THE INFLUENCE OF ADVERTISEMENT ON THE SUCCESS OF OIL

RETAILING INDUSTRY IN TANZANIA:

A CASE STUDY OF MOGAS TANZANIA LIMITED

By

Irene Kilahama

A Dissertation Submitted in Partial Fulfilment of the

Requirements for Award of the Degree of Master of Business Administration-

Corporate Management (MBA-CM) of Mzumbe University

DECEMBER, 2020

i

CERTIFICATION

We, the undersigned, certify that we have read and hereby recommend for

acceptance by the Mzumbe University, a research report entitled “The Influence of

Advertisement on the Success of Oil Retailing Industry in Tanzania: A Case

Study of MOGAS Tanzania Limited” in partial fulfillment of the requirement for

the award of Master’s Degree of Business Administration in Corporate Management

of Mzumbe University.

_______________

Major Supervisor

________________

Internal Examiner

________________

External Examiner

Accepted for the Board of MUDCC

________________________________________________

PRINCIPAL, DAR ES SALAAM CAMPUS COLLEGE

ii

DECLARATION

AND

COPYRIGHT

I, Irene Kilahama declare that this research report is my own original work and that

it has not been presented and will not be presented to any other university for a

similar or any other degree award.

Signature ___________________

Date: _______________________

©

This research report is a copyright material protected under the Berne Convention,

the Copyright Act 1999 and other international and national enactments, in that

behalf, on intellectual property. It cannot be reproduced by any means in full or in

part, except for short extracts in fair dealings, for research or private study, critical

scholarly review or discourse with an acknowledgement, without the written

permission of Mzumbe University, on behalf of the author

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ACKNOWLEDGEMENT

I am greatly thankful to those who participated in the accomplishment of this study.

It is not possible to mention by names all those who took part in the success of this

study, it is therefore suffices to express my heartfelt thanks to all, who by any means

contributed to the accomplishment of this dissertation. Nevertheless, I would like to

mention few.

First, I would like to express my gratitude and thanks to God. Second, I have great

honor to thank my supervisor Dr. Omary Swalehe for his support and guidance to the

accomplishment of this study. Last but not least, I would like to thank the Head of

Marketing department of Mogas Tanzania Limited for his cooperation during the

time of data collections.

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DEDICATION

This dissertation devotedly dedicated my beloved parents Mr. and Mrs. Kilahama

and my family at large for their constant love, patience, moral and material support.

v

LIST OF ABBREVIATIONS

MOGAS - Maestro Oil & Gas Solutions

SPSS - Statistical Package for Social Sciences

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ABSTRACT

The study was set to explore the influence of advertisement on the success of oil

retailing industry in Tanzania. The research study aimed at answering the four

specific objectives including; establishing the forms and types of advertising

promotion adopted by MOGAS Tanzania limited, examining the extent in which

advertisement relates with the sales performance at MOGAS Tanzania limited,

examining the extent in which advertisement relates with the consumer behavior at

MOGAS Tanzania limited and examining the extent in which advertisement relates

with promotion of the brand of MOGAS Tanzania limited.

The researcher used well-prepared structured questionnaires and interview data

collection methods to obtain findings of the study. Data were collected and analyzed

by descriptive analysis and correlation analysis technique while considering 80

respondents as a sample size.

The study findings revealed that the direction relationship among the identified

variables “increases the revenue, leads to more sales volume quickly, builds long

term profitability and strengthen relationship with customers” were positive

correlated in representing the relationship between advertisement and sales

performance. It was also revealed that the direction of the relationship among the

identified variables “reinforces consumers’ decisions, increase of customers

satisfaction, reinforces consumers’ attitude and enhance consumers’ awareness” were

positive correlated implying that these variables tend to effect together in

representing the magnitude of consumers’ behavior. Therefore the magnitude or

strength of the association/relationship between advertisement and consumers’

behavior was found to be absolute strong. The study findings further revealed that

there is a strong relationship between advertisement and the promotion of the brand.

The researcher suggests that the management of MOGAS Tanzania limited should

use other forms of adverting like sponsoring events and use of mobile phone

advertising. This will increase awareness about the various products offered by the

given company.

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TABLE OF CONTENTS

CERTIFICATION ........................................................................................................ i

DECLARATION AND COPYRIGHT ........................................................................ ii

ACKNOWLEDGEMENT .......................................................................................... iii

DEDICATION ............................................................................................................ iv

LIST OF ABBREVIATIONS ...................................................................................... v

ABSTRACT ................................................................................................................ vi

TABLE OF CONTENTS ........................................................................................... vii

LIST OF FIGURES .................................................................................................... xi

CHAPTER ONE ........................................................................................................ 1

INTRODUCTION AND BACKGROUND TO THE STUDY ............................... 1

1.1 Introduction ...................................................................................................... 1

1.2 Background of the study .................................................................................. 1

1.3 Statement of the problem ................................................................................. 4

1.4 Objective of the study ...................................................................................... 6

1.4.1 General Objective ............................................................................................. 6

1.4.2 Specific objectives ............................................................................................ 6

1.5 Research questions ........................................................................................... 6

1.6 Significance of the study .................................................................................. 7

1.7 Scope and delimitation of the study ................................................................. 7

1.8 Limitation of the study ..................................................................................... 7

1.9 Organization of the dissertation ....................................................................... 8

CHAPTER TWO ....................................................................................................... 9

LITERATURE REVIEW ......................................................................................... 9

2.1 Introduction ...................................................................................................... 9

2.1.1 Definition of key terms ................................................................................... 9

2.2 Theoretical review.......................................................................................... 10

2.2.1 Theories and models guiding the study ......................................................... 10

2.2.3 Advertisement in relation to consumer attitude and behaviors ...................... 23

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2.3 Empirical review ............................................................................................ 24

2.4 Conceptual framework ................................................................................... 27

2.5 Research Gap ................................................................................................. 29

CHAPTER THREE ................................................................................................. 31

RESEARCH METHODOLOGY ........................................................................... 31

3.1 Introduction .................................................................................................... 31

3.2 Area of study .................................................................................................. 31

3.2.1 Map of the study area ..................................................................................... 32

3.3 Research design ............................................................................................. 33

3.5 Population of the Study .................................................................................. 34

3.6 Sampling unit ................................................................................................. 34

3.7 Sampling frame .............................................................................................. 34

3.8 Sample size of the study ................................................................................ 34

3.9 Sampling techniques and procedures ............................................................. 35

3.9.1 Sampling Techniques ..................................................................................... 35

3.9.2 Non-probability sampling technique .............................................................. 35

3.9.2.1 Purposive sampling technique ....................................................................... 36

3.10 Sources of data ............................................................................................... 36

3.10.1 Primary data sources ...................................................................................... 36

3.11 Data collection methods ................................................................................. 36

3.11.1 Questionnaire ................................................................................................. 36

3.11.2 Interview ........................................................................................................ 37

3.12 Reliability and validity of data ....................................................................... 37

3.12.1 Reliability ....................................................................................................... 37

3.12.2 Validity .......................................................................................................... 37

3.13 Analysis and management of data ................................................................. 38

3.13.1 Data management ........................................................................................... 38

3.13.2 Data analysis .................................................................................................. 38

3.13.3 Data analysis techniques ................................................................................ 38

3.13.4 Qualitative data analysis ................................................................................ 39

3.14 Ethical considerations .................................................................................... 39

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CHAPTER FOUR .................................................................................................... 40

FINDINGS PRESENTATION ............................................................................... 40

4.1 Introduction .................................................................................................... 40

4.2 Demographic characteristics of respondents.................................................. 40

4.2.1 Gender status of respondents ......................................................................... 40

4.2.2 Age of respondents ........................................................................................ 41

4.2.3 Working experience of the respondents .......................................................... 42

CHAPTER FIVE ..................................................................................................... 43

5.1 Introduction .......................................................................................................... 43

5.2 Response on the forms of advertising promotion adopted by MOGAS ........ 43

5.3 The extent to which advertisement relates with the sales performance a ...... 44

5.4 The extent to which advertisement relates with consumers’ behavior ......... 49

CHAPTER SIX ........................................................................................................ 58

SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................ 58

6.1 Introduction .................................................................................................... 58

6.2 Summary of the findings based on the research questions ............................ 58

6.2.1 Summary of the findings based extent in which advertisement ................... 58

6.2.3 Summary of the findings based on the extent in which ................................ 59

6.3 Conclusion of the study ................................................................................. 59

6.4 Recommendations of the study ...................................................................... 60

6.4.1 Recommendations to the management of MOGAS Tanzania limited ........... 60

6.4.2 Recommendation for policy makers .............................................................. 61

6.4.3 Recommendations for further research .......................................................... 61

REFERENCES .......................................................................................................... 63

APPENDICES ........................................................................................................... 73

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LIST OF TABLE

Table 4.1 Descriptive statistics .................................................................................. 45

Table 4.3 Descriptive statistics .................................................................................. 50

Table 4.5 Descriptive statistics .............................................................................. 54

Table 4.6 Correlations ............................................................................................ 55

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LIST OF FIGURES

Figure 2.1 Conceptual framework ................................................................................... 29

Figure 3.1 Map of the study area ..................................................................................... 32

Figure 4.1: Gender status of the respondents ................................................................... 41

Figure 4.2: Age of the respondents .................................................................................. 42

Figure 4.3 Working experiences of the respondents ........................................................ 42

Figure 4.4 Forms of advertising promotion adopted by MOGAS Tanzania limited ....... 44

1

CHAPTER ONE

INTRODUCTION AND BACKGROUND TO THE STUDY

1.1 Introduction

This chapter is the introductory part of the study, which provides the study general

background, a problem, statement, study objectives, research questions, significance

of the study, scope and delimitation of the study and organization of the research

report.

1.2 Background of the study

Kotler and Armstrong (2010) express, advertising as any paid type of non-individual

introduction and advancement of thoughts, merchandise, or administrations by a

distinguished support. Advertising is a significant segment of coordinated market

correspondence and it is viewed as the most noticeable and costly movement. It is

additionally viewed as among extraordinary customary limited time blend systems,

which have been built up by numerous organizations these days (Kim et al., 2018).

Advertisement refers to all the activities involved in presenting to a group, a non-

personal oral or visual, openly sponsored message regarding a product, service idea

or organization is disseminated through one or more media and is paid for by an

identified sponsor. Advertising consists of all the activities involved in presenting to

an audience, a non-personal, sponsor identified paid for message about a product or

organization. (Stanton, et., al., 1994). ‘Advertising is any paid form of non-personal

presentation and promotion of ideas, goods or services by an identified sponsor

(Kotler, 2006).

Andrews and Shimp (2017) express an advertisement as an announcement to the

public of product, service or idea through a medium to which the public has access.

The medium may be print (such as newspapers, banner and hoardings), electronics

(radio, television, cable phone), or any other. An advertisement is usually paid for by

an advertiser at fixed rate or negotiated with the media. It is a form of persuasive

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communication with the public. The communication is usually one sided, in one

direction from the advertiser and to the public.

Advertising is the most visible marketing tools, which seeks to transmit an effective

message from the marketer to a group of individuals. The marketer pays for

sponsoring the advertising, unlike salesmanship, which interacts with a buyer face to

face, is non-personal. It is directed at a mass audience; and not an individual, as in

personal selling (Neupane, 2019).

Advertisement has direct effect on the brains of the customer to expend more

prominent segment of the item and fast utilization. Advertisement additionally

expands the gainfulness of the association. Advertisement is useful in both short run

and since quite a while ago run organizations in spite of the fact that in since a long

time ago run it is generally significant; it expands the estimation of the item and

company (Zia & Shahzad, 2015).

