impact of tv advertisement on consumer buying behavior

IMPACT OF TV ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR

Topic

IMPACT OF TV ADVERTISEMENT ON CONSUMER BUYING

BEHAVIOR

Abstract:

Measuring the influence of Advertisement in Consumer Brand Preference is very essential for

every marketer. If advertisement does not create any positive change in consumers’ brand

preference, all the resources such as money, time and efforts spent on advertisement will go

in vain. Most of the marketers use Advertisement as a tool to attract substantially new

customers and to retain the existing customers. This research studies about the “IMPACT OF

TV ADVERTISEMENT ON CONSUMER BUYING BEHAVIOR ”. Every Brand in this

market use Advertisement as a major weapon to overcome the fierce Competition. There are

numerous Advertisements of different brands exposed in Television. But, the main thing here

is, the marketer want to identify that, do all these advertisements positively influencing the

consumers’ brand preference. In order to study the influence of Advertisement in Consumer

Brand Preference, three main variables are considered with appropriate dimensions. They are;

Information, Communication and Comprehension. The structured questionnaire was used to

collect primary data from 500 respondents. The study found that all three variables indicate

high influence of Advertisement in consumer brand preference. Even though it has high

influence in overall view, the advertiser wants to consider the indicators, which have low and

moderate influence in their future developments of the Advertisements to maintain its

position in the market in the long-run. Eventually, this study recommends some actions for

improving the influence of Advertisement in consumer brand preference

Key Word

Consumer , Information and communication

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Introduction and Background

The essence of being in business by any business outfits is to produce for sales and profits. In

order to remain in business an organization must generate enough sales from its products

cover operating costs and post reasonable profits. For many organizations, sales estimate is

the starting point in budgeting or profit planning. It is so because it must be determined, in

most cases, before production units could be arrived at while production units will in turn

affect material purchases. However, taking decision on sales is the most difficult tasks facing

many business executives. This is because it is difficult to predict, estimate or determine with

accuracy, potential customers’ demands as they are uncontrollable factors external to an

organization. Considering, therefore, the importance of sales on business survival and the

connection between customers and sales, it is expedient for organizations to engage in

programmers that can influence consumers’ decision to purchase its products. This is where

advertising and brand management are relevant. Advertising is a subset of promotion mix

which is one of the 4ps in the marketing mix i.e product, price, place and promotion. As a

promotional strategy, advertising serve as a major tool in creating product awareness and

condition the mind of a potential consumer to take eventual purchase decision

Advertising, sales promotion and public relations are mass-communication tools available to

marketers. As its name suggests, mass communication uses the same message for everyone in

an audience. The mass communication tools trade off the advantage of personal selling, the

opportunity to tailor a message to each prospect, for the advantage of reaching many people

at a lower cost per person (Etzel et al., 1997). Today, definitions of advertising abound. We

might define it as communication process, a marketing process, an economic and social

process, a public relations process or an information and persuasion process (Arens, 1996).

Dunn et al. (1978) viewed advertising from its functional perspectives, hence they define it as

a paid, non-personal communication through various media by business firms, non-profit

organization, and individuals who are in some way identified in the advertising message and

who hope to inform or persuade members of a particular audience. Morden (1991) is of the

opinion that advertising is used to establish a basic awareness of the product or service in the

mind of the potential customer and to build up knowledge about it. Kotler (1988) sees

advertising as one of the four major tools companies use to direct persuasive communications

to target buyers and public noting that “it consists of non-personal forms of communication

conducted through paid media under clear sponsorship”. According to him, the purpose of

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advertising is to enhance potential buyers’ responses to the organization and its offering,

emphasizing that “it seeks to do this providing information, by channeling desire, and by

supplying reasons for preferring a particular organization’s offer. While writing on

advertising nature and scope, Etzel et al. (1997) succinctly capture all advertising as having

four features:

