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CHAPTER 1
INTRODUCTION
1.1 Background Information
Industrial marketing ability is the key of financial success. Finance, operations, accounting,
and
other functions will not really matter if there isnt sufficient demand for products to the
company that can make a profit. One survey of the top ! challenges "#Os face around the
world in $!!% revealed that among the top & were both 'sustained and steady top line growth(
and 'customer loyalty( challenges whose achievement depends heavily on marketing )*otler,
*eller, $!!+,.
-oday the marketers are really confused to take up the appropriate marketing strategy due to a
variety of products, increased customers e.pectation and rapid industrial growth. In this
situation, it is come into view that some marketers are not considerate to different promotional
activities and advertising where some others use these unconsciously. /o it is the time to rethink
the actual effects of sales promotion and advertising on the consumers mind. /ales
promotion has always been a part of the industrial marketing process and advertising is the
preferred tool used to reach consumers. -he allocation of the marketing budget is now
reallocating with promotional budget and advertising that that indicates its importance. 0ow1a1
days people are conscious to look for the best one and thats why their fluctuating mind may
switch on to new brands with a simple stimulus. In this case an e.tra incentive can be added to
a product by different promotional activities. 2gain it is remarkable that a product lack of any
significant advantage can be made it difficult to create an advertising campaign which can be
used to make people to try the product.
-odays business firms are giving more attention towards their target customers. -o achieve
the success the company will need to deal and communicate with the customers.
2dvanced "hemical Industries )2"I, 3imited is the most prominent manufacturer and
marketer of homecare, toiletries, cosmetics and pharmaceutical products employing and
servicing people all across 4angladesh. -he 5anish -oilet "leaner is a household chemical of
2"I Formulation 3imited. -his thesis work started with it as a sample in influencing the
sales volume through sales promotion and advertising. -his study work can allows identifying
the respective scope of market penetration through sales promotion and advertising. 4y
observing the study result there will be a better understanding of why and what instruments or
services should offer and how can establish the leading position in such aggressive market.
1.2 Prob!m "tat!m!nt
In this competitive market it is often difficult to have a regular and consistent increase in
the
sales volume of a product. In the real sense, sales promotion is an effective tool to attract
customers in a competitive environment and advertisement is the method of creating
awareness as well as making new promotions known to the new and potential consumers of a
product. 6ere the marketers are facing a confused situation on the impacts of sales promotion
and advertising on the sales volume of a product. -his is the point that needs to analy7e the
overall effects of sales promotion and advertising on consumers purchasing behavior in
learning and motivating themselves and find out the situation in which sales promotion and
advertising can keep going a product in this competitive market. For the most possible answer it
re8uires a broad analysis not only theoretically but also practically.
1.# Aim of t$! T$!"i"
-he main issue is that todays marketers tend to use the promotional activities along
with
advertising unconsciously to influence or communicate to the consumers. /ince critics argue
that
these have some negative effects on consumers mind and purchase decision, marketers
are really pu77led to decide whether or not sales promotion and advertising should be a part of
their marketing activities.
-he aim of the thesis is to be clear as a marketer, what effects sales promotion and advertising
really have on consumers buying behavior by analy7ing practical and theoretical evidences.
1.% &!t$odoog'
-he approach of our thesis work is a deductive approach because there is an interest in
seeing
both the theoretical and practical findings. -his thesis is partly study and partly problem
solving work. -he study approach is based on some relevant theories including learning,
motivation and decision making that will create theoretical findings on consumers buying
behavior. -he problem solving approach is based on some recommendations on how to answer
the problem statement. 9e have used 8ualitative method in secondary data collection that
provides us a deeper understanding of the problem.
1.%.1 Data co!ction
-he thesis covers both secondary and primary data. 6ere secondary and primary data sources
are used with an aim of strengthening the content of our entire work.
1.%.2 (!condar' data
2t first the secondary data sources are used including relevant published :ournal
articles, published books and company websites. -he relevant :ournals are found from the
website of
;<#- and the books are collected from the central library of ;<#-. -hese secondary data
sources provide more information to make comparison, interpretation and understanding
our
primary data.
1.%.# Primar' data
/econdly in this thesis, we have collected primary data through 8uestionnaires to the customer
as
original data. 2ll of the respondents of this study are consumers. /ome well designed
8uestionnaires were administered to three hundred and seventy five customers constituting the
sample si7e.
1.%.% Data ana'"i"
2fter collecting both secondary and primary data, some data are focused, selected, simplified.
-hen some reduced data are organi7ed that make it easier to make conclusion. 9e analy7ed
and
interpreted the data by linking the theoretical findings with practical findings that ensure us the
coherence throughout the entire thesis work.
1.%.) *aidit'+ r!iabiit'
In our entire thesis work we have used two main sources of evidence like customers interviews
and published documents. -o test the works validity this paper provides the citations to
all
sources where the evidences were collected from. -he honorable supervisor reviewed all of the
data and gave approval for the work. -he seniors and friends discussions to the methods that
are
used increase its accuracy and validity. =uring the interview there was an attempt to be
as neutral as possible to avoid biasing. -here was also high consciousness about what types
of
8uestions were asked and how asked.
1.) (tructur!
In this section, the structure of the thesis will be presented. -he thesis is divided into &
parts where each can contain several sections. 2s seen in Figure $.$,
Part on! consists of chapter , which gives the reader the background information,
problem statement, aim of the thesis. -his part serves as the introductory information for the
thesis.
Part t,o consists of chapter $ which represents the method of the thesis. It gives the reader
a methodological approach with the structure of the whole work.
Part t$r!! consists of chapter > which is divided into two main sections. -his part provides
the background of the problem with several relevant theories which are the base of this thesis.
-he
first section provides the reader with a deeper concept of the problem statement including
the historical background of the thesis. -he last section represents a broad idea of the
problem
including theoretical framework. -he empirical evidences are included here to back up
the theoretical findings.
Part four consists of chapter ? which represents the primary data. In the earlier section of
this part analy7e the primary data in the tables. -he lateral section of this part represents the
testing of
several hypotheses related to the problem statement.
Part fi-! consists of the findings from the two previous parts )> and ?,. It gives the discussion of
final findings which include the recommendation and conclusion with scope of further research.
CHAPTER 2
.ITERATURE RE*IE/
2.1 Hi"torica Background of t$! T$!"i"
Influencing the consumers behavior by sales promotion and advertising, there are
some
important research works that are already published. 9e have studied these relevant published
papers concerning of this thesis work. In this section the historical background of the thesis will
be discussed.
;esearcher emphasi7es on manufacturers advertising and promotion in affecting the relative
market share. 2ccording to 2nselmi )$!!!, the relative market share may be influenced by
manufacturers advertising and promotion allocation decision. 6e also added that advertising
develops the manufacturers relationship with the distributors and allocation to promotion can
be increased in terms of discrete relationship among them. 4rand with low relative market
share may e.perience greater opportunity for advertising in relational e.change and
pressure for promotion in discrete e.change. PI@2 )++A, also states the advertising and price
as competitive tools that are effective to increase the market si7e and has both predatory and
cooperative effects in a symmetric market.
-eng )$!!+, aims to show the considerable effects of the price discounts. Price discounts may
change consumersB attitudes and purchase intentions regarding a particular brand by moving it
from consumersB hold set to consideration set. Price discounts as an effective promotional tool
may successfully influence consumers to shift their attitudes and purchase intentions towards
consumer goods. /pecifically, it can move a brand from consumersB hold set to consideration
set by changing attitudes and purchase intentions of the consumer due to the price sensitivity.
6ere it can be added that the consumer are not only sensitive to price but also to the firms
advertising efforts that can differ the sales as well of a firm as stated recently by 6uang et al.
)$!$,.
Cones )$!!>, argued here as, in general, increased advertising e.penditure generates only a
small average volume of additional sales that can often be profitable. 6e classified the
advertising effects in short, medium, and long term. -he initial effect can be positive and a
prior condition for the longer effects. -he medium1term has a positive influence of the brands
own advertising as well as negative influence for competitive brands. 2 continuous
improvement of an advertised brand may generate long1term effect in consumers minds
that can lead to a further sales outcome which can be very beneficial. 6e also concludes that
price reductions have only a temporary effect and generally there is no further effect to
generate more revenue to balance the increased cost. -hough it encourages the competitive
retaliation but often have a negative influence on consumers image of the brand. 4ut 4uilet
al. )$!, shows that the individualsB attitudes toward the advertisements play key role
influencing brand e8uity dimensions.
Doorthy )$!!&, stated differently that advertising e.penditure works as a signal of product
8uality for e.perience goods because consumers guess that high18uality products would
advertise more than low18uality products. 6e provides substantial support for ad repetition
that influences perceived 8uality. 2dvertising communicates with information to sub:ects
and sub:ects respond more to advertising repetition. Interestingly it does not seem much
difference whether the product being advertised is a search good or an e.perience good.
Doorthy stated that increased ad e.posure increases familiarity and perceived 8uality. -homas
et al. )++A, also agreed earlier that advertising is related with 8uality signaling and
manufacturers use both price and advertising to signal the 8uality of their products.
"onsumers choice behavior is also a vital thing here. =i"lemente )$!!>, discussed
about classical and operant conditioning consumer behavior. "lassical conditioning is often
identified in the marketplace like the products of fast food that are often marketed by
associating their names with the sight and sound of a si77ling hamburger, soft drinks that
are associated with catchy :ingles. Fo.all )++?, also labeled four classes of consumer
behavior including maintenance )activities necessary for the consumers physical survival and
welfare such as food,, accumulations )behaviors involved in certain kinds of saving,
collecting, and installment buying,, pleasure )consumption of popular entertainment,, and
accomplishment )behavior showing social and economic achievement,. -hese four types of
behavior can be applied to the communications of innovations of new products. 2mong other,
accomplishment will be the initiators e.posed to the product. 2s the life of the product
continues the other three behaviors will come into effect in order of early imitators
)pleasure,, later imitators )accumulation,, and last adopters )maintenance,.
6ere marketer can use a lot of promotional tools. 2s a consumer promotional tool coupon can
affect on consumers brand categori7ation, choice processes and impacts on consumers
attitudes and intentions toward that brand )3aroche et al. $!!&,. "hen et al. )++A, also state
that when offering the same savings in coupon or discount promotion then the coupon
promotion would more favorable and effective in changing consumers purchase intention.
"hildrenBs purchase decisions are also influenced by the sales promotion )4oland, $!,.
#ven at a young age, children have ac8uired the concept of sale price reduction.
Prior purchases can also influence the consumer response to promotional activity in brand
choice decisions. 2ccording to 4ridges et al.)$!!%, prior promotional purchases influence the
consumer choice more than prior brand usage. 9hen the effects of usage dominance are greater
than promotion enhancement, promotions can be used as an effective tool for building market
share. =arke )$!!&, also e.amined that different promotional frames increases the perceptions
of deal value. 4ut we have to concern about that negative price18uality inferences are most
likely to occur when the brand name or seller is not well1known );ao E Donroe, +A+, and
free gift frames were effective in increasing deal value under such conditions. *opet7 et al.
)$!, says that like most behavior, consumer behavior is goal driven too. 2 choice made after
a difficult search may increase consumersB satisfaction as a result of an effort :ustification
process )3abroo
E *im $!!+F 3iberman E FGrster, $!!%,.
Dultiple unit price promotions may provide a means for increasing purchase 8uantities
of promoted products )Danning, $!!H,. "onsumers often encounter multiple unit price
promotions where price reduction is presented as a reduced total price for multiple units of the
same item )e.g., an item regularly priced at -k .$& each is promoted as '& for -k &(,. #ven
retailers may order relatively high purchase 8uantity in these types of promotions.
"ustomersB decisions to terminate the relationship with the incumbent firm and switch to a new
entrant depend on both the incumbentBs and the new entrantsB price and mass advertising. Polo
et al. )$!, shows that mass advertising e.ert a significant influence on the probability
of terminating an e.isting incumbent relationship. 0owlis )$!!!, also proposes that sales
promotions and the choice set composition have compensatory effects on brand switching.
2lford )$!!$, e.amines that at the high discount level the highly price1conscious consumers
may be an attempt to verify the attractiveness of the deal being offered and these consumers
may return to purchase. 4ut consumers with higher levels of price consciousness had a
lower perception of the offer value. It may be that the lower price desire is more related to
search intention than value perception.
/electing the effective instruments and identifying the target customer is also very important
part of any promotional activity. Pala7on )$!, observes that the effectiveness of different
promotional tools, price discounts and premiums depends on the level of deal proneness. 2n
effective and well planning promotion can stimulate consumers buying intentions but
the success of the promotion would be contingent on deal proneness. /o is vital to identify the
target customer and more effective instruments to attract them in designing a promotional
campaign.
2gain, according to /andra et al. )$!!A, everyone should reali7e the role that advertising is
playing in modern life. Psychologically it shapes the attitudes of the society and the individual
influencing their behavior. It also provides huge amount of information to consumer to make a
choice and draw a conclusion. 6yun et al. )$!, also stated that advertising1induced
emotional responses positively influence patrons perceived value. 6e indicates four
dimensions of advertising )relevant news, stimulation, empathy, and familiarity, that have a
significant impact on inducing patrons emotional responses. 2mong other, stimulation is the
most significant to influence on patrons pleasurable responses which create positive
behavioral intentions in patrons. 6ere the stimulation )or entertainment, in the advertising
conte.t indicates that the advertising is pleasurable, en:oyable, and fun to watch )/chlinger,
+H+b,.
4eside of these positive effects, the marketers also have to be careful about their efficient uses.
Potential loss of sales due to inefficient ad spending along with inefficient advertising
is emphasi7ed by =onthu )$!!&,. 6e evaluates the top !! marketers advertising spending
inefficiency in print, broadcast, and outdoor media that could bring about $!I more sales. 9e
have to remember here, advertising is as an investment instead as a cost and the return on
advertising investment can be calculated and optimi7ed )=anaher, ++&,. Doreover =ens )$!!,
compares two types of advertising strategies like informational vs. positive emotional. 6e finds
that informational appeals in comparison to emotional appeals reduce the effects of parent
brand 8uality and fit.
-ru:illo )$!!A, critically comments the role of emotions in consumer choice that deserve
special attention according to 6ansen and "hristensenBs )$!!H, book. In this book they e.plain
and develop the net emotional response strength )0#;/, score and measure the advertising
effectiveness by using 0#;/. 2c8uisti )$!, also e.amines that certain types of advertising
interruptions may reduce individualsB willingness to pay. 2ds significantly lowered the
willingness to pay for goods associated with the advertising brand and the final suggestion is
that aggressive advertising may raise awareness for a companyBs brand but reduce its bottom
