Impact of Advertising on Consumer Behaviour

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

Certificate
This is to certify that the project work titled
“IMPACT OF ADVERTISING ON CONSUMER BEHAVIOUR”
is the bona-fide work done by
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.
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 Advertising
Product 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 Advertising
Corporate 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 Advertising
Direct 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 Advertising
Financial 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
0
1
2
3
4
5
6
7
8
1st
Qtr
16-21
21-26
26-31
31 and above
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 Percentage
1 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?
1 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?

1 Just the printed
words
2 8%
2 Words with sound 4 16%
3 Words with a visual 12 48%
4 A moving action
oriented add
3 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?

1 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?

1 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?

1 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?
1 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?

1 The product is of high
quality
3 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?

1 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?

1 Very satisfied 5 20%
2 Neutral 14 56%
3 Unsatisfied 6 24%
Total
25
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?
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?
1 The ad was interesting 9 36%
2 Curious about the
product
4 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 that
advertisement 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 the
1970s. 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.no
Introduction
Objectives
Methodology
Tools and techniques
Data Analysis
Conclusion

Impact of Advertising on Consumer Behaviour

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