(i) A verbal and or visual message

(ii) A sponsor who is identified

(iii) Delivery through one or more media

(iv) Payment by the sponsor to the media

Summarizing the above, they conclude that “advertising then consist of all the activities

involved in presenting to an audience a non-personal, sponsor-identified, paid-for message

about a product or organization”. Those views of Etzel et al. (1997) coincide with the simple

but all-embracing definitions of Davies (1998) and Arens (1996). For instance, while Davies

states that “advertising is any paid form of non-personal media presentation promoting

ideas/concepts, good s or services by an identified sponsor. Arens expressing almost the same

view describes advertising as “the personal communication of information usually paid for

and usually persuasive in nature about products (goods and services) or ideas by identified

sponsors through various media”. From the foregoing, it could be concluded that the purpose

of advertising is to cerate awareness of the advertised product and provide information that

will assist the consumer to make purchase decision, the relevance of advertising as a

promotional strategy, therefore, depends on its ability to influence consumer not only to

purchase but to continue to repurchase and eventually develop-brand loyalty. Consequently,

many organizations expend a huge amount of money on advertising and brand management.

A brand is a name given by a manufacturer to one (or a number) of its products or services.

Brands are used to differentiate products from their competitors. They facilitate recognition

and where customers have built up favorable attitude towards the product, may speed the

individual. buyers through the purchase decision process. Individual purchasers will filter out

unfavorable or un-known brands and the continued purchase of the branded product will

reinforce the brand loyal behavior. Without brands, consumer couldn’t tell one product from

another and advertising then would be nearly impossible.

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Advertiser’s primary mission is to reach prospective customers and influence their awareness,

attitudes and buying behavior. They spend a lot of money to keep individuals (markets)

interested in their products. To succeed, they need to understand what makes potential

customers behave the way they do. The advertisers goals is to get enough relevant market

data to develop accurate profiles of buyers-to-find the common group (and symbols) for

communications this involves the study of consumers behavior: the mental and emotional

processes and the physical activities of people who purchase and use goods and services to

satisfy particular needs and wants (Arens, 1996). Proctor et al. (1982) noted that the principal

aim of consumer behavior analysis is to explain why consumers act in particular ways under

certain circumstances. It tries to determine the factors that influence consumer behavior,

especially the economic, social and psychological aspects which can indicate the most

favored marketing mix that management should select. Consumer behavior analysis helps to

determine the direction that consumer behavior is likely to make and to give preferred trends

in product development, attributes of the alternative communication method etc. consumer

behaviors analysis views the consumer as another variable in the marketing sequence, a

variable that cannot be controlled and that will interpreted the product or service not only in

terms of the physical characteristics, but in the context of this image according to the social

and psychological makeup of that individual consumer (or group of consumers). Economic

theory has sought to establish relationships between selling prices, sales achieved and

consumers income, similarly, advertising expenditure is frequently compared with sales. On

other occasions financial accounting principles maybe applied to analyses profit and losses.

Management ratios, net profit before tax, liquidity and solvency ratios can all be investigated.

Under the situations the importance of the consumer’s motivations, perceptions, attitudes and

beliefs are largely ignored. The consumer is assumed to be “rational” that is, to react in the

direction that would be suggested by economic theory and financial principles. However, it is

often apparent that consumer behaviors do not fall neatly into these expected patterns. It is for

these reason that consumer behavior analysis is conducted as yet another tool to assess the

complexities of marketing operations. The proliferation of assorted brands of food drinks in

the country has led to the cut-throat competition for increased market share being witnessed

currently among the operations in the food drink industry. Today, in Nigeria, there exists

more than twenty brands of food drink both local and foreign, out of which two, namely

Cadbury Nigeria Plc’s Bournvita and Nestle Nigeria Plc’s Milo keenly compete for market

leadership. There are quite a host of up-coming and low-price localized brands in small

sachets with “Vita” suffixes springing up in every nook and cranny of the country. Existing

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and popular brands, therefore, face intense competition with the “affordable” localized”

“Vitas” with high sugar content targeted at the low-income groups. It is, therefore, imperative

for the more established brands like Bournvita to employ brilliant advertising and branding

strategies to influence consumers’ behaviors in order to continue to enjoy and maintain

market leadership. Given the competitive environment in the food and beverages sub sector

of the economy and the high potential of advertising in helping companies realise and retain

their position this paper examine the influence of advertising on a leading company in the

food and beverages sub sector as a case study.

Purpose Statement

Following are the main purpose statements of the research.