line.
2gain regarding to sales promotion, on an average, sales promotions have neither a positive
nor a negative effect on brand preference beyond the promotion period )=el5ecchio et al.
$!!%,. 2aker )++%, p. AH, states that promotions have the potential to damage brand
e8uity by
focusing the consumers attention too heavily on price. /imilarly, *eller )++A, warns of a
number of disadvantages of sales promotions such as decreased brand loyalty, increased brand
switching, decreased 8uality perceptions and increased price sensitivity though some
other researchers contend that sales promotions can increase brand preference )=avis et al.
++$F ;othschild and @aidis, +A,. 6umphreys et al. )$!!+, also blame the promotions that are
one of the main causes of the bullwhip effect on the supply chain.
It should also consider the geographical location of the consumer which can plays a vital role
regarding the response of advertising and sales promotion. ;elating this issue, @reen )++&,
e.amines the responses of 2frican12merican and 2nglo12merican consumers to four types of
retail sales promotion1coupons, product displays, feature advertisements, and price discounts.
;esults found significant differences between these two types of consumer only in their use of
cents1off coupons. 6e implicates that there are possibly some media1related factors
contributing to this outcome. -his also suggest to the marketer to plan different
promotional strategies according to their location so that they are effective in reaching the
particular market which they serve.
2s studied the relevant articles regarding of this thesis work, it can be concluded that many
researchers e.amined and studied different aspects of sales promotion and advertising on
consumers behavior. -here are some considerable contradiction among the previous works and
theories of science. -his thesis is a combined study or e.amination of all these agreements and
contradictions. It is known to all that the consumers behavior largely depends on their
geographical location. Dany researchers have studied their work in their own geographical
locations. -his work emphasi7es on the consumers behavior of a sub continental country like
4angladesh. -here are a lot of works based on different developed countries and different
classes of consumer as well. 6ere this is an attempt to test the behavioral theories on
economically higher and middle class customer regarding to a developing countries like
4angladesh. -he behavioral theories are already e.amined on different famous or
international brand. -he findings of this work can be applied not only on the local product but
also on the national or well known products. Dost of the previous works are done
individually on sales promotion or advertising. 6ere this work will integrate both of these
important marketing strategies simultaneously. -his thesis attempts to e.amine the impacts of
knowing the products primary information along with its promotional messages through
advertising on consumers behavior. 4y observing the importance of knowing the new
promotional activities through advertising, the final goal of this paper is to find out the
combined effects of sales promotion and advertising on consumers purchase behavior that can
influence the sales volume.
2.2 T$!or!tica 0ram!,ork
It is suggested that sales promotion and advertising can influence a consumers behavior
towards a product. It is argued that a product, consumers would not normally buyF a sales
promotion and
advertising activity can change their behavior and make him purchase it. -his theoretical frame
work section will analy7e if sales promotion and advertising can change the purchasing
behavior
of a consumer. -his section will make a theoretical analysis of how sales promotion
and advertising theoretically could influence the purchasing behavior of consumers. -he
theoretical
models which will be used to analy7e including consumers purchase decision making
process,
marketing communication, consumer learning behavior, consumer motivation and finally their
response processes to a product.
2.2.1 Con"um!r Purc$a"! d!ci"ion
First, it is important to analy7e how consumers make a buying decision, depending on
the product category, and the steps and process that are related to a buying decision. It is
therefore
interesting to discover the buying decision making processes of the customers to find out what
leads to a purchase and how sales promotion can contribute to this action.
It is also important to understand how comple. it is to make a buying decision, even if it is a
simple buying decision made almost every day. -he interesting part is to understand how a
customer comes to that conclusion of buying something and what goes through a persons
mind during that process. -hough influencing consumers behavior by sales promotion is
indeed very difficult, our attempt to identify which factors have an influence on the buying
decision process which can lead to a purchase or at least paying attention to a sales
promotion activity. -his section overviews the five stages of a buying decision.
2.2.1.1 Prob!m R!cognition
-he buying process starts when the buyer recogni7es a problem or need that triggered by
internal or e.ternal stimuli. 4eing clear about what consumers want, the decision to achieve will
go to the
later stages of the process. 4eyond internal stimulus, the consumer may be stimulated by an
e.ternal stimulus. For e.ample, a teenager may admire a friends new mobile set or see a -5
ad,
which triggers thoughts about the possibility of making purchase. -he marketers need to
identify these stimuli that trigger a particular need by gathering information of customer. -hen
they can
develop sales promotion and advertising that trigger consumer interest. /o the marketer may
increase consumer motivation )see $.$.? /ales promotion and Dotivation, by
entertainment
option so that a potential purchase gets serious
consideration.
2.2.1.2 Information (!arc$
-he second stage in the consumer decision1making process is information search related to
their
perception. 2s internal search, for routine, repetitive purchases, previously ac8uired
information that is stored in memory is sufficient for comparing alternatives and making a
choice.
If the internal search is not enough, the consumer will seek additional information by engaging
in e.ternal search includeJ Personal sources, such as friends, relatives, or co1workersF
commercial sources, such as information from advertising, salespeople, or point1of1purchase
displays and the InternetF public sources, including articles in maga7ines or newspapers and
reports on -5.
For e.ample, the selection of a movie to see on a -hursday night might involve simply talking
to a friend. 2 more comple. purchase such as a new mobile set might use a number of
information sources1discussion with family members and friends or viewing articles in
maga7ines, newspapers and -5 advertising. 2t this point in the purchase decision, the
information providing aspects of advertising are e.tremely important.
2.2.1.# At!rnati-! E-auation
2fter ac8uiring information during the information search stage of the decision process,
the
consumer moves to alternative evaluation. In this attitude formation stage, the consumer
compares the various brands or products and services that capable of satisfying the needs or
motives that initiated the decision process. 6ere, first consumers try to safety a need. /econd,
the consumer is looking for certain benefit from the product solution. -hird, consumer sees
each product as a bundle of attributes )*otler, *eller, $!!H,. -he attributes of interest to buyer
vary by product. For e.ample, 6otelsJ 3ocation, cleanliness, atmosphere, priceF Dobile phoneJ
/creen, sound, outlook, priceF -ireJ /afety, life, 8uality, price.
Problem
recognition
Information
search
2lternative
evaluation
Purchase
decision
Postpurchas
eevaluation
2. /tages in the "onsumer =ecision1Daking Process
Dotivation Perception
2ttitude Integration 3earning
4. ;elevant Internal Psychological
Processes
Figure $.J 4asic model of consumer decision making, /ourceJ 4elch
)$!!>,
2.2.1.% Purc$a"! D!ci"ion
2t some point in the buying process, the consumer must stop searching for and evaluating
information and integrate them to make a purchase decision. It is the most important stages
of
buying decisionF because the time spent making a decision is wasted if it is not converted into
action.
6ere the marketer can use advertising as a reminder to keep their brand names in front of
consumers and run periodic promotions to discourage consumers from switching brands. In
this
stage, promotional tools like coupons or premium offers can influence decisions at the time of
purchase.
2.2.1.) Po"t 1urc$a"! E-auation
-he consumer decision process does not end with the purchase. 2fter using the product
or
service, the consumer compares the level of performance with e.pectations and is either
satisfied or dissatisfied. -he post purchase evaluation process is important because the feedback
ac8uired from actual use of a product will influence the likelihood of future purchases.
Positive or negative performance may influence the repeat purchased )see $.$.>..$ Operant
formation
"onditioning,. 2nother possible outcome of purchase is cognitive dissonance )see $.$.&.$
2lternative ;esponse 6ierarchies,.
-hese five steps are basic steps that each person more or less goes through when making
any kind of decision. 2s argued in section $.$.?.? #laboration 3ikelihood Dodel, sales
promotion can function as a shortcut through all the different stages in the decision making
process.
-hus the marketer :ob therefore doesnt end with the consumer purchase. Darketer must
monitor post purchase satisfaction, post purchase action and plan to shape it into repeat
purchase )$.$.>..> shaping to ;epeat Purchase 4ehavior,.
2.2.2 &ark!ting Communication
/econd, it needs to review the communication process between the manufacturer and
customer
that is the most challenging part for any company in marketing their products .6ere we will
discuss this comple. process of e.changing the promotional messages of a product through
advertising that can influence the consumers purchase decision heavily.
In this section we study the basic elements of marketing communication process
through advertisements. /ender and receiver are the main two elements in the total
communication process and the message and channel are the ma:or two communication tools.
Four others are the ma:or communication functions and processesJ encoding, decoding,
response, and feedback. -he last element, noise, refers to any unrelated factors in the
system that can interfere with the process and work against effective communication.
/ource
#ncoded
Dessage
-ransm
ission
=ecoded
Dessage
;eceiver
0oise 0oise
Feedback
Figure $.$J 2 model of the communication process, /ourceJ /chewe, )+A!,.
2.2.2.1 (ourc! Encoding
2s the first element of the process, source is the group or person that e.change products
promotional message to another group or person. In this process the source may be an
individual )say, a salesperson or hired spokesperson, such as a celebrity, who appear in a
companys advertisements, or a non personal entity like the corporation or organi7ation itself
)4elch, $!!>,. For e.ample, in the advertisement of a -oilet "leaner, the popular actor or hero
like Cahid 6asan or Ferdous are the sources since they appear as a spokesperson for the
product. /o in selecting the communicator the advertisers must be careful due to the receivers
perceptions and believes toward the communicators.
-he sender initiate the process by selecting familiar words, symbols or pictures to represent the
products message that is known as encoding i.e. putting the thoughts, ideas, or information
into a symbolic form. -he senders goal is to encode the message in such a way that it will be
understood by the receiver. Dany symbols have universal meaning like the familiar circle with
a line through it to indicate no parking or no smoking. Dany companies also have
familiar symbols like 0ike, 2didas, @rameen Phone, 4aglalink, 2"I 3imited around the
country.
2.2.2.2 &!""ag!
9hen we speak, the speech is the message. 9hen we write, the writing is the message. 9hen
we
gesture, our facial e.pressions are the message. In advertising, this may simply write some
words in television or listening in radio. 6ere it needs to remember that the feeling or image
created by the ad of a product is vital thing for the customer feedback.
For e.ample, in the perfume advertisement it is seen that a charming picture along with the
name can create a feeling of attraction and between the man and woman. For this now a days
the advertiser and marketer are attempting to focus on semiotics, which e.plains the
nature of different words, gestures, signs or symbols meaning.
"onsumer researcher Dichael /olomon notesJ 'From a semiotic perspective, every marketing
message has three basic componentsJ an ob:ect, a sign or symbol and an interpreter
)4elch,
$!!>,. -he ob:ect is the product that is the focus of the message. -he sign is the sensory
image
that represents the intended meanings of the ob:ect. -he interpreter is the meaning derived. For
this reason marketers may use trained person for the better understand the conscious
and subconscious meanings of nonverbal signs and symbols in their ads transmit to consumers.
For e.ample, sometime it is seen that many company arrange regular training for the sales
man to better understand the meaning of new fashion and clothing and transmit it to young
consumers.
6ere it should be also remembered that some advertiser and marketer are doubtful about the
importance of semiotics. -hey argue that the meaning of an advertising of marketing
communication lies not in the message but with the people who see and interpret it.
2.2.2.# C$ann!
-he channel is the medium through which the message travels from the sender to the
receiver
)Cudge, $!! O4 p>AH,. 2t the broadest level, channels of communication are of two types,
personal and non personal )4elch, $!!>,. 6ere the sales man can works as personal channels
by face1to1face contact in delivering the products message to a buyer. <sing word1of1mouth
communication, classmates, friends, neighbors, co1workers, or family members are also serve
as personal channels. 0on personal channels can bear the promotional messages without
any interpersonal contact between marketer and customer. /ince through the non personal
channels these messages are sent to many individuals at one time, hence sometimes it referred
to as the mass media or mass communications.
For e.ample, a cricket match between India and Pakistan or a football match between
2rgentina and 4ra7il on a -5 channel may be seen by huge audiences at a time through the
mass media. 0on personal channels of communication consist of two ma:or types, print and
broadcast. Print media include newspapers, maga7ines, direct mail, and billboardsF broadcast
media include radio and television.
2.2.2.% R!c!i-!r D!coding
6ere the receivers are the consumers in the target market who read, hear or see the
marketers
message and decode it. -hrough decoding marketers messages are translated into a form
that can be understand by the customer. -his process is heavily influenced by the receivers
frame of reference or field of e.perience, which refers to the e.periences, perceptions,
attitudes, and
values )4elch, $!!>,. =ecoding process must match with the encoding process for the better
feedback by the customer.
-he marketer and the consumer each have a frame of reference that they bring to the
communication situation. #ffective communication is represented by the overlapping of the
two frames. For this better understand the customers needs, the marketer re8uired more
information and knowledge about the customer.
2.2.2.) Noi"!
0oise represents the communication barriers that can distort or interfere with the reception of
the
promotional message. #.amples of noise source include errors in the encoding, error in a
radio or television signal, information overload or cultural differences. It can be added here,
when consumer watching their favorite ad on -5 and an error occurs in the signal transmission,
it will clearly interfere with their response and lessening the impact of the ad. 0oise may also
occur when there is a huge gap in fields of e.perience of the marketer and consumer. -he
more fields of e.perience between them, the less this type of noise will arise.
2.2.2.2 0!!dback
-his interesting part of the communication is communicated back to the advertiser. 2fter
seeing, hearing or reading, the consumer reacts in a variety of forms to the advertising
message. For
e.ample, in a personal1selling situation, customers may pose 8uestions, comments, or
ob:ections or indicate their reactions through nonverbal responses such as gestures and frowns.
-he salesperson has the advantage of receiving instant feedback through the customers
reactions. 4ut in the case of mass media advertisers are not in direct contact with the
customers. 9hile the ultimate form of feedback occurs through sales, it is often hard to show a
direct relationship between advertising and purchase behavior )4elch, $!!>,. /o to obtain
the customers feedback, marketer should use customer study, store visits or retort cards. 9ith
this information, the advertiser can identify the reasons for success or failure in the
communication process and make changes.
/o it can be concluded hare, successful e.change of sales promotional messages
through advertising that can influence the consumer behavior is achieved when the marketer
selects a suitable source, develops a properly encoded message and then selects the channels or
media that will best reach the target customer so that the messages can be effectively decoded
and delivered.
2.2.# Con"um!r .!arning B!$a-ior
If anyone wants to study, e.plain and predict the consumer behavior at first it is very
important to know how consumer learn the information, knowledge and e.perience of a
product that they
use in making purchase decisions. -o understand this importance it needs to study
various approaches of learning theories and their correlations for advertising and sales
promotion.
3earning theorists believe that learning is produced through the interplay of drives, stimuli,
responses and reinforcement )*otler, *eller, $!!H,. 6ere it is e.amined two basic approaches
of
learning that are behavioral approach and cognitive learning
theory.
2.2.#.1B!$a-iora A11roac$ of .!arning
-his section studies some popular learning theories and applies these theories on
