CHAPTER- 1

PROLOGUE

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1.1 INTRODUCTION

Advertisements is a form of communication that typically attempts to persuade potential

customers to purchase or to consume more of a particular brand of product or service

one element in corporate strategies to create, organize and where possible control

markets, especially for mass produced consumer goods. One element in corporate

strategies to create, organize and where possible control markets, especially for mass

produced consumer goods. Many advertisements are designed to generate increased

consumption of those products and services through the creation and reinvention of the

"brand image”. Every major medium is used to deliver these messages, including

television, radio, cinema, magazines, newspapers, video games, the Internet, carrier bags

and billboards.

Advertisements played a vital role in buying decision. Through advertisement,

Consumers are come to know about the product, its uses, benefits, availability, and

brand name of products. At the time of buying a product, they recall the advertisement

and then they take their buying decision in many cases.

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1.2 CONCEPTUAL FRAMEWORK

Consumer behavior is a complex issue and significant in marketing. In general it is

associated with psychological status of the consumer in taking or rejecting buying decision.

The most important part of consumer behavior is the action that taken by the buyer to accept

or reject of an offered product or product available in the market.

Buying decision is a critical stage fro m the point of view of both the customer and marketer

specifically in case of durable product. while taking a buying decision by a consumer he/she

consider many aspects related to a product ,price, warranty etc.refrigerator is a common

durable essential house product required by each and every family. It is impossible to think

about any family without a refrigerator specifically in the urban counterpart. In selecting

house hold products the house maker invariably influences on the buying decision and

buying behavior of the head of the family is also affected in many cases.

Of course advertisements always work in influencing the customer in taking their buying

decision. It is very difficult to measure properly the impact of advertisement in taking

buying decision by consumer bit some indication may be find out to know the implication of

advertisement through some questions.

In our study area advertisement and buying decision of house maker in relating to

refrigerator has also been giving us an opportunity to consider the term consumer behavior

and decision making process in general.

Consumer behavior is the study of when, why, how, and where people do or do not buy

a product. It blends elements from psychology, sociology, social anthropology and

economics. It attempts to understand the buyer decision making process, both individually

and in groups. It studies characteristics of individual consumers such as demographics and

behavioural variables in an attempt to understand people's wants. It also tries to assess

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influences on the consumer from groups such as family, friends, reference groups, and

society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen interest in the re-discovery

of the true meaning of marketing through the re-affirmation of the importance of the

customer or buyer. A greater importance is also placed on consumer retention, customer

relationship management, personalization, customization and one-to-one marketing. Social

functions can be categorized into social choice and welfare functions.

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:

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*Adopted from

This model is important for anyone making marketing decisions. It forces the marketer to

consider the whole buying process rather than just the purchase decision (when it may be

too late for a business to influence the choice!)

The model implies that customers pass through all stages in every purchase. However, in

more routine purchases, customers often skip or reverse some of the stages.

For example, a student buying a favourite hamburger would recognize the need (hunger)

and go right to the purchase decision, skipping information search and evaluation. However,

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the model is very useful when it comes to understanding any purchase that requires some

thought and deliberation.

The buying process starts with need recognition. At this stage, the buyer recognizes a

problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a

marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and

chocolate muffins).

An “aroused” customer then needs to decide how much information (if any) is required. If

the need is strong and there is a product or service that meets the need close to hand, then a

purchase decision is likely to be made there and then. If not, then the process of information

search begins.

A customer can obtain information from several sources:

• Personal sources: family, friends, neighbors etc

• Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale

displays

• Public sources: newspapers, radio, television, consumer organizations; specialist

magazines

• Experiential sources: handling, examining, using the product

The usefulness and influence of these sources of information will vary by product and by

customer. Research suggests that customer’s value and respect personal sources more than

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commercial sources (the influence of “word of mouth”). The challenge for the marketing

team is to identify which information sources are most influential in their target markets.

In the evaluation stage, the customer must choose between the alternative brands, products

and services.

How does the customer use the information obtained?

An important determinant of the extent of evaluation is whether the customer feels

“involved” in the product. By involvement, we mean the degree of perceived relevance and

personal importance that accompanies the choice.

Where a purchase is “highly involving”, the customer is likely to carry out extensive

evaluation.

