CHAPTER Liang & Xianyu 2008; Donoghue
CHAPTERTWOLITERATUREREVIEW2.0 Introduction Researcher has gathered several literatures form various sourcesthat will best fit the research paper on the intended topic and hope to wellexplain the variables. The dependent and independents variable of this researchwere discussed in detail below with appropriate literature review.
2.1 Customer Awareness The definition of customer awareness is when an individualunderstand the right as a customer that concerning about product or services offeredand sold in the market. Customer awareness also referring to the customerknowledge on particular product or company that enables customer to know theproduct itself before purchased. Consumer will get the information on theproduct or service when there have product description or necessary informationthat 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 customerof Islamic banking in Pakistans has shown the different suggestion of customerawareness services utilization decision for personal, social &economicfeatures of the customer audience, Siguaw and Simpson, 1997.
Other studies haveshown that customer awareness and knowledge are very significant to the varioustypes of effective consumer behaviors. In this study, emphasis on theimportance of the ethical labeling for humanizing business image and thefunction to saliently develop the quality into product features so can makecustomer aware and also have some knowledge about the aspect that influenceconsumer 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 roleof customer awareness in the scope of consumer by direct-market.
In thisfinding, male and younger people have more aware on privacy-related laws andpractices, the results these groups have adopted specific strategies to protectthemselves from this situation. Awareness is a factor that appears in human automatic process.There are three process involves environmental features, automatic process andoutcome. For environmental features including situation of people, event andother can encourage to the automatic process. Then automatic is including theprocess as attitudes activation, automatic evaluation, non-conscious mimicryand 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 salesperson must ensure attention, maintain interest create awareness and finallyspur the customer to action. In the hierarchy of effect by DAGMAR model. There aresix elements; awareness, knowledge, Liking, Preference, Conviction andPurchase. with awareness, moves tocomprehension, then conviction and the ends with action covering different aspectsof consumer’s psychology in terms of Think, Feel and Do. (Imran et al, 2011) explored the level of awareness of Islamicbanking among customer and found that many customers are satisfied with thesystem in the conventional banking and did not have complete awareness onIslamic banking. Lastly, result of this finding positive association betweencustomer satisfaction and honesty about Islamic banking and customer awareness. 2.2 ADVERTISING The American Marketing Association defines advertising as “anypaid form of non-personal presentation and promotion of ideas, goods, andservices by an identified sponsor”.
Advertising is generally for everyone andsuitable for every ages because it is not directed to any single individual. Inthe advertising, sponsor is an example for the manufacturer or producer isidentified as his name and addressed that contained in the advertisements. Theimportant of the advertising is producer also can promote the idea of eachproduct, description of the product in terms of quality, design, packaging andpricing. Advertising consists of all the process of presenting all messagesabout 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 themost important objective because it may conflict with the long term profitgoals. For example, Chanel launched as campaign to discourage sales to customerform lower social gaining. Chanel long term probability relied on sustaining itsupmarket image and it wanted to sacrifice short term sales to safeguardupmarket brand image (Myers 1989).
Advertising have been given up that there isa positive effect between advertising and sales. From Evan (1988) “Advertisingcannot in and of itself because sales, it can only help to contribute towardssales success”. Next, advertising also particularly for government in order togive some information campaigns to publics. It is social advertising where tochange people’s behavior such as anti-smoking, anti-drugs and healthy eatingcampaign. Advertiser believes that when there is often advertising it may beprovide the customer false expectations of what the brand can do for them,causing cognitive dissonance. Mature advertising markets is the purpose of mostadvertising is to remind loyal consumers to buy goods and for remind customerabout the brand’s values and persuading them to keep buying the goods. The use of mass media in advertising is to increase coverage togenerate awareness.
Advertising tries to give information and motivate peopleto acknowledge about the product or service. Especially TV advertising whichhave most influence tools in deliver the message and to get customer awareness.For instance for over twenty years Benson & Hedges managed to flout the IBAcode on advertising cigarettes on TV by using brand-name in Hamlet cigarcommercials. The cigar commercials (which permitted on TV) finish with thephrase “Hamlet, the Mild Cigar, from Benson & Hedges” (Bell in Henry 1986). Advertisements also offer something for buying the product as rewardsto the customer like success or wealth through claims like “win” word in orderto encourage customer to feel good about the product. Judie Lannon has says,”Brands like Heinz and Kellogg built strong brand franchises that have aprovide to the people; they form habit; they have time”(Lannon 1993). Whenresearchers go for commercial advertising can affect most interested in directeffects stimulus material on consumers. Then, academic researcher will be moreconcerned with the level of comprehension of advertising and will interpretconsumer differently on the product (Morley 1992).
