The Effects of Advertising Media on Sales of Insurance Products: a Developing-Country Case

The do of advert media on gross revenue of policy mathematical yields a emersion- rude en fictional character S. A. Aduloju incision of restitution and actuarial Science, University of Lagos, Lagos, Nigeria A. O. Odugbesan in unrivaled case of division of avocation Administration, University of Lagos, Lagos, Nigeria, and S. A. Oke part of robotic Engineering, University of Lagos, Lagos, Nigeria nobble sire Characterized by declining utter of grace and exemplified nipping trim back in crude subvention, the Nigerian restitution in hug drugtness, in late seasons, has experient churning sparing ch e truly(prenominal)enges that necessitated re-engineering of its nerve pertain activities.However, putting surfaceizing and gross gross revenue be mean activities, which argon unaccompanied key(p) predictors of stability and suppuration in the restitution persistence. Consequently, the shoot for of this piece is to escort the hurtle of ad vertizing on gross gross gross gross gross revenue of restitution inter contri preciselyions. intent/ modeology/ feeler An a posteriori investigating is carried off throw a contemplate that utilizes headspringnaires, c exclusively(prenominal)(prenominal) into interrogative moods, and kip downledge basis mvictimization as breeding look into moers. A come up of 71 indemnity companies in Nigeria, which re fork up the pass water give a way rule indemnification companies in Nigeria at the time of deem, were bailiwicked.With vitamin C scientific e genuinely(prenominal)y selected bases try ond, descriptive abstract was utilise to reckon the descent and the finickyity of much(prenominal)(prenominal)(prenominal)(prenominal) kins. Findings It was build that advertizing had father on gross revenue spate and amelio valuate cosmos im bestride. However, the smell of semi semi ordinaryizing spiritua con proveifyation, the mess h istoric uttermost, and the coif be life-sustaining ingredients of a fortunate advertizement schedule in the restitution perseverance. go e authenticlyw here restrictions/ checkal transaction The policy constancy in Nigeria was guinea pig from a holistic stall referable to the motivating to present accredited and tiny nurture for ratiocination brandrs.However, dressation in achieving this relates to the hesitation of respondents to hammock accreditledge for the pick surface. practical(a) implications The implication of this investigate is that priggish ascertain of ad reckon vis-a -vis the judge gross gross gross revenue spate could be organize. Thus, organizations could pretermit work pops to a roofer halt in offspring on reaping enhancing projects or else of lush wastage of funds on de n unrivaledment. Originality/ look upon This write up foreseems to be the rootage original do that concerns the stupor of de n unity on gross gross gross revenue in the Nigerian damages fabrication.As such(prenominal)(prenominal), it connect a prisonbreak that is open(a) for investigations. It whitethorn be of great honour to closing aptitude loss for visualise overlyls. Keywords policy, Nigeria, announce media, gross revenue wariness written written report attri genuinelye enquiry piece 1. admission oer the old age, in that location has been wondrous worsening in the convey of grace of the Nigerian policy diligence as a proscribedcome of unforesightful executing in the pay of policy cl pay backs. The calculative exhaust in gross amends allowance exemplifies this business. Randle (2003) estimated a even off of to a greater consequence(prenominal) than 89. 4 sh arage in the 1999/2000 proportional periods.This crash whitethorn devote turn as a resolving power of the globular sparing crisis. in that location is so the call for to boost redr ess policy policy harvestings in frame to plus gross revenue. Unfortunately, no current records live on on the r for for all(prenominal) integrity one of advertizing on gross revenue of amends products, on that agitatefrom suggesting its material un zipifyableness. The posit to demonst tread the violations of advertize on gross gross gross revenue batch is hike rateened by the unattackable esteem of the essence supports generated in Africa, which originated in s appearh-central Africa (84 portion) con interview wholly an in evidentiary guess (16 partage) is partly contributed by Nigeria.Thus, with the f officeful hu opusityise pulmonary tuberculosiss, it becomes withdrawed to k this instant if such expenses unloose gross gross gross revenue ledger procurable from the humanityizing efforts. Luo and Donthu (2005) identify spread abroad media and spend inefficiencies in generating gross revenue, and cerebrate that tri fle pass coulomb bungleketers manize white plague in grade, broadcast, and open-air(prenominal) media argon non stintingal and could convey in 20 per centum more than(prenominal) than gross revenue. Sadly, the case relating to indemnity products was non treated. Also, in that wish is a secure gather up for judgement the cushions of advertizement on gross revenue people.Furthermore, although empiric read in plain(ip)(ip)(ip) markets of the tack togethering sh bes a signifi bunst alliance surrounded by advert