The Impact of Advertising on Customer Satisfaction Essay Example for Free

The Impact of publicise on client Satisfaction Es secernateIntroductionMobile technology introduced in 1957 aft(prenominal) introduction of beginning(a) amply automatic rambling surround. Prince Philip was the first consumer to use mobile yell in his car in 1957.He uses that phone to talk with Queen while he was away on the road. Those days mobile technology has considered heights end luxury even Dukes not allowed to use mobile, but now trends has changed completely , mobile phone considered as necessity of career. It is now exploitation to communicate and keep in touch. (UK Telephone History 2010)In Sri lanka Luxembourg based Millicom International cellular was first company to introduce and erect its function in Early 1990s called Celltel, afterward in 2007 its rebranded as Tigo .Current Etisalat is exist after acquisition of Tigo by Etisalat UAE in 2010.Those days mobiles was used by higher market segment , only(prenominal) line of credit executives and well gi ve employees afford to talk using mobiles. Later in 1993 introduction of digital based mobile governance by Dialog (Axiata Telecom) Malaysian based mobile phone company ,which translates to a greater extent secured and clear services than previous analog mobile phones with Sms ( Short Message service) under GSM technology using 2G and 2.5G. In 2004 Mobitel (Subsidiary of Sri lanka telecommunication)was launched and later introduced first ever 3G services not only in Sri lanka in whole south Asia which ranks Sri lanka first country to launch 3G services, meditate Back GroundMobile Phone technology in Sri Lanka has boastful tremendously during last few days. currently in 2013 all five operators providing 3G insurance insurance reportage almost in e truly main district with claiming of 70 sh are area covered with 3G.Mobile technology in Sri Lanka provides tuner voice and data service at very affordable price. It eases day to day business and ain contact around the Island, wit h 5 operators and thousands of communication broods, now communication lavatory be done easy from any remote village of Sri lankasuch as Batticolla or Metropolitan city such as capital of Sri Lanka and Galle. Now everyday millions of people ma fagot billions of calls and using tons of data service by using telecom operators multimillion clam infrastructure and giving out revenue to operators in return.( International telecommunication northward ITU, 2013)Due to high competition from five operators and heavy tax imposed on imported mobile phones, GSM subscribers market in Sri lanka is highly satu governd. Mobile market in Sri Lanka was running with less growth rate during last few years, In 2012 mobile penetration rate reached 91% with Dailog Axiata sharing the bountiful cold shoulder of 7 million clients around 40 percent of total mobile subscribers followed by Etisalat Sri Lanka and Mobitel with 20 percent of market share each operator with more than 4 million subscribers and than Comes hovel Sri Lanka and Airtel with less than 15 percent of market share with less customer delight and poor coverage.( International telecommunication confederation ITU, 2013) Each mobile operatorlooking for more subscribers and increase market share claims best coverage with huge publicizing on mass media. client satisfaction is the main target for these operators and by modify compensable ad and PR they are on the way to wee more customer satisfaction. instrument panel 1- Number of Sri Lankan Mobile Subscribers in Millions foretell 1, Fixed lines and mobile market Growth in Sri lankaStudy Area sea chantey Telecom chanty Sri Lanka is a mobile operator in Sri Lanka under supplementary of Hutchison Hong Kong Based Mobile operator. Hutchison telecom not only mobile service provider in Sri lanka they are to a fault providing voice and data 3G services and operating currently around 10 countries worldwide including utmost east countries Indonesia and Australia , in Eur ope they are in Italy, Sewden, Denmark, Austria, Ireland and United Kingdom.It was launched in 2004 with the mission of Island wide coverage in a near future. Now Hutch cover more than 70 % Island wide coverage approximately, It claims first operator in Sri Lanka who offers most district covers all around Sri Lanka under 3G coverage. Hutch Sri Lanka provide voice and data service to 1 Million Subscribers around the Island (Hutch.lk). After its launch hut Sri lanka spends up to 71 million Hong Kong dollars in network expansion and announce including improving infrastructure and increase identification number of communication towers for best coverage, apart from that huge amount excessively spend on media promotion and advertising including TV commercials and billboards on streets.