IMPACT OF DIGITAL ADVERTISING ON LEVELS OF BREAD SALES IN BAKERY INDUSTRIES OF MPULUNGU

Abstract

The rapid proliferation of digital technologies has fundamentally transformed marketing practices across all industries, with digital advertising emerging as a pivotal tool for business growth. This capstone thesis examines the impact of digital advertising on the levels of bread sales in bakery industries of Mpulungu, with a specific focus on GF Bakery as a case study. Drawing upon the Technology Acceptance Model (TAM), the Diffusion of Innovations Theory, and the AIDA (Attention-Interest-Desire-Action) Model, this study employs a mixed-methods research design utilizing quantitative survey data collected from 120 customers of GF Bakery and qualitative interview data from 3 key informants. The findings reveal that digital advertising significantly and positively influences bread sales levels at GF Bakery (R² = 0.399, F = 37.428, p < 0.001), with social media advertising (β = 0.278, p < 0.001) and advertising content quality (β = 0.315, p < 0.001) demonstrating the strongest impact. The study identifies that digital advertising enhances brand awareness, customer engagement, and purchase frequency among customers, with key informants reporting sales increases of 30-40% since implementing digital advertising. Factors such as advertisement content quality, platform selection, customer trust, and timing moderate the effectiveness of digital advertising. The study contributes to the existing body of knowledge by providing empirical evidence on the effectiveness of digital advertising in the bakery industry within the Zambian context, addressing a critical gap in the literature on digital advertising in rural Zambian SME settings. Practical implications for bakery owners, small and medium enterprises (SMEs), and policymakers are discussed, along with recommendations for optimizing digital advertising investments to enhance bread sales in Mpulungu and similar local contexts.

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