Intent of the study

The main intent of the study would be to identify that how the tv advertisements are having

an effect on the buying behavior of the consumer. The study will explain that how tv

advertisements are having effects on the psyche of consumer and how it effects the buying

behavior of the consumer. Some advertisements are having romantic effects on the consumer,

some are having thrilling effects and some are having adverse effects. This study would be

useful for the marketers in order to make some commercials for the public and will help the

marketers understand what sort of expectations consumers are having from marketers when it

comes to advertisements and how it effects on the buying behavior of consumers. And the

main intent of the study is to see what sort of tv advertisements are having an impact on the

buying behavior of consumers and how it effect it.

Definition of keywords

Following are the keywords of this research.

Consumer: A consumer is a person or group of people who are the final users of products

and or services generated within a social system. A consumer may be a person or group, such

as a household. The concept of a consumer may vary significantly by context. or An

individual who buys products or services for personal use and not for manufacture or resale.

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http://en.wikipedia.org/wiki/Household


Information: Information is the peace of knowledge and insights which an individual is

having and the awareness which one can use in order to buy something and which he can use

to articulate to another in order to tell him so that he could also use it for future.

Communication: Communication requires a sender, a message, and a recipient, although the

receiver need not be present or aware of the sender's intent to communicate at the time of

communication; thus communication can occur across vast distances in time and space. In

advertisement the marketer conveys the message to notary public to mold their buying

behavior towards their product.

Objectives:

Examining the influence of Information in the Advertisement in deciding consumer

brand preference

Identifying the influence of Communication in the Advertisement in deciding

consumer brand preference

Understanding the influence of Comprehension of the Advertisement in deciding

consumer brand preference

Significance of the study:

This research is having a lot of significances in the field of marketing. Though some other

researches have also been done on this topic but these were lacking something in it. This

research will explain cent percent that how tv advertisement effects the buying behavior and

what sort of tv advertisement is having which sort of effect on the behavior of a consumer.

This research will explain that what percent of effect packaging is having on the buying

behavior of consumer, to which extent the brand ambassador changes the buying behavior of

consumer and how other graphics in ads help a particular product in order to get more and

more customers.

This research will also be useful for the policy makers as well as for the economists to make

economies. This will explain that to which extent an ad is having an impact on the sale of that

product and it would be easy for the policy makers and the economists to make policies

according to that.

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http://en.wikipedia.org/wiki/Message


Research question:

In this study we will check the relationship between TV advertisement and Consumer

Behavior. The study will explain the Impact of TV advertisement on consumer behavior.

Main question

What is the effect of TV advertisement on consumer buying behavior?

Sub question

Does TV advertisement give detail information about product?

Does TV advertisement communicate correction information?

Have you tried any product after watching TV advertisement ?

Hypothesis:

H1 There is a relationship between TV advertisement and consumer buying behavior

H0There is no relationship between TV advertisement and consumer buying behavior

Literature Review

I chose to conduct my research in the field of marketing after seeing its growing popularity

and scope in this field. I choose to explore that whether tv advertisement really effects on

consumer buying behavior or not. First talking about Tv Advertising, it is the non-personal

communication of the information usually paid for and persuasive in nature about products,

services or ideas by identified sponsors through the various media (Datta, 2008). The

advertiser intends to spread his ideas about the products and offerings among the prospects.

Popularization of the products is thus, the basic aim of advertising (Ramaswami &

Namakumari, 2004). The advertiser intends to spread his ideas about the products and

offerings among the prospects. Popularization of the products is thus, the basic aim of

advertising (Ramaswami & Namakumari, 2004). media ever invented. It has a potential

advertising impact unmatched by any other media (Saxena, 2005).

Several researches have been done on this topic to see whether it is really having an impact

on consumer buying behaviour or not. Farid Esfahani, Mohammad Ali Sardar and Behzad

Hassannezhad Kashani has explored on the topic Relationship Between Media

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Advertisements and Purchase of Losing Weight Sport Products in Iran. Since, overweight is a

major problem in current generation, manufacturers target it by designing and producing

appliances such as belts, shorts, tablets, tag loss, stationary bicycle, treadmill, massager, etc

which can help people in this respect. various medical sport equipments and methods have

entered into the market in recent years in order to decrease the fat percentage. in recent years

in order to decrease the fat percentage. not revealed for the potential consumer market and

customers are not informed about them or the potential target market has not included in

advertising range of manufacturing companies.

