The Role of Price of Dasani Water and Advertising on the Consumer Buying Decision in Tanzania

The Role of Price of Dasani Water and Advertising on the Consumer Buying Decision in Tanzania

Najat Naaman Marshed^*, Dr. Crispin Mbogo

Faculty of Business and Economics, St. Augustine University of Tanzania

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.802146

Received: 11 January 2024; Revised: 13 February 2024; Accepted: 20 February 2024; Published: 21 March 2024

ABSTRACT

The purpose of this study is to assess the role of the price of commodities and advertising on consumer buying, specifically on Dasani water in Tanzania. The study was conducted in Dar es Salaam and a total of 336 respondents. The study used a descriptive design, where Primary data were collected through questionnaires while secondary data were collected through reviewing various sources such as documents from the internet.  Both quantitative and qualitative methods were used to analyse the collected data. The analysis of data obtained through questionnaires was cleared, coded, and analysed with the assistance of Statistical Package for Social Science (SPSS). The findings indicated that, price of Dasani water and advertising has a direct influence on consumer buying decisions as it creates customer awareness and buying habits of Dasani water. Further, the study shows that television and radio advertisements appeared as an influence factor over print and online advertisements. The study recommends that policymakers and companies seeking to make the most from advertising products through the media, especially Television, Radio and online advertisement. Online advertisement has begun to gain the trust of consumers in buying and selling products online, also it is low-priced, faster, easier and accessible worldwide.

Key words: Price, Advertisement, Consumer’s Buying Decisions

INTRODUCTION

In a globalized world, advertising has a huge and crucial role in promoting products and services. With the rapid technological change and influence of media, advertising has become an inevitable part of the promotion mix. Advertisement is used to inform new customers, announce a new product and programs can educate people and have a huge influence on consumer decision making. Also, the advertisements can be used to inform the existing customer about their connectivity to their products and services support brand building and lastly create brand loyalty (Yakup & Jablonsk, 2012).

Further, advertising is a component of promotional mix, which is used to form awareness about products and services for influencing purchase decisions. The promotional mix comprises the 4p’s of the marketing mix, i.e., Product, Price, Place, and Promotion (Mohamed, Abdul, and Mohideen, 2018). Sellers use these kinds of tools for communication purposes and evolved in ancient times. People used different types of symbols or codes for the promotion of the products and services for inviting consumers.

In the present day, technological changes serve as the underlying framework that facilitates the seamless integration of advertising across diverse platforms. Irrespective of the scale and operational mode of a business, be it online or offline, the identification of an effective advertising strategy may enhance the potential for profitability. This is all commanded by consumer buying decisions. The term consumer buying decision is defined as the behaviour revealed in searching for, purchasing for, using, evaluating, and disposing of products and services that expect will satisfy their needs (Yakup & Jablonsk, 2012).

Mohamed, Abdul, and Mohideen (2018) argue that today, nobody can escape from the wide influence of mass media (newspapers, television, advertising, videos, films, billboards music, movies, magazines, and the internet), etc. Among all marketing tools, advertising is distinguished by its continuing impact on the observer’s mind, as its impact is broader.

Broadcast advertising is a very popular advertising medium that constitutes several branches, such as television, radio, or the Internet (Moshood, 2014). Television advertisements have been very popular ever since they were introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and, of course, the popularity of the television channel on which the advertisement will be broadcast (Moshood, 2014).

Furthermore, television advertising is the most effective means of communication. This is because it has an audio-visual impact (Kotler and Keller, 2016). With catchy slogans, song and dance sequences, and famous personalities exhibiting products. TV advertising has a lasting impact. With the variety of channels and programmers, advertisers have many choices to select the channel and time to advertise. With regional channels coming up, anyone can watch advertisements and understand them by seeing and hearing them.

The price of a product is divided into three categories: fair price, fixed price, and relative price. Fair price refers to the adjustment of a price that offers a combination of quality and appropriate services at a reasonable price (Kotler and Keller, 2016). A fixed price is a set price for all buyers. Relative price is the price set by the quality and service provided by the seller (Kotler and Keller, 2016).