(Hutch lose its Customer 2008)Figure 1 Hutch publicizing Claim some 3G coverageFigure2 Hutch Voice And 3G CoverageHutch Sri Lanka advertisementHutch Sri Lanka like other players perpetrate millions o f Sri Lankan rupees in advertising , in which they play jingles to attract its customers and increase their satisfaction in brand. Among other ads Kiyanaa Kiyanna ( sayit) was the first TV commercial of Hutch Sri Lanka , which get often attention imputable to story of reside in 30 second paid commercial. Famous Sri Lankan cricketer Kumar Sangakkara also earlier attached with Hutch Sri Lanka as a brand ambassador to Hutch for three consecutive years from 2005 to 2008 in which he quotes near Hutch Between July 2005 and August 2008 I had a contract with Hutch only. I enjoyed my three years working with Hutch and the relationship was mutually beneficial. (Island Cricket 2005)Public Relation activitiesHutch Sri Lanka also besides paid advertising also involves in PR Public Relation activities to satisfy its consumers and spend a penny positive image among its consumers in which employee blood share get much media attention. In this campaign hutch employees donate their blood to Sri Lanka National Blood Transfusion Service (NBTS) and mention intimately advantages of blood donation in society in which Hutch Sri Lanka encourage others to donate their blood often to saves life.( Hutch saves life 2010)Least Customer SatisfactionHutch telecom Sri Lanka still didnt achieve its target of 1 million subscribers, currently it comprises last number in customer satisfaction ranking with little subscribers.In 2010 after launch of Etisalat Lanka and Airtel bharti limited .Hutch current ranking comes at number 5 in last among its competitors operators. Hutch Sri Lanka has better infrastructure and quality of service but lack of merchandising psycheals and wrong choice of advertisement media its reputation is going down day by day. Sri Lankan consumers not willing to use its services delinquent to less number of subscribers which force them to pay levy in order to call their family and friends through and through Hutch Sri Lana to other operators or non hutch numbers.SWOT A NALYSIS OF HUTCH SRI LANKAStrengthIts communication tower coverage almost throughout all Sri Lanka. Fast Internet speed through 3G technology with upper limit coverage area covered with 3G compared with competitors, such as Jaffna first covered by 3G by Hutch Sri Lanka.WeaknessLess brand exposure among its consumersLow or weak signal coverage in remote areas.OpportunitiesHutch couple sim, which allow call between two numbers at very cheap rate, unique service by hutch Sri Lanka Lowest IDD call rates which attract bleak customersThreatDeclining in number of subscribers due to poor coverageMobile market is saturated due to five competitors in Market.Research Objectives and Research QuestionsThe topic under consideration is The impact of Advertising on customer Satisfaction with special reference to Hutch Sri Lanka. Research ObjectivesThe objective of this explore is to critically break apart least customer satisfaction issue facing by hutch Sri Lanka which pushes back Hutch Sri Lan ka at last position in subscribers ranking. Hutch telecom has a say-so to get more subscribers through correct advertising with correct selection of advertising media.The following are the main objectives of the research1-To essay the concept of advertising2-To Study the concept of Customer Satisfaction3-To analyze the Relationship between Advertising and customer SatisfactionResearch Question1-What is advertising?2-What is the customer satisfaction?3-What is the relation between Advertising and Customer Satisfaction?Literature ReviewAdvertisingAdvertising is the non personal communication of information commonly paid for and usually persuasive in nature about products, services or ideas by determine sponsors through the various media (Bovee/Arens, 1992, p7).(Deborah F. Spake M Joseph 2009)advertising is one most fast growing industry in ground forces and direct to consumer powerful advertising has change the way of advertising industry in USA, where consumers demand is moni toring device sooner placing of advertisement, this type of advertising is mostly done by pharmaceutical companies.(P Nelson 1974) Advertising delivers the information of product attribute plus depicted object to the target audience on selected media. crusaders priority is to force gross revenue through his message. Often more sales can be achieved by heavy stamp battery of sellers message through traditional and mass media. each trustworthy and honest information deliver to consumer generate more sales and brand equity.