consumers
behavior to describe how a company facilitates the consumer learning by sales promotion and
advertising. "lassical conditioning and operant conditioning are the two basic principles of
behavioral approach that we have e.amined to get at better understanding on how sales
promotion and advertising may affect the consumers mind.
2.2.#.1.1Ca""ica Conditioning T$!or'
6ere the "lassical "onditioning theory is applied as a learning theory to evaluate how sales
promotion and advertising can influence the consumers buying decision process.
-his
conditioning grew out the e.periments to teach dog to salivate in response to the ringing the
bell, conducted by ;ussian physiologist Ivan Pavlov )Cudge, $!!,.
Condition!d
(timui
Unconditiona
(timui
R!"1on"!
Pavlov 4ell Food /alivation
/ales Promotion 0ew 2d 0ew Offer 4uy)#.citement,
Figure $.>J "lassical "onditioning and /ales Promotion )Proposed
model,
6ere the dog was conditioned to e.pect food every time a bell rang. -he food would work as
an unconditional stimulus and the dog would respond to it with salivation. -he ring of the
bell would be a conditioned stimulus. 6ere it is important to concern about the repetition
that depends on how close the unconditioned and conditioned stimuli occur together.
It is fitted here the sales promotion in the classical conditioning. 4oth consumer and trade
promotion including coupon, discount and attractive offer it becomes the conditioned stimulus.
2lternatively when consumer will see a sales promotion, they will become e.cited
automatically and develop a positive feeling towards not only on the promotion but also the
products that leads the consumer to purchase. 4ecause consumers are conditioned here to link
positive feelings to sales promotions and in every time when they see a sales promotion, they
recall positive feelings which are associated earlier.
2n e.ample like a product of 2"I 3imited, 5anish -oilet "leaner offers a 8uality mug in
each
&!! ml bottle that would serve as unconditional stimulus while 2"I limited as a prominent
manufacturer of 8uality product would function as conditioned stimulus. #very time one would
mention 2"I product to the consumer, he or she would feel the 8uality because the
consumer links to the 8uality product to the 2"I 3imited.
In 4angladesh, the new advertisement has been associated with sales promotion of any
telecommunication service provider. #very time when the customers watch a new
advertisement of any company it can remind them of a new discount offer. -he new
advertisement is therefore a stimulus that can generate associations linked to promotion.
-hus it can be defined the classical condition theory as a stimulus response theory which
argues that there will be a response to every stimulus. Furthermore, 5idal et al. )$!!&sp,
showed that the ma:ority of students in their research chose to pick a product where sales
promotion was
attached to it. -herefore, it is argued that sales promotion could function as a
conditioned stimulus.
In a discussion about classical conditioning consumer behavior, =i"lemente )$!!>, stated
that classical conditioning is often identified in the marketplace like the products of fast food
that are
often marketed by associating their names with the sight and sound like si77ling hamburger,
soft drinks that are associated with catchy :ingles. /ince these buying activities are associated
with
the name or new advertisement thus it can be concluded the new advertisement as
conditioned stimuli that make the consumer automatically thinking about sales promotion like
new offer or
discount of a product.
2.2.#.1.2 O1!rant Conditioning
In the operant conditioning 4.F. /kinner argues that behavior is a function of its conse8uences.
People learn to behave to get something they want or to avoid something they dont want )Cudge,
$!!,. In the classical conditioning the individual participate in the learning process passively by
receiving stimuli only, and conditioning occurs as a result of e.perience to a stimulus that
occurs before the response.
-he main difference here with operant conditioning approach that the individual must
actively participate or act on some aspect of the environment for learning. Operant
conditioning is
sometimes referred to as instrumental conditioning because the individuals response
is instrumental in getting a positive reinforcement )reward, or negative
reinforcement
)punishment,. ;einforcement is an important term in operant conditioning that is the reward
or favorable conse8uence associate with a particular response )4elch, $!!>,.
4ehavior
)"onsumer uses product,
Positive or negative
"onse8uences
Increase or decrease
In repeat purchase
Figure $.?J Operant "onditioning and /ales Promotion, /ourceJ 4elch
)$!!>,
-his concept of operant conditioning can be applied to marketing as shown in Figure. -hus, if a
consumer buys a product in response to an advertisement or promotion and gets a positive
outcome, the possibility of using this product again will increase. Inversely if the outcome is
not favorable, the possibility of buying the product again decreases. /o the companies
should attempt to provide their customers with products that satisfy their needs and also reward
them to reinforce the probability of repeat purchase. -his reinforcement can also be done not
only by sales promotion but also by advertising. 3ike, many ads emphasi7e the benefits or
rewards to a consumer that he will receive from using a particular product. It may also occur
when an ad encourages consumers to use a particular product to avoid unpleasant conse8uences.
For e.ample, it can be added here in the advertising of a particular toothpaste, the
advertiser
often highlight that how this tooth paste will help to avoid negative conse8uences like
corrosion of teeth from other brands.
6ere it is important to remember that under a continuous reinforcement schedule, learning
occurs most rapidly in which every response is rewarded. 4ut the behavior is likely to close
down when the reinforcement stops. /o marketers must provide continuous reinforcement to
consumers. 4ut under a partial reinforcement schedule learning occurs more slowly in which
only some of the individuals responses are rewarded. @enerally a firm does not show
interest in continuous reinforcement due to the consumers dependency on it and stop buying
the brand when the reinforcement is removed. 2 study that e.amined the effect of
reinforcement on bus ridership found that discount coupons given as rewards for riding the bus
were as effective when given on a partial schedule as when given on a continuous schedule
)4elch, $!!> p$%,. 6owever the cost of giving the discount coupons under the partial schedule
was considerably less.
2.2.#.1.# ($a1ing to R!1!at Purc$a"! B!$a-ior
In the promotional activities the shaping procedures are generally used to a new or
unknown
product in making repeat purchase by the consumers. /ales promotions may take
consumers from trail to repeat purchase. 6ere the marketers should be careful how they use
sales promotion. If they drop the incentive too early, consumers may not establish the desired
behavior. 6owever, if they overuse the incentive, consumers purchase may become
contingent on the incentive rather than the product.
A11ro3imation (!4u!nc! ($a1ing Proc!dur!
.Induce product trial
$.Induce purchase with
little financial obligation
>.Induce purchase with
moderate financial
obligation
?.Induce purchase with full
financial obligation
.Free samples distributedF
large discount coupon
$.=iscount coupon with
little costF small
discount
>.=iscount coupon with
moderate cost
?.Purchase occurs without
coupon assistance
Figure $.&J ;epeat Purchase 4ehavior, /ourceJ 4elch, )$!!>,
Figure shows that the first step is to introduce product trail which can be done with the use
of free sample, large discounts or coupons. -he ne.t step in order to make consumers repeat
purchase, the purchase is induced with little financial obligation. -he process will continue
with induce purchase with moderate financial obligation which could be small discounts. -he
process will end with induce purchase with full financial obligation.
6owever, the model contradicts with that if a new product gets introduced with a low price, the
consumers internal reference price will be ad:usted to the introduction price, and when the
price increases, consumers may be unwilling to pay the full price. 6ere it is important to
concern these types of circumstances. In this situation the sales promotion activities can be
tailored to fit the consumers needs for the category product. If the category induces
e.citement, a sweepstake can be use instead of a discount etc. Doreover offering the
continuous incentive may make
consumers dependent on it and consumer may stop buying the product when the incentive
is withdrawn.
2.2.#.2 Cogniti-! A11roac$ of .!arning
In the consumers behavioral approach of learning, all the theories that are applied are
as mechanistic view of the consumer and emphasis on some e.ternal stimulus factors. It is
assumed
on aboveF the e.ternal stimuli can generate the predictable responses, ignoring
consumers internal psychological processes such as motivation, thinking, and perception.
-here is a
contradiction in this simplified e.planation of behavioral learning approach with
cognitive approach. 6ere in the cognitive approach the consumers learning is a comple.
mental process.
-his cognitive approach of learning and decision making has dominated the field of
consumer behavior in recent years.
@oal
Purposive
behavior
Insight
@oal
2chievement
Figure $.%J -he cognitive learning process, /ourceJ 4elch, )$!!>,
Figure >.% shows the cognitive view the learning process. /ince the choices and decision
making are involve in consumer behavior according to the cognitive perspective, it is
particularly important to the marketers. "ognitive processes such as perception, formation of
beliefs about brands, attitude development and change, and integration are important to
understanding the decision1making process for many types of purchases )4elch, $!!>,. 6ere it
is e.amined the sub processes in our discussion of decision making process model with
relevant cognitive approach to consumer behavior.
2.2.% (a!" 1romotion and &oti-ation
One consumer may perceive the need to purchase a new mobile phone set from a
functional
perspective and focus on reliability and low price. 2nother consumer may see the purchase of
it as more of a fashion statement and focus on the design and image of various brands. For
the better understanding of consumer purchases reasons, now1a1days marketers give special
attention to e.amine the consumers motives that is, those factors that motivate a consumer to
take a particular action. ;egarding this, in this section it is e.amined three best1known theories
of motivation of 2braham Daslow, /igmund Freud and Fredrick 6er7berg that carry different
implications for consumer motivation analysis and marketing strategy.
2.2.%.1 &a"o,5" Hi!rarc$' of N!!d"
Psychologist 2braham Daslow hypothesi7ed five basic levels of human needs and positioned
in a hierarchy based on their significance. 2s shown in figure the five needs are ),
physiologicalJ
the basic and prime needs for things re8uired to sustain life, such as food, shelter, clothing, and
se.F )$, safetyJ the need for security and protection from physical harmF )>, socialJ the desire
to
have satisfying relationships with others and feel a sense of love, affection, belonging, and
acceptanceF )?, esteemJ the need to feel a sense of accomplishment and gain recognition,
status,
and respect from othersF and )&, self actuali7ationJ the need for self1fulfillment and a desire
to
reali7e ones own potential )4elch,$!!>,. Daslow separated the five needs into the lower1level
physiological and safety needs must be satisfied before the higher1order needs become
meaningful. 2fter satisfying these basic needs then the individual attempt to moves on
satisfying higher1order needs like self1esteem. 2ctually the lower1level needs are the main
motivating source for the consumers buying decision. -hus the basic physiological
needs are most important here because if the marketers are failed to meet the basic
physiological needs then the higher1level needs are meaningless.
/elf
actuali7ation
#steem needs
)self1esteem,
recognition, status)
/ocial needs
)sense of belonging, love
/afety needs
)security, protection,
hysiological needs
)hunger, thirst,
Figure $.HJ Daslows 6ierarchy of 0eeds, /ourceJ *otler, *eller, )$!!H,
6ere, Daslows hierarchy of needs is e.amined on the consumers purchase behavior as the
consumer attempt to reach the ne.t level of e.perienced needs after fulfilling the basic
needs. 0ow a days consumers are interested in the products that can satisfy not only the
basic needs but also fulfill some higher level needs like social or esteem. 2fter satisfying the
physiological needs, here sales promotion can give the opportunity to fulfill other needs by
making consumers feel entertained, e.ited, smart and lucky.
For e.ample, in marketing different detergent powder very often the ad focuses on the
husbands smartness with clean clothes in the office or outside home that leads to a good
relationship between husband and wife )social needs,. /ometimes the ad is related to child
success in the game or competition )recognition, status, leads to love between parents and
child )social needs,, as well as husband promotion in the office )recognition, status,. /o the
sales promotion should be offer in such a way that can satisfy these upper level needs. 2nd the
advertising campaigns have to be planned to show how a brand can fulfill these needs. 6ere it
is important to remember that different market segments highlight different level of needs. For
e.ample, a wife and children within a new family may be attempting to satisfy social or self1
esteem needs in purchasing a large screen television, while the husband will focus more on
8uality and security )safety needs,. 6ere the television company uses the advertisement in
meeting both social and security needs of consumers.
2.2.%.2 P"'c$oana'tic T$!or'
-o study of consumer motives the psychoanalytic approach also can be e.amined that
structured
by /igmund Freud. -hough Freud deals with the personality structure and development, he also
studied the primary motivations for human behavior. It can be applied to the study of consumer
behavior by the marketers. 2ccording to psychoanalytic approach consumers motivations for
purchasing are often very comple. and unclear to the casual observer and to the consumers
themselves )4elch, $!!>,. -here a number of ma:or corporations are using
psychoanalytic techni8ues as motivation research to determine consumers purchase motives.
In marketing, the motivation researchers use a variety of methodologies including in1
depth interviews, pro:ective techni8ues, association tests, and focus groups to have an insight
view of primary causes of consumer behavior. Focus groups and in1depth interviews are
important methods for obtaining the deeper insights of consumers feelings. /uch associations
often lead to identify interesting insights as to why people purchase. For e.ampleJ
o "onsumers prefer large cars because they believe such cars protect them from the
':ungle( of everyday driving.
o 9omen wear perfume to 'attract a man( and 'glorify their e.istence.(
o 9hen people shower, their sins go down the drain with the soap as they rinse )4elch,
$!!>,.
-his psychoanalytic approach has been critici7ed as being too vague, unresponsive to
the
e.ternal environment. /ince motivation research studies typically on few participants, its
findings are not applicable to the whole people. 4ut ignoring the psychoanalytic approach, it is
also difficult tin our understanding of consumer behavior. Its insight findings can often
be applied as a foundation of advertising design according to buyers deep feelings, hopes,
wants, and fears. /uch approaches are often more effective than rational approaches.
Finally, it is known that buyers are sometimes motivated by symbolic as well as functional
drives
in their purchase decisions. One study has shown that two1thirds of all prime1time -5 shows
present an average of &.$ scenes per hour that contain talk about se.. -hus, one can see the use
of se.ual appeals and symbols in ads )4elch, $!!>,.
/atisfaction =issatisfaction
-raditional 5iew
/atisfaction 0o /atisfaction
6er7bergs 5iew
0o =issatisfaction =issatisfaction
6ygiene Factors
Figure $.AJ 5iew of /atisfaction E =issatisfaction, /ourceJ Cudge, )$!!,
2.2.%.# T,o60actor T$!or'
Psychologist Fredrick 6er7berg developed the two1factor theory that also known as
motivation1
hygiene theory. 2ccording to 6er7berg, the factors that cause dissatisfaction are separate
and distinct from those that cause satisfaction )Cudge, $!!,. 6e relates intrinsic
factors to
satisfaction and e.trinsic factors to dissatisfaction. Dotivating the consumers purchase, it can
be added the 6er7berg view. -hus the absence of dissatisfies of a product is not enoughF
satisfier must be present to force and motivate a consumers purchase. For e.ample, a cell
phone without a warranty would be a satisfier. Ket the presence of a product warranty
would not act as a satisfier or motivator of a purchase, because it is not a source of intrinsic
satisfaction. On that occasion, ease of use would be a satisfier.
6ere there are two suggestions. First, the marketers should do their best to remove the factors
cause dissatisfactions. /econd, the marketers should identify and add the ma:or satisfiers or
motivators of consumer purchase. -hese factors of satisfaction will make the ma:or difference
to the particular product and consumers purchases.
2.2.) Con"um!r R!"1on"! B!$a-ior
-his section has analy7ed consumers response behavior as an essential and final part of our
study. 2 number of models have been developed to represent the stages a consumer may pass
to
their response behavior. 6ere we have studied the innovation adoption model as a traditional
response hierarchy, the alternative response hierarchies, the cognitive response approach
to
understand involvement and the elaboration likelihood
model.
2.2.).1 Inno-ation Ado1tion &od!
2s a traditional response hierarchy model, the innovation adoption model )4elch,
$!!>,
represents the stages consumers pass through in adopting a new product )purchase, as shown in
the Figure $.+. /ales promotion is essential for the marketer to make consumers adopt a new or
unknown product. -he model takes the consumer through the stages from awareness to
adoption.

