ABSTRACT

The study examined the impact of advertising on sales of selected MTN Communication Products in Abia State, Nigeria. It specifically determined the effect of advertising on the sales of MTN products, determined factors that influenced sales of MTN products in Abia State, examined the effects of advertising on consumer's preference for the products and examined relationship between cost of advertising and sales revenue. Five local governments (Aba South, Aba North, Ohafia, umuahia South and Umuahia North) in Abia State were purposively selected for the study. Both primary and secondary data were used in the study. Data was analyzed using linear and multiple regression, t-statistics rank correlation and chi-square model and were interpreted using R2, adjusted R2and standard error of estimates and t-statistics with the aid of E-view and statistical package for social science (SPSS) version 20. The result of the simple regression analysis showed that advertisement significantly influenced volume of sales of MTN Modem, Sun pack and Blackberry at 1% probability level. Only MTN Wireless fidelity sales was not significantly influenced by advertisement. Result of the multiple regression analysis showed that product availability, seasonal effect, advertisement, and fair pricing significantly influenced sales volume of various MTN products. It was also showed front the result that 67% of the respondents believed that the choice of their brand can be changed through advertisement. The study concluded that generally, advertising is a powerful determinant of sales of selected MTN communication products in Nigeria whether considered individually or in combination with factors (for mobile telephone network) influencing sales. It is therefore recommended among others that efforts should be made to step up effective and efficient way of improving advertising of these selected products every year.