TERM PAPER

OF

CONSUMER BEHAVIOR

TOPIC: -Study of the influence of advertising in case of buying behavior

towards cars

SUMITTED TO:-

Mr. Amit Dutt SUBMITTED BY:-

JITENDER SINGH

ROLL NO: - A19

REG. NO: - 10905479

MBA 3RD
 ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the
writing of this project.

My deepest thanks to my LECTURER AMIT DUTT the guide of the project for
guiding and correcting various documents of mine with attention and care.

JITENDER SINGH
 TABLE OF CONTENTS

 Introduction

 Review of Literature

 Needs of study

 Objectives of study

 Research Methodology

 Data Analysis

 Findings

 Bibliography

 Annexure

• Questionnaire

Bar graphs
 EXECUTIVE SUMMARY

It is well known fact that people in India do not just watch their favourite sport , film or serial,
many are watching to see the commercials. Regardless of how good the game was, there are
usually a few ads that people talk about the next day. But one thing that people may not think
about is how trustworthy an advertisement may be and, at a higher level, how much trust one
can, or cannot, place in an industry's advertisements. In indian scenario it is proved that
advertisements from cars companies are most effective.
As we know these days cars companies are advertising their product so much on televisions and
are spending so much money on the celebrities to endorse their products.In car industry the cost
of advertising is nearly 35 % of the total cost. For increasing the sale of their product they are
taking film stars, cricket stars in their advertisements of their products which is again very
costly. Therefore i took this as opportunity to study different aspects of Advertisements, their
impact on consumer perception etc.

The main objective of this research was to study the following aspect(s) of the Advertisements.

 To study the impact of the Advertisements on the car preference of consumers.

To study the consumer perception regarding the most effective media for Advertisements.
To study the impact of the celebrity endorsement on the consumer buying behaviour

NEED OF THE STUDY:

As we have already mentioned that car companies are spending alot of money on their
Advertisements, celebrities etc. About 35% of the total cost is Advertising cost for a car
company. Therefore Advertising is an important aspect of the companies to promote their
product, and generate sales. It is also important for the companies to know whether their
advertisements are effective or not, In order to check the impact of the advertisements, we have
taken this as our research problem.
This research is a descriptive research, Primary data was collected from 100 respondents by
using a questionnaire through convenience sampling and secondary data was collected through
websites articles etc.

Data thus collected was analyzed by using SPSS 16 Software The major findings of the report
are that the advertisement has an impact on the buying behavior of the customers. TV is the first
choice of people for information searching followed by Internet as compare to different kind of
media.

Celebrity endorsement has a significant impact on the consumers and affect their perception
towards the brand. It was also found that various aspects of advertisements are remembered by
the people like punch line, celebrity, themes etc. Also it was observed that people were able to
recall the brand to which the punch line is associated by using Aided recall question.

INTRODUCTION

As being incorporated or associated with the marketing process, advertising finds its position in
every organization. Advertising can be defined as another strategy as an approach towards
competitive advantage. Various advertising concepts are in the stream of the media and papers
but still there is a little evidence that advertising can significantly help the organization boosts its
performance. In terms of sales, it is true that the application of the marketing and its associate
strategies can gain the consumers’ trust and loyalty, and in return, can enjoy the benefits of the
market share.
 ADVERTISING

DEFINITION OF ADVERTISING:

The word advertising originates from a Latin word advertise, which means to turn to. The
dictionary meaning of the term is “to give public notice or to announce publicly”.
Advertising may be defined as the process of buying sponsor-identified media space or time in
order to promote a product or an idea.

The American Marketing Association, Chicago, has defined advertising as “any form of
non-personal presentation or promotion of ideas, goods or services, by an identified sponsor.”