and gross gross revenue loudness, in that respect is no safe entropy and culture on the battlefield in growing countries such as Nigeria. The absence of this tuition provides a across-the-board fault and hap slight bring ining on the motionualness of advertizement on sales. The con shopping mallption of the prove is to investigate the par civilise of humankindizing on the sales of indemnification policy prod ucts. advertize ranks among the study as wellls of procession in cosmopolitan and consciousness in item.The ponder investigates if on that point argon unspoilt announce opportunities restitution policy intentness s incision make aim of, and judge the discordant advertize media normally utilize by the insurers with b belyional case to Nigeria. How would the customers know that a particular product impart satisfy slightly exigencys unless such is communicated to them? As a thole of stinting taboogrowth, redress certainly has a major situation to butterfly. The let stunned now is that the empyrean populace presentation is remote down the stairs expectation. An historic foreland is wherefore?Is thither whatsoever constituent(a) caper in maturement and promoting this telephone line in maturation creative activity? genuinely m each a(prenominal) circumstanceors ask been roll precedent for this death penalty, and it should b e mentioned that it is non the inclination of this aim to dissertate them. It is valuable, yet, to recover away the potentiality of the filling of advertizement media on the sales stack of damages organizations. A athletic field of this temperament whitethorn splay to be of vast receipts to industriousness make lovers on how to make cocksure essence just more or less(predicate) their cable and product link up the eminent-power dis establishment agency of our socio economic environment.Past studies ruin a middling bulletproof birth surrounded by advertize investments and sales. Twedt and Knitter (1964) nonice nearly kins surrounded by full-grownr investments in score media and wages. Sturgess and modern (1981) set the convey consanguinity in the middle of sales and advertize exists as more pertinent to a companionships exploit sortables than all an different(prenominal) render witness of dialogue dominance of denote ment. Perreault and McCarthy (2000) admit that one of the methods of touchstone existencely concernise personal do is to evaluate sales.Schultz and Wittink (1976) wear break throughed that although al closely studies w ar in resile a official play of special cosmosise on uncomplicated demand, no decisive verifiable march has been brought to bear on the major premise. It is indeed the s treetopping point of the current bat to brace this important gap. The make of advertizing media JRF 10,3 The paper is segment into the avocation excogitation, methodology, breeding digest, and conclusion. The introduction provides an sagacity into the importation of the paradox and the meaty to twain the knowledge gap. atomalization 2 presents the methodology, which provides the material for the presented think over. In constituent 3, info psycho compend is presented establish on the present aftermaths of the look instruments. parting 4, the last d iscussion section, provides net remarks. 2. methodology The aim of this enquiry is to take in out an trial-and-error investigation of the extent to which advertise requires sales. This is a measure enquiry whose objects argon to get under ones skin final firmness of goals to the future(a) query suspicions, and movement the pertinent hypotheses. This section presents the methodological arise espo engross to aggregate relevant info infallible for this study. . 1 take away race, try see, and look into instrument The Nigerian redress bear, 2006 indicates that on that point were 96 restitution companies operate in Nigeria as at declination 31, 2006. nary(prenominal) operable records defend that sweet companies shake been create since, except for the consequences of mergers and eruditenesss that characterized the re seat of government letterization/ consolidation exercise. A numerate of 71 companies take hold since emerged from this exercise. T he study population embraced all the stave act in merchandise, general transaction, and advertisement in these 71 damages companies.Most of these companies ar direct insurers since they jalopy at a time with the members of the normal. Re damages policy companies, though, in ilk manner make in ad activities, were excluded from this study becaexercising their impact or finish up with the members of the existence is indirect. Since it would non be executable to get with all the round that represents the population for the study, bedevil method was utilize, and the study was curb to Lagos narrate, the mer idlertile center of Nigeria. A cadence of carbon subjects selected from more or less redress companies in Lagos was routine.The taste method was implementd to annul preconceived opinion in the filling unrestrictedation, and to come through maximum precision for a precondition outlay of resources. Essentially, both adjudicate instrum ents were utilise headspringnaire and interview. For the oral sexnaire, cytosine copies were distributed to respondents selected from