YARDSTICK INTERNATIONAL COLLEGE

SCHOOL OF POST GRADUATE

DEPARTMENT OF PROJECT MANAGEMENT

EVENING SECTION –A
INDIVIDUAL ASSIGNMENT ON BUSINESS RESEARCH METHODS

A Research Proposal an Assessment on the Impact of Advertisement on

Customer Attitude In The Case of (Coca-Cola Share Company in Addis
Ababa)

Prepared By Id No
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SUBMISSION TO: Moges (PHD)

JANUARY, 2022

ADDIS ABABA, ETHIOPIA

 Table content

I. Abstract………………………………………………………………………………….……..1

Chapter one

1. Introduction………………………………………………………………………………..…2
1.1. Background of the Study……………..…………………………………………………2
1.2. Statement of the problem………………..…………………………………..………….4
1.3. Research questions…………………………………..……………………..……………5
1.4. Objective of the study…………………………………………………..……………….5
1.4.1. General Objective………………………………………………..……………….5

1.4.2. Specific objective…………………………………………………………………5

1.5. Significance of the study…………………………………………………….………….5

1.6. Scope of the study………………………………………………………….……………6
1.7. Limitation of the study………………………………………………….…….………..6

Chapter two

2. Literature review…………………………………………………………………………….6

2.1. Meaning of customer attitude………………………………………………………….6

2.2 Objectives of advertisement…………………………………………….………………7

Chapter three

3. Research methodology………………………………………………………………………11

3.1 Research design………………………………………………………………………..11

3.2 Research approach………………………………………………………….…………11

3.3 target population…………………………………………………………….………..11

3.4 Sampling techniques…………………………………………………………………..11

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3.5. Sample size determination…………………......……….………………………………..11

3.6 Source of data…….………………………………………………………………………12

3.6.1 The primary data……………………………………………..………………………12

3.6 2 Secondary data…………………………………………………….…………………..12

3.7 Methods of data collection…………………………………………………………………12

3.8 data processing and analysis………………………………………………………………13

3.9. Budget and time break dawn…………………………………………….………………13

3.9.1. Budget break dawn……………………………………………………………………13

3.9.2. Budget break dawn……………………………………………………….…………..13

3.10. Conclusion ………………………………………………………………………………14

Reference ……………………………………………………….……………………………15

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Abstract
Understanding of consumer attitude in regards of advertising is essential for the success of the
organization. The overall objective of this study was to assess the impact of advertisement on
customer attitude in case of Coca-Cola Share Company in Addis Ababa. The significance of this
study was for the organization to check the existing advertisement media. The study will be
utilized both primary and secondary data. The researcher will be used self-administered
questionnaires and unstructured personal interview. The researcher will be used simple random
sampling techniques. For selects sample of Coca-Cola share company customer. Finally the
collected data were processed, analyzed and interpreted by using tables. And the researcher will
be recommends the following mechanism to the company based on finding of analysis part.

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

In order to stay profitable and competitive in today’s market, satisfying customers is vital. So as
to meet this goal, understanding the customers’ behaviors should be given a top priority.
Modern marketing is more than just producing good , products ,suitable pricing and easy access
to them today attracting new customers has become so important in modern retailing in addition
to loyal to them and efforts have been paying in that perspective as known the cost of retaining
the current customer is less than the cost of attracting new customers world of today(kotler and
Armstrong ,2008 ).firms have to rethink the relationship between attitude and behavior of their
consumers . Advertisement refers to the motivational methods of getting the consumer to
purchase their product, and it also referred to as “ any communication used to inform persuade,
and remind people about an organization’s or individuals goods ,services, image ,ideas,
community involvement or impact on society”(Evans&Berman 1997).

Attitudes have motivational quality that propel a consumer toward a particular behavior or repel
the consumer away from a particular behavior (Kotler 2006) .Attitude is a learned predisposition
to behave in a consistently favorable or unfavorable way with respect to a given object (specific
consumption or marketing related concepts, such as product, product category, brand, service,
possessions, product use, causes or issues, people, advertisement, internet site, price, medium or
retailer).

