...Chapter 2 The Effect of Athlete Endorsers on Consumer Purchase Decision of Teenagers for Non–Sporty Products Chua-Lao, Peterlao F. Cristobal, Michelle Ann Manlangit, Stephen John 3AMC Chapter 2 Introduction Nowadays, the utilization of celebrity-athletes on endorsements are very much common. Everyone is aware of the fact that numerous athletes are being contacted by various companies to co-present their products; whether it may be a sports or a non-sports brand product or services. But what we do not know is the concept of how much of an impact the celebrity-athlete impact gives to the audience. It is explained in this part the difference between an athlete’s endorsement on sports brand and an athlete’s endorsement on non-sports brand. It is also stated in this chapter the effects of the two, of what is being perceived by consumers and how they are going to respond based on attitude. Athlete endorsement One of the most common approaches to increase sales is the use of athlete endorsers as to continuously remind them of the product (Ruihley, 2010). According to a study, for an endorsement to be effective, the chosen athlete endorser must be amid the leading performers of his or her career and must seem to have a reliable attitude to the purchasers. (Ruihley, 2010). In a consumer’s point of view, in promotions, it is more engaging and consistent when a celebrity is being used as the endorser; as this forms brand image. (Sertoglu, 2014) But still, efficiency of...
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...RESEARCH PROPOSAL TO NEW APPROACH FOR EXTRA INCOME Submitted to Andy Smith Advertising Department Supervisor Thomas Advertisements Company Prepare by Jason Vu Advertising Associate Thomas Advertisements Company March 24, 2010 THOMAS ADVERTISEMENTS COMPANY MEMORANDUM To : Andy Smith, Advertising Department Supervisor From : Jason Vu, Advertising Associate Date : March 24, 2010 Re : New Approach for Extra Income As a consequence of the recent increase in minimum wages, there is an increase in the discretionary income of our current advertising base. People with more money tend to spend more. Our current advertising approach does not take this into consideration. This is a proposal to modify the approach in our advertising strategy so that we can take advantage of the coming shift in our advertising base and enhance our advertising revenue by expanding our potential client base. The rationale behind the proposal and its implementation will be elaborated in the following report. When people have achieved basic survival needs such as food, shelter, and relatively secured physical and financial safety, they seek to attain things that they haven’t yet possess, such as status symbols or a sense of belonging to an exclusive group. If we can encourage our existing advertisement consumers to spend their extra income, hence shift the demand of our current advertising base to consume more upscale products, then we stand to gain an expanded and more profitable set...
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...they are the individuals responsible for making the decisions in this situation and are the main decision makers responsible for financial and accounting decisions at Robbins Industries. The shareholders and the employees of Robbins Industries will be the stakeholders who will be most affected by the decision that will be made by the three decision makers because in most cases of accounting fraud by a company, the losers in the situation more often than not are the shareholders and the employees of that company, and in this case, the employees and shareholders of Robbins Industries. The investment bank who will be involved in the planned bond offering would be an interested stakeholder because the accounting treatment of the advertising cost could possibly affect certain covenants required to meet the obligations prior to the...
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...ethics of advertising and emotional appeals by businesses grows into a hotter topic as the United States falls deeper into a world completely pervaded by ads. While the pure inescapability of ads and appeals creates enough controversy, emotional aspects add further to the debate. In the past, most companies managed their advertising so that it reached the local people, and informed them that the company carried a product and the use of the product. Their advertising tended to be informational and, in general, inherently true. Now with a worldwide market, companies must employ emotional and associative ads and appeals to create a competitive advantage. Ingrid Smithey Fulmer and Bruce Berry discuss in their article, “Managed Hearts and Wallets: Ethical Issues in Emotional Influence By and Within Organizations,” the emotional appeals by businesses internally to employees and stakeholders, and externally to customers. A critical analysis of Fulmer and Barry’s article points out that, while the issues are many and not wholly backed up, they are logically believable and concisely argued. The article begins by defining important terms such as “mood” and “affect,” and describing the origins of emotion and logic. This provides a nice background to increase the understandability of their arguments, and it also illustrates the differences in words such as “mood” and “emotion.” Fulmer and Barry then highlight research on how emotions can be shaped and how they can affect organizational...