L 2wareness
$
L Interest
>
L #valuation
?
L -rial
&
L 2daption
Figure $.+J Innovation adoption Dodel, /ourceJ 4elch, )$!!>,
2s mentioned the first stage is awareness. /ales promotion can create awareness. -he
second step is interest. Interest can be created by offer different incentives that will fit the
consumers needs. 2gain different sales promotion activities can be used. -he third step is
evaluation which occurs in the consumers minds. -he fourth step will lead to trial where
consumers will try the product. If consumers like the product, the last step will be adoption.
6owever, if consumers dislike the product there will be no repurchase. It is important to
mention that consumers will go through the same stages if they are dealing with an already
known product, and sales promotion can contribute with the same as for the new and unknown
product.
2.2.).2At!rnati-! R!"1on"! Hi!rarc$i!"
-he effect of sales promotion will differ depending on the product category. /ales
promotion
will not have the same effect on purchase in a high involvement category compared to low
involvement category as shown in the Figure $.!. It is suggested that consumers who purchase
products in a high involvement category tend to follow the standard learning model
which consist of the steps learn1feel1do se8uence which correspond to the rational approach of
making decision.
6igh 3ow
6igh
7.!arning &od!8
."ognitive )3earn,
$.2ffective )Feel,
>."onative )=o,
7.o, In-o-!m!nt &od!8
."ognitive )learn,
$."onative )=o,
>.2ffective )Feel,
3ow
7Di""onanc!9 Attribution
T$!or'8
."onative )=o,
$.2ffective )Feel,
>."ognitive )3earn,
Figure $.!J 2lternative ;esponse 6ierarchy Dodel, /ourceJ 4elch, )$!!>,
First, consumers will learn about the product, and thereafter, they will include feelings
or intuition about the upcoming purchase. -he last step will be consumers buying the product.
In a high involvement category, sales promotion can be used to give consumers a reason to buy
the product. In learn and feel phases, sales promotion will act as an e.tra incentive )see
$.$.?.
Daslows 6ierarchy of 0eeds, to purchase the brand. It will give consumers more utility
for
money )e.citement, entertaining etc.,. 6owever, consumers are not only looking at the utility
for money benefit but also on 8uality fulfillment of their needs such as image, 8uality etc. It is
suggested that their needs must first be fulfilled before sales promotion will affect the purchase
decision of the consumers )4elch, $!!>,.
6owever, if consumers are making a purchase in a low involvement category sales
promotion will work differently. It is suggested that consumers will go through a do1learn1feel
se8uence. "onsumers will first buy the product and thereafter learn about it, and will end with a
feeling towards it. It is argued that consumers do not compare the message with previous
ac8uired beliefs, needs, or past e.periences. -he decision to buy a product can be triggered by
a sales promotion signal that is sufficient to make consumers buy the product which can be
related to the section $.$.&.? #laboration 3ikelihood Dodel E $.$.>.. "lassical "onditioning
-heory.
2.2.).# Cogniti-! R!"1on"! A11roac$
It is studied the consumers cognitive responses to determine the types of responses bring
to
mind by an ad of promotional message and how these responses relate to attitudes toward the
ad, brand attitudes, and purchase intentions. 6ere it will study the three basic categories of
cognitive
responses like productMmessage, source oriented, and ad e.ecution thoughts and how they may
relate to attitudes and intentions.
Product9&!""ag! T$oug$t"J 6ere much attention has focused on two particular types of
responses, counterarguments and support arguments )4elch, $!!>,.4y
counterarguments
consumer opposed the message. For e.ample, after seeing an ad of a 5anish -oilet "leaner,
consumer may e.press their disbelief like, 'I dont believe that any toilet cleaner could get
that
stain outN( Other consumers who see this ad may generate support arguments, by thinking like,
'5anish -oilet "leaner looks like a really good product and I think Ill try it.(
Figure $.J 2 model of cognitive response, /ource, 4elch )$!!>, "ounterarguments relate
negatively to message acceptance. For e.ample, a consumer viewing an
ad that attacks a favorite brand is likely to engage in counter arguing. -hus the more
the consumer counter argues, the less likely he or she is to accept the position advocated in the
ad. /upport arguments, on the other hand, relate positively to message acceptance. -hus,
the marketer should develop promotional messages or ads that minimi7e counter arguing and
encourage support arguments.
(ourc!6Ori!nt!d T$oug$t"J -he negative thoughts about the spokesperson or
organi7ation
generally lead to a reduction in the advertising message acceptance that also discussed
in
>.$..section. If consumers view a particular spokesperson annoying or undependable, they
are
less likely to accept what this source has to say. -hus the marketer should appoint spokesperson
that can reach their target audience and also carry the effects over to the advertising message.
Ad E3!cution T$oug$t"J 6ere it is important to remember the individuals thoughts about ad
e.ecution factors such as the creativity of the ad, the 8uality of the visual effects, colors,
and voice tones and innovation. -hey are important because these reactions may be transferred
to the product or directly influence purchase intentions of a consumer. ;egarding this, in recent
years, much concentration has centered on consumers affective reactions toads, especially on
-5 ads. #motional appeals are also using in advertising to bring to mind the feelings and
affective reactions toward a product.
One study found that people who en:oy a commercial are twice as likely as those who are
neutral toward it to be convinced that the brand is the best )4elch,$!!>,.
2.2.).% Eaboration .ik!i$ood &od!
-he #laboration 3ikelihood Dodel that is used to define in what situations sales promotion
can
affect the consumers mind. ;ichard Petty and Cohn "acioppo e.plain the persuasive
communication )ad, leads to persuasion or influencing ones buying behavior )4elch, $!!>,.
2ccording to this model, there are two routes to persuasionJ the central route and the peripheral
route )*otler, *eller, $!!H,.
<nder the central route to persuasion, the receiver is viewed as being very active, involved, and
evaluates the communicated message. <nder the peripheral route to persuasion, rather
than evaluating the information presented in the communicated message, the receiver
relies on peripheral cues to :udge the product. It is stated that sales promotion can have an
effect on the purchasing behavior if one is looking on the peripheral route. -hose consumers
who select products only by following the peripheral route can be persuaded to choose
another productMbrand due to cues from sales promotion )4elch, $!!>,.
/ales promotion can add images such as brand display cues that could make consumers
choose the promoted product, because those consumers who choose to follow this route do not
seek in1 depth information about the productF they only rely on the e.ternal cues. For
e.ample, consumers traveling through the peripheral route may only consider the promotion
signal due to its simple relationship with actual price reduction in the consumers learning
history as seen in section $.$.>.. "lassical "onditioning -heory. /ince the consumers are not
engaged in detailed information processing, they may proceed to react to the promoted brand as
if a typical price promotion were in effect )they will more likely purchase it, )Inman et al.,
++!,. 2s this model suggests, sales promotion can influence the purchase behavior of a
consumer which is backed up by the empirical evidence that only & I of the consumers knew
the price of the brand they :ust purchased )Inman et al., ++!,.
6owever, if consumers are traveling through the central route to persuasion, consumers might
go
beyond a promotion signal to consider the promoted brands relative price and other
information like the 8uality of the promoted brand. It is suggested that sales promotion has the
biggest effect to affect or influence a consumers purchase behavior, if consumers travel through
the peripheral route.
2.2.).) (ummar' of R!"1on"! b!$a-ior
2s it is seen from our analysis of consumers response behavior of different perspectives
by
advertising, 5akratsas and 2mbler also recently reviewed more than $&! :ournal articles and
books in an effort to better understand how advertising works and affects the consumer
)4elch,
$!!>,. On the basis of their studies, they concluded that though effects hierarchies have been
actively employed for nearly !! years, there is little support for the concept of a hierarchy in
the
sense of temporal se8uence. -o understand the critical intermediate effects between advertising
and purchase, they include cognition, the thinking dimension of a persons responseF affect,
the
feeling dimensionF and e.perience, which is a feedback dimension based on the outcomes of
product purchasing and usage.
-hey also conclude that consumers responses to advertising are filtered by factors such as
motivation and ability to process information, which can completely change the
consumers
response to advertising. -hey suggest that the effects of advertising should be evaluated using
these three dimensions, depending on factors such as the product category, stage of the
product
life cycle, target audience, competition, and impact of other marketing1mi.
components.
Other researchers are also emphasi7es on different dimensions of response as well. For
e.ample, 6yun et al. )$!, stated that advertising1induced emotional responses that positively
influence consumers perceived value. 6e indicates four dimensions of advertising )relevant
news, stimulation, empathy, and familiarity, that have a significant impact on inducing patrons
emotional responses. 2mong other, stimulation )or entertainment, is the most significant to
influence on patrons pleasurable responses which create positive behavioral intentions in
consumers.
2dvertising input
Dessage content, media scheduling,
repetition
Filters
Dotivation, ability
)involvement,
"onsumer
"onsumer behavior
"hoice, consumption, loyalty, habit,
etc.
Figure $.$J 2 frame work for studying how advertising works, /ourceJ 4elch, )$!!>,
-he implication here is that marketers should concentrate on cognition, affect, e.perience and
entertainment that advertising may affect. 6owever, they should not assume a particular
se8uence of responses but, rather, carry to investigate and analysis to better understand how
sales promotion and advertising may affect consumers response in various productMmarket
situations. -hose responsible for planning need to learn as much as possible about their target
customer and how it may respond to the promotional message through advertising. -hese
various models presented in this section provide a deeper insight of consumers response to
persuasive messages and hopefully help marketers to make better decisions in planning
and implementing these integrated marketing strategies like sales promotion and advertising.
CHAPTER #
&ETHOD
In the following section, it will be e.plained which methodical considerations have been
made, and which methodical approaches have been used for the thesis.
#.1 &!t$odoog'
-he thesis is not only an e.plorative research but also a normative research. -he
e.plorative approach will be used in the research 8uestions '-heoretically and practically
what effect does
sales promotion and advertising have on the buying decision process in the minds of
the consumersO( 2nd the second one '6ow can marketers influence the sales volume of a
product
finally by considering these theoretical and practical findingsO( has a problem solving
or normative research approach because concrete suggestions on how to solve this 8uestion will
be
added. -hus to answer the problem statement, it is need to answer these 8uestions
mentioned above.
=ue to the thesis nature, there will be used 8ualitative methods. 4y the central idea in
8ualitative methods, one will develop a deeper understanding of a comple. problem like this.
Furthermore,
there will be used 8ualitative data in the analysis of the problem statement, because it
is estimated that there is enough e.isting 8ualitative material to make an analysis of the
problem
statement.
=ata
"ollection
=ata
2nalysis
;esults E
Findings
;ecommendation
Figure >. Dethodological Procedures, Own "reation
-he approach to the thesis is a deductive approach because there is an interest to see
the contradiction or support between the practical findings and the theoretical ones. -he thesis
approach of the first research 8uestion will be based on the relevant theory that will create
theoretical findings. -hese findings will attempt to answer the research 8uestion through the
chosen theories. -his is made of several theories, in order to get a broad perception on
consumers buying behavior. -hereafter, the thesis will use practical primary data with
hypothesis testing in order to compare with the theoretical findings that either support or
contradict with each other. Finally it will sum up the findings from research 8uestions and
make specific recommendations on how to influence the sales volume of a product using sales
promotion and advertising.
#.2 T$!or' of (ci!nc!
-he thesis deals with a marketing problem and is of e.plorative nature, because it deals with
a
relevant issue in the field of product marketing, which is important to e.plain. In order to
accomplish that, there have been discussed several theories of science to solve this
comple. issue.
-he theory of science for the thesis is based on the reality, which e.ist in individuals andMor
in
collective minds. -his means that there is not one real truth, but several competing truths.
It cannot be concluded if the one truth is more correct than the other truth. =ue to the
e.plorative nature of the thesis, it will also affect the analysis part of the thesis, because the
theoretical background will have an influence on how the practical data is decoded and
interpreted. -he thesis will :ump between the different theories and empirical data which is the
base for the analysis, which again will be part of the problem statement. -his means that
the problem
statement continuously will be seemed on from different perspectives, which will result in a
conclusion of the problem statement.
#.# Em1irica Data
2s stated in $. Dethodology, the thesis will use secondary empirical data. -he secondary
data
consist of scientific :ournals and various books. -he scientific :ournals are found from
the website by a keyword search which consisted of following wordsJ sales promotion,
advertising, consumer behavior, consumer choice, consumer purchase decision etc.
Furthermore, the thesis uses the references of the specific scientific :ournals to find more
information about specific topics.
It can be argued if the use of secondary empirical data that is up to date, but when the
consumer
are in the middle of a financial crisis which potentially can change the entire consumers
buying patterns.
#.% &!t$od critici"m
From outside it seems that the methods are chosen for conducting this thesis were the
appropriate
approaches in order to achieve the purpose of this study. /imilar to other, this study has several
characteristics that limit our findings. It is however important to mention some method
criticismsJ
-here were some troubles in selecting and organi7ing the theoretical models. It was really hard
to
combine and organi7e se8uentially different theoretical models from a lot of books and
:ournals. It was also very difficult tasks to conceptuali7e and summari7e the published :ournals
that are not only so confusing and ambiguous but also very time consuming.
-here were some difficulties in collecting and assembling the responses of the
8uestionnaires
because of different attitudes of the respondents. In addition, there were many unskillful
situations in collecting primary data from the respondents. Doreover, it was so irritating
to e.plain the genuine reasons, cause of conducting this research and our motive especially to
the female respondents. 4ut it needs to add here that the authors respect all the respondents in
this paper for their kind responses.
Doreover a lack of funds made it difficult to take the 8uestionnaire to all around 4angladesh.
It
is :ust collected the primary data from only four locations like =haka, Dymensingh, *hulna
and ;a:shahi. /ince the consumers behavior depends largely on their geographical location,
the authors feel that it should have been better if we add more location to get more reliable
picture regarding the issue we investigated. 9e have managed only three category products as
a sample in this thesis. -he findings would have been better if it was possible to add more
category products.
-hough there was an aim of including marketer and customer with their voice of same
category products in this study but even with a hard struggle to get only customers voice, the
authors did not manage to add the marketers voice. It would have had an impact on the overall
thesis.
"onclusively, still there is a belief that even with the above method criticisms this thesis still
carries the hope because, besides other factors, the respondents were always very supportive
and always serving to the re8uirement of the mission for additional information. -he authors
are still confident that this thesis has fulfilled several marketing re8uirements by not only
emphasi7ing the positive aspects of the method but also coming out clearly and honestly with
the potential limitations and criticisms on the issues to do.
CHAPTER %
DATA PRE(ENTATION AND ANA.:(I(
-he main ob:ective of this chapter is to analy7e, interpret and present the data that was
obtained from the findings.
2 total ! 8uestionnaires were sent dividing into > categories of product named mineral water
)$! respondents,, toilet cleaner )>! respondents,E telecommunication service provider )$&
respondents,and total >H& respondents who use these products were fully answered within
four location)=haka, ;a:shahi, Dymensingh, *hulna, in 4angladesh.
%.1Tab! Ana'"i";
Puestion J Dale or Female
5ariable Fre8uency Percentage )I,
Dale $>+ %>.H>
Female >% >%.$H
-otal >H& !!
-able ?.J Dale Female percentage
-he above analysis )table ?., indicates that of the respondents who fill the 8uestionnaires males
were %>.H>I and females were >%.$HI
Puestion $J 2ge
5ariable Fre8uency Percentage )I,
A1$& H? +.H?
$&1>& H! ?&.>>
>& above > >?.+>
-otal >H& !!
-able ?.$J 2ge percentage
It can be seen in the above analysis )table ?.$, that A1 $&years was the age of +.H?I of the
respondent, age group $&1 >& years formed ?&.>>I and >% years above were >?.+>I of the
respondents.
Puestion >J Occupation
5ariable Fre8uency Percentage )I,
/ervice holder %! ?$.%H
4usiness H& $!
Others)student, housewife etc, ?! >H.>>
-otal >H& !!
-able ?.>J Occupation percentage
-he above analysis )table ?.>, indicates that most respondents were service holders
accounting for ?$.%HI of the respondents, while business class respondents and other
respondents such as housewives and students were $!I and >H.>>I respectively.
Puestion ?J Family income
)monthly,
5ariable )tk, Fre8uency Percentage )I,
&!!!1$&!!! H& ?%.%H
$&!!!1>&!!! ?+ >+.H>
>&!!! above & >.%
-otal >H& !!
-able ?.?J Family income percentage
-he above table )table ?.?, shows that the family income of most respondent are between &!!!1
$&!!! taka monthly which stands at ?%.%HI, between $&!!!1>&!!!are >+.H>I while
respondents with family income above >&!!! taka are >.%!I
Puestion &J 3ocation
5ariable Fre8uency Percentage )I,
=haka !! $%.%H
Dymensingh +& $&.>>
*hulna +! $?
;a:shahi +! $?
-otal >H& !!
-able ?.&J 3ocation percentage
It can be seen in the above analysis )table ?.&, that the respondents from =haka city are
$%.%HI, from Dymensingh city are $&.>>I, from *hulna city are $?I and from ;a:shahi city
are $?I.
%.2 D!gr!! of r!"1on"! tab!"
Puestion J Product cant survive in competition without regular advertisements.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree $> $+ H! $$ >$.&?
2gree %A HH ? A% ?+.%!
<ndecided ? $ ! % .%!
=isagree $$ A + ?+ >.!%
/trongly disagree > ? & $ >.$!
-otal $! >! $& >H& !!
-able ?.%J Product survival with 2dvertisements
-he above table )table ?.%, reveals that >$.&?I of the customers strongly agreed that product
cant survive in competition without regular advertisements, ?+.%!I agreed, .%!I
were undecided, >.!%I disagreed and >.$!I strongly disagreed.
60.00
%
P
50.00% e
r
40.00%
c g
30.00%
e e
20.00%
n
10.00%
t
0.00%
a
32.54
%
49.60
%
1.60
%
13.06
%
3.20%
Strongly Agree Undecided Disagree Strongly
Agree Variab
le
disagree
"hart ?.J Product survival with 2dvertisements
Puestion $J 0ew ad of a product or service is a signal of new offers or incentives.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree $H >$ ?A !H $A.&>
2gree &? %% &> H> ?%.>
<ndecided ? > A $.>
=isagree >> $& A H% $!.$H
/trongly disagree $ ? & $.+>
-otal $! >! $& >H& !!
-able ?.HJ 0ew ad means new offers
-he above table )table ?.H, reveals that $A.&>I of the customers strongly agreed that new ad of
a product or service is a signal of new offers or incentives, ?%.>I agreed, $.>I were
undecided,
$!.$HI disagreed and $.+>I strongly disagreed
&!.!!I
P ?&.!!I
! ?!.!!I
r
>&.!!I
c
>!.!!I
! !
$&.!!I
$!.!!I
n
&.!!I
t
!.!!I
a
&.!!I
g !.!!I
$A.&>I
?%.>I
$.>I
$!.$HI
$.+>I
/trongly
2gree
2gree <ndecided =isagree /trongly
disagree
*ariab!
"hart ?.$J 0ew ad means new offers
Puestion >J Puality gift offer or price discount always motivate the customer to shift from
one brand to another.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree H $A ?A +> $?.A!
2gree &$ %A &$ H$ ?&.A%H
<ndecided % > ! $.%H
=isagree ? $& H A> $$.>
/trongly disagree ? % + + &.!%H
-otal $! >! $& >H& !!
-able ?.AJ Puality gift offers in motivation
-he above table )table ?.A, reveals that $?.A!I of the customers strongly agreed that 8uality
gift offer or price discount always motivate the customer to shift from one brand to another,
?&.A%HI agreed, $.%HI were undecided, $$.>I disagreed and &.!%HI strongly disagreed.
&!.!!I ?&.AHI
?!.!!I
>!.!!I
$!.!!I
!.!!I
!.!!I
$
?
$
.
$
$
.