DIFFERENT MEDIUMS OF ADVERTISING

· Newspapers and magazines

· On radio and television broadcasts
· Circular of all kinds, (whether distributed by mail, by person, thorough
tradesmen, or by inserts in packages);
· Dealer help materials
· Window display and counter – display materials and efforts
· Store signs, motion pictures used for advertising
· Novelties bearing advertising messages and Signature of the advertiser,
· Label stags and other literature accompanying the merchandise.
 ADVERTISING OBJECTIVES

Each advertisement is a specific communication that must be effective, not just for one
customer, but for many target buyers. This means that specific objectives should be set for each
particular advertisement campaign. Advertising is a form of promotion and like a promotion; the
objectives of advertising should be specific. This requires that the target consumers should be
specifically identified and that the effect which advertising is intended to have upon the
consumer should be clearly indicated. The objectives of advertising were traditionally stated in
terms of direct sales. Now, it is to view advertising as having communication objectives that
seek to inform persuade and remind potential customers of the worth of the product. Advertising
seeks to condition the consumer so that he/she may have a favourable reaction to the
promotional message. Advertising objectives serve as guidelines for the planning and
implementation of the entire advertising programme.

The basic objectives of an advertising programme may be listed as below:

(i) To communicate with consumers.

(ii) To retain the loyalty of present and former consumers. Advertising may be used to reassure
buyers that they have made the best purchase, thus building loyalty to the brand name or the
firm.
(iii) To increase support. Advertising impliedly boost the morale of the sales force and of
distributors, wholesalers, and retailers, ; it thus contributes to enthusiasts and confidence attitude
in the organizational. :
(iv) To project an image. Advertising is used to promote an overall image of respect and trust for
an organization. This message is aimed not only at consumers, but also at the government
shareholders, and the general public.
 IMPORTANCE OF ADVERTISING

Generally, advertising is a relatively low-cost method of conveying selling messages to

numerous prospective customers. It can secure leads for salesmen and middlemen by convincing
readers to request more information and by identifying outlets handling the product. It can force
middlemen to stock the product by building consumer interest. It can help train dealers salesmen
in product uses and applications. It can build dealer and consumer confidence in the company
and its products by building familiarity. Advertising is to stimulate market demand. While
sometimes advertising alone may succeed in achieving buyer acceptance, preference, or even
demand for the product, it is seldom solely relied upon. Advertising is efficiently used with at
least one other sales method, such as personal selling or point-of-purchase display, to directly
move customers to buying action. Advertising has become increasingly important to business
enterprises –both large and small. Outlay on advertising certainly is the voucher. Non-business
enterprises have also recognized the importance of advertising
Advertising strategies that increase the number of units sold stimulate economies in the
production process. The production cost per unit of output is lowered. It in turn leads to lower
prices. Lower consumer prices then allow these products to become available to more people.
Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like
might be prohibitive without advertising. In short, advertising pays for many of the enjoyable
entertainment and educational aspects of contemporary life was accepted as a potent and
recognized means of promotion only 25 years ago, its growing productive capacity and output
necessitates the finding of consumers and advertising plays an important role in this process.
Advertising helps to increase mass marketing while helping the consumer to choose from
amongst the variety of products offered for his selection. In India, advertising as a profession is
in its infancy. Because of this fact, there is a tremendous scope for development so that it may be
productively used for the benefit of producers, traders, consumers, and the country’s economy.
 REVIEW OF LITERATURE

To formulate the problem scientifically, and to point out the importance of undertaking this
study, it is essential to present a brief review of Researches undertaking in this area. Although
the review involved a large number of studies only a few studies which have a direct and indirect
bearing in the present study have been reviewed. Literature Review

Effectiveness is one of the key themes in advertising research. Advertising effectiveness

can be defined as the extent to which advertising generates a certain desired communication
effect. Several issues relating to advertising effectiveness drivers have been discussed in the
literature. In most studies, the effect observed constitutes an element or elements of the well-
established hierarchy-of-effects model (Lavidge and Steiner 1961; Strong 1926). Recent
examples of research include the influence of

* competition on advertising budgeting strategies and effectiveness (Yoo and Mandhachitara

2003);

* specific advertising content, such as humor, on effectiveness (Cline, Altsech, and Kellaris
2003; Spotts, Weinberger, and Parsons 1997);

* the choice of advertising media and media context on effectiveness (Bhargava, Donthu, and
Caron 1994; De Pelsmacker, Geuens, and Anckaert 2002; Lohse and Rosen 2001; Yelkur,
Tomkovick, and Traczyk 2004);

* consumer behavior on advertising effectiveness (Ambler and Burne 1999; Mehta 2000); and

* comparative advertising on effectiveness (Choi and Miracle 2004; Muehling, Stem, and Raven
1989).

