A Project Report on

“IMPACT ON ADVERTISING ON CONSUMER BEHAVIOUR”Survey Project Report

Submitted to

AURORA’S BUSINESS SCHOOL

In partial fulfillment of the requirements for the award of

Post Graduate Diploma in Management (PGDM)

By

PAYELLA KEZIA FLORENCE

DM-11-051

Aurora’s Business School, Near NIMS, Punjagutta, Hyderabad. - 500 082

Tel: 040 2335 1891/92, 2335 0061/62 URL: www.absi.edu.in e-mail us: info@absi.edu.in

CertificateThis is to certify that the project work titled

“IMPACT OF ADVERTISING ON CONSUMER BEHAVIOUR”

is the bona-fide work done byPAYELLA KEZIA FLORENCE

DM-11-051

as a part of the curriculum of Post Graduate Diploma in Management (PGDM),

Aurora’s Business School, Hyderabad.

Internal Guide Project Co-ordinator Director

Aurora’s Business School, Near NIMS, Punjagutta, Hyderabad. - 500 082

Tel: 040 2335 1891/92, 2335 0061/62 URL: www.absi.edu.in e-mail us: info@absi.edu.in

DECLARATION

This is to inform that I have completed a project work on “IMAPCT OF ADVERTISING ON CONSUMER BEHAVIOUR” while pursuing PGDM in Aurora’s Business School.

I hereby declare that this project report submitted by me is original work done as a part of my academic course and has not been submitted to any other University or Institution for the award of any degree or diploma.

Name : PAYELLA. KEZIA FLORENCE Signature :

Roll No : DM-11-051 Date :

ACKNOWLEDGEMENTS

I would like to thank everyone who is involved in helping me in producing this project report by bringing out creativeness in this project.

I would like to take this opportunity to thank my Project guide Prof. C.KAMESHWARI, Aurora’s Business school, for their undeterred guidance for the completion of the report.

My parents need special mention here for their constant support and love in my life. I also thank my friends and well-wishers who have provided their whole hearted support to me in this exercise. I believe that this effort has prepared me for taking up new challenging opportunities in future.

PAYELLA KEZIA FLORENCE

Index PAGE NO

Introduction

Meaning of advertising

Types of advertising

Advantages of advertising

Advertising and market share

Impact of advertising

Objectives of the study

Examples of advertising

Data analysis

Conclusion

Questionnaire

Bibilography

INTRODUCTION ADVERTISING:

An Advertisement is one of the topical strategies of many brands for the promotion of their product. The purpose of mass advertisements is to gain attention for the product, ensuring prolonged association with consumers, or for the purpose of recall of their product in customers’ mind. This study purports to consider the application of the AIDA theory. For the purpose, it proceeds to analyze the impact of advertisements in influencing the consumer’s attitude to purchase the durable products like Television and Refrigerator, etc. Today, most of the advertisements come with ‘celebrity endorsements’ which J. Mgmt Res. & Bus. Strat. 2013 ISSN 2319-345X www.ijmrbs.com Vol. 2, No. 2, April 2013 © 2013 IJMRBS. All Rights Reserved act as a credible means of spending money. This could be for the reason of their

social standing. People want to wear the “right” clothes, drink the “right” beverages and use the “right” fragrances and buy “right” durables. Studying the attitude of consumers, it can be stated that if a consumer observes messages for two different firm’s products, one product’s message containing a better advertisement and the other not, believes the better advertisement’s product will definitely have more features and so be of higher value.

Advertising is the action of calling public attention to something, especially by paid announcements. Note that the definition uses the term 'action of' and doesn't specify that advertising is limited to print media, television, Internet or any other specific medium. While it does place an emphasis on 'paid announcements,' it isn't a requirement. Finally, it only says that attention is called to something, not specifically good attention. Anyone that has turned on the TV during election season knows advertising can be negative.

Many business-specific definitions of advertising add that advertising is non-personal. This distinction is sometimes important because of the role face-to-face sales play in many businesses. A sales force is often considered a marketing strategy, not an advertising strategy.

