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A Research Report On

IMPACT OF ADVERTISEMENT ON THE BUYING BEHAVIOR OF CONSUMERS

Course Name: Basics of Research Methodology Course Code: SWR 405

Submitted To
Mr. Shabab Ahmad Assistant Professor Central University Of Himachal Pradesh

Submitted By
Sangitta Pathania MBA (General) Roll No. CUHP10 MBA23

Acknowledgement

First of all I would like to thank and praise The Supreme GOD, who blessed me with the courage and strength to complete my research work. I would like to express my gratitude to all those who gave me the possibility to complete this research work. I am highly thankful to Mr. Shabab Ahmad , whose encouragement and guidance acted as an inspiration to me. Indeed the words at my command are not adequate in form or in spirit to meet the ends of justice in the matter of expression of deep sense of gratitude to my friend Ankur Sarswat, whose encouragement, guidance and constructive criticism led me to perform my work well . I want to place on record my sincere thanks to all my faculty members, co-mates and friends for their kind support during my research work.

CONTENTS

1) Introduction
1.1 Intorduction to Research Topic 1.2 Need of the study 1.3 Scope of the study 1.4 Objectives of the study 1.5 Limitations of the study 2) Review of Litrature

3) Research Methodology 4) Data Analysis and Interpretation 5) Conclusion 6) Suggestions and Recommendations Bibliography Annexure

Chapter 1

INTRODUCTION

INTODUCTION
As being incorporated or associated with the Marketing process, advertising finds its position in every organisation. Advertising can be defined as another strategy as an approach towards competitive advantage. Various advertising concepts are in the stream of the media but still there is a little evidence that advertising can significantly help the organisation boosts its performance. In terms of sales, it is true that 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.

Background
Many businesses explore various options in order to achieve the success. The organisation action towards the threats and challenges in globalisation enable the propellers and the people to work to meet their corporate Objectives and long-term goals. A simple Marketing Concept is viewed by the business analyst as an effective strategy if the organisation is planning together and keep the loyalty of consumer . The use of the advertisement within the organisation is interestingly growing and various researches value its importance as an important factor that can influence the buying behaviour of the consumers. According to modern marketing concept, advertising is of great significance to make the people aware of various products and services provided by various organisations. Today, when consumers are considered as the King of the Market organisations need to focus upon the consumers needs and wants. But in this competitive era, catching the consumer market, is a very hard task as so many substitutes and alternatives are present for them. Its really difficult for the organisations to convince the consumer to go for their product or service. Thus, advertising serves as most convenient way to interact with consumers.

Need of the Study

In todays time when organisations are spending a lot on advertising and promoting their product and services. Are, these advertisements are really benefiting the organisations in promoting their products? Do people influenced by the advertisements ? Likewise, there were so many reasons which created a need to study an impact of advertisements on buying behaviour of consumers. The interest paid by the past researches on the function of the advertising in the organisations is considered as one reason of the study. In addition, maintaining and extending the purpose of advertisement from the simple operations of the organisation creates the similar interest. If the idea on how powerful the advertisement can be , the organisation can find its own place in the market and can play with the competition. Another reason is to analyse, whether advertising really influence the buying behaviour of the consumers or just an expense for the organisations.

Scope of the Study

The research is conducted to study the impact of advertisements on consumers buying behaviour. The scope of the study is as The study can help the organisations to know the consumers perceptions towards the advertisements and accordingly work upon the things for further improvements. To understand the impact of advertisements on the consumers buying behaviour.

Act as a beneficial study for add agencies as revealed what kind of advertisements fascinates and attracts the consumers. What kind of advertisements they appreciate and what not?

Objectives of the Study

The first objective of the study is to understand the role of advertisement as a part of the marketing. Second objective is the determine the level of influence that advertisement can create to manipulate or influence the buying behaviour of consumers. Third objective is to understand consumers perception towards advertisements.

Limitations of the study

The results drawn from the research might not be accurate due to some uncontrollable and unavoidable factors.The major obstacles which came in the way while, conducting a research are like as Time and Cost constrains. Sampling error may be there as convenience sampling type was opted for the study purpose. Respondents may be biased in their responses. Due to certain limitations of time and money, sample size of 30 was taken.

