Impact of Television Advertising on Consumer Buying Behaviors

A Project Proposal

By

Ganga Bista
T.U Regd. No.:7-2-750-0030-2015
Himalaya College

Group: Marketing

Submitted to
The Faculty of Management
Tribhuvan University
Kathmandu

In Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Koteshwor, Kathmandu
2019

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 CHAPTER I
INTRODUCTION

1.1Background of the Study

Many people use advertising at some time in their life. Some may use it privately while
others may use in business. And many people respond to advertisements, they enjoy the
choices available "to them in every sphere of life" (Kotler; 1994). It is one of the major tools
that companies use to persuade target buyers and publics to buy their products or services.
The main purpose of advertising is to persuade the consumer to buy the products or services.
The other purposes can be to inform the consumers about the products availability features,
uses etc.

Advertising is almost everywhere in our daily life. Its forms and roles are both contested and
admired. Some see advertising both as the mirror and the maker of culture. Even when
advertisements contribute new sounds and the symbols that shape feature, its words and
images reflect the present and the past. Others say advertising is purely an economic activity
with one purpose i.e., to sell. Many advertisers and agencies believe that advertising creates
‘magic in the market place´ (Russell & Lane, 1996)

Different people have defined advertising in many ways; however they all mean nearly the
same thing. Some of the popular definitions, of advertising are as follows:

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor"(Kotler; 2000:42).

"Advertising is the means by which we make known what we have to sell or what we want to
buy" (Jelkins; 1985:65).

We have been reading, watching, listening, and looking at advertising since we were a child.
So it seems like a little silly to ask, “What is advertising?” An educated observer, however,
looks at advertising as something more than a sales message that occupies the space in and
around news stories, magazines features, and TV programs, televisions etc. In a way,
advertising is simple. It’s about creating a message and sending it to someone, hoping they
will react in a certain way. Advertising is an important element of modern life. In spite of its
rapid growth in recent years, the advertising industry has been concerned with improving its

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public image. It is the art of presenting the non-personal presentation to the mass and
communicates the various aspect of the product or the service such as price, usefulness,
quality, special features etc Its focus is not only to develop favorable customer position
towards the product but also to recall the benefits for costumers in selecting the products or
services they desire or find better for them. With that the development in the sector of the
television, it benefited to manufactures in the field of advertising as well. At the present every
manufacturers, businessperson, shop keeper, institutions and also the profit and the non-profit
organizations have been using the advertising. Increasing literacy, development in the area of
printing and technologies and intense competition has also given fuel to the sector of
advertising (Hackeley, 2009).

Every business needs to effectively promote their products and services for generating more
sales and transactions and thereby to have more profit and growth. They chalk out various
strategies for achieving the objective. They look for various mediums which are effective
enough for the brand promotion campaign to reach their targeted clients and customers. And
one such effective medium which has been used effectively by businesses in Nepal and all
over the world is television advertising.

Today everyone has TV and advertising on TV is one of the best options to promote the
products. The ad coming on TV also put high impact on the customers. There will be more
positive effects in building brands. Advertisers are innovating new ways for their campaigns
on high definition televisions. Nepal Advertising agencies are coming up with glitzy, smart
and tailored type ads targeting the middle classes. Besides, a number of Nepali media news
channels have been launched and they are reaching to the masses both in urban and rural
parts of the country. Nepali television news channels are now have become more effective as
advertising agency

The advertisers include not only business firms but also museums, professionals, and social
organizations that advertise their products or services. The term "Advertisement" is very
popular in today's world. All the countries of the world use it. We can see it everywhere, i.e.,
on the television, on the matchbox, in the newspaper, magazines, on the trash containers, on
the vehicles even in the sky and so on. We can also hear it on the radio. So the advertisers
have different choices of media to advertise their product, service or an idea. The advertiser
needs to choose the medium which best reach the customers. In this respect, the study of the
media impact on consumer is a must. Advertising is used by different organizations in
different ways. A large company set up its own advertising department whose job is to

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develop the total budget, help develop advertising strategy, select media, approve advertising
agency. However, most companies use an outside advertising agency to help them create
advertising campaigns and to select and purchase media.