The most disturbing task that faces business officials is making choice on sales. This

is rooted into the fact that it is almost impossible to predict clearly and with

assurance the needs of clients and these are termed as factors that cannot be

controlled since they exist outside the organization. (Ayanwale, Alimi and

Ayanbimipe, 2005). It is of paramount importance that companies participate in

events that will influence the clients to buy their items given the importance of sales

to business and the relationship between clients and sales, This is the place

advertising is pertinent. Advancement of blend which is one of the 4ps in the

marketing mix i.e. product, price, place and promotion has advertisement as its

subset.. In most cases advertising leads to awareness about products and assists in

conditioning the brain of the customer in making a choice to buy an item (Agbeja,

Adelakun, &Akinyemi, 2015).

Concentration on ad has ben rising on a daily basis with a lot of money being spent

on the promotion sector thus bringing to companies multiple merits. Furthermore, it

is a "consequence of the essential need" for any endeavor, concentrated on a business

3

accomplishment, and it is ending up being progressively exorbitant. A clear example

is Finland whereby the money spent on advertising was 1313, 1 million euro in 2012

and 1206,7 million euro in 2013 (Finnish Advertising Council, TNS Gallup, Ad

Intelligence 2014).

However, it is arguable that if mass correspondence had not been discovered,

advertising would not have been so broad as it is. The most contributing is

typography coupled with the spread of the art of typography in the mid 19th century

whereby a photograph has filled in the place of the plugged thing (Presbrey, 2009).

Kanso and Nelson (2007) however provide that in the 20th century bigger progress

was made in the promotion endeavors making the century termed as “time of

advertising” with unprecedented progress made in the advertisement field, it became

popular and with the constant increase in the strategies such as electronic radio,

multicolor printing, TV, PCs, and Internet. The onset of globalization; it has become

of interest for the researchers to look into the effect of advertising including the way

a client conducts him/herself as a result of advertising (Kanso & Nelson, 2007).

Kotler (1988) remarked that advertising assists with expanding the potential

consumers' responses towards an association and its contribution. The authors draw

emphasis on this that this is accomplished through data provision that aims at

changing wants, and motivating the clients towards a particular association’s offer.

This is regarded as some as a strategy to increase faithfulness to brand among clients

as well as acquiring clients from competitors (Agrawal, 1996). Morden (1991)

contended that advertisement is used to develop basic interest on the item in the

client’s brain and develop awareness about it. Yan (2004) came up with the findings

that 70% of the Chinese saw Coca-Cola as a huge brand due to the extensive

promotion that they had experience. On the other hand, various investigators have

pointed out that in order to retain clients, advertising is one the key strategies (Ha,

Janda, John & Muthay, 2011). Thus, it is an intention of advertising to help the buyer

make an educated choice based on awareness about the item and available data.

Advertising is therefore important in this context when it relies on the ability to

influence the clients to buy and repurchase and thus creating commitment to the

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brand. Many companies spend a lot of assets for advertising every year. Kanso and

Nelson (2007) provide us with the data that in 1997, $40.12 billion was spent on

advertising and it further increased in 2006 to $602 billion. As However, Tai (2007)

denotes that a top to bottom research on advertising was not done by a number of

these companies before selecting advertising strategies making it a hindrance for the

organization to accomplish their advertising goals. Before embarking on advertising;

the advertiser needs to establish that pulling the clients into advertising has only one

main goal, which is to convince them to buy the goods or services. Advertising is a

tool used in overruling the buyer’s power to choose by providing a linkage between

wants/goods/services and satisfaction. Over-sensationalized advertising tends to

disturb clients as noted by (Spangenberg, Obermiller, & MacLachlan. 2005).

1.3 Statement of the problem

Customers typically start-buying process by taking care of the information passed on

by different organizations as mass correspondences, for example TV ad or open

outside notices. They by then create brand data and make a more grounded

prerequisite for the thing being alluded to. Following these strategies, when a client

feels the need for information regarding the goods or services, they normally

communicate with the organization through the sales representative to discover more

about the offer. Dahlqvist and Linde (2002) point out that this offers the organization

an opportunity to influence the client through relationship correspondence.

Advertising is broadly perceived as an incredible power for improving brand

mindfulness and forming customer inclinations (Macdonald & Sharp, 2003).

Organizations keep on spending tremendous measures of cash on publicizing each

year; the United States alone burned through 189 billion dollars in 2015 (Zhang &

Vorhies, 2017). Notwithstanding the fact is that advertisememt is a powerful

instrument, it is still very important for organizations to precisely assess and measure

its impact especially towards the success of the organization. In this way, in past

decades, the two specialists and scholastics have put forth colossal attempts to review

the effect of advertisement on different aspects but have failed to focus on the

influence of advertisement towards the success of the companies. In order to place

their items/services as the higher purpose of the client’s mind; companies keep on

5

spending huge amounts of funds on advertising. Fatima and Lodhi (2015) contend,

“With the changing preferences by customers as well as the way in which they

conduct themselves; organizations are still at cross-roads on what kind of advertising

strategy can help in turning around the conduct of consumers.”

There are numerous advertisements in Medias; television, radio, newspapers and

magazines but the important question for a marketer is “do all these advertisements

positively influence the consumers’ brand preference?” The efforts put into

advertising are considered futile when they do not lead to any positive changes in

the brand preferences among the consumers. Thus, the most important task for a

marketer is to uncover the length to which advertisement leads to a positive change

in consumer’s behavior with regard to the company’s brand (Vivekananthan,

2010). When such principles are foregone in marketing; it leads to problems that

have huge effects on the company to the extent of threatening its mere existence

(Giles, 1997).

Given the above arguments, it is of importance that an investigation is carried to look

into the influence of advertisement of the success of oil retailing industry with

MOGAS Tanzania Limited as a case study. The company under investigation i.e

MOGAS Tanzania Limited has been carrying put advertisement of its products with

an intention to boost sales performance, determine consumers’ behavior, and

promoting its brand. The means for advertising include radio, newspapers and

television. Preliminary interview carried with the marketing staff at MOGAS showed

that the company did not carry out any research into the influence of advertisement

on its success in the oil retailing business. Additionally, the advertising had no

appropriate target and did not have clear goals as to what it aimed at between

promoting brand, influencing consumers’ behavior and boosting sales performance.

This exploration exertion was equipped towards analyzing the influence of

advertisement on the success of oil retailing by MOGAS Tanzania limited while

specifically interested on establishing the forms of advertising promotion adopted by

MOGAS Tanzania limited, examining the extent in which advertisement relates with

6

sales performance of MOGAS Tanzania limited, examining the extent in which

advertisement relates with consumer behavior at MOGAS Tanzania limited, and

examining the extent in which advertisement relates with promotion of the brand of

MOGAS Tanzania limited.

1.4 Objective of the study

1.4.1 General Objective

To assess the influence of advertisement on the success of oil retailing industry in

Tanzania.

1.4.2 Specific objectives

The specific objective for this study will include:

i. To establish the forms of advertising promotion adopted by MOGAS

Tanzania limited

ii. To examine the extent to which advertisement relates with the sales

performance at MOGAS Tanzania limited

iii. To examine the extent to which advertisement relates with consumer

behavior at MOGAS Tanzania limited

iv. To examine the extent to which advertisement relates with the promotion of

the brand of MOGAS Tanzania limited

1.5 Research questions

This study will address the following research questions;

i. What are the forms and types of advertising promotion adopted by MOGAS

Tanzania limited?

ii. In what extent advertisement relates with the sales performance at MOGAS

Tanzania limited?

iii. In what extent advertisement relates with consumer behavior at MOGAS

Tanzania limited?

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iv. In what extent advertisement relates with the promotion of the brand of

MOGAS Tanzania limited?

1.6 Significance of the study

For the most part, the criticalness of any study is either securing of information or

providing solution to a problem. The envisaged results of this study shall, among

other things add the body of knowledge to the scarce empirical literature on the

influence of advertisement on the success of oil retailing industry in Tanzania;

Provide fundamental data to the strategy producers on having a typical approach, to

be trailed by oil retailing organizations in Tanzania; The discoveries of this

examination are anticipated to open up room for a wider understanding of the

influence of advertisement on the success of oil retailing industry in Tanzania. Also

highlights of this research would help stakeholders in the industry to shape their

marketing strategies more precisely. The study is also expected to provide an

expanded research base for future studies. Since the researcher is working within the

industry, it would also sharpen the researcher’s performance skills and knowledge of

all related matters to this study.

1.7 Scope and delimitation of the study

This study is confined in assessing the influence of advertisement on the success of

oil retailing industry in Tanzania, a case of MOGAS Tanzania limited whereby

specific confinement was on establishing the forms of advertisement adopted by

MOGAS Tanzania limited, to examine the extent in which advertisement relates with

the sales performance at MOGAS Tanzania limited, to examine the extent in which

advertisement relates with consumer behavior at MOGAS Tanzania limited, to

examine the extent in which advertisement relates with the promotion of the brand of

MOGAS Tanzania limited

1.8 Limitation of the study

Every study in the world is anticipated to be disposed to some limitations. For the

case of this study, the following were limitations of this study;

8

The researcher experienced a problem on the willingness of the respondent to answer

questions. Therefore in order to avoid such limitation, the researcher ensured the

respondents who provided data of the study were informed about the significance of

the study thus the data provided was strictly used for academic purpose only.

Also this study is conducted in only one company detailing with oil retailing in

Tanzania, which is MOGAS Tanzania limited. Therefore, the data collected was

limited to only one company; hence it is impossible to generalize this data to apply in

other companies, which are in oil retailing industry in Tanzania.

1.9 Organization of the dissertation

This indicates how the study is structured. The study is divided into five chapters

namely: Background of the study, literature review, research methodology,

presentation and discussion of findings, and lastly summary and conclusion of the

study.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter reviews literature on the subject matter. It further covers the review of

both the theory in the respect of advertisement and detailed empirical evidence on

previous research studies that associates with given study topic. The chapter also

represents conceptual framework and concludes by showing a research gap in the

studied literature.

2.1.1 Definition of key terms

Advertisement

Advertising is an implement of marketing for passing on thoughts and data about

goods and ventures to a notable gathering, which makes use of paid space or time in

the media or uses another correspondence means to communicate its message. It

explicitly distinguishes the advertiser and his association with the business exertion

(Wanoff, 1997).

Advertising is the strategy to convince individuals to purchase goods/services (Frank,

2005). Advertising therefore can be characterized as the conveying of data

concerning an idea, item, or administration to force an activity as the publicist’s

purpose. It therefore can be summed up as a controlled data and influence by

strategies for mass correspondence (Borden, 2007).

Retail

Pantano and Viassone (2015) define retail as the offering of products in little

amounts from one point legitimately to the consumer.

At the end of the store/supply network is the retailer who offers the products in small

amounts to the consumers in terms of their needs and conditions put forward (Vaja,

10

2005). The end consumer purchases from the retailer the products in small amounts

to fulfill the wants (Pantano &Viassone, 2015).

2.2 Theoretical review

2.2.1 Theories and models guiding the study

In this part the theories linked to the purpose of this study were examined. The

theories and models found in the literature on the subject were presented and

compared to each other. Models and theories from different authors were discussed

and different approaches on the same theories were investigated. This examination of

literature was done out of an external marketing communication view and was

focused on the advertising process.

There are theories within external marketing communication and advertising that has

been highly influential in both textbooks and in the professional advertising practice

(Hackley, 2005). These theories all derive from what can be referred to as the old

‘learning theory’, a theory that can be related to the Pavlovís dogs’ experiment.

Pavlov trained his dogs’ to associate the arrival of food with the ringing of a bell; a

sound that alone would lead to the salivation response among the dogs. Just like the

bell in Pavlovís dogs’ experiment, advertising was seen as a stimulus that would give

rise to a response, just like the dogs’ salivation response. After further developments

of the so-called ‘learning theory’ it gave rise to a new more up to date approach

toward advertising planning (Mackay, 2005).

The new approach was set with different names depending on authors at that time:

• ‘the linear information processing theories of communication and persuasion’

(Hackley, 2005),

• ‘message models’ (Smith & Taylor, 2002) and the

• ‘hierarchy of effects theory’ (Mackay, 2005),

11

This new approach generally reflects the methods and assumptions of cognitive

psychology.