>
I
&.!HI
e 2gree <ndecided =isagree /trongly disagree
"hart?.>J Puality gift
offers in motivation
Puestion ?J 2dvertising 8uality is a signal of
product 8uality.
5ariable Fre8uency
Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree A > $H
2gree >A ?% ?+
<ndecided $ ? ?
=isagree && &% >$
/trongly disagree H >
-otal $! >! $&
-able
?.+J
2dverti
sing
8uality
means
product
8uality
-he above table )table ?.+, reveals that
&.?HI of the respondents strongly agreed that
2dvertising 8uality is a signal of product
8uality, >&.?HI agreed, $.%HI were undecided,
>A.>I disagreed and A.$HI strongly disagreed.
&!.!!I
P
!
?
!
.
!
!
I
r
>
!.!!I
!
$!.
n
!.
a
!.!!I
&
.?
H
I
>
&
.
?
H
I
$.
%H
I
>A.>I
A.$HI
/
t
r
o
n
g
l
y

2
g
r
e
e

2
g
r
e
e

<
n
d
e
c
i
d
e
d

=
i
s
a
g
r
e
e
/
t
r
o
n
g
l
y

d
i
s
a
g
r
e
e
*ar
"
hart?.?J 2dvertising 8uality
means product 8uality
Puestion &J *nowing the products hottest information only depend on advertising.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree $? >A &? % >!.+>
2gree %& %? ?+ HA ?H.?%H
<ndecided H H ! ? >.H>
=isagree $$ % $! &A &.?%H
/trongly disagree $ & $ + $.?!
-otal $! >! $& >H& !!
-able ?.!J Products hottest information by advertising
-he above table )table ?.!, reveals that >!.+>I of the customers strongly agreed that
*nowing the products hottest information only depend on advertising, ?H.?HI agreed,
>.H>I were undecided, &.?HI disagreed and $.?!I strongly disagreed with this statement.
&!.!!I
P
?!.!!I
!
r
>!.!!I
c
$!.!!I
! ! !.!!I
n
!.!!I
>!.+>I
?H.?HI
>.H>I
&.?HI
$.?!I
t
/trongly
a
2gree
g
2gree <ndecided =isagree /trongly
disagree
*ariab!
"hart?.&J Products hottest information by advertising
Puestion %J /pecial gift offer always makes consumers feel entertained, e.cited E lucky.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree $H > %! A >.?H
2gree &A %? &H H+ ?H.H>
<ndecided & ? > $ >.$!
=isagree $& H &> ?.>
/trongly disagree & ? ? > >.?%
-otal $! >! $& >H& !!
-able ?.J /pecial gift offer make e.citement
-he above table )table ?., reveals that >.?HI of the customers strongly agreed that knowing
the products hottest information only depend on advertising, ?H.H>I agreed, >.$!I
were undecided, ?.>I disagreed and >.?%I strongly disagreed with this statement.
%!.!!I
P &!.!!I
!
?!.!!I
r
>!.!!I
c g
$!.!!I
! !
!.!!I
!.!!I
n
>.?HI
?H.H>I
>.$!I
?.>I
>.?%I
t
/tro
a
2gr
2gree
<ndecided
=isagree
/trongly
disagree
*
a
r
i
a
b

!
"hart
?.%J
/peci
al
gift
offer
make
e.cit
emen
t
Puestion HJ
2ttractive gift,
discount or
incentive is
essential to make
repeat purchase of
an unknown
product.
-a
ble
?.
$J
2tt
ract
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree ! + $A ?H $.&>
2gree >A ?> $H !A $A.A!
<ndecided H ! A $.>
=isagree % && &% H$ ?&.AH
/trongly disagree ! % ? ?! !.%H
-otal $! >! $& >H& !!
ive
gif
ts
ma
ke
re
pe
at
pu
rc
ha
se
-he above table )table
?.$, reveals that $.&>I
of the customers strongly
agreed that attractive gift,
discount or incentive is
essential to make repeat
purchase of an unknown
product, $A.A!I agreed,
$.>I were undecided,
?&.AHI disagreed and
!.%HI strongly
disagreed with this
statement.
!!I
?!.!!I
r
>!.!!I
c
$!.!!I
! !
!.!!I
t
!.!!I

$
$
A
$
.
?
!.%
HI
a
/tro
ly
g
2gr
2gree
<ndecided
=isagree
/trongly
disa
*ari
ab!
"
ha
rt
?.
HJ
2t
ma
pu
Puestion AJ "onsumers choices and buying decision depend on only their own beliefs E
attitudes.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree > & A >% +.%!
2gree % >H A % >!.+>
<ndecided $ & $ + $.?!
=isagree ? %> %A H$ ?&.AH
/trongly disagree > ! $+ ?$ .$!
-otal $! >! $& >H& !!
-able ?.>J "onsumers choice depends only on their beliefs
-he above table )table ?.>, reveals that +.%!I of the respondents strongly agreed that
consumers choices and buying decision depend on only their own beliefs E attitudes, >!.+>I
agreed, $.?!I were undecided, ?&.AHI disagreed and .$!I strongly disagreed with this
statement.
&!.!!I
P
?!.!!I
!
>!.!!I
r
c g
$!.!!I
! !
!.!!I
n
!.!!I
+.%!I
>!.+>I
$.?!I
?&.AHI
.$!I
t /trongly
a
2gree
2gree <ndecided =isagree /trongly
disagree
*ariab!
"hart ?.AJ "onsumers choice depends only on their beliefs
Puestion +J Dost advertisements are misleading and false.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree % > & ?? .H>
2gree &A %! ?% %? ?>.H>
<ndecided ? ! & + &.!H
=isagree >H >A ?A $> >$.A!
/trongly disagree & + $& %.%H
-otal $! >! $& >H& !!
-able ?.?J 2dvertisements are misleading
-he above table )table ?.?, reveals that .H>I of the respondents strongly agreed that most
advertisements are misleading and false, ?>.H>I agreed, &.!HI were undecided, >$.A!I
disagreed and %.%HI strongly disagreed with this statement.
&!.!!I
P
!
?!.!!I
r
>!.!!I
c
$!.!!I
! !
n
!.!!I
t
!.!!I
.H>I
?>.H>I
&.!HI
>$.A!I
%.%HI
a
/tro
g
2gr
e
/
t
r
o
n
g
l
y

d
i
s
a
g
r
e
e
*
a
r
i
a
b

!
"hart?.+
J
2dvertis
ements
are
misleadi
ng
Puestion !J
-here is no
positive and
significant
relationship
between
advertising and
sales volume of a
product.
5ariable Fre8uency -otal Percentage
)I, Dineral
water
-oilet
cleaner
Dobile
service
/trongly 2gree + & & ?
2gree >H $! + %% H.%!
<ndecided > & ! A $.?
=isagree %? HH &> +? &.H>
/trongly disagree H $H &A +$ $?.&>
-otal $! >! $& >H& !!
-able
?.&J
;elation
ship
between
advertisi
ng and
sales
volume
-he above table )table
?.&, reveals that ?I of
the respondents strongly
agreed that there is no
positive and significant
relationship between
advertising and sales
volume of a product,
H.%!I agreed, $.?I
were undecided,
&.H>I disagreed and
$?.&>I strongly
disagreed with the
statement.
&!I
?!I
c
!

!

$
!
I
n
!I
?I
t

!
I
$
.
&
$?.&
>I
a
/tro
g
2gr
e
/
t
r
o
n
*a
"h
;e
bet
adv
and
vo
%.2 T!"ting for $'1ot$!"i"
-he chi1s8uared distribution method is used to test the hypothesis.

Its formula is

() =
(

9here, O
i
Q Observed fre8uency
#
i
Q #.pected fre8uency
" Q "olumn
; Q ;ow
"ategory Q Dineral water )Dum, Fresh, 28ua, Cibon, Pani
#tc, "ategory $ Q -oilet cleaner )6arpic, 5anish, /hokti etc,
"ategory > Q -elecommunication service provider )@rameen Phone, 4anglalink etc,
6ere, =egree of freedom Q )"1,R);1, Q )>1,R)>1, Q $R$ Q ?
3evel of significance is !.!&
So, from the table () = 9.488
H'1ot$!"i" 1; Product cant survive in competition without regular advertisements.
Observed fre8uency )O
i
,J
"ategory "ategory $ "ategory > -otal
For + !% >!A
2gainst $& $$ ? %
<ndecided ? $ ! %
-otal $! >! $& >H&
"alculation of #.pected fre8uency
)#
i
,J
-able ?.%
#.pected fre8uency )#
i
, Q

For )cat , Q Q


= 9.56 for
)cat $, Q
Q


= 106.!!




For )cat >, Q

=


= 102.66 against )cat , Q

Q

=
19.52




2gainst )cat $, Q

Q

= 21.15 against )cat >, Q

Q

=
20.33



<ndecided )cat, Q

Q

= 1.92<ndecided )cat$, Q

Q

=

2.0

<ndecided )cat>, Q

Q

= 2

"alculation of "

()J
-able ?.H

() =

(

)
Q ?.>H S !.!?$H S ?.%& Q +.!%$H

=ecisionJ 2s the calculated value is less than tabulated value, so the hypothesis of product cant
survive in competition without regular advertisements is not re:ected.
H'1ot$!"i" 2; 0ew ad of a product or service is a signal of new offers or
incentives. Observed value )O
i
,J
"alculation of #.pected fre8uency
)#
i
,J
-able ?.A
#.pected value )#
i
, Q

For )cat , Q

Q

= 9.60 for )cat $, Q

Q


= 9!.1



For )cat >, Q

=


= 93.30 against )cat , Q

Q

=
2!.4



2gainst )cat $, Q

Q

= 30.16 against )cat >, Q

Q

= 29



<ndecided )cat, Q

Q

= 2.56 <ndecided )cat$, Q

Q

=
"ategory "ategory $ "ategory >
O
i
#
i
( #

O
i
#
i
( #

O
i
#
i
( #

For + +A.&% !.&A !% !%.H !.!!&% !$.% !.%A

2gainst $& +.&$ .&? $$ $.& !.!>? ? $!.>> .+H
<nd. ? .+$ $.$& $ $.!A !.!!> ! $ $
-otal $! $! ?.>H >! >! .!?$H $& $& ?.%&
"ategory "ategory $ "ategory > -otal
For A +A ! $A!
2gainst >& $+ $> AH
<ndecided ? > A
-otal $! >! $& >H&
2.!!

