting stimuli
consumers create their own perception. Because the perception of a person differs from
one another, the buying behavior does as well. Consumers are drawn to products not only
by their practical function but also by the hedonic features of the product. The added
value that a competitor’s product has can simply be the emotional value that it has for the
consumers (Solomon 2006). The major physiological factors are;
 Motivation: A motive is an internal emerging force that orients a person's
activities towards satisfying a need or achieving a goal. The motives may be
rational or no rational.
 Perception: It is the process by which an individual selects, organizes and
interprets information inputs to create a meaningful picture of the world. It varies
from individual to individual.
 Learning: Learning involves changes in an individual's behavior arising from
experience. Learning reflects and individual's capability to comprehend new
things based on experience.
 Beliefs and attitudes: A belief is a descriptive thought that a person holds about
something. People's belief about a product or brand influences their buying
decisions.
Empirical Evidences

Beyond the issues, related to communicational perspective on advertising, another dimension is

related to the effort of conviction, typical to advertising. Most definitions of advertising,
otherwise presented in the previous discussion, underline its persuasive character. The goal of
those using this type of marketing communication is to create favorable attitudes or reinforce
existing attitudes so that they obtain a purpose in the form of purchase of a product or a brand.
This process of persuasion is closely linked to the concept of attitude formation (Nichifor, 2014).
Most theories of advertising have explored the connection between persuasion and attitude,
identifying possible responses that the receiver can give to advertising information. Explanations
are not always convergent, but they provide an overview of how consumers respond to
advertising stimuli. There are two major perspectives with regards to attitude structure. First, we
can view attitudes as evaluative responses influenced merely by beliefs (Wyer, 1970). This view
of attitude reached its pinnacle with the famous expectancy-value models of which theory of
reasoned action (Fishbein & Ajzen, 1975) is of paramount importance. The well-known formula
(A=Σbiei) indicates that attitude is the sum of all evaluative beliefs regarding the attitude object
where bi is the consumer’s belief defined as the extent to which the object possesses attribute i,
and ei is the evaluation of attribute i. Second, the three component model of attitudes asserts that
along with beliefs (cognitive component), affective and behavioral components also underlie
attitudes (Maio, Esses, Arnold, & Olson, 2004).

Moreover, researchers discriminate between consumers’ response to marketing stimuli such

as advertisement and their response to the brand (Kirmani & Campbell, 2009). Shimp (1981)
posits that audiences exposed to a particular ad i.e. advertising exposure is a presentation of an
advertisement to the consumer, have four types of attitude formation:

(1) If both brand and non-brand information of an ad are processed, both attitude toward the ad
(Aad) and attitude toward the brand (Ab) will be formed;

(2) If merely brand information of an ad is processed, only Ad, and

(3) If merely non-brand information of an ad is processed only Ad, will be shaped;

(4) If neither brand information nor non-brand information is processed, no attitude will be
formed.
 Whatever the prime goal of marketers is (boosting sales, forming long-term profitable
relationships, attracting support and membership for nonprofit businesses, etc), customer
persuasion is an integral step towards that goal and both attitude towards the brand and attitude
towards the ad play major roles in persuading prospects to buy a particular brand. There are
substantial empirical evidences that support existence of a direct causal relationship from attitude
toward the brand (Ad) to purchase intention (PI) (Lutz, MacKenzie, & Belch, 1983; MacKenzie,
Lutz, & Belch, 1986). However, there can also be an indirect relationship between attitude
towards the ad and purchase intention through attitude towards the brand, as will appear when
the consumer develops a positive attitude towards the ad which leads them to form attitude
towards the brand before starting to build a positive purchase intention (Yoon et al., 1998).
 Chapter Three

3. Research Methodology

In this study, the researcher will be employing quantitative approaches, to be drawn from
primary and secondary data sources.

3.1. Research Design

Research design is plan or collecting and analyzing data in economic efficiency and relevant
manner. It facilitates smooth sailing of research operation (Solomon, 2005). Accordingly, the
researcher will be use descriptive type of research design. The rationale behind for the researcher
using this type of research design is that; enable the researcher to will obtain complete and
adequate information on the intend problem.

3.2. Methods of Data collection

3.2.1. Primary Data (Key Informant interview & Questionnaire)
Every community has people who by accident, experience, talent, or training can proved the
most complete or useful information about aspect of life. These people are key cultural
consultants, also called key informants (Kottack, 2011 P54). The researchers will be select
people who are knowledgeable about unemployment and its effects on the society, economic and
government.

In this study, the researcher will be use questionnaire paper question to gather data from the sub
city community by distribution the question paper of the problem. The question papers will be
distributing among literate people who able to read and understand and give meaning to the
question in hand.

3.2.2. Secondary Data

In this study, the researchers will be use secondary data sources to gather data about the problem
that helps to our fill gab of the primary data sources to have more understanding and organize the
problem and the researchers will be review written document such as books, magazines,
newspaper, annual reports, official documents and we will use website to connect more data on
the problem.
3.3. Target Population
The study will be focus on one of the wereda of Yeka sub city. In the sub city thereare 14
weredas, out of these the study will be concentrates on the wereda5. So that the target population
of the district will be concentrate with the people who live inyeka sub city wereda5, the wereda
official and employees within the district.