Different Types of Advertising

Small businesses can use different types of advertising to achieve specific marketing communication objectives. Advertising can communicate the benefits of a product, generate leads for sales follow-up, build the reputation of a company or compare a company’s products and brands against its competitors. It also forms part of an integrated marketing program when used in conjunction with direct sales, public relations campaigns, social media or online marketing tools.

Product AdvertisingProduct advertising communicates the features and benefits of a product to customers and prospects. Companies use product advertising when they want to launch new products, announce changes to existing products or increase sales of those products. Product advertisements must reflect the interests of the target audience. An advertiser developing a campaign for a food product, for example, would create messages and select media that appeal to a wide consumer audience. A campaign for a business product, such as a machine tool, would use media that appeal to different groups influencing the decision to buy, including plant managers, production engineers and finance directors.

Corporate AdvertisingCorporate advertising campaigns play an important part in business-to-business marketing, particularly for companies trying to win a major sale or contract. Prospects evaluate the company as well as the product when they are choosing a supplier. They look for suppliers that have the

capability to deliver quality products on time. Corporate advertising helps to build confidence among customers and prospects by communicating messages about your company’s capability and resources, your market position and financial stability.

Direct Response AdvertisingDirect response advertising encourages prospects to register their details, typically in return for an incentive offer, such as a free gift, special discount or a copy of a business report for business prospects. The advertisement includes a response mechanism, such as a reply coupon, telephone number, email address or website address. The information that you capture from responses provides leads that your sales force or telemarketing team can follow up to create news sales opportunities. You can also use direct response advertising to sell products directly to customers. Include information on the product, together with a price and contact details for ordering the product.

Financial AdvertisingFinancial advertising can help your company attract funds if you are planning to grow your business or make a major investment. Advertising in the financial or business sections of newspapers and magazines can raise awareness of your company among analysts, shareholders, potential investors and advisers. Publishing financial results, together with important developments, such as major contracts or new product launches, keeps your audience up to date with the company’s performance.

ADVANTAGES OF ADVERTISING

The major advantages of advertising are: (1) introduces a new product in the market, (2)

expansion of the market, (3) increased sales, (4) fights competition, (5) enhances good-will, (6)

educates the consumers, (7) elimination of middlemen, (8) better quality products, (9) supports

the salesmanship, (10) more employment opportunities, (11) reduction in the prices of

newspapers and magazines, (12) higher standard of living!

The benefits derived from advertising are manifold. It is one of the most important components

of the marketing process.

This is beneficial to manufacturers, traders, consumers and society as a whole.

Advertising and Market Share

In general, most companies need to spend an enormous amount of money on advertising to maintain their market share. Ninja Corp owns 52% of the market and is constantly threatened by competitors. In order to keep Ninja Corp and its products on top of their consumers' minds, they need to use advertisements as reminders. If not, the competitors will be able to steal some of the 52% of market share and sales. Ninja Corp's competitors are Martial Arts Incorporated and Musclebound University Incorporated. Both have market share of only around 15% each.

Advertising is used by companies to maintain their market share.

Traditionally companies that are either new or smaller in market share have to spend a larger amount in advertising than their big competitors. The reason behind this is calledadvertising response function. This is when spending for advertising does increase sales up to a particular market share, but then the company receives a drop in sales due to diminishing returns.

Following this logic, Ninja Corp spends a basic amount on their advertising to act more as a reminder to their customers. Meanwhile the smaller competitors do see sales results with a larger increase in an advertising budget. Martial Arts Incorporated and Musclebound University Incorporated both have a large advertising budget to help create awareness and increase sales and market share. Musclebound University Incorporated has the largest advertising budget of all of the companies since it's brand new. According to the advertising response function, new products and companies need to invest in a large advertising budget in order to maintain exposure to their target market and cause a purchase to occur.

IMPACT OF ADVERTISING ON CONSUMER BEHAVIOUR

Every organization, or rather, Brand, invests a lot of capital on marketing, a major chunk of which is spent on making ads. Getting an iconic celeb like Amitabh Bachchan to speak about a product like Navratna Hair Oil, it seems like a piece of cake nowadays. But, to how much extent does these ads actually affect the consumers? Do they actually buy a product just because their favorite film-star is endorsing it? Is it possible that a product can change its image on the consumers overnight, just because of the flashy ad they just released?