Many important decisions have to be made before undertaking the advertising program. It is
certainly one of the most important complex decision areas facing business executives. Major
decision areas in developing advertising program include setting the advertising objectives,
deciding on the advertising message, deciding on the media and evaluating advertising
effectiveness.

There are various types of advertising media. Media are the instruments or the way through
which the advertisement messages-are put before the public. The most brilliant original
advertising ideas will be wasted if they are not supply through the right media to the right
readers, viewers, listeners or passers-by. Among different types of media, television medium
plays a vital role. The importance of television advertising is increasing day by day.
Television gives information to a large number of people than any other medium of
advertising. Due to the satellite facility, television programs are viewed internationally. In
today's glamorous world, we can show all the aspects of products and services through
television advertising. It is always said that people believe in things until they hear and see.
This can be possible through television advertising only. Television advertising first came
into prominence in the 1950s in America. At first, the popularity of television was hindered
by the expensive cost of TV sets and lack of programmers. But its impact was so deep that
within a decade it was spread over the world. Nepal is not an exception. In Nepal, television
was first commissioned in 2041 B.S. in the name of Nepal television. It started to telecast the
program in 2042 B.S. while the commercial telecasting started only in 2044. Television
advertising has many advantages. Firstly, it combines sight, sound and motion. It is quite
appealing to the senses. It arouses high attention and it has high reach. It has certain
disadvantages also namely high absolute cost; high clutter; fleeting exposure and less
audience selectivity. However, we cannot deny the fact that television enjoyed the dominant
position in the media.

1.2 Statement of the Problem

Advertising is one of the most important tools that companies use to persuade target buyers to
buy their products or services. There are many special and specific reasons for advertising.
The reasons can be to announce a new product or service or an idea to expand the market to

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new buyers to announce a modification, to announce a price change, to announce a new pack,
to make a special offer, to raise revenue, to maintain brand loyalty, etc. Therefore, the
advertising plays a crucial role in marketing. Today due to the importance of advertising
many companies are using advertising as their integral part. The role of advertising is to shift
the products demand curve upward. For this, the effectiveness of advertisement; is one of the
major areas advertiser needs to consider. Deciding on the media is the crucial task the
advertiser needs to undertake for the success of any advertisements. Among various types of
media, television enjoys the dominant position. Advertisement can reach to various countries
at a time through television. It has worldwide approach.

In today's world, the popularity of television is increasing day by day. It is very useful for the
advertiser to know the popularity of television among different people. Different types of
advertisement through television appeal to the different customer differently. Careful analysis
should be done in this regard for the success of any advertisement campaign. This is lacking
in Nepal. Very few analysis and research is conducted regarding this. Hence, the main
objective of this report is to provide useful information regarding the impact of television
advertising in consumer buying behavior of women. Thus the study is an attempt to make the
clear vision the impact of Television advertising in regards to credibility, informative,
pleasure and decision capacity. As a customer they could have different views and perception
towards television advertising.

These all findings can be more useful for the advertiser while selecting among media
according to their product types.

There are various types of television advertisement. It may be presented in the form of slice
of life, lifestyle, fantasy, mood or image, musical, personality symbol, technical expertise,
scientific evidence, testimonial evidence etc. Different people prefer different types of
television advertisements. The selection of the target market and the product's nature plays a
significant impact on choosing the media. The boundaries within which, the product are
intended to be sold sets limitation on choice of media. Different people show different
attitudes toward the same message aired, telecast and published. In Nepal many' advertisers
fails to give due importance in this regard. This leads to the failure of advertisement in
generating due positive response from consumers. Thus, the understanding of the impact of
any media on consumer behavior is extremely important for any advertiser. The Nepalese
business houses can generate many ideas in the field of marketing area through this type of
survey. In addition, the survey like this will be very helpful for the advertiser for the success

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of the television advertisement. From this context, in a developing country like Nepal, this
type of study is must.