<ndecided )cat>, Q

Q

= 2.6!

"alculation of "

()J
-able ?.+

() =
(



)
Q >.?H S !.!%+ S $.+A Q %.&+

=ecisionJ 2s the calculated value is less than tabulated value, so the hypothesis ofnew ad of a
product or service is a signal of new offers or incentives is not re:ected.
H'1ot$!"i" #; Puality gift offer or price discount always motivate the customer to shift from
one brand to another.
Observed value )O
i
,J
"alculation of #.pected fre8uency
)#
i
,J
-able ?.$!
#.pected value )#
i
, Q

For )cat , Q

Q

= 4.0 for )cat $, Q

Q


=
91.!

For )cat >, Q

=


= .33 against )cat , Q

Q

= 32

2gainst )cat $, Q

Q

= 34.6!against )cat >,Q

Q

=
33.3

<ndecided )cat,Q

Q

= 3.2 <ndecided )cat$,Q

Q

=
3.4!

"ategory "ategory $ "ategory >
O
i
#
i
( #

O
i
#
i
( #

$

O
i
#
i
( #

$

For A& A+.%! !.A$ +A +H.! !.!!+ ! +>.>! !.%?

2gainst >& $H.A? .A? $+ >!.% !.!? $> $+ .$?
<nd. ? $.&% !.A > $.HH !.!$ $.H! .!?
-otal $! $! >.?H >! >! !.!%+ $& $& $.+A
"ategory "ategory $ "ategory > -otal
For %+ +% !! $%&
2gainst ?& > $? !!
<ndecided % > !
-otal $! >! $& >H&
<ndecided )cat>, Q

Q

= 3.33

"alculation of "