Then Ahasanul Haque, Sabbir Rahman, Ismail Sayyed Ahmed, Farzana Yasmin, and Almas

Asri conducted their research on a growing business in Pakistan which is fast food restaurants

and the topic was Assessing the impact of Advertisement towards Malay Consumers: an

Empirical Study of Fast Food Restaurants in Malaysia in year 2011. Fast food restaurants are

popular because of its price, quick service and promotion that can influence customers‟

perceptions. Fast food restaurants that still exits are Kentucky Fried Chicken (KFC),

MC Donald‟s (McD), and Subway, Pizza Hut, Get Stuff‟s and more. Advertising has core

competencies to become more effective because effective marketing communications have

become an essential part of a firm‟s success in introducing and promoting products and

services. Effective advertising depends on criteria that have been used by advertisers such as

entertainments and likeability advertisings (Zhang etal. 2002).In addition to that, (tutor2u.net,

2009) websites stated, “The advertising message must be carefully targeted to impact the

target customer audience”. This again showed the importance of advertisement . Advertising

is a major tool of capitalist system especially in United States and contributed to one of the

highest standards of living in the world. William et al, (2004) quoted by McCarthy and

Howard (2003) “Advertising expenditures account approximately 3 % of a developed

country’s gross national product and the U.S often leads rate with $543.8 spent per capita in

2002”. William et al, (2004) also quoted by Carey, (1989), “advertising is a powerful

economic force and an important in the United States”. So all the findings shows that

advertisement does have an impact on consumer’s buying behaviour in fast food industry as

well.

Then Miss. Vithya Vivekananthan, Faculty of Commerce and Management, Eastern

University, Vantharu moolai, Sri Lanka also tried to explore the importance of advertisement

in brand preference her research topic was A STUDY ON INFLUENCE OF

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ADVERTISEMENT IN CONSUMER BRAND PREFERENCE (SPECIAL REFERENCE

TO SOFT DRINK MARKET IN MANMUNNAI NORTH D.S DIVISION BATTICALOA).

Her studies tells us that the importance of sales on business survival and the connection

between customers and sales, it is expedient for organizations to engage in programmes that

can influence consumers’ decision to purchase its products. This is where advertising and

brand management are relevant. Advertising is a subset of promotion mix which is one of the

Four ’P’s in the marketing mix i.e. product, price, place and promotion. As a promotional

strategy, advertising serve as a major tool in creating product awareness and condition the

mind of a potential consumer to take eventual purchase decision.

After it there were some other researches on Effective advertising and its influence on

consumer buying behaviour. This research was being researched by Zain-Ul-Abideen and

Salman Saleem. It states that Almost every one grows up in the world which is flooded with

the mass media e.g. television, advertising, films, videos, billboards, magazines, movies,

music, newspapers, and internet (Latif & Abideen, 2011). Of all marketing weapons,

advertising is renowned for its long lasting impact on viewer’s mind, as its exposure is much

broader (Katke, 2007). Advertising is a subset of promotion mix which is one of the 4P’s in

the marketing mix i.e. product, price, place and promotion. As a promotional strategy,

advertising serve as a major tool in creating product awareness in the mind of a potential

consumer to take eventual purchase decision. Advertising, sales promotion and public

relations are mass-communication tools available to marketers. Advertising through all

mediums influence audiences, but television is one of the strongest medium of advertising

and due to its mass reach; it can influence not only the individual’s attitude, behavior, life

style, exposure and in the long run, even the culture of the country (Latif and Abideen, 2011).

Telecommunication technology enables business and industry to grow at a faster pace while

simultaneously contributing to the economic development and at the same time

telecommunication infrastructure can be reliable indicator of economic development. Cellular

phone industry has been one of the profitable businesses in Asian business (Roberts, 1998).

