Chapter One: Introduction:

1.1 Background of the research:

Advertising refers the paid and non-personal presentation of the company, brand and products for
promoting brand towards the ultimate customers for creating knowledge, awareness, customer
expertise, brand image and overall influencing customer purchase behaviour in favour of the
company (Bellman et al., 2010). Customer purchase behaviour is influenced by several factors
and companies always focuses on this issue for attaining objectives by using several issues and
several strategies (Bressolles et al., 2007). Advertising is very important in influencing customer
purchase decisions because it helps to use proper mixer of relevant and required communication
tools for gaining or attaining desired response from customers which can ultimately attract them
to make purchase decisions (HANSSENS, 2009). Advertising is effective in increasing message
impacts, customer expertise, customer knowledge, media and audience fragmentation which all
are helping in gaining more customers purchase through influencing their intent (Kennedy et al.,
2014).
Lars (2008) said that customer purchase behaviour and advertising are closely related to each
other and research has been made to find their effectiveness on each other on the basis of Akij
Food & Beverage Ltd. Without advertising effort no business can sustain, research has been
conducted find out the impact of advertising on customer purchase behaviour. Jones and
Ranchhod (2014) thought that because, if customer is not influenced about particular product, he
is not likely to buy the product. Advertising of Akij Food & Beverage Ltd. seems very effective
as it is now showing worth in retaining customers and influencing customer purchase behaviour
but it is not as efficient as Tesco which makes the differences and proper investigation is must to
find the effectiveness and get proper view of advertising of Akij Food & Beverage Ltd. The
effective and efficient advertising strategy is very important to capture the attention of new
potential customers and make existing customers loyal within or across the national border for
any kind of organization especially for Akij Food & Beverage Ltd. (Kennedy et al., 2014).
Akij Food & Beverage Ltd. is one of the largest retail chain stores in Bangladesh with significant
coverage of market share with top 3 position in the Bangladesh market which headquarter is on
West Yorkshire and established in 1949. This is a private subsidiary company which has 568
stores in different location of Bangladesh and overseas market where more than 175,000
employees are working continuously (Akij Food & Beverage Ltd.com).Todays business world is

getting more & more complicated. Customers nowadays enjoy a wide variety of products.
HANSSENS (2009) thought that if any company fails to promote business, then the company is
promoting failure. For organizations like Akij Food & Beverage Ltd., consumer purchasing
behaviour is very important in attaining organizational success. For that, its very crucial to study
what kind of impact advertising can create on consumer purchasing behaviour and to what extent
(KOSTOVA and BLECHER, 2012).

1.2 Rationale of the research:

Advertising is now widely used term in business arena because every organisation is trying to
keep balance and appropriate in its communication process where customer will get same or
parallel message through different paid media which can help them to gain customers attention
and finally gain their purchase decision in favour of them(Jefkins and Yadin, 2010). Virvilait
and Matuleviien(2013) added that in todays business world, many organizations produce
almost similar kinds of products. So, many customers want to know what values they will get
from this. Adverting provides insight about the products and company. For that, its very
important to find the impact of advertising on customer purchasing behaviour and if so to what
extent. As this is era of competition and information, both issues can be tackled through the
proper use of advertising because it can help to cope up with the competitive market structure
and providing required information through message(Noble, 2011). Company needs to get
customer purchase from making it more profitable and sustainable where advertising is big
player. So, proper investigation is needed to get the real situation on the impact of advertising on
the customer purchase behaviour. This research illustrated the impact of advertising effectson
customer purchase behaviour. This research also reflected the effectiveness of advertising in
influencing customer purchase behaviour. Besides, different aspects or elements of advertising
has been analysed by gaininginsight of the customers in regard to influence customer purchase
behaviour (Lars, 2008).

