The Effect of Advertisement on Consumer Preference and Behavior

1.0 Introduction

1.1 Background of Study

The relationship between advertisement and consumer behavior has long been a subject of interest in the field of marketing and business strategy. Advertising, as a formal communication tool, dates back to ancient civilizations where merchants used signs and oral announcements to promote goods in marketplaces. However, the modern form of advertising began to take shape with the invention of the printing press in the 15th century, which enabled mass communication and laid the foundation for print advertising (Kotler & Armstrong, 2018). Over time, advertising evolved to include radio, television, and eventually digital platforms, each transforming the way businesses engage with consumers. Advertisement is one of the most powerful tools used by businesses to communicate with their target markets.

According to Kotler and Keller (2016), advertisement serves as a major tool in creating product awareness and influencing consumer attitudes toward a brand. It is designed not just to sell a product, but to establish an emotional connection and shape consumer perceptions in a competitive market (Kotler and Keller, 2016). Consumer preference and behavior are central to marketing success, especially in a dynamic and media-saturated environment. Schiffman and Wisenblit (2019) asserted that consumer behavior is influenced by a combination of psychological, personal, cultural, and social factors, all of which determine how individuals respond to marketing stimuli such as advertising. They further stated that advertising does not act in isolation but interacts with other factors like brand reputation, and product quality.

Unilever Nigeria Plc, a leading Fast-Moving Consumer Goods (FMCG) company, has continually relied on advertising to maintain its market share and brand visibility. The company's portfolio includes well-known brands such as Omo, Close-Up, Lux, Knorr, and Lifebuoy, all of which are heavily promoted through various advertising channels. Ayanwale, Alimi, and Ayanbimipe (2005) reported that effective advertising significantly contributes to consumer brand preference, especially in the FMCG sector, where product differentiation is subtle and consumer loyalty is highly influenced by perception.

In Lagos State, which serves as the commercial nerve center of Nigeria, the advertising landscape is highly saturated with competing messages. Companies like Unilever are expected to develop innovative and culturally relevant advertising strategies to capture the attention of consumers in this competitive market. Okoro (2014) affirmed that the effectiveness of an advertisement in urban centers like Lagos is largely dependent on how well it resonates with consumer expectations, values, and media consumption habits (Okoro, 2014). Advertisement is a strategic communication tool used by businesses to inform, persuade, and influence the buying decisions of consumers.

According to Kotler and Keller (2016), advertisement is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. It is an essential component of the marketing mix that aims to stimulate consumer interest and influence behavioral responses toward a brand or product. In an increasingly competitive business environment, advertising serves not only as a medium of information but also as a psychological trigger that can shape consumer preferences and perceptions (Kotler and Keller, 2016). Consumer preference refers to the subjective tastes and inclinations that influence individuals' choices among alternatives, while consumer behavior involves the psychological, social, and economic actions that guide decision-making processes related to the purchase and consumption of goods and services (Schiffman & Wisenblit, 2019).

The relationship between advertisement and consumer behavior is complex and multifaceted, as it involves various cognitive and emotional factors that drive consumer responses. Unilever Nigeria Plc, a major player in the Fast-Moving Consumer Goods (FMCG) sector, produces a wide array of household and personal care products. Many consumers today are increasingly selective and skeptical about advertising content. The rise of digital platforms and user-generated reviews has empowered consumers to make more informed choices based on peer opinions and experiential feedback, sometimes diminishing the persuasive power of traditional advertising. Therefore, this research study is particularly important in examining how Unilever Nigeria Plc's advertising efforts influence consumer decisions in Lagos State and whether those efforts align with actual behavioral outcomes.

1.2 Statement of Problems

Investigation revealed that many businesses assume that exposure to advertisements will automatically influence consumers to prefer their brand over others, yet consumer decisions are often influenced by a range of complex psychological, social, and economic factors. In the Nigerian market, where consumers are exposed to multiple advertisements across diverse media platforms, the effectiveness of advertisement in capturing attention, evoking interest, and motivating purchase decisions is often questioned. Some advertisements may not resonate with the cultural, emotional, or rational needs of the consumers, thereby rendering them ineffective. Unilever Nigeria Plc, a major player in the Fast-Moving Consumer Goods (FMCG) sector, invests heavily in advertising campaigns.