3.4. Sample Techniques

To conduct this study, the researchers will be use different sampling techniques among the
sampling techniques; the researchers will be mostly select simple random and systematic sample
techniques to avoid biasness among the different groups and to make the result of the research
more acceptable.

3.5. Data Collection Tools

As data collection, the researcher will be intending to use closed ended question.

3.6. Methods of Data Analysis and Discussion

To conduct this study, the researchers will be use descriptive research method. For the reason
anal size will the present data to form that easy to understand and supplement by using a simple
tabulation of table and percentage used appropriately.

3.7. Ethical Consideration

In this study, the researcher will be considering the following ethics.

 To keeping personal confidentiality while conducting the research.

 To free from personal bias when collecting, organizing, and analyzing the data.
 To free from any interferes that disturb for respondents like religion and ethnic view.
 Chapter Three

Research Methodology

Research design

This study will be used a descriptive research design which is used to obtain information
concerning the current status of a phenomenon and to describe “what exists” with respect to
variables or conditions in a situation employing a quantitative approach applicable to phenomena
that can be expressed in terms of quantity involving the generation of data in quantitative form
which can be subjected to rigorous quantitative analysis in a formal and rigid fashion.

Sampling Design

The sampling size of the study will be determined by systematically sampling method with the
selection of respondents in age, sex, status, education background, and others capabilities and
the number of respondents determined by given formula of sampling size.

The first step in developing the sample design is clearly defining the set of objects to be studied;
Addis Ababa is taken as the geographic scope of the study. The target population of this study is
those consumers of soft drinks who have seen Coca Cola advertisements. A decision has been
taken concerning a sampling unit before selecting sample. In this research, the sample units are
classified on the basis of age group, gender, and education level of the respondents. In
determining the sample size, two factors were put into consideration. First; the larger the sample
size, the more adequate, qualitative and precise will be the information about the population and
second; above certain size, extra information is given by increasing the size. Given these factors,
the researcher was of the opinion that a sample size need only be large enough to reasonably
represent the population. In view of this, 25 participants were initially used for a pilot study to
determine the willingness of the respondents in attending to the questionnaire and understanding
of the questions included in the questionnaire. The outcome was 22 out of 25 were willing to
respond which is 89% of the total participants.

In determining the sample size, the formula below as given in Asika (1991:59) was adapted at
95% confidence level.

Ns = Z2 x p x q

e2 Where Ns = Sample size Z = Constant value (1.96)

p = positive response q = negative response e2 = Tolerable error Therefore, Ns = (1.96)2 x 0.89 x

0.11 = 150 (0.05)2 By using the above formula, the researcher selected 150 sample
respondents. A simple random sampling technique was used for the purpose of this study. Under
this sampling technique, every item of the universe has an equal chance of inclusion in the
sample.

Sources and Method of Data Collection

In this research, data will be collect from both primary source and secondary sources. The
primary data will be collect through a self-administered questionnaire prepared by the researcher.
Which are mostly interview and prepared of questionnaires that collect data from respondents
response what they about says. The questionnaire has two parts. The first part comprises
questions to acquire the demographic profile of the respondents and the second part comprises
questions to acquire the two types of responses, attitude and purchase intention. Two kinds of
scaling were used. On the first part of the questionnaire, Nominal scale i.e. dichotomous and
multiple choice questions were used to categorize demographics of the respondents. On the
second part, the respondents completed ratings of five main measures: (a) their cognitive
responses, (b) their emotional responses, (c) their attitude toward the ad, (d) their attitude toward
the brand and (e) purchase intentions. A five point Likert scale ranging from 1 (strongly
disagree) to 5 (strongly agree) which was adopted from prior researches was used to measure
responses for cognitive thoughts. The respondents rate the extent to which the ads make them
feel various emotions (warmhearted, excited, and happy) on a series of 1 (not at all) to 5 (very
much) point measure scales. Given that all of Coca Cola ads are positively valenced, the study
measured only positive emotions (i.e., warmth-type, excitement-type, and happiness feelings,
Burke & Edell, 1989; Edell & Burke, 1987; Holbrook & Batra, 1987).

For attitude towards the ad, attitude towards the brand and purchase intention variables a series
of 1 (strongly disagree) to 5 (strongly agree), 1 (not at all) to 5 (very much), and 1 (very
negative) to 5 (very positive) point Likert scales were used. The researcher have conducted pilot
test to confirm the content validity and reliability by interviewing marketing managers from the
Coca Cola Company to examine the wording of the measurement items, the consistency of the
items with their underlying construct, and the ease of understanding by respondents and then
asked 25 participants to complete the questionnaire. Accordingly some improvements were made
to the questionnaire. The secondary data will collect from MOHA soft drink factory Company,
government offices, books, research papers, journals and other relate publish material.

Data analysis

After collect, the raw data will be editing to detect errors and omissions in responses and to cross
check whether the questions will be answer accurately and uniformly and the next phase will be
the process of assigning numerical values and converting the raw data into coding data so that
the responses can be grouping into a specific number of categories. The demographical variables
of the respondents will take to find out frequency distribution of each variable. The tabulate data
will be describing the number of respondents in a particular category so that the total number of
respondents falls in to different slabs. The demographical variables of consumers will be too
converted into tables, frequency distributions and percentages to give a condensed picture of the
data.