NORTHEASTERN UNIVERSITY

BUSINESS ADMISTRATION SCHOOL

The influences of advertising on

consumer behavior and the case study of
OPPO in Vietnam

Class: IMBA
Subject: Consumer Behavior
Teacher: Yan Cen
Student: 阮氏好
Student ID: 157i014
CONTENT
I. OVERVIEW

II. THE INFLUENCES OF ADVERTISING ON CONSUMER BEHAVIOR

III. THE INFLUENCES OF ADVERTISING ON CONSUMER BEHAVIOR OF

OPPO IN VIETNAM

IV. CONCLUSION
 Abstract: Advertising is necessary for a business. This is the mode of getting the
message across to the consumers. If a product or service is to be made familiar
with consumers, the best way to do it is through advertising. There are various
advertising methods. However, they all influence the buying behavior of the
consumer. This essay will discuss advertising and its influence on consumer
behavior.

I. OVERVIEW
Consumer behavior is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on
the consumer and society. It blends elements from psychology, sociology, social
anthropology, marketing and economics.
Advertising is a form of marketing communication used to promote or sell
something, usually a business's product or service.
The most popular method of getting a product or service familiar with consumers
is through advertising. However, that doesn't mean you can just put out your
message and start counting the new customers. Advertising affects consumers in
ways you might find surprising. You need to know these effects before you launch
your campaign.

II. THE INFLUENCES OF ADVERTISING ON CONSUMER BEHAVIOR

Increased Awareness

Customers will have no idea about products and services unless they are made
known to them. Advertising and promotion provides the consumer with
information about the facts of the product or service. Advertising is not supposed
to approve or disapprove of the product. It is supposed to be neutral, and the sole
idea of the advertisement is to bring about knowledge of the product or service to
the consumer. What makes consumers interested in the product or service? At this
point, it is mere curiosity about the product or service that makes them look for it.
Customer behavior at this stage encompasses expressions of curiosity.
Analysis of Features

Consumers have a rational response to advertising when they look at the features
of a product or service. This response focuses on a logical listing of all the
functional aspects of the offering. This is an intellectual response, rather than an
emotional one. Advertising provides consumers about the functional aspects of the
product or service. This is what most consumers are looking for. How useful is the
product or service? Most advertisements list out all the functional aspects of a
product or service. The consumer watching the advertisement, at home, will be
munching on chips and thinking “hey, this looks interesting and it could be what I
am looking for!” This is the influence on consumer behavior advertisers are
looking for.

Evaluation of Benefits

Advertising provides consumers with details on how happy life would be with the
product or service. As humans, we all look for means of happiness. If the product
or service promises to make us happy, hey, why not, purchase it and see. When
customers weigh benefits, they become emotionally involved with advertising.
Consumers identify ways the product or service can make them happier, improve
their lives or give them pleasure. This part of the consumer response is irrational
and can lead to impulse buying and competition to obtain the product.

Reminders

Most often, an advertisement is showcased; especially on television or radio so

many times that one almost becomes sick of the hearing or seeing it. However, this
is an excellent tactic of advertisers, and how it influences consumer behavior is like
this. A person who has seen or heard the advertisement many times, will remember
it upon seeing it on the shelf in the supermarket, and may be compelled to buy it
because of all the fuss it creates.

Repeated advertising messages affect consumer behavior. This repeating serves as

a reminder to the consumer. Behavior that stems from reminders includes suddenly
thinking of a product while shopping and making a decision to buy it, as if it had
been on the consumer’s "to-do" list.

Promotion of Loyalty or Alienation

Consumer behavior splits between loyalty and alienation depending on how well
the product lives up to its advertised benefits. A consumer can either reject or
accept the product or service. This can happen no matter how good the advertising
is. Bottom line is, the product has to be of the standard promised in the advertising.
If the customer is hooked on the product or service, nothing will make the
consumer deviate from his choice. Similarly, if it is not good, no amount of
advertising will make the consumer purchase it again. Corporate behavior – such
as scandals or charity work – can also affect alienation and loyalty responses. Once
the consumer makes this choice, advertising and promotion are not likely to undo
that decision.

III. THE INFLUENCES OF ADVERTISING ON CONSUMER BEHAVIOR

OF OPPO IN VIETNAM

In October 2013, a new Chinese mobile brand called OPPO joined the market in
Vietnam. It is being distributed locally by Vietnam's Military Telecom Corporation
(Viettel).

OPPO Electronics Corporation is simply known as OPPO and is of Chinese

origins. It is associated with consumer electronics industry and deals with mobile
phones. OPPO is a subsidiary of its parent company BBK Electronics. It was
founded in the year 2001 by its founder Chen Mingyong but was registered in the
year 2004 with brand name OPPO.

OPPO is a Chinese smartphone brand that is still in its infancy in Vietnam market.
Even though, the brand seems to win a big attention from local smartphone users.
OPPO is now one of the fastest growing smartphone brands in Vietnam.
 Mobile mid-range market share in Vietnam

In 2014, OPPO had 7% of the mid-range market share, putting it behind the two
big players, Samsung and Microsoft, who command 30.2% and 26.4%
respectively. In 2015, its market share increased to 15,5% and 21.8% in May 2016.
In terms of the Vietnamese market, this saw OPPO exceed the combined turnover
of Apple and Asus. Is this amazing result contributed by advertising? The answer
is yes.

OPPO: success built on advertising

Its success is seen as being down to its heavyweight advertising, along with its
policy of targeting the more remote areas in order to increase its market share.
OPPO seems to allocate a large portion of the budget for advertising. Until 2014,
there have been 28 commercials, 5 webisodes and 3 short films. In terms of
celebrity endorsement, OPPO hired the famous singer Son Tung – MTP is an
ambassador for OPPO. Besides, other popular singers such as Toc Tien, Pham
Quynh Anh, and actress Hariwon also agree to cast for the commercials. Plus,
Trinh Thang Binh, Khoi My, Cuong Seven, 365 band, Minh Sang X-factor are
invited to participate in NEO 3 Day, a big event series launched throughout
Vietnam. Finally, to spread its brand name more widely, OPPO decides to be the
official sponsor for Vietnam reality show ‘Dad, where are we going?’.
OPPO spends largely on marketing, especially advertising not only because it
wants to inform Vietnam of its existence but also because the phones have so many
features that one commercial cannot demonstrate all. To prove that OPPO phones
are not dropped behind by Apple’s and Samsung’s, the brand makes no hesitation
to bring all the phones’ distinct features on screen. Although some features are
similar to those of Apple and Samsung, OPPO is still able to resonate with
Vietnam market thanks to its low price. The combination of price and features is
really a ‘wow’ factor for the brand.

During 4 years since OPPO entered Vietnam market, OPPO has become familiar
with Vietnamese consumers.
IV. CONCLUSION
Consumer behavior is one of the most important aspects in any business.  It is
very important for a business to clearly understand the consumer behavior of a
particular population in order to meet the demands of the consumers. This paper
focused on the impact of advertising on consumer behavior. Finally, advertising in
general and how it influences consumer behavior was also examined. From the
aforementioned examination and analysis, it can be concluded that advertising in
whatever form can have big influences on consumer behavior that affect future
sales and market share of a firm.
From the case study of OPPO, we can see the impact of advertising to the new
entry of the firms. It makes their products well-known in the market. Without it,
firms would find it difficult to break into a market in which there are established
brands.