In Tanzania, the soft drinks industry, including drinking water is perhaps one of the fastest growing sectors of the economy, and there is fierce competition within the sector made up of various industries, such as Coca-cola Kwanza (T) Limited, Bonite Bottlers Limited, SBC (T) Limited (producers of Pepsi product), Azam Soft Drinks, and Sayona Soft Drinks Limited (just to name a few).

Further, in 2020, nearly 89 percent of Tanzania’s urban population used at least basic water drinking services. Among Tanzanians living in rural areas, access to drinking water was more limited, with the coverage reaching some 45 percent of the population. Compared to 2015, access to drinking water in the country improved (Cowling, 2024). The bottled drinking water available in Tanzania includes Kilimanjaro drinking water, hill, masafi, afya, uhai, Dasani, etc.

However, companies across the world, including those in Tanzania, are seen spending so much money in advertisements hoping to increase the sales volume of their products, particularly by influencing consumers’ buying decisions. Coca Cola Kwanza Ltd. is a Tanzanian-based beverage company that directs quite a good portion of its budget into advertising for the purpose of influencing consumers in Dar es Salaam City to buy its bottled water, Dasani, among other products.

Despite Coca Cola Kwanza’s Dasani water advertising campaign, little is known about how effective the campaign has managed to influence the buying decisions of the consumers in Tanzania.

A marketer wants to prioritize the effects of the advertisement on a different media platform on consumer decision. Currently, the advertising cost of each media is very high and unsuitable media strategies can be a costly affair. To overcome such overheads, it is important for brand managers to understand various media advertisements. A successful media planning by understanding the impact of media advertisements on Consumer decision can be of crucial help to brand managers.

Ranjbarian, Shaemi & Jolodar (2011) revealed that TV advertisements affect attention, interest, and desire while Nysveen & Breivik (2005) stated that the impacts of radio ads are less on changing consumers’ attitudes and behaviour. This study therefore aims to determine how effectively advertisements influence the buying decisions of consumers in Dar es Salaam, Tanzania. Specifically, the study aims to assess the influence of price advertising on motivating purchasing decision of Dasani water, to assess the influence of price advertising of Dasani water on buying habits and to examine if the price advertising can influence customer to shift from using Dasani water brand.

LITERATURE REVIEW

2.1 Definition of Key Terms

Concept of Advertising

Advertising is a form of communication intended to convince an audience (viewers, readers, or listeners) to purchase or take action on products, information, or services (Arens, 2005). Typically, it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. Advertising typically attempts to persuade potential customers to purchase or consume more of a particular brand of product or service.

Buying decision

Moskal and Leydens (2000) define consumer buying decisions as the total of a consumer’s attitudes, preferences and intentions regarding the consumer’s behaviour in the marketplace when purchasing a product or service. Purchase decisions made by the customer can occur when the customer has received service from the provision of services, and then the customer can feel satisfaction or dissatisfaction; therefore, the purchase decision can still be related to customer satisfaction. In making a purchase decision that is with the stability of a product, the habit of buying products, providing recommendations to others, and making repeat purchases.

Price

Price becomes one of the most important elements in determining the market and profit of a company. Price is the element of the marketing mix that generates income or revenue for the company, while the other three elements of the marketing mix (product, distribution, and promotion) cause costs (expenses). Besides that, price is an element of the marketing mix that is flexible, meaning that it can be changed quickly. In other than that, prices also indirectly affect costs, because the quantity sold affects the costs incurred. Price is often used as an indicator of value if the price is connected with the benefits which are perceived by consumers for a product or service. Besides the prices are flexible where at any time it can change according to time and place (Johansyah and Kaniawati, 2020).

2.2 Theoretical Review  

The study was guided by the theory of planned behaviour. Ajzen & Schmidt (2020) explained the theory of planned behaviour by stating three kinds of considerations: beliefs about the likely consequences of the behaviour (behaviour beliefs), beliefs about the normative expectations of others (normative beliefs), and beliefs about the presence of factors that may facilitate or impede the performance of the behaviour (control beliefs). Furthermore, the effects of attitude towards the behaviour and subjective norms on intention are moderated by the perception of behaviour control. The more favourable the attitude and subjective norm and the greater the perceived control, the stronger the person’s intention to perform the behaviour in question.

