impact of advertising on brand loyalty with the moderation of consumer buying behaviour

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research

Ijcrb.webs.com AUGUST 2011 VOL 3, NO 4

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

THE IMPACT OF ADVERTISING ON BRAND LOYALTY WITH THE MODERATION OF

CONSUMER BUYING BEHAVIOUR; A CONCEPTUAL FRAMEWORK

Aamna Shakeel Abbasi

Army Public College of Management Sciences

Department of Management Sciences

Ordinance road Lalkurti

Zip code: 46000, State code: 66

Email id: [email protected]

Ali Muslim Bin Aqeel






Ali Naseer Awan






mailto:[email protected]




Acknowledgements:

Mr. Adnan Riaz and Ms Fozia Malik have remained specially supportive and encouraging during the course of

completion of this research study and have provided the author with their useful and knowledgeable guidance.

ABSTRACT

This paper epitomizes the substance of advertising on the purchasing behaviour of the consumers. Likeability,

persuasiveness and brand personality created by the advertisement are the key factors which weight the

intentions of the consumers regarding the brand and the purchasing behaviour. With more ad likeability the

purchase behaviour will be strongly influenced. A creative and well executed ad has the power to persuade the

consumers regarding their purchase decisions and behaviour. Similarly brand personality created in the ad has a

direct impact on the purchasing behaviour of the buyer because the users relate the brand dimensions with their

own personality traits. Therefore the paper concludes that the positive impact of all these dynamics on the

buying behaviour of the consumer actually escorts towards consumer brand loyalty which is the main dimension

of getting competitive lead in this dynamic era.

Keywords: Likability, persuasiveness, brand personality, buying behaviour, brand loyalty.

1. Introduction

Advertising can be sketched reverse to the commencement of the traced record as it is the world‟s second oldest

profession. The custom of Rock art and wall painting can be traced back to Ancient Greece, Ancient Rome and

India which is practiced to this day in many parts of the world (Kotler and Armstrong, 2008). Various

cryptograms depicting diverse events and offers have been dug up by archaeologists in the states around the

Mediterranean Sea. Walls were painted by Romans to make known the gladiator fights; pictures were painted

by Phoenicians to sponsor their merchandise on hefty rocks along the spectacle course (Kotler and Armstrong,

2008). History depicts that bill boards and out door advertising are the most aged type of advertising. With the

expansion of the town and the cities and due to the inability of the masses to read different sort of merchants

used different images coupled with their trades just as cobbler a boot, tailor a suit, blacksmith a horse shoe.

Merchants used street callers to announce their whereabouts for the expediency of the shoppers.

As the education became an obvious need as well as the printing, the urbanized form of advertising began to

inflate. With this the tradition of news paper advertising and hand bills emerged and became common. With

more economic expansion and the success of print advertising and hand bills the idea of mail order advertising

surfaced and then radio advertisement and then leading towards Tele vision advertising. Even with the advent of

electronic advertising consumers are keener to disburse attention and route the information in print

advertisement (Wright, 1974; Batra, 1986). Now with the trends of E-commerce and globalization the

advertisers are encountering new boundaries and are moving forward to web advertising adding to the dot com

boom. 21st century has actually given birth to online advertising by focusing on a relevant frame work, self-

effacing and low profile ads seeking to help rather then overwhelming the users. This has come with analogous

efforts and an escalating drift of interactive marketing.

The magnitude of effective advertisement in the current spirited era is enhanced as the companies strive to pull

off competitive positioning through better advertising their products and services endeavour to differentiate their

offerings in the mind of their consumers and customers. Effective advertising is related towards likeness,

persuasion and attitude towards the advertisement (Mehta, 2000; Stone et al., 2000). Now companies are

devoting huge budgets on advertising aspiring to persuade the customers. Firms are willing to spend millions

and billions of money on making an ad of 60 seconds or even less as they know that an attractive ad will grab

the attention of the customers, change their opinion regarding the product or the service, persuade them to

purchase and ultimately enhancing the sales to increase the profit. Companies are now shifting to Google ad

words and Google ad sense to persuade the viewers.

