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CHAPTER
TWO

LITERATURE
REVIEW

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2.0 Introduction

Researcher has gathered several literatures form various sources
that will best fit the research paper on the intended topic and hope to well
explain the variables. The dependent and independents variable of this research
were discussed in detail below with appropriate literature review.

2.1 Customer Awareness

The definition of customer awareness is when an individual
understand the right as a customer that concerning about product or services offered
and sold in the market. Customer awareness also referring to the customer
knowledge on particular product or company that enables customer to know the
product itself before purchased. Consumer will get the information on the
product or service when there have product description or necessary information
that they needed. Mostly about product used safety issues and the warnings.
Awareness means one of the understanding and knowledge about something like;
personality, place, product or services.

The study about level of awareness among existing and prospectus customer
of Islamic banking in Pakistans has shown the different suggestion of customer
awareness services utilization decision for personal, social &economic
features of the customer audience, Siguaw and Simpson, 1997. Other studies have
shown that customer awareness and knowledge are very significant to the various
types of effective consumer behaviors. In this study, emphasis on the
importance of the ethical labeling for humanizing business image and the
function to saliently develop the quality into product features so can make
customer aware and also have some knowledge about the aspect that influence
consumer behaviors. (McEachern & Warnaby 2008; Hartlieb & Jones 2009;
Liang & Xianyu 2008; Donoghue & Klerk, 2009; Thomas & Mills 2006;
Chartrand 2005; Coulter et al.2005; and Dommeyer & Gross 2003). 

The study by Dommeyer and Gross (2003), has investigate the role
of customer awareness in the scope of consumer by direct-market. In this
finding, male and younger people have more aware on privacy-related laws and
practices, the results these groups have adopted specific strategies to protect
themselves from this situation.

Awareness is a factor that appears in human automatic process.
There are three process involves environmental features, automatic process and
outcome. For environmental features including situation of people, event and
other can encourage to the automatic process. Then automatic is including the
process as attitudes activation, automatic evaluation, non-conscious mimicry
and stereotype activation. Lastly, outcome is items such as behaviors,
motivations, judgments, decisions and emotions.

Lewis, he reported of the effect when who have opinion that sales
person must ensure attention, maintain interest create awareness and finally
spur the customer to action. In the hierarchy of effect by DAGMAR model. There are
six elements; awareness, knowledge, Liking, Preference, Conviction and
Purchase.  with awareness, moves to
comprehension, then conviction and the ends with action covering different aspects
of consumer’s psychology in terms of Think, Feel and Do.

(Imran et al, 2011) explored the level of awareness of Islamic
banking among customer and found that many customers are satisfied with the
system in the conventional banking and did not have complete awareness on
Islamic banking. Lastly, result of this finding positive association between
customer satisfaction and honesty about Islamic banking and customer awareness.

 

2.2 ADVERTISING

The American Marketing Association defines advertising as “any
paid form of non-personal presentation and promotion of ideas, goods, and
services by an identified sponsor”. Advertising is generally for everyone and
suitable for every ages because it is not directed to any single individual. In
the advertising, sponsor is an example for the manufacturer or producer is
identified as his name and addressed that contained in the advertisements. The
important of the advertising is producer also can promote the idea of each
product, description of the product in terms of quality, design, packaging and
pricing. Advertising consists of all the process of presenting all messages
about product and service.

In order to increase sales of the product or the use of services,
many companies will use advertising method. However, this is not always the
most important objective because it may conflict with the long term profit
goals. For example, Chanel launched as campaign to discourage sales to customer
form lower social gaining. Chanel long term probability relied on sustaining its
upmarket image and it wanted to sacrifice short term sales to safeguard
upmarket brand image (Myers 1989). Advertising have been given up that there is
a positive effect between advertising and sales. From Evan (1988) “Advertising
cannot in and of itself because sales, it can only help to contribute towards
sales success”.

Next, advertising also particularly for government in order to
give some information campaigns to publics. It is social advertising where to
change people’s behavior such as anti-smoking, anti-drugs and healthy eating
campaign. Advertiser believes that when there is often advertising it may be
provide the customer false expectations of what the brand can do for them,
causing cognitive dissonance. Mature advertising markets is the purpose of most
advertising is to remind loyal consumers to buy goods and for remind customer
about the brand’s values and persuading them to keep buying the goods.

The use of mass media in advertising is to increase coverage to
generate awareness. Advertising tries to give information and motivate people
to acknowledge about the product or service. Especially TV advertising which
have most influence tools in deliver the message and to get customer awareness.
For instance for over twenty years Benson & Hedges managed to flout the IBA
code on advertising cigarettes on TV by using brand-name in Hamlet cigar
commercials. The cigar commercials (which permitted on TV) finish with the
phrase “Hamlet, the Mild Cigar, from Benson & Hedges” (Bell in Henry 1986).

 

Advertisements also offer something for buying the product as rewards
to the customer like success or wealth through claims like “win” word in order
to encourage customer to feel good about the product. Judie Lannon has says,
“Brands like Heinz and Kellogg built strong brand franchises that have a
provide to the people; they form habit; they have time”(Lannon 1993). When
researchers go for commercial advertising can affect most interested in direct
effects stimulus material on consumers. Then, academic researcher will be more
concerned with the level of comprehension of advertising and will interpret
consumer differently on the product (Morley 1992).  