If we go by theories, there are lot many factors that influence a customer to make a purchase, and advertising is just one small part of a parameter called Psychology. Some of the more influential factors are like:

Need of the Product – Considering the market scenario of today (I am talking about inflation); we consumers hardly buy anything when we don’t need it.

Affordability – It is not an uncommon sight when a man sighs looking at an expensive brand of shaving cream and goes for the cheaper brand.

Brand Image and Loyalty – Very few Surf Excel users would like to opt for a brand like Tide or Nirma just because it is cheaper.

Peer group – now this is one factor that does not affect buying as much as it affects buying behavior. Confused? Well, what I meant to say is, we buy a product when we need it, but sometimes, especially when we are buying that particular product for the first time, we need some help with what brand shall we choose. And this is where our peer group comes into picture. It helps us choose a brand when we need a product, but does not tell us when we need that product.

Advertising, it can be said, has a similar effect on our purchasing habits as our peer group does. Nobody jumps in to say “I need that thing” just because the ad that had just been aired on TV is extremely attractive, but yes, sometimes, we may say “let’s try this brand, the ad on TV looks good.”

OBJECTIVES OF THE STUDY:

The present research work is designed to achieve the following specific objectives with reference to durable products:

(i) To examine the influence of advertising on consumer buying behaviors.

(ii) To determine the influence of advertising on attitude formation of consumers.

EXAMPLES OF ADVERTISING

Amul's Har Ghar Amul Ghar - Pyar Bandhan ad: The ad campaign which showcased a sister's love received flak online for being 'sexist' and 'regressive'. The ad was one of six ads released on digital media. Similar to the fate of Kalyan Jewellers, the ad campaign was stopped abruptly and R S Sodhi, MD of Amul issued an apology saying that their intent has never been to promote

gender bias, in an exchange4media report. He further added that we shall advise our creative agency to be less nuanced in the subsequent releases.

Idea Cellular's ad campaign's : 'What an Idea Sirjee' and 'No Ullu Banaoing' were regarded as

one of the best campaigns. However, the 'Idea Internet Network - IIN' campaign of the company

was created to promote its internet services received severe criticism on social media. Memes

and parodies of the ad went viral online.

Dettol – Maa Maane Dettol Ka Dhula ad: Dettol's ad campaign which when translated meant

'Mother's trust only Dettol' was criticised on social media for its jingle being 'banal' and

'lacklustre', according to an exchange4media report. The ad was released during the India-

Pakistan match in the ICC World Cup 2015.

 

ANALYSIS OF DATA AND INTERPRETATION

QUESTION 1:

Gender of the respondent:

S.no Gender Number Of Respondents

Percentage

1 Male 12 48%

2 Female 13 52%

Total 25

This table represents the gender of the respondents . It shows that more than ½ nd samples are female and less than ½ nd samples are male.

QUESTION 2

AGE

S.no Age Number of respondents

Percentage

1 16-21 7 28%

2 21-26 8 32%

3 26-31 5 20%

4 31 and above 5 20%TOTAL 25

This table represents the age of the respondents. Respondents between the age 16-21 yrs are 28% and respondent between age 21-26 are 32% and between 26-31 yrs are 20% and the rest are between the age 31 and above.

QUESTION 3

OCCUPATION

S.NO Options No.of respondents Percentage1 Student 13 52%2 Employee 7 28%3 Retired employee 5 20%Total 25

In our research most of the respondents are students.

QUESTION 4

Which media gets your attention?

S.NO Options No: of respondents Percentage

1 Print 5 20%

2 Radio 3 12%

3 Television 12 48%

4 Mouth talk 5 20%Total 25

According to the study less than 1/2nd of the population gets more attention by television followed by mouth talk, print and radio.

QUESTION 5

How does an advertisement affect you?

S.NO Options No: of respondents Percentage1 Recall 7 28%2 Positive Impression 5 20%3 Interest 7 28%4 Desire to purchase 6 24%Total 25

According to this table most of respondents say that advertisement creates interest to buy the product.

Question 6

Which Form of ad creates a greater impact on you?

S.NO Options No: of respondents Percentage1 Just the printed

words2 8%

2 Words with sound 4 16%3 Words with a visual 12 48%4 A moving action

oriented add3 12%

5 Picture depicting a scene/story

4 16%

Total 25

According to this table words with a visual form creates great impact than other forms of advertisements.