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...BUSINESSES Ayub Mohamud Hussein Introduction Advertising is a powerful tool used by companies to inform, and persuade for their products/service to their customers to take some action, now or in the future and to shape consumers attitude and intentions and move them to the next level of buying process. It is the method used by companies for creating awareness of their products, as well as creating new products known to the new and potential consumers. Longe (2001) defined advertising as any personal paid form of non-personal communication which is directed to the consumers or target audiences through various media in order to present and promote a product, services or/and idea. The advertisement in media can be in the form of print such as newspaper, magazines, and billboards or broadcast such as radio and television. It consists of pictures, headlines, information about the product or service the company advertises. Businesses in Somalia, particularly businesses in Mogadishu do and invest a large portion of their budget on advertising, but misleading the customers’ mind become a common object that companies use nowadays; nevertheless, these companies ignore the consequence of this action to their performance as well as their image. This study focuses on the effect of misleading advertisement on business. Misleading Advertisement The American Marketing Association (AMA) defines misleading advertising as advertising intended to mislead consumers (1) by falsely making...
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...20(600) + 5.2(5,500) + .20(10,000) + .25(5,000) Qd= -5,200 – 21,000 + 12,000 + 28,600 + 2,000 + 1,250 = 17,650 Price of the product elasticity= -42(500/17,650)= -1.19. The price of the microwaveable food product is elastic, meaning that the price of the product will affect the demand. As the price of the product increases, the demand for the frozen microwaveable food will decrease as well as if the price of the microwaveable food decreases, the demand for them will increase. Cross elasticity= 20(600/17,650) = .68. The cross elasticity, or the price of the leading competitive product, is positive, implying that they are substitute products. However, the elasticity is less than 1, which suggests that they are not necessarily good substitutes and the competitor’s price has little impact to the product sales. Per capita Income elasticity= 5.2(5,500/17,650) = 1.62. The product is income elastic. This would indicate that the product is a luxury product and will be responsive to income fluctuations. Advertising elasticity= .20(10,000/17,650) = .11. The product is inelastic with respect to advertising. An increase in advertising will have a very small effect on product sales. For instance, if we increased advertising by 10%, we would only see approximately a 1.2% increase in product sales. =-5200-42*(500) +20*(600) +5.2*(5500) +0.2*(11000) +0.25*(5000) = 17850 Number of Microwaves sold elasticity= .25(5,000/17,650) = .07. The product is inelastic in regards to the number...
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...instrument in a wide range of firms’ activities. Women appear as a sexual object in any kind of advertisement or as an attractive material standing nearby a product. Sometimes firms use sexual saleswomen to facilitate the sale or to attract consumers’ attention to the firm or product. Particularly, it is very common to use sexually attractive women in advertisements regardless of the product is related to sexuality. The use of sexual women images in advertisements is so widespread that such images are found in the advertisements for most product types from clothing, cosmetics, jewelries and furnitures. For over twenty years, Jean Kilbourne has been writing, lecturing, and making films about how advertising affects women and girls. In her essay, Kilbourne looks very deep into the connection between abuse and ads....
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...public places. Smoking in public is a problem in many different ways, some are that not only does it cause health issues; it puts others at risk, and those who could be allergic to smoke in general. People should care about this social problem simply because not only does this problem harms the people who are engaging in this practice, but it harms innocent people who have not done a thing. The cause of the problem I deeper than what most would think. Smoking begins with having social change and problems out in the world. People often smoke to ease their minds, to get away from their problems that they are having, and while some do so only to fit in with a group of their peers. It is amazing how such a small moment decision can affect many lives within the world. Stop smoking in all public places is the set goal for this social problem, and some may ask why?, but when we look at many commercials on the television on people are dying every single day to some type of cancer caused from smoking. My question would be to everyone who has made up their minds that smoking should not be banned in public places that would you want your family be harmed or even die from someone else causing their bodily harm or deaths. Smoking is the single largest preventable cause of disease and premature death. It is a prime factor in heart disease, stroke and chronic lung disease. It can cause cancer of the lungs, larynx, esophagus, mouth, and bladder, and contributes to cancer of the cervix,...