Last but not least, advertising has their uniqueness in
demonstration ads, presenter ads, and slide –of-life. Advertising also is uses
for TV program to play the neutral and real of the product or the entertainment
or magical imagery of the host texts, and to associate the discourse of
editorial with the brand. . Through the advertisements provide the template for
understanding, “it is the viewer who must complete the meaningful connections”
(Goldman 1992).

 

2.3 PERSONAL SELLING

Personal selling is a company use people as a sales force to
sell the product after make appointment with customer through face-to-face with
customer. Sales force or sales person is responsible to promote the product
with the entire specialist that they have such as attitudes, knowledge, and
appearance. Their objective is when they have to inform and encourage customer
to buy and persuade them that the product are good and have difference compare
to others and also give trial to the customer. The firms are responsible to
make sales person have the ability in deliver the message to customer and play
the role in sales representative performance.

Together with the competition increase and the technology
advances, organization must provide a same ways in order to adjust the changing
with the business environments. Personal selling context is where sales person
are recognized as the boundary of the company and are expected to be
relationship manager (Kotler 1984). Sales people are not the person just
selling the product anymore but now they provide a good solution for customer
in every problem. Anderson and Dubinsky (2004) discussed the concept of
consultative selling, where a salesperson act as expert and provides solution
to the customer. This role requires salesperson to have technological
orientation to access, analyze and communication information to male strong
relationship with customer, Hunter and Perreault (2007).

The sales department is the income for each company because
from that it can increase the production and revenue generation. Also, the
sales department have fundamental in making sales (ibid.). Supply in modern
market will exceed the demands and adopt a marketing orientation in which
companies “make what we can sell, not sell what we can make” (Donaldsson,
1998). In the early 1990, sales organization will implement selling method that
is not only traditional field sales force. Now, there are approaches such as
independent sales representatives, electronic data interchange and this method
have grater interrelationship among sales person and every member in
organization. New concepts relationship is when two sales people have altered
the role of the sales person, Marshall et al. (1999). Team selling is used more
often with different functions of the selling company relating directly to the
team of buyers (Donaldsson, 1998; Sheth & Sharma, 2008).

The definition of selling is personal or impersonal process
of assisting and persuading a prospective customer to buy a commodity or
product. Selling can be viewed as communication tools and as a process to
attract customer in buying or get knowledge from personal selling. Selling is a
part of marketing mix and one types of promotional tools. Personal selling is
necessary for every company because it must place in good position in order for
customer to know and doing business. The other perspective—viewing selling as a
process—focuses on the purpose of selling (i.e., doing business). Yet these two
dimensions appear to be quite different.

First perceptive counts selling as one of many tools, the
other as focal process in firm’s operation involving many tools to attract
customers. Viewing selling as a process where combination of activities in the
sales process and by whom is actually the product was bringing and have
relationship between seller and buyer. Koschnick (1995), adopts the view of
selling as a process. However, certain aspects should be emphasized to
understand selling compared to the definition suggested by Koschnick (1995). In
line with Koschnick’s (1995) definition, selling is understood as a concept
capturing the broad range of activities performed by a number of individuals
involved in a company’s sales operations

 

2.4 SALES PROMOTION

Sales promotion is one initiative that every organization has to
look more in order to promote and increase sales. Sales promotion is not
specific to reward or gift but some offered from company to the customer. The
company will make something unique for their customer and may be different from
other competitor.

Next, the method on of sales promotion is a diverse collection of
incentive tools. It is a short term because they have to design to stimulate
quicker and grater purchase of specific product or services by consumers or
trade. Sales promotion is one incentive for customer to buy the product and
include tools for consumer promotion, trade promotion and business & sales
force promotion.

The study by Perer, H Leeflang and Dick, R. Witttink (2004) has
proposed the store level regression model that decomposes the sales promotion.
There are three parts of the study; cross brand effect, cross period effect and
category expansion effect. They suggest that one-third of the three parts are
average. A model is proposed separately from category expansion effect onto
cross-store and market expansion. The price discounts are strongly associated
with cross-period effect and display-only are associated with category
expansion effects. While the role of category expansion effect tends to
increase with higher price discounts the role of cross brand and cross-period
effects tend to decrease.

Sales promotion that published in 25 years ago has explained about
order to gain knowledge about the trends in sales promotion. There is a
significant number of articles in the area of planning and evaluation of sales
promotion.

The impact of sales promotional tools such as coupon, price
discount, free sample, bonus pack, trial product and repurchase behavior of
consumers. The relationship between sales promotion and product trial are
examined in order to know the relationship. After this examined, results shows
that price discount, bonus pack, free sample are associated with trial product
and coupon does not shown the significant effect Ndubisi, Oly, Nelson
and Moi, Tung, Chiew (2005).

Lastly, the study from Michel, Caroche et.al.(2003), show the
two dimension promotional tools; coupons and two-for-one promotions. This study
shows the different promotional response and they make highlighted
commonalities and have different use of the process that promotional use in the
study.

 

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