The role of mediating factors that moderate the relationship between advertising instrument and
effect is prominent in research on advertising effectiveness. For example, the effectiveness of
comparative advertising is influenced by cultural factors (Shao, Bao, and Gray 2004) or, in the
case of television advertising, by the type of program in which it is embedded (McGrath and
Mahood 2004). Also, advertising impact is enhanced if recipients have a more favorable attitude
toward advertising in general (Mehta 2000).

Advertising efficiency is concerned with advertising impact in relation to the underlying

investment. Deighton, Henderson, and Neslin (1994) present a framework for calculating the
profitability of advertising. Based on their study, they conclude that advertising effectiveness
and profitability are influenced by interaction effects between advertising and brand usage.
Advertising profitability, the authors suggest, can be improved if advertising is targeted at
consumers not currently using the brand instead of "wasting" it on current brand users.

Analysis of advertising efficiency is prominent in the literature on brand extensions and

spillover effects between brands. Smith and Park (1992) analyze the influence of brand
extensions on market share and advertising efficiency measured in terms of the advertising
cost/sales ratio. They find that brand extensions have the potential to increase efficiency by
providing an umbrella for several brands. Several studies follow up on this result (Balachander
and Ghose 2003; Erdem and Sun 2002; Nijssen 1999; Pepall and Richards 2002; Randall and
Ulrich 1998). More recently, DEA has been applied to the measurement of advertising
efficiency. An example is the study of Luo and Donthu (2001), who employ DEA to measure
advertising efficiency for the top 100 U.S. advertisers. Fare et al. (2004), who apply DEA to the
U.S. beer industry, provide another example. Both studies suggest that DEA presents a new and
powerful method for measuring advertising efficiency.

Advertising Efficiency Measurement with DEA

Efficiency can be defined as output per unit of input (e.g., Coelli, Rao, and Battese 1998). This is
a popular definition of efficiency in economics and engineering that deals with technical
productivity. It seems appropriate when inputs and outputs are linked through a production
function that converts input into output. On that conceptual basis, there are various approaches to
measuring efficiency with multiple inputs and outputs: nonparametric DEA and stochastic
frontier analysis (SFA), which is a derivate of parametric linear regression. This study will focus
on DEA, which has seen numerous applications to management issues (for a DEA bibliography,
see Emrouznejad 2001; Seiford 1994, 1997). Despite fundamental differences in approach, both
DEA and SFA provide a single aggregate efficiency score.

Originally proposed by Charnes, Cooper, and Rhodes (1978), DEA uses the position of
the observed cases in output-input-space to determine their efficiency. In this form of analysis,
DEA uses the brands with the highest output-input ratio at different advertising budget levels to
identify efficient cases:

Figure 1 presents a simple example in which one input produces a single output. The efficient
cases are those brands--here, under the assumption of variable returns-to-scale--that generate the
highest possible output level at each input level. Because observed inputs and outputs can be
discrete, DEA allows for the linear combination of brands. This combination results in a
piecewise-linear envelope of all brands as depicted in Figure 1, on which all brands are defined
as being efficient. The distance of all other brands to this envelope indicates their inefficiency:
The greater the distance of a brand from the envelope, the more inefficient it is. Since the
envelope is constructed from a few brands only, it is sensitive to outliers, but very flexible with
regard to the frontier's shape. The advantage of DEA compared with simple efficiency measures
such as the advertising/sales ratio lies in its ability to operate with multiple outputs and inputs. A
single efficiency score is derived by finding input and output weights that maximize the
combined output-input ratio for each brand.

