THE EFFECT OF ADVERTISEMENT ON CONSUMERS BUYING BEHAVIOR: A CASE OF ETHIO – CERAMICS PLC

Abstract

This study was undertaken to investigate the effect of advertisement on consumers buying behavior in the case of Ethio – Ceramics Private Limited Company. The literature provided discusses the concept of advertisement and consumers buying behavior. The researcher used Descriptive approach study which describes quantitatively the effect of advertisement on consumers buying behavior. Information was gathered from a sample of 180 consumers. Advertisement was identified as the independent variable and consumers buying behavior as the dependent variable. Impressive, understandable, attention grabbing, memorable, creative and honest advertisements were considered as sub-variables of advertisement. Data obtained from the respondents was then analyzed. Two-tailed correlation analysis showed that there is a strong and positive relationship between understandable, attention grabbing & honest advertisement and consumers buying behavior. The correlation analysis also indicates a moderate and positive relationship between impressive, memorable & creative advertisements and consumers buying behavior. Multiple regressions were also applied. The results were according to the expectation after theory examination, but understandable advertisement has insignificant contribution on consumers buying behavior. On the other hand attention grabbing advertisement contributes the largest effect towards influencing consumers buying behavior. Based on the result of this research it is recommended that effective advertisement campaign which includes the aforementioned predictors should be practiced to attract more consumers and to gain competitive advantage against rivals. This research therefore adds a new dimension to the body of literature that will help researchers’ efforts to understand the effect of advertisement on consumers buying behavior.