Chapter 2

Review of Literature

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Review of Litrature

The role of advertisement changes onto what the organisations wants them to do. The organisation use advertising to help them survive from the impacts of the economic trends. Many researchers viewed that advertisements plays a significant effect on consumer behaviour. And in long process, advertising can lead the organisation to competition. The accepted basic purpose and role of advertising is to provide right information to consumers regarding the products and services, which is related to the objectives of competition and that is to deliver the consumer satisfaction. Thus, the level of advertising affects the consumers who are the focus of organisation ( Park, 1996). Based upon the previous studies there are three influential factors which effect the consumer decision when buying. These are External influences, Internal influences and the Marketing influences in which the Advertising, Product promotion and Pricing techniques are found. The marketing activity such as advertising thus influence the external and internal behaviour of consumers. Most especially the consumers perception are influence through the exposure such as seeing an advertisement; attention which means that the consumer recognises the advertisement; awareness which is common if the advertisement involves some humour ; and retention that keeps or stays in the mind of the consumer ( Chen and Lee, 2005)

Advertisements also affect the knowledge by giving information , attitude, personality, lifestyles of consumers and the culture of the consumers. The concept of advertising makes it possible to involve the consumers which greatly affect the buying decisions of the consumers. ( Tsai, Liang, and Liu, 2007)

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Chapter 3

Research Methodology

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Research Methodology

The most significant step in solving research problem systematically is to adopt the best research methodology. The research methodology, not only include the research methods, but also consider the logic behind the methods. Research Methodology comprises of defining and redefining problems, collecting, organizing & evaluating data, making deductions conclusions. and researching to

The determination of accurate methodology is extremely essential for the successful completion of the research work. The research methodology is framed after carefully scrutinizing the objectives of this study.

Research Design

The research design is much needed, since it facilitates the proper and systematic persuasion of the various research operations. Research design is a plan of action to be carried out in connection with a proposed research work relevant to a specific problem. It provides guidelines for the researchers for keeping the track of his actions and to know that he is moving in the right direction in order to achieve his goal.

Research design is the plan, structure, and strategy of investigation conceive so as to obtain answers to research questions. This research is mainly

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descriptive in nature. It broadly involves data collection and its analysis. It aims at defining the impact of the advertisements on the consumer and importance of advertising in this competitive era.

Sampling
The term sampling indicates the selection of a part of a group or an aggregate, which we select for the purpose of the investigation. Sampling plays a vital role in carrying a research study. It includes the determination of the sample size, sample basis and sampling method etc.

Sample is a representative of the whole Population. It is the population which is under study.

a) Sampling Design
Most of the studies involve a sample relevant to the problem. Sampling design has vital importance in a research, since census is impractical and it requires more money and time.

b) Sample Basis
This study is conducted in Dhramshala and its suburbs Shahpur, Draman and Kangra located in Kangra distt. Of Himachal Pradesh.

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c) Sample Size
The size of the sample should be decided before selecting the samples. The size of the sample should neither be too large nor too small. It should be optimum. An optimum sample is one which fulfills the requirements of efficiency, representation, reliability and flexibility. The size of sample should be kept in mind as it involves cost and time.

The sample for this study comprises 30 respondents. Since, the advertisements are made mainly by targeting the common people and capture the market. Thus, common individuals were selected for the study.

d) Sampling Method
Sampling methods is the way the sample units are to be selected. There are mainly two method of selection as probability and non probability sampling technique. However, in some cases a mix of the two methods is also used.

For this study, Convenience Sampling technique is chosen as the basic method to carry out the study along with a Random Sampling.

A Convenience Sampling technique is the one in which the only criteria for selecting the sample units is the convenience of the interviewer and a Random Sampling technique is the one in which each and every item in population has equal chance of inclusion in a sample and each one of the samples have same probability of being selected.

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Data Sources & Data Collection

For accomplishing the research successfully, determination of adequate data sources and appropriate data collection methods are extremely essential. Both, primary and secondary data are used for this research study.

a) Secondary Data Collection

Secondary data is defined as the data which already exists. In other words, any data which have been gathered earlier for other use is secondary data. Many researchers feel that a problem can be partially solved with the help of secondary data. Secondary data are often available in one form or another in the existing sources. The use of secondary data in an effective manner requires a complete knowledge of the techniques of primary data collection. The process of secondary data collection and analysis is called Desk research.