The importance of advertising in the current situation cannot be denied as it is the initial as well as the most

important step in reaching and persuading the audience (Siropolis, 1997). We see advertisements every where

around us, on the Tele vision, radio, internet, mobile, carts, banners, sign boards, bill boards, news papers,


magazines, trade journals and in store advertising. Due to this imperativeness of advertising in the modern era

the education of advertising is also becoming extensively common in bachelors, masters and the doctorate

degrees. A flow of advertising awareness is normally accredited to the strapping relation ship between cultural

and technological modifications.

Advertising is seen as a vital element for economic growth and success of the companies Ryans (1996) but

actually companies emphasize diminutive on the advertising research refuting its significance. Hence the

advertising research is the determinant to success of an ad in any realm. Hence the companies should not merely

focus on the production of an ad to enhance the sales solely but to identify the needs and taste of their customers

depending upon the culture (Fam 2006a) through advertising research and then fulfilling these needs through the

creation of an eye catchy ad to clutch the awareness of the customers and finally persuading them to purchase

their offerings. The advertisement strategies should be creative, artistic and should be executed in an artful

manner to gain long term benefits, brand loyalty and competitive advantage through emotional bonding,

persuading the buying behaviour of the customers by changing their intentions regarding the market offerings,

creating a unique brand personality and brand image.

2. Literature review

There is a mishmash of studies that pull glimmer on the atrociousness of advertising and its prominence on

consumer buying behaviour. In present world it has become dramatically difficult for the companies and the

advertisers to lead the concentration of their viewers and consequently have a brunt on their buying behaviour

(Robinson, 1997). In fact looking at advertisements is considered to be a squander of time and effort by the

majority people (Collett, 1994; Hollis, 1995). This habitually ends in wide awake attempts to steer clear of

advertisements (Byrant and Zillman, 1994) and rebuttal to retort to advertisements (Cummins, 1996). The

advertisements which are liked by the audience are considered to be finer and of high quality for enhancing the

assenting perceptions and the genuine brand image. With the passage of time it is now understood that

advertising likeability plays a vital role in influencing the consumer behaviour (Beil and Bridgewater, 1990).

2.1. Brand loyalty

Previous studies have shown that positive consumer behaviour through effective advertising lead to brand

loyalty. To fabricate and sustain the consumer loyalty mass media advertising is supplemented with more direct

and interactive methods (Baldinger and Robinson, 1996; Stewart, 1996). Brand loyalty results in meaningful

marketing gain, minimization of business costs and elevating business leverage (Aaker, 1991), confrontation

between the loyal customers to offering of the competitors (Dick and Basu, 1994) and uplifting revenues

(Reichheld, 1996). It is a vital link moving the market share and relative prices (Chauhduri and Holbrook,

2001). Oliver (1999) argued that it is imprudent to conclude loyalty merely from recurring buying pattern or

behavioural loyalty. Jacoby and Kyner (1973) integrated the two contradicting approaches, behavioural loyalty

and attitudinal loyalty to define the term brand loyalty.

Hypothesis 1: Brand loyalty is positively increased by increasing consumption behaviour.

2.2. Buying Behaviour

Consumer buying behaviour is given huge importance in the literature study of advertisements effectiveness.

According to Ajzen and Fishbein (1980) forecasting the consumers purchase behaviour is a source of computing

their intentions to procure just earlier than they make the actual purchase. The actual consumer behaviour is

leaded by the individual intentions (Ajzen, 2002). Personal attitude has a great control on the buying behaviour

when encountered with social pressures (Cooper and Donald, 2001) on the other hand Future actions or the

behaviour can be connected to the intentions that allow the individuals to attain the particular objectives

influenced by the social forces (Baggozi and Warshaw, 1990). The specific action of consumer depends upon

the beliefs about the benefits engaging with that exacting action or behaviour (Peter and Olson, 1996).

Consumer buying behaviour is influenced by the liking of the advertisement (DuPlessis, 1994a; Smith et al.,

2006), the emotions that form the attitude towards an advertisement (Morris et al., 2002), which then influences

the buying behaviour of consumers (Allen et al., 1992). The attitude towards advertisement is not only a strong

factor in determining the effectiveness of the advertisement but also work as an interceding variable between


advertising and buying intentions of the viewers (Shimp, 1981), purchasing decision and behaviour depends

entirely on the advertisement without any assessment of the product itself (Gorn, 1982).