1.3 Purpose of the Study

The specific purpose of this research work is to analyze the general impact of television
advertising for a customer during buying process. However, the basic objectives of the study
can be outlined as below:

 To analyze whether TV advertisement influence buying behavior of women while

purchasing FMCG products.

 To understand whether the TV advertisements are credible source of influence to
women or not.

 To evaluate whether TV advertisements significantly contributes in informing
consumer, inducing pleasure and whether it contributes in purchase decisions of
women or not while buying FMCG products.

1.4 Significance of the Study

Advertising has proved to be effective (less costly) source of information than other sources.
In today's modern business world, the need of advertising is indispensable. Every stage of
product life cycle needs advertising, volume of which may be low and high depending upon
the natures and stages. Advertising increases the demand for the products and services. It
helps in the introduction of mass production, installation of up-to-date machinery, and
consequent reduction of cost of article. It is beneficial not only to the producer and retailer
but also to the consumer.

More and more companies are advertising their product or service via Television advertising.
So to retain their customers, Television advertising is one of the best advertising media for
the advertiser. Various factors that can affect the customers’ attitude are mode of
advertisement, confidence about the information provided by the advertiser, product/service
quality shown in the advertisement, effect of advertisement on price of product or service,
trust in Television advertising etc.

This study sought to understand the attitude of customer towards television advertising and
the results are measure in the basis of credibility, informative, pleasure and good for decision
making. The study is mainly focused on how the consumer behavior is affected by television

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advertising. It helps other coming up researchers who try to study on similar topics relating
with advertising.

Although it is an academic research it could be used as teaching and the learning material that
will support in the field of elaborating advertising effectiveness and consumer’s opinion
towards the area of television advertising. This study is also helpful for various students,
researchers, and academicians etc who desire to know about public attitudes and consumer
behavior towards television advertising. It can act as a source of literature for all those who
are pursuing for the knowledge in the given topic.

1.5 Research Question and Hypothesis

The four hypotheses developed for this research are:

i. Null Hypothesis, (H01): There is no significant relationship between credibility of

television advertisement and buying behavior
ii. Null Hypothesis, (H02): There is no significant relationship between pleasure of
television advertisement advertisements and buying behavior
iii. Null Hypothesis, (H03): There is no significant relationship between product
information through television advertisement and buying behavior.
iv. Null Hypothesis, (H04): There is no significant relationship between decision making
through television advertisement and buying behavior.

1.6 Limitations of the Study

Every study has its own limitation and this study is no exception. The study has following
limitation:

 This study is based on primary data but the filled up questionnaire by respondents
might not provide exact data.

 Attitude differs from person to person and closed questionnaire might not provide
correct result.

 The respondents from different background may not have proper knowledge about the
advertising.

 The respondents might be less to represent the overall impact of Television
advertising for buying decision.

 Factors like informative, credibility, pleasure and Decision making are assumed to be
sufficient to study of impact of Television advertising in buying behavior.

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  The data collected by the research will only represent the Nepalese women.

 I have to depend on the data collected from the questionnaire which may create
difficulty if there will be some kind of misinterpretation.

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 CHAPTER II
LITERATURE SURVEY AND THEORETICAL FRAMEWORK

2.1 Literature Review

2.1.1 Impact of Advertising in General

Consumer attitudes toward advertising in general have long been a focus of research.
Although the studies on advertising attitudes have varied widely in the types of samples used
and the data collection methods that more people held favorable attitudes toward advertising
than unfavorable attitudes and that a mainstream of respondents felt advertising was essential.

Still, a majority of their respondents felt that advertisements were misleading and that they
resulted in higher prices. Also most of the respondents preferred evening time free and
watched more than other times. While some watched whenever electricity is available and are
free.

According to the Stern and Zaichkowsky (1991), marketing communication may predispose
individuals to respond positively or negatively toward a product or brand. Such elements as
the execution of the advertisement, the mood created by the advertisement, the degree to
which the viewer is aroused, and even the context within which the advertisement is received
(e.g. television program or magazine) may affect their feelings about the advertisement, and
in turn their feelings about the product or brand

Based on Polly and Mittal (1993)’s belief – attitude toward advertising model, Wolin (2002)
applied the same seven belief dimension i.e. product information, hedonic pleasure, social
roleand image, materialism, falsity or no sense and value corruption in predicting the
attitudetowards television advertising. The results showed that the first three dimensions were
positivelyrelated to the attitude while the last four items were negatively related.