One of the most notable characteristics of DEA is its deterministic approach to efficiency
measurement. DEA does not allow for estimation or measurement error. The full distance of a
brand to the efficiency frontier is interpreted as inefficiency. The underlying rationale is that
inputs determine outputs--without any interference from other influences. This may be
considered a critical assumption, especially in advertising. Despite this limitation, DEA has been
applied to numerous efficiency measurement problems. Its application to marketing research
concentrates on advertising efficiency (Donthu, Hershberger, and Osmonbekov 2005; Luo and
Donthu 2001; Tanaka, Takeda, and Nakajima 2002) and distribution efficiency (Donthu,
Hershberger, and Osmonbekov 2005; Donthu and Yoo 1998; Horsky and Nelson 1996;
Kamakura, Ratchford, and Agarwal 1998; Ross and Droge 2002; Thomas et al. 1998).
Raj (1982): Investigated the different advertisement effects on the purchase behaviour of
consumers of high loyalty increase brand and product purchase when advertisement for that
brand increases, little switching occurs from competitive brands into the advertised brands.
Effect of increased advertising carry over a few months after that advertising is lowered back to
normal levels.
Petty 1983: He stressed the role of involvement in Advertisement effectiveness. He observed
that the undergraduates express their attitudes about a product after being exposed to a magazine
advertisement under condition of either high/low product involvement. The advertisement
contained either strong or weak arguments for the product and featured either prominent sports
celebrities or any citizen or endorser. The manipulation of argument quality had a greater impact
of attitudes under high than low involvement, but manipulation of endorser had greater impact
under low than high involvement. These findings were consistent with the views that there are
two relatively distinctive routes to persuasion.
Teffis (1985): In this article (Are Advertisements Waste) remarked that the advertisement is one
of the least importance determents of purchase behaviours. The TV commercials albeit being the
most opular form of advertisements have little impact on the purchase behaviour of consumers.
He concluded that TV commercials were the least effective means for changing the preference of
consumers as compared to other promotional techniques such as coupons, print ads and price
offers.
Karmali (1989): supports the fact that the enhancement of brand appeal through celebrity
appeal works. In these ads renowned personalities are used to enlarge, reassure the perspective
customers. The ads using celebrity appeals had more brand appeal enhancing effect than the non
celebrity appeals.
21
Politz (1990): He found that purpose of campaign most often is to built an impression of product
and service to generate sales, suggesting that campaign most only create awareness but also
should be persuasive. A creative approach combined with persuasive message high lightning
uniqueness of the advertised product often enables the advertisers to hold a long distance with
the shoppers when the advertisement is heard or seen thereby enhancing its effects on the buyer
at the time of purchase.
Schreiber and Appeal (1990-91): Assigned that researchers have been using surrogates for
sales as a measure for evaluating the effectiveness of advertising. The use of surrogate measure
necessarily implies a relationship between surrogate measure and sales which can be described
mathematically as a curve of some sort. Hence the implicit assumption is that relationship
between surrogate measures instead of sales is not with faults.
Unnava and Brunkrant 1991: he did a study whose main objective was to compare the
effects of varied v/s same execution of advertisements on brand name memory when the number
of exposure toads is held constant. They found out that varied advertisement executions enhance
memory for brand name over repeated same executions. In varied advertisement executions
learning was superior when execution remained same.
Brown and Rothschild (1993): Conducted a study whose primary objective was to investigate
the degree in which consumer memory for brand is affected by increasing level of Advertising
clutter. The findings suggest that at the current level of Advertising clutter on TV, it may be that
neither recognition nor recall of brand is affected to any great by significant increase in
advertising clutter.
Singh and Cole (1993): they did a lab experiment in which they compelled the effectiveness
of 15 second TV commercial with 30 second TV commercial by using novel commercials with
different messages, appeals, and information versus emotional exposing subjects multiple times
and employing multiple dependent variables. They found that informational 15 sec ads are as
effective as informational 30 sec ads in general situations. They also found that emotional 30 sec
ads are superior to emotional 15 sec in influencing a viewers learning of brand and attitudes. The
result suggests that the length per second effects brand name recall for emotional commercials
but frequency of brand mentions not length, effect brand name recall for informational
commercials.
Menon 1994: In an article titled “the comparative advantage” has written that comparative
advertising which directly or indirectly compares a product with a competitor to show the
advertised
products advantage has been prevalent in Industry for many years. But in exciting scenario,
where new brands in parallel category are springing up at a rapid rate, this kind of advertisement
is gaining momentum. Most prominent among these have been Pepsi and Captain Cook
companies. Although comparative advertising is not prohibited in our country, it has been
severely stymied by stringent rules set by DD with the satellite channels coming in, this may not
be a hindrance any longer. Even governing bodies like ASCI (Advertising Society Council of
India) may not be in a position to check the tide with the product category getting overwhelmed
and players fighting for respectable market share. Mm
Eva-Lena (2006): International Advertising and International sponsorship respectively influence
the local target group in different ways, but also affect International brand , they have an impact
on brand image and brand equity. More over depending on a person’s age consumers view
brands differently and thus have an effect on International brand alone, but also in combination
with International Advertising and International sponsorship together these factors influence the
way in which a brand is perceived and consequently influence consumers preferences.
Gareth Parkin: “Positive effects of promotional mugs” says that a simple mug can be such a
powerful marketing and Advertising tool. By embossing your company name, logo, message,
website details on promotional mugs, you can impact a message to prospective clients and those
around them. By using the latest printing techniques, promotional mugs can easily be decorated
to reflect your business or brand .Style and advertising message for creating strong and lasting
brand recall.
Unnova and Brunkrnat (1991): They did a study whose main objective was to compare the
effects of varied v/s same execution of advertisement on brand name memory when the number
of exposure to ads is held constant. They found that varied ad executions enhance memory for
brand name over repeated same ad execution. In varied ad execution learning was superior to
learning when execution remained the same.
Burnet (1995): conducted a research to identify 200 most awarded commercials and their
association with success market place. It was pointed out that 86% i.e 172 commercials were
successful within these 117 achieved increase in sales volume, market share and other 55 were
successful in brand image enhancement.
J. Varaprasdreddy ( Role of Advertising in Creating Brand Personality)
Brand personality being potent tool needs to be leveraged to achieve key objectives for existing
& new brands. Consistency is also important, failing which dilution of brand personality or
absence of it may occur. Other mix elements like distribution, pricing, promotion and packaging
(apart from advertising) should support and strengthen brand personality.
Dr. Vijay Pithadia (Evaluating International Advertising Techniques & Opportunity)
Over the years, the public perception of advertising has become very negative. It is seen as a
medium that inherently promotes a lie, based on the purpose of the advertisement - to encourage
the target audience to submit to a cause or a belief, and act on it to the advertising party's benefit
and consequently the target's disadvantage. They are either perceived as directly lying (stating
opinions or untruths directly as facts), lying by omission (usually terms or conditions
unfavorable to the customer) or portraying a product or service in a light that does not reflect
reality. It is this increased awareness of the intention of advertising, as well as advertising
regulations that have increased the challenges that marketers face

