The impacts of advertising on consumer and firms

Thao Nguyen Thi Phuong

Bachelor's thesis

Abstract:

Billions of dollars are spent on advertising by marketers every year to attract potential customers. But can advertising bring benefits to big brands? Why it is important for the firms to spend on advertising? To seek the answer to these questions, this article considers the effects of advertising on heavy advertised firms and consumers. The practical part was completed by conducting and collecting consumer surveys which include the most important survey about Vinamilk -- the largest dairy company and also the 15th biggest company in Vietnam. In addition, by collecting the data from financial statements of Coca-Cola and its most powerful rival Pepsi; Apple and its competitors Microsoft and Samsung Electronics, empirical findings suggest that advertising is worth spending since it influences consumers' purchasing behavior and contributes to increase firms' revenues and net income.

Abstract:

Billions of dollars are spent on advertising by marketers every year to attract potential customers. But can advertising bring benefits to big brands? Why it is important for the firms to spend on advertising? To seek the answer to these questions, this article considers the effects of advertising on heavy advertised firms and consumers. The practical part was completed by conducting and collecting consumer surveys which include the most important survey about Vinamilk -- the largest dairy company and also the 15th biggest company in Vietnam. In addition, by collecting the data from financial statements of Coca-Cola and its most powerful rival Pepsi; Apple and its competitors Microsoft and Samsung Electronics, empirical findings suggest that advertising is worth spending since it influences consumers' purchasing behavior and contributes to increase firms' revenues and net income.

Keywords

incomeincome, consumer behavior, sales, big brands, effects of advertising

Keywords

big brands, effects of advertising, consumer behavior, sales, income

Language used: English

Date on which the thesis was submitted / produced: 17. 3. 2015

Thesis defence

• Date of defence: 10. 9. 2015
• Supervisor: Zuzana Dlouhá
• Reader: Jaromír Prokop

Vysoká škola ekonomická v Praze

Bachelor programme / field:
Ekonomie a hospodářská správa / Economics