According to Ducoffe (1996), when advertising information is shifted through the traditional
media vehicles, the advertising value is substantially related to the informative of the
advertising information. Consumers’ always want to have quick access to information that
they are looking for their current content of use and it is possible that the information is
automatically delivered to the consumers. Thus, he found that there is a strong and positive
relationship between informative and consumers’ attitude towards advertising.

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Lafferty and Goldsmith (1999) confirm that advertising credibility is a key factor that affects
the formation of attitude and behavior. In addition, other studies have concluded that
credibility of the advertising message has positive influence on consumers’ attitude.

2.1.2 Attitude towards television advertising in General

Andersen (1972) describes that an attitude is often viewed in terms of an evaluative function-
identifying something as the good or bad, desirable or undesirable. Furthermore, it can be
summarized form Allport (1954), Krech and Crutchfield (1948) and Petter and Cacioppo
(1981) that their definitions states or imply that attitude are related to an objective, are part of
the general way the individual experience and reacts to his world, are relatively recurring,
and imply thought and feeling.

In this study the attitude towards TV advertising would be measured with relation to
respondents’ beliefs, as there is a close link between attitude and beliefs. This fact is agreed
by Anderson (1972) where he concluded that they are closely linked and any change or
addition in one or more beliefs usually produces a change in attitude.

2.1.3 Beliefs towards television advertising in General

TV advertising is most important tools in this society. Most of Nepali television advertising
have simply pattern to promote product and service included image and sound. Its help target
group to remember about product and service. Besides that marketer tries to attract more
customer attention by added the representative or celebrity into advertising itself. The
following recent studies (Wikipedia 2012) based on survey of people attitude towards
television advertising. 86% of example group were think that advertising is the thing must
have on television, 65% of example group were think that present advertising is interesting,
60% of example group were think that watching TV advertising can keep their up-to-date,
54% of example group were think that they can trust product and service advertising on
television, and 54% of example group were think that TV advertising were influence them on
decision make for purchase product and service.

2.2 Theoretical Framework

A theoretical framework details the relationship between the variables of the problems and
provides a foundation for the research. It details the relationship between the dependent and
independent variables to provide the framework for the hypothesis (Sekaran, 2003). In this
research the primary dependent variable is Television advertising. The independent variables
are credibility, pleasure, product information and helps in decision making.

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 Independent Variables Dependent Variables

Television Advertisement Consumer Buying

Behavior

Credibility
Marital Status
Pleasure
Age

Informative
Education

Decision Making Income

Moderating Variables

Figure 2. 1: Conceptual Framework

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 CHAPTER 3

RESEARCH METHODOLOGY

The following general outlined methods and approaches have been used for this study. The
study was to be conducted to analyze the objectives and research problems related to the
impact of TV advertisement on buying behavior. The research methodology was followed to
attend the basic objectives and the solution of the research problem.

3.1 Research Design

A research design serves as a master plan of the methods and procedures that should be used
to collect and analyze the data needed by the decision maker. It serves as a framework for the
study, guiding the collection and analysis of the data, the research instruments to be utilized,
and the sampling plans to be followed. This research is carried out by quantitative analysis.
This approach has been followed to collect the primary data through questionnaire. Similar
researches have also been considered to develop a guideline and get an understanding of the
factors. To conduct the primary research, sample size of 256 has been considered. The
sample was selected by the method of non-probability sampling, i.e., convenient sampling.

3.2 Population and Sample

Bryman and Bell (2007) indicate that sample means “the segment of the population that is
selected for investigation”. It is the subset of the population. Population refers to entire group
of people, events or things of interest that the researcher wishes to investigate. Usually the
size of the population is too large. So it is not possible to analyze all of them. A sample of
256 was taken, owing to the need for a relatively large sample size while at the same time
considering the research cost and time, which represents the population of Kathmandu. The
targeted population of the study consists of respondents above 18 years in Kathmandu.
Consumers above this age are more familiar with purchasing and also independent about their
product choice. Therefore, they are more likely to use their discretion and react positively to
TV advertisement and its impact while engaging in their purchasing decision.