Hypothesis 2: Increased buying behaviour will augment the brand loyalty.

2.3. Likeability

There is a wide range of data that suggests the weight of advertisement likeability for envisaging the intentions

and behaviour of consumers. The review of the literature proposes diverse ideas, Some believe that likeability

and attitude towards advertisement is a result of cognitive viewpoint which can foresee the consumer behaviour

(Fishbein and Middlestadt, 1995) others assume that likeable advertisement corresponds to two times more

effective then an average advertisement (Beil and Bridgewater, 1990) still others concluded that likeability of

advertisements depends upon the element of entertainment and information provided ( Halley and balldinger,

1991). DuPlessis (1994b) considered involvement as an imperative aspect of likeability of advertisements

whereas product category (Beil and Bridgewater 1990) and culture (Fam 2006a) were proposed as an important

dimension in likeability of ads. Likeability is a noteworthy factor in advertising effectiveness having an impact

on the consumer intention and buying behaviour (Mitchell and Olson, 1991) whereas if the advertisement is able

to create a positive notion then it will make possible the consumer involvement ( MacKenzie and Lutz, 1989)

mounting the capability to stimulate and affect the buying behaviour ( Brown, 1991) developing liking for the

brand and then translating this likeability to purchase intention ( Smith et al., 2006).

Hypothesis 3: Brand loyalty is positively increased by advertisement likability.

2.4. Persuasiveness

Different ideas have been proposed depicting on the significance of persuasiveness of ads. Wells (1997)

believed that successful ads are persuasive, informative and salient whereas the persuasion is associated to ad

liking (Fishbein and Ajzen, 1975) in the context of involvement and relevance (Beil and Bridgewater, 1990).

Persuasion is related to Brand salience in TV advertisements (Haley et al., 1984), affective and cognitive

responses (Holbrook and Batra, 1987a), brand differentiation strategies in ads (Stewart and Furse, 1986),

advertising content (Mcewen and Leavitt, 1976; Pechman and Stewart, 1989). Therefore the advertisers should

clearly focus on the creativity and the execution of the advertising strategies in a strategic manner to persuade

the viewers.

Hypothesis 4: Brand loyalty is positively increased by advertisement persuasiveness.

2.5. Brand Personality

Brand personality is considered as the central element of brand identity (Aaker, 1996). The view of personality

creation in advertising actually retorts to the propensity in modern culture to worth personal relationships. It

actually refers the imperativeness of relationships in personal life. Brand personality sways the assessment phase

in the consumer buying behaviour and for this phase and the general target advertisement is measured to be the

most effectual communication means (Brassington and Pettitt, 2000) the expressive face of the brand image

which is the vital facet of brand equity (Ouwersloot and Tudorica, 2001). The most common method for

personality creation in advertisements is perhaps celebrity endorsement. But this was practiced back a century

(Erdogan and Baker, 2000), but Redenbach (2000) observed that this custom is still eminent currently. Brand

personality reveals that how people deem about a particular brand rather then thinking about what that brand

does (keller, 1998) distinguishing the brand on extent to detain a person‟s traits and extending it to the realm of

the brand. Supported by the human personality traits (Batra, Lehman and Singh, 1993), Sincerity, Excitement,

Ruggedness, Competence and Sophistication (Aaker, 1997) as the big five brand dimensions related to brand

personality.

Hypothesis 5: Brand loyalty is positively increased by brand personality.

Insert table 1 here


There are some other factors such as social pressures, personal attitude, future intentions and consumer buying

behaviour which are interlinked to each other and give an enhanced impact on buying behaviour and brand

loyalty.

Insert figure 1 here

3. Methodology

As it is a conceptual framework paper therefore the methodology being used for developing the conceptual

framework is the thorough study of previous literatures by eminent authors on effective adverting campaigns

and the advertising factors leading towards brand loyalty. Keeping in view the basic purpose of the paper

different authors ranging from David Aaker and Philip Kotler, to Armstrong has been studied to develop the

conceptual model for this study. The thorough study of the past researches suggested that likeability, persuasion

and brand personality are those major facets of advertising that have a huge impact on the consumer buying

behaviour and intentions and that the positive buying behaviour of the consumer will produce brand loyalty.