E.g. In 2001, China’s cell phone market grew into 130 million users, exceeding the U.S.’s

market for the first time (Robertson, 2001). Moreover, in 2004, Chinese cell phone users’

population reached 335 million (25% of the total Chinese population), 65 million more than

2003 (Statistics of CMII,2005). Advanced Micro Devices, Inc. (AMD) listed China as its top

priority in the SWOT analysis. The country’s growing population and huge demand potential

have always been an attraction for many high-tech multinational companies.

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After it there was another research and that too in our own city Lahore on the topic of

IMPACT OF ADVERTISEMENT ON CONSUMER BEHAVIOR OF FMCG IN LAHORE

CITY. This study states that Each and every product delivers the different meaning to each

user. User behavior is not related what consumer buy, but also with what they buy it. It

depends on those factors which inclined the behaviour of user or buyer. Culture, family and

brand image these all factors influenced the buying behaviour. Market share of the product

depend on the awareness of consumer. That’s why the organizations and agencies advertise

their product via media either electronic or print or both. The repetition of advertisement and

economic factor like per capital income also change the consumer behaviour about to choice

the product. In 2011 Pakistan’s national per capital income is $1254 and it is too much low

rather than other countries. Pakistan is on 24 ranks regarding per capital income. Due to

competition every organization do advertisement more and it effect directly on their product

demand and organization move upward smoothly. All the advertising methods inclined the

user behaviour but media influence more than other sort of advertisement (Latif and Abideen,

2011). Smith and Whan (1992) found that the high quality product not only capture the

greater share of market but maximizing the market value. The consumer spent more on the

Fast Moving Consumer Goods (FMCG). At the end it is obvious that advertisement has a big

impact on the consumer buying behaviour.

R. Ayhan Yılmaz, Assistant Prof. Dr. Selen Ersavaş, MA Student research on brand embaciter

and his impact on sales of a product his research consists of two parts one is to measure the

frequency for that he use the method of contents analysis method and in the next part . In

the second part, exploratory investigation method is used to determine the attitude towards

the commercials/brands.

Model

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TV advertisement

Information

Consumer Behavior

Communication


Research Methodology

(Mention all paradigms defination)

Paradigms:

Positivism is philosophy of science based on the view that in the social as well as natural

sciences, data derived from sensory experience, and logical and mathematical treatments of

such data, are together the exclusive source of all authentic knowledge. Obtaining and

"verifying" data that can be received from the senses is known as empirical evidence. Society

operates according to laws like the physical world. Introspective and intuitional attempts to

gain knowledge are rejected. Though the positivist approach has been a recurrent theme in

the history of Western thought from the Ancient Egyptians to the present day, the concept

was developed in the early 19th century by the philosopher and founding sociologist, Auguste

Comte.Comte argued that society operates according to its own laws, much as the physical

world operates according to gravity and other laws of nature

Anti-positivists, or interpretivists take the view that since human beings think and reflect,

scientific methods are inappropriate for the study of society. Unlike objects in nature, human

beings can change their behaviour if they know they are being observed. So interpretivists

argue that if we want to understand social action, we have to delve into the reasons and

meanings which that action has for people. Take the example of crime. A positivist would

argue that researchers can simply measure crime using quantitative methods and identify

patterns and correlations. An interpretivist would argue that sociologists need to understand

what people mean b crime, how they come to categorize certain actions as ‘criminal’ and

t896+hen investigate who comes to be seen as criminal in a particular society.

Pragmatism is an American philosophy from the early 20th century. According to

Pragmatism, the truth or meaning of an idea or a proposition lies in its observable practical

consequences rather than anything metaphysical. It can be summarized by the phrase

“whatever works, is likely true.” Because reality changes, “whatever works” will also change

— thus, truth must also be changeable and no one can claim to possess any final or ultimate

truth.

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Population and Sampling

Sampling

Sampling is the process of selecting sector of the population for study

Population

Sample size:

Sample size of my study will be 500 respondents

Respondents:

Questionnaire will be filled from University students and different family restaurant prior to

their permission

Data Collection Method

Data will be collected through questionnaire, our respondent will be from different

universities and we will fill questionnaire from family restaurant as well

Data Analysis Method

There are two types of methods used and they are as follows:

Descriptive research, also known as statistical research, describes data and characteristics

about the population or phenomenon being studied. Descriptive research answers the

questions who, what, where, when, "why" and how. Although the data description is factual,

accurate and systematic, the research cannot describe what caused a situation. Thus,

Descriptive research cannot be used to create a causal relationship, where one variable affects

another. In other words, descriptive research can be said to have a low requirement

for internal validity.