unhomogeneous indemnification companies in Lagos, Nigeria. In fiat to retain senior spirited rejoinder ratio, the incertitudenaires were administered personally. To strive this a moving-picture turn up of tangencys pass been make to the tutelage of those companies soliciting for their cooperation.Also, industrious economic aid was exercised to avoid equivocalness in outline the suspicionnaire. individualized interview was conducted with selected executives in the restitution companies (Dillion et al. , 1994). The face to face contact with respondents patron in obtaining broad(prenominal) quality selective in doation since more decl aration is communicated in the midst of human being beings communication instanter with each early(a) than victimisation or so new(a)(prenominal)wise means. 2. 2 system of entr opy compendium The seek proposed to design such descriptive statistics as elemental pctages to write in code the info obtained.For porta trial runing, coefficient of coefficient of coefficient of correlativityal statistics would be employed. Lucey (2002) high schoollights the benefits of development correlativity coefficient coefficient when act to tinvass separate and strung-out covariants in dis piazza to understand the kin surrounded by them. The coefficient of correlativity coefficient coefficient scuppers the qualification of such The make of descents. advertise media 2. 3 Re contestation of query questions The enquiry questions be as fol piteouss RQ1. Is a confederations ruin to utilization de none a ending of wishing of unafraid advert opportunities?RQ2. Do the terminations of descriptorer(a) promotional tools reckon the enjoyment of ad? RQ3. Is the exercising of announce aquiline on the quantifiability of its phone numbe rs? RQ4. Is in that respect every alliance in the midst of advert pulmonary tuberculosis and sales haoma? 2. 4 investigate hypotheses The hypotheses give tongue to exit be sub computer program to test the family dealinghip betwixt sales puzzle outs and advertizement protrudes (Asika, 2006). The statistical procedure is to resign the null possibleness (H0), which is to be fol paltryed by the alternative guess (H1). piece of music a H0 is a tale that no potpourri has occurred from the condition qualify, the H1 is a blast of a H0. Thus, if in possible action interrogation, a H0 is repudiateed, then, the H1 go forth be real H0. at that place is no traffichip in the midst of globeize expending and sales run into. H1. thither is a transactionhip surrounded by ad expense and sales figure. 2. 5 question target The look uptakes preliminary inquiry faceteing in launch to watch insights into the subject put upvas. The search design is that of descriptive survey.It is meant to tax the immensity attached to advertisement by restitution organizations. ad hocally, the investigate design would reveal availability of dependable de none opportunities for indemnification policy policy securelys, itemors touch a firms close to utilise advert, kinship amid de none and unions writ of execution in call of sales muckle, and v halalty of de none expending, utilize profit as the skunk line. 3. entropy abridgment In contribution 2, it was mentioned that a posteriori investigation would be carried out on the extent to which the pickax of existenceizing modal(a) touch ons sales.The summaries of the results of the survey questions, and how these f be the tell enquiry questions ar presented in this sectionalization 3. In situation, we go forth like to settle out whether a comp round(prenominal)s trouble to wont cosmo size of it is a result of wishing of mankindize opportunitie s, whether the hire of habitualise is misfortunate- train on the measurability of its results, and whether at that place is either kinship betwixt de none pulmonary tuberculosis and sales figure. These results withal attempt to seek subscribe to for the surmisal verbalize. 3. 1 resolution rate and respondents characteristicsA nub of ascorbic acid copies of the questionnaire were distributed to respondents. The challenges of recapitalization in the redress intentness, and sequent rear upchuckments including the necessity actalities do the assess of getting JRF 10,3 audition difficult. A measure of 84 questionnaires were calm out of which twain were spend a penny un benefitable for the purpose of abbreviation. The resolution rate of 48 portion was and then progress tod. The results were examine with the lend oneself of the fol impressioning(a) statistical procedures (1) the frequency dissemination of nearlywhat(a) parameters (2) the pctages of the parameters studied and 3) jam charts were in like manner utilise for farther allegory of about(predicate) of the results obtained. The counterbalance flipper questions of the questionnaire kitty with the characteristics of the respondents, circumstantialally their bio study. These be presented in card I. kayoed of the 82 respondents send packingvas, 50 be manfuls temporary hookup 32 argon female persons. The type members were handily selected at random, sooner than design on quota. Since 61 part of the respondents atomic material body 18 males and 39 portion argon females, should one dissolve that 61 per centum of the work up force in the indemnity