John Deighton : The Effect of advertising on brand switching and repeat purchasing,
The authors examine switching and repeat purchase effects of advertising in mature, frequently
purchased product categories. They draw on consumer behaviour theories of framing and usage
dominance to formulate a logic choice model for measuring these effects. They estimate the
model using single-source scanner data. Their results suggest that advertising induces brand
switching but does not affect the repeat purchase rates of consumers who have just purchased the
brand, a result consistent with usage dominance rather than framing. They find the switching
influence to be largely confined between the current and previous purchase occasions. They
illustrate the magnitude of this effect and explore potential profitability.
Kahle and Homer (1985) when a celebrity's physical attractiveness is congruent (matches up)
with the presence and degree to which the product advertised enhances attractiveness (i.e.,
attractive celebrity linked with an attractiveness-related product), the "match-up" hypothesis
would predict a positive impact upon product and advertisement evaluations. However, if there
is incongruence between the product and celebrity attractiveness, evaluations will decline.
Biswas S, Hussain M, O'Donnell K say that here is a positive, although moderate, impact of
celebrity endorsements on attention and exposure of consumers. Implications for marketers as
well as suggestions for future research are discussed. The article is of the view that although
there is considerable risk in endorsing celebrities for products and services, the firms need to
analyse the various factors that can reduce such risks and hence increase the likeability of
transfer of leverage of the brand image from the celebrity to the products and services.
Dix S, Pougnet S (2009) in their research have found that Athlete role model endorsers have a
positive influence on young adults' product switching behaviour, complaint behaviour, positive
word-of-mouth behaviour and brand loyalty. This confirms the assumption that sports celebrities
are important socialisation agents and can have significant impact on purchase intentions and
behaviours. This research provides useful insight into the influence of athlete endorsers on
young
adults and suggests athletes have a positive influence on young adults' behavioural intentions in
switching products, generating word-of-mouth and establishing brand loyalty.