Inferential statistics, unlike descriptive statistics, is a study to apply the conclusions that

have been obtained from one experimental study to more general populations.

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It should be noted that inferential statistics always talks in terms of probability, but this can

be made highly reliable by designing the right experimental conditions. The inferences are

almost always an estimate with a confidence interval. There is however some cases where

there is simply a rejection of hypothesis that is involved, which is the case if the experiment

is designed to refute some claim.

Several models are available in inferential statistics that help in the process of analysis. These

models need to be chosen with care, since an error in assuming one model might give wrong

conclusions about the experiment.

A histogram is a display of statistical information that uses rectangles to show the frequency

of data items in successive numerical intervals of equal size. In the most common form of

histogram, the independent variable is plotted along the horizontal axis and the dependent

variable is plotted along the vertical axis. The data appears as coloured or shaded rectangles

of variable area.

The illustration, below, is a histogram showing the results of a final exam given to a

hypothetical class of students. Each score range is denoted by a bar of a certain colour. If this

histogram were compared with those of classes from other years that received the same test

from the same professor, conclusions might be drawn about intelligence changes among

students over the years. Conclusions might also be drawn concerning the improvement or

decline of the professor's teaching ability with the passage of time. If this histogram were

compared with those of other classes in the same semester who had received the same final

exam but who had taken the course from different professors, one might draw conclusions

about the relative competence of the professors.

Correlation refers to any of a broad class of statistical relationships involving dependence.

Correlations are useful because they can indicate a predictive relationship that can be

exploited in practice. For example, an electrical utility may produce less power on a mild day

based on the correlation between electricity demand and weather. In this example there is

a causal relationship, because extreme weather causes people to use more electricity for

heating or cooling; however, statistical dependence is not sufficient to demonstrate the

presence of such a causal relationship.

In statistics, regression analysis includes many techniques for modelling and analyzing

several variables, when the focus is on the relationship between a dependent variable and one

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or more independent variables. More specifically, regression analysis helps one understand

how the typical value of the dependent variable changes when any one of the independent

variables is varied, while the other independent variables are held fixed. Most commonly,

regression analysis estimates the conditional expectation of the dependent variable given the

independent variables — that is, the average value of the dependent variable when the

independent variables are held fixed. Less commonly, the focus is on quantize, or

other location parameter of the conditional distribution of the dependent variable given the

independent variables. In all cases, the estimation target is a function of the independent

variables called the regression function. In regression analysis, it is also of interest to

characterize the variation of the dependent variable around the regression function, which can

be described by a probability distribution.

Analysis

We will analysis our data in SPSS

Delimitations and limitations

Due to limitations resources and time the purpose study will be delimitze to the

following level.

This study is delimitized to use quantitative approach. Only one city i.e.is taken as

research site and take small sample size i.e. 500.

As we are student so have limited time.

As we are student so have limited time

Ethical Consideration

The purpose of the study is made clear and simple to be easily understood by the readers and

the respondents and we will take prior permission should be taken for the video or voice

recording. I will not use any hidden device for the video and recording. The privacy of the

respondent kept protect till the end. All information provided would be held in strict

confidence

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Time Table

This study would be done in a span of 6 months. In the initial days the relevant data would be

collected through different literature. Then the data would be collected from the members.

And then the process of writing will start and then will come the stage of submission of the

work. For the collection of data numerous places of Lahore will be selected, which will

include the educational institutes, shopping malls and some other recreational sites.

Budget

The possible budget which would be required for this study would be 7000 rupees.

Approximately 4000 would be consumed in the travelling as the data collection process will

consists of all the areas of Lahore and then approximately 1000 rupees will occur on the

entertainment during the data collection stage and the remaining 2000 rupees would be on the

printing and bindings of questionnaires and the working.

Travelling 4000 4000

Entertainment 1000 5000

Printing and Binding 2000 7000

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impact of tv advertisement on consumer buying behavior

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