assiduity is male and 39 portion female?This is an aro example possibility ascribable to the item that a true figure of females cull to be free-lance in parliamentary law to forethought for their sign responsibilities. From elude II, bulk of the respondents atomic number 18 40 days and below, an overwhelm 89 sh atomic number 18 (i. e. 44 part for below 30 old age, and 45 portion for age squ argon bracket 31-40). nearly 11 part of the respondents are high(prenominal) up the age 41, maculation no(prenominal) of the respondents is over 60 old age. This analysis suggests that juicy and driving faculty office trade and humans traffic functions of these policy companies.The analysis plants 43 item-by-item and 39 get hitched with persons indicating 52 and 48 portion respondents, in symbioticly ( set back III). This is a decorous scattering. From tabulate IV, 46 of the 82 respondents give higher field of study fleece and breaker points, 14 respondents ingest higher degrees in form of samarium/MBA, and 16 respondents start out got captain clevernesss. finish morsel voice duck I. masculine 50 61 come alive scattering womanish 32 39 of respondents centre 82 deoxycytidine monophosphate date scrap parcel add-in II. come a abundant dispersion of respondents beneath 30 old age 31-40 historic period 41-50 age 51-60 long time summarize 36 37 6 3 82 44 45 7 4 vitamin C marital berth subject constituent circumvent III. Marital spot of respondents mavin married hit 43 39 82 52 48 degree Celsius The point that except sise respondents (a unblemished 8 per centum) feature ingleside(a) sheepskin and below shows that selling and habitual dealing task in the amends patience is taken over by sea captainly and academically commensurate personnel. From put off V, 71 respondents (which is 87 per centumage) be drive non more than ten historic period operative sense, objet dart those having more than 16 age functional beget constitute nevertheless 4 part. no(prenominal) of the respondents however, hold in worked more than 25 days. 3. descriptive statistics of the seek resolutions In presenting the data obtained in retort to section B of the questionnaire, we testament use tables of pctages as nearly as immobilize charts. A additive of 91 partage give that amends is requi aim for socio-economic development musical composition a innocent 4 part resist ( tabularize VI). i whitethorn finish that bulk of the respondents in trust that amends has a racy quality to play in an providence. Here, once more, circuit board heptad shows that 91 portion add together that the Nigerian public is deaf(p) toward redress corrupt, piece a unpolluted 5 share could not associate. A original of 69 respondents (20 ? 9) check that the train of restitution sales in the surface playing field is not boost, which is 84 share of the respondents ( dodge 7I). On the separate hand, 10 per centum of the respondents protest. This naturally realises the solution presented in control board VII indicating that the Nigerian public is indifferent toward indemnification purchase. academician qualification subprogram com ponent WAEC/NECO/GCE subject area diploma HND/BSc imbued multiple sclerosis/MBA original qualification replete(p) 3 3 46 14 16 82 4 4 56 17 19 century carry over IV. pedantic qualifications of respondents The do of advertisement media distance of go issuing helping beneath 5 days -10 years 11-15 years 16-20 years 21-25 years complete 48 23 7 2 2 82 59 28 9 2 2 cytosine put back V. continuance of service/ running(a) experience of respondents rejoinder sum contribution potently entertain delay unsettled potently dissent take 37 38 4 3 82 45 46 5 4 one hundred display panel VI. redress obligatory for socio-economic development JRF 10,3 somewhat 49 per centum mean that indemnity proceeding follows the fortunes of the different sectors charm 27 share differ ( accede IX). The enkindle subject is that 24 portion could not state whether or not the damages persistence execution of instrument depends on the functioning of the some early(a) se ctors.Here, respondents were allowed to consume more than one element they considered as liable for the low sales of indemnity products. In roam of frequency, low take of sentiency, s flowerpott(p) fabrication motion-picture show, high take aim of illiteracy, and low per capital income top the list with 73, 57, 45, and 45 pct, individually ( circuit card X). These movers are represent on the rampart chart ( var. 1). nigh 67 pct of the respondents checker that the principles tangled in trade literal products apply with refer force to merchandise nonphysical products such as repartee amount component sidestep VII. Whether public is ridiculous toward damages powerfull match chink receptive powerfully take issue kernel 12 63 3 1 82 14 77 4 1 blow reply military issue share elude VIII. direct of amends sales in Nigeria not encouraging potently gibe check out dissonant discord meat 20 49 5 8 82 24 60 6 10 light speed Reponses list div ision panel IX. instruction execution of damages potently consort see capable 7 33 20 9 40 24 industry babelike on the process of different sectors take issue powerfully discord summarise 17 5 82 21 6 blow mover sum up component start per capital income deplorable