()J
-able ?.$

() =
(



)
Q !.%H S !.%? S &.HA Q H.!+

=ecisionJ 2s the calculated value is greater than tabulated value, so the hypothesis of 8uality gift
offer or price discount always motivate the customer to shift from one brand to another
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64 | P a g e
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65 | P a g e
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67 | P a g e
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68 | P a g e
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69 | P a g e
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71 | P a g e
375
72 | P a g e
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73 | P a g e
CHAPTER )
0INDIN@( AND RECO&&ENDATION
74 | P a g e
).1 (ummar' of finding"
-o analy7e the effects on consumers buying behavior, here it is compared simultaneously
the
effects of sales promotion and advertising in this section. -his is probably due to the fact
that their impacts are viewed as same or opposite1sales promotion with known short1term
effects on consumer buying while advertising is generally considered as a brand1building tool
though both are used as consumers motivating tool.
-he role of sales promotion and advertising on the sales volume of a product is very important
because oftentimes consumers decisions as regards what to buy is motivated by what has been
seen heard of or practically used. 2dvertising helps to carry the primary information along with
the promotional messages far and wide to the target audience that the advertiser or
producer could not have reached to it at once so easily.
Dore so, the findings make known that the sales promotion and advertising position a product
or service strongly in the mind of the consumer in order to encourage repeated purchase of the
product. -his also creates brand loyalty and product differentiation. From various sources,
the past e.perience and state of mind, the consumer may determine the impact that advertising
has on himMher.
In an effort to improve messaging and to gain the audiences attention, advertisers create some
special moments that will resonates the mind of the target customer and motivate the audience
to purchase the advertised product or service. 9hen a company likes to give importance and
budget on sales promotion more than advertising to get the short1term result, it will miss the
long term result in product image. "ompanies should strategically use both methods to
complement each other, as many leader companies do successfully. 2lso, these kinds of
discussions and assumptions imply that the long term effect of advertising on brand1building is
indisputable.
/tudies have shown that a premium brand is more likely to be supported by advertising. It
has also been found that, in relation to sales promotion, advertising makes consumers less price
sensitive, which is a problem often associated to motivate consumers mind by sales
promotion. Of course, this is pointing the positive impact that advertising has on consumer
behavior.
-he findings encourage rethinking the assumption that advertising has such a powerful
influence on consumer behavior. 2dvertising is not necessarily powerful enough to
differentiate brands even though it has been found to contribute to other important
aspects, such as providing publicity and protecting an already established brand. -herefore, a
number of organi7ations are moving their funds away from advertising to sales promotion,
public relations and direct marketing.
-he findings may make a dilemma to many marketers of how to allocate their budgetsF so, this
is an issue that needs to be addressed. If the assumption is accepted that advertising is a better
tool for establishing and reinforcing the consumer purchase behavior than sales
promotion, the answer for companies would be simple they would :ust use advertising and
ignore the rest of the promotional mi.. 6owever, all the marketers should think about how to
use these both successfully for new or unknown products.
75 | P a g e
"onsumers buying decision making processes vary depending on the product category,
different stimuli and steps that are related to a buying decision. /ales promotion works
differently in high or low involvement categories as stated in alternative response hierarchies.
-he promotional and advertising stimuli are also varied with different product which can lead
to the desired purchases in the end.
/ales promotion is most effective on consumers who travel through the peripheral route, as
discussed earlier that can leads the consumers mind to brand switching. Darketers may take
this advantage on consumers who are travelling in the peripheral route to a decision,
because as stated in the "lassical "onditioning -heory, sales promotion activities are
accepted by the consumers to be beneficial.
From the analysis, the thesis has shown the positive effects by the use of sales promotion and
advertising. 6owever, this thesis also finds some negative effects that sales promotion and
advertising can have on consumers mind. -he effect could be if the peer group or a consumer
appears the sales promotion as an act of cheap shopping. -he consumer might not be
motivated to purchase products that are on promotion, because the consumer does not want his
image to be linked to being a 'cheap shopper(. -his effect may be applied to both unknown and
known products.
Price discount sales promotion can have a negative impact on the product, because it can
lower
the consumers internal reference price. It is especially critical for new or unknown products,
because sales promotion can make the consumers think that the product on promotion is really
e8ual to the promoted price. 6owever, the analysis has shown that in short term this might not
important to known products, since they can be promoted for a period and return to regular
price without causing harm to the product.
In a study of consumer views on advertising carried out in this paper in $!$, more than HHI
of the respondents described advertising as a channel of information from the manufacturer to
the consumers. /ome said it was a manipulation, propaganda and a misleading
marketing instrument. 9hile advertising can be seen as necessary for economic growth, it is not
without social costs, it is increasingly occupying public spaces, such as schools, hospitals,
buses, etc, which has some critics of misleading and false.
2gain it may seem to consumer that low 8uality ad and lower price can indicate inferior
8uality, because consumers link ad and price to 8uality. -his aspect is most critical for new or
unknown products, because consumers have no prior e.perience with the product.
6owever, known products in the short term will not be affected the same way as new or
unknown product, because, consumers know the 8uality of the product, and therefore it will
not have a big impact of the perceived product 8uality.
2s seen on /haping to ;epeat Purchase 4ehavior, if a new or unknown product is
being promoted, it will start with lowering the price. 2s a result, the internal reference price is
lowered. Furthermore, because the price is lowered, the 8uality perception to the consumer
might be lowered too. -he same will be true for a known productF however, the process of
building negative impacts may longer, because the product already has built up some positive
e.periences to the customers.
76 | P a g e
).2 R!comm!ndation
6aving analy7ed, discussed and interpreted the data collected in this study, this thesis
therefore
recommends the
followingJ
=ue to the competitive nature of the industry the marketing manager must develop and
formulate
proper marketing programs that will satisfy the needs of the consumers. /ince other service
providers have similar promotional or advertising messages, it is recommended that for a more
distinguished and effective response from the customer, other forms of advert should be used.
;egular and consistent up1to1date training on product information should be given to
the promotional and advertising agency so that they will have the current knowledge and skills
to handle the activities and also to ensure that product information is being emphasi7ed so as to
enlighten the customers. 2s advert campaigns are conveyed from different service providers,
the adverts should be used to aid the customers to identify the companys products or service
when they are making a purchase decision.
-he company should also ensure that advertising agencies place their product adverts
on channels or places where the consumers will easily identify with them make a purchase. 2
good ad should be effective, persuasive and contain the necessary information on the products.
It is also recommended that the company should carry on to their intensive and aggressive
advertising practice to keep their pace of growth and gives the marketer the opportunity to
enhance brand switching among the consumers. 2s discussed, sales promotion and advertising
motivate consumers to brand switching to a new brand, it is critical for marketers to notice that
sales promotion primarily attract e.isting consumers but never the sales promotion is
still regarded as the best tool to attract new consumers. -herefore, the thesis recommends the
use of sales promotion to encourage switching to adopt on a new product )by the use of e.g.
samples, coupons, premiums, sweepstake, rebates, loyalty programs etc.,
It is suggested that market research and other studies be conducted to identify those areas
where promotional activities with effective advertising is lacking. -hey should also regularly
e.amine the segments of the market that should hold strongly to look for ways of influencing
consumers buying behavior.
It can be recommended that if monetary sales promotion activities will be better accepted by
consumers who will be able to see the benefit right away from the sales promotion activity in
form of e.g. price discounts. Furthermore, consumers who are purchasing a product where they
will use perception as decision making tool can be attracted by the hedonic benefits in the
form of associations, feelings, and emotions, because it does not focus on price.
Furthermore, price discount can have a negative effect on the internal reference price, if the
marketer is working with new or unknown brands. Price discounts above $!I should be used
cautiously, because it can create a negative effect on the internal reference price. -hus
the marketers should be aware of sales promotion with respect to product price and 8uality
because consumers often relate the price to the perceived 8uality of a product, 'higher price
e8uals higher 8uality(. It is recommended to the marketers if they want to increase or
77 | P a g e
maintain perceived
78 | P a g e
product 8uality they should use advertising but not use sales promotion on the product )e.g.
coupons, price1offs, rebates etc.,
Darketers can furthermore enhance the communication of remind the information and
recognition about the product by regular advertising. 2s discussed earlier, sales promotion and
advertising have a positive effect on the publicity. -herefore the thesis recommends marketers
to use sales promotion along with advertising, because these are the powerful tool in creating
product awareness for both unknown and known products )e.g. by coupons, sweepstake,
samples, premiums, event marketing etc.,
2s stated in the findings, it is important for the marketers to know their target segment and if
the target segment and its peer groups have a positive attitude towards sales promotion, the
marketer can e.ecute various forms of sales promotional activities to influence consumers
purchase behavior and give the opportunity to the consumer to be benefited.
On the contrary, sales promotion can also create the negative feeling of being a cheap shopper.
It is recommended by the thesis that if the consumers peer groups accept or even encourages
sales promotion it can be used with benefits to the consumer )e.g. coupons, sweepstakes, bonus
packs, even marketing etc.,. 6owever, if the peer groups dislike sales promotion
activities, the consumer might not be motivated to buy the product that is promoted due to
perceived image.
It is critical for marketers to know that consumers indentify lower price with lower 8uality if
no other information about the product is available. In other words, here price acts as a signal
of 8uality of the product if no other sources of information are presented. In such case this
thesis can be recommended carry on advert campaigns that conveys the hottest information.
It is important for the marketers to notice that if it is not common to promote a product in a
specific category, it is not wise to set a product on sales promotion either, because it will
pu77le the consumers and make them wonder if something is incorrect since the product is
being promoted. Furthermore, if an unknown or new product is priced too low compared to
other products in the same category, the 8uality of the product will be 8uestioned. If a new
brand gets introduced at a low price, and then increases its price to the regular price, consumers
will think it is over1priced. Odd prices of products are also perceived by the consumers as
having inferior 8uality, whereas, round prices are perceived as having good 8uality.
Furthermore, marketers should know, brand name is the most important signal for estimating
the 8uality of the product which also functions as a signal of 8uality of the product.
79 | P a g e
=O 20= =O 0O-
Do use advertising when any promotional activity going on to inform E communicate to
the consumer.
Do use sales promotion and effective ad to motivate consumers mind in brand switching.
Do use sales promotion and ad after ensuring the product availability.
Do use both monetary and non monetary promotional activities depending on the