Last but not least, advertising has their uniqueness indemonstration ads, presenter ads, and slide –of-life. Advertising also is usesfor TV program to play the neutral and real of the product or the entertainmentor magical imagery of the host texts, and to associate the discourse ofeditorial with the brand. .
Through the advertisements provide the template forunderstanding, “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 tosell the product after make appointment with customer through face-to-face withcustomer. Sales force or sales person is responsible to promote the productwith the entire specialist that they have such as attitudes, knowledge, andappearance. Their objective is when they have to inform and encourage customerto buy and persuade them that the product are good and have difference compareto others and also give trial to the customer. The firms are responsible tomake sales person have the ability in deliver the message to customer and playthe role in sales representative performance.Together with the competition increase and the technologyadvances, organization must provide a same ways in order to adjust the changingwith the business environments. Personal selling context is where sales personare recognized as the boundary of the company and are expected to berelationship manager (Kotler 1984).
Sales people are not the person justselling the product anymore but now they provide a good solution for customerin every problem. Anderson and Dubinsky (2004) discussed the concept ofconsultative selling, where a salesperson act as expert and provides solutionto the customer. This role requires salesperson to have technologicalorientation to access, analyze and communication information to male strongrelationship with customer, Hunter and Perreault (2007). The sales department is the income for each company becausefrom that it can increase the production and revenue generation. Also, thesales department have fundamental in making sales (ibid.).
Supply in modernmarket will exceed the demands and adopt a marketing orientation in whichcompanies “make what we can sell, not sell what we can make” (Donaldsson,1998). In the early 1990, sales organization will implement selling method thatis not only traditional field sales force. Now, there are approaches such asindependent sales representatives, electronic data interchange and this methodhave grater interrelationship among sales person and every member inorganization.
New concepts relationship is when two sales people have alteredthe role of the sales person, Marshall et al. (1999). Team selling is used moreoften with different functions of the selling company relating directly to theteam of buyers (Donaldsson, 1998; Sheth & Sharma, 2008).The definition of selling is personal or impersonal processof assisting and persuading a prospective customer to buy a commodity orproduct. Selling can be viewed as communication tools and as a process toattract customer in buying or get knowledge from personal selling. Selling is apart of marketing mix and one types of promotional tools.
Personal selling isnecessary for every company because it must place in good position in order forcustomer to know and doing business. The other perspective—viewing selling as aprocess—focuses on the purpose of selling (i.e., doing business). Yet these twodimensions appear to be quite different.
First perceptive counts selling as one of many tools, theother as focal process in firm’s operation involving many tools to attractcustomers. Viewing selling as a process where combination of activities in thesales process and by whom is actually the product was bringing and haverelationship between seller and buyer. Koschnick (1995), adopts the view ofselling as a process. However, certain aspects should be emphasized tounderstand selling compared to the definition suggested by Koschnick (1995). Inline with Koschnick’s (1995) definition, selling is understood as a conceptcapturing the broad range of activities performed by a number of individualsinvolved in a company’s sales operations 2.
4 SALES PROMOTION Sales promotion is one initiative that every organization has tolook more in order to promote and increase sales. Sales promotion is notspecific to reward or gift but some offered from company to the customer. Thecompany will make something unique for their customer and may be different fromother competitor. Next, the method on of sales promotion is a diverse collection ofincentive tools. It is a short term because they have to design to stimulatequicker and grater purchase of specific product or services by consumers ortrade.
Sales promotion is one incentive for customer to buy the product andinclude tools for consumer promotion, trade promotion and business & salesforce promotion. The study by Perer, H Leeflang and Dick, R. Witttink (2004) hasproposed the store level regression model that decomposes the sales promotion.There are three parts of the study; cross brand effect, cross period effect andcategory expansion effect. They suggest that one-third of the three parts areaverage. A model is proposed separately from category expansion effect ontocross-store and market expansion.
The price discounts are strongly associatedwith cross-period effect and display-only are associated with categoryexpansion effects. While the role of category expansion effect tends toincrease with higher price discounts the role of cross brand and cross-periodeffects tend to decrease.Sales promotion that published in 25 years ago has explained aboutorder to gain knowledge about the trends in sales promotion.
There is asignificant number of articles in the area of planning and evaluation of salespromotion. The impact of sales promotional tools such as coupon, pricediscount, free sample, bonus pack, trial product and repurchase behavior ofconsumers. The relationship between sales promotion and product trial areexamined in order to know the relationship. After this examined, results showsthat price discount, bonus pack, free sample are associated with trial productand coupon does not shown the significant effect Ndubisi, Oly, Nelsonand Moi, Tung, Chiew (2005). Lastly, the study from Michel, Caroche et.
al.(2003), show thetwo dimension promotional tools; coupons and two-for-one promotions. This studyshows the different promotional response and they make highlightedcommonalities and have different use of the process that promotional use in thestudy.