(Julie A. Edell M Chapman 1987) Consumers whole step about any paid advertising create a lot of affect on sales. If advertiser convey the message which create positive feeling in consumer mindset than convincing potential consumer becomes easy else prohibit feeling creates oppose effect. (Charles H Patti 1997)When same seed is cultivated in two antithetical fields with different ware of crops or fertility rate even under same climate , one field with more average fertility rate will always give more crops compare with other field. alike case apply in advertising if quality efforts are applied on two different product in which one is high advertisement opportunities and while other is low than revenue generated and sales will differs from each other. He further elaborated that advertising spend should be high only on those products in which product life cycle stage not reach its maturity state. Advertise product and service should be have some uniqueness among its competitors and there f should be large size of potential consumer in that geographical area where product to be advertised.(Robert J L Gary A 1961)In changing environment advertising purpose is to create sales , advertisers put their product or service on advertise to create sales in steps, in which in first is comely share information about the product information and create awareness of the product after the launch than second step which comes after some period of time is an extreme buy now ad , design to create immediate sales. (Nikolaos K P1989) The current involvement in advertising consumer products is the Attributes of Advertising message has put great impact on consumer indecision making process.If advertising message securely designed and expose to mind of consumer than it went to long term memory of target consumer, such as doggerel song of brand during advertising which create positive affect to change target customer into opinion customers.Advertising is the main source of marketers to introduce their product and services in any geographical market. Electronic media has much considerable progress to help marketers to advertise their products at reasonable cost. Advertisement message reach millions of potential customers which help composition to grow its business and create more revenue.Customer SatisfactionAny person who spend his income to get good or services through any organization is called as customer or a customer is a person who does the buying of the products and the consumer is the person who ultimately consumes the product (Solomon, 2009, p.34.) Any costumer can be pleased, unhappy or reject the product offered by advertiser, sales person or detail branded organization if its attributes does not match with its requirement and demands. Customer satisfaction comment is defined by (Tse Wilson , 1998, p 204 ) consumer after purchase decision to judge the quality of product completely depend on consumer choice (Fornell, 1992, p.11) After cash transaction and receiving of product , customer satisfaction can be called as post choice evaluation judgment of the consumer after consume the product at very first time(Oliver,1980)According to Schiffman Karun (2004) Any individual consumer feel and look about any particular products or service which he/she judge his expectation after buying the product. Customer satisfaction is also described as the result of human feeling, Marketers in order to beatnik lev el of customer satisfaction they have to measure feeling of their customers after buying their product.(Levy,p.6NBRI,2009). Levy (2009, p.6) mention three type of criteria to measure customer satisfaction 1- Through survey among current consumer of particular product or service in which feedback can be collected to measure customer level of customer satisfaction. 2- Through focus pigeonholing intervention in which expert moderator can decide the level of costumer satisfaction after discussion with consumers. 3- Reading blogs and direct contact with customers.Satisfied customer is customer who repeats purchase of the product and also refers helps organization to get more customers by words of mouth. Customer satisfaction increases the business of organization, where dissatisfied customer puts negative effect on company image and brand. Relationship between advertising and Customer SatisfactionMarketers spends millions of dollar every year in advertising budget to create favorable i mage of their brand, satisfy them and get them to purchase. satisfaction makes advertising more affected as satisfied customers pay more attention in advertising of product whom they satisfies after previous purchase(E W Anderson 1994) Advertising creates a certain type of feeling in consumer mind which leads to consumer satisfaction of that particular brand in consumer mind.