QUESTION 7

How long does the impact of an advertisement last on you?

S.NO Options No: of respondents Percentage1 Few hours 11 44%2 One day 3 12%3 One week 5 20%4 One month 4 16%5 More than a month 2 8%

25

According to this study most of the respondent say that impact of advertisements stays only for few hours.

QUESTION 8

Does an ad urge you to try a new brand?

S.NO Options No: of respondents Percentage1 Yes 14 56%2 No 11 44%

25

According to this table most of the respondent say that doesn’t have urge to try a new brand.

QUESTION 9

How often do you buy the same the same article/garment design as you see in the ad?

S.NO Options No: of respondents Percentage1 Always 4 16%2 Most of the times 5 20%3 Sometimes 10 40%4 Never 6 24%Total 25

According to the study 40% of the respondents say that they sometimes buy the article as shown in the ad.

QUESTION 10

Which aspect of television ad is important to you?

S.NO Options No: of respondents Percentage1 Models 2 8%2 Background 3 12%3 Theme 8 32%

4 Punch line 2 8%5 Caption 6 24%6 Photography 4 16%Total 25

This table says that most of respondents like theme in the advertisement followed by caption then photography then models and punch line.

QUESTION 11

Does the picture of a famous personality in the TV ad make you think that?

S.NO Options No: of respondents Percentage1 The product is of high

quality3 12%

2 It must be expensive 6 24%

3 The company must be big

4 16%

4 The brand is facing intense competition

5 20%

5 It does not affect you 7 28%Total 25

This table shows that famous personality in TV ad doesn’t affect most of the respondent

QUESTION 12

What is the reason for preferring a particular brand?

S.NO Options No: of respondents Percentage1 Product range 6 24%2 Design of product 3 12%

3 Width and depth of the product

3 12%

4 Quality 7 28%5 Price range 6 24%Total 25

This table represents that most of the respondents prefer particular brand because of its quality

QUESTION 13

Level of satisfaction regarding the purchase of the product?

S.NO Options No: of respondents Percentage1 Very satisfied 5 20%

2 Neutral 14 56%3 Unsatisfied 6 24%

Total25

According to this table most of the respondents feel that level of satisfaction regarding the purchase of the product is neutral

QUESTION 14

Have you purchased any products recently after coming across any advertisement?

S.NO Options No: of respondents Percentage

1 YES 10 40%2 NO 15 60%

25

According to this study most of the respondents didn’t purchase any products recently after coming across any advertisement.

QUESTION 15

Which of these factors influenced your purchasing?

S.NO Options No: of respondents Percentage1 The ad was interesting 9 36%2 Curious about the

product4 16%

3 Wanted to imitate the actors in the ad’s

3 12%

4 It was a familiar product or brand

9 36%

Total 25

This table shows that most of the respondents feel that an advertisement will influence their purchasing.

CONCLUSION

The findings of the present study are that advertisement worldwide influence the behavior and attitude formation of consumers not only in India but also worldwide. The consumers of durables products have their motivational sources which are advertisements and study revealed thatadvertisement motivates them to materialize the purchase of durables. The consumers are induced significantly by advertisements when the target is on quality and price. Purchase attitude and behavior is influenced by variety of advertisements which cover product evaluation and brand recognition.

The study show that advertising on the behavior of buying and consume plays an important role in selling products. Also most of consumers are interested in brand products. It is found that temporary price discounts occupy an important place in buying decision, and sponsorship has a negative effect on buyers. Many consumers go at fairs and exhibitions attracted by the new products, by the producer's prices or the diversified supply. Very important to mention is the fact that the online advertising influences the buying decision. Consumer behavior and advertising are dynamic fields, in terms of practice and scientific training. For example, the television commercials that appear in the year 2012 have little in common with those from the1970s. Advertisements from this earlier period used modern techniques and were primarily informative. Advertising research styles have involved and advanced, partly through the influence of improved technology and access to advanced theories and methods.

Index Sl.noIntroduction

Objectives

Methodology

Tools and techniques

Data Analysis

Conclusion

Bibliography