A. The Power of Advertising

Advertising has the power to persuade, the power to influence the mind, and the power to shape
destiny. It has the power to change markets and improve profit margins the great power of
advertising is seldom achieved in practice, but we can’t give up. The potential and the promise
are too great.

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B. Consumer behavior

The study of consumer’s behavior helps firms and organizations improve their marketing
strategies by understanding the customer attitude. The psychology of how consumers think, feel,
reason, and select between different alternatives (e.g., brands, products, and retailers);

The psychology of how the consumer is influenced by his or her environment (e.g., culture,
family, signs, media);The behavior of consumers while shopping or making other marketing
decisions ;Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome; How consumer motivation and decision strategies differ
between products that differ in their level. How marketers can adapt and improve their marketing
operations and marketing strategies to more effectively reach the consumer.

Generally the official definition of consumer behavior is "The study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer
and society.

C. The Background of the organization

Coca-Cola Share Company is located in the historical capital city of Addis Ababa around Tour
Hailoch. which is annually visited by more than 95,000 tourists because it is the centers of
African union. Coca-Cola Share Company modern plant occupying an area of 8. Hectors was
completed with an initial capital investment of over 300 million birr’s.

Principal aim of Coca-Cola Share Company is meeting the customer requirements for quality
soft drink and to offer customers more choice in the market value.

Coca-Cola Share Company utilizes state of the arts technology and has a highly qualified
professional work force that will enable it to complete on the export market with the leading
international beer producing and marketing companies.

Coca-Cola Share Company is taking in various activities as part of its social responsibility to the
society has been working with youth associations and clubs in the fight against
HIV/AIDS .Helping street children, creating self-help job opportunities etc.

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1.2 Statement of the Problem

Understanding of consumer attitude in regards of advertising is essential for the company. All
businesses need to communicate to the consumer what they have offer through advertisements
(Jobber& Lancaster, 2006). The advertisements not only change the way of product is consumed
by the user but alter the attitude with which they look at the product. All over the world,
advertisements per brand can be witnessed. In effectiveness of advertisements have great
influence in purchasing decision of customers for particular brands. It is a universally accepted
fact that advertisements can give special attributes upon a product or service that it may have
lacked otherwise less attention of customer for the company advertisement is negative impact for
the company, so understanding of customer attitude in regards of advertising is essential for the
company.

In today’s era advertisement is of great importance. It is the essence of any product or brand.
Advertisement can lead it to the epitome of success or to the diminishing layers of its existence.
Advertisement is considered the prime factor for the success of any business. Marketers know
that consumers are constantly picking up cues put out by the organization, or about the
organization, that they use to form attitudes and beliefs about the organization. Many of these
message-laden cues are controlled by the organization, including factors such as product design,
product quality, price, packaging, outlet selection, advertising, and the availability of coupons.
Most notably, there is a constant attempt to make sure that these entire elements deliver a
consistent message, and that this message is understood and interpreted in the same way by the
various consumers. On the other hand, there are many message-laden cues that are not under the
control of the marketer, yet may be more powerful in the minds of consumers, and that must be
anticipated and dealt with by the marketers

Most researchers focus on the impact of advertising on sales generation, giving limited attention
to the customers’ attitude, response and actions. Therefore, The purpose of study is to identify
the impact of advertisements on the consumer attitude and behavior with special reference
Coca-Cola Share Company. The response of customer determines the advertising effectiveness
of the behavioral attitudes which indicates potential purchasing power of Coca-Cola Share
Company.

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1.3 Research questions

Besides, the study is intended to answer the following basic research questions.

1. Does advertising have an impact on customer attitude?

2. What type of advertising the Coca-Cola Share Company uses to change its customer
Attitude?

3. Why the company uses advertising?

1.4. Objective of the study

1.4.1 General Objective

To assessment the impact of Advertisement on customer attitude. In the case of Coca-Cola Share
Company.

1.4.2 Specific objective

1. To evaluate the impact of advertising on customer attitude.

2. To identify the types of advertising applied by the Coca-Cola Share Company to change
customer attitude.

3. To know the reason of the company use advertising.

1.5 Significance of the study

The study will conduct to identify the impact of Advertisement on customer attitude on the
Coca-Cola Share Company. Therefore,

 It helps to create the company and customers will be measures provide possible
commendation and suggestion to problems for the effect.

 it serve as a base for conducting another research

 It also be helpful for others researchers who may be interested to conduct research in similar
topics.