In the case of buying decision, interventions such as a Dasani water price advertisement are designed to change buying decisions directed at one or more of its determinants: attitude, subjective norms, or perceptions of behavioural control. Changes in this factor should produce changes in buying intentions and, given adequate control over the buying Dasani drinking water, the new intentions should be carried out under appropriate circumstances. Because attitudes, subjective norms, and perceived behavioural control are assumed to be based on corresponding sets of beliefs (behaviour, normative and control), the advertisement must try to change the beliefs that, according to the theory, ultimately guide the consumer buying decisions.

The choice of the planned behaviour theory to be used in this proposed study is because the proposition of the theory is related to the objectives of the study and the behaviour/ intention intended are prepared with message if someone here it can decide to buy Dasani water. This proposed study intends to explore the role of price of Dasani water and advertising on consumer buying decisions in Tanzania.

2.3 Empirical Literature Review

The study on influence of product price on consumers’ purchasing decisions by Albari and Safitri (2019). Consumers consider various factors when making purchasing decisions. In the literature, important factors that influence the purchasing decision are discussed by using the product price factor. The price of the product is divided into three categories: fair price, fixed price, and relative price. In addition, brand image variables are also considered mediators between price and consumers’ purchasing decisions and are viewed as important factors affecting the latter. Data were obtained by using a questionnaire. After instrument testing and quality testing, the data were then analysed by using regression analysis and the discriminant model. The discriminant analysis results show that brand image and price (fair price and fixed price) simultaneously have a partial and positive effect on purchasing decisions. The results of multiple linear regression analyses show that price (fixed price and relative price) simultaneously have a partial and positive effect on brand image.

Furthermore, Brata et al. (2017) studied the influence of quality products, price, promotion, and location on product purchase decisions. This study aims to examine and analyse the effect of the variable quality of product, price, promotion, and location on purchase decision product PT Jaya Swarasa Agung in Central Jakarta both partially or simultaneously. This statistical parametric study adopted a method that used multiple linear regression in which the data were processed by the SPSS program. The results showed that the quality of the product, price, promotion, and location influence the purchasing decision, either partially or simultaneously.

The Impact of Price and Quality Product on Consumers’ Purchasing Decisions in Kaos Anak for Kids’ (Kafk) Clothing Shop by Johansyah and Kaniawati (2020). This research revealed that there is a gap between price and product quality that impacts consumer purchasing decisions in children’s clothing. The factors tested in this research are price and product quality as independent variables and purchasing decision as the dependent variable. The results showed that the two independent variables, namely, price and product quality, had an effect on determining the dependent variable, namely, consumer purchasing decisions in the children’s clothing shop KaosAnak for Kids.

Chen et al. (2008) maintain that informational advertisements provide awareness to consumers so that they will prefer to buy desired goods. Bashir and Malik (2009) have the opinion that consumers are price-conscious, which is currently common in our society. People are almost behaving rationally due to the benefits of cost. And price is the only marketing component that directly influences company profits.

Furthermore, Brata et al. (2017) studied the influence of quality products, price, promotion, and location on product purchase decisions. This study aims to examine and analyse the effect of the variable quality of product, price, promotion, and location on the purchase decision product PT Jaya Swarasa Agung in Central Jakarta both partially or simultaneously.

Research by Komaladewi and Indika (2017) indicated that most respondents consider price as an important factor influencing their purchase decisions, similar to the finding of Djatmiko and Pradana (2015) and Termsnguan wong (2015).

Another study conducted by Muhammad & Alkubise (2014) on the impact of consumer perception and advertisement on consumer buying behaviour. The study was conducted in Pakistan and a total of 150 questionnaires were distributed to randomly sampled respondents. The result of this study found that advertisement had strong positive impact on consumer buying decisions. The study also show that quality of advertisement and positive perception can really play virtual role in improving consumer buying decision

The study done by Shabbir et al. (2012) in Pakistan used a quantitative study on the relationship between effective advertisement and consumers’ purchasing behaviour. The sample of 200 respondents were selected using a probability sampling. The results of study showed a positive and significant correlation between advertisement (TV, the internet and radio) and consumer buying decision. Likewise, Rasool et al. (2012), assessed the relationship between advertisement modes and consumers’ purchasing decision in Lahore city, Pakistan were Random sampling was employed to draw 80 respondents; and used a descriptive, z-test and chi-square tests in data analysis. The findings showed that the Internet (or electronic media) was appeared to be a proper method for fast awareness-creation.