The respondents consisted of working women in the various sector of industries. Lastly, the
sample also consisted of people of various professions and also home makers who play a
major role in buying decision.

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3.3 Data Collection Strategy

Both primary and secondary data was used in the research. The primary data was collected
via survey of 256 respondents using a closed ended questionnaire. The data was collected via
respondent administered research. The convenience sampling method was applied to choose
respondents.

The collection of data was done on the basis of different factors found in most of the samples
of the population. The total sample was classified on the basis of different attributes and
consumer habits. First, sample was classified on the basis of age into different groups. The
sample was be classified on the basis of different levels of education, marital status and
income.

3.4 Instrumentation of Data

A well-structured questionnaire was prepared as the main instrument of the data collection
for this study. The quantitative information that was collected through questionnaire was
represented into qualitative form by analyzing them properly. The questionnaire was
carefully designed so that it best serve the purpose of this study.

The questionnaire was distributed to 256 individuals. The questionnaire comprised of single
response and Likert scale questions. Before getting response from respondents, the objective
of the research and the way of filling the questionnaire was explained to them. It was divided
into two sections: personal details and research questions. The first section included
demographic profile of respondents such as age, income level, marital status, and education
level of the respondent. The second section included different factors of television
commercials affecting consumer buying decision. Single responded question and rating
question was asked through the questionnaire. Likert scale with five points scale was used in
the questionnaire for the research, where respondents had to choose appropriate answer on
scale from one being strongly disagreed to five being strongly agreed. This indicated the state
to what extent the consumer buying behavior are influenced by different factors.

In order to analyze the collected data, Microsoft Excel and SPSS software was used. These
tools were used for tabulation and calculation of the data collected from the respondents. The
data collected was analyzed through statistical tools and techniques, presented and interpreted
in tabular and graphical forms.

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3.5 Validity and Reliability

In order to try to build validity and reliability for the literature review the theories are
primarily from scholarly journals, and in some cases, books of renowned authors. Many
different authors’ views on theories have also been collected, and theories which reflect the
general view of these selected. Similarly, structured questionnaire was used to conduct the
survey.

To make sure the research is valid and reliable, thorough research and consultation on every
step of the research was done from experts. A comprehensive research instrument was used to
develop and test before starting the real investigation. The questionnaire is developed after
discussion with the supervisor. The items were subsequently edited and selected bearing in
mind the research question. Cronbach’s Alpha coefficient was calculated to ensure the
validity and reliability of research questionnaire. If the value is more than 0.60 then it is
reliable. In this study, it turned out to be 0.893. Cronbach’s Alpha is a tool for assessing
reliability of scale, determining the internal consistency or average correlation of items in a
survey instrument. For this research, the value turned out to be 0.893, which is greater than
0.60 so the data is reliable.

3.6 Data Analysis Method

The primary data of the research was collected, managed and analyzed using various
statistical tools and techniques. Data management and analysis was done using both
descriptive and inferential statistical tools. The descriptive method includes percentage/
frequency distribution, cross tabulation, mean, median and so on. Under this, the data and
findings is presented in a clear manner in the form of tables and charts. Similarly, in case of
inferential statistical tools, both parametric and non-parametric test tools were used to
determine and study various characteristics of the sample. Parametric test such as one way
ANOVA, independent sample t-test, and Pearson’s correlation and non-parametric test such
as chi-square test, Spearman’s rank order correlation, etc. were used to study. For data
analysis, SPSS and Microsoft Excel was used.

Data management and analysis was done descriptively as well as inferentially. Under the
descriptive analysis, percentage/ frequency distribution, cross tabulation, mean, median, etc
were used. Similarly, in case of inferential analysis, both parametric and non-parametric test
were used to determine and study various characteristics of the sample.

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