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1.6. Scope of the study

The study will be much emphasis on effectiveness of advertisement in relation to customer

attitude in case study of Coca-Cola Share Company. Which is located in Addis Ababa
Ethiopia? We focused on only the customer of Coca-Cola Share Company live in Addis Ababa
city

1.7. Limitation of the study

While conducting this research, the researcher will face different problems some the constraints
which are faced by the researcher are the following.

 Time limitation for conduct this paper

 Internet connection problem

 Manager of the marketing department of the company has busy to give information our
question.

 Some respondents were not willing to fill out the questionnaire so, the researcher cannot
collect all questionnaires, but most of the respondents were fill the questioner.

Chapter two

2. Literature review

2.1 Meaning of customer attitude

Consumer attitude simply as a composite of a consumer’s beliefs, feelings, and behavioral

intentions toward some object within the context of marketing. A consumer can hold negative or
positive beliefs or feelings toward a product or service. A behavioral intention is defined by the
consumer’s belief or feeling with respect to the product or service. Palmer Aderian, Catherine
cole (1995)

A marketer is challenged to understand the reason a particular attitude might exist. Perhaps the
attitude formed as the result of a positive or negative personal experience. Attitudes are a learned

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predisposition to proceed in favor of or opposed to a given object. In the context of marketing, an
attitude is the filter to which every product and service is inspected.

Advertising campaigns that appeal to consumer behaviors based on the value-expressive or

utilitarian functions are the most common. (Micael, Jbaker ,1995),. Utilitarian advertisements
deliver a message regarding the benefits of using a product or service. Advertising targeted to
consumers with value-expressive attitudes will typically include product symbolism and an
image strategy. In either case, it is important to understand why a consumer holds a particular
attitude toward the product or service. Marketing is a process that takes time and can involve
hours of research for a marketing plan to be effective. Advertising effectiveness pertains to how
well a company's advertising accomplishes the intended. Small companies use many different
statistics or metrics to measure their advertising effectiveness. These measurements can be used
for all types of advertising, including television, radio, direct mail, Internet and even billboard
advertising. A company's advertising effectiveness usually increases over time with many
messages or exposures.

2.2. Objectives of advertisement

A. Reach

One objective for advertising effectiveness is reach. This measurement refers to the number of
people who actually saw a company's advertising. Small business owners usually know how
many people can potentially see their ads. Local television stations report the number of viewers
for certain shows. Similarly, magazines report circulation figures. But not all of these viewers or
readers notice the ads. That is why small business owners often use market research surveys to
measure reach. For example, 10 percent of a local restaurant's viewing audience may recall
seeing their latest television ad. Advertising should be designed to attract attention, build interest
and prompt action, according to the experts at "Mind Tools" online.

B. Sales and Profits

One of the most important objectives of advertising is to increase sales and profits. A profitable
ad is an effective one. The best way to build sales and profits is by reaching the right target
audience. The company must make sure their advertising reaches the people who are most likely

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to purchase their products. Companies often develop customer profiles from warranty cards or
marketing research to gather this information. Target audience variables or demographics can
include age, gender, income and education. For example, a high-end women's clothing retailer
may effectively drive sales and profits by targeting women with higher incomes.

C. Brand Awareness

Brand awareness is another objective of advertising effectiveness. Brand awareness is the

percentage of people who recognize a company's brand of products. It usually takes many years
and lots of ad exposures to build high brand awareness. Television and radio are two of the best
mediums for building brand awareness. Small companies can also build their brand awareness on
the Internet by advertising in online Yellow Pages, or promoting their wares through major
search engines like Google and Yahoo.

D. Consumer behavior

Consumer behavior is the study of how a consumer thinks, feels, and selects between competing
products. Moreover, the study of attitudes is critical to understanding the motivation and decision
strategies employed by consumers. The combination of beliefs, attitudes, and behaviors influence
how a consumer reacts to a product or service. Marketers develop relative, compelling marketing
messages using the same combination of information, and ultimately influence consumer
behavior.