High-involvement purchases include those involving high expenditure or personal risk –

for example buying a house, a car or making investments.

Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in

the supermarket) have very simple evaluation processes.

Why should a marketer need to understand the customer evaluation process?

The answer lies in the kind of information that the marketing team needs to provide

customers in different buying situations.

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In high-involvement decisions, the marketer needs to provide a good deal of information

about the positive consequences of buying. The sales force may need to stress the important

attributes of the product, the advantages compared with the competition; and maybe even

encourage “trial” or “sampling” of the product in the hope of securing the sale.

Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common for customers

to experience concerns after making a purchase decision. This arises from a concept that is

known as “cognitive dissonance”. The customer, having bought a product, may feel that an

alternative would have been preferable. In these circumstances that customer will not

repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the

potential customer that the product will satisfy his or her needs. Then after having made a

purchase, the customer should be encouraged that he or she has made the right decision.

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CHAPTER- 2

ABOUT THE

STUDY

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2.1 OBJECTIVES OF THE STUDY

To understand the impact of advertisement in taking buying decision by consumers of the study area.

To study the comparative advantages of advertisements for the respondents, with reference to refrigerator.

To study the consumer perception about the advertisement of different brands of refrigerator.

2.2 RESEARCH QUESTIONS

Advertisement has the ability to convert one’s decision in buying a particular

product. How much it can influence to the homemaker in taking their buying

decision relating to the refrigerator or has advertisement any impact on the study

area is pertinent to consider here.

2.3 SCOPE OF THE STUDY

The scopes of this particular study are:-

1. The study highlights the impact of advertisement in making purchase decision.

2. The study is conducted amongst the home maker in relating to Refrigerator in Dibrugarh

Town.

3. The study focuses the comparative advantages of advertisements among the home makers.

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4. The study highlights consumer perception towards the advertisement of different brands of

refrigerator.

5. The study focuses to know the significance of advertisements in today’s life.

2.4 RESEARCH METHODOLOGY

This study has been carried out to know the impact of advertisement in taking buying

decision by consumer amongst the home maker in relating to refrigerator in Dibrugarh

Town.

Sampling:

1. Method: - The type of research is explorative. The respondents are selected by adopting a method of random sampling.

2. Size: - The sample size is 100 respondents.3. Area: - The questionnaires have been distributed among consumers in various area of

Dibrugarh town.

Data collection:

Collection of data is done through primary as well as secondary sources.

Primary Data is collected through the structured questionnaires and interviews and Secondary Data are collected through internet and other published information.

Period of study:

The study is conducted over a period of two months. (January and February)

Analysis Techniques:

Analyses have been made on the basis of the responses of the respondents and the results of the interviews.

To arrive at the objectives statistical tools is used for analyzing the data and information that are percentage, average, Charts, tables, bar diagram, etc.

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2.5 LIMITATIONS OF THE STUDY

1. It was difficult to collect proper data and information because the Home makers

were not giving maximum time to respond.

2. The time period is too small to carry out such a topic and to draw a meaningful

conclusion.

3. The study is for limited period of two months and market scenario may change after

time so there may be difference in market scenario in future.

4. The information collected and analyzed are limited which may not fully represents

the image of the study.

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CHAPTER – 3

ANALYSES OF

DATA

13

ANALYSES OF DATA

As the study is of empirical in nature, the data has been collected from the respondents through structured questionnaires and interviews and these were tabulated and accordingly the analyses were done:

1. How many respondents have Refrigerator

OPTIONS IN %

YES 70

NO 30

Source:Field survey

(Fig.1)

From the above figure,it has been observed that 70% of respondents have refrigerator and 30% of respondents donot have refrigerator.

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2. Indication of Brand Name

Source:Field survey

( Fig.2)

Above figure shows the indication of brand name given by respondents that 35% have whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and 10% of respondents have other refrigerator brand.

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OPTIONS IN %

Whirlpool 35

LG 32

Videocon 20

Samsung 23

Other 10

3. Media Of Advertisement

OPTIONS IN %Billboards 10

TV advertisement 70Newspaper 15

Others 5

Source:Field survey

( Fig.3)

From the above graph, it has been observed that advertisement is more influenced by TV i.e. 70%, newspaper is 15%, billboards is 10% and other media of advertisement is 5%.