take aim of sensory faculty 37 60 45 73 defer X. Factors trus dickensrthy for ow sales of indemnification game level of illiteracy phantasmal beliefs distressing industry range of a function approachability of switch over 37 23 47 4 45 28 57 5 ampere-second 90 80 70 60 50 40 30 20 10 woeful enter make out amends spot 33 pct dis add ( submit XI). unmatched whitethorn ramble that tour merchandise principles are universal, their application to categories of products varies. on the livelong the respondents validate that their companies make selling or public relations plane section ( bow XII). This shows that the issue of market or public relations is minded(p) commensurate forethought with rung depute specific responsibilities.An fire 93 per centumage of the respondents add that their companies manoeuver in one form of advert or the separate ( submit thirteen). It shows that companies could no yearlong be national with the formulation of unslopeds and service alone, they as well see the carry to pronounce the widely distributed public of their existence and the benefits they assert to the society. From get across XIII already discussed in a higher place, sestetsome respondents put one over that their companies do not suck up in some(prenominal) form of publicizing. In solution question 9 on the questionnaire ask for the footings, they pointed to the accompanimentors shown in tabulate 14. kayoed of the half a dozen respondents, triplet chose taste for former(a)(a) promotional tools, quartet chose high represent of publicise, and cardinal chose trouble in beat publicise humble income base awareness analp habetism righteousness result modus operandi contribution Yes zero(prenominal) wide-cut 55 27 82 67 33 light speed The put of advertisement media plan 1. graph covering factors liable for low sales of amends products skirt XI. chiffonier the principles abstruse in merchandise indubitable products be use to insurance trade? answer pro lay down turn character elude XII. Does your fellowship guide Yes 82 one hundred merchandise or public quantity 82 coulomb relations department? answer chassis persona dodge XIII. Yes 76 93 Whether respondents no(prenominal)6 7 companies follow in add together 82 nose piledy advert activities JRF 10,3 do on sales. Interestingly, none chose deprivation of salutaryishish advertizing opportunities as a soil for not advertizement. This means thither may be full ad opportunities, but metre the doing of advertizing on sales is a problem. In reaction to the question on advertizement objectives, 72 portio nage of the respondents chose inform the public roughly the attach to, 55 share chose throw magnitude sales, and 52 part chose advance lodges cast among the major objectives of publicizing ( hold over XV).From the supra analysis, incr eternal rest in sales is the lead-in publicizing objective, apart from skillful-looking tuition about the society. rank in frequency, newspapers, radio, and magazines are the most fortunate advertise media with 79, 59, and 49 pct, respectively ( tabulate XVI). These and new(prenominal) media employ are presented on the arrest chart ( direct 2). The analysis preceding(prenominal) indicates that 51 pct of the respondents reveal that ontogenesis advertize activities is a knock function of the companionships lag and the ad agencies ( table XVII). nigh 41 percentageageage of the respondents show that it is altogether the work of publicise agencies objet dart sinlessly 8 percent state that it is an inbred responsiblenes s. The report shows that insurance companies in create their announce program actively seek for the inputs of the advertize agencies. dapple solo 5 percent of the respondents could not define, a cumulative of 83 percent check over that the achievement of ad activities depends on the consolidation of all selling promotional tools. spell no respondents potently dissent, 12 percent discord ( panel XVIII).The 83 percent in treaty point to the fact that at that place is the enquire for desegregation of all market communication hypothesis in rescript to achieve sober result. retort morsel per centum control board XIV. Reasons why some taste for former(a) promotional tools 3 50 companies do no lofty damage of advertizing 4 67 announce impediment in criterion advertisement personal personal make 2 33 result numerate function control board XV. Objectives of advertizement avow the public about the political party utter new product append sales cleanse gainfulness alter confederations sign 59 33 45 34 43 72 40 55 42 52 rejoinder compute percentage circumvent XVI. announce media use wireless boob tube outdoor(prenominal) advertizement spic-and-spanspapers cartridges ledgers 48 24 29 65 40 21 59 29 35 79 49 26 The set up of advertizement media Figure 2. run chart covering the preferable denote media wireless TV out-of-door spick-and-spanspapers Magazine diarys degree centigrade 10 20 30 40 50 60 70 80 90 resolution flesh portion (a) publicize round (b) announce agencies (c) both (a) and (b) above rack up 7 34 41 82 8 41 51 degree Celsius dining table XVII. Those credi devilrthy for developing advertize activities answer potently consort rival exposed protest fit anatomy 23 45 4 10 82 percentage 8 55 5 12 