For the present study, the secondary data is collected from different journals and articles in magazines, news papers and web, as they feature the contemporary trends and developments in the competitive world.

b) Primary Data Collection

Freshly collected data is known as primary data. It is the first hand information. Primary data may pertain to demographic characteristics, awareness and

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knowledge, customers attitudes, intentions, feelings, beliefs etc. primary data can be collected by various methods as surveys, observations and experiments.

Since this study mainly focuses on the consumers perception, a well structured questionnaires is constructed and administered on the consumers. Care is taken in framing the questions to bring out attitude and perceptions of the customers towards advertising the products and services. The method of data collection thus mainly the questionnaires given and collected hand to hand.

Data Analysis Tools and Techniques

Data analysis is an important technique in the research process. After the data have been collected, it is necessary to analyze and process these data in order to make inferences regarding the population under the study. There are several statistical techniques available to accomplish the data analysis in an effective and efficient manner as measures of central tendency, measure of dispersion, univariate analysis etc.

Measure of Central Tendency (Arithmetic Mean), percentages graphs and piecharts are the basic data analysis tools and technique employed in this study.

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Chapter 4 Data Analysis and Interpretation

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For this study, a total of 30 individuals were asked to fill the questionnaire. Out of which 17 ,i.e., 57% were female and 13, i.e., 43% were female. They belongs to various age groups from 21 to 50 years of age and were include in the sample as, all the age groups do listen and watch the advertisements.

MALE GENDER FEMALE

57% 43%

Among total respondents, 84% of sampled respondents marked advertising, the products and services, as most significant way of promoting the products and services and keeps them updated about newly launched or existing products in the market.

This proves that advertising do play a vital role in capturing the market and acts as an important promotion strategy. Advertising really, helps the organizations in gaining the competitive edge and survive in this cut-throat competition.

From the study by using simple arithmetic mean and percentages, it is found that majority , i.e., 40% of the respondents do watch and listen the advertisements and 17% of the respondents rarely look upon thde advertisements.

About 38% of respondents were of the view that the advertisements which showcase bigger celebrities sometimes fascinate them but majority,i.e., 40% of the sampled respondents give importance to what is provided instead who is doing that .

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Do more advertising fascinate the Consumer

30% YES 54% 16% NO CAN'T SAY

It is the general perception of the 54% of the respondents that more the number of times, a person hears or sees an advertisement more they are fascinated towards that product knowingly or unknowingly. But, the study also revealed the fact that the people are now aware of the things. Though, they unknowingly fascinated towards the products advertised more and more but do check product features before going for that. As, major class of the respondents , i.e., 50% are of the opinion that the company which advertises more is not necessarily a better brand.

Many are of the view that some of the advertisements have bad effects on a childs mind. Out of all, 20% respondents were having kids and 10% of that group responded that their wards bother them to get the products shown in the advertisements.

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Do People check for the product advertised, in the market?

13%

37%

10%

YES NO 40% SOMETIMES DEPENDS ON PRODUCT

From the above pie- chart it is clearly shown that majority of the people ,i.e., 37% after seeing an advertisement go for checking the product only and only if the product is of their interest. 40% of the respondents sometimes move to market for checking the product advertised and very small percentage of people never move to check for a product in the market. It is also found that about 24% of the respondents are never influenced by the advertisements and always go for their favorite brand. The advertisements rarely fascinate or deviate them from their personal favorite brands. But , 54% of the sample group were agree upon the fact that the advertisements do change their mind and made them to go for new product. Thus, it is found that advertisements do have an impact on buying behavior of the consumers.

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Do Advertisements keep you( consumers) Updated with Latest Products in the Market?

14% 3%

YES NO 83% SOMETIMES

From the given study it is found that 83% of the respondents think that advertisements keep them updated with the latest products in the market. This proves that advertisements solve the basic purpose, that is awaring the consumers about the latest products. Thus, acts as an important promotional strategy and serve sa an important tool for at least communicating with the target market.

It is found that advertisements do sometimes influence the consumers buying behavior and aware them but the important factor which was included in the

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study to know their perceptions was, do companies actually deliver what they promise? Surprisingly, it was found that 30% of the respondents believes that they dont. Few were of the opinion that they sometimes do depending upon the brand. But , none of the belief that they do deliver what they promise. It proves that none completely rely upon the what is advertised about the product.