consumer behavior.
Do use effective promotion and 8uality ad highlighting the brand name.
Do use advertising but Do not use sales promotion while increase or maintain perceived
8uality.
Do not use sales promotion to decrease price too low compared to other products.
Do not use odd prices discount that make consumer confused of inferior product 8uality.
Do not use sales promotion, if the consumers peer groups see it as an act of cheap
shopping.
80 | P a g e
CHAPTER 2
CONC.U(ION
81 | P a g e
2.1 Concu"ion
2s the thesis has analy7ed the problem statement and as a result the conclusion should not
be
seen as the final answer to the problem, but as a framework for understanding the problem and
as a possible answer to the problem. 2t the beginning of this thesis work there was an interest
to inspect the consumer using this phenomenon and what affects promotional activities and
advertising had to them. -oday it can be concluded that they are enlightened to new ideas and
much aware that marketing does and the reality is that promotional activities and advertising
would be much more e.citing and communicating to the consumer.
-his thesis has come to a conclusion that promotional strategies along with advertising induce
trial of product that is important for the natural growth of the company in the long1run. In
addition, 8uality gift offer and 8uality advertising increase the demand, market share and
customers perceived value which results into repeated purchases of a product therefore organic
growth, otherwise they will have a negative impact on sales. 0o matter how successful a
product is for a company and in spite of allF advertising is a must and should be a continuous
activity. 2dvertising has taken far the product and built up a strong image in the consumers
mind but recently, due to the e.cessive use of it, some little problems have been identified. -his
thesis can also conclude that sales promotions overall effect on the consumer behavior are
positive e.cept for the consumers perception and cognition of 8uality and price to the new or
unknown brands. 2s discussed earlier, consumers go through five stages before they select a
product. 6owever, by use of sales promotion it is concluded that some of the stages can be
omitted. In other words, sales promotion can act as a substitute for some of the stages in a
buying process. 2gain, with the reflection of the 8uestionnaire responses by the respondents
and the analysis of the findings, this can be concluded that that sales promotion and
advertising is much more effective in low involvement categories where a simple
promotional signal can lead the consumers to buy the product to fulfill their needs. 6ere sales
promotion will function as an e.tra need and advertising will function as an information
channel to influence the consumers mind to purchase the product.
In conclusion, this work started from the curiosity of increasing sales volume in marketing as
an important sector for the Industrial and Production #ngineers but resulted in the deeper and
broad understanding of the impacts of different promotional activities and advertising on
consumers purchase decision, and got the spirit of being practical. One should not describe it
as a method or an approach, it identifies more as a way of thinking to increase sales volume
through innovative and creative advertising and promotional activities.
2.2 (co1! of furt$!r r!"!arc$
-his thesis has unearthed many issues in the area of sales promotional activities and
advertising
in affecting consumer purchase behavior and it is the platform that are suggesting the areas for
further research.
First and foremost, this thesis has mainly focused on the short term effects of sales
promotion and advertising on the consumers behavior. 6owever, it is of vital importance to
also know the long term effects of sales promotion on the consumers purchase behavior
influencing the sales volume. Further, it is proposed that a similar study be conducted but it
should be included the
82 | P a g e
marketers because it would be very interesting to compare their views )customers E
marketers,
to the issue and addressing the differences or agreements if
any.
In the same conte.t, it can be suggested that a similar study be conducted but this time
focusing on a particular promotional activity for a particular product rather than overall
promotional activity because this would give a fairly good idea as regards the role of
the particular promotional activity on a particular product. In addition, the study should
include a larger number of respondents of a specific industrial product to get a more reliable
picture of the issue under investigation.
From some recent year and till now, the world is e.periencing a financial crisis. =ue to this
crisis there is a tendency to the consumers to give importance in promotional advertising and
focus on buying promoted products. It can be 8uestioned if the financial crisis will have an
effect on consumers perception of sales promotion.
-he findings of the thesis concluded that sales promotions negative effect on price and 8uality
that was significantly less on known products in short term compared to new or unknown
products. -he interesting part would be to analy7e whether or not the negative effect would
be the same on known products in long term.
-he thesis mainly focused on advertising and sales promotions effects on consumers buying
decision making process in low involvement product categories. 2nd it is suggested that since
people attach more value and importance to a product in a high involvement category, the more
negative effect a discount offer will contribute in decreasing the product image. 6owever,
it would be interesting to analy7e if sales promotion will affect the buying decision making
process whether it is a high involvement product category.
83 | P a g e
Bibiogra1$'
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advertising and sales promotions in brand e8uity creation,( Cournal of 4usiness ;esearch, 0o of
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consumer perceptionsJ it depends on how you frame it,( Cournal of ;etailing, A ),, >&1?H.
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0egative #ffect on 4rand #valuations1Or =oes ItO 2dditional =isconfirming #vidence,(
Cournal of Darketing ;esearch, $+, ?>1?A.
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U?V D!*!cc$io, =evon, =avid 6. 6enard, -raci 6. Frelin )$!!%,, '-he effect of sales
promotion on post1promotion brand preferenceJ 2 meta1analysis,( Cournal of ;etailing,
A$)>,,
$!>1$>.
U&V D!n", 0athalie, Patrick =e Pelsmacker )$!!,, '2ttitudes toward the e.tension and parent
brand in response to e.tension advertising,( Cournal of 4usiness ;esearch, %>, $>H1$??.
U%V DiC!m!nt!, =iane F., =onald 2. 6antula )$!!>,, '2pplied behavioral economics and
consumer choice,( Cournal of #conomic Psychology, $?, &A+1%!$.
UHV Dont$u, 0aveen, Xueming 3uo )$!!&,, '2ssessing advertising media spending
inefficiencies in generating sales,( Cournal of 4usiness ;esearch, &A, $A1>%.
UAV 0o3a, @. ;. )++?,, '"onsumer choice as an evolutionary processJ 2n operant
interpretation of adopted 4ehavior,( 2dvances in "onsumer ;esearch, $, >$1>H.
U+V @r!!n, "orliss 3. )++&,, '=ifferential ;esponses to ;etail /ales Promotion
among
2frican12merican and 2nglo12merican "onsumers,( Cournal of ;etailing, H, 0o., A>1
+$.
U$!V Han"!n F, C$ri"t!n"!n /;. )$!!H,, '#motions, advertising and consumer choice,(
"openhagenJ "openhagen 4usiness /chool Press.
U$V Huang, Cian, Dingming 3eng, 3iping 3iang )$!$,, ';ecent developments in dynamic
advertising research,( #uropean Cournal of Operational ;esearch, $$!, &+1%!+.
U$$V Hum1$r!'", P., -. O=onnell, ;. DcIvor, 3. Daguire )$!!+,, ';educing the
negative effects of sales promotions in supply chains using genetic algorithms,( #.pert /ystems
with 2pplications, >%, HA$H1HA>H.
U$>V H'un, /unghyup /ean, 9ansoo *im, Dyong Cae 3ee )$!,, '-he impact of advertising
on patrons emotional responses, perceived value, and behavioral intentions in the chain
restaurant industryJ -he moderating role of advertising1induced arousal,( International
Cournal of 6ospitality Danagement, >!, %A+1H!!.
U$?V Inman, C. Cefferey E Dc2lsiter, 3eigh E 6oyer, 9ayne =. )++!,, 'Promotion /ignalJ
Pro.y for Price "utO,( Cournal of consumer research, H, H?1A.
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0CJ Prentice 6all.
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Cohnson )$!,, '-he dynamics of consumer behaviorJ 2 goal systemic perspective,( Cournal of
"onsumer Psychology, $$, $!A1$$>.
U$+V Bot!rD B!!r, Philip E *avin 3ane, 2braham *oshy, Dithileshwar Cha )$!!+,,
'Darketing DanagementJ 2 /outh 2sian Perspective,( -hirteenth #dition, Pearson
Prentice 6all.
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Pearson Prentice 6all.
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difficulty is desirable during goal pursuit,( Psychological /cience, $!),, $H1>?.
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categori7ation and choice of fast foods in "hina,( Cournal of 4usiness ;esearch, &A, %H?1%A%.
U>>V .ib!rman, 0., E 0Er"t!r, C. )$!!%,, 'Inferences from decision difficulty,( Cournal
of
#.perimental /ocial Psychology, ?$)>,, $+!1
>!.
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effects on 8uantity purchase intentions,( Cournal of ;etailing, A> )?,, ?1?$.
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8uality perception,( Cournal of 4usiness ;esearch, &A, >&?1 >%!.
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+),,
1%.
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of deal1prone consumers response to sales promotions,( Cournal of ;etailing and "onsumer
/ervices, A, &?$1&?H.
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=ifferentiation,( ;eview of Industrial Organi7ation >J &!+1
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Darketing,
$&, $!1$?.
89 | P a g e
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name on buyers perceptions of product 8ualityJ 2n integrative review,( Cournal of Darketing
;esearch, $%, >&1>&H.
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Its
;elevance to Darketing and Promotions,( Cournal of Darketing, ?&, H!1
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2dvertising on the "ustomer 4ehavior,( "ommunications of the I4ID2, 5olume
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2pplication,( Dc@raw 6ill "ompanies, Inc., 0ew Kork.
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2dvertising
;esearch, +, >H1?%.
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attitudes and purchase intentions,( Cournal of 4usiness ;esearch, %$, ?1$.
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of advertising as a signal of product 8uality,( Cournal of #conomic 4ehavior E Organi7ation,
>H,
?&1?>!.
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"hristensen
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+A&.
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on consumer based brand e8uity,( International Cournal of Darket ;esearch, ?H Issue $, H+1
$!?.
Cu"tom!r *oic!
InstructionJ Please tick )], or mark where applicable
0ameJ ^^^^^^^^^^^^^^^^^^^^^^^.
/e.J a. Dale ) , b. Female ) ,
2ge )year,J a.$>1$A ) , b.$A1>& ) , c.>& above ) ,
Kear)s, spent in the companyJ a. 4elow $ years ) ,
b. $ _ ! years ) ,
c. 2bove ! years ) ,
-o increase the sales volume of Z5anish -oilet "leaner which one is the most
effectiveO ) , a. Increasing Puality.
) , b. 2dvertising E /ales promotion )=iscounts, gift
offers,. ) , c. Product =ifferentiation.
) , d. Darket segmentation.
e. Others^^^^^^^^^^^^^
InstructionJ Please tick )], or mark where applicable
0ameJ ^^^^^^^^^^^^^^^^^^^^^^^^.
/e.J a. Dale ) , b. Female ) ,
2ge )year,J a.A1$&) , b.$&1>&) , c.>& above ) ,
Darital statusJ a. /ingle ) , b. Darried ) ,
OccupationJ a. /ervice 6older ) , b. 4usiness ) , c. Others ) ,
Family Income )Donthly,J a.&,!!!1$&,!!!-*.) , b.$&,!!!1>&,!!!-*.) , c.>&,!!!-*.above)
, ;eligionJ a. Islam ) , b. 6indu ) , c. "hristian ) , d. Others ) ,
3ocationJ a. =haka ) , b. ;a:shahi ) , c. Dymensingh ) , d. *hulna
) , Product or service categoryJ Dineral 9ater )Dum, Fresh, 28ua, Cibon, Pani etc.,
-oilet "leaner )6arpic, 5anish, /hokti etc.,
-elecommunication )@rameen Phone, 4anglalink, 2irtel, "itycell, ;obi etc.,
0o. /tatements Product
Or
service
/trongly
2gree
2gree <ndecided =isagree /trongly
=isagree
! Product cant survive in
competition without regular
advertisements.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!$ 0ew ad of a product or service
is a signal of new offers or
incentives.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!> Puality gift offer or price
discount always motivate the
customer to shift from one
brand to another.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!? 2dvertising 8uality is a signal
of product 8uality.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
0o. /tatements Product
Or
service
/trongly
2gree
2gree <ndecided =isagree /trongly
=isagree
!& *nowing the products hottest
information only depend on
advertising.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!% /pecial gift offer always
makes consumers feel
entertained, e.cited E lucky.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!H 2ttractive gift, discount or
incentive is essential to make
repeat purchase of an unknown
product.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
!A "onsumers choices and
buying decision depend on
only their own beliefs E
attitudes.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
+ Dost advertisements are
misleading and false.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
! -here is no positive and
significant relationship
between advertising and sales
volume of a product.
Dineral
9ater
-oilet
"leaner
-elecomm
unication
1-hanks for your kind information.
%? | P a g e