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...Television Is Affecting Children Negatively Larry Hering ENGL 101-B25 June 18, 2012 Gerald Spence Abstract Television and television advertising are effectively altering the way children think, act, and interact. Sedentary lifestyles are thought to be synonymous with watching too much television and childhood obesity has become a major issue in the United States. With all of the data and recommendations showing the negative affect television is causing, parents are in control of the issue right in their own homes. All that is needed is for them to assume responsibility. Television Is Affecting Children Negatively Over the last thirty years obesity has tripled in children ages 5 and up (Eaton, 2010). It is an epidemic that needs to be addressed in order to regain health among the nation’s children. While there is clearly more than one factor, technology has to take a major part of the blame along with parents. Children are spending too much time watching television and using systems such as Play Station and X-box. Computers are another source that takes away from activity Sedentary lifestyles are taking the place of wholesome activity-based play. Notice this child is sitting approximately three feet from the television and still uses a remote (see his left hand). His only activity appears to be eating potato chips and drinking soda. This image could be from any home in the country as sedentary lifestyles have become common. -based fun. Sedentary lifestyles...
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...THE EFFECT OF ADVERTISING ON CUSTOMER CHOICE A CASE STUDY OF CENTURY BOTTLING COMPANY LIMITED BY SEBYALA BOSCO 10/U/141910/BSE/PE A RESEARCH REPORT SUBMITTED TO THE SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR’S DEGREE OF BUSINESS STUDIES WITH EDUCATION OF KYAMBOGO UNIVERSITY AUGUST 2013 DECLARATION I Sebyala Bosco Registration Number 10/U/141910/BSE/PE, declare that this research report entitled “The effect of Advertising on Customer Choice case study of Century Bottling Company Limited” is out of my own effort and it has never been submitted to any institution for any award. Sign …………………….. Date……………………………. Sebyala Bosco 10/U/141910/BSE/PE APPROVAL This is to certify that the research report entitled “The effect of Advertising on Customer Choice case study of Century Bottling Company Limited” by Sebyala Bosco registration number 10/U/141910/BSE/PE has been done under my supervision. The research report is ready for submission to School of Management and Entrepreneurship with my approval as University supervisor. Sign: ……………………………… Date:……………………….. Ms. Nakatete Phionah (Supervisor) DEDICATION I dedicate this report to my beloved father Dr. Bukenya John Vicent, my beloved mother Ms. Namuli Josephine, Mr. Lubega Fred and Haji Kazibwe, Prof. Kawuma, Hajjati Sarah...
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...False Advertising Advertising is common tools in industry. Many companies spend millions even billions in this section to pay celebrities and ideas sincesurveys prove that advertising plays big role in their income. They produce branding image which are unique, strong, catchy, and easy-to-remember for their consumers. Talking about advertising, on the onehand, it is good for its functions, displays, etc; on the other hand, sometimes it is too good to be true, the way they bring the messages to the consumers which state “the number one …”, “you may see the result in just...”, so on and so forth. Illogical sounding absolutely has to be considered in big portion by consumers. Consumers have to be aware of the dangers in health and safety of such false advertising. False advertising might describe in two aspects, in term of definition and requirements. Based on Tricia Ellis-Christensen, false advertising is any type of advertising that deceives consumers. Consumers believe that they will earn several benefits such as good deal, saving money, or buying something that will perform in a specific manner, yet almost all of themare non-existing at all. While the definition that might found in theglossary of research lawyer state that false advertising is the crime or tortof publishing, broadcasting, or otherwise publicly distributing anadvertisement that contains an untrue, misleading, or deceptiverepresentation or statement which was made knowingly or recklessly and with the intent...