According to Kitchen (1994) advertising are aiming to progress customers through

the cognitive, affective and behavioral stages before they buy the products. An

example on a model that exemplifies these stages is the Lavidge and Steiners model

(Kitchen 1994, Barry & Howard 1990).

The Lavidge and Steiners model will together with two other models that also shows

these stages be mentioned more later on in this part.

In this study the researcher will use the name for the theory offered by Mackay

(2005), which is “hierarchy of effect”.

The hierarchy of effects approach is grounded on the base that to be effective and

achieve the desired response, several steps has to be completed and passed. Any

piece of persuasive communication must carry the audience through the series of

stages that has been drawn. These stages are placed so that a customer has to climb

them and one step cannot be reached until the previous is completed (Mackay, 2005).

Due to the development within the field of psychology at this time, this approach

came to base the new theoretical models (Vakratsas & Ambler, 1999). These new

models were developed to depict the stages that a customer may pass through in the

buying process and three of these will discussed later in this part.

However, as mentioned earlier in this part, models have been created to give more

specific guidelines on how customers may respond to advertising.

These models are created to show what behavioral steps customers has to pass

through when exposed to advertising and if the communicating organization can lead

the customer through all these steps, the risk for noise in the communication process

decreases even more (Mackay, 2005).

12

To have in mind when reading about these models are that advertising professionals

still tries to find the ultimate model that can be applicable on the real market and its

customers. Right now the models and theories are hard to apply into real life (Jobber,

2004).

The existing behavioral advertising models will now be examined further and

compared to each other. Due to the high amount of models that has been published

on this area, this study will only investigate the, according to Professor Evans

(University of Lincoln, 2006) three most discussed ones.

These models are from older publications and there are several models that have

been published after these, but since this study aims to investigate the chosen models,

the newer ones will not be discussed here.

2.2.1 AIDA

AIDA was created by Strong in 1925 and is a behavioural model that has as purpose

to make sure that an advertisement raise awareness, stimulate interest, and leads the

customer to desire and eventually action (Hackley, 2005). The model is seen as a

highly persuasive and is said to often unconsciously affect customers’ way of

thinking (Butterfield, 1997).

With the AIDA model, Strong (1925) suggests that for an advertisement to be

effective it has to be one that:

1. Commands Attention

2. Leads to Interest in the product

3. And hence to Desire to own or use the product

4. Then finally leads to Action (Mackay, 2005)

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For the advertisement to contribute to success it has to be designed so that the

customer passes through all these four phases, with all being equally important. The

model implies that advertising should inject memorable and believable messages that

will make costumers triggered to act in a certain way (Brierley, 2002).

The model may be seen by many as the strongest advertising theory, but has along

with the others been criticized by different sections of the advertising community.

They claim that there is no evidence that customers behave in this rational, linear

way. They mean that mass media advertising in general fail to stimulate desire or

action. The model ignores the role of context, environment and mediation in

influencing the effectiveness of the advertisement.

The advertising world has because of this lately turned into focus more on the two

main behavioral responses: awareness and interest. They mean that all four phases

are not equally important and to be successful the advertiser has to look further into

the behavioral phases (Brierley, 2002).

Another criticism that the model has met is that it represents only high-involvement

purchases. According to AIDA customers always goes through this rational process

when buying products, but many says that purchases more often are spontaneous

(Hackley, 2005).

In 1961 there were two new models published, the DAGMAR theory (Belch &

Belch, 1995) and Lavidge and Steinerís hierarchy of effects model (Lavidge &

Steiner, 1961).

2.2.2 DAGMAR

Russell Colley created DAGMAR when he prepared a report for the Association of

National Advertisers. This report was entitled Defining Advertising Goals for

Measured Advertising Results, shortened down to DAGMAR, and thereof the name,

(Belch & Belch, 1995) and was later in 1969 published as a book with the same title

(Mackay, 2005). DAGMAR was created to encourage measurable objectives for

14

each stage of the communication (Smith & Taylor, 2002) and does not deal purely

with the message (Mackay 2005). DAGMAR focuses on the levels of understanding

that a customer must have for the organization and on how to measure the results of

an advertising campaign (Belch & Belch, 1995).

The main conclusions on the DAGMAR theory were expressed in the following

quotation:

“All commercial communications that weigh on the ultimate objective of a sale must

carry a prospect through four levels of understanding.

1. The prospect must first be aware of the existence of a brand or organization

2. He must have a comprehension of what the product is and what it will do for him

3. He must arrive at a mental suspicion or conviction to buy the product

4. Finally he must stir himself to action.” (Mackay, 2005, p.25-26)

The communication has to be specific and measurable, and is therefore based on a

hierarchical model containing the four stages set out above in the quotation (Mackay,

2005).

The DAGMAR approach has had a huge influence on the how to set objectives in the

advertising planning process and many planners use this model as their base.

However, just as the other approaches within advertising, DAGMAR has been met

with critique. One of the major criticisms towards DAGMAR is on its reliance on the

‘hierarchy-of-effects theory’, just as with AIDA. Customers do not always pass

through the stages in a linear way.

Another criticism made towards the DAGMAR approach is that it focuses too much

on strategies. Many creative people within advertising are looking for the great

unique idea that can result in a successful campaign and feels that the DAGMAR

15

approach is too concerned with quantitative measurements on the campaign (Belch &

Belch, 1995).

2.2.3 Lavidge & Steiners Hierarchy-of-effects model

This model was published during the same period as DAGMAR. The model was

named the hierarchy-of-effects model, which is the same name as some authors used

on the foundation theory, and therefore gone under the name, Lavidge & Steiners

Hierarchy-of-effects model in this study.

According to this model customers do not switch from being completely uninterested

to become convinced to buy the product in one step. Lavidge and Steiners Hierarchy-

of-effects model is created to show the process, or steps, that an advertiser assumes

that customers pass through in the actual purchase process (Barry & Howard, 1990).

The model is based on seven steps, which as with the other models must be

completed in a linear way.

The big difference between this model and the others is not only the steps, but also

the view on how to pass them. Lavidge and Steiner (1961) write that the steps has to

be completed in a linear way, but “a potential purchaser sometimes may move up

several steps simultaneously” (Lavidge & Steiner, 1961, p. 60) which is supported by

Munoz (2002) who writes that normally ultimate customers do not switch directly

from being interested to become convinced buyers.

Lavidge and Steiner identify the seven steps in the following order:

1. Close to purchasing, but still a long way from the cash register, are those who are

merely aware of its existence.

2. Up a step are prospects who know what the product has to offer.

3. Still closer to purchasing are those who have favorable attitudes toward the

product those who like the product.

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4. Those whose favorable attitudes have developed to the point of preference over all

other possibilities are up still another step.

5. Even closer to purchasing are customers who couple preference with a desire to

buy and the conviction that the purchase would be wise.

6. Finally, of course, is the step, which translates this attitude into actual purchase.

(Lavidge & Steiner, 1961, p. 59)

Lavidge and Steiner (1961) also wrote, in their article, that they are fully aware of the

impulsive purchases that customers can make, but they mean that for higher

economical goods these steps are essential for the advertiser to include.

This model also has as a premise that advertising occurs over a period of time, and

may not lead to immediate response and purchase. It is rather a series of effects that

has to occur, with each step fulfilled on the way towards the next stage (Lavidge &

Steiner, 1961)

Behind this model is according to Belch & Belch (1998) the premises that

“advertising effects occur over time and advertising communication may not lead to

immediate behavioural response or purchase, but rather, consumers must fulfill each

step before (s) he can move to the next stage in the hierarchy” (Belch and Belch

1998, p. 146).

As with the former models discussed, this model has also been criticized. The

criticism on Lavidge & Steiners model is very similar to the one made on DAGMAR

and AIDA. There is still no evidence on the fact that awareness of a products leads to

purchase, and the steps are still unclear.

Criticism has also been made on each individual step in the model. Critics do not

think that the model explains how the customers will go from one step to another and

to point out the steps without explaining them further is not seen as enough (Palda,

1966).

17

Review over the discussed models

AIDA DAGMAR Lavidge & Steiners Hierarchy-

of effects model

Attention

Interest

Desire

Action

Focus on the different steps that

customers must pass in the

process towards buying a product

when being exposed to

advertising.

Must be passed in a linear way

with one step completed before

the moving on to the next one.

Aware

Comprehension

Conviction

Action

Focus on the different levels of

understanding that a customer

must attain for an organization in

the process of buying a product

after being exposed to

advertising. The levels of

understanding must be passed in

a linear way. The advertising

objectives must be measurable

Unaware

Aware

Liking

Preference

Conviction

Purchase

Focus on the different steps that

a customer must pass in the

process on buying a product

when being exposed to

advertising.

Should be passed in a linear way

but also recognizes the different

levels of consideration that can

take place depending on the

products.

Source: Strong (1925); Belch and Belch (1995); Lavidge and Steiner (1961).

Criticism on the ‘Hierarchy of effects theory’

The models that are based on the “hierarchy of effects” theory (Mackay, 2005) can

be very helpful but are not conclusive. There are several factors that these models do

not take in consideration.

1. Not all buyers go through all stages,

2. The stages do not necessarily occur in hierarchical sequence,

3. Impulse purchases contract the process. (Smith & Taylor, 2002, p. 97)

18

The hierarchy models help the advertiser to identify the stages that buyers generally

passes through, but cannot be used as obvious guidelines (Smith & Taylor, 2002).

As seen earlier in this chapter the criticism on the models and theories are very

similar. They have all been met with the criticism that customers do not always

follow a straight line of steps when purchasing a product. Not all customers pass

through all the steps before buying a product, some may stop at one stage, and some

may go back several steps before later on going back for the product. Something that

all of these models and theories are missing is the loop from the top to the end of the

steps. A loop like this would show that a purchase is not always the end step, rather

the beginning of an ongoing relationship with the customer (Smith & Taylor, 2002).

The design of the advertisement has a huge effect on the result of the campaign.

Advertising is a campaign that sets high demands on the creativity and to put all of

this within a frame of models would kill the creativity (Jobber, 2004).

Forms of advertising

As per Kotler and Armstrong (1999) various types of publicizing considered being

practical, powerful and updating promoting. Enlightening publicizing is utilized to

advise the consumers about another product or highlight and to create the image of

the organization (Kotler and Armstrong, 1999). Influential publicizing is one used to

assemble particular interest for a brand by convincing clients that it offers the value

for money. It is geared towards influencing the consumer to purchase instantly.

Update publicizing is one used to keep purchasers contemplating the item or

administration. It is significant for adult items or administrations. It serves as a

reminder to the consumers that in the near future they shall require such products and

thus show them where to acquire such a product. Andrews and Shimp (2017)

contend, as a business, a few types of advertising advancements would be more

appropriate to their business than others, contingent upon the crowd they are

focusing with their promotions just as what is most financially savvy for them and

will permit them to arrive at the biggest number of individuals on the double without

19

driving the organization to insolvency. The alternative ought to likewise mirror

nature in which organization's administration or item exists. For instance, if the

organization's objective market invests the majority of its energy in web based life, at

that point their advancement should run via web-based networking media.

Types of advertising promotions

There are numerous kinds of advertising promotions that an organization can use to

advance its item or service. Everything relies upon what works for the organization.

Among the types of advertising promotions can be described below as follows;

Newspaper Advertising Promotions

Picard (2008) states that newspaper-advertising promotions offer the opportunity to

contact an expansive crowd who peruses both the local and state or metropolitan

papers. An organization has two choices right now: can pick pennant advertisements,

which can be put anyplace in the paper or they can pick classifieds, which are

recorded under explicit headings in one a particular area of the paper. An

organization can promote in local papers, or in state or national papers, or in a mix of

the two (Kaser, 2012).

Magazine Advertising Promotions

Chandra and Kaiser (2014) underline that magazines have one main benefit over

papers that an organization can use for its publicizing effort: they are generally

authority and take into account a particular sort of crowd. They, along these lines,

make it simple for an organization to find a workable pace message significantly

more no problem at all.