Insert Table 2 here

4. Theoretical framework

This vast array of knowledge depicts that organizations and advertisers should be taking care of the different

factors of advertising particularly brand personality, persuasiveness, likeability factor in their advertisements to

affect the buying behaviour of the consumers. Here Likeability, persuasiveness and brand personality are the

independent variables; consumer behaviour is the moderating variable whereas brand loyalty is dependent

variable. The advertisers should more likely emphasize on an integrated mix or combination of all these factors

to possibly influence the intentions and the purchasing behaviour of the consumers because positive intentions

and purchasing behaviour will lead to loyal consumer and customer base for that particular brand which is the

ultimate goal of every company.


5. Discussions

Consumers nowadays consciously avoid the advertisement considering them annoying (Bishop, 1997; Byrrant

and Zillam,1994) therefore research conducted on this area suggested that likeability is the most effective

advertising strategy to minimize this problem (Sacharin, 2001).

Advertisers should focus on advertising strategies that would greatly impact on the purchasing behaviour of the

masses. If an advertisement will not be liked by the consumer his intention regarding the brand will not positive

and he will not purchase that product depending upon his disliking regarding the ad. There fore the advertisers

should focus on the likings and disliking of the masses while creating an ad because ultimately the ad and the

brand is for the consumer and if ad will not be liked, the product also will not be purchased. Advertising

likeability usually has a strong and positive impact on the consumer buying behaviour (Beil and Bridgewater,


1990; Mitchell and Olson, 1991). In general informative and entertaining ads are liked by the consumers which

eventually impact on their purchasing intentions and behaviour. Effective advertisement strategies focus

preferences of people to make them watch the ad, involving them fully and then augmenting the sales and

profits by influencing the buying behaviour of the users.

Likeability of the advertisement also depends upon the culture and social values. As many international

researchers have observed the cultural differences in the content of the advertisement (Mueller, 1992; Nevett,

1992; Cheng and Schweitzer, 1996) therefore cultural values should never be compromised while making the ad

because they have huge impact on the overall likeability of the advertisement.

In general consumers are not easily persuaded by certain advertisements because they have their own needs and

demands and they will not get easily involved in an ad until they will find something related to the satisfaction

of their needs. Some consumers are only persuaded by ads having strong body language while others by proper

communication rhetoric and selling techniques adopted by the advertisers.

Stanton Herbst (2006) demonstrated that the collective known market strengths i.e. the brand share, the number

of the competing brands and the brand loyalty have a much stronger impact on the persuasion as compared to

the element of creativity in the ad. Furthermore Petty and Cacioppo (1986) advocated two roads to persuasion, a

central analytic route and a peripheral route that is affective and holistic. Personality tests and conflict approach

inventory should be devised by the advertisers to better assist their advertising strategy in persuading the users

to reach their goals. The strategy should be formulated and executed keeping in view the diverse personalities of

the users to persuade them. As persuading the consumer depicts the overall buying behaviour of the user.

Persuasive advertising eventually boost the sales to a remarkable point. If the advertisement will not be

persuasive the real purpose of the advertising campaign will be demolished because they will not purchase the

brand until they are persuaded by the advertiser. In other words the success of the advertisement depends upon

the extent to which the ad is able persuade and convince the general populace.

Every successful advertisement should have a unique brand personality to influence the behaviour of the users.

Advertising by generating or reinforcing the brand personality adds to the brand equity and the overall value. It

also assists to gain the market share and offers prolonged competitive position. Endorsers, cryptograms, images

and execution rudiments are the major advertising elements that chip in to the brand personality. Every person

has certain personality traits and he relates his personality traits with the brand personality shown in the

advertisement. For this purpose the human personality can be conceptualized by using a trait approach

(Anderson and Rubin, 1986). A trait is any discerning feature through which an individual may differ from other

(Guilford, 1973). If a relationship is subsisted among the human traits and brand dimensions related to brand

personality then the buying behaviour of the consumer will be strongly influenced by this relative ness among

the traits. Generally people are having sentiments for certain celebrities so the advertisers need to identify those

celebrities to endorse them to create a brand personality so as to influence the buying behaviour of the

consumers and will also lead to brand loyalty.