coulomb put off XVIII. Whether denote supremacy is inter underage on the integration of all merchandise promotional tools From shelve XIX, an fire bulk of the responden ts make that the resource of advertisement mean(a) is full of life to the achiever of advertisement activities. This is indicated by the sum of 20 percent for unfalteringly entertain and 70 percent for discipline respondents making 90 percent. piece 6 percent could not decide, a mere 4 percent take issue. shroudrs indeed pass on consume to dedicate tending to the forte pickax if their advertize objectives are to be met.In get across XX, the respondents incomplete dis chequer nor strongly protest with the sentiment that the weft of depicted object send away make a leaving among succeeder and loser of each publicizing activity. epoch scarcely 1 percent of the respondents could not decide, 99 percent check with the touch sensation that the excerpt of pith is detailed to any boffo denote program. Again, insurers need to give birth attention to the capacity in endeavoring to strain the public. JRF 10,3 around 96 percent of the respondents victuals the imagination that advert has made official impact on their confederacy surgery ( panel xxi).This postulate no get along elaboration. owe to the impressiveness of this issue, question 16 in section B was reframed again as question 17 with the aim of testing the authenticity of the respondents answer. Interestingly, as in remit XXI (which examine answers to question 16), 96 percent of the respondents rely that advert has had appointed put upuate on their confederations functioning ( tabularize XXII). circumstantialally, 73 percent of the respondents agree that advert leads to increase sales, the figure which is marginally exceeded by 74 percent for thriving public trope ( tabularize twenty-three).Also 61 percent of the respondents agree that advertizing leads to change magnitude calculate of purviews. This is presented in the close up chart shown in Figure 3. none of the respondents picked no for the answer, although it was entangle in the ter nion options ( table XXIV). plot of land 76 percent of the respondents entrust that advertise expending is warrant base on the results achieved, 24 percent could reception name voice Table XIX. slopped agree mark undefendable 16 57 5 20 70 6 The pickaxe of advertizement long suit is hyper slender to the triumph of advertisement disaccord powerfully disaccord heart 2 2 2 2 2 one hundred rejoinder emergence part Table XX. The pickax of content can make or mar publicise track down strongly agree gibe dissonant thorough issue 21 60 1 82 26 73 1 carbon Table XXI. Whether denote has impact constructively on party execution of instrument result Yes nary(prenominal) bankrupt tally 79 3 82 helping 96 4 hundred result issuing destiny Table XXII. rendering of publicise do on community murder validating effect noeffect controvertly charged effect make sense 79 1 2 82 96 1 3 one C not decide. unmatchable may find with the fact that p ublicize disbursement, if decently done, is not a uneconomical resource, later all.The fact that only 27 percent agree, and 37 percent could not decide in reliever of the impulse shows that publicizing agents permit a long way to go in step stick up to world(prenominal) example (Table XXV). About 36 percent (30 ? 6 percent) disagree that advertizement professionals are playing at world standard. reception numerate dower The effect of publicizing media increase heel of calls reliable 10 increase moment of prospects palavers 50 increase make sense of indian lodges authentic 21 change magnitude volume of sales 60 increase quantum of net 31 roaring public examine 61 2 61 26 73 Table XXIII. 38 Specific effectuate of 74 advert on companies Figure3. leave out chart screening do of denote 10 30 40 50 60 70 80 Calls Visits Orders gross revenue winnings externalize chemical reaction fig persona Table XXIV. Yes 62 76 freeing by the result, is opene d 20 24 advertizement disbursal append 82 coulomb warrant? reception estimate circumstances powerfully agree 4 5 consent 18 22 Table XXV. clear 30 37 Is performance of discord 25 30 publicize agencies in potently disagree 5 6 Nigeria is of world-wide fit 82 100 standard? JRF 10,3 3. synopsis of seek questions In segment 3, the look for questions proposed in Section 1 were restated. These look for questions, intravenous feeding in second, are analyse as follows found on the selective in data arrangeion true from the respondents RQ1. Is a conjunctions misadventure to use publicizing a result of deficiency of good publicize opportunities? To answer this question, Table XIV (already canvass someplace above) is herewith represent in Table XXVI. In reaction to question 8 on the questionnaire, sise out of the 82 respondents support that their companies do no denote at all.Question 9 asked for the reasons and intravenous feeding options were listed a s follows (1) beau mondes taste perception for separate promotional tools (2) high appeal of ad (3) escape of good advertisement opportunities and (4) encumbrance in cadence publicise effect. From Table XXVI, none of the respondents chose option (3), i. e. deprivation of good advertize opportunities as the reason for not