The (ABC) Model of Attitudes—consisting of the three components: affect, behavior, and
cognition—accentuates the relationship between knowing, feeling, and doing. William
D,perteaw Jr.E.Jerome and McXarthy (2000),.

 Affect is the feeling an individual has regarding an object. In the current context, affect
represents the emotion or opinion about a product or service.

 Behavior is the responses of a consumer resulting from affect and cognition. Behavior
only implies intention.

 Cognition is an individual’s belief or knowledge about an attitude object.

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The hierarchy of effects is the result of all three components working together. The hierarchy of
effects is a concept used to distinguish between the involvement levels or motivation an
individual might have toward the attitude object. The standard-learning hierarchy, low-
involvement hierarchy, and experiential hierarchy are the three hierarchies of effects.

The standard-learning hierarchy, also known as the high-involvement hierarchy assumes that the
consumer will conduct extensive research and establish beliefs about the attitude object. The
consumer will then establish feelings regarding the attitude object. The feelings or affect are
followed by the individual’s behavior. The cognition-affect-behavior approach is prevalent in
purchase decisions where a high level of involvement is necessary.

The low-involvement hierarchy consists of a cognition-behavior-affect order of events. A

consumer with an attitude formed via the low-involvement hierarchy of effects bases the
purchase decision on what they know as opposed to what they feel. The consumer establishes
feeling about a product or service after the purchase. This limited knowledge approach is not
suitable for life-changing purchases such as a car or new home.

The experiential hierarchy of effects is defined by an affect-behavior-cognition processing order.

In this scenario, the consumer is influenced to purchase based entirely on their feeling regarding
a particular product or service. Cognition comes after the purchase and enforces the initial affect.
Emotional contagion is common in attitudes formed by the experiential hierarchy of effects.
( Nolbrook, Morris B, and Hirschman, Elizabeth C, 1982). . Emotional contagion, in this
situation, suggests that the consumer is influenced by the emotion contained in the
advertisement.

The elaboration likelihood model (ELM) offers a theory concerning attitude change. Similar to
the ABC model of hierarchy, the ELM model is based on the level of involvement in the
purchase .Depending on the level of involvement and motivation, the consumer will follow one
of two possible routes. The central route is when the consumer is highly involved in every aspect
of the purchase. A consumer following the central route extends extra effort in researching and
understanding the products or services. The peripheral route as the name implies is followed by a
consumer with low involvement in the purchase process.

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Social judgment theory offers another explanation for attitude changes, whereas a consumer
compares current information to previous notions.

Incoming messages are filtered down two possible paths—latitudes of acceptance and latitudes
of rejection. If the new information is similar to existing information, the consumer follows the
latitude of acceptance. In contrast, if the information is disparate, the consumer follows the
latitude of rejection.

Multi attribute models are used to understand and measure attitudes. The basic multi attribute
model has three elements—attributes, beliefs, and weights. Attributes are the characteristics of
the attitude object. Beliefs are a measurement of a particular attribute. Weights are the
indications of importance or priority of a particular attribute. A multi attribute model can be used
to measure a consumer’s overall attitude.

The most influential multi attribute model the Fishbone model also uses three components of
attitude. The first, salient beliefs, is a reference to the beliefs a person might gain during the
evaluation of a product or service. Second, object-attribute linkages, is an indicator of the
probability of importance for a particular attributing associated with an attitude object, the third
component, is a measurement of importance for the attribute.

Changing a consumer’s attitude towards a product, service or brand is a marketer’s Holy Grail.
Three attitude change strategies include: changing affect, changing behavior, and changing
beliefs.

Classical conditioning is a technique used to change affect. In this situation, a marketer will
sometimes pair or associate their product with a liked stimulus.

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 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Research design

The researcher will be used descriptive research it helps to identify, describe the nature of the
subject. And it is more appropriate for further explanation of various problems and answers the
research questions in most appropriate way and to use average.

3.2 Research approach

The researcher will be used both quantitative and qualitative research approach, qualitative
research involves gathering, interpretation of data impossible to quantity and is based on
meaning expressed through words (Saunders etal, 2005).

