Background of the Study
The current market is composed of highly competitive organisations which are all competing for consumer’s loyalty. Businesses are challenged to become more competitive in order to survive in a stiff competition in business arena. The overall business strategies should be carefully planned and well-executed to reach their ultimate goal i.e. company growth. In accordance to changing world of business, customers buying behaviour also change, they ten to become more knowledgeable and demanding as compared to the past. In lieu to this, more and more company had altered their focus on customer needs in order to maintain their competitive edge. Basically, these changes have completely reformulated the usual business aim and rationale from being process-focused to customer-centred. Therefore, in order to offer an exceptional customer services within business operations, organisations should employ fine-tuned organisational reform. Furthermore, Lowenstein (1997) justified that employing a proactive customer commitment should involve consideration to culture and infrastructure.
In the field of advertising research, as it applies to exploratory correlation between personality and advertising message response, there is no dearth of literature and we have a long history surrounding the myriad of topics associated with this concept (Plummer, 2000). However, given the vast literature present, there is an absence of consensus in both theories and frameworks that address much of the often conflicting reasons of advertising’s interaction in consumer decision-making. Accordingly, there have been weak empirical relationships found between prediction of product use or choice with personality behaviour. (Lastovicka, Erich, & Joachimsthaler, 1988) Some researchers have, however, demonstrated and analysed brand personality to the extent that effective designs can aid in their influence (Aaker, 1997; Greengrove, 2002; Neal and Wurst, 2001). Attempts at segmenting markets on the basis of personality similarities and differences have not achieved researchers’ desired results. The main reason for disappointing results is that research efforts have primarily focused on profiling exercises rather than putting their endeavours into theories based on consumer personalities (Plummer, 2000). Accordingly, empirical personality work has tended to be weak because trait measures often have questionable reliability, validity, and the traits investigated lacked the conceptual relevance to the behaviour being studied (Lastovicka, Erich & Joachimsthaler, 1988). Accordingly, there has been ample research on source effects that concentrated on the impact of the competence, believability, and trustworthiness of the spokesperson in the fields of psychology, advertising, and communication literature (Bush, Moncrief & Ziethaml 1987). There is, however, little research on relative impact of personality profiles on consumers' assessments of credibility in advertising content.
Despite the economic and technological conditions that make it possible now to promote products and services in a larger consumer market, there are other factors that still need to be considered for a business organisation reach out easier to their target market. Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalised definition of the target or niche market.
Research Question and Objectives
This study will investigate and evaluate the impact of advertising on the consumer preferences and loyalty in regards to the product/service promotion of different businesses in Hong Kong. Essentially, this research aspires to study the topic through reviewing related articles and also by getting the perceptions of knowledgeable individuals regarding the topic through surveys. These individuals are the consumers/customers of different products/services offered by different business organisations in Hong Kong.
The major objective of this study is to observe and determine the impact of advertising to the purchasing motive, loyalty and preferences of consumers. Moreover, this study will focus on the following objectives:
1. To examine the awareness of the consumers about advertised products.
2. To examine if these advertisements of different businesses in Hong Kong affect the purchasing motive, preferences and loyalty of their consumers.
While researchers have examined varying formats for presenting credibility information, they have not compared the relative impact of presenting the same information in advertisements tailored to personality profiles. The current study was designed to determine, if consumers are more responsive to advertising claims when the source is identified as credible, i.e. competent, believable or has some good will component in product advertisements tailored to a specific personality profile? For clarity, it attempts to evaluate if advertising affects the purchasing motive, loyalty and preferences of consumers. Thus, to address this issue, the research questions are:
- Do consumers' beliefs about advertised products differ when the ad content of an advertising claim to which consumers are exposed is specifically tailored to their buying preferences?
- Do consumers' beliefs about advertised products differ when consumers are exposed to advertising claims specifically tailored by their preferences that include credibility information versus when consumers are exposed to advertising claims that are specifically tailored by their preferences that do not include credibility information?