Consumer buying behaviour is typically influenced by the set of beliefs and the attitude the consumer has

regarding the brand and its benefits. Sometimes the positive emotions shown in the advertisement develop

positive attitude towards the advertisement (DeCock and DePelsmacker, 2000) and sometimes a positive

consumer behaviour regarding the product (Walker and Dubitsky, 1994). Sometimes the advertisements over

exaggerate the benefits and depict the advantage in such an artful manner that it sturdily pressurise the buying

behaviour and the intentions regarding the brand. Likeability of the ad results in enhanced purchased intentions

(Smith et al., 2006) and has a brawny impact on the buying behaviour. Sometimes the emotional perspective

shown in any ad also influences the purchasing behaviour of the users. The marketers and the advertisers should

understand the psychology of the humans depicting their behaviour regarding certain actions. For example

consumers are more amenable to food advertising when they are hungry so understanding this behaviour of the

consumers likeable ads should be developed, executed and placed on the media in the late after noon. The factor

of culture should not be compromised as it has wide force on the purchasing behaviours.

Brand managers at the present time are inducing extraordinary efforts in creating brand loyalty and maintaining

it through proper use of advertisement strategies. The companies should understand the imperativeness of loyal

customer base in this competitive era. Effective advertisements tend to generate loyal customers. Brand loyalty


often refers to repeat purchase (Jacoby and Chestnut, 1978; Oliver, 1999). Brand personalities assist the firms in

creating brand loyalty. In the current state of affairs companies should employ online advertising to provide an

interactive edge to the users to broaden the brand loyalty. Huge market share can be captured by loyal customer

base. Indeed brand loyalty is a factor which can be generated by effective advertising, will increase the profits

(Reichheld, 1996) and relative prices and high market share (Chaudhuri and Holbrook, 2001) will provide the

brand a superior position in the eyes of the customers leading to sustainability.

Therefore companies should identify the needs and demands of the consumers to create an effective

advertisement so that likeability should be created. If an ad is liked by the person then it can persuade him.

Similarly unique brand personalities relating to the human personality traits depicted in the ad can also create

likeability and persuasion which can affect the consumer buying behaviour and change their intentions

regarding the brand which results in brand loyalty.


6. Importance of Brand loyalty

The importance of brand loyalty cannot be denied for the creation and growth of strong brands. Companies are

now millions and billions of amounts on their advertisement campaigns. The more the number of the

competitors in the market the more the companies are trying to get the loyal customer base. Marketing is all

about the human psychology. Marketing actually starts from the customers and ends on the customers. By

advertising the companies want to create strong brand positioning, perception and differentiation of their

products and services in the minds of the customers. Companies should make a blend of all the promotional and

advertising strategies to fit the needs and preferences of the specific target market. Successful companies not

only mean to enhance the sales through advertising campaigns but also to create brand equity and brand loyalty

which leads them towards competitive advantage in this dynamic era.

The basic point behind superior advertising campaign or marketing a product or service it to create brand

awareness among the consumers. The advertising should be aimed to create unique brand image and position of

the brand in the mind of the consumers. This brand image should be definable and memorable because

ultimately this brand image creates awareness among the target market which is actually the first step in creating

brand value and loyalty. This exclusive brand image will then create brand equity. This brand equity is actually

the brand preference which the consumers make after watching the ad and by comparing it with other related

brands. If positive brand image is created by the ad then the brand will be preferred by the consumer creating the

brand equity and leading towards brand loyalty which means repeat purchase of the brand finding it valuable

after the first purchase. If a brand delivers what it promises in the ad then brand loyalty would be created

forming a loyal customer base with repeat purchase intentions regarding the brand. The more the advertising

campaign of the brand would be effective and the more it delivers what it promises in the campaign the more it

would be able to create brand loyalty and brand value which would help to sustain the competitive advantage. If

the company has an effective marketing strategy but it is not fulfilling what has been shown in the ad then one

time purchase is possible but not the repeat purchase. Therefore companies not only try to attract the new

customers by advertising but also to retain the old ones through advertising and fulfilling of promises.