Furthermore, consumers are becoming increasingly skeptical of advertising messages, especially when they perceive exaggeration or manipulation. This skepticism is compounded by the influence of peer opinions, online reviews, and brand experience, which is sometimes more impactful than advertisement alone. While advertisements are designed to inform, persuade, and remind consumers, the actual influence they exert on the decision-making process remains debatable, particularly in a densely competitive environment such as Lagos State. It is against this backdrop that this study seeks to evaluate the effect of advertisement on consumer preference and behavior, using Unilever Nigeria Plc in Lagos State as a case study.

1.3 Purpose of the Study

The purpose of this study is to investigate the effect of advertisement on consumer preference and behavior using Unilever Nigeria Plc in Lagos State as a case study. The study intends to analyze how different advertising strategies affect consumer decision-making and to determine the extent to which advertisements shape consumer loyalty and brand preference in a competitive market.

1.4 Aim and Objectives of Study

The aim of the study is to evaluate the effect of advertisement on consumer preference and behavior in the context of Unilever Nigeria Plc in Lagos State. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the extent to which advertisement influences consumer brand preference.
2. To identify the relationship between advertisement and consumer buying behavior.
3. To assess consumer perception of Unilever's advertisement strategies.
4. To evaluate the impact of advertising channels on consumer responsiveness.
5. To investigate how advertisement affects consumer loyalty to Unilever products.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• To what extent does advertisement influence consumer brand preference?
• What is the relationship between advertisement and consumer buying behavior?
• How do consumers perceive Unilever Nigeria Plc's advertisement strategies?
• What is the impact of various advertising channels on consumer responsiveness?
• How does advertisement affect consumer loyalty to Unilever products?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: Consumers do not perceive Unilever's advertisements as influential in their purchasing decisions
• H1: Consumers perceive Unilever's advertisements as influential in their purchasing decisions

Hypothesis Two

• H0: There is no significant relationship between advertisement and consumer behavior toward Unilever Nigeria Plc products in Lagos State
• H1: There is a significant relationship between advertisement and consumer behavior toward Unilever Nigeria Plc products in Lagos State

1.7 Significance of Study

The outcome of this research will help to uncover the extent to which advertising strategies employed by Unilever Nigeria Plc shape the choices and actions of consumers in Lagos State. This study will also contribute to academic literature by expanding the body of knowledge on advertising and consumer behavior in developing economies.

Furthermore, consumers themselves will indirectly benefit from the study, as businesses that understand their behavior and preferences through research are more likely to deliver products and promotional messages that are relevant, respectful, and beneficial.

Lastly, this study will help bridge the gap between advertising efforts and consumer response, enabling companies like Unilever Nigeria Plc to enhance customer satisfaction, brand loyalty, and market performance.

1.8 Scope of Study

This study is restricted to Unilever Nigeria Plc in Lagos State. It focuses on how advertising influences consumer preference and behavior toward the company's products, including detergents, personal care items, and food products. The research will involve customers and marketing staff within Lagos State, representing a broad consumer base exposed to Unilever's advertising campaigns.

1.9 Limitations of the study

During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
3. Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.

1.10 Definition of Terms

Advertisement:

A form of non-personal communication paid for by an identified sponsor to promote goods, services, or ideas to a target audience. According to Kotler and Keller (2016), advertisement is a critical tool used to inform and influence consumer decisions.

Consumer Preference:

The inclination or choice made by a consumer among different alternatives when purchasing products. Schiffman and Wisenblit (2019) stated that consumer preference reflects a consumer's overall judgment of a brand's value based on perception and experience.

Consumer Behavior:

The actions and decision-making processes of individuals when selecting, purchasing, and using products or services. Solomon (2018) affirmed that consumer behavior is influenced by psychological, personal, social, and cultural factors.

FMCG (Fast-Moving Consumer Goods):

Products that are sold quickly and at relatively low cost, such as food, beverages, personal care, and cleaning items. Unilever operates within this sector, producing items that require frequent advertising to sustain consumer interest.

Brand Loyalty:

A consumer's consistent preference and repeated purchase of a particular brand over others. Belch and Belch (2021) asserted that brand loyalty is often the result of successful advertising and positive product experiences.