Clow (2004) contends that, on the off chance that the organization needs to show its

items in shading, at that point it is a smart thought to get a vivid, gleaming notice

showed in a magazine to draw out the various parts of its magazine all the more

unmistakably. Along these lines, notwithstanding, an organization should pay more

for a magazine advertisement than for a paper promotion.

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Avery, Eisenberg and Simon (2012) provide that, magazines likewise serve more

noteworthy geographic territories than papers, since they are not confined to explicit

towns or states. The scientists further contend that, on the off chance that the

organization needs a more extensive crowd; at that point a magazine is a smart

thought. Be that as it may, on the off chance that an organization needs to focus on a

particular area, at that point a paper may be a superior speculation.

Radio Advertising Promotions

Kelley, Sheehan and Jugenheimer (2015) postulate that, promoting on the radio is

one of the more viable approaches to arrive at your intended interest group, if the

organization's crowd is all around characterized. On the off chance that the

organization realizes which station its intended interest group is probably going to

tune in to, at that point the organization can routinely publicize on that station to pull

in more up to date clients.

Harb (2012) challenges that, albeit radio is a ground-breaking approach to publicize

to organization's intended interest group, there are sure downsides to the mode of

sound that the organization ought to consider, before it utilizes this medium. One of

these downsides has to do with the memory of the audience members. Sooner or

later, a great many people scarcely even recollect what they heard on the radio. Thus,

while an organization's ad may have a remarkable effect at the time, its

advertisement may lose its impact later on.

Fransen, Verlegh, Kirmani, and Smit (2015) underline that; the most ideal approach

to have the effect of the organization's promoting endure on radio is to continue

playing it again and again. That is acceptable in that it guarantees audience members

stay with hearing's message thus it gets bored into their brains. In any case, it is

likewise terrible in that playing its message again and again can be very cruel on its

pockets. On the off chance that the organization can't bear to play its publicizing

advancement regularly on the station, at that point it won't get results in the same

class as it would need.

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Television Advertising Promotions

TV is an amazingly incredible mechanism for publicizing, in that it can give reach to

a differing scope of individuals, and it can target very well for specific

socioeconomics or interests. TV publicizing advancements are not just about the

medium. Rather, TV advertising covers a wide range of media without a moment's

delay. You have sound, video, shading, content, and essentially everything else. In

this way, TV advertising has a more noteworthy limit than radio, paper, and

magazine, to convince your crowd to purchase your item and to buy in to your

administration. They are useful thus they are a smart thought in the event that you

have to make a show of how your item functions in your commercial.

Advertising Promotions in Directories

Barry et al., (2010) signify that, indexes, for example, the Yellow Pages, will list

organizations by their name and classification. Clients, who use directories, normally

have their attentions made up that they need to purchase something; they simply do

not have idea who they are going to get it from.

At the point when an organization goes for online directories, instead of a physical

one, it can stay up with the latest quickly. With a physical registry, an organization

must anticipate for the following version. With online directories, an organization

can alter the items and service that it offers. When the organization intends to utilize

directories, regardless of whether on the web or physical, at that point it ought to

publicize in both (Durand & Cenciarelli, 2005).

Online Advertising Promotions

Zeff and Aronson (1999) emphasize that, the web has demonstrated to be help for

organizations, as it is an incredible, yet financially savvy approach to promote. An

organization can pull in new clients, contact its current clients, and in general,

organization would have the option to interface and connect with a tremendous

crowd from everywhere throughout the world. Numerous clients will look into a

business online before they settle on the choice to purchase any of its items or

service.

22

At the point when an organization plans its site expertly, it will tempt its clients to

have a need to visit its site and to purchase its items. An organization can likewise

advance its site and its business through paid publicizing advancements on different

sites or on web indexes (Ransom & Chuard, 2012).

Relationship between Advertising and Sales Performance

The main intent to advertise is to improve the way that deals are executed in an

organization. Advertising is a picture consisting of processes that are geared towards

relaying information to people about items that are for them (Bird, 2004; and David

et al, 1998). The significance of advertising is to relay data to potential customers

that a certain brand has qualities and advantages that they need (Aaker, Kumar, Day,

2008). Advertising provides clients with information about product that can be

attained by them. This assists the clients in selecting and, making a choice between

different products thus fuelling competition. Competition and rivalry makes the

organizations focus on affordability and quality of their products in order to retain

their customers (Kumar and Gupta, 2016).

Percy (2016) emphasizes that when a company makes a choice to advertise; then the

company has chosen to compete in the market forcefully. This shows the non-

dependence of the supplier on a single sales representative rather the preparedness to

communicate with customers abroad. In this sense, the act of advertising leads to

development and extension of the market as well as an increase in customer

awareness about the product (Shareef et al., 2017).

Andrews and Shimp (2017) view that the market needs and conditions are changing;

along these lines there is requirement for invention in selling. Inventiveness will help

the organization to establish what it intends to deliver to the customers in order to

fulfil the wants/needs of the former. When the organization embarks on producing a

product that arises from the aforementioned process, then there is high response in

consumption of the good compared to when the process is not followed. Peitz and

Valletti (2008) discovered that when a portion of the population is in possession of at

least one of the mass mediums (radios/TV) then advertising leads to attention

23

building in the industry. This tactic helps the organization to acquaint itself with

various individuals. The volume of deals shall increase only when the advertisement

s fulfilling. For advertising to have a straight relationship with sales revenue, the

entire market mix must be perceived by the customer as the right one (Belch &

Belch, 2003). Bagwell (2007) states that organizations advertise so as to compete in

another and forceful manner with in the market, to build their piece of the overall

industry through expanded client base while making use of little effort the minimal

effort method for instructing clients to make choices to buy items

Muhanji and Ngari (2015) have expressed that in a serious society there isn't just

challenge between rival advertisers yet decision between their adversary items and

service. Likewise individuals overlook effectively and subsequently the greatest

advertiser on the planet will get bankrupt effectively in the event that it quits

advertising. Organizations advertise to make nature with or of an item, which assists

with making trust in it. When an item is essentially made accessible, it is critical to

educate individuals regarding its reality.

2.2.3 Advertisement in relation to consumer attitude and behaviors

Client buying behaviour is genuinely constructed from the buyer manner and its way

of thinking. Numerous things consolidate to develop the conduct of any person.

Various issues come together to develop the way of thinking/conduct of any

individual. The main issue that affects the way a person thinks is the lifestyle. A

person’s lifestyle/culture produce the solid impression of the products in the clients’

brains (Hye-Shin Kim, 2008).

Rai (2013) points that a few national and universal brands are thought of and have

solid impressions in the clients’ brains. The way that the individuals see the brands is

rooted in their lifestyle as well as the context/environment in which they live.

Advertising has been shown to have a great impact on the way the clients think of

items. Advertising compels the clients to purchase certain products/services. Buying

behaviour can likewise be developed by item assessment and brand acknowledgment

(Rai, 2013).

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Worldwide, clients are attracted by band and items that identify with their daily

practises. Enthusiastic advertising has been in various researches found to influence

the way of thinking of the clients who in turn partner with the brand. The way that

advertising is used to bring in customers is when it is centred on the mental

perceptions of the customers (Sandra, 2008).

2.3 Empirical review

Adamu (2017) conducted a study on assessment of the effect of advertisement on

sales performance using St. Gorge Brewery in Ethiopia as a case study. The

investigator contended that each firm has its own targets when advertising. These

objectives include: increase market share and sales, and build solid customer

relations. The aim of the study was to decide the impact of promoting on

authoritative execution of quick moving shopper products in the bottling works

industry on account of St. Gorge brewery. The study design employed in this

research was cross sectional with the respondents being the staff of St. George

Brewery from the following branches; advertising, wholesalers, and deals. The

research employed essential information, which was gathered utilizing self-

managed surveys.

The information gathered was investigated utilizing factual bundle for sociologies

and presented in tables. The study arrived at the conclusion that advertisement

helps the organization to impart knowledge to the clients about their items as well

as conveying its brand to the market. The study further discovered that

advertisement of works through the St. George Brewery account has helped the

organization to provide and convey a great picture to the market as well as putting

emphasis upon the purchase of its items improving a bigger picture in the industry,

keep up prevalent sub the business, build up great connection with potential clients

and diminish purchaser discord. The research further showed that promotion assists

St. George Brewery in the formation of benchmarks through identification of

challenges, limit blocks between the organization and customers.

25

Kibona(2015) directed an investigation entitled, the impact of elements of

advertisement on the consumer buying behavior in urban areas: the case from Coca-

cola shoppers in Dar Es Salaam Tanzania. The reason for this examination is to

inspect the connection between board’s promotion, media correspondence ad and

POS materials commercial on one side and Consumer purchasing conduct on the

opposite side and decide the effect of bulletins notice, media correspondence notice

and POS materials ad on Consumer purchasing conduct. For the needy variable,

purchaser changing to Coca-Cola utilization is utilized as a proportion of progress in

customer purchasing conduct and the connection between announcements notice,

media correspondence commercial and POS materials promotion to the buyer

purchasing conduct is explored for an example of 200 Coca-Cola shoppers in Dar-es-

Salaam Tanzania, who needed to tell the notice component that impacted them to

begin utilizing Coca-Cola items, the information were gathered in mid 2014. This

investigation utilized Regression examination to decide the effect of boards ad,

media correspondence notice and POS materials ad on customer changing to Coca-

Cola utilization, taking deals advancement, individual selling and exposure as control

factors.

The outcomes demonstrate that there is a huge positive connection between media

correspondence ad and change in customer purchasing conduct. There is sure

connection between bulletins promotion and change in purchaser purchasing

conduct. There is likewise positive connection between POS materials promotion and

change in buyer conduct. The connection between three control factors deals

advancement, Personal selling and Publicity and change in buyer purchasing conduct

show the normal constructive relationship.

Fatima and Lodhi (2015) led an investigation entitled the “effect of promotion on

purchasing practices of the Consumers.” Researchers show that advancements have

been utilized for quite a while to affect the conduct of the clients. Advertising of

the products is significant in among the customers of helpful things. The elements

aforementioned are a perfect way to influence the conduct of the customers with

regard to purchases of items. This study was conducted among 200 young people

26

of both genders. The study aimed at checking the impact of promotions on their

purchasing behavior Association and backslide examination were used to establish

the association between these components. The findings provided that promotions

are astonishingly a way to provide care to the customers but did not progress into

strong images in the buyers’ brains. Since there is a positive association between

customer care and customer perceptions, hen the two elements may lead the client

to acquire a certain item.

Ayanwale, Alimi and Ayanbimipe (2005) led an examination entitled “the impact

of publicizing on purchaser brand inclination.” The specialists indicated that the

multiplication of arranged brands of nourishment drinks in the nation has led to

increased competition for the expanded industry among the administrators in the

nourishment drink industry.. At the point when competition is high making the

customers find themselves with decisions to make regarding the brands in the

market, the producers are forced to rethink and put in their minds the perceptions of

the clients on their own minds. The images that are obtained are then used in

promotion. The study made use of review of 315 nourishment drinks customers

who were randomly chosen in Lagos, Ile-Ife, Ibadan, which are Southwestern

Nigeria urban communities. The findings showed that the findings showed that

females and males were affected by advertising in their brand preferences. 38.73%

of the purchasers preferred Bournvita among other brands. The main reasons for

the inclination that were uncovered were attractive advertisements, which

accounted for 42.62% and rich quality accounting for 40.16%, a large percentage of

the respondents preferred television advertising.

Onyango, Bwisa and Odhiambo (2017) conducted a study entitled, “advertising and

consumer brand preference for mobile phone services in Kenya.” The researcher

informed that Kenya’s mobile telephony industry has been characterized by cut-

throat competition among the industry players in the last one decade with the

resultant closure or complete sell off of the businesses of some of the mobile phone

service providers to competitors. It is against this background that measuring a

consumer’s brand preference is an important step towards understanding the choice

27

behavior of a consumer. The study’s objective was to establish the influence of

advertising on consumer brand preference for mobile phone services in Kenya.