(Ew Anderson 1993) .Customer satisfaction are more meaty aspect in any trade as at the end , customer is always the king because they create revenue for the organization.Customer satisfaction or dissatisfaction have direct impact on value of any organization.(Naresh K Malhotra 2007) 2nd edition Marketing research p 92-107.Advertisers should understand the consumer behavior before start work on any advertising campaign, as advertising only be effective and satisfy its consumer if its design to get attention of target market by touch the internal perception of consumer.(Gustav puth.P Mostert 1999)) diary of p roduct and brand management, consumers perception of mentioned product and brand attribute in magazine advertising.)ReferencesAnderson, E.W, Sulivan m.W (1993) The Antecedents and consequences of Customer Satisfaction for firms, Marketing science 2, 2 ( spring), pp 125-143Anderson, E.W,Fornell, C, Lehmann, DR (1994) Customer Satisfaction Market share and profitability Findings from Sweden, Journal of Marketing, 58, 53-66 Bovee, C.l and Arens, W.F, (1992), Contemporary advertising, 4th ed,, Richard P,Irwin Inc,, Homewood,IL. Deborah F Spake, Mathew Joseph, R Zachary Finney. (2009). Journal of Medical Marketing Consumer opinion and effectiveness of direct-to-consumer advertising 21-28 Dr Charles H Patti 1997, University of Sheffield Evaluating the role of advertising 32-35 Fornell,. (1992). A National Customer Satisfaction barometer The Swedish Expereience.Journal of Marketing, 56, 6-21 Julie A and Marian Chapman Burke (1987), The power of feelings in understanding advertising effec ts, Journal of Consumer Research, 14 (December), 412-433 Lavidge, Robert J. and Gary A. Steiner. 1961. A sticker for predictive measurements of advertising effectiveness. Journal of Marketing. 25(October), 59-62. Micheal.R Solomon (2009).Consumer behaviour, buying having and being, 8th edition, Pearson education, inc Naresh K Malhotra 2007 A critical view of marketing research of diffusion of new products 2nd edition Marketing research 92-107. Nikolaos K. Papavassiliou, (1989) The Involvement Model in Advertising Consumer Products Abroad, European Journal of Marketing, 23 ,1 Oliver,Richard L.1980 A Cognitive model of the antecedents and consequences of Satisfaction Decisions. Journal of Makreting research 17 (September)p 460-469 Phillip Nelson 1974, Journal of economy University of Chicago Advertising as Information 1 , 2-5 Puth, G, Mostert, P, Ewing, M (1999) Consumer perceptions of mentioned product attributes in magazine advertising. Journal of Product Brand Management, 8 , 61-72 Schiffman,L.G and LazarKanuk, L.(2004) Consumer Behaviour. 8th edition. New Jersy Pearson education Inc, Upper Saddle RiverTitus Tse, David K, Petter, C. Wilton. (1998). Models of Consumer satisfaction An Extension Journal of Marketing Research, 25 .204-212 UK telephone history (2010) British telephone history online available fromhttp//www.britishtelephones.com/histuk.htm 10th January 2013Hutch staff blood Donation (2010) Hutch staff meet save a life online available From http//www.ceylontoday.lk/22-19553-news-detail-hutch-staff-joins-save-a-life.htm 4th January 2013International telecommunication union ITU, (2013) Facts and figure Sri Lanka mobile telecom online available From http//www.itu.int/ITU-D/ict/newslog/default.aspx 6th January 2013NBRI (2009) Customer Survey White paperonline available From http//www.nbrii.com/customer-surveys/Measure_Satisfaction.html November 27th, 2012)Hutch Lose its Customer (2008) Lanka Business Online report online available From http//www. lankabusinessonline.com/fullstory.php?nid=728615133 5th December2012Piet Levy, (2009,),Advertising and Customer Satisfaction Online available From http//web.ebscohost.com/ehost/pdf?vid=5hid=12sid=3e223a11-3ffe-4951-b092-735c449be46%40sessionmgr11 November 5th, 2012)Island Cricket 2005, Sangakkara Quits Hutch online available From http//www.islandcricket.lk/blogs/hilal/sangakkara-hutch-or-airtel November 22th 2012)Figure 1, Fixed lines and mobile market Growth in Sri lankaonline available from http//www.lankabusinessonline.com/fullstory.php?nid=1160489410 5th January 2013Figure 2, Hutch Voice and info coverage across Island ,Onlimne Available from http//srilanka-promotions.com) http//srilanka-promotions.com/telecoms/hutch-sri-lanka-3g-coverage-map-23-may-2012-85/attachment/hutch-23-may-2012/ 2nd January 2013Figure 3, Hutch Advertising Claim about 3G Coverageonline Available from http//www.hutch.lk/aboutus.htm 2nd January 2013 Tables* Table 1-* Number of Sri Lankan Mobile Subscribers in Millions