The Impact of Advertising on Customer Satisfaction Essay Example for Free

The Impact of Advertising on guest mirth Essay entranceMobile technology divulged in 1957 after introduction of first fully automatic mobile phone. Prince Philip was the first consumer to design mobile phone in his cable car in 1957.He uses that phone to talk with Queen while he was away on the road. Those days mobile technology has considered high end luxury take down Dukes not allowed to use mobile, but now trends has changed completely , mobile phone considered as necessity of life. It is now development to communicate and keep in associate. (UK hollo History 2010)In Sri lanka Luxembourg based Millicom external cellular was first comp whatever to introduce and launch its helpings in Early 1990s called Celltel, hazarderior in 2007 its re ticked 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 transaction executives and well paid employees afford to talk using mobiles. La ter in 1993 introduction of digital based mobile system by Dialog (Axiata telecommunication) Malaysian based mobile phone company ,which provides much(prenominal) secured and clear serve ups 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 telecom)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, conceive Back GroundMobile Phone technology in Sri Lanka has grown tremendously during last few years. currently in 2013 all five operators providing 3G coverage almost in every main district with claiming of 70 percent area covered with 3G.Mobile technology in Sri Lanka provides wireless voice and data service at very affordable price. It eases day to day business and personal contact around the Island, with 5 operators and thousands of communication towers, now communication can be done easily from any remote village of Sri lanka much(prenominal) as Batticolla or Metropolitan city such as Colombo and Galle. Now everyday millions of raft making billions of calls and using tons of data service by using telecom operators multimillion dollar cornerstone and giving out revenue to operators in return.( global telecommunication union ITU, 2013)Due to high competition from five operators and heavy tax imposed on imported mobile phones, GSM subscribers market in Sri lanka is passing satu rated. Mobile market in Sri Lanka was running with less growth rate during last few years, In 2012 mobile penetration rate r severallyed 91% with Dailog Axiata sharing the large slice of 7 million customers 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 gratification and poor coverage.( International telecommunication union ITU, 2013) Each mobile operatorlooking for more subscribers and increase market share claims best coverage with huge advertisement on mass media. Customer delight is the main tar film for these operators and by personalized paid publicizing and PR they are on the way to create more customer bliss.Table 1- Number of Sri Lankan Mobile Subscribers in MillionsFigure 1, Fixed lines and mobile market Growth in Sri lanka look at Areahovel TelecomHutch Sri Lanka is a mobile operator in Sri Lanka under subsidiary of Hutchison Hong Kong Based Mobile operator. Hutchison telecom not only mobile service provider in Sri lanka they are also providing voice and data 3G services and operating currently around 10 countries worldwide including far east countries Indonesia and Australia , in atomic human activity 63 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 shack Sri lanka spends up to 71 million Hong Kong dollars in network expansion and advertising including improving infrastructure and increase number of communication towers for best coverage, apart from that huge amount also spend on media promotion and advertising including TV commercializeds and billboards on streets.(Hutch set down its Customer 2008)Figure 1 Hutch Advertising Claim most 3G coverageFigure2 Hutch Voice And 3G CoverageHutch Sri Lanka advertisementHutch Sri Lanka deal other players invest millions of 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 much attention due to story of interest in 30 second paid commercial. Famous Sri Lankan cricketer Kumar Sangakkara also earlier committed with Hutch Sri Lanka as a brand ambassador to Hutch for terzetto consecutive years from 2005 to 2008 in which he quotes or so Hutch Between July 2005 and luxurious 2008 I had a contract with Hutch only. I enjoyed my three years working with Hutch and the relation backship was mutually beneficial. (Island Cricket 2005)Public affinity activitiesHutch Sri Lanka also besides paid advertising also involves in PR Public Relation activities to satisfy its consumers and create positive image among its consumers in which employee blood donation get much media attention. In this campaign hutch employees donate their blood to Sri Lanka National Blood Transfusion Service (NBTS) and mention slightly advantages of blood donation in society in which Hutch Sr i 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 rank 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 property of service but lack of marketing personals and wrong choice of advertisement media its re mouldation is going down day by day. Sri Lankan consumers not willing to use its services due to less number of subscribers which force them to pay levy in order to call their family and friends by means of Hutch Sri Lana to other operators or non hutch verse.SWOT ANALYSIS OF HUTCH SRI LANKAStrengthIts communication tower coverage almost throughout all Sri Lanka. Fast Internet speed through 3G technology with m aximum 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 new 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 invasion of Advertising on customer Satisfaction with special reference to Hutch Sri Lanka. Research ObjectivesThe objective of this research is to slenderly analyze least customer satisfaction issue facing by hutch Sri Lanka which pushes back Hutch Sri Lanka at last position in subscribers ranking. Hutch telecom has a potential to get more subscribers through correct advertising with correct selection of adver tising media.The following are the main objectives of the research1-To study 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 usually paid for and usually smooth-tongued in nature somewhat products, services or ideas byidentified sponsors through the various media (Bovee/Arens, 1992, p7).(Deborah F. Spake M Joseph 2009)advertising is one most fast growing perseverance in USA and direct to consumer effective advertising has change the way of advertising industry in USA, where consumers demand is monitor before placing of advertisement, this type of advertising is mostly done by pharmaceutical companies.(P Nelson 1974) Advertising delivers the information of product attribute plus content to the target audience on selected media. Advertisers priority is to create sales through his sum. Often more sales can be achieved by heavy bombardment of sellers message through traditional and mass media. Any trustworthy and honest information deliver to consumer generate more sales and brand equity.(Julie A. Edell M Chapman 1987) Consumers feeling 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 negative feeling creates negative effect. (Charles H Patti 1997)When same seed is cultivated in two different handle with different production 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. Same case apply in advertising if attribute efforts are applied on two different product in which one is high adverti sement 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 legislate 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 just 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 doctor on consumer indecision making process.If advertising message firmly designed and expose to mind of consumer than it went to long term memory of target consumer, such as Jingle song of brand during advertising which create positive affect to change target customer into prospect 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 organization to grow its business and create more revenue.Customer SatisfactionAny person who spend his income to get upright 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 finally consumes the product (Solomon, 2009, p.34.) Any costumer can be pleased, unhappy or reject the product offered by advertiser, sales person or particular brand organization if its attributes does not match with its requirement and demands. Customer satisfaction definition is defined by (Tse Wilson , 1998, p 204 ) consumer after purchase decision to judge the quality of product totally 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 go of human feeling, Marketers in order to measure level 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 satisfa ction 1- Through survey among current consumer of particular product or service in which feedback can be peaceful to measure customer level of customer satisfaction. 2- Through focus group discussion 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 image of their brand, satisfy them and drive 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 authentic 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 essential 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 stupor on profit 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 emotion of consumer.(Gustav puth.P Mostert 1999)) journal of product 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 erudition 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 whim 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 advocator of feelings in understanding advertising effects, Journal of Consumer Research, 14 (December), 412-433 Lavidge, Robert J. and Gary A. Steiner. 1961. A model for predictive measurements of advertising effectiveness. Journal of Marketing. 25(Octob er), 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 entropy 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 satisfacti on 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 join 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 view 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=3e223a11-3ff e-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 Data coverage across Island ,Onlimne usable 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