OBJECTIVES

1. To study the impact of the Advertisements on the consume behavior towards car.
2. To study the consumer perception regarding the most effective media for Advertisements.
3. To study the impact of the celebrity endorsement on the consumer buying behaviour .

RESEARCH METHODOLOGY

RESEARCH DESIGN
A reseach design is a framework or blueprint for conducting the marketing research project. It
specifies the details of the procedures necessary for obtaining the information needed to structure
and/or solve marketing research problem.
The research design used in this project is Descriptive research design.

Sample Design
SAMPLING TECHNIQUE USED:
In this research we have used Convineance Sampling.
Geographical Area : Jalandhar
SAMPLE SIZE:
For this study, a sample of 100 has been taken.
Data Collection Instrument:

Questionnaire
SOURCES OF DATA COLLECTION:
1. Primary data: It is the first hand information collected through questionnaire.
2. Secondary data:
Secondary data was collected from the following sources:
Books
Newspapers
Journals
Magazines.
Research Papers

DATA COLLECTION & DATA ANALYSIS

FACTOR ANALYSIS

Correlation Matrix
 Does an How does
advertis an
ement advertise
Does showing ment
Adver Which of your showing
How tisem the favorite your
much ent Which Can you following s favorite
effect affect medium recall aspect of celebrit celebrity
What Which advertis s the of any the y affect affect
type of brand of ement choic Advertise advertis advertisem your your
car do Car do on your e of ment you ement ent you choice perceptio
you want you like buying your like the of your remember of n of the
to buy? most decision brand most Brand most Brand brand
What type of
car do you want 1.000 -.047 -.158 -.089 .091 .255 -.189 .306 .209
to buy?

Which brand
of Car do you -.047 1.000 .117 .003 -.051 -.029 .161 -.191 -.061
like most

How much
effect
advertisement
on your buying
decision
-.158 .117 1.000 .145 .109 .127 .198 -.094 .102
Does
Advertisement
affects the -.089 .003 .145 1.000 -.164 -.027 .165 .144 -.113
choice of your
brand
Which
medium of
Advertisement
you like the
most
.091 -.051 .109 -.164 1.000 .031 .198 -.141 .107
Can you recall
any
.255 -.029 .127 -.027 .031 1.000 -.050 -.011 .200
advertisement
of your Brand
Which of the
following
aspect of the
advertisement
Communalities
Initial Extraction
What type of car do you
1.000 .640
want to buy?

Which brand of Car do

1.000 .231
you like most
How much effect
advertisement on your 1.000 .576
buying decision
Does Advertisement
affects the choice of 1.000 .683
your brand
Which medium of
Advertisement you like 1.000 .627
the most
Can you recall any
advertisement of your 1.000 .686
Brand
Which of the following
aspect of the
1.000 .666
advertisement you
remember most
Does an advertisement
showing your favorites
1.000 .696
celebrity affect your
choice of Brand
How does an
advertisement showing
your favorite celebrity 1.000 .424
affect your perception
of the brand
 Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings
Comp % of Cumulative % of
onent Total Variance % Total Variance Cumulative %
1 1.848 15.403 15.403 1.848 15.403 15.403
2 1.727 14.388 29.791 1.727 14.388 29.791
3 1.403 11.693 41.484 1.403 11.693 41.484
4 1.359 11.328 52.813 1.359 11.328 52.813
5 1.026 8.547 61.360 1.026 8.547 61.360
6 .960 8.004 69.364
7 .862 7.185 76.549
8 .729 6.076 82.625
9 .703 5.861 88.486
Extraction Method: Principal Component
Analysis.
 Component Matrixa
Component
1 2 3 4 5
What type of car do you
.691 .171 .277 -.229 -.061
want to buy?