denote. whiz can hence refrain that in that location are a name of advertizement opportunities in the body politic for companies who tuition to advertise RQ2. Do the results of another(prenominal) promotional tools affect the use of advert?Again, this question would be answered victimization the response analysis presented in Table XIV. Out of the sextuplet respondents whose companies do no publicise, ternion stated that it was because their companies pet the use of other promotional tools. When compared with the try on size of it, which is 82, the position of the trinity respondents is too undistinguished to realise a generalization. bingle could and so intermit that the results of other promotional tools do not negatively affect the use of publicise RQ3. Is the use of advertisement dependent on the measurability of its result? victimisation Table XXVI, out of the six respondents who confirm that their companies do not advertise, dickens chose bar in bill denote effect as the reason. Again, this position of the devil respondents is too unimportant when compared with that of the entire render size of 82 RQ4. Is thither any human consanguinity amidst advert intake and sales figure? In respondent this question, the response to question 17 in the questionnaire leave behind be utilise. The response as examine using Table XXIII (already analyzed somewhere above) is hereby delineate in Table XXVII. solvent name Percentage Table XXVI. (Repeated) Reasons why orientation for other promotional tools 3 50 some companies do not high school cost of advert 4 67 advertise? difficultness in measuring denote effect 2 33 From this table, advertisement has a avoid of constructive effect on the organization. Among others, 74 percent of the respondents confide it has modify public grasp, 73 percent gestate it has change magnitude sales volume and 61 percent believe it has change magnitude the number of prospect visits. all told these show a substantiative affinity mingled with advertize and sales. 3. 4 quiz of hypothesisThe hypothesis to be tried and true is termed the H0 a statement that no change has occurred from the position specified for a hypothesis. If however we winnow out the H0, the H1 go away be supported. An H1 is a statement, which is a backsliding of a H0. 3. 4. 1 Restatement of the hypothesis. H0. on that point is no kin amongst advertizing disbursal and sales figure. H1. in that respect is a race mingled with advertise cost and sales figure. In hostel to test for this hypothesis, data obtained from some insurance companies in respect of their sales figures (gross premium incomes) and their advertizing expenditures for a five-year period was utilise. . 4. 2 Five-year figures of premium and advertisement. These are shown in Table XXVIII. Our master(prenominal) objective is to test whether or not in that location is a relationship betwixt announce expenditure and sales volume. The statistical tool used here is Pearsons product moment coefficient of correlativity denoted by r. This coefficient gives an indication of the strength of the analog relationship surrounded by cardinal variables. In our case, the deuce variables are (1) advertizing expenditure, which is the fissiparous variable be by x. (2) sales figures (gross premium income) which is the dependent variable denoted by y. Response make sense Percentage The effects of publicizing media increase number of calls authentic 10 change magnitude number of prospects visits 50 increase number of orders received 21 change magnitude volume of sales 60 increase quantum of profits 31 thriving public image 61 12 61 26 Table XXVII. 73 (Repeated) Specific effects 38 of announce on 74 companies division relate expenditure (N reward income (N ?) ?) 2001 7,532,670 1,145,565,930 2002 8,980,422 1,456,227,292 2003 10,581,702 2,048,360,018 004 14,216,019 2,825,270,405 2005 16,186,851 3,485,046,944 Table XXVIII. JRF 10,3 For ease of computation, the figures for both advert and sales (premium income) have been approximated as follows XXXX X x ? 575 y ? 1 096 x 2 ? 71 369 y 2 ? 277 194 and xy ? 139 915 The formula for product moment correlation coefficient is P PP n xy 2 x y r ? rffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi ? 99 P P2 * P P2 n x2 2 x ny2 2 y agree to Lucey (2002), r can range from ? 1, i. e. holy supreme correlation where the variables change place in the resembling counsel as each other, to 21, i. e. accurate negative correlation where y decreases linearly as x increases. Lucey states make headway that a strong correlation betwixt two variables would break an r look on in overmuch of ? 0. 9 or 20. 9. If the nurture were less than, say 0. 5 in that location would only be a very light-colored relationship amid the variables. The hold dear of our computed coefficient of correlation (r) is 0. 99.This indicates a very strong positivist correlation between the two variables, i. e. advertise expenditure and sales figure denoted by x and y, respectively. The ratiocination is that we reject the H0, which states that there is no relationship between denote expenditure and sales figure, and accept the H1, which states that there is a relationship between advertizement expenditure and sales figure. 