The effects of advertisement on organisational profitability in the fashion industry in Ghana
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Date
NOVEMBER 2014
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Abstract
The fashion industry involves the design, manufacture, sale, advertisement,
distribution and promotion of different types of attire. Preston (2013) conducted a
research on the returns of advertising in the fashion retail industry in the United
States. There are many independent variables that affect the profitability of a
company that were not captured in the research. This research thus seeks to find
out if there are other determinants that affect profitability. The objectives of the
study is to investigate the nature of advertisements used in the fashion industry in
Ghana and the trend in profitability in the fashion industry in Ghana from 2008-
2012. It also seeks to find out the causes of profitability in the fashion industry in
Ghana as well as the effect of advertisement on the profitability of fashion
industry in Ghana. A sample size of 146 out of a population of 420 students and
proprietors from 20 fashion institutions was used for the study. Purposive and
snowball sampling methods were used. The research found out that the main types
of advertisement employed by fashion institutions in Ghana were radio, television,
banners and billboards while the benefits of promise and the picture used were
components of a good advert. The causes of profitability in the fashion industry
were from fees and other administrative charges that students pay as well as other
income generating activities undertaken by the various schools. There was a
general increased trend of profitability in the fashion industry in Ghana over the
last five years. Advertisement had a positive effect on profitability in the fashion
industry in Ghana since it led to an increase in profits. The study recommends that
fashion institutions in Ghana should use modern means such as the social media in
advertising. They should also use celebrities in their adverts.
Description
A thesis submitted to the Department of Marketing and
Corporate Strategy, Kwame Nkrumah University of
Science and Technology in partial fulfillment of the
requirements for the award of
Master of Business Administration
School of Business, College of Arts and Social sciences
©November 2014