A descriptive survey design was used, with data collected using a structured and

semi-structured questionnaire. The sampling method used was stratified random

sampling method. The data was collected from mobile phone service subscribers

residing in Nairobi County. Of the 500 questionnaires administered, 387

subscribers responded, giving a response rate of 77.4%. Correlation analysis was

used to establish if there was a relationship between the variables. Regression

analysis was used to test the study’s hypotheses using F and T-tests. The study

showed that there is a significant and positive relationship between advertising and

consumer brand preference for mobile phone services in Kenya. The study

concluded that advertising is a significant factor in influencing consumer brand

preference for a mobile phone service. Marketers in the mobile telecommunication

services industry need to effectively utilize advertising with the aim of creating

awareness and influencing consumers to form positive attitudes towards their

brands.

Olayinka et al., (2015) led an examination on “the effect of promoting on deals

execution.” The major objective of the study was to show evidence of the effect of

publicizing on the deals and benefit of a business association with Nigerian

Breweries Plc as a case. Researchers focused on that, publicizing is any close to

home paid type of non-individual data, which is matched to the purchasers or target

population through different media so as to introduce and advance an item,

administrations and deliberation. Great publicizing requires equipped work force

including various masters to empower it flourish in the ever Changing business

environment.

2.4 Conceptual framework

A conceptual framework is described as the abstract, logical structural of meaning

that guides the development of the study (Imenda, 2014). The framework covers the

28

conceptualized association between variables, under the influence of advertisement

on the success of oil retailing industry as presented in the figure 2.1.

2.4.1 Independent variable

Hayes and Preacher, (2014) define these as variables that do not change but a are

capable of influencing other variables. The independent variables in this conceptual

framework consist of advertisement and its forms.

2.4.2 Dependent variable

Variables that change when influenced by the independent variables are termed as

dependent variables (Henwood, 2014). In this study, the dependent variable is

success of retail in terms sale performance, consumer behavior and brand promotion.

The interrelation between the independent and dependent variables can be clearly

demonstrated on the figure 2.1, whereby advertisement influence the success of retail

by affecting sales performance, consumer behavior and brand promotion. The

researcher will use different type of Likert scales to measure the research variable

whereby the respondents will indicate their response according to the given research

question presented in the research instruments.

29

Figure 2.1Conceptual framework

Independent variables Dependent variable

Source: Researcher design (2020)

2.5 Research Gap

Most of the studies so far conducted in Tanzania and abroad have analyzed the

concept of advertisement in difference context and yet focusing in different

industries such as manufacturing, breweries, and mobile services while none of the

studies have attempted to examine the influence of advertisement while associating

with the oil retailing industry. However there are no empirical studies that have

addressed issues regarding the influence of advertisement on the success of retailing

Advertisement

Success on oil retailing

industry

Sales performance

• Increases the revenue, • Leads to more sales

volume quickly, • Builds long term

profitability • Strengthen relationship

with customers

Consumer behavior

• Consumers’ awareness

• Consumers’ attitude

• Consumers’ decisions

• Consumers’ brand

preference

Brand promotion

• Brand recognition

• Brand awareness

• Brand royalty

• Brand reputation

Forms of advertising promotions

• Newspaper Advertising

Promotions

• Magazine Advertising

Promotions

• Radio Advertising Promotions

• Television Advertising

Promotions

• Advertising Promotions in

Directories

• Online Advertising Promotions

30

while taking a case of oil retailing industry in Tanzania. This reveals that despite the

extensive studies that have been conducted regarding advertisement, yet there is no

evidence on the study that have been conducted in Tanzania, which focused on

addressing the influence of advertisement on the success of oil retailing industry in

Tanzania. Remarkably, there is no research that has systematically explored how

advertisement influence the success of oil retail business in Tanzania by considering

the sales performance, consumer behavior and brand promotion of the specific

company dealing with oil retailing in Tanzania. Therefore, the findings from this

study would fill the research gap in knowledge that exists regarding the influence of

advertisement on the success of oil retailing industry in Tanzania.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

The methodological part of the study is comprised of all methodologies, which in

one way or another had influence on achievement of the study. The methodologies

provided in this chapter include the area of the study, the research design adopted,

the population of the study, sampling techniques, sample size, data collection

methods, validity and reliability as well as data analysis.

3.2 Area of study

Babbie (2013) defines the term as the place where the investigation was carried out.

Data is collected from this location by the researcher. The study was conducted at

MOGAS Tanzania limited in Dar es Salaam. The researcher proposes this study area

because MOGAS Tanzania limited has retail service stations in Tanzania, which

provides top range quality refined oil based commodities, which incorporate

unleaded premium engine soul (Petrol) and diesel car gas oil. As it was also

recommended by Charmers et al. (2014) that the researcher needs to avoid places

that hinder the possibility of acquiring the needed data.

32

3.2.1 Map of the study area

Figure 3.1 Map of the study area

Source: Google map (2020)

33

3.3 Research design

Creswell and Creswell (2017) define these terms as the course of action of conditions

for assortment and investigation of information in a way that means to join

significance to the exploration reason with economy in strategy. . Research

configuration is typically dictated by the idea of the examination issue to set the

general methodology of coordinating various parts in a coherent manner in this

manner guaranteeing that the exploration issue is all around tended to (Bryman and

Bell, 2015).

The study at hand made use of case study design with an intent to look into a

particular problem in depth by examining variables (Krutchwill, 2015). This study

made use of a case study research design due to the following reasons: first, the need

for the researcher to conduct an in-depth look into the topic under study using

MOGAS Tanzania Limited as the case. Second, the researcher intended to control an

extreme broad field of research into one easily researchable case. The researcher

selected this research design because it is convenient for testing whether certain

theories or models were applied to a particular research problem or phenomena.

3.4 Research approach/ strategy

There are two type research strategies that are available to researchers, qualitative

(inductive) and quantitative (deductive). In order to accomplish the intents of the

study, the researcher employed a deductive approach, which involves the testing of

research questions assumed from the adopted theory. The basis for selecting this

research strategy is that the quantitative methodology is proper when gathering

information identified with the recurrence of event of a variable and it gives the

analyst a chance to "clarify connections between variables. However, the researcher

did not opt for inductive research approach since it is subjective in nature and thus

makes it hard to sum up results to a bigger populace where discoveries are frequently

abstract since they depend on the judgment and translation of the specialist.

34

3.5 Population of the Study

It is the whole cluster of people, events, or things that the investigator intends to

investigate (Kraemer & Blasey, 2015). Population can either be a collection of

people or events or, institutions. Therefore the population of this study consists of

100 staff of MOGAS Tanzania limited.

3.6 Sampling unit

Sekaran and Bougie (2016) define a sampling unit as “geographical area such as a

village and at times it may be a social group. The researcher made the decision to

consider MOGAS Tanzania Limited specifically as a sampling unit in this study

before selecting the sample.

3.7 Sampling frame

A sampling frame of this study consists a list of staff of MOGAS Tanzania limited.

The researcher drew its sample of staff by considering their respective working

departments.

3.8 Sample size of the study

The sample size is the number of participants in the research study (Hair et al.,

2015). In order to draw a general snap of the whole population from the findings, the

sample drawn must be of significant size thus the researcher went for using a formula

to calculate the sample size. The sample was drawn based on the argument by

Davies and Hughees (2014) that the sample should be above 30% for the study to be

valid.

Yamane (1967) developed the formula for determining sample size. The study

sample size will be determined by the use of Yameni’s formula whereby the

researcher employs such formula to arrive at a sample size of 80staff. The estimate

procedure is as follows:

35

n = N .

1+N (e) 2

Where: n= sample size to be determined, N = the entire population of interest,

e = the acceptable sampling (0.05), 1 = constant.

Sample size for the staff of MOGAS Tanzania limited

n=?, N = 100, e = 0.05, 1 = constant.

Substituting in the formula we have:

n = 100 .

1+100 (0.05) 2

n = 80 staff

The expected sample to be drawn from the target population is 80 staff.

3.9 Sampling techniques and procedures

3.9.1 Sampling Techniques

Sampling technique is defined as a method adopted for selection of subset of

elements from a larger group of objects (Uprichard, 2013). In this study, the

researcher employed non-probability sampling technique that is described as follows;

3.9.2 Non-probability sampling technique

Msabila and Nalaila (2013) define non-probability sampling technique as

sampling techniques as those which do not give individuals in the population equal

opportunity to be selected in the sample. The methods do not allow random choices

of individuals; they are rather based on selecting individuals based on accessibility or

purposive judgment of the investigator.

36

3.9.2.1 Purposive sampling technique

Etikan, Musa and Alkassim (2016) define purpose-sampling technique as the

sampling technique involving selecting sample respondents by considering their

experience, profession or position. This technique chooses respondents for the study

by not delivering equivalent chance of choice to every respondent in the target

population (Singh & Masuku, 2014). Researcher employed purposive sampling

technique in selecting the sample size of staff of MOGAS Tanzania limited. The

respondents were chosen considering different positions they hold at MOGAS

Tanzania limited.

3.10 Sources of data

The researcher used primary data source.

3.10.1 Primary data sources

These are initial information gathered directly from respondents (Palinkas et al.,

2015). Primary data are obtained directly from the respondents during interview

session, including those data which the researcher collects herself using different

data collection methods including questionnaires.

3.11 Data collection methods

Data collection methods refer to gathering specific information aimed at providing or

refuting some facts (Merriam, & Tisdell, 2015). The researcher used suitable

methods for data collection in accordance to the nature and type needed. The

following methods of data collection were used to gather primary data.

3.11.1 Questionnaire

This is a set of questions printed/typed in a definite order on a form/set of forms is

termed as a questionnaire (Moser & Kalton, 2017). A list of questions was designed

by the researcher in order to obtain more data. The researcher used this method to

complement the weakness of the rest of data collection instruments including

observation and interviews. By using questionnaires more data to be collected can be

from approximately a large sample. The questionnaires were distributed directly to

37

the staff of MOGAS Tanzania limited selected as a study sample. This method helps

to avoid bias and ensure the collection of valid and accurate data.

3.11.2 Interview

The researcher used an interview guide to collect primary data from senior staff of

MOGAS Tanzania limited where the guide was composed of several questions

aiming at digging in detail the relevant information. The researcher opted for this

method, which was composed of literate respondents from the given population.

3.12 Reliability and validity of data

3.12.1 Reliability

The researcher focused on the right source of information to ensure reliability of

data. Through this the methodology produced results, which was consistent.

Reliability is about if the outcome from an examination can be the equivalent if the

exploration was to be directed once more, most definitely. The aim of the analysis

was to guarantee that if a last analyst was to follow the very same methodology as

portrayed by a past specialist and led a similar overview study, once more, the last

analyst needs to obtain comparative results (Yin, 2017).

3.12.2 Validity

Validity decides if the analyst really quantifies what was proposed to quantify or how

honest the examination results were (Darawsheh, 2014; Crawford, 2014). Due to the

importance of data validity the researcher ensured that the data were collected using

a well-designed data-collecting instrument. To the best of his knowledge the

researcher prepared a well-structured questionnaire, which enabled to capture

important and relevant information to be subjected to analysis at a later stage.

The instrument used enabled the researcher to perform her study as planned and

come up with valid results.

38

3.13 Analysis and management of data

Before data analysis the researcher systematically reviewed, filtered, and removed

the collected data which, if left as they were they might mislead the entire results or

make them meaningless. This activity was done during the process of collecting data

and after data collection.

Data processing involved a set of activities such as data sorting and cleaning,

categorizing, data coding and transferring coded data to tabulations. The analysis of

data was conducted through the use of both quantitative and qualitative data analysis

techniques.

3.13.1 Data management

The researcher prepared a codebook describing the specific details from the

questionnaires in order to make the process accurate. Data management was done

during the process of data analysis in order guarantee the researcher that a significant

percentage of the collected information from respondents is useful. Also it was done

after collecting data so as to thoroughly check the unsubtle data, which were

accidentally collected, and the researcher did not notice during the process. The

whole process ensured that the remaining data guaranteed meaningful, accurate and

reliable results.