What according to you (consumers) the most effective medium of Advertisement

3%

3%

0%

14%

TV NEWSPAPER RADIO 80% HOARDINGS AND PAMPHLETS INTERNET

Based upon the data collected for the study, In the above figure, it is highlighted that from that according to consumers the most effective medium of advertising is Television followed by Internet and then Newspaper and hoardings. Since, nowadays TV is available at every place thus, acts as most effective medium to reach every corner of the world and aware the people about the various products and services. Besides this, in this modernised world where, e-

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networking is of wide importance serves as another effective tool of advertisement.

For the study, the few open ended questions were also included which revealed the fact that people generally look upon the advertisements which are more informative. It is found that the advertisements having some new and innovative idea are liked more and influence the people. According to them advertisements should be simple and informative but should be fascinating and attractive to draw the attention of the consumers.

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Chapter 6

conclusion

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CONCLUSION
In this globalised and competitive world to survive and grow is the hardest task for any organisation. There is a cut- throat competition among the companies to rise their sales and market share. Today, consumers are considered as the king of the market thus the most important task which lies with the organisations is to satisfy them and gain a brand name. According to modern marketing concept the advertising is considered as most effective mean to promote the products by creating awareness among the people.

From the study, it is found that advertisements do have an impact on the buying behaviour of the consumers . majority of the respondents ,i.e., 83.3% of the respondents believe that advertisements keep them updated with the latest products and services. It enables them to be informed about the innovatively featured latest products and their different substitutes.

Advertisements do sometimes attract and fascinate the consumers and make them to go and check for the advertised products. Advertising thus, upto some extend deviate the consumers from their personal favourite brands. 24% of the people do influenced by the advertisements and check upon the advertised product in the market.

According to the survey conducted, it is found that the general perception of the consumers towards the advertisements is that advertisements keeps them updated about latest products and sometimes do influence their buying behaviour but it depends upon the product. It is also discovered that the majority, i.e., 53% of the respondents supported the fact that consumers are attracted towards the product, advertised again and again, knowingly or people

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are unknowingly. But at the same time they are also of the opinion that the company advertises more is not necessarily a better brand. Generally, people prefer to check out the advertised product if its of their interest.

From the survey conducted, it is also observed that TV is the most effective and powerful medium to convey the organisations message to every individual in every corner of the world.

The research work, however, also revealed another important fact about consumers. Today, they dont blindly believe whatsoever is shown to them or advertised. Instead, they follow their own instincts and experiences before finalising any product. 46% of the respondents were of the opinion that companies sometimes, depending upon the brand, actually deliver what they promise but majority still believes that they never. Thus, companies must emphasis on the things and features they actually posses or giving to their consumers.

In addition to this, the modern people supported the fact that the advertisements should be more informative and simple instead of fancy and misleading. They are more influenced by the one having some creative, innovative and conceptual idea.

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Chapter 7 Suggestions and Recommendations

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Suggestions and Recommendations

With the globalisation and changing marketing concepts, advertising for the product is the considered to be of great significance. Advertisements do help to aware consumers about particular product existing or latest in the market.

After the survey and analysing various facts and figures, following are the few suggestions and recommendations to the organisations:

The organisations should provide the true and accurate information to the consumers instead of name. any irrelevant and fake information for their personal benefits. This would definitely help them to build their brand

The advertisements should be more and informative and conceptual instead of a fancy and illogical. There should always some new idea and concept behind any add. This would be proved beneficial for attracting the consumers looking for some new and innovative.

Since, consumers take advertisements as the most effective medium for keeping them updated about new products and services thus, should adopt advertising as the best strategy for promoting their products.

Apart from TV , nowadays, since internet is most widely used by the people. Thus, should also advertise through it.

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Organisations must also pay concern on the fact that whatsoever they promise and advertise should actually deliver that. This would lead to customer satisfaction which ultimately helps the organisation in gaining the loyalty of the consumers.

The advertisements be made in such a way that it reveals all the information about the product and draws the consumers attention. As people go to check the products which are of their interest or attracts them.

All these suggestions can be proved useful for the organisations for making advertisements more effective and influencing.

The study could also proved to be useful for the Add Agencies as determined the perceptions of the consumers towards the advertisements. What kind of advertisements draw their attention and what kind of advertisements they like most.