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4. Frequently watching of advertisement of refrigerator in a day

OPTIONS IN %

Once 15

Twice 22

Thrice 28

Many Times 35

From the above graph, it has been observed that 15% of respondents watch advertisement once in a day, 22% respondents watch twice in day, 28% respondents watch thrice times in a day and 35% of respondents watch advertisement many times in a day.

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5. Satisfaction with the service of Refrigerator purchased

OPTIONS IN %

YES 85

NO 15

Source:Field survey

( Fig.5)

From the above chart , it is found that 85% of respondents are satisfied with the service of refrigerator purchased by them whereas, 15% are not satisfied with the service of refrigerator purchased.

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6. Deviation in between the facilities being advertised and in using the product

OPTIONS IN %

YES 10

NO 90Source:Field survey

( Fig.6)

From the above figure, it has been observed that 90% of respondents said No about the facilities being advertised and in using the product and 10 % of respondents said Yes.

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7. Which company’s advertisement is more attractive

OPTIONS IN %

LG 32

Whirlpool 25

Videocon 18

Samsung 20

Others 05

Source:Field survey

( Fig.7)

From the above graph, it is found that 32% of respondents said LG’s advertisement is more attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and 5% said others advertisement is more attractive.

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8. Which company’s advertisement seen in recent days

OPTIONS IN %

LG 25

Whirlpool 30

Videocon 15

Samsung 20

Others 10Source:Field survey

( Fig.8)

Above figure shows that, which company’s advertisement seen in recent days, 25% of respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung and 10% said about other company’s advertisement.

9. Which company’s advertisement is most memorable

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OPTIONS IN %

LG 28

Whirlpool 40

Videocon 12

Samsung 15

Others 5

Source:Field survey

( Fig.9)

From the above graph, it has been observed that 40% of respondents said Whirlpool’s advertisement is most memorable whereas, LG’s is 28%, Videocon’s is 12%, Samsung’s is 15% and other company’s advertisement is only 5%.

10. Which company’s advertisement respondents can rely upon and take purchase decision

OPTIONS IN %

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LG 28

Whirlpool 40

Videocon 12

Samsung 15

Others 5

Source:Field survey

( Fig.10)

From the above figure, it is found that 40% respondents can rely upon the Whirlpool’s advertisement,28% can rely upon LG, 12% can rely upon Videocon, 15% can rely upon Samsung and 5% can rely upon other refrigerator’s advertisement.

11. Reasons for selecting a brand

OPTIONS IN %

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Service 20

Availability of parts 20

Design 30

All the above 30

Source:Field survey

( Fig.11)

Above graph shows the reasons for selecting a brand, 20% of respondents select brand for service, 20% respondents for availability of parts, 30% respondents for design and 30% respondents are for all the above.

12. Advertisement is helpful to become familiar with the brand

OPTIONS IN %

YES 90

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NO 10

Source:Field survey

( Fig.12)

From the above figure , it has been observed that 90% of respondents said the advertisement is helpful to become familiar with the brand whereas, 10% of respondents said No.

13. Advertisement is substantially help in increasing the number of customers

OPTIONS IN %

YES 80

NO 15

25

No Idea 5

Source:Field survey

( Fig.13)

From the above figure, it is found that 80% of respondents said advertisement is substantially help in increasing the number the customers, 15% said No and 5% said No idea.

14. Which company’s service and advertisement is differ

OPTIONS IN %

LG 15

26

Whirlpool 10

Videocon 30

Samsung 20

Others 25

Source:Field survey

( Fig.14)

From the above figure, it has been observed that 15% of respondents said about LG, 10% said about Whirlpool, 30% said about Videocon, 21% said about Samsung and 25% of respondents said about Other brands.

15. Purchase decision relying on which company’s advertisement

OPTIONS IN %

LG 28

27

Whirlpool 25

Videocon 22

Samsung 20

Others 5

Source:Field survey

( Fig.15)

Above graph shows the purchase decision of respondents relying on different company’s advertisement, 28% of respondents rely on LG’s advertisement, 25% of advertisement rely on whirlpool, 22% of respondents rely on Videocon, 20% rely on Samsung and 5% of respondents rely on Other brand’s advertisement.