3.13.2 Data analysis

Examining, making deductions and inferences from the data collected through

surveys is termed as data analysis (Ott & Longnecker, 2015). The analysis varies

with the purpose of research, complexity of research design and the extent to which

conclusions can be reached easily (Neuendorf, 2016). In this study data collected was

analyzed both qualitatively and quantitatively.

3.13.3 Data analysis techniques

Statistical Package for Social Scientist (SPSS) Software Version 19 was employed to

analyze the data whereby correlation analysis technique was used. The researchers

39

employed correlation analysis technique since it measures the strength of association

between two variables and the direction of the relationship.

3.13.4 Qualitative data analysis

Qualitative data analysis was employed in this study, whereby the researcher

employed a subjective information investigation, which includes the distinguishing

proof, assessment, and understanding of examples and topics in printed information

and decides how these examples and topics help answer the exploration inquiries

within reach. The researcher employed interview method as a qualitative data

collection method, which involved asking questions to respondents, listening to and

recording answers from an individual on a structured format and in an in depth

manner.

3.14 Ethical considerations

In consideration the value of being ethical, the researcher received research

clearance from Mzumbe University, whereby the introduction letter from the

researcher, which clarified the intent, was given prior to field visit.

The researcher obtained an introductory letter from the University explaining in a

clear language the intent of the study to be academic and not otherwise.

40

CHAPTER FOUR

FINDINGS PRESENTATION

4.1 Introduction

This chapter extrapolates data collected during the study in relation to research

questions and objectives. The study focused on exploring the influence of

advertisement on the success of oil retailing industry in Tanzania. It is separated into

two main sections, Section one concentrate on the introduction. Section two centered

on demographic and background characteristics of the respondents.

A total of 80 questionnaires were administered to respondents belonging from

different departments, and 4 responses of interview guide questions from the head of

departments were obtained.

4.2 Demographic characteristics of respondents

The data obtained on this part serve to show the nature of the respondents in the

study. The nature of the respondents is presented in terms of respondents, age of the

respondents and the working experience of the respondents.

4.2.1 Gender status of respondents

Total of (80) respondents filled the questionnaires, where as 44 respondents were

males and 36 respondents were females. This indicates that 55% of the respondents

were males while the rest 45% of the respondents were females. The result of the

study suggests that gender of respondents also as helped to provide variety of

thoughts. This is graphically represented in the Figure 4.1 as follows;

41

Source: Field data (2020)

Figure 4.1: Gender status of the respondents

4.2.2 Age of respondents

Based on the returned questionnaires, the study indicated that 18 respondents that

represent 22% of the total number of the respondents were aged between 25 to 35

years, while 47 respondents that represent 59% of the total number of the respondent

were aged between 36 to 45 years whereas 15 respondents that represent 19% of the

total respondents were aged between 46 and above. This is graphically represented in

the Figure 4.2 as follows;

42

Source: Field data (2020)

Figure 4.2: Age of the respondents

4.2.3 Working experience of the respondents

Based on the returned questionnaires, the study indicates that 32 respondents that

represent 40% of the total number of the respondents had a working experience of

below 5 years, while 22 respondents that represent 27% of the total number of the

respondents had a working experience of between 6 to 10 years, whereas 18

respondents that represent 23% of the total number of the respondents had a working

experience of between 11 to 15 years and 8 respondents that represent 10% of the

total number of the respondents had a working experience of between 16 years and

above 10. This is graphically represented in the Figure 4.3 as follows;

Source: Field data (2020)

Figure 4.3 Working experiences of the respondents

43

CHAPTER FIVE

FINDINGS DISCUSSION

5.1 Introduction

This chapter discusses on the influence of advertisement on the success of oil

retailing industry in Tanzania. It is separated into five main sections, which focus on

addressing the general and specific research objectives. Section one concentrate on

the introduction. Section two intends to examine on the response on the forms of

advertising promotion adopted by MOGAS Tanzania limited, Section three intends

to examine the extent in which advertisement relates with the sales performance at

MOGAS Tanzania limited, whereas section four intends to examine the extent in

which advertisement relates with the consumer behavior at MOGAS Tanzania

limited, while section five intends to examine the extent in which advertisement

relates with promotion of the brand of MOGAS Tanzania limited.

5.2 Response on the forms of advertising promotion adopted by MOGAS

Tanzania limited

The researcher sought to examine the forms of advertising promotion adopted by

MOGAS Tanzania limited more frequently. Among the forms of advertising

promotion identified include Newspaper Advertising Promotions, Magazine

Advertising Promotions, Radio Advertising Promotions, Television Advertising

Promotions, Advertising Promotions in Directories and Online Advertising

Promotions. The findings of the study indicates that 8 respondents that represent 10%

of the total number of the respondents confirmed that Newspaper advertising

promotion was adopted by Mogas Tanzania Limited, 6 respondents that represent 7%

of the total number of the respondents confirmed that Magazine advertising

promotion was adopted by Mogas Tanzania Limited, 20 respondents that represent

25% of the total number of the respondents confirmed that Radio advertising

promotion was adopted by Mogas Tanzania Limited, 12 respondents that represent

15% of the total number of the respondents confirmed that Television advertising

promotion was adopted by Mogas Tanzania Limited, whereas 2 respondents that

represent 3% of the total number of the respondents confirmed that Advertising

44

Promotions in Directories was adopted by Mogas Tanzania Limited, while 32

respondents that represent 40% of the total number of the respondents confirmed that

Online Advertising Promotions was adopted by Mogas Tanzania Limited. These

results are being graphically represented in the Figure 4.4 as follows;

Source: Field data (2020)

Figure 4.4 Forms of advertising promotion adopted by MOGAS Tanzania

limited

5.3 The extent to which advertisement relates with the sales performance at

MOGAS Tanzania limited

The study intended to look into association between advertisement and sales

performance at MOGAS Tanzania limited. The descriptive analysis were conducted

whereby the descriptive statistic results as indicated in the Table 4.1 were obtained

while showing the list of variables including “increases the revenue, leads to more

sales volume quickly, builds long term profitability and strengthen relationship with

customers” as variables showing the existing association between advertisement and

sales performance at MOGAS Tanzania limited.

45

Table 4.1 Descriptive statistics

N Sum Mean Std. Deviation

Statistic Statistic Statistic Std. Error Statistic

Increases the revenue 80 377.00 4.7125 .06702 .59945

Leads to more sales

volume quickly 80 383.00 4.7875 .05817 .52032

Builds long term

profitability 80 377.00 4.7125 .06462 .57794

Strengthen relationship

with customers 80 370.00 4.6250 .07415 .66323

Valid N (listwise) 80

Source: Field data (2020)

The descriptive results in the table 4.1 indicate the description/comparison of means

and whereby variable indicates “leads to more sales volume quickly” was little over

greater on average than the indicates “increases the revenue, builds long term

profitability and strengthen relationship with customers”. The variable indicates

“leads to more sales volume quickly” was having an average of 4.7875, the variable

indicates “Increases the revenue” variable was having an average of 4.7125, the

variable indicates “Builds long term profitability” was having an average of 4.7125,

while the variable indicates “Strengthens relationship with customers was having an

average 4.6250.

While in the description/comparison of standard deviation the results indicate the

variable marks “Strengthen relationship with customers” had a standard deviation of

0.66323, the variable marks “increase the revenue” had a standard deviation of

0.59945, the variable marks “Builds long term profitability” had a standard deviation

of 0.52032 while the variable marks “Leads to more sales volume quickly” had a

standard deviation of 0.57794. Therefore the variable marks “Strengthen relationship

with customers” indicates that is having a higher standard deviation compared to the

rest of variables, these results entail that the variable marks “Strengthen relationship

with customers” is more spread out or dispersed than the variable marks “increases

the revenue, leads to more sales volume quickly, and builds long term profitability.

46

Correlation analysis

In the line of the result obtained by the descriptive analysis, the researcher also aimed

to scrutinize the association between advertisement and sales performance at

MOGAS Tanzania limited through the application correlation analysis technique.

The correlation analysis was conducted whereby the results as indicated in the Table

4.2 were obtained while showing how each variable correlate with the advertisement

while checking whether such relationship is either positive correlation, negative

correlation or no correlation between variables representing sales performance at

MOGAS Tanzania limited such as “increases the revenue, leads to more sales

volume quickly, builds long term profitability and strengthen relationship with

customers”.

Table 4.2 Correlations

Increases

the

revenue

Leads to more

sales volume

quickly

Builds long

term

profitability

Strengthen

relationship with

customers

Increases the revenue

Pearson

Correlation

1

.897**

.928**

.872**

Sig. (1-tailed) .000 .000 .000

N 80 80 80 80

Leads to more sales

volume quickly

Pearson

Correlation

.897**

1

.889**

.830**

Sig. (1-tailed) .000 .000 .000

N 80 80 80 80

Builds long term

profitability

Pearson

Correlation

.928** .889** 1 .904**

Sig. (1-tailed) .000 .000 .000

N 80 80 80 80

Strengthen

relationship with

customers

Pearson

Correlation

.872** .830** .904** 1

Sig. (1-tailed) .000 .000 .000

N 80 80 80 80

N 80 80 80 80

47

**. Correlation is significant at the 0.01 level (2-tailed).

The results were presented in a matrix such that, the correlations were replicated to

determine the Pearson correlation coefficient, its significance value and the sample

size that the calculation was based on. This result revealed that the Pearson

correlation coefficient, r =0.897, r=0.928 and r=0.872, and that is statistically

significant (p=0.000).

Discussion of the Pearson correlation results

A Pearson correlation was run to determine the relationship among the variable

denotes “leads to more sales volume quickly, builds long term profitability and

strengthen relationship with customers” were statistically significant (r =0.897,

r=0.928 and r=0.872, p=0.000). Therefore based on the findings obtained it can

concluded that the variable “increases the revenue, leads to more sales volume

quickly, builds long term profitability and strengthen relationship with customers”

were having statistically significant linear relationship (p=0.000). It can also be

concluded that the direction of the relationship among the identified variables

“increases the revenue, leads to more sales volume quickly, builds long term

profitability and strengthen relationship with customers” implying that these

variables tend to result together when advertisement influences the sales performance

of MOGAS Tanzania limited.

Therefore the magnitude or strength of the association/relationship is absolute strong.

In the line of the findings of study obtained, consistent result was obtained by

Aduloju, Odugbesan, and Oke (2009) stress that promotion in often cases leads to the

creation for the need for products/services thus leading to an increase in sales. To

establish a linear association between advertising and sales/revenue the buyer must

perceive the market mix as the right one Alongside the given result, Lewis and

Reiley (2008) observe that there is an association between advertising and sales since

the former helps in creating new markets and creating awareness and acceptance

about an item in the mind of the buyer.. The coefficient of the above correlation

analysis, which is (r =0.897) shows that there is positive correlation between

48

advertisement and sales performance at MOGAS Tanzania limited in terms of leads

to more sales volume quickly. This means that changes in advertisement will

correlate with changes on the sales performance of MOGAS Tanzania limited in

terms of Leads to more sales volume quickly, whereas the coefficient r=0.928 shows

that there is positive correlation between advertisement and the sales performance of

MOGAS Tanzania limited in terms of building long term profitability. This means

that changes in advertisement will correlate with changes on the sales performance of

MOGAS Tanzania limited in terms of building long term profitability, while the

coefficient r=0.872 shows that there is positive correlation between advertisement

and sales performance of MOGAS Tanzania limited in terms of Strengthen

relationship with customers. This means that changes in advertisement will correlate

with changes on the sales performance of MOGAS Tanzania limited in terms of

Strengthen relationship with customers.