Following are the few suggestions for such agencies: Advertisements with some basic concept and idea shown differently are mostly liked by the consumers . They generally, look upon something which is uncommon. Thus, while making any advertisement it should be considered.

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The advertisements showcasing bigger celebrities are worthy if advertised well. Thus, should be made carefully and effectively.

Since, todays consumers are aware of everything thus, advertisements should be made as they give a true and fair idea about product to the consumers. It should create awareness among them not mislead them.

The advertisements should be simple and informative as such advertisements are generally liked by majority of people.

These ideas may be thus proved to be useful for the organisations for making advertisements more effective and capturing the consumer market. Advertisements do sometimes influence the consumers decisions while going for the products in the market and keeps them updated. Thus, should be made by keeping consumers perceptions and view in mind.

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BIBLIOGRAPHy

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BIBLIOGRAPHY
A) The following sites are used to take some data: www.businessstandard.com/smartinvester/storypage.php? www.economictimes.indiatimes.com/articleshow/msid-2186948 www.ntu.edu.sg/nbs/sabre/working-papers/pdf

B) For the study, following books are also consulted for taking some data:

Schiffman & Kanuk, Consumer Behaviour, Prentice Hall India,1995 Kotler & Armstrong, Principles of Marketing Management, Prentice Hall India, 2003

C) Some data is also taken from the journals by using electronic resources , like

Park, D. 1996. Advertising and the Meaning of competition. Working Papers: 24-96. Chen, W. and C. Lee. , 2005. Impact of Web Site Image and Consumer Personality on Consumer Behavior. International Journal of Management. 22.3 (2005). Tsai, M. , Liang and Liu, 2007. The Effects of Subliminal Advertisement on Consumer Attitudes and Buying Intentensions. International Journal of Management. 24.1 (2007)

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annexure

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The following questionnaire was formulated for the study.

CENTRAL UNIVERSITY OF HIMACHAL PARADESH

Dear Sir / Madam. I, Sangitta Pathania, pursing MBA from Central University Of Himachal Pradesh, Shahpur. I have been assigned a task of preparing a research report. My topic for research is An impact of advertisement on buying behavior of consumers. For the purpose of this project, a structured questionnaire has been developed. I kindly request you to spare little of your valuable time to fill up this questionnaire. I herewith assure you that the information collected will be used only for this research project.

Thanking You.

Sangitta Pathania

Respondents information:

Name: Age: Gender: Occupation: Address:

_________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ________________________________ Pin code: _________________

____________________ Signature

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1) Do you switch channels when advertisements come in between your favorite TV programs? Yes Sometimes N NO Depends on the advertisement

2) Are you more fascinated or influenced by the advertisements that showcase bigger celebrities as compared to those that do not? Every time Never Sometimes Depends on the advertisement

3) When you see an advertisement on TV, do you go and check for that product in the market? Yes Sometimes No Depends on the product

4) Do advertisement change your mind or you always stick to your personal favorite brand? Yes, advertisements do influence my decisions. No, I always stick to my favorite Brand. They sometimes do. I go to the shop and pick up any product randomly.

5) Do you believe that more the number of times, a person sees or hears an advertisement more he/she is fascinated towards that product unknowingly. Yes Cant say No No Idea

6) Do your children bother you to get them the products shown in the advertisements? Yes Sometimes No I dont have any kid

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7) Are you of the opinion that advertisements have bad effects on a childs brain? Some of them None of them/ No All of them Cant say

8) Are you of the opinion that the company which advertises more is a better brand ? Yes No Idea No Varied Opinion

9) Companies try to make advertisements which trigger the emotions of viewers. Do you believe such advertisements are actually effective? Yes Cant Say No No Idea

10) Do you believe that companies or brand actually deliver what they promise? Yes Sometimes No Depends on the Brand

11) Do you think that advertisement keep you updated with the latest products? Yes Sometimes No Cant say

12) Which according to you is the most effective medium of advertisement? TV Radio Internet Newspaper Hoardings or Pamphlets

13) Do you believe that the companies extract their expenses on advertisement from the consumers ,i.e, do advertisement increase the cost of products? Yes No Idea No Sometimes

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14) Which is your recent most favorite advertisement and why?

15) According to you, should advertisements be simple and informative or fascinating and attractive as they are made nowadays Give your opinion.

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