\

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CHAPTER- 4

INTERPRETATION OF DATA

INTERPRETATION OF DATA

1. From the survey, it has been observed that 70% of respondents have refrigerator and 30% of respondents donot have refrigerator.

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2. The study shows the indication of brand name given by respondents that 35% have whirlpool refrigerator, 32% have LG, 20% have Videocon, 23% have Samsung and 10% of respondents have other refrigerator brand.

3. From the study, it has been observed that TV advertisement is more influencial on respondence i.e. 70%, newspaper is 15%, billboards is 10% and other media of advertisement is 5%.

4. From the survey, it has been observed that 15% of respondents watch advertisement once in a day, 22% respondents watch twice in day, 28% respondents watch thrice times in a day and 35% of respondents watch advertisement many times in a day.

5. From the survey , it has been found that 85% of respondents are satisfied with the service of refrigerator purchased by them whereas, 15% are not satisfied with the service of refrigerator purchased.

6. From the study, it has been observed that 90% of respondents said No about the facilities being advertised and in using the product and 10 % of respondents said Yes.

7. From the survey, it has been found that 32% of respondents said LG’s advertisement is more attractive , 25% said Whirpool, 18% said Videocon, 20% said samsung and 5% said others advertisement is more attractive.

8. The study shows that, which company’s advertisement seen in recent days, 25% of respondents said LG, 30% said Whirlpool, 15% said Videocon, 20% said Samsung and 10% said about other company’s advertisement.

9. From the survey, it has been observed that 40% of respondents said Whirlpool’s advertisement is most memorable whereas, LG’s is 28%, Videocon’s is 12%, Samsung’s is 15% and other company’s advertisement is only 5%.

10. From the study, it has been found that 40% respondents can rely upon the Whirlpool’s advertisement,28% can rely upon LG, 12% can rely upon Videocon, 15% can rely upon Samsung and 5% can rely upon other refrigerator’s advertisement.

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11. The study shows the reasons for selecting a brand, 20% of respondents select brand for service, 20% respondents for availability of parts, 30% respondents for design and 30% respondents are for all the above.

12. From the survey, it has been observed that 90% of respondents said the advertisement is helpful to become familiar with the brand whereas, 10% of respondents said No.

13. From the survey, it has been found that 80% of respondents said advertisement is substantially help in increasing the number the customers, 15% said No and 5% said No idea.

14. From the study, it has been observed that 15% of respondents said about LG, 10% said about Whirlpool, 30% said about Videocon, 21% said about Samsung and 25% of respondents said about Other brands.

15. The study shows the purchase decision of respondents relying on different company’s advertisement, 28% of respondents rely on LG’s advertisement, 25% of advertisement rely on whirlpool, 22% of respondents rely on Videocon, 20% rely on Samsung and 5% of respondents rely on Other brand’s advertisement.

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CHAPTER- 5

EPILOGUE

5.1 OVERVIEW OF THE PROJECT

The study is carried out to identified the impact of advertisements in taking buying decision by consumer. Buying of product is not an easy task, the consumer should have proper knowledge and idea about the product. In taking buying decision advertisement can

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influence the buyer at different level with different results. More over advertisement can highlight the facility,benifit, quality of a brand infront of the prospects which ultimately help them to be a customer.

The present study is an attempt to understand the impact of advertisement on the home maker and run with five chapter.The chAPTER ONE deals with………….

From the study we get some indigation on the impact of advertisent on the respondence of the study area and they can be listed on the following findings.

5.2 FINDINGS

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1. From the study, it has been observed that 70% of respondents have refrigerator and 30% of respondents donot have refrigerator.

2. From the study, it has been found that most of the respondents are using Whirlpool and LG refrigerator brand in comparision of other brands like Samsung and Videocon.

3. In this study, it is indicated that advertisement is more influenced by TV advertisements than other media of advertisements.

4. From the study, it is found that most of the respondents are satisfied with the service of refrigerator purchased .

5. From the study, it has been observed that most of the respondents are satisfied with the facilities being advertised and in using the product.