Which brand of Car do

-.424 .123 .045 -.005 .184
you like most
How much effect
advertisement on your -.347 .354 .521 .217 .111
buying decision
Does Advertisement
affects the choice of -.207 -.393 .413 .360 .430
your brand
Which medium of
Advertisement you like .085 .587 -.217 .371 -.302
the most
Can you recall any
advertisement of your .335 .425 .250 -.092 .568
Brand
Which of the following
aspect of the
-.342 .257 .262 .610 -.204
advertisement you
remember most
Does an advertisement
showing your favorites
.615 -.424 .266 .258 .023
celebrity affect your
choice of Brand
How does an
advertisement showing
your favorite celebrity .213 .482 .309 -.219 .054
affect your perception
of the brand
Extraction Method: Principal Component Analysis.
a. 5 components extracted.
 FINDINGS

1. After analyzing the data collected from 100 respondents, it is revealed

that most preferred brand is maruti suzuki .

2. There is an impact of the Advertisements on the consumers regarding

the choice of their brand, i,e there is a significant relationship between
advertisements and the choice of the brand.

3. The most liked medium of Advertisements is television followed by

Internet and Outdoor media .

4. Internet is mostly liked by the younger youth between the age group
18-25 because of the access to new technologies.
5. Newspapers and Radio has the low rating as compared to other
mediums, because they are still used by aged people.

6. There is a great impact of the advertisements on the consumers as

83% respondents replied they do recall the advertisements of their brands.
This recall helps them in decision making while making a purchase.

7. People remember different aspect(s) of the advertisements. The most

remembered aspect by respondents is Punch Line, followed by Celebrity.

8. Celebrity endorsement has a positive effect on the perception of the

respondents.

9. Almost all the respondents were able to answer the last question which
was based on the aided recall. Respondents were given punch lines of
different brands and respondents have to identify the brands with which
they are associated.

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam.
I am doing a survey as a part of our MBA programme from Lovely Professional University. The
purpose of this survey is to study the “Influence of advertising in case of buying behavior
towards cars”, so I would be grateful if you could spend some of your precious time in filling
up this
NAME…………………….
AGE………………………….
ADDRESS………………………
CONTACT…………………………….

Q1. What type of car do you want to buy?

(a) Jeep
(b) Sports
(c) luxury

Q2. Which brand of Car do you like most?

(a) Hyundai (b) Honda
(c) Maruti Suzuki (d) Tata

Q3. How much effect advertisement on your buying decision?

(a)Strongly Agree (b) Agree
(d) Neutral

Q4 Does Advertisement affects the choice of your brand?

(a)Strongly Agree (b) Agree
(d) Neutral (d) Disagree
(e) Strongly Disagree

Q5. Which medium of Advertisement you like the most?

(a)TV (b) Radio
(c) Newspapers (d) Magazine Internet
(e)Out Door Media

Q6. Can you recall any advertisement of your Brand?

(a)Yes
(b) No

Q7. Which of the following aspect of the advertisement you remember most?
(a)Color (b) Slogan
(c)Theme (d) Punch Line
(e) Celebrity

Q8. Does an advertisement showing your favorites celebrity affect your choice of Brand?
(a)Yes (b) No
(c) Can’t say

Q9. How does an advertisement showing your favorite celebrity affect your perception of the
brand?
(a)Positively (b) Negatively
(c)Can’t say

BIBLIOGRAPHY

BOOKS REFERED

 Philip Kotler (2008), Marketing Management 12th Ed, New Delhi, Pearson
Education,
PP34-42
 Kotler, Philip and Pfoertsch (2006) Waldemar, 12th Ed, New Delhi, Pearson
publication, PP
 Shah .K and D’Souza .A (2009) Advertising and Promotions :An IMC
Perspective 11th Ed,
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