Therefore it can be concluded that advertisement and sales performance of MOGAS

Tanzania limited are strongly correlated in terms of increases the revenue, leads to

more sales volume quickly, builds long term profitability and strengthens

relationship with customers. In addition, with regards to Sig (2-Tailed), conclusion

can be drawn that there is statistically significant correlation between advertisement

and sales performance of MOGAS Tanzania limited. In the line of the obtaining

study findings, the researcher sought to determine the extent in which advertisement

has enhanced sales of oil products at MOGAS Tanzania limited, whereby the

question was asked by way of interview method. This question was addressed by the

marketing manager of MOGAS Tanzania limited as indicated in the Box 1 below;

Box 1

Response: “From my working experience, I have observed that advertisement

influences the sales performance as it leads to the customers buying our products and

thus increasing the volume of sales and consequently profit is increased.”

customers.”

49

In connection to the response obtaining in the Box 1, the researcher sought to

determine the reasons as to why does MOGAS Tanzania limited needs to advertise

its products, whereby the question was asked by way of interview method. This

question was addressed by the marketing manager as indicated in the Box 2 below;

5.4 The extent to which advertisement relates with consumers’ behavior at

MOGAS Tanzania limited

The researcher sought to examine the extent in which advertisement relates with

consumers’ behavior at MOGAS Tanzania limited. The descriptive analysis were

conducted whereby the descriptive statistic results as indicated in the Table 4.3 were

obtained while showing the list of variables including “reinforces consumers’

decisions, increase of customers satisfaction, reinforces consumers’ attitude and

enhance consumers’ awareness” as variables showing the existing association

between advertisement and consumer behavior at MOGAS Tanzania limited.

Box 2

Response: “The reasons why our company needs to advertise its product is due

to the fact that, advertising enables to create awareness of the product or

services such as brand name and priceGiven the current business environment,

we strive to make sure the customers remain with our image at te top of their

minds.”

50

Table 4.3 Descriptive statistics

Source: Field data (2020)

The descriptive results in the table 4.3 indicate the description/comparison of means

and whereby the variable denotes “Reinforces consumers’ decisions” was little over

greater on average than Increase of customers satisfaction, enhance consumers’

awareness and reinforces consumers’ attitude. The variable denotes “Enhance

consumers’ awareness” was having an average of 4.8875, the variable denotes

“Reinforces consumers’ decisions” was having an average of 4.8250, the variable

denotes Reinforces consumers’ attitude was having an average of 4.7875, and while

the variable denotes “Increase of customers satisfaction” was having an average

4.5750.

While in the description/comparison of standard deviation the results indicate that

“Increase of customers satisfaction variable' had a standard deviation of 0.61160,

market penetration as a variable had a standard deviation of 0.41166 whereas

‘reinforces consumers’ decisions’ as a variable had a standard deviation of 0.38236

while ‘enhance consumers’ awareness variable had a standard deviation of 0.31797.

Therefore the variable denotes “Increase of customers satisfaction variable data is

having a higher standard deviation compared to the rest of variables, these results

entail that the “Increase of customers satisfaction” variable data is more spread out or

N Sum Mean Std. Deviation

Statistic Statistic Statistic Std. Error Statistic

Reinforces consumers’

decisions 80 386.00 4.8250 .04275 .38236

Increase of customers

satisfaction 80 366.00 4.5750 .06838 .61160

Reinforces consumers’

attitude 80 383.00 4.7875 .04602 .41166

Enhance consumers’

awareness 80 391.00 4.8875 .03555 .31797

Valid N (listwise) 80

51

dispersed than “reinforces consumers’ decisions, reinforces consumers’ attitude and

enhance consumers’ awareness”.

Correlation analysis

In the line of the result obtained by the descriptive analysis, the researcher also

sought to examine the relationship between advertisement and consumers’ behavior

at MOGAS Tanzania limited through the application correlation analysis technique.

The correlation analysis was conducted whereby the results as indicated in the Table

4.4 were obtained while showing how each variable correlate with the advertisement

while checking whether such relationship is either positive correlation, negative

correlation or no correlation between variables representing consumers’ behavior at

MOGAS Tanzania limited such as “reinforces consumers’ decisions, increase of

customers satisfaction, reinforces consumers’ attitude and enhance consumers’

awareness”.

The results were presented in a matrix such that, the correlations were replicated to

determine the Pearson correlation coefficient, its significance value and the sample

size that the calculation was based on. This result revealed that the Pearson

correlation coefficient, r =0.706, r=0.887 and r=0.773, and that is statistically

significant (p=0.000).

Discussion of the Pearson correlation results

A Pearson correlation was run to determine the relationship among “reinforces

consumers’ decisions, increase of customers satisfaction, reinforces consumers’

attitude and enhance consumers’ awareness” were statistically significant (r =0.706,

r=0.887 and r=0.773, p=0.000). Therefore based on the results obtained it can

concluded that “reinforces consumers’ decisions, increase of customers satisfaction,

reinforces consumers’ attitude and enhance consumers’ awareness” had statistically

significant linear relationship (p=0.000). It can also be concluded that the direction of

the relationship among the identified variables “reinforces consumers’ decisions,

increase of customers satisfaction, reinforces consumers’ attitude and enhance

consumers’ awareness” implying that these variables tend to result together when

52

advertisement influences consumer behavior at MOGAS Tanzania limited. Therefore

the magnitude or strength of the association/relationship is absolute strong.

In the line the findings obtained, consistent result was obtained in the study Nartey

(2010) further revealed that advertisement plays an important role in modern era as it

shapes the attitudes and perceptions of individuals and society, which strikingly

influences the customer buying behavior.

The coefficient of the above correlation analysis, which is (r =0.706) shows that there

is positive correlation between advertisement and consumers’ behavior at MOGAS

Tanzania limited in terms of the increase of customers’ satisfaction.

This means that changes in advertisement will correlate with changes of consumers’

behavior at MOGAS Tanzania limited in terms of increase of customers’ satisfaction,

whereas the coefficient r=0.887 shows that there is positive correlation between

advertisement and consumers’ behavior in terms of reinforces consumers’ attitude.

This means that changes in advertisement will correlate with changes on the

consumers’ behavior at MOGAS Tanzania limited in terms of Reinforces consumers’

attitude, while the coefficient r=0.773 shows that there is positive correlation

between advertisement and consumers’ behavior at MOGAS Tanzania limited in

terms of customer satisfaction. This means that changes in advertisement will

correlate with changes on the changes of consumers’ behavior at MOGAS Tanzania

limited in terms of customer satisfaction.

Therefore it can be concluded that advertisement and consumers’ behavior at

MOGAS Tanzania limited are strongly correlated in term of reinforces consumers’

decisions, increase of customers satisfaction, reinforces consumers’ attitude and

enhance consumers’ awareness. In addition, with regards to Sig (2-Tailed),

conclusion can be drawn that there is statistically significant correlation between

advertisement and consumers’ behavior at MOGAS Tanzania limited.

53

In the line of the obtaining study findings, the researcher also sought to determine

how efficient does advertisement affect the consumer’s behavior whereby the

question was asked by way of interview method. This question was addressed by the

marketing senior officer of MOGAS as indicated in the Box 3 below;

5.5 The extent to which advertisement relates with the promotion of the

brand of MOGAS Tanzania limited

The researcher sought to examine the extent in which advertisement relates with the

promotion of the brand of MOGAS Tanzania limited. The descriptive analysis were

conducted whereby the descriptive statistic results as indicated in the Table 4.5 were

obtained while showing the list of variables including “Builds brand recognition,

Enhance brand awareness, Advance brand loyalty and Develop brand reputation” as

variables showing the existing association between advertisement and promotion of

the brand of MOGAS Tanzania limited.

Box 3

Response: “Nowadays, advertisement is considered as one of the most message

medium to influence buying habit of the consumer, Alongside, I consider that an

efficiently advertisement can help any business to get on the road of success when it

attracts and retains the consumers with profit and this goal is achieved when company

builds a strong consumer perception for its product or service.”

54

Table 4.5 Descriptive statistics

N Sum Mean Std. Deviation

Statistic Statistic Statistic Std. Error Statistic

Builds brand recognition 80 366.00 4.5750 .09869 .88267

Enhance brand awareness 80 367.00 4.5875 .08092 .72380

Advance brand loyalty 80 376.00 4.7000 .06264 .56029

Develop brand reputation 80 370.00 4.6250 .06975 .62389

Valid N (listwise) 80

Source: Field data (2020)

The descriptive results in the table 4.5 indicate the description/comparison of means

and whereby “Advance brand loyalty” as a variable was little over greater on average

than “Builds brand recognition, Enhance brand awareness and Develop brand

reputation”. Advance brand loyalty as a variable was having an average of 4.7000,

“Develop brand reputation” as a variable was having an average of 4.6250, “Enhance

brand awareness” was having an average of 4.5875, and while “Builds brand

recognition” variable was having an average 4.5750.

While in the description/comparison of standard deviation the results indicate that

‘Builds brand recognition’ had a standard deviation of 0.88267, ‘Enhance brand

awareness’ as a variable had a standard deviation of 0.72380 whereas ‘Advance

brand loyalty’ as a variable had a standard deviation of 0.56029 while ‘Develop

brand reputation’ variable had a standard deviation of 0.62389. Therefore ‘Builds

brand recognition’ as variable data having a higher standard deviation compared to

the rest of variables, these results entail that the ‘Builds brand recognition’ variable

data is more spread out or dispersed than “Enhance brand awareness, Advance brand

loyalty and Develop brand reputation”.

Correlation analysis

In the line of the result obtained by the descriptive analysis, the researcher also

sought to examine the extent in which advertisement relates with the promotion of

the brand of MOGAS Tanzania limited through the application of correlation

55

analysis technique. The correlation analysis was conducted whereby the results as

indicated in the Table 4.6 were obtained while showing how each variable correlate

with the advertisement while checking whether such relationship is either positive

correlation, negative correlation or no correlation between variables representing the

promotion of the brand of MOGAS Tanzania limited such as Builds brand

recognition, Enhance brand awareness, Advance brand loyalty and Develop brand

reputation.

Table 4.6 Correlations

Builds brand

recognition

Enhance brand

awareness

Advance brand

loyalty

Develop brand

reputation

Builds brand recognition

Pearson

Correlation 1 .911** .916** .856**

Sig. (2-tailed) .000 .000 .000

Enhance brand awareness

Pearson

Correlation .911** 1 .908** .915**

Sig. (2-tailed) .000 .000 .000

Advance brand loyalty

Pearson

Correlation

.916** .908** 1 .905**

Sig. (2-tailed) .000 .000 .000

Develop brand reputation

Pearson

Correlation .856** .915** .905** 1

Sig. (2-tailed) .000 .000 .000

**. Correlation is significant at the 0.01 level (2-tailed).

The results were presented in a matrix such that, the correlations were replicated to

determine the Pearson correlation coefficient, its significance value and the sample

size that the calculation was based on. This result revealed that the Pearson

correlation coefficient, r =0.911, r=0.916 and r=0.856, and that is statistically

significant (p=0.000).

Discussion of the Pearson correlation results

56

A Pearson correlation was run to determine the relationship among “Builds brand

recognition, Enhance brand awareness, Advance brand loyalty and Develop brand

reputation” were statistically significant (r =0.911, r=0.916 and r=0.856,p=0.000).

Therefore based on the results obtained it can concluded that “Builds brand

recognition, Enhance brand awareness, Advance brand loyalty and Develop brand

reputation” are statistically significant linear relationship (p=0.000). It can also be

concluded that the direction of the relationship among the identified variables (Builds

brand recognition, Enhance brand awareness, Advance brand loyalty and Develop

brand reputation) implying that these variables tend to result together when

advertisement relates with the promotion of the brand of MOGAS Tanzania limited.

Therefore the magnitude or strength of the association/relationship is absolute strong.

In the line of the given findings, the consistent findings were obtained in the study by

Muthaly (2011) who found that brand commitment is built through advertising.

Commitment to brand leads to repetitive purchase of items by the current buyers. It

was further emphasized by Maity and Gupta (2016) that a number of factors such as

promotions, efficient individual selling, and direct marketing help to build brand

commitment. However, inconsistent results was obtain in the study by Fatima and

Lodhi (2015) by confirming that despite the fact that advertising leads to creation of

consciousness among the customers, it has failed to build strong views in the brains

of the buyers.