1.3 Problem Statement

Customer purchasing behaviour is one of the much discussed and significant topics in todays
business world. To gain success in business, any organization tries to influence the customer
about that particular company or products more precisely. While formulating business policies,
companies keep customers in a mind so that target customers can easily be influenced to buy
products of that company. While trying to create value through communicating policies with the

customers, companies use advertising effort. The researcher has tried to calculate the magnitude
of impact of advertising on customer purchasing behaviour especially for an organization like
Akij Food & Beverage Ltd.Phillips and McQuarrie(2009) thought that almost every organization
applies advertising efforts with a view to influencing purchasing behaviour of the customer
through creating superior customer value. The researcher has tried to show the advertising efforts
taken by the company and its impact on customer purchasing behaviour.

1.5 Objectives of the research

Broad Objectives:
This prime objective of this research paper is to analyse and investigate the impacts of
advertising on customer purchase behaviour.
Specific Objective:
To achieve the specific objective, the researcher has developed the following specific objectives
to obtain,

To investigate the advertising strategy of Akij Food & Beverage Ltd.

To explore different stages of customer buying behaviour or Akij Food & Beverage Ltd.
To analyse the impact of advertising strategy of Akij Food & Beverage Ltd. on customer

purchase behaviour.
To recommend Akij Food & Beverage Ltd. how it can improve the advertisements and
influence the customer buying behaviour more effectively.

1.6 Questions of the research

The very questions of the research hence:

What are the advertising strategies used by Akij Food & Beverage Ltd. to attract

customers?
What are the different stages related to customer purchase behaviour with this of Akij

Food & Beverage Ltd ?

What is the level of impact of advertising on customer purchase intent Akij Food &

Beverage Ltd?
What are the recommendations for Akij Food & Beverage Ltd. to reshape advertising
strategy in order to influence customer purchase behaviour more effectively?

1.7 Research hypotheses

The researcher has developed the following hypotheses based on the market information:
H0: There is no positive impact of Advertising on customer purchase behaviour of Akij Food &
Beverage Ltd. H1: There is a positive impact of Advertising on customer purchase behaviour of
Akij Food & Beverage Ltd..

1.8 Scope of the research:

This research has been prepared on the basis of the advertising and customer buying behaviour;
here the researcher discussed these issues thoroughly for getting full insight of them. This
research revealed different aspects of the advertising and its importance on the perspective of
Akij Food & Beverage Ltd. For ensuring success of any company, understanding customer
decision making and influencing customer purchase behaviour is very crucial. The researcher has
discussed various advertising strategy and possible impact of the strategy on customer purchase
behaviour. Research has been conducted to find out the magnitude of impact of advertising
strategy on customer purchase behaviour. This research also showed how customers make their
purchase decision and how organisation can influence the purchase behaviour to get the purchase
in favour of it. The effectiveness of advertisement strategy of Akij Food & Beverage Ltd. on
customer purchase behaviour has been discussed with proper analysis and proper investigation.
Then required recommendation has been made to improve the current situation to make it more
effective.

1.9 Structure of the Research

The researcher will follow the following structure for completion of research:
Research

Chapter Name

Items to be covered

Chapter
Chapter one

Introduction

In this section, both background and rationale of

the research have been analysed by showing
impact of advertising on customer purchasing
behaviour. Then, the objective and question of
the research have been shown after discussing
aim and problem statement. Finally, the
researcher showed research hypothesis and

Chapter two

Literature review

scope of the research.

Different theories and practical ideas related to
the

impact

of

advertising

on

customer

purchasing behaviour. The researcher will

describe advertising tools theoretically which
are used in influencing customer purchasing
Chapter three

Methodology

behaviour.
The research philosophy, module, approach and
method will be clarified properly. Sampling
techniques and sample demographic tools will
be discussed too. Then, the researcher will
analyse tools and techniques for data analysis.
Limitations of the research will also be made

Chapter four

Data Analysis

clear.
The collected data will be analysed and
discussed in this section under the each
dimension or components of the research frame
work. Finally the findings of the data and
research will be compared with the previous

Chapter five

Conclusion
recommendations

research in the same research field.

and The
researcher
will
provide

some

recommendations in this section for the firm to

make a significant impact on customer purchase
behaviour through effective advertising strategy.