2.4 Research Gap

From the above-reviewed literature, there is no doubt that advertisements are important for consumers’ buying behaviour. However, to researcher knowledge, most of the reviewed literature was not conducted in Tanzania, particularly in this conducted study. Furthermore, other studies focused on the influence of quality products, price, promotion, and location on product purchase decisions, factor influencing purchase decisions, and Impact of Price and Quality Product on Consumers’ Purchasing Decision. Therefore, this study addressed this knowledge gap by focusing on the role of price of Dasani water and advertising on consumer buying decisions in Tanzania.

2.5 Conceptual Framework

The conceptual framework of the study helps the researcher to show the relationship between variables that will be analysed (Creswell, 2013). The conceptual framework describes the independent variables and dependent variables. In this study describe four independent variables such as Newspapers, Social Media, Television, Radio and price while consumer buying decisions stand as dependent variable. It is expected that independent variables will have positive influence on the consumer behaviour decision.

Figure 1: Conceptual Framework of Independent Variables and Dependent Variables.

Independent variables                                        Dependent variable

Source: Constructed from Literature Review

RESEARCH METHODOLOGY

Data were collected from 336 respondents in Dar es Salaam city (Kinondoni, Ilala, Kigamboni, Ubungo, and Temeke) covering the Dar es Salaam residents. The study used both primary and secondary data collection methods. The collection of primary data involved gathering first-hand information and the use of secondary data sources such as documents and published or internet sources. The questionnaire method was used to generate detailed information from government officers, shopkeepers, clinic staff, school teachers, university students, street vendors, housewives, and many others from all districts in Dar es Salaam. Further, this study employed a random sampling technique in which every individual had an equal chance of being selected.

The analysis of data obtained through questionnaires were cleared, coded, and analysed with the assistance of Statistical Package for Social Science (SPSS).  The use of SPSS depend on the nature of the information collected. Structured questions generate mostly quantifiable information, hence making the use of SPSS more appropriate, and the output is presented in the form of frequencies, percentages, and tables. While thematic content analysis is useful where the nature of data is mainly narratives concerning the question how and why? (Kothari, 2004).

FINDINGS AND DISCUSSIONS

4.1 Findings

The findings shown in Table 1 shows that 147 (43.8%) obtained Dasani water information through television, 56 (16.7%) from newspapers, 20 (6%) from social media, and 113 (33.6%) from radio. However, most respondents were watching TV rarely. Moreover, respondents argue that, TV advertisement helps to keep the name and price of the brand at the back of the mind and is a stronger influencer for a customer to purchase, and TV advertisement affects customers’ opinions about the product. Furthermore, respondents sometimes rely on advertisements to purchase if the information is rational to them.

Table 1: Source of Information

Source: Field data, 2023

The influence of price of Dasani water and advertising on the consumer’s buying decision of Coca Cola Kwanza Dasani water in Dar es Salaam, based on the following: if the price of drinking water encourages customers to purchase Dasani water, if the price of drinking water influences the buying habits of customers, if price motivates the customer to shift from drinking one water brand to another brand as presented below;

Drinking Water Price Encourages to Purchase

The study analysed if the price of drinking water encourages customers to purchase Dasani water. Table 1 shows that 194 (57.7%) said the price of drinking water motivates them to purchase, as they are looking for one with the lowest price, while 142 (42.3%) argue that the price of drinking water does not encourage them to buy Dasani water because they are influenced by the availability of drinking water in a certain location.

Table 1: Drinking Water Price Encourage to Purchase

Source: Field data, 2023

Drinking Water Price Influences Buying Habits

The study analysed if the price of drinking water influences the buying habits of customers to purchase Dasani water. Table 2 shows that 174 (51.8%) said the price of drinking water influences the buying habits of water, while 162 (48.2%) argue that price does not influence the buying habits of water.

Table 2: Drinking Water Price Influence Buying Habits

Source: Field data, 2023

Drinking Water Prices motivated to shift from Different Water Brands

The study analysed if the price motivated customers to shift from drinking one water brand to drinking another brand. Table 3 shows that 196 (58.3%) declared that they have a tendency of shifting from using one water brand to another due to the price as always looking the cheapest one, and 140 (41.7%) said that the price of drinking water was not a factor for them to shift from using one brand but that they can stop drinking due to other factors, such as availability, location, and quality.