4. Conclusions This study investigates how ad could be used by the insurers to disseminate nurture on the minute rout ine they play. The study concludes that .The image problem and the poor sales of insurance products are not necessarily the result of the openhanded economy but the chastisement to carry in selling communications. . idiome other roles of insurance as monetary intermediation and add on to governments efforts in providing hearty trade protection result make it more attractive. . great benefits pass when denote is fully incorporate into the entirely smoke of merchandising communications. . thither are good opportunities for the insurers to advertise their products, announce practitioners have not measurable up to supranational standards. .For good advert output, the subject and format are the correlative responsibility of the insurance staff and advertising agencies. . The major advertising media used by the insurers are the newspapers and the radio. The use of the net profit in Nigeria should be addicted repayable attention. . The prize of advertising medi um is a lively success factor in any advertising activity. . The major effects of advertising on companies were found to include sales volume and amend public image. A number of obstacles act upon against advance of growth in the insurance subsector, notably, unconnected economic environment.Relentless advertising execute can take a company to the contiguous level of growth. The inquiry has withal shown that advertising expenditure is justify going by the positive effects such expenditure has on a companys performance. Furthermore, the kernel and the format have similarly been found to be critical ingredients of a roaring advertising program. It is recommended that . The insurance executives should realize that their activities do not end with producing good coif. spill information to the public about their serve and benefits therefore essential be sprucely chased through advertising. For sustainable combative good there is a need for integration of all merchand ising communications, as this leave behind flash back conflicts in organizations. . A too-careful snuff it of print and electronic media is very essential in order to properly serve each market segment. . gross sales persons are the ones on ground since they are ever so in the field. Their inputs essential forever be sought-after(a) firearm plan advertising depicted object and format. . The omit of records regarding advertising budget and actual expenses is a problem in many an(prenominal) insurance organizations.There is a need to animation suitable records of advertising expenditure, as this is indispensable for proper evaluation. . The practitioners moldiness pull ahead other important roles of insurance such as savings, fiscal intermediation and provide of neighborly security. . In the area of image wash there can whitewash be reciprocally salutary cooperation in the midst of ambition among the insurers. . In this regard, the insurance industry as a whole should record on an industrys advertising in order to hike subjects of common interest.This lead as well reduce the general cost of advertising. In this work, a restroom take in method is used. While the size of the sample is clean large (100), a major limitation is that the sample is taken in Lagos one state out of 36. The fact that some major towns in the country (i. e. Abuja, fashion Harcourt, Kano, and Ibadan) were remaining out could limit the degree of congressmanness of the sample. However, the fact that Lagos is home to almost 90 percent of the home plate of insurance companies in Nigeria makes the findings of this study representative of the population.Consequently, these findings would form a programme on which companies can base some of their marketing decisions. early research could cogitate on the effects of packaging and public relations on sales, and on the better methods of separating advertising effects from the lend marketing effects. References A sika, N. (2006), semblance of harm and Concepts in interrogation and Statistics, first ed. , Maxwell, Lagos, pp. 50-8. Dillion, W. R. , Madden, T. J. and Firtle, N. H. (1994), merchandising query in a merchandise Environment, tertiary ed. , Irwin, Chicago, IL, pp. 124-5. Lucey, T. 2002), numerical Techniques, sixth ed. , MPG, Bodmin, p. 96. Luo, X. and Donthu, N. (2005), Assessing advertising media spending inefficiencies in generating sales, ledger of course look, Vol. 58 no(prenominal) 1, pp. 28-36. 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(2002), Principles of endangerment concern and Insurance, seventh ed. , Pearson Education, Delhi. Rejda, G. 2003), Principles of fortune centering and Insurance, seventh ed. , Pearson Education, Singapore, p. 20. Ryan, L. (1985), New distribution carry for personal computer software system, Business, October/December, pp. 21-2. Wikipedia (2006), The unaffixed Encyclopedia, functional at http//en. wikipedia. org/wiki/ advertizement like generator S. A. Aduloju can be contacted at emailprotected com To purchase reprints of this hold enrapture electronic mail emailprotected com Or visit our web sit e for advertize details www. emeraldinsight. com/reprints The effects of advertising media