6. From the study, it is found that LG’s and Whirlpool’s advertisement is more attractive than the other brand.

7. From the study, it has been observed that more advertisements of LG and Whirlpool have seen in recent days.

8. From the study, it has been observed that Whirlpool’s and LG’s advertisement is most memorable than other brand.

9. From the study, it is found that most of the respondents can rely upon the Whirlpool’s and LG’s advertisement.

10. From the study, it has been observed that some of the respondents select brand according to the design, some respondents select for service, some respondents select for availability of parts and some respondents select for all these features .

11. From the study, it has been observed that advertisement is helpful to become familiar with the brand and also advertisement is substantially help in increasing the number of customers.

12. From the study, it has been observed that Videocon’s and Other brands service and advertisement is differ in comparision of LG, Whirlpool and Samsung.

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13. From the study, it has been found that purchase decision of respondents relying on different company’s advertisement like some respondents rely on LG’s advertisement, some respondents rely on whirlpool, some respondents rely on Videocon, some respondents rely on Samsung and some respondents rely on Other brand’s advertisement.

5.3 CONCLUSION

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The results of this research study clearly indicate that there is an impact of advertisement in taking buying decision by consumer of Dibrugarh town regarding the refrigerator. Consumer’s buying decision depends upon the brand name, attractive overview of advertisements, facilities and uses of the refrigerator. The consumers select their brand according to the facilities, availability of parts, design and for good services. An advertisement can definitely helps to take the buying decision regarding any product because from advertisement they learn about the utility, its features and brand image.

Advertisements are closely linked to the consumer behavior. So it affects the personality to the consumers, his concept of self, his attitudes beliefs and opinions, his life-cycle and life-style etc. An advertisement makes it possible for the manufacturer to introduce new ideas and new products. Had it not been for the advertising the consumers would not have accepted many products. Advertising expands markets, builds up volumes, and gives a market share and profitability and it is more influenced by TV.

So, the consumers easily take buying decision by relying upon their choosing brand and the advertisements helps them to become more familiar with the brands of refrigerators. The consumers of Dibrugarh town prefer the Whirlpool and LG brand’s refrigerator in large volume.

From the study, it is concluded that there is an impact of advertisements in taking buying decision by consumer amongst the home maker in relating to Refrigerator in Dibrugarh town.

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ANNEXURE

Questions asked to the consumers of Dibrugarh town

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Dear Sir,

I am a student of MBA (Marketing), 09-11 batch of NIS Academy in technical collaboration with Annamalai University. I get a topic to study about an impact of advertisements in taking buying decision by consumer of Dibrugarh town.

On the basis of my topic. I prepared a few question for getting the information. So, please

provide the correct information as per your experience & Convenience.

Thanking You

Alok kr. Roy

MBA 2nd Year

NIS Academy, Dibrugarh

QUESTIONNAIRE

Name: ___________________________

Age: ____________________

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Sex: Male Female

Income Status: Below Rs. 3000 Rs. 3000 to Rs 5000Rs. 5000 to Rs. 10000Rs. 10000 to Rs. 20000Above Rs. 20000

1. Do you have refrigerator? Yes No

a) If yes, please indicate the brand from the given below:i) Whirlpool ii) LG iii) Videocon iv) Samsung

v) Others

2. Do you believe advertisement can influence buyer in buying decision?Yes No

3. Which media of advertisement have influenced you to purchase this product?a) Billboards b) TV advertisement c) Newspaper d) Others

4. How many times in a day have you seen the advertisement of refrigerator? a) Once b) Twice c) Thrice d) Many times5. Are you satisfied with the service of refrigerator you purchased? Yes No6. Do you experience with any deviation in between the facilities being advertised and

in using? Yes No7. Which company’s advertisement is more attractive to you? a) LG b) Whirlpool c) Videocon d) Samsung e) Others 8. Which company’s refrigerator advertisement you have seen in recent days? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

9. Which company’s advertisement is most memorable? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

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10. On which company’s advertisement you can rely upon and take purchase decision? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

11. What reasons influence you in selecting a brand? a) Service b) Availability of parts c) Design d) All the above

12. Do you think that advertisement is helpful in making you familiar with a brand of Refrigerator?

Yes No

13. Do you believe that advertisement can substantially help in increasing number of Customers?

Yes No No idea

14. Which company’s service and advertisement differ? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

15. You can take purchase decision relying on which company’s advertisement? a) LG b) Whirlpool c) Videocon d) Samsung e) Others

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