The coefficient of the above correlation analysis, which is (r =0.911) shows that there

is positive correlation between advertisement and the promotion of the brand of

MOGAS Tanzania limited in terms of ‘Enhance brand awareness’. This means that

changes in advertisement will correlate with changes on the promotion of the brand

of MOGAS Tanzania limited in terms of ‘Enhance brand awareness’, whereas the

coefficient r=0.916 shows that there is positive correlation between advertisement

and the promotion of the brand of MOGAS Tanzania limited in terms of ‘Advance

brand loyalty’. This means that changes in advertisement will correlate with changes

on the promotion of the brand of MOGAS Tanzania limited in terms of ‘Advance

brand loyalty’, while the coefficient r=0.856 shows that there is positive correlation

57

between advertisement and the promotion of the brand of MOGAS Tanzania limited

in terms of ‘Develop brand reputation’. This means that changes in advertisement

will correlate with changes on the promotion of the brand of MOGAS Tanzania

limited in terms of ‘Develop brand reputation’.

Therefore it can be concluded that advertisement and the promotion of the brand of

MOGAS Tanzania limited are strongly correlated in term of Builds brand

recognition, Enhance brand awareness, Advance brand loyalty and Develop brand

reputation. In addition, with regards to Sig (2-Tailed), conclusion can be drawn that

there is statistically significant correlation between advertisement and the promotion

of the brand of MOGAS Tanzania limited.

In the line of the obtaining study findings, the researcher also sought to determine

how advertisement contributes significantly in promoting the brand of MOGAS

Tanzania limited, whereby the question was asked by way of interview method. This

question was addressed by the marketing manager as indicated in the Box 4 below;

Box 4

Response: “With my professional experience in oil industry, advertising helps to

develop brand loyalty. Brand loyalty results in repeat purchases and favorable

recommendations to others by existing customers. On the other hand advertisement

contributes significantly in developing a good image our brand in the minds of target

audience.”

58

CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction

This section presents a summary, conclusion and recommendations on the influence

of advertisement on the success of oil retailing industry in Tanzania taking MOGAS

Tanzania limited as a case study while based on the findings discussed in the

previous chapter.

6.2 Summary of the findings based on the research questions

6.2.1 Summary of the findings based extent in which advertisement relates

with the sales performance at MOGAS Tanzania limited

Based on the findings of the study, it can be summarized that the direction of the

relationship among the identified variables (increases the revenue, leads to more

sales volume quickly, builds long term profitability and strengthen relationship with

customers) implying that these variables tend to result together in representing the

magnitude of sales performance at MOGAS Tanzania limited. Therefore the

magnitude or strength of the association/relationship between advertisement and

sales performance at MOGAS Tanzania limited is absolute strong.

6.2.2 Summary of the findings based on the extent in which advertisement

relates with consumers’ behavior at MOGAS Tanzania limited

Based on the findings of the study as analyzed by descriptive analysis and correlation

analysis, it can be summarized that the direction of the relationship among the

identified variables “reinforces consumers’ decisions, increase of customers

satisfaction, reinforces consumers’ attitude and enhance consumers’ awareness” are

positive correlated implying that these variables tend to result together in

representing the magnitude of consumers’ behavior at MOGAS Tanzania limited.

Therefore the magnitude or strength of the association/relationship between

advertisement and consumers’ behavior at MOGAS Tanzania limited is absolute

strong.

59

6.2.3 Summary of the findings based on the extent in which advertisement

relates with the promotion of the brand of MOGAS Tanzania limited

Based on the findings of the study as analyzed by descriptive analysis and correlation

analysis, it can be summarized that the direction of the relationship among the

identified variables “Builds brand recognition, Enhance brand awareness, Advance

brand loyalty and Develop brand reputation” are positive correlated, implying that

these variables tend to result together in representing the magnitude of the promotion

of the brand of MOGAS Tanzania limited.Therefore the magnitude or strength of the

association/relationship between advertisement and the promotion of the brand of

MOGAS Tanzania limited is absolute strong.

6.3 Conclusion of the study

This section has condensed the study findings summarized and discussed from the

previous chapter respectively. The findings of the study were generally compared to

the earlier studies whereby consistency and inconsistency were acknowledged.

Future research opportunities and suggestions were discovered and argued with

respect to the findings of the study.

The study concluded that the direction relationship among the identified variables

“increases the revenue, leads to more sales volume quickly, builds long term

profitability and strengthen relationship with customers” are positive correlated in

representing the relationship between advertisement and sales performance at

MOGAS Tanzania limited. These results imply that there is a strong relationship

between advertisement and sales performance at MOGAS Tanzania limited.

The study concluded that the direction of the relationship among the identified

variables “reinforces consumers’ decisions, increase of customers satisfaction,

reinforces consumers’ attitude and enhance consumers’ awareness” are positive

correlated implying that these variables tend to result together in representing the

magnitude of consumers’ behavior at MOGAS Tanzania limited. Therefore the

magnitude or strength of the association/relationship between advertisement and

consumers’ behavior at MOGAS Tanzania limited is absolute strong.

60

The study concluded that the direction of the relationship among the identified

variables “Builds brand recognition, Enhance brand awareness, Advance brand

loyalty and Develop brand reputation” are positive correlated, implying that these

variables tend to result together in representing the magnitude of the promotion of

the brand of MOGAS Tanzania limited. Therefore the magnitude or strength of the

association/relationship between advertisement and the promotion of the brand of

MOGAS Tanzania limited is absolute strong.

6.4 Recommendations of the study

In the light of the summary of the findings of this study and the conclusion above,

the following are the recommendations drained from the study, which are put

forward with the view of the influence of advertisement on the success of oil

retailing industry in Tanzania taking MOGAS Tanzania limited. Among the efforts

that MOGAS Tanzania limited needs to consider in recognizing the influence of

advertisement on its business success in oil retailing industry in Tanzania include the

following;

6.4.1 Recommendations to the management of MOGAS Tanzania limited

By considering the findings of the study, it is recommended to the management of

MOGAS Tanzania limited that since there is significant relationship between

advertisement and sales performance, consumers’ behavior and with the promotion

of brand for MOGAS Tanzania limited then management of MOGAS Tanzania

limited needs to ensure that the influence of advertisement on the success of oil

retailing industry in Tanzania is being acknowledged.

MOGAS Tanzania limited should use other forms of adverting like sponsoring

events and use of mobile phone advertising. This will increase awareness about the

various products offered by the given company.

MOGAS Tanzania limited should choose the most effective media for advertising. A

media that is affordable by many people for example radios. MOGAS Tanzania

limited should use different common local languages used in the country so that

every individual can get the messages from the adverts.

61

E-marketing should also be used to reach most the people who spend time on the

internet and have no timer to listen to radios or watch televisions.

In view of the relationship existing between advertisement and sales performance of

MOGAS Tanzania limited, the study recommends to the MOGAS Tanzania limited

to understand that a well-advertised product is easier to be sold by the salesman in

the market. If a brand is popular and well-known, people respond favorably to the

salesman’s efforts. It provides a support to salesmanship, as the audience understands

the product and its uses more clearly through the advertisement and the salesman’s

effort is reduced to convince the buyers.

6.4.2 Recommendation for policy makers

Since the findings of this study would enlighten the policy makers in the oil industry

on regarding the influence of advertisement on the success of oil retail business;

therefore the policy maker needs to consider the results for this study in designing

appropriate policy for the adoption of advertisement by the companies dealing with

oil products business in Tanzania.

6.4.3 Recommendations for further research

This research study provides an opportunity for further research as they have been

identified from the presented and discussed research findings. However the

limitations of this study create a number of opportunities for further research

whereby the following areas for further research were discovered;

The researcher recommends that, since the study is the case study considering the

nature of scope and limited to only one company in oil industry in Tanzania, thus

MOGAS Tanzania limited, however the findings of the study will not be necessarily

applicable to the rest of the oil companies in Tanzania. Therefore more studies

should be conducted on the subject matter while taking a case of different oil

companies in order to compare/contrast if the findings obtained pertaining the same

study topic will be either consistent or inconsistent.

62

In addition to the given areas for further research, the researcher also suggests that

another study need to be conducted while focusing on exploring the effect of

advertisement on the consumer’s preference.

63

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APPENDICES

Appendix (i) Research questionnaire

Research questionnaires for the staff of MOGAS Tanzania limited

Dear respondent,

My name is Irene Kilahama a masters student with from Mzumbe University (Dar

es Salaam Campus) conducting an academic research on the “The Influence Of

Advertisement on the Success of Oil Retailing Industry in Tanzania: A Case

Study Of MOGAS Tanzania Limited”. This research is done in partial fulfillment

for the award of a Master of Business Administration in Corporate Management

(MBA-CM).

PLEASE NOTE: Your name should not appear anywhere in this document

Instructions on how to complete this form:

Where there is box in any question below, please choose the correct answer. Where

there are blanks, please fill in the blanks.

PART A: DEMOGRAPHIC INFORMATION

1. Your Gender;

a) Male.

b) Female.

2. Your Age;

a) 25-35.

b) 36-45.

c) 46 and above.

74

3. How long have you been working at Mogas Tanzania Limited?

a) Below 5 years.

b) 6- 10 years.

c) 11 -15 years.

d) 16 years and above.

PART B: Forms and types of advertising promotion adopted by MOGAS

Tanzania limited

4. Among the forms of advertising promotion indicated in the table below, which

form of advertising promotion is mostly used by MOGAS Tanzania Limited?

No. Forms of advertising promotions Tick ( )

1. Newspaper Advertising Promotions

2. Magazine Advertising Promotions

3. Radio Advertising Promotions

4. Television Advertising Promotions

5. Advertising Promotions in Directories

6. Online Advertising Promotions

75

PART C: The extent advertisement affects the sales performance at MOGAS

Tanzania limited

5. In what extent advertisement affects the sales performance at MOGAS Tanzania

limited

PART D: The extent in which advertisement relates with consumer behavior at

MOGAS Tanzania limited

6. Please show to what extent in which advertisement relates with consumer behavior

at MOGAS Tanzania limited

S/N Very

Large

Extent (5)

Large

Extent

(4)

Small

Extent

(3)

Very

Small

Extent (2)

No Extent

(1)

1. Leads to more sales volume

quickly

2. I Increases the revenue

3. Builds long term profitability

4. Strengthen relationship with

customers

S/N Very

Large

Extent (5)

Large

Extent

(4)

Small

Extent (3)

Very Small

Extent (2)

No

Extent

(1)

1. Increase of customers

satisfaction

2. Enhance consumers’

awareness

3. Reinforces consumers’

attitude

4. Reinforces consumers’

decisions

76

PART E: The extent in which the extent in which advertisement relates with

the promotion of the brand of MOGAS Tanzania limited

7. Please show to what extent in which advertisement relates with promotion of the

brand of MOGAS Tanzania limited

Please respond to all the items given below by putting a tick in the appropriate space

by using the scale range from 1 to 5, whereby 5 = Very Large Extent, 4 = Large

Extent, 3 = Small Extent, 2 = Very Small Extent and 1 = No Extent

Thank you very much for your cooperation and assistance in answering these

questions

S/N Very

Large

Extent (5)

Large

Extent (4)

Small

Extent (3)

Very

Small

Extent (4)

No

Extent (1)

1. Builds brand recognition

2. Enhance brand awareness

3. Advance brand loyalty

4. Develop brand reputation

77

Appendix (ii) – Interview guides

Interview guide for senior officers of MOGAS Tanzania Limited

Introduction

The purpose of the interview is to gather different views from heads of department

and senior officers at MOGAS Tanzania Limited regarding the Influence of

Advertisement on the Success of Oil Retailing Industry in Tanzania.

1. In what extent advertisement has enhanced sales performance in your company?

2. Why does your company needs advertise its products?

3. How efficient does advertisement affect the consumer’s behavior?

4. How does advertisement contributes significantly on the promotion of your

brand?