The Effect of Media Advertising on Consumer Buying Behavior: The Case of Top WaterCompany

Abstract

This study was conducted with an overarching objective to investigate the relationship between media advertisement and consumer buying bahaviour of Top Water Company in Addis Ababa. Three media mediums (Print media, outdoor media and broadcast media) and five socio-economic variables were considered to analyze Consumer buying behaviour. For this purpose, thirteen observed items divided into 3 media outlets and 6 items of customer buying behaviour were used. A cross-sectional data with a total of 270 sample units were used and these samples were analyzed through descriptive analysis and OLS regression. Eight regressors are included in the OLS estimation. Seven of them have been found statistically significant, whereas one regressor is found to be statistically insignificant. That is; sex, education, income, print media, outdoor media, and broadcast media have a positive and significant association with customer buying behaviour. However, one variable (occupation) has found to be negatively related with customer buying behaviour and another variable (age) was found statistically insignificant. Regarding socio-economic variables, found that being a female and customer buying behaviour is positively linked. And, customers who are more educated and engaged in paid-employment works tend to have better buying behaviour than their counterparts. Moreover, the results further report that income of the consumer found to be determinate factor that influence customers buying behaviour. In addition, the results of our investigation verify that from eight proposed hypotheses, seven hypotheses have been accepted while one hypothesis has been rejected as it shows the significance level above 10%. The study concluded that the Company has to continue in using media advertising as it is more effective and striking in informing and persuading people. In the study, high income found to promote a positive buying behaviour. On contrary, less income tended to have negative buying behaviour. Hence, the Company should meet the need of less income customers by producing a product that fit the size of them.