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...2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88 Computed elasticities for each independent variable has been requested assuming the following values for the independent variables: Q = Quantity demanded of 3-pack units P (in cents) = Price of the product = 500 cents per 3-pack unit PX (in cents) = Price of leading competitor’s product = 600 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,500 A (in dollars) = Monthly advertising expenditures = $10,000 M = Number of microwave ovens sold in the SMSA in which the supermarkets are located = 5,000 1. Attached is the excel spreadsheet where you will find the elasticities for each independent variable. 2. Determine the implications for each of the computed elasticity’s for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results. The elasticity of the demand is 1.9, which indicates that it has an elastic demand. The price elasticity of demand is very sensitive to the...
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...of what is expected in terms of sales. Successful sales companies use demand estimation to predict future sales typically in months, quarters, or years. With this concept, a company is able to estimate how much to produce. This paper will estimate the following demand equation for a leading brand of low-calorie, frozen microwavable food using data from 26 supermarkets around the country for the month of April, compute the elasticities for each independent variable, determine the implications for each of the computed elasticities for the business in terms of short-term, recommend whether or not the firm should cut its price to increase its market share, plot the demand curve for the business, and indicate the crucial factors that could cause rightward shifts and leftward shifts of the demand and supply curves. ------------------------------------------------- Q = Quantity demanded of a unit (dependent variable) ------------------------------------------------- P (in cents) = 500 cents per unit ------------------------------------------------- PX (in cents) = 600 cents per unit price (leading competitor’s product) ------------------------------------------------- I (in dollars) = $5,500 (per capita income) ------------------------------------------------- A (in dollars) = $10,000...
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...Course Tutor Date Assignment 1: Demand Estimation Compute the elasticities for each independent variable. Note: Write down all of your calculations Elasticity refers to the degree of responsiveness in quantity demanded in relation to the changes in factors that affect demand, for instance, price (McGuigan, 2014). The independent variables in the equation include price of the product, price of competitor’s product, income in the area, and advertising expenditure. Therefore, the elasticities include price elasticity, cross elasticity, income elasticity, and advertising elasticity respectively. The values below indicate the equation and formula that will be used to compute the elasticities of each of the independent variable. Equation: QD = -5200 – 42P + 20PX + 5.2I + 0.20A + 0.25M Elasticity = (% Change in Quantity)/ (% Change in Price) N/B: % Change = (Amount of Change)/ (Initial Level) Price Elasticity (Ep) = ΔQd/ ΔP * P/Qd ΔQd/ ΔP = - 42 P/Qd = 500/5000 = 0.1 Ep = - 42 * 0.1 = - 4.2 Cross Elasticity (Epx) = ΔQd/ ΔPX * PX/Qd ΔQd/ ΔPX = 20 PX/Qd = 600/5000 = 0.12 Epx = 20 * 0.12 = 2.4 Income Elasticity (EI) = ΔQd/ ΔI * I/Qd ΔQd/ ΔI = 5.2 PX/Qd = 5,500/5000 = 1.1 EI = 5.2 * 1.1 = 5.72 Advertising Elasticity (EA) = ΔQd/ ΔA * A/Qd ΔQd/ ΔA = 0.20 A/Qd = 10,000/5000 = 2 EA = 2 * 0.20 = 0.4 Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale...
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...international phenomenon, has multitude links with human life because people needs some requirements such as purchasing goods and consuming materials. Nowadays, people’s requirements were increased and consumerism has expanded. People was spurred on consumerism by the capitalism and with the spreading of capitalism, consumerism has increased, because consumerism fuels the capitalism. In addition consumerism has substantially effect of business domain that direct to companies in a competitive trade. Hence, there are three causes such as advertising, marketing and purchasing power that lead to increasing consumerism First of all, advertising has striking effects of consumerism. Nowadays advertising is an effective strategy of selling new products. People often wants to purchase more clothes, cars, bigger house and shoes, because people needs these requirements. Of course when they are purchasing these requirements, advertisement has been advisor to buy them. Advertising exposes people’s desires that have interest to buy something. In addition with the technology age advertisements have been increased and with the more efficient advertisement, people encourage to consumerism. For example; some companies which are selling sport goods they start to use celebrity person in their advertisement and they are using some slogans as well Therefore advertisement has some effect on people and it leads to increasing consumerism Secondly ; marketing has several impacts on consumerism. Recently...
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