Methodology
The research method that will be used for this study will be quantitative method combined with descriptive method. With the subject of the study focusing on the characteristics and consumer behaviour of those who purchase a certain product, it will be better to gain the analyses of the respondents to the advertisement, and couple it through the use of the descriptive research method will be highly competent in depicting the behaviours of the consumers. It is understood that the study will be focusing on information gathered from both respondents and from the researcher’s account and notes concerning the advertisements. Gathered information will lend to the credibility of the study and is important to isolate factors that may have affected the success of an advertised product. Descriptive analyses will also study the methods used by business organisations to ensure that the advertisements reach out to the correct group of people. As such, the information-gathering will then be based on the method of the research being done and will also be utilising a combination of both information gathered from the respondents as with the information taken from the literatures.
For the research design, the use of survey and interview questionnaires will be initiated. The questionnaire is prepared based on the research questions that were presented. This is to ensure that the questions that will be asked from the respondents will be able to yield the necessary information for the formulation of the conclusion. Along with a letter to the respondents, the questionnaire will contain the following: the first part is for knowing the basic characteristics of the respondents for their identification; the second part focuses on the perceived methods that the product uses for addressing the needs of their target consumers; the third focuses on the consumers’ preferences and loyalty with regards to information on the product; finally, the fourth is on the effects of the product’s advertisements to the consumers.
Together, these questions will be used for the gathering of information from the respondents and will assist in putting together an assessment of the consumers’ perception of product advertising methods.
As discussed, the method of analysis that this study will be using is based on the gathered information that provide methods of assessing the characteristics and the consumer behaviours especially based on the media that presents the product. Since the products are being advertised using several Medias that will be included in this study, limited however to television and magazine advertisements, these will be used to evaluate how products will impact the different classes. The primary method of analysis that will be used for this study, however, will be focused on the information gathered from the respondents. Careful assessment must be done on the literatures themselves and notes were taken that helped in finding information that related primarily to the consumer behaviour and how culture affects the choices that the customers make. A combination of the information will be helpful for the study.
One of the problems that the researcher must deal with is to ensure that biases will not be given to the study; as the information will be based primarily on the information gathered from the literatures, which are secondary sources, this may be a problem that the researcher may face. As such, the researcher will then strive to ensure that the method of information analysis will be conducted in a very objective manner, and will not in any way affect the outcome of the study.
Timescale
Resources
One hundred and eighty adults who are their households' primary shoppers will be recruited at two large regional shopping malls in Hong Kong. A quota sample will be used so that for each of the three treatments, half of the respondents selected will be between the ages of 21 and 35 years old and half of the respondents will be 35 years of age and older. This procedure will be used to ensure that there is sufficient representation of both younger and older respondents. A lottery ticket will be offered as an incentive to participate.
As stated, the primary source of data will come from the researcher-made questionnaire and interview questions. On the other hand, the secondary sources of data will come from published articles from social science journals, theses and related studies on business management, advertising, buying behaviour and business administration. Acquiring secondary data are also convenient to use because they are already condensed and organised.
References:
Aaker, JL 1997, Dimensions of Brand Personality. Journal of Marketing Research 34, 3: 347-56.
Bush, AJ Moncrief, WC & Ziethaml VA 1987, Source Effects in Professional Services Advertising, in Current Issues and Research in Advertising, Vol. 10, James H. Leigh and Claude R. Martin, Jr. (eds.), Ann Arbor, MI: Division of Research, Graduate School of Business Administration, University of Michigan: 153-172.
Greengrove, K 2002, Needs-based segmentation: Principles and practice; International Journal of Market Research; Henley-on-Thames; Fourth Quarter 2002; pp. 405-421.
Lastovicka, JL Erich, A & Joachimsthaler 1988, Improving the detection of personality-behaviour relationships in consumer research, Journal of Consumer Research; Vol 14, pp. 583-587.
Lowenstein, MW 1997, The Customer Loyalty Pyramid. Westport, CT: Quorum Books.
Neal, WD & Wurst, J 2001, Advances in market segmentation, Marketing Research; Chicago; pp. 14-18.
Plummer, JT 2000, How personality makes a difference, Journal of Advertising Research; New York; pp. 79-83.
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