Table 3: Drinking Water Price Motivated to Shift from Different Water Brands

Source: Field data, 2023

DISCUSSIONS

The researcher confirmed that the main methods of advertising at Coca Cola Company were television, radio, and public advertisements, such as postures, brochures, and promotional activities, especially in launching a new brand, which was mostly used as stated by Dar es Salaam residents. This is supported by Mbura & Kagoya (2021), who conducted a study on the effect of advertisements on consumers buying behaviour of real estate in Tanzania: Insight from the National Housing Corporation. The article examined the influence of advertisement elements, namely, television, radio, print media, and online advertisements, on consumers’ buying behaviour of real estate products in Tanzania using evidence from the National Housing Corporation (NHC). The findings indicated that of all four constructs, only two television and radio advertisements were major shakers, as they emerged as significant predictors with 53% and 27% contributions to changing consumers buying behaviour, respectively. Print and online media, on the other hand, insignificantly contributed 13% and 7% to influencing consumers’ buying behaviour, respectively.

The findings indicated that the majority of respondents argue the price of Dasani drinking water motivates them to purchase it as they are looking for one with the lowest price. However, others argue that price does not encourage them to buy Dasani drinking water because they are influenced by the availability of drinking water, quantity, and quality. This argument is supported by the study on the influence of product price on consumers’ purchasing decisions by Albari and Safitri (2019). Consumers consider various factors when making purchasing decisions, but an important factor that influences the purchasing decision is product price.

Furthermore, about 174 (51.8%) of Dar es Salaam residents said the price of Dasani drinking water influences the buying habits of water. This implies that price is the factor for a customer to have buying habits, as it depends on customer perception for various reasons, such as changes in the quantity of water per bottle, quality, availability, locations, and taste.

Also, the research findings show that the majority of Dar es Salaam residents tend to shift from buying Dasani drinking water to buying other brands due to price differences. However, some customers can shift due to various reasons, such as changes in the volume of water bottles, quality, availability, locations, and taste.

Furthermore, the research findings show the price of Dasani drinking water influences the buying decision of Dar es Salaam residents to a great extent. This implies that the buying decision of drinking water depends much on the price of the Dasani drinking water. This result is comparable to the study of Albari and Safitri (2019) on the influence of product prices on consumers’ purchasing decisions. Further, the results show brand image and price (fair price and fixed price) simultaneously have a partial and positive effect on purchasing decisions. Likewise, Brata et al. (2017), studying the influence of quality products, price, promotion, and location on product purchase decisions, showed the quality of the product, price, promotion, and location influence the purchasing decision, either partially or simultaneously.

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

The above-mentioned major finding and discussion led this study to conclude that:

Television, radio, and public advertisements, such as postures, brochures, and promotional activities, especially in launching a new brand, were the main methods of advertisement at Coca Cola Company. TV advertisement helps to keep the name and price of the brand at the back of the mind and is a stronger influencer for a customer to purchase, and TV advertisement affects customers’ opinions about the product.

Moreover, price was the main factor for the customer buying decisions of Dasani water. These factors depend greatly on the availability of drinking water brands, locations such as hotels, supermarkets, and shops, changes in the taste and quality of water, and changes in water packaging.

The findings further showed that there was a great influence of customer awareness about the price of drinking water in purchasing drinking water, buying habits of a certain drinking water brand, and shifting from drinking one drinking water brand to another mostly depends on price. Therefore, drinking water prices influenced and determined customers’ buying decisions for Dasani drinking water at Dar es Salaam.

Recommendations

The study has made the following recommendations to improve consumer buying decisions for Dasani drinking water.

Due to the high improvement and use of smartphones, the company can also opt to advertise through social media platforms such as Facebook and Twitter because customers argue to watch TV rarely. Therefore, online advertising can capture the attention of internet users, and they can directly order from the online web portal.

Additionally, Coca Cola Company should ensure the availability of Dasani drinking water in every area of Dar es Salaam City to avoid scarcity of the product. Further, for price and advertising to be effective is not enough to encourage consumers; rather, it should be well organized with consumer preferences, tastes, attitudes and quality of products.

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