Quantitative research is a research approach that is formalized and highly structure.Through the
study of some specific variables on great number of objects of investigation (Solvang 1995).

3.3 target population

The target population of the study is the final customers and the marketing management
department of the company.

3.4 Sampling techniques

The researchers used non probability sampling. The sampling technique used for this study has
been convenience sampling. Because-- it is difficult to get sampling frames so the researcher
focus on non-probability sampling technique. (Cochran, W.G 1963),. From Sample size is
determined by using the formula population proportion when the population is unknown

3.5 Sample size determination

The target populations for the study are Coca-Cola Share Company customer. Since the total
numbers of customer is many and unknown we take a total of 68 of respondents based on the
formula put in under.

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The statistical population n is determined as follows:

n=z 2 . p . q=( 1.65 ) 2. ( 0.5 ) (0.5)

E2= (0.1)2

¿ 68 will be selected customer respondent

Where

Z = confidence level 90 %( at=1.65)

E= margin of error tolerated 10 %( 0.1)

P= sample proportion of success

Q=1-p

3.6 Source of data

3.6.1 The primary data

Primary data will be collected from customers and from the marketing department of the Coca-
Cola Share Company. Questionnaire is as data collection instruments that are filled out by
research participants. Primary data such as, interview and questionnaire. This interview is for
marketing department of the organization and customers of the organization

3.6 2 Secondary data

Secondary data will be collected from both published and unpublished materials such as memos,
books, and research papers as much as possible.

3.7 Methods of data collection

To obtain relevant information the researcher will be used self-administered questionnaire and
unstructured personal interview.

Self-administered questionnaire is designed to give freedom for respondent and unstructured

personal interview is selected to get sufficient information.

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 3.8 data processing and analysis

In the study process, different types of raw data will be collected by using unstructured interview
and self-administered questionnaires. These raw data will be processed, analyzed and interpreted.
The collected data will be edited that means the collected data may contain unnecessary
information so, it should be edited. Also the data must be classified in terms of different criteria
and error were omit, explain and correct by using descriptive analysis so as to facilitate the
interpretation of the raw data. Finally, the data will be effectively processed, analyzed and
interpreted by using tables and in order to show the result of the study easily this lead to
conclusion and recommendation of the whole study.

3.9. Budget and time break dawn

3.9.1. Budget break dawn

SN Item Quantity Single price Total price

1 Mobile card 100 25 2500
2 A4 paper 1 package 250 250
4 Internet 3 Gb 60 180
5 Note book 1 100 100
6 Coffee and tea 50 10 500
Total price 3490 birr
3.9.2. Budget break dawn
No Activities Month
January February March April May June
1 Prepare questioner
2 Data collection
3 Organize the research
4 Writing research report
5 Submit research report
6 Present research report

3.10. Conclusion

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For any business firm to be successful in their business conducting and giving attention for their
advertisement is critical part for the retention and attracting new customer has successful activity
for the business organization. It is better for all business firms to manage and follow up their
advertising activity in order to changing the customer attitude in to positive way.

Having this in to consideration these papers try to study and show the impact of advertisement on
customer attitude.

As indicated from the analysis part of this paper the company faces different problem regarding
to the impact of advertisement on customer attitude.

In order to overcome this problem the researcher recommends the following mechanism based
on finding of analysis part..

It is advantageous to the company have establish to a well-planned advertisement strategy and

well defined marketing concept to succeed and attract a lot of customers in the competitive
business market.

Reference

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 Adeolu B. Ayanwale et al (2005), Consumer Behavior.
 Cochran, W.G (1963), Sampling Techniques, 2ndEd, New York, John Wiley.
 Kotler andArmostrong (2008) principle of marketing (12 thedition), prentice hall of India
private limited, New Delhi.
 Micael, Jbaker (1995), marketing strategy and management, 3nd edition, MACMILAN
PRESS LTD.
 Palmer Aderian, Catherine cole(1995), Service Marketing Principles and Practice, New
Jersey, Practice-Hall Publishing company.
 Saunders M (2004) research methods for business students (4thed) hallow; person education
limited.
 William D,perteaw Jr.E.Jerome and McXarthy (2000), marketing model, Englewood Cliffs,
nj prentice hall.

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