7. Conclusion

In this paper it has been demonstrated that marketing edge can be gained by formulating and executing effective

advertising strategies. Research has proved that advertisers need to create likeable, persuasive ads supporting a

brand personality to influence the buying behaviour of the users. Likeable and persuasive ads will have a direct

impact on the purchasing behaviour and the future intentions regarding the brand. A link between brand

personality dimensions and the human traits have been identified by this research which narrates that buying

behaviour of the consumer will be positive if the ad consists of a unique brand personality relating to their own

exclusive persona. It has also been declared that likeability, persuasiveness and brand personality not only

influence the buying behaviour but eventually lead towards brand loyalty through effective advertising

generating and retaining a huge loyal customer base.


8. Future research

As this paper aims at formulating a conceptual framework for effective advertising leading towards loyal

customer base through positive consumer behaviour therefore this research raises few interesting challenges for

the future researchers. This paper aims at building the conceptual model highlighting the meaning of advertising

effectiveness through creating ad likeability, brand personality and persuasion to influence the purchasing

behaviour of the consumers. The more positive buying behaviour the more a customer will be loyal to the

specific brand. Understanding the significance of these advertising factors leading towards brand loyalty will no

more be exhaustive for the future researchers hence the future researchers might work on the underlying factor

affecting all other advertising dimensions i.e. consumer psychology. For making an effective ad the advertiser

need to understand the psychic of the consumers while putting himself in the shoes of the customer.

Understanding the psychology of the consumers is of great significance as marketing and advertising is all about

understanding the human nature and behaviour to provide the desired outcomes in the form of brand loyalty.

9. Limitations of the study

The ideas proposed in this paper are meaningful in clarifying the significance of advertising factors to create

brand loyalty. Yet at the same time it has some limitations due to which the generalizations should be made with

watchfulness and consideration as the conceptual framework proposed in this study cannot be generalized to all

types of ads. As the type of ad, the medium being used and the product or service being advertised vary, their

likeability factor, the degree of persuasion and significance of brand personality also differs. At the same time

the awareness and background knowledge of the consumers also create different results providing different

outcomes as suggested in this study.

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Table 1

Relation of human personality traits with the brand dimensions

Human personality traits

Self confidence

Dominance

Aggressiveness

Sociability

Defensiveness

Brand personality dimensions

Sincerity

Excitement

Ruggedness

Competence

Sophistication

Social pressures

Personal

attitude

Future

intentions

Buying

behaviour


Figure 1 The link between social pressures, personal attitude, future intentions and consumer buying behaviour

Factors Sources Findings

Likeability

Beil and Bridgewater (1990), Brown (1991), DuPlessis

(1994b), Fishbein and Middlestadt (1995), Robinson

(1997), Smith et al., (2006).

Likeability results from

cognitive viewpoint

providing entertainment

information resulting in

purchase intention

Persuasiveness

Fishbein and Ajzen (1975), Haley et al., (1984), Stewart

and Furse (1986), Pechman and Stewart (1989) Beil and

Bridgewater (1990), Wells (1997).

Ads with Informative

content, salience, cognitive

responses and brand

differentiation strategies are

persuasive

Brand

Personality

Batra, Lehmann and Singh (1993), Aaker (1996; 1997),

Keller (1998), Brassington and Pettitt (2000),

Ouwersloot and Tudorica (2001)

The distinguished brand

identity creating brand image

based on or related to the

human personality traits

Buying

Behaviour

Ajzen and Fishbein (1980), Bagozi and Warshaw

(1990), Allen et al (1992), DuPlessis (1994a), Cooper

and Donald (2001), Ajzen (2002), Morris et al., (2002),

Smith et al., (2006).

Personal attitude, emotions

when encountered with

social pressures create future

intentions relating to the

buying behaviour

Brand

Loyalty

Jacoby and Chestnut (1978), Aaker (1991), Dick and

Basu (1994), Riechheld (1996), Oliver (1999),

Chauhduri and Holbrook (2001).

Brand loyalty results in

marketing gain, market

share, uplifting revenues and

elevation of business

leverage

Table 2

Review of contributions made on the advertising factors.

Advertising

factors

Likability

Persuasion

Brand

personality

Buying Behaviour

Brand Loyalty


Figure 2 The theoretical framework for this paper

Figure 3 Importance of advertising campaigns in generating brand loyalty

Advertisement

campaign

Brand loyalty

Brand image

Brand equity

Brand value